Skip to content
Back to announcement

AnnualReport2023-BAFI-att4.pdf

Other Text extracted BAFI

Source file signed link, expires in 15 minutes

This browser can't display the PDF inline. Open it in a new tab.

Extracted text 612

Page 1
                         Annual Report &
                         Sustainability Report




PT BUSSAN AUTO FINANCE
Page 2
2
Page 3
PT BUSSAN AUTO FINANCE




                                                                                                                            HIGHLIGHTS
                                                                                                                            PERFORMANCE
                                                                                                                            REPORT
                                                                                                                            MANAGEMENT
             DISCLAIMER




                                                                                                                            PROFILE
                                                                                                                            CORPORATE
The 2023 Annual Report and Sustainability Report is a combined Annual Report and Sustainability Report that is
prepared in compliance with prevailing law and regulations. This report contains operational, financial, projection
statements and plans as well as policies and strategy implementations along with the Company’s objectives – all
categorized as forward-looking statements in adhering to the prevailing laws and regulations; save for all historical
matters. These statements carry prospects of risk and uncertainty, which could account for actual developments may




                                                                                                                            DISCUSSION & ANALYSIS
                                                                                                                            MANAGEMENT
materially differ from what is stated.

These prospective statements are designed based on assumptions on the current business situations and conditions
where the Company runs its business operations. The Company does not guarantee that these vetted documents will
provide certain outcomes as expected.

This report contains the terms “BAF” or the “Company,” which refers to PT Bussan Auto Finance. In addition, the term
“We” is also used on several occasions with the same function, due to the ease of mentioning PT Bussan Auto Finance.




                                                                                                                            GOVERNANCE
                                                                                                                            CORPORATE
                                                                                                                            REPORT
                                                                                                                            SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                              3
Page 4
             SCOPE OF 2023 ANNUAL REPORT
             & SUSTAINABILITY REPORT



     Preparation of the 2023 Annual Report and Sustainability Report refers to the prevailing regulations on the
     mandatory information disclosure in the Annual Report and Sustainability Reports, which are presented in several
     chapters, as follows:




          Performance Highlights                                        Corporate Governance
     Presenting comparative financial information for 5 (five)     Presenting information about the implementation of
     fiscal years.                                                 corporate governance implemented by the Company in
                                                                   accordance with prevailing provisions and criteria.

          Management Report
                                                                        Sustainability Report
     Presenting information about the supervisory report
     and implementation of strategic policies, achievement         Presenting    data     and     information  concerning
     of the fiscal year and performance assessment as well         the fulfillment of Sustainability Report including
     as corporate governance implementation from the               environmental; employment, occupational, health and
     management perspective.                                       safety; social and community development aspects;
                                                                   and responsibility to customers, and other information
                                                                   according to the prevailing regulation.
          Corporate Profile
     Presenting general information about the Company,                  Audited Financial Statements
     milestone, vision and mission, as well as other information
     related to the Company at corporate level.                    Presenting a comprehensive audited financial statements
                                                                   including the independent auditor’s opinion.

          Management Discussion & Analysis
     Presenting analysis on the Company’s performance
     throughout the fiscal year including macroeconomics
     and industry overview, achievements by business line and
     business support, analysis on financial performance, and
     other information.




44
Page 5
PT BUSSAN AUTO FINANCE




                                                                                                                                 HIGHLIGHTS
                                                                                                                                 PERFORMANCE
            ELEVATE & OPTIMIZE,
            LET’S SPEED UP!




                                                                                                                                 REPORT
                                                                                                                                 MANAGEMENT
IN 2023, WE                           The crafting process requires perseverance and precision, starting from
                                      materials selection, soaking, and tuning process.
ASSEMBLED OUR
ENERGY IN A PROCESS                   Angklung does not create beautiful melodies without being played as one. It
                                      takes collaboration and concentration to create harmonious rhythms.
TO CRAFT ANGKLUNG,




                                                                                                                                 PROFILE
                                                                                                                                 CORPORATE
ONE OF THE BAMBOO                     This represents our spirit, which is inspired by our corporate values as a essential
                                      values, to build resilience in supporting sustainable growth achievement.
ART WORKS.
                                      Aside the challenges faced by the Company in 2023, we keep elevating
                                      ourselves with tactical and strategic steps to pursue and have better
                                      preparation in the upcoming years. We continue to emphasize the optimizing
                                      of processes, resources and opportunities to sustain growth towards the
                                      leading and trusted company.




                                                                                                                                 DISCUSSION & ANALYSIS
                                                                                                                                 MANAGEMENT
             2021                                   2022                                        2023




                                                                                                                                 GOVERNANCE
                                                                                                                                 CORPORATE
                                                                                                                                 REPORT
                                                                                                                                 SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                   5
Page 6
    TABLE OF
    CONTENTS




                  TABLE OF
                  CONTENTS


          3    Disclaimer                  86    CORPORATE PROFILE             176   Solvency and
                                                                                     Collectability Ratio
          4    Scope of 2023 Annual        88    BAF at a Glance
               Report & Sustainability                                         179   Capital Structure
               Report                      91    Mission, Vision &
                                                 Corporate Values              182   Capital Goods
          5    Theme Explanation                                                     Investment and Material
                                           94    Business Line                       Commitment Related
          6    Table of Contents
                                           95    Product & Services            183   Comparison Between
                                                                                     Performance Target and
                                           96    Organization Structure              Realization in 2023, and
          8    PERFORMANCE                                                           Projection in 2024
               HIGHLIGHTS                  98    Board of Commissioners
                                                 Profile                       186   Changes in Accounting
          10   2023 Performance                                                      Policy, Reasons, and
               Highlights                  104   Board of Directors Profile          Impacts to Financial
                                                                                     Statements
          14   Sustainability Highlights   111   Associate Directors Profile
               2023                                                            187   Changes in Rules and
                                           114   Shareholders Composition            Regulations in 2023
          18   Financial Highlights
                                           118   Shares Listing Chronology     192   Dividend Payment Policy
          24   Bonds Highlights
                                           119   Other Securities Listing      194   Material Information on
          28   Shares Listing Chronology         Chronology                          Investmen, Expansion,
                                                                                     Divestmen, Merger,
          29   Significant Events          124   Capital Market Supporting           Acquisiton or Debt/
                                                 Professions and                     Capital Restructuring
          47   Award 2023                        Institutions
                                                                               194   Material Information
                                                                                     with Conflict of Interest
                                                                                     and/or Affiliated Party
          54   MANAGEMENT REPORT           128   MANAGEMENT                          Transacion
                                                 DISCUSSION &
          57   Report from the Board of          ANALYSIS                      195   Management and
               Commissioners                                                         Employees Shares
                                           130   Macroeconomic Overview              Ownership Program
          69   Report from the Board of
               Directors                   133   Financing Industry            196   Subsequent Material
                                                 Overview                            Information and Facts
          84   Statement of the Board of                                             After the Accountant
               Commissioners Regarding     137   Everview of Line Business           Reporting Period
               Responsibility for PT
               Bussan Auto Finance         154   Marketing & Operasional       196   Realization of Public
               Annual Report 2023                                                    Offering Proceeds
                                           162   Human Resources
          75   Statement of the Board                                          198   Business Prospects
               of Directors Regarding      167   Information Technology
               Responsibility for PT
               Bussan Auto Finance         170   Financial Review
               Annual Report 2023




6
Page 7
PT BUSSAN AUTO FINANCE




                                                                                                                 HIGHLIGHTS
                                                                                                                 PERFORMANCE
                                                                                                                 REPORT
                                                                                                                 MANAGEMENT
200      CORPORATE                    287    Corporate Secretary         412   Social Responsibility
         GOVERNANCE
                                      295    Internal Audit Unit         428   Optimizing Service to
202      Implementation of                                                     Consumers
         Corporate Governance         300    Eksternal Auditor (Public
                                             Accountant)                 449   Improving Environmental
205      General Meeting of                                                    Performance Through




                                                                                                                 PROFILE
                                                                                                                 CORPORATE
         Shareholders                 304    Risk Management                   Green Operations

213      Board of Commissioners       323    Internal Control System     467   Feedback Form

226      Board of Directors           327    Whistleblowing System,      469   Response on Feedback
                                             Anti-Corruption,                  to Previous Year’s
238      Committees Under the                Anti-Fraud and Anti-              Sustainability
         Board of Commissioners              Money Laundering
                                             and Combating the           469   Written Verification from
238         Audit Committee                  Financing of Terrorism            Independent Party
                                             and Financing of the
244         Nomination and                   Proliferation of Weapons    470   Cross Reference




                                                                                                                 DISCUSSION & ANALYSIS
                                                                                                                 MANAGEMENT
            Remuneration                     of Mass Destruction               According to SEOJK
            Committee                        Financing (AML CFT &              No.16/SEOJK.04/2021
                                             PPMWDF) Policy                    Concerning the Form and
248      Risk Monitoring                                                       Content of the Annual
         Committee                    336    Code of Conduct                   Report of Issuers or Public
                                                                               Companies
252      Committee Under the          341    Administrative Sanction
         Board Of Directors                                              473   Cross Reference According
                                      341    Important Cases                   to OJK Regulation No.51/
252         Corporate Social                                                   POJK.03/2017 Concerning
            Responsibility                                                     the Implementing of
            Committee                                                          Sustainable Finance
                                      342    SUSTAINABILITY                    for Financial Service
256         Business Continuity              REPORT                            Institutions, Issuers, and
            Management                                                         Public Companies
            Committee                 344    About the Sustainability
                                             Report                      477   List of Disclosure
                                                                                                                 GOVERNANCE
                                                                                                                 CORPORATE



261         Occupational Health                                                According to Global
            and Safety Committee      345    Sustainability Strategy           Reporting Initiative (GRI)

267         IT Steering Committee     353    Impact Limitations and      481   Network Address
                                             Management Approach
273         Digitalization
            Committee                 361    Sustainability Governance
                                                                         498   AUDITED FINANCIAL
277         Risk Management           378    Sustainability Economic           STATEMENTS
            Committee                        Performance

282      Sharia Business Unit and     388    Employment,
         Sharia Supervisory Board            Occupational Health and
                                             Safety Practices
                                                                                                                 REPORT
                                                                                                                 SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                   7
Page 8
     PERFORMANCE
     HIGHLIGHTS




                        PERFORMANCE
                        HIGHLIGHTS
           ANGKLUNG IS A TRADITIONAL MUSICAL INSTRUMENT THAT IS ENTIRELY MADE OF BAMBOO.
           IT HAS THE NATURE TO BE STRONGER AS AGES, BOTH THE STEM AND ROOTS, REPRESENTING
           OUR SPIRIT TO REMAIN STRONG IN DEALING WITH VARIOUS CHALLENGES.




88
Page 9
                         PERFORMANCE   MANAGEMENT   CORPORATE   MANAGEMENT              CORPORATE    SUSTAINABILITY
                         HIGHLIGHTS    REPORT       PROFILE     DISCUSSION & ANALYSIS   GOVERNANCE   REPORT




                                                                                                                      9
                                                                                                                      2023 ANNUAL REPORT & SUSTAINABILITY REPORT
PT BUSSAN AUTO FINANCE
Page 10
     PERFORMANCE
     HIGHLIGHTS




                     2023 PERFORMANCE
                     HIGHLIGHTS


                        Total                                Total Assets




                                                             14.1
                        New Financing




                        11.0
                        Rp Trillion
                                                             Rp Trillion




                   Total Account                       Total Liabilities




                                                       11.4
                   Receivable - Net




                   12.8
                   Rp Trillion
                                                       Rp Trillion




                                               Total Equities




                                               2.7
                                               Rp Trillion




                                        Non-Performing
                                        Financing (NPF)




                                        1,02 %
10
Page 11
PT BUSSAN AUTO FINANCE




                                                                              HIGHLIGHTS
                                                                              PERFORMANCE
                                                                              REPORT
                                                                              MANAGEMENT
Total Revenues




4.6



                                                                              PROFILE
                                                                              CORPORATE
Rp Trillion




Profit for the Year                             Total Active Customers




370.6                                           > 860,000

                                                                              DISCUSSION & ANALYSIS
                                                                              MANAGEMENT
Rp Billion




                                             Total Employee




                                             3,774                            GOVERNANCE
                                                                              CORPORATE




                                       Total Networks




                                       245
                                                                              REPORT
                                                                              SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                               11
Page 12
     PERFORMANCE
     HIGHLIGHTS




                         2023 PERFORMANCE
                         HIGHLIGHTS




           5.9
           Rp trillion                                            3.1
                                                                  Rp trillion
           New Yamaha
           Motorcycle Financing                                   BAF
                                                                  Dana Syariah
                                                                                            39.0%
                                                                                                    1.3
                                                                                                    Rp trillion
                               5.4%




           The Company’s new
                                      411.5
                                      Rp billion
                                                                                                    Car
                                                                                                    Financing
           financing for new Yamaha


                                                                                                                       20.0%
                                                                  As the Company’s sharia
           motorcycle decreased       Used Motorcycle             financing product, BAF
                                                           3.0%




           5.4% (YoY) to Rp5.9        Financing                   Dana Syariah booked a
           trillion by the end of                                 39.0% (YoY) increase
           2023.                                                  in new financing                  The Company’s car
                                                                  disbursement from Rp2.2           financing new decreased
                                                                  trillion to Rp3.1 trillion by     20.0% (YoY) to Rp1.3
                                                                  the end of 2023.                  trillion by the end of
                                      The disbursement of used                                      2023.
                                      motorcycle financing
                                      successfully boosted
                                      this year’s growth with
                                      the financing amount
                                      reached Rp411.5 billion
                                      or grew 3.0% (YoY) at the
                                      end of 2023.




12
Page 13
PT BUSSAN AUTO FINANCE




                                                                                                                              HIGHLIGHTS
                                                                                                                              PERFORMANCE
                                                                                                                              REPORT
                                                                                                                              MANAGEMENT
                                                                                                                              PROFILE
                                                                                                                              CORPORATE
                                                                                           14.7
                              25.3
                                                                                           Rp billion

                                                                                           BAF
                              Rp billion




                                                                                                                 37.5%
                                                                                           AdiDana
                              Agriculture
                                                           13.1



                                                                                                                              DISCUSSION & ANALYSIS
                                                                                                                              MANAGEMENT
                              Machineries

267.8
                              Financing                    Rp billion
                                                    7.4%




Rp billion                                                 BAF                             This product, which was
                                                           PraDana                         launched in 2022 and
Multiproducts                 The Company’s
                                                                                           is intended for working
                                                                                   67.3%




Financing                     agricultural machinery
                                                                                           capital and other needs
(ELECTRONIC, GADGET AND                                                                    using residential buildings
FURNITURE FINANCING)          financing decreased 7.4%                                     & shophouses, has also
                              (YoY) by Rp25.3 billion at                                   disbursed a total of
                              the end of 2023.             This unsecured micro
                                                                                           Rp14.7 billion or grew
                      41.0%




                                                           financing product for
                                                                                           37.5% by the end of
                                                           productive purposes,
                                                                                           2023.
                                                           which was launched
The Company’s multi-                                       in 2022, recorded new
                                                                                                                              GOVERNANCE
                                                                                                                              CORPORATE




product financing                                          financing of Rp13.1
decreased 41.0% (YoY) to                                   billion.
Rp267.8 billion at the end
of 2023.
                                                                                                                              REPORT
                                                                                                                              SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                               13
Page 14
     PERFORMANCE
     HIGHLIGHTS




                           SUSTAINABILITY
                           HIGHLIGHTS 2023

                                                                  Economic Aspects

                                  Total Xtra
                                  BAF Agent


                                  53,189                                         Freelancer   Housewife                 Students
                                  2023                      53,189
                                  2022                    44,004                 21.0%        45.3%                     25.1%
                                  2021                 32,660


                                  A total of Rp76.6 billion
                                  incentives have been
                                  given to Xtra BAF agents
                                                                                 Employee     Public Figure             Others
                                  in 2023.
                                                                                 5.9%         1.3%                      1.4%

                                  Total Environmentally                                       Total Micro Small
                                  Friendly Transportation                                     Medium Enterprises
                                  Financing                                                   Financing


                                  975.9                                                       5.1
                                                                                              Rp trillion
                                  Rp billion

                                  2023                        975.9                           2023                           5.1
                                  2022             353.0                                      2022                           5.0
                                  2021       0.4                                              2021                     3.7




           Total Portfolio Criteria for
           Sustainable Business Activities
           2023                                            2022                               2021

           7.1%    36.9%                                   4.6%   35.1%                       0.003%   31.5%



                     44.1%                                         39.7%                           31.5%

                      Environmentally Friendly                        MSMEs Contribution to
                                                                                                           Total Portfolio
                      Transportation Contribution to                  Total Portfolio
                      Total Portfolio




14
Page 15
PT BUSSAN AUTO FINANCE




                                                                                                          HIGHLIGHTS
                                                                                                          PERFORMANCE
                                             Social Aspects

                   Female Employees                                 Female Employees
                   to Number of                                     Occupying Senior
                   Employees                                        Management Level


                   22.5




                                                                                                          REPORT
                                                                                                          MANAGEMENT
                   in %                                             22.4
                                                                    in %
                   2023               22.5
                   2022               22.0                          2023                     22.4
                   2021               20.6                          2022                     21.1
                                                                    2021                     22.0




                                                                                                          PROFILE
                                                                                                          CORPORATE
Engagement                            Average Training              Total
Index (BAF                            Hours for Each                Training Cost
Employee Survey)                      Employee


84                                    19.4                          19.6



                                                                                                          DISCUSSION & ANALYSIS
                                                                                                          MANAGEMENT
index/score                           hour/employee                 Rp billion


2023                 84               2023                   19.4   2023                      19.6
2022                 83               2022                   18.6   2022               7.5
2021                 81               2021            11.0          2021         3.1




                                                                                                          GOVERNANCE
                                                                                                          CORPORATE




Total Participants in                 Customer                      Customer Complaint
Financial Literacy                    Satisfaction Level            Completion Rate



461                                   91                            99
participants                          in %                          in %

2023                 461              2023                   91     2023                      99
                                                                                                          REPORT
                                                                                                          SUSTAINABILITY




2022                 451              2022                   88     2022                     88
2021                 471              2021                   88     2021                     88




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                           15
Page 16
     PERFORMANCE
     HIGHLIGHTS




                                 BAF Caring
                                 for Children


                                 >20K                 beneficiaries
                                                      (period 2019-2023)          >80               cities in Indonesia
                                                                                                    (period 2019-2023)

                                 Through BAF Caring for Children, the Company continues to improve the quality of life and
                                 education of children throughout Indonesia, also as the manifestation of our support towards
                                 Sustainable Development Goals (SDGs).




           BAF                                BAF Charity in               BAF Year End                           Foster
           Anniversary                        Ramadhan                     Charity                                Parents
           Assistance in                      The Company’s                The Company’s                          Program to assist the
           education, apparel/                concern for the              concern for the society                educational needs of
           food, health and                   surrounding society          around the Company’s                   elementary school (SD)
           other donations for                during Ramadhan.             head office at the end                 children in rural areas.
           Indonesian children                                             of 2023.
           on the occasion                    beneficiaries in 2023                                               beneficiaries in 2023


                                              ±420                                                                ±680
           of the Company’s                                                beneficiaries in 2023


                                                                           ±300
           anniversary.

           beneficiaries in 2023              2019-2023: ±4,600                                                   2020-2023: ±2,300


           ±650
                                                                           2019-2023: ±3,650


           2019-2023: ±7,200




           BAF                                Safety Riding                BAF
           United for Care                    Science for Kids             Lions Run
           The program,                       In collaboration with
                                                                           Charity run in
           established in                     Yamaha, the Company
                                                                           order to share and
           2023, aims to share                provides education
                                                                           collect donations for
           happiness with                     to children about the
                                                                           Indonesian children.
           the children at the                importance of driving
           Foundation.                        safety from an early
                                              age.
                                                                           beneficiaries in 2023
           beneficiaries in 2023


           ±1,177
                                              beneficiaries in 2023
                                                                           ±320*
                                              ±365                         2019-2023: ±76,000
                                              2020-2023: ±1,000            *)   Distribution to beneficiaries will continue
                                                                                until the allocated funds have been collected




                                 Total CSR Cost


                                 2.1                   2023
                                                       2022
                                                       2021
                                                                              2.1
                                                                              2.1
                                                                            1.8
                                 Rp billion




16
Page 17
PT BUSSAN AUTO FINANCE




                                                                                                                                  HIGHLIGHTS
                                                                                                                                  PERFORMANCE
                                                     Environmental Aspects




                                                                                                                                  REPORT
                                                                                                                                  MANAGEMENT
Paper Usage*                                     Electricity Usage**                          Water Usage***


465                                              27,619                                       266

                                                                             3.4%




                                                                                                                  6.1%
rim                                              kWh                                          m3
                           38.0%




2023                465                          2023                        27,619           2023                 266




                                                                                                                                  PROFILE
                                                                                                                                  CORPORATE
2022                      750                    2022                        26,593           2022                249
2021                       815                   2021                       24,909            2021                 240



Remarks: The increase in electricity and water usage is in line with the increase in WFO capacity since the lifting of the
Covid-19 pandemic status.

*) Head Office
**) Per networks (including head office)
***) Per networks (including head office) comprise ground water and Water Supplied by PDAM




                                                                                                                                  DISCUSSION & ANALYSIS
                                                                                                                                  MANAGEMENT
BAF ECO Move
The Company’s greening movement is the Company’s initiation in taking part in reducing carbon emissions.




Trees Donated                        Consumers Participated               Employees & Partners       Big Cities
                                                                          Involved in 2023           in 2023
                                                                                                                                  GOVERNANCE
                                                                                                                                  CORPORATE



in 2023                              in 2023


20K                                  >89K                                 647                        6
2019-2023: ±135K                    2019-2023: ±324K                      2019-2023: ±1,300          2019-2023: 18
                                                                                                                                  REPORT
                                                                                                                                  SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                   17
Page 18
     PERFORMANCE
     HIGHLIGHTS




                             FINANCIAL
                             HIGHLIGHTS
           I N B I L L I O N R U PIAH

             DESCRIPTION                           2023          2022          2021          2020          2019
             Revenue

               Financing income                     4,477.0       4,248.8       3,833.9       3,332.7     3,478.6

               Interest income                            2.8           2.3           7.7       18.2         11.3

               Other income                            89.1          85.8          58.3         57.2         54.4

             Total revenue                          4,568.9       4,336.9       3,899.9      3,408.0      3,544.2

             Expenses
               Salaries and allowances               559.2         560.8         541.4         600.7        665.6
               Provision for credit losses          1,936.9       1,352.1       1,368.9       1,686.0     1,105.4
               Interes and financing charges         687.9         589.6         583.5         775.2        725.1
               General and administrative            869.6         790.1         728.8         632.5        574.2
               expenses

               Loan arrangement                           8.1        17.8          29.8         38.2         46.2
               Marketing expense                       28.6          49.2          33.0         16.7         28.2
             Total expense                          4,090.3       3,359.6       3,285.4      3,749.4      3,144.7
             Profit Before Tax                       478,6         977.3         614.5        (341.4)       399.5
             Income Tax Expense                     (108.1)       (294.2)       (140.8)         58.8      (105.2)
             Profit for The Year                     370.6         683.1         473.7        (282.6)     294,275
             Other Comprehensive Income

               Items that will not be
               reclassified subsequently to
               profit or loss

                 Remeasurement of the                 (7.4)             8.1        12.7         (4.1)      (11.1)
                 post employment benefits
                 obligation, net of tax

               Items that may be reclassified
               subsequently to profit or loss

                 Unrealized (loss) gain on fair        30.4        (51.0)          50.7             1.2    (57.5)
                 value of derivative financial
                 instruments hedging reserve,
                 net of tax

             Total other comprehensive                23.0         (42.9)         63.4          (2.9)      (68.6)
             income (expense) for the year
             net of tax

             Total Comprehensive Income              393.6         640.1         537.1        (285.5)      225.67
             (Loss) for The Period

             Earning Per Share                    1,048,027     1,931,976     1,339,837     (799,194)     832,293
             (in fully Rupiah amount)




18
Page 19
PT BUSSAN AUTO FINANCE




                                                                                                               HIGHLIGHTS
                                                                                                               PERFORMANCE
I N BI L L I O N RUPIAH

 DESCRIPTION                             2023         2022         2021         2020         2019
 Assets

   Cash on hand and in banks                 334.0      273.3        173.1        687.4        302.8




                                                                                                               REPORT
                                                                                                               MANAGEMENT
   Financing receivables - net           12,839.8     12,712.9     11,003.5     10,082.0     11,620.8

   Derivative receivables                     63.3      128.5          23.3            2.1       11.3

   Other accounts receivable - net           121.3        67.1         70.0         80.4         73.7

   Advances                                   31.6        30.5         32.9         27.8         10.0

   Investment in convertible bonds                -            -            -            -          5.0

   Prepaid expenses                           36.2        31.0         33.2         29.3         63.3

   Claim on Tax Refund                            -            -            -            -            -

   Prepaid taxes                                  -            -            -            -          0.1




                                                                                                               PROFILE
                                                                                                               CORPORATE
   Property and equipment - net of           337.5      336.9        327.2        340.6        356.6
   accumulated depreciation

   Computer software - net of                 77.2        81.8         77.8         43.1         61.0
   accumulative amortization

   Deferred tax assets - net                 230.6      227.0        207.7        215.8        129.1

   Right-of-use asset - net                   28.1        27.9         33.1         43.6              -

   Others assets                                2.5          2.6          2.8          8.1          8.5




                                                                                                               DISCUSSION & ANALYSIS
                                                                                                               MANAGEMENT
 Total Assets                            14,102.0     13,919.5     11,984.6     11,560.2     12,642.2




                                                                                                               GOVERNANCE
                                                                                                               CORPORATE
                                                                                                               REPORT
                                                                                                               SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                19
Page 20
     PERFORMANCE
     HIGHLIGHTS




           I N B I L L I O N R U PIAH

             DESCRIPTION                               2023         2022         2021       2020         2019
             Liabilities

               Bank loans                               5,687.2      6,381.5      5,227.1    6,915.5      7,393.5

               Derivative payables                         14.9            6.9       13.8       86.4       185.2

               Taxes payable                               54.5         87.7         50.7          5.7       24.8

               Other accounts payable                    270.7        235.5        189.8      184.1        234.8

               Accrued expenses                          314.4        360.2        355.9      348.0        413.9

               Bonds payable                            4,873.7      4,141.3      3,918.2    2,293.5      2,342.6

               Lease Liabilities                              3.5          6.1       10.2       14.1            -

               Post-employmeny benefit                   165.7        137.5        154.0      185.3        160.8
               obligation

             Total Liabilities                         11,384.6     11,356,7      9,919,7   10,032,5     10,755,4

             Equity

               Capital stock
               - Rp1,000,000 par value authorized,       353.6        353.6        353.6      353.6        353.6
               subscribed and paid-up 353,571 shares

               Additional paid-in capital                235.9        235.9        235.9      235.9        235.9

               Other comprehensive income                (35.0)       (58.0)       (15.1)     (78.5)       (75.6)

               Retained earnings

                 Approriated                               71.4         71.4         71.4       71.4         71.4

                 Unapproriated                          2,091.5      1,960.0      1,419.1     945.3       1,301.5

             Total Equity                               2,717.4      2,562.8      2,064.9    1,527.7      1.886.7

             Total Liabilities and Equity              14,102.0     13,919.5     11,984.6   11,560.2     12.642.2




20
Page 21
PT BUSSAN AUTO FINANCE




                                                                                                                                                                                         HIGHLIGHTS
                                                                                                                                                                                         PERFORMANCE
I N BI L L I O N RUPIAH

  DESCRIPTION                                                      2023                    2022                     2021                    2020                     2019
  Key Financial Ratios

  Profitabiliy




                                                                                                                                                                                         REPORT
                                                                                                                                                                                         MANAGEMENT
  Gross Profit Margin (%)                                             10.5%                   22.5%                   15.8%                   -10.0%                   11.3%

  Asset Turnover (%)                                                  32.4%                   31.2%                   32.5%                    29.5%                   28.0%

  Net Profit Margin (%)                                                 8.1%                  15.8%                   12.1%                     -8.3%                    8.3%

  Return on Equity (%)                                                13.6%                   26.7%                   22.9%                   -18.5%                   15.6%

  Return on Asset (%)                                                   2.6%                    4.9%                    4.0%                    -2.4%                    2.3%

  Current Ratio (%)                                                 126.8%                  187.3%                  116.4%                     94.2%                 125.6%

  Solvency

  Debt to Equity Ratio (x)                                                 4.2                      4.4                     4.8                     6.6                      5.7




                                                                                                                                                                                         PROFILE
                                                                                                                                                                                         CORPORATE
  Debt to Assets Ratio (x)                                                 0.8                      0.8                     0.8                     0.9                      0.9

  Revenues / Total Equity (x)                                              1.7                      1.7                     1.9                     2.2                      1.9

  Gearing Ratio (x)                                                        3.9                      4.1                     4.4                     6.0                      5.2

  Financing Receivables Quality

  Non Performing Financing                                               1.02                     0.91                    0.58                    0.40                     0.84
  - NPF (%)*

*) The figures are calculated referring to the Financial Service Authority (OJK) Circular Letter No. 1/SEOJK.05/2016 concerning Financial Soundness Rating for Financing Company.




                                                                                                                                                                                         DISCUSSION & ANALYSIS
                                                                                                                                                                                         MANAGEMENT
         TOTAL                                                                                        TOTAL FINANCING
         NEW FINANCING                                                                                RECEIVABLES - NET
         Rp billion                                                                                  Rp billion



                                                                                                                                             12,713         12,840
                                                                                               11,621
                                                10,898         10,944                                                         11,003
    9,990                                                                                                     10,082
                                  9,567

                      7,128
                                                                                                                                                                                         GOVERNANCE
                                                                                                                                                                                         CORPORATE




   2019           2020           2021           2022           2023                            2019            2020           2021           2022           2023
                                                                                                                                                                                         REPORT
                                                                                                                                                                                         SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                                                                          21
Page 22
     PERFORMANCE
     HIGHLIGHTS




                   TOTAL                                               TOTAL
                   ASSETS                                              EQUITY
                   Rp billion                                          Rp billion


                                                 13,920   14,102
             12,642
                            11,560      11,985



                                                                                                       2,563     2,717
                                                                    1,887                    2,064
                                                                                    1,523




             2019           2020        2021     2022     2023     2019         2020        2021      2022      2023




                   TOTAL                                               PROFIT (LOSS)
                   REVENUE                                             BEFORE TAX
                   Rp billion                                          Rp billion

                                                          4,569                                        977
                                                 4,337
                                        3,899
             3,544              3,408
                                                                                             614
                                                                                                                 479
                                                                    399




             2019           2020        2021     2022     2023     2019         2020        2021      2022      2023


                                                                                    -341




                   NET PROFIT (LOSS)                                   TOTAL ACTIVE
                   FOR THE YEAR                                        FINANCING CONTRACT
                   Rp billion

                                                                   929,560
                                                                                                      878,204   860,153
                                                                               820,623      822,605
                                                  683


                                         474
                                                           371
              294




             2019           2020        2021     2022     2023     2019         2020        2021      2022      2023



                                -283




22
Page 23
                         PERFORMANCE   MANAGEMENT   CORPORATE   MANAGEMENT              CORPORATE    SUSTAINABILITY
                         HIGHLIGHTS    REPORT       PROFILE     DISCUSSION & ANALYSIS   GOVERNANCE   REPORT




                                                                                                                      23
                                                                                                                      2023 ANNUAL REPORT & SUSTAINABILITY REPORT
PT BUSSAN AUTO FINANCE
Page 24
     PERFORMANCE
     HIGHLIGHTS




                           BONDS
                           HIGHLIGHTS

                                                                                                      Sukuk Mudharabah I
                                                                                                         Phase II 2020
                                                                                                          Amount: Rp485 Bn
                                                                                                           Rating: AAA(idn)




                                                                                                      Sukuk Mudharabah I
                                                                                                         Phase I 2020
                                                                                                          Amount: Rp15 Bn
                                                                                                          Rating: AAA(idn)




                   Bond I 2017                 Bond II 2018                Bond III 2019               PUB I Phase I 2020
                   Amount: Rp500 Bn           Amount: Rp1.0 Tn              Amount: Rp1.5 Tn              Amount: Rp100 Bn
                     Rating: idAA               Rating: idAA                 Rating: idAAA                 Rating: AAA(idn)




                        2017                       2018                         2019                           2020




           In 2023, the Company continued the issuance of Shelf-         nine eight percent) per annum and term of 370
           Registration Bonds (PUB) of Shelf-Registration Bonds II       (three hundred and seventy) calendar days since the
           Bussan Auto Finance.                                          Issuance Date.
                                                                      2. Series B
                                                                         Total Bonds Series B Principal amounted
                Shelf-Registration Bonds II Bussan                       Rp841,000,000,000 (eight hundred and forty-one
                Auto Finance Phase III Year 2023                         billion Rupiah) with fixed interest rate of 7.10%
                                                                         (seven-point one zero percent) per annum and term
           In April 2023, the Company issued and offered Shelf-          of 3 (three) years since the Issuance Date.
           Registration Bonds II Bussan Auto Finance Phase III
           Year 2023 with bonds principal of Rp1,242,000,000,000      The Bonds Interest is paid quarterly, where the first
           (one trillion two hundred and forty two million Rupiah).   Bonds Interest had been paid on July 18, 2023,
           The Bonds were issued in 2 (two) series, as follows:       however, the last Bonds Interest, which is also the Bonds
           1. Series A                                                repayment will be paid on April 28, 2024 for Bonds
              Total Bonds Series A Principal amounted                 Series A and April 18, 2026 for Bonds Series B.
              Rp401,000,000,000 (four hundred and one billion
              Rupiah) with fixed interest rate of 5.98% (five-point




24
Page 25
PT BUSSAN AUTO FINANCE




                                                                                                                           HIGHLIGHTS
                                                                                                                           PERFORMANCE
                                                                                                                           REPORT
                                                                                                                           MANAGEMENT
  PUB I Phase IV 2021           PUB II Phase II 2022
     Amount: Rp500 Bn               Amount: Rp1.2 Tn
      Rating: AAA(idn)           Rating: AAA(idn) / idAAA




                                                                                                                           PROFILE
                                                                                                                           CORPORATE
  PUB I Phase III 2021          PUB II Phase I 2022          PUB II Phase IV 2023
     Amount: Rp775 Bn              Amount: Rp100 Bn              Amount: Rp458 Bn
      Rating: AAA(idn)           Rating: AAA(idn) / idAAA      Rating: AAA(idn) / idAAA




  PUB I Phase II 2021            PUB I Phase V 2022          PUB II Phase III 2023
      Amount: Rp1.2 Tn             Amount: Rp500 Bn              Amount: Rp1.24 Tn
      Rating: AAA(idn)           Rating: AAA(idn) / idAAA      Rating: AAA(idn) / idAAA




                                                                                                                           DISCUSSION & ANALYSIS
                                                                                                                           MANAGEMENT
          2021                           2022                          2023




                                                            1. Shelf-Registration Bonds II Phase I Series A Year
     Shelf-Registration Bonds II Bussan                        2022 with the bonds principal of Rp88,500,000,000
     Auto Finance Phase IV Year 2023                           (eighty-eight billion five hundred million Rupiah)
                                                               and the interest of Rp1,007,916,765 (one billion
In September 2023, the Company issued and offered              seven million nine hundred and sixteen thousand
                                                                                                                           GOVERNANCE
                                                                                                                           CORPORATE



Shelf-Registration Bonds II Bussan Auto Finance                seven hundred and sixty five Rupiah). Regarding
Phase IV 2023 with bonds principal amounted                    the principal repayment and interest payments, the
Rp458,000,000,000 (four hundred and fifty-eight billion        Company has disclosed the information which was
Rupiah) with fixed interest rate of 6.50% (six-point five      also submitted to OJK and IDX through Company
zero percent) per annum and term of 3 (three) years            letter No. BAF/184/CP/VII/2023 dated July 18,
since the Issuance Date.                                       2023 concerning Disclosure of Information on
                                                               Principal Repayment and Final Interest Payment of
                                                               Shelf-Registration Bonds II Phase I Year 2022 Series
     Repayment and Last Interest                               A PT Bussan Auto Finance. Therefore, effective as
                                                               per July 17, 2023 PT Bussan Auto Finance’s Shelf-
In 2023, the Company has also fully paid the                   Registration Bonds II Phase I Year 2022 Series A is
bonds principal and final interest payments for the            no longer listed and traded at IDX.
following bonds:
                                                                                                                           REPORT
                                                                                                                           SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                            25
Page 26
     PERFORMANCE
     HIGHLIGHTS




           2. Shelf-Registration Bonds I Phase I Year 2020 and             and Final Interest Payment of Shelf-Registration
              Sustainable Sukuk Mudharabah I Phase I of 2020               Bonds I Phase I 2020 and Shelf-Registration Sukuk
              with the Bonds and Sukuk principal, respectively,            Mudharabah I Phase I 2020 PT Bussan Auto
              amounted Rp100,000,000,000 (one hundred                      Finance. Therefore, effective as per Agustus 4, 2023
              billion Rupiah) and Rp15,000,000,000 (fifteen                PT Bussan Auto Finance’s Shelf-Registration Bonds
              billion Rupiah) and the amount of interest/yield,            I Phase I of 2020 and the Shelf-Registration Sukuk
              respectively, amounted Rp2,062,500,000 (two                  Mudharabah I Phase I of 2020 is no longer listed
              billion sixty-two million five hundred thousand              and traded at IDX.
              Rupiah) and Rp309,375,000 (three hundred and
              nine million three hundred and seventy five thousand     3. Shelf-Registration Mudharabah Sukuk I Phase
              Rupiah). Regarding the principal repayment and              II Series B Year 2020 with the Sukuk principal
              interest payments, the Company has disclosed                of Rp112,000,000,000 (one hundred and twelve
              information, which was also submitted to the OJK            billion Rupiah) and the yield of Rp2,030,000. 000
              and IDX through the Company letter No. BAF/197/             (two billion thirty million Rupiah). Regarding the
              CP/VIII/2023 dated August 8, 2023 regarding                 principal repayment and interest payments, the
              Information Disclosure of Principal Repayment               Company has disclosed information, which was also



                                               BONDS NAME                                                     RATING

            Shelf-Registration I
            Shelf-Registration I Bussan Auto Finance Phase I Year 2020                                   AAA(idn) (Triple A)

            Shelf-Registration Sukuk Mudharabah I Bussan Auto Finance Phase I Year 2020                  AAA(idn) (Triple A)

            Shelf-Registration Sukuk Mudharabah I Bussan Auto Finance Phase II Year 2020 Series A        AAA(idn) (Triple A)

            Shelf-Registration Sukuk Mudharabah I Bussan Auto Finance Phase II Year 2020 Series B        AAA(idn) (Triple A)

            Shelf-Registration I Bussan Auto Finance Phase II Year 2021 Series A                         AAA(idn) (Triple A)

            Shelf-Registration I Bussan Auto Finance Phase II Year 2021 Series B                         AAA(idn) (Triple A)

            Shelf-Registration I Bussan Auto Finance Phase III Year 2021 Series A                        AAA(idn) (Triple A)

            Shelf-Registration I Bussan Auto Finance Phase III Year 2021 Series B                        AAA(idn) (Triple A)

            Shelf-Registration I Bussan Auto Finance Phase IV Year 2021                                  AAA(idn) (Triple A)

            Shelf-Registration I Bussan Auto Finance Phase V Year 2022                                   AAA(idn) (Triple A)

            Shelf-Registration II

            Shelf-Registration II Bussan Auto Finance Phase I Year 2022 Series A                         AAA(idn) (Triple A)

            Shelf-Registration II Bussan Auto Finance Phase I Year 2022 Series B                         AAA(idn) (Triple A)

            Shelf-Registration II Bussan Auto Finance Phase II Year 2022 Series A                    AAA(idn) & idAAA (Triple A)

            Shelf-Registration II Bussan Auto Finance Phase II Year 2022 Series B                    AAA(idn) & idAAA (Triple A)

            Shelf-Registration II Bussan Auto Finance Phase III Year 2023 Series A                   AAA(idn) & idAAA (Triple A)

            Shelf-Registration II Bussan Auto Finance Phase III Year 2023 Series B                   AAA(idn) & idAAA (Triple A)

            Shelf-Registration II Bussan Auto Finance Phase IV Year 2023                             AAA(idn) & idAAA (Triple A)




26
Page 27
PT BUSSAN AUTO FINANCE




                                                                                                                      HIGHLIGHTS
                                                                                                                      PERFORMANCE
   submitted to the OJK and IDX through the Company        thousand fifty Rupiah). Regarding the principal
   letter No. BAF/288/CP/VIII/2023 dated October 23,       repayment and interest payments, the Company
   2023 regarding Information Disclosure of Principal      has disclosed information, which was also submitted
   Repayment and Final Interest Payment of Shelf-          to the OJK and IDX through the Company letter
   Registration Sukuk Mudharabah I Phase II Year           No. BAF/368/CP/XII/2023 dated December 12,
   2020 Series B PT Bussan Auto Finance. Therefore,        2023 regarding Information Disclosure of Principal
   effective as per October 23, 2023, the Shelf-           Repayment and Final Interest Payment of Shelf-




                                                                                                                      REPORT
                                                                                                                      MANAGEMENT
   Registration Mudharabah Sukuk I Phase II Series         Registration Bonds II Phase II Year 2022 Series A
   B Year 2020 PT Bussan Auto Finance is no longer         PT Bussan Auto Finance. Therefore, effective as per
   listed and traded at IDX.                               December 12, 2023, Shelf-Registration Bonds II
                                                           Phase II Year 2022 Series A PT Bussan Auto Finance
4. Shelf-Registration Bonds II Phase II Series A Year      is no longer listed and traded at IDX.
   2022 with the Bonds principal of Rp655,000,000,000
   (six hundred and fifty five billion Rupiah) and the   Summary of the Company’s bonds and sukuk is
   interest of Rp10,880,277,050 (ten billion eight       presented in the following table.
   hundred eighty million two hundred seventy seven



  PRINCIPAL       INTEREST      INTEREST PAYMENT          ISSUANCE           MATURITY




                                                                                                                      PROFILE
                                                                                                                      CORPORATE
                                                                                                 REMARKS
   (Rp billion)     RATE           FREQUENCY                DATE               DATE


      100             8.25%           Quarterly              Aug 4, 2020       Aug 4, 2023       Fully Paid

        15            8.25%           Quarterly              Aug 4, 2020       Aug 4, 2023       Fully Paid

      373             5.75%           Quarterly             Oct 22, 2020      Oct 29, 2021       Fully Paid

      112             7.25%           Quarterly             Oct 22, 2020      Oct 22, 2023       Fully Paid

      500             4.90%           Quarterly             Apr 27, 2021       May 7, 2022       Fully Paid




                                                                                                                      DISCUSSION & ANALYSIS
                                                                                                                      MANAGEMENT
      725             6.90%           Quarterly             Apr 27, 2021      Apr 27, 2024           -

      150             3.75%           Quarterly             Sep 28, 2021        Oct 5, 2022      Fully Paid

      625             5.75%           Quarterly             Sep 28, 2021      Sep 28, 2024           -

      500             5.75%           Quarterly             Dec 15, 2023      Dec 15, 2024           -

      775             5.90%           Quarterly            Mar 17, 2022       Mar 17, 2025           -



     88.5             4.10%           Quarterly               Jul 5, 2022      Jul 15, 2023      Fully Paid

     11.5             7.00%           Quarterly               Jul 5,2022         Jul 5, 2025         -

      655             5.98%           Quarterly              Dec 2, 2022      Dec 12, 2023       Fully Paid

      545             7.75%           Quarterly              Dec 2, 2022       Dec 2, 2025           -
                                                                                                                      GOVERNANCE
                                                                                                                      CORPORATE




      401             5.98%           Quarterly             Apr 18, 2023      Apr 28, 2024           -

      841             7.10%           Quarterly             Apr 18, 2023      Apr 18, 2026           -

      458             6.50%           Quarterly              Sep 8, 2023        Sep 8, 2026          -
                                                                                                                      REPORT
                                                                                                                      SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                       27
Page 28
     PERFORMANCE
     HIGHLIGHTS




                        SHARES LISTING
                        CHRONOLOGY


           As of December 31, 2023, the Company has not executed      listed, including corporate action that caused changes
           initial public offering at Indonesia Stock Exchange        in the stocks, such as stock split, reverse stock, shares
           (IDX) or other stock exchanges, therefore, the Company     dividend, bonus shares, changes in shares par value,
           does not disclose the information, such as: total shares   converted securities issuance, as well as additional or
           outstanding, market capitalization based on price at       deduction of capital, or other information as disclosed
           the stock exchange where the stocks are listed, the        in Financial Service Authority Circular Letter Number 16/
           highest, lowest, and closing stock prices based on price   SEOJK.04/2021 concerning Annual Report Format and
           at the stock exchange where the stocks are listed, and     Contents for Issuers or Public Companies.
           trading volume at stock exchange where the stocks are




28
Page 29
PT BUSSAN AUTO FINANCE




                                                                                                                            HIGHLIGHTS
                                                                                                                            PERFORMANCE
            SIGNIFICANT
            EVENTS




                                                                                                                            REPORT
                                                                                                                            MANAGEMENT
 National Business Leader
 – Kick-Off Meeting 2023

  09 JANUARY 2023

 The Company held a National Business Leader – Kick-
 Off Meeting 2023 which was attended by among
 others leaders at network offices, Managers at head




                                                                                                                            PROFILE
                                                                                                                            CORPORATE
 office, Division Head, and Directors in order to evaluate
 previous year’s performance achievements, coordinate
 and strategic discussions on the Company’s plans and
 strategies for the year 2023. This activity is also an
 appreciation event for network offices that provide the
 best performance for the Company.




                                                                                                                            DISCUSSION & ANALYSIS
                                                                                                                            MANAGEMENT
                                                             Regional Meeting

                                                             10 JAN – 03 FEB 2023

                                                             The Company held a 2023 Regional Meeting which was
                                                             attended by leaders in network offices, Division Head,
                                                             and Directors in order to coordinate and have strategic
                                                             discussions on the Company’s plans and strategies in
                                                             each region for 2023.



                                                                                                                            GOVERNANCE
                                                                                                                            CORPORATE



 Indonesia Brand Champion 2023

  18 JANUARY 2023

 The Company won another Indonesia Brand
 Champions 2023 award from Infobrand. BAF is
 awarded for 3 award achievements throughout 2022
 organized by INFOBRAND.ID collaborated with TRAS N
 CO Indonesia, an independent survey agency, related
 to brand awareness (“Indonesia Digital Popular Brand
 Award 2022 for Car Financing”, “Indonesia Digital
 Popular Brand Award for Electronic Devices”), and “Top
 Executive Award 2022”, which was awarded for Ms.
 Lynn Ramli, President Director of BAF.
                                                                                                                            REPORT
                                                                                                                            SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                             29
Page 30
     PERFORMANCE
     HIGHLIGHTS




                                                                  Indonesia Excellence GCG Awards 2023

                                                                  31 JANUARY 2023

                                                                  The Company won Indonesia Excellence GCG Awards
                                                                  2023 organized by Warta Ekonomi based on desk
                                                                  research analysis, expert panels and media monitoring
                                                                  on BAF’s financial performance and strategic policy
                                                                  analysis throughout 2021 – 2022.

                                                                  Warta Ekonomi awarded “Excellence Good Corporate
                                                                  Governance Ethics in Diversification of Financing
                                                                  Products and Services” predicate for Multifnance
                                                                  category to BAF after assessed being consistent in
                                                                  implementing Good Corporate Governance (GCG) in
                                                                  managing the Company’s activities.




             Amendment to Articles of Association

             21 FEBRUARY 2023

             The Company amended the Articles of Association
             according to Circular Shareholders Resolutions as
             substitute of Extraordinary General Meetings of
             Shareholders dated February 21, 2023 following the
             adjustment with Indonesia Business Field Official
             Classification (KBLI).




                                                                  Top Brand Award 2023

                                                                  23 FEBRUARY 2023

                                                                  Marketing Magazine and Frontier Group again
                                                                  awarded the Company in Top Brand Award 2023 for
                                                                  “2 Wheels Automotive Leasing Company Category”.
                                                                  The Company was assessed capable to maintain brand
                                                                  equity, corporate image and create long-term loyalty.
                                                                  This year became the third year for the Company
                                                                  received TOP BRAND Award for the same category.
                                                                  TOP BRAND is a prestigious award for a brand given
                                                                  by Marketing Magazine based on result of national
                                                                  research conducted by Frontier Group in 15 major cities
                                                                  across Indonesia.




30
Page 31
PT BUSSAN AUTO FINANCE




                                                                                                              HIGHLIGHTS
                                                                                                              PERFORMANCE
 Indonesia Public Relation Awards 2023

  24 FEBRUARY 2023




                                                                                                              REPORT
                                                                                                              MANAGEMENT
 The Company received award from Warta Ekonomi with
 “Best Public Relations in Company Management on
 Strengthening Business Segmentation by Expanding
 Financing Ecosystem” predicate.




                                                                                                              PROFILE
                                                                                                              CORPORATE
                                                       Indonesia Best CEO 2022

                                                       28 FEBRUARY 2023

                                                       SWA Magazine awarded Ms. Lynn Ramli as Best CEO
                                                       based on the assessment done in December 2022.




                                                                                                              DISCUSSION & ANALYSIS
                                                                                                              MANAGEMENT
 Resignation of President Commissioner

  14 MARCH 2023

 The Company received resignation letter from
 Mr. Tetsuya Daikoku as President Commissioner.
 The resignation is effectively applied according to
                                                                                                              GOVERNANCE
                                                                                                              CORPORATE




 Annual General Meetings of Shareholders dated
 May 8, 2023.
                                                                                                              REPORT
                                                                                                              SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                               31
Page 32
     PERFORMANCE
     HIGHLIGHTS




                                                                     Indonesia Human Resources Awards 2023

                                                                     30 MARCH 2023

                                                                     The Company received the Best HR Management for
                                                                     the “Outstanding Integration of HR Development
                                                                     Plan and Strategies with Business Needs predicate in
                                                                     Multifinance Category” at Indonesia Human Resources
                                                                     Awards 2023 organized by WartaEkonomi.co.id
                                                                     Research and Consulting. The award was given based on
                                                                     result of media monitoring and content analysis done
                                                                     by WartaEkonomi.co.id Research and Consulting on the
                                                                     Company’s annual report and performance publication
                                                                     in social media, printed media and electronic media.
                                                                     The Company was assessed successful in implementing
                                                                     employee recruitment strategy, program and system as
                                                                     well as digital HR transformation, which contributed to
                                                                     build the Company’s reputation.




             CSR Ramadhan Shopping with Orphans,
             Dhuafa and People with Disability

             14 APRIL 2023

             BAF Ramadhan CSR Program Caring for Children
             2023 was carried out as manifestation of BAF’s social
             awareness. This program was expected to support the
             children in needs, especially approaching Idul Fitri.

             The event was held simultaneously at 12 locations
             across several cities in Indonesia, such as Aceh,
             Medan, Jakarta, Bogor, Bandung, Cianjur, Semarang,
             Purwokerto, Surabaya, Malang, Makassar and Ambon.




                                                                     Shelf-Registration Bonds II
                                                                     Phase III Year 2023 Issuance

                                                                     26 APRIL 2023

                                                                     The Company issued Shelf-Registration Bonds II Phase
                                                                     III Year 2023 with par values Rp1,242,000,000,000 at
                                                                     Indonesia Stock Exchange.




32
Page 33
PT BUSSAN AUTO FINANCE




                                                                                                                        HIGHLIGHTS
                                                                                                                        PERFORMANCE
 Annual GMS Fiscal Year 2022

  8 MAY 2023




                                                                                                                        REPORT
                                                                                                                        MANAGEMENT
 The Company’s Annual General Meetings of
 Shareholders (GMS) was held with all the resolutions
 and annual agenda, such as change in the Board
 of Directors and Board of Commissioners and
 amendment on the Company’s Articles of Association.




                                                        Indonesia Sharia Finance Awards 2023




                                                                                                                        PROFILE
                                                                                                                        CORPORATE
                                                        10 MAY 2023

                                                        Warta Ekonomi designated the Company’s Sharia
                                                        Business Unit as the winner of the Indonesia Sharia
                                                        Finance Awards 2023 with “Outstanding Utilization
                                                        of Multi-Channel Distribution to Expand Financing
                                                        Service” predicate in the Sharia Business Unit of Multi-
                                                        finance category. The Company’s Sharia Business
                                                        Unit was considered to play a role in development
                                                        programs, services, innovation and improving the




                                                                                                                        DISCUSSION & ANALYSIS
                                                                                                                        MANAGEMENT
                                                        Indonesian Sharia ecosystem. The award considered
                                                        a combination of media monitoring results on the
                                                        Company’s publications in the media, expert panels,
                                                        and quantitative research by analysing financial ratios
                                                        based on the Annual Report or Financial Statements for
                                                        2020-2021 period by considering capital, profitability,
                                                        liquidity, sensitivity to market risk, asset growth,
                                                        revenue and profits indicators.




 Indonesia WOW Brand 2023

  11 MAY 2023
                                                                                                                        GOVERNANCE
                                                                                                                        CORPORATE




 In annual awarding event, Indonesia WOW Brand
 2023, MarkPlus Inc. awarded BAF as the winner for
 “Motorcycle Leasing” category. Through an online
 survey held during January – February 2023 period
 distributed to more than 30,000 respondents in 13
 area across Indonesia, BAF was assessed successful
 in transforming brand awareness and achieved
 the highest Brand Advocacy in two wheels vehicle
 financing category.
                                                                                                                        REPORT
                                                                                                                        SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                         33
Page 34
     PERFORMANCE
     HIGHLIGHTS




                                                                       Indonesia Best CSR Awards 2023

                                                                       25 MAY 2023

                                                                       The Iconomics awarded Best CSR in Finance
                                                                       Sector Industry 2023 predicate to the Company
                                                                       at “Indonesia Best CSR Awards 2023”, its annual
                                                                       awarding event. The award was given based on
                                                                       Sustainability Report 2021 – 2022 and media
                                                                       monitoring done by The Iconomics on the Company’s
                                                                       Corporate Social Responsibility (CSR) activity in
                                                                       media. The social responsibility programs done by
                                                                       the Company were assessed fulfilling appropriateness
                                                                       in environmental, social, economic, health, climate
                                                                       change and educational aspects.




             Indonesia Financial Top Leader
             Awards 2023

             31 MAY 2023

             WartaEkonomi.co.id awarded Best Leader for
             Sustainability Acceleration through Diversification
             of Financing Products and Services predicate to Ms.
             Lynn Ramli, the Company’s President Director at
             Indonesia Financial Top Leader Awards 2023 for “the
             Multifinance Category with Assets of Rp10-30 trillion”.
             The award was based on research results combining
             the Company’s financial statements 2022 and media
             monitoring of publications of the Company in the
             media during January 2022 to May 2023 period.

             The award was given as an appreciation to leaders of
             financial institutions who are considered successful in
             carrying out their role in supporting the Company’s
             sustainability through the implementation of flexible,
             innovative financial strategies, digital acceleration,
             as well as empowering micro, small and medium
             communities.




                                                                       Indonesia Most Powerful Women
                                                                       Business Leader 2023

                                                                       27 JUNE 2023

                                                                       Ms. Lynn Ramli, the Company’s President Director,
                                                                       was appointed as Indonesia Most Powerful Women
                                                                       Business Leader from SWA.




34
Page 35
PT BUSSAN AUTO FINANCE




                                                                                                                         HIGHLIGHTS
                                                                                                                         PERFORMANCE
 CSR Safety Riding Science for Kids

  03 - 04 JULY 2023

 The Company held another CSR activity “BAF Caring
 for Children” with the theme “Safety Riding for Kids.”




                                                                                                                         REPORT
                                                                                                                         MANAGEMENT
 Through this CSR activity, the Company invited 40
 orphans from SOS Children’s Villages Indonesia
 Foundation and Alpha Indonesia Foundation. In
 this event, the Company received education about
 the importance of safety riding at highway, such as
 during riding a bicycle, walking at sidewalk and how to
 cross the road. In this event, the Company also gave
 donation to support education in form of stationary.




                                                            Indonesia CSR Award 2023




                                                                                                                         PROFILE
                                                                                                                         CORPORATE
                                                            6 JULY 2023

                                                            The Company received “Outstanding Program in
                                                            Accelerating Education and Welfare for Children
                                                            predicate in Multifinance Category” in Indonesia CSR
                                                            Awards 2023 held by WartaEkonomi.co.id. The award
                                                            was given based on results of research combining the
                                                            Company’s Annual Report and Sustainability Report
                                                            2022 as well as media monitoring of the Company’s
                                                            publications in the media during January 2022 to June




                                                                                                                         DISCUSSION & ANALYSIS
                                                                                                                         MANAGEMENT
                                                            2023 period.

                                                            This award is given as a form of appreciation to
                                                            the Company which was considered successful in
                                                            implementing sustainable CSR programs in building
                                                            a sustainable business for post-pandemic economic
                                                            growth.




 National Business Leader
 – Mid Year Meeting 2023

  7-26 JULY 2023
                                                                                                                         GOVERNANCE
                                                                                                                         CORPORATE




 The Company organized National Business Leader
 in mid-2023, which was attended by, among others,
 leaders in network offices, Division Heads, and Board of
 Directors a coordination and strategic discussion on the
 Company’s plan and strategy for 2023. The meeting
 also became an appreciation event for the network
 office with excellent performance to the Company.
                                                                                                                         REPORT
                                                                                                                         SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                          35
Page 36
     PERFORMANCE
     HIGHLIGHTS




                                                                    BAF ECO Move 2023

                                                                    22 JULY 2023

                                                                    The Company held a greening movement in 2023 by
                                                                    planting 20,000 mangrove seedlings on 6 coasts in
                                                                    Indonesia. The tree seedlings donated were donated
                                                                    from employees (BAFers), BAF Consumers (BAF
                                                                    Friends) who proposed financing with BAF during
                                                                    the 12 April – 31 May 2023, as well as contributions
                                                                    from BAF work or business partners, including New
                                                                    Yamaha Motorcycle partner dealers, as well as other
                                                                    BAF partners.




             Infobank Multifinance Award 2023

             27 JULY 2023

             The Company successfully named 19th Infobank
             Multifinace Awards 2023 for “financing companies
             with assets above Rp10 trillion” category, organized
             by Infobank. The Company received “very good”
             predicate from Infobank for Financing Companies
             based on the Financial Statements 2021 - 2022 using
             financial ratio approaches.

             This award became an appreciation for the Company
             which as considered successful achieving best
             performance throughout 2022 by recording positive
             growth along with the national economic recovery.




                                                                    BAF Lions Run 2023, Run Against Hunger!

                                                                    6 AUGUST 2023

                                                                    2023 became the finish line for BAF Lions Run series.
                                                                    This 5th year adapted the theme Run Against Hunger.
                                                                    This theme aimed to help alleviate hunger by raising
                                                                    Food Bank donations.

                                                                    BAF Lions Run 2023 was a hybrid type running event
                                                                    with a total of 4 offline running distance categories,
                                                                    which were 3K Fun Run, 5K, 10K and Half Marathon, as
                                                                    well as 3 virtual running distance categories options for
                                                                    the participants, such as 21K, 42K and 100K. BAF Lions
                                                                    Run 2023 was also closing of the Charity Run event, as
                                                                    well as a complementary medal for participants who
                                                                    participated every year.




36
Page 37
PT BUSSAN AUTO FINANCE




                                                                                                                       HIGHLIGHTS
                                                                                                                       PERFORMANCE
 Resignation of a Commissioner

  18 AUGUST 2023




                                                                                                                       REPORT
                                                                                                                       MANAGEMENT
 The Company received resignation letter from Mr.
 Jun Ikeda as the Company’s Commissioner. The
 resignation has been effectively applied based on
 Circular Shareholders Resolutions as Substitute of
 Extraordinary General Meetings of Shareholders on
 August 18, 2023.




                                                                                                                       PROFILE
                                                                                                                       CORPORATE
                                                         BOD Camp

                                                         22-23 AUGUST 2023

                                                         An annual meeting activity, which was organized by
                                                         the Company involving all of the Board of Directors
                                                         members and related Division Heads as participants
                                                         in conducting discussions and coordination related
                                                         to the Company’s current position, opportunities and
                                                         challenges as well as the Company’s strategic steps in




                                                                                                                       DISCUSSION & ANALYSIS
                                                                                                                       MANAGEMENT
                                                         the coming years.




 Indonesia Best Multifinance Awards 2023

  31 AUGUST 2023

 Warta Ekonomi awarded Outstanding Financial
 Performance and Providing Easily Accessed of
 Financing Submission Services to the Company for
 Multifinance Category with “Total Assets of Rp10 – 30
 trillion” in Indonesia Best Multifinance Award 2023.
                                                                                                                       GOVERNANCE
                                                                                                                       CORPORATE




 The survey was done by Warta Ekonomi on the
 Company’s financial statements for 2022 – 2023
 period by referring to some health indicators related
 to finance company businesses operations, such as
 asset growth, business income growth, profit growth,
 Non-Performing Financing (NPF) value, capital ratio,
 profitability, and liquidity.
                                                                                                                       REPORT
                                                                                                                       SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                        37
Page 38
     PERFORMANCE
     HIGHLIGHTS




                                                                    BAF United for Care

                                                                    5 SEPTEMBER 2023

                                                                    In 2023, the Company held BAF United for Care
                                                                    for the first time, during August-September period.
                                                                    The event was held in 10 (ten) cities simultaneously
                                                                    across Indonesia with approximately 1,100 orphans
                                                                    attending the event.




             Shelf-Registration Bonds II
             Phase IV Year 2023 Issuance

             11 SEPTEMBER 2023

             The Company issued Shelf-Registration II Phase IV
             Year 2023 Bonds with par value of Rp458,000,000,000.
             Through this issuance, the entire plafond of PUB II
             bonds have been fully issued.




                                                                    Indonesia Most Reputable Companies 2023

                                                                    15 SEPTEMBER 2023

                                                                    SWA Business Digest Magazine awarded the Company
                                                                    as Indonesia Most Reputable Companies 2023 with
                                                                    Good predicate.




38
Page 39
PT BUSSAN AUTO FINANCE




                                                                                                                         HIGHLIGHTS
                                                                                                                         PERFORMANCE
 BAF 26th Anniversary 2023

  24 SEPTEMBER 2023

 The Company celebrated 26th birthday directly with
 orphans/less fortunate children simultaneously in
 6 (six) regions across Indonesia. The main event of




                                                                                                                         REPORT
                                                                                                                         MANAGEMENT
 Company’s 26th Anniversary Celebration was located
 at Pondok Indah Golf Ballroom, South Jakarta,
 attended in person by the Board of Directors and
 Senior Management. With the theme “Funtastic Land”,
 BAF shared happiness and donated with 100 children
 from Vincentius Putri Orphanage, Alpha Indonesia
 Foundation, Kasih Mandiri Bersinar Foundation, Mizan
 Amanah Foundation, and SOS Children Village.

 Similar events were also held in 10 (ten) other
 orphanages around the Jabodetabek area and in 5
 (five) orphanages in BAF operational area, such as




                                                                                                                         PROFILE
                                                                                                                         CORPORATE
 Medan, Bandung, Semarang, Surabaya and Makassar,
 which were attended by Company executives and
 employees. Altogether with the orphans, the employees
 share birthday happiness such as blowing out candles/
 cutting tumpeng, playing together, and sharing gifts.




                                                         Transfer of the Company’s Shares
                                                         by the Shareholders




                                                                                                                         DISCUSSION & ANALYSIS
                                                                                                                         MANAGEMENT
                                                         26 SEPTEMBER 2023

                                                         On September 26, 2023, the Company conducted
                                                         shares trading and transfer of the Company’s shares
                                                         owned by Mitsui Co. was carried out. Ltd., (“Mitsui”)
                                                         of 70,714 (seventy thousand seven hundred and
                                                         fourteen) shares to JA Mitsui Leasing Ltd., according to
                                                         the shares trading provisions as agreed between Mitsui
                                                         to JA Mitsui Leasing Ltd., by complying with prevailing
                                                         legal provisions and statutory regulations. This change
                                                         affected to a change in share ownership by Mitsui Co.
                                                         Ltd., and JA Mitsui Leasing Ltd.                                GOVERNANCE
                                                                                                                         CORPORATE




 Articles of Association Amendment

  26 SEPTEMBER 2023

 The Company amended the Articles of Association
 according to Circular Shareholders Resolutions as
 substitute of Extraordinary General Meetings of
 Shareholders on September 26, 2023 in relation with
 Shareholders’ Approval on Changes in Shareholders
 Composition, Changes in Board of Commissioners and
                                                                                                                         REPORT
                                                                                                                         SUSTAINABILITY




 Amendment to Articles of Association in PT Bussan
 Auto Finance.




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                          39
Page 40
     PERFORMANCE
     HIGHLIGHTS




                                                                    Manager Forum

                                                                    5-6 OCTOBER 2023

                                                                    The Company held a meeting in Yogyakarta to provide
                                                                    directions to all Head Office’s Manager Level.




             CSR BAF Caring for Children

             6 OCTOBER 2023

             The Company performed CSR activities at Cebongan
             State Elementary School in Yogyakarta. This activity
             was presented in form of activities such as coloring
             and other art activities in elementary schools
             participated by hundreds of students.




                                                                    Multifinance Day

                                                                    13-15 OCTOBER 2023

                                                                    The Company participated in Multifinance Day as
                                                                    series of event held by Indonesia Financing Company
                                                                    Assocation (APPI) in Palembang.




40
Page 41
PT BUSSAN AUTO FINANCE




                                                                                                               HIGHLIGHTS
                                                                                                               UTAMA
                                                                                                               IKHTISAR
                                                                                                               PERFORMANCE
 Result of The Company’s
 Annual Rating by Fitch

  20 OCTOBER 2023




                                                                                                               MANAJEMEN
                                                                                                               REPORT
                                                                                                               LAPORAN
                                                                                                               MANAGEMENT
 PT Fitch Ratings Indonesia “Fitch,” a rating agency,
 affirmed the Company’s annual rating with ‘AAA(idn)’
 with stable outlook.




                                                                                                               PERUSAHAAN
                                                                                                               PROFILE
                                                                                                               PROFIL
                                                                                                               CORPORATE
                                                        Marketing Excellence Awards 2023

                                                        26 OCTOBER 2023

                                                        The Company received award from Marketing
                                                        Interactive with “Excellence predicate in Media
                                                        Strategy: #CicilAjadiBAF”.




                                                                                                               MANAJEMEN & ANALYSIS
                                                                                                               DISCUSSION
                                                                                                               ANALISA & PEMBAHASAN
                                                                                                               MANAGEMENT
 FinExpo

  26-29 OCTOBER 2023

 The Company participated in FinExpo as series
 of activities event organized by Financial Service
 Authority in Yogyakarta.
                                                                                                               PERUSAHAAN
                                                                                                               GOVERNANCE
                                                                                                               CORPORATE
                                                                                                               TATA KELOLA
                                                                                                               KEBERLANJUTAN
                                                                                                               REPORT
                                                                                                               LAPORAN
                                                                                                               SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                41
Page 42
     PERFORMANCE
     HIGHLIGHTS




                                                                Foster Parent National Movement
                                                                (GNOTA)

                                                                1 NOVEMBER 2023

                                                                The company engaged in another collaboration with
                                                                a non-profit organization, Foster Parents National
                                                                Movement (GNOTA), which supports the government
                                                                to achieve 12 Year Compulsory Education Program
                                                                for Indonesian children. This year, the donations
                                                                were distributed to 680 foster children at elementary
                                                                school level in Maluku during the 2023/2024 school
                                                                year. The movement became one of the Company’s
                                                                supports for the government’s initiative to realize the
                                                                2030 Sustainable Development Goals (SDGs) from a
                                                                social aspect, especially SDG No. 4: Quality Education.
                                                                The donations for the BAF Caring for Children 2023
                                                                Foster Parent Program come from Company employees
                                                                (BAFers) throughout Indonesia.




             Indonesian Public Relation Top Leader
             Awards 2023

             8 NOVEMBER 2023

             Warta Ekonomi Magazine awarded the Company
             as Top Public Relation Leader 2023 for Corporate
             Adaptability Through Acceleration of Business
             Digitization in “Financing Company” category.




                                                                BAF Fair

                                                                 8-12 NOVEMBER 2023

                                                                The Company held offline BAF Fair event in Balikpapan.
                                                                From the Company’s internal side, New Yamaha
                                                                Motorcycle (NMC), Car, Electronic, Gadget, Furniture
                                                                and BAF Dana Syariah were participating in the event.




42
Page 43
PT BUSSAN AUTO FINANCE




                                                                                                                HIGHLIGHTS
                                                                                                                PERFORMANCE
 Result of the Company’s
 Rating by Pefindo

  14 NOVEMBER 2023




                                                                                                                REPORT
                                                                                                                MANAGEMENT
 PT Pemeringkat Efek Indonesia “Pefindo,” a rating
 agency affirmed the Company’s annual rating with
 ‘idAAA’ stable outlook rating.




                                                                                                                PROFILE
                                                                                                                CORPORATE
                                                      JakJapan Matsuri

                                                      18-19 NOVEMBER 2023

                                                      JakJapan Matsuri was a collaboration event that
                                                      introduced Jakarta and Japan cultures. The Company
                                                      also participated in the event held at JiExpo Area
                                                      Gambir.




                                                                                                                DISCUSSION & ANALYSIS
                                                                                                                MANAGEMENT
 Top 5 Best Financing Companies 2022

  28 NOVEMBER 2023

 Indonesia Financing Company Association (APPI)
 awarded the Company as Top Five Best Financing
 Companies 2022 for “Assets More Than Rp5 trillion”
                                                                                                                GOVERNANCE
                                                                                                                CORPORATE




 category.
                                                                                                                REPORT
                                                                                                                SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                 43
Page 44
     PERFORMANCE
     HIGHLIGHTS




                                                                Top 100 CEO 2023 &
                                                                The Next Top 200 Leaders 2023

                                                                5 DECEMBER 2023

                                                                Infobank Magazine awarded Ms. Lynn Ramli, the
                                                                Company’s President Director, as Top 100 CEO 2023.
                                                                Ms. Lynn was shortlisted among other CEOs for her
                                                                success in leading the Company which excellent
                                                                performance during the pandemic. The assessment
                                                                criteria considered achievement, transformation,
                                                                contribution and application of the Company’s values
                                                                to successfully establish the Company as a leader
                                                                in solving the challenges faced by financial industry
                                                                players.

                                                                At the same time, Infobank Magazine also named Mr.
                                                                Charles Gultom and Mr. Yudono as The Next Top 200
                                                                Leaders 2023 in Financial Sectors & SOEs. The title was
                                                                awarded by Infobank for assessing young leader figures
                                                                from each industry based on experience, achievements
                                                                and contributions to the Company.




             Indonesia Digital Marketing
             Champion 2023

             7 DECEMBER 2023

             SWA Magazine awarded Indonesia Digital Marketing
             Champion 2023 to the Company with “Very Good”
             predicate.




                                                                Senior Management Camp 2023

                                                                 6-8 DECEMBER 2023

                                                                Located in Vietnam, an annual meeting held by the
                                                                Company aimed to evaluate performance in 2023
                                                                and provided direction to Senior Management level
                                                                upon the strategy in 2024.




44
Page 45
PT BUSSAN AUTO FINANCE




                                                                                                                       HIGHLIGHTS
                                                                                                                       PERFORMANCE
 IDX Channel CSR Award 2023

  11 DECEMBER 2023




                                                                                                                       REPORT
                                                                                                                       MANAGEMENT
 IDX Channel, one of Indonesia Stock Exchange TV
 Media, awarded the Company with “Environmental
 Initiative” category in BAF ECO Move CSR Program.
 IDX Channel adapted the theme “Enhancing CSR
 Strategy to Drive Impactful Transformation” for the
 theme adapted by IDX Channel CSR Award 2023.




                                                       Indonesia Best Brand Award 2023




                                                                                                                       PROFILE
                                                                                                                       CORPORATE
                                                       13 DECEMBER 2023

                                                       SWA awarded Indonesia Best Brand Award 2023 to the
                                                       Company with Platinum predicate for “new Yamaha
                                                       Motorcycle Financing Category”. This considered result
                                                       of brand performance survey done by MARS Digital
                                                       Indonesia in 7 major cities across Indonesia.

                                                       The award became an appreciation to the Company




                                                                                                                       DISCUSSION & ANALYSIS
                                                                                                                       MANAGEMENT
                                                       who was assessed successful in fulfilling expectation of
                                                       the society to obtain excellent quality and services in
                                                       new Yamaha motorcycle financing.




 Indonesia CEO Excellence Awards 2023

  14 DECEMBER 2023

 Warta Ekonomi Magazine awarded Ms. Lynn Ramli
 as Indonesia CEO Excellence 2023 with popularity in
 Digital Transformation and Organization to Increase
                                                                                                                       GOVERNANCE
                                                                                                                       CORPORATE



 Business Expansion in “Financing Company” category.
                                                                                                                       REPORT
                                                                                                                       SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                        45
Page 46
     PERFORMANCE
     HIGHLIGHTS




                   CSR BAF Caring for Children – Semarang
                   Kasih with BAF

                   15 DECEMBER 2023

                   As the closing of CSR activities in 2023, the Company
                   held BAF CSR Caring for Children – Semarak Kasih with
                   BAF simultaneously in 9 (nine) cities, such as Medan,
                   Palembang, Jakarta, Bandung, Semarang, Surabaya,
                   Samarinda, Makassar and Manado. In this activity,
                   the Company invited more than 300 orphans to
                   supermarkets/minimarkets to purchase various items
                   they needed (beverages, healthy food, stationary, etc.).




46
Page 47
PT BUSSAN AUTO FINANCE




                                                                                                  HIGHLIGHTS
                                                                                                  PERFORMANCE
            AWARD 2023




                                                                                                  REPORT
                                                                                                  MANAGEMENT
                                             Business Perfomance


                            Infobank 19th                          Indonesia Best
                            Multifinance                           Multifinance
                            Awards 2023                            Awards 2023
                            27 JUL 2023                            31 AUG 2023




                                                                                                  PROFILE
                                                                                                  CORPORATE
                            Category:                              Category:
                            The Best Performance                   Outstanding Financial
                            Multifinance Company                   Performance and
                            (Asset > Rp 10 Trillion).              Providing Easily
                            Predicate : Very Good                  Accessed of Financing
                                                                   Submission Services,
                            Organiser:                             (Category: Total Assets
                            Infobank                               10 - 30 T).

                                                                   Organiser:
                                                                   Warta Ekonomi




                                                                                                  DISCUSSION & ANALYSIS
                                                                                                  MANAGEMENT
                            Indonesia                              APPI
                            Most Reputable                         28 NOV 2023
                            Companies 2023
                                                                   Category:
                            15 SEP 2023
                                                                   Five Best Financing
                            Category:                              Company in 2022 for
                            Predicate: Good                        Assets More Than Rp5
                                                                   Trillion Category
                            Organiser:
                            Business Digest (SWA)                  Organiser:
                                                                   APPI
                                                                                                  GOVERNANCE
                                                                                                  CORPORATE
                                                                                                  REPORT
                                                                                                  SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                   47
Page 48
     PERFORMANCE
     HIGHLIGHTS




                                                   Business Perfomance


              Indonesia Most          TrenOto Awards                4th Top Corporate        Best 50 Financial
              Acclaimed               2023                          Finance Award            Institution
              Companies               11 OCT 2023
                                                                    2023                     Awards 2023
              Awards 2023                                           NOV 2023                 27 NOV 2023
             26 JUN 2023              Category:
                                      -                             Category:                Category:
              Category:                                             Special Achievement      Best Customer
              Indonesia Most          Organizer:                    for Financing Category   Service Reputation
              Prestigious Company     TrenOto                                                in Multifinance with
              2023 with Outstanding                                 Organizer:               Assets >10T
              Motorcycle Financing                                  InfoEkonomi.id & TRAS
              Solutions, (Category:                                 N CO Indonesia           Organizer:
              Multifinance)                                                                  The Iconomics

              Organizer:
              Warta Ekonomi



                                                          Digital


              Top Digital PR          Indonesia Digital             Indonesia Digital        Top Digital
              Award 2023              Popular Brand                 Innovation               Corporate Brand
             28 FEB 2023
                                      Award 2023                    Awards 2023              2023
                                      30 MAR 2023                   30 MAR 2023              12 APR 2023
              Category:
              Leasing                 Category:                     Category:                Category:
                                      Electronic Appliances         The Most Innovative      Financial Industry
              Organizer:              Financing                     Multifinance Company
              Infobrand                                             for The Expanding        Organizer:
                                      Organizer:                    Digital Ecosystem        Info Ekonomi
                                      Infobrand                     through Integrated
                                                                    and Sophisticated
                                                                    Product & Services in
                                                                    Multifinance Category

                                                                    Organizer:
                                                                    Warta Ekonomi



              Indonesia Grand         TOP DIGITAL                   Digital Financial
              Digital Marketing       Awards 2023                   Excellence Awards
              Awards 2023             30 NOV 2023
                                                                    2023
             10 MAY 2023                                            19 DEC 2023
                                      Category:
              Category:               -                             Category:
              The Insightful                                        1. 1st Rank
              Financing Content       Organizer:                       Multifinance with
                                      ItWorks                          Assets More Than
              Organizer:                                               Rp5 trillion
              Warta Ekonomi                                         2. Best Multifinance
                                                                       Digital Finance
                                                                       Award 2023

                                                                    Organizer:
                                                                    Media Asuransi




48
Page 49
PT BUSSAN AUTO FINANCE




                                                                                                        HIGHLIGHTS
                                                                                                        PERFORMANCE
                                                    Leadership


                            Indonesia                                     Indonesia
                            Best CEO 2022                                 Financial Top
                            28 FEB 2023
                                                                          Leader 2023




                                                                                                        REPORT
                                                                                                        MANAGEMENT
                                                                          31 MAY 2023
                            Category:
                            Ms. Lynn Ramli - Best                         Category:
                            CEO with Distinction                          Ms. Lynn Ramli:
                                                                          Best Leader for
                            Organiser:                                    Sustainabilty
                            SWA                                           Acceleration through
                                                                          Diversification of
                                                                          Financing Products and
                                                                          Services (Category:
                                                                          Multifinance Total
                                                                          Assets Rp10-30T)




                                                                                                        PROFILE
                                                                                                        CORPORATE
                                                                          Organiser:
                                                                          Warta Ekonomi




                                              Top 100 CEO             Indonesia
                                              2023 & The Next         CEO Excellence
                                              Leaders 2023            Awards 2023




                                                                                                        DISCUSSION & ANALYSIS
                                                                                                        MANAGEMENT
                                              5 DEC 2023              14 DEC 2023
                                              Category:               Category:
                                              Ms. Lynn Ramli as Top   Ms. Lynn Ramli
  Indonesia                                   100 CEO 2023 and Mr.    as Indonesia CEO
  Most Powerful                               Yudono & Mr. Charles    Excellence 2023 with
  Women Business                              Gultom as The Next      Popularity in Digital
  Leader 2023                                 Leaders 2023            and Organization
  27 JUN 2023                                                         Transformation to
                                              Organiser:              Strengthen Business
  Category:                                   Infobank                Expansion, (Category:
  Ms. Lynn Ramli                                                      Multifinance)”

  Organiser:                                                          Organiser:
  SWA                                                                 Warta Ekonomi
                                                                                                        GOVERNANCE
                                                                                                        CORPORATE



                                              Indonesia Best
                                              Workplace for
                                              Women Awards
                                              2023
                                              26 MAY 2023
                                              Category:
                                              Financial Services
                                              Industry

                                              Organizer:
                                              HerStory
                                                                                                        REPORT
                                                                                                        SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                         49
Page 50
     PERFORMANCE
     HIGHLIGHTS




                                                     Marketing & Brand


                                       Indonesia Brand                                        Top Brand
                                       Champion 2023                                          Award 2023
                                       18 JAN 2023                                            23 FEB 2023
                                       Organiser:                                             Category:
                                       Infobrand                                              2-Wheels Automotive
                                                                                              Leasing Company

                                                                                              Organiser:
                                                                                              Marketing Magazine




                                                                           Indonesia
                                                                           WOW Brand 2023
                                                                           11 MAY 2023
                                                                           Category:
                                                                           Motor Leasing

                                                                           Organiser:
                                                                           Marketeers



              Indonesia
              Public Relation
              Awards 2023
                                                                           Marketing
             24 FEB 2023                                                   Excellence
              Category:
                                                                           Awards 2023
              Best Public Relations                                        26 OCT 2023
              in Company
                                                                           Category:
              Management on
                                                                           Excellence in
              Strengthening Business
                                                                           Media Strategy:
              Segmentations by
                                                                           #CicilAjadiBAF
              Expanding Financing
                                                                           (Silver Trophy)
              Ecosystem in
              Multifinance Category
                                                                           Organiser:
                                                                           Marketing-Interactive
              Organiser:
              Warta Ekonomi




                                                         Indonesia                            Indonesia Digital
                                                         Millenials Brand                     Popular Brand
                                                         Choice Awards                        Award 2023
                                                         2023                                 26 JUN 2023
                                                         31 MAY 2023
                                                                                              Category:
                                                         Category:                            Furniture Financing
                                                         Leasing Company
                                                                                              Organizer:
                                                         Organizer:                           Infobrand
                                                         Warta Ekonomi



50
Page 51
PT BUSSAN AUTO FINANCE




                                                                                                      HIGHLIGHTS
                                                                                                      PERFORMANCE
                                                                                                      REPORT
                                                                                                      MANAGEMENT
  Indonesian                             Indonesia              Indonesia
  Public Relation                        Digital Marketing      Best Brand
  Top Leader                             Champion 2023          Award 2023
  Awards 2023                            7 DEC 2023             13 DEC 2023
  8 NOV 2023
                                         Category:              Category:
  Category:                              Very Good Predicate    New Yamaha
  Top Public Relation                                           Motorcycle Financing




                                                                                                      PROFILE
                                                                                                      CORPORATE
  Leader 2023 for                        Organiser:             - Platinum. BAF is
  Corporate Adaptability                 SWA                    awarded as No. 1
  Through Acceleration                                          financing company
  of Business                                                   specifically for
  Digitization, (Category:                                      Yamaha brand in
  Multifinance)                                                 Indonesia, based on
                                                                Brand Performance
  Organiser:                                                    Research from MARS
  Warta Ekonomi                                                 Indonesia Digital &
                                                                SWA for August until
                                                                September 2023




                                                                                                      DISCUSSION & ANALYSIS
                                                                                                      MANAGEMENT
                                                                period.”

                                                                Organiser:
                                                                Mars Indonesia Digital
                                                                & SWA



                                               Sustainability


                             Indonesia                                   Indonesia
                             Excellence GCG                              Human Resources
                             Awards 2023                                 Awards 2023
                             31 JAN 2023                                 30 MAR 2023
                                                                                                      GOVERNANCE
                                                                                                      CORPORATE




                             Category:                                   Category:
                             Indonesia Excellence                        The Best HR
                             Good Corporate                              Management for
                             Governance Ethics                           The Outstanding
                             in Diversification of                       Integration of HR
                             Financing Products                          Development Plan
                             and Services in                             and Strategies with
                             Multifinance Category                       Business Needs in
                                                                         Multifinance Category
                             Organiser:
                             Warta Ekonomi                               Organiser:
                                                                         Warta Ekonomi
                                                                                                      REPORT
                                                                                                      SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                       51
Page 52
     PERFORMANCE
     HIGHLIGHTS




                                                                                Anugerah
                                                                                CSR IDX
                                                                                Channel 2023
                   Indonesia                 Indonesia CSR                     11 DEC 2023
                   Best CSR                  Awards 2023                        Category:
                   Awards 2023               6 JUL 2023                         Program CSR BAF ECO
                   25 MAY 2023                                                  Move
                                             Category:
                   Category:                 Outstanding Program                Organiser:
                   Best CSR in Finance       in Accelerating                    IDX Channel
                   Sector Industry           Education and Welfare
                                             for Children
                   Organiser:
                   The Iconomics             Organiser:
                                             Warta Ekonomi




                   Contact Center                                Sharia
                   Service Excellence
                   2023
                   23 FEB 2023                                        Indonesia
                   Category:                                          Sharia Finance
                   Email Center                                       Awards 2023
                                                                      10 MEI 2023
                   Organizer:
                   Marketing Magazine                                 Category:
                                                                      Outstanding
                                                                      Utilization of Multi
                                                                      Channel Distribution
                                                                      to Expand Financing
                                                                      Services, (Category:
                   Women-Oriented                                     Sharia Business Unit of
                   Corporate Social                                   Multifinance)
                   Responsibility
                   Awards 2023                                        Organiser:
                                                                      Warta Ekonomi
                   24 AUG 2023
                   Category:
                   Best Women-Oriented
                   Corporate Social
                   Responsibilty 2023
                   with Outstanding
                   Program in
                   Accelerating Education
                   and Welfare for Society

                   Organizer:
                   HerStory




52
Page 53
                         PERFORMANCE   MANAGEMENT   CORPORATE   MANAGEMENT              CORPORATE    SUSTAINABILITY
                         HIGHLIGHTS    REPORT       PROFILE     DISCUSSION & ANALYSIS   GOVERNANCE   REPORT




                                                                                                                      53
                                                                                                                      2023 ANNUAL REPORT & SUSTAINABILITY REPORT
PT BUSSAN AUTO FINANCE
Page 54
       MANAGEMENT
       REPORT




                          MANAGEMENT
                          REPORT
            THE MAKING OF ANGKLUNG IS A LONG PROCESS AND REQUIRES A HIGH LEVEL OF
            ACCURACY. WE ALSOCONTINUE TO DELIVER OUR BEST PERFORMANCE IN PROVIDING OUR
            PRODUCTS AND SERVICES TO THE CUSTOMERS AND SOCIETY.




5454
Page 55
                         PERFORMANCE   MANAGEMENT   CORPORATE   MANAGEMENT              CORPORATE    SUSTAINABILITY
                         HIGHLIGHTS    REPORT       PROFILE     DISCUSSION & ANALYSIS   GOVERNANCE   REPORT




                                                                                                                      55
                                                                                                                      2023 ANNUAL REPORT & SUSTAINABILITY REPORT
PT BUSSAN AUTO FINANCE
Page 56
       MANAGEMENT
       REPORT




                    PRESIDENT COMMISSIONER




5656
Page 57
PT BUSSAN AUTO FINANCE




                                                                                                               HIGHLIGHTS
                                                                                                               PERFORMANCE
            REPORT FROM THE BOARD
            OF COMMISSIONERS




                                                                                                               REPORT
                                                                                                               MANAGEMENT
                                                  Economy and Industry Overview
AMIDST THE CHALLENGES                        Increasing geopolitical tensions, the unfinished
OCCURRED THROUGHOUT 2023,                    Russian-Ukrainian war, the pace of the Palestinian-
                                             Israeli conflict, the impact of tightening monetary
THE COMPANY ALWAYS ADAPTS BY                 policy, and extreme weather become some of the




                                                                                                               PROFILE
                                                                                                               CORPORATE
                                             global economic challenges in 2023. Amidst the slowing
TAKING TACTICAL MEASURES AND
                                             down global economic recovery, by the fourth quarter
STRATEGIC POLICY TO ADDRESS                  of 2023, Indonesian economy still grew positively. The
                                             national economy demonstrated a steady resilience and
OPPORTUNITIES WITH POSSIBILITY               was recovering faster. In the fourth quarter of 2023,
TO SUPPORT THE COMPANY’S                     Indonesia’s economic growth was remained high at
                                             5.0% (YoY) amidst global economic growth which tended
FUTURE GROWTH.                               to decelerate. In the course of progressive circumstances,
                                             overall, Indonesia recorded economic growth of 5.1%
                                             (YoY) in 2023.




                                                                                                               DISCUSSION & ANALYSIS
                                                                                                               MANAGEMENT
                                             In the automotive sector, after overcoming
                                             COVID-19 pandemic crisis and the scarcity of
                                             chip supply in 2022, car sales (wholesale) in
                                             Indonesia reached 1.0 million units in 2023.
                                             Car sales decreased by 4.0% (YoY) in 2023, compared
                                             to 1.05 million units in 2022. This result was below
                                             the target previously set by Association of Indonesian
                                             Automotive Industries (Gaikindo) of 1.1 million units.
                                             Motorcycle sales (wholesale) in Indonesia reached 6.2
                                             million units in 2023, or increased by 19.4% (YoY), from
                                             5.2 million units booked in the same period in 2022.

                                             As end of December 2023, financing receivables from
                                             Indonesian financing industry increased by 13.2%
                                             (YoY) to Rp470.9 trillion. The growth was supported by
                                             a positive increase in investment financing and working
                                                                                                               GOVERNANCE
                                                                                                               CORPORATE



                                             capital financing, which respectively grew by 9.0%
                                             (YoY) and 15.1% (YoY). This was in line with fulfilment
                                             of finance companies’ obligations in increasing their
                                             contribution to investment financing and working
                                             capital. The increase in financing receivables contributed
                                             to increasing assets of the financing industry by 13.3%
                                             (YoY) to Rp552.9 trillion as end of December 2023. As
                                             demonstrated by net profit after tax, profitability grew
                                             13.0% (YoY) from Rp 20.4 trillion in December 2022 to
                                             Rp23.0 trillion as end of December 2023.

                                             As industry’s financial performance improved, financial
                                             ratio performance of the financing industry also
                                             indicated a satisfying recovery. Profitability ratio of
                                                                                                               REPORT
                                                                                                               SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                57
Page 58
     MANAGEMENT
     REPORT




          the financing industry has increased along with the
          increasing profits of the industry. The industry’s Return         Board of Commissioners Supervision
          on Assets (ROA) slightly decreased to 5.6% in December            on Strategy Formulation and
          2023 from 5.7% in December 2022. The industry’s                   Implementation
          Return on Equity (ROE) also increased to 15.0% in
          December 2023 from 14.4% in December 2022 The                In 2023, the Board of Commissioners has carried out
          financing industry’s ability to reduce operational costs     the duties and responsibilities in supervisory function
          as shown by the Operating Ratio (BOPO) ratio was             over the Board of Directors’ duties implementation
          stable at 76.9% in December 2023. The industry’s             according to prevailing regulations. The Board of
          non-performing financing (NPF) ratio experienced an          Commissioners has ensured that the good corporate
          increase in December 2023, achieving 2.4% from 2.3%          governance has been implemented in every Company’s
          by end of 2022.                                              business activity through reports submitted to the Board
                                                                       of Commissioners, such as regular reports at every
                                                                       meeting and outside of meetings as well as periodic
               Assessment on Performance of                            reports submitted by the Board of Directors and
               Board of Directors on the Company’s                     related work units submitted through the committees
               Management                                              under the Board of Commissioners supervision.

          As end of 2023, the Company’s new financing                  The Board of Commissioners has supervised
          disbursement percentage only achieved 88.5%                  formulation and implementation of the Company’s
          realization from the projection as end of 2023 with the      strategy and performance which is discussed in
          Company’s total new financing disbursement achieved          regular meetings between the Board of Directors and
          Rp11.0 trillion as end of 2023, or slightly increased by     the Board of Commissioners quarterly. The Board of
          0.1% (YoY) compared to end of 2022. This was due             Commissioners always provides sufficient time to
          to new Yamaha motorcycle financing, as one of the            perform the duties and responsibilities as reflected in
          Company’s core business supports, decreased by 5.4%          joint meetings implementation. The meeting is a forum
          (YoY) from Rp6.2 trillion as end of 2022 to Rp5.9 trillion   for the Board of Commissioners to convey directions
          as end of 2023. Car financing also decreased by 20.0%        and recommendations directly to the Board of Directors
          (YoY) to Rp1.3 trillion at the end of December 2023.         regarding management of the Company. The Board of
          However, the Company’s sharia products such as Dana          Commissioners’ suggestions have been well received by
          Syariah grew 39.0% (YoY) to Rp3.1 trillion at the end        the Board of Directors.
          of 2023. This decrease in new financing disbursement
          affected to stable financing receivables realization in      In 2023, the Board of Directors and Board of
          2023. The Company’s financing receivables recorded           Commissioners held 4 (four) joint meetings. The
          a slight increase of 1.0% (YoY) to Rp12.8 trillion.          Board of Directors and the Board of Commissioners
          Consequently, the Company booked net profit balance          joint meetings discussed and considered, including
          of Rp370.6 billion as end of December 2023, or a             evaluation of the Company’s performance in the
          decrease compared to 2022.                                   first quarter, second quarter and third quarter of
                                                                       2023 regarding the achievement of agreed targets,
          Throughout 2023, the Board of Directors has done             both business targets and financial targets, various
          best efforts in implementing strategies to optimize          discussions both regarding financial and non-financial
          financing credit disbursement to the customers amidst        conditions including updates on the implementation of
          the external and internal challenges. The Board of           risk management, Anti Money Laundering and Counter
          Commissioners would express our appreciation for             Terrorism Financing (AML-CFT) and anti-fraud, bond
          the initiatives carried out by the Board of Directors        issuance, thematic surveillance, discussing important
          to continuously develop and evaluate the financing           issues with potential to affect the Company’s
          product portfolio, including improving effectiveness and     performance including new regulations that affect the
          productivity of the Company’s operations by accelerating     Company, business opportunities and potential risks,
          digitalization and strengthening cyber security, as well     industry developments, as well as other discussions that
          as continuous improvements in acquisition process to         require attention from the Board of Directors and Board
          obtain quality new financing.                                of Commissioners, including approval for the business
                                                                       plan for fiscal year 2024.
          The Board of Commissioners would also appreciate
          initiatives of the Board of Directors in developing          In 2023, the Board of Commissioners intensified
          productive financing as an effort to increase the            supervision through additional intensive discussions
          Company’s portfolio in investment financing and              with the Board of Directors. The Board of Commissioners
          working capital financing as determined by OJK               provides direction, suggestions, and feedback to
          regulations. As end of December 2023, the Company’s          the Board of Directors regarding management of
          productive financing ratio reached 24.2% or exceeding        the Company, especially improving performance of
          the OJK requirement of 10.0% at the end of 2023.             the Company’s business lines, maintaining quality




58
Page 59
PT BUSSAN AUTO FINANCE




                                                                                                                            HIGHLIGHTS
                                                                                                                            PERFORMANCE
                                                                                                                            REPORT
                                                                                                                            MANAGEMENT
                                                                                                                            PROFILE
                                                                                                                            CORPORATE
                                                                                                                            DISCUSSION & ANALYSIS
                                                                                                                            MANAGEMENT
of financing, and implementing adequate risk               In realizing funding diversification strategy and
management and continuously increasing compliance          supporting the Company’s working capital financing, in
with applicable regulations. The Board of Commissioners    2023, the Board of Directors has continued the Shelf-
views that the Board of Directors has complied to          Registered Public Offering (PUB) II in form of bond
the provisions, policies and regulations issued by the     securities (conventional). Therefore, the Board of
government and regulators, especially OJK regarding        Commissioners claimed that with currently available
various provisions in 2023.                                financial resources, the Company has sufficient liquidity
                                                           to fulfill working capital needs, payment of debts
Based on POJK No. 24/POJK.05/2019 concerning Business      obligation and other cash needs.
Plans for Non-bank Financial Services Institutions, the
Board of Commissioners has supervised implementation       In carrying out business activities, the Company relies
or realization of annual business plan targets 2023,       on funding from banks, both in Rupiah and United
which include the Company’s financial performance          States Dollars. However, the Board of Directors has
and strategy. Results of the Board of Commissioners’       hedged using cross currency swaps to manage the risk
supervision have been outlined in the Business Plan        of fluctuations in exchange rates and interest rates. The
                                                                                                                            GOVERNANCE
                                                                                                                            CORPORATE



Supervision Report submitted to OJK, which is in July      bonds issuance also increases the Company’s liquidity
2023 for positions in the first half of 2023 and January   sources for financing activities.
2024 for positions in the second half or full year 2023.
                                                           Funding from the capital market was also maintained
                                                           in 2023 through the issuance of PUB II in form of
     Capital and Risk Profile                              bonds. Overall, the targeted emission value has
                                                           been published and well absorbed by investors. The
From capital aspect, in 2023, the Board of Directors       Company’s success in maintaining its AAA(idn) rating
has managed capital aspect properly to support the         with stable outlook by two rating agencies, which are
Company’s long-term business growth. The Board of          PT Fitch Ratings Indonesia (Fitch) and PT Pemeringkat
Commissioners views that the Company has adequate          Efek Indonesia (Pefindo) proves the Company’s ability
capital levels to support the Company’s business           to maintain credibility among the investors.
activities.
                                                                                                                            REPORT
                                                                                                                            SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                             59
Page 60
     MANAGEMENT
     REPORT




                                                                  Through the Risk Monitoring Committee, the Board of
                                                                  Commissioners has obtained information regarding
                                                                  implementation of risk management and compliance
          STRUCTURE AND MECHANISM                                 with prevailing laws and regulations, including on time
          OF THE GCG ORGAN HAVE BEEN                              submission of the company’s soundness assessment,
                                                                  including assessments of good corporate governance
          CARRIED OUT APPROPRIATELY BY                            (GCG) implementation, Risk Profile, Profitability
          EMPHASIZING GOOD CORPORATE                              and Capital, for each type of risk, monitoring the
                                                                  implementation of compliance (compliance monitoring)
          GOVERNANCE PRINCIPLES.                                  and implementation of risk management, which had
                                                                  been discussed at the Risk Monitoring Committee
                                                                  meeting in 2023. The Company’s soundness level for
                                                                  the fourth quarter of 2023 was at a composite rating
                                                                  of 1 (one), which reflected the Company’s condition
                                                                  that is generally very healthy, thereby considered very
                                                                  capable in dealing with significant negative influences
                                                                  from changes in business conditions and other external
                                                                  factors as reflected in the ranking of assessment
          From risk management side, in 2023, overall risk
                                                                  factors, including implementation of good corporate
          management implementation in 2023 has been
                                                                  governance, risk profile, profitability and adequate
          adequate. The Company’s risk exposures have also
                                                                  capital that are generally very good.
          been managed appropriately and monitored by the
          Risk Monitoring Committee regularly. Through Risk
                                                                  Throughout 2023, the Company has implemented
          Management and Compliance Division, the Company
                                                                  risk management based on the Risk Management
          has carried out risk formulation, identification, and
                                                                  Implementation Guidelines as stipulated in POJK
          mitigation in the Company appropriately. However,
                                                                  regulation    no.   44/POJK.05/2020     concerning
          evaluation over improvements and developments in
                                                                  Implementation of Risk Management for Non-Bank
          the Company’s risk management implementation is
                                                                  Financial Services Institutions. The Company has
          continuously carried out, to ensure continuity of the
                                                                  implemented 4 (four) pillars of risk management
          Company’s long-term risk management.




60
Page 61
PT BUSSAN AUTO FINANCE




                                                                                                                               HIGHLIGHTS
                                                                                                                               PERFORMANCE
implementation which include, active monitoring              Compliance with provisions of prevailing laws and
from Board of Directors, Board of Commissioners and          regulations can be seen from the implementation of
Sharia Supervisory Board (DPS), policy adequacy, risk        General Meeting of Shareholders (GMS) that is carried
management information system and a comprehensive            out according to prevailing regulations. The Company
internal control system. Implementation of these pillars     has held an Annual General Meeting of Shareholders
is always reported by the Board of Directors in Board        (GMS) for fiscal year 2022 within a time limit as
of Directors and Board of Commissioners Joint Meeting        determined under the law, which is on May 8, 2023. The




                                                                                                                               REPORT
                                                                                                                               MANAGEMENT
quarterly along the year.                                    Shareholders also implemented a Circular Shareholders
                                                             Resolution in lieu Extraordinary General Meeting of
                                                             Shareholders in 2023 with 5 (five) decisions, including
     Sustainable Finance Implementation                      to approve the appointment of the Company’s Public
                                                             Accounting Firm and Public Accountant to audit the
The Board of Commissioners assessed that sustainable         financial statements for fiscal year 2023.
finance implementation in the Company reflects
a comprehensive aspiration of shareholders and               In 2023, the meetings started to be initiated physically,
stakeholders, as well as a manifestation of the              however still also done online via video conference as
Company’s support for regulators and the government          regulated in the Articles of Association. The Board
and supporting the Company’s long-term sustainable           of Commissioners held 6 (six) meetings regularly,
growth to maintain balance between profit, people,           such as in February, March, May, August, October,




                                                                                                                               PROFILE
                                                                                                                               CORPORATE
and planet (triple bottom line). Therefore, the Board of     and November 2023. These meetings discussed,
Directors always strives to improve the management           among others, activities of the committees under the
not only in economic but also social and environmental       Board of Commissioners including Audit Committee,
aspects. One of the balance among economic, social           Nomination Committee and Remuneration, and Risk
and environmental performance was carried out                Monitoring Committee, as well as other discussions
through the Company’s Social and Environmental               to support supervisory role by the Board of
Responsibility (CSR) activities. The Company carried         Commissioners. Supervision of the Company’s strategy
out various CSR activities throughout 2023.                  implementation is also carried out intensively through
                                                             Board of Commissioners and Board of Directors
The Company also always innovates and improves               meetings which were held 4 (four) times in 2023, in
services to all customers, completing a variety of           March, May, August and November 2023.




                                                                                                                               DISCUSSION & ANALYSIS
                                                                                                                               MANAGEMENT
products and portfolios to reach the broader society,
especially Micro, Small and Medium Enterprises (MSMEs)       From the sharia aspect, implementation of governance
segment. The Company supports the Board of Directors         principles is carried out according to the regulations
to keep increasing the ongoing financing portfolio for       concerning good corporate governance for finance
MSMEs and environmentally friendly vehicles, especially      companies or other related regulations, as well as
financing for hybrid and electric cars.                      POJK No. 10/POJK.05/2019 concerning Business
                                                             Implementation of Sharia Financing Companies and
In 2023, in line with POJK No. 51/POJK.03/2017               Sharia Financing Company Business Units. In providing
concerning Implementation of Sustainable Finance             advice and suggestions to the Board of Directors and
for Financial Services Institutions, Issuers and Public      supervising the sharia aspects of the Company’s
Companies, the Company has prepared a Sustainable            operational activities, in 2023, the Sharia Supervisory
Finance Action Plan (RAKB) for 2024 as part of annual        Board has periodically held 6 (six) meetings with
business plan.                                               the Sharia Business Units. In addition, the Sharia
                                                             Supervisory Board has also held 4 (four) joint meetings
                                                             with the Risk Monitoring Committee to discuss specific
     Governance Implementation                               sharia risk profiles. Throughout 2023, the Sharia
                                                             Supervisory Board has carried out its duties in ensuring
                                                                                                                               GOVERNANCE
                                                                                                                               CORPORATE




Implementation of Good Corporate Governance                  and supervising the suitability of financing businesses
(GCG) principles becomes one of the main focuses in          based on sharia principles, including through evaluation
supervision carried out by the Board of Commissioners.       and discussion. DPS, assisted by UUS and the Sharia
The Board of Commissioners assessed, in general, GCG         Product Committee, continues to coordinate, and
implementation in the Company has been appropriate.          collaborate to provide full support to all sharia business
The Board of Directors has attempted to comply with          units in 2023.
the provisions of prevailing laws and regulations, both in
non-bank financial industry and capital markets sector.      The Board of Commissioners has requested the Board
Structure and mechanisms of GCG organs so far have           of Directors to always concern various provisions,
been also running well by prioritizing good corporate        policies, and regulations applied by the government
governance principles.                                       and regulators, particularly the regulations issued by
                                                             the OJK thereby the Company’s business continuity
                                                             can always comply with prevailing regulations. Several
                                                                                                                               REPORT
                                                                                                                               SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                61
Page 62
     MANAGEMENT
     REPORT




          regulations discussed in the Board of Directors and          the implementation of supervision over management
          Board of Commissioners joint meetings included               of the Company.
          compliance with POJK No. 3 of 2023 concerning
          Increasing Financial Literacy and Inclusion in the           In 2023, the Audit Committee held 7 (seven) meetings
          Financial Services Sector for Consumers and the              with member attendance achieving 100%. The Audit
          Society, POJK No. 9 of 2023 concerning the Use of            Committee has discussed and reviewed the financial
          Public Accounting Services and Public Accounting             statements published by the Company, especially
          Firms in Financial Services Activities. Based on the         financial statements for December 2022 perod which
          Board of Directors’ report at the Board of Directors         were published in March 2023 and the June 2023
          and the Board of Commissioners joint meetings in             period, which were published in July 2023, discussing
          August 2023, the Board of Directors have fulfilled           the findings regarding the audit implementation by
          the POJK. The Board of Directors has also conducted          internal auditors in the Company’s operational activities
          socialization concerning the regulations that have           with significant and potential risks for the Company,
          been issued and affected the Company through the             providing evaluation over performance of external
          Risk Management and Compliance Division.                     auditors related to provision of audit services for annual
                                                                       historical financial information by Public Accountant Erni
                                                                       Sandjaja and Public Accountant Firm Imelda & Partners,
               View on Whistleblowing System                           providing recommendations for appointment of a Public
               Implementation                                          Accountant and Public Accounting Firm in 2023 based
                                                                       on independency, scope of assignment, and services
          Whistleblowing System (WBS) is part of the control           fee. Based on evaluations carried out in 2023, the Audit
          system in the Company which aims to early detect and         Committee generally concluded that the Company has
          prevent fraud or violations in every aspect of business      implemented good governance practices. All notes and
          activities that may cause financial losses, including any    recommendations from the results of the implementation
          matters that may threat the Company’s reputation.            of activities, review, and analysis of the Audit Committee
                                                                       in 2023 have also been communicated and discussed
          Through the Anti-Fraud unit, the Board of                    periodically at Board of Commissioners Meetings.
          Commissioners assessed that the Board of Directors
          has a WBS policy to encourage and enable the                 Nomination and Remuneration Committee also held
          Company’s Directors and employees to raise awareness         3 (three) meetings in 2023, including in February,
          on the appropriate handling of suspected fraud or            July and November 2023, with member attendance
          violations case, whether by individuals or groups in         achieving 100%. The meeting discussed, among
          the Company’s internal and external environment.             other things, evaluation and review of the activities
          In 2023, we would appreciate the Board of Directors’         of the Board of Commissioners and Directors in 2022,
          initiatives in providing a reporting channel on the          discussions and evaluations related to the composition
          Company’s website as well as existence of a dedicated        of the Board of Commissioners and Directors in 2023,
          hotline for female investigators for reporting purpose       discussions and evaluations related to the composition
          that requires handling by female investigators.              of committees under the Board of Commissioners in
                                                                       2023, remuneration for the Board of Commissioners
          Periodic reports related to Anti-Fraud have been             and Directors for the 2023 financial year, Board of
          submitted to the Board of Commissioners through              Directors development program (capacity building)
          regular Audit Committee meetings and Board of                which is in line with the latest developments,
          Directors and Board of Commissioners Joint Meetings.         succession of each Director, as well as reviewing the
          The Board of Commissioners assessed that in 2023, the        work guidelines of the Nomination and Remuneration
          WBS implementation is running well and ensures that          Committee for 2023.
          every report has been processed according to prevailing
          regulations.                                                 Risk Monitoring Committee also held 4 (four) meetings
                                                                       in 2023, such as in February, May, August and November
                                                                       2023, with member attendance achieving 100%. The
               Assessment on Performance                               committee discussed, including the Company’s health
               of Committees Under Board of                            level and risk profile for the fourth quarter of 2022
               Commissioners                                           and full year 2022, the first, second and third quarters
                                                                       of 2023, both conventional and sharia, Compliance
          In carrying out its supervisory function throughout          Monitoring Dashboard, Risk Control Self-Assessment,
          2023, the Board of Commissioners is assisted by              Risk Management Implementation Program, and The
          3 (three) committees, such as, Audit Committee,              Implementation of IT Risk. The company’s financial
          Nomination and Remuneration Committee, and Risk              soundness level for the third quarter of 2023 was at
          Monitoring Committee. Overall, the committees under          composite rank 1.
          the supervision of the Board of Commissioners have
          carried out their duties and responsibilities in assisting   Role of the committees mentioned above is to always




62
Page 63
PT BUSSAN AUTO FINANCE




                                                                                                                        HIGHLIGHTS
                                                                                                                        PERFORMANCE
                                                                                                                        REPORT
                                                                                                                        MANAGEMENT
                                                                                                                        PROFILE
                                                                                                                        CORPORATE
                                                                                                                        DISCUSSION & ANALYSIS
                                                                                                                        MANAGEMENT
provide regular updates to the Board of Commissioners    number of Independent Commissioners has complied
at Board of Commissioners meetings in supporting the     with the prevailing rules and regulations, which is a
Board of Commissioners’ function in supervising the      minimum of 30% of the total Board of Commissioners
Board of Directors and operations of the Company.        members. We believe that this composition will further
                                                         strengthen the supervisory function of the Board of
                                                         Commissioners.
     Change in Board of Commissioners and
     Board of Directors Members                          As end of 2023, the Board of Directors composition
                                                         has not changed from the position in December 2022.
In 2023, there were changes in Board of Commissioners    Therefore, number of Board of Directors members,
members. The Company received resignation letters        as of preparation of this report is 7 (seven) people
from Mr. Tetsuya Daikoku and Mr. Jun Ikeda in March      led by a President Director, 2 (two) Vice President
and July 2023, respectively, related to their new        Directors and 4 (four) Directors. The number of
assignments. The resignation has been effective.         Board of Commissioners and Board of Directors
We would like to extend our gratitude to Mr. Tetsuya     members has complied with the provisions in POJK
                                                                                                                        GOVERNANCE
                                                                                                                        CORPORATE



Daikoku and Mr. Jun Ikeda for their suggestion and       No. 29/POJK.05/2020 concerning Amendments to
advice to the Company during their tenure.               Financial Services Authority Regulation Number 30/
                                                         POJK.05/2014 concerning Good Corporate Governance
At the same time, the shareholders have approved my      for Finance Companies, as well as provisions in the
designation as President Commissioner after passing      capital market.
the Fit and Proper Test from OJK, thereby I have
effectively served as the President Commissioner. In     On the Sharia side, as end of December 2023,
addition, Mr. Masami Shiobara has also been approved     composition of the Company’s Sharia Supervisory
by the shareholders to be appointed as a member of       Board (DPS) was changed since Annual General
the Board of Commissioners and has passed Fit and        Meeting of Shareholders (AGMS) on May 8 2023,
Proper Test from OJK on January 19, 2024. Therefore,     Mr. Azharuddin Lathif is no longer serving as the
as of preparation of this annual report, the Board of    Company’s DPS. Therefore, on behalf of the Board of
Commissioners composition comprises of 6 (six) people,   Commissioners, we would like to express our gratitude
including 3 (three) Independent Commissioners. The       for his contribution of supervision, suggestion, advice
                                                                                                                        REPORT
                                                                                                                        SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                         63
Page 64
     MANAGEMENT
     REPORT




          and assistance while serving as the Sharia Supervisory      In the automotive sector, in 2024, AISI projected
          Board at the Company. The Company’s Sharia business         motorcycle sales to grow to 6.2 million units to 6.5
          line is further capable to respond to the needs of the      million units, or approximately 1.6%-4.8% (YoY).
          broader society and has grown on a strong basis to          Association of Indonesian Automotive Industries
          become what it is today.                                    (Gaikindo) has formulated new car sales projection
                                                                      in 2024, which is 1.1 million units or higher from 1.05
          Furthermore, following the join of Mr. Ahmad Ifham, the     million units projected in 2023.
          Board of Commissioners believes will be able to improve
          supervision over compliance with sharia aspects in          In the financing industry, Association of Indonesian
          the Company’s operational activities to boost sharia        Financing Companies (APPI) also forecasted growth
          business growth in the Company. As of this report           in multifinance receivables with a moderate target
          publication date, the Company has 1 (one) DPS serving       around 12%-13% in 2024 in line with the target for the
          as Chairperson and a DPS Member who will continue           Indonesian economy to grow by 5.0% as the customer
          to provide supervision and suggestion to the Company        purchasing power is stronger.
          regarding the Company’s business processes and sharia
          operational processes.                                      With various prospects and challenges ahead, the
                                                                      Company has prepared strategies and plans as disclosed
          To always develop competency of the Board of                in Business Plan 2024, which has been prepared
          Commissioners and Board of Directors members a              by Board of Directors and discussed with Board of
          manifestation of the Company’s compliance with              Commissioners in November 2023. These business
          prevailing regulations, as of December 31, 2023, all of     prospects are disclosed in 2024 Annual Business Plan
          the Board of Directors, Board of Commissioners and          that also includes information about business targets
          Sharia Supervisory Board members have participated in       and strategic plans that will be implemented and have
          good sustainability requirements program organized by       been submitted to OJK.
          Association of Financing Companies Indonesia (APPI),
          as well as by OJK or other training institutions that       The Board of Commissioners assumed that, in
          obtain permits from authorized agencies. Fulfillment of     general, the business prospects have been prepared
          sustainability requirements for Mr. Toshiyuki Kojima as     appropriately, in line with the Company’s direction
          President Commissioner and Mr. Masami Shiobara as           and objectives, including concerning the Company’s
          Commissioner will respectively begin to be calculated       medium and/or long-term plans. The business prospects
          in the next calendar year, such as in 2024 and 2025         also consider the Company’s current strengths and
          following the publication of fit and proper test decision   future potential or opportunities, considering external
          letter as President Commissioner and Commissioner,          and internal conditions that may affect the Company’s
          respective had just been received in 2023 and 2024.         business continuity, prudent principle, and risk
                                                                      management implementation. Stress test or sensitivity
          On behalf of the Board of Commissioners, we express         analysis on the Company’s financial condition has also
          our thanks and appreciation for the best contribution       been carried out by the Board of Directors to measure
          that has been given to the Company.                         extent of the impact from changes in external conditions
                                                                      to the Company’s financial performance.

               Business Prospect                                      Going forward, the Board of Commissioners will always
                                                                      support Board of Directors’ initiative in accelerating
          Approaching 2024, global economic slowdown shall be         sales in the new Yamaha motorcycle financing business
          anticipated considering its impact to slowing economic      line, as well as optimizing contribution of other financing
          growth in developed and developing countries, including     business lines. Such conditions shall be accompanied
          Indonesia, which will embrace the year of Presidential      by improving quality of financing assets as reflected
          election. Although Indonesia’s economic performance         in the NPF ratio. The Board of Directors’ initiatives in
          is seen to remain strong amidst the weakening global        maintaining the financial ratios as the indicators of
          economic outlook, we still need to stay vigilant.           the Company’s condition and performance shall be
                                                                      continued and improved.
          Economic growth performance in 2024 is projected to
          grow at 5.2%. The economic growth is estimated to           The Board of Commissioners also continuously supports
          remain strong, supported by robust macroeconomic            the Company’s various plans, including product
          fundamentals and economic transformation. Inflation         optimization and development (product & portfolio
          rate is estimated at 2.8% in 2024, or the outlook of        strategy). The Board of Commissioners maintain full
          3.1% released in 2023. Rupiah exchange rate is also         support for the digital transformation that is carried out
          expected to be maintained at around Rp15,000/US$ in         by the Board of Directors in supporting the Company’s
          2024. The government optimistically views Indonesian        business operations.
          economy will have a positive growth based on stable
          domestic indicators.




64
Page 65
PT BUSSAN AUTO FINANCE




                                                                                                                            HIGHLIGHTS
                                                                                                                            PERFORMANCE
Implementation of the strategies mentioned above          Board of Commissioners hopes that the joining of
shall be balanced with internal control as part of        new shareholders JA Mitsui Leasing, Ltd. will further
strengthening governance and risk management which        strengthen the Company’s position to maintain its
is expected to support the Company to achieve business    growth.
and non-business targets in the upcoming years.
                                                          We would also express our gratitude to our stakeholders
The Board of Commissioners proposed the Board of          for the support and suggestions, especially to regulators,




                                                                                                                            REPORT
                                                                                                                            MANAGEMENT
Directors to be careful in dealing with situations with   such as Financial Services Authority (OJK) and
potential impact to the Company’s performance.            Indonesian Stock Exchange (BEI), as well as to business
The Board of Directors shall remain adaptive and          partners for their supports to the Company.
apply appropriate measures, especially in facing
the general election year in 2024, including to be        Therefore, we would also express our utmost
observant in observing existing opportunities as well     appreciation to the Board of Directors and all employees
as consider and monitor current conditions. The Board     for their best endeavors for the Company’s business
of Commissioners will also attempt to optimize its        going concern in 2023. The Board of Commissioners
supervisory duties in 2024.                               truly expects that all part of the Company will be able
                                                          to implement effective strategy in the future to bring
                                                          the Company towards a higher growth.
     Appreciation




                                                                                                                            PROFILE
                                                                                                                            CORPORATE
The Board of Commissioners would extend our
appreciation to our Shareholders for their trusts. The




                                           Jakarta, March 26th, 2024




                                                                                                                            DISCUSSION & ANALYSIS
                                                                                                                            MANAGEMENT
                                      On Behalf of Board of Commisioners,



                                          TOSHIYUKI KOJIMA
                                         PRESIDENT COMMISIONER




                                                                                                                            GOVERNANCE
                                                                                                                            CORPORATE
                                                                                                                            REPORT
                                                                                                                            SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                             65
Page 66
     MANAGEMENT
     REPORT




             01.   TOSHIYUKI KOJIMA         04.   DANI FIRMANSJAH
                   PRESIDENT COMMISSIONER         INDEPENDENT COMMISSIONER

             02.   MASAMI SHIOBARA          05.   PRABOWO
                   COMMISSIONER                   INDEPENDENT COMMISSIONER

             03.   NAOTAKA TAKESHITA        06.   NURDAYADI
                   COMMISSIONER                   INDEPENDENT COMMISSIONER




                      04



                                                         05


                                                                        06




66
Page 67
                         PERFORMANCE   MANAGEMENT   CORPORATE   MANAGEMENT              CORPORATE          SUSTAINABILITY
                         HIGHLIGHTS    REPORT       PROFILE     DISCUSSION & ANALYSIS   GOVERNANCE         REPORT




                                                                                                                            67
                                                                                                     03
                                                                                             01




                                                                                                                            2023 ANNUAL REPORT & SUSTAINABILITY REPORT
                                                                                                      02
PT BUSSAN AUTO FINANCE
Page 68
       MANAGEMENT
       REPORT




                    PRESIDENT DIRECTOR




6868
Page 69
PT BUSSAN AUTO FINANCE




                                                                                                                 HIGHLIGHTS
                                                                                                                 PERFORMANCE
            REPORT FROM THE
            BOARD OF DIRECTORS




                                                                                                                 REPORT
                                                                                                                 MANAGEMENT
                                                  Economic Review
THE 2023 WAS A CHALLENGING                   2023 brought a new beginning for the world since the
YEAR, BUT WE SAILED THROUGH.                 COVID-19 emergency status was lifted by the World
                                             Health Organization (WHO). However, the situation
THERE WERE A LOT OF LESSONS                  and conditions in 2023 were still dealing with global




                                                                                                                 PROFILE
                                                                                                                 CORPORATE
                                             uncertainty, such as the sequence of geopolitical war
LEARNT AND IMPROVEMENTS THAT
                                             between Russia and Ukraine that had major world
WE DID AND ARE IN PROGRESS. WE               commodities price to soar. Consequently, global
                                             inflation remained still high, triggering several countries
BELIEVE THAT WE ARE MORE READY               to raise their benchmark interest rates to reduce
TO EMBRACE THE CHALLENGES AND                inflation and maintain the prices stable. Amidst the
                                             global uncertainty, the International Monetary Fund
GAIN MOMENTUM IN 2024.                       (IMF) raised its global economic growth projection for
                                             2023, from 2.8% (YoY) to 3.0% (YoY) in line with easing
                                             global inflation, however, the growth was still below the
                                             growth achieved in 2022.




                                                                                                                 DISCUSSION & ANALYSIS
                                                                                                                 MANAGEMENT
                                             On the domestic side, Central Statistics Agency (BPS)
                                             announced that Indonesian economy in the fourth
                                             quarter of 2023 reached 5.0%. Meanwhile, cumulative
                                             economic growth in 2023 grew by 5.1%, lower than
                                             5.3% growth in 2022, and below the target set in the
                                             State Revenue and Expenditure Budget (APBN) of 5.3%.
                                             One of the causes of the economic growth slowdown
                                             compared to 2022 was household consumption growth,
                                             which contributed more than half of Indonesia’s gross
                                             domestic product, only increased by 4.8%, lower than
                                             4.9% in 2022. This was mainly due to a slowdown in
                                             spending by upper-middle class society, as indicated
                                             by higher household consumption, lower luxury tax
                                             collections, lower air travel and lower car sales last year.
                                                                                                                 GOVERNANCE
                                                                                                                 CORPORATE



                                             Based on data released by the Association of Indonesian
                                             Automotive Industries (GAIKINDO), realization of
                                             wholesale car sales achieved 1.0 million units in 2023.
                                             The figure was still below the target previously set by
                                             Gaikindo of 1.1 million units. The 4.0% (YoY) decrease
                                             compared to 2022 which reached 1.0 million units was
                                             caused by a slowdown in the automotive market due to
                                             an increase in Bank Indonesia interest rates, as well as
                                             slowing economic growth.

                                             Different trends in motorcycle sales. Based on data
                                             released by the Indonesian Motorcycle Industry
                                             Association (AISI), overall motorcycle sales recorded
                                             positive growth of 19.4% (YoY), from 5.2 million units
                                                                                                                 REPORT
                                                                                                                 SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                  69
Page 70
     MANAGEMENT
     REPORT




          in 2022 to 6.2 million units in 2023. Motorcycle sales in    implemented well, the Board of Directors provides the
          2023 exceeded AISI’s target of 5.8 million units. This       necessary explanations as stated in Annual Business
          situation is in line with the semiconductor chips supply     Plan, thereby these strategies and policies are easier
          which has improved.                                          to apply. The Board of Directors always pays attention
                                                                       to any changes in business environmental conditions
          In terms of financing industry, the growth of financing      that occur, both external and internal, to achieve the
          industry recorded a positive results throughout 2023.        Company’s business targets and objectives.
          This can be seen from growing realization of financing
          receivables. Financing receivables from the financing        a. Strengthening the financing portfolio
          industry in Indonesia in December 2023 increased                In the new Yamaha motorcycle financing line,
          13.2% (YoY) to Rp470.9 trillion. This growth was                as an effort to maintain BAF share, the Company
          supported by a good increase in investment financing            was implementing strategies, including focusing
          and working capital financing, which respectively               on areas that with high contribution to BAF Share
          grew by 9.0% (YoY) and 15.1% (YoY). This is in line             and focusing on dealers that provide the best
          with fulfilling the obligations of finance companies in         contribution by considering the volume and quality
          increasing their contribution to investment financing           of financing. Apart from optimizing the use of the
          and working capital. The increase in financing                  Customer Relations Management (CRM) system,
          receivables caused the total assets of the financing            efforts to increase the contribution of repeat
          industry to also increase 13.3% (YoY) to Rp552.9 trillion       orders are also being made by launching various
          as end of December 2023.                                        marketing programs such as Spontan (Instant
                                                                          Motorcycle) program, which is a benefit provided
          As end of December 2023, total industry revenue grew            to the Company’s loyal customers with a good
          16.7% (YoY) to Rp123.2 trillion from Rp105.6 trillion by        payment history. Continuous strengthening of
          the end of December 2022. Total operating expenses              cooperation between Yamaha Indonesia Motor
          also increased by 17.8% (YoY) to Rp94.0 trillion.               Manufacturing, dealers and the Company continues
          However, the net profit of the financing industry was           to be improved.
          still able to record a significant increase of 13.0% (YoY)
          from Rp20.4 trillion at the end of December 2022 to             The strategy in the used motorcycle financing
          Rp23.0 trillion at the end of 2023.                             line is carried out through expanding cooperation
                                                                          with used motorcycle dealers which focuses on
          Due to this positive financial performance, the                 areas that have great potential in 2023. The
          performance of the industry’s financial ratios also             Company enhanced cooperation with dealers and
          improved. The profitability ratio of the financing              focuses on the areas of Sumatra, Java, Kalimantan
          industry has increased along with the increase in               and Sulawesi. In February 2023, the Company
          industrial business profits. The industry’s Return on           inaugurated the first Lapak Mokas Berkualitas (LMB)
          Assets (ROA) increased slightly to 5.6% as end of 2023          in Indonesia located in Makassar – Maros. LMB is
          from 5.7% in 2022. The industry’s Return on Equity              a business place in the form of a used motorcycle
          (ROE) also increased to 15.0% in December 2023 from             showroom provided by the Company in collaboration
          14.4% in 2022. The financing industry’s ability to              with used motorcycle dealers as motorcycle stock
          reduce operational costs was demonstrated by BOPO               providers. The existence of LMB provides access for
          ratio of 76.9% in 2023. The non-performing financing            people who want to own a quality used motorcycle
          (NPF) ratio for the financing industry reached the level        through financing.
          of 2.4% in 2023 or an increase compared to the end of
          2022 at the level of 2.3%.                                      Expansion of car financing service network also
                                                                          sustained to increase the volume of financing
                                                                          distribution to the broader society while expanding
               2023 Performance                                           the coverage area. In developing new markets in
                                                                          several regions as part of business development,
          Strategy and Strategic Policy, Role of Board of                 the Company continued to expand sales network
          Directors in Formulation, and Process to Ensure                 through point of sales by utilizing the presence
          Strategy Implementation                                         of branch offices throughout 2023, especially in
                                                                          Pematang Siantar and Lahat. The cooperation
          In 2023, the Board of Directors has attempted                   network between the Company and dealers was
          to implement strategic policies based on the                    increasingly expanding. The Company is adding new
          Company’s business plan as approved by the Board                car dealers that have never previously collaborated
          of Commissioners. In its preparation, the Board of              with the Company, including reaching out to
          Directors contributed in expressing the ideas and               collaborate with new car dealers, especially Toyota
          formulations that the company needs as the main key             brand dealer groups in Sumatra area, Honda in
          in achieving business growth. This formulation is in line       the Jabodetabek area in line with the many new
          with the Company’s vision, mission, and objectives. To          models of Toyota & Honda which released in 2023.
          ensure that the Company’s strategies and policies are




70
Page 71
PT BUSSAN AUTO FINANCE




                                                                                                                       HIGHLIGHTS
                                                                                                                       PERFORMANCE
                                                                                                                       REPORT
                                                                                                                       MANAGEMENT
                                                                                                                       PROFILE
                                                                                                                       CORPORATE
                                                                                                                       DISCUSSION & ANALYSIS
                                                                                                                       MANAGEMENT
   BAF Dana Syariah shared an excellent contribution.     agricultural and plantation sectors with individual
   The achievement was related to various initiatives     and corporate retail businesses for the Kalimantan,
   and strategies carried out throughout 2023. The        Sulawesi, West Nusa Tenggara (NTB) and East Nusa
   strategy implemented in 2023 for the Company’s         Tenggara (NTT), Palembang and Lampung regions.
   customers is to focus on making offers with an         The Company has added collaborations with several
   integrated customer journey through collaboration      new brands such as XCMG and ZOOMLION. With the
   with the CRM team, Digital and Telesales teams.        addition of this collaboration, variety of customer
   With this customer journey, the Company’s              choices will be met, regarding needs agricultural and
   customers will receive different program offers and    plantation machinery, apart from the 4 (four) brands
   offering methods at each phase. DASYAT (Dana           that have collaborated earlier, namely YANMAR,
   Syariah Tercepat) program is still the Company’s       KUBOTA, NEW HOLLAND, and JOHN DEERE.
   flagship program as provides very fast Dana Syariah
   processing services, within 1 (one) hour from          In 2023, BAF PraDana has succeeded in providing
   application entry to disbursement. As end of 2023,     financing for more than 7 thousand customers, both
   contribution of DASYAT program to the distribution     new applications and repeat orders, by disbursing
                                                                                                                       GOVERNANCE
                                                                                                                       CORPORATE



   of new financing in 2023 was 21.0%.                    financing to more than Rp12 billion. Since first
                                                          launched, BAF Pradana has succesfully provided
   In the electronics, gadgets & furniture financing      financing to more than 25 thousand consumers.
   business line, the Company has made a change in        This is considered as a good achievement in
   strategy focusing on increasing the comfort and        the first 2 years after the launching and is
   quality of the Company’s loyal customers in 2023.      continuously developed to be carried out for various
   As a result, value of the loyal customer financing     improvements. To expand market reach, digital
   portfolio increased to 81% at the end of 2023 from     media and social media are utilized to communicate
   the previous 63% in 2022. The Company has also         related to products and brands. Implementation
   added financing acquisition channels by making         of the referral program also collaborates with BAF
   acquisitions with digital application channels.        Mobile to maximize the use of BAF Points by the
                                                          customers.
   To support financing for agricultural machinery, the
   Company has expanded operational area in the
                                                                                                                       REPORT
                                                                                                                       SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                        71
Page 72
     MANAGEMENT
     REPORT




             BAF AdiDana products sales is still located in               application as a service for customers by utilizing
             Jabodetabek area. Several efforts have been made             a credit limit to purchase goods/products in one
             to have better understanding in the character                transaction via digital platform and connected with
             of the new product as well as to further improve             digital partners. Development of this application
             product performance for debtor service purpose.              is still ongoing and is expected to be introduced in
             This includes the utilization of agent program by            2024.
             implementing an agent gathering program by
             recruiting loyal debtors of the Company as BAF               BAF Mobile, which is intended to provide easy
             AdiDana agents with attractive incentive scheme.             and comfortable services for BAF Friends (BAF
             In addition, the Company also started to expand              customers), also continuously developed by adding
             orders via employee referrals. BAF AdiDana                   several features such as Live Chat, Help Center
             products will be developed and focused more on               menu, Dana Syariah Digitalization (DASYAT), and
             providing financing service facilities to the debtors,       the development of other features. It is intended
             especially micro and small business segments.                for customers’ convenience in using BAF Mobile
                                                                          to be optimized in reaching the Company’s
          b. Asset quality improvement                                    services digitally. The Company also periodically
             In 2023, the Company established Continuous                  rejuvenates the user interface, including refreshing
             Improvement or “Kaizen” Task Force focusing                  the appearance of the BAF Mobile application.
             on evaluating 3 (three) critical aspects, such as
             acquisition, credit, and collections. The Company         Comparison Between Target and Achievement
             made several adjustments to its business strategy
             on the acquisition side. On the credit side, the          Based on financing performance, as end of 2023,
             Company conducted a review in managing credit             the Company has disbursed new financing of Rp11.0
             quality, including strengthening monitoring of            trillion or a slight growth of 0.1% (YoY) compared to
             financing quality. In term of billing or collections,     the same period last year. This financing distribution
             the Company strives to ensure its portfolio is            was realized at 88.5% of the Company’s target. This is
             well maintained by improving collection strategy          inseparable from the decline in financing distribution
             which includes tele-collection & field-collection.        for new Yamaha motorcycle financing and car financing
             In supporting the billing operational process, the        products. In 2023, new Yamaha motorcycle financing
             Company has intensified the use of the Collection         distribution decreased to Rp5.9 trillion as end of
             Management System (CMS) to help more effective            December 2023 from Rp6.2 trillion by end of 2022. Car
             collection handling process and optimize monitoring       financing also fell almost 20% (YoY) to Rp1.3 trillion
             of billing activities using Mobile Collection System      from Rp1.6 trillion. There was disruption in supply of
             (MCS).                                                    vehicle unit stock due to the scarcity of semi-conductor
                                                                       chips, especially for Yamaha motorcycles (premium
          c. Acceleration of information technology and                models), which became notable challenge, especially in
             digitalization                                            the first half of 2023. However, sharia financing, which
             The Company continuously improves existing                was dominated by BAF Dana Syariah products, was
             business processes by maximizing the use of               supporting the growth of financing distribution in 2023.
             information technology and developing digital             BAF Dana Syariah grew by 39.0% (YoY).
             services, in line with the customers’ needs, as well as
             financial industry development in Indonesia. Focus        The slowdown in amount of financing disbursement
             of in the Company’s information technology in 2023        in 2023 became a cause of stable growth in financing
             was to keep developing current business support           receivables, which ultimately affected to the Company’s
             systems/applications to support digitalization in         total assets. By end of 2023, the Company’s total
             increasing effectiveness and productivity of the          assets achieved Rp14.1 trillion or 91.3% realized as
             Company’s operations.                                     end of December 2023 compared to the Company’s
                                                                       projections. This is contributed from the realization of
             To improve the human resources system to further          the Company’s net financing receivables which only
             reduce administrative/manual work, the Company            reached 90.5% of the Company’s projections. However,
             has launched a system to support Human Resource           if compared to the same period in 2022, the Company’s
             Management needs called HARPA in January                  total financing receivables grew 1.0% (YoY).
             2024. The employee system combines separated
             systems into one integrated and up-to-date system.        As end of 2023, the Company posted a net profit of
             This system can accommodate all manpower                  Rp370.6 billion or below the Company’s target. This
             aspect needs starting from attendance, benefits,          achievement decreased by 45.8% (YoY) when compared
             performance appraisals and various other employee         to the same period in 2022. This decrease was caused
             activities and administration.                            by an increase in impairment losses on receivables by
                                                                       43.3% (YoY) to Rp1.9 trillion in 2023.
             In supporting efforts to expand financing services,
             the Company is also developing a basket financing




72
Page 73
PT BUSSAN AUTO FINANCE




                                                                                                                              HIGHLIGHTS
                                                                                                                              PERFORMANCE
The bottom line achievement affected the Company’s            The initiatives carried out by the Company to keep
financial ratios performance. As of December 2023,            generating new financing, including by accelerating
ROA stood at 3.5%, while ROE stood at 14.2% or below          digitalization in all process lines in the Company.
the Company’s projection. The Company’s BOPO was              The Company strives to maintain asset quality,
achieved exceeding the projections at 91.1% in line           cost management, and a good control and risk
with the realization of operating expenses which had          management system.
increased. The Company’s capital ratio calculated




                                                                                                                              REPORT
                                                                                                                              MANAGEMENT
from adjusted capital to adjusted assets is still within      The Board of Directors realizes that the pandemic
the safe limit determined by the OJK, where the               has been a catalyst for major changes in customer
capital ratio is at least 10%. The Company’s net non-         behavior (customer mega shift). The customers
performing financing (NPF) ratio was 1.02% in line            were namely more accustomed to the use of digital
with the increase in expenses for providing for doubtful      technology. Therefore, the Company continues
receivables.                                                  its digital transformation to maintain quality and
                                                              sustainable growth. This also becomes manifestation
Realization of total proceeds, both domestic and              of the Company’s strategy to answer today’s digital
overseas, is always adjusted to the Company’s                 challenges, as well as to remain competitive in the
financing needs. The plan to issue securities has been        digital financial innovation.
carried out through the issuance of Shelf-Registration
Bonds II Bussan Auto Finance Phase III and IV with            Following the lifting of Covid-19 pandemic status in




                                                                                                                              PROFILE
                                                                                                                              CORPORATE
an issuance value of Rp1.7 trillion. This publication         Indonesia in 2023, some marketing activities have been
received quite positive response from investors. The          carried out offline, but the Company continues to use
Company also consistently pays quarterly interest             a mix of online/digital and offline means. In addition
payments on bonds to investors, including repaying the        to improving the customer acquisition process, the
principal and interest on bonds and sukuk. Thus, the          Company is also implementing its sales strategy by
total outstanding securities issuance amounted Rp4.9          expanding its distribution network and market share by
trillion by December 2023.                                    utilizing various marketing channels, including digital
                                                              platforms such as BAF Mobile, social media, company
Challenges and Anticipatory Plans                             websites or a combination of the two. The Company
                                                              has also utilized Customer Relationship Management
The Company encountered various challenges in 2023,           (CRM), which becomes one of the strategies to improve




                                                                                                                              DISCUSSION & ANALYSIS
                                                                                                                              MANAGEMENT
specifically customer purchasing power which was              engagement with consumers and expected to boost
influenced by various factors. High inflation has affected    sales in the future, especially for repeat orders.
to customers’ quality/behavior. High interest rates also
affected to adjustments to financing interest rates.
However, the Company strives to implement policies                 Sustainable Finance
and strategic steps thereby the Company’s financing
interest rates stay competitive.                              The Company strives to always run business activities
                                                              by always prioritizing harmony between economic,
The challenges occured in 2023 fairly affected to an          social, and environmental aspects. This manifests the
increase in the Company’s net performing financing            Company’s support in achieving various sustainable
(NPF), which was in line with the increase in allowance for   development targets as outlined in the National Action
doubtful receivables expenses. The limited availability       Plan (RAN) for Sustainable Development Goals (SDGs).
of Yamaha motorcycle models (AT Prem) due to the
shortage of microchips was also still occuring in the first   Policies to respond to challenges in fulfilling
half of 2023. This also caused notable impact on new          sustainability strategies
Yamaha motorcycle financing business line as the core
business that was declerating and finally influenced the      The Company’s mission includes and is relevant to the
                                                                                                                              GOVERNANCE
                                                                                                                              CORPORATE




Company’s financing distribution business lines such          implementation of sustainable finance. In the context
as BAF Dana Syariah were strengthened to support the          of its mission, the Company also strives to products
growth in 2023.                                               and/or services innovation to provide the best financial
                                                              solutions to the society. The Company’s products and/
Another challenge in 2023 was less-optimum collection         or services are always be reviewed in line with the
system and affected to collection activities as well as       growing demand and/or needs of society. With the
selective financing disbursement to improve financing         various products currently owned and offered by the
quality. However, in 2023, the Company responded to           Company, a variety of choices was expected to be
this situation by establishing a Kaizen Task Force whom       provided based on their needs that in the end might be
main focus is to evaluate and take action on aspects of       used to support improving people’s welfare and quality
acquisition, collection and credit.                           of life. In the context of the Company’s vision, the
                                                              Company emphasizes four main elements in its vision,
                                                              such as customers, business partners, employees and
                                                              the society which is realized by continuing to provide
                                                                                                                              REPORT
                                                                                                                              SUSTAINABILITY




                                                              the best service.




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                               73
Page 74
     MANAGEMENT
     REPORT




                                                                    Company’s business developments. The Company
                                                                    also provides opportunities for every employee to
                                                                    develop their abilities through training and creating or
          WE ALWAYS ASSURE SAFE,                                    innovating.
          COMFORTABLE AND INCLUSIVE
                                                                    The Company is committed to support sustainable
          WORK ENVIRONMENT TO CREATE                                development goals and achieving sustainable financial
          EXCELLENT, PROFESSIONAL,                                  performance through preparation of a Sustainable
                                                                    Financial Action Plan (RAKB) which is always adjusted
          AND WITH HIGH INTEGRITY                                   to consider, both external and internal factors such
                                                                    as financial conditions, technical capacity and
          HUMAN RESOURCES, AND
                                                                    organizational capacity. The RAKB report for fiscal
          ENCOURAGE ALL EMPLOYEES TO                                year 2024 has received approval from the Board of
                                                                    Commissioners and has been prepared according to
          CONTINUOUSLY EVOLVE.                                      and has been submitted to OJK simultaneously with
                                                                    submission of the annual business plan report for
                                                                    the fiscal year 2024. This is a concrete manifestation
                                                                    of management’s commitment to contribute to
                                                                    sustainable financial development.

                                                                    In line with the transformation, the Company has
                                                                    continued previous action plan as disclosed in 5 (five)
          Corporate values are summarized in visionary,             year roadmap for sustainable finance implementation.
          reliable and accessible that also reflect the spirit of   The 2023 will become advanced implementation stage
          sustainability. These values strive to be implemented     after the initial implementation stage in 2020-2021.
          in every employee’s actions. The Company’s mission,       In 2023, as planned by the Company, the Company
          vision and values have been reviewed periodically         performed monitoring according to sustainability
          by the Board of Directors every year to adapt to the      framework that has been established since 2022.




74
Page 75
PT BUSSAN AUTO FINANCE




                                                                                                                                   HIGHLIGHTS
                                                                                                                                   PERFORMANCE
Through implementation of sustainable finance                always develop. In 2023, the Company renovated
principles, the Company participates and is committed        the workplaces on every floor at head office to
to providing support, one of which is realized in the form   create more comfortable work circumstances. The
of the Social and Environmental Responsibility Program       Company has also organized various education and
(CSR), financing for MSMEs and environmentally               training programs for all employees with average
friendly transportation financing, as well as digital        training hour achieving 19.4 hours per employee in
transformation as one of the responses in dealing            2023 or increased from 18.6 hours per employee in




                                                                                                                                   REPORT
                                                                                                                                   MANAGEMENT
with current challenges in financing sector nowadays.        2022. The Company also focuses on developing the
We realize that digitalization has become part of the        Company’s internal capacity, specifically sustainable
sustainability aspect, especially to improve efficiency of   finance for employees, Board of Directors, and
operational processes and quality of services with digital   representatives of the Board of Commissioners. In
support which has become an absolute necessity today.        2023, 100% of employees in Department Head and
                                                             Senior Management Level positions have participated
Sustainable finance initiative                               in a specific learning program related to sustainable
                                                             finance through Learning Management System (LMS).
The Company attempted to deliver best performance
to serve the customers and society throughout 2023,          The Company continuously provides added-value to
especially in fulfilling customers’ needs and sustainable    society through social and environmental responsibility
financial principles implementation.                         (CSR) activities including financial literacy and inclusion




                                                                                                                                   PROFILE
                                                                                                                                   CORPORATE
                                                             activities. The Company’s CSR activities focused
As of 2023, contributions to Sustainable Business            on BAF Caring for Children, as a full commitment
Activities Category (KKUB) were dominated by                 to support Sustainable Development Goals (SDGs),
financing distribution to Micro, Small and Medium            especially SDG 4. TJSL activities held throughout 2023
Enterprises (MSMEs) and environmentally friendly             were including BAF Anniversary activities, BAF Sharing
transportation. Total new financing disbursement to          in the Month of Ramadhan and Year-End, BAF Lions
MSMEs in 2023 achieved Rp4.0 trillion. Therefore,            Run, BAF United for Care, Safety Riding Science for
as end of 2023, total MSMEs portfolio reached Rp5.1          Kids, and Foster Parents. These activities have positive
trillion or 36.9% of the Company’s total portfolio. The      impact on the beneficiaries. Through the programs
Company has also disbursed KKUB financing for eco-           mentioned above, more than 12,000 children received
friendly transportation including electric and hybrid        benefits with a value of Rp2.05 billion in 2023.




                                                                                                                                   DISCUSSION & ANALYSIS
                                                                                                                                   MANAGEMENT
cars, as well as Yamaha (hybrid) motorcycles with total
new financing reached Rp970.2 billion in 2023. Total         To support OJK’s initiatives to increase financial literacy
environmentally friendly transportation portfolio until      and inclusion index target, in 2023, the Company
by end of 2023 reached Rp975.9 billion or 7.1% of the        has provided literacy to 461 participants comprising
Company’s total portfolio. Therefore, as end of 2023,        of public, students, women’s communities, teachers,
total KKUB in the Company’s portfolio reached Rp6.0          MSMEs, people with disabilities, farmers, as well as the
trillion or 44.1% of the Company’s total portfolio.          Company’s customers spread across in Jakarta, Bogor,
                                                             Makassar and Pare-pare. As an initiative to increase the
Information technology development and digitalization        inclusion of financial service products to the society,
have become the keys to support sustainable finance          financial inclusion activities were also actively carried out.
implementation. This effort also supports more               The Company believes that with a good understanding
effective and efficient business operational processes,      of financial products, people will finally capable to utilize
thereby improving services to the customers. Several         these financial products to improve their welfare.
technological system development and digitalization
initiatives have been carried out in 2023.                   In environmental aspect, the Company supports
                                                             the Government to reduce greenhouse gas (GHG)
Digitalization initiatives were also expected to have        emissions to 31.9% in 2030 through various initiatives.
                                                                                                                                   GOVERNANCE
                                                                                                                                   CORPORATE




positive impact to the environment, such as reducing         We strive to implement green operations in the work
paper use, reducing transportation mobility, and             environment. We keep improving efficiency of paper,
optimizing digital platforms which have the potential        electricity and water usage. In 2023, one of the
to reduce carbon emissions. Throughout 2023, 2,600           efficiencies included the use of paper, where the use
digital bookings were submitted via BAF Mobile. BAF          of paper has decreased significantly by 38.0% (YoY)
Mobile users also increased along with the increase in       compared to 2023.
total downloaders achieving 3.7 million. Installment
payments via online payment also reached 87%.                We realize that the Company is a company operating in
                                                             financing services, especially new Yamaha motorcycle
From social aspect, we continuously ensure a safe,           financing, which indirectly contributes to motor vehicle
comfortable and inclusive work environment to create         exhaust gas emissions. Therefore, BAF ECO Move was
superior, professional and high integrity human              regularly carried out as one of the Company’s initiative in
resources, including supporting all employees to             supporting carbon emission reduction, nature restoration
                                                                                                                                   REPORT
                                                                                                                                   SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                    75
Page 76
     MANAGEMENT
     REPORT




          and climate arrangement. In 2023, the Company has            data confidentiality and security.
          donated more than 20,000 tree seedlings at various
          points spread across 6 (six) coasts in Indonesia. Thus,      Sustainability is a journey requiring cooperation
          in the 3 years since the BAF ECO Move was carried out,       between stakeholders. Support and collaboration from
          more than 135,000 trees have been planted in various         everyone, including the government, regulators and
          regions. The principle of collaboration is implemented in    industry to create environmentally friendly business
          this movement by involving cooperation from the local        climate has a significant role in sustainable finance
          agencies, LindungiHutan, customers, employees, as well       implementation. Implementation of environmentally
          as dealers and other business partners.                      friendly industry requires development of adequate
                                                                       infrastructure thereof necessary to ensure readiness
                                                                       of green products and infrastructure from upstream
               Challenges in Sustainable Finance                       to downstream. Therefore, cooperation among all
               Implementation Performance                              parties becomes the key in sustainable finance
               Achievement                                             implementation. With solid collaboration regarding
                                                                       implementation of sustainable business, we expect to
          We realize that sustainable finance implementation           encourage creation of various sustainable financial
          requires process and commitment in dealing with              initiatives and products, in order to contribute to SDGs
          current, both internal and external, challenges.             achievement.

          From internal perspective, the Company is aware
          the importance to accelerate improvement of                       Target Achievement Strategy
          comprehensive understanding by employees at all
          job levels. Therefore, the Company strives to increase       In 2023, target achievement strategy for sustainable
          capacity, including delegating the person-in-charge          financial plan is carried out based on indicators in
          to training and certification programs. Therefore,           the RAKB prepared by the Company. In achieving
          the Company always attempts to organize capacity             the performance targets for sustainable finance
          building from staff to the Board of Directors and            implementation, the Company seeks to increase
          Board of Commissioners levels. The Company also              contribution to achievement of economic, social, and
          expects that regulators will organize continuous             environmental performance, followed by strengthening
          training/workshops for the industry related to future        governance performance.
          development and direction of sustainable finance.
          Enhancing the database to quantify ESG aspects of            The Company has developed human resource
          every component assessed by the Company also to              competency, especially related to sustainable finance as
          always be improved.                                          well as comprehensive support from all the Company’s
                                                                       organizational aspect. Various digitalization initiatives
          In addition to employees, external parties have a            are also maintained. The digitalization effort is in
          significant role in business activities transition towards   line with sustainable finance principles with shifting
          an eco-friendly economy. Therefore, it is necessary to       consumption patterns in the society prioritizing the use
          continuously provide education to public and specifically    of technology with concern in efficiency aspects.
          the customers related to understanding awareness to
          their role and contribution in sustainable finance.          In risk management, the Company periodically
                                                                       performs identification, analysis, mitigation, evaluation,
          Another challenge is the increasing environmental and        and monitoring of 8 (eight) types of risks that may
          social risks, such as global warming, extreme climate,       potentially threat Company’s targets achievement. In
          and environmental damage resulting to natural                terms of strategic risk, the Company will assure that the
          disasters. Therefore, risk mapping and mitigation are        sustainable financial action plan has been implemented
          continuously strengthened to ensure continuity of the        appropriately while always concerning the Company’s
          Company’s services to the customers.                         internal and external conditions and carrying out
                                                                       additional activities in form of Risk Assessment and/
          Broader and massive use of technology as well as             or Compliance Analysis for each sustainable finance
          digitalization affected to more vulnerable data              program proposed by Business & Marketing/Operational
          security. Such situation may also increase cybercrime        Team/Supporting Team. In credit risk, an in-depth
          risk. Therefore, in 2023, data security has become           assessment, especially of financial products/innovations,
          one of the material issues as the Company’s concern.         including to potential debtors, is certainly required before
          The Company has obtained ISO 27001 certification             disbursing financing related to sustainable finance.
          that is an international standard as a guideline             Periodic review on internal policies to support Sustainable
          for the Information Security Management System               Finance implementation and align with the Company’s
          (ISMS). Furthermore, the Company strives to organize         risk management strategy.
          understanding and awareness sessions for employees,
          customers and public to raise awareness while                The Board of Directors believes that the Company has
          encouraging them to cooperate in maintaining their           promising opportunities to continuously develop and




76
Page 77
PT BUSSAN AUTO FINANCE




                                                                                                                                HIGHLIGHTS
                                                                                                                                PERFORMANCE
deliver sustainable performance. Existence of a balance     Meeting of Shareholders in 5 (five) times throughout
and developing business line supported by the strength      2023 with various agendas such as changes in Board
of branding as an experienced financing company have        of Commissioners members, appointment of a Public
become the Company’s strength.                              Accounting Firm and Public Accountant to audit the
                                                            Company’s financial statements for the fiscal year 2023,
Opportunities or chance to further develop sustainable      and approval to changes in the Company’s shareholders.
finance are available following the growing productive




                                                                                                                                REPORT
                                                                                                                                MANAGEMENT
financing sector, especially MSMEs, development of          Board of Directors has attempted to implement all
technology adoption by society, higher level of public      GCG principles as disclosed in the organization scheme
financial literacy, and the increasing need for hybrid or   and policy framework, as well as various programs and
electric vehicle financing.                                 activities. Board of Directors meetings were regularly
                                                            held at least twice a month. In 2023, the Board of
To keep supporting implementation of sustainable            Directors organized 31 (thirty one) meetings with the
finance in the future, the Company will optimize            Board of Directors members to discuss performance,
economic performance by achieving the Company’s             strategy and initiatives as well as various other issues/
business and financial targets, including optimizing        discussions in carrying out the Company’s managerial
the Company’s financing products targeting MSMEs            functions. The meetings frequency has even exceeded
to contribute to financing disbursement to MSMEs.           the frequency stipulated by OJK.
The increasing number of MSMEs also provides




                                                                                                                                PROFILE
                                                                                                                                CORPORATE
opportunities to take advantage from opportunities          Joint meetings of the Board of Directors and the Board
to support MSMEs to ‘scale up’ through various              of Commissioners have also been held periodically 4
financing available for MSMEs to increase their             (four) times in 2023, especially to evaluate Company’s
business scale.                                             performance quarterly, and in work plan as well as
                                                            business plan preparation process to acquire feedback
The Company will also maintain financing for eco-           from the Board of Commissioners who perform
friendly transportation, especially car financing.          supervision to the Company’s Directors.
Financing for electric motorcycles will rely on the
products released by Yamaha as the Company’s captive        In addition, to ensure compliance aspect with
market, while still considering eco-friendly vehicle        existing regulations, as well as to adapt to the latest
ecosystem in the future.                                    developments in the industry, the Company seeks to




                                                                                                                                DISCUSSION & ANALYSIS
                                                                                                                                MANAGEMENT
                                                            regulatory monitor every provision issued throughout
In 2024, other external factors still have major            2023, including adjustments to various internal
impact to the Company’s sustainability. These               policies.
factors may originate from external conditions such
as macroeconomic, which may affect to domestic              To assess good governance implementation in the
conditions that might affect the Company’s industry.        Company’s internal circumstances, the Board of
In The Global Risks Report 2023 18th Edition issued by      Directors has reported GCG implementation every year
the Word Economic Forum (WEF) on January 20, 2024,          according to Financial Services Authority Regulation
extreme weather events becomes a risk that will be          (POJK) No. 30/POJK.05/2014 concerning Good
faced in the next 2 to 10 years. Therefore, the Company     Corporate Governance for Finance Companies, as
will strive to make swift and adaptive adjustments.         revised under POJK No. 29/POJK.05/2020 concerning
The Company has prepared a business continuity plan         Amendments to Financial Services Authority Regulation
designed to support the Company’s operations in any         Number 30/POJK.05/2014 concerning Good Corporate
situation.                                                  Governance for Finance Companies, and SEOJK No. 15/
                                                            SEOJK.05/2016 concerning Good Corporate Governance
                                                            Implementation Report for Financing Companies. This
     Corporate Governance Implementation                    reflects high commitment to implementation of GCG
                                                                                                                                GOVERNANCE
                                                                                                                                CORPORATE




                                                            principles in the Company’s internal circumstances. In
Board of Directors strives to implement Good Corporate      2023, the Company has also submitted business plan
Governance (GCG) principles to maintain harmony             report for 2024 and semester business plan realization
and balance between interests of the Company and            report on time as per POJK No. 24/POJK.05/2019
all stakeholders. GCG implementation in the Company         concerning Business Plans for Non-Bank Financial
refers to 5 GCG principles, which are sought to be          Services Institutions, which were prepared according to
reflected in all of the Company’s business aspects.         provisions of SEOJK No. 23/SEOJK.05/2019 concerning
                                                            Business Plans for Finance Companies and Sharia
The Company has organized Annual General Meeting            Financing Companies.
of Shareholders (GMS) for fiscal year 2022 within a
time limit as stipulated under the law, which is on May
8, 2023. The shareholders also conducted Circular           As an essential part of operational activities and decision-
Shareholders Resolution in lieu Extraordinary General       making processes in order to achieve business goals, the
                                                                                                                                REPORT
                                                                                                                                SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                 77
Page 78
     MANAGEMENT
     REPORT




          Company strives to ensure that all occurring risks can be     Commissioner and have passed Fit and Proper Test from
          identified, monitored and controlled earliest as possible     OJK thereby effectively serving as Commissioners at the
          properly based on the 4 (four) risk management                Company.
          implementation that have been implemented for each
          of the Company’s risk type. Overall, implementation of        Board of Directors would like to extend our gratitude
          risk management in the Company has been adequate.             to Mr. Tetsuya Daikoku and Mr. Jun Ikeda who for their
          The Company’s risks exposure has also been managed            best endeavors, efforts and dedication while serving
          appropriately. The Company has taken the required             at the Company. Therefore, until this resolution was
          mitigation plans to achieve every stipulated business         made, composition of the Board of Commissioners
          and operational strategy determined by considering the        still comprised of 6 (six) people, including 3 (three)
          risk exposure.                                                as Independent Commissioners. Composition of
                                                                        Independent Commissioners on the Company reached
          Establishment of various supporting organs such as            60% of total Board of Commissioners members thereof
          Corporate Secretary, Internal Audit Unit, Anti-Fraud          has complied with prevailing rules and regulations,
          including AML CFT & PFWMD, Risk Management and                which is minimum 30% of total Board of Commissioners
          Compliance, has been supported by policy framework            members. This composition has been solid and is
          as GCG processes and mechanisms applied within the            expected to optimize implementation of supervision
          Company. The Board of Directors has also reviewed and         over the Company’s management.
          updated the current policy tools regularly to stay relevant
          both to development of the Company and prevailing             Composition of Board of Directors and Board of
          regulations. In internal control aspect, the Company has      Commissioners has complied to prevailing regulations,
          implemented appropriate internal control system.              and all of the Board of Directors and Board of
                                                                        Commissioners members have passed the Fit & Proper
          In code of conducts enforcement aspect, Whistleblowing        test from OJK. All of the Board of Commissioners
          System policy aims to encourage and enable the                and Board of Directors members have also fulfilled
          Company’s Board of Directors and employees to raise           sustainability requirements as disclosed in POJK No. 35/
          their awareness to the effective handling of violation or     POJK.05/2018 concerning Financing Company Business
          fraud indication, either committed by individual or group     Implementation, through a sustainability requirements
          in the Company’s internal and external circumstances.         program in form of seminars organized by Indonesian
          Whistleblowing system has been implemented properly           Financing Company Association.
          by Anti-Fraud Unit. In 2023, the Company has been
          supported by Female Investigator hotline intended for
          reporting that requires handling by a Female Investigator.         Changes in Shareholders
          The Company has involved other stakeholders by
          mentioning the hotline on the Company’s website.              On September 25, 2023, according to circular
                                                                        shareholders resolutions in lieu the Company’s
                                                                        Extraordinary General Meeting of Shareholders decided
               Changes in Board of Directors and                        to approve changes to the shareholders composition.
               Board of Commissioners Members                           The change in shareholders has been followed up by
                                                                        signing a shares transfer deed as stated in Shares
          In Annual GMS fiscal year 2022 held on May 8, 2023,           Transfer Deed Number 29 dated September 26, 2023,
          the Shareholders has approved re-appointment of Mr.           between Mitsui & Co. Ltd. As seller and JA Mitsui Leasing,
          Charles Gultom as Director, with a term of office of 3        Ltd. As a buyer, drafted before Marina Soewarna, S.H.,
          (three) years and effectively applied as per closing of       Notary in Central Jakarta. Therefore, as of December
          this Meeting until closing of the Company’s Annual            31, 2023, the Company’s share ownership comprises
          General Meeting of Shareholders for fiscal year 2025.         of Mitsui Co., Ltd. with 45.0% and JA Mitsui Leasing,
          Therefore, as of 2023, Board of Directors members             Ltd. with 20.0% shares ownership. The others has not
          consists of 7 (seven) members with a composition              changes. Supported by the new shareholders, the Board
          of 1 (one) President Director, 2 (two) Vice President         of Directors believes the Company’s position will be
          Directors, and 4 (four) Directors.                            further strengthened in Indonesia’s financing business.

          On the Board of Commissioners side, there were
          changes in the Board of Commissioners members. The                 Assessment to Committee
          2023 AGMS has approved resignation of Mr. Tetsuya                  Under Board of Directors
          Daikoku as President Commissioner of the Company.
          Next, in Circular Shareholder Decree dated August             According to prevailing laws and regulations, the Board
          18, 2023, the Shareholders approved resignation of            of Directors is eligible to establish supporting organs in
          Mr. Jun Ikeda as Commissioner. As the successor, the          charge to assist smooth implementation of the Board
          shareholders have appointed Mr. Toshiyuki Kojima as           of Directors’ duties and responsibilities. As of 2023,
          President Commissioner and Mr. Masami Shiobara as             the Company has 6 (six) committees under the Board




78
Page 79
PT BUSSAN AUTO FINANCE




                                                                                                                              HIGHLIGHTS
                                                                                                                              PERFORMANCE
                                                                                                                              REPORT
                                                                                                                              MANAGEMENT
                                                                                                                              PROFILE
                                                                                                                              CORPORATE
                                                                                                                              DISCUSSION & ANALYSIS
                                                                                                                              MANAGEMENT
of Directors, such as Social Responsibility Committee,       information risks within the Company. In 2023,
Business Continuity Management (BCM) Committee,              Information Technology Steering Committee organized
Occupational Health and Safety Advisory Committee            5 (five) meetings to discuss the latest issue related to
(P2K3), and Information Technology (IT) Steering             governance, systems, IT infrastructure, risk management
Committee. Steering Committee), Digitalization               and IT compliance.
Committee, and Risk Management Committee. The
Committees have an important role in supporting              Business Continuity Management Committee has
the Board of Directors in running the management             also attempted to ensure appropriate and sufficient
functions within the Company based on their respective       level of the Company’s readiness thereof capable to
responsibilities. The Board of Directors assessed that all   mitigate any risk against business activities, also to
Committees have carried out their duties with good and       protect key business processes from the impact of
responsible performance throughout 2023.                     major information system failures or disasters. In 2023,
                                                             the Business Continuity Management Committee
Corporate Social Responsibility Committee has carried        organized 7 (seven) meetings to discuss, including,
out its duties in assisting the Board of Directors in        anticipation of natural disasters such as generator
                                                                                                                              GOVERNANCE
                                                                                                                              CORPORATE



fulfilling economic, social, and environmental aspects       rejuvenation in network offices, Call Tree Drill, early
as manifested in corporate social responsibility             technical DR Drill, socialization, and evaluation of Call
activities. In 2023, Corporate Social Responsibility         Tree Drill.
Committee organized 5 (five) meetings to discuss
CSR work programs or activities. Detail information          Occupational Health and Safety Committee has actively
of CSR implementation activities are presented in            participated in implementing occupational health
Sustainability Report Chapter, which is Social and           and safety in the Company’s work circumstances. In
Community Activities Development of section in this          2023, the Occupational Health and Safety Committee
annual report.                                               organized 5 (five) meetings discussing, among others,
                                                             submission of proposals and discussion of work
Information Technology Steering Committee has also           programs throughout 2023 including safety programs,
carried out its responsibility to oversee technology         health programs and safety riding.
and information risks, as well as every regulatory           Digitalization Committee has also contributed in
and compliance risks related to technology and               accelerating digitalization transformation process
                                                                                                                              REPORT
                                                                                                                              SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                               79
Page 80
     MANAGEMENT
     REPORT




          to support business activities or processes. Various       The Company will optimize sales of new Yamaha
          digitalization projects have been completed and            motorcycle financing business line as core business by
          continuously developed based on business needs. In         strengthening and aligning portfolio strategic plans
          2023, Digitalization Committee organized 9 (nine)          among the Company, Yamaha and the dealers. In
          meetings to discuss roadmap/strategic plan acceleration    addition, strengthening the portfolio strategy will be
          for digital projects such as BAF mobile and BAF Verse.     done focusing on 4 (four) business pillars, including
                                                                     two-wheeled and four-wheeled vehicles, digital
          Risk Management Committee has actively reviewed            business and MSMEs financing. Consequently, the
          Risk Management policies, strategies and guideline. In     Company will also accelerate contribution from non-
          2023, Risk Management Committee organized 4 (four)         Yamaha financing business lines, particularly BAF Dana
          meetings to discuss risk management implementation         Syariah financing line and car financing, by always
          in the Company, including the Company’s soundness          concerning financing quality aspect. Strengthening
          level, risk profile, compliance monitoring, and others.    the Company’s portfolio strategy as one stop financial
                                                                     services will always be carried out by providing range
                                                                     of financing products for various needs, including
               Business Challenges and Outlook                       developing innovative financing product services
                                                                     integrated with e-commerce (basket financing) as a
          The prolong projection of global economic slowdown         strategy to expand digital financing lines.
          still becomes a concern in 2024. However, the Board of
          Directors considers that, in 2024, overall Indonesia’s     The Company will strive to maintain credit expenses
          economic growth will be stable and survive amidst          and implement AR management strategy that will
          the uncertain global economy. The Board of Directors       drive change and sustainable innovation through
          expects that, with strong fundamentals, Indonesia will     digital transformation (DX) and Kaizen (continuous
          maintain economic growth in 2024. The economic             improvement). The Company will sharpen acquisition &
          growth performance in 2024 is projected to grow            collection process by optimizing Tele Collection and Field
          by 5.2%. The economic growth is estimated to               Collection functions, improving quality and capability as
          relatively strong, supported by robust macroeconomic       well as monitoring the function of marketing personnel.
          fundamentals and economic transformation. Inflation
          rate is estimated at 2.8% in 2024, or decreasing from      On HR aspect, the Company will develop and improve
          3.1% outlook in 2023. Rupiah exchange rate is also         human resources (HR) capacity to be more productive
          expected to be stable around Rp15,000/US$ in 2024.         and adaptive (agile) by developing Talent Matrix in line
          The Government is optimistic that Indonesian economy       with development and training plans to support the
          will have a positive growth based on satisfactory          Company’s HR needs.
          domestic indicators.
                                                                     The Company will optimize development of Customer
          Optimism for Indonesia’s economic growth in 2024           Experience (CX) as a crucial part of the Company’s
          encourages optimism for the automotive industry to         marketing strategy in digital era to increase repeat
          boost performance in 2024. AISI targets motorcycle         orders (RO) contribution by utilizing Customer
          sales to increase, similarly with Gaikindo. AISI is        Relationship Management (CRM) system and
          targeting motorcycle sales to grow by 5% (YoY) in 2024     personalizing data-based services. The Company will
          achieving 6.5 million units. Gaikindo has prepared new     also improve cyber security, data protection and data
          car sales projection for 2024 to reach 1.1 million units   governance to support development of current systems
          or increasing from projection of 1.05 million units in     and digitalization processes in the Company.
          2023. APPI optimistically views the growth of multi-
          finance financing receivables with a moderate target       As service improvement initiative, the Company will
          of around 12-13% (YoY) in 2024. OJK estimates total        optimize network strategy by expanding Regional
          assets of multi-finance companies’ projection to grow      Center and opening network office points, including
          around 13-16% (YoY) in 2024.                               enhancing control and audit functions.

          Considering various prospects and challenges ahead,        Governance will surely become the foundation to
          the Company has prepared strategies and plans as           implement the strategies mentioned above. The Company
          disclosed in 2024 Business Plan that was prepared by       will continuously maintain and oversee the company’s
          the Board of Directors and discussed with the Board        soundness level based on risk acceptance for the Company’s
          of Commissioners. The Company will ensure that             long-term sustainability. The Company strengthens
          implementation of these various strategies to always       implementation and supervision of comprehensive risk
          concern prudent principle and risk management              management as well as internal control in network offices
          aspects, as well as the Company’s internal audit. Along    through Risk and Compliance Assurance Program (RCAP),
          with the challenges in 2024, the Company shall remain      system utilization in monitoring the Company’s health
          vigilant and continuously evaluate projections as well     level, as well as increasing risk awareness programs and
          as the targets to align with current conditions.           compliance culture.




80
Page 81
PT BUSSAN AUTO FINANCE




                                                                                                                            HIGHLIGHTS
                                                                                                                            PERFORMANCE
                                                          their perseverance and maximum efforts thereof,
     Closing Remarks                                      the Company successfully passed the 2023. I would
                                                          also thank all of the Company’s loyal customers for
On behalf of the Board of Directors, I would like to      supporting the Company to always deliver excellent
extend the sincerest gratitude and appreciation to        service. May the customers’ loyalty last, while we strives
our shareholders and stakeholders for full support and    to present range of products based on the customers’
trust in managing the Company. We would also thank        needs and our service excellence.




                                                                                                                            REPORT
                                                                                                                            MANAGEMENT
the Board of Commissioners for every supervision and
direction throughout 2023. I would also appreciate the    Our appreciation is also addressed to the Company’s
Board of Directors for solid cooperation in decision-     business partners, including the dealers, banks and
making process as well as implementation of initiatives   other business partners for their full support and trust
and strategies throughout 2023.                           to the Company. We would also thank the regulators,
                                                          such as OJK and IDX, for their endless guidance and
The Board of Directors also addressed our greatest        feedback. We wish the supports will remain in the future,
gratitude and appreciation to all employees for           and encourage growth for all.




                                                                                                                            PROFILE
                                                                                                                            CORPORATE
                                           Jakarta, March 26th, 2024
                                       On Behalf of the Board of Directors



                                               LYNN RAMLI
                                             PRESIDENT DIRECTOR




                                                                                                                            DISCUSSION & ANALYSIS
                                                                                                                            MANAGEMENT
                                                                                                                            GOVERNANCE
                                                                                                                            CORPORATE
                                                                                                                            REPORT
                                                                                                                            SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                             81
Page 82
       MANAGEMENT
       REPORT




               01.    LYNN RAMLI                05.   A LUNG NG
                      PRESIDENT DIRECTOR              DIRECTOR

               02.    AKIRA SUGAI               06.   CHARLES GULTOM
                      VICE PRESIDENT DIRECTOR         DIRECTOR

               03.    KOJI KATO                 07.   YUDONO
                      VICE PRESIDENT DIRECTOR         DIRECTOR

               04.    SIGIT SEMBODO
                      DIRECTOR




                                        07

                     05                                                06



                                                             04




8282
Page 83
                         PERFORMANCE   MANAGEMENT   CORPORATE   MANAGEMENT              CORPORATE              SUSTAINABILITY
                         HIGHLIGHTS    REPORT       PROFILE     DISCUSSION & ANALYSIS   GOVERNANCE             REPORT




                                                                                                                                83
                                                                                                          03
                                                                                                          01




                                                                                                                                2023 ANNUAL REPORT & SUSTAINABILITY REPORT
PT BUSSAN AUTO FINANCE




                                                                                                     02
Page 84
     MANAGEMENT
     REPORT




                       STATEMENT OF THE BOARD OF COMMISSIONERS
                       REGARDING RESPONSIBILITY FOR PT BUSSAN AUTO
                       FINANCE ANNUAL REPORT 2023



          We, the undersigned, hereby declare that all information contained in PT Bussan Auto Finance Annual Report 2023
          have been fully disclosed and being solely responsible upon validity of contents of the Company’s Annual Report.

          This statement is made truthfully.


          Jakarta, March 26th, 2024




                                                     TOSHIYUKI KOJIMA
                                                    PRESIDENT COMMISSIONER

               NAOTAKA TAKESHITA                                                           MASAMI SHIOBARA
                     COMMISSIONER                                                               COMMISSIONER




                  DANI FIRMANSJAH                           PRABOWO                             NURDAYADI
             INDEPENDENT COMMISSIONER             INDEPENDENT COMMISSIONER              INDEPENDENT COMMISSIONER




84
Page 85
PT BUSSAN AUTO FINANCE




                                                                                                                        HIGHLIGHTS
                                                                                                                        PERFORMANCE
             STATEMENT OF THE BOARD OF DIRECTORS
             REGARDING RESPONSIBILITY FOR PT BUSSAN AUTO
             FINANCE ANNUAL REPORT 2023




                                                                                                                        REPORT
                                                                                                                        MANAGEMENT
We, the undersigned, hereby declare that all information contained in PT Bussan Auto Finance Annual Report 2023
have been fully disclosed and being solely responsible upon validity of contents of the Company’s Annual Report.

This statement is made truthfully.


Jakarta, March 26th, 2024




                                                                                                                        PROFILE
                                                                                                                        CORPORATE
                                                 LYNN RAMLI
                                             PRESIDENT DIRECTOR




                                                                                                                        DISCUSSION & ANALYSIS
                                                                                                                        MANAGEMENT
        AKIRA SUGAI                                                                  KOJI KATO
  VICE PRESIDENT DIRECTOR                                                     VICE PRESIDENT DIRECTOR




                                                                                                                        GOVERNANCE
                                                                                                                        CORPORATE




 SIGIT SEMBODO                       A LUNG NG           CHARLES GULTOM                    YUDONO
       DIRECTOR                       DIRECTOR                 DIRECTOR                     DIRECTOR
                                                                                                                        REPORT
                                                                                                                        SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                         85
Page 86
       CORPORATE
       PREOFILE




                            CORPORATE
                            PROFILE
             SELECTION OF BAMBOO IS ESSENTIAL TO MAKE A GOOD ANGKLUNG. THE TEXTURE OF
             BAMBOO MUST BE FIRM AND ROBUST THEREOF WILL NOT EASILY BRITTLE DURING THE
             ANGKLUNG MAKING PROCESS. IN THE COMPANY, WE ALSO ALWAYS OPTIMIZE OUR VARIOUS
             BEST RESOURCES.



8686
Page 87
                         PERFORMANCE   MANAGEMENT   CORPORATE   MANAGEMENT              CORPORATE    SUSTAINABILITY
                         HIGHLIGHTS    REPORT       PROFILE     DISCUSSION & ANALYSIS   GOVERNANCE   REPORT




                                                                                                                      87
                                                                                                                      2023 ANNUAL REPORT & SUSTAINABILITY REPORT
PT BUSSAN AUTO FINANCE
Page 88
     CORPORATE
     PREOFILE




                               BAF AT
                               A GLANCE

           [GRI 2-1]




           Name of Company                              Line of Business                  Date of Establishment
           PT Bussan Auto Finance                       Financing for goods               August 18, 1995
                                                        and/or services


                               Ownership
                               Mitsui & Co., Ltd                                                                        45.0%

                               JA Mitsui Leasing, Ltd                                                                   20.0%

                               Yamaha Motor Co., Ltd                                                                    17.7%

                               PT Sinergi Autoindo Abadi                                                                15.0%

                               PT Yamaha Indonesia Motor Manufacturing                                                   2.3%



                         Authorized Capital                                      Issued and Paid-up Capital
                         Rp353,571,000,000                                       Rp353,571,000,000




           Total Assets                                 Total Liabilities                 Total Employees
           Rp14.1                                       Rp11.4                            3,774
           in Trillion Rupia                            in Trillion Rupiah




           Office Address & Operational Area            Website & Email                   Membership in associations [GRI 2-28]
           BAF Plaza                                    www.baf.id                        1. Indonesian Finance Services
           Jl. Raya Tanjung Barat No. 121,              baf.sekretariat@baf.id               Association (APPI)
           Jagakarsa, Jakarta Selatan 12530,                                              2. Indonesian Corporate Secretary
           Indonesia                                                                         Association (ICSA)
               +62 21 2936 6000                                                           3. Indonesian Pawnshop and
                                                                                             Venture Capital Mediation
                                                                                             Agency (BMPPVI)




88
Page 89
PT BUSSAN AUTO FINANCE




                                                                                                                            HIGHLIGHTS
                                                                                                                            PERFORMANCE
Legal Basis of Establishment                                 Significant Changes
Limited Company Deeds Number 55 dated July 18,               There was no significant change in the Company
1995, drafted before Sugiri Kadarisman, SH., Notary          throughout 2023, which affect the Company’s
in Jakarta and: (i) has obtained legalization from           operational activity. However, the Company




                                                                                                                            REPORT
                                                                                                                            MANAGEMENT
Minister of Justice of the Republic of Indonesia             experienced a change in 2023 following the change
under Decree Number C2-10.337.HT.01.01. TH’95                in the Company’s shareholders composition where
dated August 18, 1955; (ii) has been registered on           Mitsui & Co., Ltd. disposed 20% (twenty percent) or
September 25, 1995 in registry book and therefore            70,714 shares to JA Mitsui Leasing, Ltd.
is archived at Registrar Office of Central Jakarta
State Court Number 1475/1995; and announced in               The closure and opening of office network is presented
Republic of Indonesia State Gazette (“BNRI”) Number          in the operational area section.
138 dated January 2, 1996, Appendix Number 1.




                                                                                                                            PROFILE
                                                                                                                            CORPORATE
                                                          (7%) and PT Yamaha Motor Kencana Indonesia (3%).
                                                          Following the acquisition, the Company had its name
                                                          changed into PT Bussan Auto Finance and sustained its
THE COMPANY’S BUSINESS                                    business focus in financing new Yamahabrand motorcycle.
ACTIVITIES ARE GROWIN AS OF                               In 2004, the entire shares owned by PT Lenggara
                                                          Gunasejahtera were sold to PT Mitsui Indonesia.
DECEMBER 31, 2023, THE COMPANY
HAS BEEN OPERATING IN 245                                 In 2013, the Company increased its capital by issuing




                                                                                                                            DISCUSSION & ANALYSIS
                                                                                                                            MANAGEMENT
                                                          new shares which entirely purchased by PT Ciptadana
LOCATIONS ACROSS INDONESIA,                               Capital, an affiliated Company of Lippo Group and
                                                          Yamaha. In 2018, Mitsui & Co., Ltd. increased its shares
COMPRISING OF 163 BRANCH
                                                          ownership by acquiring the entire shares ownership
OFFICES AND 82 OFFICES OTHER                              of PT Ciptadana Capital, therefore, Mitsui & Co. Ltd.
                                                          shareholders composition increased to 68.3%.
THAN BRANCH OFFICES SUPPORTED
BY 3,774 EMPLOYEES.                                       In 2019, the entire Company’s shares owned by PT
                                                          Mitsui Indonesia of 41,250 shares and part of the
                                                          Company’s shares owned by Mitsui & Co. Ltd of 11,786
                                                          were acquired by PT Sinergi Autoindo Abadi. The shares
                                                          trading & transfer transactions changed the Company’s
                                                          shareholders composition into as follows: Mitsui & Co.
                                                          Ltd. owned 65.0%, Yamaha Motor Co. Ltd. owned 17.7%,
                                                          PT Yamaha Indonesia Motor Manufacturing owned
                                                          2.3%, and PT Sinergi Autoindo Abadi owned 15.0%. The
                                                                                                                            GOVERNANCE
                                                                                                                            CORPORATE



PT Bussan Auto Finance (“the Company”) was initiated      Company has fulfilled the provisions of foreign ownership
in 1995 named as PT Pembiayaan Getraco Indonesia,         in the financing company, either directly or non-directly,
a Company operated in financing business and a Joint      not exceeding 85% of the paid-up capital.
Venture among PT Danamon Sanggrahan, Mitsui & Co.
Ltd., Yamaha Motor Co., Ltd., and PT Yamaha Motor         In 2023, Mitsui & Co. Ltd sold most of BAF shares to JA
Kencana Indonesia in 1997 focusing on financing for new   Mitsui Leasing, Ltd, which is 20% of the shares owned.
Yamaha-brand motorcycle. The Company had its name         This share sale transaction resulted in a change in the
changed into PT Danamon Mits Otomotif Finance and         Company’s share ownership to Mitsui & Co. Ltd. owned
September 24, 1997 is commemorated as anniversary of      45.0%, JA Mitsui Leasing, Ltd owned 20.0%, Yamaha
the Company nowadays.                                     Motor Co. Ltd. owned 17.7%, PT Yamaha Indonesia
                                                          Motor Manufacturing b owned y 2.3%, and PT Sinergi
In 1998, Mitsui & Co., Ltd. acquired the entire shares    Autoindo Abadi owned 15.0%.
of PT Danamon Sanggrahan where Mitsui & Co., Ltd.
becomes majority shareholders with 75% ownership,         As the public needs grow and develop, the Company strives
                                                                                                                            REPORT
                                                                                                                            SUSTAINABILITY




while remaining shares are owned by PT Lenggara           to innovate to become a financing solution for the public
Gunasejahtera (15%), Yamaha Motor Co., Ltd., Japan        needs. The Company currently provides a broad range




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                             89
Page 90
     CORPORATE
     PREOFILE




           selection of financing products such as New Yamaha          payment points through collaboration with third parties
           motorcycle financing, BAF Dana Syariah, a sharia-based      which include banking service networks, retail outlets and
           financing product, car financing, electronics, gadget and   electronic payment platforms.
           furniture financing, used motorcycle financing for multi-
           brands, and agricultural machinery financing. In 2022,      In running its business, the Company is registered at and
           the Company launched two new products for MSMEs             supervised by Financial Service Authority (OJK).
           players, which are BAF PraDana and BAF AdiDana.
           BAF PraDana provides productive loans using Sharia
           principles (Akad Mudharabah) for business capital with           Operational Area
           affordable financing values, while BAF AdiDana is offered
           as a productive financing product with a business capital   As of December 31, 2023, the Company has 245 networks
           facility scheme.                                            across Indonesia. Detail information about address of
                                                                       the office network and Griya are presented in appendix
           The Company’s business activities are growin as of          of this report. In 2023, there were changes in number
           December 31, 2023, the Company has been operating           of office network as the initiative to improve service
           in 245 locations across Indonesia, comprising of 163        effectiveness and efficiency to the Company’s customers.
           branch offices and 82 offices other than branch offices     However, the changes does not cause significant impact
           supported by 3,774 employees. The Company has also          on the Company’s operational activity.
           expanded its service network by adding installment




90
Page 91
PT BUSSAN AUTO FINANCE




                                                                                                                                 HIGHLIGHTS
                                                                                                                                 PERFORMANCE
              MISSION, VISION &
              CORPORATE VALUES




                                                                                                                                 REPORT
                                                                                                                                 MANAGEMENT
                     Mission                                                          Vision
                     To provide the best financial                                    To be a leading and trusted
                     solution to enrich people’s life.                                finance company for the
                                                                                      customers, business partners,
                                                                                      employees, and society.




                                                                                                                                 PROFILE
                                                                                                                                 CORPORATE
          Corporate Values




                                                                                                                                 DISCUSSION & ANALYSIS
                                                                                                                                 MANAGEMENT
VISIONARY                                 RELIABLE                                 ACCESSIBLE
Innovate and Embrace Challenges           Trusted and Agile                        Friendly and Accessible




The Company’s Vision and Mission have been reviewed            (three) key elements in the Company’s vision, including
periodically to be adjusted with the Company’s business        the customers, business partners, and society. The
growth, and approved by the Board of Directors.                customers, business partners and society have become
                                                               the reasons to always deliver excellent services.
In the sustainable finance implementation, the Company
views that the Company’s vision and mission have been          In the context of the Company’s mission to “To provide
relevant with the implementation of sustainable finance        best financial solution to enrich people’s life,” the
referring to fulfillment of the the triple bottom lines such   Company always attempts to drive innovation on
                                                                                                                                 GOVERNANCE
                                                                                                                                 CORPORATE




as people, profit and/or planet.                               our products and/ or services to deliver best financial
                                                               solutions services to the society. The Company’s products
In the context of the Company’s vision to “To be a leading     and/or services are consistently reviewed as the growing
and trusted finance company for the customers, business        demand and/or necessity of the society. The various
partners, employees, and society,” with over 26 years          products that are owned and offered by the Company to
of experience in serving the customers, the Company            the society today are expected to offer range of choices
continuously maintains consistency, reputation, and trust      based on the requirements that will ultimately optimized
of the society as well as the customers for supporting and     to contribute in improving living standard of the society.
bringing the Company as one of prominent financing             The improved welfare is one of the 17 Sustainable
companies. The Company also further emphasizes 3               Development Goals (SDGs).
                                                                                                                                 REPORT
                                                                                                                                 SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                  91
Page 92
     CORPORATE
     PREOFILE




                                       28




                                                                                                     3


                                                                    3                                                  27
                                                        10
                                                                        11       5




                                                                             2

                                                                                          30
                                                                                     25              35     27
                                                                                                                 9
                                                                                                                            3
                                                                                                                                3




             NO.   OPERATIONAL AREA                   BRANCH OFFICE                   KSKC*                   TOTAL
            1             Bali                                2                            1                      3

            2           Bangka                                4                            1                      5

            3        Jabodetabekser                          11                           15                     26

            4            Jambi                                3                                -                  3

            5          West Java                             15                            8                     23

            6         Central Java                           21                            9                     30

            7          East Java                             17                           10                     27

            8         Kalimantan                             17                            6                     23

            9          Lampung                                1                                -                  1

            10       Madiun Kediri                            4                            1                      5

            11         Makassar                              10                            7                     17

            12          Manado                                9                            4                     13




92                                   LAPORAN TAHUNAN DAN LAPORAN KEBERLANJUTAN 2021            /   PT BUSSAN AUTO FINANCE
Page 93
                 PT BUSSAN AUTO FINANCE




                                                                                                              HIGHLIGHTS
                                                                                                              PERFORMANCE
                                                                                                              REPORT
                                                                                                              MANAGEMENT
                               13
     8



         5

                                                                                   6




                                                                                                              PROFILE
                                                                                                              CORPORATE
17




             5




                                                                                                              DISCUSSION & ANALYSIS
                                                                                                              MANAGEMENT
                      NO.              OPERATIONAL AREA                  BRANCH OFFICE   KSKC*   TOTAL
                      13                          NTB                          3            -      3

                      14                          NTT                          4           1       5

                      15                        Padang                         6           2       8

                      16                      Palembang                        7           3      10
                                                                                                              GOVERNANCE
                                                                                                              CORPORATE




                      17                          Palu                         6           2       8

                      18                         Papua                         6            -      6

                      19                      Pontianak                        2           1       3

                      20              North Sumatera & Riau                   15          11      26

                                                 Total                       163          82     245

                 *)    Kantor Selain Kantor Cabang (Non-Branch Office)
                                                                                                              REPORT
                                                                                                              SUSTAINABILITY




                 2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                              93
Page 94
     CORPORATE
     PREOFILE




                        LINE OF
                        BUSINESS


           IN 2023, THE COMPANY CONDUCTED AMENDMENTS TO ITS ARTICLES OF ASSOCIATION
           IN CONNECTION WITH ADJUSTING THE STANDARD CLASSIFICATION OF BUSINESS FIELDS
           (KBLI) WHICH HAD BEEN APPROVED BY SHAREHOLDERS




           In 2023, the Company amended the Articles of                  and/or services, as follows:
           Association with regards to the adjustment of                 I. Investment Financing;
           Indonesian Standard of Industrial Classification (KBLI)       II. Working Capital Financing;
           as approved by the Company’s Shareholders according           III. Multipurpose Financing;
           to Circular Shareholders Resolutions as Substitute of PT      IV. Other financing business activities based on the
           Bussan Auto Fiannce Extraordinary General Meetings                 approval of the Financial Services Authority.
           of Shareholders No. 11 dated March 7, 2023, and has
           obtained approval from Ministry of Law and Human              In additional to the business activity above,
           Rights according to Decree No. AHU-0016024.AH.01.02.          Conventional Finance Company in this group is
           YEAR 2023 dated March 14, 2023 concerning Approval            eligible to carry out Operating Lease and/or Fee-
           to PT Bussan Auto Finance Limited Liability Company           based services to the extent that is not contrary
           Articles of Association Amendment.                            to the provisions of laws and regulations in the
                                                                         Financing Services Sector.
           According to the Article 3 in the Company’s Articles of
           Association, purpose and objectives of the Company is      b. Sharia Business Unit of the Finance Company
           to do business in the Field of Other Fianncial Services       This group including work units from Finance
           Activities, Non-Insurance and Pension Funds, namely as        Company head office that carries out Sharia
           Finance Company, as follows:                                  Financing activities and/or function as the Main
           a. Conventional Finance Company                               Office of the office that carries out Sharia Financing.
           b. Sharia Business Unit of the Finance Company
                                                                         The business activities of the Sharia Business
           In order to achieve the purpose and objectives                Unit are in accordance with the Financial Services
           mentioned above, the Company may conduct business             Authority covering the Sale and Purchase Fianncing,
           activities, as follows:                                       Services Financing, and Investment Financing.

           a. Conventional Financing
              This group includes conventionally held financing
              company businesses covering the financing goods




94
Page 95
PT BUSSAN AUTO FINANCE




                                                                                                    HIGHLIGHTS
                                                                                                    PERFORMANCE
            PRODUCT
            & SERVICES




                                                                                                    REPORT
                                                                                                    MANAGEMENT
                                                                                                    PROFILE
                                                                                                    CORPORATE
                                                                         Multi-products
  New Yamaha Motorcycle                      Used Motorcycle              Financing
        Financing                               Financing                (ELECTRONIC, GADGET
                                                                             & FURNITURE)




                                                                                                    DISCUSSION & ANALYSIS
                                                                                                    MANAGEMENT
   Agricultural Machinery                        BAF                     Car Financing
         Financing                            Dana Syariah




                                                                                                    GOVERNANCE
                                                                                                    CORPORATE




                                BAF                              BAF
                              PraDana                          AdiDana
                                                                                                    REPORT
                                                                                                    SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                     95
Page 96
     CORPORATE
     PREOFILE




                              ORGANIZATION
                              STRUCTURE

                                                                                             Shareholders



                                                                                                    BOC


                                                                     Nomination &
                                  Audit            Risk Monitoring
                                                                     Remuneration
                                Commitee              Commitee
                                                                      Committee


                                                                                                       BOD
             Fraud Control
                                                                                           President Director
                 APU-PPT



                                              Vice President                     Vice President
                                                 Director                           Director

                                                                                                                    Director



                                Associate                                                         Associate
                                 Director                                                          Director

                                                      Executive        Executive
                 (Vacant)                                                                                         Vice President
                                                    Vice President   Vice President




                 Car Business     Human                Corporate        Operation                 Credit Policy       Regional
                                 Resources             Accounting       Strategic &                                   Centers
                                Management                             Development
                 Dana Syariah                           Business                                    Credit
                                                                                                  Operational       Dana Syariah
                  Car Fleet &                          Accounting
                                 Learning &                              Project                                      & UMC
                  Insurance
                                Development                            Management                                     Business
                   Business
                                                                         Office
                                                      Procurement
                                  General              & Account                                                    Dana Syariah
                   Internal                             Payable
                    Audit         Affairs                                                                            Acquisition
                                                                        Corporate
                                                                        Planning &
                                                                         Secretary
                                                        Corporate
                                                         Finance

                                                                          Business
                                                                        Intelligence
                                                                        Analytics &
                                                                           CRM




96
Page 97
PT BUSSAN AUTO FINANCE




                                                                                                                               HIGHLIGHTS
                                                                                                                               PERFORMANCE
                                                                                                                               REPORT
                                                                                                                               MANAGEMENT
                                                                                          Sharia
                                                                                        Supervisory
                                                                                          Board




                                                                                                                               PROFILE
                                                                                                                               CORPORATE
                                                                                                       Corporate Social
                                                                                                        Responsibility

                                                                                                          Business
                                                                                                         Continuity
                                                                                                        Management

                                                                                                        Trustees Work
                                                                                                       Safety & Health
                   Director                                 Director                     Director
                                                                                                         IT Steering




                                                                                                                               DISCUSSION & ANALYSIS
                                                                                                                               MANAGEMENT
                                                                                                        Digitalization
    Associate                                Associate
     Director                                 Director
                                                                                                       Risk Management
                                                                           Senior
                         (Vacant)
                                                                       Vice President




   NMC Business          IT Operation    Tele Collection                  Operation      Sharia Unit
                                                                           Support


                                                 Field                                     Legal &
     Corporate           IT Strategic                                     Operation       Litigation
   Communication         Planning &          Collection 1                  & Asset
     & Branding          INnovation                                      Management

                                                 Field                                      Risk
                                             Collection 3                               Management
     Business &          IT Business                                                    & Compliance
     Operation           Technology
      Support             Solution
                                                 Field
                                                                                                                               GOVERNANCE
                                                                                                                               CORPORATE



                                             Collection 3

                            Digital
                           Business
                                               Recovery

                           MSMEs
                           Business
                                                                                                                               REPORT
                                                                                                                               SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                97
Page 98
     CORPORATE
     PREOFILE




                    BOARD OF COMMISSIONERS PROFILE

           TOSHIYUKI KOJIMA
           PRESIDENT COMMISSIONER


           Japanese Citizen, 49 years. He earned Bachelor’s degree    Mitsui & Co., Ltd. (2015-2018), General Manager
           from Keio University, Japan at School of Education in      Automotive Solution Business Div., Mitsui & Co., Ltd.
           1997.                                                      (2022-current). He was also serving as Vice President
                                                                      Director in the Company (2018-2022).
           He is working at Mitsui & Co. Ltd., Tokyo, Japan since
           1997 and has been appointed to serve in some positions     He was first appointed as President Commissioner in
           in Mitsui Group, such as Executive Director & Chief of     2023 according to the Company’s Annual GMS on May
           Operating Officer, India Pvt. Ltd. (2007-2009), Strategy   8, 2023 as reconfirmed in the Circular Shareholders
           Planning Yamaha Motor India Pvt. Ltd. (2009-2010),         Statements Deed in lieu the Extraordinary General
           Automotive Strategy Department Mitsui & Co., Ltd.          Meetings of Shareholders No. 28 dated September 26,
           (2010-2013), Toyota Motor Corporation, Japan (2013-        2023.
           2015), and General Manager Divisi Third Motor Vehicles




98
Page 99
PT BUSSAN AUTO FINANCE




                                                                                                                           HIGHLIGHTS
                                                                                                                           PERFORMANCE
MASAMI SHIOBARA




                                                                                                                           REPORT
                                                                                                                           MANAGEMENT
COMMISSIONER


Japanese Citizen, 55 years. He earned Bachelor’s degree      Operating Officer Ship & Transportation Division at JA
from Meiji University, Japan majoring Commerce in            Mitsui Leasing, Ltd. (2020-2023) and Deputy General
1992.                                                        Manager, Overseas Management Division, General
                                                             Planning & Strategy Unit (2023 - current).
He is working at JA Mitsui Leasing, LTd. (including Mitsui
Leasing & Development, Ltd., a former company prior to       He was first appointed as President Commissioner in
merger), Tokyo, Japan since 1992 and was appointed           2023 according to the Company’s Annual GMS on May
in several positions with the latest position as Deputy      8, 2023 as reconfirmed in the Circular Shareholders
General Manager. He was assigned in some posts under         Statements Deed in lieu the Extraordinary General




                                                                                                                           PROFILE
                                                                                                                           CORPORATE
JA Mitsui Leasing group, such as General Manager             Meetings of Shareholders No. 28 dated September 26,
at Taipei branch (2012-2015), Executive Director at          2023.
Mitsui Rail Capital, LLC (2015-2020), Deputy Divisional




                                                                                                                           DISCUSSION & ANALYSIS
                                                                                                                           MANAGEMENT
                                                                                                                           GOVERNANCE
                                                                                                                           CORPORATE
                                                                                                                           REPORT
                                                                                                                           SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                            99
Page 100
  CORPORATE
  PREOFILE




        NAOTAKA TAKESHITA
        COMMISSIONER


        Japanese citizen, 56 years old. He earned a Bachelor’s          His first appointment as the Company’s Commissioner
        degree from Nagoya University, Majoring Education              was in 2022 according to Circular Shareholders
        in 1990. He has career experience at Yamaha Motor              Resolutions in lieu Extraordinary General Meeting of
        Co., Ltd., Shizuoka, Japan since 1990 and appointed in         Shareholders No. 09 dated August 18, 2022 as reaffirmed
        several positions with his latest position as Vice President   in the Circular Shareholders Resolutions Statement Deed
        Director of PT Yamaha Indonesia Motor Manufacturing            in lieu Extraordinary General Meeting of Shareholders
        until present. He also served as General Manager Yamaha        No. 28 dated September 26, 2023.
        Motor Co., Ltd. (2012 - 2022) and Director PT Yamaha
        Indonesia Motor Manufacturing (2007 - 2012).




100
Page 101
PT BUSSAN AUTO FINANCE




                                                                                                                          HIGHLIGHTS
                                                                                                                          PERFORMANCE
DANI FIRMANSJAH
INDEPENDENT COMMISSIONER


Indonesian Citizen, 69 years old. He earned Master’s     Baruprana Finance Tbk (2016-2017). He currently also
Degree from Asian Institute of Management Philippines,   serves as President Commissioner at PT Aditama Finance,




                                                                                                                          REPORT
                                                                                                                          MANAGEMENT
Philippines Majoring Management in 1994.                 Independent Commissioner at PT Smart Multifinance
                                                         and Independent Commissioner at PT Buana Finance
He was appointed as Director at PT BFI Finance           Tbk.
Indonesia Tbk (1985-1997), CEO at PT Saseka Gelora
Finance (1997-2006), CEO at PT IFS Capital Indonesia     His first appointment as the Company’s Independent
(2006-2010), Commissioner at PT Indosurya Inti           Commissioner was in 2016, with the latest appointment
Finance (2012), Independent Commissioner at PT           in Annual GMS on April 13, 2022 as reconfirmed under the
Maybank Finance Indonesia (2012-2014), Independent       Circular Shareholders Deed in lieu Extraordinary Geenral
Commissioner at PT Intan Baruprana Finance Tbk           Meetings of Shareholders No. 28 dated September 26,
(2013-2017), and President Commissioner at PT Intan      2023.




                                                                                                                          PROFILE
                                                                                                                          CORPORATE
                                                                                                                          DISCUSSION & ANALYSIS
                                                                                                                          MANAGEMENT
                                                                                                                          GOVERNANCE
                                                                                                                          CORPORATE
                                                                                                                          REPORT
                                                                                                                          SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                          101
Page 102
      CORPORATE
      PREOFILE




            PRABOWO
            INDEPENDENT COMMISSIONER


            Indonesian Citizen, 62 years old. He earned Doctorate    His first appointment as the Company’s Independent
            Degree from Institut Pertanian Bogor in 2012.            Commissioner was in 2017 with the latest appointment
                                                                     in the Company’s Annual GMS on April 13, 2022 as
            He was appointed as Vice President at PT Bank            reconfirmed in the Circular Shareholders Statements
            Internasional Indonesia Tbk (recently known as PT        Deed in lieu the Extraordinary General Meetings of
            Bank Maybank Indonesia Tbk) (2002-2004), Director        Shareholders No. 28 dated September 26, 2023.
            and President Director at PT BNI Multifinance (2004-
            2013), and he is currently also serving as Independent
            Commissioner and Chairperson of Audit Committee at
            PT AEON Credit Service Indonesia.




102
Page 103
PT BUSSAN AUTO FINANCE




                                                                                                                             HIGHLIGHTS
                                                                                                                             PERFORMANCE
NURDAYADI
INDEPENDENT COMMISSIONER


Indonesian citizen, 62 years old. He earned Master’s        Waters Indonesia Tbk (recently known as PT Akasha
degree from University of Birmingham, UK majoring in        Wira International Tbk) (2007-2008), Independent




                                                                                                                             REPORT
                                                                                                                             MANAGEMENT
Finance in 1989, and graduate of Doctoral in Economics      Commissioner, Chairperson of the Audit Committee
with major in Management Accounting from Pancasila          and Director at PT Aeon Credit Service Indonesia (2016-
University, Jakarta, in 2022.                               2018).

Prior to joining the Company, he was appointed in several   His first appointment as the Company’s Independent
positions including Manager & Senior Manager at PT          Commissioner was in 2020 with the latest appointment
Bank Merincorp Jakarta (1994-1997), Manager, General        in the Company’s GMS on April 8, 2023 as reconfirmed
Manager and Director at PT Bussan Auto Finance              in the Circular Shareholders Statements Deed in lieu the
(1997-2005), Independent Commissioner at PT Bussan          Extraordinary General Meetings of Shareholders No. 28
Auto Finance (2008-2012), Independent Commissioner          dated September 26, 2023.
and Chairperson of the Audit Committee at PT Ades




                                                                                                                             PROFILE
                                                                                                                             CORPORATE
                                                                                                                             DISCUSSION & ANALYSIS
                                                                                                                             MANAGEMENT
                                                                                                                             GOVERNANCE
                                                                                                                             CORPORATE
                                                                                                                             REPORT
                                                                                                                             SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                             103
Page 104
  CORPORATE
  PREOFILE




                  BOARD OF DIRECTORS PROFILE

        LYNN RAMLI
        PRESIDENT DIRECTOR


        Indonesian citizen 49 years old. She holds a Bachelor of    Fransisco, United States; Strategic Alliance and Platinum
        Administration from the University of Washington, USA       Product Head, Citibank NA (2002 - 2003), Vice President
        in 1993 and a Master of Business Administration from        Product Management at PT Standard Chartered Bank
        the University of San Fransisco, USA in 1994.               (2003 - 2005), Senior Vice President Analytics Portofolio
                                                                    Management & Personal Loan at PT Bank Danamon
        She has almost 30 years of experience in the financial      Indonesia Tbk (2006 - 2008) President Director at PT
        industry including banking and financing companies.         Adira Quantum Multifinance and Executive Director at
        She joined PT Busaan Auto Finance (BAF) in 2017 as          PT UOB Indonesia (2014 - 2017).
        Vice President Director, and was appointed as President
        Director from 2018 until now. Prior to joining BAF, she     She was reappointed as President Director at the GMS
        held various strategic positions including Consumer         for the Fiscal Year 2021 based on the Deed of Statement
        Banking Product Manager at Citibank NA, Indonesia,          of Company Meeting Resolutions No. 27 dated April 26,
        Program Manager - Credit Card at Providian Financial, San   2022.




104
Page 105
PT BUSSAN AUTO FINANCE




                                                                                                                                HIGHLIGHTS
                                                                                                                                PERFORMANCE
AKIRA SUGAI




                                                                                                                                REPORT
                                                                                                                                MANAGEMENT
VICE PRESIDENT DIRECTOR


Japan Citizen, 52 years. Earned Bachelor’s degree             Centre., Ltd. (2009-2014), Senior Auditing Manager
majoring Economics from Kyoto University, Japan in            Internal Audit Division at Mitsui Co., Ltd. (2014-2016)
1993.                                                         and General Manager IT & Communication Business
                                                              FM Dept., Financial Management & Advisory Div. IV at
He has worked at Mitsui & Co. Ltd., Tokyo, Japan since        Mitsui & Co., Ltd. (2016-2019).
1993 and was appointed in several positions in Mitsui
Group, such as General Manager (GM) for 4 departments         His first appointment as Vice President Director referred
or divisions also in concurrent position as Director London   to EGMS 2019. He is reappointed as Vice President
Process Centre Ltd. Di Mitsui & Co Europe Plc. Business       Director in GMS 2019, with the latest affirmation as




                                                                                                                                PROFILE
                                                                                                                                CORPORATE
Process Control Dept., Johannesburg Branch Accounting         disclosed in Circular GMS Resolutions Statement Decree
Div., Paris Branch Finance & Accounting Dept, and Mitsui      No. 03 dated August 9, 2021.
& Co. Norway A.S – Accounting Dept. at London Process




                                                                                                                                DISCUSSION & ANALYSIS
                                                                                                                                MANAGEMENT
                                                                                                                                GOVERNANCE
                                                                                                                                CORPORATE
                                                                                                                                REPORT
                                                                                                                                SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                105
Page 106
  CORPORATE
  PREOFILE




        KOJI KATO
        VICE PRESIDENT DIRECTOR


        Japan Citizen, 47 years old. He earned Bachelor’s degree   Ltd. (2010-2013), Toyota Motor Corporation, Japan
        majoring political science from Keio University in 1997.   (2013-2015), and General Manager Divisi Third Motor
                                                                   Vehicles Mitsui & Co., Ltd. (2015- 2018).
        He has worked at Mitsui & Co. Ltd., Tokyo, Japan since
        1997 and served in several positions under Mitsui Group,   His first appointment as Vice President Director referred
        among others Executive Director & Chief Operating          to Annual GMS 2018. He is reappointed as Vice President
        Officer Bussan Auto Finance India Pvt. Ltd. (2007-2009),   Director in GMS 2019, with the latest affirmation as
        Strategy Planning Yamaha Motor India Pvt. Ltd. (2009-      disclosed in the Company’s Circular GMS Resolutions
        2010), Automotive Strategy Department Mitsui & Co.,        Statement Decree No. 03 dated August 9, 2021.




106
Page 107
PT BUSSAN AUTO FINANCE




                                                                                                                                HIGHLIGHTS
                                                                                                                                PERFORMANCE
SIGIT SEMBODO
DIRECTOR


Indonesian Citizen, 58 years old. He holds a Bachelor’s      Director in 2004 until now. In addition, he also serves as
Degree from the University of Indonesia Majoring             Secretary to the Commissioner of Indonesian Financing




                                                                                                                                REPORT
                                                                                                                                MANAGEMENT
Accounting in 1990 and Masters Degree from University        Professional Certification Institution.
of Indonesia in Management in 1992.
                                                             He was appointed as Director for the first term since 2004
Prior to joining the Company in 1998, he held the position   with the latest appointment in the Company’s Annual
of Operational GM of PT Primus Financial Services            GMS on April 13, 2022 as reconfirmed in the Meeting
(1995 - 1997). He held several positions at the Company      Resolutions Statement Deeds No. 01 dated August 1,
including Marketing Senior Manager (1998 - 2000) and         2023.
Marketing GM (2000 - 2003) before being appointed as




                                                                                                                                PROFILE
                                                                                                                                CORPORATE
                                                                                                                                DISCUSSION & ANALYSIS
                                                                                                                                MANAGEMENT
                                                                                                                                GOVERNANCE
                                                                                                                                CORPORATE
                                                                                                                                REPORT
                                                                                                                                SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                107
Page 108
  CORPORATE
  PREOFILE




        A LUNG NG
        DIRECTOR


        Indonesian Citizen, 50 years. He earned Bachelor’s        & Operations (1997 - 2008) before being appointed as
        degree from Tarumanagara University in Management         Director of the Company in 2008.
        in 1995. He has more than 20 years of experience in the
        financing industry in Indonesia.                          He was appointed as Director for the first time in 2007
                                                                  and was reappointed in the Company’s Annual GMS on
        Prior to joining the Company in 1997, He worked as        April 13, 2022 as reconfirmed in the Meeting Resolutions
        Branch Manager of PT Subentra Finance (1994 - 1997).      Deed No. 01 dated August 1, 2023.
        He was also assigned as General Manager of Marketing




108
Page 109
PT BUSSAN AUTO FINANCE




                                                                                                                             HIGHLIGHTS
                                                                                                                             PERFORMANCE
CHARLES GULTOM
DIRECTOR


Indonesian citizen, 46 years old. He earned Bachelor’s     various Life Insurance companies (2015-2017). He joined
degree majoring Economics from Universitas Trisakti in     the Company as Credit Policy Division Head (September




                                                                                                                             REPORT
                                                                                                                             MANAGEMENT
1997.                                                      2017 – May 2018), and as Deputy Director (June
                                                           2018-Desember 2019), and Associate Director (January
Prior to joining the Company, he was assigned in various   – March 2020).
positions among others, Bankcard Risk Analytics & Credit
Policy Manager at Citibank NA (2003- 2006), AVP Credit     His first appointment as Director referred to GMS 2020
Initiation & Maintenance at PT ANZ Panin Bank (2006-       with the latest affirmation as disclosed in the Company’s
2007), Risk MIS Analytics & Scoring Senior Division Head   Circular GMS Resolutions Statement Decree No. 03 dated
at PT Adira Finance (2007-2012), Collection Strategic      August 9, 2021.
Senior Vice President at PT Bank Danamon (2012-2015),




                                                                                                                             PROFILE
                                                                                                                             CORPORATE
                                                                                                                             DISCUSSION & ANALYSIS
                                                                                                                             MANAGEMENT
                                                                                                                             GOVERNANCE
                                                                                                                             CORPORATE
                                                                                                                             REPORT
                                                                                                                             SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                             109
Page 110
      CORPORATE
      PREOFILE




            YUDONO
            DIRECTOR


            Indonesian citizen, 42 years. He earned his Bachelor’s    Digital Bank Country Head at UOB (2017-2018), EVP
            degree majoring Computer Science from Bina Nusantara      Digital Banking Group Head at PT Bank Sinarmas Tbk
            University in 1999.                                       (2018-2019). He joined with the Company as Associate
                                                                      Director (2019-2021).
            Prior to joining the Company, he served in several
            positions such as AVP Head of IT Planning, Architecture   His first appointment as Vice President Director referred
            & Quality Management at BTPN (2009-2012), VP Head         to Annual GMS 2021, with the latest affirmation as
            of Technology Architecture & Solution Design (2012),      disclosed in the Company’s Circular GMS Resolutions
            Senior Business Development at Microsoft (2012-2017),     Statement Decree No. 03 dated August 9, 2021.




110
Page 111
PT BUSSAN AUTO FINANCE




                                                                                                                        HIGHLIGHTS
                                                                                                                        PERFORMANCE
          ASSOCIATE DIRECTORS PROFILE

IVAN SEBASTIAN                                             JIMMY ISKANDAR




                                                                                                                        REPORT
                                                                                                                        MANAGEMENT
ASSOCIATE DIRECTOR                                         ASSOCIATE DIRECTOR


Indonesian citizen, 43 years. He earned Bachelor’s         Indonesian citizen, 50 years. He earned Bachelor’s
degree majoring Computerized Accounting from               degree majoring Accounting from Trisakti University,
Bina Nusantara University (Faculty of Computer             in 1997.
Engineering) in 2003.
                                                           Prior to joining the Company, he worked at PT Bank
Prior to joining the Company, he was appointed in          Danamon Indonesia Tbk as Human Resources
various positions at Nusantara Sakti Group with the        Strategy, Planning and Analytics Head (2008-2015),
latest position as Credit Marketing Manager Head           Performance and Reward Management Department
Office (June 2009 - July 2010). He also served as Credit   Head at PT Bank Mandiri Persero Tbk (2015-2016),




                                                                                                                        PROFILE
                                                                                                                        CORPORATE
and Portfolio Analyst Division Head, and Marketing         Human Capital Operations & Services Division Head
Affiliate Division Head at PT Central Sentosa Finance      at Sinar Mas Land (2016-2018), and most recently as
(July 2010 - November 2014), General Manager at            HR Chief Operating Officer at PT Bank DBS Indonesia.
PT Commerce Finance (November 2014 - September             Since March 2020 until now, he is appointed as
2015), Director at PT Commerce Finance, President          Associate Director supervising Human Resources
Director at PT Commerce Finance (February 2017             Management, Learning & Development, and General
- 2019). He joined the Company in July 2019 and            Affairs.
recently serves as Associate Director supervising NMC
Business, Corporate Communication & Branding, and
Business & Operation Support.




                                                                                                                        DISCUSSION & ANALYSIS
                                                                                                                        MANAGEMENT
                                                                                                                        GOVERNANCE
                                                                                                                        CORPORATE
                                                                                                                        REPORT
                                                                                                                        SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                        111
Page 112
      CORPORATE
      PREOFILE




            HENDRI HERMANSYAH                                           ELLIA BACHTIAR
            ASSOCIATE DIRECTOR                                          ASSOCIATE DIRECTOR


                                                                        Indonesian Citizen, 44 years. She earned Master’s
            Indonesia Citizen, 43 years. Earned Bachelor’s degree       degree of Business Marketing from Monash University
            from Trisakti University majoring Civil Engineering in      in 2003.
            2003.
                                                                        Prior to joining with the Company, she was appointed
            He holds experience in financing sector, among others,      in some strategic positions in banking and financial
            worked as Fleet Account Executive at PT Toyota Astra        services industry, among others as Risk Management
            Financial Services (2008 - 2010), Dealer Relationship       Head Gojek Financial Services at PT GOTO Indonesia
            Management Department Head at PT Mandiri Tunas              Tbk. (2019-2022), Cards and Loans Risk Head Citibank
            Finance (2010 - 2014) and National Sales Strategic          Indonesia (2017 – 2019), Cards and Payment Product
            Deputy Division Head at PT Nissan Financial Services        and Portfolio Head PT Bank UOB (2015 – 2017),
            Indonesia (2015 - 2017). He joined the Company in           Credit Cards Product and Portfolio Head PT Bank OCBC
            July Juli 2019 and recently serving as Associate Director   NISP Tbk. (2011 – 2014), Portfolio Management
            supervising Tele Collection, Field Collection 1,2, and 3    HSBC Indonesia (2007 – 2011), Consumer Lending
            Division.                                                   Portfolio Analytics HSBC Singapore (2005 – 2007),
                                                                        Retail Banking Portfolio Analyst ANZ Australia (2003
                                                                        – 2005). She joined with the Company since February
                                                                        2023 and currently serves as Associate Director
                                                                        supervising Credit.




112
Page 113
PT BUSSAN AUTO FINANCE




                                                             HIGHLIGHTS
                                                             PERFORMANCE
  01.    IVAN SEBASTIAN
         ASSOCIATE DIRECTOR

  02.    JIMMY ISKANDAR
         ASSOCIATE DIRECTOR

  03.    HENDRI HERMANSYAH




                                                             REPORT
                                                             MANAGEMENT
         ASSOCIATE DIRECTOR

  04.    ELLIA BACHTIAR
         ASSOCIATE DIRECTOR




                                                             PROFILE
                                                             CORPORATE
                                                             DISCUSSION & ANALYSIS
                                                             MANAGEMENT
                                                             GOVERNANCE
                                                             CORPORATE




                                             04
                                    02            03
                 01
                                                             REPORT
                                                             SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT             113
Page 114
      CORPORATE
      PREOFILE




                         SHAREHOLDERS
                         COMPOSITION

            On December 31, 2023, composition of the Company’s            as amended into Article 9 of POJK No. 47/POJK.05/2020
            shareholders comprises of Mitsui & Co., Ltd. of 45.0%, JA     concerning Business and Institutional Permit of
            Mitsui Leasing, Ltd. of 20.0%, Yamaha Motor Co., Ltd. of      Financing Company and Sharia Financing Company,
            17.7%, PT Yamaha Indonesia Motor Manufacturing of             where foreign ownership in the Company, either directly
            2.3% and PT Sinergi Autoindo Abadi of 15.0%.                  or indirectly, shall not exceed 85% (eighty five percent)
                                                                          of the Company’s paid-up capital.
            The Company has complied to provisions in Article 10
            of OJK Regulation No. 28/POJK.05/2014 concerning              The Company’s shareholders composition table is
            Business and Institutional Permit of Financing Company        presented below:



                                                                        PAR VALUE OF RP1,000,000 PER SHARE
                      DESCRIPTION
                                                         TOTAL SHARES                      TOTAL (RP)                    %

             Authorized Capital                               353,571                   353,571,000,000                   -

             Issued and Fully-Paid Up Capital

                  Mitsui & Co., Ltd.                          159,107                   159,107,000,000                  45.0

                  JA Mitsui Leasing, Ltd.                      70,714                     70,714,000,000                 20.0

                  Yamaha Motor Co., Ltd.                       62,464                     62,464,000,000                 17.7

                  PT Sinergi Autoindo Abadi                    53,036                     53,036,000,000                 15.0

                  PT Yamaha Indonesia Motor                     8,250                      8,250,000,000
                  Manufacturing                                                                                           2.3

             Total Issued and Fully-Paid Up                   353,571                   353,571,000,000                100.0
             Capital




114
Page 115
PT BUSSAN AUTO FINANCE




                                                                                                                                                      HIGHLIGHTS
                                                                                                                                                      PERFORMANCE
As of December 31, 2023, the shareholders composition chart is illustrated below:



     45.0%                       20.0%                         17.7%                        15.0%                         2.3%
                                                                                                                        PT Yamaha
        Mitsui                    JA Mitsui                  Yamaha Motor                   PT Sinergi




                                                                                                                                                      REPORT
                                                                                                                                                      MANAGEMENT
                                                                                                                      Indonesia Motor
      & Co., Ltd.                Leasing, Ltd.                  Co., Ltd.                 Autoindo Abadi
                                                                                                                       Manufacturing




                                                             THE COMPANY



*)   The Company has complied with the provisions in Article 10 of OJK Regulation No. 28/POJK.05/2014 concerning Business Permit and
     Institutions of Financial Company, as amended into Article 9 POJK No. 47/POJK.05/2020 concerning Business Permit and Institutionalism of
     Sharia Financing and Financing Companies, where foreign ownership of the company is either direct or indirect
     shall not exceeding 85% (eighty five percent) of the company’s paid-up capital.




                                                                                                                                                      PROFILE
                                                                                                                                                      CORPORATE
                                                                             located at Chiyoda-ku, Tokyo at 2-1, Otemachi
      Shares Ownership by Board of                                           1-chome, Chiyoda-ku, Japan, as explained in Articles
      Directors and Board of Commissioners                                   of Incorporation of Mitsui & Co., Ltd dated October
                                                                             2, 2023.
As end of 2023, the Company does not have any share
ownership program either by the Board of Commissioners,                 b. Line of Business
the Board of Directors, or share ownership by                              Line of business of Mitsui & Co., Ltd. are as follows:
employees. Therefore, there are no members of the                          1. Foreign trading, purchases and sales, wholesales,




                                                                                                                                                      DISCUSSION & ANALYSIS
                                                                                                                                                      MANAGEMENT
Board of Directors or Board of Commissioners owns the                          agency and brokerage business relating to the
Company’s shares, thereby information regarding share                          following commodities:
ownership, including information on the percentage                             a. Ferrous and non-ferrous metals and their raw
of indirect ownership of shares by members of the                                  materials, manufactured goods, and minerals;
Board of Directors and Board of Commissioners at the                           b. Coal, petroleum, natural gas and other fuels
beginning and end of the fiscal year, and information                              and their by-products;
regarding Shareholders registered in the shareholder                           c. All kinds of machines, appliances (including
list for the benefit of indirect ownership of members of                           measuring instruments and medical
the Board of Directors and Board of Commissioners are                              apparatus) and equipment including
unavailable to be disclosed in this annual report.                                 manufacturing equipment, communications
                                                                                   equipment and antipollution equipment,
The Company also does not have any public shares                                   rolling stock and vehicles, ships and boats,
ownership program regarding the Public Offering                                    aerospace equipment and aircraft, and parts
mechanism in connection with the Company’s status                                  for the foregoing;
as not listed company for the shares/equity at the                             d. Any kinds of chemical products, salt,
Indonesia Stock Exchange. Therefore, information                                   fertilizers, high-pressure gas, explosives,
                                                                                                                                                      GOVERNANCE
                                                                                                                                                      CORPORATE



about the group of public shareholders, such as the                                pharmaceuticals (including medicines, non-
group of shareholders with less than 5% (five percent)                             medicinal drugs, medicine for veterinary use,
ownership of the Company’s shares are unavailable to                               narcotics, poisons and stimulants), radio
be disclosed in this annual report. The share ownership                            isotopes, cosmetics, and raw materials for
percentage by the shareholders has been disclosed in                               the foregoing;
the shareholder information.                                                   e. Cereals, sugar, oils and fats, feeds and their
                                                                                   raw materials; livestock, agricultural, dairy
                                                                                   and marine products, processed foods,
      Majority and Controlling Shareholders                                        alcoholic beverages and other foodstuffs
                                                                                   and beverages;
a. Establishment                                                               f. All kinds of textile products and their raw
   As of December 31, 2023, the Company’s controlling                              materials;
   shareholders is Mitsui & Co., Ltd., Mitsui & Co., Ltd., a                   g. All kinds of fur products and raw fur;
   legal entity established on July 25, 1947 (registered                       h. Lumber, cement, other building materials
                                                                                                                                                      REPORT
                                                                                                                                                      SUSTAINABILITY




   in Japan with the name of Mitsui Bussan Kabushiki                               and housing-related equipment;
   Kaisha) according to prevailing Law in Japan and                            i. Rubber, pulp, paper and their manufactured




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                                      115
Page 116
      CORPORATE
      PREOFILE




                           goods; tobacco, cigars, cigarettes and sundry             of various events.
                           goods;                                                18. Temporary personnel placement, employment
                      j. Industrial water and drinking water.                        agency, and personnel education, guidance, and
                  2. Exploration,      development,       manufacturing,             training to develop appropriate job skills and
                      processing, scrapping, and recycling business                  qualifications.
                      relating to the above-mentioned items.                     19. Maintenance and management of real estate.
                  3. Acquisition, planning, preservation, utilization            20. Investment, commodities investments sales and
                      and disposition of copyright, patents and other                advisory services, securities investment advisory
                      intellectual property rights, know-how, systems                services, trustee services, sale of beneficial
                      technology, and other software, including acting               interests in trusts, investment trust management
                      as an intermediary in such transactions.                       services and asset management services for
                  4. Information        processing        and       supply,          investment corporations.
                      telecommunications, broadcasting, advertising,             21. Generation, supply, and sale and purchase of
                      publishing, printing and translation businesses,               electricity.
                      and the production and sale of audio and visual            22. Administrative agency services for management,
                      copyright products.                                            labor, and accounting work.
                  5. Forestry, sawmilling and lumber processing                  23. Buying, selling, and derivative transactions for
                      businesses.                                                    greenhouse gas emission rights and related
                  6. Chattel leasing business.                                       intermediary services.
                  7. Secondhand goods business.                                  24. Agency and intermediary services for credit card
                  8. Transportation and transportation agency, land                  applications.
                      transportation, marine transportation business,            25. Consultancy business relating to the foregoing
                      port transportation, freight forwarding, customs               items.
                      brokerage, shipping agency and warehousing                 26. Other lines of business relating to any of the
                      businesses.                                                    foregoing items.
                  9. Business related to non-life insurance, insurance
                      under the Automobile Liability Law, life insurance      c. Capital Structure and shareholders composition
                      and overseas non-life reinsurance business.                The capital structure and shareholders composition
                  10. Construction sub-contracting, building design              of Mitsui & Co., Ltd. as of September 30, 2023 is as
                      and supervision and management of various                  follows:
                      construction works.                                        - Authorized Capital: 2,500,000,000 (two billion
                  11. Acquisition, disposition, leasing, other utilization,          five hundred million) shares.
                      and development of real estate and acting as an            - Subscribed Capital: 1,522,687,968 (one billion
                      intermediary in such transactions.                             five hundred twenty two million six hundred
                  12. Supply and development of hot springs.                         eight seven thousand nine hundred sixty eight)
                  13. Surveying and research relating to land, sea, and              shares.
                      sky.                                                       - Paid-up Capital: 1,522,687,968 (one billion five
                  14. Investing in, purchasing, selling, and brokering               hundred twenty two million six hundred eight
                      negotiable instruments, etc.                                   seven thousand nine hundred sixty eight) shares
                  15. Lending money, guaranteeing and assuming                       or valued ¥343,062,380,506 (three hundred
                      debts, sale and purchase of various receivables,               forty-three billion sixty-two million three
                      foreign exchange transactions and conducting                   hundred eighty thousand five hundred and six
                      any other financing business.                                  Yen).
                  16. Operation and management of medical facilities,
                      day-care facilities, sports facilities, restaurants,
                      and hotel and travel businesses.
                  17. Planning, administration, and implementation




116
Page 117
PT BUSSAN AUTO FINANCE




                                                                                                                          HIGHLIGHTS
                                                                                                                          PERFORMANCE
The composition of Mitsui & Co., Ltd. shareholders as of September 30, 2023 is as follows:


TO TA L S H A RE S (‘0 0 0 SHAR E S)

 NO.                             SHAREHOLDERS NAME                            TOTAL SHARES                   %




                                                                                                                          REPORT
                                                                                                                          MANAGEMENT
 1          The Master Trust Bank of Japan, Ltd (Trust account)                  239,701                   15.83%

 2          Euroclear Bank S.A./N.V.                                             131,356                   8.67%

 3          Custody Bank of Japan, Ltd. (Trust account)                            87,805                  5.80%

 4          Nippon Life Insurance Company                                          35,070                  2.31%

 5          JP Morgan Chase Bank 385632                                            27,243                  1.79%

 6          States Street Bank West Client – Treaty 505234                         24,026                  1.58%




                                                                                                                          PROFILE
                                                                                                                          CORPORATE
 7          Barclays Securities Japan Limited                                      20,000                  1.32%




d. Management and supervisory board composition
   Based on website of Mitsui & Co., Ltd. The members of the Board of Directors and Supervisory Board of Mitsui &
   Co., Ltd, as of June 21, 2023, are as follows:



                  NAME                                                POSITION




                                                                                                                          DISCUSSION & ANALYSIS
                                                                                                                          MANAGEMENT
 DIRECTORS

 Tatsuo Yasunaga                          Representative Director, Chair of the Board of Directors

 Kenichi Hori                             Representative Director, President and Chief Executive Officer

 Motoaki Uno                              Representative Director, Executive Vice President

 Yoshiaki Takemasu                        Representative Director, Executive Vice President

 Kazumasa Nakai                           Representative Director, Senior Executive Managing Officer

 Tetsuya Shigeta                          Representative Director, Senior Executive Managing Officer

 Makoto Sato                              Representative Director, Senior Executive Managing Officer
                                                                                                                          GOVERNANCE
                                                                                                                          CORPORATE




 Toru Matsui                              Representative Director, Senior Executive Managing Officer

 Tetsuya Daikoku                          Representative Director, Senior Executive Managing Officer

 Samuel Walsh                             Director

 Takeshi Uchiyamada                       Director

 Masako Egawa                             Director

 Fujiyo Ishiguro                          Director

 Sarah L. Casanova                        Director
                                                                                                                          REPORT
                                                                                                                          SUSTAINABILITY




 Jessica Tan Soon Neo                     Director




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                          117
Page 118
      CORPORATE
      PREOFILE




                           NAME                                                       POSITION

             AUDIT & SUPERVISORY BOARD MEMBERS

             Kimiro Shiotani                         Commissioner

             Hirotatsu Fujiwara                      Commissioner

             Kimitaka Mori                           Commissioner

             Yuko Tamai                              Commissioner

             Makato Hayashi                          Commissioner




            The Company is under Mitsui & Co., Ltd. business group.      of the main business units. Service area coverage Mitsui
            which has 513 subsidiaries and associated entities divided   & Co., Ltd. covering 62 countries with 126 branch offices,
            into 16 main business units, as of March 31, 2023. The       as of October 1, 2023 (Source: Mitsui & Co.,Ltd. Company
            Company is included in MOBILITY Business Unit I, one         Brochure 2023).




                          SHARES LISTING
                          CHRONOLOGY

            As of December 31, 2023, the Company has not executed        listed, including corporate action that caused changes
            initial public offering at Indonesia Stock Exchange          in the stocks, such as stock split, reverse stock, shares
            (IDX) or other stock exchanges, therefore, the Company       dividend, bonus shares, changes in shares par value,
            does not disclose the information, such as: total shares     converted securities issuance, as well as additional or
            outstanding, market capitalization based on price at         deduction of capital, or other information as disclosed
            the stock exchange where the stocks are listed, the          in Financial Service Authority Circular Letter Number 16/
            highest, lowest, and closing stock prices based on price     SEOJK.04/2021 concerning Annual Report Format and
            at the stock exchange where the stocks are listed, and       Contents for Issuers or Public Companies.
            trading volume at stock exchange where the stocks are




118
Page 119
PT BUSSAN AUTO FINANCE




                                                                                                              HIGHLIGHTS
                                                                                                              PERFORMANCE
            OTHER SECURITIES
            LISTING CHRONOLOGY




                                                                                                              REPORT
                                                                                                              MANAGEMENT
                                                                                                              PROFILE
                                                                                                              CORPORATE
                                                                                                              DISCUSSION & ANALYSIS
                                                                                                              MANAGEMENT
                                             To continuously support financing along with the
                                             business growth, the Company has issued debt
                                             securities in form of bonds and sukuk. The issuance of
ISSUING DEBT SECURITIES ON THE               debt securities at capital market becomes one of the
CAPITAL MARKET IS ONE OF THE                 Company’s funding strategies to support the Company’s
                                                                                                              GOVERNANCE
                                                                                                              CORPORATE



                                             business growth and development. Since 2017, the
COMPANY’S FUNDING STRATEGIES                 Company has consistently issued debt securities in
TO SUPPORT THE GROWTH AND                    form of bonds and sukuk and has always fulfilled the
                                             obligations to repay the principal and interest on time.
DEVELOPMENT OF THE COMPANY’S
                                             Some of the debt securities have been past-due and
BUSINESS.
                                             repaid thereby no no longer listed at Indonesia Stock
                                             Exchange (BEI), among others:
                                             1. Bonds I of 2017
                                             2. Bonds II of 2018
                                             3. Bonds III of 2019
                                             4. Shelf-Registered Bonds I Phase I 2020
                                             5. Shelf-Registered Sukuk Mudharabah I Phase I 2020
                                             6. Shelf-Registered Sukuk Mudharabah I Phase II Year
                                                                                                              REPORT
                                                                                                              SUSTAINABILITY




                                                2020




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                              119
Page 120
      CORPORATE
      PREOFILE




            7. Shelf-Registered Bonds I Phase II Series A Year 2021          Phase I Year 2020 is no longer listed and traded
            8. Shelf-Registered Bonds I Phase III Series A Year 2021         at Indonesian Stock Exchange as disclosed in IDX
            9. Shelf-Registered Bonds II Phase I Series A Year 2022          announcement No. Peng-JTO-00043/BEI.PP1/08-
            10. Shelf-Registered Bonds II Phase II Series A Year 2022        2023.

            In 2023, the Company issued Shelf-Registered Offering,           The Bonds interest and yield from Sukuk
            which are Shelf-Registered Bonds II Bussan Auto Finance          Mudharabah were paid every quarterly, where
            Phase III Year 2023 and Shelf-Registered Bonds II                the bond interest and first yield of Sukuk
            Bussan Auto Finance Phase IV Year 2023.                          Mudharabah were paid on November 4, 2020,
                                                                             while the bond interest and the last yield of the
            The chronology of the Company’s bond securities listing          Sukuk Mudharabah together with the repayment
            that have not yet matured and/or past-due in 2023 is as          of the bonds and Sukuk Mudharabah proceeds
            follows:                                                         were paid on August 4, 2023.

            1. Shelf-Registered Bonds I and Shelf-Registered                 The Public Offering of Shelf-Registered Bonds I
               Sukuk Mudharabah I Issuance                                   Phase I Year 2020 and Shelf-Registered Sukuk
               a. Shelf-Registered I Phase I Year 2020 and                   Mudharabah I Phase I Year 2020 above was
                  Shelf-Registered Sukuk Mudharabah I Phase I                assisted by capital market supporting institutions
                  Year 2020                                                  and professions, as follows:
                  On August 5 2020, the Company issued Shelf-                • Trustee: PT Bank Mandiri (Persero) Tbk.
                  Registered I Bussan Auto Finance Phase I Year              • Legal Consultant: Thamrin & Rachman
                  2020 valued Rp100,000,000,000 (One Hundred                 • Public Accountant: Imelda & Partners (a
                  Billion Rupiah) at Indonesia Stock Exchange.                   member of Deloitte Touche Tohmatsu Ltd.)
                  The bonds obtained AAA(idn) rating from PT                 • Notary: Fathiah Helmi, S.H.
                  Fitch Ratings Indonesia. These bonds were issued           • Securities Rating: PT Fitch Ratings Indonesia
                  scripless and were offered at 100% (one hundred
                  percent) with a fixed interest rate of 8.25%            b. Shelf-Registered Sukuk Mudharabah I Phase
                  (eight-point two five percent) per annum, and 3            II Year 2020 Series B
                  (three) years term from the Issuance date.                 On October 23, 2020, The Company issued Shelf-
                                                                             Registered Sukuk Mudharabah I Bussan Auto
                   In 2023, the Company had paid the bonds                   Finance Phase II Year 2020 Series B amounted
                   principal and the final interest payment on the           Rp112,000,000,000 (one hundred and twelve
                   Shelf-Registered Bonds I Phase I Year 2020 with           billion Rupiah). The bond obtained AAA(idn)
                   the amount of the Bonds principal of Rp100 billion        rating from PT Fitch Ratings Indonesia with the
                   and the interest of Rp2.06 billion for the principal      yield from the Sukuk Mudharabah which was
                   repayment and interest payments. Therefore,               calculated based on the multiplication of the
                   since August 4, 2023, Bussan Auto Finance Shelf-          Sukuk Mudharabah holders of 14.80% (fourteen
                   Registered Bonds I Phase I Year 2020 is no longer         point eight zero percent) of the Income Shared
                   listed and traded at Indonesian Stock Exchange            with an indication of an equivalent profit sharing
                   as disclosed in IDX announcement No. Peng-                7.25% (seven point two five percent) per annum,
                   JTO-00043/BEI.PP1/08-2023.                                and 3 (three) years term from the issuance date.
                                                                             The Sukuk Mudharabah yield is paid quarterly,
                   The Company also issued Shelf-Registered Sukuk            where the first Sukuk Mudharabah profit sharing
                   Mudharabah I Bussan Auto Finance Phase I Year             income was paid on January 20, 2021, while the
                   2020 of Rp15,000,000,000 (fifteen billion rupiah).        last Sukuk Mudharabah yield as well as the Sukuk
                   This Mudharabah Sukuk was issued scripless and            Mudharabah proceeds was paid on October 20,
                   were offered at a value of 100% (one hundred              2023.
                   percent) with yield from the Mudharabah Sukuk
                   which was calculated based on the multiplication          In 2023, the Company had repaid the principal
                   of the Mudharabah Sukuk Holder Nisbah of                  of the sukuk and the final interest payment on
                   16.84% (sixteen-point eight four percent) of the          the Shelf-Registered Mudharabah I Phase II
                   yield with an indication of the yield equivalent to       Year 2020 series B with the principal amount of
                   8.25% (eight-point two five percent) per annum            the Sukuk amounted Rp112 billion and the total
                   with 3 (three) years term from the issuance date.         yield of Rp2.03 billion for the principal repayment
                                                                             and yield payment. Thus, as of October 23,
                   In 2023, the Company has fully paid the sukuk             2023, Bussan Auto Finance’s Shelf-Registered
                   principal and the final interest payment on the           Mudharabah Sukuk I Phase II Year 2020 Series
                   Shelf-Registered Mudharabah Sukuk I Phase I               B is longer listed and traded at Indonesian Stock
                   Year 2020 with the principal amount of the Sukuk          Exchange as stated in BEI announcement No.
                   of Rp15 billion and total yield of Rp309 million          Peng-JTO-00067/BEI.PP1/10-2023.
                   for the principal repayment and yield payment.
                   Threfore, as of August 4, 2023, Bussan Auto               Public Offering of Shelf-Registered Sukuk
                   Finance Shelf-Registered Sukuk Mudharabah I               Mudharabah I Phase II Year 2020 Series B




120
Page 121
PT BUSSAN AUTO FINANCE




                                                                                                                          HIGHLIGHTS
                                                                                                                          PERFORMANCE
       explained above is assisted by capital market           •   Legal Consultant: Thamrin & Partners Law Firm
       supporting institutions and professions, as             •   Notary: Fathiah Helmi, S.H.
       follows:                                                •   Securities Rating: PT Fitch Ratings Indonesia
       • Trustee: PT Bank Mandiri (Persero) Tbk.
       • Legal Consultant: Thamrin & Rachman                e. Shelf-Registered Bonds I Phase IV Year 2021
       • Notary: Fathiah Helmi, S.H.                           In December 2021, the Company issued and
       • Securities Rating: PT Fitch Ratings Indonesia         offered Shelf-Registered Bonds I Bussan Auto




                                                                                                                          REPORT
                                                                                                                          MANAGEMENT
                                                               Finance Phase IV Year 2021 with a principal
   c. Shelf-Registered Bonds I Phase II Year 2021              amounted Rp500,000,000,000 (five hundred
      Series B                                                 billion Rupiah). The bonds received an AAA(idn)
      On April 28, 2021, the Company issued Shelf-             rating from PT Fitch Ratings Indonesia.
      Registered I I Bussan Auto Finance Phase II Year
      2021 Series B with bonds principal amounted              These bonds were issued scripless with a value
      Rp725,000,000,000 (seven hundred and twenty-             of 100% (one hundred percent) of the Bond
      five billion Rupiah). This bond obtained an              Principal amounted Rp500,000,000,000 (five
      AAA(idn) rating from PT Fitch Ratings Indonesia.         hundred billion Rupiah) with a fixed interest
      These bonds were issued without scripless and            rate of 5.75% (five point seven five percent) per
      were offered at 100% (one hundred percent)               annum 3 (three) years terms from the issuance
      with a fixed interest rate of 6.90% (six point nine      date. The Bonds interest is paid quarterly, where




                                                                                                                          PROFILE
                                                                                                                          CORPORATE
      zero percent) per annum with 3 (three) years term        the first bonds interest will be paid on March 15,
      from the Issuance Date.                                  2022, while the last bond interest together with
                                                               the bond repayment will be paid on December
       The bonds interest was paid quarterly, where the        15, 2024.
       first bond interest was paid on July 27, 2021,
       while the last bond interest altogether with the        The Public Offering of Shelf-Registereds Bonds I
       bond repayment will be paid on April 27, 2024.          Phase II Year 2021 above is assisted by capital
                                                               market supporting institutions and professions,
       The Public Offering of Shelf-Registered Bonds I         as follows:
       Phase II Year 2021 Series B above was assisted          • Trustee: PT Bank Mandiri (Persero) Tbk.
       by capital market supporting institutions and           • Legal Consultant: Thamrin & Partners Law Firm




                                                                                                                          DISCUSSION & ANALYSIS
                                                                                                                          MANAGEMENT
       professions, as follows:                                • Notary: Fathiah Helmi, S.H.
       • Trustee: PT Bank Mandiri (Persero) Tbk.               • Securities Rating: PT Fitch Ratings Indonesia
       • Legal Consultant: Thamrin & Rachman
       • Notary: Fathiah Helmi, S.H.                        f. Shelf-Registered Bonds I Phase V Year 2022
       • Securities Rating: PT Fitch Ratings Indonesia         In March 2022, the Company issued and offered
                                                               Shelf-Registered Bonds I Bussan Auto Finance
   d. Shelf-Registered Bonds I Phase III Year 2021             Phase V Year 2022 with the principal amounted
      Series B                                                 Rp775,000,000,000 (seven hundred and
      In September 2021, the Company issued and                seventy-five billion Rupiah). This bond obtained
      offered Shelf-Registered Bonds I Bussan Auto             an AAA(idn) rating from PT Fitch Ratings
      Finance Phase III 2021 Series B with a principal         Indonesia.
      amount of Rp625,000,000,000 (six hundred
      twenty-five billion Rupiah). This bond obtained          These bonds were issued scripless with a value
      AAA(idn) rating from PT Fitch Ratings Indonesia.         of 100% (one hundred percent) of the Bonds
      These bonds were issued scripless except for             Principal amounted Rp775,000,000,000 (seven
      Jumbo Certificates issued in the name of PT              hundred and seventy-five billion Rupiah) with a
      Kustodian Sentral Efek Indonesia (“KSEI”). These         fixed interest rate of 5.90% (five point nine zero
                                                                                                                          GOVERNANCE
                                                                                                                          CORPORATE




      bonds are guaranteed in full commitment with a           percent) per annum with 3 (three) years terms
      fixed interest rate of 5.75% (five point seventy         from the issuance date. The bonds interest is paid
      five percent) per annum with 3 (three) years term        quarterly, where the first bonds interest will be
      from the issuance date.                                  paid on June 17, 2022, and the last bond interest
                                                               altogether with the bond repayment will be paid
       The bonds interest is paid quarterly, where the         on March 17, 2025.
       first bond interest was paid on December 28,
       2021, while the last bond interest altogether with      The Public Offering of Shelf-Registered Bonds I
       the bond repayment will be paid on September            Phase V Year 2022 above was assisted by capital
       28, 2024.                                               market supporting institutions and professions,
                                                               as follows:
       The Public Offering of Shelf-Registered Bonds I         • Trustee: PT Bank Mandiri (Persero) Tbk.
       Phase II Year 2021 Series B above was assisted          • Legal Consultant: Thamrin & Partners Law Firm
       by capital market supporting institutions and           • Notary: Fathiah Helmi, S.H.
                                                                                                                          REPORT
                                                                                                                          SUSTAINABILITY




       professions, as follows:                                • Securities Rating: PT Fitch Ratings Indonesia
       • Trustee: PT Bank Mandiri (Persero) Tbk.




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                          121
Page 122
      CORPORATE
      PREOFILE




                     In March 2022, following the Public Offering of             and traded at Indonesian Stock Exchange
                     Shelf-Registered Bonds I of Bussan Auto Finance             as stated in BEI announcement No. Peng-
                     which was effective on July 24, 2020 with a target          JTO-00037/BEI.PP1/07-2023.
                     of proceeds during the PUB I period amounted
                     Rp3,500,000,000,000 (three trillion five hundred        2. Series B with total bonds offered amounting
                     billion Rupiah), the Company has announced that            Rp11,500,000,000 (eleven billion five
                     during the PUB I period, the Company has issued            hundred million Rupiah) with a fixed interest
                     Shelf-Registered Bonds Phase I to Phase V with             rate of 7.00% (seven point zero zero percent)
                     total proceeds amounted Rp3,375,000,000,000                per annum with 3 (three) years terms from
                     (three trillion three hundred and seventy-five             the issuance date.
                     billion Rupiah). The target amount of proceeds
                     that have not been collected amounted                       The bonds interest is paid quarterly, where
                     Rp125,000,000,000 (one hundred twenty-five                  the first bond interest was paid on October 5,
                     billion Rupiah). Achievement of the proceed below           2022, while the last bond interest altogether
                     the target was to conditions in the Indonesian              with bond repayment was paid on July 15,
                     capital market which were less conducive for the            2023 for series A bonds and July 5 2025 for
                     Company due to the COVID-19 pandemic. This                  series B bonds.
                     information is in compliance with OJK Regulation
                     no. 36/POJK.04/2014 concerning Sustainable              The Public Offering of Shelf-Registered Bonds
                     Public Offerings of Debt Securities and/or Sukuk.       II Phase I Year 2022 disclosed above is assisted
                                                                             by capital market supporting institutions and
            2. Public Offering of Shelf-Registered Bonds II                  professions, as follows:
               In 2022, as an initiative to continue the funding             • Trustee: PT Bank Mandiri (Persero) Tbk.
               diversification strategy through the capital market           • Legal Consultant: Thamrin & Partners Law Firm
               to support working capital of the Financing, the              • Notary: Fathiah Helmi, S.H.
               Company issued Shelf-Registered PUB II targeting              • Securities Rating: PT Fitch Ratings Indonesia
               to acquire proceeds of Rp3 trillion. The Company
               has reported the issuance plan in 2022 the latest 3        b. Shelf-Registered Bonds II Phase II Year 2022
               (three) months before approval of the GMS which               Next in December 2022, the Company issued
               approved the Shelf-Registered Public Offering plan            and offered Shelf-Registered Bonds II Bussan
               by attaching the required documents according to              Auto Finance Phase II Year 2022 with a principal
               provisions in POJK No. 35/POJK.05/2018 concerning             amount of Rp1,200,000,000,000 (one trillion
               the Financing Company Business Implementation.                two hundred billion Rupiah). The bonds obtained
                                                                             AAA(idn) rating from PT Fitch Ratings Indonesia.
                  a. Shelf-Registered Bonds II Phase I Year 2022             These bonds are issued scripless with a value of
                     In July 2022, the Company issued and offered            100% (one hundred percent), in 2 (two) series,
                     Shelf-Registered Bonds II Bussan Auto                   such as:
                     Finance Phase I Year 2022 with a principal of           1. Series A with the number of bonds offered of
                     Rp100,000,000,000 (one hundred billion Rupiah).            Rp665,000,000,000 (six hundred and fifty-
                     The bonds obtained AAA(idn) rating from PT                 five billion Rupiah) with a fixed interest rate
                     Fitch Ratings Indonesia. These bonds are issued            of 5.98% (five-point nine eight percent) per
                     scripless except for Jumbo Certificates issued on          annum with 370 (three hundred seventy)
                     behalf of of PT Kustodian Sentral Efek Indonesia           calendar days terms from the issuance date.
                     (“KSEI”). These bonds are guaranteed with full
                     commitment, which gives the public the option to            In 2023, the Company has fully paid the
                     choose the desired Bond Series as follows:                  sukuk principal and the final interest payment
                     1. Series A with total bonds offered amounted               on the Shelf-Registered Bonds II Phase II
                         Rp 88,500,000,000 (eighty eight billion                 Year 2022 series A with the bonds principal
                         five hundred million Rupiah) with a fixed               of Rp655 billion and the interest of Rp10.9
                         interest rate of 4.10% (four point one zero             billion for the principal repayment and
                         percent) per annum with 370 (three hundred              interest payments. Therefore, as of December
                         and seventy) calendar days terms from the               12, 2023, Bussan Auto Finance Continuous
                         issuance date.                                          Bonds II Phase II Year 2022 Series A is no
                                                                                 longer listed and traded at Indonesian Stock
                         In 2023, the Company has fully paid sukuk               Exchange as stated in BEI announcement No.
                         principal and the final interest payment on             Peng-JTO-00078/BEI.PP1/12-2023.
                         the Shelf-Registered Bonds II Phase I Year
                         2022 series A with the bonds principal of Rp        2. Series B with total bonds offered amounting
                         88.5 billion and the interest of Rp1.0 billion         Rp545,000,000,000 (five hundred and forty
                         for the principal repayment and interest               five billion Rupiah) with a fixed interest rate
                         payments. Therefore, as of July 17 2023,               of 7.75% (seven point seven five percent) per
                         Bussan Auto Finance Continuous Bonds II                annum with 3 (three) years terms from the
                         Phase I Year 2022 Series A is no longer listed         issuance date.




122
Page 123
PT BUSSAN AUTO FINANCE




                                                                                                                          HIGHLIGHTS
                                                                                                                          PERFORMANCE
          The bonds interest is paid quarterly, where the          28, 2024 for series A bonds and April 18, 2026
          first bond interest was be paid on March 2,              for series B bonds.
          2023, while the last bonds interest along with
          the bond repayment will due on December              The Public Offering of Shelf-Registered Bonds II
          12, 2023 for series A bonds and December 2,          Phase III Year 2023 above is assisted by capital
          2025 for series B bonds.                             market supporting institutions and professions,
                                                               as follows:




                                                                                                                          REPORT
                                                                                                                          MANAGEMENT
       The Public Offering of Shelf-Registered Bonds II        • Trustee: PT Bank Mandiri (Persero) Tbk.
       Phase II Year 2022 above is assisted by capital         • Legal Consultant: Thamrin & Partners Law Firm
       market supporting institutions and professions,         • Notary: Fathiah Helmi, S.H.
       as follows:                                             • Securities Ratings: PT Fitch Ratings Indonesia
       • Trustee: PT Bank Mandiri (Persero) Tbk.                   and PT Pemeringkat Efek Indonesia (Pefindo)
       • Legal Consultant: Thamrin & Partners Law Firm
       • Notary: Fathiah Helmi, S.H.                        d. Shelf-Registered Bonds II Phase IV Year 2023
       • Securities Ratings: PT Fitch Ratings Indonesia        Next in September 2023, the Company issued
           and PT Pemeringkat Efek Indonesia (Pefindo)         and offered Shelf-Registered Bonds II Bussan
                                                               Auto Finance Phase IV 2023 with a principal of
   c. Shelf-Registered Bonds II Phase III Year 2023            Rp458,000,000,000 (four hundred and fifty-eight
      Next in April 2023, the Company issued and               billion Rupiah). The bond ontained an AAA(idn)




                                                                                                                          PROFILE
                                                                                                                          CORPORATE
      offered Shelf-Registered Bonds II Bussan Auto            rating from PT Fitch Ratings Indonesia. The
      Finance Phase III Year 2023 with a principal of          bonds are issued scripless with a value of 100%
      Rp1,242,000,000,000 (one trillion two hundred            (one hundred percent) with a fixed interest rate
      and forty-two billion Rupiah). The bond obtained         of 6.50% (six-point five zero percent) per annum
      AAA(idn) rating from PT Fitch Ratings Indonesia.         with 3 (three) years terms from the issuance date.
      The bonds were issued scripless with a value of
      100% (one hundred percent), in 2 (two) series,           The bonds interest is paid quarterly, where the
      such as:                                                 first bond interest will be paid on December 8,
      1. Series A with total bonds offered amounted            2023, while the last bond interest altogether with
          Rp401,000,000,000 (four hundred and one              the bond repayment will be paid on September 8,
          billion Rupiah) with a fixed interest rate of        2026.




                                                                                                                          DISCUSSION & ANALYSIS
                                                                                                                          MANAGEMENT
          5.98% (five point nine eight percent) per
          annum with 370 (three hundred and seventy)           The Public Offering of Shelf-Registered Bonds II
          calendar days terms from the issuance date.          Phase IV Year 2023 above is assisted by capital
      2. Series B with total bonds offered amounted            market supporting institutions and professions,
          Rp841,000,000,000 (eight hundred and forty           as follows:
          one billion Rupiah) with a fixed interest rate       • Trustee: PT Bank Mandiri (Persero) Tbk.
          of 7.10% (seven point one zero percent) per          • Legal Consultant: Thamrin & Partners Law Firm
          annum with 3 (three) years terms from the            • Notary: Fathiah Helmi, S.H.
          issuance date.                                       • Securities Ratings: PT Fitch Ratings Indonesia
                                                                   and PT Pemeringkat Efek Indonesia (Pefindo)
          The bonds interest is paid quarterly, where
          the first bond interest was paid on July 18,         A complete table explaining the Company’s bond
          2023, while the last bond interest altogether        listing is presented on the bonds highlight page.
          with the bond repayment will be paid on April                                                                   GOVERNANCE
                                                                                                                          CORPORATE
                                                                                                                          REPORT
                                                                                                                          SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                          123
Page 124
      CORPORATE
      PREOFILE




                         CAPITAL MARKET
                         SUPPORTING PROFESSIONS
                         AND INSTITUTIONS

            Capital market supporting institutions hired by the Company in 2023, specifically related to the shelf-registration
            offering are as follows:



              Trustee

              PT Bank Mandiri (Persero) Tbk.
              Plaza Mandiri, 22nd Floor, Jl. Jend. Gatot Subroto Kav. 36-38, Jakarta 12910


              STTD Number                                                 Association Membership
              No. 17/STTD-WA/PM/1999 dated October 27, 1999.              Indonesia Trustee Association Number
                                                                          AWAI/05/12/2008 dated December 17, 2008


              Scope of Work
              Scope of Work of the Trustees for Bonds and Sukuk Mudharabah is to represent interests of the Bonds and Sukuk
              Mudharabah holders both on and off the court concerning implementation of the Bonds and Sukuk Mudharabah
              holders’ rights according to the Bonds and Sukuk Mudharabah requirements by concerning provisions as disclosed
              in the Bonds Trustee Agreement and Sukuk Mudharabah Trustee Agreement as well as other prevailing Law and
              Regulations.




              Legal Consultant

              Thamrin & Rekan Law Firm
              Menara Kuningan Lantai 9, Jl. HR. Rasuna Said Blok X-7, Kav-5, Jakarta Selatan 12940


              STTD Number                                                 Association Membership
              STTD. KH-107 / PM.2 / 2018 on Iswira Laksana, S.H.,         Stock Market Legal Consultant Association Number
              M.Si.                                                       99012 on behalf of Iswira Laksana, SH., M.Si.


              Scope of Work:
              Scope of work of the Legal Consultant includes investigation and observation with best skill on existing facts in legal
              aspect about the Company and other information related with the case as reported by the Company. Investigation
              and observation reports are treated as basis of Legal Opinion which is administered objectively and independently
              as well as to review information published in Additional Information in Legal aspect. Duty and function of the Legal
              Consultant as mentioned shall fulfil Professional Standard and prevailing Capital Market Regulation to implement
              transparency principle.




124
Page 125
PT BUSSAN AUTO FINANCE




                                                                                                                                HIGHLIGHTS
                                                                                                                                PERFORMANCE
  Public Accountant

  KAP Imelda & Rekan (a member of Deloitte Touche Tohmatsu Ltd.)
  The Plaza Office Tower 32nd Floor Jl. M.H. Thamrin Kav 28-30, Jakarta 10350


  STTD Number                                                Association Membership




                                                                                                                                REPORT
                                                                                                                                MANAGEMENT
  - STTD.AP-165/PM.22/2018 dated February 5th,               IAPI No. 0631 on behalf of Erny Sandjaja
     2018 on behalf of Erny Sandjaja (Capital Market)
  - STTD.AP-57/NB.122/2018 dated February 9tj,
     2018 on behalf of Erny Sandjaja (Non-Bank
     Financial Sector)


  Scope of Work:
  Scope of the duties of the Public Accountant is to audit the Company’s financial statements, based on auditing
  standards set by IAPI. These standards require Public Accountants to plan and carry out an audit to obtain reasonable
  assurance confirming the financial statements are free from material miss-presentation. The Public Accountants are




                                                                                                                                PROFILE
                                                                                                                                CORPORATE
  responsible upon the opinions declared to the audited financial statements. The duties of the Public Accountant
  are including to examine, on a test basis, the supporting evidence to the amounts and disclosures in the financial
  statements.




  Notary

  Fathiah Helmi S.H.
  Graha Irama, 6th Floor, suite C, Jl. H.R. Rasuna Said Blok X-1 Kav. 1&2, Jakarta 12950




                                                                                                                                DISCUSSION & ANALYSIS
                                                                                                                                MANAGEMENT
  STTD Number                                                Association Membership
  STTD.N-93/PM.22/2018 dated April 9, 2018 on                Indonesia Notary Association Number
  behalf of Fathiah Helmi S.H.                               011.003.027.260958 on behalf of Fathiah Helmi SH.


  Scope of Work:
  Scope of work for the Notary is to prepare agreement drafts related to the Share Transfer of the company, Shelf-
  Registration Bonds and Shelf-Registration Sukuk Mudharabah Public Offering, according to the notary professional
  requirements and ethical code.
                                                                                                                                GOVERNANCE
                                                                                                                                CORPORATE




  Rating Agency

  PT Fitch Ratings Indonesia
  DBS Bank Tower Lantai 24, suite 2403, Jl. Jl. Prof. Dr. Satrio Kav. 3-5, Kuningan, Jakarta Selatan 12940


  Scope of Work
  Scope of work for the Rating Agency is to conduct rating on Bonds and Sukuk Mudharabah after thoroughly reviewing
  all data and information that are considered relevant, accurate and trusted as well as reviewing result of the rating
  periodically as required under the prevailing Laws and Regulations. The Rating Agency is also required to finish the
  review on rating result publication with regards to any material facts or extraordinary events that may influence the
  published rating result, the latest within 7 (seven) Working Days after the acknowledgement of the material facts or
  extraordinary events and to issue new rating following any change in the current rating due to the review process.
                                                                                                                                REPORT
                                                                                                                                SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                125
Page 126
      CORPORATE
      PREOFILE




              Rating Agency

              PT Pemeringkat Efek Indonesia (PEFINDO)
              Panin Tower Senayan City 17th Floor, Jl. Asia Afrika Lot. 19, Jakarta 10270


              Scope of Work
              Scope of work for the Rating Agency is to conduct annual rating on Shelf-Registration Bonds II Year 2022 and 2023
              issued by the Company after thoroughly reviewing all data and information that are considered relevant, accurate
              and trusted as well as reviewing the rating result regularly as required under the prevailing Laws and Regulations.




              Payment Agent

              PT Kustodian Sentral Efek Indonesia
              Gedung Bursa Efek Jakarta Tower I, 5th Floor, Jl. Jend. Sudirman Kav. 52-53, Jakarta 12190


              Scope of Work
              Scope of work for KSEI as Payment Agent is to make repayment of Principal Bonds and Bonds Interest on behalf
              of the Company based on the terms and conditions as regulated in the Payment Agent Agreement to the
              Bondholders through the Account Holder in accordance with the respective payment schedules agreed according
              to the Trustee Agreement. If the Payment Date dues on Exchange Day Off, the payment will be processed on the
              next Exchange Day.




                  Securities Registrar

                  As of December 31, 2023, the Company did not execute any shares listing at Indonesia Stock Exchange, therefore,
                  the Company has not yet hired Securities Registrar service and information on the name and address of the
                  Securities Registrar are unavailable to be disclosed in this Report.




126
Page 127
                         PERFORMANCE   MANAGEMENT   CORPORATE   MANAGEMENT              CORPORATE    SUSTAINABILITY
                         HIGHLIGHTS    REPORT       PROFILE     DISCUSSION & ANALYSIS   GOVERNANCE   REPORT




                                                                                                                      127
                                                                                                                       2023 ANNUAL REPORT & SUSTAINABILITY REPORT
PT BUSSAN AUTO FINANCE
Page 128
        MANAGEMENT
        DISCUSSION & ANALYSIS




                                MANAGEMENT
                                DISCUSSION &
                                ANALYSIS
               ANGKLUNG IS ASSEMBLED BY COLLECTING TWO TO FOUR DIFFERENT SIZES OF BAMBOO
               TUBES, STRINGING AND BINDING THEM WITH RATTAN. WE STRIVE TO ALIGN SEVERAL
               STRATEGIES IN THE COMPANY TO ACHIEVE THE EXPECTED TARGETS.




128
  128
Page 129
                         IKHTISAR
                         PERFORMANCE   LAPORAN
                                       MANAGEMENT   CORPORATE
                                                    PROFIL       MANAGEMENT
                                                                 ANALISA & PEMBAHASAN   TATA KELOLA
                                                                                        CORPORATE     SUSTAINABILITY
                                                                                                      LAPORAN
                         HIGHLIGHTS
                         UTAMA         REPORT
                                       MANAJEMEN    PERUSAHAAN
                                                    PROFILE      DISCUSSION
                                                                 MANAJEMEN & ANALYSIS   PERUSAHAAN
                                                                                        GOVERNANCE    KEBERLANJUTAN
                                                                                                      REPORT




                                                                                                                       129                                  REPORT2023
                                                                                                                                                   KEBERLANJUTAN
                                                                                                                                           & SUSTAINABILITY
                                                                                                                                         & LAPORAN
PT BUSSAN AUTO FINANCE




                                                                                                                        2023 ANNUAL
                                                                                                                        LAPORAN     REPORT
                                                                                                                                TAHUNAN
Page 130
      MANAGEMENT
      DISCUSSION & ANALYSIS




                         MACROECONOMIC
                         OVERVIEW




                                                 Global Macroeconomics
             DESPITE THE REVOCATION OF      The world sees a new beginning in 2023 as the COVID-19
             COVID-19 EMERGENCY STATUS,     emergency status was lifted by the World Health
                                            Organization (WHO) on May 5, 2023. The revocation of
             THE GLOBAL SOCIETY WAS STILL   the COVID-19 emergency status considered significant
                                            decrease in positive cases and fatality due to COVID-19,
             OVERSHADOWED BY GLOBAL
                                            recording the lowest figures in the last 3 years.
             UNCERTAINTIES.
                                            Despite the revocation of COVID-19 emergency status,
                                            the global society was still overshadowed by global
                                            uncertainties. The global uncertainty in 2023 was
                                            initiated from the prolong geopolitical war between
                                            Russia and Ukraine which affected to soaring prices of
                                            major world commodities, such as crude oil, coal and
                                            gas. The increasing price affected to overall higher global
                                            commodities price. As a result, high inflation became
                                            inevitable for various countries. The domino effect had
                                            several countries to raise their benchmark interest rates
                                            to reduce high inflation, rate such as the United States.




130
Page 131
PT BUSSAN AUTO FINANCE




                                                                                                                                    HIGHLIGHTS
                                                                                                                                    PERFORMANCE
As of December 2023, the United States Central Bank             Decree of the Republic of Indonesia (Keppres) Number
(Federal Reserve or The Fed) raised its benchmark interest      17 of 2023 which effectively applied since June 21, 2023
rate 4x (February, March, May, and July 2023), from 4.25-       concerning Stipulation of the End of the Corona Virus
4.5% in December 2022 to 5.25- 5.5% in July 2023. The           Disease 2019 (COVID-19) Pandemic Status in Indonesia.
adjustment prompted several countries to also increase          Therefore, the status of COVID-19 in Indonesia has
their benchmark interest rates to curb inflation and            changed from pandemic to endemic. Following this
maintain prices stability.                                      Presidential Decree, the Decree also revokes the




                                                                                                                                    REPORT
                                                                                                                                    MANAGEMENT
                                                                designation of the COVID-19 public health emergency
Despite the high global uncertainty, several global             and revokes the designation of the non-natural disaster
institutions remained optimistic that the global economy        of the spread of COVID-19 as a national disaster.
would grow in 2023. IMF had the global economic growth
projection in 2023 revised from 2.8% (YoY) to 3.0% (YoY)        As the COVID-19 pandemic was lifted, economic activity
along with the easing global inflation. Not only the IMF,       was recover throughout 2023. Statistics Indonesia (BPS)
Fitch Ratings also revised the global economic growth           reported that despite recording negative growth when
projection from 2.4% (YoY) to 2.5% (YoY) in 2023 which          COVID-19 pandemic outbreak in 2020, the national
is supported by relatively good economic resilience in          economy indicated resilience and showed facter recovery
the United States, Japan and the emerging markets. The          pace. By the fourth quarter of 2023, Indonesia’s
recovering global economy is also expected to continue          economic growth was remain high, achieving 5.0%
until 2024, starting with the gradual easing of world           (YoY), amidst global economic conditions which were




                                                                                                                                    PROFILE
                                                                                                                                    CORPORATE
inflationary pressures.                                         full of uncertainty. If compared with the third quarter of
                                                                2023, Indonesia’s economic growth in the fourth quarter
                                                                of 2023 managed to grow 0.5% (QoQ).
     Domestic Economy
                                                                Presentation of quarterly domestic economic growth
Based on WHO’s resolutions regarding the revocation             trends from 2021 to the fourth quarter of 2023 is as
of the COVID-19 emergency status, the President of              follows:
Indonesia, Joko Widodo (Jokowi) issued Presidential




                                                                                                                                    DISCUSSION & ANALYSIS
                                                                                                                                    MANAGEMENT
Indonesia’s Economic Growth in 2021 to 2023 (%)
Source: Statistics Indonesia

8.00%
                    7.08
6.00%                                                        5.46    5.73
                                       5.03     5.02                           5.01     5.04      5.17     4.94      5.04

4.00%                         3.53

2.00%

0.00%
          -0.69
-2.00%
          2021                                  2022                                    2023
                                                                                                                                    GOVERNANCE
                                                                                                                                    CORPORATE




Strong economic growth is supported by almost all               Indonesia’s trade balance in December 2023 again
GDP components from the expenditure side. Household             recorded a surplus of 3.3 billion US dollars. This positive
consumption grew by 2.6% (YoY) in line with increasing          performance continues Indonesia’s trade balance
community mobility because the COVID-19 pandemic                surplus since May 2020. With this development,
status had been lifted. Investment growth also remains          Indonesia’s trade balance in January-December 2023
high in line with the improving national economy,               as a whole recorded a surplus of 36.9 billion US dollars
namely 4.8% (YoY) throughout 2023. Then, government             or a decrease of 32.2% (YoY).
consumption rose 3.0% (YoY) driven by a decrease in
personnel spending, goods spending, and government              In terms of exchange rates, the stability of the Rupiah
spending. social assistance (bansos). Apart from                exchange rate was maintained amidst the very strong
government consumption, overall exports also rose               US dollar and increasing global financial market
by 8.6% (YoY) driven by a decline in exports of non-            uncertainty. On December 29 2023, the Rupiah
                                                                                                                                    REPORT
                                                                                                                                    SUSTAINABILITY




petroleum and gas (oil and gas) goods.                          exchange rate was maintained at Rp15,439 per US




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                    131
Page 132
      MANAGEMENT
      DISCUSSION & ANALYSIS




             dollar, strengthening compared to the previous year,         responsively to the surge in inflation at the beginning of
             namely Rp15,592 per US dollar.                               2023. The fairly aggressive increase in BI’s benchmark
                                                                          interest rate since the end of 2022 was aimed at reducing
             In terms of inflation, Indonesia’s inflation remains under   the national inflation rate. In October 2023, BI raised
             control at the level of 2.6% (YoY) throughout 2023,          its benchmark interest rate by 25 basis points (bps) to
             still moderate when compared to various countries,           6.0% to strengthen the stability of the Rupiah exchange
             such as the United States with inflation of 3.4% (YoY).      rate and inflation from the impact of increasing global
             Indonesia’s controlled inflation rate was driven by the      uncertainty at the end of 2023.
             steps taken by Bank Indonesia (BI), which responded




132
Page 133
PT BUSSAN AUTO FINANCE




                                                                                                              HIGHLIGHTS
                                                                                                              PERFORMANCE
            FINANCING INDUSTRY
            OVERVIEW




                                                                                                              REPORT
                                                                                                              MANAGEMENT
                                                                                                              PROFILE
                                                                                                              CORPORATE
                                                                                                              DISCUSSION & ANALYSIS
                                                                                                              MANAGEMENT
                                                  Automotive Sector
IN AUTOMOTIVE SECTOR,                        Domestic economic conditions that were slowly
MOTORCYCLE SALES IN INDONESIA                recovering from the COVID-19 pandemic also affected
                                                                                                              GOVERNANCE
                                                                                                              CORPORATE



                                             the sales in automotive sector. Such condition was
EXPERIENCED POSITIVE GROWTH.                 seen from the increase in motorcycle and cars sales
                                             throughout 2023.

                                             In automotive sector, motorcycle sales in Indonesia
                                             experienced positive growth, after overcoming
                                             COVID-19 pandemic and scarcity of semiconductor chip
                                             supplies in 2022. Based on data released by Indonesian
                                             Motorcycle Industry Association (AISI), two-wheeled
                                             sales (wholesale) throughout 2023 booked 6.2 million
                                             units or increased by 19.4% (YoY), compared to 5.2
                                             million units in the same period of 2022. The motorcycle
                                             sales record in 2023 has surely achieved AISI’s target,
                                             where previously AISI set a minimum sales target of 5.8
                                                                                                              REPORT
                                                                                                              SUSTAINABILITY




                                             million units.




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                              133
Page 134
      MANAGEMENT
      DISCUSSION & ANALYSIS




             In addition, car sales (wholesale) in Indonesia achieved      by the second half of 2023. The slowdown was also
             1.0 million units in 2023 or decreased by 4.0% (YoY)          caused by several factors such as an increase in Bank
             compared to 1.05 million units in the same period of          Indonesia interest rates and also slowing economic
             2022. This was due to a slowdown in automotive market         growth.


             Motorcycle and Car Sales Growth (Wholesale) 2023 and 2022
             Source: AISI & GAIKINDO


             Car Sales (Wholesale)
             Thousand Unit

             120.0
                                            101.3                                       97.0    100.0                     105.4
                         94.3                                                                            93.2     91.3
             100.0                  87.1                                        86.2
                                                    82.7    82.2        82.7
                                             98.5
               80.0
                         84.1                                                           88.9                      84.4    85.3
                                    81.0                                        80.5             79.9    80.4
                                                                        78.9
               60.0
                                                    59.0
               40.0                                         49.7

               20.0

                0.0
                         Jan        Feb      Mar    Apr     May         Jun     Jul     Aug      Sep      Oct     Nov      Dec

                             2023           2022




             Motorcycle Sales (Wholesale)
             Thousand Unit

             700.0                          633.2
                        615.4       575.5
                                                                                                         537.6   588.3
             600.0                                                                      534.4
                                                            529.8                               514.5
                                                                    493.8      475.4                             572.0    483.3
             500.0                                  439.5                               524.8
                                                                                                509.9    516.3
             400.0      443.9               450.6
                                                                                                                          427.0
             300.0                  368.1           354.3
                                                                               326.5
                                                                    296.5
             200.0                                          248.2

             100.0

                0.0
                         Jan        Feb      Mar    Apr     May         Jun     Jul     Aug      Sep      Oct     Nov      Dec

                             2023           2022




134
Page 135
PT BUSSAN AUTO FINANCE




                                                                                                                                  HIGHLIGHTS
                                                                                                                                  PERFORMANCE
                                                                working capital financing. The proportion was in line
     Financing Industry                                         with the Company’s compliance to the obligations of
                                                                finance companies in increasing their contribution to
Multifinance industry financing receivables grew                investment financing and working capital. Investment
13.2% year on year (YoY) in December 2023. The                  financing grew 9.0% (YoY) to Rp154.4 trillion in
growth in multifinance industry business was followed           December 2023. Working capital financing grew
by relatively good financing quality and plenty room            15.1% (YoY) to Rp45.6 trillion.




                                                                                                                                  REPORT
                                                                                                                                  MANAGEMENT
for growth. This was supported by working capital and
investment financing which increased by 15.1% (YoY)             Multipurpose financing grew 13.8% (YoY) to Rp245.2
and 9.0% (YoY), respectively.                                   triliun in December 2023. In financing based on sharia
                                                                principles which consists of buying and selling financing
Multipurpose financing still becomes the largest                based on sharia principles, investment financing based
segment of total financing receivables, contributing            on sharia principles, as well as financing services based
52.1% to total financing receivables, investment                on sharia principles on an accumulative basis increased
financing shared 32.8%, and working capital financing           32.9% (YoY) from Rp18.7 trillion in December 2022 to
contributed 9.7%. The remaining was contributed                 Rp24.9 trillion in December 2023. Financing Based on
from financing based on sharia principles and other             OJK Approval increased by 60.9% (YoY) from Rp511
financing based on OJK approval.                                billion in December 2022 to Rp823 billion in December
                                                                2023.




                                                                                                                                  PROFILE
                                                                                                                                  CORPORATE
The growth in financing industry receivables in 2023
was contributed from investment financing and


Composition of Financing Receivables as of December 2023
Source: OJK Statistic Finance Institutions


               5.0%


                                                Investment Financing




                                                                                                                                  DISCUSSION & ANALYSIS
                                                                                                                                  MANAGEMENT
                           33.9%
                                                Working Capital Financing

                                                Multipurposes Financing
       51.6%
                                                Financing based on Sharia Principle
                           51.6%




The increase in financing receivables encouraged the            financing industry increased as the industry’s net profit
increase of 13.3% (YoY) in total assets of the financing        grew. The industry booked Return on Assets (ROA) of
industry to Rp552.9 trillion in December 2023. On top           5.6% in 2023. The industry’s booked an increase in
line, total industry income has increased 16.7% (YoY) to        Return on Equity (ROE) of 15.0% in 2023 from 14.4%
                                                                                                                                  GOVERNANCE
                                                                                                                                  CORPORATE




Rp123.2 trillion throughout 2023. As top line improved,         in 2022.
industry’s bottom line was also improving. Financing
industry booked a significant increase of net profit by         Ability of the financing industry’s to reduce operational
13.0% (YoY) from Rp20.4 trillion in 2022 to Rp23.0              costs as represented by BOPO ratio has increased slightly
trillion in 2023.                                               to 76.9% in 2023, which previously reached 75.6% in
                                                                2022. Gearing ratio stood at 2.26 in 2023. The financing
Financial performance condition of the financing industry       industry booked Non-performing financing (NPF) of
affected several financial ratios. Profitability ratio of the   2.44% in December 2023.
                                                                                                                                  REPORT
                                                                                                                                  SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                  135
Page 136
      MANAGEMENT
      DISCUSSION & ANALYSIS




             Multifinance Industry’s NPF, ROA, ROE and BOPO Trend in 2023 (%)
             Source: OJK Statistic Finance Institutions

              80.0%
                       79.5            78.1    78.8   78.4
                                76.6                          77.9   77.5       77.3    77.0   76.4          76.9
              70.0%                                                                                   76.7


              60.0%                                                                                                 6.0%

                        5.8     5.8    5.8     5.8    5.7     5.8     5.8               5.7    5.8
                                                                                5.7                   5.7    5.6
              50.0%                                                                                                 5.0%


              40.0%                                                                                                 4.0%

                                                      2.6     2.7     2.7       2.7     2.6    2.6
              30.0%     2.4     2.4    2.4     2.5                                                    2.5    2.4    3.0%


              20.0%                                                                                                 2.0%


              10.0%    14.7     14.9   14.9    15.0   14.9    15.4   15.4       15.0    15.2   15.5          15.0   1.0%
                                                                                                      15.3

               0.0%
                       Jan      Feb    Mar     Apr    Mei     Jun     Jul       Agu     Sep    Okt    Nov    Des

                              ROA             BOPO            NPF                 ROE




136
Page 137
PT BUSSAN AUTO FINANCE




                                                                                                                HIGHLIGHTS
                                                                                                                PERFORMANCE
            LINE OF BUSINESS
            OVERVIEW




                                                                                                                REPORT
                                                                                                                MANAGEMENT
                                                                                                                PROFILE
                                                                                                                CORPORATE
                                                                                                                DISCUSSION & ANALYSIS
                                                                                                                MANAGEMENT
NEW YAMAHA                                   As end of 2023, the Company booked value of new
                                             Yamaha motorcycle financing disbursement decreased
MOTORCYCLE FINANCING                         by 5.4% (YoY) to Rp5.9 trillion with 240,478 units.
                                             The decline was namely due to prolong disruption
                                             in the supply of vehicle stock due to the scarcity of
                                             semiconductor chips, especially for Yamaha motorcycle
                                             (premium models).

                                             In 2023, as an effort to maintain BAF share, the
                                             Company implemented strategies, including focusing
                                             on areas that contribute to BAF Share and focusing
FOLLOWING REVOCATION OF                      on dealers by considering the volume and quality of
                                                                                                                GOVERNANCE
                                                                                                                CORPORATE




                                             financing.
COVID-19 PANDEMIC STATUS IN
INDONESIA, DIRECT SELLING                    In addition to optimize the use of the Customer
                                             Relations Management (CRM) system, an initiative to
ACTIVITIES WERE CONTINUOUSLY                 increase repeat orders was also carried out by launching
                                             various marketing programs such as Spontan (Instant
OPTIMIZED THROUGH SEVERAL
                                             Motorcycle) program, which is a benefit provided to the
PROGRAMS.                                    Company’s loyal consumers with good payment history.
                                             The Company organized Spontan program via online
                                             media such as e-mail & Telesales, as well as offline by
                                             providing direct offers to consumers in collaboration with
                                             backbone dealers. The contribution of Spontan program
                                             has been adequate to contribute increasing repeat orders
                                             in 2023 with an accumulative increase reaching 13.2%
                                                                                                                REPORT
                                                                                                                SUSTAINABILITY




                                             from 11.6% in 2022.




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                137
Page 138
      MANAGEMENT
      DISCUSSION & ANALYSIS




             Several direct selling programs were also carried out to       provide special benefits to loyal and have good sales
             increase repeat order sales, such as BAF Tomo program,         value dealers.
             Employee Get Customer, Customer Get Customer
             program, and the Company’s collaborative efforts with          Recently, main focus of the Company’s financing is
             Yamaha Indonesia Motor Manufacturing (YIMM) to re-             customer financing for the purchase of new Yamaha
             offer repeat order applications, particularly for YIMM         motorcycles. The two-wheeled financing value provided
             partner companies. Therefore, cooperation continues            starts from a DP of 10% of the motorcycle price.
             to be strengthened between the Company YIMM                    Financing is provided with fixed loan interest rate for a
             and various dealers by utilizing integrated systems            9 (nine) to 48 (forty eight) months terms with monthly
             and increasing acquisitions through alternative sales          installment payments. During the financing period,
             channels. As of December 31, 2023, the Company has             the Company holds collateral in form of BPKB from the
             established cooperation and synergy with 1,122 dealer          financed motorcycle until repayment under fiduciary
             partners.                                                      agreement. The consumers are required to have Total
                                                                            Loss Only insurance as long as still having loan balance.
             In 2023, following revocation of COVID-19 pandemic             Furthermore, consumers are also offered the option to
             status in Indonesia, direct selling activities were            get protection through Personal Accident Insurance &
             continuously optimized through several programs related        Personal Accident Plus. The Company obtains consumers
             to marketing in several areas to reach potential customers,    from referrals and recommendations provided by
             such as fleet sales, which were carried out in collaboration   motorcycle dealer partners.
             with dealers. Various online marketing activities were still
             organized to expand the reach of potential consumers           The Company is the only new Yamaha motorcycle
             using the Company’s official social media accounts. BAF        financing company with leading market share position
             Festival became one of the activities offering attractive      (BAF Share) reaching 19.9% (YoY) as end of 2023. The
             promotions every month. Various promotional activities         Company’s financing of new Yamaha motorcycle still
             were carried out such as Yamaha Day in July, to celebrate      becomes the largest contributor, reaching 53.6% of
             the Company’s BAF Anniversary in September, as well as         total new financing disbursement in 2023. Therefore,
             various promotional activities on the Company’s social         the Company is in an advantageous position to compete
             media and digital platforms.                                   with other motorcycle financing companies. Therefore,
                                                                            considering unit availability which has started to improve
             The Company continuously develops systems to support           since the second quarter of 2023 and motorcycle sales
             sustainable marketing activities to improve services           which were projected to grow further in 2023, the
             to consumers and dealers. In 2023, the Company has             Company also expected to achieve better sales growth.
             implemented one of the system developments as an effort        The Company will further strengthen cooperation with
             to reduce manual processes which affecting financing           Yamaha dealers, strengthening dealer classification
             acquisition process, such as auto-assign automation            by providing more benefits for loyal dealers, and
             process in the order distribution process given by dealers     development of other benefits that may create a positive
             to the Company. In addition, the Company is consistent         impact on collaboration process between the Company
             in developing the dealer classification program to             and dealers.



                                  DESCRIPTION                                         2023                           2022

              Average Financing Value (Rp million)                                        24.5                          23.3

              Average effective interest rate (% per annum)                               38.0                          38.6

              Average financing terms (months)                                            27.7                          28.0

              Total booking (units)                                                  240,478                        267,373

              Total booking (Rp million)                                            5,889,709                      6,225,146

              NPF Ratio (%)                                                               1.13                          1.09




138
Page 139
PT BUSSAN AUTO FINANCE




                                                                                                                HIGHLIGHTS
                                                                                                                PERFORMANCE
                                                                                                                REPORT
                                                                                                                MANAGEMENT
                                                                                                                PROFILE
                                                                                                                CORPORATE
USED MOTORCYCLE                              Used motorcycle financing business line maintained its
                                             growth in 2023. As end of 2023, value of the Company’s
FINANCING                                    new financing for used motorcycle grew 3.0% (YoY)
                                             from Rp399.7 billion in 2022 to Rp411.5 billion by the
                                             end of 2023.




                                                                                                                DISCUSSION & ANALYSIS
                                                                                                                MANAGEMENT
                                             In 2023, the Company continued to expand
                                             partnership with used motorcycle dealers, focusing on
                                             potential areas. The Company consistently intensified
                                             cooperation with the dealers and focusing on Sumatra,
                                             Java, Kalimantan and Sulawesi area. In 2023, additional
THE COMPANY CONTINUED TO                     of 83 used motorcycle dealers collaborating with the
                                             Company. Therefore, total used motorclcye dealers
EXPAND PARTNERSHIP WITH USED                 reached 392 by the end of 2023.
MOTORCYCLE DEALERS, FOCUSING
                                             Initiatives to increase sales contribution from
ON POTENTIAL AREAS.                          used motorcycle dealers were also being actively
                                             implemented. In February 2023, the Company
                                             inaugurated the first Lapak Mokas Berkualitas (LMB)
                                             in Indonesia located in Makassar – Maros. LMB is a
                                             business place in form of used motorcycle showroom
                                             provided by the Company in collaboration with used
                                                                                                                GOVERNANCE
                                                                                                                CORPORATE




                                             motorcycle dealers as motorcycle stock providers. The
                                             existence of LMB will provide access for people who wish
                                             to own a quality used motorcycle through financing.

                                             System development in 2023 was also carried out
                                             to improve credit application process which would
                                             later be used by used motorcycle dealers to forward
                                             customer credit applications to the Company thereby
                                             the application process is faster and closely monitored.
                                             The developments that were carried out included Digital
                                             Calculator which helps the Credit Marketing Officer
                                             (CMO) to simulate the credit structure calculations
                                             required by potential consumers, so that potential
                                             consumers will get information faster. A Market Price
                                                                                                                REPORT
                                                                                                                SUSTAINABILITY




                                             Calculation system has also been implemented tha will
                                             help to update the used motorcycle price list faster (real




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                139
Page 140
  MANAGEMENT
  DISCUSSION & ANALYSIS




         time) and provide better services to the Company’s         improve their skills in handling and processing credit
         partner dealers.                                           financing, especially in used motorcycle financing line.
                                                                    This also becomes a continuous learning carried out by
         Despite COVID-19 pandemic has been lifted in 2023, the     the Company in developing employee competence and
         Company maintained the use of online media to support      expertise to support business and operational processes.
         marketing activities and broaden consumers coverage.       The Company provides financing to purchase used
         The Company engages in various online platforms such       motorcycles from all Japanese brands. The financing
         as Live IG by conducting talk shows introducing superior   value of used motorcycle generally does not exceed
         products and current promotions on the Company’s           75% of the estimated market value of the motorcycle
         social media. The Company maintains full support           to be purchased, paid in installments at fixed interest
         the activities carried out by dealers through Tiktok,      rate for a period of 12 (twelve) to 36 (thirty six) months.
         Facebook, Instagram and other online social media          The Company holds BPKB from the motorcycle financed
         platforms by offering attractive marketing programs        as collateral until repayment which is bound under
         every month. This inclusive activity is expected to        fiduciary agreement, during the financing period.
         provide information about the Company’s quality used
         motorcycle financing products to public.                   In the future, the used motorcycle financing business
                                                                    line will be optimized, including: opening independent
         As an effort to improve quality of marketing personnel     used motorcycle dealers in highly potential areas such as
         followed by increasing their capacity, specifically in     Kalimantan and Sulawesi; intensifying online marketing
         used motorcycle financing business line, the Company       activities and expanding potential customers reach, and
         maintains the implementation of training (refreshment      continuously improving quality of marketing personnel
         training), socialization and competency exams given        followed by increasing capacity of the marketing
         to Marketing Head and CMO levels to evaluate and           personnel through continuous training.



                             DESCRIPTION                                      2023                            2022

          Average Financing Value (Rp million)                                  17.8                            16.7

          Average effective interest rate (% per annum)                         38.6                            37.9

          Average financing terms (months)                                      29.7                            28.0

          Total booking (units)                                              23,145                          23,911

          Total booking (Rp million)                                           411.5                          399.5

          NPF Ratio (%)                                                         1.19                            0.80




140
Page 141
PT BUSSAN AUTO FINANCE




                                                                                                              HIGHLIGHTS
                                                                                                              PERFORMANCE
                                                                                                              REPORT
                                                                                                              MANAGEMENT
                                                                                                              PROFILE
                                                                                                              CORPORATE
BAF DANA                                     New financing distribution rose 39.0% (YoY) from Rp2.2
                                             trillion as end of 2022 to Rp3.1 trillion at the end of
SYARIAH                                      2023. In terms of units, the product grew 26.8% from
                                             188 thousand units in 2022 to 238 thousand units at
                                             the end of 2023.




                                                                                                              DISCUSSION & ANALYSIS
                                                                                                              MANAGEMENT
                                             Such condition was related to various initiatives and
                                             strategies carried out throughout 2023. The strategy
                                             implemented in 2023 for the Company’s consumers was
                                             focusing to make offers with an integrated customer
                                             journey through collaboration with CRM team, Digital
THE COMPANY’S BAF DANA SYARIAH               and Telesales teams. With this customer journey, the
                                             Company’s consumers receive different program offers
FINANCING RECORDED GOOD                      and offering methods at each phase. Of course, the
GROWTH IN 2023.                              DASYAT (Dana Syariah Tercepat) program is still the
                                             Company’s flagship program because this program
                                             provides very fast Dana Syariah processing services,
                                             which. is 1 (one) hour from application entry until the
                                             disbursement.

                                             In 2023, the Company expanded criteria for the
                                             consumers who are considered eligible to obtain the
                                                                                                              GOVERNANCE
                                                                                                              CORPORATE




                                             Fastest BAF Dana Syariah program facility. If previously
                                             this facility was only offered to consumers who had
                                             completed their financing tenor, then in 2023, this
                                             program offer covers up to consumers who still have a
                                             maximum of 6 (six) remaining installments with good
                                             payment criteria. By end of 2023, contribution of the
                                             DASYAT program to the distribution of new financing in
                                             2023 is 21.0%.
                                                                                                              REPORT
                                                                                                              SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                              141
Page 142
      MANAGEMENT
      DISCUSSION & ANALYSIS




             BAF Xtra Agent also becomes still the largest application    The Company maintains the improvement and system
             source for acquiring new consumers. Therefore, various       development process. Several system developments
             activities for handling BAF Xtra Agents which include        carried out in 2023 include enhancing the digital
             regular visits and holding regular BAF Xtra Agent            calculator, where existing customer data can be filled in
             meetings are things that must be carried out by the          automatically in the calculator menu, thereby minimizing
             team in the BAF Dana Syariah business line at the            the occurrence of data input errors. The Company
             network office. Various interesting stimulating programs     has also enhanced the power of attorney document
             are provided to Xtra BAF. These programs include Point       which has been adapted to OJK regulations as a sign
             Rewards which are given every six months, trip rewards       of the Company’s compliance with current regulations.
             to destination both domestic and overseas up to three        Enhancements were also carried out regarding the BAF
             times year and other interesting campaign programs           Dana Syariah disbursement service through very fast
             that are tailored to the moments at a certain time.          transfers (real time) because the Company utilized the
                                                                          Application Programming Interface (API) with several
             As of 31 December 2023, total Xtra BAF Agents has            well-known banks in Indonesia.
             reached approximately 53,189 people spread across
             various locations in Indonesia. This number has              In the future, to increase contribution of the Dana
             significantly increased by 20.9% (YoY) compared to           Syariah business line, the Company will continue
             2022. However, the Company continues to strive to            to improve the performance and productivity of
             increase the productivity of Xtra BAF Agents. To increase    BAF Dana Syariah agents by focusing more on
             the productivity of Xtra BAF Agents, the Company             implementing standardized and measurable Xtra BAF
             has implemented standardized and measurable                  Agent management. The Company will also maintain
             management of Xtra BAF Agents. To provide better             sales activities by utilizing the Company’s customer
             service in submitting applications from Xtra BAF Agents,     database. The Company will increase sales productivity
             the Company will launch a data warehouse on the              in all of the Company’s network offices by standardizing
             Agency Management System which will make it easier           performance and structured monitoring, as well as
             to manage Xtra BAF Agents and speed up the service           developing ongoing training programs to prepare
             process to them. In 2023, the Agency Management              competent human resources.
             System, which makes agency activities easier for Xtra
             BAF agents, made several updates, so that each Xtra          BAF Dana Syariah is one of the sharia-based service
             BAF agent can monitor its performance independently.         financing products for two-wheeled vehicles of various
                                                                          brands which was introduced in 2016 and is available
             Griya BAF Dana Syariah as a network office that              in all of the Company’s branch offices. The Company
             provides Dana Syariah product services to the public         has obtained permission from the OJK and the National
             also plays an important role in achieving 2023. In           Sharia Council – Indonesian Ulema Council (DSN-
             ensuring that sales targets in each network office can       MUI) for a financing scheme using the Bai’wal Ijarah
             be achieved, sales and sales targets are always set          Muntahiyah Bit Tamlik (IMBT) Agreement at the
             daily down to the Griya level. Special parameters are        beginning of 2016.
             applied to Griya whose sales performance was low,
             and the Griya Head will be given special assistance and      The financing value of the services provided can reach
             coaching until it is able to catch up. This effort can be    100% based on the market value of the motorcycle
             sufficient to provide an increase in sales performance       seen from the condition of the customer’s motorcycle
             in 2023.                                                     at the time of application, the customer’s profile, and
                                                                          the customer’s track record in making payments with a
             Offering and direct sales activities carried out centrally   maximum motorcycle age of 10 years from the year of
             through the telesales center also continued in 2023.         production. Service financing is provided for a maximum
             The Company maximizes sales activities and increases         period of 36 months and service fees are paid every
             productivity in existing network offices. By seeing the      month with a fixed nominal value. During the service
             huge market potential in the JABODETABEK area, the           financing period, the Company holds the BPKB until the
             Company has expanded its service area by placing             service financing period ends. Consumers are required
             several BAF Dana Syariah sales teams in areas that           to have Total Loss Only insurance as long as they still
             are considered to have high potential. In this way, the      have a loan balance. Consumers who can obtain Dana
             Company can always provide solutions and convenience         Syariah facilities are individuals who have income. The
             for people who want to finance BAF Dana Syariah.             current method for disbursing funds can be done in cash




142
Page 143
PT BUSSAN AUTO FINANCE




                                                                                                                      HIGHLIGHTS
                                                                                                                      PERFORMANCE
at the BAF office, via post office or direct transfer to the   Development of Dana Syariah for each period is
customer’s or partner’s bank account. The Company              presented in table below:
obtains consumers from referrals and recommendations
provided by individual agents, corporate agents and
the Company’s business partners. The external agent is
known as Xtra BAF.




                                                                                                                      REPORT
                                                                                                                      MANAGEMENT
                     DESCRIPTION                                       2023                     2022

 Average Financing service Value (Rp million)                          12.8                       11.7

 Average service financing terms (months)                              17.6                       17.0

 Total booking (units)                                               238.,95                   187,921

 Total booking (Rp million)                                       3,078,273                  2,215,187




                                                                                                                      PROFILE
                                                                                                                      CORPORATE
 NPF Ratio (%)                                                         0.96                       0.67




                                                                                                                      DISCUSSION & ANALYSIS
                                                                                                                      MANAGEMENT
                                                                                                                      GOVERNANCE
                                                                                                                      CORPORATE
                                                                                                                      REPORT
                                                                                                                      SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                      143
Page 144
  MANAGEMENT
  DISCUSSION & ANALYSIS




         ELECTRONIC, GADGET, &           In 2023, the Company’s electronics, gadgets & furniture
                                         financing business line changed its strategy to focus on
         FURNITURE FINANCING             comfort and quality of the Company’s loyal consumers.
                                         Despite value of new financing was decreasing compared
         (MULTIPRODUCT)                  to 2022, the change in strategy encouraged positive
                                         impact on improving quality and trust of loyal consumers,
                                         thereby value of the loyal customer financing portfolio
                                         increased to 81% as end of the year from previously
                                         was 63%. Until end of 2023, the Company’s electronics,
                                         gadgets & furniture financing product line recorded new
                                         financing of Rp267.8 billion to more than 55 thousand
                                         consumers.

                                         The Company has carried out additional financing
                                         acquisition channels using digital application channels.
         ONE OF THE FOCUSES IN 2023 IS   Not only has the use of the BAF Mobile digital application
                                         eliminated the use of paper in the financing process,
         TO INCREASE THE REPEAT ORDER    but the use of social media supported by collaboration
         (RO) CUSTOMER DATABASE, AND     with digital partners has also been carried out by the
                                         Company to further ease transactions for the Company’s
         INCREASE COMPANY CONSUMERS      loyal consumers.
         (FLEET) USING THE “CUSTOMER
                                         One of the initiatives being developed in 2023 is the
         FOCUS” CONCEPT.                 addition of the Concent Letter feature, which is a form of
                                         the Company’s openness to consumers, where all forms
                                         of agreements and agreements between the Company
                                         and consumers are contained in this additional feature.
                                         In addition, additional notification feature for consumers
                                         regarding the status of customer applications on the
                                         BAF Mobile application so that consumers can see the
                                         progress of their application status on BAF Mobile
                                         application.

                                         One of the focuses in 2023 is to increase the repeat
                                         order (RO) customer database, and increase company
                                         consumers (Fleet) using the “Customer Focus” concept.
                                         To increase RO consumers so that they remain loyal
                                         ROs to the Company, an approach is taken by providing




144
Page 145
PT BUSSAN AUTO FINANCE




                                                                                                                                    HIGHLIGHTS
                                                                                                                                    PERFORMANCE
benefit information or special programs/promos to the          gadget and furniture (multiproduct) financing facilities
Company’s RO consumers. One strategy to increase               can be reached at national modern outlets such as
company consumers is to continue communicating with            Hypermart, Erafone, Electronic City, Hartono Elektronik,
vendors or principals regarding special programs that are      and local modern outlets as well as traditional outlets.
expected to attract the interest of potential consumers        As of December 31, 2023, multi-product financing were
from this segment. One of the programs is BAF Kilat, a         available at 109 (one hundred and two) networks, 5
new feature that can be used to apply for financing            (five) e-commerce partners, 613 (eight hundred and sixty




                                                                                                                                    REPORT
                                                                                                                                    MANAGEMENT
across all of the Company’s financing channels using           three) national modern outlets, and 2,165 (two thousand
credit limits. Various promos such as Valentine’s promos,      eight hundred and fifty four) traditional outlets. Some
Independence promos have also been carried out as a            of the products financed include electronic equipment,
form of offering attractive promos in the form of low          household items and furniture, gadgets, cellphones
interest, and down payments starting from zero rupiah.         and laptops, bicycles, sports equipment and musical
                                                               instruments. Electronic equipment and mobile phones
The Company has collaborated with almost all modern            are still the financing products most frequently financed
partners in Indonesia where Company’s electronic,              by the Company as depicted in the pie chart as follows:



                                       Multiproduct Financing Composition in 2023




                                                                                                                                    PROFILE
                                                                                                                                    CORPORATE
                                         4.7%
                                                                   Handphone
                                                    28.4%
                               18.1%
                                                                   Electronic

                            3.5%                                   Furniture

                                                                   Others

                                                 45.3%
                                                                   Computer




                                                                                                                                    DISCUSSION & ANALYSIS
                                                                                                                                    MANAGEMENT
Features of the electronics, gadgets and furniture             can further doing transactions up to the approved credit
financing include document requirements for applying           limit at the Company’s business partners using BAF
the financing only using an Identity Card (KTP) and            Mobile.
relatively more affordable installments. The financing
value can be provided with or without down payment             In the future, the Company will strive to develop a digital-
with a minimum value of Rp1 million and a maximum              based and independent acquisition process that does
financing value of Rp15 million. The financing term is         not have dependence on Sales Agents and open digital-
commonly 6 -18 months. Financing credit approval is            based acquisition channels to be able to collaborate with
processed a maximum of 1 (one) day from the time the           digital partners.
customer submits the application. Company consumers
with a good track record can apply for a financing limit via   The following table presents the development of the
the BAF Mobile application before making a transaction         Company’s financing for electronics, gadgets & furniture:
to accelerate the financing approval process. Consumers
                                                                                                                                    GOVERNANCE
                                                                                                                                    CORPORATE




                     DESCRIPTION                                          2023                            2022

 Average financing value (Rp million)                                           4.8                           4.6

 Average effective interest rate (% per annum)                              60.9                            57.4

 Average financing terms (months)                                           10.7                            10.0

 Total booking (units)                                                   55,748                          98,819

 Total booking (Rp million)                                             267,769                         453,566

 NPF Ratio (%)                                                              3.04                            2.27
                                                                                                                                    REPORT
                                                                                                                                    SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                    145
Page 146
      MANAGEMENT
      DISCUSSION & ANALYSIS




             AGRICULTURAL                      As end of 2023, the Company’s agricultural machinery
                                               financing business line succesfully disbursed new
             MACHINERY FINANCING               financing of Rp25.3 billion or decreased 7.4% (YoY)
                                               compared to Rp27.3 billion booked in the same period
                                               in 2022. In terms of units, there was also a 15%
                                               decrease, from 86 units in 2022 to 75 units at the end
                                               of 2023. This decrease was mainly due to the impact
                                               of El Nino which resulted in failure and late harvest
                                               in the agricultural sector and directly proportional to
                                               sales of agricultural machinery (machines).

             IN 2023, THE COMPANY STRIVES TO   Despite a decline in 2023, business development in
                                               the plantation sector remains. This is in line with the
             ACCELERATE THE TECHNOLOGY-        Company’s strategy to expand its business scope not only
             BASED ACQUISITION PROCESS WITH    in agricultural, but also plantation sector. In 2023, the
                                               Company expanded operational area to Palembang and
             A LEVEL OF DATA VALIDITY THAT     Lampung area, especially in agricultural and plantation
                                               sectors. Therefore, as of December 31, 2023, scope of
             IS IN LINE WITH CREDIT ANALYSIS
                                               operational area for agricultural machinery financing
             NEEDS.                            has covered 15 provinces, such as South Sumatera,
                                               Lampung, DKI Jakarta, West Java, Central Java, East
                                               Java, West Kalimantan, Central Kalimantan, East
                                               Kalimantan, South Kalimantan, West Nusa Tenggara,
                                               East Nusa Tenggara, Central Sulawesi, Gorontalo and
                                               South Sulawesi. Various marketing programs were also
                                               provided to consumers, such as payment schemes based
                                               on agricultural and plantation harvest time schemes, as
                                               well as more competitive installments.

                                               In 2023, the Company added collaboration with new
                                               brands such as XCMG, which is a brand that produces
                                               heavy equipment such as excavator, mining truck, motor
                                               grader, compactor, and wheel loader. Following the
                                               collaboration, range of customer choices for agricultural
                                               and plantation machinery needs were added, in addition
                                               to the brands that have collaborated previously, such as
                                               YANMAR, KUBOTA, NEW HOLLAND, and JOHN DEERE,
                                               LOVOL KOTRAK and ZOOMLION.




146
Page 147
PT BUSSAN AUTO FINANCE




                                                                                                                                    HIGHLIGHTS
                                                                                                                                    PERFORMANCE
Since 2022, the Company has opened financing for mini          As the first company in Indonesia to offer retail
excavator products as the market share for this product in     agricultural machinery financing to farmers since 2013,
the plantation sector is fairly significant and resale value   going forward, the Company will continue to expand
of the unit is considered good, while, the financing value     scope of business in agricultural and plantation sectors
is similar to harvesting machines and tractors. Financing      and accelerate processing by improving technology-
for this product has been carried out in the Palembang,        based acquisition systems with a level of data validity
Lampung, East Java and South Kalimantan area. The              that is in line with the credit analysis needs, as well as




                                                                                                                                    REPORT
                                                                                                                                    MANAGEMENT
mini excavator products offered comprising of brands,          advancing acquisitions in plantation sector on Business
such as XCMG, Zoomlion, and Yanmar.                            to Business (B2B) basis by expanding operational area to
                                                               area with high potential in the plantation sector.
In the acquisition process, throughout 2023, the
Company seeks to increase acquisition process by               The Company’s agricultural machinery financing today
improving technology-based acquisition system with a           uses a finance lease scheme for a financing period of
level of data validity that is in line with credit analysis    generally 25 months, 30 months or 36 months with
needs. The acquisition process has been implemented for        ownership option rights at end of the lease period. The
fleet consumers. Several improvements have been made           financing value generally does not exceed 75% of the
to increase the use of digital applications exceeding          machine’s market value. During the financing period,
50% and had a significant impact on the speed of               asset ownership was belong to the Company and will
the acquisition process. The acquisition process, which        be transferred to the customer at end of the financing




                                                                                                                                    PROFILE
                                                                                                                                    CORPORATE
previously processed within 2 days, is now simplified to       period using ownership option rights. The Consumers
5 days. HR aspects have also been improved, especially         are required to have all-risk insurance as long still having
understanding the team at the field to create harmony          loan balance. Damage that occurs during the financing
and insight into customer analysis from both business          period becomes responsibility of the customer. To reduce
and credit sides.                                              financing risk, since 2017, the Company has a very
                                                               selective customer selection strategy to manage credit
In addition, to maintain quality of financing, the             managed.
Company maintains regular selection of financing areas
and dealers based on quality of receivables and various        The following table presents the development of the
other parameters. The Company also implements an               Company’s agricultural machinery financing:
installment payment pattern based on farmers’ cash flow




                                                                                                                                    DISCUSSION & ANALYSIS
                                                                                                                                    MANAGEMENT
predictions during the financing period they agreed, as
well as adjusted to the acquisition process and customer
requirements.



                     DESCRIPTION                                          2023                            2022

 Average financing value (Rp million)                                     337.5                           317.9

 Average effective interest rate (% per annum)                             18.5                            20.0

 Average financing terms (months)                                          34.9                            35.0

 Total booking (units)                                                       75                              86

 Total booking (Rp million)                                              25,310                          27,341
                                                                                                                                    GOVERNANCE
                                                                                                                                    CORPORATE




 NPF Ratio (%)                                                             3.28                            0.57
                                                                                                                                    REPORT
                                                                                                                                    SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                    147
Page 148
  MANAGEMENT
  DISCUSSION & ANALYSIS




         CAR                                As end of 2023, the Company booked total new car
                                            financing of Rp1.3 trillion, decreased by 20.0% (YoY)
         FINANCING                          compared to Rp1.6 trillion booked in 2022. Total unit
                                            distribution also decreased from 8,072 units as of
                                            December 31, 2022 to 6,772 units at the end of 2023.
                                            The decrease was in line with the Company’s attempts
                                            to enhance more selective acquisition process in 2023.
                                            In addition, the challenge faced in 2023 was the
                                            relatively stagnant car sales in Indonesia compared to
                                            the sales in 2022.

         VARIOUS INITIATIVE STRATEGIES      However, various initiative strategies have been
                                            implemented to support the Company’s car financing
         HAVE BEEN IMPLEMENTED TO           business line in 2023. The car financing service
         SUPPORT THE COMPANY’S CAR          network expansion continues to be carried out to
                                            boost the volume of financing disbursement to broader
         FINANCING BUSINESS LINE IN 2023.   community while expanding the coverage area. As part
                                            of business development, in developing new markets
                                            in several regions, the Company also expands sales
                                            network through point of sales by utilizing the branch
                                            offices throughout 2023, especially in Pematang Siantar
                                            and Lahat. By utilizing Sales Hub as the point of sales,
                                            the Company successfully expanded sales coverage
                                            area at such location. Therefore, as of December 31,
                                            2023, the Company’s car financing service network has
                                            reached 19 branches in major cities including Jakarta,
                                            Tangerang, Surabaya, Bandung, Semarang, Yogyakarta,
                                            Medan, Palu, Pekanbaru, Batam, Denpasar, Palembang,
                                            Makassar, Bogor, Padang, Jambi and Samarinda.

                                            In the marketing aspect, the Company also performs
                                            active promotional and sales activities via partner
                                            dealers’ social media channels, including joint
                                            promotional activities through attractive and exclusive
                                            special programs, thereby enabling the Company to
                                            increase and continue to expand all segments of the
                                            new car customer. In 2023, the Company launched




148
Page 149
PT BUSSAN AUTO FINANCE




                                                                                                                              HIGHLIGHTS
                                                                                                                              PERFORMANCE
attractive promotions such as special flower promotions     Process wise, in responding to digitalization, the
at BAF, GIIAS and IIMS anniversary events, as well as       Company has also carried out digital automation in
interest and affordable down payments promotions.           the use of Customer Consent Letters. The Customer
Joint exhibition activities were also carried out with      Consent Letter refers to an agreement to use personal
dealers, such as at the Jakarta Fair which was held from    data which was previously only done manually to digital
June to July 2023 as well as exhibitions and promotions     process via SMS messages to the customers.
with other dealers held in collaboration with BAF Expo




                                                                                                                              REPORT
                                                                                                                              MANAGEMENT
or BAF Fair Event.                                          Car financing is currently focused on purchasing new
                                                            passenger cars of all brands and models, especially
Cross-selling offers to repeat order consumers were also    Japanese brand. The financing value provided generally
consistently done. The contribution of repeat orders        not exceeding 80% of the car’s market value. The
in 2023 compared to 2022 improved from 12.26% to            Company focusing on Japanese car brands through
13.01%.                                                     dealer and e-Commerce partners. The Company’s car
                                                            financing is disbursed with a minimum down payment
In 2023, the Company also maintained the financing of       (DP) of 20% with a maximum term of 5 (five) years.
electric and hybrid cars as a means of the Company’s        The financing is disbursed with fixed loan interest rate
support for sustainable finance. This initiative has been   for a maximum term of up to 60 months with monthly
disclosed in the Sustainability Report segment.             installment payments. During the financing period, the
                                                            Company keeps the collateral in form of BPKB from the




                                                                                                                              PROFILE
                                                                                                                              CORPORATE
The Company and dealers partnership network is also         car financed until the repayment is done under fiduciary
furtner expanded. The Company has added new car             agreement. The customers are required to have total
dealers that have never collaborated with the Company       loss only and/or all risks insurance during the financing
before, including reaching out to collaborate with new      period.
car dealers, especially Toyota brand dealer groups in
Sumatra area, Honda in Jabodetabek area in line with        In the future, the Company will enhance our focus on
many new models of Toyota & Honda which were                electric vehicle segment to support the government
released in 2023. As of December 31, 2023, the total        programs, including to focus on LCGC and LMPV
dealer partnership achieved 831 or increased by 35%         passenger vehicle segments. The Company will also
from 617 dealers at the end of 2022, while collaboration    continue market expansion and coverage area, including
with Brand Holder Sole Agents (ATPM) also increased         various regions as part of business development for




                                                                                                                              DISCUSSION & ANALYSIS
                                                                                                                              MANAGEMENT
from previously only DFSK and Wuling to DFSK , Wuling,      the Company’s car financing business lines, such
and Chery.                                                  as Kalimantan and Sulawesi areas. Repeat order
                                                            contributions will be optimized from the Company’s
As an effort to improve financing services to the           existing customers, through cross-sell, as well as
productive sector through the disbursement of               strengthening partnerships further with official dealers
commercial vehicle financing, the Company consistently      and digital partners.
continues to provide productive financing services,
especially for passenger vehicles.                          The Company’s car financing growth as of December
                                                            31, 2023 is presented in table below:



                    DESCRIPTION                                       2023                          2022

 Average financing value (Rp million)                                192.8                            200.8

 Average effective interest rate (% per annum)                        13.0                              12.9
                                                                                                                              GOVERNANCE
                                                                                                                              CORPORATE




 Average financing terms (months)                                     57.9                              56.0

 Total booking (units)                                               6,772                            8,072

 Total booking (Rp million)                                     1,293,995                         1,617,411

 NPF Ratio (%)                                                        0.60                              0.31
                                                                                                                              REPORT
                                                                                                                              SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                              149
Page 150
      MANAGEMENT
      DISCUSSION & ANALYSIS




             BAF                                Since launched in 2022, BAF PraDana business line has
                                                successfully disbursed accumulative financing of more
             PRADANA                            than Rp53 billion to more than 25,000 consumers. The
                                                figure is considered a good achievement in the first
                                                two years after the launching and will be consistently
                                                developed for various improvements.

                                                In 2023, the Company maintained Special Product
                                                Offering (sharia-based productive financing) to Repeat
                                                Order (RO) consumers with good payment history.
                                                Various promotions were also carried out through the
             SINCE LAUNCHED IN 2022, BAF        Company’s social media and partner social media with
                                                the same target market. To expand market coverage,
             PRADANA BUSINESS LINE HAS          the use of digital media and social media aims to build
             SUCCESSFULLY DISBURSED             communication related to products and brands.

             ACCUMULATIVE FINANCING OF          Implementation of the Referral program in
                                                collaboration with BAF Mobile to maximize the use of
             MORE THAN RP53 BILLION TO 25,000
                                                BAF Points by consumers. Currently, the Company is
             CONSUMERS.                         preparing for a more massive expansion of cooperation
                                                with partners in the digital ecosystem. In the future,
                                                BAF PraDana marketing will continue to be active in
                                                acquiring the Company’s existing customers. Activity
                                                Marketing will also focus on engaging consumers
                                                activation       aimed         at      new      consumers
                                                through the digital ecosystem and various social media
                                                channels. In addition, the Company also provides
                                                education in form of assistance for articles submitted
                                                to BAF PraDana consumers and the society as a form
                                                support for the financial literacy program by the Financial
                                                Services Authority (OJK). Through this education, the
                                                consumers are expected to receive additional related
                                                inspiration business development through productive
                                                financing.

                                                The Company is currently preparing a further massive
                                                expansion of cooperation with partners via digital




150
Page 151
PT BUSSAN AUTO FINANCE




                                                                                                                                  HIGHLIGHTS
                                                                                                                                  PERFORMANCE
ecosystem. Going forward, marketing activity for BAF         Development of this new financing product becomes
PraDana will stay active in acquiring the Company’s          a manifestation of diversification strategy that the
existing customers. The marketing activities will also       Company consistently carry out, as well as the Company’s
focus on organizing customer activation targeting            contribution to the development of micro businesses in
new consumers via digital ecosystem and social media         Indonesia in supporting the creation of broader financial
channels.                                                    inclusion for society, especially for micro business actors.
                                                             BAF PraDana is a solution provided by the Company




                                                                                                                                  REPORT
                                                                                                                                  MANAGEMENT
BAF PraDana is a financing product that is dedicated for     to answer consumers’ needs for additional productive
micro business players to provide productive loans with      funding for business development with financing values
Sharia principles (Mudharabah Agreement) for business        from 1 million to 5 million Rupiah and maximum term
capital with affordable financing yield. Since 2022, BAF     of 6 months. The consumers are allowed to submit
PraDana products has been broadly implemented and            their productive funding application via BAF Mobile
fully digital via BAF Mobile with the main target market     application. The proceeds can be disbursed immediately
including the Company’s existing or Repeat Order (RO)        to the customer’s account after the application is
and potential new consumers with good credit track           approved.
record. The product is designed as a product using digital
channel to be accessed broadly by potential consumers as     The following table presents progress of BAF PraDana’s
well as provides convenience, speed, security and comfort    achievements in 2023:
starting from the application process, disbursement to




                                                                                                                                  PROFILE
                                                                                                                                  CORPORATE
payment/settlement.



                     DESCRIPTION                                        2023                            2022

 Average financing value (Rp million)                                      1.7                             2.0

 Average effective interest rate (% per annum)                          124.1                           127.6

 Average financing terms (months)                                          5.1                             5.0




                                                                                                                                  DISCUSSION & ANALYSIS
                                                                                                                                  MANAGEMENT
 Total booking (units)                                                  7,745                          19,844

 Total booking (Rp million)                                            13,081                          40,064




                                                                                                                                  GOVERNANCE
                                                                                                                                  CORPORATE
                                                                                                                                  REPORT
                                                                                                                                  SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                  151
Page 152
      MANAGEMENT
      DISCUSSION & ANALYSIS




             BAF                              In 2023, BAF AdiDana’s financing distribution reached
                                              Rp14.7 billion or an increased by 37.5% (YoY) compared
             ADIDANA                          to Rp10.7 billion in 2022. This achievement was
                                              contributed from various initiatives and strategies carried
                                              out throughout 2023. Although BAF AdiDana product
                                              sales still cover Jabodetabek area, the Company’s efforts
                                              to perform products inclusion in Jabodetabek area were
                                              implemented appropriately.

                                              One of the initiatives made in 2023 was
                                              by     utilizing   agent      contributions.   Strategy
             ONE OF THE INITIATIVES MADE      in improving agent performance in addition to
                                              maintain good relations with existing well-experienced
             IN 2023 WAS BY UTILIZING AGENT   agents, also with the implementation of Fresh Agent
             CONTRIBUTIONS.                   Recruitment program, through this program, via BAF
                                              AdiDana team, the Company provides education to
                                              the public, especially the MSMEs who are not yet
                                              familiar with business opportunities as an agent
                                              by acquiring attractive commissions. Implementation of
                                              Fresh Agent Recruitment program is a long-term program,
                                              within the same year, contribution from the new Fresh
                                              Agent Recruitment approximately 8% of the total agent
                                              contribution. Overall, in 2023 the agent’s contribution
                                              reached 86.57% new financing disbursement.

                                              In addition, the Company is also starting to expand orders
                                              through employee referrals. Efforts to improve employee
                                              referral performance include providing intensive outreach
                                              to all Company employees in the Jabodetabek area by
                                              offering attractive incentive programs.

                                              Marketing wise, the Company continues to actively
                                              promote through communication media owned by the
                                              Company such as social media (WhatsApp, Facebook,
                                              Instagram, TikTok) and other social media to public, as
                                              well as the Company’s network offices/service offices.




152
Page 153
PT BUSSAN AUTO FINANCE




                                                                                                                             HIGHLIGHTS
                                                                                                                             PERFORMANCE
Internally, the Company continuously builds systems        million per debtor with a financing period of one year to
to accelerate acquisition process as well as to support    five years.
performance and productivity of manpower in BAF
AdiDana business line.                                     Going forward, the Company will selectively develop
                                                           new areas. The company will also implement supporting
BAF AdiDana is a business capital facility financing       systems to accelerate processes and services to
product targeting business or productive purposes,         prospective debtors and work partners. Increasing




                                                                                                                             REPORT
                                                                                                                             MANAGEMENT
and may also be disbursed in form of fund facilities for   promotions via digital accompanied by programs for
consumptive use with the guarantee of Certificate of       consumers and work partners will continue to be carried
Ownership or Title Certificate document Building Use.      out to optimize distribution of new financing to people
Referring to Financial Services Authority Regulation       in need.
Number 35/POJK.05/2018 concerning Implementation
of Financing Company Business, BAF AdiDana offers          The following table presents development of AdiDana’s
financing value of Rp50 million to a maximum of Rp500      BAF for each period:



                    DESCRIPTION                                      2023                          2022

 Average financing value (Rp million)                                143.8                          161.7




                                                                                                                             PROFILE
                                                                                                                             CORPORATE
 Average effective interest rate (% per annum)                         20.7                          20.9

 Average financing terms (months)                                      44.9                          48.0

 Total booking (units)                                                 102                             66

 Total booking (Rp million)                                         14,672                         10,672




                                                                                                                             DISCUSSION & ANALYSIS
                                                                                                                             MANAGEMENT
                                                                                                                             GOVERNANCE
                                                                                                                             CORPORATE
                                                                                                                             REPORT
                                                                                                                             SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                             153
Page 154
      MANAGEMENT
      DISCUSSION & ANALYSIS




                         MARKETING &
                         OPERATIONAL




                                               Marketing activities has an important role in maintaining
                                               the Company’s position amidst competition in the digital
                                               era. To support product sales activities, the Company
             MARKETING ACTIVITIES HAS AN       strives to carry out various marketing strategies and
             IMPORTANT ROLE IN MAINTAINING     activities consistently to continuously optimize customer
                                               experience (CX) development as an important part of
             THE COMPANY’S POSITION AMIDST     the Company’s marketing strategy in the digital era to
             COMPETITION IN THE DIGITAL ERA.   strengthen brand equity and increase the contribution
                                               of repeat orders (RO) by utilizing Customer Relationship
                                               Management (CRM) system and data-based personalized
                                               service to strengthen the brand image of the Company’s
                                               financing products, while maintaining and increasing
                                               customer trust.


                                                    Marketing Strategy in 2023
                                               In 2023, in addition to offline activities, the Company
                                               was also increasing online marketing activities to follow
                                               the trends in marketing sector and expand the reach of
                                               potential customers. Online sales marketing activities are




154
Page 155
PT BUSSAN AUTO FINANCE




                                                                                                                                   HIGHLIGHTS
                                                                                                                                   PERFORMANCE
carried out in collaboration with the business digital team   organized by OJK and Multifinance Day 2023 held by the
through the Company’s various official digital platforms.     Association of Indonesian Financing Companies (APPI)
The specific marketing strategy for new Yamaha                to increase public financial inclusion. Inclusion activities
motorcycle financing is always adapted to PT Yamaha           are also supported by various marketing publications
Motor Indonesia Manufacturing’s strategy, including           carried out using the Company’s social media, through
collaborating with official dealers.                          the Company’s website, as well as through partners
                                                              or digital partners. Apart from that, the Company




                                                                                                                                   REPORT
                                                                                                                                   MANAGEMENT
In 2023, the Company organized 33 BAF Expo in                 also actively participates in the Gaikindo Indonesia
5 (five) different locations, such as in Pontianak,           International Auto Show as well as various exhibitions
Surabaya, Pekanbaru, Makassar, Bekasi, Jakarta, Tegal,        and promotions with other dealers. The promotions
Palembang, Palu, Samarinda, Padang, Luwuk, Cianjur,           provided include down payment discounts, installment
Jambi, Tangerang , Garut and Bandung. This activity is        discounts, low down payments, economical installments,
one of the offline marketing activities carried out by the    and low interest. Innovation continues to be carried out
company to reach people who need services.                    so that the promotions or sales activities carried out can
                                                              be of interest to the wider community and ultimately
The Company also participated in 2023 Financial               meet the targets that have been set.
Inclusion Month activities and Financial Expo (FinExpo)




                                                                                                                                   PROFILE
                                                                                                                                   CORPORATE
                                                                                                                                   DISCUSSION & ANALYSIS
                                                                                                                                   MANAGEMENT

In 2023, BAF Festival was held in periods of a certain        There are 3 (three) new Yamaha Fazzio Neo motorcycle
duration, including during the Eid celebrations, BAF          and 3 (three) Yamaha Grand Filano Neo motorcycle,
                                                                                                                                   GOVERNANCE
                                                                                                                                   CORPORATE




Anniversary in September in BAF 26th Anniversary, and         as well as 20 precious metals worth 5 grams each for
various promotions at the end of the year. Apart from         consumers who apply for new financing approved by
that, the Company also has the BAF Festival which             the Company. This promo also applies to applications
offers various attractive promotions on the Company’s         for financing for New Yamaha Motorcycle, Quality Used
financing products. Information on these promotions           Motorcycle, New Cars, Electronics, Gadgets & Furniture,
can be accessed via the website, social media, or via the     as well as BAF Dana Syariah. The company also presents
BAF Mobile.                                                   the #SemarakBAF26Tahun Promo with various other
                                                              attractive offers. The #SemarakBAF26Tahun promo is
As an expression of gratitude for the support of loyal        valid for financing applications via the Company’s digital
consumers who have with the Company’s journey for 26          platform, the Company’s dealers/partners, as well as the
years, the Company is offering various attractive prizes      Company’s network offices.
and promotions. Consumers in #CicilAjadiBAF program
during the period 1 – 30 September 2023 received the          The company continues to actively offer special programs
opportunity to win attractive prizes with a total prize       for repeat order consumers. One of the programs is
                                                                                                                                   REPORT
                                                                                                                                   SUSTAINABILITY




of 6 (six) new Yamaha motorcycle and a total prize of         carried out in the new Yamaha motorcycle financing
20 (twenty) precious metals (worth 5 grams each).             business line through the Spontan (Instant Motorcycle)




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                   155
Page 156
      MANAGEMENT
      DISCUSSION & ANALYSIS




             program by offering it directly to loyal consumers with        this tagline is one way to make it easier for the public and
             good payment history conditions through collaboration          consumers to recognize and emphasize the quality of the
             with the dealer backbone. Various repeat order programs        Company’s brand. For the Company, this tagline helps
             are also carried out in other financing product lines. Until   increase awareness while strengthening the Company’s
             the end of 2023, the contribution of consumers from            positioning strategy with other competitors. The use of
             repeat orders for all financing products to the Company’s      a tagline other than “Quick Process of Fast Installments”
             total new financing is 41.1%.                                  also addresses “Whatever Your Needs #CicilAjadiBAF”
                                                                            as well as optimizing BAF Mobile with the campaign
             Specifically for Dana Syariah products, to assist in           #PakaiBAFMobileAja
             introducing and marketing its products, the Company
             involves individual agents, corporate agents and the           In 2023, brand awareness activities continued through
             Company’s business partners as intermediaries known as         the Company’s website and various Company social
             Xtra BAF agents. As of 31 December 2023, the number            media. The Company realizes that social media is
             of Xtra BAF Agents has reached around 53,189 people            developing rapidly in the digital era, therefore the
             spread across various locations in Indonesia. This number      Company is here to be closer to consumers and
             has significantly increased by 20.9% (YoY) compared            society. The Company has two active Facebook Fan
             to 2022. However, the Company continues to strive to           Page accounts, namely the Fan Page account (@
             increase the productivity of Xtra BAF Agents, namely by        BussanAutoFinanceIndonesia) which is used to provide
             carrying out several activities to increase the contribution   all the latest information about the Company such as
             of Xtra BAF, including: giving rewards to Xtra BAF agents,     products, promos and events and the Fan Page account
             organizing webinars for Xtra BAF which are held once a         (@BAF.Indonesia) which is used to provide information
             month, National in the Company’s network offices and           about the Company, CSR, and Company events. In 2023
             the creation of collaboration on several new partnerships.     the BAF Facebook Fan Page account has been merged
                                                                            into @BAF.Indonesia. The TikTok account @bafindonesia
                                                                            has also become a communication channel and in 2023
                  Marketing Communication                                   we initiated TikTok Live with named Ngabuburit Bareng
                                                                            BAF and BAF Fun Chatting program to increase brand
             The entire Company’s marketing communications                  awareness and brand recognition, especially targeting
             activities are supported by the Communication &                Gen Z and Millennials. The company also has a YouTube
             Branding Division to maintain and ensure that the              account BAF @bafindonesia which provides all the latest
             messages conveyed by various marketing channels are            information to consumers.
             consistent, targeted and emphasize the Company’s
             brand. In 2023 there was a change in the name of the
             division from the previous Marketing Communication &                Focus on Future Marketing
             Branding Division to Communication & Branding.                      Communications
             Several other initiatives in implementing sustainable          The Company’s long-term marketing strategy will
             marketing communications strategy in 2023 included             continue to be improved to produce uniqueness so that
             solid collaboration and integration with all business          it becomes a differentiator compared to competitors.
             and support units to support business improvement, as          Various strategies will continue to be optimized, including:
             well as maximizing websites and social media functions         increasing in-depth understanding of customer needs;
             as main information channels. Integrated marketing             customer experience transformation; and strengthening
             and communication strategies, as well as promotional           the reliability of the Company’s customer service. With
             activities, are continuously carried out so that consumers     this long-term strategy, the Company can consistently
             and the public can get the latest and relevant information     provide products and services that increasingly have
             regarding the Company’s products and services.                 added value and are competitive to new consumers,
                                                                            including loyal consumers, thereby increasing the
             Optimizing online communications is carried out by             contribution of repeat orders.
             optimizing the Company’s media channels such as the
             Company’s website and social media accounts. From              The Company always innovates to present marketing
             the external side, the Company delivers products via           strategies that allow achieve the Company’s sales
             above the line (ATL), namely through conventional              and inclusion targets. The Company continues various
             media such as magazines, outdoor media or out-of-              promotional programs, events and other marketing
             home (OOH) advertising, and digital media. Apart from          programs by utilizing various online/digital platforms,
             ATL, communication strategies are also delivered below         including printed and out of home media which will
             the line (BTL) in the form of corporate events & sales         be reviewed according to marketing potential and
             marketing events.                                              objectives. In addition, the Company strives to improve
                                                                            omni-channel customer service through the BAF Mobile
             All of the Company’s communication materials                   application, Live Chat via Line, WhatsApp Business, BAF
             consistently use the tagline “Fast Process, Accurate           Care, e-mail and other official Company social media.
             Installments” with the hashtag #CicilAjadiBAF. The use of




156
Page 157
PT BUSSAN AUTO FINANCE




                                                                                                                              HIGHLIGHTS
                                                                                                                              PERFORMANCE
     Optimization of BAF Mobile
One of the supporting applications in the marketing        In 2023, the Company continued to develop BAF Mobile,
process is BAF Mobile which is available on the App        where consumers can exchange vouchers on BAF mobile
Store and Google Play Store. BAF Mobile makes it easy      using BAF points. BAF Points are reward points that can
for users to access various Company services, starting     be used to cut installments in the BAF Mobile application.




                                                                                                                              REPORT
                                                                                                                              MANAGEMENT
from financing applications & simulations, as well as      The company also periodically rejuvenates the user
information on financing tenors, contract numbers, due     interface, including refreshing the appearance of the BAF
dates, online BPKB reservations and collections, to how    Mobile application and re-grouping menus and features
to pay the Company’s installments through various          in BAF Mobile. Apart from that, several additional
payment channels. Not only that, BAF Mobile users          features have been implemented, such as Live Chat, Help
can also get information and interesting promotions        Center menu, Dana Syariah Digitalization (DASYAT), and
that are currently taking place at the Company. In one     other feature developments aimed at making consumers
application, users can experience the convenience of the   comfortable in using BAF Mobile so that they can
Company’s services anywhere and anytime.                   optimize their access to the Company’s services digitally.




                                                                                                                              PROFILE
                                                                                                                              CORPORATE
                                                                                                                              DISCUSSION & ANALYSIS
                                                                                                                              MANAGEMENT
                                                                                                                              GOVERNANCE
                                                                                                                              CORPORATE




                                                           company is considered capable of maintaining brand
     Marketing Awards in 2023                              equity, maintaining the company’s image, and able
                                                           to create long-term loyalty. This is the third year the
In 2023, the Company received 10 awards for the success    Company has received the TOP BRAND Award for the
of its marketing communications strategy. In February      same category. TOP BRAND is a prestigious award for a
2023, Marketing Magazine and Frontier Group awarded        brand awarded by MARKETING Magazine based on the
the Company in the 2023 Top Brand Award for “the 2         results of national research by Frontier Group in 15 big
Wheels Automotive Leasing Company Category”. The           cities in Indonesia.
                                                                                                                              REPORT
                                                                                                                              SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                              157
Page 158
      MANAGEMENT
      DISCUSSION & ANALYSIS




             In addition, the Company received the 2023 marketing         was received by BAF for winning 3 awards during 2022
             Excellence Awards from Marketing-Interactive with the        which were organized by INFOBRAND.ID together with
             title “Excellence in Media Strategy: #CicilAjadiBAF”. SWA    the independent survey institute TRAS N CO Indonesia
             Magazine also awarded “the Indonesia Digital Marketing       related to brand awareness (“Indonesia Digital Popular
             Champion 2023” to the Company with the title “Very           Brand Award 2022” for the Car Financing Category,
             Good” and “the Indonesia Best Brand Award 2023” to           “Indonesia Digital Popular Brand Award 2022” for the
             the Company with the title “Platinum” for “the Yamaha        Credit Category Electronic Goods), and “the 2022 Top
             Motorcycle Ownership Credit Category”. This is based on      Executive Award” won by the President Director of BAF,
             the results of a brand performance survey conducted by       Ms. Lynn Ramli.
             MARS Digital Indonesia in 7 major cities in Indonesia.
             This award is a form of appreciation for the Company         The awards are given as a form of appreciation to the
             which is considered capable of meeting community             Company which is considered successful in implementing
             expectations in getting the best quality and service for     a complete, interactive, and targeted digital marketing
             Yamaha motorcycle ownership credit.                          strategy to have a sustainable existence in the world
                                                                          of digital marketing. The awards mentioned above
             The Indonesia Brand Champions 2023 award from                encourage the Company to continue providing services
             Infobrand was also given to the Company. This award          and improve the Company’s brand positioning.




                                                                          of new financing. Therefore, in 2023, as an effort to
                  Market Share (BAF Share)                                maintain BAF share, the Company is implementing
                                                                          strategies, including focusing on areas that contribute to
             The Company is the only company that focuses on              BAF Share as well as focusing on dealers by considering
             financing new Yamaha brand motorcycle in Indonesia. In       the volume and quality of financing.
             2023, new Yamaha motorcycle financing is still the largest
             contributor to the Company’s financing portfolio with        Financial wise, the Company’s total assets in 2023 were
             market share (BAF Share) of overall Yamaha motorcycle        recorded at 2.6% of financing industry assets, while the
             sales as of 31 December 2023 reaching 19.9%. BAF             Company’s financing receivables recorded financing
             Share is calculated from the total sales of new Yamaha       receivables of 2.7% of industrial financing receivables.
             motorcycle by the Company towards the total sales            This market share is considered significant considering
             of new Yamaha motorcycle. BAF Share experienced a            more than 200 financing companies active in Indonesia
             decline due to continued disruption in the supply of         until December 2023.
             vehicle unit stock due to the scarcity of semiconductor
             chips, especially for Yamaha motorcycle (premium             Information regarding the Company’s market share in
             models), especially in the first semester of 2023. This      the last 2 years is as follows:
             has had quite an impact on the Company’s distribution




158
Page 159
PT BUSSAN AUTO FINANCE




                                                                                                                                       HIGHLIGHTS
                                                                                                                                       PERFORMANCE
                    DESCRIPTION                                                             2023                  2022

 Total Assets                           Industry (Rp billion)                             552,880               487,919

                                        The Company (Rp billion)                            14,102                13,920

                                        Market Share to Industry (%)                            2.6                   2.9




                                                                                                                                       REPORT
                                                                                                                                       MANAGEMENT
 Financing Receivables – Net            Industry (Rp billion)                             470,860               415,864

                                        The Company (Rp billion)                            12,840                12,713

                                        Market Share to Industry (%)                            2.7                   3.1

 BAF Share                              The Company (%)                                       19.9                  22.1




                                                                                                                                       PROFILE
                                                                                                                                       CORPORATE
                                                                Surabaya, Semarang, Makassar and Medan. Until this
     Marketing and Service Networks                             report was written, the Company also added regional
                                                                offices in Palembang, Samarinda and Manado. Regional
In 2023, the Company aligned its service/marketing              offices have better service standards where consumers
network strategy and decisions to register, close and           can make installment payments & settlements, collect
change addresses which are still influenced by various          BPKB, as well as access to get new financing for the
conditions. There are establishments that are adjusted          products currently owned by the Company. Consumers
to the Company’s internal considerations including              also get facilities with a better level of comfort considering
Management considerations as well as external                   that regional offices are located in big cities in Indonesia.
considerations including economic conditions including          With this regional office, the Company hopes to be able
existing market opportunities. Address changes have             to serve consumers more quickly and easily in obtaining
been carried out both conventionally and sharia in




                                                                                                                                       DISCUSSION & ANALYSIS
                                                                                                                                       MANAGEMENT
                                                                financing services, where employees on duty, especially
connection with cost efficiency considerations, so the          in regional offices, have been equipped with mobile-
Company decided to extend the lease for some branch             based applications to facilitate service to consumers.
offices. The Company has also closed several conventional
and Sharia branch offices, including closing KSKC in line       In reaching certain areas, the Company provides
with the network strategy implemented by the Company.           scattered service units to facilitate access for consumers
                                                                to obtain the Company’s financing services more easily
In developing new markets in several regions as part of         and quickly, known as KSKC. Therefore, until the end
business development, the car financing service continues       of December 2023 the Company operates to serve
to expand its sales network through point of sales by           consumers through a network of branch offices (KC) and
utilizing the presence of branch offices throughout 2023,       offices other than branch offices (KSKC) spread across
especially in Pematang Siantar and Lahat. By utilizing          various locations in Indonesia, consisting of 161 (one
the Sales Hub as a point of sales, the Company can              hundred and sixty one) branch offices and 84 (eight
expand its sales coverage area at that location. Thus,          twenty-four) offices other than branch offices.
as of December 31, 2023, the Company’s car financing
service network has reached 19 branches in major cities         The Company’s marketing and service network is
including Jakarta, Tangerang, Surabaya, Bandung,                categorized into 20 marketing areas, namely Bali, Bangka,
                                                                                                                                       GOVERNANCE
                                                                                                                                       CORPORATE




Semarang, Yogyakarta, Medan, Palu, Pekanbaru, Batam,            Jabodetabekser, Jambi, West Java, Central Java, East
Denpasar, Palembang, Makassar, Bogor, Padang, Jambi             Java, Kalimantan, Lampung, Madiun Kediri, Makassar,
and Samarinda.                                                  Manado, NTB, NTT, Padang, Palembang, Palu, Papua,
                                                                Pontianak, and North Sumatra & Riau. The following
As part of and to improve excellent service, the Company        graph presents details of the Company’s branch offices
has regional offices spread across several large cities         and houses based on marketing areas as of December
which are provincial capitals, namely Jakarta, Bandung,         31, 2023 are as follows:
                                                                                                                                       REPORT
                                                                                                                                       SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                       159
Page 160
  MANAGEMENT
  DISCUSSION & ANALYSIS




         In deciding the opening of a network office, the Company
         always considers market potential, supervision needs                Operational
         and dealer demand. In general, the Company will open
         small network offices in the initial stages because the        In maintaining the Company’s business performance,
         investment costs are relatively lower, and the capacity        including ensuring that the Company’s operations
         will gradually increase along with the growth in the           continue well at the head office and in network offices,
         number of consumers and sales volume. The company              the Company has carried out various strategic initiatives
         can also immediately open a full-scale network office if       in the operational sector in order to support the
         it is assessed that there is significant potential demand.     Company’s strategic policies comprehensively starting
         The opening of a large-scale network office will be            from systems, human resources and organization.
         equipped with a complete organizational structure to           Supported by Operation Strategic & Development and
         facilitate supervision over an area and provide better         Operation Support Divisions as well as the collaboration
         services for consumers. Dealer partners are also eligible      of various divisions, various strategic initiatives in the
         to submit requests to open network offices which will be       operational sector have been carried out to maintain the
         reviewed by the marketing team both in terms of market         Company’s business performance and competitiveness
         potential and dealer commitment.                               in the financing industry.

         In the future, the Company plans to open KSKCs                 In order to streamline business processes, the Company
         spread across Kalimantan, Sulawesi and East Java.              has centralized operations both through back office
         This is expected to be able to contribute more to the          centralization for operational activities and credit
         achievement of new financing distribution. The Company         administration as well as transactions through branch
         also plans to change addresses in line with the end of         offices, such as centralizing document delivery to
         the lease period for several network offices in the form       consumers, centralizing the credit analysis process (credit
         of the Company’s branch offices and offices other than         center), and others. The entire application approval
         branch offices. For closure, the Company plans to close        process is centralized at the Company’s credit center
         the Pamekasan branch office. Plans for developing and/         which is currently located in 2 (two) locations, namely
         or changing the Company’s office network will always be        Jakarta and Surabaya. The operation of this Credit Center
         adjusted to developments in the company’s conditions           is aimed at speeding up the credit approval process while
         in 2024 by prioritizing digitalization and centralization in   improving credit quality.
         providing the best service to consumers.
                                                                        In order to speed up the process and facilitate control
         The focus of the network strategy in 2024 is to maximize       regarding the booking process, the Company has also
         the potential of existing network offices in providing         implemented national centralization of the booking
         the best service to consumers according to the needs           process which is carried out at the Company’s head
         of existing products and providing the best service to         office for financing products such as New Yamaha
         consumers. The company will also optimize digitalization       Motorcycle Financing, Used Motorcycle Financing and
         in providing the best service to consumers. BAF Verse,         Car Financing. Centralization of document delivery in the
         which was developed in 2023, will also continue in 2024        form of welcome letters to new consumers, operational
         to provide various conveniences that can be accessed           warning letters and obligation settlement notification
         by consumers, such as products and services, financing         letters (SPPK) has also been centralized at the head
         information and other features.                                office, where the process of sending these documents is
                                                                        carried out using digital media (WhatsApp Business and



160
Page 161
PT BUSSAN AUTO FINANCE




                                                                                                                              HIGHLIGHTS
                                                                                                                              PERFORMANCE
email). Apart from that, monitoring of billing activities   •   e-wallet payments can be made to Ovo, Dana, LinkAja
has also been carried out using the Mobile Collection       •   Cash through the Company’s collection officer
System (MCS) which is also used for receiving installment
payments which has been integrated with the core            In 2023, payment receipts via online payments reached
system.                                                     84.7% or have increased compared to year 2022 which
                                                            only reached 82.8%.
The company is also responding to digitalization by




                                                                                                                              REPORT
                                                                                                                              MANAGEMENT
optimizing the receipt of installment payments from         The process of retrieving BPKB is now also easier with
consumers via online such as virtual bank accounts,         the availability of 2 features that can be done via the
payments via mobile and internet banking, as well           BAF Mobile application. First, queuing to collect BPKB at
as payments via e-commerce. To date, the activity           network offices can be done via the online reservation
of receiving installment payments from consumers is         feature via the BAF Mobile application. So that consumers
through several methods through:                            can know the probability of collecting BPKB on the day
• branch offices and PT Pos Indonesia;                      and time that has been recorded so that they don’t have
• payment agents who have collaborations with               to queue for long. Second, sending/delivery of BPKB can
    companies such as BCA, BNI, BRI, Mandiri, Bank          be done via the BPKB Via Courier feature where BPKB will
    Papua, Tektaya, Fastpay, Arindo, Uang Kita,             be sent to the customer’s home address and the delivery
• retail trade outlets such as Alfamart, Alfamidi, Alfa     process can be monitored by the customer.
    Express, Indomaret, Dan+Dan, Ceriamart




                                                                                                                              PROFILE
                                                                                                                              CORPORATE
• e-Commerce such as Tokopedia and Bukalapak and
    Shopee




                                                                                                                              DISCUSSION & ANALYSIS
                                                                                                                              MANAGEMENT
                                                                                                                              GOVERNANCE
                                                                                                                              CORPORATE
                                                                                                                              REPORT
                                                                                                                              SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                              161
Page 162
      MANAGEMENT
      DISCUSSION & ANALYSIS




                         HUMAN
                         RESOURCES




                                              Solid cooperation and employee involvement become
                                              essential aspects in achieving the Company’s
                                              performance. In 2023, various initiatives have been
             SOLID COOPERATION AND            carried out to encourage employee involvement through
             EMPLOYEE INVOLVEMENT BECOME      various employee activities. One of the initiatives to build
                                              more harmonious relationship between the Company
             ESSENTIAL ASPECTS IN ACHIEVING   and employees is to maintain Fit for Growth program
             THE COMPANY’S PERFORMANCE.       that was initiated in 2022. In 2023, Fit for Growth
                                              focuses on the Physical & Emotional Health program
                                              aiming to ensure that all employees, consumers, and
                                              partners businesses can grow and be healthy together
                                              for a better life.

                                              The Physical & Emotional Health Program is centered to
                                              improve physical and emotional health of employees as
                                              presented in initiatives, as follows:




162
Page 163
PT BUSSAN AUTO FINANCE




                                                                                                                             HIGHLIGHTS
                                                                                                                             PERFORMANCE
                                                                                                                             REPORT
                                                                                                                             MANAGEMENT
Pojok Kayuh                            Pojok Sehat                            Pojok Curhat
Inviting head office and branch        Inviting all employees to              Inviting employees to concern
office employees to actively           concern physical health                mental health of employees,
move by walking/running/               through education and the use          co-workers and families through
cycling.                               of health testing equipment            various educational webinar
                                       (glucometers and tensimeters)          programs and psychological
                                       available in every Company             assistance by professional
                                       office.                                psychologists for employees in
                                                                              need.




                                                                                                                             PROFILE
                                                                                                                             CORPORATE
In addition, following the lifting of COVID-19            as strategic initiatives in managing succession of
pandemic status, the Company has reactivated BAF          key positions and ensuring availability of talented
Club comprising of various sports activities such as      employees based on the Company’s needs. Therefore,
Badminton Club, Futsal Club, Exercises Club (Yoga,        the Company carries out a selective recruitment process,
Zumba, Poundfit), E-Sport Club and Music Club. Details    a comprehensive selection system, and adequate
of employee activities can be seen in the Company’s       infrastructure to attract the best talent. The recruitment
sustainability report.                                    process carried out by the Company in HR fulfillment
                                                          process is carried out both from internal (high achieving




                                                                                                                             DISCUSSION & ANALYSIS
                                                                                                                             MANAGEMENT
In 2023, COVID-19 pandemic status has been officially     employees) and external sources. One of the external
revoked by the Government. However, implementation        recruitments in 2023 is to keep developing young
of the Work From Home (WFH) and Work From Office          talents through management trainee programs in
(WFO) work systems were continued, especially at          several aspects, such as:
Head Office by ensuring that operational activities was   • Technology Associate Program with technology
running properly according to applicable regulations.         specialization for 1 person
Implementation of this work system is always be           • Management Development Program with 2 people
evaluated and adjusted to current developments.               specializing in data analytics
                                                          • Management Development Program with 2 people
In line with the commitment to create a productive            specializing in Collection
work environment and better employee engagement,
as end of 2023, the Company organized another             In building strategic collaboration with higher education
Employee Engagement Survey on 1 November 2023             institutions to have easier access the best talents from
– 3 November 2023 involving all of the Company’s          universities in Indonesia, especially to fulfil manpower
permanent employees. The survey aimed to examine          needs in business and business support areas, the
level of cooperation between units within the Company,    Company has collaborated with leading educational
                                                                                                                             GOVERNANCE
                                                                                                                             CORPORATE



satisfaction, and other things, as a continuous           institutions. Such collaboration includes job fair and
improvement effort to increase employee engagement        webinars. In 2023, through the Human Resources
and satisfaction in working at the Company. Overall,      Management Division, the Company organized 5 job
results of the Employee Engagement Survey in 2023         fairs and 8 career-related webinars, in collaboration with
have improved compared to the previous year, from 83      institutions/universities such as Sampoerna University,
in 2022 to 84 in 2023.                                    University of Indonesia, Gadjah Mada University,
                                                          Multimedia Nusantara University, as well as several
                                                          other universities and educational institutions.
     Recruitment and Talent
                                                          The Company continuously expands cooperation with
Along with the Company’s growth, fulflment of             various educational institutions including various
quality human resources is consistently carried out       kind of activities such as internship programs, career
by emphasizing transparency, fairness and equality        consultations and achievement pathways. The Company
principles. HR fulfillment is done through internal       has also collaborated with third parties in providing
                                                                                                                             REPORT
                                                                                                                             SUSTAINABILITY




rotation, external recruitment, as well as implementing   labor and outsourcing companies are still being carried
talent and young talent development programs              out to obtain talent according to the specified criteria




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                             163
Page 164
      MANAGEMENT
      DISCUSSION & ANALYSIS




             and time. This collaboration includes providing labor for
             billing, marketing, administration and general services         Technology Support
             to support the realization of effective and efficient
             business processes.                                         In strengthening human resources information system,
                                                                         the Company continues to enhance Digital Employee
             In 2023, the Company has also started a talent              Assistant (DEA) to increase employee accessibility.
             development program to meet succession needs at             DEA can be used by employees to obtain information
             the division head and department head levels based          about employment. The enhancements carried out in
             on competency. The talent development program               2023 include renewal of information about benefit
             was initiated with an identification, moderation and        and SOP for employees.
             assessment process to determine development needs. A
             talent development framework that has been adapted          In 2023, the Company will continue to develop
             to the organization needs has also been established and     employee system to further reduce administrative/
             started to be implemented this year.                        manual work and integrated. This employee system
                                                                         combines several systems that are still separate into
             Manpower performance management was carried out             one integrated and up-to-date system. This system
             at early 2023 in form of preparing annual work targets      was launched on January 15, 2024 called HARPA. This
             and continued with target monitoring carried out by         system can accommodate all employee needs, starting
             each relevant division. The preparation of monitoring       from attendance, benefits, performance appraisals and
             work targets continues to be carried out on an ongoing      various other employee activities and administration.
             basis and is expected to direct and motivate employees      This system can be accessed by employees both from
             to achieve the best performance.                            desktop or mobile phones.




164
Page 165
PT BUSSAN AUTO FINANCE




                                                                                                                             HIGHLIGHTS
                                                                                                                             PERFORMANCE
                                                            2023 has covered more than 400 topics and 56
     Training and Development                               e-Learning topics. The Company has provided various
                                                            training based on training needs analysis or training
Education and training programs provided in 2023 refer      needs assessment (TNA), which consists of hard skills,
to integrated programs designed to develop individual,      soft skills and regulatory training. Overall, total of
managerial and leadership competencies as well as           100% of employees have participated in training with
specific functional and technical competencies needed       the average number of training hours is 19.37 hours




                                                                                                                             REPORT
                                                                                                                             MANAGEMENT
to support the main business goals. It is hoped that        per employee. Detail information regarding training
employees can provide good quality work with high           and development can be seen in the sustainability
alignment in compliance and risk management.                report.

In order to enhance leadership abilities employees,         In 2023, learning/training methods will still be carried
Leadership Curriculum which has been launched in            out using in-class/offline and virtual/online methods.
2022 followed by 2023 with broader participants,            The Company also uses a Learning Management System
starting from Division Head to Head Level. Around 1,896     (LMS) to ease employees accessing the materials and
participants has attended various trainings in Leadership   carry out self-learning. Continued use of LMS improved
Curriculum in 2023 or around 17 times compared to           through the launching 21 topics mandatory and 35
2022.                                                       non-mandatory topics that can be done accessed at
                                                            any time and anywhere by employees. In addition,




                                                                                                                             PROFILE
                                                                                                                             CORPORATE
Manifestation of trainings that have been carried out       the Company has also provided access to world-class
in 2023 includes improving technical and non-technical      learning through the UDEMY Business platform to
capabilities of employees through various intensive         provide 24 thousand learning topics to 100 people at
external and internal training using external and           division head level and selected department heads.
internal sources. Employee development program in




                                                                                                                             DISCUSSION & ANALYSIS
                                                                                                                             MANAGEMENT
                                                                                                                             GOVERNANCE
                                                                                                                             CORPORATE
                                                                                                                             REPORT
                                                                                                                             SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                             165
Page 166
      MANAGEMENT
      DISCUSSION & ANALYSIS




             Future employee development strategy will continue          Company, so that the Company can have superior
             previous years strategy by integrating development          performance and maintain business continuity
             needs with the Company’s business continuity strategy.      and hae a more dynamic development. Employee
             The employee development program is carried out from        development program plan will always be designed
             the moment the employee joins, during the period of         based on competency to help employees optimizing
             service until before the employee’s retirement period       their potential as well as able and competent to work
             at the Company. The employee development program            appropirately and increase loyalty to the Company.
             will focus in creating sustainable human resources          Employee development program plan will also always
             with high competence and ready to deal with future          be integrated with talent management thereby each
             business challenges by encouraging the acceleration of      development program provided can provide targeted
             digital capabilities and sharpening employee business       benefits and be able to encourage acceleration of
             abilities through training programs, exposure and direct    employee potential.
             experience in the workplace.
                                                                         As the initiative to build the capacity to provide labor
             The employee development programs implementation            in achieving the Company’s long-term strategy, the
             strategy still adapts hybrid method of face-to-face and     Company will continue various initiatives, including:
             online methods with the support of the BAF Learning         (a) Management Trainee program, which is focused
             (Learning Management System) learning platform. This        on manpower needs fulfilment at the head office
             combination is believed to be the best implementation       and the network which focuses on providing talent
             method by considering the situation and location of         in information technology (IT), digital, operational
             employees spread across the network offices. Through        and other fields according to the Company’s needs;
             the Learning & Development Division, the Company will       (b) strategic collaboration with higher education
             continue to improve the quality and methods of training     institutions to easier access the best talents from
             so that it can provide ease of learning and can produce a   universities in Indonesia, especially to meet workforce
             significant learning impact on the Company’s business.      needs in the Company’s business and business support
                                                                         areas, including collaboration with third parties in
                                                                         providing staff work and also outsourcing companies
                  Future Plan                                            in improving business processes to be more effective
                                                                         and efficient; and (c) use of various recruitment tools,
             Digital transformation has become focus of business         such as recruitment on campus, at course institutions
             players thereby through a planned employee                  or training service providers and the use of digital
             development program is expected to achieve the goal         platforms.
             to create human resources with added value for the




166
Page 167
PT BUSSAN AUTO FINANCE




                                                                                                                HIGHLIGHTS
                                                                                                                PERFORMANCE
            INFORMATION
            TECHNOLOGY




                                                                                                                REPORT
                                                                                                                MANAGEMENT
                                                                                                                PROFILE
                                                                                                                CORPORATE
                                                                                                                DISCUSSION & ANALYSIS
                                                                                                                MANAGEMENT
                                             Information technology development in the Company
                                             is continuously carried out to ensure provision of quality
                                             services based on reliable and innovative information
THE COMPANY STRIVES TO                       technology, as a driving factor for the development of
ENHANCE CURRENT BUSINESS                     efficient and effective business processes, and in line
                                                                                                                GOVERNANCE
                                                                                                                CORPORATE



                                             with the Company’s long-term goals. Therefore, the
PROCESSES BY OPTIMIZING THE USE              Company strives to enhance current business processes
OF INFORMATION TECHNOLOGY                    by optimizing the use of information technology and
                                             developing digital services, in line with customers’
AND DEVELOPING DIGITAL                       needs, as well as developments of Indonesian financial
                                             industry.
SERVICES.

                                                  Focus and Strategic Policy for
                                                  Information Technology Development
                                                  in 2023
                                             Focus of the Company’s information technology in
                                             2023 was to continue development of existing business
                                                                                                                REPORT
                                                                                                                SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                167
Page 168
      MANAGEMENT
      DISCUSSION & ANALYSIS




             support systems/applications to support digitalization        In addition, to improve data security, the Company
             in improving the Company’s operational effectiveness          has applied Cyber Threat Intelligence which aims
             and productivity.                                             to mitigate/respond promptly in the event of data/
                                                                           information leaks. The system is highly useful in
             BAF Mobile is one of application development to               supporting data/information security operations for
             support digitalization and business. BAF Mobile               faster response and is currently caried out regularly.
             provides service accessibility and convenience for BAF
             Friends (BAF customers) in submitting financing and           Infrastructure wise, especially in information technology
             other financing services applications. In 2023, the           services improvement area, the Company strives to
             Company continuously developed BAF Mobile, where              increase network capacity and quality including server
             the customers are able to redeem vouchers on BAF              capacity, as well as improving performance of storage
             mobile using BAF points. The Company also revamps             system and data processing to support business and
             user interface periodically, including refreshment on BAF     data digitalization needs. This was done, namely by
             Mobile application layout and re-grouping menu and            rejuvenating servers and network devices in the Data
             features in BAF Mobile. In addition, additional features      Center. The Company has also increased network
             have also been added, such as Live Chat, Help Center          capacity and quality, especially at network offices in
             menu, Dana Syariah Digitalization (DASYAT), and other         Eastern Indonesia Region throughout 2023.
             feature developments dedicated for the customers’
             convenience in using BAF Mobile thereof will optimize         The Company has implemented Multi Factor
             their access to BAF Services using digital platform.          Authentication for VPN use for mobile device users who
                                                                           use external networks considering data security as a vital
             In supporting financing services expansion initiative,        aspect. This becomes a system mechanism to protect
             in 2023, the Company developed basket financing               or safeguard the Company’s security system. Security
             application ass a service for customers by utilizing credit   standards improvement is also carried out through
             limits to purchase goods/products in one transaction via      Security Firewall Policy Management to ensure the
             a digital platform and connecting with digital partners.      management and regulation of firewall policies related
             Development of this application is still ongoing and is       to the Company’s firewall infrastructure security.
             expected to be introduced in 2024.

             In 2023, the Company also developed systems to                     Information Technology Human
             support Human Resource Management needs. The                       Resource Management and
             Company is developing employee system to further                   Development
             reduce and integrate administrative/manual works. This
             employee system combines several separated systems            Implementation of information technology governance
             into one integrated and up-to-date system. This system        in the Company is continuously improved and evaluated
             can accommodate all employee aspect needs starting            periodically both in terms of policy and procedure by
             from attendance, benefits, performance appraisals             considering mitigation of new risks and challenges
             and other employee activities and administration.             based on the information technology developments.
             This system can be accessed by employees both from            Implementation of information technology governance
             desktop and mobile phone.                                     in the Company is managed through the role of IT
                                                                           Operation, IT Strategic Planning & Innovation and IT
             In addition, development of other business support            Business Technology Solution departments in providing
             systems was also carried out, including simplification        security guidance, managing information technology
             of processes in the existing system. The Company is           risks and information technology governance while still
             currently developing new systems on the business              considering the requirement to achieve the Company’s
             support unit, such as Whistleblowing System                   business plan.
             development, replacement of taxation system to
             support functions in Accounting & Tax.                        Sustainable IT development is always be carried out
                                                                           by implementing good IT governance and ensuring
                                                                           its implementation has complied with POJK No. 4/
                  Information Technology Systems and                       POJK.05/2021 concerning Implementation of Risk
                  Infrastructure in the Company                            Management in the Use of Information Technology by
                                                                           Non-Bank Financial Services Institutions and SEOJK No.
             In 2023, the Company strengthened cyber security as           22/POJK.05/2021 concerning Implementation of Risk
             well as improve governance and information technology         Management in the Use of Information Technology by
             security standards. The Company has obtained ISO              Non-Bank Financial Services Institutions and supported
             27001 certificate regarding Information Security              by a competent IT organization. In 2023, the Company
             Management System in June 2023, which becomes a               has also appointed Data Protection Officer (DPO)
             set of standards and procedures related to information        according to Law on Personal Data Protection. The DPO
             security and control that enable the businesses to            will perform personal data protection function. In 2023,
             implement appropriate security.                               the Company also attempted to ensure compliance




168
Page 169
PT BUSSAN AUTO FINANCE




                                                                                                                               HIGHLIGHTS
                                                                                                                               PERFORMANCE
with Financial Services Authority Regulation (POJK)
Number 6/POJK.07/2022 concerning Customer and                    Future Information Technology
Public Protection in Financial Services Sector.                  Development Plans

To ensure a more focused information technology             In 2024, the Company will focus on cyber security
management, the Company has appointed a Director            and data governance acceleration. The Company
in charge to manage information technology in               realizes the importance of further strengthening the




                                                                                                                               REPORT
                                                                                                                               MANAGEMENT
the Company. The Company also has established               security and protection of customers data in line with
an Information Technology Steering Committee.               implementation of the Law on Personal Data Protection.
The Information Technology Steering Committee is            Data security will also continue to be optimized by
responsible for overseeing technology and information       strengthening database management.
risks, as well as any regulatory and compliance risks
related to technology and information risks within the
Company. This committee is also responsible to support      Implementation of good and effective IT governance is
and oversee IT investment, ensure that IT has been          surely important to ensure that all IT activities can play
aligned with overall IT direction, IT plans and long-term   optimum role in supporting the Company’s business
capital investment decisions, ensuring compliance with      goals achievement. Therefore, IT Security Risk and
IT strategy and roadmap, as well as review, set priority    Governance Department is expected to faster accelerate
and support IT projects in the Company. Detailed            and monitor data governance in the Company.




                                                                                                                               PROFILE
                                                                                                                               CORPORATE
information regarding implementation of Information
Technology Steering Committee’s duties is disclosed in      Absolute infrastructure strengthening is carried out,
Committee under the Board of Directors section.             especially in improving information technology services
                                                            by increasing network capacity and quality including
To support acceleration of the digitalization process,      server capacity, as well as strengthening data storage
the Company also has established a Digitalization           and processing to support business needs and data
Committee. This committee has a role to accelerate          digitalization.
digitalization process and implementation to
support business activities or processes to increase        BAF Mobile will strive to be optimized as a platform
the Company’s competitiveness and optimizing                to ease the customers in accessing the Company’s
the Company’s services to the society and business          financing services in the digital era. Development of
                                                            other systems through enhancement will always support




                                                                                                                               DISCUSSION & ANALYSIS
                                                                                                                               MANAGEMENT
partners. Detailed information about implementation of
Information Technology Committee and Digitalization         business operations and to be more efficient.
Committee duties is disclosed in Committee under the
Board of Directors section.
                                                            Future challenges will be greater along with the rapid
The Company always considers information technology         changes in the digitalization. Therefore, the Company
as a strategic competency in business. Therefore, human     continuously information technology systems to
resource development in information technology              support business activities with various strategic steps
becomes an important factor in the success of IT planning   as planned in the IT roadmap for the next 5 (five)
and management in the Company. The Company strives          years that becomes direction of IT development in
to improve HR competency in information technology          the Company. Through IT Operations Division, IT
thereof capable to act as a success factor in planning      Strategic Planning & Innovation and IT Business
and managing the Company’s information technology,          Technology Solution, as well as collaboration with the
including providing innovative ideas that are in line       Digital Business Division, development of information
with digital development in the financing industry. This    technology systems will surely continue to be in line
considers current business growth through digitalization    with the Company’s business and operational direction.
that requires innovation and creativity in redefining the
                                                                                                                               GOVERNANCE
                                                                                                                               CORPORATE




Company’s business strategy and culture.
                                                                                                                               REPORT
                                                                                                                               SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                               169
Page 170
      MANAGEMENT
      DISCUSSION & ANALYSIS




                         FINANCIAL
                         REVIEW




                                                   Total Assets
             SOLID COOPERATION AND            The Company’s total assets increased by 1.3% (YoY)
             EMPLOYEE INVOLVEMENT ARE         from Rp13.9 trillion as of 31 December 2022 to Rp14.1
                                              trillion as of 31 December 2023. This increase was mainly
             IMPORTANT ASPECTS IN ACHIEVING   driven by an increase in the Company’s total financing
                                              receivables - net which also increased by 1.0 % (YoY)
             COMPANY PERFORMANCE
                                              from Rp12.7 trillion as of 31 December 2022 to Rp12.8
                                              trillion as of 31 December 2023.

                                              Cash and banks experienced an increase of 22.2% (YoY)
                                              from Rp273.3 billion as of 31 December 2022 to Rp334.0
                                              billion as of 31 December 2023.

                                              Net other receivables also increased by 80.8% (YoY) or
                                              Rp54.2 billion from Rp67.1 billion in 2022 to Rp121.3
                                              billion in 2023, due to increase in financing receivables
                                              from collateral.




170
Page 171
PT BUSSAN AUTO FINANCE




                                                                                                                               HIGHLIGHTS
                                                                                                                               PERFORMANCE
On the other hand, the Company’s derivative receivables in December 2023 recorded at Rp63.3 billion or down 50.7%
(YoY) from Rp128.5 billion in 2022. This was due to currency fluctuations in USD during 2023, but at the end of the
year there was a decrease in the Central Bank of Indonesia middle rate from Rp15,731/USD to Rp15,416/USD.


I N M I L L I O N RUPIAH




                                                                                                                               REPORT
                                                                                                                               MANAGEMENT
                           DESCRIPTION                                  2023                          2022

 Cash on hand in banks                                                  334,038                       273,255

 Financing receivables – net                                         12,839,773                    12,712,918

 Derivative receivables                                                  63,341                       128,527

 Other accounts receivable – net                                        121,309                        67,101

 Advances                                                                31,562                        30,506

 Prepaid expenses                                                        36,155                        31,042




                                                                                                                               PROFILE
                                                                                                                               CORPORATE
 Property and equipment – net of accumulated                            337,533                       336,868
 depreciation

 Computer software – net of accumulated amortization                     77,181                        81,778

 Deferred tax assets                                                    230,556                       227,003

 Right-of-use asset - net                                                28,053                        27,906

 Other assets                                                             2,494                         2,605




                                                                                                                               DISCUSSION & ANALYSIS
                                                                                                                               MANAGEMENT
 Total Assets                                                       14,101,996                    11,984,536




                                                              Accrued expenses decreased 12.7% (YoY) from Rp360.2
      Total Liabilities                                       billion as of 31 December 2022 to Rp314.4 billion as of
                                                              31 December 2023. The Company’s tax debt also fell
The Company’s total liabilities increased slightly by 0.2%    37.8% (YoY) from Rp87.7 billion as of 31 December 2022
(YoY) from Rp11.36 trillion as of 31 December 2022 to         to Rp54.5 billion as of 31 December 2023.
Rp11.38 trillion as of 31 December 2023. This is due to
an increase in bond debt that issued in 2023.                 On the other hand, the Company’s other debts recorded
                                                              to have increased by 15.0% (YoY) from Rp235.5 billion
The Company’s bank debt as of 31 December 2023                as of 31 December 2022 to Rp270.7 billion as of 31
                                                                                                                               GOVERNANCE
                                                                                                                               CORPORATE



was Rp5.7 trillion or down 10.9% (YoY) from Rp6.4             December 2023 in connection with increase in new
trillion as of 31 December 2022. The Company issued           financing at the end of 2023.
Shelf Registration Bond II Bussan Auto Finance Phase
III series A and series B in 2023 amounting to Rp401          Post-employment benefits liabilities recorded at Rp165.7
billion and Rp841 billion respectively, as well as an Shelf   billion as of 31 December 2023, an increase of 20.5%
Registration Bond II Bussan Auto Finance Phase IV in          (YoY) from Rp137.5 billion as of 31 December 2022, due
2023 amounting to Rp458 billion. Thus, the Company’s          to a decrease in benefit payments during 2023 compared
bond debt as of December 31 2023 will be Rp4.9 trillion       to 2022.
or an increase of 17.7% (YoY).
                                                                                                                               REPORT
                                                                                                                               SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                               171
Page 172
      MANAGEMENT
      DISCUSSION & ANALYSIS




             I N M I L L I O N R U PIAH

                                          DESCRIPTION                               2023                          2022

               Bank loans                                                         5,687,175                     6,381,483

               Derivative payables                                                   14,910                         6,890

               Taxes payable                                                         54,524                        87,678

               Other account payable                                                270,699                       235,456

               Accrued expenses                                                     314,410                       360,242

               Bonds payable                                                      4,873,687                     4,141,274

               Lease Liabilities                                                      3,509                         6,102

               Post-employment benefits obligation                                  165,704                       137,544

               Total Liabilities                                                11,384,618                    11,356,669




                                                                          by the Company. The Company’s retained earnings
                    Total Equity                                          balance increased 6.5% (YoY) from Rp2.0 trillion as of
                                                                          31 December 2022 to Rp2.2 trillion as of 31 December
             The Company’s total equity increased by 6.0% (YoY)           2023.
             to Rp2.7 trillion as of 31 December 2023 from the
             previous Rp2.6 trillion as of 31 December 2022. This         The Company’s other comprehensive income improved
             increase was mainly due to adjustments to the retained       39.7% (YoY) from negative Rp58.0 billion on 31 December
             earnings balance in connection with the profit recorded      2022 to negative Rp35.0 billion on 31 December 2023.


             I N M I L L I O N R U PIAH

                                          DESCRIPTION                               2023                          2022

               Capital stock                                                        353,571                       353,571

               Additional paid-in capital                                           235,858                       235,858

               Other comprehensive income                                           (34,964)                      (58,031)

               Retained earnings                                                  2,162,913                     2,031,442

               Total Equity                                                       2,717,378                     2,562,840




                                                                          written off, fines for accelerated contract termination,
                    Revenue                                               etc. increased 5.4% (YoY) from Rp4.2 trillion as of 31
                                                                          December 2022 to Rp4.5 trillion as of 31 December
             The Company’s revenue increased by 5.3% (YoY) to Rp4.6       2023. The contribution of customer financing revenue
             trillion as of 31 December 2023 from Rp4.3 trillion as of    reached 98.0% of the Company’s total revenue.
             31 December 2022. This revenue growth was mainly due
             to an increase in financing income in the form of interest   The Company’s other income, which the majority comes
             income from financing activities.                            from financial inclusion activities, rose 3.9% (YoY) to
                                                                          Rp89.1 billion from Rp85.8 billion as of 31 December
             Customer financing income consisting of interest             2022. The contribution of other income reached 1.9% of
             income from financing activities, interest income from       the Company’s total income.
             late payments, recovery of receivables that have been




172
Page 173
PT BUSSAN AUTO FINANCE




                                                                                                                                HIGHLIGHTS
                                                                                                                                PERFORMANCE
I N M I L L I O N RUPIAH

                           DESCRIPTION                                2023                            2022

 Financing income                                                    4,476,998                      4,248,826

 Interest income                                                         2,804                           2,279




                                                                                                                                REPORT
                                                                                                                                MANAGEMENT
 Other income                                                           89,060                         85,752

 Total revenues                                                     4,568,862                       4,336,857




      Expense                                               General and administrative expenses increased by 10.1%
                                                            (YoY) to Rp869.6 billion in December 2023 from Rp790.1
The Company’s total expenses in December 2023               billion in December 2022. This increase was mainly due to




                                                                                                                                PROFILE
                                                                                                                                CORPORATE
recorded at Rp4.1 trillion, an increase of 21.7% (YoY)      an increase in professional services fees, depreciation and
from Rp3.4 trillion in December 2022. This increase was     amortization costs, and commission costs. and billing.
mainly due to provision for credit losses, interest and
financing expenses, as well as general and administrative   Salary and allowance expenses experienced a slight
expenses.                                                   decrease of 0.3% (YoY) to Rp559.2 billion as of 31
                                                            December 2023 from Rp560.8 billion as of 31 December
The Company’s provision for credit losses increased by      2022. The Company’s marketing expenses also
43.2% (YoY) to Rp1.9 trillion as of 31 December 2023        decreased by 41.9% (YoY) from the previous Rp49.2
from Rp1.4 trillion as of 31 December 2022. This increase   billion as of 31 December 2022 to Rp28.6 billion as of
was mainly due to uncertain macroeconomic conditions.       31 December 2023 due to an optimization of digital and
                                                            online marketing.




                                                                                                                                DISCUSSION & ANALYSIS
                                                                                                                                MANAGEMENT
Interest and financing expenses increased by 16.7%
(YoY) from Rp589.6 billion as of 31 December 2022 to
Rp687.9 billion as of 31 December 2023. This increase
was mainly due to an increase in bank loan interest
during 2023.

I N M I L L I O N RUPIAH

                           DESCRIPTION                                2023                            2022

 Salaries and allowances                                              559,173                         560,813

 Provision for credit losses                                         1,936,909                      1,352,121

 Interest and financing charges                                       687,872                         589,595

 General and administrative                                           869,620                         790,083
                                                                                                                                GOVERNANCE
                                                                                                                                CORPORATE




 Loan arrangement and guarantee fees to related parties                  8,114                         17,836

 Marketing                                                              28,568                         49,157

 Total expenses                                                     4,090,256                       3,359,605
                                                                                                                                REPORT
                                                                                                                                SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                173
Page 174
      MANAGEMENT
      DISCUSSION & ANALYSIS




                    Profit/loss before Tax and Income Tax                        Net Profit/loss for the Current Year
                    Expense                                                      and Total Comprehensive Profit for the
                                                                                 Current Yea
             As a result of the matters explained above, in December
             2023 the Company recorded a Company profit before              The Company recorded a profit for the year of Rp370.6
             tax of Rp478.6 billion from previously recording a             billion in December 2023, down 45.8% from December
             profit before tax of Rp977.3 billion in December 2022.         2022 which recorded a profit of Rp683.1 billion. In
             In line with recording profit before tax, the Company          December 2023, the Company also recorded total
             also recorded income tax expense of Rp108.1 billion in         comprehensive profit for the year of Rp393.6 billion,
             December 2023 from previously recorded income tax              decreased 38.5% (YoY) from Rp640.1 billion in December
             expense of Rp294.2 billion in December 2022.                   2022.


             I N M I L L I O N R U PIAH

                                          DESCRIPTION                                 2023                         2022

               Profit before tax                                                      478,606                      977,253

               Income tax expense                                                   (108,054)                     (294,162)

               Profit for the year                                                    370,552                      683,091

               Other comprehensive income

                  Items that may be reclassified subsequently to profit
                  or loss:

                       Remeasurement of the post-employment benefit                    (7,369)                        8,072
                       obligation, net of tax

                  Items that may be reclassified subsequently to profit
                  or loss:

                       Unrealized (loss) gain on fair value or derivative              30,436                      (51,013)
                       financial instruments hedging reserve, rent of tax

               Total other comprehensive income for the year – net
               of tax                                                                  23,067                      (42,941)

               Total comprehensive income for the year                               393,619                       640,150




                                                                            and other operating activities amounting to Rp823.7
                    Cash flow                                               billion. Cash expenditures for this period were mainly
                                                                            used for payment of financing transactions amounting
             Cash Flow from Operating Activities                            to Rp11.4 trillion, payment of salaries and allowances
             Net cash flows obtained from operating activities consist      amounting to Rp579.9 billion, general, administrative
             of cash received from financing transactions, and interest     and marketing expenses amounting to Rp828.3 billion.
             on late payments, accelerated settlements and other
             operating activities, while cash outflows are mainly           Cash Flows from Investing Activities
             used for financing transactions, payment of salaries and       Net cash flow used for the Company’s investment
             allowances, and payment of general, administrative and         activities amounted to Rp104.5 billion as of December
             marketing.                                                     31, 2023, consisting of additional fixed assets and
                                                                            computer software amounting to Rp58.2 billion, advance
             Net cash flow used for operating activities amounted to        payment for the purchase of fixed assets and computer
             Rp944.9 billion as of 31 December 2023, consisting of          software amounting to Rp27.3 billion, and debt payments
             cash receipts from financing transactions amounting to         arising from intangible assets amounting to Rp5.7
             Rp13.1 trillion, interest for delays, accelerated repayment    billion. Meanwhile, cash flow obtained from investment




174
Page 175
PT BUSSAN AUTO FINANCE




                                                                                                                                  HIGHLIGHTS
                                                                                                                                  PERFORMANCE
activities consisted of interest receipts of Rp2.8 billion, as   amounting to Rp675.6 billion, payment of dividends
well as proceeds from the sale of fixed assets of Rp317.4        amounting to Rp239.1, and payment of bond issuance
million, where the sale of fixed assets was in the form of       costs amounting to Rp6.2 billion.
motorcycle, genset, laptop, AC, and others to support the
Company’s operating activities.                                  In 2023, the Company will also pay off several maturing
                                                                 bonds and sukuk, namely Shelf Registration Bond I Phase
Cash Flow from Financing Activities                              I of 2020 amounting to Rp100 billion, Mudharabah




                                                                                                                                  REPORT
                                                                                                                                  MANAGEMENT
Net cash flow obtained from financing activities                 Bonds I Phase I of 2020 amounting to Rp15 billion, Shelf
amounted to Rp779.6 billion as of 31 December 2023,              Registration Bond II Phase II Series A of 2022 amounting
consisting of receipts from bank loans amounting to Rp6.6        to Rp88.5 billion, Sukuk Mudharabah I Phase II Series B
trillion, and receipts from bond issuance amounting to           2020 amounting to Rp112 billion, and Shelf Registration
Rp1.7 trillion, while cash flow used for financing activities    Bond II Phase II Series A 2022 amounting to Rp655
consisted of for payment of bank loans amounting to              billion.
Rp7.2 trillion, payment of interest and finance charges


I N M I L L I O N RUPIAH

                           DESCRIPTION                                     2023                          2022




                                                                                                                                  PROFILE
                                                                                                                                  CORPORATE
 Cash Flows from Operating Activities                                      944,878                     (238,941)

 Cash Flows from Investing Activities                                    (104,513)                      (94,631)

 Cash Flows from Financing Activities                                    (779,581)                       433,735

 Net Increase in Cash on Hand and in Banks                                  60,783                       100,164

 Cash on Hand and in Banks at Beginning of Year                            273,255                       173,091

 Cash on Hand and in Banks at End of Year                                  334,038                       273,255




                                                                                                                                  DISCUSSION & ANALYSIS
                                                                                                                                  MANAGEMENT
                                                                                                                                  GOVERNANCE
                                                                                                                                  CORPORATE
                                                                                                                                  REPORT
                                                                                                                                  SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                  175
Page 176
      MANAGEMENT
      DISCUSSION & ANALYSIS




                           SOLVENCY AND
                           COLLECTABILITY RATIO

             The Company continuously maintains sources of funds          (Fitch) again assigned the Company a National Long-
             to fulfill its liabilities and ensure optimum business       Term Rating of ‘AAA (idn)’ with a Stable Outlook. The
             sustainability. The Company strives to ensure sufficient     ‘AAA’ national rating indicates the highest rating
             liquidity to fulfill both short-term and long-term           awarded by Fitch on the national rating scale for
             liabilities. The Company’s ability to pay debts can be       Indonesia. The Stable Outlook reflects Fitch’s opinion
             measured from solvency and collectability ratios.            that Mitsui’s supportive strength will remain intact in
                                                                          short-term to medium-term. In addition, in 2023, PT
             The Company’s ability to pay debt, both in short-term        Pemeringkat Efek Indonesia (Pefindo) also confirmed
             and long-terms, is assessed good by 2 (two) external         the “idAAA” rating with a stable outlook for the
             rating agencies. In 2023, PT Fitch Ratings Indonesia         Company.




                                        AAA (idn)                                                  idAAA
                                        Stable                                                     Stable




             The Company also has good liquidity and solvency             with related parties. The Company also ensures that
             levels as demonstrated by the Company’s ability to           the long-term funding sources are used to finance long-
             fulfill all due obligations on time, both in terms of debt   term receivables.
             principal and interest expenses payments. The liquidity
             and solvency ratios become the parameters of the             The Company has calculated the liquidity ratio based
             Company’s ability to pay its debt.                           on Financial Services Authority Regulation no. 35/
                                                                          POJK.05/2018 concerning Financing Company Business
                                                                          Implementation. As of December 31, 2023, the
                  Liquidity Ratio                                         Company’s current ratio stood at 126.8% compared
                                                                          to 187.3% as of December 31, 2022. As of December
             The Company has several sources of funding. In addition      31, 2023, the Company’s cash ratio stood at 5.9% from
             to payments from customer installments, the Company          3.9% recorded as of December 31, 2022 due to an
             acquires sources of funding from bank loans and loans        increase in cash and bank.



                                  DESCRIPTION                                       2023                         2022

              Current ratio                                                        126.8%                        187.3%

              Cash Ratio                                                              5.9%                         3.9%




176
Page 177
PT BUSSAN AUTO FINANCE




                                                                                                                               HIGHLIGHTS
                                                                                                                               PERFORMANCE
To mitigate liquidity risk, the Company uses several
sources of funding. In addition to payments from                Solvency Ratio
customer installments, the Company acquires sources of
funding from bank loans and the issuance of securities,    Solvency Ratios are used to measure the Company’s
namely bonds and sukuk. The Company also ensures           ability to pay short-term and long-term liabilities. The
that long-term funding sources are used to finance         Company’s Solvency Ratio can be seen from debt to
long-term receivables. Furthermore, the Company            assets and debt to equity ratios. As of December 31,




                                                                                                                               REPORT
                                                                                                                               MANAGEMENT
received prominent support from the parent company         2023, the Company booked debt to assets ratio of 0.8x
through letters of guarantee to secure almost all of the   stable from 0.8x as of December 31, 2022. The ratio
Company’s financing.                                       indicated that the Company is able to cover all liabilities
                                                           using its assets. The debt to equity ratio indicates the
                                                           Company’s capital ability to pay all of its debt. As of
                                                           December 2023, the debt to equity ratio stood at 4.2x
                                                           from 4.4x in 2022.



                     DESCRIPTION                                     2023                            2022

 Debt to Asset                                                         0.8x                           0.8x




                                                                                                                               PROFILE
                                                                                                                               CORPORATE
 Debt to Equity                                                        4.2x                           4.4x

 Gearing Ratio (x)                                                     3.9x                           4.1x




The gearing ratio divides total loans from banks, bonds    The Company’s financing receivables - net was slightly
payable and mudharabah sukuk to equity. The Company        increased by 1.0% billion from Rp12.7 trillion as of




                                                                                                                               DISCUSSION & ANALYSIS
                                                                                                                               MANAGEMENT
has a gearing ratio below the maximum limit permitted      December 31, 2022 to Rp12.8 trillion as of December
according to POJK No.35/POJK.05/2018 concerning the        31, 2023.
Financing Company Business Implementation of 10x.
In December 2023, the Company posted a gearing             The Company evaluates the receivables collectively
ratio of 3.9x, lower than the position in 2022 of 4.1x,    condition every month using Probability of Default (PD),
thus, the Company has a considerable space for future      Loss Given Default (LGD), Loss Identification Period
business expansion.                                        (LIP) variables to calculate monthly Exposure at Default
                                                           (EAD). The PD, LGD and LIP are calculated based on
                                                           results of loans and receivables data analysis which can
     Receivables Collectability                            be observed for at least within 5 (five) years.

Based on the collectability ratio of the financing         Written-off of the non-performing receivables will be
facilities, the Company classifies past due payments       done if the non-performing receivables are more than
into 3 (three) groups, such as (i) past due less than 30   6 months or when the Company determines that the
days; (ii) past due within 31 to 60 days, (iii) past due   receivables can no longer be collected. As of December
more than 60 days. The following table presents the        31, 2023 and December 31, 2022, the Company
growth of the Company’s financing receivables based        has provided provisions for impairment losses on
                                                                                                                               GOVERNANCE
                                                                                                                               CORPORATE




on the receivables maturity as of 30, November 2023        financing receivables of Rp1.2 trillion and Rp1.1 trillion,
and December 31, 2022.                                     respectively, which each represent approximately 8.9%
                                                           and 8.8% of all financing receivables.
                                                                                                                               REPORT
                                                                                                                               SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                               177
Page 178
      MANAGEMENT
      DISCUSSION & ANALYSIS




             I N M I L L I O N R U PIAH

                                                               2023                           2022
                           DESCRIPTION
                                                    Rp                  %          Rp                  %

               Pass                              11,390,724           80.82%    11,320,732           82.37%

               Past-due and Impaired

                   Less than 30 days                622,636            4.42%       606,763            3.91%

                   31 until 90 days                 683,224            4.84%       659,719            3.15%

                   More than 90 days                143,189            1.02%       125,705            1.74%

               Impaired                           1,254,268            8.90%     1,138,149            8.84%

               Total                             14,094,041           100.00%   13,851,067           100.00%

               Allowance for Impairment Losses   (1,254,268)          (8.90%)   (1,138,149)          (8.84%)

               Total – Net                       12,839,773            91.10%   12,712,918            91.16%




178
Page 179
PT BUSSAN AUTO FINANCE




                                                                                                                              HIGHLIGHTS
                                                                                                                              PERFORMANCE
              CAPITAL
              STRUCTURE




                                                                                                                              REPORT
                                                                                                                              MANAGEMENT
As of December 31, 2021, composition of the Company’s         47/POJK.05/2020 concerning Business and Institutional
shareholders consisted of Mitsui & Co., Ltd. with 45.0%, JA   Permit for Financing Companies and Sharia Financing
Mitsui Leasing, Ltd. with 20.0%, Yamaha Motor Co., Ltd.       Companies, where, either direct or non-direct, foreign
with 17.7%, PT Yamaha Indonesia Motor Manufacturing           ownership in a company is not allowed to exceed 85%
with 2.3%, and PT Sinergi Autoindo Abadi with 15.0%           (eighty-five percent) of the Company’s paid-up capital.
ownership. The Company has complied the provisions
in Article 10 of OJK Regulation No. 28/POJK.05/2014           The composition of the Company’s shareholders is
concerning Business and Institutional Permit for              presented in the table below.
Financing Companies, as amended to Article 9 POJK No.




                                                                                                                              PROFILE
                                                                                                                              CORPORATE
                      SHAREHOLDERS                                 TOTAL SHARES                        %

 Mitsui & Co., Ltd.                                                   159,107                        45.0

  JA Mitsui Leasing, Ltd.                                                70,714                      20.0

  Yamaha Motor Co., Ltd.                                                 62,464                      17.7

  PT Sinergi Auttoindo Abadi                                             53,036                      15.0




                                                                                                                              DISCUSSION & ANALYSIS
                                                                                                                              MANAGEMENT
 PT Yamaha Indonesia Motor Manufacturing                                  8,250                        2.3




The Company’s capital structure by composition with assets is as follows:



                                                          2023                                  2022
           DESCRIPTION
                                                 Rp                  %                  Rp                    %

 Bank Loans                                     5,687              40.3%               6,381                 45.8%

 Marketable Securities                          4,874              34.6%               4,141                 29.7%
                                                                                                                              GOVERNANCE
                                                                                                                              CORPORATE




 Other Liabilities                                824               5.8%                 834                  6.0%

 Equity                                         2,717              19.3%               2,563                 18.4%

 Total                                        14,102              100.0%              13,920                 100.0%
                                                                                                                              REPORT
                                                                                                                              SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                              179
Page 180
  MANAGEMENT
  DISCUSSION & ANALYSIS




                                                                           •    Capital Adequacy and Capital Management
                Capital Structure Policy                                        The Company is required to ensure adequacy of
                                                                                amount of capital through periodic evaluations on
         Purpose of capital management is to preserve the                       compliance with capital requirements according to
         Company’s ability to maintain its business continuity,                 the prevailing regulations. Therefore, in the capital
         thereby still generate returns for shareholders. In                    management, the Company considers several
         maintaining a strong capital position while optimally                  factors including maintaining a balance between
         using capital to support business growth, the Company                  profit and risk taken by concerning a healthy capital
         shall carry out a capital planning, as well as conduct                 position. Capital adequacy and management of
         a capital assessment, which includes at least the level                capital in the Company are carried out as follows:
         of capital adequacy and capital management, by                         a. The Company is required to carry out monthly
         referring to prevailing regulations, including POJK No.                    monitoring and analysis to ensure that the
         35/POJK.05/2018 concerning the Implementation                              Company always complies with the prevailing
         of Business Financing Companies, and other related                         regulations, as follows:
         regulations.                                                               1) Minimum equity of Rp100 billion;
                                                                                    2) Equity to paid up capital ratio of minimum
         The Company’s Capital Policy is namely regulated                               50%;
         in Code of Corporate Governance as approved by the                         3) Gearing ratio refers to the prevailing
         Board of Commissioners. Several matters related to the                         regulations, which is a maximum of 10x;
         Company’s capital are as follows:                                          4) Capital ratio according to the prevailing
                                                                                        regulations, which is minimum 10%.
         •     Capital Planning                                                 b. The Company does not carry out business
               Capital planning is carried out, among others, to                    activities that can exceed its capital capacity to
               ensure that the Company has a healthy capital                        absorb risk of loss.
               structure that is in line with the risk profile, business        c. The Company periodically conducts stress
               targets and capital requirements of regulators. In                   tests to measure the impact of changes in
               carrying out the capital planning, either in short,                  macroeconomic factors and/or other external
               medium and long terms, the Company shall consider                    factors on the condition of capital, liquidity,
               business strategy, business potential and maintain                   asset quality and company profits based on
               the implementation of prudent principle. As part                     established scenarios.
               of the Company’s Business Plan, in preparing the
               capital planning, the Board of Directors shall obtain       As of 31 December 2023, the Company’s fulfilment on
               approval from the Board of Commissioners.                   capital parameters is as follows:



                                                                               PROJECTION                  REALIZATION
                 DESCRIPTION                  POJK REGULATION
                                                                                  2023                2023                2022

             Equity                        Minimum Rp100 billion                3,195,990          2,717,378            2,562,840

             Portion of Total Equity to    Minimum 50%                           542.2%               461.0%              434.8%
             Paid-in Capital

             Gearing Ratio                 Maximum 10x                               3.6x                 3.9x                4.1x

             Capital ratio                 Minimum 10%                            27.9%                27.0%               25.8%




         In carrying out supervision of in capital aspect, the             gearing ratio stood at 3.9x and 4.1x, respectively.
         Company applies gearing ratio as one of the instrument.           Therefore, the gearing ratio position is still below the
                                                                           prevailing regulation, where the gearing ratio is set
         In supervising capital aspect, the Company applies                maximum at 10 times.
         gearing ratio instrument. The gearing ratio is calculated
         based on Financial Service Authority Circular Letter              •    Risk Management in Capital Management
         Number 11/SEOJK.05/2020 concerning Soundness Level                     The Company is required to implement risk
         Assessment on Financing Company and Sharia Financing                   management prudently and effectively to maintain a
         Company.                                                               strong capital position, good asset quality, adequate
         As of December 31, 2023 and December 31, 2022,                         profits and a healthy balance sheet. The Company is




180
Page 181
PT BUSSAN AUTO FINANCE




                                                                                                                                    HIGHLIGHTS
                                                                                                                                    PERFORMANCE
   also required to carry out efforts to create an efficient   appetite, stress testing result and capital ratio target, as
   and effective internal operation by implementing a          well as referring to Financial Service Authority Regulation
   policy evaluation of the process and approval of            No. 35/POJK.05/2018 concerning Financing Company
   lending in stages, assessment and monitoring of risk        Business Operations that regulates capital ratio. By
   exposures originating from the business sector and          implementing the capital planning, the Company will be
   company, as well as the risk assessment faced by            able to survive the economic cycle, addressing growth and
   the company carried out by the Risk Management              strategic opportunity, optimizing shareholders’ return




                                                                                                                                    REPORT
                                                                                                                                    MANAGEMENT
   Committee.                                                  and operate business based on risk appetite and comply
                                                               with prevailing regulations. The Board of Directors has
                                                               regularly reviewed the Company’s capital structure. As
     Basis of Management’s Policy Set-Up                       part of the review, the Board of Directors considers the
     on Capital Structure                                      cost of capital and related risks.

The Board of Directors has prepared basis for policy set-
up on capital structure with several considerations, such
as economic projections, business growth potential, risk




                                                                                                                                    PROFILE
                                                                                                                                    CORPORATE
                                                                                                                                    DISCUSSION & ANALYSIS
                                                                                                                                    MANAGEMENT
                                                                                                                                    GOVERNANCE
                                                                                                                                    CORPORATE
                                                                                                                                    REPORT
                                                                                                                                    SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                    181
Page 182
      MANAGEMENT
      DISCUSSION & ANALYSIS




                              CAPITAL GOODS
                              INVESTMENT AND
                              MATERIAL COMMITMENT
                              RELATED

                                                                           supplies and computer software, as well as non-fixed
                    Type and Value of the Capital Goods                    assets in form of system and infrastructure development.
                    Investment
                                                                           Detail information of capital expenditure investment in
             The Company placed capital goods investment in form           2023 and 2022 based on cash flows is as follows:
             of fixed assets such as lands, buildings, equipment, office


             I N M I L L I O N R U PIAH

                                          DESCRIPTION                                               2023                2022

               Advance payment for acquisition of property and equipment and                       27,280              28,201
               computer software

               Additions of property and equipment and computer software                           58,207              64,057

               Total                                                                               85,487              92,258




             In 2023, advances for purchases of fixed assets and           In financing the capital goods investment, the Company
             computer software decreased by 3.3% (YoY), while              utilizes proceeds from operating results and prioritizes
             additions to fixed assets and computer software               the purchase capital goods in Rupiah currency. The
             decreased by 9.1% (YoY).                                      Board of Directors assumes that impact of foreign
                                                                           currency fluctuations has less significant impact on the
                                                                           commitment on capital goods investment.
                    Purpose of Capital Goods Investment
             Capital goods investment is aimed to support smooth                Material Commitment on Capital
             operation of the Company’s operational activities,                 Expenditure Investment
             such as the development of services and information
             technology infrastructure to support business growth          In 2023, the Company did not recognize information
             in line with the Company’s digitalization strategy. The       about material commitment on capital expenditure.
             Company maintains the operational transformation and          Therefore, the information regarding the purpose; source
             strives to innovate related to services to the customers      of funds expected to fulfill the commitment; currency
             comprehensively based on the latest market demands            in denomination; and planned measures to protect the
             and developments.                                             risks from foreign currency positions (hedging) are not
                                                                           available to be disclosed in this report.




182
Page 183
PT BUSSAN AUTO FINANCE




                                                                                                                        HIGHLIGHTS
                                                                                                                        PERFORMANCE
              COMPARISON BETWEEN
              PERFORMANCE TARGET
              AND REALIZATION IN 2023,




                                                                                                                        REPORT
                                                                                                                        MANAGEMENT
              AND PROJECTION IN 2024

     Comparison Between Performance Target and Realization in 2023
Comparison between performance target and realization in 2023 is deducted as follows:




                                                                                                                        PROFILE
                                                                                                                        CORPORATE
           DESCRIPTION                       UNIT             TARGET          REALIZATION      ACHIEVEMENT

 Sales and Financial Performance

 Total New Financing Disbursement         Rp Million           12,429             10,994             88.5%

 Total Assets                             Rp Million           15,440             14,102             91.3%

 Total Financing Receivables (net)        Rp Million           14,192             12,840             90.5%




                                                                                                                        DISCUSSION & ANALYSIS
                                                                                                                        MANAGEMENT
 Total Liabilities                        Rp Million           12,244             11,385             93.0%

 Total Equity                             Rp Million            3,196              2,717             85.0%

 Total Revenues                           Rp Million            4,891              4,569             93.4%

 Total Expenses                           Rp Million            3,783              4,090           108.1%

 Total Net Income                         Rp Million              857                   371          43.3%

 Financial Ratio

 BOPO                                         %                78.9%              91.1%

 FAR                                          %                91.9%              91.1%
                                                                                                                        GOVERNANCE
                                                                                                                        CORPORATE



 NPF (net)                                    %                0.45%              1.02%

 Gearing                                      x                  3.6x                   3.9x

 Capital Ratio                                %                 27.9X             27.0%




As end of December 2023, the Company booked               2022, the Company booked total financing receivables
total assets of Rp14.1 trillion or realization of 91.3%   growth of 1.0% (YoY).
compared to the Company’s projection in Business Plan
Report 2023 submitted to OJK. This was contributed        The decelerating financing disbursement value in 2023
from realization of the Company’s net financing           caused a moderate growth in financing receivables. By
                                                                                                                        REPORT
                                                                                                                        SUSTAINABILITY




receivables that only reached 90.5% to the Company’s      end of 2023, total financing disbursement realization
projection. However, if compared the same period in       was only 88.5% compared to the Company’s projection




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                        183
Page 184
  MANAGEMENT
  DISCUSSION & ANALYSIS




         of Rp11.0 trillion. This was related to a decrease in
         financing receivables in Yamaha motorcycle and car                2024 Projection
         financing products. In 2023, new Yamaha motorcycle
         financing disbursement decreased to Rp5.9 trillion as        Indonesia’s economic performance is projected to
         end of December 2023 from Rp6.2 trillion by end of           remain strong amidst weakening global economic
         2022. Car financing also decreased almost 20% to             prospects. In 2024, Indonesia’s economic growth is
         Rp1.3 trillion from Rp1.6 trillion. Disruption in vehicles   5.2% (YoY) that is surely expected to be achieved
         unit supply due to scarcity of semi-conductor chip,          supported by robust domestic economic fundamentals
         particularly for Yamaha motorcycle (premium model)           as the national economic growth managed to record
         became a notable challenge, especially in 1st half of        more than 5% achievement for seven consecutive
         2023. However, sharia financing that was dominated           quarters (Q4-2021 to Q2- 2023). Nevertheless, we shall
         by BAF Dana Syariah product managed to become                always be cautious observing the situations at domestic
         a growth contributor for financing disbursement              level such as the slowing exports, increasing domestic
         throughout 2023. BAF Dana Syariah grew by 39.0%              interest rates and depreciation of Rupiah exchange
         (YoY).                                                       rate. However, election events were seen to increase
                                                                      government consumption (direct impact) and public
         Funding wise, realization of both total domestic and         consumption (indirect impact). Many business actors
         foreign funding booked by the Company are always be          tended to wait and see the future policy directions.
         aligned with the Company’s financing needs. In 2023,         On the other hand, in 2024, economic recovery shall
         the Company still optimized loans from clean facility        also be concerned following several global situations,
         through onshore and bonds issuance.                          which may affect the domestic economy, including the
                                                                      actual case, such as warfare including Israeli-Palestinian
         Securities issuance plans have been done through the         and Russian-Ukrainian wars as well as the threat of
         issuance of Bussan Auto Finance Shelf-Registered Bonds       climate change that may disrupt food supply chain
         II Phase III and Shelf-Registered Bonds II Phase IV          and affect national economic stability. However, with
         Bussan Auto Finance with a total issuance value of Rp1.7     strong fundamentals, Indonesia managed to maintain
         trillion in 2023. Therefore, the entire PUB II plafonds      economic growth in the next year.
         have been issued based on initial target. The issuance
         received positive response from the investors. The           AISI targeted motorcycle sales growth, similarly with
         Company also consistently paid the interest quarterly        Gaikindo. AISI has set the motorcycle sales target
         to the investors, including repayment of principal for       growth approximately 7%-12% to reach 6.5 million
         Bonds II Phase I Series A 2022 with a principal amount       units. GAIKINDO set the car sales target to reach around
         of Rp88.5 billion, Shelf-Registered Bonds I Phase I          1.1 million units in 2024. In financing industry, APPI is
         2020 of Rp100.0 billion, Sukuk Mudharabah Shelf-             optimistic that the financing industry business recovery
         Registered Bonds I Phase I 2020 of Rp15.0 billion, Shelf-    will have a conservative growth. OJK projected that
         Registered Sukuk Mudharabah I Phase II Series A 2020         multi-finance financing receivables will grow double
         of Rp112.00billion, and Shelf-Registered Bonds II Phase      digits in 2024.
         II Series A 2022 of Rp655.0 billion.
                                                                      The Company plans to optimize sales in new Yamaha
         As end of 2023, the Company booked net profit of             motorcycle financing business line as the Company’s
         Rp370.6 billion or below the Company’s target. The           core business by strengthening and adjusting portfolio
         achievement decreased by 45.8% (YoY) if the allowance        strategic plans among the Company, Yamaha and
         for doubtful receivables was calculated. Anticipatory        the dealers. In addition, strengthening the portfolio
         and measurable plans have been disclosed in Business         strategy will be carried out focusing on 4 (four) business
         Plan Report 2024 and have been submitted to OJK.             pillars, such as two-wheeled and four-wheeled vehicles,
                                                                      digital business and MSMEs financing. Consequently,
         In terms of financial ratio, as end of December 2023,        the Company will also accelerate contribution of non-
         the Company’s capital ratio stood at 27.0%. The              Yamaha financing business lines, especially BAF Dana
         Company’s capital ratio was calculated from adjusted         Syariah financing line and car financing, while always
         equity to adjusted assets that was below the acceptable      concerning financing quality aspect. Strengthening
         limit determined by OJK, where the capital ratio is          the Company’s portfolio strategy as one stop financial
         minimum 10%. The Company’s net non-performing                services will be continuously carried out by presenting
         financing (NPF) ratio stood at 1.02% in line with            range of financing products for various needs, including
         the increasing expenses in allowance for doubtful            development of innovative financing product services
         receivables. Realization of the Company’s profitability      that are integrated with e-commerce (basket financing)
         ratio was below projections in line with bottom line         as a strategy to expand digital financing lines.
         performance. As of the end of December 2023, ROA is at
         the level of 3.5%, while ROE is 14.2%. The Company’s         In 2024, the Company’s total assets are targeted to
         BOPO was realized higher than projections at 91.1% in        increase double digit compared to the achievement
         line with the increase in operating expenses.                as end of December 2023. The total assets growth
                                                                      projection is in line with the growth projection in
                                                                      the Company’s total receivables by end of 2024.
                                                                      Multipurpose financing still becomes the largest




184
Page 185
PT BUSSAN AUTO FINANCE




                                                                                                                               HIGHLIGHTS
                                                                                                                               PERFORMANCE
composition in the Company’s financing receivables           have a sustainable growth, while optimizing benefit
projection structure as of December 2024 achieving           of the shareholders by optimizing debt and equity
more than 60% of the Company’s total financing               balances. The Company’s capital structure consists
receivables.                                                 of bank loans, bonds payable and shareholder equity
                                                             comprising of issued capital, additional paid-in capital,
Considering various initiatives that will be done by         other comprehensive income and retained earnings.
the Company, supported by good projections, the              The Company’s Board of Directors will review the




                                                                                                                               REPORT
                                                                                                                               MANAGEMENT
Company’s sales and revenues are targeted to grow            capital structure periodically, including considering the
higher in 2024. The Company also strives to maintain         cost of capital and related risks.
cost efficiency initiative, thereby the Company
targeted operating income to grow higher compared to         From dividends policy perspective, the dividends
achievements in 2023.                                        payment will be decided through the General Meeting
                                                             of Shareholders. Therefore, changes in the policy
Consistently with the Company’s net profit projection,       regarding dividend payments will always be adjusted to
profitability ratios such as Return on Assets (ROA) and      the Company’s shareholders resolutions.
Return on Equity (ROE) are also expected to increase.
Other financial ratios are projected to be stable in 2024.   Conditions in 2024 will always be concerned while
Non-Performing Financing (NPF) – net ratio is also           performing evaluation and monitoring, including
projected to be stable below 1% level by end of 2024.        adjustment of the Company’s strategy and projections




                                                                                                                               PROFILE
                                                                                                                               CORPORATE
                                                             according to conditions in the market, automotive
Funding aspect becomes an important matter for the           industry, as well as other internal and external factors
Company to support the Company’s growth. Strong              including other policies from regulators that may
funding support in the Company provides the Company          affect the Company’s business environment and the
with advantages in supporting business continuity,           achievements in in 2024.
including to fulfil the Company’s matured obligations.
In addition to bank loans, the Company is also still         Considering the prospects and challenges ahead,
targeting to acquire source of funding in the capital        the Company has prepared strategies and plans
market through bonds shelf-registration (PUB). In 2024,      as disclosed in Business Plan 2024, which has been
the Company will also repay the principal of matured         prepared by the Board of Directors and discussed with
securities.                                                  the Board of Commissioners. The Company will ensure




                                                                                                                               DISCUSSION & ANALYSIS
                                                                                                                               MANAGEMENT
                                                             that implementation of these various strategies will
In terms of capital structure, the Company always            always consider prudent principle and risk management
manages capital risks to assure that the Company will        aspects, as well as the Company’s internal audit.




                                                                                                                               GOVERNANCE
                                                                                                                               CORPORATE
                                                                                                                               REPORT
                                                                                                                               SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                               185
Page 186
      MANAGEMENT
      DISCUSSION & ANALYSIS




                          CHANGES IN ACCOUNTING POLICY,
                          REASONS, AND IMPACTS TO
                          FINANCIAL STATEMENTS


             In the current year, the Company has applied              adoption of these new/revised PSAKs does not result
             amendments/revisions/improvements to PSAK that are        in changes to the Company’s accounting policies and
             relevant to its operations and effective for accounting   has no material effect on the amounts reported in these
             period beginning on or after January 1, 2023. The         financial statements.


                  ACCOUNTING                ADOPTION                                                  IMPACT ON THE COMPANY’S
                                                                 SUMMARY OF CHANGES
                   STANDARD                  OF IAS                                                    FINANCIAL STATEMENTS

              Amandemen PSAK 1              International    Amendment to PSAK 1 require                 The Company has
              “Penyajian Laporan            Accounting       entities to disclose “material              implemented the
              Keuangan” tentang             Standards        accounting policy information”              necessary changes to its
              Klasifikasi Liabilitas        (IAS) 1          previously “significant accounting          accounting policies. The
              sebagai Jangka Pendek         Presentation     policy information” and clarify that        Company has determined
              atau Jangka Panjang dan       of Financial     not all accounting policies related         that the impact is not
              Pengungkapan Kebijakan        Statements       to transactions, events or other            material to its financial
              Akuntansi                                      material conditions are material to         statements.
                                                             the financial statements.

              Amandemen PSAK 25             IAS 8            This amendment to PSAK 25
              “Kebijakan Akuntansi,         Accounting       introduces the definition of
              Perubahan Estimasi            Policies,        accounting estimate and clarifies:
              Akuntansi, dan Kesalahan”     Changes          • estimation techniques and
              tentang Definisi Estimasi     in                   valuation techniques are
              Akuntansi                     Accounting           examples of measurement
                                            Estimates            techniques used in developing
                                            and                  accounting estimates.
                                            Errors           • changes in accounting estimates
                                                                 as a result of new information or
                                                                 new developments that are not
                                                                 corrections of errors.

              Amendemen PSAK 46             IAS 12           This amendment to PSAK 46
              “Pajak Penghasilan”           Income           proposes that entities recognize
              tentang Pajak Tangguhan       Taxes on         deferred tax assets and liabilities at
              terkait Aset dan Liabilitas   Deferred Tax     the time of initial recognition, for
              yang timbul dari Transaksi    related to       example from lease transactions, to
              Tunggal                       Assets and       eliminate differences in practice in
                                            Liabilities      the field for these transactions and
                                            arising from     similar transactions.
                                            a Single
                                            Transaction

              Amendemen PSAK 107            -                PSAK 107 covers ijarah contracts            The Company has
              “Akuntansi Ijarah”                             used in the financial sector.               implemented the
                                                                                                         necessary changes to its
                                                                                                         accounting policies. The
                                                                                                         Company has determined
                                                                                                         that the impact is not
                                                                                                         material to its financial
                                                                                                         statements.




186
Page 187
PT BUSSAN AUTO FINANCE




                                                                                                                        HIGHLIGHTS
                                                                                                                        PERFORMANCE
             CHANGES IN RULES AND
             REGULATIONS IN 2023




                                                                                                                        REPORT
                                                                                                                        MANAGEMENT
OJK and IDX issued several regulations in 2023. The     later disseminated to relevant divisions/departments
regulations issued by the OJK are constantly reviewed   to ensure that the compliance has been carried out
by the Company to ensure the Company’s compliance       according to the regulatory due date.
with OJK and IDX regulations, as well as other
regulations that may affect the Company’s activities.   Some of the laws and regulations issued by OJK and IDX
Issuance of the regulations in 2023 was continuously    in 2023 and accepted by the Company altogether with
followed by the Company’s compliance plan, which is     impact to the Company are as follows:




                                                                                                                        PROFILE
                                                                                                                        CORPORATE
                                              EFFECTIVE
REGULATION               SUBJECT                                        IMPACT ON THE COMPANY
                                                DATE

 Financial         Amendment to              December         With this SEOJK, the Company acknowledges
 Service           Financial Service         27, 2022         and understands:
 Authority of      Authority of The                           1. Marketing of Insurance Products through
 The Republic      Republic of Indonesia                          Non-Bank Business Entities (BUSB) only
 of Indonesia      Circular Letter Number                         eligible to be done in form of references. In
 Circular Letter   19/SEOJK.05/2020                               the event where insurance products marketed
 Number 30/        on Insurance Product                           in collaboration with BUSB:
 SEOJK.05/         Marketing Channel                              a. Aims to mitigate the risks of BUSB’s




                                                                                                                        DISCUSSION & ANALYSIS
                                                                                                                        MANAGEMENT
 2022                                                                 business activities;
                                                                  b. Is a component of BUSB products or
                                                                      services; and/or
                                                                  c. Related to BUSB products sales.
                                                              The BUSB is allowed to assist administration
                                                              ofinsurance         termination      application,
                                                              underwriting and claims, and/or receiving
                                                              premiums or contributions.
                                                              2. The link connecting BUSB electronic system
                                                                  and the Company’s electronic system as
                                                                  referred to in number 6 includes the use of
                                                                  Application Programming Interface (API).
                                                                  In case the link usage, API shall meet the
                                                                  requirements, as follows:
                                                                  a. The API is company property;
                                                                  b. The Company has implemented effective
                                                                                                                        GOVERNANCE
                                                                                                                        CORPORATE



                                                                      information technology risk management
                                                                      in the use of APIs;
                                                                  c. The BUSB electronic system does not
                                                                      store customer data related to insurance
                                                                      applications after the policy is issued;
                                                                      And
                                                                  d. Before the transfer from the BUSB
                                                                      electronic system to the company’s
                                                                      electronic system, there is agreement
                                                                      from the customer regarding the transfer
                                                                      of the electronic system.
                                                                                                                        REPORT
                                                                                                                        SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                        187
Page 188
      MANAGEMENT
      DISCUSSION & ANALYSIS




                                                           EFFECTIVE
              REGULATION              SUBJECT                                     IMPACT ON THE COMPANY
                                                             DATE

              Financial         Amendment to             December       Following the implementation of SEOJK, the
              Service           Financial Service        27, 2022       Company acknowledges and understands:
              Authority of      Authority of The                        Implementation of Reassessment of the Main
              The Republic      Republic of Indonesia                   Party is done any time if based on evidence, data
              of Indonesia      Circular Letter Number                  and/or information obtained based on the results
              Circular Letter   15/SEOJK.05/209                         of indirect supervision (off-site supervision),
              Number 32/        Concerning Re-                          direct supervision (on-site supervision), and/or
              SEOJK.05/         Assessment for Main                     other information, if there is any indication of
              2022              Party of Non-Bank                       involvement and /or responsible.
                                Financial Service
                                Institution

              Financial         Improvement of           February 24,   With this POJK, the Company knows and
              Service           Financial Literacy and   2023           understands that the implementation of
              Authority         Inclusion in Financial                  financial literacy and inclusion activities must
              of The            Service Sector fo                       be carried out at least 1 (one) time in 1 (one)
              Regulation        Consumer and Society                    semester for each activity and must be reported
              Number 3                                                  as part of the business plan and business plan
              of 2023                                                   realization report and must be documented and
                                                                        the Company shall establish a Financial Literacy
                                                                        and Inclusion Function or Unit.

              Financial         On Implementation        June 14,       With this POJK, the Company acknolwedges and
              Service           of Anti-Money            2023           understands:
              Authority of      Laundering,                             1. Shall identify, assess and understand the
              The Republic      Combating Financing                        risks of Money Laundering Crimes (TPPU),
              of Indonesia      of Terrorism and                           Terrorism Financing Crimes (TPPT), and/
              Regulation        Proliferation of                           or Funding for the Proliferation of Weapons
              Number 8          Weapons of Mass                            of Mass Destruction (PPSPM) to Customers,
              of 2023           Destruction (PWMD)                         countries or geographic areas, products,
                                in Financial Service                       services, transactions or distribution network;
                                Sector                                     and documenting risk assessments, in form of
                                                                           risk assessment documents that have been
                                                                           prepared individually;
                                                                        2. Update the risk assessment 1 (one) time in 1
                                                                           (one) year and submit the TPPU, TPPT and/or
                                                                           PPSPM risk assessment documents to OJK
                                                                        3. Shall have policies, supervision and
                                                                           procedures for managing and mitigating
                                                                           TPPU, TPPT and/or PPSPM risks which are
                                                                           reviewed once a year and form a special work
                                                                           unit and/or appoint an official as the person
                                                                           responsible for implementing the APU, PPT
                                                                           and PPPSPM programs , at head office and
                                                                           branch offices;
                                                                        4. Shall report data updating plans submitted
                                                                           every year no later than the end of December
                                                                           before the data updating period and the
                                                                           realization of data updating submitted
                                                                           annually no later than the end of January
                                                                           after the data updating period ends.
                                                                           immediately, submitted no later than 3
                                                                           (three) working days after the Company
                                                                           receives the DTTOT and DPPSPM and a copy
                                                                           of the nil report is submitted no later than
                                                                           3 (three) working days after the Company
                                                                           receives the DTTOT and DPPSPM to the OJK




188
Page 189
PT BUSSAN AUTO FINANCE




                                                                                                                         HIGHLIGHTS
                                                                                                                         PERFORMANCE
                                               EFFECTIVE
REGULATION               SUBJECT                                       IMPACT ON THE COMPANY
                                                 DATE

                                                             5. Shall identify and carry out a risk assessment
                                                                for TPPU, TPPT, and/or PPSPM related to
                                                                the development of new products and
                                                                business practices, including new distribution




                                                                                                                         REPORT
                                                                                                                         MANAGEMENT
                                                                mechanisms, and the use of new technology
                                                                or technological development for new or
                                                                existing products;
                                                             6. Shall carry out verification as intended in
                                                                paragraph (1) letter b through mechanisms:
                                                                face to face and non-face to face via electronic
                                                                means and must carry out assessments to
                                                                determine prospective customers, customers,
                                                                WIC, or Beneficial Owner as PEP;
                                                             7. Eligible to apply results of identification and
                                                                verification carried out by third parties on
                                                                prospective customers who have become




                                                                                                                         PROFILE
                                                                                                                         CORPORATE
                                                                customers of third parties and can postpone
                                                                transactions as intended in the laws and
                                                                regulations regarding the prevention and
                                                                eradication of TPPU;
                                                             8. If there is any request from Financial
                                                                Transaction Reports and Analysis Center, the
                                                                PJK is obliged to temporarily suspend all or
                                                                part of the transaction;
                                                             9. In the event that a business relationship
                                                                is closed, the PJK is obliged to notify the
                                                                Customer in writing regarding the closure of




                                                                                                                         DISCUSSION & ANALYSIS
                                                                                                                         MANAGEMENT
                                                                the business relationship.

 Financial         Implementation            July 11, 2023   With this POJK, the Company acknolwedges
 Service           of Anti-Money                             and understands that the General Meeting of
 Authority         Laundering,                               Shareholders is required to decide appointment
 of The            Combating Financing                       of a Public Accountant and/or Public Accounting
 Regulation        of Terrorism and                          Firm (AP/KAP) which will provide audit services
 Number 3          Proliferation of                          for annual historical financial information
 of 2023           Weapons of Mass                           by considering the proposals of the Board of
                   Destruction (PWMD)                        Commissioners, Supervisory Board, or parties
                   in Financial Service                      carrying out the function. supervision as carried
                                                             out by the board of commissioners and there are
                                                             adjustments to the cooling off period in using
                                                             audit services for annual historical financial
                                                             results from AP which are the same as cumulative
                                                             calculations, accumulated since fiscal year 2017.
                                                                                                                         GOVERNANCE
                                                                                                                         CORPORATE




 Financial         Procedure to Use          November 6,     With this POJK, the Company acknolwedges
 Service           Public Accountant and     2023            and understands that the General Meeting of
 Authority         Public Accountant                         Shareholders is required to decide appointment
 of The            Firm Services in                          of a Public Accountant and/or Public Accounting
 Regulation        Financial Service                         Firm (AP/KAP) which will provide audit services
 Number 3          Activity                                  for annual historical financial information
 of 2023                                                     by considering the proposals of the Board of
                                                             Commissioners, Supervisory Board, or parties
                                                             carrying out the function. supervision as carried
                                                             out by the board of commissioners and there are
                                                             adjustments to the cooling off period in using
                                                             audit services for annual historical financial
                                                             results from AP which are the same as cumulative
                                                             calculations, accumulated since fiscal year 2017.
                                                                                                                         REPORT
                                                                                                                         SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                         189
Page 190
  MANAGEMENT
  DISCUSSION & ANALYSIS




                                                           EFFECTIVE
          REGULATION                SUBJECT                                             IMPACT ON THE COMPANY
                                                             DATE

          Financial          Electronic Permit,          November 9,         With this SEOJK, the Company acknolwedges
          Service            Approval and                2023                and understands that applications for licensing,
          Authority          Reporting Application                           approval and reporting as required in the
          of The             for Financing                                   Financial Services Authority Regulation Number
          Regulation         Company and Sharia                              47/POJK.05/2020 concerning Business and
          Number 3           Financing Company                               Institutional Permit for Financing Companies
          of 2023                                                            and Sharia Financing Companies, are submitted
                                                                             to the Financial Services Authority grouped as
                                                                             follows:
                                                                             a. Permit application;
                                                                             b. Application for approval; And
                                                                             c. Reporting.




         In addition to regulations issued by OJK and IDX,             4. Regulation of the Government Number 5 of 2023 on
         throughout 2023, the Company has also anlysed other              Investigation of Criminal Acts Within the Financial
         regulations through Compliance Department, as follows:           Services Sector;
         1. Law Number 1 of 2023 on Criminal Code;                        The Company acknolwedges and understands:
             This provision affected to understanding on every            a. Criminal Investigators in the Financial Services
             action related to withdrawing collateral/credit                 Sector consist of:
             objects, including embezzlement and other criminal              • Investigating officer at the National Police
             acts that may be related to the Company’s activities.               of the Republic of Indonesia; And
         2. Law Number 4 of 2023 on the Development and                      • Financial Services Authority Investigators:
             Strengthening in FinancialService Sector;                           a) Investigating officer for the Republic of
             The Company acknolwedges and understands:                               Indonesia National Police;
             a. Financial Literacy and Financial Inclusion                       b) Certain civil servant officials; And
                 • Financial Sector Business Actors (PUSK) are                   c) Certain Employees.
                     required to perform activities to improve                       who is given special authority as
                     Financial Literacy and Financial Inclusion for                  an investigator as intended in the
                     Consumers and the Society;                                      Criminal Procedure Code, to carry out
             b. Principles and Objectives of Customer Protection                     investigations into criminal acts in the
                 • PUSK in carrying out its business activities is                   financial services sector.
                     obliged to apply the principles of Customer          b. Financial Services Authority investigators have
                     Protection;                                             the authority and responsibility:
                 • Customer Protection in the financial sector               a) Receive reports, notifications or complaints
                     applies the principles:                                     from someone regarding criminal acts in the
                     1) Adequate education;                                      Financial Services Sector;
                     2) Openness and transparency of product                 b) Conduct research on the veracity of reports
                         and/or service information;                             or information relating to criminal acts in the
                     3) Fair treatment and responsible business                  financial services sector;
                         conduct;                                            c) Conduct research on any person suspected
                     4) Protection of Customer assets, privacy                   of committing or being involved in a criminal
                         and data;                                               act in the financial services sector;
                     5) Effective and efficient handling of                  d) Summon, examine and request information
                         complaints and dispute resolution;                      and evidence from every person suspected of
                     6) Compliance enforcement; And                              committing or being a witness in a criminal
                     7) Fair competition.                                        act in the financial services sector;
                         This provision results in readjustments of          e) Requesting the competent authorities to
                         policies, procedures and implementation                 take precautions against Indonesian citizens
                         of customer and community protection                    and/or foreigners as well as deterring
                         for potential consumers, existing                       foreigners who are suspected of committing
                         consumers and the society                               criminal acts in the Financial Services Sector;
         3. Law Number 6 of 2023 on the Enactment of                         f) Carrying out examinations of books, records
             Regulation on Government in Lieu of Law Number 2                    and other documents relating to criminal
             of 2022 on Job Creation into Law;                                   acts in the financial services sector;




190
Page 191
PT BUSSAN AUTO FINANCE




                                                                                                                          HIGHLIGHTS
                                                                                                                          PERFORMANCE
       g) Request assistance from the National Police             o) Submit the results of the investigation to
          of the Republic of Indonesia or other relevant             the Prosecutor for prosecution in accordance
          agencies to carry out arrests, detention,                  with statutory provisions.
          searches and confiscations in criminal cases            p) This provision has an impact on
          in the Financial Services Sector that are                  understanding each of the Company’s
          being handled;                                             activities to improve implementation of
       h) Carrying out searches in any particular                    Good Governance for Financing Companies




                                                                                                                          REPORT
                                                                                                                          MANAGEMENT
          place where it is suspected that there is any              provisions.
          evidence of bookkeeping, recording and
          other documents and confiscating items           5. Regulation of the Government Number 35 of
          that can be used as evidence in criminal             2023 on General Provisions for Regional Taxes and
          cases in the Financial Services Sector;              Regional Levies;
       i) Block accounts at banks or other financial       6. Regulation of the Government Number 35 of
          institutions of any person suspected of              2023 on the Second Amendment to Regulation
          committing or being involved in criminal acts        of the Government Number 44 of 2015 on the
          in the financial services sector;                    Organization of Work Accident and Life Insurance
       j) Request data, documents or other                     Programs;
          evidence, whether printed or electronic,         7. Regulation of the Government Number 51 of 2023
          from telecommunications service providers            on the Amendment to Regulation of the Government




                                                                                                                          PROFILE
                                                                                                                          CORPORATE
          or data and/or document storage service              Number 36 of 2021 on Wages;
          providers;                                       8. Regulation of the President Number 47 of 2023 on
       k) Request information from financial services          National Cyber Security Strategy and Cyber Crisis
          institutions regarding the financial condition       Management;
          of parties suspected of committing or being      9. Regulation of the President Number 57 of 2023 on
          involved in violations of laws and regulations       Mandatory Reporting of Job Vacancies;
          in the financial services sector;                10. Regulation of the Minister of Finance Number 136
       l) Request expert assistance in carrying out the        of 2023 on the Amendment to Regulation of the
          task of investigating criminal offenses in the       Minister of Finance Number 112/PMK.03/2022
          financial services sector;                           on Taxpayer Identification Number for Individual
       m) Carrying out investigations into criminal            Taxpayers, Corporate Taxpayers and Government




                                                                                                                          DISCUSSION & ANALYSIS
                                                                                                                          MANAGEMENT
          acts of money laundering with predicate              Agency Taxpayers; and
          crimes in the form of Crimes in the Financial    11. Governor’s Decree Number 818 of 2023 on the
          Services Sector;                                     Provincial Minimum Wage in the Year 2024, which
       n) Request assistance from other law                    will come into force since January 1, 2024.
          enforcement officers; And




                                                                                                                          GOVERNANCE
                                                                                                                          CORPORATE
                                                                                                                          REPORT
                                                                                                                          SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                          191
Page 192
      MANAGEMENT
      DISCUSSION & ANALYSIS




                          DIVIDEND
                          PAYMENT POLICY

                                                                            4. The profit, which is distributed as dividends that are
                  Dividend Policy                                              not claimed within 5 (five) years after being made
                                                                               available for payment, are included in a reserve fund
             The Company implements a dividend payment policy                  that is specifically designated for such purpose.
             based on Law No. 40 of 2007 concerning Limited
             Liability Companies, the dividend refers to the General        Dividends in the special reserve fund can be claimed
             Meeting of Shareholders resolutions                            by the eligible shareholders before expired within the 5
                                                                            (five) years period, by submitting proof of their rights
             In order to ensure implementation of Good Corporate            upon the dividends that can be received by the Board
             Governance principles in terms of dividend payment,            of Directors.
             the Company has a dividend policy as stipulated in
             the Articles of Association, particularly in Article 22        By considering provisions of the laws and regulations,
             concerning Profits Distribution and Dividends Payment.         the Company is also eligible to pay interim dividends
                                                                            before end of the Company’s fiscal year, if: (i) the total
             1. The Company’s Net Profit in each fiscal year as             net assets of the Company shall not less than the total
                presented in the balance sheet as well as profit and        issued and paid-up capital added with mandatory
                loss statements as ratified by the Annual General           reserves; (ii) The distribution of the interim dividend
                Meeting of Shareholders with a positive profit              shall not interfere with or cause the Company failed
                balance will be distributed based on the method             to fulfil its obligations to creditors or interfere with
                of distribution as stipulated by the Annual General         the Company’s activities. The distribution of interim
                Meeting of Shareholders.                                    dividends is determined based on the decision of the
             2. In the case that Annual General Meeting of                  Board of Directors after obtaining the approval of
                Shareholders does not determine the distribution,           the Board of Commissioners, considering the above
                the net profit net of mandatory under the law and           provisions. In the case where after end of the financial
                the articles of association will be distributed as          year the Company suffers a loss, the interim dividend
                dividends.                                                  that has been distributed must be returned by the
             3. In the event where profit and loss calculation in a         Company’s shareholders.
                fiscal year indicates a loss that cannot be covered
                by the reserve fund, the loss will still be recorded and
                calculated in the next fiscal year’s profit and loss             Chronology of Dividend Payment
                calculation where the Company is considered not
                earning profit as long as the loss calculated in the        Detail information of the dividend payment in the last
                profit and loss has not been completely covered.            3 years is as follows:



                                                           DIVIDEND                           PAYOUT   ANNOUNCEMENT
              FISCAL    TYPE OF         NET INCOME                         TOTAL DIVIDEND                                 PAYMENT
                                                           PER SHARE                           RATIO    /INFORMATION
               YEAR    DIVIDENDS            (RP)                                 (RP)                                       DATE
                                                              (RP)                              (%)          DATE


              2022     Final          683,090,705,000       676,191        239,081,528,061      35% May 8th,           May 11th,
                       Dividend                                                                     2023               2023

              2021     Final          473,727,440,000       409,951        142,118,232,000      30% April 14th,        April 14th,
                       Dividend                                                                     2022               2022

              2020     The Company did not pay dividend as recording net loss in 2020.




192
Page 193
PT BUSSAN AUTO FINANCE




                                                                                                                           HIGHLIGHTS
                                                                                                                           PERFORMANCE
For fiscal year 2023, the dividend payment decision will   Fiscal Year 2021, the Annual General Meetings of
be decided through General Meeting of Shareholders         Shareholders decided to approve the distribution of
that will be held in 2024. Therefore, change in policy     profit booked in Fiscal Year 2021 as cash dividend to
related to dividend payment will always be adjusted        the Shareholders of the Company, i.e. in the amount of
based on the Company’s shareholders resolutions.           30% (thirty percent) of the Company’s profit in Fiscal
                                                           Year 2021 with a total amount of Rp142,118,232,000
                                                           (one hundred forty two billion one hundred eighteen




                                                                                                                           REPORT
                                                                                                                           MANAGEMENT
     Dividend Payment for Fiscal Year 2022                 million two hundred and thirty two thousand Rupiah)
                                                           where the dividend payment to the Shareholders is
According to Annual General Meetings of Shareholders       based on the percentage of share ownership. The
Minutes of Meeting with regards to Fiscal Year 2022,       dividend payment for each Shareholder is scheduled
Annual General Meetings of Shareholders decided to         to be conducted within April 2022 net of income tax
approve the profit utilization obtained in FY2022 to       according to the prevailing provisions.
be distributed as cash dividend to the Shareholders
of the Company, i.e. in the amount of 35% (thirty-         Next, the Shareholders will instruct the Company to
five percent) of the Company’s profit booked in Fiscal     send detail notification regarding amount of dividends
Year 2022 with a total amount of Rp239,081,528,061         received by each Shareholder of the Company according
(two hundred thirty-nine billion eighty-one million        to the number of shares ownership.
five hundred twenty-eight thousand and sixty-one




                                                                                                                           PROFILE
                                                                                                                           CORPORATE
Rupiah) where the distribution of the dividend to          In 2022, dividend payments for Fiscal Year 2021 were
the Shareholders refers to the percentage of share         executed on April 14th, 2022, with a total dividend per
ownership. The dividend payment for each Shareholder       share of Rp409,951.
is scheduled to be conducted within May 2023, net of
income tax according to prevailing provisions. Next, the
Shareholders will instruct the Company to send detail           Dividend Payment Fiscal Year 2020
notification regarding amount of the dividends received
by each Shareholder of the Company according to the        According to the Minutes of Meetings of the Annual
number of shares ownership.                                General Meetings of Shareholders regarding the Fiscal
                                                           Year 2020, Annual General Meetings of Shareholders
In 2023, dividend payments for Fiscal Year 2022 were       decided that by considering the Company’s financial




                                                                                                                           DISCUSSION & ANALYSIS
                                                                                                                           MANAGEMENT
executed on May 11th, 2023, with a total dividend per      performance Fiscal Year 2020 with net loss of
share of Rp676,191.                                        Rp282,571,651,299 (two hundred eighty-two billion
                                                           five hundred seventy-one million six hundred fifty-one
                                                           thousand two hundred ninety-nine Rupiah). Therefore,
     Dividend Payment Fiscal Year 2021                     the Company did not pay dividends to Shareholders
                                                           concerning the Fiscal Year 2020.
According to the Annual General Meetings of
Shareholders Minutes of Meeting with regards to




                                                                                                                           GOVERNANCE
                                                                                                                           CORPORATE
                                                                                                                           REPORT
                                                                                                                           SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                           193
Page 194
      MANAGEMENT
      DISCUSSION & ANALYSIS




                           MATERIAL INFORMATION ON INVESTMENT,
                           EXPANSION, DIVESTMENT, MERGER, ACQUISITION
                           OR DEBT/CAPITAL RESTRUCTURING


             In 2023, there were no material information related to         will become effective after completion of approval
             investment, expansion, divestment, merger, business            procedures by the authorities in Indonesia.
             consolidation, acquisition or restructuring of the
             Company’s debt/capital.                                        Later on September 25, 2023, a circular decision of
                                                                            shareholders in lieu of the Company’s EGMS decided
             Therefore, information regarding: a) transaction date,         to approve changes to the composition of shareholders
             value and object; b) name of the party who conducted           and the Board of Commissioners, as well as the changes
             ut the transaction; c) nature of the affiliate relationship    in the Company’s Articles of Association.
             (if any); d) explanation regarding the fairness of the
             transaction; e) fulfillment of related provisions; and f)      The change in shareholders has been followed up by
             in the event that there is an affiliate relationship as        signing a share transfer deed as stated in Share Transfer
             stipulated in SEOJK No. 16/SEOJK.04/2021 concerning            Deed Number 29 dated September 26, 2023, between
             the Form and Content of Issuer or Public Company               Mitsui & Co. Ltd. as seller and JA Mitsui Leasing, Ltd. as
             Annual Reports cannot be disclosed.                            buyer, drafted before Marina Soewarna, S.H., Notary in
                                                                            Central Jakarta.
             However, on June 29 2023, one of the Company’s
             shareholders, who is Mitsui & Co., Ltd. has signed a           Thus, the Company’s shares ownership are Mitsui Co.,
             Conditional Sale and Purchase Agreement with JA                Ltd. with 45.0% and JA Mitsui Leasing, Ltd. with 20.0%
             Mitsui Leasing Ltd. related to the plan to dispose 20.0%       ownership. The detail shareholders composition as of
             (twenty percent) of the Company’s shares owned by              December 31, 2023 is presented in the shareholders
             Mitsui & Co., Ltd to JA Mitsui Leasing Ltd. This transaction   composition section.
             has no impact on the Company’s operational activities,
             law, financial condition or business continuity and




                           MATERIAL INFORMATION WITH
                           CONFLICT OF INTEREST AND/OR
                           AFFILIATED PARTY TRANSACTION
             In accordance with PSAK No. 7 regarding “Related Party         b. An entity is related to the reporting entity if any of
             Disclosure”, a related party is a person or entity that is        the following conditions applies:
             related to the reporting entity (the Company) as follows:         i. The entity and the reporting entity are members
                                                                                    of the same group (which means that each
             a. A person or a close member of that person’s family is               parent, subsidiary and fellow subsidiary is related
                related to the reporting entity if that person:                     to the others).
                i. has control or joint control over the reporting             ii. One entity is an associate or joint venture of the
                     entity;                                                        other entity (or an associate or joint venture of a
                ii. has control or joint control over the reporting                 member of a group, of which the other entity is a
                     entity;                                                        member).
                iii. is a member of the key management personnel               iii. Both entities are joint ventures of the same third
                     of the reporting entity or of a parent of the                  party.
                     reporting entity.                                         iv. One entity is a joint venture of a third entity and
                                                                                    the other entity is an associate of the third entity.




194
Page 195
PT BUSSAN AUTO FINANCE




                                                                                                                                       HIGHLIGHTS
                                                                                                                                       PERFORMANCE
   v. The entity is a post-employment benefit plan for            In the business activities, the Company engages in
         the benefit of employees of either the reporting         transactions with related parties, such as Mitsui & Co.,
         entity or an entity related to the reporting             Ltd., as the Company’s majority shareholder and main
         entity. If the reporting entity is itself such a plan,   parent entity. The Company received support and
         the sponsoring entities are also related to the          assistance from Mitsui & Co. Ltd. which includes support
         reporting entity.                                        and assistance to develop customers and promote new
   vi. The entity is controlled or jointly controlled by a        business and to strengthen customer relationships,




                                                                                                                                       REPORT
                                                                                                                                       MANAGEMENT
         person identified in (a).                                including banks. As compensation, in 2023, the Company
   vii. A person identified in (a) (i) has significant            was billed for loan and guarantee arrangements of Rp8.1
         influence over the entity or is a member of the          billion (2022: Rp17.8 billion). At the reporting date, the
         key management personnel of the entity (or of a          liability for the transaction is recorded as part of accrued
         parent of the entity).                                   expenses.
   viii. The entity, or any member of a group of which
         it is a part, provides key management personnel          The transaction is a business activity carried out to earn
         services to the reporting entity or to the parent of     operating income and is carried out regularly, repeatedly,
         the reporting entity.                                    and continuously, and has been disclosed in the notes to
                                                                  the Company’s annual financial statements, as part of
                                                                  this annual report.




                                                                                                                                       PROFILE
                                                                                                                                       CORPORATE
             MANAGEMENT AND
             EMPLOYEES SHARES



                                                                                                                                       DISCUSSION & ANALYSIS
                                                                                                                                       MANAGEMENT
             OWNERSHIP PROGRAM

In 2023, the Company did not conduct any Management               share ownership program by employees employee stock
and Employee Stock Option Plan. Therefore, a brief                option plan/ESOP), which includes the number of shares
description of the policy of providing long-term                  and/or options; implementation period; requirements
performance-based compensation to management                      for eligible employees and/or management; and
and/or employees owned by the Company, such as in                 exercise price or determination of exercise price; cannot
form of management stock option plan (MSOP) and/or a              be disclosed in this report.
                                                                                                                                       GOVERNANCE
                                                                                                                                       CORPORATE
                                                                                                                                       REPORT
                                                                                                                                       SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                       195
Page 196
      MANAGEMENT
      DISCUSSION & ANALYSIS




                          SUBSEQUENT MATERIAL INFORMATION
                          AND FACTS AFTER THE ACCOUNTANT
                          REPORTING PERIOD
             There is no subsequent material information and facts after the accountant reporting period.




                          REALIZATION OF PUBLIC
                          OFFERING PROCEEDS

             As a compliance to OJK Regulation no. 30/POJK.04/2015        2023 for June 2023 Period through Company letter
             concerning Reports on the Realization of Public              No. BAF/183/CP/VII/2023 dated July 17, 2023, the
             Offerings Proceeds, the Company always reports the           Public Offering Proceeds realization report from PUB II
             realization of the public offerings proceeds to OJK,         Phase IV 2023 for the December 2023 period through
             starting from Bonds I, Bonds II, Bonds III and Shelf-        Company letter No. BAF/014/CP/I/2023 dated 13
             Registration (PUB) of Bonds and/or Sukuk Mudharabah          January 2023 to OJK, IDX, trustee, and published on the
             Phase I – V and PUB II Phase I - IV. The reports have        stock exchange website.
             been submitted to OJK, IDX, trustee, and published on
             the stock exchange website.                                  The total proceeds from the public offering amounted
                                                                          Rp1.20 trillion for PUB II Phase II, Rp1.24 trillion for
             In 2023, with regards to a fallacy on the presentation       PUB II Phase III, and Rp458.0 billion for PUB II Phase
             of public offering proceeds realization report, the          IV. The public offering expenses for PUB II Phase II
             Company has re-submitted the Public Offering Proceeds        amounted Rp4.13 billion, PUB II Phase III are Rp4.39
             Realization Report for the Shelf-Registration II Phase II,   billion, and PUB II Phase IV are Rp1.88 billion. Thus, the
             which has been submitted on December 2022 reporting          net proceeds for PUB II Phase II, PUB II Phase III, and
             period through Company letter No. BAF/183/CP/                PUB II Phase IV are Rp1.95 trillion, Rp1.23 trillion and
             VII/2023 dated July 17, 2023, where the outstanding          Rp456.12 billion, respectively.
             of the proceeds from shelf-registration II phase II has
             been fully used. The resubmission has been reported to       The proceeds outstanding from the PUB II Phase II 2022
             OJK, IDX and trustee.                                        is zero, PUB II Phase III 2023 is zero, and PUB II Phase
                                                                          IV 2023 is zero. Thus, the ceiling for the Company’s PUB
             In 2023, the Company will conduct another Bonds              II has been completely issued.
             Shelf-Registration (PUB) II Phase III in 2023 and PUB
             II Phase IV in 2023. With regards to this issuance, the      The detail information of the realization of the
             Company has submitted the public offering proceeds           Company’s public offering proceeds is presented as
             realization reports for from the PUB II Phase III in         follows:




196
Page 197
PT BUSSAN AUTO FINANCE




                                                                                                                                                HIGHLIGHTS
                                                                                                                                                PERFORMANCE
                                    TOTAL PUBLIC OFFERING PROCEEDS REALIZATION               PROCEEDS           PROCEEDS
    PUBLIC                                                                                     PLAN            REALIZATION         OUT
                      EFFECTIVE
   OFFERING                                                                                                                        STAN
                        DATE      TOTAL PUBLIC         PUBLIC
     TYPE                                                                  NET                                                     DING
                                    OFFERING          OFFERING                                DISBURSED AS FINANCING
                                                                         PROCEEDS
                                   PROCEEDS           EXPENSES                                   WORKING CAPITAL

 Shelf-Registration    June 24,   1,200,000,000,000    4,132,005,000   1,195,867,995,000   1,195,867,995,000   1,195,867,995,000     0




                                                                                                                                                REPORT
                                                                                                                                                MANAGEMENT
 Bonds II Phase         2022
 II Bussan Auto
 Finance Year 2022

 Shelf-Registration    June 24,   1,242,000,000,000    4,386,875,000   1,237,613,125,000   1,237,613,125,000   1,237,613,125,000
 Bonds II Phase         2022                                                                                                         0
 III Bussan Auto
 Finance Year 2023

 Shelf-Registration    June 24,    458,000,000,000     1,880,425,850    456,119,574,150     456,119,574,150     456,119,574,150
 Bonds II Phase         2022
 IV Bussan Auto                                                                                                                      0
 Finance Year 2023




                                                                                                                                                PROFILE
                                                                                                                                                CORPORATE
                                                                                                                                                DISCUSSION & ANALYSIS
                                                                                                                                                MANAGEMENT
                                                                                                                                                GOVERNANCE
                                                                                                                                                CORPORATE
                                                                                                                                                REPORT
                                                                                                                                                SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                                197
Page 198
      MANAGEMENT
      DISCUSSION & ANALYSIS




                          BUSINESS
                          PROSPECTS

             World agencies, such as the World Bank, International         around 12% - 13% in 2024 as the Indonesian economy
             Monetary Fund (IMF) and Organization for Economic             is targeted to grow by 5% and stronger customer
             Co-operation and Development (OECD) released the              purchasing power.
             projections that global economic conditions in 2024
             will slow down around 2.4% - 2.9% compared to global          Towards the various prospects and challenges ahead,
             economic growth projection in 2023, which was around          the Company has prepared various strategies and plans
             2.9% - 3.0%. The projection considered geopolitical           as disclosed in the 2024 Business Plan which has been
             tensions, real estate crisis in China which will cause        formulated by the Board of Directors and discussed with
             banking balance sheets to decline, the increasing risk        the Board of Commissioners. However, the Company
             of climate change, the prolong war between Russia             realizes that the Company prepared the projections for
             and Ukraine which triggered global commodity                  2024 based on parameters and assumptions that are
             prices volatility resulted to increasing global inflation,    obtained and reviewed concerning the current year’s
             geopolitical tensions between Israel and Palestine, as        conditions as well as the Company’s future conditions,
             well as the presidential election in the United States in     as well as the business environment. Therefore, in line
             2024. Furthermore, the United States Central Bank (The        with the current global challenges and the general
             Fed) is also predicted to raise interest rates to reduce      election year, the Company will remain prudent in
             high inflation.                                               approaching 2024.

             From the domestic side, the government strives the            Going forward, the Company will ensure that the
             economic recovery initiatives, however, 2024 will be          implementation of these various strategies always
             a political year seeing the Indonesia’s presidential          concerns the prudent principle and risk management
             election. IMF estimates that Indonesia’s economic             aspects, as well as the Company’s internal supervision.
             growth in 2024 will grow around 5% or the same level          The Company will also continue to evaluate projections
             as 2023 in line with the stable national household            and targets and adjust them to actual conditions.
             consumption amidst global economic uncertainty in             The Company aims to achieve better performance
             2024.                                                         improvements in 2024 compared to the previous
                                                                           year. With the existing challenges, the Company will
             Based on State Revenue and Expenditure Budget                 strive to optimally implement strategies to maintain
             Plan (RAPBN) 2024 published by Ministry of Finance,           the Company’s business performance next year while
             economic growth performance in 2024 is expected to            remain cautious against various external conditions.
             relatively strong, supported by robust macroeconomic
             fundamentals and improving economic transformation,           Business wise, the Company attempts to expand
             thereby the economic growth target will achieve 5.2%.         financing distribution, especially in Yamaha motorcycle
             The 2024 inflation rate is estimated at 2.8% or lower         business line, which was slowing down in 2023. The
             3.1% outlook in 2023. Rupiah exchange rate in 2024 is         Company also attempts to optimize contribution
             also expected to be maintained around Rp15,000/US$.           of other business lines to contribute in increasing
             The Government remains optimistic that the Indonesian         the Company’s financing distribution. Strategic
             economy can recorded positive growth based on various         partnerships with both Yamaha and dealers as well as
             stable domestic indicators.                                   digital partners will continue to be strengthened and
                                                                           developed by optimizing marketing activities.
             In the automotive sector, AISI projected motorcycle
             sales in 2024 to grow 6.2 million units to 6.5 million        The Company will always review every situation in 2024
             units, or 1.6% - 4.8% (YoY). Association of Indonesian        as well as perform evaluation and monitoring, including
             Automotive Industries (Gaikindo) has formulated new           adjustments to the Company’s strategy and projections
             car sales projection in 2024, which is 1.1 million units or   according to the market conditions, developments in the
             an increase from 1.05 million units projection in 2023.       automotive industry, as well as various other internal
             The projection is in line with the entrance of electric       and external factors, including other policies from
             cars from China, which started to sell their products in      regulators that may affect the Company’s business
             Indonesia.                                                    environment and the achievements in in 2024.

             In the financing industry, the Association of Indonesian      Portfolio strategy enhancement will continue to be
             Financing Companies (APPI) also forecasts the growth          carried out by developing innovative financing services,
             in multifinance receivables with a moderate target            including basket financing as a service for consumers by




198
Page 199
PT BUSSAN AUTO FINANCE




                                                                                                                               HIGHLIGHTS
                                                                                                                               PERFORMANCE
utilizing a credit limit to purchase goods/products in one    To support growth, the Company will maintain
transaction via a digital platform and connecting with        the Company’s liquidity by utilizing diversed and
the Company’s digital partners (e-commerce connect).          competitive sources of funding in adequate amounts.
The basket financing development has started to               Therefore, the Company will open a new ceiling for the
be developed in 2023 and expected to be launched              issuance of Shelf-Registered Public Offering (PUB) III
in 2024. Therefore, the Company’s portfolio serves            and assessed other funding alternatives.
various segments starting from two-wheeled vehicles,




                                                                                                                               REPORT
                                                                                                                               MANAGEMENT
four-wheeled vehicles, digital financing and MSMEs            In governance aspect, the Company is committed
financing. In the future, the Company strives to always       to always drive long-term corporate governance
increase contribution to productive financing and             transformation which is expected to produce
MSMEs in line with the Financing Company Roadmap              sustainable value for shareholders and all stakeholders.
2023 - 2027 draft released by OJK, where OJK plans to         The Company will maintain the implementation of
intensify role of the financing companies in developing       corporate governance according to good governance
business players in priority economic sectors as              practices as an effort to support the Company’s growth,
determined by the Government and the MSMEs sector.            including strengthening functions of the committees,
                                                              both Committees under the Board of Commissioners
The increasing financing distribution shall be                and Committees under the Board of Directors.
accompanied by asset quality. Therefore, the Company
will keep sharpening acquisition & collection process by      Amidst the ongoing business acceleration and the




                                                                                                                               PROFILE
                                                                                                                               CORPORATE
optimizing Tele Collection and Field Collection functions,    recovery conditions, the Company sees the importance
improving quality and capabilities as well as overseeing      of adequate internal control and fraud control. The
the functions of marketing personnel.                         Company will also maintain and monitor health level
                                                              based on risk acceptance for the Company’s long-
In Human Resources (HR), the Company will maintain            term sustainability. The company will strengthen the
the efforts to develop and increase HR capacity to be         implementation and supervision of comprehensive risk
more productive and adaptive (agile) through employee         management and internal control in network offices
training and development. The objectives are carried          through Risk and Compliance Assurance Program
out by developing a Talent Matrix that in line with           (RCAP), system utilization in monitoring the company’s
development and training plans to support HR needs in         health level, and increasing risk awareness programs
the Company.                                                  and compliance culture.




                                                                                                                               DISCUSSION & ANALYSIS
                                                                                                                               MANAGEMENT
If in 2022 and 2023 the Company focused on                    As a finance company operating in the financial sector,
digitalization acceleration, thus, the Company’s focus        the Company is committed to maintain our roles in
in 2024 is to maintain and continue enhancing current         improving financial literacy and inclusion, including
business support systems/applications to support              expanding the Company’s educational goals or
digitalization and digital business. The Company will         targets which can ultimately contribute to increasing
encourage sustainable transformation and innovation           financial literacy index in Indonesia. In 2024, the
through digital transformation (DX) and Kaizen                Company will focus on community, especially teacher
(continuous improvement). The Company will also               community, Micro, Small and Medium Enterprises
optimize the development of customer experience (CX)          (MSMEs), farmers/fishermen, and people with disability,
as key to the Company’s marketing strategy in the digital     including utilization of online media such as websites.
era to increase the contribution of repeat orders (RO)        The Company will also continue sustainable financial
by utilizing the Customer Relationship Management             actions, including by continuing sustainable financial
(CRM) system and personalizing data-based services. To        actions as disclosed in the Company’s sustainability
balance the digital acceleration initiative, the Company      report.
will also strive to improve cyber security, data protection
and data governance to support current systems
                                                                                                                               GOVERNANCE
                                                                                                                               CORPORATE




development.
                                                                                                                               REPORT
                                                                                                                               SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                               199
Page 200
  CORPORATE
  GOVERNANCE




                       CORPORATE
                       GOVERNANCE
        IT IS NECESSARY TO ENSURE THAT THE FRAME AND SOUND TUBE ARE INSTALLED NEATLY
        IN THE ANGKLUNG MAKING PROCESS TO PRODUCE THE EXPECTED TONES. THE COMPANY
        ALSO CONTINUOUSLY DEVELOPS OURSELVES TO DELIVER EVEN BETTER PERFORMANCE.




200
Page 201
                         PERFORMANCE   MANAGEMENT   CORPORATE   MANAGEMENT              CORPORATE    SUSTAINABILITY
                         HIGHLIGHTS    REPORT       PROFILE     DISCUSSION & ANALYSIS   GOVERNANCE   REPORT




                                                                                                                      201
                                                                                                                       2023 ANNUAL REPORT & SUSTAINABILITY REPORT
PT BUSSAN AUTO FINANCE
Page 202
  CORPORATE
  GOVERNANCE




                 IMPLEMENTATION
                 OF CORPORATE
                 GOVERNANCE




                                        The Company views (good corporate governance – GCG)
                                        implementation is not merely fulfilling obligations, but
                                        shall also maintain transparency and accountability
        THE COMPANY BELIEVES THE        in the Company’s management to shareholders and
        IMPLEMENTATION OF GCG           stakeholders. The GCG development is attempted
                                        to be in line with best practices and the consistent
        PRINCIPLES IS NOT MERELY        implementation encourages the Company to create
        COMPLIANCE TO THE REGULATION,   value through business conducts and behavior, delivering
                                        valuable, innovative, friendly, efficient and effective
        BUT ALSO DETERMINES THE         services.
        COMPANY’S LONG-TERM
                                        Therefore, to increase the Company’s competitiveness in
        SUSTAINABILITY.                 responding to more dynamic and competitive business
                                        demands, the Company always strives to apply the
                                        good corporate governance principles. The Company
                                        believes that the implementation of GCG principles
                                        is beyond compliance with the regulations, but also
                                        determines the Company’s long-term sustainability.
                                        Therefore, the Company is committed to maintain the
                                        GCG implementation as a standard that aims to improve




202
Page 203
PT BUSSAN AUTO FINANCE




                                                                                                                               HIGHLIGHTS
                                                                                                                               PERFORMANCE
the reputation, efficiency, and effectiveness of the        The guidelines becomes one of the framework of good
Company’s management on an ongoing basis.                   corporate governance principles implementation in the
                                                            Company, which include, among others:
                                                            a. Introduction
     Governance Implementation                              b. Mission, Vision, Company Values and Code of Ethics
     Framework                                              c. General Meeting of Shareholders
                                                            d. Implementation of Duties and Responsibilities of




                                                                                                                               REPORT
                                                                                                                               MANAGEMENT
In the governance practice, the Company refers to several       the Board of Commissioners, Board of Directors, and
laws and regulations as the good governance framework           Sharia Supervisory Board
in the Company, such as:                                    e. Implementation of Committee’s Duties
1. Republic of Indonesia Law on Limited Liability           f. Implementation of Compliance, Internal Audit,
    Companies, which is Law no. 40 of 2007 concerning           External Audit Functions
    Limited Liability Companies;                            g. Implementation of Risk Management and Internal
2. POJK Regulations and OJK Circular Letters (SEOJK)            Control System
    specifically regarding Governance, Annual Report,       h. Remuneration Policy
    Risk Management and other POJK and SEOJK related        i. Transparency Policy on Financial and Non-Financial
    to the corporate governance implementation, among           Conditions
    others:                                                 j. Capital Policy
    a. Financial Services Authority Regulation (POJK)       k. Conflict of Interest




                                                                                                                               PROFILE
                                                                                                                               CORPORATE
        No. 30/POJK.05/2014 concerning Good Corporate       l. Annual Business Plan & Budget
        Governance for Financing Company with the
        latest amendment under Financial Services           In addition, the Company is also supported by other
        Authority Regulation No. 29/POJK.05/2020 on         governance-related policies, such as Corporate
        Amendments to Financial Services Authority          Regulations/Code of Ethics, Work Guidelines and
        Regulation Number 30/POJK.05/2014 concerning        Procedures, Whistleblowing Policy, and other internal
        Good Corporate Governance for Financing             policies.
        Company;
    b. POJK No 47/POJK.05/2020 concerning Business
        and Institutional Permit for Financing Company           Corporate Governance Principles and
        and Sharia Financing Company                             Implementation




                                                                                                                               DISCUSSION & ANALYSIS
                                                                                                                               MANAGEMENT
    c. POJK No. 33/POJK.04/2014 concerning Board of
        Directors and Board of Commissioners of Issuer      The good corporate governance implementation in the
        or Public Company;                                  Company has been manifested, among others, in the
    d. POJK       No.     34/POJK.04/2014     concerning    implementation of the duties and responsibilities of the
        Nomination and Remuneration Committee of            Board of Directors; Board of Commissioners, and DPS;
        Issuer or Public Company;                           completeness and implementation of committees and
    e. POJK No. 55/POJK.04/2015 concerning Audit            work units’ duties who perform internal control functions;
        Committee Establishment and Preparation of          conflicts of interest handling; implementation of
        Work Guideline (Charter);                           compliance, internal audit, and external audit functions;
    f. POJK No. 56/POJK.04/2015 concerning Internal         implementation of risk management and internal
        Audit Establishment and Preparation of Work         control systems; implementation of remuneration policy;
        Guideline (Charter);                                transparency of financial and non-financial conditions;
    g. POJK No. 35/POJK.04/2014 concerning Corporate        and business plan.
        Secretary;
    h. POJK No. 9 of 2023 concerning the use of Public      In general, the GCG principles applied by the Company
        Accountant and Public Accountant Firm Services      are reflected in 5 (five) main aspects as follows:
        in Financial Service Activity.
                                                                                                                               GOVERNANCE
                                                                                                                               CORPORATE




3. The Company’s Articles of Association, Governance        Transparency
    Code and other related internal policies.               The Company is committed to provide and maintain
                                                            clean, transparent, and accurate information for the
                                                            shareholders and other stakeholders interests. However,
     Code of                                                implementation of the transparency aspect always
     Governance                                             concerns protection of customer’s confidentiality and
                                                            rights according to prevailing regulations.
The Company has a Governance Code. The Corporate
Governance Code has been adjusted following the revision    The Company exercises correct, adequate and on time
of the Company’s Articles of Association concerning         information disclosure. The information disclosure
provisions of the Board of Commissioners meeting, as        carried out by the Company are published both at the
well as adjustment to SEOJK No. 16/SEOJK.04/2021            Company’s official or Indonesia Stock Exchange websites,
concerning Form and Content of Annual Report of the         as stipulated under relevant regulations. The Company
Issuer or Public Company, namely by adding information      publishes information disclosure by always concerning
                                                                                                                               REPORT
                                                                                                                               SUSTAINABILITY




related to training and capacity development for the        provisions of the law and regulations. Throughout 2023,
Board of Commissioners members.                             the Company provided 32 Disclosures via IDXnet.




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                               203
Page 204
  CORPORATE
  GOVERNANCE




        Accountability
        The functions, duties, and authorities of each organ in        Independency
        the Company are carried out based on the accountability        The Company is managed objectively without conflict
        principle, thereby, the Company’s performance can run          and influence/pressure from anyone regarding the
        transparently, effectively, and efficiently.                   decision making as well as promotes professionalism,
                                                                       independency, objectivity, thereby not dominating each
        The Board of Commissioners and Board of Directors have         other or easily intervened by everyone that may violate
        clear duties and authorities as well as responsibilities, as   the laws and regulations in financing and ethical values
        stated in the Board Manual of the Board of Directors and       as well as standards, principles, and practices for the
        Board of Commissioners. The Board of Commissioners             implementation of a sound financing business.
        and Board of Directors members also have adequate
        competency, according to their duties and responsibilities     Fairness and Equity
        as well as understand their role in the good corporate         The Company always concerns interests of the
        governance practice. Each of the Board of Directors            shareholders and other stakeholders based on the justice,
        member and the Executives below has clear duties and           fair and equality principles. Consistent implementation
        responsibilities that are in line with the mission, vision,    of the GCG principles will improve quality of the GCG
        and corporate values.                                          implementation aiming to achieve objectives of GCG
                                                                       implementation in the Company, as follows:
        The Board of Commissioners and the Board of Directors
        are always being accountable upon their performance to         1. To optimize value of the Company for the
        the Shareholders through the Annual General Meeting of            stakeholders, especially debtors, creditors and/or
        Shareholders (AGMS). In 2023, the AGMS held on May                other stakeholders;
        8 2023.                                                        2. To improve management of the Company
                                                                          professionally, effectively, and efficiently;
        Responsibility                                                 3. To improve compliance of the Company’s organs
        The Company performs the management according                     and the Sharia Supervisory Board as well as their
        to prevailing law and regulations as well as combines             Executives below thereby in making decisions and
        the responsibility principle with the prevailing law and          carrying out actions will always refer to high ethics,
        regulation, as well as carrying out responsibilities to           compliance with laws and regulations, and awareness
        the society and the environment to maintain long-term             of the Company’s social responsibility towards
        business continuity.                                              stakeholders and environmental sustainability;
                                                                       4. To create a healthier, more reliable, trustworthy and
        In 2023, the Company showed awareness to the                      competitive corporate culture;
        environment and society as well as performs the social         5. To increase the Company’s contribution to the
        responsibility fairly, as carried out in various social and       national economy.
        environmental activities. The social and environmental
        responsibility activities are reported in the Company’s
        Sustainability Report as an integrated part of Annual
        Report 2023.




204
Page 205
PT BUSSAN AUTO FINANCE




                                                                                                            HIGHLIGHTS
                                                                                                            PERFORMANCE
            GENERAL MEETING OF
            SHAREHOLDERS




                                                                                                            REPORT
                                                                                                            MANAGEMENT
                                                                                                            PROFILE
                                                                                                            CORPORATE
                                                                                                            DISCUSSION & ANALYSIS
                                                                                                            MANAGEMENT
                                             General Meetings of Shareholders (GMS) is a Company
                                             Structure with the highest authority which is neither
                                             delegated to the Board of Commissioners or Board
IN 2023, THE COMPANY HELD                    of Directors according to limit as stipulated in the
ANNUAL GMS FOR FISCAL YEAR 2022              Limited Company Law and/or Articles of Association.
                                                                                                            GOVERNANCE
                                                                                                            CORPORATE



                                             The GMS holds the authority to appoint Board of
ON MAY 8, 2023.                              Commissioners and Sharia Supervisory Board who will
                                             oversee implementation of the Board of Directors’ duty
                                             in managing the Company.


                                                  GMS Procedure and Mechanism
                                             GMS consists of annual GMS (AGMS) and other GMS.
                                             Annual GMS is organized every year the latest 6 (six)
                                             months after end of fiscal year. Other GMS can be
                                             arranged anytime for the Company’s interests, if
                                             considered necessary. Both in AGMS or other GMS,
                                             mechanisme of the shareholders’ voting rights has been
                                                                                                            REPORT
                                                                                                            SUSTAINABILITY




                                             regulated to enable the shareholders executing their
                                             voting rights directly or via their attorneys.




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                            205
Page 206
  CORPORATE
  GOVERNANCE




                                                                        of Commissioners also Sharia Supervisory Board of
               GMS in 2023                                              the Company from their duties and responsibilities
                                                                        in conducting their supervisory duties to the
        In 2023, the Company organized annual GMS for fiscal            conduct of management by the Board of Directors
        year 2022 on May 8, 2023.                                       of the Company during FY2022 and in respect
                                                                        of the end of FY2022 after the Meeting is closed:

               Annual GMS Resolutions 2023                              Board of Directors
                                                                        President Director        : Ms. Lynn Ramli
        Resolutions of Annual GMS 2023 are as follows:                  Vice President Director   : Mr. Akira Sugai
                                                                        Vice President Director   : Mr. Koji Kato
        1. Financial Statements and Independent Auditor                 Director 		               : Mr. Sigit Sembodo
           Report                                                       Director 		               : Mr. A Lung Ng
           Approved and ratified the Financial Statements               Director 		               : Mr. Charles MP Gultom
           of the Company (“Financial Statement”) and                   Director 		               : Mr. Yudono
           the related Independent Auditor Report which
           are, prepared by the Company’s Auditor, Imelda               Board of Commissioners
           & Rekan, a Registered Public Accountant Firm                 President Commissioner : Mr. Tetsuya Daikuko
           in association with Deloitte Touche Tohmatsu,                Commissioner 		        : Mr. Naotaka Takeshita
           (“Independent Auditor Report”) for the financial             Commissioner 		        : Mr. Jun Ikeda
           year commencing from 1st January 2022 and ended              Independent Commissioner : Mr. Dani Firmansjah
           on 31st December 2022 (“FY2022”).                            Independent Commissioner : Mr. Prabowo
                                                                        Independent Commissioner : Mr. Nurdayadi
        2. Utilization of Profit in Fiscal Year 2022
           Approved the profit utilization obtained in FY2022 to        Sharia Supervisory Board
           be distributed as cash dividend to the Shareholders          Chairperson 		        : Mr. Ah. Azharuddin Lathif
           of the Company, that is, in the sum of 35% (thirty           Member 		             : Mr. Ahmad Ifham
           five percent) of the Company’s profit in FY2022
           with a total amount of IDR239,081,528,061.00              4. Company’s Committee Report for Fiscal Year
           (two hundred thirty nine billion eighty one million          2022
           five hundred and twenty eight thousand and sixty             Approved Audit Committee, Nomination and
           one Rupiah) where the distribution of the dividend           Remuneration Committee, and Risk Monitoring
           to the Shareholders is based on the percentage of            Committee Report during FY2022
           share ownership. The dividend payment for each
           Shareholder is scheduled to be conducted within the       5. Business Plan for FY2023
           month of May 2023, after income tax is withheld in            Approved and ratified Business Plan of the Company
           accordance with the prevailing condition.                    for FY2023 (“FY2023 Business Plan”) which is prepared
                                                                        in respect of the result of Company’s business
        3. Action of Board of Directors, Board of                       activities during FY2022 (“FY 2022 Business Result”).
           Commissioners and Sharia Supervisory Board of
           the Company during FY 2022, which are included               In the event there is a change and/or adjustment
           in the Annual Report 2022.                                   to the FY2023 Business Plan for any reason,
           Accepted and approved all actions, performance,              furthermore, the Shareholders granted authority
           contracts, reports in any form (the “Actions”) which         to the Board of Commissioners to approve in
           having been, jointly or severally conducted and/             relation the changes and/or adjustment of the
           or implemented by the Board of Directors, the                FY2023 Business Plan by considering the conditions
           Board of Commissioners or the Sharia Supervisory             of the Company. In particular for the changes/
           Board of the Company during the holding of their             adjustment of branch office (both opening and
           respective position in FY 2022 as reflected in the           closing of the branch office), the Shareholders
           Audited Financial Statements, Board of Directors’            hereby authorize the Board of Directors to
           Report, Board of Commissioners’ Report and Sharia            approve such branch office changes/adjustment.
           Supervisory Board’s Report for FY 2022. The Actions
           thereof are acknowledged and accepted as the                 FY2023    Business Plan   which   includes
           actions of the Company                                       FY2022 Result and FY2023 Plan is attached
                                                                        as Exhibit F of this Minutes of Meeting.
           The Shareholders further approved to confer the full
           release and discharge (acquit et de charge) to: (i) the   6. Changes of the Board of Commissioners of the
           members of the Board of Directors of the Company             Company
           from their duties and responsibilities in conducting         I. Approved the resignation of Mr. Tetsuya Daikoku
           the management of the Company, and (ii) the Board               as President Commissioner and will be effective




206
Page 207
PT BUSSAN AUTO FINANCE




                                                                                                                                 HIGHLIGHTS
                                                                                                                                 PERFORMANCE
       after the Meeting is closed.                              Commissioner 		      : Mr. Naotaka Takeshita
                                                                 Commissioner 		      : Mr. Jun Ikeda
       With respect to the resignation letter of                 Independent Commissioner : Mr. Dani Firmansjah
       Mr.Tetsuya Daikoku dated 7th March 2023,                  Independent Commissioner : Mr. Prabowo
       the Shareholders approved and hereby give a               Independent Commissioner : Mr. Nurdayadi
       release and discharge (acquit et de charge) to
       Mr. Tetsuya Daikoku for any corporate actions he       8. Changes of the Sharia Supervisory Board of the




                                                                                                                                 REPORT
                                                                                                                                 MANAGEMENT
       had executed during his terms of office, provided         Company
       that such actions were acknowledged and                   Approved the re-appointment of Mr. Ahmad Ifham
       approved by the Shareholders of the Company.              as Chairperson and also as Member of the Sharia
       With respect to the resignation letter of                 Supervisory Board with the term of office for 2 (two)
       Mr.Tetsuya Daikoku dated 7th March 2023,                  years and will be effective after the Meeting is closed
       the Shareholders approved and hereby give a               until the closing of next Annual General Meeting of
       release and discharge (acquit et de charge) to            Shareholders of Company for Fiscal Year 2024.
       Mr. Tetsuya Daikoku for any corporate actions he
       had executed during his terms of office, provided         Therefore, effective as of the closing of this
       that such actions were acknowledged and                   Meeting to the closing of the second AGMS from
       approved by the Shareholders of the Company.              the appointment, the composition of the Sharia
                                                                 Supervisory Board are as follows:




                                                                                                                                 PROFILE
                                                                                                                                 CORPORATE
   II. Approved the appointment of Mr. Toshiyuki
       Kojima as President Commissioner, with the                Chairperson     : Mr. Ahmad Ifham
       term of office for 3 (three) years, which shall           Member          : Mr. Ahmad Ifham
       take effect from the passing date of the Fit
       and Proper Test conducted by the Indonesian               In respect of the Independent Commissioner of
       Financial Services Authority (OJK) until the              the Company, the Shareholders hereby declare
       closing of next Annual General Meeting of                 that the Independent Commissioner has signed
       Shareholders of Company for Fiscal Year 2025.             an declaration of independency as required by
                                                                 regulations to ensure that the independency
   III. Approved the re-appointment of Mr. Jun                   requirements of each Independent Commissioner
        Ikeda as Commissioner and Mr. Nurdayadi as               are still fulfilled.




                                                                                                                                 DISCUSSION & ANALYSIS
                                                                                                                                 MANAGEMENT
        Independent Commissioner, with the term of
        office for 3 (three) years and will be effective         Furthermore, the Shareholders also approved
        after the Meeting is closed until the closing of         to authorize the Board of Commissioners of the
        next Annual General Meeting of Shareholders of           Company regarding the determination of the duties
        Company for Fiscal Year 2025.                            and authorities of each Board of Directors member.

7. Changes of the Board of Directors of the Company              Further in respect of the signing of the agreement
   Approved the re-appointment of Mr. Charles Gultom             related to the appointment of the member of the
   as Director, with the term of office for 3 (three) years      Board of Directors and member of the Board of
   and will be effective after the Meeting is closed             Commissioners, the Shareholders hereby delegate
   until the closing of next Annual General Meeting of           and authorize:
   Shareholders of Company for Fiscal Year 2025.                 1. President Director of the Company to represent
                                                                     the Shareholders of the Company to sign
   Therefore, effective as of closing of this Meeting to             necessary agreements with the respective
   the closing of the third AGMS from the appointment                individuals of the member of the Board of
   and re-appointment of each member, the                            Directors, and each individuals of the member
   composition of the Board of Directors and the Board               of the Board of Commissioners.
                                                                                                                                 GOVERNANCE
                                                                                                                                 CORPORATE




   of Commissioners are as follows:                              2. President Director of the Company to
                                                                     represent the Shareholders of the Company
   Board of Directors                                                to sign necessary agreements with the
   President Directors      : Ms. Lynn Ramli                         respective individuals of the member of the
   Vice President Directors : Mr. Akira Sugai                        Board of Directors, and each individuals of
   Vice President Directors : Mr. Koji Kato                          the member of the Board of Commissioners.
   Director 		              : Mr. Sigit Sembodo
   Director 		              : Mr. A Lung Ng                      Each agreement shall stipulate the detail of rights
   Director 		              : Mr. Charles MP Gultom              and obligations of the respective member of the
   Director 		              : Mr. Yudono                         Board of Directors and member of the Board of
                                                                 Commissioners of the Company during his or her
   Board of Commissioners                                        term of office.
   President Commissioner : Mr. Toshiyuki Kojima
                                                                                                                                 REPORT
                                                                                                                                 SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                 207
Page 208
  CORPORATE
  GOVERNANCE




           Furthermore, if required by prevailing Indonesian          Therefore, to waive the requirement for the Board
           laws and regulations, the Shareholders hereby              of Commissioners member who resigned from his
           authorize with the right of substitution to, the           position shall be entitled by giving notice in writing
           President Director or one of the Vice President            of his/her intention to the Company at least 30
           Director of the Company or their proxy to state            (thirty) days prior to the date of his resignation
           and declare the resolution number 6 (six) regarding        as provided under Article 14 paragraph 6 of the
           Changes of the Board of Commissioners of the               Company’s Articles of Association.
           Company, 7 (seven) regarding the Change of the
           Board of Directors of the Company, and 8 (eight)           With respect to the above resignation, the
           regarding the Changes of the Sharia Supervisory            Shareholders hereby granted a release and
           Board of the Company, and this Minutes of Meeting          discharge (acquit et de charge) to Mr. Jun Ikeda
           into a notarial deed in Indonesian language and            for any corporate actions he had executed during
           therefore, to appear and sign the above-mentioned          his terms of office, provided that such actions were
           deed before a Public Notary, any government                acknowledged and approved by the Shareholders.
           official, competent authorities, to make or to             Therefore, the Shareholders hereby confirm that
           cause the execution of any documents, papers and           composition of the members of the Board of
           relevant documents, as well as to report and to            Commissioners of the Company becomes as follows:
           register to the relevant authorities as required by
           the prevailing laws and regulations in Indonesia and       Board of Commissioners
           for that purpose to do and to perform all other acts       President Commissioner : Mr. Toshiyuki Kojima
           and matters as may be necessary or appropriate in          Commissioner 		        : Mr. Naotaka Takeshita
           order to give effect to those resolutions.                 Independent Commissioner : Mr. Dani Firmansjah
                                                                      Independent Commissioner : Mr. Prabowo
                                                                      Independent Commissioner : Mr. Nurdayadi
               Realization of AGMS 2023 Resolutions
                                                                   4. Circular Shareholders Resolution dated September
        All the AGMS Resolutions 2023 have been implemented           22, 2023
        in 2023.                                                      The shareholders approved the appointment of AP
                                                                      Erny Sandjaja and KAP Imelda & Rekan (member of
                                                                      Deloitte Touche Tohmatsu Limited) that registered
               Other GMS                                              in The Financial Services Authority (OJK) as AP and
                                                                      KAP of the Company to audit the annual historical
        In 2023, in addition to the Annual GMS, the Shareholders      financial statements of Fiscal Year 2023 (“FY2023”)
        also made Circular Shareholders Resolution as Substitute      altogether with amount of the honorarium. The
        of Extraordinary General Meetings of Shareholders.            appointment is administered by considering the
                                                                      proposal submitted by the Board of Commissioners
        1. Circular Shareholders Resolution dated February            and recommendation from Audit Committee.
           21, 2023
           The shareholder resolution approved the amendment          Furthermore, the Shareholders agreed and declared
           to Article 13 Paragraph 12, and Article 16 Paragraph       to grant authority to the Board of Directors to sign
           16 of the Company Article of Association.                  cooperation agreement between the Company with
                                                                      AP and/or KAP including but not limited to submit
        2. Circular Shareholders Resolution dated March 24,           report to OJK and Indonesia Stock Exchange (IDX)
           2023                                                       regarding the AP and KAP appointment.
           The shareholder resolution approved and
           acknowledged the authorization to the President            In the event that the appointed AP and KAP are
           Commissioner to represent the Shareholders of              not able to complete the audit of the Company’s
           the Company to consider and determine the                  financial statements Fiscal Year 2023 due to any
           remuneration and other terms and conditions for            reason, the Shareholders hereby authorize the
           the members of the Board of Directors, Board of            Board of Commissioners to appoint the replacement
           Commissioners, and Sharia Supervisory Board of the         of AP and KAP and determine conditions and
           Company for conducting the management of the               requirements for the appointment, among others
           Company during FY2023 based on recommendation              registered in OJK, independent and has no conflict
           from Nomination and Remuneration Committee.                of interest with the Company, has audit experience
                                                                      in accordance with the Company’s business line and
        3. Circular Shareholders Resolution dated August              affiliated with an Internationally recognized public
           18, 2023                                                   accountant.
           The shareholder resolution approved the resignation
           of Mr. Jun Ikeda as Commissioner of the Company         5. Circular Shareholders Resolution dated September
           and will be effective from the date of this Circular       25, 2023
           Resolution is signed.                                      1) The shareholders approve the Share Transfer
                                                                          from Mitsui & Co., Ltd. to JA Mitsui Leasing




208
Page 209
PT BUSSAN AUTO FINANCE




                                                                                                                         HIGHLIGHTS
                                                                                                                         PERFORMANCE
           SHAREHOLDERS                      TOTAL SHARES                   PAR VALUE                  %
 Mitsui & Co., Ltd.                                159,107              159,107,000,000               45.0

 JA Mitsui Leasing, Ltd.                            70,714               70,714,000,000               20.0

 Yamaha Motor Co., Ltd.                             62,464               62,464,000,000               17.7




                                                                                                                         REPORT
                                                                                                                         MANAGEMENT
 PT Sinergi Autoindo Abadi                          53,036               53,036,000,000               15.0

 PT Yamaha Indonesia Motor                            8,250               8,250,000,000                2.3
 Manufacturing

 TOTAL                                             353,571             353,571,000,000               100.0




      Ltd., provided that all the requirements under




                                                                                                                         PROFILE
                                                                                                                         CORPORATE
      the articles of association of the Company and           GMS in 2022
      applicable regulations have been fulfilled.
   2) Approve the change of the composition of the        In 2022, the Company held Annual GMS for fiscal year
      Company’s shareholders, provided that all the       2022.
      requirements under the articles of association
      of the Company and applicable regulations
      are fulfilled, so that the composition of the            Annual GMS Resolutions 2022
      shareholders of the Company as a result of the
      Share Transfer becomes as follows:                  Annual GMS Resolutions 2022 Resolutions of Annual
   3) Approve the appointment of Masami Shiobara          GMS 2022 are as follows:
      as Commissioner of the Company for the term




                                                                                                                         DISCUSSION & ANALYSIS
                                                                                                                         MANAGEMENT
      of office of 3 (three) years, and considering the
      provisions of the applicable OJK regulations that   1. Financial Statement and Independent Auditor
      the Commissioners will only be able to exercise        Report.
      their rights, authorities, powers and obligations      Approved and ratified the Financial Statements of
      after receiving the result of fit-and-proper test      the Company (Financial Statement) and the related
      from OJK. Accordingly, the composition of the          Independent Auditor Report which are, prepared by
      Company’s Board of Commissioners since the             Company’s Auditor, Imelda & Partners, a Registered
      date of approval of the fit and proper test from       Public Accountant Firm in association with Deloitte
      OJK for Masami Shiobara is as follows :                Touche Tohmatsu, (Independent Auditor Report) for
                                                             a financial year commencing from January 1, 2021
       Board of Commissioners                                and ended on December 31, 2021 (FY2021).
       President Commissioner : Mr. Tetsuya Daikoku
       Commissioners          : Mr. Naotaka Takeshita     2. Utilization of Profit in Fiscal Year 2021
       Commissioners          : Mr. Masami Shiobara          Approved the profit utilization obtained in
       Independent Commissioner : Mr. Dani Firmansjah        FY2021 to be distributed as cash dividend to
       Independent Commissioner : Mr. Prabowo                the Shareholders of the Company, that is, in the
                                                                                                                         GOVERNANCE
                                                                                                                         CORPORATE



       Independent Commissioner : Mr. Nurdayadi              amount of 30% (thirty percent) of the Company’s
                                                             profit in Fiscal Year 2021 with a total amount of
                                                             Rp142,118,232,000 (one hundred forty-two billion
                                                             one hundred eighteen million two hundred and
                                                             thirty-two thousand Rupiah) where the distribution
     Realization of Circular Shareholders                    of the dividend to the Shareholders is based on
     Resolution 2023                                         the percentage of share ownership the dividend
                                                             payment for each Shareholder is scheduled to
All the Circular Shareholders Resolution 2023 have been      be conducted within April 2022 net of income
implemented in 2023.                                         tax is withheld in accordance with the prevailing
                                                             provisions.
                                                                                                                         REPORT
                                                                                                                         SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                         209
Page 210
      CORPORATE
      GOVERNANCE




            3. Action of the Board of Directors, the Board of               the changes/ adjustment of the branch office
               Commissioners and DPS of the Company during                  (both opening and closing of the branch office),
               FY2021 which are included in the Annual Report               the Shareholders hereby authorize the Board of
               2021                                                         Directors to approve such branch office changes/
               Accepted and approved all actions, performance,              adjustment.
               contracts, reports in any form (the “Actions”) which
               having been, jointly or severally conducted and/or        6. Changes of the Board of Commissioners of the
               implemented by the Board of Directors, the Board             Company
               of Commissioners, or the DPS of the Company                  I. Approved the resignation of Mr. Jiro Yamada
               during the terms of their respective position in Fiscal           as President Commissioner and will be effective
               Year 2021 as reflected in the Audited Financial                   after the Meeting is closed. With respect to the
               Statements, the Board of Directors’ Report, the                   above resignation, the Shareholders hereby give
               Board of Commissioners’ Report and DPS’s Report                   a release and discharge (acquit et de charge) to
               for FY2021. The Actions thereof are acknowledged                  Mr. Jiro Yamada for any corporate actions he
               and accepted as the actions of the Company. The                   has executed during his terms of office, provided
               Shareholders further approved to grant full release               that such actions were acknowledged and
               and discharge (acquit et de charge) to: (i) the                   approved by the Shareholders of the Company.
               members of the Board of Directors of the Company             II. Approved the reappointment of Mr. Dani
               from their duties and responsibilities in conducting              Firmansjah as Independent Commissioner and
               the management of the Company, and (ii) the Board                 Mr. Prabowo as Independent Commissioner,
               of Commissioners also DPS of the Company from                     with the term of office for 3 (three) years and
               their duties and responsibilities in conducting their             will be effective after the Meeting is closed until
               supervisory duties to the conduct of management                   the closing of next Annual General Meeting of
               by the Board of Directors of the Company during                   Shareholders of Company for Fiscal Year 2024.
               Fiscal Year 2021 and regarding the closing of Fiscal         III. Approved the appointment of Mr. Tetsuya
               Year 2021 after closing of the Meeting:                           Daikoku as President Commissioner, and Mr.
                                                                                 Mikio Muramatsu as Commissioner, with the
               Direksi                                                           term of office for 3 (three) years, which shall be
               President Directors      : Ms. Lynn Ramli                         effectively applied since the date of passing the
               Vice President Directors : Mr. Akira Sugai                        Fit and Proper Test conducted by the Indonesian
               Vice President Directors : Mr. Toshiyuki Kojima                   Financial Services Authority (OJK) until the
               Director 		              : Mr. Sigit Sembodo                      closing of next Annual General Meeting of
               Director 		              : Mr. A Lung Ng                          Shareholders of Company for Fiscal Year 2024.
               Director 		              : Mr. Charles MP Gultom
               Director 		              : Mr. Yudono                     7. Changes of the Board of Directors of the Company
                                                                            I. Approved the reappointment of Ms. Lynn
               Board of Commissioners                                           Ramli as President Director, Mr. Akira Sugai as
               President Commissioner : Mr. Jiro Yamada                         Vice president Director, Mr. Sigit Sembodo as
               Commissioner 		        : Mr. Minoru Morimoto                     Director, and Mr. A Lung Ng as Director, with
               Commissioner 		        : Mr. Jun Ikeda                           the term of office for 3 (three) years and will
               Independent Commissioner : Mr. Dani Firmansjah                   be effective after the Meeting is closed until
               Independent Commissioner : Mr. Prabowo                           the closing of next Annual General Meeting of
               Independent Commissioner : Mr. Nurdayadi                         Shareholders of Company for Fiscal Year 2024.
                                                                            II. Approved the appointment of Mr. Koji Kato as
            4. Company’s Committee Report for FY2021                            Vice President Director of the Company, with
               Approved Audit Committee, Nomination and                         the term of office for 3 (three) years and will
               Remuneration Committee, and Risk Monitoring                      be effective after the Meeting is closed until
               Committee Report during Fiscal Year 2021.                        the closing of next Annual General Meeting of
                                                                                Shareholders of Company for Fiscal Year 2024.
            5. Business Plan for FY2022
               Approved and ratified Business Plan of the Company               Therefore, effective as of the closing of this
               for Fiscal Year 2022 (FY2022 Business Plan) which                Meeting to the closing of the third AGMS from
               is prepared in respect of the result of Company’s                the appointment and reappointment of each
               business activities during Fiscal Year 2021 (FY2021              member, the composition of the Board of
               Business Result). In the event there is a change                 Directors and the Board of Commissioners are
               and/or adjustment to the 2022 Business Plan for                  as follows:
               any reason, furthermore, the Shareholders granted
               authority to the Board of Commissioners to approve               Board of Directors
               in relation the changes and/or adjustment of the                 President Director      : Ms. Lynn Ramli
               Business Plan Fiscal Year 2022 by considering the                Vice President Director : Mr. Akira Sugai
               conditions of the Company. Particularly regarding                Vice President Director : Mr. Koji Kato




210
Page 211
PT BUSSAN AUTO FINANCE




                                                                                                                            HIGHLIGHTS
                                                                                                                            PERFORMANCE
       Director		             : Mr. Sigit Sembodo         8. The Amendment to the Articles of Association of
       Director		             : Mr. A Lung Ng                the Company
       Director		             : Mr. Charles MP Gultom        Approved the Amendment of Article 1 paragraph 2,
       Director		             : Mr. Yudono                   Article 9 paragraph 2 until 6, Article 10 paragraph 1,
                                                             Article 13 paragraph 2 and 8, Article 16 paragraph
       Dewan Boiard of Commissioners                         5, and Article 21 paragraph 2 of the Articles of
       Presiden Commissioners : Mr. Tetsuya Daikuko          Association.




                                                                                                                            REPORT
                                                                                                                            MANAGEMENT
       Commissioners          : Mr. Mikio Muramatsu
       Commissioners          : Mr. Jun Ikeda                Furthermore, if required under the prevailing
       Independent Commissioner : Mr. Dani Firmansjah        Indonesian laws and regulations, the Shareholders
       Independent Commissioner : Mr. Prabowo                hereby authorize with the right of substitution
       Independent Commissioner : Mr. Nurdayadi              to, the President Director or one of the Vice
                                                             President Director of the Company or their proxy
   The Shareholders approved and acknowledged                to state and declare the resolution number 6 (six)
   the authorization to the President Commissioner           regarding Changes of the Board of Commissioners
   to represent the Shareholders of the Company to           of the Company, 7 (seven) regarding the Change
   consider and determine the remuneration and other         of the Board of Directors of the Company, and 8
   terms and conditions for the Board of Directors, the      (eight) regarding the Amendment to the Articles
   Board of Commissioners, and Sharia Supervisory            of Association, and this Minutes of Meeting into a




                                                                                                                            PROFILE
                                                                                                                            CORPORATE
   Board members for conducting the management               notarial deed in Indonesian language and therefore,
   of the Company during the Fiscal Year 2022                to appear and sign the above-mentioned deed
   based on recommendation from Nomination and               before a Public Notary, any government official,
   Remuneration Committee                                    competent authorities, to make or to cause the
                                                             execution of any documents, papers and relevant
   In respect of the Independent Commissioner of the         documents, as well as to report and to register to
   Company, the Shareholders hereby declare that             the relevant authorities as required by the prevailing
   the Independent Commissioner has signed an                laws and regulations in Indonesia and for that
   independence statement as required by regulations         purpose to do and to perform all other acts and
   to ensure that the independence requirements of           matters as may be necessary or appropriate in order
   each Independent Commissioner are still fulfilled.        to give effect to those resolutions.




                                                                                                                            DISCUSSION & ANALYSIS
                                                                                                                            MANAGEMENT
   Moreover, the Shareholders also approved to
   authorize the Board of Commissioners of the                 Realization of AGMS 2022 Resolutions
   Company in connection with the determination of
   the duties and authorities of each member of the       All the AGMS Resolutions 2022 have been implemented
   Board of Directors.                                    in 2022.

   Further in respect of the signing of the agreement
   related to the appointment of the member of the             Other GMS in 2022
   Board of Directors and member of the Board of
   Commissioners, the Shareholders hereby delegate        In 2022, in addition to the Annual GMS, the Shareholders
   and authorize to:                                      also made Circular Shareholders Resolution as Substitute
                                                          of Extraordinary General Meetings of Shareholders
   1. President Commissioners of the Company to
      represent the Shareholders of the Company to        1. Circular Shareholders Resolution dated February
      sign necessary agreements with the President           18, 2022
      Director.                                              The shareholder resolution approved the resignation
                                                                                                                            GOVERNANCE
                                                                                                                            CORPORATE




   2. President Director of the Company to represent         of Mr. Ryohei Nakata as Director of the Company
      the Shareholders of the Company to sign                and effectively serving as of February 18, 2022.
      necessary agreements with the respective
      individuals of the members of the Board of          2. Circular Shareholders Resolution dated August 5,
      Directors, and each individual of the members          2022
      of the Board of Commissioners.                         Approved the resignation of Mr. Mikio Muramatsu
                                                             as Commissioner of the Company and will be
   Each agreement shall stipulate the details of rights      effective from the date of this Circular Resolution is
   and obligations of the respective member of the           signed. Besides that, the shareholder also approved
   Board of Directors and member of the Board of             the appointment of Mr. Naotaka Takeshita as
   Commissioners of the Company during his or her            Commissioner of the Company with the term of
   term of office                                            office for 3 (three) years, which shall take effect
                                                             from the passing date of Fit and Proper Test
                                                                                                                            REPORT
                                                                                                                            SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                            211
Page 212
      CORPORATE
      GOVERNANCE




               conducted by the Financial Services Authority (OJK)       Furthermore, the Shareholders agreed and declared
               until the closing of next Annual General Meeting of       to grant authority to the Board of Directors of the
               Shareholders of the Company for Fiscal Year 2024.         Company to sign cooperation agreements between
                                                                         the Company with AP and/ or KAP including but not
               Therefore, the Shareholders hereby confirm that           limited to reporting to OJK for the appointment of
               composition of the members of the Board of                AP and KAP.
               Commissioners of the Company will become as
               follows:                                                  In the event that the appointed AP and KAP are
                                                                         not able to complete the audit of the Company’s
               Dewan Boiard of Commissioners                             financial statements FY2022 for any reason,
               Presiden Commissioners : Mr. Tetsuya Daikuko              the Shareholders hereby authorize the Board of
               Commissioners          : Mr. Naotaka Takeshita            Commissioners to appoint the replacement of AP and
               Commissioners          : Mr. Jun Ikeda                    KAP and determine conditions and requirements for
               Independent Commissioner : Mr. Dani Firmansjah            the appointment, among others registered in OJK,
               Independent Commissioner : Mr. Prabowo                    independent and has no conflict of interest with the
               Independent Commissioner : Mr. Nurdayadi                  Company, has audit experience in accordance with
                                                                         the business line of the Company and affiliated with
            3. Circular Shareholders Resolution dated November           an Internationally recognized public accountant.
               28, 2022
               The shareholders approved the appointment of AP
               Erny Sandjaja and KAP Imelda & Partners (member             Realization of Circular Shareholders
               of Deloitte Touche Tohmatsu Limited) that registered        Resolution 2022
               in The Financial Services Authority (OJK) as AP and
               KAP of the Company to audit the annual historical      All the Circular Shareholders Resolution 2022 have been
               financial statement of FY2022 (FY2022) along with      implemented in 2022.
               honorarium attached as Exhibit B. The appointment
               is made by considering the proposal submitted by
               the Board of Commissioners and recommendation
               from the Audit Committee.




212
Page 213
PT BUSSAN AUTO FINANCE




                                                                                                               HIGHLIGHTS
                                                                                                               PERFORMANCE
            BOARD OF
            COMMISSIONERS




                                                                                                               REPORT
                                                                                                               MANAGEMENT
                                                                                                               PROFILE
                                                                                                               CORPORATE
                                                                                                               DISCUSSION & ANALYSIS
                                                                                                               MANAGEMENT
                                             Board of Commissioners is a corporate structure who is
                                             responsible to oversee managerial policy and activity in
                                             general, either related to the Company or its business as
BOARD OF COMMISSIONERS                       well as provide advice to the Board of Directors.
COMPOSITION IN THE COMPANY
                                                                                                               GOVERNANCE
                                                                                                               CORPORATE




HAS REFLECTED THE MEMBER                          Legal Framework
DIVERSITY, EITHER IN EDUCATION
                                             Legal framework of Board of Commissioners
(SUBJECT), EXPERIENCE AND                    establishment and appointment in the Company refers
                                             to regulations, as follows:
EXPERTISE.
                                             1. Republic of Indonesia Law on Limited Liability
                                                 Companies and Financing;
                                             2. Financial Services Authority (OJK) regulations, OJK
                                                 Circular Letters,
                                             3. Company’s Articles of Association; and
                                             4. Circular Shareholders Resolutions Statement in lieu
                                                 Extraordinary General Meeting of Shareholders No.
                                                 28 Dated September 26, 2023, which has obtained
                                                                                                               REPORT
                                                                                                               SUSTAINABILITY




                                                 Announcement Acceptance Letter from Minister of
                                                 Law and Human Rights of the Republic of Indonesia




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                               213
Page 214
      CORPORATE
      GOVERNANCE




               (Menkumham RI) No. AHU-AH.01.09-0167473                   policies. Specific duties of the Board of Commissioners
               dated September 26, 2023.                                 are as follows:
                                                                         a) Implementing supervisory and advisory duty to the
                                                                             Board of Directors;
                   Board of Commissioners Work                           b) Supervising the Board of Directors in maintaining
                   Manual                                                    balance of all parties’ interests;
                                                                         c) Preparing Board of Commissioners activity report as
            In carrying out supervisory role and function in the             part of Good Corporate Governance Report;
            Company, the Board of Commissioners refers to the            d) Monitoring effectiveness of Good Corporate
            Articles of Association, Code of Corporate Governance            Governance implementation;
            and Board of Commissioners Work Manual. Therefore,           e) To grant approval if DPS requires assistance of the
            overall, the Board of Commissioners Work Guidelines              Committee’s members which organization structure
            are prepared with reference to:                                  is under the Board of Commissioners; and
            1. Law No. 40 of 2007 concerning Limited Liability           f) Ensuring the Board of Directors has followed-up
                Companies;                                                   audit finding and recommendation from internal
            2. Financial Services Authority Regulation (“POJK”)              audit unit, external auditor, OJK audit report and/or
                No. 30/POJK.05/2014 concerning Good Corporate                audit report from other authorities.
                Governance for Financing Companies;
            3. POJK No. 29/POJK.05/2020 as Amendments to POJK            In implementing the duties, the Board of Commissioners
                No. 30/POJK.05/2014 concerning Good Corporate            is assisted by the Committees under the Board of
                Governance for Financing Companies;                      Commissioners.
            4. POJK No. 33 /POJK.04/2014 concerning Board of
                Directors and Board of Commissioners of Issuers or
                Public Companies;                                             Composition, Membership
            5. POJK No. 34/POJK.04/2014 concerning Nomination                 and Term of Office
                and Remuneration Committee of Issuers or Public
                Companies;                                               1. The Board of Commissioners consists of 4 (four)
            6. Articles of Association;                                     members or more. One of the Commissioner will
            7. Code of Corporate Governance;                                be appointed as President Commissioner, and one
            8. Other related regulations.                                   or more members are eligible to be appointed as
                                                                            Independent Commissioner, by complying with the
            In 2023, the Board of Commissioners Work Manual                 prevailing regulations.
            has been adjusted as approved by the Board of                2. Independent commissioners as referred to in point
            Commissioners on October 26, 2023 following the                 1 shall fulfil the independence requirements as
            amendment on the Company’s Articles of Association              stipulated in the prevailing relevant regulations and
            related to Board of Commissioners membership                    provisions.
            composition.                                                 3. The Board of Commissioners members are
                                                                            appointed by the General Meeting of Shareholders
            These guidelines are used as the references on                  for a period of 3 (three) years, without prejudice to
            implementation of duties and responsibilities as well as        the rights of the General Meeting of Shareholders to
            the authority of the Board of Commissioners members             dismiss them any time.
            in carrying out their duties according to their roles and    4. All of the Board of Commissioners members are
            functions, protecting the interests of stakeholders, and        appointed by the shareholders at the General
            increasing compliance with laws and regulations as              Meeting of Shareholders.
            well as the applicable ethical values. The guidelines        5. If for any reason, position of a Board of Commissioner
            contain the composition, membership and term of                 members is vacant, within a period of 30 (thirty)
            office, duties, responsibilities, and authorities, working      days after the vacant position, the General Meeting
            hours, meetings, reporting and accountability, as well as       of Shareholders shall be implemented, to assign the
            ethical values.                                                 vacant position by concerning provisions of points 3
                                                                            and 4.
                                                                         6. If for any reason, there are fewer than 3 (three)
                   Board of Commissioners’ Duty,                            members of the Board of Commissioners serving
                   Responsibility and Authority                             as Commissioners, within 30 (thirty) days after the
                                                                            vacant position, a General Meeting of Shareholders
            Duty, responsibility and authority of the Board of              shall be implemented to assign the vacant position.
            Commissioners are principally stipulated in POJK No. 33/     7. A Board of Commissioners member is entitled the
            POJK.04/2014 concerning Board of Directors and Board            right to resign from his position by notifying the
            of Commissioners in Issuers. Duty and responsibility of         Company through written letter concerning the d
            the Board of Commissioners are generally to perform             intention maximum within 30 (thirty) days prior to
            supervision over the Board of Directors policy in running       the resignation date.
            the Company’s management as well as providing                8. The Board of Commissioners members terms of
            recommendation to the Board of Directors by complying           office will be ended under following conditions:
            with prevailing Law, internal regulations, and corporate




214
Page 215
PT BUSSAN AUTO FINANCE




                                                                                                                                  HIGHLIGHTS
                                                                                                                                  PERFORMANCE
    a. resign in accordance with the provisions of            request of a member of the Board of Commissioners,
        point 7;                                              the Company is required to disclose information to the
    b. no longer fulfill provisions of the prevailing laws;   public and submit it to the OJK no later than 2 (two)
    c. passed-away; or                                        working days after receipt of the resignation request
    d. Dismissed based on the resolution of the General       by the Company. Subsequently, the Company has an
        Meeting of Shareholders.                              obligation to hold a GMS to decide on the resignation
9. The Board of Commissioners members shall meet              application, no later than 90 days after the receipt of




                                                                                                                                  REPORT
                                                                                                                                  MANAGEMENT
    the requirements of never being a member of the           the request for resignation.
    Board of Directors in the same company within the
    last 6 (six) months.                                      In 2023, there are appointment of new Board of
10. For Board of Commissioners members who are                Commissioners and Board of Commissioners members
    foreign citizen who live in the Republic of Indonesia     resignation, with detail information, as follows:
    territory, they shall have:
    a. residence permit; and                                  Changes to the Board of Commissioners:
    b. work permit from the legal authority.                  1. Resignation of Mr. Tetsuya Daikoku as President
11. Members of the Board of Commissioners may serve              Commissioner and effectively applied as per the
    in concurrent positions as members of the Board              closing of Annual General Meeting of Shareholders
    of Commissioners in a maximum of 3 (three) other             2023. As a replacement, the shareholders appointed
    financing companies (excluding the Company).                 Mr. Toshiyuki Kojima as President Commissioner,




                                                                                                                                  PROFILE
                                                                                                                                  CORPORATE
    Other concurrent positions can only be performed             with a term of office for 3 (three) years period,
    as long as they do not conflict with the prevailing          which is effectively applied as per the date when
    laws and regulations.                                        the person concerned passed Fit and Proper Test
12. Does not include concurrent positions as referred to         from the Financial Services Authority (OJK) until
    in point 11 if:                                              closing of the Company’s Annual General Meeting
    a. non-independent members of the Board of                   of Shareholders for Fiscal Year 2025.
        Commissioners perform functional duties of the        2. Re-appointment of Mr. Jun Ikeda as Commissioner
        company’s shareholders in form of a legal entity         and Mr. Nurdayadi as Independent Commissioner,
        in their business group; and/or                          with a term of office of 3 (three) years and starting
    b. members of the Board of Commissioners                     from the closing of this Meeting until the closing
        hold positions in non-profit organizations or            of the Company’s Annual General Meeting of




                                                                                                                                  DISCUSSION & ANALYSIS
                                                                                                                                  MANAGEMENT
        institutions, as long as the person concerned            Shareholders for Fiscal Year 2025.
        does not neglect implementation of his duties         3. Resignation of Mr. Jun Ikeda as Commissioner of
        and responsibilities as a Board of Commissioners         the Company and effectively applied as per the date
        member.                                                  the circular decision was signed, which is August 18,
13. Other provisions regarding the requirements to               2023. As a replacement, the shareholders appointed
    become a member of the Board of Commissioners                Mr. Masami Shiobara as Member of the Company’s
    always refer to the applicable relevant regulations.         Board of Commissioners based on the Deed of
                                                                 Statement of Circular Decisions of Shareholders in
                                                                 Lieu Extraordinary General Meeting of Shareholders
     Appointment, Dismissal and                                  No. 28 dated September 26, 2023 for a term of
     Resignation of Members of the Board                         office of 3 (three) years, which is effectively applied
     of Commissioners                                            from the date when person concerned passed Fit
                                                                 and Proper Test from the Financial Services Authority
According to provisions of Law Number 40 of 2007                 (OJK).
concerning Limited Liability Companies (Limited Liability
Company Law), particularly Article 111, OJK Regulation        Change of Board of Directors
No. 33/POJK.04/2014 concerning the Board of Directors         1. Re-appointment of Mr. Charles Gultom as Director,
                                                                                                                                  GOVERNANCE
                                                                                                                                  CORPORATE




and Board of Commissioners of Issuers or Public                  with a term of office of 3 (three) years and starting
Companies and the Articles of Association stipulate              from the closing of Annual General Shareholders
that the appointment and dismissal of members of the             Meeting 2023 until the closing of the Company’s
Board of Commissioners is carried out through the GMS.           Annual General Shareholders Meeting for the Fiscal
In addition, the Articles of Association of the Company          Year 2025.
govern the term of office of each member of the Board
of Commissioners for 3 years from their appointment,
without prejudice to the right of the GMS to dismiss               Board of Commissioners Composition
members of the Board of Commissioners at any time
before the end of their term of office.                       At the time this report is written, there are 6 (six) Board
                                                              of Commissioners members, comprising of 1 (one)
In POJK No. 33/POJK.04/2014 concerning the Board              President Commissioner, 2 (two) Commissioners, and 3
of Directors and Board of Commissioners of Issuers            (three) Independent Commissioners.
or Public Companies, members of the Board of
                                                                                                                                  REPORT
                                                                                                                                  SUSTAINABILITY




Commissioners may also resign from their positions            According to OJK Regulation No. 27/POJK.03/2016
before their term of office ends. Upon the resignation        concerning Fit and Proper Test for Key Parties to




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                  215
Page 216
      CORPORATE
      GOVERNANCE




            Financial Services Institutions, states that candidates                         received approval from the OJK, indicate that each
            for members of the Board of Commissioners must obtain                           member of the Board of Commissioners has integrity,
            approval from the OJK before carrying out their actions,                        competence, and adequate financial reputation.
            duties, and functions as the Board of Commissioners.
            Members of the Board of Commissioners who have                                  The composition of the Company’s Board of
            passed the fit and proper test without records and have                         Commissioners as of December 31, 2023 is as follows:



                   NAME                   POSITION                                                  APPOINTMENT DECREE
              Toshiyuki               President                  First appointment as President Commissioner in 2023 according to the
              Kojima                  Commissioner               Company’s Annual GMS dated May 8, 2023 as reaffirmed in Circular
                                                                 Shareholders Resolutions in lieu Extraordinary General Meetings of
                                                                 Shareholders No. 28 dated September 26, 2023.

              Naotaka                 Commissioner               First appointment as Commissioner in 2022 according to Circular Shareholders
              Takeshita                                          Resolutions Statement Deed in lieu Extraordinary General Meetings of
                                                                 Shareholders No. 09 dated August 18, 2022 as reaffirmed in Circular
                                                                 Shareholders Resolutions Statement Deed in lieu Extraordinary General
                                                                 Meeting of Shareholders No. 28 dated September 26, 2023.

              Masami                  Commissioner               First appointment as Commissioner in 2023 according to Circular Shareholders
              Shiobara                                           Resolutions Statement Deed in lieu Extraordinary General Meetings of
                                                                 Shareholders No. 28 dated September 26, 2023.*

              Dani                    Independent                First appointment as Independent Commissioner in 2016 with the latest
              Firmansjah              Commissioner               reappointment in the Company’s Annual GMS on April 13, 2022 as reaffirmed
                                                                 in Circular Shareholders Resolutions Statement Deed in lieu Extraordinary
                                                                 General Meetings of Shareholders No. 28 dated September 26, 2023.

              Prabowo                 Independent                First appointment as Independent Commissioner in 2017 with the latest
                                      Commissioner               reappointment in the Company’s Annual GMS on April 13, 2022 as reaffirmed
                                                                 in Circular Shareholders Resolutions Statement Deed in lieu Extraordinary
                                                                 General Meetings of Shareholders No. 28 dated September 26, 2023.

              Nurdayadi               Independent                Reappointment as the Company’s Independent Commissioner in 2020 with
                                      Commissioner               the latest reappointment in the Company’s Annual GMS on April 13, 2023
                                                                 as reaffirmed in Circular Shareholders Resolutions Statement Deed in lieu
                                                                 Extraordinary General Meetings of Shareholders No. 28 dated September 26,
                                                                 2023.

            *) Effective after receiving the results of the fit and proper test from the OJK on January 19, 2024.




                                                                                            a. Not working or having authority and responsibility
                   Independent Commissioners                                                   to plan, lead, control or supervise the Company’s
                                                                                               activities within the last six (6) months;
            Independent Commissioner refers to Board of                                     b. Not having any shares ownership, directly or
            Commissioners member as external party of the                                      indirectly;
            Issuer or Public Company who fulfills requirement                               c. Not having any affiliation with the Company, or
            as Independent Commissioner as regulated in POJK                                   of the Board of Commissioners and the Board of
            Number 33/POJK.04/2014 concerning Board of                                         Directors members as well as Majority Shareholder
            Directors and the Board of Commissioners in the Issuer                             of the Company;
            or public Company.                                                              d. Not having any direct or indirect business affiliation
                                                                                               which is related with the Company’s business
            Requirements for an Independent Commissioner refer                                 activities.
            to Financial Services Authority Regulation No. 33/                              e. understand the laws and regulations in financing
            POJK.04/2014 concerning the Board of Directors and                                 and other relevant laws and regulations;
            Board of Commissioners of Issuers or Public Companies,                          f. have good knowledge of the financial condition of
            and POJK No. 29/POJK.05/2020 as Amendments to the                                  the Company where the concerned Independent
            Financial Services Authority Regulation Number 30/                                 Commissioner is serving;
            Pojk.05/2014 concerning Good Corporate Governance                               g. Indonesian nationality;
            for Financing Companies are as follows:                                         h. domiciled in Indonesia




216
Page 217
PT BUSSAN AUTO FINANCE




                                                                                                                          HIGHLIGHTS
                                                                                                                          PERFORMANCE
As of December 31, 2023, the Company has 3 (three)       provisions of Article 25 paragraph (1) of the Financial
Independent Commissioners out of the total 6 (six)       Services Authority Regulation Number 33/POJK.04/2014
Commissioners of the Company or 50% of the total         concerning the Board of Directors and Board of
members of the Company’s Board of Commissioners.         Commissioners of Issuers or Public Companies.
Thus, the number of Independent Commissioners
of the Company is in accordance with POJK No. 33/        Some of the Board of Commissioners members are
POJK.04/2014 regarding Directors and Board of            also serving in concurrent positions based on their




                                                                                                                          REPORT
                                                                                                                          MANAGEMENT
Commissioners of Issuers or Public Companies, where      respective competencies and fields, as Chairperson and/
a minimum of 30% of the Board of Commissioners           or members of the Committees that are established to
of every public company shall consist of Independent     assist implementation of the Board of Commissioners
Commissioners.                                           duties and responsibilities.

All of the Independent Commissioner members have
fulfilled the independence aspect as declared in the



          COMMITTEES                   COMMITTEE MEMBERSHIP BY BOARD OF COMMISSIONERS MEMBERS
 Audit Committee                      1. Nurdayadi (Chairperson)




                                                                                                                          PROFILE
                                                                                                                          CORPORATE
                                      2. Prabowo (member)

 Nomination and Remuneration          1. Dani Firmansjah (Chairperson)
 Committee                            2. Toshiyuki Kojima (member)

 Risk Monitoring Committee            1. Prabowo (Chairperson)
                                      2. Dani Firmansjah (member)




                                                                                                                          DISCUSSION & ANALYSIS
                                                                                                                          MANAGEMENT
                                                         organize joint meetings with the Board of Directors
     Board of Commissioners Members                      regularly minimum 1 (once) in 4 (four) months. This
     Diversity                                           meeting can be attended directly or via video conference
                                                         or through other electronic media that enables all
Board of Commissioners composition has reflected         meeting participants to see and hear each other directly
membership diversity, in terms of education (studies),   as well as participate, according to agreement among
experience and expertise, age as seen in profile of      the meeting participants. In 2022, the meetings were
each Board of Commissioners members. Every Board         held hybrid.
of Commissioners member has high competency to
support improvement of supervisory function in the
Company.                                                      Board of Commissioners Meeting
                                                         In 2023, the Company organized 6 (six) Board of
     Meeting Policy and Implementation                   Commissioners meeting with attendance level 100%.
                                                         The meeting recapitulation is as follows:
Board of Commissioners shall organize meeting
                                                                                                                          GOVERNANCE
                                                                                                                          CORPORATE



minimum 1 (one) meeting in 2 (two) months, and also
                                                                                                                          REPORT
                                                                                                                          SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                          217
Page 218
      CORPORATE
      GOVERNANCE




                                                                                          TOTAL                                          ATTENDANCE
                        NAME                               POSITION                                             ATTENDANCE
                                                                                         MEETINGS                                        PERCENTAGE

              Tetsuya Daikoku *)                 President Commissioner                         2                        2                     100%

              Toshiyuki Kojima**)                President Commissioner                         4                        4                     100%

              Naotaka Takeshita                  Commissioner                                   6                        6                     100%

              Jun Ikeda***)                      Commissioner                                   3                        2                       83%

              Masami Shiobara****)               Commissioner                                   2                        2                     100%

              Dani Firmansjah                    Independent Commissioner                       6                        6                     100%

              Prabowo                            Independent Commissioner                       6                        6                     100%

              Nurdayadi                          Independent Commissioner                       6                        6                     100%

            *)    Effectively resigned as per May 8. 2023.
            **)   First appointment as President Commissioner according to Company Meeting Resolutions Deed No. 20 dated May 26, 2023 which was reaffirmed
                  in Circular Shareholders Resolutions Statement Deed in lieu Extraordinary General Meeting of Shareholders No. 28 dated September 26, 2023.
            ***) Effectively no longer serving as per August 18, 2023. He was absence in 1 (one) Board of Commissioners Meeting. This information has been
                  conveyed to Board of Commissioners and Corporate Secretary.
            ****) First appointment as the Company’s Commissioner according to Circular Shareholders Resolutions Statement Deed in lieu Extraordinary General
                  Meeting of Shareholders No. 28 dated September 26, 2023. During the Meeting, he had not yet obtained the results of the fit and proper test
                  from Financial Services Authority, thereby his attendance was as an observer.




                                                                                      Issuers or Public Company, the Board of Commissioners
                   Board of Commissioners and Board of                                is also required to organize joint meetings with Board of
                   Directors Joint Meeting                                            Directors regularly minimum 1 (once) in 4 (four) months.
                                                                                      In 2022, the Board of Commissioners and Board of
            According to POJK No. 33/POJK.042014 regarding                            Directors has convened in 4 (four) joint meetings with
            Board of Directors and Board of Commissioners in                          the Board of Directors. The attendance list is as follows:



                                                                                          TOTAL                                          ATTENDANCE
                        NAME                               POSITION                                             ATTENDANCE
                                                                                         MEETINGS                                           LEVEL

              Tetsuya Daikoku *)                 President Commissioner                         1                        1                     100%

              Toshiyuki Kojima**)                President Commissioner                         3                        3                     100%

              Naotaka Takeshita                  Commissioner                                   4                        4                     100%

              Jun Ikeda***)                      Commissioner                                   2                        1                       50%

              Masami Shiobara****)               Commissioner                                   1                        1                     100%

              Dani Firmansjah                    Independent Commissioner                       4                        4                     100%

              Prabowo                            Independent Commissioner                       4                        4                     100%

              Nurdayadi                          Independent Commissioner                       4                        4                     100%

            *)    Effectively resigned as per May 8. 2023.
            **)   First appointment as President Commissioner according to Company Meeting Resolutions Deed No. 20 dated May 26, 2023 which was reaffirmed
                  in Circular Shareholders Resolutions Statement Deed in lieu Extraordinary General Meeting of Shareholders No. 28 dated September 26, 2023.
            ***) Effectively no longer serving as per August 18, 2023. He was absence in 1 (one) Board of Commissioners Meeting. This information has been
                  conveyed to Board of Commissioners and Corporate Secretary.
            ****) First appointment as the Company’s Commissioner according to Circular Shareholders Resolutions Statement Deed in lieu Extraordinary General
                  Meeting of Shareholders No. 28 dated September 26, 2023. During the Meeting, he had not yet obtained the results of the fit and proper test
                  from Financial Services Authority, thereby his attendance was as an observer.




218
Page 219
PT BUSSAN AUTO FINANCE




                                                                                                                           HIGHLIGHTS
                                                                                                                           PERFORMANCE
                                                              TOTAL                               ATTENDANCE
          NAME                       POSITION                                  ATTENDANCE
                                                             MEETINGS                                LEVEL

 Lynn Ramli                  President Director                   4                  4                 100%

 Akira Sugai                 Vice President Director              4                  4                 100%




                                                                                                                           REPORT
                                                                                                                           MANAGEMENT
 Koji Kato                   Vice President Director              4                  4                 100%

 Sigit Sembodo               Director                             4                  4                 100%

 A Lung Ng                   Director                             4                  4                 100%

 Charles Gultom              Director                             4                  4                 100%

 Yudono                      Director                             4                  4                 100%




                                                                                                                           PROFILE
                                                                                                                           CORPORATE
     Board of Commissioners and Board of Directors Joint Meeting Agenda
Board of Commissioners and Board of Directors joint meeting agenda in 2023 are as follows:



    MEETING DATE                                        PERIODIC MEETING AGENDA
 March 15, 2023              1. Evaluation on the Company’s Performance as per 4th Quarter of 2022
                             2. Annual General Meetings of Shareholders Fiscal Year 2021 Agenda




                                                                                                                           DISCUSSION & ANALYSIS
                                                                                                                           MANAGEMENT
                             3. Other discussion and approval agenda, among others: Shelf-Registration Public
                                Offering II Phase II, Anti-Money Laundering, Counter-Terrorism Financing and
                                Prevention of Funding for the Proliferation of Weapons of Mass Destruction (AML,
                                CTF & PPPSPM), Impact from Earthquake in Cianjur and Portfolio Management.

 May 25, 2023                1. Evaluation on the Company’s Performance as of 1st Quarter of 2023
                             2. Other discussion and approval agenda, among others: Shelf-Registration Public
                                Offering II Phase III, Anti-Money Laundering, Counter-Terrorism Financing and
                                Prevention of Funding for the Proliferation of Weapons of Mass Destruction (AML,
                                CTF & PPPSPM), Implementation of Law Number 27 of 2022 regarding Personal
                                Data Protection and Thematic Monitoring by Financial Service Authority.


 August 24, 2023             1. Evaluation on the Company’s Performance as of 2nd Quarter of 2023
                             2. Other discussion and approval agenda, among others: Shelf-Registration Public
                                Offering II Phase IV, Anti-Money Laundering, Counter-Terrorism Financing and
                                Prevention of Funding for the Proliferation of Weapons of Mass Destruction (AML,
                                CTF & PPPSPM), Risk Management, Thematic Monitoring by Financial Service
                                                                                                                           GOVERNANCE
                                                                                                                           CORPORATE




                                Authority, Fulfillment of POJK No. 3/2023 concerning Improvement of Financial
                                Literacy and Inclusion in financial service sector, POJK 9/2023 concerning the Use
                                of Public Accountant Service in financial service activity.

 November 27, 2023           1. Evaluation on the Company’s Performance as of 3rd Quarter of 2023
                             2. Apprival and Business Plan Report Fiscal Year 2024
                             3. Other discussion and approval agenda, among others: Shelf-Registration Public
                                Offering II Phase IV, Anti-Money Laundering, Counter-Terrorism Financing and
                                Prevention of Funding for the Proliferation of Weapons of Mass Destruction (AML,
                                CTF & PPPSPM), Risk management and Thematic Monitoring by Financial Service
                                Authority.
                                                                                                                           REPORT
                                                                                                                           SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                           219
Page 220
  CORPORATE
  GOVERNANCE




               Board of Commissioners Attendance at                          Meeting Plan in 2024
               Annual GMS
                                                                        In 2024, the Company has meeting plan that is arranged
        Annual GMS 2023 was held on May 8, 2023. The meeting            to be organized minimum 1 (one) meeting in two months,
        was attended by the all Board of Commissioners who              and joint meetings with the Board of Directors regularly
        served at the Company’s Head Office in Jakarta, as              minimum 1 (once) in 4 (four) months as stipulated in POJK
        follows:                                                        No. 33/POJK.04/2014 regarding Board of Directors and
        1. Tetsuya Daikoku (President Commissioner) who                 Board of Commissioners in Issuers or Public Company.
             attended the Meeting via video conference.                 The meeting plan can be revised upon request from one
        2. Naotaka Takeshita (Commissioner)                             or more Board of Commissioners members or request
        3. Jun Ikeda (Commissioner)                                     from one or more Board of Directors as requested by 1
        4. Dani Firmansjah (Independent Commissioner)                   (one) or more shareholders who altogether represents at
        5. Prabowo (Independent Commissioner)                           least 1/10 (one per tenth) parts of total shares with legal
        6. Nurdayadi (Independent Commissioner)                         voting rights.




               Affiliation with the Board of Directors, Other Board of Commissioners, and Members
               and Majority Shareholders


                  NAME                                                       AFFILIATIONS
         Toshiyuki Kojima               No affiliation with other members of the Board of Commissioners, members of the
                                        Board of Directors, and the Company’s Major and/or Controlling Shareholders other
                                        than Mitsui & Co., Ltd.

         Naotaka Takeshita              No affiliation with other member of the Board of Commissioners, members of the
                                        Board of Directors, and Major Shareholders other than PT Yamaha Indonesia Motor
                                        Manufacturing and/or controlling shareholders.

         Masami Shiobara                No affiliation with other members of the Board of Commissioners, members of the
                                        Board of Directors, and the Company’s Major and/or Controlling Shareholders other
                                        than JA Mitsui Leasing, Ltd.

         Dani Firmansjah                No affiliation with either Board of Commissioners or Board of Directors Members and
                                        Majority and/or Controlling Shareholders.

         Prabowo                        No affiliation with either Board of Commissioners or Board of Directors Members and
                                        Majority and/or Controlling Shareholders.

         Nurdayadi                      No affiliation with either Board of Commissioners or Board of Directors Members and
                                        Majority and/or Controlling Shareholders.




        Affiliated relationship (financial and family affiliations) table is presented in the table below:



                                                                                                      AFFILIATION TYPE
                       NAME                               AFFILIATION WITH
                                                                                               FINANCIAL              FAMILY
         Toshiyuki Kojima                         Directors                                          X                   X

                                                  Other Board of Commissioners                       X                   X

                                                  DPS                                                X                   X

                                                  Shareholders                                       √                   X




220
Page 221
PT BUSSAN AUTO FINANCE




                                                                                                                        HIGHLIGHTS
                                                                                                                        PERFORMANCE
                                                                                    AFFILIATION TYPE
              NAME                           AFFILIATION WITH
                                                                               FINANCIAL           FAMILY
 Naotaka Takeshita                    Directors                                     X                 X

                                      Other Board of Commissioners                  X                 X




                                                                                                                        REPORT
                                                                                                                        MANAGEMENT
                                      DPS                                           X                 X

                                      Shareholders                                  √                 X

 Masami Shiobara                      Directors                                     X                 X

                                      Other Board of Commissioners                  X                 X

                                      DPS                                           X                 X

                                      Shareholders                                  √                 X

 Dani Firmansjah                      Directors                                     X                 X




                                                                                                                        PROFILE
                                                                                                                        CORPORATE
                                      Other Board of Commissioners                  X                 X

                                      DPS                                           X                 X

                                      Shareholders                                  X                 X

 Prabowo                              Directors                                     X                 X

                                      Other Board of Commissioners                  X                 X

                                      DPS                                           X                 X




                                                                                                                        DISCUSSION & ANALYSIS
                                                                                                                        MANAGEMENT
                                      Shareholders                                  X                 X

 Nurdayadi                            Directors                                     X                 X

                                      Other Board of Commissioners                  X                 X

                                      DPS                                           X                 X

                                      Shareholders                                  X                 X




    Board of Commissioners Shares                              Concurrent Position
    Ownership
                                                                                                                        GOVERNANCE
                                                                                                                        CORPORATE




                                                          As of December 31, 2023, there were no
As of December 31, 2023, the Board of Commissioners       members of the Board of Commissioners who
members had no shares ownership in the Company.           held positions that were against the applicable
                                                          regulations. The list of concurrent positions for the
                                                          members of the Board of Commissioners is as follows:




                     POSITION IN      POSITION IN OTHER
    NAME                                                          COMPANY NAME             LINE OF BUSINESS
                      COMPANY            COMPANIES

 Toshiyuki           President        General Manager           Mitsui & Co., Ltd        General Trading
 Kojima              Commissioner     Automotive Solution                                Company
                                                                                                                        REPORT
                                                                                                                        SUSTAINABILITY




                                      Business Div.,Mitsui &
                                      Co.,Ltd.




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                        221
Page 222
  CORPORATE
  GOVERNANCE




                             POSITION IN        POSITION IN OTHER
               NAME                                                            COMPANY NAME                LINE OF BUSINESS
                              COMPANY              COMPANIES

         Naotaka            Commissioner        Vice President Director    PT Yamaha                   Manufacturing
         Takeshita                                                         Motor Indonesia
                                                                           Manufacturing
                                                                           (YIMM)

         Masami             Commissioner        Deputy General             JA Mitsui Leasing, Ltd.     Leasing, installment
         Shiobara                               Manager, Overseas                                      sales, financing, other
                                                Management Division,                                   associated business
                                                General Planning &
                                                Strategy Unit

         Dani               Independent         1. Independent             1. PT. Smart                1. Financing
         Firmansjah         Commissioner           Commissioner               Multi Finance               Company

                                                2. President               2. PT. Aditama              2. Financing
                                                   Commissioner               Finance                     Company

                                                3. Independent             3. PT Buana                 3. Financing
                                                   Commissioner               Finance Tbk                 Company

         Prabowo            Independent         Independent                PT AEON Credit              Financing Company
                            Commissioner        Commissioner               Service Indonesia
                                                and Chairman of
                                                Audit Committee,
                                                Risk Monitoring
                                                Committee as well
                                                as Nomination
                                                and Remuneration
                                                Commiittee

         Nurdayadi          Independent         -                          -                           -
                            Commissioner




                                                                    All Board of Commissioners are required to have a
               Training and Competency Development                  basic level certificate in the field of financing from a
               for the Board of Commissioners Members               Professional Certification Agency in the field of financing
                                                                    registered with the Financial Services Authority.
        Board of Commissioners members who are newly
        appointed shall fulfill an orientation program (Induction   All members of the Board of Commissioners are
        Program) which aims to provide input to gain an             also committed to improving their competence in
        understanding of the Company so that they can carry out     supporting their duties and responsibilities. Members
        their duties effectively and efficiently. The orientation   of the Company’s Board of Commissioners are required
        program for the New Board of Commissioners can be           to comply with the requirements for sustainability
        provided in form of documents, as follows:                  (refreshment) in accordance with applicable regulations.
        a) Vision and Mission                                       This is also a fulfillment of sustainability requirements
        b) Organization Structure                                   as stipulated in POJK NO. 35/POJK.05/2018 concerning
        c) Articles of Association                                  the Implementation of Financing Company Business,
        d) Code of Governance                                       where members of the Board of Commissioners who
        e) Charters for the Board of Commissioners, as well as      have passed the fit and proper test must meet the
            the Committees under the Board of Commissioners         sustainability requirements at least 1 (one) time within a
        f) Prevailing regulations related to the financing          period of 1 (one) year.
            industry and capital market
        g) Annual Report                                            The table presenting training for the Board of
        h) Business Plan                                            Commissioners members in 2023 is as follows:
        i) As well as other information deemed relevant in
            supporting their duties and responsibilities.




222
Page 223
PT BUSSAN AUTO FINANCE




                                                                                                                                   HIGHLIGHTS
                                                                                                                                   PERFORMANCE
                                      TRAINING/                                                       PROVIDER/
     NAME                                                                 DATE & PLACE
                                     PUBLICATION                                                        MEDIA

 Naotaka             Seminar Internasional “the Future of                 Jakarta             Indonesia Financing
 Takeshita           Digitalization in Multifinance Industry”             August 1, 2023      Company Association

 Dani                Seminar Nasional “Pembiayaan Mikro dan               Jakarta             Indonesia Financing




                                                                                                                                   REPORT
                                                                                                                                   MANAGEMENT
 Firmansjah          SDM di Era Society 5.0“                              March 3, 2023       Company Association

                     Seminar Nasional “Era Baru Industri                  Jakarta             Indonesia Financing
                     Pembiayaan”                                          June 6, 2023        Company Association

                     Seminar Internasional “the Future of                 Jakarta             Indonesia Financing
                     Digitalization in Multifinance Industry”             August 1, 2023      Company Association

                     Seminar Online                                       Jakarta,            Indonesia Financing
                     “Economic Outlook 2024”                              October 3, 2023     Company Association

 Prabowo             Seminar Internasional “the Future of                 Jakarta             Indonesia Financing
                     Digitalization in Multifinance Industry”             August 1, 2023      Company Association




                                                                                                                                   PROFILE
                                                                                                                                   CORPORATE
 Nurdayadi           Seminar Nasional “Pembiayaan Mikro dan               Jakarta             Indonesia Financing
                     SDM di Era Society 5.0“                              March 3, 2023       Company Association




Fulfillment of sustainability requirements for Toshiyuki        Accountability for the implementation of the duties and
Kojima as President Commissioner and Masami Shiobara            responsibilities of the Board of Commissioners is carried
as      Commissioner     of     the      Company        will    out at the Annual General Meeting of Shareholders
effectively apply as per 2024 and 2025                          (“Annual GMS”). The GMS assessed performance of
in connection with the passing decision letter in               the Board of Commissioners as reflected in the annual




                                                                                                                                   DISCUSSION & ANALYSIS
                                                                                                                                   MANAGEMENT
assessment of their respective abilities and suitability as     report. The Shareholders always considers results
the new President Commissioner and Commissioner of              of the evaluation of the performance of the Board
the Company accepted in 2023 and 2024.                          of Commissioners comprehensively as a basis for
                                                                consideration for the Shareholders to dismiss or reappoint
                                                                the concerned Commissioner.
     Board of Commissioners Performance
     Assessment
                                                                     Nomination Procedure and Policy
Assessment Procedure
Assessment on the Board of Commissioners performance            The Company has a nomination policy. The nomination
is carried out regularly every year based on achievement        policy for the Board of Commissioners members is
of designated criteria or parameters. The performance           prepared as a guideline in identifying candidates with
assessment is carried out by considering the duties and         the best qualifications who meet the requirements for
responsibilities according to the laws and regulations          members of the Board of Commissioners of the Company
and/or the Company’s Articles of Association.                   including the nomination criteria and process.
                                                                                                                                   GOVERNANCE
                                                                                                                                   CORPORATE



Assessment Criteria                                             1. Board of Commissioners members candidate shall
Assessment on the Board of Commissioners performance               fulfil the minimum requirements as required by the
includes the implementation of the duties and functions            regulator.
of the Board of Commissioners including supervising             2. The Nomination and Remuneration Committee plays
the implementation of strategy and management of                   a role in providing recommendations to the Board of
the Company carried out by the Board of Directors,                 Commissioners regarding:
monitoring good corporate governance implementation                a. Position composition, such as structure and
in the Company, supervising the implementation of risk                  composition of members (including expertise,
management and internal control in dealing with risks                   knowledge, experience and diversity) of the
potential, and supervision of the Company’s compliance                  Board of Commissioners members;
with the laws and regulations.                                     b. Candidates who qualify as the Board of
                                                                        Commissioners, members if the Board of
Assessors                                                               Commissioners needed;
Nomination and Remuneration Committee can assist                3. The Nomination and Remuneration Committee is
                                                                                                                                   REPORT
                                                                                                                                   SUSTAINABILITY




the Board of Commissioners in assessing the Board of               eligible to conduct interviews with candidates if
Commissioners performance.                                         the committee considers it necessary. Furthermore,




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                   223
Page 224
  CORPORATE
  GOVERNANCE




           the Nomination and Remuneration Committee                 3. The President Commissioner reviews, among other
           proposes the selected candidate to the Board of              including, the recommendations stipulated by the
           Commissioners for approval and endorsement at                Nomination and Remuneration Committee, which
           the General Meeting of Shareholders which will               will be further decided.
           become effective after passing the fit and proper
           test conducted by OJK.                                    In the remuneration policy, the Company shall concern
        4. Nomination and Remuneration Committee will                several matters such as fairness with the company and/or
           assist in evaluating the performance of the Board of      an equivalent level of position (market), consideration of
           Commissioners members who will be reappointed at          the Company’s long-term goals and strategies.
           the General Meeting of Shareholders.

                                                                          Remuneration Structure and Amount
               Nomination Procedure and Policy
                                                                     Remuneration structure can be paid in form of honorarium,
        Stipulation of amount of remuneration for the Board          incentives, allowances, and other remuneration. Amount
        of Commissioners members is based on individual              of remuneration paid to the Company’s Board of
        performance by considering the duties and responsibilities   Commissioners in 2023 is Rp1.8 billion (exclude tax).
        of the Board of Commissioners members. The procedures        This remuneration includes salaries and other fixed
        for implementing the remuneration for the Board of           allowances, including benefits and bonuses.
        Commissioners are as follows:
        1. GMS approved and declared to grant power of               The Nomination and Remuneration Committee
            attorney to the President Commissioner to consider       contributes in providing recommendations regarding the
            and decide the remuneration including other related      remuneration structure and policies on remuneration for
            provisions for the Board of Commissioners members.       the Board of Commissioners. The committee will also
        2. Nomination and Remuneration Committee provides            evaluate the remuneration policy and structure in actual
            recommendations to the President Commissioner.           condition.



           REMUNERATION AMOUNT PER PERSON IN 1 (ONE) YEAR IN CASH                          NUMBER OF COMMISSIONERS
         >Rp1,5 billion                                                                                    -

         Rp1 billion - Rp1,5 billion                                                                       -

         <Rp1,0 billion                                                                                    3




                                                                     Assessment Criteria
               Assessment on Performance of                          The Board of Commissioners evaluates each committee
               Committees Under the Board of                         that supports implementation of their duties, collegially
               Commissioners                                         and individually. The Committee’s performance
                                                                     evaluation is collegiately carried out based on the
        In carrying out the supervisory function, the Board of       assessment criteria, including the implementation of
        Commissioners is assisted by several committees, such        its duties and responsibilities as stipulated in its work
        as Audit Committee, Nomination and Remuneration              guidelines.
        Committee and Risk Monitoring Committee.
                                                                     The individual evaluation is carried out by considering
        Performance Assessment Procedure                             the criteria including the level of attendance and
        The Board of Commissioners evaluates performance             active participation in periodic and incidental meetings
        of the committees that support the implementation            held by the committee or requested by the Board of
        of their duties based on the duties and responsibilities     Commissioners or Board of Directors.
        implementation report submitted by each committee
        regularly, including in the meetings.                        Assessment on Committees Under the Board of
                                                                     Commissioners
        Board of Commissioners and Board of Directors                Overall, committees under the Board of Commissioners
        evaluate both collegial and individual performance           supervision have carried out their duties and
        of the committee’s members every year based on the           responsibilities in assisting the implementation of
        predetermined parameters. The Board of Commissioners         supervision by the Board of Commissioners. Committees
        and the Board of Directors is also eligible to request       under the Board of Commissioners report implementation
        feedback from each committee’s Chairperson.                  of their duties and responsibilities in meetings with the
                                                                     Board of Commissioners periodically.




224
Page 225
PT BUSSAN AUTO FINANCE




                                                                                                                                   HIGHLIGHTS
                                                                                                                                   PERFORMANCE
In 2023, Audit Committee held 7 (seven) tim meetings,        remuneration for the Board of Commissioners and
such as in January, February, March, May, July, November     Directors for fiscal year 2023, discussions regarding the
and December 2023 with the attendance rate of members        Board of Directors’ development (capacity building)
reaching 100%. The meeting was attended by Director          program, which is in line with the latest developments,
of the Company, Internal Audit Work Unit, Corporate          discussions regarding the succession plans for each
Planning & Secretary Division, Corporate Accounting          Director, distribution of roles and responsibilities between
Division and/or other related divisions, including the       Directors and future plans and conducting a review of the




                                                                                                                                   REPORT
                                                                                                                                   MANAGEMENT
Public Accountant and the Company’s Public Accounting        management work of the Nomination and Remuneration
Firm.                                                        Committee in 2023.

Audit Committee has discussed and reviewed the               Risk Monitoring Committee has also held 4 (four)
financial statements released by the Company, especially     meetings in 2023, including in February, May, August and
the financial statements for December 2022 period,           November 2023, with the attendance rate of members
which were published in March 2023 and June 2023             reaching 100%. This committee discussed, among other,
period, which were published in July 2023, discussing        the Company Soundness rating or the Company’s health
the findings regarding the implementation of audits by       level for 4th quarter of 2022 and Full Year 2022, 1st quarter
internal auditors in the Company’s operational activities.   of 2023, 2nd quarter of 2023, and 3rd quarter of 2023. The
significant and potentially risky for the Company,           Company’s health level for the third quarter of 2023
providing an evaluation of the performance of external       was at composite rank 1, which reflected the company’s




                                                                                                                                   PROFILE
                                                                                                                                   CORPORATE
auditors in connection with the provision of audit           generally very healthy condition, so it is considered very
services for annual historical financial information by      capable of facing significant negative influences from
Public Accountant Erni Sandjaja and Public Accountant        changes in business conditions and external factors.
Firm Imelda & Partners, providing recommendations            The meeting also discussed the Company’s risk profile
for the appointment of a Public Accountant and               per type of risk for the 4th quarter of 2022, 1st quarter
Public Accounting Firm in 2023 based on: others on           of 2023, 2nd quarter of 2023, and 3rd quarter of 2023
independence, scope of assignment, and compensation          for both conventional and sharia financing, including
for services. Based on evaluations carried out during        the results of the Company’s compliance monitoring or
2022, in general the Audit Committee is of the opinion       Compliance Dashboard. to the applicable provisions. The
that the Company has implemented good governance             Committee has also discussed the implementation of
practices. All notes and recommendations from the            risk management including the implementation of Risk




                                                                                                                                   DISCUSSION & ANALYSIS
                                                                                                                                   MANAGEMENT
results of the implementation of activities, reviews and     Control Self-Assessment for the period December 2022,
analyzes of the Audit Committee during 2023 have also        June 2023 and September 2023, External Event Reports,
been communicated and discussed periodically at Board        Risk Awareness Culture Program, Review of Business
of Commissioners Meetings.                                   and Operational processes and Risk and Compliance
                                                             Assurance Program (RCAP), including the implementation
Nomination and Remuneration Committee also held              of Information Technology Risk Management.
3 (three) meetings in 2023, which were in February,
July and November 2023, with the attendance rate of          The role of the committees mentioned above is to always
members reaching 100%. The meeting discussed, among          provide regular updates to the Board of Commissioners
other, evaluation and review of the activities of the        at Board of Commissioners meetings in supporting the
Board of Commissioners and Board of Directors in 2022,       function of the Board of Commissioners, in supervising
discussions and evaluations related to the composition       the Board of Directors and company operations.
of the Board of Commissioners and Board of Directors in
2023, discussions and evaluations related to composition
of committees under the Board of Commissioners in
2023, discussions related to remuneration and policies
                                                                                                                                   GOVERNANCE
                                                                                                                                   CORPORATE
                                                                                                                                   REPORT
                                                                                                                                   SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                   225
Page 226
  CORPORATE
  GOVERNANCE




                BOARD OF DIRECTORS




                                         Legal Framework
                                    Legal framework for the Board of Directors establishment
        THE BOARD OF DIRECTORS IS   and appointment refers to several provisions, among
        AN IMPORTANT ORGAN FOR      others:
                                    1. Law of the Republic of Indonesia concerning Limited
        THE COMPANY, WHO IS FULLY      Liability Companies and Financing;
        RESPONSIBLE UPON THE        2. Financial Services Authority (OJK) regulations, OJK
                                       Circular Letters,
        COMPANY’S MANAGEMENT        3. Company’s Articles of Association; and
                                    4. Company Meeting Resolution Statement Deed No.
        TO ACHIEVE THE COMPANY’S
                                       01 dated August 1, 2023 as announced to Ministry
        INTERESTS AND GOALS.           of Law and Human Rights of Republic of Indonesia
                                       (Menkumham RI) through Notification Acceptance
                                       Letter No. AHU-AH.01.09-0152748 dated August
                                       18, 2023.




226
Page 227
PT BUSSAN AUTO FINANCE




                                                                                                                              HIGHLIGHTS
                                                                                                                              PERFORMANCE
                                                            d) Board of Directors shall comply with the Articles
     Board of Directors Work Manual and                        of Association, internal company regulations, all
     Procedures                                                prevailing laws and regulations, and other laws
                                                               related to the Company’s operations.
In carrying out managerial role and function in the         e) Board of Directors is responsible to implement Good
Company, the Board of Directors refers to the Articles of      Corporate Governance and Know Your Customers
Association, Code of Corporate Governance and Board            Principles, avoiding use of the Company’s services




                                                                                                                              REPORT
                                                                                                                              MANAGEMENT
of Directors Work Manual. Therefore, overall, the Board        and facilities for money laundering activities.
of Directors Work Manual is prepared with reference to:     f) Board of Directors is entitled the right to represent
1. Law No. 40 of 2007 concerning Limited Liability             the Company on and off the court regarding
    Companies;                                                 all matters and in all cases, bind the Company
2. Financial Services Authority Regulation (“POJK”)            with other parties and take any action related to
    No. 30/POJK.05/2014 concerning Good Corporate              management or ownership as stipulated in the
    Governance for Financing Companies;                        Articles of Association.
3. POJK No. 29/POJK.05/2020 concerning Amendments           g) Board of Directors is entitled the right to acquire,
    to POJK No. 30/POJK.05/2014 concerning Good                develop and manage human resources, including
    Corporate Governance for Financing Companies;              but not limited to selecting and appointing
4. POJK No. 33 /POJK.04/2014 concerning the Board              business leaders in the Company by implementing a
    of Directors and Board of Commissioners of Issuers         sustainable performance management system and




                                                                                                                              PROFILE
                                                                                                                              CORPORATE
    or Public Companies;                                       good career development.
5. POJK No. 34/POJK.04/2014 concerning Nomination           h) Board of Directors is prohibited to disclose and/
    and Remuneration Committee of Issuers or Public            or leak the Company’s confidential business
    Companies;                                                 information including but not limited to all data,
6. Articles of Association;                                    materials, products, technology, computer programs,
7. Code of Corporate Governance;                               instructions, business plans, software, marketing
8. Other related regulations.                                  plans, expertise, financial information, and other
                                                               information expressed or conveyed, verbal, written,
The Company regularly adjusted the Board of Directors          or by other media provided by the Company.
Work Manual as approved by Board of Directors.              i) Board of Directors is prohibited from being involved
                                                               in any other work or assignment other than work or




                                                                                                                              DISCUSSION & ANALYSIS
                                                                                                                              MANAGEMENT
                                                               assignments as Director of the Company, because
     Duties, Responsibilities and Authorities                  the job or assignment is a full-time job.
     of the Board of Directors                              j) Board of Directors shall decide on matters stipulated
                                                               in laws and regulations along with the Company’s
In general, duties and responsibilities of the Board           Articles of Association and receive reports on
of Directors are to formulate the Company’s vision,            matters regulated in laws and regulations and the
mission and values, short-term, medium-term and                implementation of important operations will be
long-term business plans, as well as daily management          supervised by management.
of the Company for the interest and to achieve the          k) To perform their duties efficiently, the Board
Company’s goals by considering provisions in the               of Directors is allowed to establish supporting
articles of association, internal regulations, as well         committee under the Board of Directors.
as all prevailing laws and regulations related to the
Company’s operations. The Board of Directors shall          Scope of individual duties and responsibilities of the
implement prudent principle in carrying out the duties      Board of Directors member is as follows:
and responsibilities. The Board of Directors is entitled
the right to represent the Company on and off the           President Director
court according to provisions of the Company articles of    1) chairing     a    general    meeting     to     ensure
                                                                                                                              GOVERNANCE
                                                                                                                              CORPORATE




association. Scope of duties and responsibilities of the       implementation of rules and regulations; fairness
Board of Directors are as follows:                             and opportunity for all of the Board of Directors
a) The Board of Directors will formulate the Company’s         to contribute appropriately; adjust allocation of
    mission, vision, value (MVV) and prepare short-term,       discussion time, determine the order of the agenda,
    medium-term and long-term business plan to be              direct the discussion towards joint decisions, explain
    approved by the Board of Commissioners or the              and conclude actions and policies;
    General Meeting of Shareholders as stipulated in        2) coordinate the implementation of duties among
    the Company Articles of Association.                       members of the Board of Directors, carry out
b) Board of Directors is responsible for the Company’s         guidance and control of all operational activities
    operations according to the Articles of Association        and management of the Company in an effective
    and MVV.                                                   and efficient manner, by considering compliance
c) Board of Directors exercise corporate financial             with prevailing regulations;
    prudent principle, including but not limited to risk    3) coordinating,      controlling    and      evaluating
    management and internal control systems, to                implementation of GCG principles and corporate
                                                                                                                              REPORT
                                                                                                                              SUSTAINABILITY




    maintain the Company’s good performance.                   cultural values; and




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                              227
Page 228
  CORPORATE
  GOVERNANCE




        4) act as a partner for all of the Company’s organs of      2) Ensuring the functions mentioned in point 1 are
           in providing, evaluating, maintaining employees as          well-implemented to achieve the stipulated goals;
           an effort to achieve the Company’s goals;                   and
        5) ensure that all regulations related to human             3) Control and monitor branch operations, according
           resource management are in accordance with the              to established procedures and targets, especially in
           prevailing laws and regulations;                            collection area.
        6) establish the necessary steps to ensure that
           the Company has complied with the applicable             Legal, Litigation, Risk Management and Compliance
           regulations relating to Anti Money Laundering            Director
           (AML) and the Counter Terrorism Financing (CTF)          1) Formulate strategy to encourage the compliance
           and other related regulations;                              culture creation;
        7) Controlling and monitoring of marketing                  2) Ensure all policies, regulations, systems, and
           communication and branding development                      procedure as well as business activity run by the
           activities.                                                 Company have complied to the prevailing Law and
                                                                       Regulation;
        Vice President Director I                                   3) Ensure that the scope of active supervision from the
        1) Direct and supervise all of the Company’s financial         Board of Directors has been fulfilled adequately.
           activities, including presentation of financial
           statements in accordance with financial accounting       Information Technology & Digital Director
           standards and established regulations;                   1) Plan, implement and oversee entire implementation
        2) Acting as a partner for all Company’s Organs in             of operations at Directorate of Information
           reporting and analysis of the Company’s financial           Technology and Digital Business;
           and operational performance; and                         2) Prepare and manage information technology
        3) Act to arrange mechanisms for how to manage and             development budget plan.
           ensure the availability of funds to manage accounts      3) Manage and ensure role of Information technology
           receivable or fund procurement using conventional           and digitalization in supporting the Company’s
           financial instruments or using structured                   operations and business acceleration.
           instruments.                                             4) Manage and ensure development of Micro, Small
        4) Act in ensuring the company’s strategy in                   and Medium (MSMEs) Business lines.
           procurement & account payable.

        Vice President Director II                                       Composition, Membership and
        1) Direct and supervise all Corporate Planning &                 Term of Office
           Secretary, Business Intelligence Analytics and
           CRM, Operation Strategic & Development, Project          A. Board of Directors members are appointed by
           Management Office, Credit Policy dan Credit                 the shareholders through General Meeting of
           Operational.                                                Shareholders.
        2) Establish a more comprehensive strategy based            B. As stipulated in the Company Articles of Association,
           on scope of the division they lead with the aim of          Board of Directors members at least consist of one
           improving performance and efficiency;                       person who will be appointed as President Director
        3) Review the Company’s policies or business plans;            and if deemed necessary one or more will be
        4) Analyzing business needs in all divisions to determine      appointed as Vice President Director or Managing
           the needs and development of information                    Director.
           technology;                                              C. Requirements for the Board of Directors members
        5) Planning and establishing information technology            are:
           governance policies to support implementation of            1. Have good character, morals and integrity
           the Company’s strategy;                                     2. Competent in performing legal actions
                                                                       3. Within 5 years prior to the appointment and
        Sales and Regional Center Director                                 during the term of office:
        1) Formulate sales work strategy and business plan                 1) Never been declared bankrupt;
           to ensure the achievement of designated business                2) Never been appointed as a Board of Directors
           targets;                                                            and/or Board of Commissioners member
        2) Prepare an annual budget plan for financing                         who was proven guilty of causing a company
           Yamaha motorcycles (NMC), Dana Syariah and                          to go bankrupt;
           UMC Business.                                                   3) Never been charged of a criminal act that
        3) Control, manage and supervise all sales programs                    resulted in state financial losses and/or
        4) Supervising the Regional Center.                                    related to the financial sector; and
        5) Perform controlling and monitoring on development               4) Never been a member of the Board of
           of marketing communication and branding.                            Directors and/or a member of the Board of
                                                                               Commissioners who during his tenure:
        Operations & Collection Director:                                      a. Failure to hold the Annual GMS;
        1) Plan, implement and oversee all of the Company’s                    b. Accountability as Board of Directors
           operations, collection and recovery strategies;                         and/or     Board     of    Commissioners




228
Page 229
PT BUSSAN AUTO FINANCE




                                                                                                                               HIGHLIGHTS
                                                                                                                               PERFORMANCE
                members whose accountability report is       Companies Law), particularly in Article 111, OJK
                rejected by the GMS or failed to provide     Regulation No. 33/POJK.04/2014 concerning the Board
                accountability as the Board of Directors     of Directors and Board of Commissioners of Issuers
                and/or Board of Commissioners members        or Public Companies and the Company’s Articles of
                to the GMS; and                              Association stipulates that the appointment and
            c. Cause companies that have licenses            dismissal of the Board of Directors members is carried
                and approvals or are registered with         out through the GMS. In addition, the Company’s




                                                                                                                               REPORT
                                                                                                                               MANAGEMENT
                the Financial Services Authority fail to     Articles of Association regulates the term of office of
                fulfill their obligations to submit annual   each Board of Directors members for 3 (three) years
                reports and/or financial reports to the      from his appointment, without prejudice to the right of
                Financial Services Authority.                the GMS to dismiss members of the Board of Directors
   4. Have a commitment to comply the laws and               at any time before their term of office ended.
       regulations; and
   5. Have knowledge and/or expertise in the required        Board of Directors member has the right to resign from
       field.                                                his position by submitting written statement to the
   6. Have a certificate of expertise and has passed         Company at least 90 (ninety) days before the date of
       the fit and proper test required by the prevailing    his resignation. Upon request for resignation of the
       laws and regulations.                                 Board of Directors member, the Company is required
D. Any proposal to replace and/or appoint a member of        to disclose information to public and submit to the OJK




                                                                                                                               PROFILE
                                                                                                                               CORPORATE
   the Board of Directors by the Board of Commissioners      the latest within 2 (two) working days after receiving
   to the General Meeting of Shareholders must               the resignation letter by the Company. Furthermore,
   consider the recommendation from the Nomination           the Company has an obligation to hold a GMS to
   and Remuneration Committee.                               decide on the resignation the latest 90 days after the
E. All Directors shall submit a Good Corporate               resignation letter is received as regulated in POJK No.
   Governance Agreement during the appointment.              33/POJK.04/2014 concerning Board of Directors and
F. Each of the Board of Directors member shall attend        Board of Commissioners of Issuers or Public Companies.
   an orientation program to get better understanding
   on the Company.                                           In 2023, there was no new appointment, dismissal and
G. Term of office of the Board of Directors members          resignation of Board of Directors member.
   shall follow as stipulated in the Company Articles of




                                                                                                                               DISCUSSION & ANALYSIS
                                                                                                                               MANAGEMENT
   Association.
H. After the term of office ended, the Board of Directors         Composition of the Board of Directors
   members are eligible to be reappointed as Board of
   Directors members by the GMS.                             On May 8, 2023, Annual General Meeting of
I. A Board of Directors member has the right to resign       Shareholders approved re-appointment of Mr. Charles
   from his position by informing the Company in             Gultom as Director. The appointment is declared in
   writing of his intentions at least 90 (ninety) days       Company Meeting Resolutions Statement Deed No.
   prior to the date of his resignation.                     20 dated May 26, 2023. Therefore, as of December 31,
J. Term of office of a member of the Board of Directors      2023, the Company Board of Directors comprised of 7
   ends if:                                                  (seven) people including of 1 (one) President Director,
   1. resign in accordance with the provisions above;        2 (two) Vice President Directors, and 4 (four) Directors.
   2. no longer meets the requirements of the                The Company’s Board of Directors composition as of
       applicable laws;                                      December 31, 2023 is as explained in the table below.
   3. passed-away; or
   4. dismissed based on the General Meeting of              Effective as per January 2, 2024 or when this report was
       Shareholders resolutions.                             prepared, the Board of Commissioners has approved
                                                             changes in scope and responsibility, where the Anti-
                                                                                                                               GOVERNANCE
                                                                                                                               CORPORATE




                                                             Fraud unit previously supervised under Ms. Lynn
     Appointment, Dismissal and                              Ramli (President Director) was transferred to Mr. Sigit
     Resignation of the Board of Directors                   Sembodo (Director) and Corporate Communication
     Members                                                 & Branding, Dana Syariah & UMC Business, Dana
                                                             Syariah Acquisition, Business & Operation Support will
According to provisions of Law Number 40 of 2007             be supervised by A Lung Ng (Director). Therefore, scope
concerning Limited Liability Companies (Limited              and responsibilities are presented as follows:
                                                                                                                               REPORT
                                                                                                                               SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                               229
Page 230
  CORPORATE
  GOVERNANCE




                                                                                            SCOPE OF WORK AND
               NAME        POSITION                 APPOINTMENT DECREE
                                                                                              RESPONSIBILITY

         Lynn Ramli      President        First appointment as Vice President Director     Internal Audit, Car
                         Director         of the Company is according to Circular          Business, Dana Syariah,
                                          Shareholders Resolutions Statement Deed          Fleet & Insurance
                                          in Lieu the Company Extraordinary General        Business, Human
                                          Meeting of Shareholders No. 33 Dated July        Resources Management,
                                          25, 2017. She is later appointed as President    Learning and
                                          Director at the Company Annual General           Development, General
                                          Meeting of Shareholders in 2018 according to     Affairs
                                          the Company Meeting Resolutions Statement
                                          Deed No. 42 dated April 18, 2018.

                                          Her latest appointment as President Director
                                          refers to Company Meeting Resolutions
                                          Statement Deed No. 27 dated April 26, 2022.

                                          Affirmation as President Director is disclosed
                                          in Company Meeting Resolutions Statement
                                          Deed No. 01 dated August 1, 2023.

         Akira Sugai     Vice President   First appointment as Vice President Director     Corporate Finance,
                         Director         of the Company according to Circular             Corporate Accounting,
                                          Shareholders Resolutions Statement Deed          Business Accounting dan
                                          in lieu of Extraordinary General Meeting of      Procurement & Account
                                          Shareholders of PT Bussan Auto Finance No.       Payables Divisions
                                          15 dated November 15, 2019.

                                          His latest appointment as Vice President
                                          Director according to Company Meeting
                                          Resolutions Statement Deed No. 27 dated
                                          April 26, 2022.

                                          Affirmation as Vice President Director is
                                          disclosed in Company Meeting Resolutions
                                          Statement Deed No. 01 dated August 1, 2023.

         Koji Kato       Vice President   First appointment as Vice President Director     Corporate Planning
                         Director         of the Company at the Company Annual             and Secretary, Business
                                          General Meeting of 2022 according to             Intelligence Analytics
                                          Company Meeting Resolutions Statement            and CRM, Operation
                                          Deed No. 27 dated April 26, 2022.                Strategic& Development,
                                                                                           Project Manager Office,
                                          Affirmation as Vice President Director is        Credit Policy and Credit
                                          disclosed in Company Meeting Resolutions         Operational.
                                          Statement Deed No. 01 dated August 1, 2023.

         Sigit Sembodo   Director         First appointment as Director of the Company     Risk Management &
                                          according to Shareholders Resolutions            Compliance, Legal
                                          Statement Deed in lieu of the Company            & Litigation, Sharia
                                          Annual General Meeting of Shareholders No.       Unit, Anti-Fraud Unit
                                          131 dated June 30, 2004.                         (department)

                                          His latest appointment as Director according
                                          to the Company Shareholders Resolutions
                                          Statement Deed No. 27 dated April 26, 2022.

                                          Affirmation as Director is disclosed in
                                          Company Meeting Resolutions Statement
                                          Deed No. 01 dated August 1, 2023.




230
Page 231
PT BUSSAN AUTO FINANCE




                                                                                                                                 HIGHLIGHTS
                                                                                                                                 PERFORMANCE
                                                                                              SCOPE OF WORK AND
    NAME               POSITION                     APPOINTMENT DECREE
                                                                                                RESPONSIBILITY

 A Lung Ng          Director             First appointment as Director of the Company       NMC Business, Corporate
                                         according to Company Meeting Resolutions           Communication &
                                         Statement Deed No. 5 dated April 4, 2007.          Branding, Dana Syariah
                                                                                            & UMC Business, Dana




                                                                                                                                 REPORT
                                                                                                                                 MANAGEMENT
                                         His last appointment as Director based on the      Syariah Acquisition,
                                         Deed of Statement of the Company’s Meeting         Business & Operation
                                         Resolutions No. 27 dated April 26, 2022.           Support, Regional Centers

                                         Affirmation as Director is disclosed in
                                         Company Meeting Resolutions Statement
                                         Deed No. 01 dated August 1, 2023.

 Charles            Director             First appointment as Director of the Company       Tele Collection, Field
 Gultom                                  according to Company Meeting Resolutions           Collection (1-3), Recovery,
                                         Statement Deed No. 04 on 15 May 2020.              Operation Support,
                                                                                            Operation & Asset
                                         Affirmation as Director is disclosed in            Management




                                                                                                                                 PROFILE
                                                                                                                                 CORPORATE
                                         Company Meeting Resolutions Statement
                                         Deed No. 01 dated August 1, 2023.

 Yudono             Director             First appointment as Director according            Digital Business, MSMEs
                                         to Circular Annual General Meeting of              Business, IT Operation,
                                         Shareholders Resolution Statement Deed No.         IT Strategic Planning &
                                         41 Dated April 26, 2021.                           Innovation, IT Business
                                                                                            Technology Solution.
                                         Affirmation as Director is disclosed in
                                         Company Meeting Resolutions Statement
                                         Deed No. 01 dated August 1, 2023.




                                                                                                                                 DISCUSSION & ANALYSIS
                                                                                                                                 MANAGEMENT
                                                             4. Education level
     Board of Directors Membership Diversity                    Educational levels include undergraduate and
                                                                postgraduate levels with various fields of education
The diversity of the Company’s members of the Board             such as economics, management, finance/
of Directors composition that is appropriate and in             accounting, information and communication
accordance with the needs of the Company will support           engineering, computer science and others.
the effectiveness of the implementation of the duties        5. Work experience
and responsibilities of the Board of Directors and support      Members of the Company’s Board of Directors have
the achievement of the Company’s vision and mission to          expertise/work experience in the finance industry,
continue to grow and develop.                                   including banking and trading companies. Members
                                                                of the Board of Directors have also held various
The Board of Directors composition has reflected its            important positions in the Non-Bank Financial
members diversity, both in terms of education (studies),        Industry, banking and associations.
                                                                                                                                 GOVERNANCE
                                                                                                                                 CORPORATE



experience and skill, age as presented in the profile
section for each Board of Directors member. Every Board
of Directors member has high competency to support                Board of Directors Meeting Policy and
managerial function improvement in the Company.                   Implementation
1. Citizenship                                               According to POJK No. 33/POJK.04/2014 concerning
   The majority or more than 70% (seventy percent) of        Board of Directors and Board of Commissioners of Issuers
   the members of the Board of Directors are Indonesian      or Public Companies, the Board of Directors is required to
   citizens.                                                 organize Board of Directors meeting periodically at least
2. Gender                                                    1 (once) every month. In accordance with the Company
   gender diversity of members of the Board of Directors,    articles of association, the Board of Directors is required
   where there is 1 (one) female member, namely the          to organize meeting 1 (once) in a month, however, the
   President Director.                                       Board of Directors of the Company organized 2 (two) or
3. Age                                                       more meetings in a month at second and fourth weeks at
                                                                                                                                 REPORT
                                                                                                                                 SUSTAINABILITY




   The diversity of ages of members of the Board             the Company’s head office.
   of Directors in a fairly productive age range and
   maturity level, namely 40-59 years.



2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                 231
Page 232
  CORPORATE
  GOVERNANCE




        Board of Directors members shall attend the Board of                       Directors members is 99.6%. Therefore, the attendance
        Directors meeting at least 50% (fifty percent) of the total                level is as required in POJK No. 30/POJK.05/2014
        Board of Directors meetings within 1 (one) year period as                  concerning Good Corporate Governance for Financing
        stated in POJK No. 30/POJK.05/2014 concerning Good                         Companies in 2023 has been fulfilled. The number of
        Corporate Governance for Financing Companies, In 2023,                     meetings and attendance levels of members of the Board
        the Company has held 31 (thirty-one) Board of Directors                    of Directors can be seen in the following table:
        Meetings with average attendance rate of the Board of



                                                                                       TOTAL                                            ATTENDANCE
                    NAME                               POSITION                                               ATTENDANCE
                                                                                      MEETINGS                                          PERCENTAGE

         Lynn Ramli                          President Director                             31                       31                    100%

         Akira Sugai                         Vice President Director                        31                       31                    100%

         Koji Kato                           Vice President Director                        31                       31                    100%

         Sigit Sembodo*                      Director                                       31                       30                     97%

         A Lung Ng                           Director                                       31                       31                    100%

         Charles Gultom                      Director                                       31                       31                    100%

         Yudono                              Director                                       31                       31                    100%

        *) There was 1 (one) absence in the meeting that has been reported to the Board of Directors members and Corporate Secretary.




                                                                                   (one) or more shareholders who represent at least 1/10
               Meeting Plan in 2024                                                (one tenth) of the total shares with valid voting rights.
                                                                                   The Board of Directors will also hold joint meetings with
        In 2024, the Company has scheduled meetings, which                         members of the Board of Commissioners as specified
        are planned to be held at least 2 (two) times a month                      in POJK No. 33/POJK.04/2014 concerning the Board of
        or if deemed necessary by one or more members of                           Directors and Board of Commissioners of Issuers or Public
        the Board of Directors or upon a written request from 1                    Companies.




               Affiliation with the Board of Commissioners, Other Members of Board of Directors, and
               Majority Shareholder

                    NAME                                                                  AFFILIATIONS
         Lynn Ramli                          No affiliation with other Board of Directors or Board of Commissioner Members and
                                             Majority and/or Controlling Shareholders.

         Akira Sugai                         No affiliation with other Board of Commissioners or Board of Directors Members and
                                             Majority and/or Controlling Shareholders.

         Koji Kato                           No affiliation with either Board of Commissioners or Board of Directors Members and
                                             Majority and/or Controlling Shareholders.

         Sigit Sembodo                       No affiliation with either Board of Commissioners or Board of Directors Members and
                                             Majority and/or Controlling Shareholders.

         A Lung Ng                           No affiliation with either Board of Commissioners or Board of Directors Members and
                                             Majority and/or Controlling Shareholders.

         Charles Gultom                      No affiliation with either Board of Commissioners or Board of Directors Members and
                                             Majority and/or Controlling Shareholders.

         Yudono                              No affiliation with either Board of Commissioners or Board of Directors Members and
                                             Majority and/or Controlling Shareholders.



232
Page 233
PT BUSSAN AUTO FINANCE




                                                                                                                                 HIGHLIGHTS
                                                                                                                                 PERFORMANCE
Board of Directors Affiliation (financial affiliation and familial affiliation) is presented in the following table:



                                                                                             TYPE OF AFFILIATION
                NAME                               AFFILIATION WITH
                                                                                        FINANCIAL              FAMILIAL




                                                                                                                                 REPORT
                                                                                                                                 MANAGEMENT
 Lynn Ramli                                Other Board of Directors                           X                        X

                                           Board of Commissioner                              X                        X

                                           Sharia Supervisory Board                           X                        X

                                           Shareholders                                       X                        X

 Akira Sugai                               Other Board of Directors                           X                        X

                                           Board of Commissioner                              X                        X

                                           Sharia Supervisory Board                           X                        X




                                                                                                                                 PROFILE
                                                                                                                                 CORPORATE
                                           Shareholders                                       √                        X

 Koji Kato                                 Other Board of Directors                           X                        X

                                           Board of Commissioner                              X                        X

                                           Sharia Supervisory Board                           X                        X

                                           Shareholders                                       √                        X

 Sigit Sembodo                             Other Board of Directors                           X                        X




                                                                                                                                 DISCUSSION & ANALYSIS
                                                                                                                                 MANAGEMENT
                                           Board of Commissioner                              X                        X

                                           Sharia Supervisory Board                           X                        X

                                           Shareholders                                       X                        X

 A Lung Ng                                 Other Board of Directors                           X                        X

                                           Board of Commissioner                              X                        X

                                           Sharia Supervisory Board                           X                        X

                                           Shareholders                                       X                        X

 Charles Gultom                            Other Board of Directors                           X                        X

                                           Board of Commissioner                              X                        X
                                                                                                                                 GOVERNANCE
                                                                                                                                 CORPORATE




                                           Sharia Supervisory Board                           X                        X

                                           Shareholders                                       X                        X

 Yudono                                    Other Board of Directors                           X                        X

                                           Board of Commissioner                              X                        X

                                           Sharia Supervisory Board                           X                        X

                                           Shareholders                                       X                        X
                                                                                                                                 REPORT
                                                                                                                                 SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                 233
Page 234
  CORPORATE
  GOVERNANCE




               Board of Directors Members Shares                         Concurrent Position
               Ownership
                                                                    Concurrent position of the Board of Directors of the
        As of December 31, 2023, the Board of Directors members     Company as of December 31, 2023 is as follows:
        do not have any shares ownership in the Company.



                             POSITION IN        POSITION IN OTHER
               NAME                                                          COMPANY NAME              LINE OF BUSINESS
                            THE COMPANY            COMPANIES

         Lynn Ramli         President                      -                          -                           -
                            Director

         Akira Sugai        Vice President                 -                          -                           -
                            Director

         Koji Kato          Vice President                 -                          -                           -
                            Director

         Sigit              Director            Commissioner               PT LSPPI (Lembaga          Professional
         Sembodo                                                           Sertifikasi Profesi        Certification
                                                                           Pembiayaan
                                                                           Indonesia)

                                                General Secretary          APPI (Asosiasi             Financing Company
                                                                           Perusahaan                 Association
                                                                           Pembiayaan
                                                                           Indonesia)

         A Lung Ng          Director                       -                          -                           -

         Charles Gultom     Director                       -                          -                           -

         Yudono             Director                       -                          -                           -




                                                                    Certification Agency in financing registered with
               Training and Competency Development                  the Financial Services Authority. As end of 2023, all
               for Board of Directors Members                       Directors have certificate of expertise in Financing.

        Newly appointed Board of Directors members shall fulfill    Specifically, the Board of Directors in charge of the risk
        an orientation program (Induction Program) which            management function is required to have a certificate
        aims to provide feedback to gain an understanding           of expertise in risk management from a Professional
        of the Company to carry out their duties effectively        Certification Institute in risk management registered
        and efficiently. Orientation program for new Board of       with the Financial Services Authority. As end of 2023,
        Directors members include the documents, as follows:        the Director in charge in risk management function has
        a) Company Vision and Mission                               certificate of expertise in risk management.
        b) Company Organization Structure
        c) Company’s Articles of Association                        All of the Board of Directors members are committed
        d) Governance Guidelines                                    to improve their competence in supporting their
        e) Work Guidelines for the Board of Directors, as well as   duties and responsibilities. The Company Board of
            the Committees under the Board of Directors             Directors members are required to comply with the
        f) Regulations related to the financing industry and        sustainability (refreshment) requirements according
            the applicable capital market                           to applicable regulations. Therefore, all of the Board
        g) Company Annual Report                                    of Directors members are also committed to develop
        h) Company’s Business Plan                                  their competencies to support their duties and
        i) and other information deemed relevant in                 responsibilities. The Company’s Board of Directors
            supporting their duties and responsibilities.           members are required to comply with the requirements
                                                                    for sustainability (refreshment) according to
        In addition, the Board of Directors is required to have a   applicable regulations. This also becomes fulfillment
        certificate of expertise in financing from a Professional   of sustainability requirements as stipulated in POJK



234
Page 235
PT BUSSAN AUTO FINANCE




                                                                                                                                   HIGHLIGHTS
                                                                                                                                   PERFORMANCE
NO. 35/POJK.05/2018 concerning Implementation of              Financing Company Businesses, where the Board of
Financing Company Business.                                   Directors members who have passed the fit and proper
                                                              test shall fulfil the sustainability requirements at least 1
To develop competency in supporting the implementation        (once) within a period of 1 (one) year.
of duties and responsibilities, as well as to meet the
sustainability requirements as stipulated in POJK NO.         The training table for members of the Board of Directors
35/POJK.05/2018 concerning the Implementation of              in 2023 is as follows:




                                                                                                                                   REPORT
                                                                                                                                   MANAGEMENT
    NAME                             TRAINING                            DATE & PLACE                 PROVIDER

 Lynn Ramli        National Seminar “New Era of Financing               Jakarta,             APPI
                   Industry”                                            June 6, 2023

                   International Seminar “The Future of                 Jakarta,             APPI
                   Digitalization in Multifinance Industry”             August 1, 2023

 Akira Sugai       Utilization of Big Data Analysis in Improving        Zoom Meeting,        OJK Institute
                   Performance in Financial Service Industry            March 30, 2023




                                                                                                                                   PROFILE
                                                                                                                                   CORPORATE
                   National Semianr “New era of Financing               Jakarta,             APPI
                   Industry”                                            June 6, 2023

 Koji Kato         National Seminar “Micro Financing and HR in          Jakarta,             APPI
                   Society 5.0 Era”                                     March 3, 2023

                   International Seminar “The Future of                 Jakarta,             APPI
                   Digitalization in Multifinance Industry”             August 1, 2023

 Sigit             National Seminar “Micro Financing and HR in          Jakarta,             APPI
 Sembodo           Society 5.0 Era”                                     March 3, 2023




                                                                                                                                   DISCUSSION & ANALYSIS
                                                                                                                                   MANAGEMENT
                   Utilization of Big Data Analysis in Improving        Zoom Meeting,        OJK Institute
                   Performance in Financial Service Industry            April 6, 2023

                   Building Customer’s Trust in Digital Assets          Zoom Meeting,        OJK Institute
                   from Cyber Risk                                      May 30, 2023

                   National Seminar “New Era of Financing               Jakarta,             APPI
                   Industry”                                            June 6, 2023

                   National Economic Outlook 2024                       Jakarta,             APPI
                                                                        October 3, 2023

 A Lung Ng         National Seminar “New Era of Financing               Jakarta,             APPI
                   Industry”                                            June 6, 2023

                   National Economic Outlook 2024                       Jakarta,             APPI
                                                                        October 3, 2023
                                                                                                                                   GOVERNANCE
                                                                                                                                   CORPORATE




 Charles Gultom    Indonesia Economic Outlook 2023:                     Zoom Meeting,        Bank Central Asia
                   Navigating Through Uncertainties                     January 25,
                                                                        2023

                   National Seminar “Micro Financing and HR in          Jakarta,             APPI
                   Society 5.0 Era”                                     March 3, 2023

                   Anti-Money Laundering in Digital Era                 Zoom Meeting,        OJK Institute
                                                                        April 6, 2023

 Yudono            National Seminar “Financing Challenge Amid           Jakarta,             APPI
                   Political Year”                                      January 31,
                                                                        2023
                                                                                                                                   REPORT
                                                                                                                                   SUSTAINABILITY




                   National Seminar “Micro Financing and HR in          Jakarta,             APPI
                   Society 5.0 Era”                                     March 3, 2023




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                   235
Page 236
  CORPORATE
  GOVERNANCE




                                                                         b) Candidates who meet the requirements as
               Board of Directors Performance                                members of the Board of Directors, if the Board
               Assessment                                                    of Commissioners requires.
                                                                      3. The Nomination and Remuneration Committee may
        Procedure of performance appraisal implementation                conduct interviews with candidates if the committee
        Assessment of the performance of the Board of                    considers it necessary. Furthermore, the Nomination
        Directors is carried out regularly every year based on the       and Remuneration Committee proposes the selected
        achievement of predetermined criteria or parameters.             candidate to the Board of Commissioners for
        The performance evaluation is carried out by considering         approval and endorsement at the General Meeting
        the duties and responsibilities in accordance with the           of Shareholders which will become effective after
        laws and regulations and/or the Company Articles of              passing the fit and proper test conducted by OJK.
        Association.                                                  4. The Nomination and Remuneration Committee will
                                                                         assist in evaluating the performance of members of
        Criteria                                                         the Board of Directors who will be reappointed at the
        The performance assessment of the Board of Directors             General Meeting of Shareholders.
        refers to the indicators of the Board of Directors’
        achievement, including its contribution to the
        implementation of the strategy and management of                   Remuneration Policy and Procedure
        the Company, including the achievement of targets and
        commitments in advancing the interests of the Company,        The determination of the amount of remuneration
        the implementation of good corporate governance, the          for members of the Board of Directors is based on the
        implementation of risk management and internal control        performance of each member by considering duties and
        in dealing with potential risks, as well as compliance with   responsibilities of members of the Board of Directors. The
        regulations. current regulation.                              procedures for implementing the remuneration of the
                                                                      Board of Directors are as follows:
        Assessor                                                      1. The GMS approved and stated that it gave power of
        The Nomination and Remuneration Committee can                     attorney to the President Commissioner to consider
        assist the Board of Commissioners in assessing the                and decide on remuneration including other related
        performance of the Board of Directors.                            provisions for members of the Board of Directors.
                                                                      2. The Nomination and Remuneration Committee
        Accountability for the implementation of the duties               provides recommendations to the President
        and responsibilities of the Board of Directors is carried         Commissioner.
        out at the Annual General Meeting of Shareholders             3. The President Commissioner studies, among
        (“Annual GMS”). The GMS assesses the performance                  other things, the recommendations given by the
        of the Board of Directors as reflected in the annual              Nomination and Remuneration Committee, which
        report. Shareholders always use the results of the overall        will then be decided.
        performance evaluation of the Board of Directors as one
        of the basic considerations for Shareholders to dismiss or    In determining remuneration, the Company must pay
        reappoint the concerned person.                               attention to matters such as individual work performance,
                                                                      fairness with the company and/or an equivalent position
                                                                      level (market), consideration of the Company’s long-term
               Nomination Procedures and Policies                     goals and strategies.

        The Company has a nomination policy. The nomination           At the 2022 Annual General Meeting of Shareholders held
        policy for members of the Board of Directors is prepared      on May 8, 2023, the shareholders agreed and stated that
        as a guideline in identifying candidates with the best        they authorized the President Commissioner to represent
        qualifications who meet the requirements for members          the Shareholders to consider and decide on remuneration
        of the Board of Directors of the Company including the        including other provisions related to members of the
        criteria and nomination process.                              Board of Directors, Board of Commissioners and Sharia
                                                                      Supervisory Board to carry out the management of the
        1. Candidates for members of the Board of Directors           Company. during the Fiscal Year 2023 considering the
           must meet the minimum requirements as required             recommendations of the Nomination and Remuneration
           by the regulator, one of which is passing the Fit and      Committee.
           Proper test from the Financial Services Authority
           (“OJK”).
        2. The Nomination and Remuneration Committee plays                 Remuneration Structure and Amount
           a role in providing recommendations to the Board of
           Commissioners regarding:                                   The remuneration structure can be in the form of
           a) Position composition, such as structure and             honorarium, tantiem, allowances and other remuneration.
               composition of members (including expertise,           The amount of remuneration paid to the Company’s
               knowledge, experience and diversity) of members        Board of Directors in 2023 is Rp23.4 billion (exclude
               of the Board of Directors;                             tax). This remuneration includes salary and other fixed
                                                                      allowances, including benefits and bonuses.




236
Page 237
PT BUSSAN AUTO FINANCE




                                                                                                                                      HIGHLIGHTS
                                                                                                                                      PERFORMANCE
Nomination and Remuneration Committee plays a role in              of Directors. The committee will also evaluate the
providing recommendations regarding the remuneration               remuneration policy and structure from time to time.
structure and policies on remuneration for the Board



         REMUNERATION AMOUNT PER PERSON IN 1 (ONE) YEAR IN CASH                                   NUMBER OF DIRECTORS




                                                                                                                                      REPORT
                                                                                                                                      MANAGEMENT
 >Rp1,5 billion                                                                                               7

 Rp1 billion - Rp1,5 billion                                                                                   -

 <Rp1,0 billion                                                                                                -




                                                                   In 2023, Safety Committee will discuss the evaluation
     Assessment on Performance of                                  of activities for the 4th quarter of 2022 and planning
     Committees under the Board of Directors                       for 2023 as well as various work safety activities, health




                                                                                                                                      PROFILE
                                                                                                                                      CORPORATE
                                                                   and driving safety programs. Some activities that have
As end of 2023, the Company has 6 (six) committees                 been carried out in 2023 were including training on the
under the Board of Directors, such as Social Responsibility        use of BAF Plaza Light Fire Extinguishers (APAR) and
Committee, Business Continuity Management (BCM)                    network offices, health webinars and the selection of
Committee, Occupational Health and Safety Supervisory              Floor Warden & First Aider ambassadors on each floor
(HSE) Committee, and Information Technology Steering               at the the head office. The committee also checked
Committee (IT Steering Committee), Digitization                    evacuation equipment at BAF Plaza & network offices
Committee, and Risk Management Committee. These
committees have important role in assisting the Board              Information Technology Steering Committee has also
of Directors in carrying out managerial functions in               carried out its responsibility for monitoring technology
the Company in accordance with their respective                    and information risks, and any regulatory and




                                                                                                                                      DISCUSSION & ANALYSIS
                                                                                                                                      MANAGEMENT
responsibilities.                                                  compliance risks related to technology and information
                                                                   risks within the Company. In 2023, Information
In 2023, the Board of Directors considers that these               Technology Steering Committee held 5 (five) meetings
committees have carried out their roles properly in                which discussed, among other things, the availability
carrying out their duties and responsibilities according           of IT services, the results of IT security operational
to charter of each committee.                                      monitoring, plans and realization of IT operational
                                                                   projects, implementation of IT audits in 2023 and, as
Corporate Social Responsibility Committee has carried              well as matters-the latest matters related to governance,
out its duties in assisting the Board of Directors in fulfilling   risk management and IT compliance and data privacy.
economic, social and environmental aspects which are
manifested in corporate social responsibility activities.          Digitalization Committee has also played a role
In 2023, the Corporate Social Responsibility Committee             in accelerating the process of implementing and
held 5 (five) meetings to discuss CSR work programs or             implementing digitalization in order to support business
activities carried out throughout the year. Some of the            activities or processes. Various digitalization projects
topics discussed include CSR budget allocation for 2023,           have been completed and continue to be developed
CSR activities plan for 2023 altogether with a timeline of         according to business needs. In 2023, the Digitalization
                                                                                                                                      GOVERNANCE
                                                                                                                                      CORPORATE



activities the CSR programs.                                       Committee held 9 (nine) meetings to discuss accelerating
                                                                   roadmap/strategic plan for Sandia, BAF Mobile for all
Business Continuity Management Committee has also                  of the Company’s business lines, and BAF Verse. Apart
ensured that the company’s level of readiness has been             from that, the committee also continued discussions
appropriate and adequate thereby capable to prevent                regarding project design solutions for e-stamp users in
disruption to business activities, and also to protect critical    non-digitalization businesses.
business processes from the impact of major information
system failures or disasters. In 2023, the Business                Risk Management Committee has actively reviewed
Continuity Management Committee held 7 (seven)                     policies, strategies and guidelines for implementing
meetings to discuss, among other, generator rejuvenation           Risk Management. During 2023, the Risk Management
in network offices, coordination for security at each              Committee held 4 (four) meetings to discuss the
network office if there is an emergency at any time, as well       implementation of risk management in the Company,
as Call Tree Drill and Disaster Recovery (DR Drill).               such as the Company’s health level, risk profile,
                                                                   compliance monitoring and other aspects.
                                                                                                                                      REPORT
                                                                                                                                      SUSTAINABILITY




Occupational Health and Safety Committee has
actively participated in implementing occupational                 Going forward, the Company will further optimize role of
health and safety in the Company’s work environment.               the committees under the Board of Directors members.



2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                      237
Page 238
  CORPORATE
  GOVERNANCE




                     COMMITTEE UNDER
                     THE BOARD OF
                     COMMISSIONERS
                 AUDIT COMMITTEE

                                                                         information requested by the Audit Committee.
               Legal Basis Establishment                              3. Prepare annual report on the Audit Committee’s
                                                                         activity, which shall be attached in the management
        To comply with Financial Service Authority Regulation            report.
        (POJK) No. 55/POJK.04/2015 concerning Audit Committee         4. Members of the Audit Committee do not serve
        Establishment and Audit Committee Charter, the Company           as professional accountants or auditors, and their
        has established an Audit Committee. Establishment of the         functions are not intended to duplicate the roles and
        Audit Committee also refers to POJK No. 30/POJK.05/2014          responsibilities of the Board of Directors, Internal
        concerning Good Corporate Governance for Financing               Audit, and External Audit. The Audit Committee
        Company with the latest amendment in POJK No. 29/                provides independent advice to the Board of
        POJK.05/2020 concerning Amendments to the Financial              Commissioners and guidance to the Internal Audit
        Services Authority Regulation Number 30/POJK.05/2014             and External Audit based on the information received.
        concerning Good Corporate Governance for Financing            5. Related to reporting system and internal control:
        Company. Purpose of the Audit Committee establishment            a. Oversee preparation process and integrity of
        is to assist the Board of Commissioners in carrying out the          financial information related to the Company and
        supervisory function as one of the main pillars in the good          ensure compliance with regulatory requirements,
        corporate governance principles implementation within                correct definition of consolidated scope and
        the Company.                                                         correct implementation of the accounting criteria.
                                                                         b. Review financial information that will be issued
                                                                             by the Company to public and/or authorities,
               Audit Committee Charter                                       including financial statements, projections, and
                                                                             other reports related to the Company’s financial
        In implementing the duties, Audit Committee has been                 information.
        equipped with working manual as disclosed in Audit               c. Review complaints related to the Company’s
        Committee Charter, which is drafted by referring to                  accounting process and financial reporting.
        prevailing Law and regulation. The Audit Committee               d. Reviewing the risk management implementation
        Charter disclosed provisions on Audit Committee                      activities and risk management system carried
        structure, authority and responsibility, membership                  out by the Board of Directors (when the Company
        requirement, terms of office, meeting implementation                 has not yet established a Risk Monitoring function
        as well as reporting and accountability. In 2023, the                under the Board of Commissioners), therefore the
        Company has conducted annual review on the Charter.                  key risks, including fiscal risks, shall be identified,
        The Charter has been approved by the Board of                        managed as well as reported and discussed
        Commissioners in the Board of Commissioners Meeting                  concerning any significant weaknesses detected
        on October 26, 2023.                                                 during the audit.
                                                                         e. Supervise and ensure independency and
                                                                             effectiveness of the internal audit, with access to
               Duties, Responsibilities and Authorities                      the audit.
               of the Audit Committee                                    f. Establish and supervise a mechanism that allows
                                                                             employees to report confidentially and, where
        The duties, responsibilities and obligations of the Audit            appropriate, anonymously, any significant
        Committee are outlined in the Audit Committee Charter                potential irregularities, particularly those related
        as the working guideline for the Audit Committee. Based              to finance and accounting, that they detect
        on the Audit Committee Charter, the Audit Committee                  within the Company.
        has duties and responsibilities, including:                      g. Reviewing the internal control system and the
        1. Understand the Company’s financial reporting                      effectiveness of the Company’s internal control
            process and the internal control system.                         system, including the security and control over
        2. Inviting the Board of Directors who are deemed                    the information technology.
            relevant with the Committee’s meeting to provide             h. Understand scope of internal and external




238
Page 239
PT BUSSAN AUTO FINANCE




                                                                                                                                    HIGHLIGHTS
                                                                                                                                    PERFORMANCE
         auditors’ review of internal control over financial      f. Perform other activities related to this charter as
         reporting, and obtain significant reports of                requested by the Board of Commissioners.
         findings and recommendations, along with                 g. Review and assess adequacy of the Audit
         management responses.                                       Committee Charter regularly, propose Approval
6.   Related to internal audit:                                      from the Board of Commissioners for any
     a. Monitor and evaluate audit plan including                    suggested amendment, and ensure relevant
         changes to the audit plan, as well as the audit             disclosure as required under the Law or regulation.




                                                                                                                                    REPORT
                                                                                                                                    MANAGEMENT
         implementation.                                          h. Annually confirm that all responsibilities stated in
     b. Review the internal audit budget, resource plans,            this charter has been carried out.
         activities and organization structure.
     c. Review the audit implementation conducted              In implementing the duties, Audit Committee holds
         by internal auditors and supervising the              the authority as as declared in OJK Regulation No. 55/
         implementation of follow-ups by the Board of          POJK.04/2015 regarding Audit Committee Establishment
         Directors on the findings of the internal auditors    and Audit Committee Charter, as follows:
7.   Related to external audits:                               a. To access the Company’s document, data and
     a. Review the scope and approach of the external              information related to employees, proceeds, assets
         audit, including coordination with internal audit.        and required corporate resources;
     b. Examine conformity of financial statements with        b. To have direct communication with the employees,
         financial accounting standards                            including Board of Directors and other parties who




                                                                                                                                    PROFILE
                                                                                                                                    CORPORATE
     c. Examine and evaluate conformity of audit                   perform internal audit function, risk management
         implementation by the public accounting firm              and Accountant related to Audit Committee’s duty
         with the audit standards.                                 and responsibility;
     d. Review, provide and report results of the              c. Involve independent party outside the Audit
         evaluation over implementation of the external            Committee member who are required to assist the
         audit services to the Company to be reported              duty implementation (if necessary); and
         regularly to the OJK.                                  d. Exercise other authorities as assigned by the Board of
     e. Provide recommendations to the Board of                    Commissioners.
         Commissioners regarding appointment of the
         public accountant and/or public accountant firm
         based on independency, scope of assignment                    Audit Committee Membership




                                                                                                                                    DISCUSSION & ANALYSIS
                                                                                                                                    MANAGEMENT
         and service fees.
     f. Review and confirm independency of the external        According to the Audit Committee Charter, composition
         auditor by obtaining a statement from the             and membership structure of the committee are as
         auditor regarding affiliation between the auditor     follows
         and the Company, including nona-udit services,        1. Audit Committee consists of at least (3) three
         and discussing the affiliation with the auditor.           members       including     1   (one)    Independent
     g. Provide independent opinion in the event of                 Commissioner who serves as Chairperson, and 2 (two)
         dissent opinion between the management of the              Independent Parties from outside the Company, one
         accountant for the services provided                       of whom has expertise in:
8.   Related to reporting responsibilities:                         a. Audit
     a. Report regularly to the Board of Commissioners              b. Finance or Accounting
         regarding      activities,  issues    and    other    2. Members of the Audit Committee are proposed by
         recommendations.                                           the Board of Directors to the Board of Commissioners
     b. Provides open communication between internal                for approval, either for appointment and/or dismissal.
         audit, external auditors, and the Board of            3. Resignation of the Audit Committee shall be submitted
         Directors.                                                 in written letter to the Board of Commissioners the
     c. Review other reports related to the Company                 latest two (2) months prior the effective date, or with
                                                                                                                                    GOVERNANCE
                                                                                                                                    CORPORATE




         concerning the responsibilities of the committee.          approval from the Board of Commissioners.
9.   Related to other responsibilities, among others:          4. Members of the Audit Committee:
     a. Review compliance with laws and regulations                 a. Shall have high integrity, ability, knowledge,
         related to the Company’s activities.                           experience according to field of work and good
     b. Evaluate performance of the Committee and the                   communication skill;
         members individual regularly.                              b. Understand the company’s financial statements,
     c. Oversee implementation of follow-ups by the                     business, especially related to the services or
         Board of Directors on the findings of the internal             business activities of the Company, the audit
         audit work unit, public accountants, and OJK                   process, risk management, as well as Law and
         audit results, to provide recommendations to the               regulations in capital market sector as well as
         Board of Commissioners.                                        other related laws and regulations.
     d. Review and provide advice to the Board of                   c. Shall comply with the audit committee code of
         Commissioners regarding potential conflicts of                 ethics stipulated by the Company:
         interest in the Company.                                   d. Willing to consistently develop competency
                                                                                                                                    REPORT
                                                                                                                                    SUSTAINABILITY




     e. Secure confidentiality of the Company’s                         through education and training:
         documents, data and information.                           e. Shall have at least 1 (one) member with




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                    239
Page 240
  CORPORATE
  GOVERNANCE




              educational background and expertise in                Prabowo as a member of the Audit Committee as follows
              accounting and finance                                 stipulated in the Decree of the Board of Commissioners
           f. Not working in a Public Accounting Firm, Legal         Company No. SK-001/BOC/BAF.III/2023 dated March
              Consulting Firm, Public Appraisal Service Office       31, 2023 concerning Changes in Committee members
              or other agencies providing insurance, non-            Company       Audit.   Changes      in   members    of
              insurance services, appraisal services and/or other    the     Audit    Committee      has    been   reported
              advisory services to the concerned Company             to     the    OJK     and     has     been  submitted
              within the last 6 (six) months                         via IDXnet and SPE OJK via Company letter No.
           g. Not working or has the authority and responsibility    BAF/087/CP/III/2023 dated April 3, 2023 concerning
              to plan, lead, control or oversee the Company’s        Changes in PT Bussan Auto Audit Committee
              activities within the last 6 (six) months except the   Members in the Financin Company (“Company”)
              Independent Commissioner;                              and the second amendment is Re-appointment of
           h. Not having direct or indirect shares ownership         Mr Nurdayadi as Chairperson Audit Committee as
              in the Company. In the course where a member           stipulated in the Company’s Board of Commissioners
              of the Audit Committee acquires the Company’s          Decree No. SK-002/BOC/BAF.V/2023 dated May 8,
              shares, either directly or indirectly as a result of   2023 concerning Appointments of the Company’s
              a legal event, the shares must be transferred to       Audit Committee Member. The changes in Audit
              another party the latest 6 (six) months after the      Committee member has been reported to OJK and
              shares were acquired.                                  has been submitted via IDXnet and SPE OJK via
           i. Not having any affiliation with members of the         Company letter no. BAF/135/CP/V/2023 dated May 9,
              Board of Commissioners, members of the Board           2023 concerning Changes in PT Bussan Auto Finance
              of Directors, or Controlling Shareholders; and not     (“Company”) Audit Committee Members. These changes
              having any direct or indirect business relationship    has also been published on the Company’s website.
              related to the Company’s business activities.          Therefore, the composition of the Company’s Audit
                                                                     Committee as of December 31, 2023 composition is as
        was the resignation of Mr. Stepanus Ardhanova as             follows:
        Chairperson of the Audit Committee and appointment of Mr



                           POSITION IN                                                                      POSITION IN
               NAME                                                  APPOINTMENT
                          THE COMMITTEE                                                                    THE COMPANY

         Nurdayadi          Chairperson         No. SK-002/BOC/BAF.V/2023 dated May 8, 2023                Independent
                                                concerning Appointment of Audit Committee                  Commissioner

         Prabowo            Member              No. SK-002/BOC/BAF.V/2023 dated May 8, 2023                Independent
                                                concerning Appointment of Audit Committee                  Commissioner

         Heru Absoro        Member              No. SK-002/BOC/BAF.V/2023 dated May 8, 2023                Independent
                                                concerning Appointment of Audit Committee                  Party




               Terms of office of Audit Committee                         Audit Committee Profile
        The term of office of Audit Committee members
                                                                          Nurdayadi
        is no longer from the term of office of the Board of
                                                                          Chairperson
        Commissioners as regulated in the Company’s articles
        of association, which is 3 (three) years starting from       His complete profile is presented in Board of
        the appointment of each member, without eliminating          Commissioners Profile in this Annual Report.
        the rights of the Board of Commissioners to dismiss at
        any time, except for members committees as the Board
                                                                          Prabowo
        of Commissioners members will ends automatically
                                                                          Member
        during his term of office as a member of the Board of
        Commissioners ends. Mr. Nurdayadi’s terms will be ended      His complete profile is presented in Board of
        at the AGMS Fiscal year 2025, while the terms of Mr.         Commissioners Profile in this Annual Report.
        Prabowo and Mr Heru Absoro will end in AGMS for Fiscal
        Year 2024.




240
Page 241
PT BUSSAN AUTO FINANCE




                                                                                                                               HIGHLIGHTS
                                                                                                                               PERFORMANCE
                                                            c. Invitations to attend meetings can be submitted
      Heru Absoro                                              to the Board of Directors, Head of Internal Audit
      Member                                                   and other parties deemed necessary by the Audit
Indonesian Citizen, 69 years. Earned Bachelor Degree           Committee.
of Architecture from Institut Teknologi Bandung (1983),     d. Audit Committee meetings can only be held if
and Master Degree of Finance from Carnegie Mellon              attended by more than 50% (fifty percent) of the
University, Pittsburgh, USA (1988). Previously, He served      total number of members including one independent




                                                                                                                               REPORT
                                                                                                                               MANAGEMENT
in various positions as Head of Risk Management Adira          person and an independent party. If the quorum for
Group (BDI Subsidiaries) Adira Finance, Adira Insurance,       the Audit Committee is not fulfilled, consequently,
and Adira Quantum (2007- 2010), National Quality               the meeting must be rescheduled.
Assurance – Integrated Risk Bank Danamon (Jan               e. The Internal Audit Unit will prepare a note taker
2011- Sep 2012), Risk Advisor Adira Finance IT QA and          to record every result of formal Audit Committee
Compliance Head, and Commissioner BPR Danamasa                 meetings.
Cimahi (1995- now).                                         f. Decisions of the Audit Committee meetings are
                                                               taken based on collective consensus. If a consensus
                                                               is failed to be achieved, the decision making will be
     Independency of Audit Committee                           taken by majority of votes (voting).
                                                            g. Committee meetings are chaired by the Chairperson
According to provisions in Audit Committee Charter, the        of the Committee. If the Chairperson the Committee




                                                                                                                               PROFILE
                                                                                                                               CORPORATE
Audit Committee members comprise of Independent                is not present, then one of the Committee members
Commissioner (chaired by Independent Commissioner)             who is present at the Committee Meeting is
and External Party as independent party who is                 appointed to chair the Committee meeting.
appointed based on his knowledge and expertise in           h. Each Audit Committee meeting is outlined
Accounting, audit and/or both. Therefore, in carrying          in the minutes of the meeting, including any
out its duties and responsibilities, the Audit Committee       disagreements, which are signed by all members of
works independently including in providing independent         the Audit Committee who are present and submitted
advice to the Board of Commissioners about the report          to the Board of Commissioners.
(as defined in Audit Committee Charter).                    i. A meeting can be held using teleconference media,
                                                               video conferences, or other electronic media facilities
                                                               that allow all participants to see and hear each




                                                                                                                               DISCUSSION & ANALYSIS
                                                                                                                               MANAGEMENT
     Audit Committee Meeting Policy and                        other directly and participate as present in place
     Implementation                                            of the meeting. Place of meeting at the domicile of
                                                               the Company or place of business activities of the
In accordance with the Audit Committee Charter, the            Company shall be considered as meeting place by
policies and implementation of the Audit Committee             using electronic media, under condition that the
meetings are as follows:                                       minutes of the meeting using teleconference media,
a. The Audit Committee must hold regular meetings at           video conferences, or other electronic media facilities
    least 1 (one) time in 3 (three) months. The Board          will be made in writing and circulated among all
    of Commissioners, the Board of Directors and the           members of the Committee who participate in the
    Internal Audit may request to hold extraordinary           meeting to be signed.
    meetings if deemed to discuss urgent matters of
    interest.
b. Notification of Audit Committee meetings is made              Audit Committee Meeting Frequency
    by the Chairperson of the Audit Committee (or his            and Attendance
    nominated representative) no later than seven (7)
    working days prior to the meeting, except for the       In 2023, the Audit Committee organized 7 (seven)
    extraordinary meeting as referred to in point (a)       meetings with attendance as follows:
                                                                                                                               GOVERNANCE
                                                                                                                               CORPORATE




    provided that all members of the Audit Committee
    have been notified.
                                                                                                                               REPORT
                                                                                                                               SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                               241
Page 242
  CORPORATE
  GOVERNANCE




                     NAME                                 POSITION          MEETINGS              ATTENDING          ATTENDANCE

          Nurdayadi                             Chairperson                      7                    7                  100%

          Heru Absoro                           Member                           7                    7                  100%

          Prabowo*                              Member                           4                    4                  100%

          Stepanus Ardhanova**                  Member                           3                    3                  100%

        *) effective as of March 31, 2023
        **) effectively out of office starting March 31, 2023




               Training of the Audit Committee Members
        To develop competency and understanding in supporting their duty and responsibility, in 2023, Audit Committee
        members had participated in trainings, seminar or workshop, as follows:



               NAME                                       TRAINING                   DATE & PLACE               ORGANIZER

          Nurdayadi               Information is presented in Board of Commissioners training table in this Annual Report

          Prabowo                 Information is presented in Board of Commissioners training table in this Annual Report.

          Heru Absoro             Seminar Indonesia Risk Management                  Jakarta,             Indonesia
                                  Outlook 2024 “Beyond Uncertainty and               27 October           Financing Company
                                  Opportunity: Technology and Leadership as          2023                 Association
                                  Key Elements

                                  Risk and Governance Summit (RGS) 2023              Jakarta,             Financial Service
                                                                                     30 November          Authority
                                                                                     2023




                                                                          In 2023, the Audit Committee held 7 (seven)
               Audit Committee Activity                                   meetings consisting of regular meetings attended
               Implementation Report 2023                                 by representatives of the Board of Directors, Internal
                                                                          Audit, Corporate Accounting Division, Legal & Litigation
        Audit Committee is an organ under the Board of                    Division, Corporate Planning & Secretary Division and
        Commissioners and being responsible to the Board of               the Risk Management and Compliance Division of the
        Commissioners to support in carrying out supervisory              Company, including meeting with the External Auditor
        function for interest of the shareholders and broader             (Public Accounting Firm) regarding the draft results of the
        stakeholders. At the Annual GMS held in 2023, the                 audited Financial Statements for fiscal year 2022. Other
        Shareholders have approved Audit Committee Report                 activities of the Audit Committee in 2023 are including:
        for the fiscal year 2022. The structure and composition
        of the Company’s Audit Committee membership has                   1. Reviewed performance of internal audit and submit
        met the prevailing regulations and requirements. Audit               a report on findings from the Internal Audit Unit,
        Committee members have sufficient competency                         including audit scope and plan for the next period.
        and experience to support effectiveness of the Audit              2. Discussed significant findings or cases with risk
        Committee in carrying out its duties and responsibilities.           potential against the Company, as well as mitigation
        All members of the Audit Committee are independent                   plans that have been implemented.
        parties without any affiliated relationship with the              3. Reviewed and supervised financial reporting,
        Company.                                                             particularly annual and semi-annual financial
                                                                             statements published by the Company. The Financial




242
Page 243
PT BUSSAN AUTO FINANCE




                                                                                                                                  HIGHLIGHTS
                                                                                                                                  PERFORMANCE
   Report for the 2022 Fiscal Year and the Mid-Year                  •  October 3 – 21 is for planning activities;
   Financial Report for the June 2023 period were                    •  December 5 – 23 2022 in the form of an
   published respectively on 20 March 2023 and 28                       interim audit;
   July 2023 in accordance with the provisions and not              • January 9 - February 28 2023 in the form of
   exceeding the time limit determined by the OJK.                      the final audit then KAP has sufficient time
4. Financial Services Activities.         The submitted                 for field work to be carried out.
   recommendations         are      included,       among        c. The services provided include declaration of an




                                                                                                                                  REPORT
                                                                                                                                  MANAGEMENT
   others, independency of AP and KAP, scope                        opinion on the financial statements for the year
   of audit, fees for audit services, expertise and                 ended December 31, 2022. The services provided
   audit team experience from KAP, audit methodology                include declaration of financial statements
   and the facilities used by KAP. As for AP and                    opinion for fiscal year ended on December
   KAP that have been reported by the Company is                    31, 2022. The sampling test involved the
   AP Erny Sandjaja from KAP Imelda & Partners.                     implementation of procedures to obtain audit
   These recommendations have been submitted to the                 evidence about figures and disclosures in the
   Board of Commissioners via letter dated August 29,               financial statements. The auditors have assessed
   2023 and has been reported by the Company to OJK                 significant audit risks, either caused by errors
   through Company letter No. BAF/262/CP/X/2023                     or fraud, considering the Company’s internal
   October 6, 2023 regarding Appointment Report                     controls. For some material risks, the auditor
   Public Accountant (AP) and Public Accounting Firm                has conducted Test of Control (TOC) and Test of




                                                                                                                                  PROFILE
                                                                                                                                  CORPORATE
   (KAP) for PT Bussan Auto Finance (“Company”).                    Design (TOD).
5. Provide     an    evaluation     of     the    external       d. There is no material finding in the audit
   auditor’s     performance       related      to      the         conducted in fiscal year 2022.
   implementation          of        audit         services
   audit on annual historical financial information by AP     6. Discussing scope and audit plan for the Company’s
   Erny Sandjaja and KAP Imelda & Partners. The report           fiscal year 2023 by the AP and KAP.
   This has been reported by the Company to OJK               7. Discussing new OJK regulations and other related
   via Company letter No. BAF/154/CP/VI/2023                     regulations with impact on the Company’s
   dated June 12, 2023 regarding Audit Committee                 operations.
   Evaluation Results Report on the Implementation
   of Audit Service on PT Bussan Auto Finance                 Based on the evaluation conducted in 2023, the Audit




                                                                                                                                  DISCUSSION & ANALYSIS
                                                                                                                                  MANAGEMENT
   (“Company”)Annual Historical Financial Information         Committee generally suggested that the Company
   Fiscal Year 2022 by Public Accountants (AP) and            has implemented good governance practices in various
   Public Accounting Firm (KAP).                              important aspects. All notes and recommendations from
   Based on the evaluation results, some discussions are      the results of the implementation of activities, review and
   as follows:                                                analysis of the Audit Committee during 2023 have also
   a. KAP Imelda & Partners has carried out audits            been communicated and discussed with the Company’s
       according to applicable audit standards set by         Management. The Audit Committee also has regularly
       the Indonesian Institute of Public Accountants         submitted committee’s duty implementation report in
       (IAPI).                                                the Board of Commissioners Meeting.
   b. KAP Imelda & Partners has started the audit for
       the 2022 financial year, with the following details:


                                                                                                                                  GOVERNANCE
                                                                                                                                  CORPORATE
                                                                                                                                  REPORT
                                                                                                                                  SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                  243
Page 244
  CORPORATE
  GOVERNANCE




                 NOMINATION AND REMUNERATION
                 COMMITTEE

                                                                              Commissioners, DPS, and Committees under
               Legal Basis Establishment                                      the Board of Commissioners members if
                                                                              required by the Board of Commissioners.
        To comply with Financial Service Authority Regulation          b. Provide recommendations to the Board of
        Number 34/POJK.04/2014 concerning Nomination                      Commissioners regarding the capacity-building
        and Remuneration Committee in Issuer or Listed                    program for the Board of Directors, Board of
        Company, the Company has established Nomination                   Commissioners, and DPS members.
        & Remuneration Committee on August 16, 2017. This              c. Provide considerations and recommendations
        Committee is established and being responsible to the             related to succession planning for the Board
        Board of Commissioners in supporting implementation               Directors members, by considering the challenges
        of the Board of Commissioners’ function and duty                  and opportunities faced by the Company, as
        related to nomination and remuneration for the Board              well as skills and expertise needed by the Board
        of Directors and Board of Commissioners members.                  of Directors in the future. The Committee will
                                                                          consider other matters deemed necessary by the
                                                                          Board of Commissioners.
               Nomination & Remuneration
               Committee Charter                                    2. Duties and responsibilities related with the
                                                                       remuneration are as follows:
        In carrying out the duties, the Nomination and                 a. Provide    recommendation       regarding     the
        Remuneration Committee has been equipped with                     remuneration structure and remuneration
        work guidelines as stated in the Nomination and                   policy for the Board of Directors, Board of
        Remuneration Committee Work Guidelines or Charter,                Commissioners,     and/or DPS members. The
        which is prepared by referring to the prevailing laws and         Committee will also conduct evaluation related
        regulations. The Charter contains provisions regarding            to the remuneration policy from time to time.
        the structure of the Nomination and Remuneration               b. Assist the Board of Commissioners in evaluating
        Committee, authority and responsibilities, membership             performance of the Board of Directors, Board of
        requirements, terms, meeting implementation, as well              Commissioners, and/or DPS members.
        as reporting and accountability. In 2023, the Company          c. Determine the scope of pension arrangements
        has conducted annual review on the Charter regarding              for each Director.
        the meeting implementation. The Charter has been               d. The Committee will consider other matters
        approved by the Board of Commissioners in the Board               deemed necessary by the Board of Commissioners.
        of Commissioners in the Board of Commissioners
        Meeting on November 27, 2023.                                      Furthermore, the Committee also periodically
                                                                           reviews the performance and working guideline
                                                                           to ensure effectiveness of its functions according
               Nomination and Remuneration                                 to the regulations and provide recommendation
               Committee Duties, Responsibilities and                      on any changes deemed necessary to the Board
               Authorities                                                 of Commissioners for approval.

        Duties, responsibilities and authorities of the
        Nomination and Remuneration Committee are disclosed              Work Procedure
        in the Nomination and Remuneration Committee
        Charter as the working guideline for the Nomination         1. The Committee’s work procedures related to
        and Remuneration Committee.                                    nominations are as follows:
                                                                       a. Prepare composition and nomination process,
        1. Duties and responsibilities of the Committee related           policies and criteria required in the nomination
           with the nomination are as follows:                            process, capacity-building program for the Board
           a. Provide recommendations to the Board of                     of Directors, Board of Commissioners and/or DPS
               Commissioners regarding:                                   members;
               1. Position composition, such as structure, size        b. Support implementation of evaluation on
                  and composition of the members (including               performance of the Board of Directors, Board of
                  expertise, knowledge, experience and                    Commissioners and/or DPS members.
                  diversity) of the Board of Directors, Board          c. Review and propose candidates who fulfil the
                  of Commissioners, and Sharia Supervisory                requirements as Board of Directors, Board of
                  Board (“DPS”) members.                                  Commissioners and/or DPS members to the
               2. Candidates who fulfil the requirements as               Board of Commissioners to be submitted to the
                  members of the Board of Directors, Board of             General Meeting of Shareholders.



244
Page 245
PT BUSSAN AUTO FINANCE




                                                                                                                            HIGHLIGHTS
                                                                                                                            PERFORMANCE
2. The Committee’s work procedure related to                 c. 1 (one) executive officer with a position 1 (one)
   remuneration is to draft a policy regarding                   level below the Board of Directors who is in
   remuneration and remuneration structure for the               charge of human resources.
   Board of Directors, Board of Commissioners and/or      3. Other Committee members are mostly appointed
   DPS members;                                              from the officer in charge in managerial positions of
                                                             Human Resources under the Board of Directors.
                                                          4. Director of Corporate Planning & Secretary as the




                                                                                                                            REPORT
                                                                                                                            MANAGEMENT
     Authorities                                             Committee Secretary will ensure that the Committee
                                                             has received information and materials on time,
1. In relation to its duties, the Committee the Board        and can provide input or appropriate consideration
   of Commissioners delegates authority to the               of these materials.
   Committee to obtain external legal advice or other
   professional advice regarding matters of reference,    In 2023, there was a change in Nomination and
   at the company’s expense.                              Remuneration Committee member following the
2. Eligible to access adequate resources to implement     reappointment of Mr. Jimmy Iskandar as the
   the duties, including access to the company’s          Chairperson of Nomination & Remuneration Committee
   secretariat to acquire assistance as needed and        in the Company. In addition, following the appointment
   required.                                              of Mr. Toshiyuki Kojima as President Commissioner, he
                                                          is also appointed as Nomination and Remuneration




                                                                                                                            PROFILE
                                                                                                                            CORPORATE
                                                          Committee member.
     Nomination and Remuneration
     Committee Membership                                 The change in Nomination & Remuneration Committee
                                                          member is disclosed in the Board of Commissioners’
In accordance with the Nomination and Remuneration        Decree No. SK-003/BOC/BAF.V/2023 dated May 8,
Committee Charter. The composition and membership         2023 concerning the Change in Company’s Nomination
structure of the Committee are as follows:                and Remuneration Committee Members and has been
1. Members of the committee are appointed and             reported to OJK and submitted through IDXnet and
    dismissed by the Board of Commissioners.              SPE OJK regarding the Change in Company’s Audit
2. Members of the committee shall consist of at least 3   Committee Member through the Company letter No.
    (three) members, provided that:                       BAF/136/CP/V/2023 dated May 9, 2023, and published




                                                                                                                            DISCUSSION & ANALYSIS
                                                                                                                            MANAGEMENT
    a. 1 (one) Chairperson, also serving as member, who   in the Company’s website. Therefore, as of December
        is an Independent Commissioner;                   31, 2023, composition of the Nomination and
    b. 1 (one) Commissioner;                              Remuneration Committee is as follows:



                   POSITION IN                                                                     POSITION IN
    NAME                                                  APPOINTMENT
                  THE COMMITTEE                                                                   THE COMPANY

 Dani              Chairperson         Board of Commissioners Decree No. SK-003/BOC/              Independent
 Firmansjah                            BAF.V/2023 dated May 8, 2023                               Commissioner

 Toshiyuki         Member              Board of Commissioners Decree No. SK-003/BOC/              President
 Kojima                                BAF.V/2023 dated May 8, 2023                               Commissioner

 Samuel            Member              Board of Commissioners Decree No. SK-003/BOC/              Independent
 Manasseh                              BAF.V/2023dated 8 May, 2023                                Party
                                                                                                                            GOVERNANCE
                                                                                                                            CORPORATE




 Jimmy             Member              Board of Commissioners Decree No. SK-003/BOC/              Associate
 Iskandar                              BAF.V/2023 dated May 8, 2023                               Director HRGA




                                                          administer incidental dismissal, except for the Committee
     Terms of office of the Nomination and                members who are appointed as members of the Board
     Remuneration Committee                               of Commissioners, the term will be automatically expired
                                                          when the term as a Board of Commissioners member is
Terms of the Nomination and Remuneration Committee        ended. The term of office of Mr. Dani Firmansjah and
shall not exceed the term of the Board of Commissioners   Mr. Samuel Manasseh will be ended at the AGMS for the
as stipulated in the Articles of Association, which is    Fiscal Year 2024, meanwhile, the terms of office of Mr.
                                                                                                                            REPORT
                                                                                                                            SUSTAINABILITY




3 years since appointment of each member, by not          Jiro Yamada and Mr. Jimmy Iskandar will be ended at the
reducing the right of the Board of Commissioners to       AGMS for the Fiscal Year 2025.




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                            245
Page 246
  CORPORATE
  GOVERNANCE




               Profile of the Nomination and                              Policy and Implementation of the
               Remuneration Committee                                     Nomination and Remuneration
                                                                          Committee Meeting
               Dani Firmasjah
               Chairperson                                           According to the Nomination and Nomination and
                                                                     Remuneration Committee Charter, provisions related to
        His complete profile is presented in Board of                the committee meeting implementation are as follows:
        Commissioners Profile in this Annual Report.                 1. Meeting Frequency
                                                                         The Committee meeting was held periodically at
               Toshiyuki Kojima                                          least 1 (once) in 4 (four) month.
               Member                                                2. Meeting Implementation
                                                                         A meeting can be held using teleconference media,
        His complete profile is presented in Board of                    video conferences, or other electronic media facilities
        Commissioners Profile in this Annual Report.                     that allow all participants to see and hear each other
                                                                         directly and participate as physical attendance of
               Samuel Manasseh                                           the meeting. Location of meeting is at Company’s
               Member                                                    address or business activities site shall be considered
                                                                         as meeting place by using electronic media, under
        Indonesian citizen, 61 years old. He earned a Bachelor’s         condition that the minutes of the meeting using
        degree from the University of Kansas, United States, in          teleconference media, video conferences, or other
        civil engineering, in 1986 and a Master of Business              electronic media facilities will be prepared as written
        Administration from Drury University, Missouri, United           document and circulated and signed by all of the
        States, in 1988. He has more than 25 years of experience         Board of Commissioners members who attending the
        in human resource management, development programs.              meeting.
        , strategic leadership, problem solving & decision making,   3. Quorum
        risk management, finance, and others. He was appointed           a. The Committee Meeting is only eligible to be
        as General Manager, Head of Finance Division and Head                 conducted if attended by at least more than
        of Corporate Risk Management (concurrent) of PT Astra                 half of the members. One of the majority total
        Honda Motor (1995-2007), Senior General Manager, Chief                Committee’s members will be appointed as
        of Group Risk Management of PT Astra International Tbk.               Chairperson of the Committee.
        (2007- 2011), Finance and Human Resources Director of            b. The Committee members meeting is only eligible
        PT Toyota Astra Motor (2011-2015), Finance Director of                to be attended by the Committee members.
        PT Astra Sedaya Finance (2015-2018), and he is currently              However, other participants such as President
        serving as Member of Audit Committee at PT Hasjrat                    Commissioner, President Director, Director of
        Multifinance.                                                         Human Resources, external advisor or other
                                                                              parties with approval from the Committee are
               Jimmy Iskandar                                                 eligible to attend in all or part of the Committee
               Member                                                         meetings, if deemed necessary.
                                                                     4. The Meeting is chaired by Chairperson of the
        His complete profile is presented in Executive Officers’         Committee.
        profile in this Annual Report.                               5. Meeting resolution is done based on collective
                                                                         consensus. In the case where the collective consensus
                                                                         is failed to be achieved, the decision will be taken by
               Independency of the Committee                             voting.
                                                                     6. If the decision-making process include any dissenting
        As regulated in the Nomination and Remuneration                  opinion, the dissenting opinion will be disclosed in the
        Committee Charter, the Nomination and Remuneration               minutes of meeting altogether with the reason.
        Committee shall be independent in carrying out duty
        and responsibility. Chairperson of the the Nomination
        and Remuneration Committee is appointed from                      Nomination   and     Remuneration
        Independent Commissioner.                                         Committee Meeting Frequency and
                                                                          Attendance
                                                                     Throughout 2023, the Nomination and Remuneration
                                                                     Committee held 3 (three) meetings with attendance
                                                                     level, as follows:




246
Page 247
PT BUSSAN AUTO FINANCE




                                                                                                                                                      HIGHLIGHTS
                                                                                                                                                      PERFORMANCE
             NAME                               POSITION                      MEETINGS                ATTENDING               ATTENDANCE

  Dani Firmansjah                     Chairperson                                    3                       3                      100%

  Tetsuya Daikoku*                    Member                                         1                       1                      100%

  Toshiyuki Kojima**                  Member                                         2                       2                      100%




                                                                                                                                                      REPORT
                                                                                                                                                      MANAGEMENT
  Samuel Manasseh                     Member                                         3                       3                      100%

  Jimmy Iskandar                      Member                                         3                       3                      100%

*)    Has submitted his resignation as President Commissioner and will be effective at the closing of the Annual GMS on May 8, 2023
**)   Has been appointed as President Commissioner of the Company at the Annual GMS on May 8, 2023 and is effective after passing the fit and
      proper test from the OJK on June 21, 2023.




       Training of the Nomination and Remuneration Committee Members




                                                                                                                                                      PROFILE
                                                                                                                                                      CORPORATE
To develop the competence and understanding in supporting the implementation of the duties and responsibilities, the
Nomination and Remuneration Committee members have participated in seminars, training or workshop throughout
2023, as follows:



       NAME                                     TRAINING                                  DATE & PLACE                   ORGANIZER

  Dani                    Disclosed in Board of Commissioners training table section in this Annual Report.
  Firmansjah




                                                                                                                                                      DISCUSSION & ANALYSIS
                                                                                                                                                      MANAGEMENT
  Toshiyuki               Disclosed in Board of Commissioners training table section in this Annual Report.
  Kojima

  Samuel                                                                             -
  Manasseh

  Jimmy                   Seminar “Implementation of Artificial                          Virtual Meeting,        OJK Institute
  Iskandar                Intelligence in Financial Service Industry.”                   February 2,
                                                                                         2023

                          National Seminar “Micro Financing and HR in                    Jakarta,                Indonesia Financing
                          Society 5.0 Era.”                                              March 3, 2023           Company Association



                                                                           1. Evaluated and review the composition of the Board
       Nomination and Remuneration                                            of Commissioners, the remuneration structure of
       Committee Activity Implementation
                                                                                                                                                      GOVERNANCE
                                                                                                                                                      CORPORATE



                                                                              the Board of Directors, remuneration policies and
       Report 2022                                                            meeting schedules for the 2021 financial year.
                                                                           2. Conducted discussions regarding the composition of
In 2021, the Nomination and Remuneration Committee                            the Board of Commissioners, Board of Directors and
has carried out its duties according to the Nomination                        Sharia Supervisory Board.
and Remuneration Committee Work Guidelines and                             3. Conducted discussions regarding the remuneration
Rules (Charter). The Risk Monitoring Committee has                            for the Board of Commissioners and the Board of
held 5 (five) meetings, such as on February 19, 2021,                         Directors for the 2021 financial year.
March 9, 2021, July 21, 2021, September 22, 2021 and                       4. Conducting discussions related to the development
November 16, 2021, with an attendance rate of 100%.                           program of the Board of Directors in line with the
This maximum level of attendance shows the high                               latest developments.
commitment of all members of the Nomination and                            5. Conducting discussions regarding car ownership
Remuneration Committee.                                                       program for Board of Directors.
                                                                           6. Conduct discussions regarding succession plan of
                                                                                                                                                      REPORT
                                                                                                                                                      SUSTAINABILITY




Through the meetings that have been held, the                                 each Board of Directors, the division of roles and
Nomination and Remuneration Committee has:                                    responsibilities between the Board of Directors and
                                                                              future plans.



2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                                      247
Page 248
  CORPORATE
  GOVERNANCE




                 RISK MONITORING COMMITTEE

                                                                    3. Perform other duties and responsibilities assigned
               Legal Basis Establishment                               by the Board of Commissioners from time to time,
                                                                       particularly related to risk monitoring.
        In order to further improve supervision over risk
        management implementation in the Company following          Within scope of its responsibilities , the committee holds
        the business complexity as well as to comply with           authorities as follows:
        provisions of the Financial Services Authority Regulation   1. Obtain access to the Company documents, data and
        No. 29 /POJK.05/2020 as Amendments to Financial                information of that are required according to their
        Services Authority Regulation No. 30/POJK.05/2014              respective areas of duty with the approval of the
        concerning Good Corporate Governance for Financing             Board of Commissioners;
        Companies (“POJK 29”), the Company has established          2. Provide opinions and recommendations to Board
        Risk Monitoring Committee on November 1, 2020. This            of Commissioners in overall application of risk
        committee was established by and is responsible to the         management.
        Board of Commissioners related to implementation
        of Board of Commissioners duty concerning the risk
        monitoring carried out by the Board of Directors.                Risk Monitoring Committee Membership
                                                                    In accordance with POJK No. 29/POJK.05/2020
               Risk Monitoring Committee Charter                    concerning Amendments to the Financial Services
                                                                    Authority Regulation No. 30/POJK.05/2014 concerning
        In carrying out its duties, Risk Monitoring Committee       Good Corporate Governance for Financing Companies
        has been equipped with work guidelines as stated in the     (“POJK 29”), the Risk Monitoring Committee at least
        Charter that was prepared with reference to prevailing      consists of:
        laws and regulations. The Charter contains provisions       1. Committee members shall consist of at least:
        regarding structure of Risk Monitoring Committee,               a. An Independent Commissioner as Chairperson;
        powers and responsibilities, membership requirements,               and
        terms of office, and meetings. In 2023, the Company             b. Independent parties with expertise in Finance
        has conducted annual review on the charter including                and/or Risk Management as members, with
        review on meeting provisions and simulation of quorum               number is adjusted to the Company’s needs.
        calculation in the committee’s meeting. The charter has     2. Board of Directors members are prohibited to be
        been approved by Board of Commissioners in Board of             appointed as members of the Risk Monitoring
        Commissioners Meeting on November 27, 2023.                     Committee;
                                                                    3. Members of the Risk Monitoring Committee shall
                                                                        have good integrity, morals, and track record.
               Risk Monitoring Committee Duties,
               Responsibilities and Authorities                     In 2023, there was changes to the Company’s Risk
                                                                    Monitoring Committee members following the re-
        Duties, responsibilities and authorities of the Risk        appointment of Mr. Heru Absoro as a member in line
        Monitoring Committee are disclosed in Risk Monitoring       with the end of his term of office as a member of the
        Committee Charter as working guideline for the Risk         Committee.
        Monitoring Committee, as follows:
        1. Evaluate conformity between risk management              The changes in Risk Monitoring Committee members
           policies and implementation of company policies;         was disclosed in the Company’s Board of Commissioners
        2. Oversee and evaluate implementation of duties of the     Decree No. SK-004/BOC/BAF.V/2023 dated May 8, 2023
           Risk Management Committee and Risk Management            concerning Changes in Members of the Company’s Risk
           Work Unit;                                               Monitoring Committee. Therefore, as of December 31,
                                                                    2023, composition of the Risk Monitoring Committee is
                                                                    as follows:




248
Page 249
PT BUSSAN AUTO FINANCE




                                                                                                                                  HIGHLIGHTS
                                                                                                                                  PERFORMANCE
                     POSITION IN                                                                       POSITION IN
    NAME                                                     APPOINTMENT
                    THE COMMITTEE                                                                     THE COMPANY

 Prabowo            Chairperson          Board of Commissioners Decree No. SK-004/BOC/                 Independent
                                         BAF.V/2023 dated May 8 2023 concerning Changes in             Commissioner
                                         the Company Risk Monitoring Committee Members.




                                                                                                                                  REPORT
                                                                                                                                  MANAGEMENT
 Dani               Member               Board of Commissioners Decree No. SK-004/BOC/                 Independent
 Firmasjah                               BAF.V/2023 dated May 8 2023 concerning Changes in             Commissioner
                                         the Company Risk Monitoring Committee Members.

 Heru Absoro        Member               Board of Commissioners Decree No. SK-004/BOC/                 Independent
                                         BAF.V/2023 dated May 8 2023 concerning Changes in             Party
                                         the Company Risk Monitoring Committee Members.




                                                             responsibilities. Chairperson of the Company’s Risk




                                                                                                                                  PROFILE
                                                                                                                                  CORPORATE
     Terms of Office of Risk Monitoring                      Monitoring Committee is appointed from Independent
     Committee                                               Commissioner.

The term of office of the Risk Monitoring Committee
shall not exceed the term of office of the Board of               Policy and Implementation of the Risk
Commissioners as regulated in the Company’s articles of           Monitoring Committee Meeting
association, which is 3 (three) years from the appointment
of each member, without prejudice to the right of the        According to the Risk Monitoring Committee Charter,
Board of Commissioners to dismiss at any time, except        the Risk Monitoring Committee meeting implementation
for members of the Committee. members of the Board of        policy is as follows:
Commissioners will automatically end when their term of      1. The Committee meeting should be conducted every




                                                                                                                                  DISCUSSION & ANALYSIS
                                                                                                                                  MANAGEMENT
office as a member of the Board of Commissioners ends.           Quarter or when needed according to the Committees
The term of office of Mr Prabowo and Mr Dani Firmansjah          chaiperson’s consideration or at the request of the
will be ended at the AGMS for Fiscal Year 2024, while Mr.        Board of Commissioners.
Heru Absoro’s term of office will be ended at the 2025       2. The meeting can only be conducted if attended
Fiscal Year AGMS.                                                by mandatory members and at least 51% (fifty
                                                                 one percent) of the total members including an
                                                                 Independent Commissioner and Independent
     Profile of the Risk Monitoring Committee                    Party(ies). How to calculate the quorum can be seen
                                                                 in the appendix of charter.
      Prabowo                                                3. Meeting Announcement /invitations will be sent by
      Chairperson                                                Chairperson of the Committee or representative, and
                                                                 it should be sent no later than 7 (seven) day before
His complete profile is presented in Board of                    the Meeting, except for extraordinary meetings or
Commissioners Profile in this Annual Report.                     meetings that will be held outside the predetermined
                                                                 schedule as referred to in point 1 under condition
      Dani Firmasjah                                             that all the Committee members have been notified.
                                                                                                                                  GOVERNANCE
                                                                                                                                  CORPORATE




      Member                                                 4. Meeting decisions are made based on deliberation
                                                                 to reach consensus. If consensus is not reached,
His complete profile is presented in Board of                    the decision is made based on the majority of votes
Commissioners Profile in this Annual Report.                     (voting).
                                                             5. Every member of the Committee shall have one
      Heru Absoro                                                vote. If there is a conflict of interest, the member of
      Member                                                     the Committee shall refrain from the vote to avoid
                                                                 conflict of interest. In the case of a tie in votes, the
His complete profile is presented in Audit Committee             Chairperson of the meeting shall be entitled to a
Profile in this Annual Report.                                   second casting vote.
                                                             6. The meeting resolutions is required to be summarized
                                                                 and written into a minute of meeting and signed by
     Independency of the Committee                               all members presence at the meeting and should be
                                                                 well documented.
                                                                                                                                  REPORT
                                                                                                                                  SUSTAINABILITY




As stipulated in the Company’s Risk Monitoring               7. Any dissenting opinions in the Meeting are required
Committee Charter, the Risk Monitoring Committee                 to be stated clearly into minutes of meeting including
must act independently in carrying out its duties and            the reasons for dissenting opinions.



2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                  249
Page 250
  CORPORATE
  GOVERNANCE




               Risk Monitoring Committee Meeting Frequency and Attendance
        Risk Monitoring Committee held 4 (four) meeting with attendance levels as follows:



                  NAME                      POSITION                 MEETINGS            ATTENDING             ATTENDANCE

         Prabowo                     Chairperson                           4                    4                 100%

         Dani Firmasjah              Member                                4                    4                 100%

         Heru Absoro                 Member                                4                    4                 100%




               Training of the Risk Monitoring Committee Members
        To improve competence and understanding in supporting the implementation of their duties and responsibilities, in
        2023 members of the Risk Monitoring Committee have attended training, seminars or workshops as follows:



               NAME                          TRAINING                          DATE & PLACE             ORGANIZER

         Prabowo           Disclosed in Board of Commissioners training table section in this Annual Report.

         Dani              Disclosed in Board of Commissioners training table section in this Annual Report.
         Firmansjah

         Heru Absoro       Disclosed in Audit Committee training table in this Annual Report.




                                                                   implementation of these pillars is always reported by
               Risk Monitoring Committee Activity                  the Board of Directors at the Joint Meeting of Board of
               Implementation Report 2021                          Directors and Board of Commissioners quarterly.

        In 2023, the Risk Monitoring Committee has carried out     Therefore, implementation of risk management in
        its duties according to the Risk Monitoring Committee      2023 will be adequate. The risks faced by the Company
        Work Guidelines and Procedure. The Risk Monitoring         have also been managed well. The Risk Monitoring
        Committee has attempted to monitor and evaluate the        Committee under the Board of Commissioners has held
        implementation of the duties of the Risk Management        4 (four) meetings, namely on February 13, 2023, May
        Committee and the Risk Management Work Unit, as            12, 2023, August 16 2023 and November 14 2023.
        well as carry out evaluations on the conformity between    This shows the Company’s commitment to continuing
        Risk Management policies and the implementation of         to improve risk management and mitigation. risk.
        company policies.                                          The Board of Directors, through the Company’s Risk
                                                                   Management and Compliance Division, has carried out
        Risk Monitoring Committee assessed the Company             the formulation, identification and mitigation of risks in
        has implemented risk management based on the Risk          the company well. However, evaluation of improvements
        Management Implementation Guidelines as stipulated         and developments in the implementation of the
        in POJK Regulation No. 44/POJK.05/2020 concerning          Company’s risk management continues to be carried
        Implementation of Risk Management for Non-Bank             out, to ensure the continuity the Company’s long-tem
        Financial Services Institutions. The Company has           risk management.
        implemented 4 (four) pillars of risk management
        implementation including active monitoring by the          Through regular meetings, the Risk Monitoring
        Board of Directors, Board of Commissioners and DPS,        Committee has carried out discussions and evaluations,
        policy adequacy, risk management information system        including:
        and a comprehensive internal control system. The           1. The Company’s health level for quarter 4 2022 and




250
Page 251
PT BUSSAN AUTO FINANCE




                                                                                                                          HIGHLIGHTS
                                                                                                                          PERFORMANCE
   Full Year 2022, quarter I 2023, quarter II 2023, and            September 2023 (Head Office Pilot Project)
   quarter IV 2023. The company’s health level for the         •   External Event Report (Operational Risk Event
   third quarter of 2023 is at a composite rating of 1,            Report)
   which reflects the condition of the Company which           • Risk Awareness Culture Program
   is generally very healthy, so it is considered very         • Review of Business and Operational processes
   capable of facing significant negative influences           • Risk and Compliance Assurance Program (RCAP)
   from changes in business conditions and other            5. Implementation of Information Technology Risk




                                                                                                                          REPORT
                                                                                                                          MANAGEMENT
   external factors as reflected in the assessment             Management in the 4th quarter of 2022, the 1st
   factor ranking. including the implementation of             quarter of 2023, the 2nd quarter of 2023, and the
   good corporate governance, risk profile, profitability      3rd quarter of 2023, including:
   and capital which are generally very good. If there         • IT Steering Committee
   is a weakness, in general the weakness is considered        • IT Security Monitoring
   not significant.                                            • Disaster Recovery Plan
2. The Company’s risk profile per type of risk for             • IT Risk Management Implementation
   quarter IV 2022, quarter I 2023, quarter II 2023,
   and quarter IV 2023 for both conventional and            Results of the Risk Monitoring Committee Meeting
   sharia financing.                                        have been stated in the minutes of the meeting and
3. Results of monitoring the Company’s compliance           are well documented. All notes and recommendations
   or Compliance Dashboard with the applicable              of the Risk Monitoring Committee in 2023 have been




                                                                                                                          PROFILE
                                                                                                                          CORPORATE
   provisions for the positions of quarter IV 2022,         communicated and discussed with the Company’s
   quarter I 2023, quarter II 2023, and quarter IV          Board of Directors for improvement and follow-up and
   2023.                                                    have been submitted to the Board of Commissioners
4. Implementation of Risk Management for 4th                periodically at Board of Commissioners meetings which
   quarter of 2022, 1st quarter of 2023, 2nd quarer of      discuss the Risk Monitoring Committee report.
   2023, and 3rd quarter of 2023 including:
   • Implementation of Risk Control Self-Assessment
        for the Period December 2022, June 2023 and




                                                                                                                          DISCUSSION & ANALYSIS
                                                                                                                          MANAGEMENT
                                                                                                                          GOVERNANCE
                                                                                                                          CORPORATE
                                                                                                                          REPORT
                                                                                                                          SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                          251
Page 252
  CORPORATE
  GOVERNANCE




                     COMMITTEE UNDER THE
                     BOARD OF DIRECTORS

                 CORPORATE SOCIAL
                 RESPONSIBILITY COMMITTEE

                                                                     5. Oversee the Company’s programs related to
               Legal Basis Establishment                                corporate Social Responsibility and ensure that
                                                                        these programs are integrated and consistently
        Corporate Social Responsibility Committee is                    implemented throughout the organization.
        established to support the Company in fulfilling             6. Conduct an annual review of the integrated
        responsibility to stakeholders, including customers,            corporate Social Responsibility program to ensure
        employees, shareholders, community and environment              that:
        in all operational aspects such as economic, social and         a. In compliance with prevailing law.
        environment aspects.                                            b. In accordance with national standards and
                                                                           global trends, as well
                                                                        c. Be consistent with Company policies, guidelines
               Work Guidelines                                             and corporate Social Responsibility objectives.

        In carrying out the duties, Social Responsibility            Corproate Social Responsibility Committee has the
        Committee has been equipped with work guideline as           authority to approve and determine policies/ operational
        disclosed in Social Responsibility Committee Charter,        activities related to corporate Social Responsibility, as
        which is drafted referring to prevailing law. The charter    follows:
        includes provisions on committee’s structure, duty,          1. Preparing activity plan and budget;
        responsibility and authority, meeting implementation,        2. Oversee and being responsible upom implementation
        reporting and responsibility as well as values and ethics        of corporate Social Responsibility activities;
        of the committee.                                            3. Provide reports related to implementation of
                                                                         corporate social responsibility activities to the Board
                                                                         of Directors
               Corporate Social Responsibility
               Committee Duty, Responsibility and
               Authority                                                  Corporate Social Responsibility
                                                                          Committee Membership
        Duty and responsibility of Corporate Social Responsibility
        Committee are including:                                     As stated in the Charter, composition and membership
        1. Formulate and update the vision, strategy and             of the Social Responsibility Committee is as follows:
           implementation of corporate social responsibility         1. The Company’s CSR Committee consists of at
           programs for the Company.                                     least 4 (four) members, appointed by the Board of
        2. Establish the principles governing the Company’s              Directors.
           policies on social and environmental responsibility       2. The committee is led by a Chairperson who is a
           which will guide management in making decisions               Director or Associate Director.
           and actions.                                              3. Other members are employees who are appointed
        3. Oversee the development and implementation of                 based on their knowledge and experience in the
           systems and procedures to ensure the achievement              field of social activities.
           of the Company’s social and environmental
           responsibility goals.                                     The composition of the Corporate Social Responsibility
        4. Ensure the necessary transparency and proper              Committee as of December 31, 2023 is as follows:
           openness in the Company’s business conduct in
           achieving the objectives of corporate social and
           environmental responsibility.




252
Page 253
PT BUSSAN AUTO FINANCE




                                                                                                                         HIGHLIGHTS
                                                                                                                         PERFORMANCE
                   POSITION IN                          APPOINTMENT/                             POSITION IN
    NAME
                  THE COMMITTEE                      RESTATEMENT LETTER                         THE COMPANY

 Ivan              Chairperson        Board of Directors Approval Memo No. 005/AM-              Associate
 Sebastian                            CP/11/2022 concerning Approval for New Organization       Director
                                      Structure Effective as per Jan 2, 2023 dated November
                                      3, 2022.




                                                                                                                         REPORT
                                                                                                                         MANAGEMENT
 Pangestu          Member             Board of Directors Approval Memo No. 005/AM-              Head of
 Wibowo                               CP/11/2022 concerning Approval for New Organization       Communication
                                      Structure Effective as per Jan 2, 2023 dated November     & Branding
                                      3, 2022.

 Rachmat           Member             Board of Directors Approval Memo No. 005/AM-              Head of
 Basuki                               CP/11/2022 concerning Approval for New Organization       Learning &
                                      Structure Effective as per Jan 2, 2023 dated November     Development
                                      3, 2022.

 Josephine         Member             Board of Directors Approval Memo No. 005/AM-              Head of Dana
 Novita                               CP/11/2022 concerning Approval for New Organization       Syariah and




                                                                                                                         PROFILE
                                                                                                                         CORPORATE
                                      Structure Effective as per Jan 2, 2023 dated November     UMC Business
                                      3, 2022.

 Irna Vitasari     Member             Board of Directors Approval Memo No. 005/AM-              Head of
                                      CP/11/2022 concerning Approval for New Organization       Procurement
                                      Structure Effective as per Jan 2, 2023 dated November     and Account
                                      3, 2022.                                                  Payables




                                                                                                                         DISCUSSION & ANALYSIS
                                                                                                                         MANAGEMENT
                                                         with the latest position as Division Head for Financial
     Profile of Social Responsibility                    Service Industry.
     Committee
                                                         He joined with the Company since December 2021 and
     Ivan Sebastian                                      appointed as Learning & Development Division Head
     Chairperson                                         until now.

His complete profile is presented on Executive Officer
                                                               Rachmat Basuki
profile in this Annual Report.
                                                               Member

     Pangestu Wibowo                                     Indonesian Citizen, 46 years. Earned Bachelor’s degree
     Member                                              from Sanata Dharma University Yogyakarta in 2001
                                                         majoring Accounting.
Indonesian citizen, 53 years. Earned Bachelor’s degree
from Parahyangan Catholic University Bandung in 1994.    He holds experience and was working as Management
                                                         Trainee with assignment as Training Analyst at Astra
                                                                                                                         GOVERNANCE
                                                                                                                         CORPORATE



He holds over 23 years of experience in Finance/         Credit Companies – PT Astra Sedaya Finance (2002
Banking. He joined the Company since December 2017       – 2004), Fleet Sales Head DKI & Jabar at Astra Credit
as Marketing Communication & Branding Division Head      Companies – PT Astra Sedaya Finance (2004 – 2008),
until now.                                               Marketing Manager Non-Dealer Sales at Sumatera area
                                                         and further Jabodetabek area at PT Adira Dinamika
Indonesian Citizen, 48 years. Earned Master’s degree     Multifinance Tbk (2008 – 2012), Head of Car &
of Management from Universitas Indonesia in 2008         Motorcycle Product at PT Adira Dinamika Multifinance
and Bachelor’s degree of Architecture Engineering from   Tbk (2012 – 2015), and as Mega Solusi Product
Universitas Indonesia in 2001.                           Development Division Head at PT Mega Central Finance
                                                         (2015 – 2017).
He holds over 15 years of experience in HR, including
10 years in Banking industry. His experience in HR       He joined with the Company since April 2021 and
includes Senior HR Relationship Manager, Learning        appointed as Sales and Marketing Dana Syariah Division
Partner and Junior HR Relationship Manager at PT Bank    Head, Dana Syariah Division Head and currently serving
                                                                                                                         REPORT
                                                                                                                         SUSTAINABILITY




DBS Indonesia. He was previously appointed as Senior     as Head of Dana Syariah and UMC Business.
Manager Recruitment at Permata Bank. He was also
working at Consult Group Executive Search (headhunter)



2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                         253
Page 254
  CORPORATE
  GOVERNANCE




               Josephine Novita                                         Terms of Social Responsibility
               Member                                                   Committee
        Indonesian Citizen, 47 years. Earned Bachelor’s
        degree     from    Sanata  Dharma    University            The term of Corporate Social Responsibility Committee
        Yogyakarta    in   2001   majoring  Accounting.            members is 1 (one) year from the date the committee is
                                                                   appointed by the Board of Directors, without prejudice
        She holds experience and was working as Management         to the Board of Directors’ right to dismiss them at any
        Trainee with assignment as Training Analyst at Astra       time.
        Credit Companies – PT Astra Sedaya Finance (2002
        – 2004), Fleet Sales Head DKI & Jabar at Astra Credit
        Companies – PT Astra Sedaya Finance (2004 – 2008),              Policy and Implementation of Social
        Marketing Manager Non-Dealer Sales at Sumatera area             Responsibility Committee Meetings
        and further Jabodetabek area at PT Adira Dinamika
        Multifinance Tbk (2008 – 2012), Head of Car & Motorcycle   According to Social Responsibility Committee Charter,
        Product at PT Adira Dinamika Multifinance Tbk (2012        the meeting implementation policy is as follows:
        – 2015), and as Mega Solusi Product Development            1. Company committee meetings are held at least
        Division Head at PT Mega Central Finance (2015 – 2017).        1 (one) time in 3 (three) months. Directors and
                                                                       committees may propose to hold additional
        She joined with the Company since April 201 and                meetings if deemed necessary.
        appointed as Sales and Marketing Dana Syariah Division     2. Meetings can be held in person or using
        Head, Dana Syariah Division Head and currently serving         teleconference, video conference, or other electronic
        as Head of Dana Syariah and UMC Business.                      media that allows all Committee members to see
                                                                       and hear each other directly.
                                                                   3. The Company Committee shall appoint a committee
               Irna Vitasari                                           secretary to record and document the results of the
               Member                                                  meeting.
        Indonesian Citizen, 41 years. Earned Master’s degree       4. Meetings can only be held if attended by at least
        from Tarumanegara University Jakarta in 2009                   51% (fifty one percent) of the total members.
        majoring Education, Master’s degree of Management          5. Meeting decisions are made based on deliberation
        and Bachelor’s degree of Accounting from Atma Jaya             and consensus. In the event that consensus
        University Yogyakarta in 2005.                                 deliberation does not occur, then decisions are
                                                                       made based on the majority vote (voting).
        She holds experience and was working as Auditor -          6. Each committee member has one vote. If a conflict
        KAP Mulyamin Sensi Suryanto (a member of Moore                 of interest occurs, Committee members must refrain
        Stephens) in 2006 – 2008, PT Mitra Pinasthika Mustika          from voting to avoid a conflict of interest. In the case
        Finance (2008 – 2012), Treasury Assistant Manager –            of equal voting, the Chairperson of the meeting has
        PT Adira Quantum Multifinance (2012 – 2015), Finance           the right to hold a second voting right.
        Manager – PT Fortice Service Office (2015-2016),           7. The results of the meeting must be stated in the
        Finance & Treasury Manager – PT Bank Danamon                   minutes of the meeting and signed by all members
        Indonesia, Tbk (2016- 2020), Procurement Lead.                 present at the meeting and properly documented.
                                                                   8. Dissenting opinions that occur at the meeting must
        She joined the Company since June 2020 as Procurement          be declared clearly in the minutes of the meeting
        Departement Head and is currently serving as Head of           altogether with reasons for the dissenting opinion.
        Procurement and Account Payable.

                                                                        Social Responsibility Committee
                                                                        frequency and attendance
                                                                   In 2023, Corporate Social Responsibility committee held
                                                                   5 (five) meeting with attendance level, as follow:



                  NAME                       POSITION                 MEETING             ATTENDING           ATTENDANCE

         Ivan Sebastian              Chairperson                          5                     5                  100%

         Pangestu Wibowo             Member                               5                     5                  100%

         Rachmat Basuki              Member                               5                     5                  100%

         Josephine Novita            Member                               5                     5                  100%




254
Page 255
PT BUSSAN AUTO FINANCE




                                                                                                                                                 HIGHLIGHTS
                                                                                                                                                 PERFORMANCE
             NAME                                 POSITION                         MEETING           ATTENDING          ATTENDANCE

  Irna Vitasari                         Member                                           5                 5                 100%

  Putri Ayuningtyas*                    Member                                           2                 1                  50%

*) Have submitted their resignations as of June 1, 2023 and are effectively out of office.




                                                                                                                                                 REPORT
                                                                                                                                                 MANAGEMENT
       Training for Social Responsibility                                              Committee Work
       Committee Members                                                               Implementation
As end of 2023, the committee members have attended                             In 2023, the Corporate Social Responsibility Committee
training or seminars related to support for sustainable                         held 5 (five) meetings to discuss work programs or CSR
finance which is part of social responsibility (corporate                       activities carried in one year. The meeting for 2023 was
social aspects), including:                                                     held on February 6, 2023, April 17, 2023, June 14, 2023,




                                                                                                                                                 PROFILE
                                                                                                                                                 CORPORATE
1. Lunch & Learn: Social Education Integration                                  June 27, 2023 and September 14, 2023.
    into Business on August 21, 2023 as a series
    of Sustainability Month 2023 organized by the                               Some of the topics discussed were including CSR
    Company.                                                                    budget allocation for 2023, planned CSR activities for
2. Stepping-up on Sustainability: Creating Long-Term                            2023 along with a timeline of activities such as CSR
    Values in Business Strategy. This seminar was held                          programs. Details of CSR implementation activities are
    together with the Board of Directors and Board                              presented in the Sustainability Report Chapter, namely
    of Commissioners as well as Senior Management                               in the Development of Social and Community Activities
    presented by Juniati Gunawan from the Trisakti                              section in this annual report.
    Sustainable Center on October 23 2023.




                                                                                                                                                 DISCUSSION & ANALYSIS
                                                                                                                                                 MANAGEMENT
                                                                                                                                                 GOVERNANCE
                                                                                                                                                 CORPORATE
                                                                                                                                                 REPORT
                                                                                                                                                 SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                                 255
Page 256
  CORPORATE
  GOVERNANCE




                 BUSINESS CONTINUITY
                 MANAGEMENT COMMITTEE

                                                                      done correctly, and include business interruption
               Legal Basis Establishment                              management/disaster recovery.
                                                                   4. Ensure appropriate responses are taken for any
        Business Continuity Management Committee is                   disruption in business processes.
        established pursuant to Approval Memo No. 001/AM-          5. Determine the recovery of critical business processes,
        BCM/IV/2011 dated April 5, 2011. The Committee is             if possible, within a tolerable recovery period, which
        established to ensure correct and sufficient readiness        has been determined by the company.
        level of the Company to overcome disruption against        6. In an emergency situation, the Chairperson of the
        business activity and to protect important business           Committee has the authority to decide what action
        activity from impact of information system major              will be taken, including if necessary, costs for the
        failure or disaster.                                          case settlement.


               Work Guidelines                                          Business Continuity Management
                                                                        Committee Membership
        In carrying out the duties, Business Continuity
        Management Committee has been equipped with                As declared in the Charter, composition and membership
        work guidelines as stated in the Business Continuity       of the Business Continuity Management Committee are
        Management Charter, which has been prepared                as follows:
        referring to prevailing laws and regulations. These        1. Business Continuity Committee is assigned/
        guidelines contain, among other things, provisions             positioned under and reports to the Board of
        regarding committee structure, duties, responsibilities        Directors, and is free from intervention from other
        and authority, meeting implementation, reporting and           Directorates.
        responsibilities and committee values and ethics.          2. The committee organization consists of:
                                                                       a. Steering Committee of the Business Continuity
                                                                           Committee is the Board of Directors.
               Business Continuity Management                          b. Chairperson is appointed from the Director or
               Committee Duty, Responsibility and                          Associate Director.
               Authority                                               c. Other members consist of at least employees
                                                                           from work units in charge of Operation Support,
        Duty and responsibility of the Business Continuity                 IT Operation, Human Resources Management,
        Management Committee are including:                                General Service, Collection and Marketing/Sales
        1. Prepare, maintain and update management                         functions.
           policy on business continuity plans (Business           3. Details of the committee organization will be
           Continuity Plan, Recovery Management Plan, Crisis           regulated in Business Continuity Management.
           Management Plan) and other important documents
           to suit with actual condition/ situations.              In 2023, there was no changes in the Business Continuity
        2. Ensure socialization, training and actions related to   Management Committee membership as of December
           the policy                                              31, 2023. Therefore, composition of the Company’s
        3. Ensure Business Continuity Plan, Business Recovery      Business Continuity Management Committee as of
           Management Plan, Crisis Management Plan are             December 31, 2023 is as follows:




               NAME        POSITION IN                            APPOINTMENT/                              POSITION IN
                          THE COMMITTEE                        RESTATEMENT LETTER                          THE COMPANY

         Charles           Chairperson         Board of Directors Approval Memo No. 005/AM-                Director
         Gultom                                CP/11/2022 concerning Approval for New Organization
                                               Structure Effective in Jan 2, 2023 dated November 3,
                                               2022

         A Lung Ng         Member              Board of Directors Approval Memo No. 005/AM-                Director
                                               CP/11/2022 concerning Approval for New Organization
                                               Structure Effective in Jan 2, 2023 dated November 3,
                                               2022




256
Page 257
PT BUSSAN AUTO FINANCE




                                                                                                                      HIGHLIGHTS
                                                                                                                      PERFORMANCE
                   POSITION IN                          APPOINTMENT/                          POSITION IN
    NAME
                  THE COMMITTEE                      RESTATEMENT LETTER                      THE COMPANY

 Denny             Member             Board of Directors Approval Memo No. 005/AM-           IT Operation
 Kurniawan                            CP/11/2022 concerning Approval for New Organization    Division Head
                                      Structure Effective in Jan 2, 2023 dated November 3,
                                      2022




                                                                                                                      REPORT
                                                                                                                      MANAGEMENT
 Dwi Adi           Member             Board of Directors Approval Memo No. 005/AM-           Field Collection
 Riyanto                              CP/11/2022 concerning Approval for New Organization    1 Head area
                                      Structure Effective in Jan 2, 2023 dated November 3,   Medan,
                                      2022                                                   Palembang,
                                                                                             Jakarta Division
                                                                                             Head

 Ollyvia Yanuar    Member             Board of Directors Approval Memo No. 005/AM-           Human
                                      CP/11/2022 concerning Approval for New Organization    Resource
                                      Structure Effective in Jan 2, 2023 dated November 3,   Management
                                      2022                                                   Division Head




                                                                                                                      PROFILE
                                                                                                                      CORPORATE
 Lora Oktaviani    Member             Board of Directors Approval Memo No. 005/AM-           Legal and
                                      CP/11/2022 concerning Approval for New Organization    Litigation
                                      Structure Effective in Jan 2, 2023 dated November 3,   Division Head
                                      2022

 Hudi Purnomo      Member             Board of Directors Approval Memo No. 005/AM-           Regional Center
                                      CP/11/2022 concerning Approval for New Organization    Makassar
                                      Structure Effective in Jan 2, 2023 dated November 3,   Division Head
                                      2022

 Ardi Priatna      Member             Board of Directors Approval Memo No. 005/AM-           Regional Center
                                      CP/11/2022 concerning Approval for New Organization    Surabaya




                                                                                                                      DISCUSSION & ANALYSIS
                                                                                                                      MANAGEMENT
                                      Structure Effective in Jan 2, 2023 dated November 3,   Division Head
                                      2022

 Johannes          Member             Board of Directors Approval Memo No. 005/AM-           Regional Center
 Ricky                                CP/11/2022 concerning Approval for New Organization    Medan Division
                                      Structure Effective in Jan 2, 2023 dated November 3,   Head
                                      2022

 Tri Nardiyati     Member             Board of Directors Approval Memo No. 005/AM-           Operation
                                      CP/11/2022 concerning Approval for New Organization    Support Division
                                      Structure Effective in Jan 2, 2023 dated November 3,   Head
                                      2022

 Arie Yulius       Member             Board of Directors Approval Memo No. 005/AM-           Operation
                                      CP/11/2022 concerning Approval for New Organization    Support dan
                                      Structure Effective in Jan 2, 2023 dated November 3,   Operation Asset
                                      2022                                                   Management
                                                                                             Group Head
                                                                                                                      GOVERNANCE
                                                                                                                      CORPORATE




 Silvi             Member             Board of Directors Approval Memo No. 005/AM-           General Affairs
 Mahdalena                            CP/11/2022 concerning Approval for New Organization    Division Head
                                      Structure Effective in Jan 2, 2023 dated November 3,
                                      2022

 Puji Arianti      Member             Board of Directors Approval Memo No. 005/AM-           Corporate
                                      CP/11/2022 concerning Approval for New Organization    Planning and
                                      Structure Effective in Jan 2, 2023 dated November 3,   Secretary
                                      2022                                                   Division Head
                                                                                                                      REPORT
                                                                                                                      SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                      257
Page 258
  CORPORATE
  GOVERNANCE




                                                                      Started his career as a Surveyor at the Company in
               Profile of the Business Continuity                     2003, and currently serving as Regional Center Makassar
               Management Committee                                   Division Head.

               Charles Gultom                                               Ardi Priatna
               Chairperson                                                  Member
        His complete profile is presented in Board of Directors       Indonesian citizen, 38 years old. Obtained a bachelor’s
        profile in this Annual Report.                                degree from Gunadarma University in Computer Science
                                                                      in 2007.
               A Lung Ng
               Member                                                 Started his career as Area Marketing Controller at the
                                                                      Company in 2007, and currently serving as Regional
        His complete profile is presented in Board of Directors       Center Surabaya Division Head.
        profile in this Annual Report.
                                                                            Johannes Ricky
               Denny Kurniawan                                              Member
               Member
                                                                      Indonesian citizen, 40 years old. Earned Bachelor’s
        Indonesian Citizen, 40 years. Earned Bachelor’s degree        degree from Tarumanegara University in Management
        from Universitas Bina Nusantara majoring Computer             in 2005. He previously worked as Area Marketing
        Science in 2005.                                              Development supervisor for PT Yamaha Indonesia Motor
                                                                      Mfg, Marketing Manager for PT Sinar Roda Kencana Mas.
        Previously, he worked as IT Senior Manager at PT Mitra        He joined the company in 2019 and currently serving as
        Adipekarsa Tbk and currently serving as IT Operation          Regional Center Medan Division Head.
        Division Head.
                                                                            Tri Nardiyati
               Dwi Adi Riyanto                                              Member
               Member
                                                                      Indonesian Citizen, 49 years. Earned Bachelor’s degree
        Indonesian Citizen, 45 years. Earned Bachelor’s degree        from Tribuana University, majoring
        from Universitas Trisakti majoring Management
        Economy in 2001.                                              Her career was started as Customer Service at Bank Duta
                                                                      Kediri (1996 – 1999) prior joining with the Company
        He started his career as collector and currently serving as   in 1999. He is currently serving as Division Head at
        Deputy Division Head Collection.                              Customer Service Division.

               Ollyvia Yanuar                                               Arie Yulius
               Member                                                       Member
        Indonesian citizen, 39 years. Earned Master’s degree in       Indonesian Citizen, 46 years, lives in Jakarta. Earned
        Psychology from Tarumanegara University in 2010.              Bachelor’s degree majoring Accounting from Universitas
                                                                      Trisakti in 1999.
        She previously worked as People and Culture Manager
        at PT Parolamas Insurance (Insurance Australia Group),        He has joined with the Company for over 10 years
        and currently serves as the Company’s Human Resources         and appointed in several positions, among others
        Management Division Head.                                     National Branch Control Finance Department Head,
                                                                      Risk Management Policy & Corporate Governance Risk
               Lora Oktaviani                                         Department Head, Area Credit Department Head,
               Member                                                 Corporate Planning Department Head, Corporate Planning
                                                                      Deputy Division Head, Corporate Planning Division Head
        Indonesian citizen, 37 years. Earned Master’s degree in       and also as Corporate Secretary. Then, He served as Group
        Law from University of Indonesia in 2008 and Bachelor’s       Head of Credit and Project Management. He currently
        degree in Law from Tarumanagara University in 2006.           serving as Operation Support dan Operation Asset
                                                                      Management Group Head.
        She previously worked as Head of Legal & Corporate
        Secretary at PT Lippo Cikarang Tbk, and currently serving
                                                                            Silvi Mahdalena
        as Legal & Litigation Head in the Company.
                                                                            Member

               Hudi Purnomo                                           Indonesian Citizen, 41 years, Earned Diploma degree
               Member                                                 majoring Informatics Management from Universitas
                                                                      Widya Dharma, Pontianak in 2003.
        Indonesian citizen, 44 years old. Earned Bachelor’s degree
        from Jambi University in Management Economics in 2001.        She   joined   with   the   Company    since   2003   as



258
Page 259
PT BUSSAN AUTO FINANCE




                                                                                                                                               HIGHLIGHTS
                                                                                                                                               PERFORMANCE
Administrative Staff and was appointed as Department                       3. Meetings can be held in person or using
Head at Information Technology Division and currently                         teleconference, video conference, or other electronic
was assigned as General Service Division Head.                                media that allows all Committee members to see and
                                                                              hear each other directly.
                                                                           4. Committee meetings are attended by at least 51%
       Puji Arianti
                                                                              (fifty one percent) of the total members, one of
       Member
                                                                              whom is the Chair of the committee. If such quorum




                                                                                                                                               REPORT
                                                                                                                                               MANAGEMENT
Her complete profile is presented in Corporate Secretary                      fails to achieve, the meeting must be rescheduled at
Profile in this Annual Report.                                                the nearest time.
                                                                           5. Meeting decisions are made based on deliberation
                                                                              and consensus. In the event that consensus fails to
      Term of Office of the Business                                          achieve, the decisions will be taken by voting.
      Continuity Management Committee                                      6. Each committee member has one vote. If a conflict
                                                                              of interest occurs, committee members must refrain
The term of office of Business Continuity Management                          from voting to avoid a conflict of interest. In the case
committee members is 1 (one) year from the date the                           of equal voting, the Chairperson of the Meeting has
committee is appointed by the Board of Directors,                             the right to hold a second voting right.
without prejudice to the Board of Directors’ right to                      7. Dissenting opinions that occur at the meeting must
perform incidental dismissal.                                                 be stated clearly in the minutes of the meeting along




                                                                                                                                               PROFILE
                                                                                                                                               CORPORATE
                                                                              with the reasons for the difference of opinion.
                                                                           8. The results of each meeting are documented in
      Training of the Business Continuity                                     the form of meeting minutes and distributed to all
      Management Committee                                                    members at least via email.

According to Business Continuity Management
Committee Charter, the meeting implementation policy                             Business Continuity Management
is as follows:                                                                   Committee Meeting frequency and
1. Committee meetings are held at least 1 (once) in 3                            attendance
    (three) months.
2. Meetings can be held based on needs if deemed                           In 2023, business continuity management committee




                                                                                                                                               DISCUSSION & ANALYSIS
                                                                                                                                               MANAGEMENT
    necessary to deal with the situation.                                  held 7 (seven) meetings. Attendance level of the members
                                                                           serving in 2023 is as follows:



            NAME                               POSITION                       MEETING                 ATTENDING      ATTENDANCE*

 Charles Gultom                      Chairperson                                    7                     7               100%

 A Lung Ng*                          Member                                         7                     5                 71%

 Denny Kurniawan                     Member                                         7                     7               100%

 Dwi Adi Riyanto*                    Member                                         7                     5                 71%

 Ollyvia Yanuar*                     Member                                         7                     5                 71%

 Lora Oktaviani*                     Member                                         7                     6                 86%
                                                                                                                                               GOVERNANCE
                                                                                                                                               CORPORATE




 Hudi Purnomo                        Member                                         7                     7               100%

 Ardi Priatna*                       Member                                         7                     6                 86%

 Johannes Ricky*                     Member                                         7                     4                 57%

 Tri Nardiyati*                      Member                                         7                     6                 86%

 Arie Yulius*                        Member                                         7                     6                 86%

 Silvi Mahdalena                     Member                                         7                     7               100%

 Puji Arianti                        Member                                         7                     7               100%
                                                                                                                                               REPORT
                                                                                                                                               SUSTAINABILITY




*) There is a permit for absence from the meeting. This has been conveyed to the committee members.




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                               259
Page 260
  CORPORATE
  GOVERNANCE




                                                                 2023, 17 May 2023, 14 June 2023, 24 July 2023, 26
               Business Continuity Management                    September 2023 and 30 October 2023.
               Committee Members Training
                                                                 Some of the agendas discussed by the committee
        In 2023, Business Continuity Management Committee        including rejuvenation of generators in network offices,
        conducted Strategizing Digital Transformation training   coordinating security at each network office if there is
        “Buiding Tomorrow’s Success” on August 18, 2023. The     an emergency at any time.
        training aimed at setting digital transformation theme
        for 5 years.                                             The committee has also discussed plans and strategies
                                                                 as well as evaluation of Call Tree Drill which has been
        In addition, in 2023, the Business Continuity            implemented at the head office and Disaster Recovery
        Management Committee will organize call tree training    (DR Drill) which has been implemented in 11 network
        for all employees at the head office. This training      offices. Call Tree Drill is a series of processes in times
        was carried out in 2 stages, including socialization     of emergency that connect people or units with one
        and training which was divided into 4 (four batches)     level below and more. This series becomes very useful
        thereby can be carried out smoothly. The 4 batches       for transmitting chain messages, especially during
        were carried out on 5 August 2023, 12 August 2023, 4     emergencies, while DR Drill is a system simulation that
        November 2023 and 11 November 2023. This activity        is carried out during the event of disaster, as well as
        was attended by 936 employees at the head office.        ensuring that the scenarios that have been created run
                                                                 effectively and efficiently when a real disaster occurs.
                                                                 DR Drill aims to ensure that information technology
               Committee Work Implementation                     systems related to operational processes can continue to
               Report in 2023                                    run well in disaster situations. In 2023, the socialization
                                                                 was carried out on November 3, 2023 and November
        In 2023, Business Continuity Management Committee        10, 2023.
        held 7 (seven) meetings on 23 January 2023, 16 March




260
Page 261
PT BUSSAN AUTO FINANCE




                                                                                                                           HIGHLIGHTS
                                                                                                                           PERFORMANCE
        OCCUPATIONAL HEALTH AND
        SAFETY COMMITTEE




                                                                                                                           REPORT
                                                                                                                           MANAGEMENT
                                                           3. Support the Management to evaluate, develop and
     Legal Basis Establishment                                implement, monitor, and recommend improvement/
                                                              corrective action and administrative action related
The Company has an Occupational Health and Safety             to occupational health and safety; and
Committee. This committee was established based on         4. Supporting the Management to formulate
Approval Memo No. 013/AM-CP/IV/2016 on April 26,              management policy and guideline to improve
2016. The committee was created to fulfill provisions of      occupational safety, working place hygiene,
Law Number 1 of 1970 concerning Occupational Safety           occupational health, ergonomics, and employee
and Regulation of the Minister of Manpower Republic           nutrients.
of Indonesia Number PER.04/MEN/1987 concerning
Occupational Health and Safety Development
Committee as well as appointment procedure for                  Occupational Health and Safety




                                                                                                                           PROFILE
                                                                                                                           CORPORATE
Occupational Safety Expert Workers. Establishment               Committee Membership
of this Committee is expected to build mutual
understanding, cooperation and effective participation     As disclosed in the Charter, composition and membership
in implementing occupational health and safety in the      of the Occupational Health and Safety Responsibility
Company’s work environment.                                Committee is as follows:
                                                           The committee organization consists of:
                                                           1. Chairperson of Occupational, Health and Safety
     Work Guidelines                                           Committee is appointed from the Director and/or
                                                               Associate Directors in charge of human resources.
In carrying out the duties, Occupational Health and        2. Secretary to Occupational, Health and Safety
Safety Committee has been equipped with work                   Committee is appointed by the Company to be




                                                                                                                           DISCUSSION & ANALYSIS
                                                                                                                           MANAGEMENT
guidelines as stated in the Occupational Health and            trained and certified as an Occupational, Health
Safety Committee Charter, which has been prepared              and Safety Committee Expert in accordance with
referring to prevailing laws and regulations. These            prevailing laws and regulations.
guidelines contain, among other, provisions regarding      3. Other members are appointed from Company
committee structure, duties, responsibilities and              employees who carry out human resources functions
authority, meeting implementation, reporting and               and other functions related to Occupational Health
responsibilities and committee values and ethics.              and Safety that are deemed necessary by the
                                                               committee and the Board of Directors.

     Duty, Responsibility and Authority                    In 2023, there was no changes in the Occupational
     of Occupational Health and Safety                     Health and Safety Committee members as of December
     Committee                                             31, 2023, composition of the committee members is
                                                           disclosed in the Board of Directors’ Approval Memo
Duty and responsibility of Occupational Health and         No. 005/AM-CP/11/2022 concerning Approval for New
Safety Committee are including:                            Organization Structure Effective in Jan 2 2023 dated
1. Occupational health and safety data collection and      November 30, 2022. Therefore, composition of the
   process;                                                Corporate Social Responsibility Committee effective as
                                                                                                                           GOVERNANCE
                                                                                                                           CORPORATE




2. Support to demonstrate and explain to employees         of January 2, 2023 is as follows:
   regarding risk and/or dangerous factors which may
   affect working efficiency and productivity, use of
   occupational safety equipment/device, correct and
   safety working method in terms of occupational
   health and safety;
                                                                                                                           REPORT
                                                                                                                           SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                           261
Page 262
  CORPORATE
  GOVERNANCE




                             POSITION                       APPOINTMENT/                               POSITION IN
               NAME           IN THE                     RESTATEMENT LETTER                           THE COMPANY
                            COMMITTEE

         Jimmy             Chairperson   Board of Directors Approval Memo No. 005/AM-                 Associate
         Iskandar                        CP/11/2022 concerning Approval for New Organization          Director
                                         Structure Effective in Jan 2, 2023, dated November 3, 2022

         Irvan Praka       Member        Board of Directors Approval Memo No. 005/AM-                 Learning BP
                                         CP/11/2022 concerning Approval for New Organization          Leadership
                                         Structure Effective in Jan 2, 2023, dated November 3, 2022   Special Project
                                                                                                      Head

         Yudi Maulana      Member        Board of Directors Approval Memo No. 005/AM-                 Business &
                                         CP/11/2022 concerning Approval for New Organization          Operation
                                         Structure Effective in Jan 2, 2023, dated November 3, 2022   Support
                                                                                                      Motorcycle
                                                                                                      Head

         I Made Rajiv      Member        Board of Directors Approval Memo No. 005/AM-                 Head of
         Permadi                         CP/11/2022 concerning Approval for New Organization          Regional Center
                                         Structure Effective in Jan 2, 2023, dated November 3, 2022   Bandung

         Giovani           Member        Board of Directors Approval Memo No. 005/AM-                 Compliance
         Wihelmina                       CP/11/2022 concerning Approval for New Organization          Head
                                         Structure Effective in Jan 2, 2023, dated November 3, 2022

         Th. Indah         Member        Board of Directors Approval Memo No. 005/AM-                 National
         Prasetyaningsih                 CP/11/2022 concerning Approval for New Organization          Marketing
                                         Structure Effective in Jan 2, 2023, dated November 3, 2022   Agency
                                                                                                      Partnership
                                                                                                      Head

         Sandi Jua         Member        Board of Directors Approval Memo No. 005/AM-                 Facilities Head
         Santika                         CP/11/2022 concerning Approval for New Organization
                                         Structure Effective in Jan 2, 2023, dated November 3, 2022

         Stefany           Member        Board of Directors Approval Memo No. 005/AM-                 Pradana
         Lowendo                         CP/11/2022 concerning Approval for New Organization          Multiproduct
                                         Structure Effective in Jan 2, 2023, dated November 3, 2022   Program &
                                                                                                      Merchant Head.

         Andhika           Member        Board of Directors Approval Memo No. 005/AM-                 Project &
         Adikusuma                       CP/11/2022 concerning Approval for New Organization          Building
                                         Structure Effective in Jan 2, 2023, dated November 3, 2022   Management
                                                                                                      Manager 2

         Donna             Member        Board of Directors Approval Memo No. 005/AM-                 HR Services
         Panggabean                      CP/11/2022 concerning Approval for New Organization          Manager
                                         Structure Effective in Jan 2, 2023, dated November 3, 2022

         Minetta           Member        Board of Directors Approval Memo No. 005/AM-                 HR Business
         Roselani                        CP/11/2022 concerning Approval for New Organization          Partner
                                         Structure Effective in Jan 2, 2023, dated November 3, 2022   Manager

         Lidya Christie    Member        Board of Directors Approval Memo No. 005/AM-                 Staructured
                                         CP/11/2022 concerning Approval for New Organization          Finance Head
                                         Structure Effective in Jan 2, 2023, dated November 3, 2022

         Dwi Adi           Member        Board of Directors Approval Memo No. 005/AM-                 Head of Field
                                         CP/11/2022 concerning Approval for New Organization          Collection 1
                                         Structure Effective in Jan 2, 2023, dated November 3, 2022   Area 5

         Rachmat           Member        Board of Directors Approval Memo No. 005/AM-                 Head of
         Basuki                          CP/11/2022 concerning Approval for New Organization          Learning &
                                         Structure Effective in Jan 2, 2023, dated November 3, 2022   Development




262
Page 263
PT BUSSAN AUTO FINANCE




                                                                                                                               HIGHLIGHTS
                                                                                                                               PERFORMANCE
                      POSITION                            APPOINTMENT/                                POSITION IN
    NAME               IN THE                          RESTATEMENT LETTER                            THE COMPANY
                     COMMITTEE

 Yudhi             Member              Board of Directors Approval Memo No. 005/AM-                 Asset & Budget
 Gunawan                               CP/11/2022 concerning Approval for New Organization          Management
                                       Structure Effective in Jan 2, 2023, dated November 3, 2022   Head




                                                                                                                               REPORT
                                                                                                                               MANAGEMENT
 Muh.              Member              Board of Directors Approval Memo No. 005/AM-                 HR Industrial
 Hasiruddin                            CP/11/2022 concerning Approval for New Organization          Relations Head
 Abd Wahid                             Structure Effective in Jan 2, 2023, dated November 3, 2022

 Silvi             Member              Board of Directors Approval Memo No. 005/AM-                 Head of
 Mahdalena                             CP/11/2022 concerning Approval for New Organization          General Affairs
                                       Structure Effective in Jan 2, 2023, dated November 3, 2022




                                                                 I Made Rajiv Permadi




                                                                                                                               PROFILE
                                                                                                                               CORPORATE
     Profile of the Health and Safety
     Committee                                                   Member
                                                           Indonesian citizen, 37 years old. Earned Bachelor’s
     Jimmy Iskandar                                        degree at Bogor Agricultural Institute majoring in
     Chairperson                                           Economics, Development Studies from 2005 to 2009.

His complete profile is presented in Executive officers    Started his career in Financing industry since 2010 as
profile this Annual Report.                                a Management Trainee (MT) at FIFGROUP (Member
                                                           of ASTRA) as one of the best graduates in the 2010
     Irvan Praka                                           MT class. He worked at FIFGROUP until July 2019 as a
     Member                                                Branch Manager (Management Level)




                                                                                                                               DISCUSSION & ANALYSIS
                                                                                                                               MANAGEMENT
Indonesian citizen, 39 years old. Earned Bachelor’s        In August 2019, he was given the opportunity to join
degree (S1) from STAI Al-Azhary in 2006.                   PT Bussan Auto Finance as Area Marketing Manager of
                                                           Dana Syariah Business in the Solo-Mandiri Area. As end
He has worked at the Company for 14 years and              of 2021, he was given the trust to manage Dana Syariah
appointed in several positions starting from CMO, Chief    Business in the Jakarta Area and currently he is serving as
CMO, Operation Branch Support, National Trainer,           Head of Regional Center Bandung in the Company.
Deputy Department Head L&D, Department Head L&D
Services and currently serving as Learning BP Leadership
& Special Projects Head.                                         Giovani Wihelmina
                                                                 Member

     Yudi Gunawan                                          Indonesian citizen, 35 years old. Earned Bachelor’s
     Member                                                degree of Laws from Universitas Kristen Indonesia,
                                                           Jakarta in 2010.
Indonesian citizen, 44 years old. Earned D3 degree
in Electrical Engineering from the Bandung Institute       She started his career at the Company in 2019 as
of Technology Polytechnic in 2001, and a Bachelor’s
                                                                                                                               GOVERNANCE
                                                                                                                               CORPORATE



                                                           Compliance Head/Head of the Compliance Work Unit
degree from the Yasmi Cirebon College of Economics in      until now with duty to implement compliance culture
Management Economics in 2012.                              and ensure implementation of laws and regulations in
                                                           the Company.
He joined the Company on May 20, 2002 and
has worked for 21 years and appointed in several
positions, such as as Finance Head Cirebon Branch,               Th. Indah Prasetyaningsih
Branch Controller Bogor Branch, Assistant Manager                Member
Branch Control Finance, Assistant Manager Operation        Indonesian citizen, 38 years old. He graduated from
Development, Assistant Manager Operation & Collection      Master’s degree of Notary from Jayabaya University.
Area, Assistant Manager General Affairs, National
Manager General Affairs, Office Building and Facility      She holds career experience and has worked as Head
Management Department Head, Marketing Operation            of Sales at BFI Finance Kudus Branch (2008 – 2012),
Motorcycle Department Head and currently he is             Strategic Planning & Business Development Motorcycle
serving as Business & Operation Support Motorcycle
                                                                                                                               REPORT
                                                                                                                               SUSTAINABILITY




                                                           – Head at PT BFI Finance Tbk (2012 – 2016), Business
Head in the Company.                                       Network & Initiative Development Department Head at
                                                           WOM Finance (2016 – 2022).



2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                               263
Page 264
  CORPORATE
  GOVERNANCE




        She joined BAF in July 2022 as National Marketing
        Agency & Partnership Head.                                        Minetta Roselina
                                                                          Member

               Sandi Jua Santika                                     Indonesian citizen, 37 years old. She graduated from
               Member                                                Unika Atmajaya at Faculty of Psychology from 2004-
                                                                     2010.
        Indonesian citizen, 44 years old. Earned a Bachelor’s
        degree of Architecture at University of Jakarta in 2006.     She holds the experience and has worked as Recruitment,
                                                                     Training, and Career Development at PT Dipa Pharmalab
        Starting his career in the financial industry as General     Intersains (2010-2013), Recruitment and People
        Affairs at PT Adira Quantum Multifinance in 2008 - 2010,     Development Specialist at PT Asuransi Jiwa Sequis
                                                                     Financial (2013-2014), Human Resource Project at PT
        She was later worked as Plan Project & Security Dept         Kompas Cyber Media ( 2014), Human Resource Business
        Head at PT Cimb Niaga Auto Finance in 2010 – 2012,           Partner at PT Equity Life Indonesia (2015-2018). She
        land & Building PT Adi Sarana Armada (Adira Rent,            joined the Company in December 2018 as Human
        ASSA) 2013-2015, General Affairs Deputy Dept head at         Resources Business Partner Manager.
        PT Panin Daiichi Life 2015 – 2018, Manager corporate
        Real Estate & Workplace Service at PT ZURICH Insurance
        Indonesia 2018 – 2021, and currently serving as Facilities        Lidya Christie
        Head, Company.                                                    Member
                                                                     Indonesian citizen, 35 years old. Earned a Bachelor of
               Stefanny Lowendo                                      Science degree from the University of Indonesia Jakarta
               Member                                                in 2010.

        Indonesian citizen, 32 years old. Earned a Bachelor’s        She holds the experience and has worked as Treasury
        degree in Economics from Petra Christian University          at PT Surya Artha Nusantara Finance, Tbk (2011 -
        Surabaya in 2013.                                            2019), Alumni Relations “Koperasi Siswa Bangsa” at
                                                                     Putera Sampoerna Foundation (2010-2011). She joined
        She started his career through Management Trainee            the Company in June 2019 as Structured Finance
        program at PT Toyota Astra Financial Services in 2013        Department Head.
        - 2014 and was appointed as Area Credit Head at PT
        Toyota Astra Financial Services until 2019. She was Head
        of Digital Operations at PT Adira Dinamika Multi Finance,         Dwi Adi
        Tbk from 2019 until 2022 before finally joining the               Member
        Company in September 2022 as Multiproduct Program            His complete profile is presented in Business Continuity
        & Merchant Head.                                             Management Committee.

               Andhika Adikusuma                                          Rachmat Basuki
               Member                                                     Member
        Indonesian citizen, 40 years old. Earned a Bachelor’s        His complete profile is presented in Corporate social
        degree in Architectural Engineering from National            responsibility committee.
        Institute of Technology (ITENAS) – Bandung in 2007.

        She worked as a Junior Architect at PT Citra Esa Buana            Yudhi Maulana
        (2007-2009), Senior Architect & Engineering at PT                 Member
        Handal Selaras Creations – Handal Selaras Group              Indonesian citizen, 48 years old. Earned a Bachelor’s
        (2009-2016). She has also worked at the Company for          degree in Accounting from Pancasila University, Jakarta
        approximately 7 years and currently serving as Project &     in 1999.
        Building Management Manager 2 in the Company.
                                                                     He started his career at the Company in 2000 as
               Donna Panggabean                                      Accounting Staff, Marketing & Admin Supervisor and
               Member                                                served as Accounting Manager from 2009 to 2013,
                                                                     served as Corporate Planning Manager from 2013 to
        Indonesian citizen, 47 years old. Earned Bachelor’s          2015, served as GA Manager from 2015 to 2020 and
        degree in Management Economics from the Indonesian           currently he is appointed as Business & Operation
        Methodist University in Medan in 2000.                       Support Motorcycle Head.

        She previously worked as Finance Advisor at PT. Sentra
        Arta Mas. Financial Consultant PT. AXA Mandiri Life. She          Muh. Hasiruddin Abd Wahid
        has served the Company for 23 years and has held several          Member
        positions with his last position as HRM Services Manager.    Indonesian citizen, 40 years old. Earned a Bachelor of
                                                                     Laws degree at Hasanuddin University Makassar in 2009.



264
Page 265
PT BUSSAN AUTO FINANCE




                                                                                                                                 HIGHLIGHTS
                                                                                                                                 PERFORMANCE
Starting his career as a legal officer at PT Nusantara           Committees may propose to hold additional meetings
Surya Sakti (Nusantara Sakti Group) in 2010-2013,                if deemed necessary.
and continued his career as HR Industrial Relations at      2.   Meetings can be held in person or using
PT Radana Bhaskara Finance, Tbk in 2013-2014, HR                 teleconference, video conference, or other electronic
Industrial & Employee Relations at PT Pertamina Retail           media that allows all Committee members to see and
in 2014- 2016, HR Industrial Relations PT Bumi Serpong           hear each other directly.
Damai, Tbk (Sinarmas Land) 2016-2021 and currently          3.   Meetings can only be held if attended by at least 51%




                                                                                                                                 REPORT
                                                                                                                                 MANAGEMENT
serving as HR Industrial Relations Head in the Company           (fifty one percent) of the total members, including the
from July 2021 until now.                                        Chairperson and representatives from each function.
                                                                 If such condition fails to be established, the meeting
                                                                 shall be rescheduled in the near schedule.
      Silvi Mahdalena
                                                            4.   Meeting decisions are made based on deliberation
      Member
                                                                 and consensus. In the event that consensus fails to
Her complete profile is presented in Business Continuity         be achieved, the decisions will be taken by voting.
Management Committee                                        5.   Each Committee’s member is entitled to one voting
                                                                 right. If a conflict of interest occurs, Committee
                                                                 members must refrain from voting to avoid a
     Term of Office of the Occupational                          conflict of interest. In the case of equal voting, the
     Health and Safety Committee                                 Chairperson of the Meeting has the right to hold a




                                                                                                                                 PROFILE
                                                                                                                                 CORPORATE
                                                                 second voting right.
Member of the occupational health and safety                6.   Results of the meeting shall be stated in the minutes
committee are appointed by the Board of Director for a           of the meeting and signed by all members present at
term of 1 (one) year from the date of appointment and            the meeting and properly documented.
not reducing the Board of Directors’ rights to perform      7.   Dissenting opinions that occur at the meeting shall
incidental dismissal.                                            be stated clearly in the minutes of the meeting
                                                                 altogether with the reasons.

     Occupational Health and Safety
     Committee Meeting Policy and                                 The Occupational Health and Safety
     Implementation                                               Committee




                                                                                                                                 DISCUSSION & ANALYSIS
                                                                                                                                 MANAGEMENT
According to Occupational Health and Safety Committee       In 2023, Occupational Health and Safety committee held
Charter, the meeting implementation policy is as follows:   5 (five) meetings. Level of attendance of the members
                                                            serving in 2023 is as follows:

1. Committee meetings are held at least 3 (three)
   times in 1 (one) year. The Board of Directors and


         NAME                         POSITION                   MEETING           ATTENDING           ATTENDANCE

 Jimmy Iskandar               Chairperson                           5                    5                  100%

 Irvan Praka                  Member                                5                    4                    80%

 Yudi Maulana*                Member                                5                    1                    20%
                                                                                                                                 GOVERNANCE
                                                                                                                                 CORPORATE



 I Made Rajiv Permadi*        Member                                5                    1                    20%

 Giovani Wihelmina**          Member                                5                    2                    40%

 Th. Indah Prasetyaningsih    Member                                5                    3                    60%

 Sandi Jua Santika            Member                                5                    5                  100%

 Stefany Lowendo              Member                                5                    4                    80%

 Andhika Adikusuma            Member                                5                    4                    80%

 Donna Panggabean             Member                                5                    3                    60%

 Minetta Roselani             Member                                5                    4                    80%
                                                                                                                                 REPORT
                                                                                                                                 SUSTAINABILITY




 Lidya Christie               Member                                5                    5                  100%




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                 265
Page 266
  CORPORATE
  GOVERNANCE




                        NAME                             POSITION                        MEETING                ATTENDING                ATTENDANCE

             Dwi Adi*                          Member                                         5                        1                        20%

             Rachmat Basuki                    Member                                         5                        4                        80%

             Yudhi Gunawan                     Member                                         5                        4                        80%

             Muh. Hasiruddin                   Member                                         5                        5                      100%
             Abd Wahid

             Silvi Mahdalena                   Member                                         5                        5                      100%

        *)     The absence was due to another assignment. However, implementation of the committee meetings still fulfils the quorum as regulated in
               provisions of the Committee’s Charter.
        **)    The absence was due to maternity leave.




                Occupational Health and Safety                                              Committee Work Implementation
                Committee Training                                                          Report in 2023
        To develop competency and understanding in                                   In 2023, Occupational Health and Safety Committee
        supporting the implementation of their duties and                            held 5 (five) meetings, the first meeting was held on
        responsibilities, in 2023, the Occupational Health and                       January 6, 2023 which discussed the evaluation of
        Safety Committee, especially Health Team, represented                        activities for the 4th quarter of 2022 and planning for
        by the First Aider (FA) and Head Office Ambassador,                          2023. The next meeting focused on 3 main agendas,
        totaling 32 people participated in offline First Aider                       namely occupational safety, safety and healthy driving
        P2K3 training. in the Pakangkung meeting room of                             program. These three agendas are the agenda that
        the BAF Plaza office conducted by vendor on Friday,                          were always be discussed at meetings throughout 2023.
        September 1, 2023. With purpose to provide skills,
        knowledge and being capable to provide first aid in any                      Several activities have been carried out during 2023,
        case of accident at workplace promptly and effectively,                      such as training on the use of BAF Plaza Light Fire
        such as Cardiopulmonary Resuscitation (CPR).                                 Extinguishers (APAR) and network offices, health
                                                                                     webinars which have been held 2 times in 2023, as well as
                                                                                     the selection of Floor Warden & First Aider ambassadors
                                                                                     on each floor in the office center. The committee also
                                                                                     checked evacuation equipment at BAF Plaza & network
                                                                                     offices. This is done to assist the Occupational Health
                                                                                     and Safety Committee during evacuation in the event
                                                                                     of a disaster such as an earthquake or fire.




266
Page 267
PT BUSSAN AUTO FINANCE




                                                                                                                                   HIGHLIGHTS
                                                                                                                                   PERFORMANCE
        INFORMATION TECHNOLOGY (IT)
        STEERING COMMITTEE




                                                                                                                                   REPORT
                                                                                                                                   MANAGEMENT
                                                                3. Determining the priority status of critical IT projects
     Legal Basis Establishment                                      (has/have significant impact on the Company’s
                                                                    operational activities).
Information Technology Steering Committee is                    4. Conformity of the approved Information
established according to Board of Directors and Board of            Technology Project with the Information Technology
Commissioners Approval dated November 22, 2019 and                  Development Plan.
the charter has been updated on March 8, 2022. The              5. Conformity of Information Technology project
Committee is in charge to assist the Board of Directors             implementation with the approved Information
in supervising technology and information risk.                     Technology project plan by monitoring and ensuring
                                                                    IT projects are completed in accordance with the
                                                                    approved scope, budget, and schedule.
     Work Guidelines                                            6. Formulation of IT policies (IT Standard Policy).




                                                                                                                                   PROFILE
                                                                                                                                   CORPORATE
                                                                7. Conformity of Information Technology with the
In carrying out the duties, Risk Management Committee               needs of management information systems and the
has been equipped with work guidelines as stated in                 needs of Company’s business activities.
IT Steering Committee Charter which is prepared with            8. Review and monitor Information Technology-related
reference to prevailing laws and regulations. The Charter           risks and issues and provide regular updates on key
includes, among other things, provisions regarding                  events and Information Technology risk acceptance.
committee structure, authority and responsibility,              9. The effectiveness of reviewing and monitoring
membership requirements, meeting implementation,                    Information Technology-related risk mitigation on
as well as reporting and accountability. The Charter is             Company’s investment in Information Technology
prepared by referring to Financial Services Authority               so that Company’s investment in Information
Regulation (“POJK”) No. 4/POJK.05/2021 of 2021                      Technology can contribute to the achievement of




                                                                                                                                   DISCUSSION & ANALYSIS
                                                                                                                                   MANAGEMENT
concerning the implementation of Risk Management in                 Company’s business objectives.
the Use of Information Technology by Nonbank Financial          10. Monitoring the performance of Information
Services Institutions, Financial Services Authority                 Technology and improving the performance of
Circular Letter (“SEOJK”) No. 22/SEOJK.05/2021                      Information Technology.
concerning the Implementation of Risk Management                11. Resolution of various problems related to
in the Use of Information Technology by Nonbank                     Information Technology that cannot be resolved by
Financial Services Institutions, and the Company’s                  user and IT Divisions in an effective, efficient, and
internal policies. The latest work guideline adjustments            timely manner.
are disclosed in Board of Directors’ Approval Memo              12. Adequate allocation of Information Technology
No. 0009/AM-ITSG/03/2023 concerning Approval for                    resources.
Revision of IT Steering Committee Charter Version 3.0,
dated March 28, 2023.
                                                                     Information Technology Steering
                                                                     Committee Membership
     Information Technology Steering
     Committee Duty, Responsibility and                         As disclosed in the charter, composition and membership
     Authority                                                  of Information Technology Steering Committee are as
                                                                                                                                   GOVERNANCE
                                                                                                                                   CORPORATE




                                                                follows:
As disclosed in the charter, Information Technology             1. President Director as Chairperson.
Steering Committee is responsible to review and provide         2. A Director supervising Information Technology Unit
recommendations to the Board of Directors regarding:                as Vice Chairperson.
1. Information Technology alignment with overall                3. Executive Officers as members, such as:
    direction, planning and long term capital investment            a. Director supervising Corporate Planning &
    decisions.                                                          Secretary Unit.
2. Appropriate             Information          Technology          b. Director supervising Finance & Accounting Unit.
    Strategic     Plan     with    the    strategic    plan         c. Director supervising Risk Management &
    of      the     Company’s        business     activities.           Compliance Unit.
    The Information Technology Strategic Plan refers to             d. Director supervising Business units.
    implementation plan comprising of current conditions,           e. Division Head supervising IT Operations.
    the conditions to be achieved, the road map                     f. Division Head supervising IT planning and
                                                                                                                                   REPORT
                                                                                                                                   SUSTAINABILITY




    will be carried out to achieve the expected conditions              development.
    to achieve, as well as the profits or benefits that will        g. Division Head supervising business development
    be achieved when the roadmap is implemented.                        and technology solution.



2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                   267
Page 268
  CORPORATE
  GOVERNANCE




        4. A Department Head supervising IT Security, Risk     ITSG/03/2023 concerning Approval for Revision of IT
           and Governance as Secretary to Committee.           Steering Committee Charter Version 3.0, dated March
                                                               28, 2023 and effectively applied as per April 4, 2023.
        The latest composition and membership of Information   Therefore, as of December 31, 2023, composition of
        Technology Steering Committee is disclosed in the      the Information Technology Steering Committee is as
        Board of Directors’ Approval Memo No. 0009/AM-         follows:



                           POSITION IN                        APPOINTMENT/                            POSITION IN
               NAME
                          THE COMMITTEE                    RESTATEMENT LETTER                        THE COMPANY

         Lynn Ramli       Chairperson       Board of Directors Approval Memo No 0009/AM-             President
                                            ITSG/03/2023 concerning Approval for Revision of IT      Director
                                            Steering Committee Charter Version 3.0 Effectively
                                            Applied as per April 4, 2023 dated March 28, 2023.

         Koji Kato        Member            Board of Directors Approval Memo No 0009/AM-             Vice President
                                            ITSG/03/2023 concerning Approval for Revision of IT      Director
                                            Steering Committee Charter Version 3.0 Effectively
                                            Applied as per April 4, 2023 dated March 28, 2023.

         Akira Sugai      Member            Board of Directors Approval Memo No 0009/AM-             Vice President
                                            ITSG/03/2023 concerning Approval for Revision of IT      Director
                                            Steering Committee Charter Version 3.0 Effectively
                                            Applied as per April 4, 2023 dated March 28, 2023.

         Sigit Sembodo    Member            Board of Directors Approval Memo No 0009/AM-             Director
                                            ITSG/03/2023 concerning Approval for Revision of IT
                                            Steering Committee Charter Version 3.0 Effectively
                                            Applied as per April 4, 2023 dated March 28, 2023.

         A Lung Ng        Member            Board of Directors Approval Memo No 0009/AM-             Director
                                            ITSG/03/2023 concerning Approval for Revision of IT
                                            Steering Committee Charter Version 3.0 Effectively
                                            Applied as per April 4, 2023 dated March 28, 2023.

         Yudono           Member            Board of Directors Approval Memo No 0009/AM-             Director
                                            ITSG/03/2023 concerning Approval for Revision of IT
                                            Steering Committee Charter Version 3.0 Effectively
                                            Applied as per April 4, 2023 dated March 28, 2023.

         Denny            Member            Board of Directors Approval Memo No 0009/AM-             Head of
         Kurniawan                          ITSG/03/2023 concerning Approval for Revision of IT      Information
                                            Steering Committee Charter Version 3.0 Effectively       Technology
                                            Applied as per April 4, 2023 dated March 28, 2023.       Operation
                                                                                                     Division

         Shirly Anjar     Member            Board of Directors Approval Memo No 0009/AM-             Head of
         Artha                              ITSG/03/2023 concerning Approval for Revision of IT      Information
                                            Steering Committee Charter Version 3.0 Effectively       Technology
                                            Applied as per April 4, 2023 dated March 28, 2023.       Strategic
                                                                                                     Planning and
                                                                                                     Innovation

         Enrico           Member            Board of Directors Approval Memo No 0009/AM-             Head of
                                            ITSG/03/2023 concerning Approval for Revision of IT      Information
                                            Steering Committee Charter Version 3.0 Effectively       Technology
                                            Applied as per April 4, 2023 dated March 28, 2023.       Business
                                                                                                     Technology
                                                                                                     Solution

         Asrul Fadillah   Member            Board of Directors Approval Memo No 0009/AM-             IT Security Risk
                                            ITSG/03/2023 concerning Approval for Revision of IT      Governance
                                            Steering Committee Charter Version 3.0 Effectively       Head
                                            Applied as per April 4, 2023 dated March 28, 2023.




268
Page 269
PT BUSSAN AUTO FINANCE




                                                                                                                              HIGHLIGHTS
                                                                                                                              PERFORMANCE
     Profile of the Information Technology                        Enrico
     Steering Committee                                           Member
                                                            Indonesian citizen, 40 years old. Earned Bachelor’s
      Lynn Ramli                                            degree from Universitas Indonesia majoring Computer
      Chairperson                                           Science in 2006.




                                                                                                                              REPORT
                                                                                                                              MANAGEMENT
Her complete profile is presented in Board of Directors     He has experience and worked as a Developer at PT
profile in this Annual Report.                              Asuransi Astra (2006 – 2008), IT Business Analyst at
                                                            PT Bank Tabungan Pensiunan Nasional (2008 – 2016),
      Koji Kato                                             IT Production Support Head at PT Bank Tabungan
      Member                                                Pensiunan Nasional Syariah (2016 – 2018), and as
                                                            Product Owner & Scrum Master at PT Bank Tabungan
His complete profile is presented in Board of Directors     Pensiunan Nasional Syariah (2018 – 2020).
profile in this Annual Report.
                                                            He joined the Company in May 2020 as IT Digital
      Sigit Sembodo                                         Product Owner Department Head in the IT Planning &
      Member                                                Development division and currently serving as Head of
                                                            IT Business Technology Solution.




                                                                                                                              PROFILE
                                                                                                                              CORPORATE
His complete profile is presented in Board of Directors
profile in this Annual Report.
                                                                  Asrul Fadillah
                                                                  Secretary Committee
      A Lung Ng
      Member                                                Indonesian Citizen, 33 years. Earned Bachelor of
                                                            Computer Science from Universitas Hasanuddin in
His complete profile is presented in Board of Directors     2014.
profile in this Annual Report.
                                                            Previously, he worked as programmer (2014-2015),
      Yudono                                                worked at PT Veda Praxis as a Consultant (2015-2019),
      Member                                                Consultant Manager (2019 – 2021) and he passed




                                                                                                                              DISCUSSION & ANALYSIS
                                                                                                                              MANAGEMENT
                                                            the CISM (Certified Information Security Manager)
His complete profile is presented in Board of Directors     certification exam in 2022. He is currently serving as IT
profile in this Annual Report.                              Security Risk Governance Department Head.

      Denny Kurniawan
      Member                                                     Term of Office of Information
                                                                 Technology Steering Committee
Indonesian Citizen, 40 years. Earned Bachelor of
Computer Science Degree from Universitas Bina               Term of office of the Company’s Information Technology
Nusantara in 2005.                                          Steering Committee members is 1 (one) year from the
                                                            date the committee members are appointed by the
Previously, he worked as IT Senior Manager at PT Mitra      Board of Directors, without prejudice to the Board of
Adiperkasa Tbk. He also has worked in the Company for       Directors’ right to perform incidental dismissal.
1 year and currently working as Head of IT Operation
Division.
                                                                 Information    Technology   Steering
                                                                 Committee Policy and Implementation
                                                                                                                              GOVERNANCE
                                                                                                                              CORPORATE



      Shirly Anjar Artha
      Member
                                                            According to Information Technology Steering
Indonesian Citizen, 44 years. Earned Master Degree of       Committee Charter, the meeting implementation policy
Computer Science from Universitas Budi Luhur in 2010.       is as follows:
                                                            1. Committee meetings are formally organized at least
Previously, she worked at PT Great Eastern Life Indonesia       4 (four) times a year. Meetings can be held in more
as IT Business Analyst Manager (2004 -2011), Head of            than stipulated terms, based on urgent interests or
IT Project Management (2011-May 2016), Head of IT               needs (urgency) to discuss certain problems.
Project Management and IT Management Office (May            2. Committee meetings can be held either physically
2016 – March 2018). She is currently serving as Head of         (physical meeting) or virtually.
IT Planning and Development Division.                       3. Committee meetings are chaired by the Committee
                                                                                                                              REPORT
                                                                                                                              SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                              269
Page 270
  CORPORATE
  GOVERNANCE




           Chairperson. In the event that the Committee                             7. Meeting decisions shall be stated in the form of
           Chairperson is unable to attend, the meeting will be                        meeting minutes and signed by all Committee
           chaired by the Committee Vice Chairperson.                                  members and properly documented.
        4. Committee meetings are valid and have the right to                       8. Any dissenting opinion arising in the meeting must
           make binding decisions if they are attended by at                           be stated clearly in the minutes of the meeting
           least 51% (fifty one percent) of the total members                          altogether with the reasons.
           who have voting rights, one of whom is the
           Chairperson of the Committee or Vice Chairperson
           or the Director supervising Corporate Planning                                  Information Technology  Steering
           & Secretary work unit or Director in charge of the                              Committe meeting frequency and
           Finance & Accounting work unit.                                                 attendance
        5. If necessary, members of Information Technology
           Steering Committee may invite other than members                         In 2023, IT Steering Committee held 5 (five) meeting
           to attend the meeting.                                                   with attendance level, as follows:
        6. Meeting decisions are made based on consensus.
           In the event that consensus deliberation does not
           occur, the decisions will be taken by voting.


                      NAME                               POSITION                       MEETING                   ATTENDING    ATTENDANCE

             Lynn Ramli                        Chairperson                                   5                       5             100%

             Koji Kato                         Member                                        5                       5             100%

             Akira Sugai                       Member                                        5                       5             100%

             Sigit Sembodo                     Member                                        5                       5             100%

             A Lung Ng*                        Member                                        5                       3              60%

             Yudono                            Member                                        5                       5             100%

             Denny Kurniawan                   Member                                        5                       5             100%

             Shirly Anjar Artha                Member                                        5                       5             100%

             Enrico                            Member                                        5                       5             100%

             Asrul Fadillah                    Member                                        5                       5             100%

        *)     There is a permit for absence from the meeting. This has been conveyed to the committee members.




                Information Technology Steering Committee Member Training
        To improve competence and understanding in supporting the implementation of their duties and responsibilities,
        in 2023 member of IT Steering Committee have attended training, seminars or workshop as follows:



                NAME                                    TRAINING                                         ORGANIZER            DATE & PLACE

             All Committee        ISO 27001 – Information Security                               Veda Praxis                  March 9, 2023
             Members              Management System (ISMS) for Senior
                                  Management

             Committee            Certified Information Security Manager®                        Information System Audit     April 20, 2023
             Representatives      (CISM®) Certification                                          and Control Association
                                                                                                 (ISACA)




270
Page 271
PT BUSSAN AUTO FINANCE




                                                                                                                                HIGHLIGHTS
                                                                                                                                PERFORMANCE
    NAME                            TRAINING                                 ORGANIZER                DATE & PLACE

 Committee         Certified Information Systems Auditor®             Information System Audit       April 20, 2023
 Representatives   (CISA®) Certification                              and Control Association
                                                                      (ISACA)

 Committee         ISO/IEC 27001 Information Security                 SGS Indonesia                  11 – 15




                                                                                                                                REPORT
                                                                                                                                MANAGEMENT
 Representatives   Management Systems (ISMS) Lead Auditor                                            September 2023

 Committee         TOGAF 9.2                                          Multimatics                    21 – 25 August,
 Representatives                                                                                     2023

 Committee         Professional Scrum Product Owner                   Scrum.org                      25 – 26 October
 Representatives                                                                                     2023

 Committee         Lean Six Sigma Yellow Belt                         SSCX                           23 & 25 August
 Representatives                                                                                     2023

 Committee         Digital Transformation Workshop                    CIAS. Design Thinker.          August 18,
 Representatives                                                                                     2023




                                                                                                                                PROFILE
                                                                                                                                CORPORATE
                                                            Availability, IT Security Monitoring, IT Projects, Business
    Committee Work Implementation                           Projects, IT Budget Utilization, IT Audit, IT Security,
    Report in 2023                                          Governance, Risk and Compliance Updates, Data Privacy
                                                            Updates and other matters that need to be discussed
In 2023, Information Technology Steering Committee          and examined by Information Technology Steering
held meetings to discuss, among other, IT System            Committee to improve IT services quality.




                                                                                                                                DISCUSSION & ANALYSIS
                                                                                                                                MANAGEMENT
                                                                                                                                GOVERNANCE
                                                                                                                                CORPORATE
                                                                                                                                REPORT
                                                                                                                                SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                271
Page 272
      CORPORATE
      GOVERNANCE




                     DIGITALIZATION
                     COMMITTEE

                                                                        4. Identify success factors for digitalization projects
                   Legal Basis Establishment                               and agree on the expected project results.
                                                                        5. Negotiate with stakeholders to gain consensus when
            The Company established Digitalization Committee               differences of opinion occur, and evaluate success
            on June 19, 2020 with Approval from Board of                   of the project after completion.
            Commissioners. This Committee has important role to         6. Evaluate performance and status of the digitalization
            accelerate digitalization implementation and adoption          project, including providing direction on the goals of
            to support activity and business process that can be run       the digitalization project
            automatically using system to achieve effective and         7. Act as an escalation point for issues beyond the
            efficient work process in order to increase the Company’s      project owner’s control, maintain digitalization
            competitiveness and optimize the Company’s services            project priorities, and act as an escalation point for
            to the society and business partners.                          any issue occurred in any case beyond the project
                                                                           manager’s control.

                   Work Guidelines
                                                                             Digitalization Committee Membership
            In carrying out its duties, the Digitalization Committee
            has been equipped with work guidelines as stated in         As stated in the charter, composition and membership
            the Digitalization Committee Charter, which has been        of the Digitalization committee are as follows:
            prepared referring to applicable laws and regulations.
            These guidelines contain provisions regarding               The committee organization consists of:
            committee structure, duties, responsibilities and           1. Sponsors/Steering Committee comprising of Board
            authority, meetings, reportings and responsibilities and       of Directors
            committee values and ethics.                                2. The committee is led by a Chairperson who is a
                                                                           Director or Associate Director.
                                                                        3. Secretariat consisting of divisions related to
                   Duty, Responsibility and Authority of                   information technology.
                   Digitalization Committee                             4. Other committee members consist of representatives
                                                                           of the information technology function and other
            As stated in the Charter, duties and responsibilities of       functions related to the Company’s operations.
            the Digitalization Committee are as follows:
            1. Provide direction and guidance for project               In 2023, there was no changes to members of the
                implementation, especially related to digitalization    Digitalization Committee as of December 31, 2023,
                efforts in the Company including: business strategy     the composition of the committee members is declared
                and digitalization project initiatives.                 in Board of Directors Approval Memo No. 005/AM-
            2. Identify and fulfill project benefit requirements        CP/11/2022 concerning Approval for New Organization
                and manage realization of digitalization project        Structure effectively applied as per Jan 2, 2023, dated
                benefits.                                               November 3, 2022. Therefore, composition of the
            3. Monitor changes that occur in the digitalization         Digitalization Committee is as follows:
                project environment, including schedules, priorities,
                tasks, etc.



                                POSITION IN                            APPOINTMENT/                              POSITION IN
                   NAME
                               THE COMMITTEE                        RESTATEMENT LETTER                          THE COMPANY

             Yudono             Chairperson         Approval Memo Direksi No. 005/AM-CP/11/2022                 Director
                                                    tentang Approval for New Organization Structure
                                                    Effective in Jan 2, 2023, tertanggal 3 November 2022

             Koji Kato          Member              Approval Memo Direksi No. 005/AM-CP/11/2022                 Vice President
                                                    tentang Approval for New Organization Structure             Director
                                                    Effective in Jan 2, 2023, tertanggal 3 November 2022




272
Page 273
PT BUSSAN AUTO FINANCE




                                                                                                                          HIGHLIGHTS
                                                                                                                          PERFORMANCE
                    POSITION IN                          APPOINTMENT/                             POSITION IN
    NAME
                   THE COMMITTEE                      RESTATEMENT LETTER                         THE COMPANY

 Hendri            Member              Approval Memo Direksi No. 005/AM-CP/11/2022               Associate
 Hermansyah                            tentang Approval for New Organization Structure           Director
                                       Effective in Jan 2, 2023, tertanggal 3 November 2022




                                                                                                                          REPORT
                                                                                                                          MANAGEMENT
 Jan Prana         Member              Approval Memo Direksi No. 005/AM-CP/11/2022               Marketing
                                       tentang Approval for New Organization Structure           Development
                                       Effective in Jan 2, 2023, tertanggal 3 November 2022      Division Head

 Novy              Member              Approval Memo Direksi No. 005/AM-CP/11/2022               Head of Credit
 Indrawan                              tentang Approval for New Organization Structure           Policy
                                       Effective in Jan 2, 2023, tertanggal 3 November 2022

 Rizma Rosellini   Member              Approval Memo Direksi No. 005/AM-CP/11/2022               Digital Business
                                       tentang Approval for New Organization Structure           Development
                                       Effective in Jan 2, 2023, tertanggal 3 November 2022      Head

 Andi Tirta        Member              Approval Memo Direksi No. 005/AM-CP/11/2022               Collection &




                                                                                                                          PROFILE
                                                                                                                          CORPORATE
                                       tentang Approval for New Organization Structure           Operation
                                       Effective in Jan 2, 2023, tertanggal 3 November 2022      Group Head

 Arie Yulius       Member              Approval Memo Direksi No. 005/AM-CP/11/2022               Credit
                                       tentang Approval for New Organization Structure           Operational &
                                       Effective in Jan 2, 2023, tertanggal 3 November 2022      Policy Group
                                                                                                 Head

 Fransiska         Member              Approval Memo Direksi No. 005/AM-CP/11/2022               IT Project
 Amalia                                tentang Approval for New Organization Structure           Portfolio
                                       Effective in Jan 2, 2023, tertanggal 3 November 2022      Management
                                                                                                 Head




                                                                                                                          DISCUSSION & ANALYSIS
                                                                                                                          MANAGEMENT
 Olyvia            Member              Approval Memo Direksi No. 005/AM-CP/11/2022               Business &
 Permata                               tentang Approval for New Organization Structure           Operation
                                       Effective in Jan 2, 2023, tertanggal 3 November 2022      Support Dana
                                                                                                 Syariah Head

 Stefany           Member              Approval Memo Direksi No. 005/AM-CP/11/2022               Pradana
 Lowendo                               tentang Approval for New Organization Structure           Business Head
                                       Effective in Jan 2, 2023, tertanggal 3 November 2022

 Enrico            Member              Approval Memo Direksi No. 005/AM-CP/11/2022               IT Business
                                       tentang Approval for New Organization Structure           Technology
                                       Effective in Jan 2, 2023, tertanggal 3 November 2022      Solution Head
                                                                                                                          GOVERNANCE
                                                                                                                          CORPORATE



     Profile of Digitalization Committee                        Hendri Hermansyah
                                                                Member
     Yudono
     Chairperson                                          His complete profile is presented in Executive officers
                                                          profile this Annual Report.
His complete profile is presented in Board of Directors
profile in this Annual Report.
                                                                Jan Prana
                                                                Member
     Koji Kato
     Member                                               Indonesian Citizen, 43 years. Earned Bachelor’s degree
                                                          majoring Economics and Development Studies from
His complete profile is presented in Board of Directors   Universitas Indonesia in 2002.
profile in this Annual Report.
                                                                                                                          REPORT
                                                                                                                          SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                          273
Page 274
  CORPORATE
  GOVERNANCE




        He has extensive experience and previously worked as
        Marketing Manager at PT Federal International Finance          Arie Yulius
        (2009 – 2011), and as Marketing New Motorcycle                 Member
        Deputy Division Head at PT BCA Multifinance (2017 –       His complete profile is presented at Business Continuity
        2019).                                                    Management Committee profile in this Annual Report.

        He joined with the Company since October 2019 and              Fransiska Amalia
        currently serving as Marketing Development Division            Member
        Head.                                                     Indonesian citizen, 33 years old. Earned Bachelor of
                                                                  Engineering degree from Telkom University Bandung in
               Novy Indrawan                                      2011.
               Member
                                                                  Started her career as an IT Analyst at PT Toyota Astra
        Indonesian citizen, 43 years old. He graduated from       Finance in 2011, then continued her career as an IT
        Bina Nusantara University in 1999-2003.                   Business Analyst and Project Management Analyst at
                                                                  PT Tower Bersama Group from 2014 to 2019. In 2019
        He holds extensive experience and worked as Customer      she also had the opportunity to start a management
        Relations at Bank Niaga (2004-2005), Account Manager      career as a Technical Project Manager Lead at MNC
        Commercial banking at Bank Panin (2005-2007), Credit      Group. She started joining the company in 2021 and
        Officer at HSBC (2007-2011), Area Credit Risk Manager     was appointed as IT Project & Portfolio Management
        at Finansia Multi Finance (2011 -2016). He joined         Head at PT Bussan Auto Finance.
        the Company in May 2016 as Credit New Business
        Department Head
                                                                       Olyvia Permata
                                                                       Member
               Rizma Rosellini
               Member                                             Indonesian citizen, 33 years old. She is a postgraduate
                                                                  graduate of the ASMI Business and Multimedia Institute
        Indonesian citizen, 32 years old. Earned Bachelor’s       from 2021-2022.
        degree in International Relations from Padjadjaran
        University Surabaya in 2013.                              She holds extensive experience and worked in the
                                                                  Business Process section at PT Modena Indonesia (2020-
        Started her career through Management Trainee             2021), Business Process at PT BCA Multi Finance (2017-
        program at PT Bussan Auto Finance in 2014 and             2020), Responsible for Production at PT Inti Kiat Alam
        appointed as Corporate Planning Head from 2020            (2017), Systems and Procedures at PT UFO BKB Syariah
        to 2021 and currently serving as Digital Business         (2015-2017), Primary Packaging at PT Pharos Indonesia
        Development Head.                                         (2015-2012), Production at PT Pharos Indonesia (2011-
                                                                  2012), Quality Control at PT Medifarma Laboratories
               Andi Tirta                                         (2011).
               Member
                                                                  She joined the Company in December 2021 as Marketing
        Indonesian Citizen, 46 years. Earned Bachelor’s degree    Operation & Support Dana Syariah Department Head.
        majoring Industrial Engineering from Institut Teknologi
        Nasional (ITN), Malang in 1999 and Master’s degree in
        Management from Universitas Tarumanegara (UNTAR),              Stefany Lowendo
        Jakarta in 2003 majoring Marketing Management.                 Member
                                                                  Her complete profile is presented in Occupational
        He has extensive experience and was appointed in          Health and Safety Committee.
        several positions, among others at PT. Adira Dinamika
        Multi Finance, Tbk (2003-2012), as Deputy GM, GM
        Risk Management, Credit Division Head at PT. Bussan            Enrico
        Auto Finance (2012-2017) and was assigned Senior               Member
        Management (Credit, Operation dan Collection) at PT.      Her complete profile is presented in IT Steering
        Mandala Multifinance, Tbk and PT. BFI Finance, Tbk        Committee.
        (2017-2020) He rejoined with the Company since March
        2020 and was appointed as Credit Group Head (March
        – Deecember 2020) and currently serving as Collection
        & Operation Group Head (January 2021 - now).




274
Page 275
PT BUSSAN AUTO FINANCE




                                                                                                                                               HIGHLIGHTS
                                                                                                                                               PERFORMANCE
                                                                                secretary and distributed to all members.
         Term of Office of Digitalization                                   6. Meetings can only be held if attended by at least
         Committee                                                              51% (fifty one percent) of the total members.
                                                                            7. Meeting decisions are made based on deliberation
Term of office of mem the company’s Digitalization                              and consensus. In the event that consensus
committee is 1 (one) year from the date the committee                           deliberation does not occur, then decisions are
is appointed by the Board of Directors, without prejudice                       made based on the majority vote (voting).




                                                                                                                                               REPORT
                                                                                                                                               MANAGEMENT
to the Board of Directors’ right to dismiss them at any                     8. Each member of the Committee has one voting
time.                                                                           right. If a conflict of interest occurs, Committee
                                                                                members must refrain from voting to avoid a
                                                                                conflict of interest. In the case of equal voting, the
         Digitalization Committee meeting                                       Chairperson of the Meeting has the right to hold a
         frequency and attendance                                               second voting right.
                                                                            9. The results of the meeting must be stated in the
According to the Digitalization Charter, the meeting                            minutes of the meeting and signed by all members
implementation policy is as follows:                                            present at the meeting and properly documented.
1. Formal committee meetings are held at least once                         10. Dissenting opinions that occur at the meeting must
   every 3 (three) months.                                                      be stated clearly in the minutes of the meeting
2. Meetings can be held based on needs if deemed                                altogether with the reasons.




                                                                                                                                               PROFILE
                                                                                                                                               CORPORATE
   necessary to deal with the situation that occurs.
3. Committee meetings are attended by at least
   the Chair. If this is not met, the meeting must be                             Digitalization Committee Meeting
   rescheduled at the nearest time.                                               Frequency and Attendance Level
4. Meetings is eligible to be held in person or using
   teleconference, video conference, or other electronic                    During 2023, Digitalization Committee held 5 (five)
   media that allows all Committee members to see                           meetings. Attendance level of committee members
   and hear each other directly.                                            serving in 2023 are as follows:
5. Results of each meeting are documented in the form
   of a meeting memorandum, including a committee
   meeting attendance list prepared by the committee




                                                                                                                                               DISCUSSION & ANALYSIS
                                                                                                                                               MANAGEMENT
              NAME                              POSITION                        MEETING                   ATTENDING   ATTENDANCE

     Yudono                            Chairperson                                   5                        5           100%

     Koji Kato*                        Member                                        5                        3             60%

     Hendri Hermansyah*                Member                                        5                        4             80%

     Jan Prana                         Member                                        5                        5           100%

     Novy Indrawan                     Member                                        5                        5           100%

     Rizma Rosellini                   Member                                        5                        5           100%

     Andi Tirta*                       Member                                        5                        4             80%
                                                                                                                                               GOVERNANCE
                                                                                                                                               CORPORATE




     Arie Yulius*                      Member                                        5                        4             80%

     Fransiska Amalia*                 Member                                        5                        2             40%

     Olyvia Permata                    Member                                        5                        5           100%

     Stefany Lowendo                   Member                                        5                        5           100%

     Enrico                            Member                                        5                        5           100%

*)     There is a permit for absence from the meeting that has been submitted to the committee members.
                                                                                                                                               REPORT
                                                                                                                                               SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                               275
Page 276
  CORPORATE
  GOVERNANCE




               Digitalization Committee Training
        To develop competency and understanding in supporting the implementation of their duties and responsibilities, in
        2023 the Digitalization Committee members have attended training, seminars or workshop as follows:



        PARTICIPANT                     TRAINING NAME                               PROVIDER               DATE & PLACE

         Committee’s       Jakarta Mobile Leaders Night                     Clevertap                     June 21, 2023
         Representative

         Committee’s       Learning Basic Confluent Feature                 Confluent                     August 11,
         Representative                                                                                   2023

         Committee’s       Envision & Strategizing Digital Transformation   CIAS                          August 18,
         Representative                                                                                   2023

         Committee’s       Lean Six Sigma Yellow Belt                       SSCX                          23 & 25 August
         Representative                                                                                   2023

         Committee’s       Digital Transformation Forum                     Adins                         September 15,
         Representative                                                                                   2023

         Committee’s       Professional Scrum Product Owner                 Scrum.org                     25 – 26 October
         Representative                                                                                   2023

         Committee’s       CX Digital Transformation                        PEX Consulting                December 8,
         Representative                                                                                   2023




                                                                   committee also continued discussions regarding project
               Committee Work Implementation                       design solutions for e-stamp users in non-digitalization
               Report                                              businesses.

        In 2023, Digitalization Committee held 5 (five)            In 2023, the Company has also developed other
        meetings to discuss accelerating the roadmap/strategic     digitalization, such as collection development and
        plan for Sandia, BAF Mobile for all of the Company’s       plans to implement digitalization of the Dana Syariah
        business lines, and BAF Verse. Apart from that, the        financing product line, and project preparation in 2024.




276
Page 277
PT BUSSAN AUTO FINANCE




                                                                                                                               HIGHLIGHTS
                                                                                                                               PERFORMANCE
        RISK MANAGEMENT
        COMMITTEE




                                                                                                                               REPORT
                                                                                                                               MANAGEMENT
     Legal Basis Establishment                                    Information Technology Steering
                                                                  Committee Duty, Responsibility and
Risk Management Committee is established according to             Authority
Board of Directors and Board of Commissioners Approval
dated November 12, 2020. The Committee is in charge          Risk Management Committee holds authority and
to assist the Board of Directors in Risk Management          responsibility to provide recommendation to President
implementation within the Company. The Company is            Director, among others:
established according to POJK No. 44/POJK.05/2020            1. Formulation of Risk Management policy, strategy
concerning Risk Management Implementation for Non-               and implementation guideline;
Bank Financial Institutions.                                 2. Improvement and adjustment of Risk Management
                                                                 implementation based on result of Risk Management




                                                                                                                               PROFILE
                                                                                                                               CORPORATE
                                                                 implementation evaluation; and
     Work Guidelines                                         3. Stipulation of matters related to any business
                                                                 decision that may deviate from normal procedure.
In carrying out its duties, Risk Management Committee
has been equipped with work guidelines as disclosed
in Risk Management Committee Work Guidelines or                   Information Technology Steering
Charter, which are prepared with reference to applicable          Committee Membership
laws and regulations. The guidelines includes, among
other, provisions regarding structure of the Risk            According to POJK No. 44 /POJK.05/2020 concerning
Management Committee, authority and responsibility,          Implementation of Risk Management for Non-Bank
membership requirements, meeting implementation, as          Financial Services Institutions, the Risk Management




                                                                                                                               DISCUSSION & ANALYSIS
                                                                                                                               MANAGEMENT
well as reporting and accountability. The work guidelines    Committee consists of at least half of the Board of
are prepared by referring to POJK No. 29/POJK.05/2020        Directors members and related executive officers. One of
as Amendments to Financial Services Authority                the Board of Directors members is a member who is in
Regulation Number 30/POJK.05/2014 concerning Good            charge in risk management function. There was no change
Corporate Governance for Finance Companies, and              in composition and membership of Risk Management
POJK No. 44/POJK.05/2020 concerning Implementation           Committee as disclosed in Board of Directors’ Approval
of Risk Management for Non-Bank Financial Services           Memo No. 005/AM-CP/11/2022 concerning Approval
Institutions, and other related regulations. In 2022,        for new organization structure effectively applied as per
following publication of OJK Circular Letter No. 7 of 2021   January 2, 2023 dated November 30, 2022. Therefore,
concerning Implementation of Risk Management for             composition of Risk Management Committee as of
Finance Companies and Sharia Financing Companies,            December 31, 2023 is as follows:
the Committee has updated the Risk Management
Committee policy.



                    POSITION IN                             APPOINTMENT/                              POSITION IN
                                                                                                                               GOVERNANCE
                                                                                                                               CORPORATE



    NAME
                   THE COMMITTEE                         RESTATEMENT LETTER                          THE COMPANY

 Lynn Ramli         Chairperson          Board of Directors Approval Memo No. 055/AM-                President
                                         CP/11/2022 concerning Approval for New Organization         Director
                                         Structure Effective in Jan 2, 2023 dated November 3,
                                         2022

 Koji Kato          Member               Board of Directors Approval Memo No. 055/AM-                Vice President
                                         CP/11/2022 concerning Approval for New Organization         Director
                                         Structure Effective in Jan 2, 2023 dated November 3,
                                         2022

 Akira Sugai        Member               Board of Directors Approval Memo No. 055/AM-                Vice President
                                         CP/11/2022 concerning Approval for New Organization         Director
                                         Structure Effective in Jan 2, 2023 dated November 3,
                                                                                                                               REPORT
                                                                                                                               SUSTAINABILITY




                                         2022




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                               277
Page 278
  CORPORATE
  GOVERNANCE




                              POSITION IN                        APPOINTMENT/                             POSITION IN
               NAME
                             THE COMMITTEE                    RESTATEMENT LETTER                         THE COMPANY

         Sigit Sembodo       Member            Board of Directors Approval Memo No. 055/AM-              Director
                                               CP/11/2022 concerning Approval for New Organization
                                               Structure Effective in Jan 2, 2023 dated November 3,
                                               2022

         A Lung Ng           Member            Board of Directors Approval Memo No. 055/AM-              Director
                                               CP/11/2022 concerning Approval for New Organization
                                               Structure Effective in Jan 2, 2023 dated November 3,
                                               2022

         Charles M.P         Member            Board of Directors Approval Memo No. 055/AM-              Director
         Gultom                                CP/11/2022 concerning Approval for New Organization
                                               Structure Effective in Jan 2, 2023 dated November 3,
                                               2022

         Yudono              Member            Board of Directors Approval Memo No. 055/AM-              Director
                                               CP/11/2022 concerning Approval for New Organization
                                               Structure Effective in Jan 2, 2023 dated November 3,
                                               2022

          Jimmy              Member            Board of Directors Approval Memo No. 055/AM-              Associate
         Iskandar                              CP/11/2022 concerning Approval for New Organization       Director
                                               Structure Effective in Jan 2, 2023 dated November 3,
                                               2022

         Hendri              Member            Board of Directors Approval Memo No. 055/AM-              Associate
         Hermansyah                            CP/11/2022 concerning Approval for New Organization       Director
                                               Structure Effective in Jan 2, 2023 dated November 3,
                                               2022

         Yulius              Member            Board of Directors Approval Memo No. 055/AM-              Head of Risk
         Ariyasatya                            CP/11/2022 concerning Approval for New Organization       Management
                                               Structure Effective in Jan 2, 2023 dated November 3,      and Compliance
                                               2022

         Arie Yulius         Member            Board of Directors Approval Memo No. 055/AM-              Group Head
                                               CP/11/2022 concerning Approval for New Organization       of Credit
                                               Structure Effective in Jan 2, 2023 dated November 3,      and Project
                                               2022                                                      Management

         Puji Arianti        Member            Board of Directors Approval Memo No. 055/AM-              Corporate
                                               CP/11/2022 concerning Approval for New Organization       Planning and
                                               Structure Effective in Jan 2, 2023 dated November 3,      Secretary
                                               2022                                                      Division Head

         Erdyan              Member            Board of Directors Approval Memo No. 055/AM-              Internal Audit
         Lazuardy                              CP/11/2022 concerning Approval for New Organization       Division Head
                                               Structure Effective in Jan 2, 2023 dated November 3,
                                               2022




               Profil Komite Manajemen Risiko

               Lynn Ramli                                              Koji Kato
               Chairperson                                             Member
        Her complete profile is presented in Board of Directors   His complete profile is presented in Board of Directors
        profile in this Annual Report.                            profile in this Annual Report.




278
Page 279
PT BUSSAN AUTO FINANCE




                                                                                                                                 HIGHLIGHTS
                                                                                                                                 PERFORMANCE
      Akira Sugai                                                 Puji Arianti
      Member                                                      Member
His complete profile is presented in Board of Directors     Her complete profile is presented in Corporate Secretary
profile in this Annual Report.                              profile in this Annual Report.

      Sigit Sembodo                                               Erdyan Lazuardy




                                                                                                                                 REPORT
                                                                                                                                 MANAGEMENT
      Member                                                      Member
His complete profile is presented in Board of Directors     His complete profile is presented in Internal Audit Unit
profile in this Annual Report.                              profile in this Annual Report.

      A Lung Ng
      Member                                                     Term of Office of Risk Management
                                                                 Committee
His complete profile is presented in Board of Directors
profile in this Annual Report.                              Term of Office of Risk Management Committee member
                                                            is 1 (one) year since the date of committee stipulation by
      Charles M.P Gultom                                    Board of Directors, by not reducing rights of the Board of




                                                                                                                                 PROFILE
                                                                                                                                 CORPORATE
      Member                                                Directors to grant incidental dismissal.

His complete profile is presented in Board of Directors
profile in this Annual Report.                                   Risk Management Committee Meeting
                                                                 Policy and Implementation
      Yudono
      Member                                                According to Risk Management Committee Charter, the
                                                            Risk Management Committee meeting implementation
His complete profile is presented in Board of Directors     policy is as follows:
profile in this Annual Report.                              1. Committee meeting should be conducted minimum
                                                                4 meetings in a year or before the implementation of




                                                                                                                                 DISCUSSION & ANALYSIS
                                                                                                                                 MANAGEMENT
      Jimmy Iskandar                                            Risk Monitoring Committee meeting
      Member                                                2. The meeting can only be conducted if attended at
                                                                least 51% (fifty one percent) of the total members.
His complete profile is presented in Board of Directors     3. Meeting resolutions are taken based on consensus. If
profile in this Annual Report.                                  consensus is not reached, the decision will be taken
                                                                by voting.
      Hendri Hermansyah                                     4. Every member of the Committee shall have one
      Member                                                    vote. If there is a conflict of interest, the member of
                                                                the Committee shall refrain from the vote to avoid
His complete profile is presented in Executive profile in       conflict of interest. In the case of a tie in votes, the
this Annual Report.                                             Chairperson of the meeting shall be entitled to a
                                                                second casting vote.
      Yulius Ariyasatya                                     5. The meeting resolutions is required to be summarized
      Member                                                    and written into a minute of meeting and signed by
                                                                all members presence at the meeting and should be
His complete profile is presented in Risk Management            well documented.
and Compliance Division profile in this Annual Report.
                                                                                                                                 GOVERNANCE
                                                                                                                                 CORPORATE



                                                            6. Any dissenting opinions in the Meeting are required
                                                                to be stated clearly in the minutes of meeting
      Arie Yulius                                               including the reasons for dissenting opinions.
      Member
His complete profile is presented in Business Continuity         Risk Management Committee Meeting
Management Committee profile in this Annual Report.              Frequency and Attendance Level
                                                            In 2023, Risk Management Committee held four
                                                            meetings with attendance level, as follows :
                                                                                                                                 REPORT
                                                                                                                                 SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                 279
Page 280
  CORPORATE
  GOVERNANCE




                      NAME                              POSITION                        MEETING                   ATTENDING   ATTENDANCE

             Lynn Ramli                        Chairperson                                   4                        4            100%

             Koji Kato                         Member                                        4                        4            100%

             Akira Sugai                       Member                                        4                        4            100%

             Sigit Sembodo                     Member                                        4                        4            100%

             A Lung Ng*                        Member                                        4                        3             75%

             Charles M.P Gultom                Member                                        4                        4            100%

             Jimmy Iskandar                    Member                                        4                        4            100%

             Yudono                            Member                                        4                        4            100%

             Hendri Hermansyah*                Member                                        4                        3             75%

             Yulius Ariyasatya                 Member                                        4                        4            100%

             Arie Yulius*                      Member                                        4                        3             75%

             Puji Arianti                      Member                                        4                        4            100%

             Erdyan Lazuardy                   Member                                        4                        4            100%

        *)     There is a permit for absence from the meeting that has been submitted to the committee members.




                 Risk Management Committee Member Training and Development
        Training and development for committee members or representatives in 2023 are as follows:



         PARTICIPANT                              TRAINING NAME                                           PROVIDER            DATE & PLACE

             Committee             Sustainability month 2023, Education                          Perseroan                    August 21,
             Representative        Integration into Business                                                                  2023

             Committee             Sustainability month 2023, Green Values for                   Perseroan                    September 4,
             Representative        Better Environment                                                                         2023

             Committee             Sustainability month 2023, Stepping-up on                     Perseroan                    October 23,
             Representative        sustainability: Creating long-term value in                                                2023
                                   Business strategy




                                                                                    quarter-2023, 2nd quarter-2023, and 3rd quarter-2023.
                 Committee Work Implementation                                      The Company’s soundness level for the third quarter
                 Report                                                             of 2023 is at a composite rating 1, which reflects the
                                                                                    Company’s condition is generally very healthy thereby
        In 2023, Risk Management Committee held 4 (four)                            considered very capable to deal with significant negative
        meetings to discuss risk management implementation                          influences from changes in business conditions and
        in the Company, such as the Company’s soundness level,                      other external factors as reflected in the factor ranking
        risk profile, compliance monitoring and others.                             assessment, including implementation of good corporate
                                                                                    governance, risk profile, profitability and capital which
        In 2023, Risk Management Committee discussed                                are generally very good. If there is any weakness, the
        the Company’s health level for 4th quarter-2022, 1st                        weakness is in general considered less significant.




280
Page 281
PT BUSSAN AUTO FINANCE




                                                                                                                               HIGHLIGHTS
                                                                                                                               PERFORMANCE
In addition, the Risk Management Committee also               This Compliance Dashboard is a tool for monitoring the
discussed the Company’s risk profile per type of risk, both   Company’s compliance implementation every quarter.
for conventional and sharia financing, including reporting
on external events (operational risk events), discussing      Implementation of information technology risk
implementation of the Risk Control Self-Assessment            management was also discussed at the meeting
(RCSA) nationally in June 2023, implementation of             throughout 2023. The Risk Management Committee also
the Risk and Compliance Assurance Program (RCAP) in           evaluated the implementation of the risk management




                                                                                                                               REPORT
                                                                                                                               MANAGEMENT
September and October 2023.                                   program for 4th quarter 4-2022, 1st quarter-2023, 2nd
                                                              quarter-2023, and 3rd quarter-2023. The meeting also
Results of monitoring on the Company’s compliance or          discussed activities to build risk awareness culture and
Compliance Dashboard with the applicable provisions           compliance through webinars, Mari Patuh Bulletin, and
y to the positions of 1st quarter-2022, 2nd quarter-2022,     other media.
and 3rd quarter-2022 are also discussed periodically.




                                                                                                                               PROFILE
                                                                                                                               CORPORATE
                                                                                                                               DISCUSSION & ANALYSIS
                                                                                                                               MANAGEMENT
                                                                                                                               GOVERNANCE
                                                                                                                               CORPORATE
                                                                                                                               REPORT
                                                                                                                               SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                               281
Page 282
  CORPORATE
  GOVERNANCE




                 SHARIA BUSINESS
                 UNIT AND SHARIA
                 SUPERVISORY BOARD




                                             Sharia Business Unit (UUS)
        THROUGHOUT 2023, THE SHARIA     According to POJK No. 30/POJK.05/2014 concerning
        SUPERVISORY BOARD HAS CARRIED   Good Corporate Governance for Financing Companies, as
                                        amended and refined through POJK No. 29/POJK.05/2020
        OUT THE DUTIES TO ENSURE AND    concerning Amendments to Financial Services Authority
                                        Regulation No. 30/POJK.05/2014 concerning Good
        OVERSEE CONFIRMITY OF THE
                                        Corporate Governance for Financing Companies, Sharia
        FINANCING BUSINESS BASED ON     Business Unit is a work unit from head office of a finance
                                        company which is functioned as the parent office of the
        SHARIA PRINCIPLE.               office implementing sharia financing.

                                        The Company has a Sharia Business Unit which was
                                        established according to Board of Directors Decree No.
                                        BAF/SK-BOD/006/IV/2013 concerning Establishment
                                        of the Sharia Business Unit of PT Bussan Auto Finance
                                        and has obtained a permit to operate a Sharia Business
                                        Unit via a copy of OJK Board of Commissioners Decree



282
Page 283
PT BUSSAN AUTO FINANCE




                                                                                                                             HIGHLIGHTS
                                                                                                                             PERFORMANCE
No. KEP-129/ NB.223/2015 concerning the Granting of         membership, duties, and authorities as well as policies
Permit to Open a Sharia Business Unit for a Financing       for the implementation of Sharia Supervisory Board
Company to PT Bussan Auto Finance.                          meetings.

The Company has a Director who is in charge for
management of UUS and has knowledge in the Islamic               Duties and Responsibilities of the Sharia
finance or Sharia Financing Company and is committed             Supervisory Board




                                                                                                                             REPORT
                                                                                                                             MANAGEMENT
to UUS development. The Director is served by Sigit
Sembodo. His profile can be seen in the profile of the      According to Deed of the Shareholders Resolutions as a
Company’s Board of Directors.                               Substitute in lieu of the Extraordinary General Meeting
                                                            of Shareholders No. 121 dated December 16, 2013, the
In 2023, of the Company’s Sharia Business Unit is served    duties and authorities of the Sharia Supervisory Board
by Arry Cahyono to Ardinan Syahrani Santoso effective       are as follows:
as of August 1, 2021 according to Board of Director’s       1. Ensuring and supervising the conformity of financing
Decree No. 7040/BAF/HR-ADM/PG/VII/21 as Head of                 business based on sharia principles to the Fatwa
the Sharia Business Unit. The report on the change has          issued by the National Sharia Council, Indonesian
been submitted to OJK through the Company’s letter              Ulema Council;
No. BAF/143/CP/VII/2021. In carrying out its functions,     2. Assessing sharia aspects of operational guidelines
the Sharia Business Unit is supervised by the Sharia            and sharia financing products issued by the Company;




                                                                                                                             PROFILE
                                                                                                                             CORPORATE
Supervisory Board who is appointed by the General           3. Provide advice and advice to the Board of Directors,
Meeting of Shareholders based on the recommendation             from the sharia aspect to the implementation
of the National Sharia Council of the Indonesian Ulema          of financing business activities based on sharia
Council.                                                        principles;
                                                            4. Reviewing new sharia products for which there is
Chairperson of the Company’s UUS has complied with              no fatwa to request a fatwa to the National Sharia
the provisions as required in POJK No. 47/POJK.05/2020          Council of the Indonesian Ulema Council.
concerning Business and Institutional Permit          for
Financing Companies and Sharia Financing Companies,
as follows:                                                      Sharia Supervisory Board Membership
a. Do not have bad credit and/or financing;




                                                                                                                             DISCUSSION & ANALYSIS
                                                                                                                             MANAGEMENT
b. Not included in the list of parties prohibited from      Sharia Supervisory Board consists of at least 1 (one)
    being the main party; and                               person and 1 (one) person is appointed as Chairperson
c. Have expertise, training, and/or experience in Islamic   and concurrently member with competency in sharia
    finance;                                                muamalah. Chairperson and members of the Sharia
                                                            Supervisory Board are appointed by the General Meeting
                                                            of Shareholders starting from the date determined in
     Sharia Supervisory Board (DPS)                         the General Meeting of Shareholders which appointed
                                                            them for a period of 2 (two) years after the date of
According to POJK No. 30/POJK.05/2014 concerning            their appointment, without prejudice to the right of the
Good Corporate Governance for Financing Companies as        General Meeting of Shareholders to dismiss at anytime.
amended and refined under POJK No. 29/POJK.05/2020
concerning Amendments to Financial Services Authority       The Sharia Supervisory Board members mentioned
Regulation No. 30/POJK.05/2014 concerning Good              above are appointed on the recommendation of the
Corporate Governance for Financing Companies,               National Sharia Council of the Indonesian Ulema Council
the Sharia Supervisory Board (DPS) is part of the           (“DSN-MUI”). In accordance with POJK 30, members of
company’s organ with duty and function of supervising       the Company’s Sharia Supervisory Board do not serve
implementation of company activities based on sharia        as members of the Company’s Board of Directors or
                                                                                                                             GOVERNANCE
                                                                                                                             CORPORATE




principles.                                                 Board of Commissioners, and do not hold concurrent
                                                            positions as members of the Board of Directors, Board
                                                            of Commissioners, or members of the Sharia Supervisory
     Sharia Supervisory Board Work                          Board in more than 4 (four) other Islamic financial
     Guidelines                                             institutions.

In carrying out its duties, the Sharia Supervisory Board    In 2023, shareholders approved DPS composition
refers to the Company’s Articles of Association and the     referring to General Meetings of Shareholders
Company’s Corporate Governance Guidelines (GCG              resolutions dated dated May 26, 2023 as stated
Guidelines) which are prepared by referring to the          in Deed 20, dated May 26, 2023. Therefore, as of
prevailing laws and regulations. The guidelines contain,    December 31, 2023, DPS membership composition is as
among others, provisions regarding the structure and        follows:
                                                                                                                             REPORT
                                                                                                                             SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                             283
Page 284
  CORPORATE
  GOVERNANCE




               NAMA         POSITION IN                                  APPOINTMENT LETTER
                           THE COMMITTEE

         Ahmad Ifham        Chairperson         Circular Annual General Meetings of Shareholders Decree Statement Deed
                                                No. 41 dated April 22, 2021, which is affirmed under date No. 20 dated 26
                                                Mey 2023.




               Terms of Office of Sharia Supervisory                     Implementation
               Board
                                                                    Provisions of the Sharia Supervisory Board Meeting
        According to the Company’s Articles of Association,         are stated in the Company’s Articles of Association, as
        Chairperson and members of the Sharia Supervisory Board     follows:
        are appointed by the General Meeting of Shareholders        1. The Sharia Supervisory Board has a Chairperson who
        starting from the date determined in the General Meeting         is entitled to invite members and attend the Sharia
        of Shareholders which appointed them for a period                Supervisory Board meetings. The Sharia Supervisory
        of 2 (two) years from the date of their appointment,             Board is required to hold regular meetings at least 6
        without prejudice to the rights of the Meeting. General          (six) times in 1 (one) year.
        Shareholders to dismiss them at any time. Based on the      2. The decision of the Sharia Supervisory Board shall
        Deed of Circular Resolution of the Annual General Meeting        be taken in a meeting attended by the Chairperson
        of Shareholders No. 41 dated April 22, 2021, which is            and members of the Sharia Supervisory Board and
        affirmed under Deed No. 20 dated May 26, 2023, term              decided by deliberation and consensus.
        of office of the Sharia Supervisory Board, with 2 (two)     3. In the case when the Chairperson of the Sharia
        years terms and starting from closing of this meeting            Supervisory Board is unable to attend the meeting of
        continues until the closing of the General Meeting Annual        the Sharia Supervisory Board, the Chairperson of the
        Shareholders of the Company for Fiscal Year 2024,                Sharia Supervisory Board may authorize one of the
        without reducing the rights of shareholders to dismiss at        members of the Sharia Supervisory Board to make
        any time.                                                        decisions at the meeting of the Sharia Supervisory
                                                                         Board.
                                                                    4. All procedures and decisions taken at the meeting will
               Profile of Sharia Supervisory Board                       be recorded in the Minutes of the Meeting, signed by
                                                                         the Chairperson of the meeting and members of the
                                                                         Sharia Supervisory Board attending the meeting.
               Ahmad Ifham
                                                                    5. The Sharia Supervisory Board may take valid decisions
               Chairperson
                                                                         without holding a Sharia Supervisory Board Meeting,
        Ahmad Ifham, Indonesian citizen, 43 years old. Earned            provided that all members of the Sharia Supervisory
        Bachelor’s degree majoring Psychology from Gadjah                Board have been notified in writing and all members
        Mada University (“UGM”) Yogyakarta in 2002 and                   of the Sharia Supervisory Board have approved the
        obtained a Master’s degree in Law from the Institute of          proposal submitted in writing as proven by their
        Al-Quran Sciences (“IIQ”) Jakarta in 2020. He started his        signatures.
        career at Karim Business Consulting (2003 - 2007), Batasa
        Tazkia Consulting (2007 - 2008), Sharia Banking Business
        Analyst at various IT Companies (2008 - 2011), HRD               Sharia Supervisory Board Meeting
        Manager and Operations Manager at BNI Syariah (2011              Frequency and Attendance Level
        - 2014), CEO of Amana Sharia Consulting (2014 - 2020).
        Currently he serves as Member of the Sharia Supervisory     In 2023, Sharia Supervisory Board held meetings
        Board (DPS) PT Bussan Auto Finance, Chairperson of the      according to provisions of POJK 30. The Sharia Supervisory
        DPS BPRS Harta Insan Karimah (HIK) Cibitung, Member         Board has regularly held meetings with the Company’s
        of the DPS BPPS HIK Bekasi, Chairperson of DPS at           Sharia Business Units, Board of Directors and related
        BPRS Al Barokah and Member of DPS at Dana Syariah           divisions in 6 (six) meetings. In the meeting, the Sharia
        Indonesia.                                                  Supervisory Board provided advice and recommendation
                                                                    namely related to development of the Company’s sharia
                                                                    financing business and provided evaluations regarding
                                                                    the suitability of business development carried out with
                                                                    sharia business principles.




284
Page 285
PT BUSSAN AUTO FINANCE




                                                                                                                                                                HIGHLIGHTS
                                                                                                                                                                PERFORMANCE
              NAME                                POSITION                         MEETING                 ATTENDING               ATTENDANCE

     Azharuddin Lathief                 Chairperson                                     3                         3                      100%

     Ahmad Ifham                        Member                                          6                         6                      100%




                                                                                                                                                                REPORT
                                                                                                                                                                MANAGEMENT
*)     Effectively has not served as Chairperson of the Sharia Supervisory Board since the Decision of the General Meeting of Holders based on deed no.
       20 May 26, 2023.




                                                                               requirements in accordance with POJK No. 4/
        Sharia Supervisory Board Training                                      POJK.05/2013 concerning Fit and Proper Test for
                                                                               Main Parties in Insurance Companies, Pension Funds,
To develop competency and understanding in                                     Financing Companies, and Guarantee Companies, in
supporting implementation according to their duties                            2023, members of the Sharia Supervisory Board have
and responsibilities, as well as to fulfill sustainability                     attended training, seminars or workshops, as follows:




                                                                                                                                                                PROFILE
                                                                                                                                                                CORPORATE
 PARTICIPANT                                 TRAINING NAME                                   DATE & PLACE                      PROVIDER

     Ahmad Ifham           19th Istima’ Samawi (Annual Meeting) in                          Jakarta,                  Committee of National
                           2023                                                             October 13-14,            Sharia Board, Indonesia
                           ”Improve Collaboration of Sharia Financial                       2023                      Ulemma Council
                           Economy Development In Economy
                           Disruption era”

                           As Participants




                                                                                                                                                                DISCUSSION & ANALYSIS
                                                                                                                                                                MANAGEMENT
                           ”Implementation of Murabahah Agreement in                        Bandung                   Harta Insam Karimah
                           Sharia Banking Industry Post-Implementation                      November 17-              Group
                           of DSN-MUI Fatwa No. 153/DSN-MUI/                                18, 2023
                           VI/2022 concerning Repayment of
                           Murabahah Financing Debt Before Due Date”

                           As Speaker

                           Answering Oblique Accusations at Sharia                          Yogyakarta                Edukasi Wakaf Indonesia
                           Banks                                                            November 25,              Foundation
                                                                                            2023
                           As Speaker

                                                                                                                                                                GOVERNANCE
                                                                                                                                                                CORPORATE



                                                                               other regulations. Type of supervision includes regular
        Sharia Supervisory Board and Sharia                                    DPS meetings which have been held 6 times in 2023.
        Business Unit Activity Report 2023                                     DPS always provides suggestions and advice through
                                                                               these meetings from the sharia aspect regarding the
In 2023, Sharia Supervisory Board has carried out duties                       implementation of financing business activities based on
in ensuring and supervising suitability of financing                           sharia principles and monitoring performance of each of
businesses based on sharia principles, including through                       the Company’s sharia business lines.
evaluation and discussion. Assisted by UUS and the
Sharia Product Committee, DPS always coordinates and                           The discussions were also carried out, among others,
collaborates to provide full support to all sharia business                    through a review of the BAF Dana Syariah product (Al
units in 2023.                                                                 Bai Wa Al Istijar contract), DPS also collaborated with
                                                                               UUS to review several discussion focus areas such as the
Based on its duties, authority and responsibilities, DPS                       BAF Dana Syariah Take Over process, suspend payments,
has collaborated with UUS to carry out supervision and                         accelerated repayment of Murabahah financing and
                                                                                                                                                                REPORT
                                                                                                                                                                SUSTAINABILITY




evaluation of the Company’s business to comply with                            also Sharia gearing ratio. Furthermore, DPS attended
and comply with sharia principles in addition to various                       meetings with the Company’s Risk Monitoring Committee




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                                                285
Page 286
  CORPORATE
  GOVERNANCE




        which discuss the Company’s risk profile and soundness         product contract process carried out by colleagues
        level from a sharia perspective quarterly. In 2023, DPS        at network offices. visited and to improve the
        attended 4 meetings with Risk Monitoring Committee.            quality of the visit, all visits in 2024 will be based
                                                                       predetermined         parameters          such        as
        In 2023, Performance of Sharia Product and Business            business performance, quality of financing, productivity
        Activity Development Committee (KPPKUS) will also              marketing, application sources and fraud cases.
        become an important part of form of supervision and
        monitoring in the implementation of fulfilling sharia
        principles and mitigating risks in Sharia products. In 2023,        Sharia literacy and inclusion
        KPPKUS held 4 meetings to discuss agenda, such as:
        Sharia Business Unit Achievement and Planning, Sharia          In 2023, the Company fulfilled an inclusion invitation
        Product Development as well as Sharia Line of Business         held by North Sumatra Provincial Government, where
        business plans and targets, Business Plan and Results all      the Company used this opportunity to explain the
        2023 Sharia LOB and 2023 Pre-Fund Achievement.                 types of sharia products to the people in Medan and
                                                                       also had the opportunity to discuss and find out what
                                                                       financial solutions could be provided and what types of
               Supervision and monitoring of sharia                    products would be suitable for the society. The inclusion
               network offices                                         activities was held as part of an annual celebration
                                                                       presenting the cultural wonders and beauty of the
        Regarding the recovery post Covid-19 pandemic, DPS             North Sumatra Province.
        and UUS are collaborating to always build synergy in
        monitoring and overseeing implementation of Sharia             As an effort to improve sharia literacy through basic
        principles in operations at sharia network offices. UUS        introduction to BAF Dana Syariah and basic sharia
        advances the initiative to perform Virtual Network Visits      management, the Company has and will continuously
        (VNV) and Onsite Network Visits (ONV) in 2023. UUS             implement internal sharia certification program for
        carries out sampling or pick tests from several network        marketing and operational staffs for those who have
        offices across Java and Sumatra, 7 VNVs and 9 ONVs.            not participated and also for those who have just
        The purpose of virtual and onsite visits is to supervise and   joined. Sharia internal training program for 2023
        monitor Sharia principles carried out by network offices       has held 25 activities attended by 340 employees both
        in collecting customer data (KYC process) and BAF Dana         located in HQ/head office and network offices.
        Syariah contract transactions.
                                                                       Socialization in form of financial education literacy to
        Series of Virtual Network Visit (VNV) programs also            external parties was carried out in 2023. The Company
        became a platform to disseminate UUS functions,                has implemented a Sharia introduction program to sales
        establish fellowship from head office to network               partners, Yamaha Indonesia Motor Manufacturing and
        offices, and also evaluate the BAF Dana Syariah                other communities. PGRI teacher community in Bogor.




286
Page 287
PT BUSSAN AUTO FINANCE




                                                                                                                           HIGHLIGHTS
                                                                                                                           PERFORMANCE
             CORPORATE
             SECRETARY




                                                                                                                           REPORT
                                                                                                                           MANAGEMENT
As an issuer, the Company is required to appoint a         Regulation No. 35/POJK.04/2015 regarding Corporate
Corporate Secretary as a liaison between the Company       Secretary in Issuer or Public Company. The Corporate
and the Shareholders as well as other Stakeholders.        Secretary shall comply requirements at least being
Corporate Secretary is an in charge individual or person   capable in commencing legal action, having knowledge,
from working unit that performs corporate secretary        and understanding in legal, finance and corporate
function, as stipulated in Financial Service Regulation    governance, understanding the Company’s business
(OJK) No. 35/POJK.04/2014 regarding Corporate              activity and having good communication skill and lives




                                                                                                                           PROFILE
                                                                                                                           CORPORATE
Secretary in Issuers or Public Company.                    in Indonesia. Puji Arianti is the Corporate Planning &
                                                           Secretary Division Head who also concurrently serves as
Corporate Secretary holds responsibility to provide        the Corporate Secretary.
information about the Company to regulator,
authorities, investors/ shareholders, as well as explain
related regulations to the Board of Directors/Board             Organization Structure of Corporate
of Commissioners. Corporate Secretary also provides             Secretary
regulations and recommendations to the Board of
Directors to comply with the capital market regulations.   In the Company’s organization structure, Corporate
                                                           Secretary is directly responsible to the Vice President
                                                           Director, as illustrated in the structure below:




                                                                                                                           DISCUSSION & ANALYSIS
                                                                                                                           MANAGEMENT
     Legal Framework of Corporate Secretary
     Establishment
In the Company, Corporate Secretary Function is
established to comply with Financial Services Authority




                                             PRESIDENT DIRECTOR


                                           VICE PRESIDENT DIRECTOR


                                     CORPORATE PLANNING & SECRETARY
                                                                                                                           GOVERNANCE
                                                                                                                           CORPORATE



                                    DIVISION HEAD/CORPORATE SECRETARY




        CORPORATE PLANNING                     CORPORATE SECRETARY                   NETWORK STRATEGIC &
         DEPARTMENT HEAD                        DEPARTMENT HEAD                  DEVELOPMENT DEPARTMENT HEAD
                                                                                                                           REPORT
                                                                                                                           SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                           287
Page 288
  CORPORATE
  GOVERNANCE




        PUJI ARIANTI
        CORPORATE SECRETARY


        Indonesian citizen, 37 years. Lives in Jakarta. Earned      as Division Head of Corporate Planning & Secretary in the
        Bachelor’s degree from Institut Teknologi Sepuluh           Company as well as concurrently as Corporate Secretary.
        Nopember (ITS) majoring Chemical Engineering, in 2010.      Prior to joining the Company, she worked as Credit Risk
        She joined the Company in 2015 as Department Head           Support Department Head of PT Adira Quantum Multi
        in the Operation Planning & Development Division. Next,     Finance (2014-2015) and Operation Excellence Deputy
        she was appointed as Operation Strategic & Development      Department Head of PT Adira Quantum Multi Finance
        Deputy Division Head (3 July 2017 - 31 December 2020).      (2010-2013).
        Effective as per January 1, 2021, she was later appointed


        Address :                               Phone :
        BAF Plaza                               +62-21 2939 6000
        Jalan Raya Tanjung Barat No. 121
        Tanjung Barat – Jagakarsa,              E-mail :
        Jakarta Selatan 12530                   baf.sekretariat@baf.id




                                                                    In terms of GMS and Board of Commissioners relation,
               Duty and Responsibility of Corporate                 the Corporate Secretary acts as liaison officer between
               Secretary                                            the Board of Directors with the structure.

        Corporate Secretary has duty and responsibility, among
        others:                                                          Corporate Secretary Training
        • To perform activities related with corporate document
           administration and archiving, including but not          To develop competencies, the Corporate Secretary
           limited to Special List, Shareholders List as well as    function has attended various seminars, socialization
           Minutes of BOD Meeting and GMS;                          and workshops held by OJK, Self-Regulatory Organization
        • To perform activities related to public relation and      (SRO) and by associations. The seminars, workshops and
           investor relation functions;                             socialization programs that have been attended by the
        • To cooperate with function which handles corporate        Corporate Secretary function in 2023, are including:
           legal service;
        • To develop and control corporate governance;
        • To prepare annual report and management report;
           and



                                TRAINING NAME                                        PROVIDER                DATE & PLACE

         Understanding POJK Number 14/POJK.04/2022 concerning                 Financial Service             January 12,
         Submission of Periodic Financial Report of Issuer or Public          Authority                     2023
         Company

         Socialization of OJK Online Reporting Application                    Financial Service             February 14,
         Implementation                                                       Authority dan PT Bursa        2023
                                                                              Efek Indonesia




288
Page 289
PT BUSSAN AUTO FINANCE




                                                                                                                    HIGHLIGHTS
                                                                                                                    PERFORMANCE
                         TRAINING NAME                                   PROVIDER            DATE & PLACE

 Socialization of PMK Number 31 of 2023 concerning VAT           Financial Service           May 11, 2023
                                                                 Authority and PT Bursa
                                                                 Efek Indonesia

 Seminar Understanding the Landscape and Significance of GSS     PT Bursa Efek Indonesia     May 24, 2023




                                                                                                                    REPORT
                                                                                                                    MANAGEMENT
 Bonds

 Seminar International Accounting Standard Board (IASB)          Indonesia Accounting        May 29, 2023
 Update: The latest Development in IFSR                          Association and PT Bursa
                                                                 Efek Indonesia

 Socialization of POJK Number 3 of 2023 concerning               Financial Service           May 31, 2023
 Improvement of Financial Literacy and Inclusion in Financial    Authority
 Service Sector for Customers and Society

 Capacity Building Workshop: Addressing Gender-Based Violence    PT Bursa Efek Indonesia     June 8, 2023
 and Harassment: The Role of Corporate Boards




                                                                                                                    PROFILE
                                                                                                                    CORPORATE
 Seminar Cybersecurity Baseline                                  Mitsui & Co., Ltd.          July 18, 2023

 Seminar Digital Transformation                                  Corporate Innovation Asia   July 28, 2023
                                                                 (CIAS)

 Seminar Data Protection Resilience Strategy in Company          Indonesia Corporate         2 – 3 August
                                                                 Secretary Association       2023

 Seminar Attention to Emerging Bribery Mode                      Financial Service           August 3, 2023
                                                                 Authority

 Socialization of IAI-PPPK IFSR Sustainability Disclosure        Indonesia Accounting        August 30,




                                                                                                                    DISCUSSION & ANALYSIS
                                                                                                                    MANAGEMENT
 Standards                                                       Association                 2023

 Lean Six Sigma                                                  SSCX International          13 and 15
                                                                                             September
                                                                                             2023

 Seminar The Corporate Governance Officer’s Role in Driving      Indonesia Corporate         October 12,
 Digital Resilience                                              Secretary Association       2023

 Socialization of Carbon Trading via Indonesia Carbon Exchange   Indonesia Carbon            October 13,
                                                                 Exchange                    2023

 Leadership Bootcamp                                             Eltov                       17 – 18
                                                                                             November 2023

 Seminar Indonesia Sector Briefing 2023 – 2024 Oulook on Banks   Fitch Ratings               November 21,
 and Consumer-Related Sectors                                                                2023
                                                                                                                    GOVERNANCE
                                                                                                                    CORPORATE




 Seminar Enhancing ESG Through Best Practices in Accouting       Financial Service           December 7,
                                                                 Authority                   2023

 Seminar The Management Role in ERP Implementation               Mitsui & Co., Ltd.          December 13,
                                                                                             2023

 Seminar Economic Outlook 2024: Strengthening Indonesia’s        Indonesia Corporate         December 14,
 Economy                                                         Secretary Association       2023
                                                                                                                    REPORT
                                                                                                                    SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                    289
Page 290
  CORPORATE
  GOVERNANCE




                                                                            concerning Applications for Licensing, Approval
               Corporate Secretary Work                                     and Electronic Reporting for Finance Companies
               Implementation Report in 2023                                and Sharia Financing Companies which
                                                                            effectively applied as per November 9, 2023;
        In 2023, in addition to role as a liaison between the        2. Organize and document GMS, both Annual and
        Company and shareholders, regulators and other                  Extraordinary GMS in form of a Circular Resolution of
        stakeholders, Corporate Secretary has also carried out          Shareholders in lieu of Extraordinary GMS (“Circular
        duties and responsibilities according to its function,          Resolution”). In 2023, the Company held Annual
        among others:                                                   GMS on May 8, 2023 for fiscal year 2022apl, and
        1. Following capital market developments, especially            there were 5 (five) Circular Resolutions, such as
            prevailing laws and regulations in capital market           regarding amendment to the Articles of Association,
            regarding the Company’s position as a bond issuer,          Remuneration for the Board of Directors, Board
            including ensuring compliance with new regulations          of Commissioners and Sharia Supervisory Board
            issued by OJK, IDX and other regulators related to the      members, resignation of one of the Board members
            capital market and conveying this information and           Commissioner, appointment of Public Accounting
            providing feedback to the Board of Directors and/or         Firm and Public Accountant to audit the Company’s
            Board of Commissioners.                                     financial statements for 2023 and the Transfer of
                                                                        Company Shares as well as appointment of a Board
           Some regulations issued by OJK and IDX in 2023 are           of Commissioners member.
           including:                                                3. Organized 6 (six) Board of Commissioners meetings,
           a. Financial Services Authority of Republic                  38 (thirty eight) Board of Directors meetings, and
               of Indonesia Circular Letter Number 30 /                 4 (four) Board of Commissioners and Board of
               SEOJK.05/2022       concerning        Amendments         Directors joint meetings, as well as administered the
               to the Financial Services Authority of                   minutes of the meetings. The Corporate Secretary
               Republic of Indonesia Circular Letter Number             has also ensured that the meeting fulfils provisions
               19/SEOJK.05/2020        About           Insurance        of the prevailing regulations. Corporate Secretary
               Products Marketing Channels applied on                   also ensures that the Implementation of Meeting
               December 27, 2022                                        of Committee under the Board of Commissioners
           b. Republic of Indonesia Financial Services Authority        complies with provisions of each committee, such
               Circular Letter Number 32 /SEOJK.05/2022                 as Audit Committee, Nomination and Remuneration
               concerning      Amendments         to     Financial      Committee, and Risk Monitoring Committee. Audit
               Services Authority Circular Letter Number 15/            Committee held 6 (six) meetings, Nomination and
               Seojk.05/2019 concerning Reassessment for                Remuneration Committee held 3 (three) meetings,
               Main Parties of Non-Bank Financial Services              and Risk Monitoring Committee held 4 (four) times.
               Institutions which effectively applied as per         4. Submit periodic and incidental reports to the
               December 27, 2023;                                       regulator according to prevailing provisions related
           c. Republic of Indonesia Financial Services                  to the capital market. In 2023, periodic reports that
               Authority Regulation No. 3 of 2023 concerning            have been submitted are including:
               Financial Literacy and Inclusion Improvement in          a. Business Plan Report 2024 was submitted on
               Financial Services Sector for Consumers and the              November 30, 2023, including Semester Business
               Society which effectively applied as per February            Plan Realization Report for the second half of
               24, 2023;                                                    2022, which was submitted on February 3, 2023
           d. Republic of Indonesia Financial Services Authority            and the first half of 2023, which was submitted
               Regulation Number 8 of 2023 concerning                       on June 30, 2023, according to provisions of POJK
               Implementation of Anti-Money Laundering                      No. 23/SEOJK.05/2019 concerning Business Plans
               Programs, Counter Terrorism Financing, and                   for Finance Companies and Sharia Financing
               Prevention of Funding for the Proliferation of               Companies;
               Weapons of Mass Destruction in Financial                 b. Sustainable Financial Action Plan Report for 2024,
               Services Sector which effectively applied as per             in compliance with POJK No. 51/POJK.03/2017
               June 14, 2023;                                               concerning Implementation of Sustainable
           e. Republic of Indonesia Financial Services Authority            Finance for Financial Services Institutions, Issuers
               Regulation Number 9 of 2023 concerning the                   and Public Companies which was submitted on
               Use of Public Accounting Services and Public                 November 30, 2023;
               Accounting Firms in Financial Services Activities        c. Annual Report and Sustainability Report in
               which effectively applied as per July 11, 2023;              compliance with POJK No. 29 /POJK.04/2016
           f. Republic of Indonesia Financial Services Authority            concerning Annual Reports of Issuers or Public
               Circular Letter Number 18/SEOJK.03/2023                      Companies, and POJK No. 51/POJK. 03/2017 of
               concerning Procedures for Using the Services of              2017 concerning Implementation of Sustainable
               Public Accountants and Public Accounting Firms               Finance for Financial Services Institutions, Issuers
               in Financial Services Activities which effectively           and Public Companies, which was submitted on
               applied as per November 6, 2023;                             April 20, 2023.
           g. Republic of Indonesia Financial Services                  d. Corporate Governance Report 2022, in
               Authority Regulation Number 20/SEOJK.06/2023                 compliance with POJK No. 29/POJK.05/2020




290
Page 291
PT BUSSAN AUTO FINANCE




                                                                                                                                HIGHLIGHTS
                                                                                                                                PERFORMANCE
        concerning Amendments to Financial Services               awarded to issuers or debt securities with the lowest
        Authority Regulation no. 30/POJK.05/2014                  expected risk of default relative to other issuers or
        concerning Good Corporate Governance for                  debt securities in Indonesia. In the fourth quarter
        Financing Companies which was submitted on                of 2023, Pefindo has also affirmed the Company’s
        April 30, iy2023; And                                     idAAA rating.
    e. Public Offering Proceeds Realization Report for        11. Updating corporate information data on the
        June 2023 period, which was submitted on July             Company’s website and correspondence with the




                                                                                                                                REPORT
                                                                                                                                MANAGEMENT
        17, 2023 and December 2023 which will be                  media.
        submitted in January 13, 2024, in compliance
        with POJK No. 30/POJK.04/2015 concerning              Prepare documentation and assist in implementing Fit and
        Public Offering Proceeds Realization Report.          Proper Test process for 2 (two) Board of Commissioners
5. Disclose information according to prevailing               member and 2 (two) foreign workers candidates. As end of
    regulations, either through the Company’s website or      2023, one of the member candidates have been declared
    IDX website.                                              to have fulfilled the requirements as Board of Directors
6. Administer, distribute and follow up incoming letters      and Board of Commissioners member, respectively.
    from OJK Capital Markets, OJK Non-Bank Financial
    Industries (IKNB), IDX, and other institutions
    addressed to the Board of Directors and/or Board of            Periodic Reports
    Commissioners.




                                                                                                                                PROFILE
                                                                                                                                CORPORATE
7. Represent the Company in seminars and socialization        Financial Statements
    program held by OJK, IDX and other institutions. As       The Company has published mid-year and end-of-
    for seminars, the socialization that were attended        year financial statements via the Company’s website.
    during 2023 are listed in Corporate Secretary Function    Audited Financial Statements as of December 31, 2022
    competency development table.                             was published on March 20, 2023 and the Financial
8. Maintain and establish communication with media            Statements as of June 30, 2023 was published on
    and investors, both regarding requests for responses      July 28, 2023. The Company has also published the
    or providing updates on the Company’s performance.        Company’s Financial Statements on Indonesia Stock
9. Cooperate with the Corporate Finance Division in           Exchange website. The Company’s Financial Statements
    continuing the Shelf-Registration Offering II, which is   are prepared, among other, refers to Regulation VIII.G.7
    Shelf-Registration Bonds II phase II and IV in 2023 by    concerning Presentation and Disclosure of Financial




                                                                                                                                DISCUSSION & ANALYSIS
                                                                                                                                MANAGEMENT
    ensuring that the provisions related to the issuance of   Statements of Issuers or Public Companies, Regulation
    these bonds are complied with prevailing regulations,     Number X.K.2 concerning Submission of Periodic
    and other activities related to the corporate secretary   Financial Statements of Issuers or Public Companies, and
    function.                                                 POJK No. 75/POJK.04/2017 concerning Responsibility of
10. Monitor the Company’s annual and quarterly ratings.       Board of Directors for Financial Statements and other
    In 2023, Fitch Ratings Indonesia has affirmed             related regulations and/or provisions.
    the Company’s National Long-Term Rating at
    ‘AAA(idn)’, with stable outlook. The ‘AAA’ national       The publication of financial statements in 2023 is
    rating indicates the highest rating given by Fitch on     presented in the table below:
    the national rating scale for Indonesia. This rating is



                     PUBLICATION                                   DATE & PLACE                      MEDIA

 Audited Financial Statements as of December 31,              March 20, 2023                The Company’s Website
 2022                                                                                       Website PT Bursa Efek
                                                                                                                                GOVERNANCE
                                                                                                                                CORPORATE



                                                                                            Indonesia

 Financial Statements os of June 30, 2023                     July 28, 2023                 The Company’s Website
                                                                                            Website PT Bursa Efek
                                                                                            Indonesia




To comply with Securities Listing Regulation No. I.A.3        reports to the Indonesia Stock Exchange (IDX) to comply
regarding the Reporting Obligations of the Company’s          with POJK No. 35/POJK.05/2018 regarding the Business
Issuers as amended in the Decree of the Board of              Implementation of Financing Companies, the Company
Directors of the Indonesia Stock Exchange No. Kep-            has also submitted an audited annual financial report
00015/BEI/01-2021 concerning Amendment to                     earlier than the deadline for submitting financial
                                                                                                                                REPORT
                                                                                                                                SUSTAINABILITY




Regulation Number I-E Regarding Obligation to Submit          statements, accompanied by evidence of advertisements
Information, the Company has also submitted financial         or announcements of annual financial statements.




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                291
Page 292
  CORPORATE
  GOVERNANCE




                                                 AUDITED FINANCIAL REPORT                    FINANCIAL REPORT
                     REGULATOR                    SUBMISSION DATE AS OF                    SUBMISSION DATE AS OF
                    PUBLICATION                      31 DECEMBER 2023                          JUNE 30, 2023
         OJK Pasar Modal                                 March 30, 2023                           July 28, 2023

         OJK IKNB                                        March 30, 2023                           July 28, 2023

         Indonesia Stock Exchange (IDX)                  March 30, 2023                           July 28, 2023




        Annual Report                                              Other Periodic Reports
        Annual Report of the Company is prepared according         Corporate Secretary also ensures that obligation to
        to POJK No. 29/POJK.04/2016 concerning Annual              submit other periodic reports such as foreign exchange
        Report of Issuers or Public Companies and SEOJK No.        data, is submitted on time. According to the Financial
        30/SEOJK.06/2016 regarding Formats and Contents of         Service Authority (OJK) Letter No. S-30/PM.2/2013 dated
        Annual Report of Issuers and Public Companies. Annual      February 7, 2013 regarding Request of Debt/Liabilities in
        Report for fiscal year 2022 has been submitted to          Foreign Exchange data, the reports have been submitted
        OJK according to prevailing law on the date of annual      to OJK the latest on 10 days every month. The following
        GMS invitation, which is on April 20, 2023 through the     table presents Report of Debt/Liability Data in Foreign
        Company’s letter No. BAF/116/CP/IV/2023 concerning         Currency which is submitted periodically throughout
        Annual Report & Sustainability Report Submission. Year     2023:
        2022 PT Bussan Auto FInance



          REPORTING MONTH PERIOD                      PUBLICATION DATE                              REMARKS
         January                               February 7, 2023                                      On Time

         February                              March 2, 2023                                         On Time

         March                                 April 6, 2023                                         On Time

         April                                 May 4, 2023                                           On Time

         May                                   June 6, 2023                                          On Time

         June                                  July 4, 2023                                          On Time

         July                                  August 3, 2023                                        On Time

         August                                September 7, 2023                                     On Time

         September                             October 6, 2023                                       On Time

         October                               November 9, 2023                                      On Time

         November                              December 4, 2023                                      On Time

         December                              January 4, 2024                                       On Time




        In addition to periodic reports according to the stock
        market regulation, as a financing company, the Company          Information Disclosure Via IDXnet and/
        also always submits mandatory reports such as financing         or SPE OJK
        company monthly report as required in POJK No. 29/
        POJK.05/2014 regarding Financing Company Business          In addition to the reports mentioned above, information
        Implementation and other periodic reports.                 disclosure in 2023 that have been submitted via IDXnet
                                                                   and/or SPE OJK are as follows:




292
Page 293
PT BUSSAN AUTO FINANCE




                                                                                                                       HIGHLIGHTS
                                                                                                                       PERFORMANCE
  PUBLICATION DATE              LETTER REGISTRY                            REMARKS
 January 12, 2023           BAF/006/CP/I/2023      PT Bussan Auto Finance Shelf-Registration Bonds II
                                                   Phase I & II Proceeds Realization Report as of December
                                                   2022 perod

 February 23, 2023          BAF/035/CP/II/2023     Information Disclosure or Material Facts Report related to




                                                                                                                       REPORT
                                                                                                                       MANAGEMENT
                                                   Resignation of PT Bussan Auto Finance Audit Committee
                                                   Member

 February 23, 2023          BAF/037/CP/II/2023     Information Disclosure or Material Facts Report related
                                                   to Shareholders Approval on PT Bussan Auto Finance
                                                   Articles of Association Amendment

 March 15, 2023             BAF/065/CP/III/2023    Resignation of PT Bussan Auto Fiannce Board of
                                                   Commissioner Member

 March 15, 2023             BAF/067/CP/III/2023    Submission of PT Bussan Auto Finance Articles of
                                                   Association Amendment Summary

 March 20, 2023             BAF/007/ACC/III/2023   Submission of Announcement Proof for PT Bussan




                                                                                                                       PROFILE
                                                                                                                       CORPORATE
                                                   Auto Finance Financial Statements for year ended on
                                                   December 31, 2022 (audited)

 March 20, 2023             BAF/004/ACC/III/2023   PT Bussan Auto Finance Financial Statements for year
                                                   ended on December 31, 2022 (audited)

 March 20, 2023             BAF/006/ACC/III/2023   Submission of PT Bussan Auto Finance Financial
                                                   Statements ended on December 31, 2023 (audited)

 April 03, 2023             BAF/089/CP/IV/2023     Material Information or Facts Report on PT Bussan Auto
                                                   Finance Shelf-Registraiton Bonds II Phase III Year 2023.




                                                                                                                       DISCUSSION & ANALYSIS
                                                                                                                       MANAGEMENT
 April 03, 2023             BAF/087/CP/IV/2023     Changes in Audit Committee

 April 20, 2023             BAF/115/CP/IV/2023     Annual and Sustainability Report Submission

 May 05, 2023               BAF/129/CP/V/2023      Information Disclosure or Material Facts Report on PT
                                                   Bussan Auto Finance Shelf-Registration Bonds II Phase I
                                                   Year 2022 Series A Principal and Last Interest Repayment.

 May 09, 2023               BAF/134/CP/V/2023      Information Disclosure or Material Facts Report related
                                                   to Shareholders Approval on Changes in PT Bussan Auto
                                                   Finance Board of Directors, Board of Commissioners and
                                                   Sharia Supervisory Board.

 May 09, 2023               BAF/135/CP/V/2023      Change in PT Bussan Auto Finance Audit Committee
                                                   Members

 May 09, 2023               BAF/136/CP/V/2023      Change in PT Bussan Auto Finance Nomination and
                                                                                                                       GOVERNANCE
                                                                                                                       CORPORATE



                                                   Remuneration Committee Members

 July 03, 2023              BAF/164/CP/VII/2023    Information Disclosure on The Company’s Shares
                                                   Disposal Plan by Shareholders

 July 11, 2023              BAF/179/CP/VII/2023    PT Bussan Auto Finance Shelf-Registration I Phase I
                                                   Year 2020 Bonds Principal and Last Interest Repayment,
                                                   Shelf-Registration II Phase II Year 2020 Series A Principal
                                                   Payment and Last Profit Sharing for Shelf-Registration
                                                   Mudharabah Sukuk I Phase I Year 2020, Shelf-Registraiton
                                                   Mudharabah Sukuk I Phase II Year 2020 Series B.

 July 17, 2023              BAF/183/CP/VII/2023    PT Bussan Auto Finance Proceeds Realization Report
                                                   (LRPD) for Shelf-Registration Bonds II Phase III as of
                                                   June 2023 Period, and re-submission of the LRPD for
                                                                                                                       REPORT
                                                                                                                       SUSTAINABILITY




                                                   Shelf-Registration Bonds II Phase II as of December
                                                   2022 period.




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                       293
Page 294
  CORPORATE
  GOVERNANCE




          PUBLICATION DATE              LETTER REGISTRY                                 REMARKS
         July 17, 2023              BAF/184/CP/VII/2023          Information Disclosure on PT Bussan Auto Finance Shelf-
                                                                 Registration II Phase I Year 2022 Series A Bonds Principal
                                                                 Repayment and Last Interest Payment

         July 21, 2023              BAF/188/CP/VII/2023          Resignation of PT Bussan Auto Finance Board of
                                                                 Commissioner Member

         August 01, 2023            BAF/194/CP/VII/2023          Rating Report on PT Bussan Auto Finance

         August 04, 2023            BAF/197/CP/VIII/2023         Public Disclosure or Material Facts Report related to PT
                                                                 Bussan Auto Finance Bonds Shelf-Registration I Phase I
                                                                 Year 2020 and Shelf-Registration Sukuk Mudharabah I
                                                                 Phase I Year 2022

         August 21, 2023            BAF/206/CP/VIII/2023         Public Disclosure or Material Facts Report related to PT
                                                                 Bussan Auto Finance Shareholders Approval on Change
                                                                 in Board of Commissioners Members.

         August 24, 2023            BAF/210/CP/VIII/2023         Public Disclosure or Material Facts Report related to PT
                                                                 Bussan Auto Finance Shelf-registration Bonds II Phase IV
                                                                 Year 2023

         September 26, 2023         BAF/253/CP/IX/2023           Public Disclosure or Material Facts Report related
                                                                 to Shareholders Approval on Changes in PT Bussan
                                                                 Auto Finance Shareholders Composition, Board of
                                                                 Commissioners Composition and Articles of Association
                                                                 Amendment.

         September 27, 2023         BAF/258/CP/IX/2023           Submission of PT Bussan Auto Finance Articles of
                                                                 Association Amendment Summary

         September 29, 2023         BAF/261/CP/IX/2023           Public Disclosure or Material Facts Report related to PT
                                                                 Bussan Auto Finance Shares Transfer

         October 06, 2023           BAF/262/CP/IX/2023           PT Bussan Auto Finance Public Accountant (AP) and
                                                                 Public Accountant Firm (KAP) Appointment Report

         October 20, 2023           BAF/273/CP/X/2023            Annual Rating Report on PT Bussan Auto Finance

         October 23, 2023           BAF/288/CP/IX/2023           Information Disclosure on PT Bussan Auto Finance Shelf-
                                                                 Registration I Phase II Year 2020 Series B Mudharabah
                                                                 Sukuk Principal Repayment and Last Interest Payment

         November 14, 2023          BAF/339/CP/XI/2023           Annual Rating Report on PT Bussan Auto Finance

         December 12, 2023          BAF/368/CP/XII/2023          Information Disclosure on PT Bussan Auto Finance
                                                                 Shelf-Registration II Phase II Year 2020 Series A Bonds
                                                                 Principal Repayment and Last Interest Payment




                                                                 interests of the investors, customers or public generally.
               Official Website                                  The Company attempts to ensure that the Company’s
                                                                 website has complied with provisions as issuers as
        The Company has a website that presents various          disclosed in POJK No. 8/POJK.04/2015 regarding Website
        information about the Company such as company profile,   of Issuers or Public Companies.
        products and services and other information related to




294
Page 295
PT BUSSAN AUTO FINANCE




                                                                                                                              HIGHLIGHTS
                                                                                                                              PERFORMANCE
             INTERNAL
             AUDIT UNIT




                                                                                                                              REPORT
                                                                                                                              MANAGEMENT
Internal Audit Function in the Company is implemented       7. Internal Auditor Requirements
by Internal Audit Unit (SKAI) as third line of defense in   8. Accountability of Internal Audit Division
ensuring the Company’s management and operations            9. Prohibitions to Internal Auditor
have been carried out according to the provisions           10. Closing
and regulations as well as supporting the Company’s
interest and goals.
                                                                 Internal Audit Structure and Position




                                                                                                                              PROFILE
                                                                                                                              CORPORATE
In the Company’s organization structure, Internal
Audit work unit is directly under the President Director.   1. Internal Audit Division is under President Director;
According to Internal Audit Charter, the Internal Audit     2. Internal Audit Division is led by Head of Internal
Unit has the authority and responsibility to supervise,        Audit Division;
test and evaluate implementation of internal control        3. Head of Internal Audit Division is appointed and
and risk management systems in the Company.                    dismissed by President Director with approval from
                                                               Board of Commissioners;
                                                            4. Head of Internal Audit Division reports every
     Legal Framework of Establishment                          activity and solely responsible upon the report to
                                                               the President Director;
In the Company. Internal Audit is established under OJK




                                                                                                                              DISCUSSION & ANALYSIS
                                                                                                                              MANAGEMENT
Regulation No. 56/POJK.04/2015 concerning Internal
Audit Unit Establishment and Charter Preparation.                Duty and Responsibility and Authority
The Head of Internal Audit is currently served by
Erdyan Lazuardy as disclosed in SK-003/BOC-BOD/BAF.         Duty and responsibility of Internal Audit are as follows:
VII/2019 dated July 15, 2019 concerning Succession          1. Prepare and implement annual internal audit plan;
of Head of Internal Audit appointing the new Head of        2. Examine and evaluate implementation of internal
Internal Audit effective as per August 1, 2019 and has          control and risk management system according to
been reported to OJK and IDX. There was no change in            corporate policy;
Head of Internal Audit in 2023.                             3. Examine and audit efficiency and effectiveness in
                                                                Finance, Accounting, Operations, Human Resources,
                                                                Marketing, Information Technology and other
     Internal Audit Charter                                     activities;
                                                            4. Provide improvement suggestion and objective
In carrying out the duty, Internal Audit Unit has               information about the audited activity at all
been equipped with Internal Audit Charter. The                  management level;
Charter manifests compliance to OJK Regulation No.          5. Prepare audit report and submit the report to the
                                                                                                                              GOVERNANCE
                                                                                                                              CORPORATE



56/POJK.04/2015 concerning Internal Audit Unit                  President Director and Board of Commissioners;
Establishment and Internal Audit Charter Revision the       6. Oversee, analyze and report implementation of
latest under Board of Directors Decree 0016/AM-AUD/             improvement follow-up as suggested;
XI/2022 dated November 18, 2022 with additional             7. Cooperate with Audit Committee;
provisions. There was no change in the Internal Audit       8. Prepare the program to evaluate quality of the
Charter in 2023.                                                implemented internal audit activity;
                                                            9. Perform special assignment under the internal
Overall, principal contents of the Internal Audit Charter       control scope assigned by the President Director.
are including:                                              10. Perform compliance audit activity as regulated in
1. Background                                                   the Financial Service Authority Regulation.
2. Vision and Mission
3. Organization Structure and Position of Internal          Authority of the Internal Audit is as follows:
    Audit Division                                          1. Access all documents, records and information upon
4. Duty and responsibility of Internal Audit Division          the audit object to acquired data related to the
                                                                                                                              REPORT
                                                                                                                              SUSTAINABILITY




5. Authority of Internal Audit Division                        assignments;
6. Code of Ethics of Internal Auditor




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                              295
Page 296
  CORPORATE
  GOVERNANCE




        2. Provide recommendation to the President Director
           to prepare, revise and implement the internal                    Professional Qualification or
           monitoring policy namely stipulating the audit                   Certification
           procedure and scope of work;
        3. Perform verification and reliability test on the          Head of the Internal Audit Unit holds several
           acquired information related to the assessment on         certifications, among others: Comprehensive Course
           the audited system effectiveness;                         of Financial Company Business Certificate-APPI, Risk
        4. Perform direct communication with the Board of            Management Certification (Executive Level), Financing
           Directors, Board of Commissioners, and/or Audit           Expert Certification-APPI, Financing Managerial
           Committee and members of Board of Directors,              Certification-APPI, Training on Implementation of
           Board of Commissioners and/or Audit Committee;            Financing Company Risk Management-APPI, Anti-
        5. Hold regular and incidental meetings with the Board       Fraud Awareness-APPI, Investigative Interview & Lie
           of Directors, Board of Commissioners and or Audit         Detection Specialist, Personal Data Protection-LPPI,
           Committee;                                                Fraud Risk Management-ACFE, Introduction to Digital
        6. Coordinate the activities with External Auditor’s         Forensics-ACFE and Prevention of Fraud & Crime in the
           activities;                                               Financing Services Business Sector-OJK
        7. Coordinate with other divisions in performing audit
           activity in the Company.                                  Internal Audit Unit has provided opportunities for all
                                                                     selected Auditors to attend training is as follows:



            CONFERENCE/TRAINING/
                                                       DATE & PLACE                   PROVIDER               PARTICIPANTS
               SOCIALIZATION

         Enhance Auditor Career                  Jakarta, 02 June 2023         Smart Personality                    27

         Enterprise Resource Planning (ERP)      Jakarta, 15 July 2023         ACFE                                  1
         as Fraud Prevention System

         Remote Audit Skills                     Jakarta, 31 August 2023       Indonesia Professional               27
                                                                               Development Center
                                                                               (IPDC) Training Institute

         Teknik Audit MRTI                       Jakarta, 03 October 2023      Veda Praxis                          10




        Every personnel of the Internal Audit Unit or collectively
        shall have capability and knowledge, including as                   Ethical Code of Internal Audit
        follows:
        1. Capability in implementing internal audit standards       In carrying out its duties, the Company’s Internal
            and ethics, procedure and technique that are             Auditors have a binding code of conduct in the conduct
            required in performing audit;                            of the Company, including:
        2. Understanding on the management principles                1. Integrity
            required to recognize and evaluate materiality of            In carrying out the duties, internal auditors highly
            business and work ethics violation;                          uphold honesty, diligence, and full responsibility.
        3. Understanding on economics, finance and
            information system;                                      2. Objectivity
        4. Understanding on operational policy and business             Internal auditors demonstrate the highest level of
            process of the Company.                                     professional objectivity in collecting, evaluating,
                                                                        and communicating information about the activity
        The internal auditor is required to obtain basic audit          or process being examined. Internal auditors make a
        certification to develop the competency in ongoing              balanced assessment of all relevant aspects and are
        basis as agreed with Learning & Development Division,           not affected by personal interests or other parties in
        altogether with additional certificates for participating       giving their consideration.
        in external trainings.




296
Page 297
PT BUSSAN AUTO FINANCE




                                                                                                                                 HIGHLIGHTS
                                                                                                                                 PERFORMANCE
3. Confidentiality
   Internal auditors respect value and ownership of             Internal Audit Structure, Position and
   the information they receive and do not disclose             Accountability
   information without permission unless there are
   mandatory under the provisions or professional          Structurally, the Internal Audit Unit is directly responsible
   obligations.                                            to President Director. In its implementation, the Internal
                                                           Auditor is prohibited to serve in concurrent position




                                                                                                                                 REPORT
                                                                                                                                 MANAGEMENT
4. Competency                                              and duties related to implementation of operational
   Internal auditors have dedicated their required         activity both in the Company and subsidiaries. As of
   knowledge, skills and experience that are required in   December 31, 2023, composition of Internal Audit Unit
   carrying out the internal audit activity.               membership in the Company consists of 1 (one) Division
                                                           Head, 3 (three) Department Heads and 21 (twenty-one)
                                                           staffs/supervisor/deputy department head internal
                                                           audit.

                                                           Internal Audit Unit organization structure in the
                                                           Company as of September 1, 2023 is as follows:




                                                                                                                                 PROFILE
                                                                                                                                 CORPORATE
                                             PRESIDENT DIRECTOR


                                           DIVISION HEAD INTERNAL AUDIT




                                  DEPARTMENT HEAD
     DEPARTMENT HEAD                                            DEPARTMENT HEAD                    UNIT HEAD
                                   STRATEGIC AND
    OPERATIONAL AUDIT                                          QUALITY ASSURANCE                   ANTI FRAUD
                                 DEVELOPMENT AUDIT




                                                                                                                                 DISCUSSION & ANALYSIS
                                                                                                                                 MANAGEMENT
        DEPUTY/SPV/STAFF             DEPUTY/SPV/STAFF              DEPUTY/SPV/STAFF                 DEPUTY/SPV/STAFF




                                                                                                                                 GOVERNANCE
                                                                                                                                 CORPORATE




ERDYAN LAZUARDY
HEAD OF INTERNAL AUDIT PROFILE


Erdyan Lazuardy, Indonesian Citizen, 49 years. Earned      Columbindo Perdana (2000-2002), Operation Support
Bachelor’s Degree of Accounting from Universitas Mercu     Head PT Adira Quantum Multifinance (2002-2012),
Buana in 1998 and Master’s Degree of Business Law from     Head of Internal Audit PT Adira Quantum Multifinance
Universitas Pancasila Jakarta in 2011.                     (2012-2014), Head of Operation PT Adira Quantum
                                                           Multifinance (2014-2015), Director PT Adira Quantum
He joined with the Company in 2019 as Division Head of     Multifinance (2016-2017), Head of New Business
Internal Audit Unit until now. He was previously worked    Development PT Adira Dinamika Multi Finance Tbk
as Branch Administration Head PT Columbindo Perdana        (2015-2016) with the latest position as Head of Credit
(1999), Deputy Branch Manager PT Columbindo Perdana        Development PT Adira Dinamika Multi Finance Tbk
                                                                                                                                 REPORT
                                                                                                                                 SUSTAINABILITY




(1999-2000), Assistant Manager IT Department PT            (2017-2019).




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                 297
Page 298
  CORPORATE
  GOVERNANCE




               Education and/or Training for Internal Audit Unit
        To develop competency and understanding in supporting the duty and responsibility, the Internal Audit Unit has
        participated in trainings. The trainings participated by Internal Audit Unit in the Company in 2023 is as follows:



        CONFERENCE/TRAINING/SOCIALIZATION                              PROVIDER                      DATE & PLACE

         Enhance Auditor Career                          Smart Personality                      Jakarta, 02 June 2023

         ERP as Fraud Prevention System                  Association of Certified Fraud         Jakarta, 15 July 2023
                                                         Examiners (ACFE)

         Remote Audit Skills                             Indonesia Profesional Development      Jakarta, 31 August 2023
                                                         Center (IPDC) Training Institute

         Teknik Audit MRTI                               Veda Praxis                            Jakarta, 03 October 2023




                                                                   activities according to annual work plan prepared
               Internal Audit Unit Activity                        by carrying out a combination of onsite and offsite
               Implementation                                      audits. The internal audit process that took place
                                                                   throughout the year has been running effectively.
        Overall, implementation of Internal Audit Work Unit
        activity in 2023, includes:                                In 2023, the Company’s Anti-Fraud Unit has added
        a. Implementation of audits on network offices,            2 (two) reporting channels, including Whistleblowing
            head office business units, compliance audits on       System on the Company’s website and a special
            the implementation of the Financial Information        female investigator hotline which functions as added
            Service System (SLIK), Anti-Money Laundering and       value in implementing the Anti-Fraud detection
            Prevention of Terrorism Financing and Prevention       strategy.
            of Funding for the Proliferation of Weapons of
            Mass Destruction (APU PPT PPPSPM), and sharia, as      Internal Audit Unit plays an active role in carrying
            well as special audits on aspects of governance in     out every routine meeting with the Audit Committee
            Internal Audit in accordance with the annual audit     to discuss the Internal Audit work program, and
            plan;                                                  matters related to important findings that require
        b. Carry out the supervisory function on the agreed        management attention in accordance with the Audit
            commitments on an ongoing basis;                       Committee’s supervisory function. There were 7 Audit
        c. Organize Employee Compliance Awareness survey in        Committee meetings held in 2023.
            2023;
        d. Strengthening the anti-fraud function with the          Internal Audit Work Unit always shares information
            aim of minimizing the occurrence of fraud and the      regarding internal control in the Company. During
            quality assurance function to ensure the quality of    2023, 13 sharing activities have been carried out and
            network office operational processes is maintained.    delivered directly by the Head of the Internal Audit
        e. Implementation of the Audit Management System           Work Unit to 51 head office employees, and sharing
            (AMS) version 2023 application to support the          on the topic of Internal Control has been delivered in
            implementation of audits in network offices            monthly audit meeting activities with network office
                                                                   leaders which are held online 12 times.
        In 2023, Internal Audit Unit also independently and
        objectively performed audit activities at network          Internal Audit Work Unit periodically carries out
        offices and head office business entities, which           internal and independent reviews of the quality
        included operational audits of work processes at           assurance of the internal audit unit to ensure that
        network offices, special audits of important functions     the audit process carried out by the Company is in
        at head office, investigative audits, surveillance,        accordance with applicable standards. To increase
        ensuring Standard Operating Procedures (SOP) have          work efficiency and effectiveness and optimize the use
        been implemented as well as monitoring, testing            of resources in the audit implementation process, the
        and evaluating the effectiveness of the company’s          Company implements an IT-based audit information
        internal control system and risk management system.        system, namely the Audit Command Language
        In 2023, the Internal Audit Work Unit will carry out       (ACL) system which is built based on standard audit




298
Page 299
PT BUSSAN AUTO FINANCE




                                                                                                                            HIGHLIGHTS
                                                                                                                            PERFORMANCE
methodology and is used to support the management          internal control function in the Company’s network
of the audit work process. This system is used to assist   offices starting from risk identification, measurement,
the Company in detecting potential fraud that occurs       control and monitoring as the first line of defense; and
in network offices or at the Company’s head office.        coordinate with the second line of defense and third
                                                           line of defense within the scope of internal control.
Internal Audit Work Unit also continues to sharpen         ICA has carried out its responsibilities well, such as
plans for improving audit findings and strengthening       disseminating monthly Anti-Fraud Bulletins and




                                                                                                                            REPORT
                                                                                                                            MANAGEMENT
the process of monitoring the implementation of            periodic Anti-Fraud Awareness videos to all employees
these improvement plans, improving audit working           under its responsibility, reporting indications of fraud
papers and carrying out independent internal control       that arise through the PRFC to the Anti-Fraud unit at
assessments by network office leaders to increase          the head office, as well as helping to build awareness
awareness of internal control in each network office.      in network offices regarding prudent control, integrity
                                                           and anti-fraud.
Role of 464 Internal Control Ambassadors (ICAs) will
continue to be optimized in 2023 to strengthen the




                                                                                                                            PROFILE
                                                                                                                            CORPORATE
                                                                                                                            DISCUSSION & ANALYSIS
                                                                                                                            MANAGEMENT
                                                                                                                            GOVERNANCE
                                                                                                                            CORPORATE
                                                                                                                            REPORT
                                                                                                                            SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                            299
Page 300
  CORPORATE
  GOVERNANCE




                     EKSTERNAL AUDITOR
                     (PUBLIC ACCOUNTANT)

                                                                     Address:
               Appointment of Company Accountant                     The Plaza Office Tower, 32nd floor
                                                                     Jl. M.H. Thamrin Kav 28-30
        The Company has appointed Independent Public                 Jakarta 10350 Indonesia
        Accountant according to provisions of OJK as stipulated
        in OJK Regulation No. 36/SEOJK.03/2017 concerning            Public Accounting Firm
        procedures for hiring Public Accountant Services and         Name:
        Public Accountant Firm in Financial Services activity, and   Imelda dan Rekan
        SEOJK No. 36/SEOJK.03/2017 concerning Procedures
        for Hiring of Public Accountant Services and Public          Number Registered:
        Accounting Firm in Financial Services Activity as revised    STTD.KAP-022/PM.223/2019
        in POJK Number 9 of 2023 cocnerning Procedures for
        Public Accountant Services and Public Accountant Firm        Address:
        in Financial Service Activity and SEOJK Number 18/           The Plaza Office Tower, 32nd floor
        SEOJK.03/2023 concerning Procedures for Hiring Public        Jl. M.H. Thamrin Kav 28-30
        Accountant Services and Public Accountant Firm in            Jakarta 10350 Indonesia
        Financial Service Activity.

        According to Circular Shareholders Resolutions as                 Supervision on External Audit
        Substitute of Extraordinary General Meetings of
        Shareholders on September 22, 2023, Public Accountant        Audit Committee supervises during the implementation
        (AP) dan Public Accountant Firm (KAP) to audit annual        of the external audit process through regular meetings
        historical financial information for fiscal year ended on    with the Public Accountant to discuss plans to inspect all
        December 2023 has been appointed. The Appointment            findings and developments during the audit conducted
        was executed by considering suggestion from the              by the Public Accountant, assist and ensure that there
        Board of Commissioners as well as considering advise         are no obstacles in conducting the audit and evaluate
        from Audit Committee. The Public Accountant and              the quality of the audit process, ensure that the audit is
        Public Accountant Firm Appointment Report has been           in accordance with applicable regulations and standards.
        submitted to OJK.
                                                                     According to POJK No. 9 of 2023 concerning Procedures
        The Company’s Public Accountant and Public Accountant        for Hiring Public Accountant Services, considerations
        Firm for 2023 is as follows:                                 in the recommendations for the Public Accountant
                                                                     and Public Accountant Firm submitted by the Audit
        Public Accountant                                            Committee are as follows:
        Name:
        Erny Sandjaja                                                Independency of AP, KAP and KAP Insiders Party
                                                                     AP, KAP and KAP Audit Team are independent parties
        Number Registered:                                           according to provisions of the Public Accountant
        AP registration number from the Minister of Finance:         Professional Standards and the Public Accountant
        AP.0631, according to Minister of Finance Decree             Professional Code of Ethics, as well as POJK No. 9 of
        Number 1246/KM.1/2021 dated October 8, 2021                  2023 article 32 juncto SEOJK No. 36/SEOJK.03/2017
        concerning Renewal for Public Accountant License for         concerning the independence of AP and KAP towards
        Erny Sandjaja, CPA                                           the Company, as stated in AP Independent Statement
                                                                     Letter No. 046/07/23/IR/ES dated July 6, 023. KAP has
        No. Reg                                                      also submitted letter No. 144/08/23/IR/ES dated August
        IAPI 1917 / CPA No. C- 000716                                22, 2023 which states that the audit team from KAP is
                                                                     assigned and involved in the assignment of the general
        Number Registered:                                           audit report The Company’s finances have complied with
        STTD.AP-57/NB.122/2018                                       the rotation provisions in accordance with POJK No. 9 of
        (IKNB)                                                       2023 articles 7 and 8, the Public Accountant Professional
        STTD-AP-165/PM.22/2018                                       Code of Ethics, and the provisions of Government
        (Capital Market)                                             Regulation (PP) No. 20 of 2015 article 11 concerning
                                                                     Public Accounting Practices.




300
Page 301
PT BUSSAN AUTO FINANCE




                                                                                                                                     HIGHLIGHTS
                                                                                                                                     PERFORMANCE
Scope of Audit                                                 statements are free from material misstatement. An
The scope of the Audit includes the Company’s                  audit includes performing procedures to obtain audit
Reports consisting of Statements of Financial Position,        evidence on the amounts and disclosures in the financial
Statements of Profit and Loss and Other Comprehensive          statements.
Income, Reports of changes in Equity, Cash Flow
Statements, and Notes to Financial Statements for the          The selected procedure is subject to the auditor’s
year ended on December 31, 2023, to then provide an            judgment, including an assessment of the risks of




                                                                                                                                     REPORT
                                                                                                                                     MANAGEMENT
opinion on the fairness of the presentation of Financial       material misstatement, whether due to fraud or error. An
Statements. The Company complies with Indonesian               audit also includes assessing the appropriateness of the
Financial Accounting Standards.                                accounting policies used and the appropriateness of the
                                                               accounting estimates made by management, as well as
Fees for Audit Services                                        evaluating the overall financial statement presentation.
In the opinion of the Audit Committee, the audit fees          In making a risk assessment, the auditor will consider
offered by KAP Imelda and Partners are included in the         internal control relevant to the preparation of the entity’s
fairness value, in accordance with the scope of their work.    financial statements.

Expertise and Experience of KAP and Audit Team of              The methodology to be used is as follows:
KAP                                                            • Obtaining an adequate understanding of internal
AP, KAP and the Audit Team have the competence,                   control to plan the audit and determine the nature,




                                                                                                                                     PROFILE
                                                                                                                                     CORPORATE
expertise, and experience in accordance with the auditing         timing and scope of audit procedures to be performed;
standards set by the Indonesian Institute of Certified         • Examination, on a test basis, evidence supporting the
Public Accountants (IAPI). AP and KAP are also registered         amounts and disclosures in the financial statements;
with OJK and affiliated with International KAP.                • Inquiries with those charged with governance
                                                                  regarding their views on the risk of fraud, as well as
•   AP Erny Sandjaja                                              whether those charged with governance are aware of
    Public Accountant (AP) Erny Sandjaja is an Auditor            fraud or suspected fraud affecting the company;
    and Assurance Partner at KAP Imelda & Rekan which          • Assessment of accounting policies used and
    is registered with the Non-Bank Financial Industry            significant estimated made by management:
    OJK (IKNB) with Number STTD.AP-57/NB.122/2018              • Assessment on overall financial statements
    dated February 9, 2018, and the Capital Market with           presentation.




                                                                                                                                     DISCUSSION & ANALYSIS
                                                                                                                                     MANAGEMENT
    Number STTD. AP-165/PM.22/2018 dated 5 February
    2018. He has professional qualifications including         Benefits of Fresh Eye Perspectives obtained through
    Certified Public Accountant (CPA) Indonesia and            Replacement of KAP and Audit Team from KAP
    Chartered Accountant (CA) Indonesia with 27                The appointment of KAP Imelda & Partners in 2023
    years of experience as an auditor, both in local and       becomes the fifth assignment that still complies with
    multinational companies, listed or non-listed.             provisions of POJK No. 9 of 2023 concerning the Hiring
                                                               of Public Accounting Services and Public Accounting
•   KAP Imelda & Rekan                                         Firms in Financial Services Activities. The appointment
    KAP Imelda & Rekan is one of the big four KAPs in          of KAP Imelda & Partners will still provide the benefit of
    Indonesia which is a member of Deloitte Touche             a good fresh eye perspective for the Company, including
    Tohmatsu Limited, which has been registered with the       by replacing part of the audit team.
    Financial Services Authority based on the OJK Public
    Accounting Office Registration Certificate Number          On the other hand, for AP Erny Sandjaja, the assignment
    STTD.KAP-022/PM. 223/2019 dated June 28, 2019.             in 2023 is the fourth year cumulatively after the cooling
                                                               off period in 2020 and 2021, so it is still hoped that
•   Tim Audit                                                  he can provide a more objective view of the Company.
    The assigned Audit Team consists of professionals          Thus, the AP assignment in 2023 also meets the
                                                                                                                                     GOVERNANCE
                                                                                                                                     CORPORATE




    with extensive experience in providing audit services,     provisions of POJK No. 9 of 2023 article 7 paragraph 1
    including in the financial services sector. In addition,   concerning the Use of Public Accounting Services and
    the audit team is also supported by professionals          Public Accounting Firms in Financial Services Activities,
    specializing in risk management, information systems       which limits the use of audit services from the same AP
    and taxation related to the financial industry.            for 7 (seven) cumulative years.

Technique Methodology and Audit Facilities Used by             Potential Risks of Consecutive Use of Audit Services by
KAP                                                            the Same KAP for a Fairly Long Period of Time
The Audit Committee considers that the audit                   KAP Imelda & Partners started audit assignments
methodology to be used by KAP Imelda & Partners is             for the 2019 financial year, thereby in 2023 will be
in accordance with the applicable Audit Standards. The         the fifth appointment, while for Public Accountants
audit will be carried out based on auditing standards          2023 will be the fourth year cumulatively auditing the
set by the Indonesian Institute of Certified Public            Company. Recently, there has not been any potential
Accountants. These standards require auditors to comply        risk that is identical to the risk of using audit services by
                                                                                                                                     REPORT
                                                                                                                                     SUSTAINABILITY




with ethical requirements and plan and perform audits in       the same KAP in succession. This is based on previous
order to obtain reasonable assurance that the financial        year’s experience, KAP Imelda & Partners can meet the




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                     301
Page 302
  CORPORATE
  GOVERNANCE




        expectations of Management and the Audit Committee,
        especially regarding independence.                                 Reporting

        Results of the Evaluation of the Implementation of            The report on the appointment of the Public Accountant
        the Providing of Audit Services on Annual Historical          and Public Accounting Firm has been reported through
        Financial Information by AP and KAP in the Previous           Company letter No. BAF/262/CP/X/2023 dated 6
        Period                                                        October 2023 concerning Report on the Appointment of
        Audit Committee has submitted results of its evaluation       the Company’s Public Accountant and Public Accounting
        of the implementation of audit services for annual            Firm. This report has also been submitted to the public by
        historical financial information by AP and KAP in             IDXnet and SPE OJK on October 9, 2023.
        the previous period through the Company’s Audit
        Committee letter dated June 12, 2023. This report has         The Company has also reported the evaluation of the
        then been followed up by the Company and has been             Company’s Public Accountant and Public Accounting
        submitted to the OJK via letter No. BAF/154/CP/VI/2022        Firm for the previous period through Company letter
        dated June 12, 2023 concerning the Audit Committee’s          No. BAF/409/CP/XII/2022 dated December 2, 2023
        Evaluation Results Report on Implementation of Audit          concerning Audit Committee Evaluation Report to
        Services for Annual Historical Financial Information for      Implementation of Audit Service on Annual Historical
        Fiscal Year 2022 by the Company’s AP and KAP.                 Financial Information Fiscal Year 2022 by Public
                                                                      Accountant and Public Accountant Firm.

               Effectiveness   and    Frequency  of
               Communications of Public Accountants                        Accountant and Audit Period
               and Board of Directors
                                                                      Public Accountant Firm who provides financial audit
        The communication and cooperation between the                 service in recent 5 years is explained in table below:
        Public Accountant and the Board of Directors are carried
        out intensively and regularly during the audit conducted
        by the Public Accountant.



               YEAR                  PUBLIC ACCOUNTING FIRM                            PUBLIC ACCOUNTANT’S NAME
         2023               Imelda dan Rekan                                    Erny Sandjaja

         2022               Imelda dan Rekan                                    Erny Sandjaja

         2021               Imelda dan Rekan                                    Bayu M. Dayat

         2020               Imelda dan Rekan                                    Bayu M. Dayat

         2019               Imelda dan Rekan                                    Erny Sandjaja




                                                                      Appointments are made by considering recommendations
               Audit Fee                                              of the Audit Committee. Shareholders also agree and
                                                                      state that they have granted authority to the Board of
        Based on the Circular Shareholders Resolutions in lieu        Directors to sign a cooperation agreement between the
        of the Extraordinary General Meeting of Shareholders          Company and the AP and/or KAP, including but not limited
        on September 22, 2023, the Shareholders approved the          to reporting to the OJK regarding the appointment of the
        appointment of AP Erny Sandjaja and KAP Imelda &              AP and KAP.
        Partners (member of Deloitte Touche Tohmatsu Limited)
        who are registered with the Financial Services Authority      In the case where the appointed AP and KAP, for any
        (OJK) respectively as AP and KAP of the Company to audit      reason, are unable to complete audit of the Company’s
        the annual historical financial information for Fiscal Year   financial statements for Fiscal Year 2023, the Shareholders
        2023 altogether with amount of compensation paid.             authorize the Board of Commissioners to appoint a
                                                                      replacement AP and KAP and determine the conditions




302
Page 303
PT BUSSAN AUTO FINANCE




                                                                                                                               HIGHLIGHTS
                                                                                                                               PERFORMANCE
and requirements for their appointment, including             on December 31, 2023. Total compensation paid to KAP
being registered with the OJK , has independence and          Imelda and Rekan is related to the services for carrying
has no conflict of interest with the Company, has Audit       out the audit procedures, respectively is Rp131,500,000
experience according to the Company’s business field          (excluded Value Added Tax and out of pocket costs).
and is affiliated with a recognized international public
accountant.                                                   Furthermore, the Public Accounting Firm was also
                                                              requested to review of interim financial information to




                                                                                                                               REPORT
                                                                                                                               MANAGEMENT
Total compensation paid to KAP Imelda and Partners            support the group auditor’s opinion on and for the three
related to audit services for the financial position report   month period ending 31 March 2024, 30 June 2023
for December 31, 2023, as well as the profit and loss         and 30 September 2022 (quarterly review). The total
report and other comprehensive income, change in              compensation paid to KAP Imelda and Partners related
equity report and cash flow report ending on that date        to services for reviewing interim financial information
was Rp987,075,000 (excluding Value Added Tax and out-         was Rp559,125,000 (excluded Value Added Tax and out
of-pocket costs), while in 2023, the audit services fee for   of pocket costs).
annual financial reports was Rp922,500,000 (excluding
Value Added Tax and out of pocket costs).
                                                              Public Accounting Firm is also asked to carry out agreed
                                                              procedures in relation to fulfilling PT Bussan Auto
     Other Non-Financial Audit Services                       Finance’s obligation to submit an Activity Report on




                                                                                                                               PROFILE
                                                                                                                               CORPORATE
                                                              the Implementation of the Prudential Principle (“KPPK
In 2023, the appointed Public Accountant Firm was also        Report”) in Corporate Foreign Debt Management
requested to provide audit services for the Company’s         for the Fourth Quarter ending December 31, 2023 in
consolidation package audit on December 31, 2023 and          accordance with with Bank Indonesia Circular Letter No.
for the year ended on that date. The total compensation       17/3/DSta dated 6 March 2015 and its amendments in
paid to KAP Imelda and Partners related to audit services     Bank Indonesia Circular Letter No. 17/24/DSta dated
for the reporting package was Rp138,075,000 (excluded         October 12, 2015 concerning Reporting on Activities
Value Added Tax and out of pocket costs).                     for Implementing the Prudential Principle in Managing
                                                              Foreign Debt of Nonbank Corporations, amounting to
In addition, the Public Accounting Firm was also requested    Rp42,000,000 (excluded Value Added Tax and out-of-
to carry out limited audit procedures on internal control     pocket costs).




                                                                                                                               DISCUSSION & ANALYSIS
                                                                                                                               MANAGEMENT
to support the group auditor’s opinion for the year ended




                                                                                                                               GOVERNANCE
                                                                                                                               CORPORATE
                                                                                                                               REPORT
                                                                                                                               SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                               303
Page 304
  CORPORATE
  GOVERNANCE




                RISK
                MANAGEMENT




                                      The Company realizes that appropriate and robust
                                      risk management and internal control process become
                                      essential parts of the Company’s operations and
        THE COMPANY BELIEVES THAT     activities. Therefore, to support better business processes
        ROBUST RISK MANAGEMENT        through an effective risk management approach,
                                      in 2023, the Company continuously transforms by
        BECOMES THE MAIN FOUNDATION   focusing on development of various risk management
        AND FUNDAMENTAL FOR THE       infrastructures and strengthening the risk management
                                      culture to manage the risk effectively as well as optimize
        COMPANY’S SUCCESS.            returns and sustainable business growth.


                                           Overview of the Risk Management
                                           System
                                      Implementation of risk management is adjusted to
                                      the objectives, business policies, size and complexity of
                                      the Company’s business by considering the conditions
                                      and potential risks expsoure. The risk management
                                      implementation in the Company becomes a minimum
                                      reference for the Company to ensure that all of the




304
Page 305
PT BUSSAN AUTO FINANCE




                                                                                                                               HIGHLIGHTS
                                                                                                                               PERFORMANCE
Company’s risks exposure can be identified, measured,
controlled and monitored appropriately.                            Risk Management Work Guidelines

Referring to Article 3 POJK No. 44 of 2020 concerning        The Risk Management Work Guidelines are adjusted
the Implementation of Risk Management for Non-               and aligned with the objectives, business policies, size
Bank Financial Services Institutions, the Company            and complexity of the company. The Company’s Risk
implements risk management on 4 (four) interrelated          Management Work Guidelines are regularly reviewed




                                                                                                                               REPORT
                                                                                                                               MANAGEMENT
pillars, as follows:                                         with the latest update in 2023 related to Risk-Based
• Active monitoring by Board of Directors, Board of          Approach AML CTF & PPPSPM, The Risk Management
     Commissioners and Sharia Supervisory Board (DPS);       Implementation Guideline including setting-up the
• Adequacy of risk management policies and                   Company’s risk appetite and risk tolerance for 2023,
     procedures as well as risk limit set-up;                SOP for Risk Management Implementation, Memo
• Adequacy of risk identification, measurement,              for Approval of External Incident Reports, Memo for
     control and monitoring processes as well as risk        Approval of Critical Incident Criteria, Memo for Approval
     management information systems; and                     of for Parameters of Suspicious Financial Transactions
• Comprehensive internal control system.                     and Cash Financial Transactions, Memo for Approval of
                                                             Significant Fraud.

     Legal Framework of Establishment
                                                                   Risk Management Unit




                                                                                                                               PROFILE
                                                                                                                               CORPORATE
Implementation of risk management in the Company
refers to POJK No. 44/POJK.05/2020 concerning Risk           Structure and Position
Management Implementation for Non-Bank Financial             The organization structure of the Company’s Risk
Services Institutions altogether with the implementing       Management and Compliance Function is in the same
regulations. The Company also refers, among others,          Division which was established in mid-2019 which is
to POJK No. 28/POJK.05/2020 concerning Assessment            adjusted to the size and complexity of the business
of the Soundness of Non-Bank Financial Services              and the inherent risks that exist in the Company.
Institutions including its implementing regulations, and     The Risk Management & Compliance Division (Risk
POJK No. 29/POJK.05/2019 concerning Amendments               Management & Compliance Division) or hereinafter
to POJK Number 30/POJK.05/2014 concerning Good               referred to as (“RMC”) is assigned in the Second Line of
                                                             Defense within the company’s organizational structure,




                                                                                                                               DISCUSSION & ANALYSIS
                                                                                                                               MANAGEMENT
Corporate Governance for Financing Companies, POJK
No. 4 /POJK.05/2021 concerning the Risk Management           which is independent against business and operational
Implementation in Information Technology Application         functions as well as the Company’s internal control or
by Non-Bank Financial Services Institutions, altogether      Internal Audit Unit (SKAI) functions.
with the implementing regulations.
                                                             The RMC Division Head is directly responsible to the
                                                             Board of Directors in charge of the Risk Management
                                                             and Compliance Function. Organization structure of
                                                             the Compliance and Risk Management Directorate is as
                                                             follows:




                                                        DIRECTOR
                                                                                                                               GOVERNANCE
                                                                                                                               CORPORATE




                                              HEAD OF RISK MANAGEMENT
                                                  AND COMPLIANCE




                RISK MANAGEMENT HEAD                                             COMPLIANCE HEAD




                                 RISK INTELLIGENCE &                              COMPLIANCE JR.
   RISK MANAGEMENT JR.           ANALYTICS MANAGER                                  SPECIALIST
        SPECIALIST                 (RISK MANAGEMENT
                                  INFORMATION SYSTEM)
                                                                                                                               REPORT
                                                                                                                               SUSTAINABILITY




 RISK MANAGEMENT STAFF                                             COMPLIANCE STAFF             COMPLIANCE STAFF




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                               305
Page 306
  CORPORATE
  GOVERNANCE




        Authorities and Responsibilities of the Risk               Professional Qualification or Certification
        Management Function                                        The Company has established adequate qualifications
        Authorities and responsibilities of the Risk Management    for Division Heads and personnel assigned in the
        Function are as follows:                                   RMC work function in terms of education, track record
        a. Identify risks including inherent risks in the          of executive officers and related members, work
           Company’s business activities;                          experience to ensure that all personnel in charge in
        b. Develop risk measurement methods;                       the Risk Management Function have been certified
        c. Oversee implementation of risk management               according to prevailing provisions and regulations.
           strategies that have been prepared by the Board of
           Directors;                                              RMC Division Head Profile
        d. Oversee the company’s overall risk position, by risk    As of December 31, 2023, RMC Division Head is served
           type of risk and per type of functional activity and    by Yulius Ariyasatya. He was appointed based on the
           carry out assessment based on assumptions on a          Approval Memo disclosed in the Approval of Organization
           condition using available historical data;              Structure and Job Function for Risk Management and
        e. Review the risk management process periodically;        Compliance Division dated May 15, 2019.
        f. Review the proposed business activities development
           or expansion;                                           Indonesian citizen, 37 years old. He holds a Bachelor’s
        g. Evaluate model and validity of the data used for the    degree from Bina Nusantara University majoring
           risk measurement;                                       Computer in 2008 and Master of Management from
        h. Provide recommendations to business and                 BiNus Business School in 2014. He has experience and
           operational functions and/or to the Risk                worked as a Management Trainee from the Graduate
           Management Committee according to their                 Associate Management Program (GMAP) with his last
           authorities; and                                        assignment as Loan Work Out Assistant Manager at PT
        i. Prepare and submit risk profile reports to the          Bank Permata, Tbk. He has also worked as Corporate
           President Director or equal level, or members of the    and Commercial Banking Policy and Portfolio in the Risk
           Board of Directors in charge in the Risk Management     Management Division at PT Bank UOB Indonesia, and
           Function and the Risk Management Committee              as Retail Credit Risk Management Department Head at
           regularly.                                              PT Bank CTBC Indonesia. He joined the Company since
                                                                   June 2019.
        In 2023, RMC has further established a Risk Intelligence
        and Analytics function. This becomes a systematic          Competency Development and Certification Program
        approach to identify, asses and manage the risks in        The RMC Division Head has completed his formal
        an organization by carrying out activities to oversee      education up to the Master’s degree from Binus
        the company’s risk position, carrying out stress tests,    Business School majoring Applied Finance. The RMC
        evaluate accuracy of the model and the validity of the     Division Head has also obtained Risk Management
        data used in the Risk Management Information System,       Certification for Executive Officers organized by the
        thereby the increasing risk exposure can be monitored      Risk Management Certification Agency (BSMR). In
        and reported for analysis to respond the exposure.         2023, the Division Heads and/or members in the Risk
                                                                   Management Function have participated in various
                                                                   trainings/seminars/workshops, as follows:



        TRAINING/PUBLICATION/NATIONAL CONVENTION                        DATE & PLACE                   PROVIDEDR

         ISO 27001: Information Security Management System         February 27, 2023            Company
         (ISMS)

         ISO 27001: ISMS Socialization                             March 9, 2023                PT. VEDA PRAXIS


         Indonesia Economic Outlook 2023 & 2024 “Parity and        June 8, 2023                 Indo Premier Securities
         Stability”

         Lean Six Sigma                                            September 21, 2023           Lean Six Sigma
                                                                                                Consultant of SSCX
                                                                                                International

         Professional Development                                  October 19, 2023             Company

         Leadership Bootcamp                                       November 17, 2023            ELTOV Learning

         Anti Fraud Awareness                                      November 14, 2023            Company

         Program Refreshment Sertifikasi Manajemen Risiko          October 27, 2023             LPPI



306
Page 307
PT BUSSAN AUTO FINANCE




                                                                                                                            HIGHLIGHTS
                                                                                                                            PERFORMANCE
                                                              (thirty three) new policies and/or procedures
     Risk Management Implementation                           related to the Company’s operations made by
                                                              various relevant divisions within the company.
According to OJK Regulation No. 44/POJK.05/2020
concerning Risk Management Implementation for Non-         3. Adequacy of the Risk Identification,
Bank Financial Services Institutions, the Company has         Measurement, Monitoring, and Controlling
implemented Risk Management based on the Guidelines           Process and Risk Management Information




                                                                                                                            REPORT
                                                                                                                            MANAGEMENT
for the Implementation of Risk Management, which              System
includes:                                                     In assessing adequacy of prospective debtors, the
                                                              Company is supported by Credit Scoring by the
1. Active Monitoring from Board of Directors, Board           Pefindo Credit Bureau and the Directorate General
   of Commissioners and Sharia Supervisory Board              of Population and Civil Registration (Dukcapil)
   • Active monitoring of the Board of Directors and          system related to the use of population data. In
       Board of Commissioners is carried out, among           the acquisition process, the Company has carried
       other, by held 31 (thirty-one) Board of Directors      out a survey process through Mobile Survey to
       meetings, 6 (six) Board of Commissioners               obtain accurate results using the latest technology.
       meetings, and 4 (four) Board of Directors and          The Company has also collaborated with service
       Board of Commissioners joint meetings in 2023.         providers for the Debtor Due Diligence (Customer
   • In line with the supervisory function conducted          Due Diligence) process that has been registered and




                                                                                                                            PROFILE
                                                                                                                            CORPORATE
       by Sharia Supervisory Board, in 2023, the Sharia       has obtained permission from the Financial Services
       Supervisory Board held 12 (twelve) meetings            Authority (OJK). This is done by the company to
       and discussions.                                       support the efficiency of the acquisition process in
   • In 2023, the Company organized meetings                  the Company’s business processes.
       and discussions related to risk management
       within the Risk Management Committee and               In terms of monitoring debtor payments, the
       Risk Monitoring Committee which will be held           Company has run Mobile Collection, the Company
       every quarter, namely in February, May, August,        continues to improve tele collection performance.
       and November. The discussion agenda for this           In addition, risk control is also carried out by SKAI
       meeting includes updating Risk Management              which periodically conducts inspections of network
       Policy, Company Health Level, Compliance               office operations and the Risk Management Work
       Monitoring, implementation of Risk Control Self




                                                                                                                            DISCUSSION & ANALYSIS
                                                                                                                            MANAGEMENT
                                                              Unit (SKMR) which has used the Risk Assessment
       Assessment (RCSA), implementation of External          Analysis tool to align the Risk Management
       Event Reporting (Operational Risk Event),              process in accordance with POJK 44 issued in 2020
       Implementation of a culture of risk awareness          concerning Implementation of Risk Management
       and compliance and Implementation of Risk              for Non-Bank Financial Services Institutions.
       Management in Use of Information Technology.
   • As part of the active monitoring from the Board          The Company has several initiatives for the
       of Directors and Board of Commissioners,               implementation of information technology systems
       internal control and implementation of good            which of course have been developed several years
       governance, the Company also has other                 previously in the form of the fourth generation
       committees under the Board of Commissioners            Core system (ConFins – R2) which was developed
       such as Audit Committee and the Nomination             since the end of 2016 which has been implemented
       and Remuneration Committee. The Company                comprehensively in 2018 to support the
       has 6 (six) committees under the Board of              implementation of a more diverse company business
       Directors, such as Social Responsibility (CSR)         operations. The Company also developed several
       Committee, Business Continuity Management              systems such as the acquisition process (SANDIA)
       Committee, Occupational Health and Safety              and the Credit process (BAF Pro). The Company has
                                                                                                                            GOVERNANCE
                                                                                                                            CORPORATE




       Committee, Information Technology Steering             also conducted regular disaster recovery drills to
       Committee, and Digitalization Committee.               ensure the continuity of the company’s business in
                                                              the event of a disaster.
2. Adequacy of Policies, Procedures, and
   Determination of Risk Limits                            4. Comprehensive Internal Control System
   In 2023, the Company has updated policies                  The internal control system implemented includes:
   including the implementation of Risk Management            • Implementation of the three lines of defense in
   Guidelines, Compliance Standard Policies, Anti-               the Company’s structure.
   Money Laundering Guidelines, Prevention of                 • Provide continuous training for the development
   Terrorism Financing and Prevention of Funding for             of a risk-aware culture, compliance-awareness to
   the Proliferation of Weapons of Mass Destruction              the implementation of APU PPT PPPSPM.
   (APU PPT PPPSPM) as well as several updated                • Publish the MARi PATUH (Risk Management and
   policies and/or procedures adapted to be in line              Compliance) bulletin and regularly circulate the
   with the Company’s strategies and business                    bulletin to the Executives at network office to be
                                                                                                                            REPORT
                                                                                                                            SUSTAINABILITY




   activities and align with regulatory reforms                  disseminated to their teams.
   issued in 2022. The Company has issued 33




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                            307
Page 308
  CORPORATE
  GOVERNANCE




           •    Perform Whistleblowing System socialization to        •   Reputation risk is the result of a decrease in the
                the employees.                                            level of stakeholder trust stemming from negative
           •    Maintain fast-reporting line for violations               perceptions of the Company.
                committed by employees.
           •    Perform coordination among related divisions          The implementation of Risk Management for each risk
                to ensure compliance with the Company’s               profile in the Company is as follows:
                compliance with prevailing laws and regulations.
           •    Examine operations of network offices and head
                offices by the Company’s SKAI and ensuring            STRATEGY RISK
                commitments for improvements are carried out
                by network offices or related divisions.              Active Monitoring from the Board of Directors, Board
           •    Report SKAI findings to the Audit Committee.          of Commissioners and Sharia Supervisory Board
           •    Implementation of Measurable Improvement
                Plans (audit results monitoring).                     •   Board of Directors and the Board of Commissioners
           •    Implementation of Risk Control Self Assessment            have ensured that the implementation of Risk
                at National level.                                        Management for Strategic Risk is carried out
           •    Internal Control Ambassador (ICA) as part of the          effectively and integrated with the implementation
                implementation of internal control in network             of Risk Management for other Risks that may impact
                offices                                                   on the Company’s overall Risk profile;
           •    Reporting external events that can affect             •   In 2023, the Company has held regular meetings
                operational activities (Operational Risk Event)           for the Risk Management Committee and the Risk
           •    CAMP TEST (Compliance AML CFT & PFPMDW                    Monitoring Committee as a form of implementation
                Mandatory Program Test)                                   of the Active Supervision of the Board of Directors,
           •    Has implemented the Customer Protection                   Board of Commissioners and Sharia Supervisory
                Function                                                  Board;
           •    Risk and Compliance Assurance Program by              •   The Board of Directors and Board of Commissioners
                visiting the network office.                              have prepared and approved the Company’s strategy
                                                                          and business plan for 2023, then disseminated it
                                                                          to related officials and/or employees through the
               Risk Profile and Risk Mitigation                           Senior Management Camp and National Business
                                                                          Leaders Meeting held in early 2023.
        According to OJK Regulation No. 44/POJK.05/2020               •   The Company reviews the plans and realization of the
        concerning Implementation of Risk Management for                  work programs of each division through a meeting
        Non-Bank Financial Services Institutions, and OJK                 with the President Director and the related Directors.
        Circular Letter No.11/SEOJK.05/2020 concerning the            •   The Board of Commissioners evaluates 4 (four) times
        Assessment of the Health Level of Financing Companies             which will be held at the Joint Meeting of the Board
        and Sharia Financing Companies, there are 8 (eight)               of Directors and the Board of Commissioners in 2023.
        types of risks as follows:                                        In addition, in 2023, the Board of Commissioners
        • Strategic risk is the risk due to inaccuracy in making          regularly held discussions with the Board of Directors
            and/or implementing a strategic decision and failure          to strengthen the supervisory function. The Board of
            to anticipate changes in the business environment             Commissioners also performed evaluation through
        • Operational risk is the risk that arises due to                 6 (six) Board of Commissioners meetings in 2023.
            inadequate and/or            malfunctioning    internal   •   The Board of Directors continuously monitors
            processes, human error, system failure and/                   internal conditions and the development of external
            or external events that affect the company’s                  factors/conditions that directly or indirectly affect
            operations.                                                   the Company’s strategy through weekly meetings
        • Credit risk is the risk due to the failure of other             with the Division Head.
            parties to fulfill their obligations to the Company.      •   The Company has a meeting attended by the
        • Market risk is the risk in the position of assets,              Company’s Board of Directors or called the
            liabilities, equity, and off balance sheet including          BOD Camp which is held annually to discuss the
            derivative transactions due to changes in overall             evaluation of the Company’s current position in
            market conditions.                                            the industry and/or in the Company’s competitors
        • Liquidity risk is the risk due to the Company’s                 (peers), which is reviewed both from various aspects
            inability to meet its maturing liabilities from cash          as well as financial and non-financial parameters.
            flow funding sources and/or from liquid assets that       •   The Board of Directors also continuously monitors
            can be easily converted into cash, without disrupting         the Company’s position with industry/competitors
            the Company’s activities and financial condition.             in the Senior Management Meeting attended by the
        • Legal risk is the risk due to lawsuits and/or                   Division Head.
            weaknesses in legal aspects.                              •   The Board of Commissioners also continuously
        • Compliance risk is the risk due to the Company not              supervises the Company’s position compared to
            complying with and/or not implementing the laws               competitors and/or industry in a joint meeting of the
            and regulations.                                              Board of Commissioners and the Board of Directors
                                                                          which is held at least 1 (one) time in 4 months.




308
Page 309
PT BUSSAN AUTO FINANCE




                                                                                                                                   HIGHLIGHTS
                                                                                                                                   PERFORMANCE
•   The Board of Directors is responsible for                         financing industry, financial performance,
    implementing risk management for strategic risk                   organization structure and risk management,
    which includes:                                                   infrastructure for current and future business
    a. ensure that the strategic goals set are in line                needs, managerial capabilities, as well as
        with the mission and vision, culture, business                the availability and limited resources of the
        direction and risk tolerance of the Company,                  Company; and
    b. provide clear direction regarding the level of Risk        c. analyze all available alternative strategies in




                                                                                                                                   REPORT
                                                                                                                                   MANAGEMENT
        to be taken (risk appetite) and risk tolerance that           order to be in line with the scale of the Company
        can be accepted by the Company;                               and the complexity of the Company’s business
    c. ensure that the structure, culture, infrastructure,            activities.
        financial condition, personnel and managerial         •   The Company has established a written strategic
        competencies including executive officers, as             plan and business plan and implemented the policy.
        well as the existing systems and controls in the      •   The Company has evaluated the strategic plan and
        Company are appropriate and adequate to                   business plan and adjusted it if there are deviations
        support the implementation of the established             from the targets to be achieved due to significant
        strategy; and                                             external and internal changes.
    d. ensure that any strategic problems that arise          •   The Company has sufficient managerial succession
        can be resolved effectively by the related                plans to support the effectiveness of sustainable
        functions and monitoring of corrective actions            strategy implementation, in the event that the




                                                                                                                                   PROFILE
                                                                                                                                   CORPORATE
        by the strategic policy function is carried out.          Company plans to implement long-term and
•   The Board of Directors is responsible for ensuring            sustainable strategies.
    that risk management for strategic risk has been          •   The Company has sufficient funding sources to
    implemented effectively and consistently at all               support the implementation of the strategic plan.
    related operational levels below. In the event            •   The Company has policies and procedures to
    when the Board of Directors delegates part of                 prepare and approve strategic plans.
    their responsibilities to executive officers and          •   The Company has adequate procedures to identify
    management below, such delegation does not                    and respond to changes in the business environment.
    eliminate the obligations of the Board of Directors       •   The Company must have a procedure to measure
    as the main responsible party.                                the progress achieved from the realization of the
                                                                  business plan and performance according to the




                                                                                                                                   DISCUSSION & ANALYSIS
                                                                                                                                   MANAGEMENT
Adequacy of Policies, Procedures, and Determination               designated schedule.
of Risk Limits
                                                              Adequacy of Risk Identification, Measurement,
•   The Company stipulated the Net Non-Performing             Monitoring, and Controlling Processes and Risk
    Financing (NPF) level in 2023 below 1% as stated in       Management Information Systems
    the Company’s business plan.
•   The Company stipulated Key Performance Indicators         •   Identification, measurement, monitoring, and
    (KPI) for the company, division and office network            control of strategic risk is carried out by the Company
    of the Company every year.                                    through regular evaluations carried out by the Board
•   The Company continuously updates the policies and             of Directors and Division Heads by referring to KPIs
    procedures of the Company’s strategy in accordance            and established business plan.
    with market conditions and the overall direction of       •   The Company has identified and administered
    the company’s strategic policies.                             deviations or deviations as a result of the unrealized
•   The Company conducts industry benchmarking                    or ineffective implementation of business strategies
    which aims to evaluate the Company’s competitive              and business plans that have been determined,
    position in the industry, including measuring the             especially those that have a significant impact on
    Company’s strengths and weaknesses related to                 the Company’s capital.
                                                                                                                                   GOVERNANCE
                                                                                                                                   CORPORATE




    its competitive position, business position, financial    •   The Company has conducted a risk analysis,
    performance, and other related parameters.                    especially on strategies that require a lot of resources
•   The Company has updated the Risk Management                   and/or are high risk, such as strategies to enter new
    Guidelines and Compliance Standards Policy as part            markets, acquisition strategies, or diversification
    of the implementation of the Company’s strategy.              strategies in the form of business activities and
•   The Company evaluates the company’s competitive               services.
    position in the industry. In this case the Company        •   The Company has carried out stress testing on
    needs to:                                                     strategy implementation to identify any events or
    a. understand the conditions of the business                  changes in the business environment that could have
         environment, economy, and finance industry               a negative impact on the fulfillment of the initial
         in which the Company operates, including how             assumptions of the strategic plan and measure the
         environmental changes impact on business,                potential negative impact of such events on both
         products, technology, and office networks;               the Company’s financial and non-financial business
    b. measuring the Company’s strengths and                      performance.
                                                                                                                                   REPORT
                                                                                                                                   SUSTAINABILITY




         weaknesses related to its competitive position,      •   The Company has systems and controls in place to
         the company’s business position in the                   monitor the implementation of business decision-




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                   309
Page 310
      CORPORATE
      GOVERNANCE




                making strategies and the Company’s response to          •   Continuous training for the development of a
                external changes, including financial performance            risk-aware, compliance-aware culture to the
                by comparing actual results with expected results, to        implementation of AML CTF PPPSPM.
                ensure that the risks taken are still within tolerance   •   Development of a Risk Assessment tool which
                limits and report significant deviations to the              includes an assessment of strategic risk and its
                Directors. The risk control system shall be approved         mitigation.
                and reviewed periodically by the Board of Directors
                to ensure its suitability on an ongoing basis.
            •   The Company has a good strategy formulation and          OPERATIONAL RISK
                determination process and has a monitoring section
                on the implementation of the company’s strategic         Active Monitoring from Board of Directors, Board of
                plan to ensure conditions after the implementation       Commissioners and Sharia Supervisory Board
                of the strategy on the Company’s business activities.
            •   The Company already has a Risk Management                •   Board of Directors and the Board of Commissioners
                information system that is used to assist in                 have ensured that the implementation of risk
                monitoring the Company’s strategy, so that data              management for operational risk is carried out
                and information can be readily available and used            effectively and is integrated with the implementation
                to analyze risks that may arise. One of them is the          of other risk management which may impact on the
                Tableau system (Business Intelligence) which is              Company’s overall risk profile.
                used by the Company in assisting and supporting          •   The Board of Directors and the Board of
                the strategic planning and decision-making process.          Commissioners have been responsible for developing
                The Tableau system is also used by network offices           an organization Establishment culture that is aware
                to monitor the achievement of predetermined KPIs.            of operational risks and fosters a commitment
            •   The Company has implemented a Risk Profile Report            to managing operational risks according to the
                as a means to monitor 8 (eight) types of risks as            Company’s business strategy.
                stated in POJK No. 28/POJK.05/2020 concerning            •   The Company’s Board of Directors has created a
                Health Level Assessment for Non-Bank Financial               culture of objective disclosure of Operational Risk in
                Services Institutions and POJK No. 44/POJK.05/2020           all elements of the organization so that Operational
                concerning the Application of Risk Management                Risk can be identified quickly and mitigated
                for Non-Bank Financial Services Institutions, which          appropriately.
                will then be used to determine the Company’s Risk        •   The Board of Directors has ensured that it has
                assessment.                                                  established a reward policy including effective
            •   The Company always conducts media monitoring of              remuneration and punishment that is integrated
                activities in the Company’s industry.                        into the performance appraisal system in order
            •   The Company also has a worksheet that regularly              to support the implementation of optimal risk
                monitors the Company’s position in the industry.             management.
            •   The Company has ensured that its management              •   The Board of Directors has ensured that the
                information system is adequate to support the                implementation of the authority and responsibility
                strategic planning and decision-making process and           transferred to the service provider has been carried
                is reviewed regularly.                                       out properly and responsibly.
                                                                         •   The Board of Commissioners has ensured that the
            Comprehensive Internal Control System                            company’s remuneration policy is in accordance
                                                                             with the Company’s Risk Management strategy.
            •   Implementation of 3 levels of defense (Three lines       •   The Board of Directors strives to prioritize
                of defense) in the Company’s structure which                 compliance to always be upheld by employees both
                consists of the Business Function, Risk Management           at the head office and in the company’s network
                & Compliance Function and the Internal Audit                 offices. Since 2020, the compliance committee
                Function;                                                    has held socialization related to implementation
            •   Establishment of a Risk Management Work Unit                 guidelines - anti-fraud as well as risk management,
                (SKMR) and a Compliance Work Unit (SKK) which                compliance and AML CTF PPPSPM materials to new
                has been carried out by the Company since the                employees, national meetings for Branch Heads,
                third quarter of 2019 which is under a separate              as well as on the occasion of visits by the Board of
                Directorate from the Business and Operational                Directors to the network office.
                Functions.                                               •   The Board of Directors has implemented a
            •   President Director who directly supervises SKAI              Whistleblowing System which aims to increase
                establishes an annual audit plan and evaluates               awareness and appropriate handling of alleged
                audit results on a regular basis with an emphasis            irregularities or violations that occur, either by
                on compliance with company procedures and                    individuals or groups within the Company.
                regulations as well as the level of efficiency and       •   The Board of Directors continues to improve and
                effectiveness of network and head office operations.         optimize risk mitigation related to the Anti-Money
            •   Online meeting for Integrated Internal Control (IIC)         Laundering Function, Counter Terrorism Financing
                meeting in 2023 involving Business, operational,             and Prevention of Funding for the Proliferation of
                RMC and SKAI functions.                                      Weapons of Mass Destruction (AML CTF PPPSPM)




310
Page 311
PT BUSSAN AUTO FINANCE




                                                                                                                                 HIGHLIGHTS
                                                                                                                                 PERFORMANCE
    including increasing continuous APU PPT PPPSPM            •   The Company has policies regarding recruitment and
    training.                                                     placement in accordance with organizational needs,
•   The Board of Directors supervises the use of third-           competitive remuneration and incentive structure,
    party services (outsourced personnel) according to            training and development, periodic rotation, career
    prevailing provisions and regulations.                        and succession planning policies, as well as handling
                                                                  the issue of termination of employment to reduce
Adequacy of Policies, Procedures, and Determination               the possibility of operational risks arising from HR,




                                                                                                                                 REPORT
                                                                                                                                 MANAGEMENT
of Risk Limits                                                    risk management policies
                                                              •   The Company must at least be supported by access
•   The Company has established a risk management                 procedures including, among others, management
    policy for operational risk that must be internalized         information systems, accounting information
    into the business processes of all business activities        systems, Risk management systems, security in
    and supporting activities of the company,                     the document room, and data processing rooms,
    including operational risk policies that are unique           to reduce the possibility of operational risks arising
    in accordance with the needs of business lines and            from systems and infrastructure, risk management
    supporting activities.                                        policies
•   The Company has procedures which are derived              •   The Company has insurance protection for the
    from the Risk Management Policy for operational               company’s physical assets, a back up system, and
    risk.                                                         work safety guarantees for certain high-risk work




                                                                                                                                 PROFILE
                                                                                                                                 CORPORATE
•   The Company already has Business Continuity                   fields. To reduce the possibility of operational risk
    Management (BCM), which is an integrated and                  arising from external events, risk management
    comprehensive management process to ensure the                policies.
    continuity of the Company’s operations. Some of           •   The Company has conducted Customer Due
    the policies that can be implemented include:                 Diligence (CDD) or Enhanced Due Diligence (EDD)
    a. assessment of operational risk that may                    regularly and consistently in accordance with
         occur due to disturbances in the company’s               Operational Risk exposure. The application of CDD
         operations;                                              or EDD refers to all requirements and guidelines as
    b. recovery strategy implemented by the company               regulated in the laws and regulations and provisions
         for any kind of disruption;                              governing the implementation of the AML CTF
    c. documentation, including disaster recovery                 PPPSPM program. CDD or EDD must be supported




                                                                                                                                 DISCUSSION & ANALYSIS
                                                                                                                                 MANAGEMENT
         plans and contingency plans; and                         by an effective internal control system, in particular
    d. testing regularly to ensure that the BCM                   the Company’s efforts to prevent internal crimes
         approach used can be operated effectively in the         (internal fraud).
         event of a fault.                                    •   The Company also has an Occupational Health and
•   The Company has an early warning procedure to                 Safety Guidelines Committee (P2K3) which routinely
    handle unexpected changes in the information                  conducts socialization on work safety through the
    technology system that have the impact of                     Company’s communication media. This committee
    increasing the possibility of Operational Risk.               is expected to be able to build mutual understanding,
•   The Company has a policy to mitigate Operational              cooperation and effective participation in the
    Risk stemming from the complexity of internal                 implementation of occupational health and safety
    processes, which at least includes:                           in the Company’s work environment. In 2020, the
    a. control to prevent the occurrence of Operational           Board of Directors has also formed a Task Force for
         Risk for all internal processes as well as those         Handling COVID-19 as a mitigation and monitoring
         related to external parties;                             measure for all company activities to support and
    b. transaction settlement procedures from                     be in line with government programs in preventing
         internal processes, among others to ensure the           and controlling the COVID-19 Pandemic.
         effectiveness of the transaction settlement          •   The Company evaluates and updates processes for
                                                                                                                                 GOVERNANCE
                                                                                                                                 CORPORATE




         process;                                                 every procedure and policy as well as instructions for
    c. accounting implementation procedures to                    the implementation of the Company’s operations or
         ensure accurate accounting records, among                business activities.
         others in the form of conformity with the
         accounting methods used, accounting processes        Adequacy of Risk Identification, Measurement,
         implemented, and administration of supporting        Monitoring and Control Process and Risk
         documents;                                           Management Information System
    d. asset storage and custodial procedures, including
         documentation of assets and custodians, controls     •   The Company has identified parameters that affect
         needed for the physical security of assets, and          operational risk exposure, including the frequency and
         periodic checks on the condition of assets;              impact of system failures and errors, administrative
    e. procedures for carrying out business activities            system weaknesses; failure of relationship with
         and other company activities, such as operating          debtors; accounting calculation errors; delays and
         leases, fee-based activities, and outsourcing; and       errors in payment settlements; fraud; accounting
                                                                                                                                 REPORT
                                                                                                                                 SUSTAINABILITY




    f. fraud prevention and resolution procedures.                engineering; weakness of information technology
                                                                  system; and misclassification of records.




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                 311
Page 312
      CORPORATE
      GOVERNANCE




            •   The Company has developed a database on the             •   In terms of operational risk control, the Company
                types and impacts of losses, caused by operational          also has information technology process security
                risks based on the results of risk identification, in       which includes audits of information system security
                the form of data on losses that may occur, both             and back-up procedures as well as Data Recovery
                predictable and difficult to predict; violation of          Center (DRC).
                control system; and/or other operational issues that    •   The Company conducts regular meetings in terms
                may cause losses in the future.                             of operational risk control through SKAI and is
            •   The Company has considered various internal                 reviewed by the Audit Committee.
                and external factors in identifying and measuring       •   The Company has a management information
                operational risk.                                           system that can provide complete and accurate
            •   The Company has considered various internal and             reports in order to detect and correct deviations that
                external factors in measuring operational risk,             occur, through the Preliminary Report of Fraud Case
                the methods used by the company to measure                  (PRFC) with the function of Anti Fraud and SMS
                operational risk, among others are scorecards, risk         hotline.
                mapping, and frequency matrix.                          •   The Company has a reporting mechanism for
            •   The Company has developed programs to mitigate              Operational Risk that must be able to provide
                Operational Risk, including securing information            information according to user needs, including the
                technology processes and outsourcing of some of             following:
                the Company’s operational activities.                       a. operational risk profile and losses caused by
            •   The Company has developed the security of                       operational risk
                information technology processes, the Company               b. results of various Operational Risk measurement
                must ensure the security level of electronic data               methods and trends, and/or summary of internal
                processing.                                                     audit findings;
            •   The Company has a support system, which at least            c. report on the status and effectiveness of
                includes:                                                       the implementation of the action plan from
                a. early identification of faults                               operational risk issues;
                b. processing and settlement of all transactions in         d. procedural deviation reports;
                    an efficient, accurate and timely manner; and           e. reports of fraud incidents, for example in the
                c. confidentiality, correctness, and security of                form of a whistleblowing system; and
                    transactions                                            f. recommendation of the risk management
            •   The Company has conducted periodic reviews                      function for operational risk on the review
                of procedures, documentation, data processing                   conducted on the Company’s operational risk
                systems, contingency plans, and other operational               assessment, external auditor guidance letter,
                practices to reduce the possibility of human error.             particularly operational control aspects, and
            •   The Company has adequate policies and procedures,               Financial Services Authority guidance letter.
                good corporate administration activities, good
                information technology and system management,           Comprehensive Internal Control System
                good fraud prevention and legal issues, and good
                management of the use of third -party services.         •   Implementation of 3 levels of defense (Three lines
            •   The Company has good HR management, including               of defense) in the Company’s structure which
                employee recruitment carried out by external                consists of the Business Function, Risk Management
                parties such as HR consultants and organizations            & Compliance Function and the Internal Audit
                that independently analyze employee needs and               Function;
                carry out the employee recruitment process.             •   Establishment of the Risk Management Work Unit
            •   The Company has conducted continuous operational            (SKMR) and Compliance Work Unit (SKK) which the
                risk monitoring of all operational risk exposures           Company has carried out since the third quarter of
                and losses that may be caused by the company’s              2019 which are under a separate Directorate from
                main activities, among others by implementing               the Business Function;
                an internal control system and providing periodic       •   The Company continues to implement internal
                reports on losses caused by Operational Risk.               controls according to the Committee of Sponsoring
            •   The Company has conducted periodic reviews of the           Organization of the Treadway Commission (COSO)
                factors that cause operational risk and the impact of       5 (SOX4), namely control environment, risk
                losses.                                                     assessment, control activities, information, and
            •   Conducting implementation of Risk Control Self              communication, and monitoring.
                Assessment (RCSA) for all network offices in 2023       •   Development of a Risk Assessment tool which
                and polot project for Head Office.                          includes an assessment of operational risks and
            •   The Company has stipulated reporting mechanism              their mitigation;
                for external event that mayaffect operational           •   The Company has a regular rotation system to avoid
                activity (Operational Risk Event)                           potential self-dealing, collusion or concealment of
            •   Identification, measurement, monitoring and                 improper documentation or transactions.
                control of operational risk is carried out by the       •   Online meeting for Integrated Internal Control (IIC)
                Company through a review of existing rules, policies        meeting in 2023 involving Business, operational,
                and procedures, among others.                               RMC and SKAI functions.




312
Page 313
PT BUSSAN AUTO FINANCE




                                                                                                                                  HIGHLIGHTS
                                                                                                                                  PERFORMANCE
•   Implementation of Risk and Compliance Assurance               by implementation; SANDIA and BAF PRO, a
    Program by SKMR and SKK by visiting network office.           centralized Credit Analyst and standardization
                                                                  of the acquisition process based on standardized
                                                                  parameters that are quite objective in assessing the
CREDIT RISK                                                       adequacy of prospective customers.
                                                              •   The Company has adequate strategies and policies
Active Monitoring from Board of Directors and Board               for handling/collecting consumers, including policies




                                                                                                                                  REPORT
                                                                                                                                  MANAGEMENT
of Commissioners                                                  for network offices to perform monitoring and
                                                                  reporting related the Company’s AR qulity. These
•   The Board of Directors always performs active                 strategies and policies will continue to be evaluated
    supervision in understanding and managing the                 and updated.
    financing risks inherent in financing business            •   The Company has policies and procedures to
    activities, by supervising each business activity             ensure that all financing distributions are carried
    through bi-weekly and monthly meetings with each              out on an arm’s length basis. In the event that the
    division.                                                     Company has a policy that allows under certain
•   The Board of Directors and the Board of                       conditions to disburse financing outside the normal
    Commissioners have participated in formulating/               policy, the policy must clearly contain the criteria,
    determining and reviewing policies and guidelines             requirements, and procedures including steps to
    for financing distribution, including risk management         control or mitigate the risk of the said financing




                                                                                                                                  PROFILE
                                                                                                                                  CORPORATE
    which is internalized in every policy taken, by holding       distribution.
    meetings to discuss financing portfolios considering      •   The Company has policies and procedures to identify
    demographic, geographic and other relevant aspects.           credit concentration risk and as well as other risks
    POJK.                                                         that can affect Credit Risk.
•   The Board of Directors has ensured that the               •   The Company’s policy contains the information
    implementation of risk management is carried                  needed in the provision of sound financing,
    out effectively in the implementation of funding              including:
    activities, among others by monitoring developments           - purpose and source of financing
    and problems in the Company’s business activities             - Risk profile of debtors and their mitigation as
    related to financing risks, including the settlement of           well as the level of sensitivity to developments in
    non-performing financing.                                         economic and market conditions




                                                                                                                                  DISCUSSION & ANALYSIS
                                                                                                                                  MANAGEMENT
•   The Board of Commissioners has ensured that the               - the debtor’s ability to repay
    implementation of risk management for credit risk             - business capabilities and conditions of the
    is carried out effectively and integrated with the                debtor’s business field as well as the position of
    implementation of effective risk management in the                the debtor in certain industries; and
    implementation of financing distribution activities,          - The proposed financing terms include
    including monitoring developments and problems in                 agreements designed to anticipate changes in
    the Company’s business activities related to credit               the debtor’s risk exposure in the future
    risk, including the settlement of non-performing          •   The Company’s policies contain factors that need
    financing.                                                    to be considered in the financing approval process,
•   The Board of Directors and the Board of                       including:
    Commissioners are responsible for all financing               - profitability level, among others by conducting
    distribution activities carried out in accordance with            a comprehensive analysis of cost and revenue
    the credit risk strategies and policies approved by the           estimates, including estimated costs in the
    Board of Commissioners and in accordance with the                 event of default, as well as calculating capital
    provisions of the applicable laws and regulations.                requirements; and
•   The Board of Directors and the Board of                       - consistency of pricing, which is carried out by
    Commissioners have ensured that the implementation                considering the level of risk, in particular the
                                                                                                                                  GOVERNANCE
                                                                                                                                  CORPORATE




    of risk management is carried out effectively in                  overall condition of the debtor as well as quality
    the implementation of financing or investment                     and level of ease of disbursement of the assets
    distribution      activities,  including    monitoring            used as collateral
    developments and problems in the Company’s                •   The Company has procedures for analyzing,
    financing or investment distribution activities.              approving, and administering financing, which
•   The Board of Commissioners monitors the distribution          include:
    of financing including reviewing the distribution of          - delegation of authority in the procedure for
    financing in large amounts or those given to related              making decisions on financing distribution
    parties in accordance with the provisions of the                  which must be clearly formalized;
    prevailing laws and regulations.                              - segregation of functions between those
                                                                      conducting analysis, granting approval, and
Adequacy of Policies, Procedures, and Determination                   administering financing within the framework
of Risk Limits                                                        or mechanism for the delegation of decision-
                                                                      making procedures for financing distribution;
                                                                                                                                  REPORT
                                                                                                                                  SUSTAINABILITY




•   The strategy and policy for disbursement of                   - a function that conducts periodic reviews to
    financing have been adequate and supported                        determine or update the quality of financing




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                  313
Page 314
      CORPORATE
      GOVERNANCE




                    distribution exposed to credit risk;                      handling problematic financing is administered and
                - financing administration system development                 then used as input for the benefit of the function
            •   The Company has set a limit for overall financing             which functions to channel or restructure financing.
                distribution for all of the Company’s business            •   The Company has developed and implemented a
                activities that contain Credit Risk, both for related         comprehensive information system and procedures
                and unrelated parties, as well as for individuals and         to monitor the composition and condition of each
                groups of debtors.                                            debtor or counterparty to the Company’s entire
            •   The Company has implemented risk tolerance for                financing portfolio. The system must be in line
                Credit Risk.                                                  with the characteristics, size and complexity of the
            •   The determination of credit risk limits has been              Company’s portfolio.
                documented in writing which facilitates the               •   The Company has a Business Intelligence & Analytics
                establishment of an audit trail for the benefit of            Division which has the responsibility to carry out data
                internal and external auditors.                               processing and analysis including for Credit Risk;
                                                                          •   The Company has an adequate and timely
            Adequacy of Risk Identification, Measurement,                     management information system to identify Credit
            Monitoring, and Controlling Processes and Risk                    Risk for all debtors, such as Tableau.
            Management Information Systems                                •   Analysis of debtors prepared by the Credit Division
                                                                              includes debtor profiling, debtor segmentation,
            •   The credit risk management framework that is in               demographic and geographic analysis.
                place is adequate where there has been a separation       •   The Company in screening potential debtors is
                between Marketing duties and Credit Analyst duties            supported by Credit Scoring by the Pefindo Credit
                and is supported by the implementation of Mobile              Bureau, the Company has also collaborated with the
                Survey, Welcoming Call (for new customers) and                Dukcapil system.
                Account Receivable Officer (ARO) monitoring to            •   The existing information system is able to
                monitor and evaluate field officers regularly. The            accommodate Credit Risk mitigation strategies
                Company has implemented Collection Management                 through various methods or policies, for example
                System (CMS) in all network offices to monitor                setting limits, hedging and asset securitization.
                collection activity and up-to-date data/information,      •   The risk management information system for credit
                by integrating Call Collection & Field Collection.            risk is capable of providing accurate, complete,
                With this CMS, the entire process can be digitalized          informative, timely and reliable data.
                and can be done promptly.
            •   The Company has already had a pre-scoring which           Comprehensive Internal Control System
                provides recommendations for further analysis by
                the Credit Analyst.                                       •   Implementation of 3 Lines of Defense in the
            •   The Customer Due Diligence process is carried out             Company structure consisting of Business Function,
                for each new customer (before approval) by visiting           Risk Management & Compliance Function and
                the customer’s home by the CMO and interviewing               Internal Audit Function;
                by telephone by the Credit Analyst.                       •   The existence of a Risk Management Work Unit
            •   The Enhanced Due Diligence process is also carried            (SKMR) and a Compliance Work Unit (SKK) which
                out adequately for some new consumers by carrying             are under a separate Directorate from the Business
                out random visits by the Chief CMO to minimize                Function;
                financing risks.                                          •   Developing a Risk Assessment tool which includes
            •   Network offices also carry out a due diligence                an assessment of credit risk and its mitigation;
                process with consumers on a regular basis and             •   Credit Division which is separate from marketing
                report the results to the APU, PPT & PPPSPM Support           and collections, and carries out regular reviews
                Team in the event that there are suspicious financial         of financing risks arising from the portfolio and
                transactions or cash financial transactions.                  exposure to financing receivables.
            •   The Company has fulfilled the adequacy of reserves        •   There are coordination meetings between divisions
                by conducting historical data analysis and regular            related to handling financing risks which are held
                reviews and discussed at Board of Directors meetings.         periodically.
            •   The Company has written systems and procedures            •   The Company has an independent and continuous
                for measuring credit risk.                                    review system for the effectiveness of the
            •   The Company has ensured that the credit function              implementation of the risk management process for
                and other functions that carry out transactions               credit risk which includes at least an evaluation of
                exposed to Credit Risk have functioned adequately             the financing administration process, an assessment
                and that Credit Risk exposure is maintained                   of the accuracy of the application of internal ratings
                consistent with established limits and meets                  or the use of other monitoring tools, and the
                prudential standards.                                         effectiveness of the implementation of functions or
            •   The Company has an effective system for detecting             officers who carry out quality monitoring accounts
                problematic financing. In addition, the Company               receivable financing;
                must separate the function of resolving problematic       •   The Company has an internal review system by
                financing from the function that decides the                  individuals independent of the business units to help
                distribution of financing. Every strategy and result of       evaluate the overall financing process, determine




314
Page 315
PT BUSSAN AUTO FINANCE




                                                                                                                                     HIGHLIGHTS
                                                                                                                                     PERFORMANCE
    the accuracy of internal ratings, and to assess the            categorize consumers.
    accuracy of account officers in monitoring individual      •   The Company has set projections for assets and
    financing;                                                     liabilities in the Company’s business plan report.
•   The Company has an efficient and effective reporting       •   The Company has established indicators which are
    system to provide adequate information including               early warning indicators for liquidity risk as a means
    information regarding country risk exposure to the             of identifying problems and determining Liquidity
    Board of Directors, Board of Commissioners and                 Risk mitigation




                                                                                                                                     REPORT
                                                                                                                                     MANAGEMENT
    Audit Committee; And                                       •   The Company has carried out stress testing on
•   Internal audit of the Credit Risk process is carried           liquidity risk that is adjusted to the company’s
    out periodically.                                              fund management strategy so that it can properly
                                                                   describe the company’s liquidity risk profile
                                                               •   Liquidity risk limits are consistent and relevant
LIQUIDITY RISK                                                     to the Company’s business, the complexity of
                                                                   the Company’s business activities, risk tolerance,
Active Supervision of the Board of Directors and                   characteristics of business activities, currency, the
Board of Commissioners                                             market in which the Company is actively conducting
                                                                   transactions, historical data, profitability level, and
•   Total assets in 2023 to Rp14.1 trillion with good              available capital.
    funding sources, so the gearing ratio figure remains       •   The policy regarding limits has been consistently




                                                                                                                                     PROFILE
                                                                                                                                     CORPORATE
    relatively low and is still within the scope required by       applied to manage Liquidity Risk, among others,
    regulations for finance companies.                             to limit the funding gap in various time periods
•   The Company has a policy to protect all foreign                and/or limit the concentration of funding sources,
    currency loans through hedging/cross currency swap             instruments or spesific market segments.
    contracts to avoid any risk from foreign currency
    fluctuations against the Indonesian Rupiah.                Adequacy of Risk Identification, Measurement,
•   The Board of Directors establishes policies and            Monitoring, and Controlling Processes and Risk
    procedures regarding asset and liability risk which        Management Information Systems
    includes disbursement of daily, medium-term and
    long-term financing, as reflected in the funding plan      •   Identification, measurement, monitoring and
    prepared by the Corporate Finance Division and                 control of asset and liability risk is carried out among




                                                                                                                                     DISCUSSION & ANALYSIS
                                                                                                                                     MANAGEMENT
    approved by the relevant Director.                             others by developing a Liquidity Risk Profile that can
•   The Board of Directors reports regularly on the                be used to identify and monitor the Company’s
    Company’s assets and liabilities to the Board of               assets and liabilities.
    Commissioners through joint meetings of the Board          •   The Board of Directors routinely conducts analysis
    of Commissioners.                                              to determine the number of assets owned and the
•   The Board of Directors and the Board of                        number of liabilities that shall be fulfilled by the
    Commissioners have ensured that risk management                company to avoid mismatches between assets and
    for liquidity risk is carried out effectively and              liabilities.
    integrated with other risk management which may            •   The Company also monitors related macroeconomic
    impact on the overall risk profile of the Company.             factors carried out by the Corporate Finance Division.
•   The Board of Directors has ensured that every              •   The Company has sufficient adequacy of policies,
    function responsible for managing liquidity risk has           procedures, and clear determination of authority/
    human resources with adequate competence.                      responsibility for each unit/work unit that carries
•   The Board of Directors has ensured that the                    out the Risk Management Function for risk of fund
    Company has sufficient funding capacity through a              support (capital).
    series of periodic evaluations.                            •   The Board of Directors monitors the Company’s
•   The Board of Directors has ensured that the                    capital including the level of financial soundness in
                                                                                                                                     GOVERNANCE
                                                                                                                                     CORPORATE




    Company has sufficient funding capability in                   accordance with the policies and guidelines of the
    accordance with the company’s risk level through               Risk Management Strategy through monthly reports
    evaluations and bi-weekly and monthly reports from             submitted by the Corporate Finance Division.
    the Corporate Finance Division.                            •   The Company has identified and analyzed several
                                                                   factors that can increase exposure.
Adequacy of Policies, Procedures, and Determination            •   The Company has analyzed other risk exposures
of Risk Limits                                                     that may increase liquidity risk, including interest
                                                                   rate risk, credit risk, operational risk, and legal risk.
•   The Company regularly records and evaluates its            •   The Company has a measurement tool that can
    assets and liabilities.                                        quantitatively measure liquidity risk in a timely and
•   The Board of Directors monitors assets and liabilities         comprehensive manner. the measurement tool must
    owned, conducts periodic evaluations of assets and             also be able to be used to measure the Liquidity Risk
    liabilities, assesses asset and liability exposures that       posed by assets, liabilities, and off-balance sheet.
    have interest rate and exchange rate risks, conducts       •   The Company has a good management information
                                                                                                                                     REPORT
                                                                                                                                     SUSTAINABILITY




    mapping of assets owned to determine which assets              system that can support reporting on liquidity
    are more liquid/ illiquid rather than liabilities, and         management risk issues.




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                     315
Page 316
      CORPORATE
      GOVERNANCE




            •   The development of a risk profile in 2020 also makes      Adequacy of policies, procedures, and risk limit setting
                it easier for the Company to monitor and evaluate
                capital adequacy risks. This Liquidity Risk Profile is    In line with the implementation of risk management
                submitted to the Board of Directors and the Board         related to OJK regulations, namely POJK 28/
                of Commissioners.                                         POJK.05/2020 relating to the Assessment of the
            •   The Company always ensures that the management            Health Level of Non-Bank Financial Services Institution
                information system owned by the Company is                Companies and SEOJK 11/ SEOJK 05/2020 concerning
                adequate in order to support the planning and             the Assessment of the Health Level of Financing
                decision-making processes related to capital as           Companies and Sharia Financing Companies, the
                reported by the Corporate Finance Division to the         Company has adjusted the policy on this risk which is
                Board of Directors and Board of Commissioners.            included in the market risk factor.
                                                                          • The Company has a policy in place to deal with
            Comprehensive Internal Control System                             changes in market prices for assets owned by the
                                                                              Company. This policy must consider the position
            •   Implementation of the 3 Levels of Defense (Three              of the Company’s assets and liabilities both in the
                Lines of Defense) in the Company’s structure which            short term and long term
                consists of the Business Function, Risk Management        • The Company has adequate investment assessment
                & Compliance Function and the Internal Audit                  procedures in place to deal with changing market
                Function;                                                     conditions.
            •   Establishment of the Risk Management Work Unit            • The Company has ensured consistency in setting
                (SKMR) and Compliance Work Unit (SKK) which the               limits for various types of instruments that have
                Company has carried out since the third quarter of            market risk exposure.
                2019 which are under a separate Directorate from          • The Company has set limits based on grouping types
                the Business Function;                                        of instruments that have the same characteristics.
            •   Development of a Risk Assessment tool which includes
                an assessment of liquidity risk and its mitigation;       Adequacy of risk identification, measurement,
            •   The Company continues to develop an internal              monitoring and control processes as well as Risk
                control system for asset and liability risks, through     Management Information System
                Asset Liabilities Management (ALM), which is a
                computerized system to maintain and analyze daily         •   The risk management process in the interest rate
                and weekly maturity gaps.                                     risk level has been implemented by the Company in
                                                                              collaboration between related divisions and is also
                                                                              reported to the Board of Directors and the Board of
            MARKET RISK                                                       Commissioners through available committees.
                                                                          •   The Company continues to carry out a benchmarking
            Active supervision of the Board of Directors and the              process, even to the indication of the daily rate
            Board of Commissioners                                            that will be applied to a competitive rate that
                                                                              can be obtained by the company to ensure that
            •   Board of directors and board of commissioners                 the Company gets the best margin to support the
                always monitor Market Risk through the Risk                   Company’s business strategy.
                Dashboard reporting channel with parameters               •   One of the things used to control interest rate risk,
                adjusted to the Company’s business model and                  the Company also performs hedging mitigation to
                business complexity.                                          deal with the risk of interest rate fluctuations which
            •   Corporate Finance Division also regularly reports             can have a significant impact on the Company.
                interest rate conditions/highlights to the Board of       •   The Company has reviewed the market risk
                Directors.                                                    measurement model, including carrying out back
            •   Board of Directors and Board of Commissioners                 testing and improvements if necessary.
                have ensured that risk management for market risk         •   Management has taken steps to control risk,
                is carried out effectively and is integrated with other       including prevention of larger market risk losses.
                risk management that could have an impact on the
                company’s overall risk profile.                           Comprehensive internal control system
            •   Board of Directors has ensured clarity of authority
                and responsibility for market risk management,            •   Implementation of 3 levels of defense (Three lines of
                adequacy of the system for measuring market risk,             defense) in the Company’s structure which consists
                adequate limit structure for risk taking, effective           of the Business Function, Risk Management &
                internal control, and a comprehensive, regular and            Compliance Function and the Internal Audit Function;
                timely reporting system                                   •   Establishment of the Risk Management Work Unit
                                                                              (SKMR) and Compliance Work Unit (SKK) which the
                                                                              Company has carried out since the third quarter of
                                                                              2019 which are under a separate Directorate from




316
Page 317
PT BUSSAN AUTO FINANCE




                                                                                                                                HIGHLIGHTS
                                                                                                                                PERFORMANCE
    the Business Function;
•   Development of a risk assessment tool which             •   The Company has a function that acts as a legal
    includes an assessment of liquidity risk and its            advisor who provides analysis or legal advice to all
    mitigation;                                                 employees at every level of the organization.
•   This level of risk is monitored and reported to the     •   The Company has an independent function
    Board of Directors and the Board of Commissioners           that continuously assesses and monitors the
    through the risk dashboard and follow-up actions            implementation of risk management for legal risks.




                                                                                                                                REPORT
                                                                                                                                MANAGEMENT
    are taken when receiving directions that must be
    carried out related to the results of the report.       Adequacy of Policies, Procedures, and Determination
•   The Company has an adequate internal control            of Risk Limits
    system to ensure transactions and processes related
    to market risk taking are carried out with reference    •   The Company is committed to providing information
    to the stpulated policies, procedures, and limits.          openly and accurately for the benefit of stakeholders
                                                                while still paying attention to company secrets,
                                                                position secrets and personal rights in accordance
LEGAL RISK                                                      with applicable regulations.
                                                            •   The Company applies a clear principle of
Active Supervision of the Board of Directors, Board             accountability in every function, task, authority and
of Commissioners and Sharia Supervisory Board                   responsibility of the company’s organs.




                                                                                                                                PROFILE
                                                                                                                                CORPORATE
                                                            •   The Company has and has implemented procedures
•   Throughout 2023, the Board of Directors discussed           for analyzing legal aspects of new business activities.
    every legal case faced by the Company which has         •   The Company has evaluated and updated its legal risk
    a significant impact on the Company in meetings             control policies and procedures on a regular basis in
    and also convey it to the Board of Commissioners,           accordance with the company’s external and internal
    especially through the Committee under the Board            developments, such as changes to regulations.
    of Commissioners, in this case the Risk Monitoring
    Committee.                                              Adequacy of Risk Identification, Measurement,
•   The Board of Directors and Board of Commissioners       Monitoring, and Controlling Processes and Risk
    have ensured that the risk management                   Management Information Systems
    implementation for legal risks is carried out




                                                                                                                                DISCUSSION & ANALYSIS
                                                                                                                                MANAGEMENT
    effectively and is integrated with the application of   •   The Company has a risk measurement method for
    risk management for other matters which may have            legal risk that is adequate and integrated with the
    an impact on the company’s overall risk profile.            company’s risk management framework, using both
•   The Board of Directors has established an effective         quantitative and qualitative approaches.
    communication mechanism, including involving            •   The company has monitored legal risks through risk
    company employees, regarding legal issues faced             profiles and the quality of implementation of legal
    by the legal department or related functions so             risk management based on predetermined limits,
    that legal risks can be immediately prevented and           as well as carried out evaluations of the risk profile
    controlled.                                                 assessments.
•   The Board of Directors and Board of Commissioners       •   The Company has an early warning assessment
    have implemented legal governance, namely                   mechanism through a committee formed to monitor
    governance to form, execute and interpret the               each violation so that it can respond and mitigate
    provisions of laws and regulations and internal             quickly.
    provisions including the standard agreements used.      •   The Company has recorded and administered every
•   The Board of Directors has ensured that there is            incident, including litigation processes related to
    legal consistency in every business activity, namely        Legal Risk along with the amount of potential loss
    that there is harmony between the activities or             resulting from the incident in question in a data
                                                                                                                                GOVERNANCE
                                                                                                                                CORPORATE




    business activities carried out with the provisions         administration.
    and does not create any ambiguity in an agreement
    made by the Company.                                    Comprehensive Internal Control System
•   The Board of Directors has ensured that there is
    legal completeness, so that all matters regulated       •   Implementation of 3 Lines of Defense in the
    by national and international regulations can be            Company structure consisting of Business Function,
    implemented properly by the Company, including              Risk Management & Compliance Function and
    prohibitions in the provisions, which are clearly           Internal Audit Function.
    regulated in the Company’s internal regulations.        •   The existence of a Risk Management Work Unit
•   The Company has implemented the necessary                   (SKMR) and a Compliance Work Unit (SKK) which
    legal steps for significant violations committed by         are under a separate Directorate from the Business
    employees as part of recovery actions from losses           Function. Implementation of a risk assessment tool
    that may result from legal risks.                           (Risk Assessment) which includes an assessment of
                                                                                                                                REPORT
                                                                                                                                SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                317
Page 318
      CORPORATE
      GOVERNANCE




                legal risks and their mitigation.
            •   Internal control is an important part for the Company   •   The Company has a Customer and Community
                to ensure business processes run effectively in             Protection Policy which has been adapted to POJK
                achieving company goals and objectives.                     No. 6/POJK.07/2023 concerning Customer and
            •   The Company always carries out regular evaluations,         Public Protection in the Financial Services Sector
                in this case the Corporate Planning & Secretary             since 2022;
                Division, Risk Management & Compliance Division         •   The Company has had a Customer and Community
                and Legal & Litigation Division, as well as other           Protection Function which is concurrent with the
                related Divisions to ensure the fulfillment and             Compliance Function since 2022;
                implementation of good governance principles,           •   The Company has an official who carries out
                as well as provisions and/or applicable laws and            the function of protecting personal data who is
                regulations.                                                supported by a Task Force to support this function
            •   The Company has an internal control system,                 in accordance with Law no. 27 of 2022 concerning
                among other things, to ensure compliance with laws          Personal Data Protection;
                and regulations as well as the Company’s policies       •   All Directors of the Company have obtained
                and regulations.                                            financing expert certificates and all Board of
                                                                            Commissioners have obtained basic Commissioner
                                                                            certificates from designated certification bodies as
            COMPLIANCE RISK                                                 well as Risk Management certification for Directors
                                                                            who lead the Risk Management Division. In 2023, all
            Active Supervision of the Board of Directors and                Directors and Board of Commissioners have fulfilled
            Board of Commissioners                                          sustainability requirements;
                                                                        •   The Company’s Directors supervise their respective
            •   The Board of Commissioners actively carries out its         Directorates according to their fields and expertise.
                supervisory function over the Board of Directors and    •   The Nomination and Remuneration Committee has
                the Company by holding 4 (four) joint meetings of           held 3 (three) meetings throughout 2023. The Audit
                the Board of Directors and Board of Commissioners           Committee has held 6 (six) meetings throughout
                in 2023.                                                    2023; and the Risk Monitoring Committee has held
            •   Related to management functions, the Company’s              4 (four) meetings throughout 2023;
                Board of Directors regularly held 31 (thirty one)       •   The Company has a Board of Commissioners Work
                meetings in 2023.                                           Guidelines (Charter), Directors’ Work Guidelines,
            •   In assisting the supervisory function, the Board            Audit Committee Work Guidelines, Nomination
                of Commissioners oversees 3 (three) Committees,             and Remuneration Committee, and Risk Monitoring
                namely the Audit Committee, the Nomination and              Committee. These work guidelines are always
                Remuneration Committee and the Risk Monitoring              subject to periodic review.
                Committee, which periodically hold meetings to          •   The Board of Directors and Board of Commissioners
                discuss matters related to its function and authority       have ensured that risk management for compliance
                which are then submitted and/or proposed to the             risk is carried out in an integrated manner with other
                Board of Commissioners.                                     risk management which can have an impact on the
            •   In 2023, the Board of Commissioners is assisted by          company’s overall compliance risk profile.
                the Audit Committee, Nomination and Remuneration        •   The Board of Directors and Board of Commissioners
                Committee and Risk Monitoring Committee                     have ensured that any compliance problems that
                chaired by the Independent Commissioner. The                arise can be resolved effectively by the relevant
                function of these committees is to ensure that the          functions and monitoring of corrective actions by
                inspection and monitoring system by the Board of            the compliance function.
                Commissioners runs optimally to realize the Good        •   The director in charge of the compliance function
                Governance principles for Financing Companies.              has carried out the responsibilities as regulated in
            •   The Board of Commissioners and Directors                    the provisions governing the implementation of the
                have prepared reports on work implementation,               Company’s compliance function.
                achievements and implementation of good                 •   The Company has an adequate risk management
                governance which are disclosed in the Annual Report         function for compliance risk with clear authority and
                for the 2022 Financial Year, submitted at the Annual        responsibility for each unit or work unit that carries
                GMS held in 2023, and published on the Company’s            out the risk management function for compliance
                website.                                                    risk.
            •   The Company has an anti-corruption and bribery          •   The Company has a Compliance Work Unit which
                policy that has adapted to the directions from              has duties, authority and responsibility at least
                the Financial Services Authority (OJK) and the              as regulated in the provisions governing the
                Corruption Eradication Commission (KPK) which               implementation of the Company’s compliance
                were submitted to the OJK in June 2023;                     function.




318
Page 319
PT BUSSAN AUTO FINANCE




                                                                                                                                HIGHLIGHTS
                                                                                                                                PERFORMANCE
                                                                 compliance reports.
Adequacy of Policies, Procedures, and Determination          •   The Company has a mechanism for determining the
of Risk Limits                                                   minimum annual attendance limit for members of
                                                                 the Board of Directors and Board of Commissioners.
•   The Company has established policies, procedures         •   The Company monitors the legality of
    and limits related to management risk, as stated in          documentation for the appointment and dismissal
    the Governance Agreement signed by each Director.            of Directors and/or Commissioners, including




                                                                                                                                REPORT
                                                                                                                                MANAGEMENT
•   The Company has determined the term of office                concerning number and composition of the Directors
    of the members of the Board of Directors and the             and Board of Commissioners in accordance with
    Board of Commissioners in the articles of association        applicable regulations.
    of the Company.                                          •   The Company has identified and analyzed several
•   The Board of Directors with the approval of the Board        factors that could increase Compliance Risk
    of Commissioners evaluates the policies, procedures          exposure.
    and limit setting, on changes to laws and regulations.
•   The Company always complies with the laws and            •   The Company has also built an integrated system
    regulations.                                                 that can inform relevant divisions of reporting
•   Every year, the Company has an adequate                      obligations that must be fulfilled to minimize
    compliance work plan.                                        compliance risks.
•   The Company always ensures the effectiveness             •   The Compliance Work Unit has carried out




                                                                                                                                PROFILE
                                                                                                                                CORPORATE
    of the implementation of risk management                     monitoring and reporting of compliance risks that
    for compliance risk, especially in the context of            occur to the Company’s Directors both at any time
    formulating policies and procedures that are in              when Compliance Risks occur and periodically.
    accordance with generally accepted standards,            •   The Company has a database containing complete
    provisions, and/or laws and regulations                      profiles, terms of office, continuity requirements and
                                                                 other information related to the Board of Directors/
Adequacy of Risk Identification, Measurement,                    Board of Commissioners.
Monitoring, and Controlling Processes and Risk               •   The Company has developed a Risk Management
Management Information Systems                                   and Compliance Dashboard which, among other
                                                                 things, monitors the composition of members of the
•   The Company strives to apply governance principles           Board of Directors and Board of Commissioners so




                                                                                                                                DISCUSSION & ANALYSIS
                                                                                                                                MANAGEMENT
    in every aspect of its business to create effective,         that they comply with prevailing regulations.
    efficient and sustainable governance.
•   In controlling governance risks, the Company strives     Comprehensive Internal Control System
    to:
    a. Transparent dissemination of the results of the       •   Implementation of 3 Lines of Defense in the
        Directors’/Board of Commissioners’ decisions to          Company structure consisting of Business Function,
        Division heads.                                          Risk Management & Compliance Function and
    b. Implementation of an early detection system               Internal Audit Function;
        to prevent potential company losses, such as a       •   Establishment of a Risk Management Work Unit
        committee formed to monitor any violations so            (SKMR) and Compliance Work Unit (SKK) which
        that they can respond and mitigate quickly, such         has been carried out by the Company since the
        as PRFC and Tableau;                                     third quarter of 2019 which is under a separate
    c. Determining the functions and duties of each              Directorate from the Business Function;
        work unit clearly so that each party can carry out   •   Developing a risk assessment tool which includes an
        their functions and duties well;                         assessment of compliance risks and their mitigation;
    d. Having guidelines and properly implementing           •   The Company has a compliance work unit that
        performance measures and reward and                      can routinely or at any time submit reports and
                                                                                                                                GOVERNANCE
                                                                                                                                CORPORATE




        punishment systems for all levels in the Company         findings as well as actions taken to prevent and/or
        as stated in the incentive/bonus schemes and             overcome indications of non-compliance. The report
        KPIs at both division and network office levels;         is guaranteed to reach the Board of Directors and
    e. Conduct regular evaluations of risk management            Board of Commissioners.
        implementation at least once a year                  •   The Company, through the Compliance Work Unit
•   The Company also has a Compliance Dashboard                  (SKK), ensures that the Company is always updated
    which was developed in 2020 and is still used as a           regarding Financial Services Authority regulations
    tool in monitoring compliance with regulations to            and other laws relating to the Company’s business
    this day.                                                    sector;
•   The Compliance Work Unit began to develop and            •   All activities of the Board of Directors and Board of
    implement a monitoring mechanism for compliance              Commissioners are reported periodically at Board of
    with reporting to regulators called the Compliance           Commissioners meetings and will be accounted for
    Monthly Monitoring Report and semesterly                     at the General Meeting of Shareholders.
                                                                                                                                REPORT
                                                                                                                                SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                319
Page 320
  CORPORATE
  GOVERNANCE




        REPUTATIONAL RISK                                              Adequacy of policies, procedures, and risk limit
                                                                       setting
        Active Monitoring from Board of Directors and Board
        of Commissioners                                               •   The Company has a policy procedure related to
                                                                           handling customer complaints or complaints. The
        •   The Company’s Board of Directors has monitored                 handling of customer complaints is always guided
            the position of reputational risk, such as the level and       by OJK Regulation Number 01/POJK.07/2013
            resolution of customer complaints to reporting in              concerning Customer Protection in the Financial
            the media in the risk dashboard report periodically.           Services Sector, OJK Circular Letter Number 2/
            The Board of Directors also provides direction and             SEOJK.07/2014 concerning Services and Settlement
            follow-up if there are matters that need special               of Customer Complaints for Financial Services
            attention related to monitoring and reporting on               Business Actors as well as the provisions of laws and
            these reputational risk factors. This report is also           regulations. -other relevant legislation, including
            reported to the Independent Commissioner through               POJK No. 18/POJK.7/2018 concerning Customer
            the Risk Dashboard reporting channel which is                  Complaint Services in the Financial Services Sector
            presented to the Audit Committee and attended by               and SEOJK No. 17/SEOJK.07/2018 concerning
            the independent commissioner as Chairperson of                 Guidelines for the Implementation of Customer
            the Audit Committee.                                           Complaint Services in the Financial Services sector.
        •   The Board of Directors can also provide ad-hoc             •   In line with the implementation of Risk Management,
            direction in the event of significant matters that             namely POJK 28/POJK.05/2020 related to the
            have a direct impact on the Company to mitigate                Assessment of the Health Level of Non-Bank
            this reputational risk.                                        Financial Services Institutions, the Company has
                                                                           adjusted the policy on this risk which is included in
        •   The Board of Directors and the Board of                        the reputation risk factor.
            Commissioners       have      ensured    that     the      •   The Company has written policies and procedures
            implementation of risk management for legal risk               that comply with the principles of transparency in
            is carried out effectively and integrated with the             order to improve the quality of service to consumers
            implementation of other risk management which                  and other stakeholders to control Reputational Risk.
            may have an impact on the overall risk profile of the          The policy must be in line with the provisions and/or
            company.                                                       laws and regulations governing customer protection.
        •   The Board of Directors and the Board of                    •   The Company has in place and implemented an
            Commissioners have paid attention to the                       appropriate communication policy in order to
            implementation of risk management for reputation               deal with negative news or publications or prevent
            risk by related functions in the Company, especially           information that tends to be counterproductive,
            functions related to interactions with external                among others by implementing an effective media
            parties.                                                       use strategy to deal with negative publications.
        •   The Board of Directors and the Board of                    •   The Company has a special protocol for reputation
            Commissioners have behaved professionally and                  management during a crisis so that it can quickly
            maintained business ethics so that they can be                 anticipate an increase in Reputation Risk during
            an example for all elements of the Company’s                   a crisis. Assessment of this factor includes crisis
            organization in an effort to build and maintain                management structure and crisis management
            reputation.                                                    manual procedures
        •   The Board of Directors has determined the flow of
            information delivery to debtors and other external         Adequacy of risk identification, measurement,
            parties related to the Company’s business activities       monitoring, and control processes as well as Risk
            to control reputation risk.                                Management Information System
        •   The Company needs to provide a centralized service
            to handle questions, suggestions, or complaints            •   The reputation risk management process has been
            from debtors, for example in the form of call center           implemented by the Company in collaboration
            services.                                                      between related divisions. The process of
        •   All employees including the management of the                  implementing reputation risk management is
            business and operational functions and the support             carried out in collaboration with related divisions
            functions of the Company must be part of the                   such as Communication & Branding, BAF Care
            risk management implementation structure for                   and other related divisions including operational
            reputation risk, considering that reputation is the            functions in network offices.
            result of all the Company’s business activities.           •   Specifically for customer complaints in the Company,
                                                                           they are handled by BAF Care which has various
                                                                           complaint channels such as BAF Care hotline, BAF
                                                                           Care e-mail, BAF Care SMS hotline. Apart from that,




320
Page 321
PT BUSSAN AUTO FINANCE




                                                                                                                                HIGHLIGHTS
                                                                                                                                PERFORMANCE
    the Company also provides facilities via social media      •   The Company also regularly disseminates corporate
    such as Facebook, Twitter, Instagram, BAF Mobile,              values ​​
                                                                           to employees to build awareness of the
    Live Chat via Line and the BAF Website or through              importance of the Company’s reputation which
    the Company’s network offices.                                 is also reflected in the image of the Company’s
•   The Company always monitors the publication                    employees.
    and disclosure of other Company information in             •   The Company has also carried out service monitoring
    the media or in the public which is carried out by             and service coaching on a regular basis which is




                                                                                                                                REPORT
                                                                                                                                MANAGEMENT
    Communication & Branding and Corporate Planning                expected to continue to improve and maintain
    & Secretary.                                                   the consistency of excellent service standards to
•   The Company records and administers every                      consumers.
    incident related to reputation risk, including the
    amount of potential loss in data administration.
•   The Company can use several sources of information              Review on Effectiveness of the Risk
    to identify the impact of reputation risk, including            Management System
    mass media reports, the Company’s website, and the
    results of social media analysis, debtor complaints        The Company has implemented a risk management
    through call center services, or debtor satisfaction       strategy based on 4 risk management pillars that has
    questionnaires.                                            been implemented for each type of risk faced by the
•   The company must immediately follow up and                 Company. The Company has taken the mitigation steps




                                                                                                                                PROFILE
                                                                                                                                CORPORATE
    resolve customer complaints and lawsuits that can          required by the Company to achieve every business
    increase exposure to reputation risk.                      and operational strategy that has been determined by
•   The Company must develop a reliable mechanism              considering the risks faced. This has made a positive
    for carrying out effective reputation risk control         contribution to the Company where the Company has
    measures.                                                  succeeded in improving its business performance even
•   The Company has a system for handling debtor               though it is still in the COVID-19 pandemic situation.
    complaints which is implemented at BAF Care                The Company has achieved better business performance
    and handling of these complaints will be reported          than the previous year and achieved an inherently “low”
    periodically to management. In 2023, the Company           risk position with the implementation of an effective
    received 1,737 complaints and 99.25% were                  Internal Control Function based on the results of the
    resolved.                                                  financial soundness assessment conducted by the




                                                                                                                                DISCUSSION & ANALYSIS
                                                                                                                                MANAGEMENT
•   With the cooperation of related divisions, the             Company for the 2022 period.
    Company always monitors negative news regarding
    the Company for further action.                            In 2023, the active monitoring from the Board of
•   The Company has regular procedures and                     Directors, Board of Commissioners and DPS has been
    mechanisms for reporting reputation risks or events        running well as described in each Company’s risk
    that give rise to reputation risks, both in written form   profile and Soundness Level. The Risk Management
    and in the form of an electronic system, including         implementation and supervisor function in the Company
    discussions at board or management meetings.               is regularly monitored through regular meetings. Risk
                                                               Management Committee held 4 (four) meetings in
Comprehensive Internal Control System                          2023. The Risk Monitoring Committee meetings have
                                                               also held 4 (four) meetings in 2023.
•   Implementation of the Three Lines of Defense in
    the Company’s structure consisting of the Business         The Company believes that strong risk management
    Function, Risk Management & Compliance Function            is the main and fundamental foundation for the
    and the Internal Audit Function;                           Company’s success. Therefore, the Company makes
•   The establishment of a Risk Management Work Unit           risk management an integral part of the corporate
    (SKMR) and a Compliance Work Unit (SKK) has been           culture and decision-making process. The risk culture
                                                                                                                                GOVERNANCE
                                                                                                                                CORPORATE




    carried out by the Company since the third quarter         that continues to be fostered is awareness and
    of 2019 which is under a separate Directorate from         general understanding, attitudes and behavior of the
    the Business Function;                                     management and employees of the Company towards
•   Develop a Risk Assessment tool which includes an           risk. In 2023, the Company is campaigning for the theme
    assessment of reputational risk and its mitigation;        “Dare to Raise Facts” which is expected to be developed
•   This reputation risk report is reported to the Board of    at all levels of the organization. The implementation of
    Directors and the Board of Commissioners through           awareness is in the form of socialization and training,
    the Risk Monitoring Committee reporting line, which        including those embodied in the Mari Patuh Bulletin
    is attended by the Independent Commissioner                which is sent every month to all network offices with
    in the Risk Dashboard reporting section, such as           related socialization materials. Risk Management,
    the number of incoming complaints, handling of             Compliance and Application of AML CTF PPPSPM and
    complaints to negative publicity, both from print          Anti-Fraud.
    and electronic media. and social media that may            Adequacy of risk management policies and procedures
    have an impact on the Company’s reputation.
                                                                                                                                REPORT
                                                                                                                                SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                321
Page 322
  CORPORATE
  GOVERNANCE




        as well as the determination of risk limits is carried      offices.
        out, among others, by periodically reviewing policies
        related to risk management during 2022. The adequacy
        of the risk identification, measurement, control and             Statement of the Board of Directors
        monitoring process and risk management information               and/or Board of Commissioners on the
        system is also continuously realized by conducting a             Adequacy of the Risk Management
        Risk Assessment on the development business activities           System
        or changes in procedures. Throughout 2023, a total of
        44 (forty four) Risk Assessments have been issued by        Overall, the implementation of risk management in the
        the Risk Management Work Unit. Management System            company was sufficient. The risks faced by the Company
        Management is carried out with appropriate systems          have also been managed properly. The Company
        and mechanisms to support reporting to the Board of         recognized 8 (eight) types of risks faced during 2023.
        Directors, Board of Commissioners and DPS. Submission
        of the Company’s Health Level is always carried out         The Company has assessed the level of these risks with
        through each Risk Management Committee and Risk             low results therenby not causing a significant impact on
        Monitoring Committee.                                       the Company’s operations. Going forward, the Company
                                                                    will also continue to evaluate improvements and
        The pillars of a comprehensive internal control system      developments in the implementation of the Company’s
        continue to be realized, among others, by solid             Risk Management to ensure the sustainability of the
        coordination with the first line and third line, which in   Company’s long-term risk management.
        2023 will be held through 23 (twent three) Integrated
        Internal Control (IIC) meetings in 2023 for all network




322
Page 323
PT BUSSAN AUTO FINANCE




                                                                                                               HIGHLIGHTS
                                                                                                               PERFORMANCE
            INTERNAL CONTROL
            SYSTEM




                                                                                                               REPORT
                                                                                                               MANAGEMENT
                                                                                                               PROFILE
                                                                                                               CORPORATE
                                                                                                               DISCUSSION & ANALYSIS
                                                                                                               MANAGEMENT
                                             The Company applies internal control system as a
                                             continuous monitoring mechanism covering business
                                             process, operational and financial for the company
THE COMPANY APPLIES THE                      comprehensively.      The Company’s internal control
INTERNAL CONTROL SYSTEM AS                   system is an inseparable part of the implementation
                                                                                                               GOVERNANCE
                                                                                                               CORPORATE



                                             of risk management strategies, especially in the pillars
AN IMPORTANT MONITORING                      of a comprehensive internal control system with the
COMPONENT IN THE COMPANY’S                   implementation of adequate internal control, namely
                                             the implementation of 3 levels of defense within the
MANAGEMENT AND BECOMES                       Company which is expected to improve risk management
                                             process and compliance with internal procedures
THE REFERENCE FOR SOUND
                                             and regulatory provisions. as well as applicable laws,
AND CONTROLLED CORPORATE                     minimizing the impact of financial losses that may occur
                                             by placing appropriate monitoring and control activities,
OPERATIONAL ACTIVITIES.                      deviations including fraud, mitigating risks that may
                                             have a significant impact on the Company and violations
                                             of prudential aspects, and increasing effectiveness
                                             organization. Appropriate internal control is expected to
                                             support overall targets and performance achievement as
                                                                                                               REPORT
                                                                                                               SUSTAINABILITY




                                             stipulated by Management.




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                               323
Page 324
  CORPORATE
  GOVERNANCE




                                                                      6. Determine the reporting scheme from network offices
               Business Processes, Operations and                         or related parties regarding the risk event;
               Compliance Control with Other Law and                  7. Ensure a clear division of duties (Segregation of
               Regulation                                                 duties) that applies between divisions/departments
                                                                          within the Company;
        In 2023, the Company consistently implemented a               8. Have adequate policies and procedures to ensure
        comprehensive internal control system as one of the               the company’s compliance with prevailing laws and
        pillars in implementing the Company’s risk management             regulations and carry out regular reviews according
        which includes several aspects, as follows:                       to the Company’s external and internal conditions;
        1. Implement 3 levels of defense (3 lines of defense), such   9. Coordinate between related divisions to ensure the
             as: First Line of Defense which consists of Business         Company’s compliance with prevailing law and
             Functions, Billing Credit and Operations; Second Line        regulation;
             of Defense consisting of the Risk Management Work        10. Review activities of the First Line of Defense and
             Unit, Compliance Work Unit, Corporate Legal; and the         Second Line of Defense by the Company’s Internal
             Third Line of Defense which consists of the Internal         Audit Work Unit.
             Audit Work Unit or Independent Auditor.                  11. Conduct inspections of network office and head
        2. Carry out the Active Monitoring function of the Board          office operations by the Company’s Internal Audit
             of Directors, Board of Commissioners and Sharia              Work Unit and ensure commitments/improvements
             Supervisory Board (DPS) with a regular meeting               are carried out by network offices or related divisions;
             mechanism of the Risk Management Committee and           12. Report the findings of the Internal Audit Work Unit to
             Risk Monitoring Committee as part of implementing            the Audit Committee;
             good corporate governance and risk management            13. Implementation of measurable improvement plans
             strategies (including Information Technology Risk            by monitoring audit results;
             Management and Sharia Product and Business               14. Establish dedicated Anti-Fraud work unit under the
             Activity Development Committee);                             Internal Audit Work Unit with related programs, as
        3. Ensure regular reporting and meetings from Risk                follows:
             Management Committee and/or Risk Monitoring                  • Carrying out several initiatives to prevent fraud;
             Committee to discuss the General Condition of                • Socialize the Whistleblowing System as part of a
             the Company through Financial Soundness Level                     violation detection strategy to employees;
             reports, Implementation of Risk Management                   • Conduct investigations professionally and
             Strategies (Including Information Technology Risk                 independently;
             Management) or other matters to ensure adequate              • Maintain a fast reporting line regarding violations
             Risk Management process within the Company;                       committed by employees
        4. Ensure implementation of programs related to Risk              • Implementing Anti-Fraud strategies in the
             & Compliance Awareness to ensure implementation                   Company
             of Risk Awareness Culture in every related line
             within the Company. For example, this program
             includes Implementation of Risk Management and/               Review on Effectiveness of Internal
             or Compliance Webinar, Socialization or refreshing            Control
             of applicable policies or regulations, Compliance
             AML CTF PFPMDW National Test, Risk Control Self-         Implementation of comprehensive internal control
             Assessment (RCSA), Discussion of the function of the     system for every business activity has been realized by
             three levels of defense in Integrated Internal Control   ensuring that the Company’s control system has been
             (IIC) Virtual meetings to holding webinars related to    implemented adequately. In 2023, the Company has
             Anti-Money Laundering, Counter Terrorism Financing       implemented an internal control system in accordance
             and Prevention of Funding for the Proliferation of       with the principles of control and implementation of
             Weapons of Mass Destruction (AML-CTF PPPSPM).            good Financing Corporate Governance. Overall, the
        5. Establish AML-CTF PPPSPM Support Team which                quality of the internal control system has been running
             also coordinates with AM-CTF PPPSPM Officials            well. Problems related to the adequacy of internal
             to ensure that the AML-CTF PPPSPM program                control have been reported to the Board of Directors
             runs in accordance with the provisions of the laws       and follow-up steps have been applied to minimize risks.
             and regulations of the OJK and PPATK (Financial          Reports are also always updated to the Audit Committee
             Transaction Reporting and Analysis Center). The          for further submission to the Board of Commissioners
             Company has undergone an inspection by PPATK             because basically the Board of Commissioners, assisted
             within the framework of the period for filling out       by the Audit Committee, is responsible for carrying out
             the Financial Integrated Rating (FIR) Questionnaire      supervision to ensure the implementation of internal
             with Good and adequate results regarding the             control in general.
             implementation of the AML-CTF PPPSPM program
             within the Company;




324
Page 325
PT BUSSAN AUTO FINANCE




                                                                                                                                   HIGHLIGHTS
                                                                                                                                   PERFORMANCE
Risk Management Committee is chaired by the President              the Company as a finance company. The CAMP Test
Director and consisting of Directors and Heads of                  has been carried out 1 (once) in September 2023;
related Divisions and the Risk Monitoring Committee             e. Analyze and provide recommendations to the First
chaired by an Independent Commissioner and also                    Lines of Defense team for process changes or new
monitored by an Independent Party have played a role               products or other things that increase risk through
in ensuring the implementation of all Risk Management              the Risk Assessment Mechanism and/or Compliance
strategies and the implementation of the Risk culture              Analysis mechanism;




                                                                                                                                   REPORT
                                                                                                                                   MANAGEMENT
that has been established by the Company in in 2023.            f. Update related internal policies including Risk
The Risk Management Work Unit, in coordination                     Management Guidelines, Compliance Policy
with the Compliance Work Unit and other related                    Standards and AML CTF PPPSPM Implementation
departments, has also used regulatory tools stipulated             Guidelines.
by the OJK including but not limited to provisions related      g. As part of strengthening the internal control function
to Good Corporate Governance, Implementation of                    in network offices, the Internal Audit Work Unit
Risk Management for Non-Bank Financial Services                    together with the Risk Management Work Unit have
Institutions, Implementation of Information Technology             appointed network office leaders to become Internal
Risk Management in Non-Bank Financial Services                     Control Ambassadors (ICA) with specific tasks that
Institutions, as well as Assessment of the Health Level of         have been decided jointly between the Internal Audit
Financing Companies and Sharia Financing Companies                 Work Unit and Risk Management Work. In 2023, the
to assess the level of financial health using 4 (four) main        best ICA has been selected which has implemented




                                                                                                                                   PROFILE
                                                                                                                                   CORPORATE
parameters, namely:                                                internal control in network offices in accordance with
a. Implementation of Good Corporate Governance;                    the tasks set by SKMR and SKAI;
b. Risk Profile with an approach based on 8 Types of            h. Quality Assurance function will help to strengthen
    Risk;                                                          the internal control function in network offices by
c. Profitability; And                                              jointly checking the quality of the control process
d. Capital.                                                        (Quality Process Control) for high-risk processes and
                                                                   the quality of data (Quality Data Control);
In fulfilling the Internal Control Pillar, the Company also     i. Establish a reporting mechanism for external events
involves the Sharia Supervisory Board (DPS) to discuss the         that can impact the organization and originate from
implementation of the Company’s risk management for                operational risks (external factors). This reporting is
the company’s businesses that use sharia principles. This          called an Operational Risk Event;




                                                                                                                                   DISCUSSION & ANALYSIS
                                                                                                                                   MANAGEMENT
is in line with the implementation of the first pillar of the   j. Carrying out socialization and monitoring the
Risk Management Strategy, namely Active Supervision                implementation of applicable legal provisions related
of the Board of Directors, Board of Commissioners and              to the Company, including:
Sharia Supervisory Board.                                          1) POJK 3 of 2023 concerning Financial Literacy
                                                                       and Inclusion in the Financial Services Sector for
Initiatives that have been carried out in 2023 to support              Consumers and the Community;
the implementation of internal control in the Company              2) POJK No. 6/POJK.07/2022 concerning Customer
are as follows:                                                        and Public Protection in the Financial Services
a. Implementation of Operational Risk management at                    Sector;
    national level through Risk Control Self-Assessment            3) Law No. 27 of 2022 concerning Protection of
    (RCSA) which will further create Risk Register.                    Personal Data;
    The implementation of RCSA is carried out every                4) POJK Number 8 of 2023 concerning
    semester and performed by the Risk Taking function                 Implementation of Anti-Money Laundering
    with an independent assessment mechanism using                     Programs, Prevention of Terrorism Financing,
    predetermined working papers. The results of RCSA                  and Prevention of Funding for the Proliferation
    implementation are reported to the Risk Management                 of Weapons of Mass Destruction in the Financial
    Committee and Risk Monitoring Committee;                           Services Sector
                                                                                                                                   GOVERNANCE
                                                                                                                                   CORPORATE




b. Implementation of Integrated Internal Control (IIC)             5) Law Number 11 of 1980 concerning the Crime of
    throughout 2023 has been carried out in 20 (twenty)                Bribery;
    activities through virtual meetings attended by each           6) Law Number 20 of 2001 concerning Amendments
    function in the first line, second line and Three Lines            to Law Number 31 of 1999 concerning the
    of Defense;                                                        Eradication of Corruption Crimes (Tipikor)
c. Implementation of a webinar related to Operational              7) POJK Number 4 /POJK.05/2021 concerning the
    Risk Management which will be held on June 22,                     Implementation of Risk Management in the Use
    2023 with an external speaker, John Barny Manik                    of Information Technology by Nonbank Financial
d. Implementation of Compliance AML CTF PFPMDW                         Services Institutions
    National Test (CAMP Test) to ensure that the                   8) POJK           44/POJK.05/2020           concerning
    Company’s internal employees understand the                        Implementation of Risk Management for Non-
    relevant regulations properly, and as part of a                    Bank Financial Services Institutions
    refresher program for the regulations that apply to
                                                                                                                                   REPORT
                                                                                                                                   SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                   325
Page 326
  CORPORATE
  GOVERNANCE




                                                                   is responsible for implementing good internal control
               Statements of Internal Control                      system to achieve the Company’s objectives. Assisted by
               Adequacy                                            a committee, the Board of Commissioners is responsible
                                                                   for carrying out supervision in order to ensure the
        The Company implements internal control system as          implementation of general internal control. However, all
        an important monitoring component in the Company’s         lines of defense are required to act as those responsible
        management and as a reference for healthy and              for managing internal control in each work unit in the
        controlled company operational activities. Overall, in     Company. Inspections have been carried out periodically.
        2023, adequacy of internal control has been adequate.      Awareness programs regarding internal control are also
        The Board of Directors and Board of Commissioners are      routinely carried out. The Company believes that an
        committed to always ensure that corporate governance       adequate internal control system will not only support
        is carried out properly as a basis for achieving goals     the achievement of the Company’s vision and mission,
        to maintain and increase company value. One of the         but also to increase value for stakeholders, minimize the
        mechanism to ensure that the internal control system has   loss risk and maintain compliance with prevailing laws
        been implemented adequately. The Board of Directors        and regulations.




326
Page 327
PT BUSSAN AUTO FINANCE




                                                                                                                                  HIGHLIGHTS
                                                                                                                                  PERFORMANCE
              WHISTLEBLOWING SYSTEM, ANTI-CORRUPTION,
              ANTI-FRAUD AND ANTI-MONEY LAUNDERING AND
              COMBATING THE FINANCING OF TERRORISM AND
              FINANCING OF THE PROLIFERATION OF WEAPONS
              OF MASS DESTRUCTION FINANCING (AML CFT &
              PPMWDF) POLICY




                                                                                                                                  REPORT
                                                                                                                                  MANAGEMENT
     Whistleblowing System Policy                                   Report Managing Party
                                                               Fungsi yang mengelola pengaduan berada di bawah The
Whistleblowing System (WBS) policy aims to encourage           function that manages further report is under Anti-Fraud
and enable all Stakeholders to raise their awareness           Work Unit in the Internal Audit Unit. The Anti-Fraud
towards appropriate handling of suspected fraud or             Unit is in charge to investigate and make reasonable




                                                                                                                                  PROFILE
                                                                                                                                  CORPORATE
violations that occur, whether by individuals or groups        recommendations to the Board of Directors, as a
in the Company’s internal and external environment. In         follow-up to any reports that have been received. The
2023, the Company has involved other stakeholders by           report will then be followed up through an investigation
including by mentioning a hotline at website.                  process to ensure that the action is a deviant act and
                                                               then determine the handling and prevention actions in
                                                               the future. The results of the examination of the report
     Whistleblowing Report Submission                          will also be submitted to the Board of Directors to earn
     Mechanism                                                 appropriate, wise, professional and objective decisions on
                                                               the investigation result.
The employee may submit every report on violation
against the Company’s regulation to Anti Fraud Work            The Company has established a punishment mechanism,




                                                                                                                                  DISCUSSION & ANALYSIS
                                                                                                                                  MANAGEMENT
Unit via the Whistleblowing System on the Company’s            including through a verdict meeting led by Human
website www.baf.id, where the whistleblower will have the      Resources Division, attended by Risk Management Work
convenience in filling a digital form (WBS form), via the      Unit and Compliance Work Unit (Risk Management &
Anti-Fraud hotline telephone number. Fraud at number           Compliance), Anti-Fraud unit and related Divisions. If
0815 1455 3969 and the Female Investigator hotline at          based on the results of investigation proves that the
0811 8513 224 which is intended for reports that require       reported person has committed fraud or a violation,
handling by Female Investigators and can also be done          sanctions will be given as stated in the Company
via email to report@baf.id                                     Regulations which must be obeyed by all employees of
                                                               the Company.

     Protection to Whistleblower
                                                                    Number of Reports Submitted and
Any report regarding violating action or behavior agains            Processed in 2023 and the Report
the Company’s regulation is eligible to be submitted by             Follow-Up
the offender or anyone knowing such action, as long
driven by good faith and integrity, and solely upon the        Throughout 2023, there was zero fraud event with
                                                                                                                                  GOVERNANCE
                                                                                                                                  CORPORATE



Company’s favor, the Company guarantees will not cause         significant negative impact to the Company reported to
any punishment (based on the Company’s Regulation) to          Financial Service Authority (OJK) according to provisions
the Whistleblower.                                             in Financial Service Authority Regulation (POJK) No.
                                                               35/POJK.05/2018 concerning Financing Business
The Company guarantees that there will be no action            Implementation, article 46 point (1) letter b.
against male/female employees who submitted reports
based on good faith and/or integrity and/or to participate     Board of Directors has determined that value of
in the review process of alleged violations. This protection   significant fraud is 5.9 billion/incident as declared in
also applies to employees who submit violation reports in      Board of Directors’ Approval Memo No. 0014/AM/
good faith but are proven wrong. However, the Company          RMC/08/2022. Therefore, fraud incidents occured in
reserves the right to discipline employees who submitted       2023 with potential losses as determined as significant
reports with bad intentions or abuse the Whistleblowing        fraud values are as follows:
policy.
                                                                                                                                  REPORT
                                                                                                                                  SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                  327
Page 328
  CORPORATE
  GOVERNANCE




                                                                                            OFFENDER
                                STATUS                               COMMISSIONERS /         INTERNAL            OUTSOURCE
                                                                       DIRECTORS            EMPLOYEES            EMPLOYEES

         Investigation Has Been Closed                                       -                   -                    -

         Under Investigation Process                                         -                   -                    -

         Litigation Process                                                  -                   -                    -

         Not Followed Up                                                     -                   -                    -

         Total                                                               -                   -                    -




                                                                     2. Commitment to Anti-Corruption and Bribery by
               Anti Corruption Policy                                   Employees:
                                                                        a. Refuse any cash reward or gifts in any form from
        The Company has PT Bussan Auto Finance Anti-                       third parties/other related parties.
        Corruption and/or Bribery Behavior Policy as approved by           Third parties/other related parties thereof
        the Board of Directors in July 2023 which includes:                prospective consumers, consumers, dealers,
                                                                           sellers of goods/services who collaborate or
        1. Top Management Anti-Corruption Commitment:                      will collaborate, insurance, company affiliates,
           a. The Company is committed to run the business                 auction houses and any parties who will later be
              based on vision, mission and values, including               designated as third parties/related parties other.
              integrity value and following the applicable code            Forms of gifts/gratifications other than money
              of ethics. This Company strives to improve and               that are prohibited from being accepted include
              enhance every business process to be in line with            travel (tours), transportation tickets, tickets for
              integrity principle. The Company implements                  visual and/or non-visual entertainment rides
              zero tolerance principle towards actions related             (including hotels, karaoke, others), movable and/
              to corruption, bribery and violations of related             or immovable goods that can be valued in cash.
              laws and regulations, including acts against the             Receiving money or goods can be categorized as
              applicable laws in Indonesia;                                bribery, which is a serious violation.
           b. The Company prohibits all levels of leadership,           b. Do not commit criminal acts of corruption,
              employees, and even third parties who work for               gratification to civil servants, state officials or
              and on behalf of this Company to lure, promise,              anyone else
              or give something to state officials or to anyone            1) Corruption in Law no. 31 of 1999 concerning
              else in the event that the action includes an act                the Eradication of Corruption Crimes (“Tipikor
              that lacks integrity or is an act against law;                   Law”) means that every person who unlawfully
           c. The Company prohibits all employees within the                   commits an act of enriching themselves
              Company’s working scope to request gifts from                    or another person or a corporation which
              individuals or organizations related to their duties             can harm the state’s finances or the state’s
              at the Company;                                                  economy. Employees are prohibited from
           d. The Company regulates conflicts of interest for                  committing criminal acts of Corruption and if
              each employee. Any conflict of interest that has                 employees are suspected and have sufficient
              the potential to pose a risk shall be declared;                  evidence of having committed Corruption
           e. The Company is committed to always providing                     then they will be prosecuted criminally with
              socialization and training regarding corruption                  the threat of punishment as regulated in the
              prevention or business/operational processes                     Corruption Law;
              with integrity on a regular basis to all leaders and         2) Gratification in Law no. 20 of 2001 concerning
              employees;                                                       Amendments to Law no. 31 of 1999
           f. The Company will monitor implementation of                       concerning the Eradication of Corruption
              this commitment and any violation against                        is a gift in a broad sense, which includes
              code of ethics will be subject to the punishment                 giving money, goods, rebates (discounts),
              mechanism.                                                       commissions, interest-free loans, travel
                                                                               tickets, lodging facilities, tourist trips, free
                                                                               medical treatment and other facilities. These




328
Page 329
PT BUSSAN AUTO FINANCE




                                                                                                                                  HIGHLIGHTS
                                                                                                                                  PERFORMANCE
           gratuities are either received domestically or           request or accept any undue or other advantage
           abroad and are carried out using electronic              (or imply that they will or may do something in
           means or without electronic means.                       the future) with anything related to the contract,
           All employees are prohibited from committing             and that sufficient measures have been taken
           corruption and/or giving or giving gratuities            to prevent the partner/vendor/supplier, agent
           to Civil Servants or State Officials or other            or third party another, who is the subject of his
           parties which can be considered or equated               control or influence to do such thing;




                                                                                                                                  REPORT
                                                                                                                                  MANAGEMENT
           with giving bribes related to their position          b) All parties agree that, throughout the time
           and contrary to their obligations or duties.             related to the contract and thereafter, they will
           Furthermore, employees are also required                 comply with and will take sufficient action to
           to comply with applicable Company                        ensure that subcontactors, agents or other third
           Regulations and Anti-Bribery Commitments.                parties who are the subject of their control or
           If an employee is proven to have committed               influence will also comply with Law Number 31
           corruption and/or gratification, it will                 1999 in conjunction with Law Number 20 of 2001
           be processed legally with the threat of                  concerning Eradication of Corruption Crimes and
           punishment as regulated in Law no. 20 of                 Law Number 8 of 2010 concerning Prevention
           2001 concerning Amendments to Law no.                    and Eradication of Money Laundering Crimes;
           31 of 1999 concerning the Eradication of              c) If a party, as a result of exercising the right to be
           Corruption Crimes and is subject to sanctions            audited as stated in the Agreement, is found by




                                                                                                                                  PROFILE
                                                                                                                                  CORPORATE
           in accordance with Company Regulations.                  another party with evidence of accounting books
                                                                    and financial records showing that the party is
3. Anti-Corruption and Bribery Clause of the Company                involved in indications of violations, notification
   with Other Parties:                                              will be given and the party will be asked to take
   The Anti-Corruption and Bribery Clause must be                   corrective action in the shortest possible time and
   agreed upon by the collaborating parties, namely                 inform about the action. If the party concerned
   the Company and other parties/partners, both before              fails to take corrective steps or it is not possible
   and after the collaboration. The clause must be                  to implement corrective steps, and fails to explain
   stated in the Cooperation agreement between the                  that an adequate prevention system has been
   two parties, so that the obligation and responsibility           implemented as part of the organizational
   to implement the clause lies with the parties who                culture, then the other party may suspend or




                                                                                                                                  DISCUSSION & ANALYSIS
                                                                                                                                  MANAGEMENT
   voluntarily enter into the agreement.                            cancel the contract.

   The following is an example of an Anti-Corruption                 The Anti-Corruption Policy is also contained in the
   and Bribery clause as a reference in the Cooperation              Compliance Standard Policy which was updated
   Agreement:                                                        on April 28 2023. In the Compliance Standard
   a) Each party agrees that, at the time of entering                Policy. In the Compliance Policy Standards,
      into this contract, all relevant levels of the parties         there are, among other things, 12 (twelve)
      including and not limited to the directors, board              Commitments to Work in the Company and there
      of commissioners, officers and employees have                  are 3 (three) work commitments related to anti-
      never and will not offer, promise, give, authorize,            corruption policies, including:




                    1st Commitment:
                    “Carry out my duties and authority with full integrity, honesty and responsibility”. Integrity
                    and honesty are the most important things that the Company demands of its employees.
                                                                                                                                  GOVERNANCE
                                                                                                                                  CORPORATE
                                                                                                                                  REPORT
                                                                                                                                  SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                  329
Page 330
  CORPORATE
  GOVERNANCE




                             7th Commitment:
                             “Refuse any giving of money or gifts in any form from third parties/other related parties”

                             Third parties/other related parties referred to here are consumers, dealers, sellers of goods/
                             services who collaborate or will collaborate, insurance, company affiliates, auction houses
                             and any parties who will later be designated as third parties/other related parties. Forms
                             of gifts/gratifications other than money that are prohibited from being accepted include
                             travel (tours), transportation tickets, tickets for visual and/or non-visual entertainment rides
                             (including hotels, karaoke, etc.), movable and/or immovable goods that can be valued with
                             money. Receiving money or goods can be categorized as bribery, which is a serious violation.
                             In the event that an employee receives a gift for any reason, the employee is obliged to
                             report it to the direct management and to the Compliance Department by filling in the
                             Statement of Disclosure Form for Receiving Gifts or Providing Gifts/Entertainment, so that
                             the employee is not categorized as a bribe recipient.

                             In the event that an employee/stakeholder has already received the gift above, they are
                             obliged to report the gift to the leadership (at least the Division Head) and the Compliance
                             Department no later than 2 All forms of gifts that fall into the categories mentioned above
                             will be documented and stored by the Compliance Department.




                             11th Commitment:
                             “Not committing criminal acts of corruption, gratification to civil servants, state officials or
                             anyone else”

                             All employees are prohibited from committing corruption and/or giving or giving gratuities
                             to civil servants or state administrators or other parties is considered giving bribes related
                             to their position and contrary to their obligations or duties. If employees are proven to have
                             committed corruption and/or gratification, they will be processed legally with the threat
                             of punishment as regulated in Law no. 20 of 2001 concerning Amendments to Law no.
                             31 of 1999 concerning the Eradication of Corruption Crimes and is subject to sanctions in
                             accordance with Company Regulations.




        Apart from the 12 (twelve) Work Commitments as stated          The programs and procedures carried out to overcome
        in m Compliance Policy Standards, the Company also             corruption practices, kickbacks, fraud, bribery and/
        re-emphasizes the prohibition of all forms of bribery,         or gratification in the Company in 2023, include the
        gratification or the like, either directly or indirectly, in   following:
        any form, including but not limited to cash, valuables         1. Disseminate the 12 Basic Commitments to
        or other forms, whether as the recipient or giver in all            Compliance Standard Policy in Company Induction
        transactions carried out by the Company with any                    Program (CIP) activities in 12 (twelve) activities and
        party to obtain unfair business profits as formulated in            3 (three) times via webinar;
        article 20 paragraph (15) of the Company Regulations,          2. Socialize PT Bussan Auto Finance’s Anti-Corruption
        which read “Every employee is obliged to maintain                   and/or Bribery Policy to all Company employees in
        the good name and image of the Company, and in                      July 2023;
        connection with His duties and work at the Company are         3. Disseminate anti-corruption practices, kickbacks,
        not permitted to accept gifts in any form from parties              fraud, bribery and/or gratification through the
        outside the Company, whether partners, suppliers or                 Compliance & APU PPT PPPSPM Test (CAMP Test)
        customers of the Company. The provisions regarding this             material which will be held from July to August 2023,
        matter are regulated separately by the Employer.” Giving            which will be attended by all employees;
        gratuities and the like as already explained is an unlawful    4. Conduct outreach through the Let’s Obey bulletin
        act because it is intended to influence the recipient’s             every month. During 2023, 12 (twelve) Let’s Obedient
        decision/behavior in accordance with what the giver                 bulletins have been published;
        desires, both for the Company’s and personal interests.        5. Increase employee awareness by publishing an Anti-
                                                                            Fraud Bulletin every 3 (three) months. This bulletin




330
Page 331
PT BUSSAN AUTO FINANCE




                                                                                                                                HIGHLIGHTS
                                                                                                                                PERFORMANCE
   contains information and understanding regarding
   fraudulent acts/actions that can occur in the work             Anti-Fraud Policy
   environment, and information regarding the dangers
   of fraud. During 2023, the Anti-Fraud Working Unit        The Company realizes that one of the risks that the
   has published 4 (four) Anti-Fraud Bulletins; And          Company must be aware of is operational risk which
6. Conduct regular outreach to employees both at the         includes the risk of fraud committed by employees and
   head office and at network offices. During 2023, to       external parties. Departing from this and realizing the




                                                                                                                                REPORT
                                                                                                                                MANAGEMENT
   increase awareness of the Company’s employees             level of complexity of the Company’s business, the
   regarding the dangers of corruption/fraud, the Anti-      Company already has a Fraud Control Guidelines and
   Fraud Work Unit has held activities in the form of        Anti-Fraud Strategy. The guidelines were prepared
   training and outreach 24 (twenty four) times;             based on the POJK No. 35/POJK.05/2018 concerning
7. The Company also periodically carries out awareness       the Business Implementation of Financing Companies,
   via e-mail, employee PC desktop wallpapers, TV            and various other related regulations. In 2023, there
   screens in the head office, including regarding the       was no changes and/or adjustments to the Company’s
   prohibition on accepting gifts, and other information     Fraud Control Guidelines and Anti-Fraud Strategy.
   to constantly remind employees
                                                             In complying with POJK No. 35/POJK.05/2018
                                                             concerning the Implementation of Financing Company
     Fraud Controlling                                       Business, the Company’s Fraud Control Guidelines and




                                                                                                                                PROFILE
                                                                                                                                CORPORATE
                                                             Anti-Fraud Strategy have regulated, among others,
Fraud is an act of deviation or omission that is             related to:
intentionally carried out to deceive, cheat, or manipulate   a. Fraud control
the company, debtor, or other party, which occurs within     b. Implementation of anti-fraud strategy
the company and/or uses company facilities so as to          c. Reporting
cause the company, debtor, or other party to suffer          d. Whistleblowing/Complaint Handling
losses, and/or has the potential to harm the company
materially and morally and/or fraud perpetrators obtain      Preparation of the Guidelines for Fraud Control and
financial benefits, either directly or indirectly.           Anti-Fraud Strategy has considered at least internal and
                                                             external environmental conditions of the Company;
The objectives of implementing the Anti-Fraud Policy in      complexity of business activities; potential, type, and
                                                             risk of fraud; and the adequacy of the required resources.




                                                                                                                                DISCUSSION & ANALYSIS
                                                                                                                                MANAGEMENT
the Company are as follows:
a. Fostering an Anti-Fraud culture at all levels of the      The Company’s Board of Directors has appointed an
    Company’s organization.                                  official, such as the Fraud Control Officer, which is held
b. Raising awareness and concern for the risk of fraud       by Erdyan Blueuardi. The Fraud Control Officer carries
    in the Company’s operational activities, so that it is   out the fraud control function who is directly responsible
    always reliable in providing financial services to the   to the President Director for handling the Company’s
    public.                                                  fraud control. Fraud Control Officer has integrity,
c. As a reminder for the operational implementers of         independence, and sectoral competency.
    the Company to comply with prevailing procedures
    and regulations.                                         There are 4 (four) fraud controlling major pillars, as
    Creating the Company’s human resources who are           follows:
    reliable and always ready to accept challenges.



                                                  FRAUD CONTROLLING
                                                                                                                                GOVERNANCE
                                                                                                                                CORPORATE




      ACTIVE MONITORING          ORGANIZATION STRUCTURE           MITIGATION AND                 EDUCATION
      BY THE MANAGEMENT            AND RESPONSIBILITY              MONITORING                   AND TRAINING




                                                                Commitment which contains 5 (five) commitments
     Anti-Fraud Controlling and Strategy                        is always socialized to employees. The contents of
     Implementation in 2022                                     the Anti-Fraud Commitment are disclosed in the
                                                                Code of Ethics section of this annual report. Every
Several initiatives that have been made in the Company,         first Monday of every month, all employees declare
among others:                                                   together an “Anti-Fraud Commitment” after doing
                                                                                                                                REPORT
                                                                                                                                SUSTAINABILITY




a. The Company has established an Anti-Fraud                    the morning prayer.
   Commitment that must be adhered to by all
   employees. Throughout 2023, the Anti-Fraud



2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                331
Page 332
  CORPORATE
  GOVERNANCE




        b. The Company has established a fraud awareness             1. Anti-fraud awareness to employees, especially
           communication channel (hotline) which is managed             to Account Receivable Head (ARH), Marketing
           by the Anti-Fraud Unit and continues to monitor              Head (MH). Chief Credit Marketing Officer
           follow-up actions through periodic meetings.                 (CCMO), Credit Marketing Officer CAR, and
        c. The Board of Directors has periodically reported the         Sales Team Leader This training will be held in
           Anti-Fraud Summary Report and SMS Hotline Report             August and September 2023. Total participated
           quarterly to the Board of Commissioners in the Joint         participants were 1,192 participants;
           Meetings of the Board of Directors and Board of           2. Internal Control Ambassador Socialization
           Commissioners which have been held 4 (four) times            & Discussion in February, May, August and
           during 2022.                                                 November 2023;
        d. The Company continues to update its information
           technology system from time to time in line with the      3. Buletin Anti Fraud Socialization in February,
           Company’s needs and provides maximum security                May, August and October 2023;
           against possible abuse by employees or external           4. Socialization of the Anti-Fraud Campaign by
           threats.                                                     sending WhatsApp messages to all employees
        e. Preparation of education plans and implementation            every month starting from March to December
           of anti-fraud training/socialization. The training/          2023; and
           socialization to increase awareness in 2023 is as         5. Socialization of the Anti-Fraud Campaign on
           follows:                                                     Employee desktop wallpapers for 1 to 2 weeks in
                                                                        March, May, September and November 2023.




                                                                  through the implementation of an effective Anti-Money
               Anti Money Laundering and Combating                Laundering, Combating the Financing of Terrorism,
               the Financing of Terrorism (AML CFT)               and Prevention of Proliferation of Weapon of Mass
                                                                  Destruction Financing (AML, CFT & PPWMDF).
        The Company realizes, as a financial service provider,
        the Company is very vulnerable to the risk of Money       As implementation of above-mentioned program,
        Laundering (AML), Terrorism Financing (CFT), and Mass     the Company has appointed officers in charge in
        Destruction Weapons (PPWMDF) Proliferation Funding.       implementation of the AML, CFT & PPWMDF programs.
        Therefore, the Company seeks to mitigate this risk by     The officer is the person in charge of implementing the
        carrying out various prevention and control efforts,      AML, CFT & PPWMDF programs). The officers shall be




332
Page 333
PT BUSSAN AUTO FINANCE




                                                                                                                               HIGHLIGHTS
                                                                                                                               PERFORMANCE
appointed or assigned by the Board of Directors and          b. Propose, compile and update AML, CFT & PPWMDF
can only concurrently carry out the risk management             Guidelines that have been prepared to manage and
function and/or compliance function.                            mitigate risks based on a risk assessment of Money
                                                                Laundering and/or Terrorism Financing criminal
                                                                acts in accordance with POJK, laws or implementing
     AML CFT & PPWMDF Policy                                    regulations, to ask for consideration and approval
                                                                from the Board of Directors and the Board of




                                                                                                                               REPORT
                                                                                                                               MANAGEMENT
Implementation of AML, CFT & PPWMDF program                     Commissioners;
is commitment of the Board of Directors and Board            c. Ensuring that there is a system that can identify,
of Commissioners. In implementing the AML, CFT &                analyze, monitor and provide reports effectively
PPWMDF program, the Company refers to the provisions            on the characteristics of transactions made by
under the Law and Regulations, as follows:                      consumers (AML, CFT & PPWMDF);
                                                             d. Ensuring AML, CFT & PPWMDF Policies and Procedures
1. Law Number 8 of 2010 (Law on Money Laundering)               are in accordance with changes and developments
   on Prevention and Eradication of Money Laundering            which include, among others, products, services, and
   Crime.                                                       technology in the financial services sector, business
2. Law Number 9 of 2013 concerning the Prevention               activities & complexity, as well as the Company’s
   and Eradication of Terrorism Financing Crimes.               transaction volume;
3. POJK No. 8 of 2023 concerning Implementation of           e. Ensuring that the request form for data/documents




                                                                                                                               PROFILE
                                                                                                                               CORPORATE
   Anti-Money Laundering, Combating Financing of                related to the Debtor (know your customer/ KYC)
   Terrorism and Prevention of Proliferation of Weapon          has accommodated the data required in the
   of Mass Destruction Financing in Financial Service           implementation of the AML, CFT & PPWMDF
   Sector.                                                      Implementation Policies and Procedures;
4. Financial Services Authority Circular Letter (SEOJK)      f. Monitor customer accounts and implementation of
   No. 37/SE.OJK.05/2017 concerning Guidelines for              customer transactions;
   Implementation of Anti-Money Laundering and               g. Evaluate the results of monitoring and analysis of
   Combating Financing of Terrorism Programs in the             Debtor transactions to ensure that there are or are
   Non-Bank Financial Industry Sector.                          not Suspicious Financial Transactions, Cash Financial
5. Financial Services Authority Circular Letter                 Transactions and/or financial transactions of fund
   (SEOJK) No. 29/SEOJK.01/2019 as Amendment to                 transfers to and from overseas;




                                                                                                                               DISCUSSION & ANALYSIS
                                                                                                                               MANAGEMENT
   Financial Services Authority Circular Letter No. 38/      h. Administer the results of monitoring and evaluation;
   SEOJK.01/2017 concerning Guideline of Immediate           i. Ensuring the updating of customer data and profiles
   Blocking on Customers’ Funds in Financial Service            as well as customer transaction data and profiles as
   Sector whose Identity is Included in Terrorism Suspect       well as reporting to the relevant authorities;
   and Terrorism Organization List.                          j. Ensuring that business activities that have a high
6. Financial Service Authority Circular Letter (SEOJK)          risk of money laundering and/or terrorism financing
   No. 31/SEOJK.01/2019 concerning Guideline                    crimes are identified effectively in accordance with
   of Immediate Blocking on Customers’ Funds in                 the Company’s policies and procedures as well as the
   Financial Service Sector whose Identity is Included          regulations of the POJK and other prevailing laws;
   in Proliferation of Weapon of Mass Destruction            k. Ensuring a good communication mechanism from
   Financing in Financial Service Sector and other              each related work unit to the support team or
   related regulations.                                         officials responsible for the implementation of the
                                                                AML, CFT & PPWMDF programs by maintaining the
The Company also has AML, CFT & PPWMDF Guideline.               confidentiality of information and paying attention
In 2023, there guideline has been updated as                    to anti-tipping-off provisions;
recommended by Board of Directors and approved by            l. Supervise the implementation of AML, CFT &
Board of Commissioners on December 5, 2023.                     PPWMDF;
                                                                                                                               GOVERNANCE
                                                                                                                               CORPORATE




                                                             m. Ensuring the identification of high-risk areas related
The Company also has appointed an officer, Yulius               to the implementation of the AML, CFT & PPWMDF
Ariyasatya as the official in charge on implementation          programs by referring to the provisions of laws and
of the AML, CFT & PPWMDF programs. The official must            regulations and adequate sources of information;
be appointed or appointed by the Board of Directors and      n. Receive and analyze reports of suspicious financial
can only concurrently carry out the risk management             transactions and/or cash financial transactions
function and/or compliance function.                            submitted by related functions;
                                                             o. Prepare reports on Suspicious Financial Transactions,
The main duties of the AML, CFT & PPWMDF Officers are           Cash Financial Transactions, and/or financial
as follows:                                                     transactions of fund transfers to and from overseas
a. Analyze periodically the risk assessment of Money            (if any);
    Laundering and/or Terrorism Financing crimes related     p. Periodically oversee and ensure follow-up on DTTOT
    to the Debtor, country or geographic area, product,         and DPPSPM has complied to law and regulation
    service, transaction or distribution network (delivery      concerning TPPT prevention and eradication
                                                                                                                               REPORT
                                                                                                                               SUSTAINABILITY




    channels);                                                  and provisions regarding PPSPM prevention and
                                                                eradication;




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                               333
Page 334
  CORPORATE
  GOVERNANCE




        q. Oversee, analyze, and recommend training needs             d. Initiative to report 6 (six) Suspicious Financial
           regarding the implementation of the AML, CFT &                 Transactions (TKM) to PPATK (Center for Financial
           PPWMDF program for all employees of the Company;               Transaction Reports and Analysis).
        r. Ensure all activities for AML, CFT and PPWMDF              e. Development of an information system that can
           programs implementation has been carried out                   monitor, identify, analyze and provide reports with
           properly; and                                                  transaction characteristics based on the risks carried
        s. Perform other assignments for AML, CFT and                     out;
           PPWMDF programs implementation                             f. Maintain and update DTTOT & DPPSPM received by
                                                                          the Company to enrich internal data in the customer
        According to POJK No. 8 of 2023 concerning Anti-Money             analysis process.
        Laundering, Combating Financing of Terrorism and              To support monitoring activities for customer profiles
        Prevention of Proliferation of Weapon of Mass Destruction     and transactions so that they can run effectively. The
        Financing in Financial Service Sectoras legal basis for the   Company carries out monitoring, identification and
        Policies and Procedures for the Implementation of AML,        analysis processes and reports to PPATK if suspicious
        CFT & PPWMDF, There are 5 pillars of enforcement of           financial transactions (TKM) are found. The Company has
        the application of AML, CFT & PPWMDF, which have also         an information system that supports the implementation
        been adopted by the Company, as follows:                      of AML, CFT & PPWMDF. Throughout 2023, the Company
        A. Active monitoring from Board of Directors and Board        will continue to actively use systems and applications
            of Commissioners;                                         aimed at supporting APU, PPT & PPPSPM, including:
        B. Policy and Procedure;                                      a. SIPESAT (Integrated Service User Information
        C. Internal Control;                                              System) based on Circular Letter of the Head of
        D. Management Information System; and                             PPATK No. 08 of 2016 concerning Procedures for
        E. Human Resources and Training.                                  Submitting Integrated Service User Information
                                                                          Through the Integrated Service User Information
                                                                          System Reporting Application;
               Implementation of Anti-Money                           b. PEP (Politically Exposed Person) based on PPATK
               Laundering, Combating Financing of                         Regulation Number 11 of 2020 concerning Procedures
               Terrorism (AML & CFT) in 2023                              for Using the Politically Exposed Person Application;
                                                                      c. Go AML (Go Anti Money Laundering) based on PPATK
        Several initiatives taken by the Company in implementing          Regulation Number 6 of 2021 concerning Procedures
        the AML, CFT & PPWMDF programs in 2023, are among                 for Using the Go AML Application by Supervisory and
        others:                                                           Regulatory Institutions in the context of monitoring
        a. Board of Directors and the Board of Commissioners              compliance whose function is to report Suspicious
            perform active monitoring based on periodic reports           Financial Transactions;
            related to the implementation of the AML, CFT &           d. SIPENDAR (Information System for Suspected
            PPWMDF Programs that are submitted, including                 Terrorism Financing) based on PPATK Regulation
            giving approval regarding the Policies and Procedures         no. 11 of 2021 concerning Information Systems for
            for the AML, CFT & PPWMDF Programs. The AML                   Suspected Terrorism Funding;
            support team, CFT, PPWMDF with the Director of            e. SIGAP (Anti-Money Laundering and Terrorism
            compliance held 12 (twelve) meetings in 2023.                 Financing Prevention Program Information System)
            Total Board of Directors meetings has been held 11            based on SEOJK No. 31/SEOJK.01/2019 concerning
            (eleven) times and number of Board of Directors               Guidelines for Immediate Blocking of Customer Funds
            and Board of Commissioners meetings has been                  in the Financial Services Sector whose identities are
            held 4 (four) times during 2023. The Company has              listed on the List of Funding for the Proliferation of
            adjusted its Policies and Procedures in accordance            Weapons of Mass Destruction)
            with the latest regulations. Policy adjustments for
            the AML CFT & PPWMDF Guidelines recommended               Implementation of training programs for all employees
            by the Board of Directors and approved by the Board       in the APU, PPT & PPPSPM fields to produce human
            of Commissioners on December 5, 023. Various other        resources who have an adequate level of expertise and
            policies have also been approved, including: Updates      knowledge in carrying out their duties. In 2023, training
            to the APU, PPT & PPPSPM Risk Based Approach (RBA)        for all employees in the APU, PPT & PPPSPM fields will
            policies, and Parameters for Suspicious Financial         be actively carried out, including for employees at the
            Transactions and Cash Financial Transactions.             Company’s network offices, as follows:
        b. The Company has also carried out AML, CFT &                1. Company Induction Program was held for more than
            PPWMDF compliance audits by the Internal Audit                3,466 new employees at head office and network
            Work Unit and in 2023, operational audits will run            offices;
            regularly for network offices and will also involve       2. Webinar related to POJK No. 8 of 2023 concerning
            audits on the implementation of AML, CFT &                    the Implementation of Anti-Money Laundering
            PPWMDF;                                                       Programs, Prevention of Terrorism Financing, and
        c. Periodic socialization regarding the prohibition on            Prevention of Funding for the Proliferation of Weapons
            accepting cash for installment payments/payments              of Mass Destruction in the Financial Services Sector
            above > Rp50,000,000 (fifty million Rupiah) via email         is held at the Management level. Webinar related to
            to all network offices;                                       POJK No. 8 of 2023 concerning the Implementation




334
Page 335
PT BUSSAN AUTO FINANCE




                                                                                                                            HIGHLIGHTS
                                                                                                                            PERFORMANCE
   of Anti-Money Laundering Programs, Prevention of           to acquisitions, including Credit Marketing Officer
   Terrorism Financing, and Prevention of Funding for         (CMO) and Sales Team Leader (STL); And
   the Proliferation of Weapons of Mass Destruction        4. Compliance APUPPT & PPPSPM Mandatory Test
   in the Financial Services Sector was also held for         (CAMP Test) which is held from July to August for all
   network office employees;                                  employees.
3. Internal Basic Certification was held for more than
   2,000 employees, especially for functions related




                                                                                                                            REPORT
                                                                                                                            MANAGEMENT
                          5 PILLARS OF ENFORCEMENT OF THE APPLICATION OF AML, CFT & PPWMDF


           ACTIVE MONITORING FROM BOARD OF DIRECTORS
           AND BOARD OF COMMISSIONERS


                          POLICY AND PROCEDURE


                                    INTERNAL CONTROL




                                                                                                                            PROFILE
                                                                                                                            CORPORATE
                                              MANAGEMENT INFORMATION SYSTEM


                                                         HUMAN RESOURCES AND TRAINING




                                                                                                                            DISCUSSION & ANALYSIS
                                                                                                                            MANAGEMENT
                                                                                                                            GOVERNANCE
                                                                                                                            CORPORATE
                                                                                                                            REPORT
                                                                                                                            SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                            335
Page 336
  CORPORATE
  GOVERNANCE




                     CODE OF CONDUCT


        Code of conducts refers to a conducts guideline for for        external regulations. Therefore, the Company views
        all of the Company’s personnel in carrying out daily duty      the importance to maintain high ethical standard in
        and activity as well as in engaging business relation with     running the business activity. Therefore, the Company
        all customers, business partners and work colleagues.          has continuously built employee’s awareness to always
        The Code of Conduct becomes the basis for employee’s           uphold good integrity, ethics, moral, norms, manner
        conducts and action to work professionally and ethically       and work conducts in carrying out their duty and
        using basic principles referring the Company’s vision,         responsibilities.
        mission and values as well as prevailing internal and


                                                   CO MP LI A NC E S TA NDA RD P OLI C Y




                      COMPANY                                   COMMITMENT                                 ANTI-FRAUD
                      REGULATIONS                               TO WORK                                    COMMITMENT




                                                                       The Company’s is highly determined by the awareness
               Code of Conducts Contents                               of the employees to always develop positive work
                                                                       conducts with high integrity, morals, and ethics.
        The Company has a Corporate Regulation as a basic              Therefore, the Company also has a Work Commitment
        legal framework related to employment, including               as disclosed in Compliance Standard Policy in the
        implicit disclosure of the code of ethics and corporate        Company aiming to build awareness of the employees
        values for the employees including the work guideline.         thereby always upholding integrity, ethics, moral,
        The Corporate Regulation is updated regularly. The             norms, values and work behaviors in carrying out their
        Corporate Regulations, which is used as reference for          duty and responsibility.
        the Company, has been reviewed periodically according
        to provisions and have been ratified by the Ministry of        In 2023, the Company has updated Compliance Standard
        Manpower of the Republic of Indonesia according to             Policy as disclosed in Board of Directors Approval Memo
        Decree of the General Director of Industrial Relations         No. 004/AM-RMC/04/2023 dated April 28, 2023. The
        Development and Social Security for Workers Number             update is done namely concerning the addition of 11
        Kep.4/HI.00.00/00.0000.221209001/B/XII/           2022         (eleven) to 12 (twelve) Work Commitments by adding
        concerning Ratification of Corporate Regulations dated         data confidentiality aspect.
        December 14, 2022. The Corporate Regulations is valid
        until 2024.                                                    In the Compliance Standard Policy, the Company has
                                                                       stipulated the 12 Working Commitment, as follows:



                                         12 (TWELVE) WORKING COMMITMENT


                        1. Exercising duty and authority                                   2. Always improve understanding
                           with full of integrity, honesty,                                   and abilities in such a way, so
                           and responsibility.                                                that they can complete tasks
                                                                                              and responsibilities properly.




336
Page 337
PT BUSSAN AUTO FINANCE




                                                                                                                          HIGHLIGHTS
                                                                                                                          PERFORMANCE
               3. Will not use my position/                              4. Promise to protect company
                  authority for the benefit of                              documents and secrets as well
                  myself, family, or relatives.                             as possible.


               5. Maintain company assets                                6. Report to the leadership of any
                  entrusted to employees as well                            violation of company laws/




                                                                                                                          REPORT
                                                                                                                          MANAGEMENT
                  as possible.                                              regulations committed by other
                                                                            employees (escalation).


               7. Refuse any giving of money                             8. Will not steal company money
                  or gifts in any form from third                           and property in any form or
                  parties/other related parties.                            way.


               9. Will not engage in sexual                              10. Maintain the good name of the
                  harassment, drunkenness,                                   company in any situation and
                  violence and threats, gamble,                              condition.




                                                                                                                          PROFILE
                                                                                                                          CORPORATE
                  use drugs and illegal drugs.


               11. Not committing criminal acts of                       12. The employee always perform
                   corruption, gratification to civil                        Action with integrity on
                   servants, state officials or to                           the Company’s securities
                   anyone.                                                   and protect confidentiality
                                                                             of internal data and/or
                                                                             information not to disseminate
                                                                             publicly regarding the




                                                                                                                          DISCUSSION & ANALYSIS
                                                                                                                          MANAGEMENT
                                                                             Company’s position as Issuer at
                                                                             the Stock Exchange.




In the Compliance Standard Policy, the Company               well as other actions that may vilate the Company’s
maintains three sub-major in codes of ethics, not only       laws and regulations.
limited to Commitment to Work, but also related to        6. All employees shall always comply with all
Code of Ethics in Serving the Consumers, and Code of         regulations, corporate regulation and values related
Ethics on Corporate Data and Information, as follows:        to the code of ethics in serving the consumers.

Code of Ethics in Serving the Consumers                   Code of Ethics regarding Company Data and
1. All employees, especially in charge in marketing and   Information
   directly engagement with the consumers, shall be       1. The Company’s documents and information are
   polite and friendly and committed to understand           important Company assets and mandatory to
                                                                                                                          GOVERNANCE
                                                                                                                          CORPORATE




   the customer’s needs.                                     protect the existence and confidentiality from any
2. All employees shall respond every complaint               unauthorized party. Based on their job descriptions,
   or feedback promptly and proactively, listen              all employees are responsible to prepare, use, keep
   empathetically and provide appropriate responses          and maintain the Company’s documents/data/
   while always concerning the Company’s interest.           information in the correct manner according to
3. All employees shall prioritize service quality,           the Company’s policies, regulations and standard
   including tidiness and cleanliness of the place in        operating procedures (SOP). Likewise, when
   serving the consumers.                                    destroying or disposing the unused documents, you
4. All employees shall provide correct and accurate          shall refer to existing regulations.
   information regarding benefits of the product and      2. Form      of    Documents/data       and  Company
   service and not discredit the products of other           Information, including all of the Company’s data
   companies in offering products and services to the        (based on copyright or non-copyright) related to
   consumers.                                                the Company’s business and operations, including
5. All employees shall try to observe consumers’             hardcopy or softcopy as well as qualitative and
                                                                                                                          REPORT
                                                                                                                          SUSTAINABILITY




   profiles and oversee the transactions to avoid money      quantitative data, in form of reports, letters/
   laundering and suspicious customer transactions, as       memorandums, manuals, policies, procedures and




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                          337
Page 338
  CORPORATE
  GOVERNANCE




             programs as well as plans, files, diskettes, microfilm,   Anti-Fraud Commitment
             photos, customer and project information, financial       We are BAF Employees:
             reports, including and not limited to employee            1. Realize that FRAUD actions violates the Company’s
             personal data, for example salaries, loans, health           regulations, laws and regulations as well as religious
             and education records, or related to work or any             norms.
             data/information within the Company’s scope.              2. Realized that FRAUD actions abuses the Company’s
        3.   All employees shall record and report all information        mandated trust.
             and data correctly and accurately.                        3. Recognizing that FRAUD actions may harm the
        4.   All employees are not permitted to keep archives and         offender, his family, and the Company.
             other financial data in locations where unauthorized/     4. Commitment not to think, plan, perform and involve
             interested people may see, acknowledge, record or            in any means of FRAUD actions.
             duplicate the data.                                       5. Committed to consistently support and implement
        5.   All employees shall report to the competent                  all Anti-Fraud Policies
             leadership if they receive pressure from anyone to
             perfo irregularitierm violation in administration or
             other irregularities that are against the Company’s            Scope of Implementation
             internal policies and/or prevailing Regulations and
             Legislation.                                              The Corporate Regulation prevails for all employees
        6.   All employees shall protect confidentiality of            at head office and network office as the guideline
             potential customer, customer and corporate data.          in determining, preparing, and regulating the work
        7.   All employees are not permitted to inform other           requirements and mechanism, to be understood
             employees of their salary/income.                         and exercised by all employees appropriately. In
        8.   Violation of this commitment is considered as very        addition, the Compliance Guideline contains 12 Work
             serious violation and the Company will ensure that        Commitment, and Anti-Fraud Commitment, which also
             strict sanctions are imposed against any violations       applies for all employees and Management and will be
             committed by the employees.                               improved consistently through a mature consideration
                                                                       and in line with provisions of the prevailing Law.
        The Company also has Anti-Fraud Commitment as
        disclosed in Fraud Controlling and Anti-Fraud Strategy
        Guideline as approved by the Board of Directors. The                Socialization and Enforcement
        Anti-Fraud Commitment is disclosed in Board of Directors            Initiative
        Memo Approval No. 0003/AM-AUD/02/2021 dated
        February 4, 2021. The Anti-Fraud Commitment contains           Corporate Regulations, the Company’s Compliance
        3 (three) commitment of employee’s awareness to                Standard Policy and the Company’s Anti-Fraud
        risk and sanction due to fraud and 2 commitment to             Commitment are always disseminated, including
        prevent case of fraud.                                         as basic training materials for new employees. The
                                                                       Company has also distributed a book link/copy of the
                                                                       Company Regulations to all employees, including every
                                                                       new employee. To ensure that every employee has read,
                                                                       understood and is ready to implement, each employee
                                                                       is required to sign a statement declaring:




               I, hereby declare, have accepted and read the Company Regulations and have understood the contents
               of these Company Regulations. Furthermore, I promise to comply with all prevailing regulations as well
               as possible and be ready to accept all the consequences.




        In 2023, the Company also drafted PT Bussan Auto                     the prevailing code of conducts. The Company
        Finance Anti-Corruption and/or Bribery Policy which                  always strives to improve and improve every
        adapted the Guidelines from the Corruption Eradication               business process so that it is in line with the
        Commission (KPK). This policy is contained in AM No.                 principles of integrity. The Company implements
        0012/RMC/VI/2023 - AM BAF Anti-Corruption and/                       the principle of zero tolerance towards actions
        or Bribery Policy, which has also been socialized to all             related to corruption, bribery and violations of
        Company employees, including:                                        related laws and regulations, including acts
                                                                             against the laws applicable in Indonesia;
        1. Top Management Anti-Corruption Commitment:                     b. The Company does not allow all levels of
           a. The company is committed to run the business                   leadership, employees, and even third parties
              according to its vision, mission, and values,                  who work for and on behalf of this Company to
              including the integrity value and complying to                 lure, promise, or give something to state officials



338
Page 339
PT BUSSAN AUTO FINANCE




                                                                                                                                     HIGHLIGHTS
                                                                                                                                     PERFORMANCE
      or to anyone else in the event that the action                       trips, free medical treatment and other
      includes an act that lacks integrity or is an act                    facilities. These gratuities are either received
      against     law;                                                     domestically or abroad and are carried out
   c. The Company does not allow all employees                             using electronic means or without electronic
      within the scope of the Company’s work to                            means.
      request gifts from individuals or organizations
      related to their duties at the Company;                              All employees are prohibited from




                                                                                                                                     REPORT
                                                                                                                                     MANAGEMENT
   d. The Company regulates conflicts of interest for                      committing corruption and/or giving or
      each employee. Any conflict of interest that has                     sending gratification to Civil Servants or
      the potential to pose a risk must be declared;                       State Officials or other parties which can
   e. The Company is committed to always providing                         be considered or equated with giving bribes
      socialization and training regarding corruption                      related to their position and contrary to
      prevention or business/operational processes                         their obligations or duties. Furthermore,
      with integrity on a regular basis to all leaders                     the employees are also required to comply
      and employees;                                                       with applicable Company Regulations and
   f. The company will monitor the implementation                          Anti-Bribery Commitments. If an employee
      of this commitment and any violation of the                          is proven to have committed corruption
      code of ethics will be subject to sanctions                          and/or gratification, he will be processed
      mechanism.                                                           legally with punishment as regulated in




                                                                                                                                     PROFILE
                                                                                                                                     CORPORATE
                                                                           Law no. 20 of 2001 as Amendments to Law
2. Commitment to Anti-Corruption and Bribery by                            no. 31 of 1999 concerning the Eradication
   Employees:                                                              of Corruption Crimes and is subject to
   a. Refuse any gratification of money or any kind of                     sanctions in accordance with the Company
      reward from third parties/other related parties.                     Regulations.
      Third parties/other related parties referred to
      here are prospective consumers, consumers,               3. Anti-Corruption and Bribery Clause of the
      dealers, sellers of goods/services who collaborate          Company with Other Parties:
      or will collaborate, insurance, company affiliates,         The Anti-Corruption and Bribery Clause shall be
      auction houses and anyone who will later be                 agreed upon by the collaborating parties, namely
      designated as third parties/related parties other.          the Company and other parties/partners, both




                                                                                                                                     DISCUSSION & ANALYSIS
                                                                                                                                     MANAGEMENT
      Forms of gifts/gratifications other than money              before and after the collaboration. The clause
      that are prohibited from being accepted include             shall be stated in the Cooperation agreement
      travel (tours), transportation tickets, tickets for         between the two parties, so that the obligation and
      visual and/or non-visual entertainment rides                responsibility to implement the clause lies with the
      (including hotels, karaoke, others), movable                parties who voluntarily enter into the agreement.
      and/or immovable goods that can be valued                   The following is an example of an Anti-Corruption
      in money. Receiving money or reward that can                and Bribery clause as a reference in the Cooperation
      be categorized as bribery, which is considered a            Agreement:
      serious violation.                                          a) Each party agrees that, at the time of entering
   b. Not committing criminal acts of corruption,                     into this contract, all relevant levels of the parties
      gratification to civil servants, state officials or             including and not limited to the directors, board
      anyone else.                                                    of commissioners, officers and employees have
      1) Corruption against the Law no. 31 of 1999                    never and will not offer, promise, give, authorize,
          concerning the Eradication of Corruption                    request or accept any undue or other advantage
          Crimes (“Tipikor Law”) means that every                     (or imply that they will or may do something in
          person who unlawfully commits an act of                     the future) with anything related to the contract,
          enriching themselves or another person or                   and that sufficient measures have been taken
                                                                                                                                     GOVERNANCE
                                                                                                                                     CORPORATE




          a corporation which may threat the state’s                  to prevent the partner/vendor/supplier, agent
          finances or the state’s economy. Employees                  or third party another, who is the subject of his
          are prohibited from committing criminal                     control or influence to do such action;
          acts of Corruption and if employees are                 b) All parties agree that, throughout the time
          suspected and have sufficient evidence of                   related to the contract and thereafter, they
          having committed Corruption then they will                  will comply with and will take sufficient action
          be prosecuted criminally with the threat of                 to ensure that sub-contactors, agents or other
          punishment as regulated in the Corruption                   third parties who are the subject of their control
          Law;                                                        or influence will also comply with Law Number
      2) Gratification against the Law no. 20 of                      31 1999 in conjunction with Law Number 20
          2001 concerning Amendments to Law no.                       of 2001 concerning Eradication of Corruption
          31 of 1999 concerning the Eradication of                    Crimes and Law Number 8 of 2010 concerning
          Corruption is a gift in a broad sense, which                Prevention and Eradication of Money Laundering
          includes giving money, goods, rebates                       Crimes;
                                                                                                                                     REPORT
                                                                                                                                     SUSTAINABILITY




          (discounts),      commissions,     interest-free        c) If a party, as a result of exercising the right to
          loans, travel tickets, lodging facilities, tourist          be audited as stated in the Agreement, is found




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                     339
Page 340
  CORPORATE
  GOVERNANCE




               by another party with evidence of accounting        know, understand and implement the compliance
               books and financial records showing that the        standards that have been stipulated in the prevailing
               party is involved in indications of violations,     regulations and internal policies.
               notification will be given, and the party will be
               asked to take corrective action in the shortest     Anti-Fraud Commitment is also declared by all employees
               possible time and inform about the action. If the   every month on the first Monday. To ensure employees
               party concerned fails to take corrective steps or   always memorize, the Company creates material in
               it is not possible to implement corrective steps    form of posters or digital material (e-flyers) which can
               and fails to explain that an adequate prevention    be presented via digital means (desktop wallpaper or
               system has been implemented as part of the          TV screen) thereby can be seen by all employees at
               organizational culture, then the other party may    branch offices and/or head office. Throughout 2023,
               revoke or cancel the contract.                      Anti-Fraud Unit has published 9 (nine) materials in the
                                                                   form of posters or digital materials (e-flyers) within the
        Throughout 2023, the Company has carried out               Company.
        socialization on the Company Regulations via e-mail
        sent to all Company employees both at the head office      The Company also provides a communication channel
        and at network offices. In addition, the Company           for employees to report any occurring violations to
        has also conducted socialization regarding Industrial      the Company’s values and ethics which will be further
        Relations for Non-Industrial Relations to all network      processed by relevant department.
        office leaders on December 24, 2023 which aimed to
        provide information regarding prevention methods,
        reporting methods and so on in the event that cases of          Type of Code of Conducts Violation
        violations are found in the Company’s network offices.          Punishment
        The Compliance Standard Policy has also been               The Company will impose punishment for anyone
        socialized to the Company’s employees, such as via         violating the Code of Conducts according to the
        email (electronic mail), Compliance Induction Program      prevailing law.
        and webinars. In addition, the Compliance Work Unit        Type of sanctions are including:
        (SKK) has held the Compliance & AML CTF PPPSPM             1. Reprimand Letter
        Test (CAMP Test) which was attended by all Company         2. 1st Warning Letter
        employees with an adequate passing percentage. This        3. 2nd Warning Letter
        is a routine program carried out by the Company to         4. 3rd Warning Letter
        ensure that employees who work within the Company          5. Lay-Off (PHK)




340
Page 341
PT BUSSAN AUTO FINANCE




                                                                                                                                  HIGHLIGHTS
                                                                                                                                  PERFORMANCE
             ADMINISTRATIVE
             SANCTION




                                                                                                                                  REPORT
                                                                                                                                  MANAGEMENT
In 2023, the Company neither received any material administrative sanction or the Financial Service Authorities (OJK)
and other related authorities that may affect the Company’s businesses going concern or charged to the Board of
Directors, Board of Commissioners and Sharia Supervisory Board members




             IMPORTANT




                                                                                                                                  PROFILE
                                                                                                                                  CORPORATE
             CASES

In 2023, the Company did not encounter/involve in           The Company is also not involved in any legal dispute or




                                                                                                                                  DISCUSSION & ANALYSIS
                                                                                                                                  MANAGEMENT
(i) any criminal or civil case which is running at State    case other than above – mentioned trial court, either in
Court, High Court and Supreme Court, (ii) dispute that      civil, criminal, state administration, bankruptcy, arbitrary,
has been settled in Indonesia National Arbitrary Body;      taxation or labor affairs, including legal notice submitted
(iii) submisison of bankruptcy or debt payment liability    by any party which may cause negative impact against
postpone in Commercial Court; (iv) Industrial Dispute       the Company’s business activity or financial condition.
case or Lay-Off (PHK) case in Industrial Relation Court;
(v) State Administration Dispute in State Administration    Therefore, litigation with material impact that involves
Court; (vi) tax dispute or case in Tax Court; and (vii)     the Company, Board of Directors and Board of
dispute in Customer Dispute Settlement Body, which          Commissioners members including: subject of the case/
involves the Company or Board of Commissioners and          lawsuit; status of case/lawsuit settlement; and impact to
Board of Directors members, and causes material impact      condition of the Issuers or Public Company; are irrelevant
to the Company’s business going concern.                    to be disclosed in this report.

                                                                                                                                  GOVERNANCE
                                                                                                                                  CORPORATE
                                                                                                                                  REPORT
                                                                                                                                  SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                  341
Page 342
  SUSTAINABILITY
  REPORT




                        SUSTAINABILITY
                        REPORT
         ONLY WITH CHOSEN BAMBOO, A TENACIOUS AND PRECISE PROCESS CAN PRODUCE A
         MELODIOUS SOUND OF ANGKLUNG. WE BELIEVE, SERIES OF OUR CONSISTENT ATTEMPTS
         AND STRATEGIES WILL BRING THE COMPANY TO CONTINUE TO GROW TOWARDS A LEADING
         AND TRUSTED FINANCING COMPANY.



342
Page 343
                         PERFORMANCE   MANAGEMENT   CORPORATE   MANAGEMENT              CORPORATE    SUSTAINABILITY
                         HIGHLIGHTS    REPORT       PROFILE     DISCUSSION & ANALYSIS   GOVERNANCE   REPORT




                                                                                                                      343
                                                                                                                       2023 ANNUAL REPORT & SUSTAINABILITY REPORT
PT BUSSAN AUTO FINANCE
Page 344
  SUSTAINABILITY
  REPORT




                          ABOUT THE
                          SUSTAINABILITY REPORT


         GRI [2-2] [2-3] [2-4] [2-5]                                  In preparing this report, the Company has not involved
         The Company prepares Sustainability Report every year        any independent party to provide assurance on the
         for one fiscal year period, which is from 1 January to 31    report. The report is prepared by Corporate Planning &
         December. This report is the fourth report for the Company   Secretary, where all data and information reported have
         regarding the sustainable finance implementation in          been validated by the relevant work unit as the data
         2023.                                                        contributor.

         This 2023 Sustainability Report contains data and            In this report, there is a restatement of information
         information on the sustainability performance of the         that was submitted in the previous year’s report, which
         entity PT Bussan Auto Finance (“the Company”) for 1          is the Sustainability Business Activity Category Portfolio
         January to 31 December 2023 period. This Sustainability      (KKUB) as restated in this report due to changes in the
         Report is published on the same day as the Annual Report     calculation of data coverage. This restatement only has
         is published or at the latest when the Annual GMS is         an impact on the Company’s total KKUB portfolio.
         called for the fiscal year 2023.
                                                                      This sustainability report preparation process has
         In preparing the Sustainability Report, there are several    considered balance, comparability, accuracy, timeliness,
         standards and regulations that are used as references        clarity and reliability principles.
         and/or benchmarks for the Company, such as:
         1. Financial Services Authority (OJK) Regulation Number      For further information, feedback and suggestions for
             51/POJK.03/2017 concerning the Implementation            improvement and progress of this report, please contact:
             of Sustainable Finance for Financial Services
             Institutions, Issuers and Public Companies.              Corporate Secretary
         2. OJK Circular Letter No. 16 /SEOJK.04/2021 concerning      BAF Plaza
             the Form and Content of Annual Reports of Issuers or     Jl. Raya Tanjung Barat No. 121, Jagakarsa,
             Public Companies.                                        South Jakarta 12530, Indonesia
         3. Global Reporting Initiative (GRI) Standards 2021,         Telephone: +62 21 2939 6000
             with reference to the GRI Standards;                     E-mail: baf.sekretariat@baf.id
         4. GRI-G4 Financial Services Sector supplement
             indicators;
         5. Sustainability Accounting Standard Board (SASB) for
             the Financial Services sector.




344
Page 345
PT BUSSAN AUTO FINANCE




                                                                                                                              HIGHLIGHTS
                                                                                                                              PERFORMANCE
               IMPACT LIMITATIONS AND
               MANAGEMENT APPROACH




                                                                                                                              REPORT
                                                                                                                              MANAGEMENT
     Material Topics and Sustainability Issues                    Material Topic Determination Process
     [GRI 3-1][3-2] [3-3]

                                                             Identifying and assessing business impacts through the
In 2022, in determining material topics and limits, the
                                                             review of sustainable financial principles.
Company involved the Sustainable Finance Task Force
and related divisions and was assisted by independent
                                                             1. Understanding the Company’s business activity




                                                                                                                              PROFILE
                                                                                                                              CORPORATE
consultants by adjusting issues and performance
                                                                processes.
that are relevant for the Company and the Board
                                                             2. Conducting internal discussions and distributing
of Directors. The review of material topics was
                                                                surveys to more than 70 (seventy) stakeholders,
carried out through internal discussions for internal
                                                                including shareholders, business partners, creditors,
stakeholders and subsequent distribution of survey to
                                                                investors, the public, consumers, regulators in 2022
internal stakeholders and external stakeholders, which
                                                             3. Identifying the positive and negative impacts,
included shareholders, business partners, creditors,
                                                                as well as actual and potential impacts of the
investors, communities, consumers, and regulators.
                                                                Company’s business activity processes by conducting
Furthermore, the Company reviewed the survey results
                                                                an assessment of the level of importance of each
to determinate the priority of material topics. The
                                                                impact of the Company’s activities.
priority of material topics also considered the impact




                                                                                                                              DISCUSSION & ANALYSIS
                                                                                                                              MANAGEMENT
on the Company and it’s stakeholders and concerned
to the context of the Company’s sustainability and
                                                                  Determining Material Topics
stakeholders’ expectation.
                                                             Rank material topics that are considered material based
In 2023, the material topics are monitored and
                                                             on input from stakeholders through discussions with
synergized to support the Sustainable Development
                                                             the Company’s Directors and the consultants,, then
Goals (SDG) and in accordance with the Company’s
                                                             presented in the Sustainability Report.
business strategy. The results of determining material
topics are evaluated by the Sustainable Finance Task
Force and/or management by considering the impact
                                                                  Carrying out Evaluations
limits on stakeholders. There are no significant changes
to material topics, impact limits, or reporting cycles for
                                                             Monitoring and evaluating material topics by Sustainable
the 2023 sustainability report as determined in the
                                                             Finance Taskforce.
Sustainable Finance Task Force meeting on December
14, 2023..
                                                                                                                              GOVERNANCE
                                                                                                                              CORPORATE
                                                                                                                              REPORT
                                                                                                                              SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                              345
Page 346
  SUSTAINABILITY
  REPORT




                                                                               MATERIALITY TOPICS MATRIX

                                               4

                                                                                                                                     1
                                                                                                                                           2
                                                                                                                                 3

                                                                                                                             4                 6
                                                                                                                                     5
                                               3
        influence on stakholder assesment




                                               2




                                               1




                                                                           1                     2                      3                          4
                                                             Significance of economics, environmental, and social impacts in the Company




            Materiality Topics


                                                     Customer Privacy & Data               Occupational Health and               Portfolio Products &
                                        1                                          3                                     5
                                                     Security                              Safety                                Digitalization

                                                                                           Training & Education
                                        2            Anti-Fraud                    4                                     6       Financial Inclusion




                                            Social                Governance           Economy




346
Page 347
PT BUSSAN AUTO FINANCE




                                                                                                                         HIGHLIGHTS
                                                                                                                         PERFORMANCE
                                      Customer Privacy & Data Security



Impact to Stakeholders                Managed Impact




                                                                                                                         REPORT
                                                                                                                         MANAGEMENT
1)   Employee                         Trust is a fundamental principle that must be managed. Therefore, the
2)   Shareholders                     Company is committed to manage the data security and privacy of every
3)   Customer                         customer as well as its impact. The positive impact of managing this topic
4)   Government/regulators            is increasing customer confidence to use the Company’sproducts and/
                                      or services, so that the Company needs to continuously to improve the
                                      data security system. In line with the Company’s effortsto accelerate
                                      digitalization, this topic must be mainly concerned, especially related
                                      customer privacy and efforts to improve the data systems in the midst of
                                      rampant cyber threats, data leakage, and theft.




                                                                                                                         PROFILE
                                                                                                                         CORPORATE
Policy                                Strategy and Evaluation                  Target and Achievements

•    General Policy No. 0031/         •   Improve the quality of               •   Adopting ISO 27001 data
     AM-CP/08/2021 Chapter                Information Security                     security standards and
     III - Policy of Company              Management System and                    guidelines on Information
     Important Information                its team, such as ISO or                 Security Management
•    IT Standard Policy No. 0075/         certification (ISO, certification)       Systems
     AM-ITO/11/2021 Chapter           •   Conduct security testing                 In 2023, the Company has
     III - IT Security Policy             on all systems/applications              obtained ISO 27001
•    Compliance Standard Policy           (source code security review,        •   Significant IT and/or data
     No. 0016/AM-RMC/10/2021              vulnerability assessment,                security incidents




                                                                                                                         DISCUSSION & ANALYSIS
                                                                                                                         MANAGEMENT
     - J. Classification of               penetration testing)                     In 2023, there is no
     Personal Data/Information        •   Source code security review,             significant IT incidents
     Management                           vulnerability assessment,                related to data security, and
•    IT SOP No. 0004/AM-                  penetration testing                      there was no complaints
     ITSG/02/2023 Chapter X IT        •   Update information security              from consumers regarding
     Security Management                  policies to further improve asset        data privacy.
•    Business Intelligence                information security                 •   Increasing awareness
     & Analytics Division             •   Conduct sharing and awareness            of data security for all
     Standard Policy No. 0027/            sessions with employees, for             employees through LMS.
     SP-BIA/II/2021 Chapter II            example through LMS, email               Training related to data
     Confidentiality and Security         blast, desktop, TV screen, etc.          security has been provided
     of Debtor Data/Information)          and induction programs for new           to 100% employees. The
•    POJK No. 4/2021 the                  employees                                company also routinely
     Application of Risk                                                           carries out phishing testing
     Management in the Use of                                                      to test employee awareness
     Information Technology by                                                     levels.
     Non-Bank Financial Services                                               •   Team capabilities
     Institutions                                                                  development
                                                                                                                         GOVERNANCE
                                                                                                                         CORPORATE




•    PERMENKOMINFO No. 20                                                          In 2023, the Company
     Year 2016 on Protection of                                                    have employees who have
     Personal Data in Electronic                                                   been certified Cerfitied
     Systems                                                                       Information Systems
                                                                                   Auditor (CISA) dan Certified
                                                                                   Information Security
                                                                                   Manager (CISM) regarding
                                                                                   data security.
                                                                                                                         REPORT
                                                                                                                         SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                         347
Page 348
  SUSTAINABILITY
  REPORT




                                            Anti-Fraud



         Impact to Stakeholders             Managed Impact

         1)   Employee                      The Company is committed to implement anti-fraud, including the
         2)   Shareholders                  implementation of socialization and training on anti-fraud policies and
         3)   Customer                      procedures, as well as it’s management within the Company. If this topic is
         4)   Local community               not appropriately managed, it will impact the Company’s reputational risk.
         5)   Government/regulators         The Company is committed to conducting the operations that uphold strong
         6)   Investors                     ethics and governance practices. The Company’s position in the financial
                                            sector also the data this topic need to be appropriately managed.




         Policy                             Strategy and Evaluation                   Target and Achievements

         •    GCG Guideline dated March     •   Foster an Anti-Fraud culture at       •   Establishment of Ladies
              2022                              all levels of the organization            Investigators
         •    Guideline of Fraud Control,   •   Increas awareness and                     The Company has
              Anti Fraud Strategy and &         concern for the risk of fraud in          established an Investigation
              Anti Fraud Commitment             operational activities, including         Desk and Ladies Investigator
              dated February 2021               conducting awareness sessions             Unit which function as added
         •    Standard Policy of                for employees, for example                value to the investigation
              Internal Audit No. 0009/          through LMS, email blasts,                function in the Anti Fraud
              AM-AUD/09/2023 dated              desktops, TV screens, and                 Unit. The formation of the
              September 2023                    induction programs for new                Ladies Investigator Unit is
         •    Compliance Policy Standard        employees                                 part of the implementation
              No. SP-RMC-010-004 dated      •   Take precautions to reduce the            of the concept of gender
              28 April 2023 - 12 (Twelve)       number of frauds, for example             equality which aims to
              Commitments                       SLIK Surveillance checks, anti-           accommodate female
         •    APU PPT PPPSPM dated May          drugs, etc.                               employees so they can be
              2023                          •   Increase employee                         more open and comfortable
                                                understanding and compliance              in reporting incidents of
                                                with applicable regulations by            fraud and violations.
                                                conducting regular outreach and       •   Conduct compliance and
                                                awareness to all employees.               anti-fraud training
                                                                                          In 2023, the Compliance
                                                                                          National Test (CNT) Test
                                                                                          and Anti-Fraud & AML CFT
                                                                                          training was implemented
                                                                                          with participation reaching
                                                                                          100% of all employees. The
                                                                                          average scores reached 82,
                                                                                          compared to 78.6 in 2022.
                                                                                      •   Zero significant fraud
                                                                                          incidents
                                                                                          In 2023, no significant fraud
                                                                                          was occured.
                                                                                      •   Decrease in the ratio of
                                                                                          total fraud losses compared
                                                                                          to financing receivables
                                                                                          In 2023, the ratio of total
                                                                                          fraud losses to financing
                                                                                          receivables was 0.15% or
                                                                                          stable compared to 2022.




348
Page 349
PT BUSSAN AUTO FINANCE




                                                                                                                         HIGHLIGHTS
                                                                                                                         PERFORMANCE
                                      Occupational Health & Safety



Impact to Stakeholders                Managed Impact




                                                                                                                         REPORT
                                                                                                                         MANAGEMENT
1)   Employee                         The occupational health and safety is fundamental and vital in the
2)   Shareholders                     Company. Awareness of occupational health and safety is very important
3)   Customer                         to be managed and strived as it affects the smooth run of the Company’s
4)   Business partner                 operations. The Company’s efforts and commitment in managing the aspects
                                      of occupational health and safety aspects of the employees, including
                                      improving the quality ofemployee health, initiatives, and various training
                                      and awareness for employees regarding Occupational Health and Safety,
                                      including safety riding. The outbreak of the COVID -19 pandemic also made
                                      the Company need to be more careful. The Company implements strict
                                      health protocols and ensures that employee health is met.




                                                                                                                         PROFILE
                                                                                                                         CORPORATE
Policy                                Strategy and Evaluation                  Target and Achievements

•    Company Regulation No.           •   Continue Covid-19 prevention at      •   Road accident rate
     16/PHIJSK-HKP/PP/IV/2021             BAF                                      In 2023, the incidence rate
     dated April 2021                 •   Organize corporate wellness              of road accidents reached 76,
•    P2K3 Committee Guideline             program (BAF Club sharing,               with a fatality rate of 0%.
•    Covid-19 Taskforce No.               sports & hobbies) including          •   Implementation of Safety
     SK-003/2021 Changes                  organizing and promote                   Riding campaigns and
     on Covid-19 Taskforce of             Occupational Health and                  health awareness on a
     Company                              Safety activities through                regular basis




                                                                                                                         DISCUSSION & ANALYSIS
                                                                                                                         MANAGEMENT
                                          various activities and seminars/         The Company has held
                                          socialization, including Medical         awareness and seminars
                                          Check Ups for certain levels of          related to Safety Riding
                                          employees.                               with total participant
                                      •   Provide a decent and safe work           participation reached
                                          environment.                             222. The Company also
                                      •   Increase employee awareness of           has 3 employees on the
                                          safety riding                            Occupational Health
                                      •   In 2023, continued to conduct            and Safety Committee
                                          corporate wellness to increase           with General K3 Expert
                                          employee engagement, one                 certification
                                          of which is Fit for Growth for       •   Employee productivity
                                          Employee program which                   reaches 3.5x
                                          focuses on improvement,                  In 2023, productivity raached
                                          especially in the emotional and          3.2x or was still below the
                                          physical aspects.                        target due to the various
                                      •   Medical check up for certain             challenges faced in 2023 and
                                          positions (SM level)                     the impact on business and
                                                                                                                         GOVERNANCE
                                                                                                                         CORPORATE




                                                                                   financial achievements.
                                                                               •   Employee medical check up
                                                                                   program
                                                                                   In 2023, the Company
                                                                                   conducted employee medical
                                                                                   check up to 349 employees.
                                                                                                                         REPORT
                                                                                                                         SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                         349
Page 350
  SUSTAINABILITY
  REPORT




                                         Training & Education



         Impact to Stakeholders          Managed Impact

         1)   Employee                   Education and training are essential in the Company’s business growth and
         2)   Customer                   development. Therefore, the Company continuously provides training and
         3)   Business partner           various career development programs as well as employee competencies
         4)   Government/regulators      to improve their skills in contributing to the progress of the Company. The
         5)   Public                     company strives to ensure that employee competencies are constantly
                                         updated in line with the developments in business needs and strategies. This
                                         will have an impact on employee productivity which ultimately affects the
                                         achievement and performance of the company.


         Policy                          Strategy and Evaluation                   Target and Achievements

         •    SOP-LND-004 dated June     •   Implement and develop                 •   Training hours min. 8 hours
              2022                           training programs for                     per employee per year
         •    Company Regulation No.         employees (technical skills, soft         In 2023, employee training
              16/PHIJSK-HKP/PP/IV/2021       competencies)                             hours reached 19.4 per year,
              dated April 2021           •   Ensure compliance with                    an increase compared to
         •    POJK Regulation No.            certification (Board of                   2022.
              47/2020 concerning             Commissioners, Directors, and         •   Realization of training costs
              business licensing and         certain employee levels as                In 2023, actual employee
              institutional financing        determined by regulations)                training and development
              companies and sharia       •   Utilize the use of e-learning to          costs reached Rp19.6 billion.
              financing companies            make it easier for employees to       •   Fulfillment of managerial
                                             access learning anywhere and              certification, billing
                                             anytime.                                  certification, as well
                                         •   Implement and develop                     as certification and
                                             sustainability culture, and               refreshment points for the
                                             increase employee capacity                Board of Commissioners &
                                             from Management level to staff            Board of Directors.
                                             regarding sustainability              •   Launch of BAF Learning
                                                                                       Center (mobile version)
                                                                                       The Company has launched
                                                                                       BAF Learning Center,
                                                                                       including the desktop version
                                                                                       and mobile version of the
                                                                                       Learning Management
                                                                                       Systems (LMS). A total
                                                                                       of 9,143 employees have
                                                                                       accessed the LMS in 2023.
                                                                                   •   Implementation of special
                                                                                       capacity building for
                                                                                       sustainability
                                                                                       In 2023, Sustainability
                                                                                       Month held. A total of 120
                                                                                       employees starting from
                                                                                       Department Head up to
                                                                                       Board of Directors and Board
                                                                                       of Commissioners levels have
                                                                                       participated in this capacity
                                                                                       building.




350
Page 351
PT BUSSAN AUTO FINANCE




                                                                                                                          HIGHLIGHTS
                                                                                                                          PERFORMANCE
                                      Product Portfolio & Digitalization



Impact to Stakeholders                Managed Impact




                                                                                                                          REPORT
                                                                                                                          MANAGEMENT
1)   Shareholders                     The impact of positive economic performance will provide value for all
2)   Employee                         stakeholders. Therefore, the achievement of economic performance is crucial
3)   Customer                         to manage as one of the determining factors for business sustainability.
4)   Business partner                 A diverse product portfolio supported by accelerated digitization will
5)   Investor & Creditor              contribute the Company’s future achievements.
6)   Regulators




Policy                                Strategy and Evaluation                   Target and Achievements




                                                                                                                          PROFILE
                                                                                                                          CORPORATE
•    Annual Business Plan             •   Maintain sustainability               •   Productive financing >10%
     and Mid Term Plan of the             performance (order quality &              In 2023, the total productive
     Company                              good financial performance)               financing ratio reached
•    Approval Memo No.                •   Diversify products to cover               24.2%.
     0003/2022 Productive                 more segments while maintain          •   Launching new products
     Finance inc. MSMEs                   the product development                   to support sustainability
     Classification                       innovation.                               financing
•    Approval Memo No.                •   Carry out enhancements                    Since 2022, the two products
     005/2022 Car Finance (EV)            and developments that can                 that have been marketed
•    Information Technology               contribute to new digital leads           are BAF PraDana & BAF
     Roadmap Plan                         and financing.                            AdiDana.
•    Information Technology SOP       •   Efficiently utilize technology        •   NMC: non-NMC product




                                                                                                                          DISCUSSION & ANALYSIS
                                                                                                                          MANAGEMENT
     No. 0004/AM-ITSG/02/2023             and digitalization to support             portfolio will be 60:40 in
     Chapter II IT Strategy and           business operations.                      2023
     Planning Management                                                            In 2023, the total portfolio
                                                                                    of new Yamaha motorcycle
                                                                                    financing products and other
                                                                                    financing was 55:45.
                                                                                •   Digital leads >3.5 million
                                                                                    In 2023, digital leads
                                                                                    reached 1,561,238
                                                                                •   Approval process in 30
                                                                                    minutes >75%
                                                                                    In 2023, the approval
                                                                                    process in 30 minutes has
                                                                                    reached 62%.
                                                                                                                          GOVERNANCE
                                                                                                                          CORPORATE
                                                                                                                          REPORT
                                                                                                                          SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                          351
Page 352
  SUSTAINABILITY
  REPORT




                                             Financial Inclusion



         Impact to Stakeholders              Managed Impact

         1)   Employee                       The Company’s efforts in providing and expanding as well as improving
         2)   Public                         services to the society, including financial literacy/education and financial
         3)   Customer                       inclusion are part of the Company’s commitment. The quality and services
         4)   Regulators                     of the Company significantly affect the performance, reputation, and trust of
         5)   Business partner               consumers and other stakeholders. The ease and availability of the Company’s
                                             services are essential to reach various segments of society. The Company will
                                             continue to improve the best services while strengthening its role in improving
                                             financial literacy and inclusion in Indonesia.




         Policy                              Strategy and Evaluation                     Objectives and Achievements

         •    AM No. 0024/AM-                •   Increase the number of Xtra BAF         •   Increase in the number of
              CP/06/2022 Chapter VI              agents including increasing their           BAF Xtra Agents
              Network Strategy And               productivity.                               Total Xtra BAF agents
              Management                     •   Expand and optimize network                 increased by 20.9% in 2023
         •    AM No. 0136/AM-                    offices.                                    to 53,189
              MKS/09/2023 – Xtra BAF         •   Carry out joint marketing               •   Customer contribution from
              Agent                              activities with business partners           repeat orders (RO)
         •    SOP financial literacy dated       (dealers) and offering various              RO contribution in 2023
              March 2020                         programs to loyal consumers                 reached 41.1%
         •    POJK No. 76/POJK.07/2016           with good financing history.            •   Customer touchpoints
              concerning Improving           •   Improve the best and excellent              As many as 3,671,307 million
              Financial Literacy and             service to consumers                        BAF Mobile downloaders
              Inclusion in the Financial     •   Carry out financial literacy                with payment agents
              Services Sector for                activities                                  consisting of banks,
              Consumers and/or the                                                           e-commerce, e-wallets and
              Community                                                                      retail outlets.
                                                                                         •   Consumers Satisfaction
                                                                                             Level (CSL)
                                                                                             CSL’s score in 2023 was
                                                                                             90.8%, better than 2022.
                                                                                         •   Implementation of various
                                                                                             financial literacy activities
                                                                                             There were 8 financial
                                                                                             literacy activities for the
                                                                                             women’s community
                                                                                             (housewives, MSMEs,
                                                                                             teachers, students and the
                                                                                             disabled community with
                                                                                             a total of 461 participants.
                                                                                             The accumulative level of
                                                                                             increase in knowledge was
                                                                                             37.0%.




352
Page 353
PT BUSSAN AUTO FINANCE




                                                                                                                           HIGHLIGHTS
                                                                                                                           PERFORMANCE
               SUSTAINABILITY
               STRATEGY




                                                                                                                           REPORT
                                                                                                                           MANAGEMENT
     Sustainability Framework
     [GRI 2-22, 2-23, 2-24]


In implementing sustainability strategy, the Company      This Sustainability Framework consisting three
has Sustainability Framework based on materiality         sustainability pillars asmanifestation of the company’s
assessments involving stakeholders. This Sustainability   commitment to sustainability aspects. The sustainability
Framework has been approved by the Board of Directors     pillars are prepared based on the Company’s mission by
and Board of Commissioners.                               aligning the Company’s future plans and targets.




                                                                                                                           PROFILE
                                                                                                                           CORPORATE
                                               GOVERNANCE




                                                                                                                           DISCUSSION & ANALYSIS
                                                                                                                           MANAGEMENT
               SOCIAL                             ECONOMY                            ENVIRONMENT
                                                                                                                           GOVERNANCE
                                                                                                                           CORPORATE




             Customer Privacy &                  Occupational Health                    Portfolio Products &
             Data Security                       and Safety                             Digitalization
                                                                                                                           REPORT
                                                                                                                           SUSTAINABILITY




                                                 Training & Education
             Anti-Fraud                                                                 Financial Inclusion




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                           353
Page 354
  SUSTAINABILITY
  REPORT




              Our Support for Sustainable
              Development Goals
              [GRI 2-22]


         In 2023, the Company continue various
         activities to run its business by prioritizing
         sustainable principles and values. The
         Company is committed to support
         Sustainability Development Goals (SDGs)
         achievement.                                     Relevant Indicators:
                                                          • Indicator 3.8.1 - Unfulfilled Need Health Services.

                                                          Strategy:
                                                          • Create a healthy, safe and comfortable working
                                                              atmosphere.
                                                          • Provide health education through internal health
                                                              campaigns.
                                                          • Carry out Medical Check-Up (MCU) for certain
                                                              positions.
                                                          • Implement safety riding for all employees.
                                                          • Increase employee productivity.
                                                          • Carry out regular socialization and disaster response
                                                              simulations.
                                                          • Implement of flexi hours at head office.

                                                          2023 Achievements:
                                                          • Continuing Fit for Growth program which involves all
                                                             employees, consumers and partners of the Company
                                                             with a focus on physical and emotionally fit for 8
                                                             months. The achievements of this program can be
                                                             seen in Fit for Growth.
                                                          • Employee productivity at the end of the year reached
                                                             3.2x with BAF Employee Survey (BES) score of 84.
                                                          • Carrying out health webinars and campaigns
                                                             about attended by 710 employees and reactivated
                                                             corporate wellness programs such as BAF Club
                                                             (sports): yoga, badminton and other sports activities
                                                          • There are 349 employees who have carried out
                                                             Medical Check-Up (MCU).
                                                          • The work accident rate was 0.24% of total employees
                                                          • Gradually renovating the workplace at the head
                                                             office with an open workspace concept to create an
                                                             adaptive and comfortable working atmosphere.
                                                          • There is a training room, sports corner, canteen,
                                                             library, praying room, pantry at the head office
                                                             complete with equipment that employees can use
                                                             for their activities.
                                                          • Mandatory safety riding e-learning has been
                                                             participated by 8,280 employees or 100% of the
                                                             total employees who are required to do so in January
                                                             2023.
                                                          • Implementation of WFH and WFO work systems for
                                                             employees at head office and flexy time.




354
Page 355
PT BUSSAN AUTO FINANCE




                                                                                                                                 HIGHLIGHTS
                                                                                                                                 PERFORMANCE
                                                                                                                                 REPORT
                                                                                                                                 MANAGEMENT
SDGs Relevant Indicators:                                    Relevant SDG Indicators:
• Indicator 4.3.1 - Level of participation of teens          • Indicator 5.5.2 - Proportion of women in managerial
   and adults in formal and non-formal education and            positions.
   training in the last 12 months, by gender.
                                                             Strategy:
Strategies:                                                  • Provide work opportunities to all employees,
• Carry out training to increase employee capacity,              regardless of ethnic background, religion, gender,
    either offline, hybrid or online or through e-learning       race and class, or other things that are discriminatory
    applications (LMS).                                          in nature and have the potential to violate Human
• Provide mandatory certification and training in                Rights (HAM).




                                                                                                                                 PROFILE
                                                                                                                                 CORPORATE
    accordance with regulatory requirements.                 • Implement equality for all employees regardless of
• Attend training related to sustainable finance.                gender to improve careers.
• Organize financial literacy and inclusion activities for   • Provide facilities and infrastructure to employees who
    the general public, MSMEs, women’s communities,              are pregnant/give birth.
    teachers, students and people with disabilities.
                                                             2023 Achievements:
2023 Achievements:                                           • There were 849 female employees or equivalent to
• 100% of employees have participated in training               22.5% of the total employees.
   and competency development with total of 9,157            • There were 138 female employees or 70.8% of the
   employees with average training hour of 19.4 hours           total employees recruited by the Company.
   per employee.                                             • There were 22.4% who served Senior Management




                                                                                                                                 DISCUSSION & ANALYSIS
                                                                                                                                 MANAGEMENT
• 149 of employees at the managerial level are                  positions.
   required to take part in sustainable finance training     • There is 1 woman served as President Director
   via e-learning applications (LMS) and there were 120         position on the Board of Directors.
   employees or 80.5% of the total employees who are         • A total of 44 employees took maternity leave,
   required to take part in sustainable finance training        54 employees took paternity leave, and 85 took
   during Sustainability Month.                                 menstrual leave.
• Realization of HR development funds in the form of         • There is a lactation room (nursery room) in the head
   certification, seminars and training for employees           office which is equipped with breast milk storage.
   reached Rp19.6 billion.                                   • Has a Lady’s Hotline to accommodate complaints
• There were 461 participants who took part in the              from women regarding sexual harassment.
   2023 financial literacy activities, the participants
   consisted of the general public, farmers, teachers,
   MSMEs, women’s communities, students and people
   with disabilities.
• Assistance in the form of scholarships to employee
   families, namely educational scholarships to 75
                                                                                                                                 GOVERNANCE
                                                                                                                                 CORPORATE



   children of employees with good evaluations.
• There were more than 3,900 beneficiary children
   from BAF Caring for Children activities throughout
   2023.
                                                                                                                                 REPORT
                                                                                                                                 SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                 355
Page 356
  SUSTAINABILITY
  REPORT




         Relevant SDG Indicators:                                  Relevant SDG Indicators:
         • Indicator 8.1.1 - GDP per capita growth rate.           • Indicator 9.3.2 - Proportion of small scale industries
         • Indicator 8.3.1.(a) - Percentage of formal workforce.      with loans or credit.
                                                                   • Indicator 9.b.1 - Proportion of medium and high
         Strategy:                                                    technology added-value to total added-value.
         • Improve employee welfare.
         • Support environmentally friendly transportation         Strategy:
             financing.                                            • Develop digital innovation.
         • Develop and optimize Xtra BAF agents for                • Educate and conduct socialization regarding data
             community economic empowerment.                           security to employees and consumers.
         • Expand the Company’s financing product line as a        • Conduct socialization and education on digital use in
             one stop financial solution to improve community          the financing process.
             welfare through financing that suits their needs.     • Expand and improve customer touchpoints such as
         • Carry out community empowerment through Social              online payment channels/payment points and digital
             and Environmental Responsibility (TJSL) activities.       partnerships.
         • Develop the role and capabilities of frontliners to     • Develop application and system innovations to
             provide more comprehensive solutions to consumers.        support the digitalization process in supporting
                                                                       company operations.
         2023 Achievements:                                        • Support and assist in the financing disbursement to
         • Total employees of the Company at the end of the            Micro, Small and Medium Enterprises (MSMEs).
            year reached 3,774 employees (permanent and
            contract).                                             2023 Achievements:
         • Total Xtra BAF agents has reached more than 53          • The number of BAF Mobile downloaders have
            thousand agents spread throughout Indonesia               reached 3.7 million.
            with an incentive value distributed reached Rp76.6     • Digital leads at the end of 2023 have reached 1.6
            billion.                                                  million.
         • Total debtors/consumers at the end of 2023 reached      • Approximately 87% of consumers have used online
            860,153 with repeat order contribution of 41.1%.          payment for instalment payments.
         • Total financing disbursement for environmentally        • Product and digital literacy has been carried out by
            friendly vehicle products (hybrid and EV) reached         publishing 99 (ninety nine) articles throughout 2023
            Rp975.9 billion with total of 41,767 units.               with total page view of 30,925 (thirty thousand nine
         • Total Social and Environmental Responsibility (TJSL)       hundred and twenty five).
            costs incurred amounted to Rp2.1 billion.              • Added BAF Mobile features such as BAF Points,
         • Total completion customer complaints in 2023               partners location, and other features.
            reached 99.3%.                                         • A total of 37 e-mail blasts regarding data security
                                                                      awareness were released.
                                                                   • Obtained ISO 27001 certification regarding
                                                                      Information Security Management Systems.
                                                                   • Continue marketing of two financing products to
                                                                      MSMEs, namely BAF PraDana and BAF AdiDana so
                                                                      that the Company’s total financing products include
                                                                      6 types of financing products that can be reached
                                                                      by various segments and groups.
                                                                   • Total financing disbursement to MSMEs amounted
                                                                      to Rp5.1 trillion with total units reaching 212,542
                                                                      units.




356
Page 357
PT BUSSAN AUTO FINANCE




                                                                                                                            HIGHLIGHTS
                                                                                                                            PERFORMANCE
                                                                                                                            REPORT
                                                                                                                            MANAGEMENT
Relevant SDG Indicators:                                  Relevant Indicators:
• Indicator 12.2.1 - Material footprint                   • Indicator 16.5.1.(a) - Anti-Corruption Behavior Index
• Indicator 12.5.1.(a) - Amount of recycled waste            (IPAK).
• Indicator 12.6.1 - Number of companies that
   publish their sustainability reports                   Strategy:
                                                          • Implement Good Corporate Governance (GCG).
Strategy:                                                 • Have an Anti-Corruption Policy to reduce corruption
• Carry out green operations strategy by prioritizing         and bribery in all its forms.
    digitalization.                                       • Evaluation of all business activities in accordance
• Initiate energy, water, and paper use efficiency.           with regulations and thorough understanding by




                                                                                                                            PROFILE
                                                                                                                            CORPORATE
• Organize BAF ECO Move movement as a afforestation           employees.
    movement.                                             • Implement anti-fraud and make the whistleblowing
                                                              system effective.
2023 Achievements:                                        • Comply with provisions of the Law, both in IKNB and
• Paper savings of 38.0%.                                     in the capital market, and other related regulations.
• Continuing digitalization efforts for process and       • Human rights complaints handling.
   paperless efficiency.
• The use of motion sensor lights and timers, and use     2023 Achievements:
   of Light-Emitting Diode (LED) lamps which reach        • No significant fraud occurred and reported by the
   95% in the head office.                                   Company.
• Use of rooftop Solar Power Generation (PLTS) system     • The 2023 Compliance National Test was conducted




                                                                                                                            DISCUSSION & ANALYSIS
                                                                                                                            MANAGEMENT
   with capacity of 31.86kWp at the Company’s head           for all employees, including outsourced workers with a
   office.                                                   passing rate reached 100% in 2023 with an average
• There is 1 (one) electric car for the Company’s            score of 82, an increase from 80 in 2022.
   operations and the provision of charging station at    • 100% of employees have participated in anti-fraud
   the head office which can be used to charge electric      training via LMS.
   batteries.                                             • Declaration/signing of anti-fraud commitment by all
• Planting 20,000 mangrove tree seedlings in 6 major         employees.
   cities in Indonesia through BAF ECO Move involving     • The Company’s soundness level gets a score of 1
   89,758 consumers, as well as 647 employees and            (one).
   dealers.                                               • Conducted stress tests on the Company’s financial
                                                             projections.

                                                                                                                            GOVERNANCE
                                                                                                                            CORPORATE
                                                                                                                            REPORT
                                                                                                                            SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                            357
Page 358
  SUSTAINABILITY
  REPORT




              Sustainable Finance Principles of the Company



                                                  The Company attempts to make investment approach or financing
            Responsible investment                distribution decisions that consider increasing economic profits,
                                                  environmental quality, management welfare and governance enforcement.

                                                  The Company strives to determine and implement sustainable business
            Sustainable business strategy         strategies and practices in every decision made. We continue to strive to
            and practise                          minimize negative impacts and integrate economic, social, environmental
                                                  and governance aspects.

                                                  The Company always upholds the prudent principle in every aspect of its
            Social and environmental risk         business, including trying to minimize social and environmental risks from
            management                            all internal activities or projects as well as activities or projects that receive
                                                  financing or investment.

                                                  The Company always implements management and business operations
            Governance principles                 that are transparent, accountable, responsible, independent, equal and fair.

                                                  •   The Company strives to provide informative reports covering strategy,
                                                      governance, performance and prospects
                                                  •   The Company annually through Annual Reports and Sustainability
            Informative communication
                                                      Reports, which are easy to understand and can be accounted for and are
                                                      delivered through effective communication media and can be reached
                                                      by all stakeholders.

                                                  The Company strives to provide equal access to the Company’s products,
            Inclusiveness                         including in various regions and can cover various levels of society through
                                                  continuous innovation of the Company’s products and services.

                                                  The Company will continue to provide support to leading sectors which
            Priority superior sector              are priorities for achieving the Sustainable Development Goals, especially
            development                           MSMEs.

                                                  The Company participates in various activities or invites cooperation with
            Coordination and                      stakeholders on work programs related to the implementation of sustainable
            collaboration                         development to accelerate improvements in economic, social welfare and
                                                  environmental quality.




         The Company realizes that a corporation does not              POJK.03/2017 concerning the Implementation of
         only pursue profit, but also contributes to quality           Sustainable Finance for Financial Services Institutions,
         improvement of the human resources (people) and the           Issuers and Public Companies. Implementation of the
         preservation of nature (planet). On the other hand, the       Sustainable Finance Action Plan in the Company is carried
         Company is committed to implement sustainable finance         out by considering several factors, both external and
         principles. Therefore, all stakeholders are expected to be    internal factors such as financial conditions, technical
         committed to supporting the Company’s business to             capacity and organizational capacity. Therefore, based
         have sustainable grow.                                        on the sustainability strategy roadmap for 5 (five)
                                                                       years, namely 2020 to 2024 which was prepared in
                                                                       2019, the Company divides the implementation of its
              Sustainable Finance                                      sustainable financial action plan into 3 stages, namely
              Action Plan Roadmap                                      the initial implementation stage in 2020 - 2021, the
                                                                       implementation stage continuation in 2022 – 2023 and
         2023 was the advanced stage of the fourth year                the long-term stage, namely the full implementation
         (continuation) of the implementation of sustainable           stage, or where the Company is targeted to have
         finance as stated in the provisions of POJK No. 51/           achieved its vision of sustainable finance in 2024, which




358
Page 359
PT BUSSAN AUTO FINANCE




                                                                                                                                 HIGHLIGHTS
                                                                                                                                 PERFORMANCE
is making contribution to sustainable finance.
    INITIAL IMPLEMENTATION                  ADVANCE                                   FULL IMPLEMENTATION
    PHASE                                   IMPLEMENTATION PHASE                      PHASE
    2020 - 2021                             2022 - 2023                               2024




                                                                                                                                 REPORT
                                                                                                                                 MANAGEMENT
In the advance implementation phase, the Company’s                activity was held for employees, including Senior
sustainability strategy is formulated with a top priority in      Management and Board of Directors, as well as the
the Company’s internal capacity development program.              Board of Commissioners.
This program is implemented through sustainable
finance training. The objective of sustainable finance         2. BAF ECO Move
training is to prepare human resources, especially in             Carbon footprints are carbon dioxide (CO2)
Company’s internally, in implementing sustainable                 emissions resulting from our various daily activities.
finance. This understanding is expected to raise                  For example, when driving, the plastic waste
awareness of the implementation of sustainable                    produced, the electrical energy used and the food
finance in the Company’s business environment which               we consume every day. As a result, it can increase
will create initiatives and innovations for products and          the concentration of greenhouse gases (GHG) which




                                                                                                                                 PROFILE
                                                                                                                                 CORPORATE
services developed in accordance with the principles of           can then bind the sun’s heat. The impact is that the
sustainable finance.                                              temperature on the earth’s surface is increasing or is
                                                                  often known as global warming.
In 2023, implementation of the strategies that have
been carried out are as follows:                                  Therefore, as a company that contributes in motor
                                                                  vehicles financing, the Company is aware that motor
1. Human resource capacity Development                            vehicle exhaust emissions contribute to high levels
   To realize sustainable growth, the Company                     of air pollution including carbon dioxide emissions,
   continues to strive to build a strong foundation by            especially in big cities. Therefore, the Company
   improving the quality of human resources through               organized another BAF ECO Move Greening
   training activities which are expected to create               Movement which has been carried out since 2021.
   professional and have high integrity manpower, who             BAF ECO Move is realized by donating tree seedlings




                                                                                                                                 DISCUSSION & ANALYSIS
                                                                                                                                 MANAGEMENT
   also support implementation of sustainable finance in          in big cities to reduce exhaust emissions from
   the Company. This sustainable finance socialization            motorized vehicles. In 2023, BAF ECO Move was held




                                                                                                                                 GOVERNANCE
                                                                                                                                 CORPORATE
                                                                                                                                 REPORT
                                                                                                                                 SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                 359
Page 360
  SUSTAINABILITY
  REPORT




             on April 12, 2023 to May 31, 2023 simultaneously                 students, farmers, teachers, housewives and people
             in 6 (six) coastal areas/mangrove forest areas in                with disabilities. The Company also always publishes
             Indonesia.                                                       every BAF PEKA activity on the Company’s website.

         3. Implementation of Social and Environmental                     6. Portfolio and digitalization
            Responsibility (CSR) activities                                   Since 2021, the Company’s car financing business
            As a manifestation of the Company’s contribution                  line has started offering Special Electric Vehicles
            to social welfare, the Company carries out social                 (EV) and semi-EV/Hybrid to consumers. This offer
            responsibility activities oriented towards the                    applies to all dealers and is valid nationwide. This
            Sustainable Development Goals (SDGs). The                         Special Electric Vehicle (EV) and semi-EV/Hybrid
            Company’s CSR activities focus on BAF Caring for                  financing is one of the Company’s first steps in
            Children, as a full commitment to support the                     initiating sustainable products as well as a form of
            Sustainable Development Goals (SDGs), especially                  support for government programs which continue
            SDG 4. Various CSR activities held throughout 2023,               to strive to accelerate the formation of the electric
            including BAF Anniversary activities, BAF Sharing                 vehicle ecosystem in Indonesia.
            in the Month of Ramadhan, BAF Year-End, BAF
            Lions Run, BAF United for Care, and Foster Parents.            In 2023, the Company strives to increase its MSMEs
            This CSR activity has had a positive impact on the             portfolio through its two products, namely BAF
            beneficiaries. The implementation of these CSR                 PraDana and BAF AdiDana. The products is expected
            activities is mostly carried out with the target/target        to contribute to productive financing for MSMEs and
            being children and is held in various cities across            micro-productivity. This is in line with the Sustainable
            Indonesia.                                                     Development Goals (SDGs) objectives, where MSMEs
                                                                           have become the front guard in achieving the economic
         4. Sustainable Awareness and Green Campaign                       pillars of the world development agenda by 2030.
            The Company strives to instill sustainability
            principles in all employees which can be applied               The Company also continues to urge consumers to
            in the Company’s operational activities. In 2023,              address the use of digital services including BAF Mobile
            efforts to build awareness carried out with various            and online payments. This effort is expected to have a
            green campaigns as well as building a culture of               positive impact on the environment, such as reducing
            sustainability which is realized through initiatives           paper use and reducing transportation mobility
            that support the implementation of green operations            which has the potential to reduce carbon emissions
            in the Company.                                                as it helps to reduce fossil fuel consumption from
                                                                           transportation previously carried out by consumers
         5. Implementation of Financial Literacy                           when consumers visit network office locations. The
            As a form of the Company’s contribution to society,            acceleration of information technology as an effort to
            the Company is committed to continue in carrying               support sustainable finance through digitalization will
            out educational literacy activities for the community.         also continue to be carried out in 2023 by developing
            In addition, the implementation of this educational            applications and systems.
            literacy activity is also to increase the financial literacy
            and inclusion index in Indonesia. In 2023, there were          Consistently with these initiatives, the Company also
            8 educational literacy activities through the BAF              continuously develops a sustainability dashboard to
            PEKA program (Your Financial Education Program)                improve data-based (quantitative) monitoring of the
            with MSMEs participants, women’s communities,                  Company’s sustainability performance.




360
Page 361
PT BUSSAN AUTO FINANCE




                                                                                                                 HIGHLIGHTS
                                                                                                                 PERFORMANCE
            SUSTAINABILITY
            GOVERNANCE




                                                                                                                 REPORT
                                                                                                                 MANAGEMENT
                                                                                                                 PROFILE
                                                                                                                 CORPORATE
                                                                                                                 DISCUSSION & ANALYSIS
                                                                                                                 MANAGEMENT
                                                  Governance Structure
                                                  [GRI 2-9] [2-11] [2-12] [2-13]
TO SUPPORT BUSINESS
SUSTAINABILITY, THE COMPANY                  To support business sustainability, the Company believes
                                                                                                                 GOVERNANCE
                                                                                                                 CORPORATE



                                             in the importance of consistent corporate governance
BELIEVES IN THE IMPORTANCE                   implementation at every Company’s organization
                                             level and activity. The Corporate Governance structure
OF CONSISTENT CORPORATE
                                             complies to Limited Liability Company Law (UU) with the
GOVERNANCE IMPLEMENTATION AT                 highest organ being the General Meeting of Shareholders
                                             (GMS). The Company has implemented good governance
EVERY COMPANY’S ORGANIZATION                 (GCG) as stated in the Company’s Articles of Association
LEVEL AND ACTIVITY.                          and Corporate Governance Guidelines. This application
                                             refers to the governance principles that refer to practical
                                             business. The report on the implementation of good
                                             governance has also been submitted annually to OJK.

                                             The Company’s governance structure includes:
                                             a. Main Organs, consisting of General Meeting of
                                                                                                                 REPORT
                                                                                                                 SUSTAINABILITY




                                                Shareholders (GMS), Board of Commissioners, and
                                                Board of Directors.




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                 361
Page 362
  SUSTAINABILITY
  REPORT




         b. Supporting Organs, consisting of Committees under           In corporate governance implementation, the Company
            the Board of Commissioners, Board of Directors              has supporting organs in the form of committees under
            Committees, and Work Units that support the                 the Board of Commissioners and committees under the
            implementation of GCG.                                      Board of Directors consisting of:




         Main Organs

                                                 General Meeting of Shareholders




               Board of Commissioner                                                                 Board of Director



         Supporting Organs

             DPS & Committees under                    Commitees under the Board                Work Units that support the
            the Board of Commissioners                       of Directors:                       implementation of GCG:

                   Audit Committee                           Corporate Social                        Internal Audit Unit
                                                         Responsibility Committee
                 Nomination and                                                                     Corporate Secretary
              Remuneration Committee                       Business Continuity
                                                         Management Committee                      Risk Management and
              Risk Monitoring Committee                                                               Compliance Unit
                                                       Occupational Health & Safety
                                                               Committee

                                                         Information Technology
                                                           Steering Committee

                                                         Digitalization Committee

                                                   Risk Management Committee




                                                          Governance Principles




            Transparency          Accountability                 Fairness              Independency            Responsibility

            Openness in          Clarity of function           Justice and               Professional            Compliance
             expressing          and accountability        equality in fulfilling       management            (Compliance) of
          information and        of the Company’s             the rights of            of the company        the management
          making decisions             organs                 stakeholders            without influence/      of the Company
                                                                                      pressure from any      with the laws and
                                                                                            party           regulations and the
                                                                                                            principles of healthy
                                                                                                              management of
                                                                                                                the Company




        Detail explanation of the governance structure has been disclosed in the discussion of the Governance Chapter in this
        report.



362
Page 363
PT BUSSAN AUTO FINANCE




                                                                                                                                 HIGHLIGHTS
                                                                                                                                 PERFORMANCE
     Assessment of Corporate Governance                           Responsible for Sustainable Finance
     Implementation [GRI 2-18]                                    [GRI 2-12] [2-13]


The Company implements corporate governance                  To support the implementation of Sustainable Finance
standards that refer to Financial Services Authority         Action, the Company has task force or the Sustainable
Regulation (POJK) Number 30/POJK.05/2014 concerning          Finance Task Force which is in charge to implementing




                                                                                                                                 REPORT
                                                                                                                                 MANAGEMENT
Good Corporate Governance for Financing Companies,           and implementing the Sustainable Finance Action Plan
and Financial Services Authority Regulation Number           (RAKB) in the Company. The membership composition,
29/POJK.05/2020 concerning Amendments Regarding              duties and responsibilities of the Sustainable Finance
Financial Services Authority Regulation Number 30/           Taskforce are as follows:
POJK.05/2014 concerning Good Corporate Governance
for Finance Companies. Apart from that, the Company          Composition and Membership
also aligns various provisions for the implementation        1. The task force consists of several divisions and/or
of good governance with capital market regulations in           work units related to the Company appointed by the
relation to the Company’s status as a bond issuer.              Company’s Board of Directors.
                                                             2. The business division referred to in point 1 is the
From the side of the Company’s Sharia Business                  division/work unit that at least regulates corporate
Unit (UUS), the implementation of UUS governance                planning, risk management and finance, accounting,




                                                                                                                                 PROFILE
                                                                                                                                 CORPORATE
principles is carried out based on regulations regarding        units, human resources, training and development,
good corporate governance for finance companies                 law, marketing communications and operations.
or other related regulations, as well as POJK No. 10/        3. The composition of the task force may include
POJK.05/2019 concerning Business Implementation                 a sponsor (advisor), Chairperson, secretary, and
of Sharia Financing Companies and Sharia Financing              members.
Company Business Units.                                      4. The task force is chaired by a person appointed by
                                                                members of the task force with approval from the
To measure the implementation of good governance                Board of Directors.
and as a form of implementation of good governance,
the Company has submitted a Good Governance                  Duties and Responsibilities
Implementation Report for the 2022 Fiscal Year on 28         1. Responsible for total management of sustainable
April 2023. This governance report consists of a GCG            financial action program in the Company, including:




                                                                                                                                 DISCUSSION & ANALYSIS
                                                                                                                                 MANAGEMENT
Implementation Report for Financing Companies and               a. Development of financial products and or services
Action Plan. To increase the company’s competitiveness              to increase the portfolio of financing, investment
in responding to increasingly dynamic and competitive               or placement in financial instruments or projects
business demands, the Company is committed                          that are in line with sustainable finance;
to continuing to improve the implementation of                  b. Development of the Company’s internal capacity;
governance and ensuring that the implementation of              c. Adjustment of organization, risk management,
GCG is reflected in all aspects of the Company’s business.          governance,       and/or     standard     operating
The Company is also committed to continuing to realize              procedures (standard operating procedures)
long-term corporate governance transformation which is              according      sustainable     finance    principles
expected to produce sustainable value for shareholders              implementation.
and all stakeholders.                                        2. Manage and implement a sustainable financial
                                                                action plan in the Company to achieve sustainable
A complete description and disclosure of information            finance goals.
regarding Corporate Governance, the authority of the         3. Develop new, sustainable finance action plans, as
General Meeting of Shareholders (GMS), the duties and           well as the Company’s sustainability report.
responsibilities of the Board of Commissioners and Board     4. Project and adjust the budget for implementing
                                                                                                                                 GOVERNANCE
                                                                                                                                 CORPORATE




of Directors, the Audit Committee and the Nomination            sustainable finance.
and Remuneration Committee, including regarding the          5. Coordination with the Corporate Social Responsibility
remuneration policy for the Board of Commissioners              (CSR) Committee in the implementation of
and Directors, the process for determining remuneration         Environmental & Social Responsibility.
has been submitted in the Annual Report Corporate
Governance chapter.                                          The details of the duties and responsibilities of the
                                                             Sustainable Finance Taskforce based on their respective
                                                             work units are as follows:
                                                                                                                                 REPORT
                                                                                                                                 SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                 363
Page 364
  SUSTAINABILITY
  REPORT




                   Board of Director

                   Duties & Authorities
                   Responsible for the implementation of the Sustainable Finance Action Program
                   in the Company as a whole




                   Work unit in charge of finance and
                   corporate accounting

                   Duties & Authorities
                   1) Reporting related to realization of financing for Sustainable Category Business
                      Activities
                   2) Assessing the potential use and/or utilization of funding sources related to
                      sustainable finance




                   Work unit in charge of corporate planning and
                   corporate secretary

                   Duties & Authorities
                   1) Responsible to the Board of Directors for the overall management of the
                       Sustainable Finance Action Program in the Company
                   2) Manage the Sustainable Finance Action Program in the Company
                   3) Establishing a Sustainable Finance Action Unit
                   4) Prepare Corporate Guidelines for Sustainable Finance Actions for the Company
                   5) Supervise the implementation of the Company’s Sustainable Finance Actions
                   6) Prepare the Company’s Sustainable Finance Action Plan Report
                   7) Prepare the Company’s Sustainability Report
                   8) Support the preparation of the Company’s Sustainable Finance Action Plan
                   9) Projecting and adjusting the budget for Sustainable Finance Action
                   10) Monitoring the implementation of sustainable finance




                   Working unit in charge of legal, risk management and
                   compliance

                   Duties & Authorities
                   1) Together with related divisions, prepare the Corporate Guidelines for Corporate
                      Sustainable Finance Action
                   2) Review and provide recommendations related to risk and compliance aspects as
                      well as legal aspects of the Sustainable Finance Action Program
                   3) Monitoring risks related to the implementation of Sustainable Finance Action




364
Page 365
PT BUSSAN AUTO FINANCE




                                                                                                                         HIGHLIGHTS
                                                                                                                         PERFORMANCE
                             Work unit in charge of human resources and
                             training and development

                             Duties & Authorities
                             1) Conduct employee recruitment/assessment to fill the special unit/taskforce for
                                sustainable finance managers,




                                                                                                                         REPORT
                                                                                                                         MANAGEMENT
                             2) Conduct competency improvement training related to sustainable finance
                                programs




                             Work unit in charge of corporate and
                             brand communications

                             Duties & Authorities
                             1) Support the preparation of the Company’s Sustainable Finance Action Plan in
                                terms of communication & branding




                                                                                                                         PROFILE
                                                                                                                         CORPORATE
                             2) Implementing a Green Campaign
                             3) Implement social and environmental responsibility programs




                             Business unit

                             Duties & Authorities
                             1) Distributing financing to business activities in the sustainable category
                             2) Conducting assessments and issuance of sustainable financial products and or




                                                                                                                         DISCUSSION & ANALYSIS
                                                                                                                         MANAGEMENT
                                services




                             Work unit in charge of operations

                             Duties & Authorities
                             By coordinating with the CSR Committee:
                             1) Prepare plans and realization of CSR and environmental social responsibility
                                 programs for the next 1 (one) year in accordance with the Sustainable Finance
                                 Action Plan
                             2) Implement social and environmental responsibility programs
                             3) Ensure that the implementation of social and environmental responsibilities is
                                 oriented towards sustainable support
                                                                                                                         GOVERNANCE
                                                                                                                         CORPORATE




                                                          designated targets and timeline, with due observance
     Preparation of the Sustainable Finance               of the fulfillment of prudential regulations and
     Action Plan (RAKB)                                   implementation of risk management.

The Company is required to prepare a Sustainable          The RAKB report is prepared according to prevailing
Financial Action Plan (RAKB) report. The RAKB is a        regulations, especially POJK No. 51/POJK.03/2017
written document describing the business activity plan    concerning Implementation of Sustainable Finance
and work program in the short term 1 (one) year and       for Financial Service Institutions, Issuers and Public
long term 5 (five) years according to the Sustainable     Companies, and its Attachments (“POJK 51/2017”). In
                                                                                                                         REPORT
                                                                                                                         SUSTAINABILITY




Finance principles implementation, including strategies   addition, the Company also refers to:
to realize these work plans and programs based on




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                         365
Page 366
  SUSTAINABILITY
  REPORT




         1. Technical Instructions for Nonbank Financial Services    Divisions. The prepared plan is then submitted to the
            Institutions Regarding the Implementation of             Board of Commissioners together with the Business Plan
            Financial Services Authority Regulation Number           Report for approval at the Joint Meeting of the Board of
            51/OJK.03/2017 concerning the Implementation             Directors and the Board of Commissioners.
            of Sustainable Finance for Financial Services
            Institutions, Issuers and Public Companies               The RAKB report for the 2023 period has been submitted
         2. Sustainable Finance Roadmap in Indonesia 2015-           to the OJK simultaneously with 2023 Annual Business
            2019 published by OJK in 2014, and Sustainable           Plan Report, which is on November 30, 2023.
            Finance Roadmap Phase II (2021-2025);
         3. Technical Guidelines for Preparing Action Plans for
            Sustainable Development Goals (SDGs);                         Sustainable Finance Risk Management
         4. Metadata for Sustainable Development Goals (SDGs)             [GRI 2-26]
            indicators which consist of 4 pillars, such as Social
            Development Pillar, Economic Development Pillar,         The Company strives to apply risk management in
            Environmental Development Pillar and the Legal and       every business activity, including operational and
            Governance Development Pillar;                           nonoperational activities. The implementation of risk
         5. Global Reporting Initiatives Standards (GRI              management is also a concern of every level/level of
            Standards) 2021 update;                                  the organization in the Company. Therefore, since the
         6. As well as various other relevant references.            establishment of the risk management & Compliance
                                                                     Division, the Company has continued to improve the
                                                                     implementation of risk management, both from the
              RAKB Preparation Process                               procedures or policies as well as from the raising awareness
                                                                     aspect in the implementation of risk management at
         As stated in POJK 51/2017, companies that are in the        every activity. This is needed to always accommodate the
         category of finance companies as well as bond issuers       needs and expectations of stakeholders in line with the
         have an obligation to implement sustainable financial       strategy and business norms, the level of risk appetite and
         actions starting January 1, 2020. In this regard, as        risk tolerance that has been determined and compliance
         a manifestation of the Company’s commitment to              with the prevailing laws and regulations.
         implementing prevailing regulations and supporting
         financial implementation sustainable, the Company has       In accordance with POJK No. 44/POJK.05/2020
         done the RAKB preparation.                                  concerning the Application of Risk Management for
                                                                     Non-Bank Financial Services Institutions, the Company
         In the pre-preparation stage of the Company’s RAKB          has implemented risk management based on the Risk
         2022, the Company does not use the services of third        Management Implementation Guidelines which include
         parties or consultants. The preparation of the Company’s    4 (four) pillars of Risk Management implementation
         2022 Sustainable Finance Action Plan was prepared by        which of course also become part of managing Risk on
         the Corporate Secretary at the direction of the Board       the implementation of Finance Sustainable.
         of Directors as well as cooperation from various related



                                         FOUR PILLARS OF RISK MANAGEMENT




                    Active supervision       Adequacy of policies,             Adequacy of                 Internal control
                     of the Board of         procedures, and limit            the process of                   system
                   Directors, Board of             setting                    identification,
                   Commissioners and                                          measurement,
                   Sharia Supervisory                                      monitoring and risk
                          Board                                             control, as well as
                                                                          the risk management
                                                                           information system




366
Page 367
PT BUSSAN AUTO FINANCE




                                                                                                                                      HIGHLIGHTS
                                                                                                                                      PERFORMANCE
Further explanation regarding the implementation of risk management in the Company can be seen in the discussion
of Risk Management in the Governance Chapter in this report.




     Risk Mapping




                                                                                                                                      REPORT
                                                                                                                                      MANAGEMENT
In the event that the sustainable finance action plan cannot be implemented properly or does not achieve the desired
objectives, the Company, the potential risks that may arise include:



TYPE OF RISK                         DEFINITION                                         RISK POTENTIAL

 Compliance         The risk due to the Company not complying            Administrative sanctions in form of a warning
 Risk               with and/or not implementing the laws and            or written warning from the OJK if the
                    regulations that apply to the Company.               Company does not implement the Sustainable
                                                                         Finance Action.

 Strategy Risk      Risk due to inaccuracy in making and/or              The performance of the Sustainable Finance




                                                                                                                                      PROFILE
                                                                                                                                      CORPORATE
                    implementing a strategic decision as well as         Action Plan is not achieved.
                    failure to anticipate changes in the business
                    environment.

 Credit Risk        Risk due to failure of other parties to fulfill      This risk will arise when the Company disburses
                    obligations to the Company.                          financing that is oriented to the sustainability
                                                                         category, in the form of the debtor’s failure to
                                                                         fulfill its obligations.

 Reputational       The risk due to the declining level of stakeholder   This risk will arise related to the level of success
 Risk               trust stems from negative perceptions of the         of the Company in implementing sustainable
                    Company.                                             financial actions, both reputation in the eyes of




                                                                                                                                      DISCUSSION & ANALYSIS
                                                                                                                                      MANAGEMENT
                                                                         regulators and in the public presented through
                                                                         sustainability reports.

 Operational        The risk of inadequate and/or non-functioning        This risk will arise when the implementation
 Risk               internal processes, human error, system              of the sustainable financial strategy that
                    failure and/or external events that affect the       the company wants to carry out is not yet
                    Company’s operations.                                supported by the readiness and capability of
                                                                         human resources and adequate infrastructure
                                                                         to achieve the implementation of an effective
                                                                         sustainable finance strategy.




Based on compliance and reputation aspects, the                including prospective borrowers, are of course required
                                                                                                                                      GOVERNANCE
                                                                                                                                      CORPORATE



Company strives to ensure that the Company always              before disbursing financing in the sustainable finance
complies with the provisions related to sustainable            category. The Company also strives to ensure reputation
finance stipulated in POJK 51/2017 and ensures that            risk by presenting sustainability reports that are easily
reporting which includes the Sustainable Financial Action      understood by the public.
Plan Report, and the Sustainability Report is prepared
in accordance with the provisions and submitted in a           1. Active Supervision of the Board of Directors & Board
timely manner. The Company also ensures that internal             of Commissioners
policies are adjusted within the company as part of the           - In implementing sustainable finance initiatives
management’s commitment to applying the principles                    in the Company, the Company has formed a
of Sustainable Finance.                                               Sustainable Finance Taskforce in 2020 which is
                                                                      directly responsible to the Board of Directors. The
For the strategic risk aspect, the Company ensures that               Board of Directors places a Vice President Director
the implementation of the sustainable financial action                and a Director as advisors in the Sustainable
plan is well implemented by considering and concerning                Finance Taskforce. In 2023, Sustainable Finance
                                                                                                                                      REPORT
                                                                                                                                      SUSTAINABILITY




organizational capacity, internal and external conditions             Taskforce held 4 (four) meetings, namely on 31
of the Company. In terms of credit risk, in-depth                     March 2023, 08 June 2023, 01 November 2023,
studies, especially on financial products/innovations,                dan 14 December 2023.



2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                      367
Page 368
  SUSTAINABILITY
  REPORT




             -     In a joint meeting the Board of Directors and           processes. Apart from that, the Company is also
                   Board of Commissioners discussed various                developing infrastructure, including by increasing
                   initiatives that support implementation of              network capacity and quality, improving the
                   sustainable finance in the Company.                     performance of data storage and processing systems,
             -     In implementing social and environmental                and increasing the capacity and coverage of the
                   responsibility activities, the Company has a            disaster recovery system (DRC). In accordance with
                   CSR Committee under the Board of Directors.             the Company’s needs and objectives, the Company is
                   This committee periodically provides updates            committed to implementing an Information Security
                   to the Board of Directors regarding the plans,          Management System (SMKI) that refers to the ISO
                   realization, and costs of the Company’s CSR             27001 standard. This form of commitment is realized
                   activities. Changes in members of the CSR               by implementing a risk management process to
                   Committee are always communicated to the                provide confidence to stakeholders that risks related
                   Board of Commissioners. In 2023, the CSR                to information security are managed adequately and
                   Committee has organized various social activities       is proven by the Company’s success in obtaining ISO
                   that support aspects of sustainable development         27001 certification in mid-2023.
                   goals.
             -     In implementing risk management, the Risk            4. Comprehensive Internal Control System
                   Management Committee and Risk Monitoring                The internal control system implemented includes:
                   Committee have held 4 (four) meetings in 2023           - Implementation of the 3 (three) lines of defense
                   with the agenda of discussing the implementation           in the Company’s structure;
                   of risk management in the Company, such as the          - The existence of a Risk Management Work Unit
                   Company’s health level, risk profile, compliance           (SKMR) and a Compliance Work Unit (SKK) which
                   monitoring, and others.                                    the Company has established since the Third
                                                                              Quarter of 2019;
         2. Adequacy of Policies, Procedures, and Establishment            - Provide training related to sustainable finance
            of Risk Limits                                                    to improve understanding and capacity of
            - In 2023, the Company conducted a policy                         sustainable finance to the Company’s employees
                review, especially in the Risk Management Policy              at all levels of the organization;
                Guidelines with adjustments to the formulation             - Sustainable Finance Taskorce has participated in
                of a strategy for compliance risk referring to the            capacity building through seminars which were
                general scope of application including considering            attended 3 (three) times in 2023;
                and concerning the risks and possibilities of              - Publishing internal news on a regular basis which
                social, economic and environmental impacts                    is given to all employees regarding the social
                in making decisions as part of the Companies’                 responsibility activities carried out;
                compliance to implement Sustainable Finance                - Coordinating between related divisions to ensure
                Actions effectively.                                          compliance with the Company’s compliance
                                                                              with applicable laws and regulations, particularly
         3   Adequacy of the Identification, Measurement,                     related to sustainable finance.
             Monitoring and Risk Control Processes as well as the
             Risk Management Information System.                        Through active supervision by the Board of Directors
                                                                        and Board of Commissioners, adequacy of policies,
             The Company seeks to evaluate the implementation           procedures and determination of risk limits, adequacy of
             of sustainable finance by adjusting the RAKB targets       risk identification, measurement, monitoring and control
             with achievement indicators.                               processes, risk management information systems and a
                                                                        comprehensive internal control system, the Company will
             In general, the Company has several initiatives to         strive to ensure that these risks are monitored properly
             implement information technology systems in 2023           with good mitigation.
             which are in line with the spirit towards sustainable
             finance in the form of existing business support           From the aspect of compliance and reputation, the
             systems/applications to support digitalization and         Company always ensures that the Company complies
             digital business. The following are several information    with the provisions related to sustainable finance as
             technology platforms that are integrated with the          regulated in POJK 51/2017 and ensures that reporting
             Company’s core system, namely BAF Mobile, Credit           includes the Sustainable Finance Action Plan Report, and
             Center, E-Survey (Mobile Survey System), BAF Care,         the Sustainability Report is prepared in accordance with
             Robotic Process Automation (RPA), data analysis            the provisions and submitted in a timely manner. For the
             system and BAF Pro. On the cyber security and              strategic risk aspect, the Company will ensure that the
             information security side, the Company focuses             sustainable financial action plan is well implemented
             on securing employee laptops/PCs when the                  while taking into account the Company’s internal
             employees use the browsers that potentially have           and external conditions and carrying out additional
             vulnerabilities. If there is any vulnerability, the page   activities in the form of Risk Assessment & Analysis for
             will automatically not be able to open. Apart from         each sustainable finance initiative or program that
             that, the Company also focuses on increasing storage       will be carried out, especially those related to products
             capacity, memory, and CPU to support business              or services. . In terms of credit risk, an in-depth study,




368
Page 369
PT BUSSAN AUTO FINANCE




                                                                                                                                   HIGHLIGHTS
                                                                                                                                   PERFORMANCE
especially of financial products/innovations, including           Finance for Financial Services Institutions, Issuers
prospective debtors, is certainly needed before disbursing        and Public Companies at least 1 (one) time in 1 (one)
financing related to sustainable finance.                         year;
                                                               6. Monitoring the fulfillment of the Company’s
To mitigate compliance risks, the Company will continue           commitment       to  the     Sustainable     Finance
various initiatives including:                                    Implementation Program for any programs or
1. Regular review of internal policies, business processes        instructions from the Financial Services Authority




                                                                                                                                   REPORT
                                                                                                                                   MANAGEMENT
    and operations to support the implementation of               (OJK).
    Sustainable Finance and align with the Company’s
    Risk Management Strategy;
2. Organizing Compliance Awareness Program while                    Risks Related to Climate Change
    still including material related to POJK No. 51/                [GRI 201-2]
    POJK.03/2017 concerning the Implementation
    of Sustainable Finance for Financial Services              Climate change is a global challenge, including in
    Institutions, Issuers and Public Companies for both        Indonesia, which is a vast maritime country. Therefore, the
    head offices and network offices and including this        Government continues to increase the implementation of
    material in the testing material in the Compliance         sustainable finance in the financial services sector which
    APU PPT & PPPSPM Mandatory Program (CAMP                   has an important role in supporting efforts to mitigate
    Test);                                                     and adapt to climate change.




                                                                                                                                   PROFILE
                                                                                                                                   CORPORATE
3. Risk Management Webinar The webinar series and
    Mari Obedient Bulletin will include material related       The climate changes that occur can have an impact on
    to Sustainable Finance which has been aligned              all sectors, including the financing sector. One impact is
    with the Sustainable Finance strategy that will            the increased risk of debt repayment failure by debtors,
    be implemented by the Company. Implement a                 especially for companies that depend on sectors directly
    systematic assessment of the programs you wish to          affected by climate change, such as agriculture, forestry,
    carry out using the Risk Assessment mechanism and          tourism and other sectors.
    discussion in the 3 Lines of defense panel;
4. Continuously provide Compliance Analysis for                In addition, physical risk is one of the risks related to
    every new program or product aimed at supporting           climate change faced by the Company. Physical risk
    sustainable financial programs;                            is related to physical damage to assets due to natural




                                                                                                                                   DISCUSSION & ANALYSIS
                                                                                                                                   MANAGEMENT
5. Monitoring the level of compliance with the                 disasters. In 2023, there was 50 natural disasters recorded
    implementation of POJK No. 51/POJK.03/2017                 by the Company, consisting of earthquakes, floods and
    concerning the Implementation of Sustainable               the eruption of Mount Merapi.




   32                                        17                                        1
Earthquake                                  Flood                                    Volcanic
                                                                                     eruption


                                                                                                                                   GOVERNANCE
                                                                                                                                   CORPORATE




From the events mentioned above, there was no
significant impact or the risks were relatively low, except         Stakeholder Engagement
for the flooding which had an impact on two network                 [GRI 2-29]
offices in Semarang - Manado and resulted in operational
disruption for 2 days. Even though the Company did not         Stakeholders are parties who are related to business
experience significant financial losses as a result of this,   activities, either directly or indirectly, and have a
in the long term the influence of extreme climate could        sustainable influence on the Company. The Company
cause more losses, if not handled optimally. Therefore,        strives to maintain harmonious and professional
the Company continues to strive to improve mitigation          relationships with all stakeholders to obtain input and
measures for the risk of natural disasters.                    meet their needs through improving the Company’s
                                                                                                                                   REPORT
                                                                                                                                   SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                   369
Page 370
  SUSTAINABILITY
  REPORT




         services. We engage stakeholders in improving                out communication with stakeholders. In carrying out
         environmental, economic, social and governance               operational activities, for example, the Company involves
         performance. Stakeholders are identified through a           and pays attention to the interests of stakeholders
         proximity approach and the size of their interests (power)   who have different interests. In involving stakeholders,
         which can mutually influence and be influenced by the        the Company builds an approach using a number of
         Company.                                                     communication methods and media. Stakeholder groups
                                                                      are determined based on their proximity, influence and
         Efforts to foster harmonious relationships with              impact on the company. The interests of stakeholders
         stakeholders are carried out through various strategies.     towards the Company and the interests of the Company
         One of them, the Company seeks to build cooperation          towards stakeholders along with the communication
         and synergy with stakeholders. The Company also carries      methods or media used, are as follows:




                                                   Interest For the                       Communication Media
                                                   Stakeholders                           • Provide a channel to
                                                   • A conducive working                    accommodate employee
                                                      climate to support target             feedback
                                                      achievement                         • Ensure adequate work
                                                   • Opportunities to actualize             facilities
            Employee                                  skills, competencies, talents       • Ensuring the safety and
                                                      and interests, including              rights of employees in
                                                      training and competency               accordance with Company
            Interest For the Company                  development                           Regulations
            Employment partnership                 • Clear explanation and                • Conducting training &
            relationship for business                 opportunity to inspire                development, including
            sustainability and increased the          opinion                               corporate wellness programs
            Company’s performance                  • A clear and planned career           • Conduct job evaluations
                                                      direction and development             and promotions as well as
                                                   • Equal employment                       promotions and transfers
                                                      opportunities
                                                   • Performance appraisal
                                                      and career path as well as
                                                      remuneration and benefits




                                                   Interest For the                       Communication Media
                                                   Stakeholders                           • Conduct AGMS and EGMS
                                                   • The Company’s business               • Prepare Annual Report and
                                                      sustainability                        Sustainability Report
                                                   • Company performance
                                                      growth
                                                   • Implementation of corporate
            Shareholders                              governance
                                                   • Actual Company’s
            Interest For the Company                  information
            • Support for the sustainability
               of the Company’s business
            • Feedback for performance
               improvements




370
Page 371
PT BUSSAN AUTO FINANCE




                                                                                                                HIGHLIGHTS
                                                                                                                PERFORMANCE
                                       Interest For the                 Communication Media
                                       Stakeholders                     • Explore customer needs and
                                       • Sustainability of products       develop product and service
                                          and services                    innovations. There was no
                                       • Good customer protection         product developments in
                                          mechanisms, with a customer     2023.




                                                                                                                REPORT
                                                                                                                MANAGEMENT
                                          complaint system that         • Conduct customer
  Customers                               accommodates customer           satisfaction surveys
                                          interests                     • Maintain the privacy and
  Interest For the Company             • Product procedures and           security of customer data
  • Support for the sustainability        information                   • Implementation of meetings
     of the Company’s business         • Customer convenience and         with customer (if necessary)
  • Feedback for performance              satisfaction                  • Implementation of financial
     improvements                      • Security and privacy of          literacy and inclusion
                                          customer data                   activities every year
                                       • Financial literacy and
                                          inclusion




                                                                                                                PROFILE
                                                                                                                CORPORATE
                                       Interest For the                 Communication Media
                                       Stakeholders                     • Providing website, social
                                       • Need for employment              networking media and news
                                       • Provide a positive impact on     about the Company in mass
                                          economic growth and society     media, including information
                                          at large                        on job vacancies.
                                       • Provide society                • Carrying out CSR activities
                                          empowerment program           • Implementation of financial




                                                                                                                DISCUSSION & ANALYSIS
                                                                                                                MANAGEMENT
                                       • Understanding on financial       education and literacy
  Society                                 literacy                        seminars/training
                                                                        • Empowering the
  Interest For the Company                                                community’s economy
  • Support for the sustainability                                        through Xtra BAF agents
     of the Company’s business
  • Feedback for performance
     improvements




                                       Interest For the                 Communication Media
                                       Stakeholders                     • Implementation of
                                                                                                                GOVERNANCE
                                                                                                                CORPORATE



                                       • Compliance with legal and        compliance with prevailing
                                          regulatory aspects              laws and regulations,
                                       • Transparent and up-to-date       financing, capital market
                                          information in accordance       issuers, and other relevant
  Government/Regulator                    with regulations                regulations.
                                       • Good corporate governance      • Submit reports according to
                                       • Anti-Fraud and Anti-             regulations both periodically
  Interest For the Company                Corruption, Anti-Money          and incidentally, such
  • Partnership relationship for          Laundering and Counter          as annual reports and
     the implementation of good           Financing of Terrorism          sustainability reports
     corporate governance in the          Financing (AML-CFT)           • Implementation of GCG
     Company                           • Payment of taxes and other       principles
  • Feedback to improve the               obligations                   • Payment of Tax Obligation
     Company’s performance
                                                                                                                REPORT
                                                                                                                SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                371
Page 372
      SUSTAINABILITY
      REPORT




                                                   Interest For the                   Communication Media
                                                   Stakeholders                       • Provide information needed
                                                   • Mechanisms for procurement         to streamline procurement
                                                      of goods and services             and work processes
                                                      that apply good corporate       • Build business
                                                      governance                        communication
                Work Partners/Vendors              • Transparency in the
                                                      completion of the
                                                      procurement of goods and/or
                Interest For the Company              services
                • Excellent service quality from
                   third parties (suppliers)
                • Partnership relationship for
                   implementation of anti-
                   gratification commitment




                                                   Interest For the                   Communication Media
                                                   Stakeholders                       • Organizing press releases,
                                                   • Corporate information and          media publications and
                                                      data, including regarding         company reports, interviews,
                                                      company performance,              press conferences.
                                                      products and/ or services, as   • Update information in the
                                                      well as corporate actions         Company’s website
                Mass Media

                Interest For the Company
                • Check and balance
                   partnership relationship




                                                   Interest For the                   Communication Media
                                                   Stakeholders                       • Provide annual reports
                                                   • Financial performance              and/or financial reports
                                                      and achievement of the            periodically
                                                      company’s business strategy     • Deliver information
                                                   • Implementation of corporate        disclosure in accordance with
                                                      actions and corporate             the provisions
                Investor/Creditor                     strategies                      • Conduct meetings or updates
                                                   • Good corporate governance          on the Company’s condition
                                                      and compliance with related       and performance (by
                Interest For the Company              regulations                       request)
                • Support for the sustainability
                   of the Company’s business




372
Page 373
PT BUSSAN AUTO FINANCE




                                                                                                                                 HIGHLIGHTS
                                                                                                                                 PERFORMANCE
                                                             accompanied by technological crimes, so strengthening
     Challenges of Implementing                              data security systems needs to be a concern to avoid
     Sustainable Governance                                  cyber crime. Therefore, awareness of data security and
                                                             the use of technology is a challenge in itself. Therefore,
The Company closely follows the development and              the Company continues to strengthen its data security
implementation of sustainable finance. The Company           system, one of which in 2023 is that the Company has
continues to assess potential challenges, opportunities,     obtained ISO 27001 concerning Information Security




                                                                                                                                 REPORT
                                                                                                                                 MANAGEMENT
and prospects for sustainable finance, as well as their      Management Systems.
impact on stakeholders. Implementing sustainable
finance requires commitment to face challenges, both         The various challenges and problems that exist do not
internal and external.                                       dampen the Company’s commitment to implementing
                                                             sustainable finance considering that the potential for
From internal perspective, the Company realizes              implementing sustainable finance is very positive to
the need to increase awareness of all employees in           support the sustainability of the Company’s business
establishing a culture of sustainability. This culture is    in the future. Therefore, the Company is gradually
very important as a basis for understanding the need to      ensuring that it continues to implement and provide
implement sustainability in all business lines. Therefore,   support for sustainable finance. The Company believes
the Company continues to accelerate comprehensive            that with the increasing attention from the government,
understanding by employees at all levels of positions,       investors and regulators regarding the implementation




                                                                                                                                 PROFILE
                                                                                                                                 CORPORATE
including those responsible for sustainable finance in       of sustainable business, it is hoped that it will encourage
the Company through various certifications related to        the creation of various sustainable financial initiatives
sustainable finance.                                         and products, so that they can contribute to achieving
                                                             the SDGs.
In addition to the employees, implementing
sustainability requires joint efforts with consumers
and therefore, external parties have a significant                Building Sustainability a Culture and
role in transitioning business activities towards an              Capacity Building
environmentally friendly economy. Support and
collaboration from the government and regulators to          To realize sustainable growth, the Company continues
create an environmentally friendly business climate          to strive to build a strong foundation by improving the
also plays a significant role in the implementation of




                                                                                                                                 DISCUSSION & ANALYSIS
                                                                                                                                 MANAGEMENT
                                                             quality of human resources through training activities
sustainable finance. Implementation of environmentally       which are expected to produce human resources who are
friendly industries requires adequate infrastructure         professional and have high integrity and can support the
development. The government and regulators need              implementation of sustainable finance in the Company.
to ensure the readiness of green products and
infrastructure from upstream to downstream. The              1. Sustainability Month
Company sees that business actors still do not have             The Company strives to develop a culture
the same and adequate standards for implementing                of sustainability which starts by introducing
sustainable finance, especially in the financing industry.      sustainable finance to all employees. Sustainability
Therefore, cooperation between all parties is the main          Month is an annual program as an effort to increase
key in implementing sustainable finance and the                 awareness and increase knowledge for employees.
ability to adapt to rapid changes and demands from              Socialization is carried out to employees at the
stakeholders.                                                   head office and branch offices at every level/level
                                                                of the organization, so that employees have the
                                                                same understanding so that it becomes the initial
Another challenge is the massive digital transformation.        foundation in building a culture of sustainability in
Increased digital use has also increased the number             the Company in the coming future.
                                                                                                                                 GOVERNANCE
                                                                                                                                 CORPORATE




of cyber crimes. Basically, the development of
digitalization can impact all economic, social and              In 2023, the Company has organized Sustainability
environmental performance which has the potential               Month in August and September by presenting a
to affect sustainability. However, rapid changes are            green seminar series.
                                                                                                                                 REPORT
                                                                                                                                 SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                 373
Page 374
  SUSTAINABILITY
  REPORT




                                                                Social Education             Green Values for
                                                                Integration into             Better Environment
                                                                Business dan Green
                                                                Values for Better            Topic
                                                                Environment                  Environment problem,
                                                                                             food waste, climate
                                                                Topic                        change, sustainabkle
                                                                Sustainability               consmption, zero
                                                                framework, CSR,              waste, dan lainnya.
                                                                sustainbale
                                                                development, SDGs 4,         Participant
                                                                social education, dan
                                                                lainnya.

                                                                Participant
                                                                                             29
                                                                                             Employees,


                                                                34
                                                                                             Department Head
                                                                                             level at Head Office or
                                                                                             66% presence
                                                                Employees,
                                                                Department Head
                                                                level at Head Office or
                                                                77% presence




         2. E-learning Sustainable Finance                      employees better understand the SDGs and the
            In 2023, the Company requires leaders at the        role of employees and companies in supporting the
            Department Head and Division Head level of          achievement of SDGs.
            the Company to carry out e-learning regarding
            Sustainable Finance so that they can share the      As of the time this report was written, 188 employees
            knowledge they have gained with their team.         or 100% of the Company’s total employees were
                                                                required to have undertaken Sustainable Finance
            E-learning in 2023 focuses on refreshment related   e-learning and received an average score of 94. This
            to Sustainable Development Goals (SDGs) so that     score has increased from 85 in 2022.




           Participant                 Average score


            188                        94
            100% of the                increase
            Company’s total            10.7% (YoY)
            employees are required




374
Page 375
PT BUSSAN AUTO FINANCE




                                                                                                                                HIGHLIGHTS
                                                                                                                                PERFORMANCE
3. Senior Management – ESG Seminar [GRI 2-17]                    was attended by 47 Senior Management, 7 Directors
   In October 2023, the Company also held a seminar              and 3 Independent Commissioners of the Company.
   entitled Stepping-up on Sustainability: Creating Long-        This workshop reviews the latest information
   Term Values in Business Strategy which was attended           regarding global sustainability issues, Sustainable
   by Senior Management, including the Board of                  Development Goals (SDGs), and examples of real
   Directors and Board of Commissioners, represented             sustainability actions.
   by three Independent Commissioners. This workshop




                                                                                                                                REPORT
                                                                                                                                MANAGEMENT
     Stepping-up on Sustainability:
     Creating Long-Term Values in Business Strategy

     Topic
     Reviews the latest information regarding global
     sustainability issues, Sustainable Development
     Goals (SDGs), and examples of real sustainability
     actions.




                                                                                                                                PROFILE
                                                                                                                                CORPORATE
     Participant


     47                 7                   3
     Senior             Directors           Independent
     Management                             Commissioners




                                                                                                                                DISCUSSION & ANALYSIS
                                                                                                                                MANAGEMENT
Details of the competency development of the Board           finance carried out by Indonesia, including the Indonesia
of Commissioners and other Directors have also been          Stock Exchange (IDX), Global Reporting Initiative (GRI)
disclosed in the 2023 Annual Report in the Corporate         as well as webinars conducted internally in collaboration
Governance section which is part of this Report.             with Official institutions related to sustainable finance.
                                                             In 2023, one of the people responsible for sustainable
                                                             finance has obtained a Certified Sustainability Reporting
       Competency Development on                             Specialist (CSRS) in August 2023.
       Sustainable Finance by Taskforce
                                                             The activities that have been participated in by the
In addition, actively in the pre-drafting stage of the       Sustainable Finance Taskforce and/or representatives in
                                                                                                                                GOVERNANCE
                                                                                                                                CORPORATE




Company’s RAKB, the Company has participated in              2023 include the following:
various socialization activities related to sustainable



 NO                ACTIVITIES                  ORGANIZER                     DATE & PLACE              PARTICIPANT

 1         Seminar “Addressing           Indonesia Stock Exchange      Via Zoom, 08 June 2023         Corporate
           Gender-based Violence         (IDX) with International                                     Secretary
           and Harassment: The Role      Finance Corporation (IFC).                                   Representative
           of Corporate Boards”

 2         Seminar “Understanding        International Capital         Via Zoom, 25 May 2023          Corporate
           the Key Elements of           Market Association                                           Secretary
           Green, Social, and            (ICMA)                                                       Representative
                                                                                                                                REPORT
                                                                                                                                SUSTAINABILITY




           Sustainability Bond”




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                375
Page 376
  SUSTAINABILITY
  REPORT




          NO              ACTIVITIES                     ORGANIZER                   DATE & PLACE              PARTICIPANT

          3        Seminar “Understanding         Financial Service             Via Zoom, 24 May 2023         Corporate
                   the Landscape and              Authority and IDX                                           Secretary
                   Significance of Green,                                                                     Representative
                   Social, and Sustainability
                   Bond”

          4        Seminar “Sosialisasi IAI-      Ikatan Akuntan                Via Zoom, 30 August           Corporate
                   PPPK IFRS Sustainability       Indonesia (IAI)               2023                          Secretary
                   Disclosures Standards”                                                                     Representative

          5        Seminar “Save the Planet:      Financial Service             Pullman, 25 September         Corporate
                   The Role of Financial          Authority                     2023                          Secretary
                   Sector to Support Carbon                                                                   Representative
                   Reduction and Electric
                   Vehicle Development”

          6        Workshop Carbon Trading        Financial Service             Jakarta, 5-7 December         Corporate
                   for Financial Service          Authority                     2023                          Secretary
                   Industry                                                                                   Representative




                                                                      Procurement & Account Payables No. SP-ACP-011-003
               Supply Chain [GRI 2-6]                                 which regulates procurement procedures and other
                                                                      provisions related to procurement process rules in the
         The Company’s success and sustainability to date cannot      Company.
         be separated from the involvement and support of all
         stakeholders, one of which is resources from suppliers.      The Company continues to strive to ensure that
         The need for goods and services to support operational       employees and investors comply with the company’s
         activities is partly fulfilled through collaboration with    ethical standards properly. The Company seeks to
         suppliers/vendors. Suppliers involved in meeting the         encourage suppliers to support the implementation of
         Company’s daily operational needs include suppliers of       sustainable finance, including compliance with applicable
         general goods & services, office household & stamp duty,     laws and regulations regarding employment in relation
         professional services, information technology, and others.   to procurement.

         In ensuring the implementation of procurement well, the      Prior to collaborating with the Company, vendors will be
         Company has a Procurement & Accounts Payable Division        assessed through Supplier Due Diligence (SDD) using a
         which has a Standard Operational Procedure (SOP) which       form determined by the Company. At this stage, vendors
         functions as a reference for the procurement function in     will be evaluated regarding various legal and other
         dealing with external parties or suppliers. This policy is   aspects. Vendors are also required to sign an integrity
         stated in the procurement practices of Standard Policy       pact stating that the vendor:




         1. has run its business in a              2. will not carry out any form            3. will not give or lend
            clean, transparent and                    of communication and/or                   money, any form of gift,
            professional manner                       approach that leads to acts               assistance, for any reason
            in accordance with the                    of Corruption, Collusion,                 to the management and/or
            principles of Good Corporate              Nepotism (KKN) and the like.              employees of the Company
            Governance and is willing to                                                        at all levels, and
            uphold integrity, noble values
            and business ethics and
            comply with applicable laws
            and regulations.




376
Page 377
PT BUSSAN AUTO FINANCE




                                                                                                                                 HIGHLIGHTS
                                                                                                                                 PERFORMANCE
Vendors are asked to report to the Company’s                  In the future, the Company strives to continue to
Compliance Hotline if there are Company leaders and/          carry out gradual evaluations to ensure that the
or employees who request or give the impression of            company’s procedures process also pays attention
requesting something from the vendor.                         to aspects related to environmental management
                                                              performance, implementation of work safety, fulfillment
In addition to the integrity pact, the Company also           of responsibilities and Human Rights (HAM) which
requires vendors to maintain the confidentiality of the       are in line with the United Nations Guiding Principles




                                                                                                                                 REPORT
                                                                                                                                 MANAGEMENT
Company’s data by signing a non-disclosure agreement          (UNGP) in the employment aspect, as well as community
(NDA) during the supplier onboarding process.                 empowerment.

The Company ensures that there are no conflicts of            As of December 31, 2023, 99.7% of the Company’s
interest with suppliers who have collaborated or are still    vendors are local, both for services and goods. [GRI 2-6],
using potential suppliers. To prevent violations or fraud     with the following numbers:
in the procurement process, the Company providing a           • Local supplier: 698
Violation Reporting System to report suspected violations     • Overseas suppliers: 2
or fraud. [GRI 2-15].




                                                                                                                                 PROFILE
                                                                                                                                 CORPORATE
                               Local Supplier                                               Overseas Supplier


                               698
                               VE ND OR
                                                                                            2
                                                                                            V ENDOR




                                                              Company as well as employees or parties related to the
     Conflict of Interest [GRI 2-15]                          company must avoid making decisions in conditions




                                                                                                                                 DISCUSSION & ANALYSIS
                                                                                                                                 MANAGEMENT
                                                              where there is a conflict of interest.
The Company’s business activities cannot be separated
from relationships and interactions between individuals
within the Company and with other parties. The                     Whistleblowing System [GRI 2-16] [2-26]
Company is aware that there is a potential conflict of
interest that may be unavoidable between one party            The Company has a violation reporting system policy
and another, which could influence the decision-              or Whistleblowing System. A complete description and
making process and the performance of the results of          disclosure of information regarding the Whistleblowing
the decision which could then be detrimental to the           System is presented in the 2023 Annual Report in the
Company.                                                      Corporate Governance section which is part of this
                                                              Report.
Conflicts of interest are regulated in the Company’s
policy, namely Compliance Standard Policy No. SP-
RMC-010-004. In the event of a conflict of interest                Compliance with Laws and Regulations
between the Company and its Shareholders, Directors,               [GRI 2-27]
Board of Commissioners, Sharia Supervisory Board,
                                                                                                                                 GOVERNANCE
                                                                                                                                 CORPORATE




executive officers, employees and/or parties related to       The Company’s consistency in always complying with
the Company are prohibited from taking actions that           various related regulations is the main thing. This
reduce the Company’s profits/causing losses, must             is proven by the absence of violations of laws and
disclose the conflict of interest referred to in every        regulations regarding the environment, social and other
decision. as stated in the minutes of the meeting which       aspects which resulted in fines or sanctions during 2023.
at least includes the name of the party and position/         A complete description and disclosure of information
position that has a conflict of interest, the main issue of   regarding compliance is presented in the 2023 Annual
the conflict of interest, and the basis for consideration     Report in the Corporate Governance section which is
for decision making.                                          part of this Report.

The Board of Directors, Board of Commissioners,
Sharia Supervisory Board and Executive Officers of the
                                                                                                                                 REPORT
                                                                                                                                 SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                 377
Page 378
  SUSTAINABILITY
  REPORT




                   ECONOMIC PERFORMANCE




                                             Economic Performance
         THE COMPANY BELIEVES THAT A
                                        Economic performance achievement is a measure of
         SUSTAINABLE BUSINESS IS THE    stakeholders’ trust and the basis for evaluating business
         KEY TO DRIVING THE COMPANY’S   continuity. Therefore, the Company makes this as one
                                        of the important aspect. The Company believes that a
         OVERALL PERFORMANCE.           sustainable business is the key to driving the company’s
                                        overall performance. In measuring the achievements of
                                        the implementation of sustainable finance, the Company
                                        manages credit and portfolio. The description of the
                                        performance of the economic aspect which contains
                                        a comparison of targets and financing performance,
                                        revenue and profit and loss has been discussed in detail
                                        in the Management Analysis and Discussion Chapter.




378
Page 379
PT BUSSAN AUTO FINANCE




                                                                                                                                     HIGHLIGHTS
                                                                                                                                     PERFORMANCE
      New Financing Disbursement
As of December 31, 2023, the Company has various business lines to meet the various needs of consumers. The
following is the composition of the Company’s new financing distribution for the last 3 (three) years.




                                                                                                                                     REPORT
                                                                                                                                     MANAGEMENT
NEW FINANCING DISBURSEMENT BASED ON FINANCING PRODUCTS

I N BI L L I O N RUPIAH

                                              2023                        2022                                2021
      DESCRIPTION
                                   Rp                %          Rp               %                  Rp               %

 Yamaha’s new                      5,890              53.6      6,225             56.6              5,942             62.1
 motorcycle financing

 Used motorcycle                        415              3.7     400                 3.6             286                 3.0
 financing




                                                                                                                                     PROFILE
                                                                                                                                     CORPORATE
 BAF Dana Syariah                  3,078              28.0      2,215             20.2              1,581             16.5

 Gadget, Electronics &                  268              2.4     454                 4.1             367                 3.8
 Furniture Financing

 Agricultural Machinery                  25              0.2         27              0.2                 23              0.2
 Financing

 Car Financing                     1,294              11.8      1,617             14.7              1,367             14.4

 Other Financing                         29              0.3         51              0.5              0.7             0.01




                                                                                                                                     DISCUSSION & ANALYSIS
                                                                                                                                     MANAGEMENT
 Total                            10,994             100.0     10,989            100.0              9,567            100.0




NEW FINANCING DISBURSEMENT BASED ON FINANCING SCHEME

                          DESCRIPTION                            2023                      2022                  2021

 Conventional financing scheme                                   71.5%                     79.1%                 83.0%

 Sharia financing scheme                                         28.5%                     20.9%                 17.0%

 Total                                                           100.0%                    100.0%                100.0%
                                                                                                                                     GOVERNANCE
                                                                                                                                     CORPORATE
                                                                                                                                     REPORT
                                                                                                                                     SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                     379
Page 380
  SUSTAINABILITY
  REPORT




         Based on the Company’s monthly report data submitted          amounted to Rp3.4 trillion or 24% of total financing
         to Financial Services Authority (OJK) as end of 2023,         receivables (gross). In addition, the Agriculture, Forestry
         the Company possess portfolio in processing industry          and Fisheries Sectors amounted to Rp1.3 trillion
         amounted to Rp4.3 trillion or 30% of total financing          consisting of agriculture and agribusiness such as fruit,
         receivables (gross) which includes, among others, the         oil palm, plantation, rubber and other, as well as the
         food and beverage industry, textiles, trade, and industries   livestock sector, while the rest is spread across various
         such as handicrafts. The wholesale and Retail Trade,          economic sectors, both business and non-business
         Repair and Maintenance of Cars and Motorcycles Sector         sectors.


         FINANCING RECEIVABLES (GROSS) BY ECONOMIC SECTOR

         I N B I L L I O N R U PIAH

                                                    2023                           2022                           2021
                     SECTOR
                                            Rp               %             Rp              %               Rp               %

           Manufacturing Industry           4,291            30.4          4,324            31.0          3,591              30.0

           Wholesale and Retail
           Trade, Repair and
                                            3,376            24.0          2,986            22.0          2,222              18.0
           Maintenance of Cars
           and Motorcycle

           Agriculture, Forestry and        1,273                9.0       1,356            10.0          1,324              11.0
           Fishery

           Others                           5,154            36.6          5,185            37.0          4,933              41.0

           Total                           14,094           100.0        13,851           100.0          12,070             100.0




                                        Manufacturing                                                 Agriculture, Forestry
                                        Industry                                                      and Fishery


                                        4,291
                                        BIL LION R U PIAH
                                                                                                      1,273
                                                                                                      BI LLI ON RUP I A H




                                        Wholesale and Retail                                          Others
                                        Trade, Repair and
                                        Maintenance of Cars
                                        and Motorcycle                                                5,154
                                        3,376
                                                                                                      BI LLI ON RUP I A H



                                        BIL LION R U PIAH




380
Page 381
PT BUSSAN AUTO FINANCE




                                                                                                                                     HIGHLIGHTS
                                                                                                                                     PERFORMANCE
                                                                    The Company is committed to implement fair business
       Economic Value Generated and                                 practices and comply with prevailing regulations.
       Distributed                                                  One of the ways in which fair business practices
                                                                    are implemented is by fulfilling the responsibility
In the reporting period, the Company’s operations ran               to contribute to national economic development,
smoothly so that it succeeded in obtaining economic                 including through paying taxes. The tax paid by the
value and had a positive impact on stakeholders and                 Company in 2023 is recorded at Rp108.0 billion in




                                                                                                                                     REPORT
                                                                                                                                     MANAGEMENT
economic growth in Indonesia. The direct economic                   the form of Income Tax (Corporate Income Tax). Other
value generated is the amount of income obtained from               taxes paid include Individual PPh 21, Value Added Tax
the results of the Company’s business activities. Total             (VAT), Land and Building Tax. [GRI 207-1]
revenue was booked at Rp4.6 trillion, increased by 5.4%
(YoY) compared to last year’s Rp4.3 trillion. The Company           Throughout 2023, the Company manages its
then distributes economic value through remuneration                finances independently and does not receive financial
and allowances to employees, tax payments to the                    assistance from the government. In addition, none of
government, and to the community through various                    the Company’s revenues are derived from opportunities
activities as an embodiment of Environmental Social                 and/or financial implications due to climate change. The
Responsibility (CSR).                                               Company displays the direct economic value generated
                                                                    and distributed as shown in the table above. [GRI 201-1,
                                                                    201-2, 201-4]




                                                                                                                                     PROFILE
                                                                                                                                     CORPORATE
ECONOMIC VALUE GENERATED AND DISTRIBUTED

I N BI L L I O N RUPIAH

                          DESCRIPTION                                     2023               2022                2021

 A. Generated Economic Value

 Financing Income                                                              4,477            4,249               3,834




                                                                                                                                     DISCUSSION & ANALYSIS
                                                                                                                                     MANAGEMENT
 Interest Income                                                                      3               2                   8

 Other Income                                                                       89               86                  58

 Total Income                                                                  4,569            4,337               3,900

 B. Distributed Economic Value

 Operational costs (excluding employee salaries)*                                   434             376                 311

 Salaries expences and employee benefits                                            559             561                 541

 Dividend                                                                           239             142                   -

 Tax                                                                                108             294                 141

 Expenditures for community activities                                                2               2                   2
                                                                                                                                     GOVERNANCE
                                                                                                                                     CORPORATE




 Total of Economic Value Distributed                                           1,343            1,376                   995

 Retained economic value (A-B)                                                 3,226            2,961               2,904

*) There is a changes to the calculation method for 2022 and 2021




       Portfolio of Criteria for Sustainable Business Activities
There are 12 Categories of Sustainable Business Activities (KKUB). As for 2023, the Company has identified 2 KKUB,
which is environmentally friendly transportation and MSMEs.
                                                                                                                                     REPORT
                                                                                                                                     SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                     381
Page 382
  SUSTAINABILITY
  REPORT




                        12 CATEGORIES OF SUSTAINABLE BUSINESS ACTIVITIES (KKUB)


             Renewable Energy             Energy Efficiency           MSMEs Activities               Climate Change
                                                                                                        Adaptation




               Environmentally           Pollution Prevention          Conservation of                Sustainable
           Friendly Transportation           and Control           Terrestrial and Aquatic        Management of Water
                                                                         Biodiversity               and Wastewater




           Business Activities and/       Management of              Products that Can              Environmentally
           or other Activities with      Biological Natural        Reduce Resource Usage           Friendly Buildings
           Environmental Insight        Resources (SDA) and           and Produce Less           that Meet Standards/
                                        Sustainable Land Use              Pollution             Certifications recognized
                                                                                                Nationally, Regionally, or
                                                                                                     Internationally




                                                                   041/HQ/MKCPRODUCT/XII/2021 dated December 30,
              Environmentally Friendly Transportation              2021, with the latest extension through Approval Special
                                                                   Credit Condition No. 003/HQ/MKC-PRODUCT/I/2023
         Since 2021, the Company’s car financing business line     dated January 02, 2023.
         has started offering Special Electric Vehicles (EV) and
         semi-EV/Hybrid to consumers. This is stated in Approval   This offer is valid to all dealers and applies nationwide.
         Special Credit Condition No. 006/HQ/MKC-PRODUCT/          This Special Electric Vehicle (EV) and semi-EV/Hybrid
         III/2021 dated March 3, 2021 which was then extended      financing is one of the Company’s first steps in initiating
         again through Approval Special Credit Condition No.       sustainable products as well as a form of government




382
Page 383
PT BUSSAN AUTO FINANCE




                                                                                                                                HIGHLIGHTS
                                                                                                                                PERFORMANCE
program support that continue to accelerate the              On the motorcycle side, the Company’s new financing
establishment of an electric vehicle ecosystem in            will depend on Yamaha products. In 2023, Yamaha has
Indonesia.                                                   not yet market EV products. Therefore, the financing
                                                             carried out in 2023 was financing for a hybrid Yamaha
                                                             motorcycle, which is Yamaha Fazzio.




                                                                                                                                REPORT
                                                                                                                                MANAGEMENT
I N BI L L I O N RUP IAH

                                                         2023                                       2022
             DESCRIPTION
                                                 UNIT              Rp                  UNIT                  Rp

  Motorcycle - Hybrid                              41,698          953.6              21,193                 408.7

  Car - EV                                              67          16.0                   95                 23.4

  Car - Hybrid                                          2               0.7                   -                   -

  Total Disbursement of




                                                                                                                                PROFILE
                                                                                                                                CORPORATE
  Environmentally Friendly
                                                                   970.2                                     432.0
  Transportation Financing (in
  billions)

  Total Outstanding for
  Environmentally Friendly                                         975.9                                     353.0
  Transportation (in billions)

  Contribution to Total Portfolio                                   7.1%                                     2.6%




                                                                                                                                DISCUSSION & ANALYSIS
                                                                                                                                MANAGEMENT
   Green
   Transportation

    Contribution to Total           Motorcycle                  Car                               Car
    Portfolio                       – Hybrid                    – EV                              – Hybrid


    7.1%                            41,698 67
                                    U NIT                       UNI T
                                                                                                  2
                                                                                                  UNI T

                                                                                                                                GOVERNANCE
                                                                                                                                CORPORATE




                                                             community in Indonesia during the COVID-19 pandemic,
      Micro, Small and Medium Enterprises                    as well as a form of support for MSMEs in increasing their
      (MSMEs) Activities                                     contribution to the economy. This is in line with the
                                                             target of the Sustainable Development Goals (SDGs),
Since 2022, the Company has marketed two products            where MSMEs have become the front guard in achieving
aimed at Micro, Small and Medium Enterprises (MSMEs),        the economic pillars of the world development agenda
namely BAF PraDana and BAF AdiDana. It is expected           by 2030.
that these two products can contribute to productive
financing for MSMEs and micro-productivity. The two          In addition to BAF PraDana and BAF AdiDana products,
new products mentioned above are a manifestation of          the Company also has other financing products which
the Company’s commitment to expanding the variety            are intended for productive needs such as the BAF Dana
of products that consumers can choose from, as well          Syariah product line, new Yamaha motorcycle financing
as reinforcing the Company’s commitment to helping           and other financing.
accelerate the economic recovery of the entrepreneurial
                                                                                                                                REPORT
                                                                                                                                SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                383
Page 384
  SUSTAINABILITY
  REPORT




         The Company has classified the Company’s consumers into the category of micro, small and medium enterprises
         (MSMEs) with certain criteria, so that the Company can identify the number of new financing disbursement to MSMEs,
         namely 212,542 units or Rp4.0 trillion in 2023. Financing distributions to MSMEs decreased 4.9% (YoY) in 2023.


              BAF PraDana              BAF AdiDana

                                    DESCRIPTION                                                   2023                                 2022

          MSMEs (in unit)                                                                        212,542                              234,060

          Total MSMEs Financing Disbursement (in Rp trillion)                                           4.0                                4.22

          Total Outstanding of MSMEs (in Rp trillion)                                                   5.1                                4.99

          Contribution to Total Portfolio                                                          36.9%                               37.07%




         TOTAL PORTFOLIO CONTRIBUTION IN SUSTAINABLE BUSINESS ACTIVITY CATEGORY

                                    DESCRIPTION                                                    2023                                2022*

              Total Outstanding for Environmentally Friendly                                            1.0                                  0.4
              Transportation (in trillion)

              Total Outstanding of MSMEs (in Rp trillion)                                               5.1                                  5.0

              Contribution to Total Portfolio                                                      44.1%                                 39.7%


         *)     There were adjustments to the KKUB portfolio category in 2023 by designating hybrid type new Yamaha motorcycle financing as a sustainability
                portfolio, so that the figures presented in 2022 are slightly higher than those stated in the 2023 Sustainability Report.




384
Page 385
PT BUSSAN AUTO FINANCE




                                                                                                                                      HIGHLIGHTS
                                                                                                                                      PERFORMANCE
     Digitalization
One of the Company’s digital services that consumers can             Digitalization (DASYAT), and other feature developments
utilize is BAF Mobile. During 2023, one of the initiatives           aimed at making consumers comfortable in using BAF
carried out is adding features to BAF Mobile. In 2023,               Mobile thereof can optimize their access to BAF Services
consumers were be able to exchange vouchers on BAF                   digitally.




                                                                                                                                      REPORT
                                                                                                                                      MANAGEMENT
mobile using BAF points. The Company also periodically
rejuvenates the user interface, including refreshing                 Information regarding other initiatives related to
the appearance of the BAF Mobile application and re-                 digitalization can be seen in the environmental
grouping menus and features in BAF Mobile. Apart from                performance and information technology chapters in the
that, several additional features have been implemented,             Management discussion analysis chapter.
such as Live Chat, Help Center menu, Dana Syariah



   Total Digital Leads


   1,561,238




                                                                                                                                      PROFILE
                                                                                                                                      CORPORATE
   L E A DS (W E BSIT E AND BAF M OBIL E )



                                                    BAF Mobile Features




                                                                                                                                      DISCUSSION & ANALYSIS
                                                                                                                                      MANAGEMENT
                                                                                         DIGITAL
     MARKETING                TRANSACTION                    PRODUCT                    SERVICES                 PLATFORM

       Promotion                 BAF Points               Financing Docs                   BPKB             Fingerprint Login
                                                          & Information                Reservation &
      Personalized               Referral ID                                             Delivery            Email validation
          Push                    & Form                     Promotion
      Notification                                            & News                      Credit             Phone Number
                             Digital Insurance                                         Simulation &           Verification
                                                             Partners                   Application              (OTP)
                                 Installment                 Location
                                  Payment                                              Online Leads
                                 (on progress)                Yamaha                       Form
                                                             Catalogue
                                Open Saving                  (on progress)             24 H Customer
                                 Account                                                  Services
                                 (on progress)             Application
                                                            Tracking                     Reminder
                                                                                                                                      GOVERNANCE
                                                                                                                                      CORPORATE




                                                             (on progress)               Payment
                                                                                         (on progress)




                       Total BAF Mobile                                                      Digital Leads via
                       downloaders                                                           BAF Mobile


                     3,671,307
                     D OWNLOAD
                                                                                             136,288
                                                                                             LEA DS



     2023                   2022                   2021                       2023                  2022             2021
                                                                                                                                      REPORT
                                                                                                                                      SUSTAINABILITY




   3,671,307             2,336,326               1,082,090                   136,288              203,094           62,843




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                      385
Page 386
  SUSTAINABILITY
  REPORT




                                                                      To provide better service and convenience for Xtra BAF
              Financial Inclusion                                     Agents, the Company has launched the second phase
                                                                      of the Agency Management System (AMS), which not
         The Company continues to improve infrastructure and          only ease the Xtra BAF Agents to register independently,
         service quality in the form of products and services,        through this system, the Xtra BAF Agents can easily
         network offices and payment channels. This information       carry out activities agency, as well as easier access to
         can be seen in the Management Discussion Analysis            various important information and their performance
         chapter, while initiatives to increase access to financial   every month. The Company also attempts to increase
         services (financial literacy & inclusion) can be seen in     the productivity of Xtra BAF agents, namely by reviewing
         social performance.                                          and adjusting the regular benefit scheme. Also attempts,
                                                                      the Company has also simplified the Xtra BAF agents
                                                                      recruitment requirements and procedures to make it
              Xtra BAF Agent                                          more effective and efficient. Availability of the AMS
                                                                      system and adjustment of benefits is expected to
         As a form of empowerment in improving community              provide added value to Xtra BAF Agents, so that they
         welfare as an indirect economic impact, the Company          can continue to remain productive, and increase public
         involves the society through Xtra BAF agents. Xtra           interest in becoming part of Xtra BAF Agents.
         BAF Agent is an external agent consisting ofl public
         generally with the role to help sell the Company’s Dana      In 2023, the Company inaugurated the Xtra BAF
         Syariah products. As end of 2023, the Xtra BAF agent         Academy Agent.
         profile includes housewives, employees and freelancers,
         as well as students. To make registration easier, people
         can become Xtra BAF agents independently with a                    Xtra BAF Agent
         faster process and can be done online via https://xtra.
         baf.id/register.                                             Increasing community welfare through Xtra BAF Agent.




                                                                      Total Xtra BAF
                                                                      Agent                    20.9% (YoY)


                                                                      53,189
                                                                      A GENTS



                                                                            2023               2022                2021

                                                                           53,189             44,004              32,660




                                                                      BAF Xtra Agent
                                                                      Incentive Amount         58.3% (YoY)


                                                                      76.6
                                                                      BI LLI ON RUP I A H



                                                                            2023               2022                2021

                                                                             76.6              48.4                28.1




386
Page 387
PT BUSSAN AUTO FINANCE




                                                                                                                       HIGHLIGHTS
                                                                                                                       PERFORMANCE
COMPOSITION OF XTRA BAF               COMPOSITION OF XTRA BAF
AGENT IN 2023 BY GENDER               AGENT IN 2023 BY OCCUPATION

               Male                                  Housewives                         Employees


               67%                                   45.3%                              5.9%




                                                                                                                       REPORT
                                                                                                                       MANAGEMENT
               Female                                College & Students                 Public Figures


               33%                                   25.1%                              1.3%
                                                     Freelancers                        Others


                                                     21.0%                              1.4%




                                                                                                                       PROFILE
                                                                                                                       CORPORATE
COMPOSITION OF XTRA BAF AGENTS IN 2023 BY REGION



                                   Kalimantan
             Sumatera                 11.1%
              4.2%                                           Sulawesi
                                                               3.4%                 Papua & Maluku
                                                                                          23.0%




                                                                                                                       DISCUSSION & ANALYSIS
                                                                                                                       MANAGEMENT
                                   Java
                                   48.8%
                                                Bali. NTT & NTB
                                                     9.5%




    Customer
The process of acquiring new consumers and increasing the contribution of repeat orders are continuously
                                                                                                                       GOVERNANCE
                                                                                                                       CORPORATE



improved and become part of the Company’s medium-term strategy. Therefore, various initiatives are carried out
regarding process simplification and efficiency as well as various interesting programs.




                   Number of consumers
                   by contract                                             Repeat Order


                   860,153                                                 41.1%
     2023                 2022                2021             2023             2022                2021
                                                                                                                       REPORT
                                                                                                                       SUSTAINABILITY




   860,153               876,454           819,680             41.1%            35.5%              31.0%




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                       387
Page 388
  SUSTAINABILITY
  REPORT




                   OCCUPATIONAL HEALTH AND
                   SAFETY PRACTICES




                                        As a Company engaged in the financial services sector, in
                                        carrying out its business activities, the Company places
                                        the Employment and Occupational Health and Safety
         THE COMPANY STRIVES TO PAY     (K3) aspect as an important element in supporting its
         ATTENTION TO THE FULFILLMENT   operational activities that can encourage productivity,
                                        as well as improve the quality of life for both the
         OF EMPLOYEE RIGHTS TO ENSURE   Company’s employees and stakeholders. Therefore,
         THE OCCUPATIONAL HEALTH AND    the Company strives to concern the fulfillment of
                                        employee rights to ensure the Occupational Health and
         SAFETY ASPECTS                 Safety aspects of all employees based on the following
                                        applicable legal provisions: [GRI-403-1]
                                        1. Law No. 13 of 2003 concerning Manpower;
                                        2. Law No. 1 of 1970 concerning Occupational Safety;
                                        3. Law No. 40 of 2004 concerning National Social
                                            Security;
                                        4. Government Regulation of the Republic of Indonesia
                                            No. 50 of 2012 concerning the Implementation of
                                            the Occupational Health and Safety Management
                                            System; as well as
                                        5. Various other related regulations.




388
Page 389
PT BUSSAN AUTO FINANCE




                                                                                                                               HIGHLIGHTS
                                                                                                                               PERFORMANCE
        EMPLOYMENT

The Company realizes that employees are an essential        examines the diversity of the composition of its




                                                                                                                               REPORT
                                                                                                                               MANAGEMENT
asset in learning the business strategy that has been       members by considering the experience, educational
set together. Therefore, the Company has a Human            background, age and independence of each
Resource Management Division, which plays a vital           individual based on the shareholders’ aspiration. This
role in management related to employment within the         becomes the considerations for the Nomination and
Company. The Human Resource Management Division             Remuneration Committee in evaluating the annual
has departments such as Organizational Development,         composition of the Board of Directors and Board of
Payroll, Compensation and Benefits, Industrial Relations,   Commissioners.
Services, and Talent Acquisition.
                                                            One of the anti-discrimination forms carried out by the
The Company continues focusing on improving                 Company is the guarantee of wages for workers that
welfare, improving skills, and presenting healthy work      are not based on gender differences. The Company’s
competition by prioritizing equality and fairness.          compensation and remuneration policy fully consider




                                                                                                                               PROFILE
                                                                                                                               CORPORATE
                                                            the classification of positions, years of service and
                                                            experience, and work performance. This can be a
     Gender Equality            and     Employment          motivation for all employees, including women, to be
     Opportunities                                          able to excel without worrying about the potential
                                                            for gender discrimination. In 2023, no discrimination
The Company realizes that each employee has diversity       considers within the Company. [GRI 406-1]
and different background. Therefore, the Company
provides employment opportunities to all employees,
regardless of ethnic background, religion, gender,               Equality for People with Disabilities
race and class, or other discriminatory matters that
may potentially violate Human Rights. The Company           In addition to its commitment to gender equality, the




                                                                                                                               DISCUSSION & ANALYSIS
                                                                                                                               MANAGEMENT
is also committed to provide fair treatment for all its     Company also committed to provide opportunities and
employees. The Company prioritizes a transparent            support in empowering people with disabilities to work
recruitment process and free from corruption, collusion     at the Company. In 2023, the Company had 1 (one)
and nepotism practices.                                     employee with a physical disability at the head office in
                                                            the HR Services Department.
The provision of job opportunities is surely adjusted
to the qualifications in the position (position             Employees with disabilities also entitled to the same
requirements) by only requiring specific education and      employee rights (compensation, benefits, career and
competencies (soft-skills and hard-skills). Employee        competency development opportunities, working time,
rights (compensation, benefits, career and competency       and work facilities) as other employees.
development opportunities, working time and work
facilities) and obligations applicable to the Company
are are ensured to apply to all employees regardless             Employee Composition
ethnic background, religion, gender, race, class or other        GRI [2-7] [2-8] [401-1] [405-1]
irrelevant matters to the employee’s professionalism.
The Company also prioritizes a recruitment process that     As of December 31, 2023, the number of employees
                                                                                                                               GOVERNANCE
                                                                                                                               CORPORATE



is transparent and free from corruption, collusion and      achieved 3,774 (permanent and contract). In addition,
nepotism practices.                                         to support the Company’s smooth operations, several
                                                            functions are supported by outsourcing cooperation with
The above is reflected in human resource management         service provider companies. The Company also provides
(HR) practices starting from recruitment, competency        a workplace that is full of mutual respect and upholds the
development, performance evaluation, to employee            human rights. Implementation of cooperation with third
career development. Gender equality applied by the          parties is carried out by complying with prevailing law
Company can be seen from the diversity of leadership        and regulations. As of December 31, 2023, the number
at every position level.                                    of outsourced employees was 5,383 employees.

At the Management level, in appointing the Board of         The details of permanent and contract employees are as
Commissioners and Board of Directors, the Company           follows:
                                                                                                                               REPORT
                                                                                                                               SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                               389
Page 390
  SUSTAINABILITY
  REPORT




                             Male Employee                Female Employees


                             2,925                        849
         EMPLOYEE COMPOSITION BY GENDER

                             DESCRIPTION              2023             2022      2021

          Male employees                              2,925            3,138     3,454

          Female employees                             849              883       896

          Total                                       3,774           4,021      4,350




                             Permanent Employee           Contract Employees


                             3,501                        273
         EMPLOYEE COMPOSITION BY STATUS

                             DESCRIPTION              2023             2022      2021

          Permanent employees                         3,501            3,675     4,040

          Contract employees                           273              346       310

          Total                                       3,774           4,021      4,350




         EMPLOYEE COMPOSITION BY POSITION

                             DESCRIPTION              2023             2022      2021

          Board of Directors and Executive Officers     11               10        10

          Division Head dan Deputy Division Head        46               40        40

          Department Head                              144              144       127

          Expert                                         3                   2       -

          Deputy Department Head                       354              339       236

          Supervisor                                   769              756       803

          Staff                                       2,447            2,730     3,134

          Total                                       3,774           4,021      4,350




390
Page 391
PT BUSSAN AUTO FINANCE




                                                                           HIGHLIGHTS
                                                                           PERFORMANCE
EMPLOYEE COMPOSITION BY EDUCATION LEVEL

                    DESCRIPTION              2023    2022    2021

 <D3                                          451     523     632

 D3                                           677     737     833




                                                                           REPORT
                                                                           MANAGEMENT
 S1 or equal (D4)                            2,599   2,724   2,856

 S2                                            47      37      29

 Total                                       3,774   4,021   4,350




EMPLOYEE COMPOSITION BY AGE GROUP




                                                                           PROFILE
                                                                           CORPORATE
                    DESCRIPTION              2023    2022    2021

 <25 years                                    110     142     153

 26 - 35 years                               1,192   1,440   1,710

 36 - 45 years                               2,085   2,120   2,224

 46 - 55 years                                388     319     263




                                                                           DISCUSSION & ANALYSIS
                                                                           MANAGEMENT
 Total                                       3,774   4,021   4,350




EMPLOYEE COMPOSITION BY FUNCTION

                    DESCRIPTION              2023    2022    2021

 Board of Directors and Executive Officers     12      10      10

 Marketing                                   1,248   1,375   1,442

 Operation                                    661     696     384

 Collection                                  1,324   1,419   1,577
                                                                           GOVERNANCE
                                                                           CORPORATE




 Human Resources Management and Public         85      90      85
 Administration

 Finance and Accounting                        58      61     445

 Risk Management & Compliance                  23      18      11

 Internal Audit                                25      28      22

 Legal                                          8       8       9

 Information Technology                        89      80      64
                                                                           REPORT
                                                                           SUSTAINABILITY




 Others                                       241     236     301

 Total                                       3,774   4,021   4,350



2023 ANNUAL REPORT & SUSTAINABILITY REPORT                           391
Page 392
  SUSTAINABILITY
  REPORT




         EMPLOYEE COMPOSITION BY LOCATION



                                            Kalimantan
                     Sumatera                  259                                      Maluku
                        547                                             Sulawesi           16
                                                                          332                         Papua
                                                                                                        33



                                           Jawa
                                           2.416
                                                         Bali, NTT & NTB
                                                               171




                              DESCRIPTION                                 2023               2022               2021

          Sumatera                                                         547                  596               627

          Jawa                                                            2,416              2,548              2,881

          Sulawesi                                                         332                  375               403

          Kalimantan                                                       259                  276               284

          Papua                                                              33                  35                41

          Bali, NTB and NTT                                                171                  176                99

          Maluku                                                             16                  15                15

          Total                                                          3,774               4,021              4,350




         Gender diversity can also be seen at senior management      section. The Company’s Board of Directors is currently
         level. As for the Board of Directors and Board of           conducted by a woman who served the position of
         Commissioners levels, the composition of diversity can      President Director.
         be seen in the governance overview in the Annual Report


         THE COMPOSITION OF FEMALE EMPLOYEES WHO OCCUPY THE SENIOR MANAGEMENT LEVEL AND NON
         SENIOR MANAGEMENT LEVEL

                              DESCRIPTION                                 2023               2022               2021

          Senior Management Level                                        22.4%              21.1%              22.0%

          Non Senior Management Level                                    22.4%              22.0%              20.6%




392
Page 393
PT BUSSAN AUTO FINANCE




                                                                                                                         HIGHLIGHTS
                                                                                                                         PERFORMANCE
     New Recruit Fulfillment [GRI 401-1]
Fulfillment of human resources is always adjusted to     In 2023, the Company recruited 195 new employees
business development plans based on the suitability      to occupy various functions both at the head office
of workforce competency with the Company’s needs.        and in network offices. Fulfilling talent needs in 2023
The realization of the plan to fulfill human resources   came from within the Company and external to the




                                                                                                                         REPORT
                                                                                                                         MANAGEMENT
emphasizes a selection process that is tailored to the   Company to occupy special positions at the head office
Company’s needs.                                         and network offices.




NEW RECRUIT COMPOSITION BY GENDER

                    DESCRIPTION                               2023               2022                2021

 Male employees                                                138                232                 240

 Female employees                                               57                120                 108




                                                                                                                         PROFILE
                                                                                                                         CORPORATE
 Total                                                         195                352                 348




NEW RECRUIT COMPOSITION BY AGE

                    DESCRIPTION                               2023               2022                2021




                                                                                                                         DISCUSSION & ANALYSIS
                                                                                                                         MANAGEMENT
 <25 years                                                      37                  74                 96

 26 - 35 years                                                 129                230                 203

 36 - 45 years                                                  27                  45                 48

 46 - 55 years                                                   2                   3                  1

 Total                                                         195                352                 348




NEW RECRUIT COMPOSITION BY LOCATION

                    DESCRIPTION                               2023               2022                2021
                                                                                                                         GOVERNANCE
                                                                                                                         CORPORATE




 Sumatera                                                       26                  24                 33

 Jawa                                                          143                 281                258

 Sulawesi                                                       11                  14                 24

 Kalimantan                                                      8                  21                 22

 Papua                                                           3                    3                 5

 Bali, Nusa Tenggara Barat and Nusa Tenggara Timur               3                    9                 6

 Maluku                                                          1                    0                 0
                                                                                                                         REPORT
                                                                                                                         SUSTAINABILITY




 Total                                                         195                 352                348




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                         393
Page 394
  SUSTAINABILITY
  REPORT




              Employee Turnover Rate
              [GRI 401-1]


         In 2023, the number of employee resignations was 337,      and a motivating career path and aconducive work
         with turnover rate of 8.6% or lower than in 2022. The      environment
         Company’s efforts to maintain the turnover rate include
         providing compensation at a competitive rate, benefits
         that provide a sense of security and convenient at work,


                             Total                                                   Turnover
                             Resignation                                             Rate


                             337                                                     8.6%
              2023                2022                2021              2023             2022             2021

               337                 580                690               8.6%             13.9%            15.1%




         EMPLOYEE TURNOVER BY GENDER

                             DESCRIPTION                                2023             2022             2021

          Male employees                                                  264              469              542

          Female employees                                                 73              111              148

          Total                                                          337               580              690




         EMPLOYEE TURNOVER BY AGE

                             DESCRIPTION                                2023             2022             2021

          <25 years                                                       13               17               37

          26 - 35 years                                                  156              237              299

          36 - 45 years                                                  155              290              316

          46 - 55 years                                                   13               36               38

          Total                                                          337              580              690




394
Page 395
PT BUSSAN AUTO FINANCE




                                                                                                                          HIGHLIGHTS
                                                                                                                          PERFORMANCE
EMPLOYEE TURNOVER BY LOCATION

                     DESCRIPTION                                 2023             2022                2021

 Sumatera                                                         54                  59               117

 Jawa                                                            216               432                 447




                                                                                                                          REPORT
                                                                                                                          MANAGEMENT
 Sulawesi                                                         35                  43                44

 Kalimantan                                                       20                  20                45

 Papua                                                             4                   5                 8

 Bali, NTB and NTT                                                 8                  21                28

 Maluku                                                            0                   0                 1

 Total                                                           337                  580              690




                                                                                                                          PROFILE
                                                                                                                          CORPORATE
                                                          healthy together for a better life. The pillars of the
     Forced Labor and Child Labor                         Physical & Emotional Health Program are improving
     [GRI 408-1]                                          the physical and emotional health of employees as
                                                          outlined in the following initiatives:
The Company’s policy in managing Human Resources          • Pojok Kayuh which invites employees at head office
(HR) ensures not to hire child laborers under 18 years       and branch office to actively move by walking/
of age and forced labor, and is not involved directly/       running/cycling.




                                                                                                                          DISCUSSION & ANALYSIS
                                                                                                                          MANAGEMENT
indirectly with partners who conducted these practices.   • Pojok Sehat which invites all employees to pay
                                                             attention to physical health through education and
This is in accordance with prevailing labor regulations      the use of health test equipment (glucometers and
and is stated in Company Regulations article 6               tensimeters) which are available in every Company
concerning Employee Recruitment and article 48               office.
paragraph 5 concerning Annual Leave.                      • Pojok Curhat which invites employees to pay
                                                             attention to the mental health of employees, co-
                                                             workers and families through various educational
     Personnel Activities                                    webinar programs and psychological assistance by
                                                             professional psychologists for several employees
In 2023, the Company actively organized various              who need it.
activities to increase employee engagement. One of        • Reactivation BAF Club
them is continuing the Fit for Growth program in 2023        To create work life balance, the Company facilitates
focusing on Physical & Emotional Health which aims to        its employees through BAF Club - Sport, which is a
ensure that all Company employees can grow and be            routine employee activity consisting of:
                                                                                                                          GOVERNANCE
                                                                                                                          CORPORATE




  Badminton                  Futsal                Exercises                E-Sport                   Music
     Club                     Club                    Club                   Club                     Club
                                                 (Yoga, Zumba,
                                                    Poundfit)
                                                                                                                          REPORT
                                                                                                                          SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                          395
Page 396
  SUSTAINABILITY
  REPORT




         Fit For Growth (FFG) was first initiated in 2022 by adapting 4 aspects such as financial, social, emotional and
         physical aspects as a COVID-19 pandemic recovery program so that all employees, customers and business partners
         can grow and be healthy together. In implementing FFG in 2023, the Company focuses on activities related to
         emotional and physical aspects.


         Background

              2020                         2021                        2022                                  2023




                           Pandemic Phase                                            Recovery Phase




                                  Impact                                              Must Recover



          Financial      Social       Emotional     Physical




396
Page 397
PT BUSSAN AUTO FINANCE




                                                                                                                          HIGHLIGHTS
                                                                                                                          PERFORMANCE
                                                                                                                          REPORT
                                                                                                                          MANAGEMENT
                   EMOTIONAL                                                 PHYSICAL



                   Pojok Curhat Participants                                 Pojok Sehat Participants


                   >1,220                                                    5,340




                                                                                                                          PROFILE
                                                                                                                          CORPORATE
                   PART ICIPANT S                                            PA RTI C I PA NTS




                                                                             Pojok Kayuh Participants


                                                                             1,194
                                                                             PA RTI C I PA NTS




                                                                                                                          DISCUSSION & ANALYSIS
                                                                                                                          MANAGEMENT
Pojok Curhat                                              Pojok Sehat
A program that invites employees to pay attention to      A program that invites all employees to pay attention
the mental health of employees, co-workers and families   to physical health through education and the use
through various webinar educational programs and          of health testing equipment (glucometers and
psychological assistance by professional psychologists.   tensimeters) which are available in every BAF office.

Objective                                                 Pojok Kayuh
Increase everyone’s awareness of the importance of        A program that invites the employees at the head office
maintaining a mental health.                              and branch office to actively move by walking/running/
                                                          cycling.
Acitivity
• Webinars with experts on emotional wellness             Objective
• Face-to-face counseling with a Psychologist             Encourage a healthy lifestyle
• Harassment is No Joking Webinar (PBB)
• Webinar on Signs You Need Counseling                    Activity
                                                                                                                          GOVERNANCE
                                                                                                                          CORPORATE




• Togetherness in Diversity Webinar: Everyone Can         • Webinars with experts on emotional wellness
    Affect!                                               • 10 KM challenge for cycling/running/walking
• Togetherness in Diversity Webinar: Working with         • Blood Sugar & Blood Pressure Check
    Special Person                                        • BAF Lions Run: Running Competition
• One on one sessions with psychologists for selected     • Health Talk Webinar: Health Check
    employees                                             • Webinar Check Blood Sugar Levels & Blood Pressure,
                                                             What is Normal?
                                                          • Blood Sugar and Blood Pressure Checks for the
                                                             period 12-24 June 2023
                                                          • Blood Sugar & Blood Pressure Control Webinar Now!
                                                          • Blood sugar and blood pressure checks for the period
                                                             19 September - 17 November 2023
                                                          • Run & Share: Get Healthy, Spread the Benefits
                                                          • 10,000 KM Challenge
                                                                                                                          REPORT
                                                                                                                          SUSTAINABILITY




                                                          • BAF Club (badminton, zumba, yoga, futsal, music,
                                                             game club, and others)




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                          397
Page 398
  SUSTAINABILITY
  REPORT




         BAF Employee Engagement Index 2023




                   Engagement Index                   Highly Engaged Employee               Engagement Drivers Score


                       84                                   83%                                      87
         In addition, the Company also strives to increase
         awareness in an internal community, where fellow                BAF Employee Survey (BES)
         employees must care for each other and create happier
         and more grateful lives. The Company facilitates           In measuring the level of employee engagement, the
         employees to donate through BAF Peduli by carrying         Company regularly conducts BAF Employee Surveys.
         out the following activities:                              This is implented to address the main issues that
         • BAF Peduli Masa Depan is implemented by                  management needs to improve in creating a conducive
             providing educational scholarships to 75 children of   work environment for employees.
             employees with good grades, where the scholarships
             are used to purchase school needs, school fees and     With various personnel activities in 2023, the
             courses.                                               Company’s employees engagement level of increased
         • BAF Peduli Emergency Operasi Jantung to assist           as reflected in the Engagement Index from 83 in 2022
             employees with heart disease to undergo surgery.       to 84 in 2023. Then, the highly engaged employee index
         • BAF Peduli Siaga is implemented to assist fellow         which measures how employees’ pride and motivation
             employees affected by various disasters in Makassar,   to work at the Company also increased from 82% in
             Manado, Sumbawa Besar, Maros, Purwokerto,              2022 to 83% in 2023. In addition, the engagement
             Semarang and Cirebon, totaling 130 employees.          drivers score which measures several driving factors for
                                                                    employee engagement also increased from 85 in 2022
                                                                    to 87 in 2023.




              Employee Facilities and Benefits [GRI 401-2]
         The Company provides several facilities and benefits following the applicable provisions as stated in the Company
         Regulations, including




                         Placement and Accommodation
                                                                                    Holiday Allowance
                         Allowances




                                                                                    Medical benefit for the employee
                         Business Travel Facilities
                                                                                    and their family




                         Wedding and Childbirth Gifts                               Condolence Money Assistance




398
Page 399
PT BUSSAN AUTO FINANCE




                                                                                                                          HIGHLIGHTS
                                                                                                                          PERFORMANCE
                Employee Activities Assistance                               Loan for Employees




                Employee Education and Training




                                                                                                                          REPORT
                                                                                                                          MANAGEMENT
                                                                             Life Insurance for Employees
                Assistance




In order to improve employee facilities, since 2018
the Company has also collaborated with insurance                Employee Performance Appraisal
companies to provide special life insurance facilities          [GRI 404-3] [GRI 405-2]
to permanent employees with the aim of protecting
unexpected financial conditions caused by death or         The Company conducts periodic performance
in other words as financial protection for the less-       appraisals for all employees to measure work results




                                                                                                                          PROFILE
                                                                                                                          CORPORATE
fortunate families.                                        and achievements according to the specified targets.
                                                           The performance appraisal procedure follows the
In addition, in accordance with prevailing laws and        provisions of the Company’s internal policies. The
regulations, the Company includes employees in the         purpose of further performance appraisal is to provide
BPJS Employment program including Life Insurance           opportunities for career advancement or to measure
(JK), Work Accident Insurance (JKK), Old Age Security      job interests and needs.
(JHT), and Pension Security (JP).
                                                           The Company also continuously grants promotions for
The Company provides several allowances based              competent employees to be promoted to positions or
on certain positions/positions/conditions, including       ranks. The promotion mechanism for this promotion
position allowances, communication allowances,             refers to the Company’s internal policies.




                                                                                                                          DISCUSSION & ANALYSIS
                                                                                                                          MANAGEMENT
placement allowances, and car ownership facilities for
certain positions.                                         In addition, the Company can also carry out rotations
                                                           whether by the request of employees or Management’s
The Company also provides leave rights to employees,       decision. Job rotation aims to increase employee
including annual leave, long leave, birthday leave,        work productivity and broaden or increase employee
maternity leave and miscarriage, menstrual rest, illness   knowledge.
and leave to perform religious services.


                             Promotion                                                    Rotation


                             145
                             E MPLOY E E S
                                                                                          797
                                                                                          EMP LOYEES
                                                                                                                          GOVERNANCE
                                                                                                                          CORPORATE




                             42              103                                          552          245
                             Female          Male                                         Female       Male
                                                                                                                          REPORT
                                                                                                                          SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                          399
Page 400
  SUSTAINABILITY
  REPORT




                                                                      The Company implements remuneration system to
              Remuneration [GRI 405-2]                                motivate and retain the best employees. In order
                                                                      to support the Company’s strategy and encourage
         In providing remuneration, the Company provides              optimal and sustainable performance, the Company
         fair awards without discrimination based on gender,          implements performance-based remuneration. In
         ethnicity, race, religion, skin color and other diversity.   addition, the Company also implements a wage
         Remuneration is provided entirely based on                   structure and scale in accordance with prevailing
         performance achievements and responsibilities of the         regulations, both remuneration determination is also
         position held.                                               carried out by taking into account the performance of
                                                                      each individual employee (based on performance), the
         The Company implements remuneration system based             performance of the work unit and the performance
         on employee performance achievements. Every April,           of the Company as a whole while still concerning the
         the Company adjusts employee salaries by considering         Company’s capabilities.
         the inflation rate plus certain value based on increasing
         employee competency and the condition of the
         company’s capabilities.




                                                                      Comparison of the lowest compensation
                                                                      for male and female employees


                                                                      1:1

                                                                      In employment practices, the Company also seeks
              Regional Minimum Wage                                   to comply with all employment regulations. The
                                                                      Company implements a competitive remuneration
         The Company understands that the remuneration                system and provides decent wages in accordance
         given to employees’ influences performance                   with the provisions of the Provincial Minimum Wage
         productivity. Therefore, the Company strives to concern      (UMP) in the area where each employee is assigned.
         to the welfare of its employees by providing facilities      Therefore, the Company provides compensation for
         for employee needs based on remuneration standards           the services of permanent employees at the lowest
         following statutory provisions, such as regional             level of at least the provincial minimum wage set by
         minimum wage rates, holiday allowances, overtime pay,        the government. In addition to basic wages/salaries
         health insurance, uniforms, and other facilities which       given to all permanent employees, the Company also
         are provided according to position level, position, and      provides allowances and bonuses, as well as other
         so on.                                                       benefits in accordance with the level of position and
                                                                      period of service.




                                       Ratio of Permanent Employee Salary
                                       Compared to Regional Minimum Wage (UMR)                  1:1
                                                                      In addition, the Company also provides employees with
              Maternity Leave [GRI 401-3]                             miscarriage leave and special menstrual rest leave for
                                                                      female employees for 45 calendar days and 2 working
         Female employees who have entered their due date             days respectively.
         will get three months of maternity leave, while male
         employees whose wife gives birth will be given special       In 2023, there are 44 female employees and 54 male
         leave for 3 days. This leave right is regulated under        employees who take maternity leave and paternity
         the Company’s Regulations. The policy also lists the         leave and have returned to work according to their
         right to leave for all employees, including annual leave,    initial positions. On the other hand, total employee that
         long leave, birthday leave, and miscarriages, menstrual      takes menstruation leave in 2023 was 85.
         breaks, illness, and leave to perform religious worship.



400
Page 401
PT BUSSAN AUTO FINANCE




                                                                                                                                 HIGHLIGHTS
                                                                                                                                 PERFORMANCE
                              Employees who are entitled to Maternity Leave and Paternity Leave

                                                                                                                    549

                                                                                                                  2,533


                              Spending Maternity Leave                    Returning to Work after Maternity Leave




                                                                                                                                 REPORT
                                                                                                                                 MANAGEMENT
                              and Paternity Leave                         and Paternity Leave


                              44
                              FE MAL E
                                                     54
                                                     MA LE
                                                                          44
                                                                          FEMA LE
                                                                                              54
                                                                                              MA LE
                              E MPLOY E E            EMP LOYEE            EMP LOYEE           EMP LOYEE



                              Spending Menstrual Leave


                              85            E MPLOY EE




                                                                                                                                 PROFILE
                                                                                                                                 CORPORATE
     Upholding the Right to Association                               Manpower Issues Complaints
     [GRI 2-30] [GRI 407-1]                                           Mechanism
The Company supports the fulfillment of Human                    The Company provides the broadest possible
Rights in employment practices, including the right to           opportunity for employees to submit complaints,
associate. Although it is not explicitly stated in Company       messages, questions and reports to the Company. The
policy, in accordance with Article 104 paragraph (1) of          Company provides delivery mechanisms that can be
Law no. 13 of 2003 concerning Employment (“UUK”),                used by Company employees, including through:




                                                                                                                                 DISCUSSION & ANALYSIS
                                                                                                                                 MANAGEMENT
establishment a trade union is the right of all workers.         a SMS hotline to the specified number
The explanation of Article 104 paragraph (1) of the              b. E-mail
UUK explains that the freedom to establish, enter or not         c. Telephone
become a member of a trade/labor union is one of the             d. Direct meetings according to the designated time/
basic rights of workers. Therefore, the Company provides            schedule.
freedom of association to all Company employees.
                                                                 Employee complaints that cannot be resolved by the
As end of 2023, there is no labor unions in the                  Company by way of deliberation will be resolved based
Company. However, the Company always maintains                   on prevailing legislation.
good and mutually beneficial industrial relations with
all employees.                                                   To facilitate the employees to communicate with HRM
                                                                 at head office, the Company has provided 24 hour
                                                                 service via HR Chatbot DEA, and employees can easily
                                                                 contact HRM as needed, for example via HR Industrial,
                                                                 HR System, HR, Service, HR Comben & Payroll, and others
                                                                                                                                 GOVERNANCE
                                                                                                                                 CORPORATE
                                                                                                                                 REPORT
                                                                                                                                 SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                 401
Page 402
  SUSTAINABILITY
  REPORT




                                                                     •   Technology Associate Program (TAP), is a program
              Employee Capacity Training and                             to prepare young leaders in the technology field
              Development [GRI 404-2]                                    whose resources come from fresh graduates or those
                                                                         who have 1-2 years of work experience.
         The Company is concerned with human resources               •   Training held internally with internal teaching staff
         as the main supporting asset in achieving the best              or external teaching staff who have special abilities
         performance. Therefore, training and education                  to meet the competency development needs of
         programs are an integrated part of the initiative to            certain employees.
         improve the quality of recruited personnel continuously.    •   Leadership Curriculum created to improve leadership
                                                                         competencies at all levels.
         The Company believes that to have a competitive             •   Certification, especially as required by the OJK,
         advantage, the human resources shall be equipped                namely to standardize the knowledge of business
         with the skills and competencies required by the                leaders and billing teams so that they can be in line
         Company, both to support current and future business            with applicable regulations and procedures.
         strategies and targets. Therefore, the development of
         HR competencies in the Company is carried out using         In general, education and training materials are divided
         an approach designed with attention to the individual       into 2 (two) integrated parts, as follows:
         needs of employees, organizations, and business             a. Hard skills training: basic knowledge and skills
         objectives in the short and long term, with due regard          regarding business knowledge, internal control, and
         to effectiveness, efficiency, impact and learning               work functions for marketing, billing, administration,
         objectives to be achieved.                                      finance, IT, and others.
                                                                     b. Soft skills training, integrated parts, as follows:
         HR development is directed at developing employee               knowledge and supporting skills tailored to the
         competencies to carry out their duties appropriately and        needs and career path of each position, including
         with integrity by implementing training programs based          effective     communication,       self-management,
         on the competencies needed for employees at every               supervisory skills, leadership skills, analytical
         level. Therefore, internal training and external training       thinking, and problem-solving.
         are provided for employees to develop competencies,
         such as participating in basic certification programs,      The various strategic initiatives carried out by the
         particularly certification of financing and collection      Company in 2023 can be seen in the Human Resources
         expertise as required by the OJK. Training and education    section in the Management Discussion Analysis Chapter.
         programs are also provided for employees who have
         recently joined or are eligible for career promotion,
         particularly for business leader positions and other             Employee Competency Development
         strategic positions in the Company.                              [GRI 404-1] [GRI 404-2]

         Several types of training programs for employees that       Throughout 2023, the Company has implemented
         have been carried out include the following:                competency improvement program in the form of
         • New Employee Orientation Training (Induction              certification, seminars and training for employees.
            Program), is a program to provide basic knowledge        The realization of HR development funds allocated for
            about company business, company regulations              the year reached Rp19.6 billion. This year, employee
            and information technology security awareness,           participation in training and capacity development
            anti-money laundering and prevention of terrorism        recorded 9,157 employees (including outsourced
            financing, anti-fraud, and driving safety.               workers) with an average training and certification hour
         • Corporate/Management Development Program (C/              of 19.4 hours per employee.
            MDP), is a program to prepare future young leaders
            at the head office and network offices where the
            resources come from fresh graduates or those who
            have 1-2 years of work experience.




402
Page 403
PT BUSSAN AUTO FINANCE




                                                                                                                                HIGHLIGHTS
                                                                                                                                PERFORMANCE
           Development Cost                        Employee Participation                   Average Training Hours


           19.6                                    9,157                                    19.4




                                                                                                                                REPORT
                                                                                                                                MANAGEMENT
           B I L L I ON R U PIAH                   EMP LOYEES                               HOURS / EMP LOYEE




           DESCRIPTION                   PARTICIPANT             TRAINING HOUR                    AVERAGE HOUR

 Overall                                      9,157                    177,341                         19.4

 Based on Gender




                                                                                                                                PROFILE
                                                                                                                                CORPORATE
   Male                                       7,408                    136,655                         18.5

   Female                                     1,749                       40,686                       23.3

   Total                                      9,157                    177,341                         19.4

 Based on Position

   Board of Directors and                        13                           461                      35.5
   Executive Officers




                                                                                                                                DISCUSSION & ANALYSIS
                                                                                                                                MANAGEMENT
   Division Head and                             46                        3,117                       67.8
   Deputy Division Head

   Department Head                              143                        9,370                       65.5

   Deputy Department Head                       352                       15,729                       44.7

   Supervisor                                   767                       27,464                       35.8

   Staff                                      7,836                    121,200                         15.5

   Total                                      9,157                    177,341                         19.4




The list of training and certification based on the number of participants, type of training, number of activities, and
                                                                                                                                GOVERNANCE
                                                                                                                                CORPORATE




number of hours based on mapping of competency types is as follows:

IMPLEMENTATION OF TRAINING AND CERTIFICATION BASED ON TOTAL PARTICIPANTS

                         DESCRIPTION                               2023                2022                2021

 Technical Skill                                                   88,918              80,046              33,328

 Soft Competency                                                   32,014              41,153                 7,452

 Assessment and Certification                                       1,210                 216                   676

 Others                                                                   -                   -            22,022
                                                                                                                                REPORT
                                                                                                                                SUSTAINABILITY




 Total                                                           122,142             121,415               63,478




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                403
Page 404
  SUSTAINABILITY
  REPORT




         IMPLEMENTATION OF TRAINING AND CERTIFICATION BASED ON TOTAL ACTIVITIES

                                DESCRIPTION                            2023          2022               2021

          Technical Skill                                              315            194               136

          Soft Competency                                              153            121               118

          Assessment and Certification                                    8             7                    2

          Others                                                          -              -                12

          Total                                                        476            322               268




         IMPLEMENTATION OF TRAINING AND CERTIFICATION BASED ON TOTAL HOURS

                                DESCRIPTION                            2023          2022               2021

          Technical Skill                                             119,774       103,892             55,300

          Soft Competency                                              54,962        55,200             13,332

          Assessment and Certification                                  2,605         2,287              1,299

          Others                                                              -              -          23,860

          Total                                                       177,341       161,379            93,791




                                                              continues to be enhanced. Employees can also access
              E-Learning and Online Training                  the LMS via BAF Learning Mobile via smartphone
                                                              anywhere and anytime. Various training materials and
         In 2023, the Company also optimizes employee         training modules can be accessed and downloaded
         capacity development trough online. This is          from the BAF Learning Center or BAF Learning Mobile,
         implemented by utilizing Learning Management         including sustainable finance training materials.
         System (LMS) based on a Module application that




                   Total Modules                  Total Participants                     Total Training Hours for
                   in LMS                         Accesing                               Participants in LMS


                   56
                   MOD U LE S
                                                  9,143
                                                  PA RTI C I PA NTS
                                                                                         1.1
                                                                                         HOURS / EMP LOYEE




404
Page 405
PT BUSSAN AUTO FINANCE




                                                                                                                         HIGHLIGHTS
                                                                                                                         PERFORMANCE
       HEALTH

The Company always strives to support the health          The Company enrolls its employees in the Health Care




                                                                                                                         REPORT
                                                                                                                         MANAGEMENT
quality of all employees in accordance with the           Insurance program through the BPJS Kesehatan. In
applicable laws and regulations. This is stated in the    addition, the Company also provides additional health
Company Regulation policy.                                insurance facilities for permanent employees and their
                                                          families, which include:




                   Health Care Assistance                                    Childbirth Expance Assistance
                   (Outpatient & Dental Care)
                                                                             The Company provides
                   The Company provides                                      reimbursement for the cost




                                                                                                                         PROFILE
                                                                                                                         CORPORATE
                   outpatient facilities for                                 of birth in a maternity home
                   employees and their families.                             along with the cost of doctors
                   This program is a health care                             /midwives for the birth of
                   program that is preventive and                            children up to a maximum of
                   cures for symptoms or health                              3 (three) children or 3 (three)
                   problems that do not require                              births within certain limits.
                   hospitalization.



                   Hospital Care Assistance                                  Medical Check Up Fee
                   (Inpatient)




                                                                                                                         DISCUSSION & ANALYSIS
                                                                                                                         MANAGEMENT
                                                                             The Company provides
                   The Company also provides                                 facilities for employees to carry
                   hospital care facilities to                               outperiodic health checks for
                   employees and their families.                             certain positions/positions/
                                                                             agesthat have been determined
                                                                             by the company.



                   Assistance with the Cost of                               Provision of Health Kits
                   Eyeglasses/Contact Lenses
                                                                             The Company regularly provides
                   The Company provides                                      health kits to employees in the
                   reimbursement of eyeglasses/                              form of vitamins, milk and fruits.
                   contact lenses to permanent
                   and family employees within
                                                                                                                         GOVERNANCE
                                                                                                                         CORPORATE



                   certain limits.




In 2023, several health webinars conducted as part of     Pressure Webinar (June 2023), Blood Sugar & Blood
Fit for Growth, such as the Health Talk Webinar: Health   Pressure Control Webinar (September 2023). [GRI 403-4]
Check (March 2023), Check Blood Sugar Levels & Blood
                                                                                                                         REPORT
                                                                                                                         SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                         405
Page 406
  SUSTAINABILITY
  REPORT




                                                                      cleanliness and condition and to comply with all
              Covid-19                                                Health Protocols that have been established as
                                                                      measures to prevent disease transmission (for example:
         At the beginning of COVID-19 pandemic in 2020, the           wearing a mask, using the antiseptic provided), as well
         Company established a National COVID-19 Task Force,          as the obligation to maintain and maintain a safe and
         namely the COVID-19 Task Force (“COVID-19 Task               healthy work environment.
         Force”). This task force monitors and controls health
         protocols to prevent the transmission of COVID-19 in         The Company also conducts employee health checks,
         the work environment Company to move towards a               one of which is through a routine medical check-up
         healthy, safe and productive society.                        program for certain positions/positions/ages that have
                                                                      been determined by the Company.
         In 2023, the Company still monitor employees’ health
         on a daily basis providing health tests, including antigen   Throughout 2023, the Company identified no type of
         swabs, for employees, especially at the head office, was     work with high health risk [GRI 403-10]. 349 employees
         carried out until August 2023. With the revocation of        have undergone regular medical check-ups with the
         the Covid-19 pandemic status in Indonesia in June            majority of employees are in good health results. If
         2023 and disbandment of COVID-19 Tasforce, the               there are results that require follow up, employees will
         Company has also eliminated daily antigen tests for          be given a warning to always maintain their health.
         WFO employees at the head office. However, the
         Company remains vigilant by monitoring employees
         including guests who visit BAF Plaza to ensure physical           Decent and Safe Working Environment
         health problems, such as coughs and colds. [GRI 403-2]            [GRI 403-7]


                                                                      The Company believes that achieving the best
              Medical Check-Up Program [GRI 403-6]                    performance canonly be achieved by creating a
                                                                      decent, safe, and conducive working climate and
         As a form of the Company’s commitment to ensure              environment with facilities that support the needs
         employee health aspects, the Company always urges            ofemployees. The following are facilities that are
         the employees to maintain the work environment               available at the Company’s office, including:




                             Worship facilities                                          Canteen
                             (prayer room)
                                                                                         The Company provides a
                             The Company provides space for                              canteen or BAF Cafe and
                             employees to perform worship.                               minimarket for employees at the
                                                                                         head office.



                             Training Room                                               Lactation Room (Nursery
                                                                                         Room) at the head office
                             The Company provides training
                             rooms at the head and branch                                TheCompany provides a
                             offices to develop and improve                              lactation room (nursery room)
                             employee capabilities. The                                  to support the government’s
                             training room at the head                                   exclusive breast milk (ASI)
                             office can even accommodate                                 program for female employees
                             employees with a capacity of up                             who still provide breast milk for
                             to 150 (one hundred and fifty)                              infants aged 0-6 months. The
                             people.                                                     room is equipped with a freezer
                                                                                         to store breast milk.




406
Page 407
PT BUSSAN AUTO FINANCE




                                                                                                                          HIGHLIGHTS
                                                                                                                          PERFORMANCE
                   Library                                                   Wellness Room

                   To increase interest in reading                           The Company has a wellness
                   and learning on an ongoing                                room that employees can use
                   basis, the Company maintains                              for various corporate wellness
                   library at the head office which                          activities at the head office.




                                                                                                                          REPORT
                                                                                                                          MANAGEMENT
                   provides various collection of
                   books that employees can be
                   borrow.



                   Sport Corner                                              Refreshment Room

                   The Company also has a sports                             The Company’s head office
                   corner at the head office that                            is equipped with refreshment
                   provides various facilities such                          rooms on each floor. This
                   as table tennis, treadmill and                            refreshment room is equipped




                                                                                                                          PROFILE
                                                                                                                          CORPORATE
                   bike gym.                                                 with a pantry, sink, refrigerator,
                                                                             microwave, dispenser, television,
                                                                             and water boiler.



                   Vehicle parking

                   To facilitate the Company’s
                   employees’ mobilization, the
                   company prepared vehicle




                                                                                                                          DISCUSSION & ANALYSIS
                                                                                                                          MANAGEMENT
                   parking at the head office for
                   both motorcycle and cars with
                   adequate capacity and security.




From 2022 to 2023, the Company conducted renovation       3. Cigarette Smoke Control: Reduce the exposure
and refreshment the workspace layout on each floor           of building users and interior material surfaces
to create a workspace with a concept that pays more          from polluted environment by cigarette smoke to
attention to lighting aspects, balanced and appropriate      maintain the healthiness of building users. The
color composition, replacement of furniture to support       company displays “No Smoking” sign and does not
the implementation of productive work process, as well       provide designated smoking area except outside
as making changes to the interior of the work space          area the building or rooftop.
and decoration to make employees more comfortable         4. Exterior view: Reduces eye fatigue by providing
                                                                                                                          GOVERNANCE
                                                                                                                          CORPORATE



at work. Several aspects that are of concern to the          long-range views and providing visual connection
Company include the following:                               to the exterior of the building, particularly in the
1. Thermal comfort: The temperature of the work space        head office.
    complies with Green Building Council Indonesia        5. Chairs and work desks that pay attention to
    (GBCI) standards by maintaining comfortable and          ergonomic aspects
    stable room temperature and humidity to increase      6. Health protocols comply with the government
    the productivity of building users.                      regulations and the Company’s internal policies.
2. Visual comfort: Work space lighting is in accordance
    with standards to prevent visual disturbances
    due to lighting levels that do not match the eye’s
    accommodation capacity.
                                                                                                                          REPORT
                                                                                                                          SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                          407
Page 408
  SUSTAINABILITY
  REPORT




                   WORK SAFETY

         The Company always strives to create peace and              The Occupational Health and Safety Committee has
         security for its employees at work, so that employees can   organized various programs to improve occupational
         work better and employees can meet their productivity       health and safety throughout 2023. Details of the
         targets in completing their work.                           implementation of occupational health and safety
                                                                     programs carried out by the Occupational Health and
                                                                     Safety Committee can be seen in the Company’s Annual
              Work Safety Policy                                     Report segment regarding the implementation of the
                                                                     work of committees under the Board of Directors.
         The Company also regulates work safety as stated
         in the Company Regulations, where employees are             The Company has hired employees with General
         expected to be able to work while complying with            K3 Expert (AK3U) certification. This employee also
         work safety standards or other provisions related to        serves as member of the Advisory Committee for the
         work safety. To protect safety at work in place or under    Occupational Health and Safety Committee. The
         circumstances deemed necessary by the Company,              certification is a competency test preparation training
         employees will be provided or equipped with work safety     program carried out by the BNSP National Licensed
         equipment to be used during working time.                   Professional Certification Institute (LSP) which refers to
                                                                     the Indonesian National Work Competency Standards
         In implementing work safety, the Company refers to          (SKKNI) Number 38 of 2019. [GRI 403-2]
         Law No. 1 of 1970 concerning Occupational Health
         and Safety. The Company also strives to implement an
         Occupational Health and Safety Management System                 Activities in the Field of Work Safety
         (SMK3), in accordance with PP No. 50 of 2012 to
         implement and maintain best practices of health and         Throughout 2023, the Company has organized several
         safety management standards in the Company.                 activities in the field of work safety, including:
                                                                     1. Inspect and examinate safety equipment at the
                                                                         Company’s head office;
              Work Safety Committee [GRI 403-3]                      2. Carrying out safety equipment inspections in terms
                                                                         of compliance in network offices;
         The Company already has an Occupational Health              3. Inspecct the expiry date of safety equipment
         and Safety Advisory Committee. This committee                   certificates (gondolas, electrical installations,
         was establsihed pursuant to the Decree No. 13/AM/               lighting feeder installations, fire protection, lifts,
         CP/IV/2016 dated April 26, 2016. This committee                 etc.);
         is responsible to ensure the implementation of              4. Organize safety training for building maintenance,
         occupational health and safety within the company,              security services and cleanliness of the Company’s
         as well as providing suggestions and considerations,            head office which held in June 23, 2023.
         whether requested or not, to the Board of Directors
         regarding Occupational Health and Safety issues.            The policies that have been implemented within the
                                                                     Company to support work safety and security include:



                                                                                         Availability of important
                             Availability of evacuation
                                                                                         telephone numbers information
                             procedures during emergency
                                                                                         such as fire and police
                                                                                         departments.



                             Employees are required to use                               Office visitors are required to fill
                             identity cards while in the work                            in the guest book and exchange
                             environment.                                                identity cards.




408
Page 409
PT BUSSAN AUTO FINANCE




                                                                                                                            HIGHLIGHTS
                                                                                                                            PERFORMANCE
                                                                                  Obligation to maintain and
                    Provision of life insurance
                                                                                  conserve safe and healthy work
                    medical facilities for employees.
                                                                                  environment.




                                                                                                                            REPORT
                                                                                                                            MANAGEMENT
                    Prohibition of smoking inside
                    the work location.




In addition, to ensure a safety, comfortable and
healthy work environment, the Company has                              Safety Riding
Disaster Recovery Center or DRC facility which is
tested regularly to handle incidents, such as fire,           One of the efforts to implement the OSH (Occupational




                                                                                                                            PROFILE
                                                                                                                            CORPORATE
flood, or earthquake disasters. The development of            Health and Safety) culture within the Company is to
DRC is an important action to ensure the continuity of        increase awareness and understanding of employee
the Company’s operations in the event of disruptions          safety riding to support the Company’s operations.
beyond the control of the infrastructure in the data
center at the head office and at branch offices.              The Company has established P2K3 Committee
Handling of emergency actions is managed by the               (Occupational Health and Safety Advisory Committee)
Business Continuity Committee within the framework            which include Safety Riding work unit who’s
of Business Continuity Management, which is a form            responsible to conduct socialization, education and
of the Company’s protection of a decent, safe and             monitoring regarding safety riding in the Company’s
comfortable workplace.                                        internal environment.




                                                                                                                            DISCUSSION & ANALYSIS
                                                                                                                            MANAGEMENT
                                                              The Company also has a safety riding commitment to
                                                              be carried out by all employees, as follows:




Prioritize safety driving               Check the vehicle’s                       Wear personal protective
by comlying with traffic                condition prior the use                   equipment while driving
rules.                                  (brakes, fuel, horn, lights,              (SNI helmet, jacket,
                                        mirrors and tires)                        gloves, trousers and
                                                                                  shoes).
                                                                                                                            GOVERNANCE
                                                                                                                            CORPORATE




Maintain a safe driving                 Maintain a safe speed                     Maintain the good
distance.                               (maximum 50km/hour).                      condiiton of the body
                                                                                  and the vehicle
                                                                                                                            REPORT
                                                                                                                            SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                            409
Page 410
  SUSTAINABILITY
  REPORT




         The Company has carried out various activities and initiatives to increase employee awareness, both at the head
         office and at the Company’s network offices. The various activities and initiatives carried out by the Company
         include the following Safety Riding training: [GRI 403-5]


         1. E-Learning Safety Riding for all employees

            Safety Riding E-Learning               Mandatory e-Learning                       Defensive Riding
            for new employees                      for all employees                          E-Learning specifically
            (Company Induction                                                                for P2K3 & Safety Riding
            Program)                                                                          Ambassador
            Jan-Dec 2023                           January 2023                               December 2023


            3,399
            PA RT I C I PANT S
                                                   8,280
                                                   PA RTI C I PA NTS
                                                                                              222
                                                                                              PA RTI C I PA NTS




         2. TFT Defensive Riding (Training for Trainers) with Yamaha Riding Academy team both in theory and field
            practice.

            TFT Defensive Riding                   TFT Defensive Riding
            for Network Office                     for appointed head
            Leader                                 office employees

            Jun-Sep 2023                           November 2023


            229
            PA RT I C I PANT S
                                                   57
                                                   PA RTI C I PA NTS




         3. Safety Riding E-Learning for new employees                 4. Periodic reports to the Board of Directors
            (Company Induction Program)                                   The Safety Riding Report which is reported monthly
            Since its establishment in 2020, Safety Riding                and its analysis has been presented in the Board
            Ambassador (SRA) has been cooperate and                       of Directors Meeting as evaluation and monitoring
            collaborate with the Riding Safety Committee –                material, so that appropriate mitigation and
            P2K3 in campaigning and implementing                          preventive actions can be taken immediately.
            implementation culture of safety riding awareness
            within the Company.                                        5. Driving safety campaigns (digital flyer, video)
                                                                          through various channels, such as:
            The implementation of the duties and                          a. Whatsapp group P2K3 & Safety Riding
            responsibilities of P2K3 & Safety Riding                          Ambassador.
            Ambassadors to increase Safety Riding Awareness               b. Safety Riding Talk material
            in 2023 is as follows:                                        c. Safety Riding Quiz for P2K3 Ambassadors
            a. Proactively implement P2K3 program in their                d. Safety Riding Digital Flyer.
                respective work environments.
            b. Report via E-Form P2K3 if accident occurs, an           6. Servis Kunjung Yamaha (SKY)
                employee is sick or a natural disaster.                   The Company collaborates with Yamaha to
            c. Conduct Safety Riding Talks or provide messages/           open Servis Kunjung Yamaha (SKY) activities at
                training to all employees in their respective             the Company’s head office and network offices
                areas to continue to increase awareness and               (Regional Center). This activity is aimed at
                understanding of the importance of driving                campaigning for good vehicle maintenance carried
                safety aspects. Safety Riding Talk has been held          out regularly. This activity is also supported by the
                428 times for 7,489 employees.                            marketing team with a special Yamaha motorcycle
                                                                          credit application program for employees. In 2023,
                                                                          this activity held 7 times at the head office and
                                                                          regional offices with 250 unit motorcycles.




410
Page 411
PT BUSSAN AUTO FINANCE




                                                                                                                          HIGHLIGHTS
                                                                                                                          PERFORMANCE
                                                                                                                          REPORT
                                                                                                                          MANAGEMENT
                                                                                                                          PROFILE
                                                                                                                          CORPORATE
                                                                                                                          DISCUSSION & ANALYSIS
                                                                                                                          MANAGEMENT
                                                          The Company always commits to carrying out the
     Occupational Accident Rate [GRI 403-9]               OccupationalHealth and Safety (OHS) program. The
                                                          Company realizes that many factors can also contribute
The Company continues to optimally implement              to thenumber of road accidents, but the Company
Occupational Health and Safety (OHS) by ensuring work     continues to raiseawareness to all employees that
safety and security within the Company’s environment.     “the health of us and our familiesis the first and most
                                                          important thing. Remember, My Safety for my Family”.
The Company pays full attention to employee work
safety.Therefore, the Board of Directors of the Company   In 2023, the number of accidents while driving
always reminds employees to be careful. This safety       increased slightly due to increased errors from other
riding message is always inserted at every opportunity    drivers, namely 35.5% compared to the previous year
by the Board of Directors to deliverremarks, such as in   of 24.4%.
the quarterly speech.                                                                                                     GOVERNANCE
                                                                                                                          CORPORATE




                   Accident Rate                                             Fatality
                   on Highways                                               Rate


                   76
                   E MPLOY E E
                                 0,8%
                                                                             0
                                                                             FATA LI TI ES



     2023                2022                2021              2023                2022               2021

      76                  41                  61                 0                    1                 0

     0.8%                0.5%                0.7%
                                                                                                                          REPORT
                                                                                                                          SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                          411
Page 412
      SUSTAINABILITY
      REPORT




                       SOCIAL
                       RESPONSIBILITY




                                           The Company has a commitment to actively contribute
                                           in developing a better quality of life with stakeholders
                                           which is achieved through series of integrated Corporate
             THE COMPANY HAS A STRONG      Social Responsibility (CSR) activities in all business
             BELIEF THAT SYNERGY BETWEEN   activities. This social responsibility is a manifestation
                                           of continuous concern for the environment and human
             CSR ACTIVITIES AND BUSINESS   resources in the Company’s internal circumstances.
             PERFORMANCE PLAYS AN
                                           The Company has a strong belief that synergy between
             IMPORTANT ROLE IN ACHIEVING   CSR activities and business performance plays an
                                           important role in achieving sustainable growth. The
             SUSTAINABLE GROWTH.
                                           Company has implemented strategic policies in CSR
                                           to crate conducive and sustainable business climate.
                                           Implementation of the Company’s CSR or CSR refers
                                           to Law no. 40 of 2007 concerning Limited Liability
                                           Companies. This regulation is the basis as well as
                                           guidelines for the Company to carry out good and
                                           equitable social responsibility in all aspects.




412
Page 413
PT BUSSAN AUTO FINANCE




                                                                                                                              HIGHLIGHTS
                                                                                                                              PERFORMANCE
Implementation of CSR activities in the Company is          Furthermore, the Company also participates in
carried out by the Social Responsibility Committee. The     providing support and assistance in various activities,
Corporate Social Responsibility Committee was formed        including seminars or other activities organized by
to assist the Company in fulfilling its responsibilities    various parties. This is done by considering that these
to stakeholders, including consumers, employees,            activities provide social and community benefit values.
shareholders, communities, and the environment in all       In social aspect, scope of the Company’s activities
aspects of the company’s operations such as economic,       covers the social sector broadly, but is not limited to




                                                                                                                              REPORT
                                                                                                                              MANAGEMENT
social, and environmental aspects. The details of the       natural disaster relief, poverty alleviation aid, health
Social Responsibility Committee can be seen in the          improvement assistance, and donation for socio-cultural
Committees Under the Board of Directors in this annual      religious activities in the society.
report.

                                                                 Social and Community Development
     Scope of Environmental Social
     Responsibility Activities                              The Company realizes that the Company’s growth is also
                                                            contributed from support of the society. Therefore, the
Overall, implementation of social responsibility has        Company would express our moral responsibility to the
included the Sustainable Development Goals (SDGs)           community through social and community development
that support implementation of sustainable finance.         which is carried out every year. This is expected to




                                                                                                                              PROFILE
                                                                                                                              CORPORATE
In the Company’s social responsibility activities,          contribute to the broader community. Throughout
education and welfare of the nation’s children aspects      2023, the Company has carried out various activities
have become main focus of the Company’s CSR                 oriented towards social and community development,
activities. The Company realizes that educational           most of which have supported the SDGs, as follows:
facilities and infrastructure contribute greatly to         Goal 3. Good Health and Well-Being. Ensure a healthy
supporting the learning process of students. Therefore,     life and improve the welfare of all residents of all ages
the Company is committed to provide educational             and Goal 4. Quality education. Ensure appropriate
assistance in various ways and methods. This activity is    and inclusive quality education and promote lifelong
usually packaged in the BAF Caring for Children activity.   learning opportunities for all.




                                                                                                                              DISCUSSION & ANALYSIS
                                                                                                                              MANAGEMENT
                              Goals 3                                                     Goals 4
                              Good Health and Well-                                       Quality education. Ensure
                              Being. Ensure a healthy                                     appropriate and inclusive
                              life and improve the                                        quality education and
                              welfare of all residents of                                 promote lifelong learning
                              all ages                                                    opportunities for alL




                                                            commitment to support the Sustainable Development
     BAF Caring for Children                                Goals (SDGs) especially SDG 4. Our focus is to help
                                                            Indonesian children 1-15 years old from less fortunate
                                                                                                                              GOVERNANCE
                                                                                                                              CORPORATE



The Company believes that children are the future of        families, street children, children with disabilities,
every nation. By helping to improve their quality of        and children special health concern to pursue their
life and education, we are improving the quality of         dreams. This becomes one of the Company’s intention
our next generation. However, inequality in access to       to contribute to society for a better future.
education and health, due to lack of infrastructure
and limited access, especially in rural areas, requires     We carry out various activities to carry out our mission
special attention and efforts. Therefore, the Company       to ensure their future is in good hands, by providing
takes part in this role by trying to provide equal          proper education and health assistance through BAF
access, especially education and health to Indonesian       Anniversary activities, BAF Sharing in Ramadhan and
children throughout the country. This reflects our full     Year-End, BAF Lions Run, and Foster Parents.
                                                                                                                              REPORT
                                                                                                                              SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                              413
Page 414
  SUSTAINABILITY
  REPORT




         26th BAF Anniversary
         The Company’s concern for equal distribution of the          Surabaya, Makassar and Medan. The assistance
         quality of Indonesian children from Sabang to Merauke        provided in this activity is in form of cash donations for
         is realized by providing assistance with school facilities   each of the 21 (twenty one) schools/foundations.
         and infrastructure. This activity was to welcome the 26th
         BAF Anniversary, the Company held a social activity with     This activity attended by the Company’s branch
         the theme “BAF Funtastic Land” on 24 September 2023          offices from each location representatives. Assistance
         which was held in 6 (six) cities as representatives of the   is distributed through representatives. The Company
         Company’s operational areas throughout Indonesia             hopes that the assistance provided will be useful in
         and this assistance was received with a total of 657         fostering the enthusiasm of Indonesian children to
         (six hundred and fifty seven) Indonesian children. The       continue pursuing their education.
         selected cities include Jakarta, Bandung, Semarang,




                             Total City                               Total                                    Total
                                                                      Beneficiaries                            Donation


                             6
                             CIT IE S
                                                                      ±657
                                                                      C HI LDREN
                                                                                                               200
                                                                                                               MI LLI ON RUP I A H



                2022               2021                  2022              2021                  2022                2021

                 12                     24             ±2,758              ±2,460                131                  265




              Benefit/Type of Donation

         2023                                     2022                                    2021

         Cash donation for 21 (twenty-one)        Distribution of 25 (twenty-five)        1. Education equipment donation;
         Schools/Foundations                      units of new laptops for 12 Schools/       and
                                                  Foundations                             2. Food and groceries donation.




414
Page 415
PT BUSSAN AUTO FINANCE




                                                                                                                               HIGHLIGHTS
                                                                                                                               PERFORMANCE
                                                                                                                               REPORT
                                                                                                                               MANAGEMENT
BAF Sharing in Ramadhan                                      making decisions during buying and selling activities.




                                                                                                                               PROFILE
                                                                                                                               CORPORATE
The Company held BAF Cares in Ramadhan on April              This activity was attended by the Company’s branch
14, 2023 called “Shopping with Orphans/People in             offices from each location representatives. Assistance
Need/Persons with Disabilities”. This event was held         is distributed through representatives. The company
in 12 (twelve) cities simultaneously across Indonesia,       hopes that the assistance provided will be useful in
namely Jakarta, Cianjur, Bogor, Bandung, Semarang,           fostering the enthusiasm of Indonesian children to
Purwokerto, Surabaya, Malang, Makassar, Ambon,               continue pursuing their education.
Medan, and Aceh. More than 400 orphans, less-
fortunate people and people with disabilities shop           The Company continues to maintain consistency in the
together at one of the minimarkets or supermarkets           efforts to equalize the welfare of Indonesian children
in the city.                                                 through CSR Ramadhan BAF Caring for Children by
                                                             providing assistance with nutritious food/beverages




                                                                                                                               DISCUSSION & ANALYSIS
                                                                                                                               MANAGEMENT
In addition to provide direct shopping experience to         packages to meet children’s nutritional intake so they
children, this joint shopping activity is expected to        can carry out fasting and school activities (PTM and
improve children’s cognitive abilities, one of which is in   online) better in this holy month.




                     Total City                              Total                                 Total
                                                             Beneficiaries                         Donation


                     12
                     CIT IE S
                                                             ±420
                                                             C HI LDREN
                                                                                                   294
                                                                                                   MI LLI ON RUP I A H



       2022                2021                  2022              2021                2022              2021
                                                                                                                               GOVERNANCE
                                                                                                                               CORPORATE



        18                      18            ±1,674              ±1,150               427                245




     Benefit/Type of Donation

2023                                      2022                                  2021

Shop together for daily necessities,      1. Providing 18 (eighteen)            1. Worship equipment donation;
such as food, drinks, fruit, as well as      motorcycles; And                   2. Groceries package donation;
Eid necessities, such as sarongs, peci    2. Providing nutritious food &           and
and mukenas.                                 drinks for children.               3. Education equipment donation
                                                                                                                               REPORT
                                                                                                                               SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                               415
Page 416
      SUSTAINABILITY
      REPORT




             BAF Shares Year End
             At the end of 2023, the Company held BAF Year End           be able to improve children’s cognitive abilities, one
             activities on December 15, 2023. This event conducted       of which is in decision making on selling and buying
             in 9 (nine) cities simultaneously across Indonesia, such    activities.
             as in Medan, Palembang, Jakarta, Bandung, Semarang,
             Surabaya, Samarinda, Makassar, and Manado. More             This activity was attended by representatives of the
             than 300 orphaned children shop together at one of the      Company’s branch offices from each location. The
             minimarkets or supermarkets in the city.                    donations was disseminated through representatives.
                                                                         The Company expects that the aid provided will be
             In addition to provide direct shopping experience to        useful in fostering the enthusiasm of Indonesian
             orphans, this joint shopping activity is expected to        children to continue pursuing their education.




                                 Total City                              Total                                 Total
                                                                         Beneficiaries                         Donation


                                 9
                                 CIT IE S
                                                                         ±300
                                                                         ORP HA NS
                                                                                                               233
                                                                                                               MI LLI ON RUP I A H



                    2022               2021                 2022              2021                 2022              2021

                       6                    18              ±600             ±1,850                316                336




                  Benefit/Type of Donation

             2023                                    2022                                   2021

             Shop together for food, beverages,      Appropriate learning equipment         1. Education equipment donation;
             clothes, shoes, and other necessities   and tools such as musical              2. Nutritious food and beverages
             towards the end of the year.            instruments, painting tools, sewing       donation; and
                                                     machines and other skills tools.       3. Health equipment donation




416
Page 417
PT BUSSAN AUTO FINANCE




                                                                                                                                                    HIGHLIGHTS
                                                                                                                                                    PERFORMANCE
                                                                                                                                                    REPORT
                                                                                                                                                    MANAGEMENT
                                                                                                                                                    PROFILE
                                                                                                                                                    CORPORATE
BAF Lion Run – Charity Run                                                      The company provided donation assistance to alleviate
The Company organized BAF Lions Run 2023. This                                  poverty in Indonesia in the form of building a food bank
running as well as a donation event was held hybrid                             worth Rp200 million. The donation was handed over by
(virtual and in person) on August 6, 2023. The Charity                          the President Director of the Company - Lynn Ramli, to
Run with “Run against Hunger” theme received good                               the representative of the Indonesian Lion Foundation
response, can be seen by the number of participants who                         (YLI) - Willy Suwandi Dharma.
registered. 3,500 runners from Indonesia and abroad.




                                                                                                                                                    DISCUSSION & ANALYSIS
                                                                                                                                                    MANAGEMENT
BAF Lions Run 2023 - Run against Hunger is a charity                            The themes raised in organizing the BAF Lions Run refer
run which aims to raise funds to eradicate hunger in                            to the 5 Global Causes which are the focus of Lions
Indonesia, as well as inviting people to maintain health                        Clubs International services.
and fitness by exercising regularly.




                          Total                                                 Total                                   Total donation
                          Runners                                               Beneficiaries                           & Sponsorship


                          3,500                                                 320*                                    1,500
                                                                                                                        MI LLI ON RUP I A H
                                                                                                                                                    GOVERNANCE
                                                                                                                                                    CORPORATE




       2022                       2021                       2022                      2021               2022                2021

       3,312                     3,200                      9,633                     26,163              950                  800




                   Benefit

2023                                                 2022                                          2021

Run against Hunger                                   Run for Environment                           V-Run for Diabetes
                                                                                                                                                    REPORT
                                                                                                                                                    SUSTAINABILITY




*)   Distribution to beneficiaries will continue until the allocated funds have been collected.




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                                    417
Page 418
  SUSTAINABILITY
  REPORT




         Foster Parents
         The Company realizes that not all Indonesian children    This program involves the participation of the
         in the regions can get the same quality of education     Company’s employees to become Foster Parents to
         as urban children. Therefore, the Company has a Foster   support the achievement of proper education for 680
         Parents program which was initiated in 2020 which aims   (six hundred and eighty) children in South Kalimantan
         to provide donations to elementary school children.      located across 12 elementary schools (SD), including
         In 2023, the Foster Parents was targeting elementary     SDN 9 Wakate, SDN Islam AL Khairiyah Ory , SDN 41,
         school children in Maluku.                               SDN 346 Central Maluku, SDN 94 Central Maluku, SD
                                                                  Inpres Ngafan, SDI Rerean, SDN 212 Central Maluku,
                                                                  SDN 179 Central Maluku, SDN 156 Central Maluku, SDN
                                                                  251 Central Maluku, and SDN 236 Central Maluku.




                            Total Foster                          Total Beneficiaries                      Total Donation
                            Parents


                            230
                            E M PLOY E E S
                                                                  680
                                                                  I N C ENTRA L
                                                                                                           170
                                                                                                           MI LLI ON RUP I A H
                                                                  MA LUKU

                2022                2021              2022                2021                 2022                2021

                152                 286               624                 683                  170                 170




             Benefit/Type of Donation

         2023                                  2022                                     2021

         School supplies donation              School supplies donation                 School supplies donation




418
Page 419
PT BUSSAN AUTO FINANCE




                                                                                                                               HIGHLIGHTS
                                                                                                                               PERFORMANCE
                                                                                                                               REPORT
                                                                                                                               MANAGEMENT
                                                                                                                               PROFILE
                                                                                                                               CORPORATE
                                                                                                                               DISCUSSION & ANALYSIS
                                                                                                                               MANAGEMENT
Safety Riding Science for Kids
Since 2022, the Company has a CSR program named               In 2023, CSR Safety Riding Science for Kids held on July
Safety Riding Science for Kids. This program is the           3 and 4, 2023 at the Jakarta Fair (PRJ). Approximately
Company’s commitment to the community, especially             365 children aged 7 to 15 years from SOS Children’s
children, to always provide advice and education in           Villages Indonesia and the Alpha Indonesia Foundation
safety and security when doing activities on the road         participated in this activity.
from an early age.




                    Total Beneficiaries                       Total Donation
                                                              & Sponsorship


                    ±365                                      31
                                                                                                                               GOVERNANCE
                                                                                                                               CORPORATE




                    CHIL D R E N                              MI LLI ON RUP I A H



       2023               2022                   2023               2022

       ±365               ±700                    31                 12




    Benefit/Type of Donation

2023                                      2022
                                                                                                                               REPORT
                                                                                                                               SUSTAINABILITY




Education related to security and         Education related to security and
safety in road activities.                safety in road activities.




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                               419
Page 420
  SUSTAINABILITY
  REPORT




         BAF United for Care
         The Company held BAF United for Care for the first time    •   employees play with orphanage children at various
         in 2023, precisely in August – September. This activity        playgrounds (share the fun)
         involved more than 800 employees at the head office        •   employees play and learn with street children (be a
         and branch offices which were held in 10 (ten) cities          big bro)
         spread across Indonesia, including Jakarta, Bandung,       •   employees share hopes with children with cancer
         Semarang, Surabaya, Makassar, Medan, Purwakarta,               (share a hope)
         Banten, Yogyakarta and Sentul. More than 1,100             •   employees provide school supplies to schools in
         children who received aid participated in this activity.       need (build our school)

         This United for Care activity focuses on employee          This activity is part of the 26th BAF Anniversary series
         interaction with beneficiary children which is ranged      which marks the company’s existence as well as being
         into various activities as follows:                        the right momentum for the Company to be able to
                                                                    provide something useful for children in need.




                            Total City                              Total Beneficiaries


                            10
                            CIT IE S                                ±1,177
                            Total donation
                                                                         Benefit/Type of Donation

                            335
                            MIL LION R U PIAH
                                                                    •
                                                                    •
                                                                        Nutritious food and drinks
                                                                        Laptops
                                                                    •   Bicycle
                                                                    •   Clothes
                                                                    •   School supplies




420
Page 421
PT BUSSAN AUTO FINANCE




                                                                                                                                 HIGHLIGHTS
                                                                                                                                 PERFORMANCE
     Indonesia CSR Awards 2023
In 2022, WartaEkonomi.co.id was awarded the title
of Outstanding Program in Social Empowerment,




                                                                                                                                 REPORT
                                                                                                                                 MANAGEMENT
Environment and Financial Literacy in the Multifinance
Category in the 2022 Indonesia CSR Awards.

The Company’s CSR program “BAF Caring for Children”
which focuses on improving the quality of education
for Indonesian children which has been implemented
since September 2019 is considered capable of
demonstrating leadership, concern, dedication, and
sustainable corporate commitment in incorporating
ethical values, and appreciation for individuals, society,
and the environment.




                                                                                                                                 PROFILE
                                                                                                                                 CORPORATE
This achievement spurred the Company to continue to
contribute to improving the quality of education for
children in Indonesia.


     CSR Cost
In 2023, the Company allocated a budget to support
the social and community responsibility as follows:




                                                                                                                                 DISCUSSION & ANALYSIS
                                                                                                                                 MANAGEMENT
                    CSR Activity             2022
                    Budget                   2.09
                    2.1
                    BIL LION R U PIAH
                                             2021
                                             1.80


                                                              results received by the beneficiaries. Therefore, the
     Impact of Operations on Surrounding                      Company continues to strive to improve the assessment
     Communities                                              and evaluation of the distribution of CSR activities
                                                              by considering various aspects and conditions of CSR
                                                                                                                                 GOVERNANCE
                                                                                                                                 CORPORATE



Impact of Social Activities and Handling of Public            activity disbursement target.
Complaints
Through its corporate social responsibility activities, the   Public Complaint
Company views that the CSR program has a positive             The Company has a complaint mechanism provided to
impact on the people’s lives, especially the beneficiaries    accommodate complaints from consumers as well as
of these CSR activities. However, the Company realizes        from the public, including if there are complaints related
the potential negative impacts, for example social gap        to social aspects. The community if there are operations
between the beneficiary community and those who               and businesses of the Company that have a negative
have not received the CSR program or differences in           impact on social aspects of society.




             BAF Care Hotline                          BAF Care e-mail                          BAF Care SMS Hotline
                                                                                                                                 REPORT
                                                                                                                                 SUSTAINABILITY




             1500 750                                  bafcs@baf.id                             +62 878 7780 0123




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                 421
Page 422
  SUSTAINABILITY
  REPORT




         By end of 2023, there was no complaints from the              Services Sector, and SEOJK No. 30/SEOJK.07/2017
         public regarding social and environmental issues. The         concerning Implementation of Activities to Improve
         Company also did not receive any complaints from              Financial Literacy in the Financial Services Sector.
         the public regarding the negative impact of the social
         aspect of the Company’s existence.                            Financial Literacy
                                                                       Financial Literacy is knowledge, skills, and beliefs,
         The number of public and customer complaints                  which influence attitudes and behavior to improve the
         received and followed up regarding the Company’s              quality of decision making and financial management
         products and services can be seen in the discussion on        to achieve prosperity. The implementation of the
         Responsibility to Consumers in this annual report.            Company’s financial literacy is stated in the Company’s
                                                                       internal policies which are under the Corporate Planning
                                                                       & Secretary Division.
              Financial Literacy and Inclusion
                                                                       The objectives is to improve the quality of individual
         The Company believes that with a good understanding           financial decision making, and to change individual
         of financial products, the society people can ultimately      attitudes and behavior in financial management for the
         utilize these financial products to improve their             better. It is expected that the public and consumers will
         welfare. Therefore, financial literacy and inclusion          be able to determine and utilize financial institutions,
         have become one of the focuses of government and              products, and services according to their needs and
         financial institution policies in Indonesia. Moreover,        abilities in order to achieve prosperity.
         the Financial Services Authority (OJK) together with the
         Financial Services Industry (IJK) continue to encourage       BAF PEKA (Your Financial Education Program) [GRI 413-1]
         and implement financial literacy and inclusion programs       BAF PEKA is a form of activity to increase financial
         so that the financial literacy and inclusion index targets    literacy carried out by the Company. This activity is
         set by the government can be achieved.                        the Company’s annual activity by providing financial
                                                                       education to the public in various regions in Indonesia.
         The Company is actively involved in organizing                This activity aims to increase the level of financial
         financial literacy and inclusion activities for the           literacy of the community in the financial services
         wider community to date. The Company continues                sector, especially in the financing and insurance sector,
         to organize financial literacy and inclusion activities       including financial planning and entrepreneurship.
         to the public to introduce the industry and/or
         financial service institutions, including the benefits        Throughout 2023, the Company has held 8 (eight) BAF
         and risks of financial products and services. This is         PEKA activities. Financial literacy participants in 2023
         also a compliance to the Financial Services Authority         include housewives (women’s community), students,
         Regulation (POJK) No. 76/POJK.07/2016 concerning              Micro, Small and Medium Enterprises (MSMEs)
         Improvement of Financial Literacy and Inclusion in            actors, general public, Company consumers, farmers,
         the Financial Services Sector for Consumers and/or            teachers and people with disabilities. In 2023, the
         the public, as amended on OJK Circular Letter (SEOJK)         implementation of financial literacy activities carried
         No. 31/SEOJK.07/2017 concerning Implementation of             out in a hybrid manner in collaboration with several
         Activities to Increase Financial Inclusion in the Financial   insurance companies.




422
Page 423
PT BUSSAN AUTO FINANCE




                                                                                                                                       HIGHLIGHTS
                                                                                                                                       PERFORMANCE
BAF Peka Partner                                                   and believe that financial products and services can
The financial education and literacy activity is expected          improve their welfare.
to increase people’s understanding or knowledge,
confidence and skills so that they can determine financial         The following is a table of implementation of financial
products and services that suit their needs, understand            literacy education activities organized by the Company
the benefits and risks, know their rights and obligations          throughout 2023:




                                                                                                                                       REPORT
                                                                                                                                       MANAGEMENT
 NO                   PARTICIPANT                TOTAL                        DATE                            PARTNER

 1         Woman and Public                          117           8 March 2023                      PT Asuransi Sinar Mas

 2         Customers and Public                                                                      PT Asuransi Tugu Pratama
                                                      74           16 May 2023                       Indonesia Tbk

 3         College Student                            47           15 June 2023                      PT Asuransi Reliance




                                                                                                                                       PROFILE
                                                                                                                                       CORPORATE
                                                                                                     Indonesia

 4         Farmer                                     98           26 July 2023                      PT Lippo General
                                                                                                     Insurance Tbk

 5         Teacher                                    25           14 November 2023                  PT Asuransi Staco Mandiri

 6         Xtra BAF and Public                        44           24 November 2023                  PT Asuransi Mega

 7         Disabilities and Public                    42           1 December 2023                   PT Asuransi Bintang Tbk

 8         Teacher                                    14           28 December 2023                  -




                                                                                                                                       DISCUSSION & ANALYSIS
                                                                                                                                       MANAGEMENT
                         Total                                     Total Activity                              Total literacy
                         Participant                                                                           partners


                         461                                       8                                           6
                                                                                                               I NS URA NC E
                                                                                                               C OMPA NY

        2022                     2021                2022               2021                   2022                  2021

        451                      471                  7                   8                      6                      8
                                                                                                                                       GOVERNANCE
                                                                                                                                       CORPORATE




Knowledge Improvement


                          88.0
 81.8
                                       6.4%
              11.0%                           67.9
                          81.6
 73.8
                                                           37.0%

                                              49.6                                  Average pre-test score

                                                                                    Average post-test score

                                                                                    Knowledge Improvement
                                                                                                                                       REPORT
                                                                                                                                       SUSTAINABILITY




2021                     2022                 2023




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                       423
Page 424
  SUSTAINABILITY
  REPORT




         Smart Family with Healthy                Wise in Manage Money & Debt             A Glympse of Current
         Financial                                for Business Productivity               Business Practices
         The first activity to be carried out     The Company held an online              On June 16, 2023, the Company
         in 2023 was carried out online           BAF PEKA activity with the public       collaborated with PT Asuransi
         on March 8, 2023, supported              society and the Company’s               Reliance Indonesia to conduct
         by Sinar Mas Insurance. The              consumers on May 16, 2023 in            special direct webinar for
         event was attended by 117                collaboration with PT Asuransi          students at Paramadina
         (one hundred and seventeen)              Tugu Pratama Indonesia Tbk              University. The event was
         participants and 82% of them             which was attended by 74                attended by 47 (forty seven)
         were women. This moment was              (seventy four) participants.            participants.
         addressed to plan future financial
         goals.



                                                                                          People with Disabilities Towards
                                                                                          Financially Independent
                                                                                          Society
                                                                                          The company also contributes
                                                                                          in literacy socialization to
                                                                                          people with disabilities in Bogor.
                                                                                          With a total of 46 (forty six)
                                                                                          participants, the activity was
                                                                                          held on December 1, 2023 in
                                                                                          collaboration with PT Asuransi
                                                                                          Bintang Tbk. The event also
                                                                                          commemorates International
                                                                                          Day of Persons with Disabilities.


         Strengthening the Understanding and Teachers Role in the Current Era
         The seminar activity which was held on November 14, 2023 was the result
         of collaboration between the Company and PT Asuransi Staco Mandiri
         and was attended by 25 (twenty five) teachers who were members of the
         Economics Subject Teachers’ Conference (MGMP) throughout Jakarta.




         Sahabat Petani Financing                 The Importance of Financial             Get to know Muamalah Sharia
         On July 26, 2023, the Company            Literacy to Seize the                   Better
         and PT Lippo General Insurance           Opportunities                           In terms of sharia financial
         Tbk held a seminar for farmers. A        To maintain better relations with       literacy activities, the Company
         total of 98 (ninety eight) farmers       Xtra BAF agents and the society,        provides financial literacy
         participants attended the event.         the Company held a seminar on           to teachers in Bogor online.
                                                  November 24 2023. The seminar           This activity prioritized the
                                                  in collaboration with PT Asuransi       introduction of sharia for
                                                  Mega was attended by 38 (thirty         muamamah and was attended
                                                  eight) participants                     by 14 teachers.




         Financial Inclusion                                        increased supply of products and/or financial services
         Financial Inclusion is the availability of access to       in accordance with the needs and capabilities of the
         various financial institutions, products, and services     community; increased use of financial products and/or
         in accordance with the needs and capabilities of           services in accordance with the needs and capabilities
         the community in order to improve the welfare of           of the community; and increasing the quality of the
         the community. The implementation of financial             use of financial products and services according to the
         inclusion has objectives including: increasing public      needs and capabilities of the society.
         access to financial institutions, products and services;




424
Page 425
PT BUSSAN AUTO FINANCE




                                                                                                                             HIGHLIGHTS
                                                                                                                             PERFORMANCE
Implementation of financial inclusion in the Company        the Company, including new Yamaha motorcycle
is monitored by the Corporate planning & Secretary          financing, used motorcycle financing, Dana Syariah,
Division in collaboration with the Company’s business       car financing, electronic financing, gadgets and
units. The Company complies with government                 furniture, and agricultural machinery financing.
regulations and supports financial inclusion in Indonesia
in accordance with Presidential Regulation No. 82 of        In 2023, the BAF Festival held in the periods with
2016 concerning the National Strategy for Financial         certain duration, including during the Eid celebration,




                                                                                                                             REPORT
                                                                                                                             MANAGEMENT
Inclusion (SNKI). Support is carried out through            the BAF Anniversary in September in the BAF 26th
the implementation of financial inclusion activities        Anniversary, and various promos at the end of the
throughout 2023.                                            year. In addition, the Company also has the BAF Festival
                                                            Flash Deal which offers various attractive promotions
In 2023, the scope of activities to increase financial      for the Company’s financing products. Information on
inclusion were mostly done by expanding financial           these promos can be accessed through the website,
institutions, products and/or services to consumers. In     social media, or from the Company’s BAF Mobile.
2023, the Company also developed financial products
and/or services in accordance with the needs and            In 2023, the Compay ha held promotion activities in
capabilities of consumers and/or society.                   9 (nine) cities in Indonesia, including Jepara, Jambi,
                                                            Medan, Indramayu, Surabaya, Bandung, Makassar,
BAF Festival & BAF Flash Deals                              Jakarta, and Semarang.




                                                                                                                             PROFILE
                                                                                                                             CORPORATE
BAF Festival is an activity that provides various kinds
of promotions to the public for all products owned by




                              Total BAF                                                  Total
                              Festival events                                            Distributed units


                              27                                                         10,714
                                                                                         UNI TS




                                                                                                                             DISCUSSION & ANALYSIS
                                                                                                                             MANAGEMENT
Live TikTok
As part of the introduction of financing products, the      account. Throughout 2023, the Company published 13
Company periodically organizes virtual events in form of    (thirteen) Live TikTok, with details as follows:
Live TikTok @bafindonesia through the Company’s TikTok



 NO                           TOPIC                             THEME                DATE             VIEWERS

 1        The Joy of Ramadhan Blessings                     Ngabuburit         28 Mar 2023               1,232
                                                            with BAF
 2        A cool way to make Eid fun                                           18 Apr 2023              10,140
                                                                                                                             GOVERNANCE
                                                                                                                             CORPORATE



 3        Increase Post-Holiday Productivity                                   22 May 2023                   581

 4        Preparation for BUCIN Theo-style                                     30 May 2023               6,068

 5        Indonesian vs Argentina national team                                13 Jun 2023               4,321

 6        Long Weekend                                                         27 Jun 2023               6,645
                                                            Ngobrol Asyik
 7        BAF Goes to College                               ala BAF            04 Aug 2023               5,133

 8        National Customer Day                                                04 Sep 2023               7,638

 9        Road to BAF 26 Years Extravaganza                                    22 Sep 2023               2,965

 10       Young with Masterpiece                                               19 Oct 2023               6,188
                                                                                                                             REPORT
                                                                                                                             SUSTAINABILITY




 11       Special Hero Day Edition                                             14 Nov 2023               8,378




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                             425
Page 426
  SUSTAINABILITY
  REPORT




          NO                          TOPIC                            THEME                DATE             VIEWERS

          12       Road to Harbolnas 12.12                                            11 Dec 2023               5,700
                                                                   Ngobrol Asyik
                                                                   ala BAF
          13       End of Year’s Holiday                                              22 Dec 2023               9,100




         Booth/Expo Opening
         Throughout 2023, the Company also continues               In November 2023, the Company participated
         to actively open booths/expos. The Company also           in JakJapan Matsuri activity, collaborative event
         participates in Financial Inclusion Month (BIK)           introducing Jakarta and Japanese culture. This activity
         activities organized by the OJK for 1 (one) month, from   held on November 18 – 19, 2023 at JiExpo Area Gambir,
         1 – 31, October 2023. During the BIK, the Company         Jakarta.
         participated in the Multifinance Day event organized
         by the Association of Indonesian Financing Companies      During the events, the Company offers various series
         (APPI) in the city of Palembang on October 13 – 15,       of activities that support financial education programs,
         2023. Apart from that, the Company also participated      financial literacy and financial inclusion.
         in the Financial Expo (FinExpo) activities which were
         held on 26 – 29, October 2023 offline at Pakuwon Mall,
         Yogyakarta.




         Total events                 Number of units              Variety of Promotions
                                      distributed                  The Company actively provides various promotions,


         27                           2,295
                                                                   discounts and various other marketing activities to
                                                                   attract the public to utilize the Company’s financing
                                                                   products. Some of the promotions being carried out
                                      U NIT                        in 2023 include providing down payment discounts,
                                                                   installment discounts, low down payments, savings
                                                                   on installments and low interest, both directly and
                                                                   through various Company’s social media.




426
Page 427
PT BUSSAN AUTO FINANCE




                                                                                                                                 UTAMA
                                                                                                                                 IKHTISAR
                                                                                                                                 HIGHLIGHTS
                                                                                                                                 PERFORMANCE
BAF Mobile and website
As a communication media to the public and
consumers, BAF Mobile as an application intended
for consumers to submit financing applications,
access various financing information, and various
other conveniences, continues to be developed to
accommodate customer needs in 2023.




                                                                                                                                 MANAJEMEN
                                                                                                                                 LAPORAN
                                                                                                                                 REPORT
                                                                                                                                 MANAGEMENT
                              Total bookings via BAF
                              mobile


                              2,697




                                                                                                                                 PERUSAHAAN
                                                                                                                                 PROFIL
                                                                                                                                 PROFILE
                                                                                                                                 CORPORATE
                              U NIT S




                              Bookings via BAF mobile
                              to total booking


                              0.5%



                                                                                                                                 MANAJEMEN
                                                                                                                                 ANALISA & PEMBAHASAN
                                                                                                                                 DISCUSSION & ANALYSIS
                                                                                                                                 MANAGEMENT
Network expansion
Financial Inclusion activities carried out by the Company throughout 2023 also include expanding access,
including expanding the used motorcycle financing business line services in Serang, Berau and Makassar as well
as various other inclusion activities aimed at increasing community inclusion in the Company’s products and
services.



                              Total network office                                          Total units distributed
                              expansions


                              6                                                             412
                                                                                                                                 PERUSAHAAN
                                                                                                                                 TATA KELOLA
                                                                                                                                 GOVERNANCE
                                                                                                                                 CORPORATE




                              NE T WOR K OFFICE S                                           UNI TS




The Company is committed to continue its educational, literacy and financial inclusion activities initiatives, including
expanding the Company’s educational goals or targets which can ultimately contribute to increase the financial
literacy and inclusion index in Indonesia.
                                                                                                                                 KEBERLANJUTAN
                                                                                                                                 LAPORAN
                                                                                                                                 REPORT
                                                                                                                                 SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                 427
Page 428
  SUSTAINABILITY
  REPORT




                   OPTIMIZING SERVICE
                   TO CONSUMERS




                                         The Company realizes that quality service is the key
                                         to maintain customer loyalty and sustainability of the
                                         Company’s business. Therefore, the Company strives
         THE COMPANY STRIVES TO          to prioritize interests of consumers in carrying out its
         PRIORITIZE INTERESTS OF         business activities. This commitment is manifested by
                                         applying customer protection principle in every business
         CONSUMERS IN CARRYING OUT ITS   activity of the Company, which is improved from time
         BUSINESS ACTIVITIES             to time.

                                         The Company is committed to always protecting the
                                         interests of consumers by adjusting market needs and
                                         demands, as regulated in a series of management
                                         policies related to product development, product safety,
                                         and customer complaint services. In implementing
                                         corporate social responsibility programs and activities to
                                         consumers, the Company has and enforces a Customer
                                         Protection Policy and Provision of Information/Data/




428
Page 429
PT BUSSAN AUTO FINANCE




                                                                                                                                          HIGHLIGHTS
                                                                                                                                          PERFORMANCE
Documents to External Parties, which refers to the
policies and regulations that apply in Indonesia,                            Program Implementation
including:                                                                   Initiative in 2023
1. OJK Regulation (POJK) No. 18/POJK.07/2018
    concerning Customer Complaint Services in the                      In line with business growth and increasing competition
    Financial Services Sector.                                         in the industry especially in the financing industry, the
2. POJK No. 31/POJK.07/2020 concerning the                             Company has placed service as one of the Company’s




                                                                                                                                          REPORT
                                                                                                                                          MANAGEMENT
    Implementation of Customer and Community                           featured differentiations. Therefore, throughout 2023,
    Services in the Financial Services Sector by Financial             the Company has implemented various initiatives to
    Services Authority.                                                improve customer services. The Company has periodically
3. POJK No. POJK No. 6/POJK.07/2022 concerning                         refreshed and monitored the service standards set to be
    Customer and Public Protection in the Financial                    used as guidelines for each employee and implemented,
    Services Sector as a new regulation repealing the                  especially the frontliners (Customer Service, Admin Staff,
    Financial Services Authority Regulation No. 1/                     Finance Staff and Security) in the Company’s network
    POJK.07/2013 concerning Customer Protection in                     offices. The Company has also conducted “Refreshment
    the Financial Services Sector.                                     Training Service Excellence” and “Refreshment Training
4. POJK No. 22 of 2023 concerning Customer and                         Complaint Handling” for frontliners. Where the material
    Community Protection in the Financial Services                     provided in training includes Service Mindset, Service
    Sector.                                                            Standards & Handling Customer Complaints according




                                                                                                                                          PROFILE
                                                                                                                                          CORPORATE
                                                                       to prevailing regulations.




                                   2023                                     2022                             2021
    TOPIC
                      TOPIC             PARTICIPANTS                TOPIC      PARTICIPANTS         TOPIC         PARTICIPANTS

 Training        Service                        265          Sertifikasi              57       Online training         538
 Services        Excellence                                  Internal AoH                      - Refreshment




                                                                                                                                          DISCUSSION & ANALYSIS
                                                                                                                                          MANAGEMENT
 Excellence      Standards for                                                                 service
                 Security Officers                                                             excellence for
                                                                                               AO

 Training        AFROSS                         682          AFROSS                  706       Admin Finance           712
 Complaint                                                                                     Refreshment
 Handling                                                                                      OPS
                                                                                               Sharing Session
                                                                                               (AFROSS)




To improve and maintain the consistency of excellent                   regular monitoring and coaching services are expected
service standards carried out by all frontliners at the                to improve and maintain consistent standards of
Company’s network offices, the Company has carried                     excellent service to consumers. The service monitoring
out regular monitoring and coaching services. The                      method uses several assessment parameters as follows:
                                                                                                                                          GOVERNANCE
                                                                                                                                          CORPORATE




                Self Assessment                                                        Cross Function




                Validation Service Monitoring
                (carried out by video call method or direct visit                      Mystery Call
                to the Network Office)
                                                                                                                                          REPORT
                                                                                                                                          SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                          429
Page 430
  SUSTAINABILITY
  REPORT




                         Online Competency Test (OCT)                                Network Facilities




                         Customer Feedback




         Self-Assessment, Cross Function, Validation Service         To foster enthusiasm and give appreciation to the
         Monitoring is a measurement of the service of frontliners   Company’s network offices that consistently provide
         (Customer Service, Admin Staff, Finance Staff and           excellent service to consumers, the Company has
         Security) regarding ethics in serving consumers (starting   created a program, namely the Best Service Quality
         from the beginning, middle and end of serving),             Competition Award. The assessment of the program is
         including an assessment of appearance standards as a        taken from several assessment parameters mentioned
         frontliner officer.                                         above. Winners of the Best Service Quality Competition
                                                                     Award program are announced every semester.
         Mystery Call and Online Competency Test are
         assessments to measure officer competency related           The Company also urges consumers to make installment
         to product knowledge, understanding and service             payments online through payment points that
         standards that are tailored to the monthly theme.           collaborate with the Company.
         Network Facilities Assessment is an assessment of
         aspects of the Company’s network office premises
         according to the customer journey which includes the             Disabled and/or Elderly Customer
         parking area, service lobby area and customer toilets.           Services
         The final assessment is regarding Customer Feedback,
         where a survey is carried out to measure the level of       Disabilities are any person who experiences physical,
         customer satisfaction with the overall service received     intellectual, mental and/or sensory limitations for a long
         when carrying out transactions at the Company, as well      time who, in interacting with the environment, may
         as measuring the level of customer loyalty towards the      encounter obstacles and difficulties in participating
         Company which is a promoter so that consumers are           fully and effectively with other citizens based on equal
         willing to recommend the Company to their closest           rights.
         relatives.
                                                                     The Company already has a policy on customer
                                                                     services for persons with disabilities and/or the elderly
                                                                     as stipulated in the Approval Memo No.0214/AM-
                                                                     OPD/12/2022 dated December 8, 2022 concerning
                                                                     the Approval of Service Standard Guideline Operation
                                                                     Division (December 2022). The service process flow for
                                                                     consumers with disabilities and or the elderly who visit
                                                                     the Company’s network office is as follows:
                                                                     1. The Company prepares at least 2 (two) Person in
                                                                         Charge (PIC) Special officers for disability and/or
                                                                         elderly services.
                                                                     2. Consumers come to the Company’s network office
                                                                     3. Security officer opens the door and asks about
                                                                         customer needs.
                                                                     4. Consumers convey their needs.
                                                                     5. Security officer helps provide special queue
                                                                         numbers for disabilities and guides consumers
                                                                         to sit in priority seats specifically for consumers
                                                                         with disabilities and/or the elderly (the seats have
                                                                         different writing/colors from other seats).
                                                                     6. Disabled and/or elderly consumers have a special
                                                                         queue number, so queueing with other consumers is
                                                                         unnecessary.




430
Page 431
PT BUSSAN AUTO FINANCE




                                                                                                                              HIGHLIGHTS
                                                                                                                              PERFORMANCE
7. When the customer’s queue number is called, the            customer involvement, among others, by submitting
    security PIC of the Company’s Network Office will         requests, input, or suggestions so that the Company can
    guide the customer to the PIC Special officers for        make improvements and further improve the service
    disability and or elderly services to provide services.   quality.
8. If disabled and/or elderly consumers have difficulty
    getting to the service counter, the PIC Special           In addition, we also provide access to the public and
    officers for disability and or elderly services must      other stakeholders to submit reports if there are




                                                                                                                              REPORT
                                                                                                                              MANAGEMENT
    approach these consumers.                                 problems arising from products, services, data security
9. After consumers with disabilities and/or elderly           and non-compliance with regulations. Complaints
    people have completed their transactions, security        can be made through various channels. During 2023,
    officer is required to help guide consumers to the        the Company received no complaints regarding non-
    exit lobby door.                                          compliance with regulations. The company also does
10. Security officer is obliged to open the door for          not receive environmental complaints. Detailed
    consumers.                                                information on specific types of customer complaints
11. PIC Special officers for disability and/or elderly        is described in the customer complaints table.
    services Network Office will guide consumers to the
    vehicle if needed.                                        To further improve services to the consumers, the
                                                              Company has customer care channels through various
                                                              communication channels, such as BAF Care, as follows:




                                                                                                                              PROFILE
                                                                                                                              CORPORATE
     Customer Care Channels [GRI 2-25]
The Company has implemented several strategic
steps to foster good customer relationships and
communication. The Company always encourages




                                                                                                                              DISCUSSION & ANALYSIS
                                                                                                                              MANAGEMENT
   BAF Care Hotline                                              BAF Care e-mail:
   1500 750                                                      bafcs@baf.id
   Customers who plan to submit a complaint                      Customers who want to submit a complaint
   or report, inquiry, or suggestion related to the              or report, inquiry, or suggestion related to the
   Company’s operations via phone call may use                   Company’s operations in a written letter, can use
   the facility provided by the Company through                  facilities provided by the Company via the e-mail
   BAF Care hotline number 1500750. BAF Hotline is               address bafcs@bussan.co.id.
   available from Monday - Friday to 08.00 - 17.00
   and Wednesday from 08.00 - 15.00 WIB.
                                                                                                                              GOVERNANCE
                                                                                                                              CORPORATE




   BAF Care SMS Hotline                                          BAF Website
   +62 878 7780 0123                                             www.baf.id
   Customers who want to submit complaints, reports,             The Company provides a channel to submit
   inquiries, or suggestions related to the Company’s            complaints or reports, inquiries, and suggestions
   operations in a written and short text can use the            via www.baf.id/contact-us.
   facilities provided by the Company via SMS Hotline
   at +62 878 7780 0123, available 24 hours a day
   and 7 days in a week.
                                                                                                                              REPORT
                                                                                                                              SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                              431
Page 432
  SUSTAINABILITY
  REPORT




         In addition to the media mentioned above, the              of POJK No. 18/POJK.7/2018 concerning Customer
         Company also provides complaint channels via social        Care in Financial Service Sector and SEOJK No. 17/
         media such as Facebook, Twitter and Instagram, BAF         SEOJK.07/2018 concerning Guidelines for Implementing
         Mobile, Live Chat via Line and WhatsApp Business or        Customer Complaint Services in the Financial Services
         through the Company’s branch offices.                      sector and POJK No. 31 /POJK.07/2020 Concerning the
                                                                    Implementation of Customer and Community Services
                                                                    in the Financial Services Sector by the Financial Services
              Report Follow-Up                                      Authority.

         In providing customer complaint-handling services,         At the end of 2023, the Company also made
         the Company is guided by POJK No. 6/POJK.07/2022           adjustments to POJK No. 22 of 2023 concerning
         concerning Customer and Community Protection in the        Customer and Community Protection in the Financial
         Financial Services Sector, OJK Circular Letter Number 2/   Services Sector.
         SEOJK.07/2014 regarding Customer Care and Report
         Settlement in Financial Service Business Player and        The following is a brief procedure for complaint services
         provision in other relevant regulations. The Company       to consumers and/or public:
         has also made adjustments in line with the issuance

                                                      COMPLAINT FLOW

                   COMPLAINT                 ESCALATION &                   COMPLAINT
                                                                                                          MONITORING
                   REPORTING                  SETTLEMENT                    SETTLEMENT


         Customer submit              BAF Care Officers                                           Internal
         complaint through            received the complaint                                      1. Monthly report to
                                      and recorded the                                               Management
                                      report into the system                                      2. Process reminder
                    BAF Care          and make a reporting                                           to related
                    Hotline           ticket report.                                                 department

                    BAF
                    Website           Next, Complaint
                                      Specialist esclated to                                      External
                    Social            related departments                                         Quarter report to OJK
                    Media             related to the customer
                                      complaint settlement
                    Welcome
                                      process.
                    Call

                    BAF Care
                    SMS
                    Hotline           Report investigation
                                      and settlement
                    BAF               process by related
                    Mobile            departments based on
                                      customer complaint
                    Cabang/           process SLA.
                    Branch

                    BAF Care
                    E-mail
                                      Feedback of complaint         BAF Care officers
                    Otoritas          investigation and             give confirmation to
                    Jasa              settlement result             customers via phone
                    Keuangan          is sent to the a              call related to result of
                    (OJK)             Complaint Specialist          complaint settlement.
                                      to be further delivered
                                      to BAF Care officers.




432
Page 433
PT BUSSAN AUTO FINANCE




                                                                                                                            HIGHLIGHTS
                                                                                                                            PERFORMANCE
     Total Complaints
Throughout 2023, the Company received 1,737 complaints and had been followed up in accordance with the provisions
of the Financial Services Authority. The following is data on the handling of customer complaints by the Company in
2023.




                                                                                                                            REPORT
                                                                                                                            MANAGEMENT
                                                      CLOSED                     OPEN             ON PROCESS
           DESCRIPTION                 TOTAL
                                                 TOTAL        %        TOTAL            %       TOTAL        %

 Multipurpose financing in form
 of installment payment

 Collateral issue                            -        -            -         -              -       -            -

 Mismatch in interest or principal           -        -            -         -              -       -            -
 calculation




                                                                                                                            PROFILE
                                                                                                                            CORPORATE
 Administration/Provision/                   1       1        0.1%           -              -       -            -
 Transaction Fees

 Fraud, deception or other violation         4       4        0.2%           -              -       -            -
 committed by employees and/or
 other parties

 Transaction failure/delay                44        44        2.5%           -              -       -            -

 Penalty                                     2       2        0.1%           -              -       -            -

 Objection on additional cost/               6       6        0.4%           -              -       -            -




                                                                                                                            DISCUSSION & ANALYSIS
                                                                                                                            MANAGEMENT
 penalty

 Financing object insurance issue         16        16        0.9%           -              -       -            -

 Total billing                            75        75        4.3%           -              -       -            -

 Financial information service           403       392       22.6%           -              -     11        0.6%
 system

 Others (SAMSAT, motorcycle              368       367       21.1%           -              -       1       0.1%
 dealer, others)

 Others financing approved
 by OJK

 Administration/Provision/                   -        -            -         -              -       -            -
 Transaction Fees
                                                                                                                            GOVERNANCE
                                                                                                                            CORPORATE




 Mismatch in interest or principal           -        -            -         -              -       -            -
 calculation

 Financing object insurance issue            -        -            -         -              -       -            -

 Collateral issue                            -        -            -         -              -       -            -

 Fraud, deception or other violation         -        -            -         -              -       -            -
 committed by employees and/or
 other parties

 Objection on additional cost/               2       2        0.1%           -              -       -            -
 penalty
                                                                                                                            REPORT
                                                                                                                            SUSTAINABILITY




 Penalty                                     2       2        0.1%           -              -       -            -




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                            433
Page 434
  SUSTAINABILITY
  REPORT




                                                                CLOSED                       OPEN                 ON PROCESS
                    DESCRIPTION                TOTAL
                                                           TOTAL         %           TOTAL          %           TOTAL                 %

          Financial information service            38          38       2.2%             -                  -       -                     -
          system

          Total billing                            53          53       3.1%             -                  -       -                     -

          Transaction failure/delay               514         514       29.6%            -                  -       -                     -

          Others (SAMSAT, motorcycle              209         208       12.0%            -                  -      1                  0.1%
          dealer, others)

          Total                                 1,737      1,724        99.3%            -                  -     13                  0.7%



                                                                                                TOTAL
             COMPLAINT CLOSED IN REPORTING PERIOD                       ≤ 20 DAYS            20 DAYS < X ≤              > 40 DAYS
                                                                           (A)                40 DAYS (B)                  (C)

          Complaint Received during the Reporting Period

            a. Closed                                                            -                      -                         -

            b. On Process                                                        -                      -                         -

          Sub Total                                                              -                      -                         -

          Report Received during the Reporting Period

            a. Closed                                                        1,554                  127                          43

            b. On Process                                                       5                       8                         -

          Sub Total                                                       1,559                     135                          43

          Total                                                           1,559                     135                          43




                   DISPUTE SETTLEMENT ALTERNATIVE                         AGENCY NAME                             TOTAL

          Dispute settlement in Court                               -                                                   -

          Dispute settlement via LAPS                               LAPS SJK                                        2




                                DISPUTE SETTLEMENT ALTERNATIVE                                                    TOTAL

          Convenant/agreement/contract revision/termiantion                                                                  2

          Customer negligence                                                                                               11

          Product characteristic understanding by customers                                                         892

          Others (SAMSAT, Motorcycle Dealer, Others)                                                                832

          Total                                                                                                    1,737




434
Page 435
PT BUSSAN AUTO FINANCE




                                                                                                                              HIGHLIGHTS
                                                                                                                              PERFORMANCE
                          REPORT NEGATIVE PUBLICATION                                               TOTAL

 Customer complaint on mass media                                                                      -

   a. Printed                                                                                          -

   b. Electronic                                                                                       -




                                                                                                                              REPORT
                                                                                                                              MANAGEMENT
 Media article                                                                                         2

   a. Printed                                                                                          -

   b. Electronic                                                                                       2

 Media coverage                                                                                        -

   a. Printed                                                                                          -

   b. Electronic                                                                                       -




                                                                                                                              PROFILE
                                                                                                                              CORPORATE
 Publication/article in public space                                                                   -

 Social media, electronic mail                                                                         2

 Others                                                                                                -

 Total                                                                                                 4




                                                                                                                              DISCUSSION & ANALYSIS
                                                                                                                              MANAGEMENT
                                                             The information that can be obtained through the
     Company Product and Service                             Company’s website includes the following:
     Information                                             • Consumers can view Company profile information,
                                                                including disclosure of company information and
The Company’s financing products consist of new                 various published reports.
Yamaha motorcycle financing, used motorcycle                 • Consumers can view financing service products and
financing, Sharia BAF Funds, car financing, electronics         explanations for each of the Company’s products.
financing, gadgets and furniture, and agricultural           • Consumers can simulate financing calculations for
machinery financing. In 2023, the Company also                  the Company’s financing products.
distributed BAF AdiDana and BAF PraDana.                     • Consumers can apply for financing online through
                                                                the website.
The Company uses several means of communication in           • Consumers can see ongoing promotions.
marketing information products, including digital media,     • Consumers can view payment methods, payment
print, direct selling and/or cross-selling. In conducting       locations, and customer guides to make bill payments
information on marketing communication materials, the           easier.
Company always pays attention to the advertising code        • Consumers can contact BAF Care services.
of ethics and applicable regulations as a risk mitigation    • Consumers can view the entire Company network,
                                                                                                                              GOVERNANCE
                                                                                                                              CORPORATE




effort.                                                         including the Company’s partners for new Yamaha
                                                                motorcycle financing, used motorcycle financing, BAF
The Company provides written product information that           Dana Syariah, car financing, electronics financing,
can be accessed by the general public through websites,         gadgets and furniture, and agricultural machinery
social media, and BAF Mobile through Android and                financing, BAF AdiDana, BAF PraDana and the
iOS-based applications, with the following details:             Company’s partner network for electronic financing,
                                                                gadgets, and furniture.
Website www.baf.id                                           • Consumers can view exciting articles about financial
The Company’s website provides various information              insights, the latest products, customer insights, and
about the Company, the Company’s products or services,          several other general matters. This development is
as well as other information related to the Company.            still being carried out in 2023 to increase community
In 2023, the Company improves the website (website              inclusion.
revamp) by changing the user interface (UI) and user
                                                                                                                              REPORT
                                                                                                                              SUSTAINABILITY




experience (UX) designs, as well as enriching the features   In 2024, the Company plans to develop a landing page
on the website.                                              on a special website related to information, strategies
                                                             and the Company’s sustainability performance.



2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                              435
Page 436
  SUSTAINABILITY
  REPORT




         Social Media                                                 communication channels on social media, especially for
         Through social media, which is growing rapidly in the        millennials.
         digital era, the Company is here to be closer to consumers
         and the public. The Company already has a Facebook Fan       In 2023, the Company collaborated with several Key
         Page account (@BAF.Indonesia) which is used to provide       Opinion Leaders (KOL)/Influencers/Content Creators for
         all the latest information about the Company, such as        social media such as TikTok, Instagram, and YouTube.
         products, promos, information about the Company,             This is done so that the Company is closer to the audience
         social and environmental responsibility activities, and      and expands brand awareness.
         events. In addition, during 2023, the Company is actively
         optimizing the TikTok and Instagram applications as          The social media owned by the Company are as follows:




         Facebook                      Instagram                      TikTok                        X
         @BAF.Indonesia                @bafindonesia                  @bafindonesia                 @BAF_Indo




         YouTube                       Line                           LinkedIn
         Bussan Auto                   @baf.indonesia                 PT Bussan Auto
         Finance                                                      Finance



         Android and iOS applications – BAF Mobile                    •   The Company’s partners include a network of
         The BAF Mobile application is currently available for            Yamaha motorcycle dealers;
         Androidand iOS-based smartphones.                            •   Partners for installment payments and network
                                                                          offices of the Company;
         •   BAF Mobile (android)                                     •   The Company’s products and services include the
             https://play.google.com/store/apps/details?id=com.           latest promos;
             id.bussanautofinance                                     •   Online application submission;
         •   BAF Mobile (iOS)                                         •   Installment due date notification;
             https://apps.apple.com/id/app/baf-mobile/                •   Financing simulation of the products offered by the
             id1499452126?l=id                                            Company;
                                                                      •   BAF Points, which can be exchanged for shopping
         The Company provides personal services to provide                vouchers or as installment deductions;
         convenience to consumers through the BAF Mobile              •   Reservation and delivery of BPKB; and
         application. This application makes it easier for the        •   Application for additional insurance for new Yamaha
         Company to interact with consumers. BAF Mobile offers            motorcycle financing, used motorcycle financing, and
         exciting features such as:                                       Dana Syariah financing.
         • Information regarding customer financing facilities;




436
Page 437
PT BUSSAN AUTO FINANCE




                                                                                                                               HIGHLIGHTS
                                                                                                                               PERFORMANCE
                                                                                                                               REPORT
                                                                                                                               MANAGEMENT
As a facility/media of communication to the public and       Continuous Innovation in BAF Mobile




                                                                                                                               PROFILE
                                                                                                                               CORPORATE
consumers, BAF Mobile continues to be developed to           BAF Mobile provides easy and comfortable services for
accommodate customer needs in 2023.                          BAF Friends (BAF consumers) in applying for financing
                                                             and other financing services. The Company continues
                                                             to be committed to providing financial solutions for the
     Product Service and Development                         community. Various transformations, business strategies
                                                             and service innovations were launched to support this
The Company carries out product and service                  commitment. One of them is through the features
development activities to continue developing business       presented through the BAF Mobile application which
outside of new Yamaha motorcycle financing in line with      is available on the App Store and Google Play Store.
the Company’s strategy to increase financing assets          BAF Mobile makes it easier for users to access various
through financing portfolio diversification and increasing   BAF services. Starting from financing applications &




                                                                                                                               DISCUSSION & ANALYSIS
                                                                                                                               MANAGEMENT
customer retention. As of December 31, 2023, the             simulations, as well as information on financing tenors,
composition of the Company’s financing receivables was       contract numbers, due dates, online BPKB reservations
still dominated by new Yamaha motorcycle financing.          and collections, to how to pay the Company’s
                                                             installments through various payment channels. Apart
The Company strives to maintain quality by providing         from that, users can also get interesting information
all customers and partners with similar products and         and promotions from the Company, the location of the
services. This is done to provide superior and quality       nearest dealer or Company partner, reference codes
service, including increasing transaction convenience.       to share with other users, and download financing
The market has well received the Company’s various           agreement documents. In one application, users can
financing products.                                          experience the convenience of the Company’s services
                                                             anywhere and anytime.
The products and services developed constantly refer
to the applicable regulations, including POJK No.            Currently at BAF Mobile, to increase satisfaction so that
35/POJK.05/2018 concerning the Implementation                consumers have the choice to continue to get their
of Financing Company Business and POJK No. 10/               vehicle’s BPKB quickly, simple and contactless, since
POJK.05/2019 concerning Business Conduct of Sharia           the end of 2021, the Company has collaborated with
                                                                                                                               GOVERNANCE
                                                                                                                               CORPORATE



Financing Companies and Sharia Business Units of             SAP and SiCepat delivery services as the Company’s
Financing Companies.                                         official partners who will deliver the BPKB to arrive
                                                             at the destination. Consumers only need to make an
Trends in the development of digital needs also continue     application via BAF Mobile. Next, consumers will receive
to grow very rapidly, in line with increasing public         a notification to make payments via a virtual account. If
preferences and expectations for digital technology.         the payment has been made and successfully verified by
The increased digital transactions also occur in the         the Company, the BPKB will be immediately sent to the
accelerated use of electronic money. Along with these        destination address. This certainly makes things easier
developments, the Company continues to encourage             for consumers without needing to visit the network
digital transformation through various products and          office. Apart from the BPKB delivery service via courier
services:                                                    on BAF Mobile, the Company also provides an Online
                                                             BPKB Reservation service which can also be enjoyed via
                                                             BAF Mobile. This service aims to enable consumers to
                                                             choose a suitable time to collect BPKB.
                                                                                                                               REPORT
                                                                                                                               SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                               437
Page 438
  SUSTAINABILITY
  REPORT




         In 2023, the Company continued to develop BAF                The Company also periodically rejuvenates the user
         Mobile, where consumers can exchange vouchers on             interface, including refreshing the appearance of
         BAF mobile using BAF points. BAF Points are reward           the BAF Mobile application and re-grouping menus
         points that can be used to cut installments in the BAF       and features in BAF Mobile. Apart from that, several
         Mobile application. Every user who applies for financing     additional features have been implemented, such as Live
         will get regular BAFPoints. If the application is made via   Chat, Help Center menu, Dana Syariah Digitalization
         digital channels such as BAF Website and BAF Mobile,         (DASYAT), and other feature developments aimed at
         people can again get additional BAF Points. This is one      making consumers comfortable in using BAF Mobile so
         form of providing awareness to the public to utilize the     that they can optimize their access to the Company’s
         Company’s digital services.                                  services digitally.




         Digital products and online payments                         application, which is a service for consumers by utilizing
         In 2023, the Company continued to market the BAF             a credit limit to purchase goods/products in one
         PraDana product, which is a product that was developed       transaction via a digital platform and connecting with
         in 2021 and begun to be marketed in 2022. This product       digital partners. Development of this application is still
         is presented fully digitally, where the process from         ongoing and is expected to be introduced in 2024.
         application to disbursement is carried out via BAF
         Mobile.                                                      The company continues to expand its online payment
                                                                      channels with digital platforms such as: virtual bank
         In supporting efforts to expand financing services, in       accounts, payments via mobile and internet banking, as
         2023, the Company also developed a basket financing          well as payments via e-commerce.




438
Page 439
PT BUSSAN AUTO FINANCE




                                                                                                                                    HIGHLIGHTS
                                                                                                                                    PERFORMANCE
                                                                                                                                    REPORT
                                                                                                                                    MANAGEMENT
                                                                                                                                    PROFILE
                                                                                                                                    CORPORATE
                                                                of using it for consumptive purposes with the guarantee
     Innovation and development of                              of a Certificate of Ownership or a Certificate of Building
     Sustainable Financial Products and/or                      Use Rights. The amount of the loan starts from Rp50
     Services                                                   million, with a loan tenor of 1 to 5 years. In accordance
                                                                with POJK No.35/POJK.05/2018, this financing has a
Productive Financing Products and MSMEs                         maximum financing value of Rp500 million. AdiDana’s
In 2023, products aimed at MSMEs continued to                   BAF products are not only aimed at loyal debtors




                                                                                                                                    DISCUSSION & ANALYSIS
                                                                                                                                    MANAGEMENT
be developed. In addition to the financing products             of the Company with a repeat order (RO) scheme
owned by the Company, the Company also launched                 through functions, however, they are also aimed at
two productive financing products that can be used by           new debtors with agent and employee referral schemes.
MSMEs practitioners, namely BAF PraDana and BAF                 AdiDana’s BAF products are also a complement to the
AdiDana. With the presence of these two products, it            Company’s existing products and one of the Company’s
further complements the range of service product choices        commitments to provide more choices to debtors that
provided by the Company to consumers.                           are tailored to the needs of debtors.

BAF PraDana is a productive financing product aimed at          The two new products are a form of the Company’s
the market segment with a focus on business capital with        commitment to widening the range of products
an affordable financing value and a shorter tenor. The          consumers can choose from, as well as reinforcing the
product is a microfinance product for the productive needs      Company’s commitment to helping accelerate the
of society using sharia principles based on a Mudharabah        economic recovery of the entrepreneurial community in
contract. This product is designed as a product that            Indonesia during the COVID -19 pandemic, as well as a
utilizes digital facilities so that it can be widely accessed   form of support for Micro, Small and Medium Enterprises
by potential customers and provides convenience, speed,         (MSMEs) in increasing contribution to the economy.
security and convenience starting from the submission           This is in line with the target of the Sustainable
                                                                                                                                    GOVERNANCE
                                                                                                                                    CORPORATE




process, disbursement to payment/payment. This is a             Development Goals (SDGs), where MSMEs have become
concrete manifestation of the Company’s participation           the forefront in achieving the economic pillars of the
in the development of MSMEs in Indonesia to upgrade,            world development agenda in 2030.
as well as to support the realization of financial inclusion
more broadly for the people of Indonesia, especially            Electric Car Financing
for MSMEs players. The ceiling offered starts from 1-5          In 2023, the Company’s car financing business line
million with a tenor of 1-6 months.                             continued to offer Special Electric Vehicles (EV) and semi-
                                                                EV/Hybrid to consumers. This is stated in the Approval
BAF AdiDana is a financing product for business capital         Special Credit Condition No. 006/HQ/MKC-PRODUCT/
facilities with aim of business or productive purposes, and     III/2021 dated March 3, 2021 with the last extension
can also be in the form of a fund facility with the aim         through Approval Special Credit Condition No. 003/HQ/
                                                                MKC-PRODUCT/I/2023 dated January 02, 2023.
                                                                                                                                    REPORT
                                                                                                                                    SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                    439
Page 440
  SUSTAINABILITY
  REPORT




                                                                       This product is an effort to increase the Company’s
         This offer applies to all dealers and applies nationwide.     contribution to productive financing provided to
         This Special Electric Vehicle (EV) and semi-EV/Hybrid         business actors/MSMEs.
         financing is one of the Company’s first steps in initiating
         sustainable products as well as a form of government          Throughout 2023, BAF PraDana in particular, the
         program support that continues to strive to accelerate        Company continued its Special Product Offering to
         the establishment of an electric vehicle ecosystem in         Repeat Order (RO) consumers who have a good payment
         Indonesia.                                                    history. Various promotions are also carried out through
                                                                       the Company’s social media and partner social media
         IT Digitalization and Utilization                             that have the same target market. To expand market
         In general, in facing the intense competition in the          reach, digital media and social media are utilized to
         financial services industry, the Company believes that        communicate regarding products and brands. A referral
         one of the efforts to achieve sustainability goals is         program is also carried out. The referral program is
         through service improvement and digitalization efforts.       implemented by utilizing BAF Mobile to maximize
         Therefore, the Company also continues to innovate             the use of BAF Points by consumers. In addition,
         in providing reliable technology-based services. The          the Company also provides education in the form of
         company hopes that digital based services can further         accompanying articles which are delivered to BAF
         expand its reach to the community so that the principles      PraDana consumers and the community as a form
         of financial inclusion can also be applied.                   of support for the Financial Services Authority (OJK)
                                                                       financial literacy program. Through this education, it is
         Digitalization in this business process is one of the         hoped that consumers will get additional inspiration
         supports made by the Company in the context                   regarding developing their business through productive
         of implementing sustainable finance. Changes in               financing.
         behavior patterns amidst the pandemic, where most
         activities have shifted to be carried out through digital     In the BAF AdiDana product line, the Company is also
         platforms, both in various services to consumers,             starting to expand orders through employee referrals.
         as well as operational activities that can be carried         Efforts to improve employee referral performance include
         out by employees, indirectly have the potential to            providing intensive outreach to all Company employees
         accommodate emissions reduction efforts.                      in the Jabodetabek area by offering attractive incentive
                                                                       programs.
         In 2023, the focus of information technology is to
         continue developing existing business support systems/        From the marketing aspect, the Company continues to
         applications to support digitalization in increasing          actively promote through communication media owned
         the effectiveness and productivity of the Company’s           by the Company such as social media (WhatsApp,
         operations. Apart from enhancing BAF Mobile, the              Facebook, Instagram, TikTok) and other social media
         Company is also developing a basketball financing             to the public, as well as network offices/service offices
         application. The Company is also developing a system          owned by the Company and also through social media
         to support Human Resource Management needs,                   owned by the Company
         further reducing administrative/manual and integrated
         work. This employee system combines several systems           To support the enforcement of good governance for
         that are still separate into one integrated and up-to-        financing companies, the Risk Management Work
         date system. Apart from that, the development of other        Unit (SKMR) and Compliance Work Unit (SKK) in the
         business support systems was also carried out, including      Company’s Risk Management & Compliance Division
         simplifying the processes in the existing system.             also carry out risk studies on new product development
                                                                       initiatives proposed by the Risk Taking Function (RTF) ,
         The Company’s other digitalization initiatives and            including a risk assessment of the proposed strategy
         efforts can be seen in the discussion of Information          and initiatives to develop or expand technology-based
         Technology in the Analysis and Management Discussion          financing products that have been determined by the
         Chapter in this Report.                                       Company on an ongoing basis, in line with the Company’s
                                                                       strategy to implement technology-based products and
                                                                       digitalization. This study was carried out by considering
              Number and Percentage of Sustainable                     the potential risks that may arise based on 8 (eight) types
              Financial Products and Services That                     of risks along with the mitigation that must be carried
              Have Been Evaluated for Consumers’                       out as well as implementing a risk management process
              Security                                                 for possible Money Laundering Crimes (TPPU), Terrorism
                                                                       Funding Crimes, and/or Weapons Proliferation Funding
         Basically, all products and services (100%) provided          Crimes Mass Destruction (PPSPM) which is related to the
         to consumers have gone through an in-depth analysis,          development of new products and business practices,
         testing and evaluation process before being launched.         including new distribution mechanisms, and the use of
         In 2023, in addition to products that have long existed,      new technology or technological development for new
         two products launched in 2022, namely BAF AdiDana             or existing products.
         and BAF PraDana, continued to be marketed in 2023.




440
Page 441
PT BUSSAN AUTO FINANCE




                                                                                                                                HIGHLIGHTS
                                                                                                                                PERFORMANCE
In line with data security and the code of ethics for        b. Testing can be carried out, among other things,
marketing financial products, the Company strives               through surveys, marketing research and/or limited
to ensure that all products offered to consumers                trials of the product and/or service in question;
have passed eligibility procedures in accordance with        c. Testing can be carried out, among other things,
applicable laws and regulations as well as internal             through surveys, marketing research and/or limited
policies. The Company has also submitted a Summary              trials of the product and/or service in question.
of Information on the Company’s Products and Services           Aspects assessed in testing include:




                                                                                                                                REPORT
                                                                                                                                MANAGEMENT
including information on the benefits, costs and risks of       • The purpose of the product and/or service;
each product which is conveyed through various official         • Transparency of product and/or service
Company communication media such as but not limited                  information;
to the website and other communication media, written           • Suitability of marketing products and/or services
documents, or through customer interactions with                     with the needs and capabilities of target
frontline officers in the Company’s services or with the             consumers; And
Company’s sales team. In November 2023, the Company             • Compliance with the preparation of standard
has also gradually implemented the use of the Financing              agreements with statutory provisions.
Application and Important Information Form (FAPIP) for
Consumers and adjusted the Financing Agreement for           Going forward, the Company continues to be committed
consumers in accordance with OJK’s directions.               to always paying attention to aspects of customer
                                                             safety and comfort. Products and services will always be




                                                                                                                                PROFILE
                                                                                                                                CORPORATE
In developing communication materials and marketing          developed with the support of information technology
regulations, the Company strives to pay attention to         systems by considering reliability and security.
applicable codes of ethics and regulations as an effort to   The Company also has policies related to customer
mitigate risks, including by paying attention to POJK No.    complaint services as stated in Approval Memo No. 0152/
6/POJK.07/2022 concerning Customer and Community             AM-OPD/11/2021 Concerning Guideline of Operation
Protection in the Financial Services Sector and SEOJK        Division For Customer Care. The Company opens
No. 12/SEOJK.07/2014 concerning Submission of                various channels to receive customer complaints in
Information in the context of Marketing Financial            order to improve the Company’s products and services.
Products and/or Services, Indonesian Advertising Ethics,     Settlement of customer complaints is determined in
and Financial Services Advertising Guidelines issued by      accordance with POJK No. 18/POJK.07/2018 Concerning
the OJK.                                                     Customer Complaint Services in the Financial Services




                                                                                                                                DISCUSSION & ANALYSIS
                                                                                                                                MANAGEMENT
                                                             Sector.
To ensure that all information conveyed to consumers
is guaranteed to be reliable, the Company always
ensures product readiness, and all information has                Positive Impacts and Negative Impacts
passed through work units that have relevant authority            Arising from Sustainable Financial
and responsibility, before the information reaches                Products and/or Services and Distribution
consumers. The company also involves various divisions            Processes, as well as Mitigation Taken to
to conduct product reviews and assessments before                 Overcome Negative Impacts
they are officially marketed to the public. Business
work units (line of business), work units responsible for    In general, the positive impact of products and/or
marketing communications, marketing and sales, work          services that are in accordance with sustainable finance
units responsible for risk management and compliance,        is that it can increase awareness to participate in
as well as other related units, to ensure readiness and      driving the national economy that promotes harmony
compliance from the regulatory side and from the             between economic, social, and environmental aspects
management side risks, including mitigation readiness        (profit, people, and planet) and is in line with the goals
that may arise from the product.                             sustainable development (SDGs). However, the Company
                                                             views that negative impacts may arise from consumers
                                                                                                                                GOVERNANCE
                                                                                                                                CORPORATE




Testing of new products and/or services aims to assess       who have not been able to adjust to the provisions of
more comprehensive risks when new products and/              sustainable finance, so they can be confused and even
or services are implemented in broader stages up to          switch to other companies. To mitigate this negative
the level of providing services to consumers. Regarding      impact, efforts to socialize the importance of sustainable
product and/or service testing, the Company has              finance for all stakeholders are needed so that the supply
a policy stated in Approval Memo No. 0018/AM-                and demand side of sustainable financial products and/
RMC/11/2022 regarding Standard Policy of Customer            or services can be properly maintained.
and Community Protection in Companies based on
POJK No.6/POJK.07/2022, as follows:                          The Company’s digitalization efforts have provided
a. Product testing is carried out on products and/or         benefits in supporting the Company’s operational
    services offered by the Company for the first time,      activities. Benefits are also felt by consumers. With the
    and is a development of existing products and/           existence of BAF Mobile, for example, consumers can
    or services which results in material changes to the     obtain services and information that are faster, more
    products and/or services, including sales of products    accurate and easily accessible anytime and anywhere.
                                                                                                                                REPORT
                                                                                                                                SUSTAINABILITY




    and/or services to targets new consumers.                This of course can reduce the impact of customer




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                441
Page 442
  SUSTAINABILITY
  REPORT




         activities that previously had to obtain information or     survey of consumers who carry out transactions in the
         make transactions at the Company’s service office to be     entire Company’s network offices regarding the services
         able to make payment transactions without having to         provided by the Company. A total of 19,186 consumers
         visit the service office or only via BAF Mobile.            participated in the survey with details of 9,154
                                                                     respondents in the first semester of 2023, and 10,032 in
         The implementation of sustainable finance is                the second half of 2023.
         inseparable from risks that can have a negative
         impact on the overall performance of the Company,           The level of satisfaction with the overall quality of the
         if not observed. One of them is that financing credit       Company’s services in the first semester of 2023 was
         has the risk of causing an increase in Non-Performing       90.2% of consumers who were satisfied. This satisfaction
         Financing (NPF) if the target customer for financing is     level has improved, when compared to the same semester
         not appropriate. Therefore, the Company seeks to ensure     in 2022, which was 88.5%.
         careful assessment, audit, and calculation, as well as
         making financing procedures a reference for applying        If we look at several survey question indicators, the
         a complete risk management process to each of the           highest average satisfaction result of 90.8% is the ease
         Company’s financing products.                               of making financing installment payments. The survey
                                                                     results indicate that the Company’s service satisfaction
         After the product is delivered to consumers, the            to consumers is quite good. This is expected to continue
         Company continues to carry out a post implementation        to maintain and improve the quality of service to
         review (PIR) as a form of managing the risk of issuing      consumers.
         new products and activities accordingly. This procedure
         is carried out to ensure that the implementation of         The results of the level of satisfaction with the overall
         the financing is in accordance with what is specified       quality of the Company’s services in the second semester
         in the approved SOP. Therefore, the related work units      of 2023 were 90.8% of consumers were satisfied. This
         regularly carry out periodic evaluations and ensure that    satisfaction level has improved, when compared to the
         all new products and activities have been reviewed and      same semester in 2022, which was 88.6%, or relatively
         evaluated for customer safety.                              stable compared to the first half of 2023.
         The Company provides clear information to prospective       If we look at several survey question indicators, the
         customers before finally deciding to use the Company’s      highest average satisfaction result was 91.2% for the
         financing services. Filling in the Financing Application    speed of officers at the Network Office in providing
         Form is carried out by the prospective customer together    services, while the lowest average satisfaction result was
         with the information provided by the Company’s              90.1% for the ease of the financing application process.
         officers.                                                   Therefore, the Company continues to strive to improve
                                                                     and provide understanding to consumers regarding the
                                                                     financing application process which can be done using
              Number of Continuing Financial                         various methods. This information can also be found on
              Products Withdrawn and Reasons                         the website and BAF Mobile.
         Throughout 2023, there were no Company products or          Apart from that, the results of this survey have also shown
         services that were recalled and/or stopped marketing.       that the Company’s service satisfaction to consumers is
         Apart from actively offering existing financing products,   quite good, especially in terms of ease of payment of
         the Company also focuses on developing BAF PraDana          financing installments for consumers through online
         and BAF AdiDana as productive financing products.           payments in line with the Company’s increasing efforts
                                                                     in increasing the use of digital platforms and channels,
                                                                     so that it is hoped that it can continue to maintain and
              Customer Satisfaction Survey [GRI 2-25]                improve service quality. to consumers.

         The Company continues to strive to improve and
         enhance the customer experience. This is done through
         customer satisfaction surveys conducted annually.
         In 2023, the Company has conducted a satisfaction




442
Page 443
PT BUSSAN AUTO FINANCE




                                                                                                                                    HIGHLIGHTS
                                                                                                                                    PERFORMANCE
CUSTOMER SATISFACTION LEVEL                                     CUSTOMER SATISFACTION LEVEL
SEMESTER I                                                      SEMESTER II

2023          90.2%                                             2023         90.8%

2022          88.5%                                             2022         88.5%




                                                                                                                                    REPORT
                                                                                                                                    MANAGEMENT
2021          86.9%                                             2021         88.5%




                                                                7. Approval Memo No. 0013/AM-RMC/07/2023
     Protection of Customer Data Security                          perihal Approval for implementation of Financing
     and Privacy [GRI 418-1]                                       Application Form & Important Information based on
                                                                   OJK Thematic Surveillance.
The Company always concerns customer privacy and
protection of customer data. The implementation of              Customer data protection arrangements as stated




                                                                                                                                    PROFILE
                                                                                                                                    CORPORATE
privacy protection and customer data security refers to         in Approval Memo No. 0018/AM-RMC/11/2022
Law no. 27 of 2022 concerning Protection of Personal            concerning Approval for Standard Policy of Customer
Data, Financial Services Authority Regulation no. 6/            and Community Protection in Companies based on POJK
POJK.07/2022 concerning Customer and Public Protection          No.6/POJK.07/2022, which is as follows:
in the Financial Services Sector. During 2023, there was        a. Customer data is prohibited from being displayed,
no complaints and violations related to customer security          announced, transferred, disseminated and/or
and privacy, business competition, and data loss due to            disclosed to third parties without the consent of the
data theft (cybercrime).                                           prospective customer/customer/owner of personal
                                                                   data;
As a form of commitment to maintaining and                      b. Customer Data must be placed in an electronic
protecting privacy and data security, the Company                  system at a data center and/or disaster recovery




                                                                                                                                    DISCUSSION & ANALYSIS
                                                                                                                                    MANAGEMENT
has various internal policies that regulate the security           center in Indonesia;
of employee personal data and customer personal                 c. Must obtain consent from prospective consumers/
data both in terms of applications, databases and                  consumers/owners of personal data for every legal
infrastructure which can only be accessed by authorized            action;
parties in accordance with the Company’s internal               d. Must explain in writing and/or orally the purpose
policies. . Policies related to customer privacy are outlined      and consequences of the Customer’s agreement
in the Company’s internal policies as an effort to provide         regarding the provision of Customer data and/or
protection to the Company’s consumers in accordance                personal information;
with applicable rules and regulations. The following            e. In the event that the Company obtains personal
are several internal procedures or policies that regulate          data and/or information of a person and/or group of
Customer Data Security and Privacy Protection, including:          people from another party and the Company will use
1. General Policy No. 0031/AM-CP/08/2021 Chapter III               the data and/or information to carry out its activities;
    Policy of Company Important Information;
2. IT Standard Policy No. 0075/AM-ITO/11/2021                   In 2023, the Company was strengthen cyber security and
    Chapter III IT Security Policy;                             improve governance and information technology security
3. IT SOP No. 0003/AM-ITSG/03/2022 Chapter X IT                 standards. The Company has obtained the ISO 27001
                                                                                                                                    GOVERNANCE
                                                                                                                                    CORPORATE




    Security Management;                                        certificate regarding Information Security Management
4. Approval Memo No. 0163/AM-OPD/09/2022 perihal                System in June 2023, which is a set of standards and
    Standard Policy Operation Division;                         procedures related to information security and control
5. Compliance Standard Policy No. 0004/AM-                      that enable businesses to implement appropriate security.
    RMC/04/2023 - J. Classification of Personal Data/           The Company also has a Data Protection Officer (DPO) as
    Information Management;                                     mandated by the Law on Personal Data Protection. This
6. Approval Memo No. 0018/AM-RMC/11/2022                        DPO will carry out the function of protecting personal
    perihal Standard Policy of Customer and                     data. In 2023, the Company was also strive to ensure
    Community Protection in Company based on POJK               compliance with Financial Services Authority Regulation
    No.6POJK.07/2022;                                           (POJK) Number 6/POJK.07/2022 concerning Customer
                                                                and Public Protection in the Financial Services Sector.
                                                                                                                                    REPORT
                                                                                                                                    SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                    443
Page 444
  SUSTAINABILITY
  REPORT




         Annualy, the Company also periodically updates               secret, secret information, internal use and critical
         company data and information for all work units for          information.
         data and information categorized as confidential, top




                                                                      of external and internal cyber-attacks. The Company has
               Special Work and Awareness Unit                        also established a Customer and Community Protection
                                                                      Function which consists of the Compliance Work Unit,
         The Company already has a work unit, namely the              Corporate Planning & Secretary, Operation Support, and
         IT Security Risk Governance Department, which is             Corporate Communication & Branding functions.
         responsible for governance and protection of data security
         and customer privacy. Apart from that, the Company also      The Company continues to strive to educate employees
         has IT Security Operations, IT Data Management and           to always maintain data security. The following are
         IT Infrastructure which collaboratively work together to     several initiatives carried out to provide awareness of
         monitor the security of data, systems and infrastructure     data security.
         in the Company, including carrying out early detection



          NO                             TOPIC                             DATE              MEDIA           PARTICIPANT

          1        [IT Security News]                                 12 January         Email               All Employees
                   Beware of Spam Emails                              2023

          2        [IT Security News]                                 26 January         Email               All Employees
                   Cyber Security Tips                                2023

          3        [IT Policy]                                        10 March 2023      Email               All Employees
                   Password Sharing is Prohibited

          4        [IT Security News]                                 23 March 2023      Email               All Employees
                   Cyber Security Tips

          5        [IT Security News]                                 30 March 2023      Email               All Employees
                   Cyber Security Tips




444
Page 445
PT BUSSAN AUTO FINANCE




                                                                                                   HIGHLIGHTS
                                                                                                   PERFORMANCE
 NO                            TOPIC              DATE            MEDIA      PARTICIPANT

 6       The Danger of                       02 April 2023    Lock Screen/   All Employees
         Phishing Emails                                      Wallpaper
                                                              Laptop/PC

 7       [IT Policy]                         05 April 2023    Email          All Employees




                                                                                                   REPORT
                                                                                                   MANAGEMENT
         Software Policy

 8       [IT Policy]                         14 April 2023    Email          All Employees
         Password Sharing is Prohibited

 9       [IT Security News]                  27 April 2023    Email          All Employees
         Cyber Security Tips

 10      [IT Policy]                         03 May 2023      Email          All Employees
         Software Policy

 11      [IT Security News]                  25 May 2023      Email          All Employees




                                                                                                   PROFILE
                                                                                                   CORPORATE
         Cyber Security Tips

 12      [IT Security News]                  30 May 2023      Email          All Employees
         Beware of Spam Emails

 13      [IT Security News]                  02 June 2023     Email          All Employees
         Beware of Spam Emails

 14      [IT Security News]                  05 June 2023     Email          All Employees
         Beware of Spam Emails




                                                                                                   DISCUSSION & ANALYSIS
                                                                                                   MANAGEMENT
 15      [IT Policy]                         07 June 2023     Email          All Employees
         Software Policy

 16      [IT Security News]                  08 June 2023     Email          All Employees
         Beware of Spam Emails

 17      The Danger of Malware Viruses       12 June 2023     Lock Screen/   All Employees
         (Use the Internet Wisely)                            Wallpaper
                                                              Laptop/PC

 18      [IT Policy]                         16 June 2023     Email          All Employees
         Password Sharing is Prohibited

 19      [IT Policy]                         06 July 2023     Email          All Employees
         Software Policy

 20
                                                                                                   GOVERNANCE
                                                                                                   CORPORATE



         [IT Security News]                  13 July 2023     Email          All Employees
         Beware of Spam Emails

 21      [IT Security News]                  27 July 2023     Email          All Employees
         Cyber Security Tips

 22,     [IT Policy]                         02 August 2023   Email          All Employees
         Software Policy

 23      Password Sharing is Prohibited      03 August 2023   Lock Screen/   All Employees
                                                              Wallpaper
                                                              Laptop/PC

 24      [IT Security News]                  10 August 2023   Email          All Employees
                                                                                                   REPORT
                                                                                                   SUSTAINABILITY




         Beware of Spam Emails




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                   445
Page 446
  SUSTAINABILITY
  REPORT




          NO                             TOPIC                  DATE             MEDIA      PARTICIPANT
          25       [IT Security News]                       24 August 2023   Email          All Employees
                   Cyber Security Tips

          26       [IT Security News]                       14 September     Email          All Employees
                   Beware of Spam Emails                    2023

          27       [IT Policy]                              15 September     Email          All Employees
                   Password Sharing is Prohibited           2023

          28       The Danger of Phishing Emails            02 October       Lock Screen/   All Employees
                                                            2023             Wallpaper
                                                                             Laptop/PC

          29       [IT Policy]                              04 October       Email          All Employees
                   Software Policy                          2023

          30       [IT Security News]                       12 October       Email          All Employees
                   Beware of Spam Emails                    2023

          31       [IT Policy]                              13 October       Email          All Employees
                   Password Sharing is Prohibited           2023

          32       [IT Security News] Cyber Security Tips   26 October       Email          All Employees
                                                            2023

          33       [IT Policy] Software Policy              01 November      Email          All Employees
                                                            2023

          34       [IT Security News]                       09 November      Email          All Employees
                   Beware of Spam Emails                    2023

          35       [IT Security News]                       23 November      Email          All Employees
                   Cyber Security Tips                      2023

          36       Password Standard Change                 02 December      Background     All Employees
                                                            2023             Laptop

          37       [IT Policy]                              06 December      Email          All Employees
                   Software Policy                          2023

          38       [IT Security News]                       14 December      Email          All Employees
                   Beware of Spam Emails                    2023

          39       [IT Security News]                       22 December      Email          All Employees
                   Password Security Improvements           2023

          40       [IT Security News]                       26 December      Email          All Employees
                   Password Security Improvements           2023

          41       [IT Security News] Password Security     28 December      Email          All Employees
                   Improvements                             2023

          42       [IT Security News]                       28 December      Email          All Employees
                   Cyber Security Tips                      2023




446
Page 447
PT BUSSAN AUTO FINANCE




                                                                                                                            HIGHLIGHTS
                                                                                                                            PERFORMANCE
                                                                                                                            REPORT
                                                                                                                            MANAGEMENT
                                                                                                                            PROFILE
                                                                                                                            CORPORATE
Annualy, the Company has conducted self-assessment        6. Conduct outreach regarding customer data
of POJK No. 6/POJK.07/2022 Concerning Customer               protection obligations including company data to
and Public Protection in the Financial Services Sector,      existing and new employees (monthly);
especially related to Confidentiality and Security of     7. Conduct socialization on applicable regulations
Customer Data and Information on an annual basis and         including and not limited to Financial Services
has been submitted to the OJK. Throughout 2023, the          Authority Regulations, data protection laws and
Company implemented customer and public protection           derivative regulations;
in running its business, by taking the following steps:   8. Receive and resolve customer and public complaints
1. Implement procedures for requesting consent from          in accordance with POJK No. 18/POJK.07/2018




                                                                                                                            DISCUSSION & ANALYSIS
                                                                                                                            MANAGEMENT
    consumers regarding the processing of personal           concerning Customer Complaint Services in the
    data (acquisition and collection, processing             Financial Services Sector;
    and analysis, storage, correction and updating,       9. Prepare a financing agreement in accordance
    display, announcement, transfer, dissemination           with Law no. 42 of 1999 concerning Fiduciary
    or disclosure, and/or deletion or destruction)           Guarantees, POJK No. 35/POJK.05/2018 concerning
    in accordance with the Law No. 27 of 2022                the Implementation of Financing Company
    concerning Protection of Personal Data and POJK          Business, POJK No. 10/POJK.05/2019 concerning
    no. 6/POJK.07/2022 Concerning Customer and               the Operation of Sharia Financing Companies and
    Community Protection in the Financial Services           Sharia Financing Company Business Units and
    Sector in Financing Agreements, Summary of               other applicable legal regulations and as well as
    Product and Service Information for Consumers and        implementing the results of inspections from the
    other required documents including approval on           OJK Thematic Surveillance.
    digital media determined by the Company as well as
    implementing inspection results from OJK Thematic     The Company has also carried out various initiatives to
    Surveillance;                                         prioritize customer protection principles in its business
2. Use of confidentiality agreements between the          activities. This is realized, among other things, as
                                                                                                                            GOVERNANCE
                                                                                                                            CORPORATE



    Company and collaborating third parties where         follows:
    third parties are prohibited from providing data      1. Installation of announcements at the head
    belonging to the Company, including the Company’s         office and network offices informing potential
    consumers, to other unauthorized parties without          customers and customers to read and understand
    the Company’s consent;                                    the contents of the contracts stipulated in the
3. Develop a customer personal data protection policy         financing agreement;
    in the Standard Policy of Customer and Community      2. Installation of announcements regarding financing
    Protection in Companies based on POJK No.6/               interest rates clearly at each head office, network
    POJK.07/2022 in Approval Memo No. 0018/AM-                office, offices other than network offices, and the
    RMC/11/2022;                                              Company’s website so that the Company can know
4. Develop internal company policies regarding Rules          and understand;
    of Personal Data/Information Management in            3. Review and update customer complaint handling
    accordance with applicable regulations;                   policies in accordance with POJK No. 18/
5. Adjustment of the Company’s advertising standards          POJK.07/2018 concerning Customer Complaint
                                                                                                                            REPORT
                                                                                                                            SUSTAINABILITY




    to the Financial Services Advertising Guidelines          Services in the Financial Services Sector, especially
    from the Financial Services Authority, the third          procedures for handling customer complaints at
    amendment issued in 2020;                                 Company offices and BAF Care services;



2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                            447
Page 448
  SUSTAINABILITY
  REPORT




         4. Use of the Financing Application Form and                   g. AM        0004/AM-RMC/04/2023         Regarding
            Important Information which contains a summary                  Compliance Standard Policy;
            of product and/or service information, benefits, risks      h. Socialization of the definition and process of
            and costs of products and/or services and terms and             Suspicious Financial Transaction Reports;
            conditions including and not limited to requests for        i. Information Technology Risk Management
            processing of personal data in accordance with Law              (Cyber Risk);
            no. 47 of 2022 concerning Protection of Personal            j. Implementation of Control to Maintain
            Data and POJK No.6/POJK.07/2022 concerning                      Company Reputation (Reputation Risk) in terms
            Customer and Public Protection in the Financial                 of Risk Management and Compliance.
            Services Sector. The form is signed by the customer      6. Regular training regarding handling customer
            and has been adapted to the directions of the OJK           complaint services for related Company employees
            Thematic Surveillance;                                      has been carried out every year;
         5. As part of the active supervision of the Board of        7. The Company has provisions for providing
            Directors and Board of Commissioners regarding              information on the amount of obligations that have
            the implementation of a culture of compliance,              been paid and remaining obligations that have not
            throughout 2023, the Compliance Work Unit (SKK)             been paid or settled by consumers based on the
            together with the Risk Management Work Unit                 customer’s request as regulated in the Financing
            (SKMR) carried out regular outreach to related              Agreement;
            functions, including:                                    8. The Company’s information technology system
            a. Implementation of Anti-Money Laundering,                 specifically for storing customer personal data has
                Prevention of Terrorism Financing & Prevention          been certified to ISO 27001.
                of Funding for the Proliferation of Weapons of
                Mass Destruction BAF;                                In order to improve the quality of service to consumers,
            b. Get to know what anti-bribery is?;                    the Company continues to improve and innovate
            c. POJK No. 6/POJK.07/2022 concerning Customer           information technology. Apart from increasing
                and Public Protection in the Financial Services      opportunities to support business goals, this is of
                Sector, Risks and Mitigation;                        course also accompanied by potential information
            d. POJK No. 3 of 2023 concerning Increasing              technology risks, including the risk of cyber attacks
                Literacy and Financial Inclusion in the Financial    and the risk of data leaks. The Company realizes that
                Services Sector for Consumers and the                in achieving business objectives, adequate control
                Community;                                           over these risks is required. The controls that are in
            e. POJK Socialization No. 8 of 2023 concerning           place include the information technology work unit,
                Implementation of Anti-Money Laundering              especially the operational security section, which is
                Programs, Prevention of Terrorism Financing &        tasked with ensuring the security and confidentiality of
                Prevention of Funding for the Proliferation of       infrastructure, data and customer information managed
                Weapons of Mass Destruction in the Financial         by the information technology work unit from various
                Services Sector;                                     cyber threats and attacks.
            f. Law no. 27 of 2022 concerning Personal Data
                Protection;




448
Page 449
PT BUSSAN AUTO FINANCE




                                                                                                               HIGHLIGHTS
                                                                                                               PERFORMANCE
            IMPROVING
            ENVIRONMENTAL
            PERFORMANCE THROUGH




                                                                                                               REPORT
                                                                                                               MANAGEMENT
            GREEN OPERATIONS




                                                                                                               PROFILE
                                                                                                               CORPORATE
                                                                                                               DISCUSSION & ANALYSIS
                                                                                                               MANAGEMENT
                                                                                                               GOVERNANCE
                                                                                                               CORPORATE




                                             Even though the Company’s activities are not directly
                                             related to natural resources and biodiversity, it is
                                             important for the Company to consider environmental
THE COMPANY STRIVES TO USE                   aspects. The Company strives to use resources efficiently
RESOURCES EFFICIENTLY AND                    and supports environmental programs, as well as
                                             developing internal sustainability programs that are in
SUPPORTS ENVIRONMENTAL                       line with sustainability policies and culture.
FRIENDLY PROGRAMS.
                                             The environmental management in the Company’s work
                                             area includes the following:
                                                                                                               REPORT
                                                                                                               SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                               449
Page 450
  SUSTAINABILITY
  REPORT




              Green House Gas Emission                                      Energy Usage
              [GRI 305-1, 305-2, 305-3, 305-4, 305-5]
                                                                       The Company’s operational activities require the use
         Climate change issue has become more crucial to be            of energy, especially electrical energy used for office
         addressed. For this reason, the Company strives to            activities and fuel for operational vehicles. Various
         support a sustainable future by reducing GHG emissions        operational activities that use electricity such as
         in business activities. In the coming years, the Company      lighting, moving office facilities and infrastructure such
         will explore long-term targets and strategies to realize      as lifts, air conditioning, photocopiers, and so on. Even
         more concrete support.                                        though the Company’s operational activities do not use
                                                                       excessive energy compared to other business sectors,
         In 2023, the Company has not calculated the amount            the Company still views it is important and makes this
         of GHG emissions for scope 1, scope 2 and scope 3 or          topic one of the company’s efforts.
         other gas equivalents. The company will gradually carry
         out assessments and calculations of GHG emissions in          In particular, the Company’s head office also operates
         the future.                                                   a diesel generator to support the implementation of
                                                                       (near) zero downtime in providing technology-based
         The scope 1 GHG emissions are GHG emissions                   information in the event of a power outage. Since 2022,
         originating from the use of fuel for transportation and       the Company’s network offices have implemented
         the use of fuel for generators. scope 2 GHG emissions are     efficiency in the form of changing generator capacity
         indirect emissions from the use of electrical energy from     from 20,000 kWh to 6,000 kWh and 7,000 kWh which
         Perusahaan Listrik Negara (PLN). Furthermore, for scope       can be used when the electricity was shutdown. This
         3 GHG emissions, from sources belonging to external           effort will continue gradually in other network offices.
         parties that are still in the supply chain of the Company’s
         business, namely air service travel and purchases of
         goods, such as paper and freon, as well as fuel and energy         Energy Efficiency
         related activities (not covered by scope 1 or scope 2),
         and investment, including financing carried out by the        We realize that the use of energy to support business
         Company.                                                      activities has an impact on the environment through the
                                                                       resulting GHG emissions. Therefore, we strive to reduce
         In addition, the Company will also gradually calculate        operational impacts and costs by increasing energy
         emissions from emission reduction activities originating      efficiency. Energy management and energy efficiency,
         from tree planting activities that have been carried out      one of which is electricity, is important for the Company
         over the last 3 years under the BAF ECO Move program.         because the Company’s business activities rely heavily
                                                                       on the use of electronic devices to support services for
         In line with the Company’s GHG value not yet being            consumers as well as building needs in carrying out
         disclosed, the GHG emission intensity which shows the         operational activities. Optimal energy management
         amount of GHG emissions per unit of activity, output          can also reduce potential GHG emissions.
         or other specific metrics cannot also be disclosed in
         this sustainability report. Energy consumption intensity      Realizing that employee participation and support
         which is calculated using the total GHG emissions             are important factors, the Company has an energy
         produced (scope 1 + scope 2) by the Company, divided          management efficiency program which is one of the
         by the number of Company employees translated into            strategies in an effort to reduce energy use. The energy
         tons of CO2/number of employees will be disclosed             management program is focused at the Company’s head
         further along with the disclosure of the GHG value            office, including efficient use of electrical equipment,
         produced.                                                     air conditioning and elevators. Therefore, the Company
                                                                       actively promotes “saving electricity” to all employees
         The Company’s efforts to reduce GHG emissions include         both at the head office and at network offices.
         installing solar panels at the head office. Installation of
         solar panels can have an impact on PLN’s electricity use.     The Company’s ongoing energy use efficiency is as
         The impact of the reduction will be revealed in the next      follows: [GRI 302-4]
         period’s sustainability report.




450
Page 451
PT BUSSAN AUTO FINANCE




                                                                                                                                   HIGHLIGHTS
                                                                                                                                   PERFORMANCE
 1      Energy-saving Light-Emitting Diode                                 2       The lighting arrangements
        (LED) lamps usage                                                          The lighting arrangements in the




                                                                                                                                   REPORT
                                                                                                                                   MANAGEMENT
        Saving electricity usage is implemented by using                           head office have been divided into
        energy-saving LED lights in the head office and                            zones or divisions, making it easier
        replacing them with LED lights if something is                             to black out rooms that are not used.
        damaged or when moving to a network office.
        The percentage of LED lamp usage is as follows:




Head office                     Network office                                     Use of motion sensor lights and
                                                                           3

95%                             70%
                                                                                   timers




                                                                                                                                   PROFILE
                                                                                                                                   CORPORATE
                                                                                   The use of lights with motion sensors
                                                                                   has been used in special areas at
out of total lamps used         out of total lamps used                            the Company’s head office, so that
                                                                                   the lights will turn off automatically
                                                                                   if there is no activity. The Company
                                                                                   has also implemented a program
                                                                                   to turn off the lights during breaks
                                                                                   during the day as a form of support
                                                                                   in saving energy. The total number
                                                                                   of motion sensor lights used in the
                                                                                   head office is 100 units spread over
                                                                                   8 floors.




                                                                                                                                   DISCUSSION & ANALYSIS
                                                                                                                                   MANAGEMENT
 4      Air conditioning settings
        At the head office, the Company limits the use
        of Air Conditioner (AC) no later than 17:30 West
        Indonesian Time (WIB) because the number of
        employees working after that time is smaller.
                                                                           5       Setting elevator operating hours
        To ensure clean air in the work environment                                At the head office, there are 3
        while paying attention to environmental                                    elevators. The number of lifts
        and conservation aspects, the Company has                                  operating is reduced after 18:00
        gradually replaced AC units with Plasmacluster                             WIB to 1 lift operating. Monitoring
        Inverter AC types in the customer service lobby                            of this will be carried out by building
        area and in work spaces spread across 53 (fifty                            security officers who will ensure
        three) network offices which can help electricity                          elevator operations are also adjusted
        savings.                                                                   to the capacity of employees who
                                                                                   are still working at that time.
                                                                                                                                   GOVERNANCE
                                                                                                                                   CORPORATE




                          SCHEDULE                                       TOTAL OPERATED ELEVATOR

 Monday - Friday

     06.00 - 18.00 WIB                                      All elevator units are operated (3 units)

     18.00 - 19.00 WIB                                      Only 2 units are operated

     After 19.00 WIB                                        Only 1 unit are operated

 Saturday                                                   Only 2 units are operated
                                                                                                                                   REPORT
                                                                                                                                   SUSTAINABILITY




 Sunday                                                     Lift is not operated




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                   451
Page 452
  SUSTAINABILITY
  REPORT




          6      Laptop Usage                                              7    Green campaign and energy saving work
                 Saving electricity usage is also carried out                   culture
                 by gradually replacing all Desktop Personal                    Program initiation throughout 2023 to support
                 Computers (PCs) with Mini PCs & Thin Clients                   energy efficiency is always sought to be carried
                 and Laptops to save electricity wattage usage.                 out at the head office and all of the Company’s
                 In 2023, purchases of Desktop Personal                         network offices by providing regular awareness
                 Computers (PCs) with Mini PCs & Thin Clients                   by sending flyers and e-mails to all employees.
                 and Laptops will reach 405 units.                              This is done continuously to increase awareness
                                                                                of all company workers to save on operational
                 In addition, the Company has replaced the                      activities such as turning off lights when not in
                 Photocopy & Printer (Multifunction Printer -                   use, especially in meeting rooms. The company
                 MFP) machine unit from the old type to a new                   also always urges employees to turn off office
                 type with a more efficient electricity wattage                 equipment such as lights and computers/
                 usage rate which has been implemented in                       laptops when not in use, including photocopiers.
                 all head offices and network offices. Thus, the                The number of green campaigns issued by the
                 total number of MFP usage has reached 100%                     Company during 2023 is 16.
                 of the Company’s total office network.

                 Information Number of Photocopy & Printer
                 and MFP machines


         Head office                     Network office


         18
         Unit Photocopier, Printer
                                         447
                                         Unit Photocopier, Printer
         and MFP                         and MFP




          8      Green Operation
                 The Company believes that a clean and well-organized work environment will provide comfort in working and
                 can help improve the quality of health. Therefore, various initiatives that will continue in 2023 are as follows:




         Reduce the use of single-use                 Arranging work spaces that pay          Optimizing the use of
         plastic bottles/packaging in the             attention to aspects of comfort         teleconference/video conference
         Company’s Head Office area                   and cleanliness, including              facilities for meetings with
         by implementing a tumbler                    providing green plants in and           participants from distant
         program to reduce the use of                 around the Company’s business           locations, especially in 2023
         bottled mineral water.                       activity locations. In 2023, the        where the Company was still
                                                      Company carried out gradual             implementing the WFH and WFO
                                                      renovations of several floors           or hybrid working pattern.
                                                      in the head office building
                                                      by implementing the open
                                                      workspace concept.




452
Page 453
PT BUSSAN AUTO FINANCE




                                                                                                                               HIGHLIGHTS
                                                                                                                               PERFORMANCE
       Use of Renewable Energy in the form                            Energy Utilization Performance
       of Solar Panels
                                                                Electricity usage at the Company’s head office and
Since 2022, especially at the head office, the Company          network offices in 2023 will not be much different,
has installed and is using solar panels. Installation of        there was an increase from Rp38.4 million/number
a rooftop Solar Power Generation (PLTS) system with             of networks in 2022 to Rp39.9 million/number of




                                                                                                                               REPORT
                                                                                                                               MANAGEMENT
a capacity of 31.86kWp. The PLTS system installation            networks. Meanwhile, electricity consumption also
at the Company’s head office uses solar panels with a           increased from Rp26,593 kWh to Rp27,619 kWh. This
capacity per panel of 540 Wp. Through this installation,        is because WFO activity was more massive in 2023
the Company is estimated to be able to reduce carbon            compared to the previous 2 years.
emissions by 380 tons and the equivalent of planting
11,320 trees over 25 years.                                     The Company has not included energy consumption
                                                                outside the Company in its calculations, because the
The installation of solar panels is a concrete manifestation    disclosure limits only cover the BAF Plaza head office
of the Company’s implementation of sustainable                  and the Company’s network offices. This limitation is
business practices. The push to manage emissions                due to complexity and data sources that are beyond the
through efficient development and the use of renewable          Company’s control.
energy as an alternative energy source is considered




                                                                                                                               PROFILE
                                                                                                                               CORPORATE
to be one of the right ways to achieve the zero carbon
emissions target.




                                                                                                                               DISCUSSION & ANALYSIS
                                                                                                                               MANAGEMENT
Prediction of Reducing                     Electricity Usage Costs                 Consumption of
Carbon Emissions                                                                   electricity usage


380
TO N
                                           39.9
                                           M ILLION / NETWORKS
                                                                                   27,619
                                                                                   KW H / NETWORKS




The Company’s electricity consumption is as follows: [GRI 301-1, 302-2, 302-3]



                      DESCRIPTION                                     2023              2022               2021

 Use of Renewable Energy
                                                                                                                               GOVERNANCE
                                                                                                                               CORPORATE




    Solar Panels - Headquarters (kWh)                                  41,800            10,600                   -

    Solar Panels - Headquarters (Gigajoules)                           150.47             38.15                   -

 Other Energy Usage *

    Electricity usage fee (Rp million)                                    39.9             38.4               36.0

    Electricity consumption (kWh)                                      27,619            26,593             24,909

    Electricity consumption (Gigajoules)                                  99.4             95.7               89.7

    Wide (m2)                                                          24,784            24,784                   -

    Number of employees (including outsourced                           9,157             8,742              8,675
                                                                                                                               REPORT
                                                                                                                               SUSTAINABILITY




    workforce)




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                               453
Page 454
  SUSTAINABILITY
  REPORT




                                     DESCRIPTION                            2023                  2022                 2021

                Electricity usage intensity (kWh/m2)                        1.11438              1.07298                         -

                Electricity usage intensity (GigaJoule/m2)                  0.00401              0.00386                         -

                Electricity usage intensity (kWh /employee)                      3.0                   3.0                  2.9

                Electricity usage intensity (GigaJoule /employee)              0.011                0.011                0.010

         *)     Per number of networks (including head office)




                                                                       of fuel consumption of operational vehicles can be
                  Use of Non-Renewable Energy in the                   controlled.
                  form of Fuel Oil (BBM)
                                                                       Since 2022, at the head office, the Company has procured
         Efforts to save fuel consumption for operational vehicles     1 (one) electric car for the Company’s operations. The
         are carried out by limiting the service life of operational   company has also provided a charging station at the
         vehicles and carrying out periodic maintenance and            head office which can be used to charge electric battery
         repair of operational vehicle equipment to optimize           data.
         efficient engine performance so that fuel consumption
         is more efficient. The company limits the operational age     In 2023, the cost of using fuel in all of the Company’s
         of operational vehicles to car: 3 years & motorcycle: 5       network offices will increase from Rp19.0 million to
         years. Regular maintenance or service is also carried out,    Rp21.8 million. In terms of the number of liters, there
         namely car: every 10.000 km & motorcycle: every 5.000         was also an increase from 1,885 liters to 2,160 liters. This
         km.                                                           increase is due to normal condition post pandemic.

         Apart from that, the Company also requires the use            The fuel consumption for the Company’s operational
         of non-subsidized fuel which is more environmentally          vehicles is as follows [GRI 302-1][GRI 302-2][GRI 302-3]
         friendly. With these steps, the increase in the volume



                                    Fuel Usage Costs                             Fuel Usage Costs



                                    21.8
                                    MIL LION R U PIAH /
                                                                                 2,160
                                                                                 LI TER / NETWORKS
                                    NE T WOR K S



                                     DESCRIPTION                            2023                  2022                 2021

              Use of Non-Renewable Energy*

              Cost of using fuel (Rp million)                                  21.8                  19.0                 15.8

              Fuel consumption (Liter)                                        2,160                1,885                1,865

              Fuel consumption (GigaJoule)                                     73.9                  64.5                 63.8

              Operating Income (Rp billion)                                   4,569                4,337                3,900

              Intensity of fuel use (liters/Rp billion)                         116                  107                  131

              Fuel usage intensity (GigaJoule / Rp. billion)                   3.96                  3.66                 4.50
         *)     Per networks




454
Page 455
PT BUSSAN AUTO FINANCE




                                                                                                                                  HIGHLIGHTS
                                                                                                                                  PERFORMANCE
                                                            activities, such as cleaning, sanitation and ablution
         Water Usage and Stewardship                        activities, while at the network offices it uses groundwater.
                                                            With high awareness of the importance of water for
The Company realizes that water is one of the natural       natural and social ecosystems, as well as the threat of
resources used by the Company in various operational        water scarcity for people in Indonesia. Therefore, the
activities such as toilets, sanitation, canteens, etc. On   Company strives to use clean water efficiently and. We
the other hand, there are environmental risks related to    have made various efforts, including managing building




                                                                                                                                  REPORT
                                                                                                                                  MANAGEMENT
water, such as pollution, scarcity and flooding. Floods     wastewater and reusing rainwater for watering plants,
can affect the Company’s operations and consumers, so       as well as promoting internal communication. [GRI 303-1]
the Company also pays special attention and carries out
initiative efforts in water management. [GRI 3-3]           In 2023, the Company continued to campaign for
                                                            efficient water use among employees. Water efficiency
At the head office The Company uses groundwater             will continue to be implemented, including:
and pays fees to the relevant agencies for operational




                                                                                                                                  PROFILE
                                                                                                                                  CORPORATE
                    Water installation maintenance
                    In order to anticipate leaks, cloudy water, or other overall damage, the Company periodically
                    checks water installations, both at the head office and network offices.




                    Use of water-saving taps
                    The company uses taps with automatic sensors so that it can save on wasted water. This water-
                    saving tap has been implemented on all floors at the Company’s head office totaling 35 units.




                                                                                                                                  DISCUSSION & ANALYSIS
                                                                                                                                  MANAGEMENT
                    Use of eco-washer
                    41 units toilet at the head office use eco washers which have the advantage of being more
                    hygienic because the presence of eco washers can minimize bacteria that stick to the seat. In
                    addition, the eco washer toilet seat is made of skin-friendly material and the toilet seat can be
                    removed so it can be removed easily. Eco washers can also minimize noise when closing the
                    toilet seat.


                    Utilization of wastewater
                    At the head office, the Company has a mechanism where used water and rainwater are treated
                    using a sediment pond system run by the building management. This processed water is reused
                    for watering plants and flushing toilets. Used water has also been distributed through available
                    water disposal, in accordance with the building management wastewater management system.
                                                                                                                                  GOVERNANCE
                                                                                                                                  CORPORATE




                    Water Usage Costs                                             Water Usage



                    1.6
                    M ILLION R U PIAH /
                                                                                 265.6
                                                                                 M 3 / NETWORKS
                    NE T WOR K S
                                                                                                                                  REPORT
                                                                                                                                  SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                  455
Page 456
  SUSTAINABILITY
  REPORT




         Water Use and Intensity [GRI 303-5]
         The Company’s water usage is as follows:



                                   DESCRIPTION*                                                 2023             2022                2021

          Surface Water Use (m3)                                                                201.4            200.5               180.0

          Underground Water Use (m3)                                                             64.2             48.8                 60.0

          Total (m3)                                                                            265.6           349.3                240.0

          Surface Water Usage (Rp million)                                                        1.2              1.2                  1.1

          Underground Water Usage (Rp million)                                                    0.4              0.3                  0.4

          Total (Rp million)                                                                      1.6              1.5                  1.4

          Number of employees (including outsourced                                             9,157            8,742               8,675
          workforce)

          Water Use Intensity (m3 / employee)                                                   0.029            0.029               0.028

         *) Per total network (including head office) includes ground water and surface water




         Although in 2023, compared to 2020, water consumption                        •    No longer using fax, correspondence is done using
         increased slightly as WFO capacity begins to be added,                            electronic mail (email), although some still using
         when compared with 2019 (pre-Covid-19 pandemic level),                            hardcopy;
         water use at the Company’s head office and network                           •    The use of paper for meeting materials is minimized
         offices in 2023 experienced savings in consumption.                               and converted to digital. Since 2020, the Company
         water (surface water and underground water) by 24.2%.                             has no longer prepared materials in hardcopy
                                                                                           form, especially Board of Commissioners meetings
                                                                                           and Board of Directors meetings with the Board
               Paper Usage                                                                 of Commissioners. All meeting materials can be
                                                                                           accessed digitally;
         As a company, the Company requires paper as a means of                       •    Always urge employees to minimize the use of paper
         office administration, such as correspondence, printing                           and encourage the use and use of waste paper that
         administrative documents to support business activities,                          can still be used in the Company’s work environment.
         customer service and so on. However, the Company                                  So, reuse used paper for double-sided photocopying
         strives to ensure that paper is used from responsible and                         for draft letters or internal memos;
         sustainable sources and is environmentally friendly.                         •    Optimization of multi-function printer facilities for
                                                                                           scanning and faxing, thereby reducing document
         In addition, the Company continues to strive to increase                          printing. All photocopy machines and printers
         the efficiency of paper use through the support of                                (Multifunction Printer - MFP) are equipped with PIN
         technology and digitalization systems that the Company                            & Job Storage, so that printing can be done according
         continues to develop. One of them is through a well-                              to user needs and is more controlled. This photocopier
         integrated information system for the Company’s                                   and printer (MFP) can also be used to print two-sided
         internal interests, consumers, supported by applications                          documents (back and forth), so it can minimize the
         that can support operational efficiency as well as                                use of large amounts of paper;
         implementing document digitization which can reduce                          •    Optimizing the use of BAF Mobile for consumers; dan
         paper use through the following efforts: [GRI 3-3, 306-2]                    •    Formless transactions to replace employee salary
         • Archive documentation and submit reports from                                   slips which are currently done digitally.
             hardcopy to softcopy;




456
Page 457
PT BUSSAN AUTO FINANCE




                                                                                                                              HIGHLIGHTS
                                                                                                                              PERFORMANCE
                                                              Digital transactions on BAF Mobile start from financing
     Digital Platforms and Transactions                       applications & simulations, as well as information on
                                                              financing tenors, contract numbers, due dates, online
Electronic (digital) financing transactions can indirectly    BPKB reservations and collections, to how to pay the
reduce the carbon footprint because consumers can             Company’s installments through various payment
make transactions from anywhere without having to             channels. In one application, users can experience the
go to the Company’s network office. At the Company,           convenience of the Company’s services anywhere and




                                                                                                                              REPORT
                                                                                                                              MANAGEMENT
online transactions can be utilized via BAF Mobile,           anytime.
which is a financing application intended for consumers.




   NAME OF SYSTEM/                                                                                    EFFICIENCY
                                                             BENEFIT
     APPLICATION                                                                                      DIMENSION

 External Training Online     Form that can be used by employees to submit requests to               Paper
 Form                         participate in external training.




                                                                                                                              PROFILE
                                                                                                                              CORPORATE
 Job Request Form             Provide convenience for employees in applying for employee user        Process and
 (JRF) IT Online              access for computers, applications, internet, and others.              paper

 HARPA                        Application used to provide convenience in managing personnel,         Human
                              such as profile, attendance, performance, compensation, pay slips,     resources,
                              attendance, and other employee administration.                         process and
                                                                                                     paper

 Digital Receipt              Providing convenience for consumers in accessing receipts              Operating cost,
                              electronically at any time.                                            access and
                                                                                                     paper




                                                                                                                              DISCUSSION & ANALYSIS
                                                                                                                              MANAGEMENT
 Learning Management          Support the training and socialization process for every Human         Human
 System (LMS)                 Resource (HR) effectively and efficiently                              resources and
                                                                                                     process

 Sharepoint                   A system that provides several functions, one of which is an           Operating
                              application consisting of Approval Memo, Design Request, Content       cost, Human
                              Review Form, and other applications that support the Company’s         resources,
                              operations.                                                            process and
                                                                                                     paper

 CONFINS                      Application used to document all business transactions between         Operating cost
                              the Company and consumers.                                             and access

 ORAFIN                       Application used to document the Company’s financial flow, both in     Operating
                              terms of the Company’s financial plans and accounting processes.       cost, Human
                                                                                                     resources and
                                                                                                                              GOVERNANCE
                                                                                                                              CORPORATE



                                                                                                     paper

 BAF Mobile                   Mobile application that can be accessed by consumers and potential     Operating
                              consumers to make it easier to submit financing applications and       cost, Human
                              check order and installment status, as well as other conveniences.     resources,
                                                                                                     process and
                                                                                                     paper

 GS Request Form              Application to make it easier for employees to submit assets, such     Process and
                              as calculators, mice, cameras, and others.                             paper

 GA Integrated Access         Helpdesk system to propose assets or facilities.                       Process and
 (GAIA)                                                                                              paper
                                                                                                                              REPORT
                                                                                                                              SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                              457
Page 458
  SUSTAINABILITY
  REPORT




         Electronic (digital) financing transactions can indirectly   BPKB reservations and collections, to how to pay the
         reduce the carbon footprint because consumers can            Company’s installments through various payment
         make transactions from anywhere without having to go         channels. In one application, users can experience the
         to the Company’s network office. At the Company, online      convenience of the Company’s services anywhere and
         transactions can be utilized via BAF Mobile, which is a      anytime.
         financing application intended for consumers.
                                                                      The company also continues to expand its online
         Digital transactions on BAF Mobile start from financing      payment channels with digital platforms such as: virtual
         applications & simulations, as well as information on        bank accounts, payments via mobile and internet
         financing tenors, contract numbers, due dates, online        banking, as well as payments via e-commerce.




                                                                      Digital Leads
                                                                      via BAF Mobile


                                                                      136,288
                                                                      C REDI T A P P LI C ATI ON I N 2023


                                                                            2022                      2021

                                                                          203,094                    62,843




         Assuming each transaction reduces the distance traveled      Company has contributed to reducing emissions by 45.6
         by one kilometer, the total distance traveled will be        tons of CO2 equivalent with assumption of 1 kilometer
         reduced by 402,225 kilometers in the last three years. By    equivalent to 0.113377 kilogram CO2.[GRI 305-5]
         considering CO2 reduction, it can be assumed that the




               Paper Usage and Intensity



                                  Paper Usage Cost                                            Paper Usage



                                  19.5
                                  MIL LION R U PIAH
                                                                                              465
                                                                                              RI M




                                   DESCRIPTION*                             2023                      2022         2021

          Paper usage (ream)                                                    465                     750           815

          Paper usage (kg)                                                      233                     375           408

          Paper usage (sheet)                                              232,500                   375,000      407.500

          Paper use (Rp million)                                               19.5                     28.7         31.1

          Paper Use Intensity (kg/employees)                                     0.3                        0.5        0.5



         *) Head Office
         **) Calculation based on 1 ream = 0.5 kg




458
Page 459
PT BUSSAN AUTO FINANCE




                                                                                                                                  HIGHLIGHTS
                                                                                                                                  PERFORMANCE
The use of paper in the Company continues to decrease           used oil from operational vehicles and generators, as
in line with digitalization efforts, so that paper use can be   well as domestic wastewater from toilets and canteens.
minimized. In 2023, paper use at the head office can be         Waste management is a form of responsibility that
reduced by 38.0% to only 465 reams from 750 reams in            must be carried out to prevent the impact that waste
2022. [GRI 306-2][ GRI 306-3]                                   has on the environment.

                                                                Continuing to strive to reduce waste production is one




                                                                                                                                  REPORT
                                                                                                                                  MANAGEMENT
     Waste treatment                                            of the Company’s concrete steps in waste management.
                                                                To realize this step, the Company continues to campaign
Waste is leftover material from the production process          for the use of tumblers and provides advice to avoid the
carried out by humans. Waste is divided into two forms,         use of disposable eating/drinking utensils. The company
namely solid and liquid waste which can be classified           also provides adequate trash cans on each office floor
into Hazardous and Toxic Materials (B3) and non-B3. As          to simplify the waste management process. Waste
a finance company, the Company does not use many                sorting at the Company’s head office on each floor
types of materials in its operational activities. The           is grouped based on paper, plastic and organic. The
Company’s business activities or employees also do not          Company always urges employees to ensure that the
produce waste in the form of B3 or produce significant          type of waste that will be disposed of is appropriate,
spills. Most of the waste produced is paper. However, the       namely plastic waste, paper waste and organic waste.
Company provides paper shredding machines spread                The Company continues to strive to instill sustainability




                                                                                                                                  PROFILE
                                                                                                                                  CORPORATE
across 177 (one hundred and seventy-seven) network              principles in all employees which can be applied in
offices, whereas documents that are more than 10 years          the Company’s operational activities. In 2023, efforts
old will be shredded and used as recycled paper material        to build awareness will continue by building a culture
by the vendor. [GRI 3-3, 306-1]                                 of sustainability, including through e-mail blasts and
                                                                e-flyers. [GRI 3-3, 306-2]
In addition, several types of solid waste generated from
the Company’s operations include office waste, paper,           The data on waste generated in the Company is described
unused electronic equipment, batteries, used lamps and          as follows: [GRI 306-3, 306-4, 306-5]
used furniture. Meanwhile, liquid waste comes from




                                                                                                                                  DISCUSSION & ANALYSIS
                                                                                                                                  MANAGEMENT
Waste
The following is summary data for waste at the Head
Office for the 2023 period, consisting of waste from
food, drinks, paper, and cardboard.

In 2023, the total waste originating from the Company’s
head office will be 14.6 m3 and the transportation
process will be carried out by waste officers from                        Total Waste
Tanjung Barat District. After the waste is transported,


                                                                          14.6
the waste is sorted, such as cardboard waste and used
drinking bottles will be collected and sent to collectors,
while useless waste will be taken to the final Temporary
Disposal Site (TPS).                                                      M3
                                                                                                                                  GOVERNANCE
                                                                                                                                  CORPORATE
                                                                                                                                  REPORT
                                                                                                                                  SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                  459
Page 460
  SUSTAINABILITY
  REPORT




         B3 Waste
         Summary Data on B3 Waste at Head Office for the 2023 Period




         Total B3 Waste                Battery                Used Lamps             Used Packing           Other


         20.6
         KG
                                       1.2
                                       KG
                                                              3.5
                                                              KG
                                                                                     1.4
                                                                                     KG
                                                                                                            14.5
                                                                                                            KG




         Apart from that, waste that falls into the category of      In 2023, there will be no spills, whether from chemicals,
         toxic and hazardous materials (B3) throughout 2023 at       oil, fuel or other chemical substances that affect the
         the Company’s head office will amount to 20.6 kg. Of        quality of the surrounding environment and public
         this total, the largest amount of B3 waste comes from       health. The Company also does not receive complaints or
         air freshener cans, metal waste, lamp glass and other       reports regarding incidents of non-compliance with rules
         chemicals. For the transportation and processing process,   and regulations regarding the disposal of wastewater or
         the Company uses the services of third-party vendors.       effluent. [GRI 303-4]

         With predetermined       waste     management,    during
         operational processes.



         Paper, Cardboard, and Ordner Waste
         Data on Destruction of Paper, Cardboard and Ordner at Head Office for the 2023 Period




         Total Paper, Cardboard and              Total                  Total                    Total
         Ordner Waste                            Cardboard              Ordner                   Paper


         497.3
         KG
                                                 58.5
                                                 KG
                                                                        195.0 243.8
                                                                        KG                       KG




         Throughout 2023, the Company had destroyed 497.3            into digital/online form. This concept was developed in
         Kg of paper, cardboard and ordner for old and unused        various digitalization efforts and document management
         documents. In addition, the Company strives to reduce       application portals with a paperless concept.
         paper waste by converting the use of printed documents




460
Page 461
PT BUSSAN AUTO FINANCE




                                                                                                                                HIGHLIGHTS
                                                                                                                                PERFORMANCE
     Head Office and Workspace
     Arrangement
The Company implements environmentally friendly             From 2022 to 2023, the Company conducted renovation
building management through the construction of BAF         and refreshment the workspace layout on each floor to
Plaza. BAF Plaza which has 8 (eight) floors adopts the      become a workspace with a concept that pays attention to




                                                                                                                                REPORT
                                                                                                                                MANAGEMENT
concept of an environmentally friendly building or ‘green   aspects of lighting, choosing a balanced and appropriate
building’ including water management systems, lighting,     color composition with a combination of bright colors,
to an adequate ratio of green open space. BAF Plaza has     requiring the replacement of furniture which is the
been equipped with solar panels, public street lighting     main elements to support the implementation of an
with solar power, EV charger, water recycling system and    increasingly productive work process, as well as making
water harvesting system, where building waste water         changes to the interior of the work space and decoration
management and rainwater are reused for watering            to make employees more comfortable at work.
plants and flushing toilets.




                                                                                                                                PROFILE
                                                                                                                                CORPORATE
                                                                                                                                DISCUSSION & ANALYSIS
                                                                                                                                MANAGEMENT
                                                            well as pest control which is carried out in several of the
     Building a Culture of Sustainability and               Company’s branch offices.
     Increasing Employee Engagement
                                                            At the head office, the Company provides an Air Purifier
The Company always urges employees to always                which functions as an air purifier in the Company’s
maintain cleanliness in the work environment and the        head office area, and several of the Company’s regional
environment around the Company’s offices. Since             offices (Jakarta and Surabaya). Apart from that, at the
2019, the Company has had BAF Home Ambassadors              Company’s head office, there is also an Activtek Air
whose members consist of employees from each floor          Sterilizer installed on the ceiling of each work space on
                                                                                                                                GOVERNANCE
                                                                                                                                CORPORATE




who play a role in promoting clean work environments.       each floor as an air purifier.

BAF Home Ambassador activities in 2023 are to monitor       Throughout     2023,   the    Company      continued
the cleanliness and tidiness of the working area on each    implementation of the green campaign in the
floor.                                                      Company’s work environment to build awareness among
                                                            all employees to continuously increase environmental
The Company also routinely carries out pest spraying        and social awareness.
every month in the head office work environment, as
                                                                                                                                REPORT
                                                                                                                                SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                461
Page 462
  SUSTAINABILITY
  REPORT




462
Page 463
PT BUSSAN AUTO FINANCE




                                                                                                                                                                 HIGHLIGHTS
                                                                                                                                                                 PERFORMANCE
       Environmental Budget
The total costs used in the environmental sector are as follows:




                                                                                                                                                                 REPORT
                                                                                                                                                                 MANAGEMENT
                          Environmental Budget



                          3.9
                          BIL LION R U PIAH


       2022                       2021

        1.8                        2.7




                                                                                                                                                                 PROFILE
                                                                                                                                                                 CORPORATE
*) Consists of replacing/purchasing energy-friendly AC units, replacing mini PCs, solar panels, EV, Chargers, solar street vendors, electric cars, paper
   shredders, portable generators, paper shredder machines




                                                                                also supports the empowerment of surrounding
       Biodiversity Conservation                                                communities. always carry out environmentally friendly
                                                                                operational activities (green operations). The Company
The Company’s business activities do not involve direct                         has implemented policies related to environmental
activities that can harm or have the potential to damage                        management and protection which are manifested in
the environment. Offices including the Company’s                                the form of appeals and outreach to the Company’s




                                                                                                                                                                 DISCUSSION & ANALYSIS
                                                                                                                                                                 MANAGEMENT
network offices are also not located in areas with a high                       employees as a form of the Company’s commitment to
level of biodiversity or in protected areas, but in locations                   contributing to the environment. [304-1]
that are easily accessible and close to commercial
centers and residential areas. Nevertheless, the Company                        In 2023, the Company will again implement a biodiversity
supports efforts to preserve the environment and                                support program by planting 20,000 mangroves spread
biodiversity.                                                                   across Pantai Indah Kapuk in North Jakarta, Coastal
                                                                                Tambakrejo in Semarang, Coastal Indramayu West
The Company actively participates in environmental                              Java, Coastal Kumai in West Kotawaringin, Ecotourism
conservation efforts with the aim of creating a better life.                    Mangrove Wonorejo in Surabaya, and Teluk Benoa in
The Company’s participation is realized through efforts                         Badung, Bali. This program is part of the BAF ECO Move
to preserve the environment and reduce the impact of                            which was launched 3 years ago and has succeeded in
global warming as well as developing environmentally                            planting 135,500 tree seedlings during 2021-2023 in
friendly projects by utilizing natural potential which                          various regions.
                                                                                                                                                                 GOVERNANCE
                                                                                                                                                                 CORPORATE
                                                                                                                                                                 REPORT
                                                                                                                                                                 SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                                                                 463
Page 464
  SUSTAINABILITY
  REPORT




                      BAF ECO MOVE




         20K                                     89,758                                 647
         Tree seeds have                         Participated                           Participated employees
         been donated                            consumers                              and dealers




         As a player in financial services industry, the Company     BAF ECO Move 2023 focused on planting more than
         realizes that we also has a role in providing support in    20,000 mangrove tree seedlings in an effort to support
         carrying out business activities prioritizing the harmony   environmental greening, protect coastal areas from
         of economic, social and environmental interests. In         large waves, prevent erosion, and others.
         2023, the Company organized another BAF ECO Move
         campaign, which is a greening movement to realize           BAF ECO Move involves the participation of the
         concern for the environment. The BAF ECO Move               Company’s consumers and employees, where
         “Greening Movement” was carried out as one of the           consumers who take out financing with the Company
         Company’s steps to reduce motor vehicle exhaust             during the period 12 April 2023 until 31 May 2023,
         emissions.                                                  will automatically participate in the BAF ECO Move




464
Page 465
PT BUSSAN AUTO FINANCE




                                                                                                                          HIGHLIGHTS
                                                                                                                          PERFORMANCE
                                                                                                                          REPORT
                                                                                                                          MANAGEMENT
                                                                                                                          PROFILE
                                                                                                                          CORPORATE
                                                                                                                          DISCUSSION & ANALYSIS
                                                                                                                          MANAGEMENT
135K                                  6                                     6
Trees have been donated               Cities in                             Government
period 2021-2023                      Indonesia*                            institutions**




movement without being charged any fees. Company         All donated tree seedlings were planted and distributed
employees also voluntarily donated to take part in       at various points on 6 (six) coastlines in Indonesia,
the Greening Movement during this period. As an          namely Indah Kapuk Beach in North Jakarta,
appreciation, BAF provides paperless e-Certificates to   Tambakrejo Coast in Semarang, Indramayu Coast, West
those who have participated.                             Java, Kumai Coast in West Kotawaringin, Wonorejo
                                                                                                                          GOVERNANCE
                                                                                                                          CORPORATE




                                                         Mangrove Ecotourism in Surabaya, and Benoa Bay in
The tree seedlings were handed over on July 22,          Badung, Bali in collaboration with related agencies with
2023 by donating a total of 20,000 mangrove tree         the aim of reforestation which can create better coastal
seedlings.                                               quality.




*) Pantai Indah Kapuk in North Jakarta, Tambakrejo       **) DKI Jakarta Environmental Office.
   Coast in Semarang, Indramayu Coast in West                Semarang City Environmental Office.
   Java, Kumai Coast in West Kotawaringin, Wonorejo          Indramayu Regency Environmental Office.
   Mangrove Ecotourism in Surabaya, and Benoa Bay in         Surabaya City Environmental Office.
                                                                                                                          REPORT
                                                                                                                          SUSTAINABILITY




   Badung, Bali.                                             Badung Regency Environment and Hygiene Office




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                          465
Page 466
  SUSTAINABILITY
  REPORT




              Positive and Negative Impacts from                      Environmental Complaints
              Implementation of Sustainable Finance
              to the Society and Environment                      The Company has a commitment to always contribute
                                                                  and improve environmental sustainability in Indonesia
         In general, implementation of sustainable finance        by complying with environmental regulations. In 2023,
         particularly related to activities in social aspects     the Company did not receive any complaints related to
         provides positive impact for the society and public,     the environment. [GRI 2-27]
         including direct beneficiaries. However, the positive
         impact also has a potential that brought negative
         impact, despite less significant. Some of the negative
         impacts are among others occurrence of social gap
         among the society who’s not receiving the benefit.
         Therefore, the Company strives to evaluate and prepare
         the mapping on community and society target to be
         done based on the target requirement by considering
         area to be distributed equally.




466
Page 467
PT BUSSAN AUTO FINANCE




                                                                                                                            HIGHLIGHTS
                                                                                                                            PERFORMANCE
              FEEDBACK
              FORM




                                                                                                                            REPORT
                                                                                                                            MANAGEMENT
PT Bussan Auto Finance Sustainability Report 2023 discloses on sustainability performances. Please submit any
feedback, inquiry, and suggestion after reading this Sustainability Report by email or sending this form via postal
service/email.



YOUR PROFILE
Name (if allowed)		          :

Institution/Company          :




                                                                                                                            PROFILE
                                                                                                                            CORPORATE
E-mail			:

Phone			:



STAKEHOLDERS CATEGORY

      Investor                      Customer                     Employee                   Business Partner

      Media                        Vendor                        Public                     Government and OJK

      Public Organization/NGO                                    Other, please describe:




                                                                                                                            DISCUSSION & ANALYSIS
                                                                                                                            MANAGEMENT
Please choose one of the following answer that is most suitable with the questions.

                                    DESCRIPTION                                                YES             NO

1. This Report is easy to understand

2. This Report is useful for me

3. This Report has explained sustainable development performance of the Company
                                                                                                                            GOVERNANCE
                                                                                                                            CORPORATE



Please give score for degree of importance of the material aspects as well as for sustainability of PT Bussan Auto
Finance (score 1 = less important up to score 3 = very important)

      Economic                                 Social                                  Environmental
      Performance                              Performance                             Performance


Please provide your suggestions/comments on this report.




Thank you for your participation. Please send this feedback form back to:
Corporate Secretary PT Bussan Auto Finance
                                                                                                                            REPORT
                                                                                                                            SUSTAINABILITY




BAF Plaza, Jl. Raya Tanjung Barat No. 121, Jagakarsa – Jakarta Selatan
T. (62-21)293 9600 | E. baf.sekretariat@baf.id




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                            467
Page 468
  SUSTAINABILITY
  REPORT




                   This page is intentionally left blank.




468
Page 469
PT BUSSAN AUTO FINANCE




                                                                                                                            HIGHLIGHTS
                                                                                                                            PERFORMANCE
             RESPONSE ON FEEDBACK
             TO PREVIOUS YEAR’S
             SUSTAINABILITY




                                                                                                                            REPORT
                                                                                                                            MANAGEMENT
To create two-way communication, in Annual Report          As the end of 2023, the Company did not receive any
2023, the Company attached a Feedback Form at end          input or feedback on the 2022 sustainability report from
of the annual report containing the reader’s assessment    stakeholders including the customers, work partners,
of the sustainability report. The form is expected to      media, suppliers and others through the Feedback Sheet.
help the readers and users of this report to provide       However, we keep doing improvements to provide better
suggestions, feedback, opinions and others, which can      quality information for the readers.
be useful for improving the quality of reporting in the
future. Stakeholders can submit to the Company by




                                                                                                                            PROFILE
                                                                                                                            CORPORATE
sending an email or sending this form by post/e-mail
according to the address disclosed in the Feedback Form.




             WRITTEN VERIFICATION



                                                                                                                            DISCUSSION & ANALYSIS
                                                                                                                            MANAGEMENT
             FROM INDEPENDENT
             PARTY
In preparing this report, the Company has not hired        two consecutive years to present the Company’s
any independent party to provide assurance on this         sustainability performance trends. The financial aspect
sustainability report.                                     data presented in this report is partly adapted from
                                                           the consolidated financial statements that have been
Material quantitative data in this sustainability report   audited by the Public Accounting Firm, while other data
is presented using comparability principle for at least    comes from the Company’s internal sources.
                                                                                                                            GOVERNANCE
                                                                                                                            CORPORATE
                                                                                                                            REPORT
                                                                                                                            SUSTAINABILITY




2023 ANNUAL REPORT & SUSTAINABILITY REPORT                                                                            469
Page 470
CORPORATE
SUPPORTING DATA




                     CROSS REFERENCE
                     ACCORDING TO SEOJK
                     NO. 16/SEOJK.04/2021
                     CONCERNING THE FORM AND CONTENT OF THE
                     ANNUAL REPORT OF ISSUERS OR PUBLIC COMPANIES



      This report contains the required information as stated in SEOJK No. 16/SEOJK.04/2021 concerning the Form and
      Content of the Annual Report of Issuers or Public Companies.



        NO                                               DISCLOSURE                                         PAGE
        Sustainability Strategy

        A.1       Explanation of Sustainability Strategy                                                     353-360

        Sustainability Aspect Performance Overview

        B.1       Economic Aspects

                  a. Quantity of production or services sold                                            10-13, 18-22,
                                                                                                                 379

                  b. Revenue or sales                                                                    10-13, 18-22

                  c. Net profit or loss                                                                  10-13, 18-22

                  d. Environmentally friendly products; and                                              14, 382-384

                  e. Involvement of local parties related to the Sustainable Finance business process    14, 386-387
        B.2       Environmental Aspects

                  a. Use of energy                                                                       17, 450-456

                  b. Reduction of emissions                                                                      450

                  c. Reduction of waste and effluent; and                                                    459-460

                  d. Biodiversity conservation                                                           14, 386-387

        B.3       Social Aspects                                                                         15, 412-427

        Company Profile

        C.1       Vision, Mission, and Sustainability Values                                                       91

        C.2       Company Address                                                                        88, 481-497

        C.3       Business Scale, at least contain:

                  a. Total assets or asset capitalization and total liabilities                          88, 170-175

                  b. Number of employees by gender, position, age, education, and employment                 390-391
                     status

                  c. The name of the shareholders and the percentage of shares ownership of; and              88, 179
Page 471
PT BUSSAN AUTO FINANCE




                                                                                                              HIGHLIGHTS
                                                                                                              PERFORMANCE
 NO                                           DISCLOSURE                                         PAGE
         d. Operational area                                                                         92-93,
                                                                                                   481-497

 C.4     Products, Services, and Business Activities                                            95, 137-153

 C.5     Membership in the Association                                                                  88




                                                                                                              REPORT
                                                                                                              MANAGEMENT
 C.6     Significant Changes in Issuers and Public Companies                                            89

 Message from the Board of
 Directors

 D.1     Explanation of the Board of Directors

         a.Policies to respond to challenges in the fulfillment of sustainability strategies         74-75

         b.Sustainable Financial Implementation                                                      75-76

         c.Target achievement strategy                                                               76-77
 Sustainability Governance




                                                                                                              PROFILE
                                                                                                              CORPORATE
 E.1     Responsible for Sustainable Financial Implementation                                           363
 E.2     Development of Competencies Related to Sustainable Finance                                375-376
 E.3     Risk Assessment of Sustainable Financial Implementation                                   304-322
 E.4     Relationships with Stakeholders                                                           370-373
 E.5     Issues in Sustainable Financial Implementation                                                 373
 Sustainability Performance




                                                                                                              DISCUSSION & ANALYSIS
                                                                                                              MANAGEMENT
 F.1     Activities to Build Sustainability culture                                               373-376,
                                                                                                  461-462

         Economic Performance
 F.2     Comparison of Production Targets and Performance, Portfolios, Financing Targets, or       183-185
         Investments, Revenue and Profit and Loss
 F.3     Comparison of Portfolio Targets and Performance, Financing Targets, or Investments        183-185
         in Financial Instruments or Projects in Line with Sustainable Finance

         Environmental Performance
         General Aspects

 F.4     Environmental Costs                                                                            463
         Material Aspects
                                                                                                              GOVERNANCE
                                                                                                              CORPORATE



 F.5     Use of Environmentally Friendly Materials                                                 451-458
         Energy Aspect

 F.6     Amount and Intensity of Energy Used                                                       450-454
 F.7     Efforts and Achievements of Energy Efficiency and Use of Renewable Energy                 450-454
         Water Aspect

 F.8     Water Use                                                                             451, 455-456
         Aspects of Biodiversity

 F.9     Impact of Operational Areas Nearby or Located in Conservation Areas or Having             463-466
         Biodiversity
                                                                                                              REPORT
                                                                                                              SUSTAINABILITY




 F.10    Biodiversity Conservation Efforts                                                         463-466




2023 ANNUAL REPORT & SUSTAINABILITY REPORT
Page 472
CORPORATE
SUPPORTING DATA




        NO                                             DISCLOSURE                                        PAGE
                  Emission Aspects

        F.11      Amount and Intensity of Emissions Produced By Type                                        450

        F.12      Efforts and Achievements of Emission Reductions Made                                      450

                  Waste and Effluent Aspects

        F.13      Amount of Waste and Influenza Generated By Type                                        459-460

        F.14      Waste and Effluent Management Mechanisms                                               459-460

        F.15      Spills incident (if any)                                                                  460

                  Environmental-Related Complaint Aspects

        F.16      Amount and Material of Environmental Complaints Received and Resolved                     466

                  Social Performance

        F.17      Commitment to Providing Services for Equal Products and/or Services to Consumers       437-440

                  Employment Aspects
        F.18      Equality of Employment Opportunities                                                      389
        F.19      Child Labor and Force Labor                                                               395
        F.20      Regional Minimum Wage                                                                     400
        F.21      A Decent and Safe Working Environment                                                  406-407
        F.22      Employee Training and Competency Development                                           402-404

                  Aspects of Society
        F.23      Impact of Operations on Surrounding Communities                                        421-422
        F.24      Community Complaints                                                                   421-423
        F.25      Environmental Social Responsibility Activities (ESR)                                   412-421

                  Responsibility for Sustainable Product/Service Development
        F.26      Innovation and Sustainable Product/Service Development                                 437-440
        F.27      Products/Services That Have Been Undergone Safety Evaluation for Customers             440-441
        F.28      Product/Service Impact                                                                 441-442
        F.29      Products Recall                                                                           442
        F.30      Customer Satisfaction Survey of Sustainable Financial Products and/or Services         442-443
        Others:

        G.1       Written Verification from an Independent Party (if any)                                   469
        G.2       Feedback Form                                                                             469
        G.3       Response to Previous Year’s Sustainability Report Feedback                                469
        G.4       Cross Reference with Financial Services Authority Regulation No. 51/POJK.03/2017       473-476
                  on Financial Implementation for Financial Services Institutions, Issuers, and Public
                  Companies
Page 473
PT BUSSAN AUTO FINANCE




                                                                                                                    HIGHLIGHTS
                                                                                                                    PERFORMANCE
             CROSS REFERENCE
             ACCORDING TO OJK
             REGULATION NO. 51/




                                                                                                                    REPORT
                                                                                                                    MANAGEMENT
             POJK.03/2017
             CONCERNING THE IMPLEMENTATION OF
             SUSTAINABLE FINANCE FOR FINANCIAL SERVICE
             INSTITUTIONS, ISSUERS, AND PUBLIC COMPANIES

This report contains the required information as stated in the OJK Regulation No. 51/ POJK.03/2017 concerning the




                                                                                                                    PROFILE
                                                                                                                    CORPORATE
Implementation of Sustainable Finance for Financial Service Institutions, Issuers, and Public Companies.



 NO                                             DISCLOSURE                                              PAGE
 1.      Explanation on Sustainability Strategy

 2.      Sustainability Aspect Performance Highlights

         a. Economic Aspects

             1) Quantity of products or services offered                                            10-13, 18-22,




                                                                                                                    DISCUSSION & ANALYSIS
                                                                                                                    MANAGEMENT
                                                                                                             379

             2) Revenue or sales                                                                     10-13, 18-22

             3) Net profit or loss                                                                   10-13, 18-22

             4) Environmental-friendly products; and                                                 14, 382-384

             5) Engagement of local stakeholders concerning the Sustainable Finance                  14, 386-387
                business process

         b. Environmental Aspects

             1) Energy Consumption (including electricity and water);                                17, 450-456

             2) Total emission reductions                                                                    450

             3) Waste and effluents reductions                                                           459-460
                                                                                                                    GOVERNANCE
                                                                                                                    CORPORATE



             4) Biodiversity conservation                                                                463-466

         c. Social Aspects:

             A. description of the positive and negative impacts out of Sustainable Finance              441-442
                application on community and environment (including people, regions, and
                funds)

 3.      Brief Company Profile:

         a. Vision, mission, and values of sustainability                                                      91

         b. Name, address, telephone number, fax number, e-mail address, and website/web,            88, 481-497
            as well as branch and/or representative offices

         c. Business scale:
                                                                                                                    REPORT
                                                                                                                    SUSTAINABILITY




             1) Total assets or asset capitalization, and total liabilities (in million rupiah);     88, 170-175




2023 ANNUAL REPORT & SUSTAINABILITY REPORT
Page 474
CORPORATE
SUPPORTING DATA




        NO                                            DISCLOSURE                                              PAGE
                       2) Number of employees by gender, position, age, education, and employment               390-391
                          status

                       3) Shareholding percentage (public and government); and                                   88, 179

                       4) Operational area                                                                        92-93,
                                                                                                                481-497

                  d. Brief description on products, services, and business activities                        95, 137-153

                  e. Membership in association                                                                       88

                  f.   Significant changes, such as those relating to branch office closure or opening and           89
                       ownership structure

        4.        Message from Board of Directors;

                  a. Policy to respond to challenges in fulfilling the sustainability strategy, that
                     shall cover at least the following:

                       1) Explanation about the Company’s sustainability values                                   73-74

                       2) Explanation about the Company’s responses towards issues concerning the                 74-75
                          Sustainable Finance Implementation
                       3) Explanation about the commitment of the Company’s leader in Sustainable                 74-75
                          Finance implementation

                       4) Achievement of Sustainable Finance implementation performance; and                      75-76
                       5) Challenges in achievement of Sustainable Finance implementation                            76
                          performance

                  b. Sustainable Finance Implementation, at least includes:

                       1) Achievement of Sustainable Finance Implementation (economic, social, and                75-76
                          environmental) compared to targets; and

                       2) Explanation about achievements and challenges including important events                75-76
                          during the reporting period (for the FSI required to prepare Sustainable
                          Finance Action Plan);

                  c. Target achievement strategy, includes:
                       1) Risk management on Sustainable Finance implementation related to                        76-77
                          economic, social and environmental aspects;

                       2) Utilization of business opportunities and prospects; and                                   77
                       3) Description on economic, social, and environmental external situations which            76-77
                          may potentially affect the Company’s sustainability

        5.        Sustainability governance includes

                  a. Description of duties of the Board of Directors and Board of Commissioners,                363-365
                     employees, officers and/or work units who are responsible for the Sustainable
                     Finance implementation.

                  b. Competency development of Board of Directors, Board of Commissioners,                      373-376
                     employees, officers and/or work units responsible for the Sustainable Finance
                     implementation.

                  c. Explanation about procedure applied by the Company in identifying, measuring,              304-322
                     monitoring and controlling the risks in Sustainable Finance implementation
                     related to economic, social, and environmental aspects, including the role of the
                     Board of Directors and the Board of Commissioners in managing, conducting
                     periodic reviews, and analyzing the effectiveness of the Company’s risk
                     management process.

                  d. Description on stakeholders that includes:

                       1) Stakeholder involvement based on management assessment results.                            373
Page 475
PT BUSSAN AUTO FINANCE




                                                                                                             HIGHLIGHTS
                                                                                                             PERFORMANCE
 NO                                          DISCLOSURE                                         PAGE

             2) Approach applied by the Company in involving stakeholders in the Sustainable           370
                Finance Implementation.

         e. Issues faced, progress, and impact on the of Sustainable Finance implementation.           373




                                                                                                             REPORT
                                                                                                             MANAGEMENT
 6.      Sustainable performance, at least includes:

         a. Description on sustainable culture development activities in the Company             461-462

         b. Description of economic performance from the last 3 (three) years, including:

             1) Comparison of targets to performance in terms of production, portfolio,          378-387
                financing targets, or investments, revenue as well as profit and loss

             2) Comparison of target to performance of portfolio, financing target, or           378-387
                investments in financial instruments or projects in line with the Sustainable
                Finance implementation.

         c. Social performance: in the last 3 (three) years:




                                                                                                             PROFILE
                                                                                                             CORPORATE
             1) The Company’s commitment to provide equal products and/or services to the        437-440
                consumers.
             2) Employment, at least includes:

                a) Equal employment opportunities and the occurrence of forced labor and               389
                   child labor

                b) Percentage of permanent employee remuneration at the lowest level of                400
                   the regional minimum wage

                c) Decent and safe work environment; and                                         406-407




                                                                                                             DISCUSSION & ANALYSIS
                                                                                                             MANAGEMENT
                d) Training and development of employee skills.                                  402-404
             3) Community:

                a) Information on operational activities or area producing positive and                466
                   negative impacts on local community including financial literacy and
                   inclusion;

                b) Public complaints mechanism and number of community complaints                421-423
                   received and follow-up; and

                c) CSR related to supports to sustainable development goals including type       354-357
                   and achievement of community development program activity.

         d. Environmental Performance

             1) Environmental costs;                                                                   463
             2) Description on the use of environmentally friendly materials such as recycle     451-458
                                                                                                             GOVERNANCE
                                                                                                             CORPORATE



                material type; and

             3) Description on the use of energy, at least include:

                a) Amount and intensity of energy consumed; and                                  450-454
                b) Efforts and achievement made for energy efficiency including the use of       450-454
                   renewable energy sources;

                c. Environmental Performance for Companies whose business processes
                   are directly related to the environment:

                    1) The performance related to point d above                                          -
                    2) Information on operational activities or areas producing positive and             -
                       negative impacts on the surrounding environment, especially efforts to
                       increase the carrying capacity of ecosystems;
                                                                                                             REPORT
                                                                                                             SUSTAINABILITY




                    3) Biodiversity, including at least:




2023 ANNUAL REPORT & SUSTAINABILITY REPORT
Page 476
CORPORATE
SUPPORTING DATA




        NO                                           DISCLOSURE                                           PAGE
                                a) Impacts from operational areas nearby or inside the conservation        463-466
                                   areas or that contain biodiversity; and

                                b) Biodiversity conservation business carried run, including protection    464-466
                                   of flora or fauna species;

                            4) Emissions, including at least:

                                a) Amount and intensity of emissions by type; and                                450

                                b) Efforts and achievement of emission reductions;                               450

                            5) Waste and effluent, including at least:

                                a) Amount of waste and effluent by type;                                   459-460

                                b) Waste and effluent management mechanisms; and                           459-460

                                c) Spill incident (if any); and                                                  460

                            6) Number and content of environmental complaints received and                       466
                               resolved

                         d. Sustainable Finance product and/or service development responsibility,
                            at least include:
                            1) Sustainable Finance product and/or service innovation and                   437-440
                               development

                            2) Number and percentage of products and services, that have been              440-441
                               undergone safety test for the customers;

                            3) Positive and negative impacts caused by Sustainable Financial               441-442
                               products and/or services and the distribution process, as well as
                               mitigation undertaken to mitigate negative impacts

                            4) Number of recall products and the reasons; or                                     442
                            5) Customer satisfaction survey of Sustainable Financial products and/or       442-443
                               services.

        7.        Written verification from independent parties (if any)                                         469
Page 477
PT BUSSAN AUTO FINANCE




                                                                                                                 HIGHLIGHTS
                                                                                                                 PERFORMANCE
            LIST OF DISCLOSURE
            ACCORDING TO GLOBAL
            REPORTING INITIATIVE




                                                                                                                 REPORT
                                                                                                                 MANAGEMENT
            (GRI)

 Statement of Use                     PT Bussan Auto Finance has reported the information cited in this GRI
                                      content index for the period January-December 2023 with reference to the
                                      GRI Standards

 GRI 1 Used                           GRI 1: Foundation 2021




                                                                                                                 PROFILE
                                                                                                                 CORPORATE
      STANDARD                INDICATOR                         DISCLOSURE                           PAGE

 GRI 2: General              2-1               Detail of the Organization                              89
 Disclosures
 2021                        2-2               Entities included in the organization’s               344
                                               sustainability reporting

                             2-3               Reporting period, frequency and contact point         344




                                                                                                                 DISCUSSION & ANALYSIS
                                                                                                                 MANAGEMENT
                             2-4               Restatements of information                           344

                             2-5               External assurance                                    344

                             2-6               Activities, value chain and other business            376
                                               relationships

                             2-7               Employees                                             389

                             2-8               Workers who are not employees                         389

                             2-9               Governance structure and composition                  361

                             2-10              Nomination and selection of the highest               361
                                               governance body
                                                                                                                 GOVERNANCE
                                                                                                                 CORPORATE




                             2-11              Chair of the highest governance body                  361

                             2-12              Role of the highest governance body in                361
                                               overseeing the management of impacts

                             2-13              Delegation of responsibility for managing             361
                                               impacts

                             2-14              Role of the highest governance body in              84-85
                                               sustainability reporting

                             2-15              Conflict of Interest                                  377
                                                                                                                 REPORT
                                                                                                                 SUSTAINABILITY




                             2-16              Communication of critical concerns                    377




2023 ANNUAL REPORT & SUSTAINABILITY REPORT
Page 478
CORPORATE
SUPPORTING DATA




             STANDARD           INDICATOR                    DISCLOSURE                       PAGE

                                2-17        Collective knowledge of the highest               375
                                            governance body

                                2-18        Evaluation of the performance of the highest      363
                                            governance body

                                2-19        Remuneration policies                             363

                                2-20        Process to determine remuneration                 363

                                2-21        Annual total compensation ratio                   224,
                                                                                           236-237

                                2-22        Statement on sustainable development              353
                                            strategy

                                2-23        Policy commitments                                353

                                2-24        Embedding policy commitments                      353

                                2-25        Processes to remediate negative impacts           431

                                2-26        Mechanisms for seeking advice and raising         366
                                            concerns

                                2-27        Compliance with laws and regulations              377

                                2-28        Membership associations                            88

                                2-29        Approach to stakeholder engagement             370-371

                                2-30        Collective bargaining agreements                  401

        GRI 3: Material         3-1         Process to determine material topics              345
        Topics 2021
                                3-2         List of material topics                        346-352

                                3-3         Management of material topics                  347-352

        GRI 201: Economic       201-1       Direct economic value generated and               381
        Performance 2016                    distributed

                                201-2       Financial implications and other risks and        381
                                            opportunities due to climate change

                                201-3       Defined benefit plan obligations and other        399
                                            retirement plans

                                201-4       Financial assistance received from                381
                                            government

        GRI 203: Indirect       203-2       Significant indirect economic impacts             386
        Economic Impacts 2016

        GRI 205: Anti-          205-3       Confirmed case of corruption and actions          357
        corruption 2016                     taken

        GRI 302: Energy 2016    302-1       Energy consumption within the organization     450-456
Page 479
PT BUSSAN AUTO FINANCE




                                                                                                       HIGHLIGHTS
                                                                                                       PERFORMANCE
      STANDARD                INDICATOR                         DISCLOSURE                      PAGE

                             302-2           Energy consumption outside of the                  453
                                             organization

                             302-3           Energy intensity                               450-456




                                                                                                       REPORT
                                                                                                       MANAGEMENT
                                                                                            456-459
                             302-4           Reduction of energy consumption

 GRI 303: Water and          303-1           Interactions with water as a shared resource   455-456
 Effluents 2018
                             303-5           Water consumption                              455-456

 GRI 304:                    304-1           Operational sites owned, leased, managed in,   463-465
 Biodiversity 2016                           or adjacent to protected areas and areas of
                                             high biodiversity value outside

 GRI 305:                    305-1           Direct (Scope 1) GHG emissions                  76, 450




                                                                                                       PROFILE
                                                                                                       CORPORATE
 Emissions 2016
                             305-2           Other indirect (Scope 2) GHG emissions             450

                             305-3           Other indirect (Scope 3) GHG emissions             450

                             305-4           GHG emissions intensity                            450

                             305-5           Reduction of GHG emissions                         450

 GRI 306: Waste              306-2           Management of significant waste-related        459-460
                                             impacts




                                                                                                       DISCUSSION & ANALYSIS
                                                                                                       MANAGEMENT
                             306-3           Waste Generated                                459-460

 GRI 401:                    401-1           New employee hires and employee turnover       393-395
 Employment 2016

 GRI 403:                    403-1           Occupational health and safety management          388
 Occupational                                system
 Health and
 Safety 2018                 403-2           Hazard identification, risk assessment, and    406, 408
                                             incident investigation

                             403-3           Occupational health services                   408-409

                             403-4           Worker participation, consultation, and            405
                                             communication on occupational health and
                                                                                                       GOVERNANCE
                                                                                                       CORPORATE



                                             safety

                             403-5           Worker training on occupational health and         410
                                             safety

                             403-6           Promotion of worker health                         406

                             403-7           Prevention and mitigation of occupational      406-407
                                             health and safety impacts directly linked by
                                             business relationships

                             403-8           Workers covered by an occupational health          408
                                             and safety management system
                                                                                                       REPORT
                                                                                                       SUSTAINABILITY




 GRI 404:                    404-1           Average hours of training per year per         402-403
 Training and                                employee
 Education 2016



2023 ANNUAL REPORT & SUSTAINABILITY REPORT
Page 480
CORPORATE
SUPPORTING DATA




             STANDARD           INDICATOR                   DISCLOSURE                      PAGE

                                404-2       Programs for upgrading employee skills and   402-404
                                            transition assistance programs

                                404-3       Percentage of employees receiving regular       399
                                            performance and career development reviews

        GRI 413: Local          413-1       Operations with local community              422-424
        Communities 2016                    engagement, impact assessments, and
                                            development programs

        GRI 418:                418-1       Data Substantiated complaints concerning        347
        Customer Privacy 2016               breaches of customer privacy and losses of
                                            customer data
Page 481
   PT BUSSAN AUTO FINANCE




                                                                                                             HIGHLIGHTS
                                                                                                             PERFORMANCE
             ALAMAT
             JARINGAN




                                                                                                             REPORT
                                                                                                             MANAGEMENT
Head Office
BAF PLAZA
Jl. Tanjung Barat Raya No.121,
Jagakarsa, Jakarta Selatan,
Daerah Khusus Ibukota Jakarta 12530
     021-2939 6000




                                                                                                             PROFILE
                                                                                                             CORPORATE
Bali
     Branch Office


DENPASAR                              TABANAN
Jl. Raya Gatot Subroto No. 231 A-B,   Jl. Gunung Agung No. 83,
Kota Denpasar - Bali                  Desa Dajan Peken, Kec. Tabanan,




                                                                                                             DISCUSSION & ANALYSIS
                                                                                                             MANAGEMENT
     0361-265588                      Kab. Tabanan, Prov. Bali.
                                           0361-819261; 819262; 819413;
                                      7446210




Bangka
     Branch Office


BANGKA                                BELITUNG                             MUNTOK (MENTOK)
Jl. Soekarno Hatta No. 086,           Jl. Veteran No. 274 Kampung Parit,   Jl. Jenderal Sudirman,
RT 008 RW 003, Kel. Bukit Besar,      Tanjung Pandan, Belitung             Kel. Sungai Baru, Kec. Muntok,
                                                                                                             GOVERNANCE
                                                                                                             CORPORATE




Kec. Girimaya, Kota Pangkal Pinang,        0719-25140; 25155               Kab. Bangka Barat,
Prov. Kepulauan Bangka Belitung                                            Prov. Kepulauan Bangka Belitung
     0717- 437929; 434304; 438904;                                              0716-7321465, 7321667,
438903; 437035                                                             7321654


TOBOALI
Jl. Jendral Sudirman,
RT 001 RW 001, Kel. Teladan,
Kec. Toboali, Kab. Bangka Selatan,
Prov. Kepulauan Bangka Belitung
     0718-41320
                                                                                                             REPORT
                                                                                                             SUSTAINABILITY




   2023 ANNUAL REPORT & SUSTAINABILITY REPORT
Page 482
CORPORATE
SUPPORTING DATA




           KSKC (Kantor Selain Kantor Cabang)


      PANGKAL PINANG (BANGKA)
      Jl. Batin Tikal, Kel kejaksaan,
      Kec. Taman Sari, Kota Pangkal
      Pinang, Prov. Bangka Belitung




      Jabodetabekser
           Branch Office


      BOGOR                               CIKARANG                              CILEGON
      Jl. Pahlawan No.189, Ruko C.        Jl. Raya Cibarusah, Ruko Cikarang     Jl. Teuku Umar, Link. Kalang Anyar,
      RT 003 RW 014, Kel. Bondongan,      Central City Blok D 012-015, Kp.      RT 006 RW 001, Kel. Kedaleman,
      Kec. Bogor Selatan,                 Kukun, RT 012 RW 006, Kel. Ciantra,   Kec. Cibeber, Cilegon, Banten
      Kota Bogor-Jawa Barat               Kec. Cikarang Selatan, Kab. Bekasi,        0254-396810;396801;396876
           0251-8354771; 8353363;         Prov. Jawa Barat
      8355715                                  021-89117721; 89117722;
                                          89117723

      DEPOK                               JAKARTA SELATAN                       PANDEGLANG
      Jl. Dewi Sartika No. 033 B,         Jl. Mampang Prapatan Raya             Jl. Raya Serang KM. 03, Kp. Pabrik
      RT 001 RW 001, Kel. Pancoran Mas,   No. 066 A-B, RT 009 RW 003,           RT 002 RW 002, Kel. Cigadung,
      Kec. Pancoran Mas, Kota Depok,      Kel. Tegal Parang, Kec. Mampang       Kec. Karang Tanjung,
      Prov. Jawa Barat                    Prapatan, Prov. DKI Jakarta           Kab. Pandeglang, Banten
           021-77278862                        021-29396010                          0253-5207411; 5207412;
                                                                                5207418

      RANGKASBITUNG                       SERANG                                TANGERANG 1
      Jl. Gunung Sari, RT 001 RW 014,     Jl. Trip Jamaksari, RT 001 RW 015,    Jl. Boulevard Gading Serpong,
      Kel. Muaraciujung Timur,            Kel. Bungur Indah, Kec. Sumur         Ruko Serenade Center Blok A
      Kec. Rangkasbitung, Kab. Lebak,     Pecung, Kota Serang, Prov. Banten     No. 016-017, Kel. Pakulonan Barat,
      Prov. Banten                             081-59124119, 59124131           Kec. Kelapa dua, Kab. Tangerang,
           0252-5551836; 5551736;                                               Prov. Banten
      5551636                                                                        021-29507010

      TANGERANG 2                         TANGERANG 5 (CURUG)                   TANGERANG 7 (CIPONDOH)
      Jl. Citra Raya Eco Park,            Jl. Raya STPI Curug Km. 005,          Jl. Maulana Hasanudin, Ruko Primier
      Ruko Grand Arcade VC 001            RT 002 RW 001, Kel. Curug Kulon,      No. M 032-033, Kel. Cipondoh,
      No. 122 & 126, Kel. Mekar Bakti,    Kec. Curug, Prov.Banten               Kec. Cipondoh, Kota Tangerang,
      Kec. Panongan, Tangerang,                021-59497628, 59498034           Prov. Banten
      Prov. Banten                                                                   087808684320
           021-59661510; 59661796


      TANGERANG SELATAN
      (PAMULANG)
      Jl. Jombang Raya No. 089,
      Kel. Parigi, Kec. Pondok Aren,
      Kota Tangerang Selatan,
      Prov. Banten
           021-7311189, 7311832
Page 483
   PT BUSSAN AUTO FINANCE




                                                                                                                       HIGHLIGHTS
                                                                                                                       PERFORMANCE
     KSKC

CILEUNGSI                                JATIWARINGIN                            AREN JAYA PERUMNAS 3
Kp. Cibeureum pertigaan samick           Jl. Jatirahayu No. 029,                 Jl. Nusantara Raya No. 040 C,
RT 006 RW 005, Kel. Cileungsi Kidul,     RT 007 RW 003, Kel. Jatirahayu,         Kel. Aren Jaya, Kec. Bekasi Timur,
Kec. Cileungsi, Kab. Bogor,              Kec. Pondok Melati, Prov. Jawa Barat    Kota Bekasi, Prov. Jawa Barat




                                                                                                                       REPORT
                                                                                                                       MANAGEMENT
Prov. Jawa Barat                              081384713207
    021- 8233913; 8233668;
82494389

CENGKARENG                               CILEUNGSI                               CIPULIR (JAKARTA SELATAN)
Jl. Cemara Raya No 005 A,                Kp. Cibeureum, RT 006 RW 005,           Jl. Panjang Cidodol No. 030 A,
RT 001 RW 001, Kel. Cengkareng           Kel. Cileungsi Kidul, Kec. Cileungsi,   Kel. Cipulir, Kec. Kebayoran Lama,
Barat, Kec. Cengkareng,                  Kab. Bogor, Prov. Jawa Barat            Kota Jakarta Selatan,
Kota Jakarta Barat, DKI Jakarta                                                  Prov. DKI Jakarta

CONDET                                   GANDUL (JAKARTA SELATAN)                JATIUWUNG (TANGERANG 1)
Jl. Raya Condet No. 022,                 Jl. Raya Gandul No. 016 D,              Jl. M. Toha Km. 038, RT001 RW001,




                                                                                                                       PROFILE
                                                                                                                       CORPORATE
RT 003 RW 004, Kel. Batu Ampar,          Kel. Gandul, Kec. Cinere, Kota Depok,   Kel. Periuk Jaya, Kec. Periuk,
Kec. Kramat Jati, Kota Jakarta           Prov. Jawa Barat                        Kota Tangerang, Prov. Banten
Timur, Prov. DKI Jakarta

JATIWARINGIN                             KLENDER (BEKASI 2)                      PASAR MINGGU (JAKARTA
Jl. Jatirahayu No. 029,                  Jl. Raya Wijaya Kusuma No. 005,         SELATAN)
RT007 RW 003, Kel. Jatirahayu,           RT 007 RW 006, Perumnas Klender,        Jl. Raya Pasar Minggu No. 026,
Kec. Pondok Melati, Kota Bekasi,         Kel. Malaka Jaya, Kec. Duren Sawit,     RT 006 RW 001, Kel. Pasar Minggu,
Prov. Jawa Barat                         Prov. DKI Jakarta                       Kec. Pasar Minggu, Kota Jakarta
                                                                                 Selatan, Prov. DKI Jakarta




                                                                                                                       DISCUSSION & ANALYSIS
                                                                                                                       MANAGEMENT
SAWANGAN                                 SUKMAJAYA                               SUMUR BATU
Jl. Raya Bojongsari No. 099 E,           Jl. Proklamasi Blok A No. 011,          Jl Raya Kodam V Jaya No.009,
Kel. Bojongsari Baru, Kec. Bojongsari,   Kel. Mekarjaya, Kec. Sukmajaya,         RT 001 RW 007, Kel. Sumur Batu,
Kota Depok , Prov. Jawa Barat            Kota Depok, Prov. Jawa Barat            Kec. Kemayoran, Kota Jakarta Pusat,
    081315710805                                                                 Prov. DKI Jakarta

TELUK GONG
Jl. V No. 003 Teluk Gong,
RT003 RW006, Kel. Penjaringan,
Kec. Penjaringan, Kota Jakarta
Utara, Prov. DKI Jakarta




Jambi
                                                                                                                       GOVERNANCE
                                                                                                                       CORPORATE




     Branch Office


BUNGO                                    JAMBI                                   MUARA BULIAN
Jl. Lintas Sumatera, RT 005 RW 002,      Jl. Gajah Mada No. 010 D-E,             Jl. Gajah Mada No. 095,
Kel. Bungo Barat, Kec. Pasar Muara       RT 030, Kel. Labak Bandung,             Kec. Muara Bulian, Kab. Batanghari,
Bungo, Kab. Bungo, Prov. Jambi           Kec. Jelutung, Prov. Jambi              Prov. Jambi
     0747-323280                              0741-27971; 20745; 20203;              0743-21424; 21102
                                         20137
                                                                                                                       REPORT
                                                                                                                       SUSTAINABILITY




   2023 ANNUAL REPORT & SUSTAINABILITY REPORT
Page 484
CORPORATE
SUPPORTING DATA




      Jawa Barat
           Branch Office


      BANDUNG                              BANJAR                                 CIANJUR
      Jl. Mochamad Toha No. 162,           Jl. H. Didi Kartasasmita Banjar,       Jl. Ir. H. Juanda No. 36,
      Kel. Pelindung Hewan,                Ruko Nabila No. 010 G, Kec. Cibulan,   Bojongherang, Cianjur
      Kec. Astana Anyar, Kota Bandung,     Kota Banjar, Prov. Jawa Barat               0263-280929; 280791; 280852
      Prov. Jawa Barat.                         0265-2730157; 2730158;
           022-5204063, 5204963,           743820
      5206583

      CIKAMPEK- KARAWANG                   CIREBON                                GARUT
      Jl. Jend. Sudirman No. 100,          Jl. Siliwangi No. 020 C,               Jl. Cikuray No. 073, Kel. Regol,
      Ruko Sudirman Centre Blok B9         Kel. Kesenden, Kec. Kejaksan,          Kec. Garut Kota, Kab. Garut,
      dan B10, Kec. Cikampek,              Kota Cirebon, Prov. Jawa Barat         Prov. Jabar
      Kota Karawang, Prov. Jawa Barat           0231-8300235; 8300236;                 0262-232040; 8705740;
           0264-8387930; 8387931;          8805891                                8705725
      8387932

      JATIBARANG                           KARAWANG                               KUNINGAN
      Jl. Tentara Pelajar, Ruko Sapphire   Jl. Ahmad Yani No. 025 F,              Jl. Siliwangi No. 176,
      Residence No. 004, Kel. Kebulen,     Kel. Karang Pawitan, Kec. Karawang     Kec. Ciawi Gebang, Kab. Kuningan,
      Kec. Jatibarang, Kab. Indramayu,     Barat, Kab. Karawang,                  Prov. Jawa Barat
      Prov. Jawa Barat                     Prov. Jawa Barat                            0232- 871618; 081617454147
            0234-354419                         0267-400712; 400801; 414024;
                                           8454339

      MAJALENGKA                           PURWAKARTA                             SUBANG
      Jatiwangi Square Blok A No. 003,     Jl. KK. Singawinata No. 057,           Jl. A. Yani No. 047, RT 012 RW 004,
      Kel. Sutawangi, Kec. Jatiwangi,      RT 030, RW 004, Kel. Nagrikidul,       Kel. Pasirkareumbi, Kec. Subang,
      Kab. Majalengka, Prov. Jawa Barat    Kec. Purwakarta, Kab. Purwakarta,      Kab. Subang, Prov. Jawa Barat
          0233-8886667; 8886668;           Prov. Jawa Barat                            0260-415042 (Hunting)
      8886669                                  0264-204180

      SUKABUMI                             SUMEDANG                               TASIKMALAYA
      Jl. Pajagalan No. 035, Danalaga      Lingkungan Panyingkiran SD,            Jl. Badan Keamanan Rakyat,
      Square Blok B6-B8, Kel. Nyomplong,   RT 002 RW 002, Kel. Situ,              RT 002 RW 007, Kel. Kahuripan,
      Kec. Warudoyong, Sukabumi,           Kec. Sumedang Utara,                   Kec. Tawang Kota, Kota Tasikmalaya,
      Prov. Jawa Barat                     Kab. Sumedang, Prov. Jawa Barat        Prov. Jawa Barat
           0266-229008; 217724; 217734;        0-08159750874;08159750857;              0265-311322; 340525
      217750                               08159750869




           KSKC


      CIKAJANG (GARUT)                     KARANG NUNGGAL                         KARANGSINOM
      Kp. Pasar Kulon, RT 008 RW 001,      Kp. Rancapetir No. 016,                Jl. Raya Pantura Karangsinom
      Kel. Padasuka, Kec. Cikajang,        RT 014 RW 006, Kel. Karangmekar,       Kandanghaur, RT 02 RW 03,
      Kab. Garut, Prov. Jawa Barat         Kec. Karangnunggal,                    Desa Karang Anyar,
                                           Kota Tasikmalaya, Prov. Jawa Barat     Kab. Indramayu, Jawa Barat

      KOPO (BANDUNG)                       KOSAMBI                                LEMBANG (BANDUNG)
      Jl. Kopo No. 602, RT 003 RW 002,     Jl. Raya Kosambi No. 009,              Kampung Panorama, Kel. Lembang,
      Kel. Margasuka, Kec. Babakan         RT 020 RW 006, Kel. Duren,             Kec. Lembang, Kab. Bandung,
      Ciparay, Kota Bandung,               Kec. Klari, Kab. Karawang,             Prov. Jawa Barat
      Prov. Jawa Barat                     Prov. Jawa Barat
Page 485
    PT BUSSAN AUTO FINANCE




                                                                                                                 HIGHLIGHTS
                                                                                                                 PERFORMANCE
PLERED                                  SINDANG LAUT                       TAWELI
Jl. Fatahillah Blok Sejati No. A 004,   Jl. MT Haryono No. 054,            Jl. Baiya Raya, Kel. Tawaeli,
Kel. Cilik Weru, Kab. Cirebon,          RT 008 RW 002, Kel. Lemahabang     Kec. Tawaeli, Prov. Sulawesi Tengah
Prov. Jawa Barat                        Wetan, Kec. Lemahabang,
     08112220975                        Kota Cirebon, Prov. Jawa Barat

UJUNG BERUNG (BANDUNG 1)




                                                                                                                 REPORT
                                                                                                                 MANAGEMENT
Kampung Cigending,
RT 003 RW 002, Kel. Pasir Wangi,
Kec. Ujung Berung, Kota Bandung,
Prov. Jawa Barat




Jawa Tengah
     Branch Office




                                                                                                                 PROFILE
                                                                                                                 CORPORATE
CILACAP                                 JEPARA                             KEBUMEN
Jl. Letjen Suprapto, Komplek Ruko       Jl. Cokroaminoto No. 010,          Jl Pemuda No. 122,
Dua Lima No. 002, Kel. Sidanegara,      Kel. Demaan, Kec, Jepara,          RT 004 RW 002, Kel. Panjer,
Kec. Cilacap Tengah, Kab. Cilacap,      Prov. Jawa Tengah                  Kec. Kebumen, Kab. Kebumen,
Prov. JawaTengah                             0291-597822; 597821; 59229    Prov. Jawa Tengah
     0282-537691; 537692; 537893                                               0287-385610; 385611

KENDAL                                  KLATEN                             KUDUS
Jl Soekarno No. 024, Kel. Bugangin,     Jl. Rajawali No. 051,              Jl. Ronggolawe No. 024-025,




                                                                                                                 DISCUSSION & ANALYSIS
                                                                                                                 MANAGEMENT
Kec. Kota Kendal, Kab Kendal,           RT 004 RW 004, Kel. Bareng,        Kel. Getas Pejaten, Kec. Jati,
Prov. Jawa Tengah                       Kec. Klaten Tengah, Kab. Klaten,   Kota Kudus, Prov. Jawa Tengah
    0294-382098; 382344; 382867;        Prov. Jawa Tengah                       024-445685; 4251626;
388205                                       0272-322240                   4250120

MAGELANG                                MAJENANG                           PATI
Jl. Mayor Bambang Sugeng,               Jl. Diponegoro No. 105 B,          Jl. A. Yani No. 038, Kel. Winong,
Metro Square Blok A3-A4,                Kel. Jenang, Kec. Majenang,        Kec. Pati, Kab. Pati,
Kec. Mertoyudan, Kota Magelang,         Kab. Cilacap, Prov. Jawa Tengah    Prov. JawaTengah
Prov. Jawa Tengah                            0280-623690 / 08118112624          0295-384137; 384266; 384613
     0293-326656; 326165; 325967

PEKALONGAN                              PURWODADI                          PURWOKERTO
Jl. Tentara Pelajar Ruko 2CC,           Jl. Gajah Mada, RT 006 RW 017,     Jl. Martadireja I No. 782,
RT 003 RW 001, Kel. Kandang             Kel. Kuripan, Kec. Purwodadi,      RT 004 RW 001, Kel. Arcawinangun,
Panjang, Kec. Pekalongan Utara,         Kab. Grobogan, Prov. Jawa Tengah   Kec. Purwokerto Timur,
                                                                                                                 GOVERNANCE
                                                                                                                 CORPORATE




Kota Pekalongan, Prov. Jawa Tengah      t. 0292-425107; 425108; 425109;    Kab. Banyumas, Prov. Jawa Tengah
t. 0285-431426; 431679; 435064          424607                             t. 0281- 623788; 6510011;
                                                                           6510012

REMBANG                                 SALATIGA                           SEMARANG
Jl. Dr. Soetomo No. 008,                Jl. Fatmawati No. 188,             Jl. Sompok Lama No. 030,
RT 002 RW 001, Kel. Kutoharjo,          Kel. Blotongan, Kec. Sidorejo,     Kel. Peterongan, Kec. Semarang
Kec. Rembang, Kab. Rembang,             Kota Salatiga, Prov. Jawa Tengah   Selatan, Kota Semarang,
Prov. Jawa Tengah                            0298-3404636; 3404637;        Prov. Jawa Tengah
     0295-5504684; 5504685;             3404638; 3404529                        024-76442083, 76442115,
692530                                                                     76442091
                                                                                                                 REPORT
                                                                                                                 SUSTAINABILITY




    2023 ANNUAL REPORT & SUSTAINABILITY REPORT
Page 486
CORPORATE
SUPPORTING DATA




      SOLO                                     SRAGEN                               SUKOHARJO
      Jl. Sutan Syahrir No. 095,               Jl. Raya Sokowati No.408,            Jl. Slamet Riyadi No. 081,
      Kel. Kepatihan Kulon, Kec. Jebres,       Kel. Sragen Kulon, Kec. Sragen,      RT 001 RW 002, Kel. Joho,
      Kota Surakarta, Prov. Jawa Tengah        Kota Sragen, Prov. Jawa Tengah       Kec. Sukoharjo, Kab. Sukoharjo,
           0271-657007, 657008, 639700              0271-8821093; 8821094;          Prov. JawaTengah
                                               8821095                                   0271-593779; 08118584095

      TEGAL                                    WONOSOBO                             YOGYAKARTA
      Jl. Kolonel Sugiono No. 051,             Jl. Pemuda No. 015,                  Jl. Ring Road Utara, Ruko Permai III
      Kel. Kemandungan, Kec. Tegal Barat,      Kel. Wonosobo Timur,                 Pandega No. 009-011, Kel. Sinduadi,
      Kota Tegal, Prov. Jawa Tengah            Kec. Wonosobo, Kab. Wonosobo,        Kec. Mlati, Kota Sleman,
           0283-352886; 321386                 Prov. Jawa Tengah                    Prov. D.I Yogyakarta
                                                    0286- 321513; 322983                 0274-886905; 886906




           KSKC


      BLORA                                    BOYOLALI                             BREBES
      Jl. Gatot Subroto No. 063,               Jl. Garuda No. 003,                  Jl. Ahmadyani No. 092,
      Kel. Kauman, Kec. Blora,                 Kel. Banaran, Kec. Boyolali,         RT 004 RW 018, Kel. Brebes,
      Kab. Blora, Prov. Jawa Tengah            Kab. Boyolali, Prov. Jawa Tengah     Kec. Brebes, Kab. Brebes,
           0296-532080                              0276-323587                     Prov. Jawa Tengah
                                                                                         085325686387

      BANTUL (YOGYAKARTA)                      KARANGANYAR                          KARTASURA
      Jl. Muh Yamin No. 006 E,                 Jl. Raya Solo Tawangmangu,           Jl. Jenderal Sudirman, Kel. Pucangan,
      Ruko Pasar, Kel. Bantul , Kec. Bantul,   Kel. Papahan, Kec. Karanganyar,      Kec. Kartasura, Kab. Sukoharjo,
      Prov. DKI Yogyakarta                     Prov. Jawa Tengah                    Prov. Jawa Tengah

      NGALIYAN                                 PASAR BANDARJO UNGARAN               PEMALANG
      Jl. Prof Dr Hamka Ruko Segitiga          (SALATIGA)                           Jl. Jend. Sudirman Timur No.124 B,
      Emas Blok B, Kel. Ngaliyan,              Jalan Moch Yamin 17 D                Kel. Mulyoharjo, Kec. Pemalang.
      Kec. Ngaliyan, Kota Semarang,            Kel. Ungaran Kec. Ungaran Barat      Kab. Pemalang, Prov. Jawa Tengah
      Prov. Jawa Tengah                        Kab. Semarang Prov. Jawa Tengah


      PURBALINGGA                              TELOGOSARI (SEMARANG 1)
      Jl. Sukarno Hatta No 002,                Jl. Arteri Soekarno Hatta,
      Kel. Kalikabong, Kec. Kalimanah,         RT 001 RW 004, Tlogosari,
      Kab. Purbalingga, Prov. Jawa Tengah      Kel. Palebon, Kec. Pedurungan,
                                               Kota Semarang, Prov. Jawa Timur




      Jawa Timur
           Branch Office


      BANYUWANGI                               BOJONEGORO                           GRESIK
      Jl. Perumahan Bukit Emas 002 L,          Jl. Basuki Rahmad No. 044 A-B,       Jl. Veteran No. 074, Kel. Sidomoro,
      Residence Blok B-04, Kel. Giri,          Kel. MojoKampung, Kec. Bojonegoro,   Kec. Kebomas, Kab. Gresik,
      Kec. Giri, Kab. Banyuwangi,              Kab. Bojonegoro, Prov. Jawa Timur    Prov. Jawa Timur
      Prov. Jawa Timur                              0353-886485                          031-3979555; 3990167;
           0333-413601; 413602;                                                     3990166, 3990168
Page 487
   PT BUSSAN AUTO FINANCE




                                                                                                                  HIGHLIGHTS
                                                                                                                  PERFORMANCE
JEMBER                                  JOMBANG                             KEPANJEN
Jl. Letjen Panjaitan No. 125,           Kel. Kepuh Kembeng,                 Jl. Ahmad Yani No. 004 Kav. A-007,
Kel. Sumbersari, Kec. Sumbersari,       Kec. Peterongan, Kota Jombang,      Kel. Ardirejo, Kec. Kepanjen,
Kab. Jember, Prov. Jawa Timur           Prov. Jawa Timur                    Kab. Malang , Prov. Jawa Timur
     0331-486820; 427300, 410447            0321-850007;851845;855336            0341-393838;393848

LUMAJANG                                MADURA                              MALANG




                                                                                                                  REPORT
                                                                                                                  MANAGEMENT
Jl. Ahmad Yani No. 084,                 Jl. Remartadinata, RT 005 RW 001,   Jl. Letjend Suparman No. 082,
Kel. Kepuharjo, Kec. Lumajang,          Kel. Mlajah, Kec. Bangkalan,        Kavling 005 & 006, Kel. Purwantoro,
Prov. Jawa Timur                        Kab. Bangkalan, Prov. Jawa Timur    Kec. Blimbing, Kab. Malang,
     0334-892550; 894771; 894772;            031-3061505; 3061650           Prov. Jawa Timur
894773                                                                           0341-410175

MOJOKERTO                               PAMEKASAN                           PASURUAN
Jl. Kyai Haji Ahmad Dahlan 001,         Jl. Raya Purba No. 012,             Jl. Hasyim Asyari, RT 001 RW 008,
RT 003 RW 003, Kel. Sentanan,           Kel. Barurambat Kota, Kec.          Kel. Bakalan, Kec. Bugulkidul,
Kec. Kranggan, Kota Mojokerto,          Pamekasan, Kab. Pamekasan,          Kota Pasuruan, Prov. Jawa Timur
Prov. Jawa Timur                        Prov. Jawa Timur                        0343-431441; 413888; 419086
     0321-394319; 381910; 381911             0324-335671; 335672; 335673




                                                                                                                  PROFILE
                                                                                                                  CORPORATE
PROBOLINGGO                             SIDOARJO                            SITUBONDO
Jl. Dokter Sutomo No. 074 A-B,          Jl. Diponegoro No. 083,             Jl. PB Sudirman No. 037,
Kel. Tisnonegaran, Kec. Kanigaran,      Kec. Sidoarjo, Prov. Jawa Timur     RT 003 RW 004, Kel. Patokan,
Kota Probolinggo, Prov. Jawa Timur           031-8054330-31-32              Kec. Situbondo, Kab. Situbondo,
     0335-435530; 429240; 429057                                            Prov. Jawa Timur
                                                                                0338- 673320; 673322

SURABAYA                                TUBAN
Jl. Raya Gubeng No. 006,                Dusun Jedhung, RT 001 RW 005,
Kec. Gubeng, Kota Surabaya,             Kel. Bogorejo, Kec. Merakurak,




                                                                                                                  DISCUSSION & ANALYSIS
                                                                                                                  MANAGEMENT
Prov. Jawa Timur                        Kab. Tuban, Prov. Jawa Timur
     031-99448385                           0356-331304; 332395; 332396




     KSKC


BATU (MALANG)                           BENOWO                              BLORA
Jl. Dewi Sartika No. 077, Kel. Temas,   Jl. Raya Benowo No. 063,            Jl. Gatot Subroto No. 063,
Kec. Batu, Kota Batu,                   RT 001 RW 001, Kel. Benowo, Kec.    Kec. Blora, Prov. Jawa Tengah.
Prov. Jawa Timur                        Pakal, Kota Surabaya,                    0296-532080
                                        Prov. JawaTimur

BONDOWOSO                               LONTAR                              MOJOSARI
                                                                                                                  GOVERNANCE
                                                                                                                  CORPORATE



Jl. KH. Wahid hasyim No.094,            Jl. Raya Lontar No. 128,            Jl. Brawijaya No.134,
Kel. Dabasah, Kec. Bondowoso,           RT 03 RW 01, Kel. Lontar,           Kel. Tunggalpager, Kec. Pungging,
Kota Bondowoso, Prov. Jawa Timur        Kec. Sambikerep, Kota Surabaya,     Kab. Mojokerto, Prov. Jawa Timur
                                        Jawa Timur

MULYOREJO                               PANDAAN                             PASAR WAGE
Jl. Kalijudan No. 022,                  Taman Dayu CBD Little Sanghai       Jl. Arya Bebangah No. 240,
Kel. Pacar Kembang,                     Blok E-22, Kel. Karangjati,         Kel. Bangah, Kec. Gedangan,
Kec. Tambak Sari, Kota Surabaya,        Kec. Pandaan, Kab. Pasuruan,        Kab. Sidoarjo, Prov. Jawa Timur
Prov. Jawa Timur                        Prov. Jawa Timur

RUNGKUT (SURABAYA)
Jalan Rungkut Kidul No. 50A
Kel. Rungkut Kidul, Kec. Rungkut
                                                                                                                  REPORT
                                                                                                                  SUSTAINABILITY




Kotamadya Surabaya




   2023 ANNUAL REPORT & SUSTAINABILITY REPORT
Page 488
CORPORATE
SUPPORTING DATA




      Kalimantan
           Branch Office


      BALIKPAPAN                          BANJARMASIN                           BATULICIN
      Jl. Letkol Pol. HM. Asmawi Arbain   Jl. Sultan Adam, RT 028, Kel. Surgi   Jl. Raya Batulicin, RT 001,
      No. 045, RT 040, Kel. Gunung        Mufti, Kec. Banjarmasin Utara,        Kel. Kampung Baru, Kec. Simpang
      Bahagia, Kec. Balikpapan Selatan,   Kota Banjarmasin,                     Empat, Kab. Tanah Bumbu,
      Kota Balikpapan,                    Prov. Kalimantan Selatan              Prov. Kalimantan Selatan
      Prov. Kalimantan Timur                   0511-3261968;321951                   0518-75716;75717
           542-7206766; 7206767;
      7206780

      BERAU                               BONTANG                               MARTAPURA
      S.M. Aminuddin, RT 009 RW 004,      Jl. Juanda, Kel. Tanjung Laut,        Jl. Ahmad Yani KM. 038,
      Kel. Bugis, Kec. Tg. Redeb,         Kec. Bontang Selatan, Kota Bontang,   Kel. Sungai Paring, Kec. Martapura,
      Prov. Kalimantan Timur              Prov. Kalimantan Timur                Prov. Kalimantan Selatan
          0554-26988; 26989                    0548-29051; 23496; 23431              511-4722149, 4722119,
                                                                                085100325888, 08119424846

      MUARA TEWEH                         PALANGKARAYA                          PANGKALAN BUN
      Jl. Padat Karya, RT 019 RW 006,     Jl. Seth Adji, Kel. Panarung,         Jl. Ahmad Yani Km. 001 No. 010,
      Kel. Lanjas, Kec. Teweh Utara,      Kec. Pahandut, Kota Palangkaraya,     RT 010, Kel. Baru Pangkalan Bun,
      Kab. Barito Utara,                  Prov. Kalimantan Tengah               Kab. Kotawaringin Barat,
      Prov. Kalimantan Tengah                  0536-3242751; 3242753;           Prov. Kalimantan Tengah
           0519-24899; 24489              3242752                                    0532-23028; 25156; 27026

      PELAIHARI                           RANTAU                                SAMARINDA
      Jl. KH. Mansyur No. 003-004,        Jl. Tarantang, RT 016 RW 001,         Jl. P. Hidayahtullah No. 013,
      RT 013 RW 004, Kel. Angsau,         Kel. Rangda Malingkung, Kec. Tapin    Kel.Pelabuhan, Kec. Samarinda Kota,
      Kec. Pelaihari, Kab. Tanah Laut,    Utara, Kab. Tapin,                    Kota Samarinda,
      Prov. Kalimantan Selatan            Prov. Kalimantan Selatan              Prov. Kalimantan Timur
           0512-22999; 22707; 22408            0517- 32515; 32514                    0541-202045

      SAMPIT                              TANAH GROGOT                          TANJUNG
      Jl. M.T. Haryono No. 083, Sampit,   Jl. Modang No. 119,                   Jl. Ir. Pangeran Haji Muhammad
      Kab. Kotawaringin Timur,            RT 006 RW 002, Kel. Tanah Grogot,     Noor No. 002, RT 007 RW 003,
      Prov. Kalimantan Tengah             Kab. Paser, Prov. Kalimantan Timur    Kel. Mabu’un, Kec. Murung Pudak,
           0531-33467; 30991                   0543-24521; 22965                Kab. Tabalong,
                                                                                Prov. Kalimantan Selatan
                                                                                     0526-2022947; 2023148;
                                                                                2023149

      TARAKAN                             TENGGARONG
      Jl. Kusuma Bangsa No. 112,          Jl. Pesut RT 007, Kel. Timbau,
      RT 002, Kel. Gunung Lingkas,        Kec. Tenggarong, Kab. Kutai
      Kec. Tarakan Timur, Kota Tarakan,   Kertanegara,
      Kalimantan Utara                    Prov. Kalimantan Timur
           551-51988;24755                     0541-6667205 ; 6669477
Page 489
    PT BUSSAN AUTO FINANCE




                                                                                                                      HIGHLIGHTS
                                                                                                                      PERFORMANCE
      KSKC


KAPUAS                                  KASONGAN                               SANGGAU
Jl. Ahmad Yani No. 076,                 Jl. Tjilik Riwut Km 001,               Jl. Ahmad Yani No. 010,
Kel. Selat Hilir, Kec. Selat,           Kel. Kasongan Lama, Kec. Katingan      RT 003 RW001, Kel. Ilir Kota,




                                                                                                                      REPORT
                                                                                                                      MANAGEMENT
Kab. Kapuas,                            Hilir, Kab. Katingan Kasongan,         Kec. Kapuas, Kota Sanggau,
Prov. Kalimantan Tengah.                Prov. Kalimantan Tengah                Prov. Kalimantan Barat
     0513-24310                              0536-4041299                           082131027436

TANJUNG SELOR                           ALALAK (BANJARMASIN)                   KAPUAS
Jl. Jeruk, RT 013, Kel. Tanjung Selor   Jl. HKSN, RT 019, Kel. Kuin Utara,     Jl. Ahmad Yani No. 076,
Hilir, Kec. Tanjung Selor,              Kec. Banjarmasin Utara,                Kel. Selat Hilir, Kec. Selat,
Kab. Bulungan,                          Prov. Kalimantan Selatan               Kab. Kapuas,
Prov. Kalimantan Utara                                                         Prov. Kalimantan Tengah.
     0552-2020050                                                                   0513-24310

KASONGAN                                LOA JANAN (SAMARINDA)                  PASAR RAJAWALI




                                                                                                                      PROFILE
                                                                                                                      CORPORATE
Jl. Tjilik Riwut Km 001,                Jl. Cipto Mangunkusumo No. 057,        Jl. Rajawali Km. 5,5,
Kel. Kasongan Lama, Kec. Katingan       RT 014, Kel. Sengkotek,                Kel. Bukit Tunggal, Kec. Jekan Raya,
Hilir, Kab. Katingan Kasongan,          Kec. Loa Janan Ilir, Kota Samarinda,   Kota Palangkaraya,
Prov. Kalimantan Tengah                 Prov. Kalimantan Timur                 Prov. Kalimantan Tengah
     0536-4041299




Lampung




                                                                                                                      DISCUSSION & ANALYSIS
                                                                                                                      MANAGEMENT
      Branch Office


LAMPUNG
Jl. Teuku Umar, RT 002 RW 01,
Kel. Sidodadi, Kec. Kedaton,
Kota Bandar Lampung,
Prov. Lampung
     0721-788630; 788861; 789255;
788997; 788979




Madiun Kediri
                                                                                                                      GOVERNANCE
                                                                                                                      CORPORATE




      Branch Office


BLITAR                                  KEDIRI                                 MADIUN
Jl. Kalibrantas No. 096, Kel. Kauman,   Jl. Hayam Wuruk No. 16 E,              Jl. Trunojoyo No. 114,
Kec. Kepanjen Kidul, Kota Blitar,       Desa Balowerti, Kec. Kota, Kota        Kec. Mangunharjo, Kel. Nambangan
Prov. Jawa Timur                        Kediri, Prov. Jawa Timur               Kidul, Kota Madiun - Jawa Timur
     0342-815012; 816388                     0354-693440; 693441; 693000            0351-465677; 466605; 465707

TULUNG AGUNG
Jl. Ahmad Yani Barat No. 099,
Kel. Karangwaru, Kec. Tulungagung,
                                                                                                                      REPORT
                                                                                                                      SUSTAINABILITY




Kab. Tulungagung, Prov. Jawa Timur
     0355-336533; 336698; 322501




    2023 ANNUAL REPORT & SUSTAINABILITY REPORT
Page 490
CORPORATE
SUPPORTING DATA




           KSKC


      NGANJUK                               PACITAN
      Jl. Dermojoyo No. 36, Kel. Payaman,   Jl. Tentara Pelajar, Dusun Tegalrejo,
      Kec. Nganjuk,                         RT 002 RW 002,
      Kab. Nganjuk - Jawa Timur             Desa Nanggungan, Kec. Pacitan,
           0358-33088; 330882; 330883       Kab. Pacitan, Jawa Timur
                                                 0357-886327; 886706




      Makassar
           Branch Office


      BONE                                  BULUKUMBA                               MAKASSAR
      Jl. Ahmad Yani, Kel. Jeppe’e,         Jl. Kusuma Bangsa No. 088 C,            Komplek Alauddin Plaza Ruko Soho
      Kec. Tanete Riattang Barat,           Kel. Polewali, Kec. Gantarang,          No. 005-006, Kel. Gunung Sari,
      Kab. Bone                             Kab. Bulukumba,                         Kec. Rappocini, Kota Makassar,
           0481-2921410; 27043              Prov. Sulawesi Selatan                  Prov. Sulawesi Selatan
                                                 0413-2510014                          0411-898 0515

      MAKASSAR 2/MAROS                      MAMUJU                                  MAMUJU UTARA (PASANG KAYU)
      Jl. Perintis Kemerdekaan              Jl. Diponegoro, Kel. Karema,            Jl. Ir. Soekarno, Kel. Pasangkayu,
      Km. 011-012, Ruko Permata Perintis    Kec. Mamuju, Kab. Mamuju,               Kec. Pasangkayu, Kab. Mamuju
      Petak 006 & 007, Kel.Tamalanrea,      Prov. Sulawesi Barat                    Utara, Prov. Sulawesi Barat
      Kec. Tamalanrea Kota Makassar,             0426-2323716                            0457-7031904
      Prov. Sulawesi Selatan
           0411-581731; 583336; 583338

      PALOPO                                PARE-PARE                               POLMAN
      Jl. Tandipau No. 002,                 Jl. Andi Makkasau, Kel. Kampung         Jl. Jend. Sudirman No. 011 F-G,
      RT 001 RW 004, Kel. Boting,           Pisang, Kec. Soreang, Kota. Parepare,   Kel. Wonomulyo,
      Kec. Wara, Kota Palopo,               Prov. Sulawesi Selatan                  Kec. Polewali Mandar,
      Prov. Sulawesi Selatan                     0421-28701; 28702; 28703           Prov. Sulawesi Barat
           0471-325998; 326875; 22977                                                    0428-51005

      SENGKANG
      Jl. Bau Mahmud No. 062-064,
      Kel. Tedda Opu, Kec. Tempe,
      Kab. Wajo, Sengkang,
      Prov. Sulawesi Selatan
           0485-324243; 324433; 323297



           KSKC


      BELOPA                                PANGKEP                                 TORAJA
      Desa Belopa, Kec. Belopa,             Kel. Bonto Kio, Kec. Manasatene,        Jl. Pongtiku No. 477C,
      Kab. Luwu,                            Kab. Pangkajane dan Kepulauan,          Kel. Tambunan, Kec. Makale Selatan,
      Prov. Sulawesi Selatan                Prov. Sulawesi Selatan                  Kab. Tana Toraja,
         0471-3314331                           0410-2412871                        Prov. Sulawesi Selatan
                                                                                         0423-2890662
Page 491
   PT BUSSAN AUTO FINANCE




                                                                                                                       HIGHLIGHTS
                                                                                                                       PERFORMANCE
GOWA (MAKASSAR 1)                       MAROS (MAKASSAR 2)                      PACCERAKANG (MAKASSAR 2)
Jl. Mallombassang                       Jenderal Sudirman No. 131               Jl. Paccerakkang Raya
Kel. Sungguminasa Kab. Gowa             Kel. Maros, Kab. Maros                  Kel. Paccerakkang Kec. Biringkanaya
Prov. Sulawesi Selatan                  Prov. Sulawesi Selatan                  Kab. Makassar
                                                                                Prov. Sulawesi Selatan

PINRANG




                                                                                                                       REPORT
                                                                                                                       MANAGEMENT
Jl. Jend Sudirman No. 033, Kel. Jaya,
Kec. Watang Sawitto, Kota Pinrang,
Prov. Sulawesi Selatan




Manado
     Branch Office




                                                                                                                       PROFILE
                                                                                                                       CORPORATE
AMBON                                   AMURANG                                 BAU-BAU
Jl. Wolter Monginsidi,                  Lingkungan IV, Kel. Uruan Satu,         Jl. Sultan Hasanuddin No. 040,
RT 001 RW 005, Kel. Lateri,             Kec. Amurang, Kab. Minahasa             Kel. Batulo, Kec. Wolio, Kodya Bau-
Kec. Baguala, Kota Ambon,               Selatan, Prov. Sulawesi Utara           Bau, Prov. Sulawesi Tenggara
Prov. Maluku                                0430-21592;21593 ;                       0402-2826254
     0911-356153; 356157                085240422552


GORONTALO                               KENDARI                                 KOLAKA
Jl. Jenderal Sudirman No. 098,          Jl. Brigjend. M. Joenoes,               Jl. Pramuka No. 077, Kel. Lamokato,
Kel. Limba U II, Kec. Kota Selatan,     Komp. Senapati Land Blok 021,           Kec. Kolaka, Prov. Sulawesi Tenggara




                                                                                                                       DISCUSSION & ANALYSIS
                                                                                                                       MANAGEMENT
Prov. Gorontalo                         Kel. Bende, Kec. Kadia, Kota Kendari,        0405-2321884;2322398
     0435-’08119635173                  Prov. Sulawesi Tenggara
                                             0401-3135101; 3135102

KOTAMOBAGU                              MANADO                                  TERNATE
Jl. K.S Tubun, Kel. Sinindian,          Jl. Bethesda No. 034 E,                 Jl. Perikanan, Kel. Kota Baru,
Lingk. III, RT 006 RW 003,              Ruko No. 005, Kel. Sario Kota Baru,     Kec. Kota Ternate Tengah,
Kec. Kotamobagu Timur,                  Kec. Sario, Kota Manado,                Kota Ternate, Prov. Maluku Utara
Kota Kotamobagu 95712                   Prov. Sulawesi Utara                         0921-3121425
Sulawesi Utara                               0431-834123, 834128,
     0434-2628761 / 2628758             08112131930, 08112131931




     KSKC
                                                                                                                       GOVERNANCE
                                                                                                                       CORPORATE




BITUNG                                  AIRMADIDI                               LIMBOTO
Kel. Madidir Ure, Kec. Bitung Tengah,   Jl. Raya Manado Bitung,                 Jl. Kasmat Lahay No 024,
Kota Bitung, Prov. Sulawesi Utara       Kel. Airmadidi Atas, Kec. Airmadidi,    Kel. Hunggaluwa, Kec. Limboto,
     0438-33219                         Kota Minahasa Utara,                    Kab. Gorontalo, Prov. Gorontalo
                                        Prov. Sulawesi Utara
                                             0924-2621780

TUMINTING
Jl. Santiago, Kel. Tuminting,
Kec. Tuminting, Kota Manado,
Prov. Sulawesi Utara
                                                                                                                       REPORT
                                                                                                                       SUSTAINABILITY




   2023 ANNUAL REPORT & SUSTAINABILITY REPORT
Page 492
CORPORATE
SUPPORTING DATA




      NTB
           Branch Office


      BIMA                                MATARAM                            SUMBAWA BESAR
      Jl. Gajah Mada No. 009 Blok D-F,    Jl. Panca Usaha No. 022 C-D,       Jl. Hasanuddin No. 066, Kel. Bugis,
      Kel. Pane, Kec. Rasanae Barat,      Kel. Cilinaya, Kec. Cakranegara,   Kec. Sumbawa, Kab. Sumbawa,
      Kota Bima,                          Kota Mataram,                      Prov. Nusa Tenggara Barat
      Prov. Nusa Tenggara Barat           Prov. Nusa Tenggara Barat
           0374-44459 ; 44497                  0370-633565




      NTT
           Branch Office


      ENDE                                KUPANG                             MAUMERE
      Jl. Gatot Subroto, RT 032 RW 016,   Jl. Bundaran PU, RT 005 RW 001,    Jl. K.S Tubun, Ruko 005,
      Kel. Mautapaga, Kec. Ende Timur,    Kel. Oebufu, Kec. Oebobo,          RT 009 RW 002, Kel. Kota Baru,
      Kab. Ende,                          Kota Kupang,                       Kec. Alok Timur, Kab. Sikka Flores,
      Prov. Nusa Tenggara Timur           Prov. Nusa Tenggara Timur          Prov. Nusa Tenggara Timur
           0381-23919; 23939                   0380-831276                        0382-23033

      RUTENG
      Jl. Ranaka, RT 003 RW 002,
      Kel. Carep, Kec. Langke Rembong,
      Kab. Manggarai,
      Prov. Nusa Tenggara Timur
           0385-21499; 21525




           KSKC


      OEBOBO
      Jl. Baktikarang, Kel. Oebobo,
      Kota Kupang,
      Prov. Nusa Tenggara Timu




      Padang
           Branch Office


      PADANG                              PARIAMAN                           PASAMAN
      Jl. Proklamasi No. 051 B,           Jl. Pahlawan no. 045-046           JL. Prof Dr. Hamka,
      Kel. Alang Laweh,                   Kel. Kampung Jawa I,               Nagari Lingkuang Aua,
      Kec. Padang Selatan,                Kec. Pariaman Tengah, Pariaman     Kec. Pasaman,
      Kota Padang, Prov. Sumatra Barat         0751-93321; 93606             Kab. Pasaman Barat,
           0751-22654; 840062                                                Prov. Sumatera Barat
                                                                                 0753-466510; 466411
Page 493
   PT BUSSAN AUTO FINANCE




                                                                                                                   HIGHLIGHTS
                                                                                                                   PERFORMANCE
PAYAKUMBUH                            PESISIR SELATAN                        SOLOK
Jl. A.Yani Nomor 184,                 Jl. Jendral Sudirman Nagari,           Jl. Kyai Haji Ahmad Dahlan,
Kel. Lubuk Basilang,                  Kel. Salido, Kec. IV Jurai,            Kel. Aro IV Korong,
Kec. Payakumbuh,                      Kab. Pesisir Selatan,                  Kec. Lubuk Sikarah, Kota Solok,
Prov. Sumatra Barat                   Prov. Sumatera Barat                   Prov. Sumatera Barat
     0752-796766; 796767                   0756-465034; 465036                    0755-325566




                                                                                                                   REPORT
                                                                                                                   MANAGEMENT
SOLOK SELATAN
Nagari Pasir Talang Selatan,
Kec. Sungai Pagu, Kabupaten Solok
Selatan, Prov. Sumatera Barat
    085363514679




     KSKC


DHARMASRAYA                           SITEBA (PADANG)




                                                                                                                   PROFILE
                                                                                                                   CORPORATE
Jl. Lintas Sumatera Km. 003           Jl. Siteba No. 013,
Jorong Pasar Koto Baru, Kel. Nagari   Kel. Surau Gadang, Kec. Nanggalo,
Koto Baru, Kec. Koto Baru,            Kota Padang, Prov. Sumatera Barat
Kab. Dharmasraya,
Prov. Sumatera Barat
      0754-71774; 71742; 71782




Palembang




                                                                                                                   DISCUSSION & ANALYSIS
                                                                                                                   MANAGEMENT
     Branch Office


BATURAJA                              BENGKULU                               KAYU AGUNG
Jl. Muhammad Hatta,                   Jl. Merapi Raya, RT 005 RW 001,        Jl. Pahlawan No. 131, Kel. Jua-Jua,
RT 011 RW 005, Kel. Kemalaraja,       Kel. Kebun Tebeng, Kec. Ratu Agung,    Kec. Kayu Agung Kota,
Kec. Baturaja Timur,                  Kota Bengkulu, Prov. Bengkulu          Kab. Ogan Komering Ilir,
Kab. Ogan Komering Ulu,                   0736-347788; 347766; 21471         Prov. Sumatera Selatan
Prov. Sumatera Selatan                                                            0712-323346; 323336
    0735-324511; 323871


LAHAT                                 PALEMBANG                             PRABUMULIH
Jl. Lembayung, Kel. Manggul,          Ruko Ario Kemuning 003-004,           Jl. Padat Karya, RT 004 RW 005,
Kec. Lahat, Kab. Lahat,               Kel. Ario Kemuning, Kec. Kemuning,    Kel. Muara Dua, Kec. Prabumulih
                                                                                                                   GOVERNANCE
                                                                                                                   CORPORATE




Prov. Sumatera Selatan                Kota Palembang,                       Timur, Sumatera Selatan
     0811-1632569 ; 1239467           Prov. Sumatera Selatan                     0713-3310775; 3310048
                                         0711-5610701; 5610702;
                                      5610703; 5610704; 5610705
SEKAYU
Jl. Kolonel Wahid Udin,
Ruko No. 014, Kec. Sekayu,
Kota Musi Banyuasin,
Prov. Sumatera Selatan
    08288- 1131343; 1131344;
1131345; 1131346
                                                                                                                   REPORT
                                                                                                                   SUSTAINABILITY




   2023 ANNUAL REPORT & SUSTAINABILITY REPORT
Page 494
CORPORATE
SUPPORTING DATA




           KSKC


      PAGAR DEWA                              SAKO (PALEMBANG)                    SUKAJADI
      Jl. Haji Adam Malik, Kel Pagar Dewa,    Jl. Siaran, Ruko Musi No. 006,      Jl. Palembang Betung Km. 013,
      Kec. Selebar, Kota Bengkulu,            RT 063, Kel. Sako, Kec. Sako,       Kel. Tanah Mas, Kec. Talang Kelapa,
      Prov. Bengkulu                          Kota Palembang,                     Kota Banyuasin, Prov. Sumatera
                                              Prov. Sumatera Selatan              Selatan




      Palu
           Branch Office


      AMPANA                                  LUWUK                               MOROWALI
      Jl. Ahmad Yani, Kel. Dondo,             Jl. DR. Moh. Hatta Km. 005,         Jl. Trans Sulawesi, Kel. Beteleme,
      Kec. Ratolindo, kab Tojo Una-Una,       Kec. Luwuk, Kab. Banggai, Prov.     Kec. Lembo, Kab. Morowali Utara,
      Prov. Sulawesi Tengah                   Sulawesi Tengah                     Prov. Sulawesi Tengah
           08111213550, 08111213553,               0461-324649                         0852-16359478
      08111213554

      PALU                                    POSO                                TOLI-TOLI
      Jl. Wolter Monginsidi No. 119,          Jl. Pulau Sumatera RT 008 RW 003,   Jl. Usman Binol, Kel. Baru,
      Kel. Lolu Selatan, Kec. Palu Selatan,   Kel. Gebangrejo Timur,              Kec. Baolan, Kab. Toli Toli
      Kota Palu, Prov. Sulawesi Tengah        Kec. Poso Kota, Kab. Poso,               0453-21133
          0451-427133; 427178; 427158;        Prov. Sulawesi Tengah
      427145                                       0452-3224679




           KSKC


      BUNGKU                                  DONGGALA
      Kel. Bahoruru, Kec. Bungku Tengah,      Jl. Trans Palu Donggala,
      Kab. Morowali, Prov. Sulawesi           Kel. Watusampu, Kec. Ulujadi,
      Tengah                                  Kota Palu, Prov. Sulawesi Tengah
           0-0853 2569 2351




      Papua
           Branch Office


      JAYAPURA                                MANOKWARI                           MERAUKE
      Kel. Vim, Kec. Jayapura Selatan,        Jl. Trikora Wosi, Kel. Wosi,        Jl. Raya Mandala Bampel,
      Kota Jayapura, Prov. Papua              Kec. Manokwari Barat,               RT 004 RW 001, Kel. Mandala,
          0967-586472;                        Kab. Manokwari, Prov. Papua Barat   Kec. Merauke, Kota Merauke,
                                                   0986-212543                    Prov. Papua
                                                                                       0971-326034; 326043; 326044
Page 495
   PT BUSSAN AUTO FINANCE




                                                                                                                HIGHLIGHTS
                                                                                                                PERFORMANCE
NABIRE                                 SORONG                                 TIMIKA
Jl. Remartadinata, RT 004 RW 002,      Jl. Pramuka, Kel. Remu Utara,          Jl Belibis, RT 006 RW 015,
Kel. Oyehe, Kec. Distrik Nabire,       Kec. Sorong, Kota Sorong               Kel. Otomona, Kec. Mimika baru,
Kab. Nabire, Prov. Papua                    0951-328071                       Kota Timika, Prov. Papua
     0984-25472                                                                   0901-3269150




                                                                                                                REPORT
                                                                                                                MANAGEMENT
Pontianak
     Branch Office


PONTIANAK                              SINGKAWANG
Jl. Perdana, Komplek Rukan Perdana     Jl. Alianyang, RT 034, RW 014,
Square Blok C-010, Kel. Parit Tokaya   Kel. Pasiran, Kec. Singkawang Barat,
Kec. Pontianak Selatan,                Kota Singkawang,




                                                                                                                PROFILE
                                                                                                                CORPORATE
Kota Pontianak                         Prov. Kalimantan Barat
     0561-8174450; 8173025;                 0562-635444; 640601
8176868                                     0562-631953



     POS


SANGGAU
Jl. Ahmad Yani No. 010,




                                                                                                                DISCUSSION & ANALYSIS
                                                                                                                MANAGEMENT
RT003 RW001, Kel. Ilir Kota,
Kec. Kapuas, Sanggau,
Prov. Kalimantan Barat




Sulawesi
     Branch Office


BELOPA                                 BITUNG                                 BUNGKU
Jl. Topoka No. 125, Kec. Belopa,       Jl. Madidir Ure, Kec. Bitung Tengah,   Jl. Trans Sulawesi Bahoruru,
Kab. Luwu, Prov. Sulawesi Selatan.     Kota Bitung, Prov. Sulawesi Utara.     Kab. Morowali,
     0471-3314331                           0438-33219                        Prov. Sulawesi Tengah.
                                                                                                                GOVERNANCE
                                                                                                                CORPORATE




                                                                                  0853 2569 2351

PANGKEP                                TORAJA
Jl. Poros Sultan Hasanuddin No. 080,   Jl. Pongtiku No. 477 C,
Kel. Pangkajene,                       Kel. Tambunan, Kec. Makale Selatan,
Kab. Pangkajene dan Kepulauan,         Kab. Tanah Toraja,
Prov. Sulawesi Selatan                 Prov. Sulawesi Selatan
     0410-2412871                           0423-2890662
                                                                                                                REPORT
                                                                                                                SUSTAINABILITY




   2023 ANNUAL REPORT & SUSTAINABILITY REPORT
Page 496
CORPORATE
SUPPORTING DATA




      Sumatera Utara & Riau
           Branch Office


      BANGKINANG                            BATAM                                    DUMAI
      Jl. Sisingamangaraja, Bangkinang      Komp. Baloi Mas Asri Blok Intan          Jl. Ahmad Yani No. 019, RT 009,
           0762-323125, 323166              No. 6, Kel. Baloi Indah,                 Kel. Bukit Datuk, Kec. Dumai
                                            Kec. Lubuk Baja, Kota Batam,             Selatan, Kota Dumai, Prov. Riau
                                            Prov. Kepulauan Riau                          0765-439551 439498;
                                               0778-429762; 429763;431345            082883038688

      KISARAN                               LUBUK PAKAM (MEDAN 2)                    MEDAN
      Jl. Wahidin No. 081A, Kisaran         Jl. Diponegoro No. 115 B,                Jl. Sei Batang Hari No. 099 A-C,
      Sumatera Utara                        Kel. Lubuk Pakam Pekan,                  Kel. Babura Sunggal, Kec. Medan
           0623-42201; 345398; 41265        Kec. Lubuk Pakam, Kab. Deli              Sunggal, Kota Medan,
                                            Serdang, Prov. Sumatera Utara            Prov. Sumatra Utara
                                                 061-7954679; 7952844                     061-88817594, 88814374,
                                                                                     88816723, 8881758

      PANGKALAN BRANDAN                     PEKAN BARU                               PEMATANG SIANTAR
      Jl. Lintas Besitang No. 018,          Jl. Jend. Sudirman No. 168 A,            Kel. Siopat Suhu, Kec. Siantar Timur,
      Kel. Brandan Alur Dua Sei Lepan,      Kel. Cinta Raja, Kec. Sail, Kota Pekan   Kota Pematang Siantar,
      Kec. Langkat Pangkalan Brandan,       Baru, Prov. Riau                         Prov. Sumatera Utara
      Prov. Sumatera Utara                       0761-862929; 862162; 862163;            0622-432808; 434588
           0620-323155; 21871               862934; 862935; 862883


      RANTAU PRAPAT                         RENGAT                                   TELUK KUANTAN
      Jl. Jend. Ahmad Yani No. 217 E-F,     Jl. Narasinga No. 070 A-B,               Jl. Imam Munandar, Kel. Beringin,
      Kel. Kartini, Kec. Rantau Utara,      RT 014 RW 006, Kel. Kampung              Kec. Kuantan Tengah,
      Kota Labuhan Batu,                    Besar, Kota Kec. Rengat,                 Kab. Kuantan Singingi, Prov. Riau
      Prov. Sumater Utara                   Kab. Indragiri, Prov. Riau                    0760-082390325889;
           0624-327792;325552; 327822            0769-324527; 324528                 082299622386

      UJUNG BATU
      Jl. Jend. Sudirman, Kel. Ujung Batu
      Timur, Kec. Ujung Batu,
      Kab. Rokan Hulu, Prov. Riau
           0762-7363382



           Non-Branch Office


      DELI TUA                              MARELAN                                  MEULABOH
      Jl. Besar Deli Tua. Kec. Deli Tua,    Jl. Marelan Raya, Kel. Rengas Pulau,     Jl. Manek Roo No.309,
      Kota Deli Serdang,                    Kec. Medan Marelan,                      Kel. Gampung Baroh,
      Prov. Sumatera Utara                  Kota Medan, Prov. Sumatera Utara         Kec. Johan Pahlawan,
           061-7872064;7850462                   061-6857417                         Kab. Aceh Barat, Prov. D.I Aceh
                                                                                          082172819819

      BENGKONG                              BINJAI (MEDAN)                           DELI TUA
      Jl. Belimbing Raya Blok E 001-002,    Jl. Perintis Kemerdekaan No. 049 B,      Jl. Besar Deli Tua, Kec. Deli Tua,
      RT005 RW006, Kel. Sadai,              Kel. Kebun Lada, Kec. Binjai Utara,      Kota Deli Serdang,
      Kec. Bengkong, Kota Batam,            Kota Binjai, Prov. Sumatera Utara        Prov. Sumatera Utara
      Prov. Kepulauan Riau                                                                061-7872064;7850462
Page 497
   PT BUSSAN AUTO FINANCE




                                                                                                              HIGHLIGHTS
                                                                                                              PERFORMANCE
FLAMBOYAN (BANGKINANG)                 KELAMBIR                           KUALA SIMPANG
Jl. Petapahan Kota Garo,               Jl. Gaperta, Kel. Tanjung Gusta,   l. Merdeka Banda Aceh,
Ruko Blok A 005, Kel. Tanjung Sawit,   Kec. Medan Helvetia, Kota Medan,   Kel. Kesehatan, Kec. Karang Baru,
Kec. Tapung, Kota Kampar,              Sumatera Utara                     Kota Aceh Tamiang, Prov. DI Aceh
Prov. Riau

LAMBARO                                PANAM (PEKANBARU)                  PERDAGANGAN




                                                                                                              REPORT
                                                                                                              MANAGEMENT
Jl. Soekarno, Kel. Lambaro,            Jl. Purwodadi, Ruko Gerbang Mas    (PEMATANG SIANTAR)
Kec. Ingin Jaya, Kab. Aceh Besar,      No. 107 B, Kel. Sidomulyo Barat,   Jl. Merdeka No. 096,
Daerah Istimewa Aceh,                  Kec. Tampan, Kota Pekanbaru,       Kel. Perodagangan,
Prov. Nanggroe Aceh Darussalam         Prov. Riau                         Kec. Bandar, Kab. Simalungun,
                                                                          Prov. Sumatra Utara

TEMBUNG (MEDAN 1)
Jl. Sutomo Ujung No. 259, Kel.
Durian, Kec. Medan Timur, Kota
Medan, Prov. Sumatera Utara




                                                                                                              PROFILE
                                                                                                              CORPORATE
                                                                                                              DISCUSSION & ANALYSIS
                                                                                                              MANAGEMENT
                                                                                                              GOVERNANCE
                                                                                                              CORPORATE
                                                                                                              REPORT
                                                                                                              SUSTAINABILITY




   2023 ANNUAL REPORT & SUSTAINABILITY REPORT
Page 498
  AUDITED FINANCIAL
  FINANCIAL
  STATEMENTS




                       AUDITED FINANCIAL
                       STATEMENTS
        ANGKLUNG, IS NOT MERELY A BAMBOO ARTCRAFT THAT CREATES BEAUTIFUL MELODIES,
        BUT ALSO REPRESENTS OUR SPIRIT. BY PLAYING ANGKLUNG TOGETHER, A HARMONIOUS
        RHYTHM CAN BE MADE. WITH ROBUST SYNERGY, WE WILL CONTINUOUSLY ACHIEVE A
        SUSTAINABLE GROWTH.



498
Page 499
                         PERFORMANCE   MANAGEMENT   CORPORATE   MANAGEMENT              CORPORATE    SUSTAINABILITY
                         HIGHLIGHTS    REPORT       PROFILE     DISCUSSION & ANALYSIS   GOVERNANCE   REPORT




                                                                                                                      499
                                                                                                                       2023 ANNUAL REPORT & SUSTAINABILITY REPORT
PT BUSSAN AUTO FINANCE
Page 500

          
Page 501
PT BUSSAN AUTO FINANCE
LAPORAN KEUANGAN/FINANCIAL STATEMENTS

UNTUK TAHUN-TAHUN YANG BERAKHIR
31 DESEMBER 2023 DAN 2022/
FOR THE YEARS ENDED
DECEMBER 31, 2023 AND 2022

DAN LAPORAN AUDITOR INDEPENDEN/
AND INDEPENDENT AUDITOR’S REPORT
Page 502
PT BUSSAN AUTO FINANCE                                                              PT BUSSAN AUTO FINANCE
DAFTAR ISI                                                                               TABLE OF CONTENTS


                                                     Halaman/
                                                      Pages

SURAT PERNYATAAN DIREKSI                                        DIRECTORS’ STATEMENT LETTER

LAPORAN AUDITOR INDEPENDEN                                      INDEPENDENT AUDITOR’S REPORT

LAPORAN KEUANGAN – pada dan untuk tahun -                       FINANCIAL STATEMENTS – as of and for the
  tahun yang berakhir 31 Desember 2023 dan 2022                    years ended December 31, 2023 and 2022

   Laporan Posisi Keuangan                              1          Statements of Financial Position

   Laporan Laba Rugi dan Penghasilan                               Statements of Profit or Loss and Other
      Komprehensif Lain                                 2              Comprehensive Income

   Laporan Perubahan Ekuitas                            3          Statements of Changes in Equity

   Laporan Arus Kas                                     4          Statements of Cash Flows

   Catatan atas Laporan Keuangan                        5          Notes to Financial Statements

                                                                SUPPLEMENTARY FINANCIAL INFORMATION -
INFORMASI KEUANGAN TAMBAHAN - Rasio-Rasio                         Financial Ratio of Financial Services Authority
   Keuangan Otoritas Jasa Keuangan (Tidak Diaudit)     100        (Unaudited)
Page 503

          
Page 504

          
Page 505

          
Page 506

          
Page 507

          
Page 508

          
Page 509

          
Page 510

          
Page 511
PT BUSSAN AUTO FINANCE                                                                                                 PT BUSSAN AUTO FINANCE
LAPORAN POSISI KEUANGAN                                                                                STATEMENTS OF FINANCIAL POSITION
DESEMBER 2023 DAN 2022                                                                                            DECEMBER 31, 2023 AND 2022


                                                            31 Desember/       31 Desember/
                                                 Catatan/   December 31,       December 31,
                                                  Notes         2023               2022
                                                               Rp '000            Rp '000

ASET                                                                                               ASSETS

Kas dan bank                                          5        334.038.260        273.254.864      Cash on hand and in banks
Piutang pembiayaan - bersih                           6     12.839.773.202     12.712.917.851      Financing receivables - net
Piutang derivatif                                    29         63.341.133        128.527.498      Derivative receivables
Piutang lain-lain - bersih                            7        121.308.791         67.100.551      Other accounts receivable - net
Uang muka                                             8         31.562.125         30.505.927      Advances
Biaya dibayar dimuka                                  9         36.154.969         31.041.821      Prepaid expenses
Aset tetap - setelah dikurangi akumulasi                                                           Property and equipment - net of accumulated
  penyusutan sebesar Rp 327.806.868 ribu                                                             depreciation of Rp 327,806,868 thousand
  pada 31 Desember 2023 (31 Desember 2022:                                                           as of December 31, 2023 (December 31,
  Rp 287.222.688 ribu)                               10       337.533.352         336.868.237        2022: Rp 287,222,688 thousand)
Perangkat lunak komputer - setelah
  dikurangi akumulasi amortisasi                                                                   Computer software - net of accumulated
  sebesar Rp 155.826.773 ribu                                                                        amortization of Rp 155,826,773 thousand
  pada 31 Desember 2023 (31 Desember 2022:                                                           as of December 31, 2023 (December 31,
  Rp 117.075.766 ribu)                               11        77.181.166          81.777.992        2022: Rp 117,075,766 thousand)
Aset pajak tangguhan - bersih                        26       230.555.857         227.003.229      Deferred tax assets - net
Aset hak-guna - bersih                               12        28.052.852          27.906.197      Right-of-use asset - net
Aset lainnya                                         13         2.494.272           2.604.516      Other assets

JUMLAH ASET                                                 14.101.995.979     13.919.508.683      TOTAL ASSETS

LIABILITAS DAN EKUITAS                                                                             LIABILITIES AND EQUITY

LIABILITAS                                                                                         LIABILITIES
Pinjaman bank                                       14       5.687.175.480      6.381.483.149      Bank loans
Utang derivatif                                     29          14.909.632          6.890.047      Derivative payables
Utang pajak                                         15          54.524.194         87.677.716      Taxes payable
Utang lain-lain                                     16         270.698.220        235.456.226      Other accounts payable
Biaya yang masih harus dibayar                    17, 33       314.410.455        360.241.888      Accrued expenses
Utang obligasi                                      18       4.873.687.443      4.141.274.229      Bonds payable
Liabilitas sewa                                     19           3.508.792          6.101.466      Lease liabilities
Liabilitas imbalan pasca kerja                      20         165.704.169        137.543.652      Post-employment benefits obligation

Jumlah Liabilitas                                           11.384.618.385     11.356.668.373      Total Liabilities

EKUITAS                                                                                            EQUITY
Modal saham - Rp 1.000.000 per saham                                                               Capital stock - Rp 1,000,000 par value
  Diotorisasi, ditempatkan dan disetor penuh -                                                       Authorized, subscribed and paid-up -
    353.571 saham                                    21       353.571.000         353.571.000          353,571 shares
Tambahan modal disetor                               21       235.858.000         235.858.000      Additional paid-in capital
Penghasilan komprehensif lain                        27       (34.964.159)        (58.031.011)     Other comprehensive income
Saldo laba                                                                                         Retained earnings
  Ditentukan penggunaannya                           21         71.400.000         71.400.000        Appropriated
  Tidak ditentukan penggunaannya                             2.091.512.753      1.960.042.321        Unappropriated

Jumlah Ekuitas                                               2.717.377.594      2.562.840.310      Total Equity

JUMLAH LIABILITAS DAN EKUITAS                               14.101.995.979     13.919.508.683      TOTAL LIABILITIES AND EQUITY




Lihat catatan atas laporan keuangan yang merupakan                           See accompanying notes to financial statements
bagian tidak terpisahkan dari laporan keuangan.                              which are an integral part of the financial statements.




                                                                  -1-
Page 512
PT BUSSAN AUTO FINANCE                                                                                   PT BUSSAN AUTO FINANCE
LAPORAN LABA RUGI DAN                                                                          STATEMENTS OF PROFIT OR LOSS AND
PENGHASILAN KOMPREHENSIF LAIN                                                                      OTHER COMPREHENSIVE INCOME
UNTUK TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2023 DAN 2022                          FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022


                                               Catatan/
                                                Notes       2023                 2022
                                                           Rp '000              Rp '000

PENDAPATAN                                                                                       REVENUE:
 Pendapatan pembiayaan                           22       4.476.998.372       4.248.826.213       Financing income
 Pendapatan bunga                                             2.804.082           2.279.550       Interest income
 Pendapatan lain-lain                                        89.059.602          85.751.592       Other income

Jumlah pendapatan                                         4.568.862.056       4.336.857.355      Total revenue

BEBAN                                                                                            EXPENSES:
 Gaji dan tunjangan                                         559.172.805         560.813.004       Salaries and allowances
 Penyisihan kerugian kredit                      6, 7     1.936.909.025       1.352.121.154       Provision for credit losses
 Bunga dan beban pembiayaan                       23        687.872.375         589.594.690       Interest and financing charges
 Beban umum dan administrasi                      24        869.619.842         790.083.124       General and administrative expenses
 Beban pengaturan pinjaman dan jaminan                                                            Loan arrangement and guarantee fees
   ke pihak berelasi                             33          8.114.274            17.835.919         to a related party
 Beban pemasaran                                 25         28.568.207            49.156.765      Marketing expenses

Jumlah beban                                              4.090.256.528       3.359.604.656      Total expenses

LABA SEBELUM PAJAK                                         478.605.528          977.252.699      PROFIT BEFORE TAX

BEBAN PAJAK PENGHASILAN                          26        (108.053.568)       (294.161.994)     INCOME TAX EXPENSE

LABA BERSIH TAHUN BERJALAN                                 370.551.960          683.090.705      PROFIT 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:
   Pengukuran kembali atas liabilitas                                                                Remeasurement of the post-employment
     imbalan pasca kerja, setelah pajak         20, 26       (7.369.407)           8.072.327           benefits obligation, net of tax
 Pos - pos yang akan direklasifikasi                                                              Items that may be reclassified
   ke laba rugi                                                                                      subsequently to profit or loss:
   Laba (rugi) yang belum terealisasi                                                                Unrealized gain (loss) on fair value
     atas nilai wajar kontrak lindung                                                                  of derivative financial instruments
     nilai derivatif, setelah pajak            26,27,29     30.436.259           (51.013.465)           hedging reserve, net of tax

Jumlah penghasilan komprehensif lain                                                             Total other comprehensive income
  tahun berjalan - setelah pajak                            23.066.852           (42.941.138)      for the year - net of tax

JUMLAH PENGHASILAN KOMPREHENSIF                                                                  TOTAL COMPREHENSIVE INCOME
  TAHUN BERJALAN                                           393.618.812          640.149.567       FOR THE YEAR

LABA PER SAHAM                                                                                   EARNINGS PER SHARE
  (dalam Rupiah penuh)                                                                              (in full Rupiah amount)
  Dasar                                          28           1.048.027            1.931.976        Basic


Lihat catatan atas laporan keuangan yang merupakan                         See accompanying notes to financial statements
bagian tidak terpisahkan dari laporan keuangan.                            which are an integral part of the financial statements.




                                                               -2-
Page 513
PT BUSSAN AUTO FINANCE                                                                                                                                                                                PT BUSSAN AUTO FINANCE
LAPORAN PERUBAHAN EKUITAS                                                                                                                                                                    STATEMENTS OF CHANGES IN EQUITY
UNTUK TAHUN - TAHUN YANG BERAKHIR 31 DESEMBER 2023 DAN 2022                                                                                                                     FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022


                                                                               Tambahan       Penghasilan
                                                                                 Modal        Komprehensif                      Saldo laba/
                                                               Modal saham      Disetor/          Lain/                      Retained earnings
                                                                 Disetor/      Additional        Other             Ditentukan           Tidak ditentukan
                                                    Catatan/     Paid-up        paid-in      comprehensive       penggunaannya/         penggunaannya/        Jumlah Ekuitas/
                                                     Notes     capital stock    capital         income            Appropriated           Unappropriated         Total Equity
                                                                 Rp '000        Rp '000         Rp '000              Rp '000                 Rp '000              Rp '000

Saldo per 1 Januari 2022                                         353.571.000   235.858.000      (15.089.873)          71.400.000             1.419.069.848      2.064.808.975      Balance as of January 1, 2022

Laba bersih tahun berjalan                                                                                                                     683.090.705        683.090.705      Profit for the year
Penghasilan komprehensif lain -                                                                                                                                                    Other comprehensive income -
    Kerugian belum direalisasi atas nilai wajar                                                                                                                                        Unrealized loss on fair value of
      kontrak lindung nilai derivatif,                                                                                                                                                      derivative financial instruments
      setelah pajak                                                  -             -            (51.013.465)            -                      -                  (51.013.465)              hedging reserve, net of tax
    Pengukuran kembali atas liabilitas imbalan                                                                                                                                         Remeasurement of the post-employment benefits
      pasca kerja, setelah pajak                                     -             -             8.072.327              -                       -                   8.072.327               obligation, net of tax
Dividen                                               21             -             -               -                    -                     (142.118.232)      (142.118.232)     Dividends

Saldo per 31 Desember 2022                                       353.571.000   235.858.000      (58.031.011)          71.400.000             1.960.042.321      2.562.840.310      Balance as of December 31, 2022

Laba bersih tahun berjalan                                           -             -               -                    -                      370.551.960        370.551.960      Profit for the year
Penghasilan komprehensif lain -                                                                                                                                                    Other comprehensive income -
    Keuntungan belum direalisasi atas nilai wajar                                                                                                                                      Unrealized gain on fair value of
      kontrak lindung nilai derivatif,                                                                                                                                                      derivative financial instruments
      setelah pajak                                                  -             -            30.436.259              -                      -                   30.436.259               hedging reserve, net of tax
    Pengukuran kembali atas liabilitas imbalan                                                                                                                                         Remeasurement of the post-employment benefits
      pasca kerja, setelah pajak                                     -             -             (7.369.407)            -                       -                  (7.369.407)              obligation, net of tax
Dividen                                               21             -             -                -                   -                     (239.081.528)      (239.081.528)     Dividends

Saldo per 31 Desember 2023                                       353.571.000   235.858.000      (34.964.159)          71.400.000             2.091.512.753      2.717.377.594      Balance as of December 31, 2023




Lihat catatan atas laporan keuangan yang merupakan                                                                                                                                 See accompanying notes to financial statements
bagian tidak terpisahkan dari laporan keuangan.                                                                                                                                    which are an integral part of the financial statements.




                                                                                                               -3-
Page 514
PT BUSSAN AUTO FINANCE                                                                                                  PT BUSSAN AUTO FINANCE
LAPORAN ARUS KAS                                                                                                    STATEMENTS OF CASH FLOWS
UNTUK TAHUN - TAHUN YANG BERAKHIR 31 DESEMBER 2023 DAN 2022                                       FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022



                                                       Catatan/
                                                        Notes          2023                2022
                                                                      Rp '000             Rp '000
                                                                                                           CASH FLOWS FROM OPERATING
ARUS KAS DARI AKTIVITAS OPERASI                                                                             ACTIVITIES
Penerimaan kas dari:                                                                                       Cash receipts from:
  Transaksi pembiayaan                                            13.135.099.858      11.936.762.190        Financing transactions
  Bunga atas keterlambatan, pelunasan                                                                       Interest income from late payment, early
    dipercepat dan aktivitas operasi lainnya                         823.731.132          768.067.565          termination and other operating activities
Pengeluaran kas untuk:                                                                                     Cash payments for:
  Transaksi pembiayaan                                            (11.433.242.085)    (11.391.555.284)      Financing transactions
  Gaji dan tunjangan                                                 (579.884.245)       (524.425.959)      Salaries and allowances
  Biaya pengaturan pinjaman dan jaminan                                                                     Arrangement and guarantee fees
    ke pihak berelasi                                                 (9.322.467)         (19.822.014)         to a related party
  Imbalan pasca kerja                                    20          (10.587.881)         (24.228.419)      Post-employment benefits
  Pembayaran pajak penghasilan badan                                (152.664.318)        (265.747.334)      Payment of corporate tax expenses
                                                                                                            General, administrative and marketing
  Beban umum, administrasi dan pemasaran                            (828.252.296)        (717.991.253)         expenses

Kas Bersih Diperoleh dari (Digunakan untuk)                                                                Net Cash Provided by (Used in)
  Aktivitas Operasi                                                  944.877.698         (238.940.508)      Operating Activities

ARUS KAS DARI AKTIVITAS INVESTASI                                                                          CASH FLOWS FROM INVESTING ACTIVITIES
Hasil penjualan aset tetap                               10              317.414               61.789      Proceeds from sale of property and equipment
Penerimaan bunga                                                       2.804.082            2.279.550      Interest received
Pembayaran utang yang timbul dari                                                                          Payment of payable arising from acquisition
  pembelian perangkat lunak komputer                                   (5.699.870)         (4.714.113)        of computer software
Pembayaran uang muka pembelian aset tetap                                                                  Advance payment for acquisition of property and
  dan perangkat lunak komputer                            8           (27.279.950)        (28.201.218)        equipment and computer software
Penambahan aset hak-guna                                              (16.448.248)           -             Additions of right-of-use assets
Penambahan aset tetap dan perangkat lunak                                                                  Additions of property and equipment and
  komputer                                                            (58.206.740)        (64.057.314)        computer software

Kas Bersih Digunakan untuk Aktivitas Investasi                      (104.513.312)         (94.631.306)     Net Cash Used in Investing Activities
ARUS KAS DARI AKTIVITAS PENDANAAN                                                                          CASH FLOWS FROM FINANCING ACTIVITIES
Pembayaran bunga dan beban keuangan                                  (675.555.773)       (596.312.881)     Interest and financing charges paid
Pembayaran dividen                                                   (239.081.528)       (142.118.232)     Payment of dividends
Pembayaran pokok liabilitas sewa                                       (5.685.275)        (21.051.129)     Payment of principal on lease liabilities
Pembayaran beban bunga atas liabilitas sewa                              (450.644)           (552.987)     Payment of interest expense on lease liabilities
Penerimaan dari pinjaman bank                                       6.599.684.000       9.014.780.000      Proceeds from bank loans
Pembayaran pinjaman bank                                           (7.181.766.000)     (8.038.000.000)     Payment of bank loans
Penerimaan dari penerbitan obligasi                      18         1.700.000.000       2.075.000.000      Proceeds from issuance of bonds
Pembayaran biaya penerbitan obligasi                     18            (6.225.770)         (8.009.423)     Payment of bonds issuance costs
Pembayaran obligasi berkelanjutan I tahap I                                                                Payment of bond sustainable I phase I
  tahun 2020                                                        (100.000.000)             -               year 2020
Pembayaran sukuk mudharabah berkelanjutan I                                                                Payment of sukuk mudharabah sustainable I
  tahap I tahun 2020                                                  (15.000.000)            -               phase I year 2020
Pembayaran sukuk mudharabah berkelanjutan I                                                                Payment of sukuk mudharabah sustainable I
  tahap II seri B 2020                                              (112.000.000)             -               phase II series B year 2020
Pembayaran obligasi berkelanjutan II tahap I                                                               Payment of bond sustainable II phase I
  seri A tahun 2022                                                   (88.500.000)            -               series A year 2022
Pembayaran obligasi berkelanjutan II tahap II                                                              Payment of bond sustainable II phase II
  seri A tahun 2022                                                 (655.000.000)            -                series A year 2022
Pembayaran obligasi III seri B tahun 2020                               -              (1.200.000.000)     Payment of bond III series B year 2020
Pembayaran obligasi berkelanjutan I tahap II seri A                                                        Payment of bond sustainable I phase II series A
  tahun 2021                                                             -               (500.000.000)        year 2021
Pembayaran obligasi berkelanjutan I tahap III seri A                                                       Payment of bond sustainable I phase III series A
  tahun 2021                                                             -               (150.000.000)        year 2021
Kas Bersih (Digunakan untuk) Diperoleh dari                                                                Net Cash (Used in) Provided by
  Aktivitas Pendanaan                                               (779.580.990)         433.735.348       Financing Activities

                                                                                                           NET INCREASE IN CASH ON
KENAIKAN BERSIH KAS DAN BANK                                          60.783.396          100.163.534       HAND AND IN BANKS

                                                                                                           CASH ON HAND AND IN BANKS
KAS DAN BANK AWAL TAHUN                                              273.254.864          173.091.330       AT BEGINNING OF YEAR

                                                                                                           CASH ON HAND AND IN BANKS
KAS DAN BANK AKHIR TAHUN                                             334.038.260          273.254.864        AT END OF YEAR

Lihat catatan atas laporan keuangan yang merupakan                                   See accompanying notes to financial statements
bagian tidak terpisahkan dari laporan keuangan.                                      which are an integral part of the financial statements.




                                                                             -4-
Page 515
PT BUSSAN AUTO FINANCE                                                                        PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                          NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                                  FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022                                                                  DECEMBER 31, 2023 AND 2022

1.   UMUM                                                        1.     GENERAL

     a.   Pendirian dan Informasi Umum                                  a.   Establishment and General Information

          PT Bussan Auto Finance (Perusahaan) didirikan                      PT Bussan Auto Finance (the Company) was
          dengan nama PT Pembiayaan Getraco                                  originally established as PT Pembiayaan Getraco
          Indonesia berdasarkan akta No. 55 tanggal                          Indonesia based on notarial deed No. 55 dated
          18 Juli 1995 dari Sugiri Kadarisman, S.H., notaris                 July 18, 1995 of Sugiri Kadarisman, S.H., notary
          di Jakarta. Akta Pendirian ini disahkan oleh                       in Jakarta. The deed of establishment was
          Menteri Kehakiman Republik Indonesia dalam                         approved by Minister of Justice of the Republic of
          Surat Keputusannya No. C2-10.337.HT.01.                            Indonesia      in   decision   letter  No.    C2-
          01.Th95 tanggal 18 Agustus 1995 serta                              10.337.HT.01.01.Th95 dated August 18, 1995,
          diumumkan dalam Berita Negara Republik                             and was published in The Official Gazette No. 138
                                                                             year 1996, Supplement No. 1. The Company’s
          Indonesia No. 138 Tahun 1996, Tambahan
                                                                             Articles of Association have been amended
          No. 1. Anggaran dasar Perusahaan telah                             several times, most recently by notarial deed
          mengalami perubahan, terakhir dengan Akta                          No. 16 dated November 15, 2019 of Marina
          No. 16 tanggal 15 November 2019 dari Marina                        Soewana, S.H., notary in Jakarta, regarding
          Soewana, S.H., notaris di Jakarta, mengenai                        changes in shareholder composition. This
          perubahan komposisi pemegang saham. Akta                           amendment was approved by the Minister of Law
          perubahan ini telah memperoleh persetujuan dari                    and Human Rights of the Republic of Indonesia in
          Menteri Hukum dan Hak Asasi Manusia Republik                       decision letter No. AHU-AH.01.03-0361093 Year
          Indonesia dengan Surat Keputusan No. AHU-                          2019 dated November 18th, 2019.
          AH.01.03-0361093        Tahun    2019     tanggal
          18 November 2019.

          Kantor pusat Perusahaan berlokasi di BAF                           The Company’s head office is located in BAF
          Plaza, Jl. Raya Tanjung Barat No. 121 RT 14/                       Plaza, Jl. Raya Tanjung Barat No. 121
          RW 4, Jakarta 12530, Indonesia. Pada tanggal                       RT 14/RW 4, Jakarta 12530, Indonesia. As of
          31 Desember 2023, Perusahaan memiliki 163                          December 31, 2023, the Company has 163
          kantor cabang (31 Desember 2022: 165 kantor                        branch offices (December 31, 2022: 165 branch
          cabang) yang tersebar di seluruh wilayah                           offices) spread throughout Indonesia.
          Indonesia.

          Sesuai dengan Pasal 3 anggaran dasar                               In accordance with article 3 of the Company’s
          Perusahaan, ruang lingkup kegiatan Perusahaan                      Articles of Association, the scope of its objectives
          terutama dalam aktivitas pembiayaan, untuk                         and purposes are mainly to engage in financing
          barang dan atau jasa. Aktivitas pembiayaan                         activities, for goods and/or services. The financing
          termasuk pembiayaan investasi, pembiayaan                          activities are covering investment financing,
          modal    kerja,   pembiayaan     multi  guna,                      working capital financing, multi purpose financing,
          pembiayaan syariah, sewa operasi dan aktivitas                     sharia financing, operating lease and other
          Pembiayaan lainnya berdasarkan persetujuan                         financing business activity based on approval
          Otoritas Jasa Keuangan (OJK). Ijin operasi                         from Financial Services Authority (OJK). The
          Perusahaan telah disetujui oleh Menteri                            Company’s operating license was obtained from
          Keuangan       dengan     Surat     Keputusan                      the      Minister    of   Finance      by     decree
          No. 526/KMK.017/1995 tanggal 17 November                           No. 526/KMK.017/1995 dated November 17,
          1995. Saat ini, Perusahaan terutama bergerak                       1995. Currently, the Company mainly engages in
          dalam aktivitas pembiayaan nasabah kendaraan                       customer financing activities of two-wheeled
          bermotor roda dua. Pada tanggal 31 Desember                        motor vehicles. As of December 31, 2023, the
          2023, jumlah karyawan Perusahaan masing-                           Company had 3,774 employees (December 31,
          masing sebanyak 3.774 karyawan (31 Desember                        2022: 4,021 employees).
          2022: 4.021 karyawan).

          Susunan pengurus Perusahaan adalah sebagai                         The composition of the Company’s management
          berikut:                                                           is as follows:

                                                 2023                        2022

          Presiden Komisaris        :   Toshiyuki Kojima             Tetsuya Daikoku              President Commissioner
          Komisaris                 :   Naotaka Takeshita            Naotaka Takeshita            Commissioners
                                        Masami Shiobara              Jun Ikeda
          Komisaris Independen      :   Dani Firmansjah              Dani Firmansjah              Independent Commissioners
                                        Prabowo                      Prabowo
                                        Nurdayadi                    Nurdayadi




                                                               -5-
Page 516
PT BUSSAN AUTO FINANCE                                                                 PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                   NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                           FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                        DECEMBER 31, 2023 AND 2022 - Continued

                                               2023                      2022

        Presiden Direktur          :   Lynn Ramli                Lynn Ramli                  President Director
        Wakil Presiden Direktur    :   Akira Sugai               Akira Sugai                 Vice President Directors
                                       Koji Kato                 Koji Kato
        Direktur                   :   Sigit Sembodo             Sigit Sembodo               Directors
                                       Alung Ng                  Alung Ng
                                       Charles MP Gultom         Charles MP Gultom
                                       Yudono                    Yudono

        Susunan komite audit adalah sebagai berikut:                     The member of the audit committee are as
                                                                         follows:

                                               2023                      2022

        Ketua                      :   Nurdayadi                 Nurdayadi                   Chairman
        Anggota                    :   Heru Absoro               Heru Absoro                 Members
                                       Prabowo                   Stepanus Ardhanova

        Pembentukan Komite Audit Perusahaan telah                        The establishment of the Company's Audit
        sesuai dengan POJK No. 30/POJK.05/2014                           Committee is in accordance with POJK
        tentang Tata Kelola Perusahaan yang baik bagi                    No. 30/POJK.05/2014 about Good Corporate
        Perusahaan          Pembiayaan.        POJK                      Governance for Finance Company. POJK
        No. 55/POJK.04/2015 tentang Pembentukan                          No. 55/POJK.04/2015 about Establishment and
        dan Pedoman Pelaksanaan Kerja Komite Audit.                      Guidelines for the Work Implementation of the
        Berdasarkan Surat Keputusan Dewan Komisaris                      Audit Committe. Based on decision letter of Board
        Perseroan     No.     SK-001/BOC/BAF.IV/2022                     of Commissioner No. SK-001/BOC/BAF.IV/2022
        tanggal 13 April 2022 tentang Perubahan                          dated on April 13, 2022 about Changes in the
        Anggota Komite Audit Perseroan, Perusahaan                       Company's Audit Committee Members, the
        menetapkan Perubahan Susunan Anggota                             Company agreed on the Changes in the Structure
        Komite Audit di tahun 2022.                                      of Members of Audit Committee in year 2022.

        Pada tanggal 21 Februari 2023, Perusahaan                        On February 21, 2023, the Company received the
        menerima surat pengunduran diri Stepanus                         resignation letter of Stepanus Ardhanova as Audit
        Ardhanova selaku anggota Komite Audit                            Committee member of the Company. The
        Perusahaan. Dewan Komisaris Perusahaan                           Company’s Board of Commissioners have
        telah menyetujui pengunduran diri Stepanus                       approved the resignation of Stepanus Ardhanova
        Ardhanova sebagai anggota Komite Audit dan                       as Audit Committee member of the Company and
        berlaku efektif pada tanggal 31 Maret 2023.                      is effective on March 31, 2023.

        Dewan pengawas syariah sebagai berikut:                          The sharia supervisory board are as follow:

                                               2023                      2022

        Ketua                      :   Ahmad Ifham               Ah. Azharuddin Lathif       Chairman
        Anggota                    :   Ahmad Ifham               Ahmad Ifham                 Members

   b.   Penawaran Umum            Obligasi   dan   Sukuk            b.   Public Offering of Bonds and Sukuk of the
        Perusahaan                                                       Company

        Sejak tahun 2017, Perusahaan telah beberapa                      Since 2017, the Company has issued bonds and
        kali menerbitkan obligasi dan sukuk mudharabah                   sukuk mudharabah to the public through the
        yang ditawarkan kepada masyarakat melalui                        Indonesian market capital.
        pasar modal di Indonesia




                                                           -6-
Page 517
PT BUSSAN AUTO FINANCE                                                                                                          PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                                                            NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                                                                    FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                                                                 DECEMBER 31, 2023 AND 2022 - Continued

          Sampai dengan 31 Desember 2023 dan 2022,                                                            As of December 31, 2023 and 2022, bonds and
          obligasi dan sukuk mudharabah yang telah                                                            sukuk mudharabah offered by the Company are
          ditawarkan oleh Perusahaan adalah sebagai                                                           as follows:
          berikut:

                    Obligasi dan Sukuk Perusahaan/                 Tanggal pernyataan efektif/                    Nomor surat/     Jumlah/                Wali amanat/
                     Company's bonds and sukuk                      Effective notification date                Letter number       Amount                  The trustee
                                                                                                                                   Rp "000


          Obligasi berkelanjutan II/ Bond sustainable II   24 Juni 2022/ June 24, 2022                      S-105/D.04/2022      3.000.000.000   PT. Bank Mandiri (Persero) Tbk.


          Obligasi berkelanjutan I/ Bond sustainable I     24 Juli 2020/ July 24, 2020                      S-200/D.04/2020      3.500.000.000   PT. Bank Mandiri (Persero) Tbk.


          Sukuk mudharabah berkelanjutan I/ Sukuk
              mudharabah sustainable I                     24 Juli 2020/ July 24, 2020                      S-200/D.04/2020       500.000.000    PT. Bank Mandiri (Persero) Tbk.


          Pada tanggal 31 Desember 2023 seluruh                                                               As of December 31, 2023, all of the Company's
          obligasi        Perusahaan              sejumlah                                                    outstanding      bonds      amounting       to
          Rp 4.881.500.000 ribu (31 Desember 2022:                                                            Rp 4,881,500,000 thousand (December 31, 2022:
          Rp 4.152.000.000 ribu) telah tercatat pada Bursa                                                    Rp 4,152,000,000 thousand) have been listed on
          Efek Indonesia.                                                                                     the Indonesia Stock Exchange.


2.   PENERAPAN STANDAR AKUNTANSI KEUANGAN                                                         2.   ADOPTION OF NEW AND REVISED STATEMENTS
     BARU DAN REVISI (PSAK) DAN INTERPRETASI                                                           OF FINANCIAL ACCOUNTING STANDARDS
     STANDAR AKUNTANSI KEUANGAN (ISAK)                                                                 (PSAK) AND INTERPRETATIONS OF PSAK (ISAK)

     a.   Amendemen/Penyesuaian Standar                                 yang                           a.     Amendments/Improvements                     to      Standards
          Berlaku Efektif pada Tahun Berjalan                                                                 Effective in the Current Year

          Dalam tahun berjalan, Perusahaan telah                                                              In the current year, the Company has applied a
          menerapkan        sejumlah        amendemen/                                                        number of amendments/improvements to PSAK
          penyesuaian PSAK yang relevan dengan                                                                that are relevant to its operations and effective for
          operasinya dan efektif untuk periode akuntansi                                                      accounting period beginning on or after January 1,
          yang dimulai pada atau setelah 1 Januari 2023.                                                      2023.

          ·       Amandemen PSAK 1 “Penyajian Laporan                                                         ·       Amendment to PSAK 1 “Presentation of
                  Keuangan” tentang Klasifikasi Liabilitas                                                            Financial Statement” related to Liabilities
                  sebagai Jangka Pendek atau Jangka                                                                   Classification as Short or Long-term and
                  Panjang dan Pengungkapan Kebijakan                                                                  Disclosure of Accounting Policies;
                  Akuntansi;

          ·       Amandemen      PSAK     25    “Kebijakan                                                    ·       Amendment to PSAK 25 “Accounting
                  Akuntansi, Perubahan Estimasi Akuntansi,                                                            Policies, Changes in Accounting Estimates
                  dan Kesalahan” tentang Definisi Estimasi                                                            and Errors” related to Definition of Accounting
                  Akuntansi;                                                                                          Estimates;

          ·       Amendemen PSAK 46 “Pajak Penghasilan”                                                       ·       Amendment of PSAK 46 "Income Tax" on
                  tentang Pajak Tangguhan terkait Aset dan                                                            Deferred Tax related to Assets and Liabilities
                  Liabilitas yang timbul dari Transaksi Tunggal                                                       arising from a Single Transaction which
                  yang diadopsi dari Amendemen IAS 12                                                                 adopted from Amended IAS 12 Income Taxes
                  Income Taxes tentang Deferred Tax related                                                           on Deferred Tax related to Assets and
                  to Assets and Liabilities arising from a Single                                                     Liabilities arising from a Single Transaction;
                  Transaction; dan                                                                                    and;

          ·       Amendemen PSAK 107 “Akuntansi Ijarah”                                                       ·       Amendment of PSAK 107 “Ijarah Accounting”

          Penerapan atas PSAK baru/revisi tidak                                                               The adoption of these new/revised PSAKs does
          mengakibatkan perubahan atas kebijakan                                                              not result in changes to the Company’s
          akuntansi Perusahaan dan tidak memiliki                                                             accounting policies and has no material effect on
          dampak material terhadap jumlah yang                                                                the amounts reported in these financial
          dilaporkan dalam laporan keuangan.                                                                  statements.




                                                                                         -7-
Page 518
PT BUSSAN AUTO FINANCE                                                                   PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                     NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                             FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                          DECEMBER 31, 2023 AND 2022 - Continued

     b.   Standar    dan       Amendemen/Penyesuaian                 b.   Standard and Amendments/Improvements to
          Standar Telah       Diterbitkan Tapi Belum                      Standards Issued not yet Adopted
          Diterapkan

          Pada tanggal persetujuan laporan keuangan,                      At the date of authorization of these financial
          standar,    interpretasi   dan     amandemen-                   statements, the following standard, interpretation
          amandemen atas PSAK yang relevan bagi                           and amendments to PSAK relevant to the
          Perusahaan, yang telah diterbitkan namun belum                  Company were issued but not effective, with early
          berlaku efektif, dengan penerapan dini diijinkan,               application permitted:
          adalah sebagai berikut:

          Efektif untuk periode yang dimulai pada atau                    Effective for periods beginning on or after
          setelah tanggal 1 Januari 2024                                  January 1, 2024

          ·   PSAK 1 (amendemen) Penyajian Laporan                        ·   PSAK 1 (amendment)          Presentation    of
              Keuangan:  Pengungkapan     Kebijakan                           Financial   Statements:      Disclosure     of
              Akuntansi                                                       Accounting Policies

          ·   PSAK 73 (amendemen) Sewa: Liabilitas                        ·   PSAK 73 (amendment) Leases: Lease
              Sewa pada Transaksi Jual dan Sewa-balik                         Liability in a Sale and Leaseback

          ·   PSAK 1 (amendemen) Penyajian Laporan                        ·   PSAK 1 (amendment) Presentation of
              Keuangan: Penyajian Laporan Keuangan                            financial statements: Non-current Liabilities
              terkait Liabilitas Jangka Panjang dengan                        with Covenants
              Kovenan

          ·   PSAK 2 (amandemen) Laporan arus kas                         ·   PSAK 2 (amendment) Statement of cash
              dan PSAK 60 (amandemen) Instrumen                               flows and PSAK 60 (amendment) Financial
              Keuangan : Pengungkapan : Pengaturan                            Instruments : Disclosures : Supplier Finance
              Pembiayaan Pemasok                                              Arrangements

          ·   Amendemen PSAK 101 “Penyajian Laporan                       ·   Amendment of PSAK 101 “Presentation of
              Keuangan Syariah” terkait perubahan                             Sharia Financial Statement” related changes
              komponen laporan keuangan entitas amil.                         in financial statement components of amil
                                                                              entity.

          Efektif untuk periode yang dimulai pada atau                    Effective for periods beginning on or after
          setelah tanggal 1 Januari 2025                                  January 1, 2025

          ·   PSAK     10   (amandemen)      Pengaruh                     ·   PSAK 10 (amendment) The effects of
              Perubahan Kurs Valuta Asing: Kekurangan                         changes in foreign exchange rates: Lack of
              Ketertukaran                                                    Exchangeability

          Sampai dengan tanggal penerbitan laporan                        As of the issuance date of the financial
          keuangan, dampak dari penerapan standar,                        statements, the effects of adopting these
          amendemen dan interpretasi tersebut terhadap                    standards, amendments and interpretations on
          laporan keuangan tidak dapat diketahui atau                     the financial statements are not known nor
          diestimasi oleh manajemen.                                      reasonably estimable by management.

          Mulai tanggal 1 Januari 2024, referensi terhadap                Beginning January 1, 2024, references to the
          masing-masing PSAK dan ISAK akan diubah                         individual PSAKs and ISAKs will be changed as
          sebagaimana diumumkan oleh Dewan Standar                        published by Financial Accounting Standards
          Akuntansi Keuangan Ikatan Akuntan Indonesia                     Board of Institute of Indonesia Chartered
          (“DSAK – IAI”).                                                 Accountants (“DSAK – IAI”).


3.   INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                     3.   MATERIAL ACCOUNTING POLICY INFORMATION

     a.   Pernyataan Kepatuhan                                       a.   Statement of Compliance

          Laporan keuangan Perusahaan disusun sesuai                      The financial statements of the Company have
          dengan Standar Akuntansi Keuangan di                            been prepared in accordance with Indonesian
          Indonesia.                                                      Financial Accounting Standards.




                                                              -8-
Page 519
PT BUSSAN AUTO FINANCE                                                                    PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                      NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                              FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                           DECEMBER 31, 2023 AND 2022 - Continued

   b.   Dasar Penyusunan                                             b.   Basis of Preparation

        Dasar penyusunan laporan keuangan adalah                          The financial statements have been prepared on
        biaya historis, kecuali instrumen keuangan                        the historical cost basis except for certain financial
        tertentu yang diukur pada nilai wajar pada setiap                 instruments that are measured at fair values at the
        akhir periode pelaporan, yang dijelaskan dalam                    end of each reporting period, as explained in the
        kebijakan akuntansi di bawah ini.                                 accounting policies below.

        Biaya historis umumnya didasarkan pada nilai                      Historical cost is generally based on the fair value
        wajar dari imbalan yang diberikan dalam                           of the consideration given in exchange for goods
        pertukaran barang dan jasa.                                       and services.

        Nilai wajar adalah harga yang akan diterima                       Fair value is the price that would be received to
        untuk menjual suatu aset atau harga yang akan                     sell an asset or paid to transfer a liability in an
        dibayar untuk mengalihkan suatu liabilitas dalam                  orderly transaction between market participants at
        suatu transaksi teratur antara pelaku pasar pada                  the measurement date, regardless of whether that
        tanggal pengukuran, terlepas dari apakah harga                    price is directly observable or estimated using
        tersebut dapat diamati secara langsung atau                       another valuation technique. In estimating the fair
        diestimasi menggunakan teknik penilaian lain.                     value of an asset or a liability, the Company takes
        Dalam mengestimasi nilai wajar dari suatu aset                    into account the characteristics of the asset or
        atau liabilitias, Perusahaan memperhitungkan                      liability if market participants would take those
        karakteristik aset atau liabilitas jika pelaku pasar              characteristics into account when pricing the
        akan memperhitungkan karakteristik tersebut                       asset or liability at the measurement date. Fair
        ketika menentukan harga aset atau liabilitas                      value for measurement and/or disclosure
        pada tanggal pengukuran. Nilai wajar untuk                        purposes in these financial statements is
        tujuan pengukuran dan/atau pengungkapan                           determined on such a basis, except for leasing
        pada laporan keuangan ditentukan atas dasar                       transactions that are within the scope of PSAK 73,
        tersebut, kecuali untuk transaksi pembayaran                      and measurements that have some similarities to
        berbasis saham yang merupakan ruang lingkup,                      fair value but are not fair value, such as value in
        transaksi sewa yang merupakan ruang lingkup                       use in PSAK 48.
        PSAK 73, dan pengukuran yang memiliki
        kemiripan dengan nilai wajar namun bukan
        merupakan nilai wajar, seperti nilai pakai dalam
        PSAK 48.

        Laporan arus kas disusun dengan menggunakan                       The statements of cash flows are prepared using
        metode langsung dengan mengelompokkan arus                        the direct method with classifications of cash flows
        kas dalam aktivitas operasi, investasi dan                        into operating, investing and financing activities.
        pembiayaan.

        Direksi memiliki, pada saat persetujuan laporan                   The directors have, at the time of approving the
        keuangan, suatu ekspektasi yang memadai                           financial statements, a reasonable expectation
        bahwa Perusahaan memiliki sumber daya yang                        that the Company has adequate resources to
        cukup     untuk     melanjutkan     keberadaan                    continue in operational existence for the
        operasinya untuk di masa yang akan datang.                        foreseeable future. Thus, they continue to adopt
        Sehingga, mereka melanjutkan penerapan                            the going concern basis of accounting in
        dasar akuntansi kelangsungan usaha dalam                          preparing the financial statements.
        penyusunan laporan keuangan.

   c.   Transaksi Pihak-pihak Berelasi                               c.   Transactions with Related Parties

        Pihak-pihak berelasi adalah orang atau entitas                    A related party is a person or entity that is related
        yang     terkait  dengan     entitas  pelapor                     to the reporting entity (the Company):
        (Perusahaan):
        a.   Orang atau anggota keluarga dekatnya                         a.   A person or a close member of that person's
             mempunyai relasi dengan entitas pelapor                           family is related to the reporting entity if that
             jika orang tersebut:                                              person:
             i.    memiliki       pengendalian  atau                           i.    has control or joint control over the
                   pengendalian bersama atas entitas                                 reporting entity;
                   pelapor;
             ii.   memiliki pengaruh signifikan atas                           ii.   has significant influence       over   the
                   entitas pelapor; atau                                             reporting entity; or



                                                               -9-
Page 520
PT BUSSAN AUTO FINANCE                                                                 PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                   NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                           FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                        DECEMBER 31, 2023 AND 2022 - Continued

            iii.   merupakan personil manajemen kunci                       iii.   is a member of the key management
                   entitas pelapor atau entitas induk dari                         personnel of the reporting entity or of a
                   entitas pelapor.                                                parent of the reporting entity.

       b.   Suatu entitas berelasi dengan entitas                      b.   An entity is related to the reporting entity if
            pelapor jika memenuhi salah satu hal                            any of the following conditions applies:
            berikut:

            i.    Entitas dan entitas pelapor adalah                        i.     The entity and the reporting entity are
                  anggota dari kelompok usaha yang                                 members of the same group (which
                  sama (artinya entitas induk, entitas                             means that each parent, subsidiary and
                  anak, dan entitas anak berikutnya saling                         fellow subsidiary is related to the others).
                  berelasi dengan entitas lainnya).
            ii. Satu entitas adalah entitas asosiasi                        ii.    One entity is an associate or joint
                  atau ventura bersama dari entitas lain                           venture of the other entity (or an
                  (atau entitas asosiasi atau ventura                              associate or joint venture of a member of
                  bersama yang merupakan anggota                                   a group, of which the other entity is a
                  suatu kelompok usaha, yang mana                                  member).
                  entitas      lain     tersebut     adalah
                  anggotanya).
            iii. Kedua entitas tersebut adalah ventura                      iii.Both entities are joint ventures of the
                  bersama dari pihak ketiga yang sama.                          same third party.
            iv. Satu entitas adalah ventura bersama                         iv. One entity is a joint venture of a third
                  dari entitas ketiga dan entitas yang lain                     entity and the other entity is an associate
                  adalah entitas asosiasi dari entitas                          of the third entity.
                  ketiga.
            v. Entitas tersebut adalah suatu program                        v.     The entity is a post-employment benefit
                  imbalan pasca kerja untuk imbalan kerja                          plan for the benefit of employees of
                  dari salah satu entitas pelapor atau                             either the reporting entity or an entity
                  entitas yang terkait dengan entitas                              related to the reporting entity. If the
                  pelapor. Jika entitas pelapor adalah                             reporting entity is itself such a plan, the
                  entitas     yang       menyelenggarakan                          sponsoring entities are also related to
                  program tersebut, maka entitas sponsor                           the reporting entity.
                  juga berelasi dengan entitas pelapor.
            vi. Entitas       yang     dikendalikan    atau                 vi. The entity is controlled or jointly
                  dikendalikan bersama oleh orang yang                          controlled by a person identified in (a).
                  diidentifikasi dalam huruf (a).
            vii. Orang yang diidentifikasi dalam huruf                      vii. A person identified in (a) (i) has
                  (a) (i) memiliki pengaruh signifikan atas                       significant influence over the entity or is
                  entitas atau merupakan personil                                 a member of the key management
                  manajemen kunci entitas (atau entitas                           personnel of the entity (or of a parent of
                  induk dari entitas).                                            the entity).
            viii. Entitas, atau anggota dari kelompok                       viii. The entity, or any member of a group of
                  yang mana entitas merupakan bagian                              which it is a part, provides key
                  dari kelompok tersebut, menyediakan                             management personnel services 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 signifikan yang dilakukan dengan                      Significant transactions with related parties,
       pihak-pihak berelasi, baik dilakukan dengan                     whether or not made at similar terms and
       kondisi dan persyaratan yang sama dengan                        conditions as those done with third parties, are
       pihak ketiga maupun tidak, diungkapkan pada                     disclosed in the financial statements.
       laporan keuangan.




                                                              - 10 -
Page 521
PT BUSSAN AUTO FINANCE                                                                   PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                     NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                             FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                          DECEMBER 31, 2023 AND 2022 - Continued

   d.   Transaksi dan Penjabaran Laporan Keuangan                    d.   Foreign     Currency          Transactions         and
        Dalam Mata Uang Asing                                             Translation

        Laporan keuangan Perusahaan diukur dan                            The financial statements of the Company are
        disajikan dalam mata uang Rupiah yang                             measured and presented in Indonesian Rupiah
        merupakan dari lingkungan ekonomi utama                           which the primary economic environment in which
        dimana entitas beroperasi (mata uang                              the entity operates (its functional currency).
        fungsional).

        Dalam       penyusunan      laporan     keuangan                  In preparing the financial statements of the
        Perusahaan, transaksi dalam mata uang selain                      Company, transactions in currencies other than
        mata uang fungsional entitas (mata uang asing)                    the entity’s functional currency (foreign
        diakui pada kurs yang berlaku pada tanggal                        currencies) are recognized at the rates of
        transaksi. Pada setiap akhir perode pelaporan,                    exchange prevailing at the dates of the
        pos moneter dalam valuta asing dijabarkan                         transactions. At the end of each reporting period,
        kembali pada kurs yang berlaku pada tanggal                       monetary items denominated in foreign currencies
        tersebut. Pos-pos non moneter yang diukur pada                    are retranslated at the rates prevailing at that date.
        nilai wajar dalam valuta asing dijabarkan kembali                 Non-monetary items carried at fair value that are
        pada kurs yang berlaku pada tanggal ketika nilai                  denominated      in foreign       currencies      are
        wajar ditentukan. Pos nonmoneter yang diukur                      retranslated at the rates prevailing at the date
        dalam biaya historis dalam valuta asing tidak                     when the fair value was determined. Non-
        dijabarkan kembali.                                               monetary items that are measured in terms of
                                                                          historical cost in a foreign currency are not
                                                                          retranslated.

        Selisih kurs atas pos moneter diakui dalam laba                   Exchange differences on monetary items are
        rugi pada periode saat terjadinya kecuali untuk                   recognized in profit or loss in the period in which
        selisih kurs atas transaksi yang ditetapkan untuk                 they arise except for exchange differences on
        tujuan lindung nilai risiko valuta asing tertentu                 transaction entered into in order to hedge certain
        (lihat Catatan 3.g dibawah ini untuk kebijakan                    foreign currency risks (see Note 3.g below for
        akuntansi lindung nilai).                                         hedge accounting policies).

   e.   Instrumen Keuangan                                           e.   Financial Instruments

        Aset keuangan dan liabilitas keuangan diakui                      Financial assets and financial liabilities are
        pada laporan posisi keuangan pada saat                            recognized on the statement of financial position
        Perusahaan menjadi salah satu pihak dalam                         when the Company becomes a party to the
        ketentuan kontraktual instrumen tersebut.                         contractual provisions of the instrument.

        Aset keuangan dan liabilitas keuangan pada                        Financial assets and financial liabilities are initially
        awalnya diukur pada nilai wajar. Biaya transaksi                  measured at fair value. Transaction costs that are
        yang terkait langsung dengan perolehan atau                       directly attributable to the acquisition or issue of
        penerbitan aset keuangan dan liabilitas                           financial assets and financial liabilities are added
        keuangan ditambahkan atau dikurangkan dari                        to or deducted from the fair value of the financial
        nilai wajar aset keuangan dan liabilitas                          assets and financial liabilities, as appropriate, on
        keuangan, jika diperlukan, pada pengakuan                         initial recognition. Transaction costs directly
        awal. Biaya transaksi yang dapat diatribusikan                    attributable to the acquisition of financial assets or
        secara langsung dengan perolehan aset                             financial liabilities at fair value through profit or
        keuangan dan liabilitas keuangan pada nilai                       loss are recognized immediately in profit or loss.
        wajar melalui laba rugi diakui langsung pada laba
        rugi.

        Semua pembelian atau penjualan reguler aset                       All regular way purchases or sales of financial
        keuangan diakui dan dihentikan pengakuannya                       assets are recognized and derecognized on a
        berdasarkan tanggal perdagangan. Pembelian                        trade date basis. Regular way purchases or sales
        atau penjualan reguler adalah pembelian atau                      are purchases or sales of financial assets that
        penjualan aset keuangan yang memerlukan                           require delivery of assets within the time frame
        penyerahan aset dalam jangka waktu yang                           established by regulation or convention in the
        ditetapkan oleh peraturan atau konvensi di                        marketplace.
        pasar.




                                                            - 11 -
Page 522
PT BUSSAN AUTO FINANCE                                                                PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                  NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                          FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                       DECEMBER 31, 2023 AND 2022 - Continued

       Semua aset keuangan yang diakui selanjutnya                     All recognized financial assets are measured
       diukur secara keseluruhan pada biaya perolehan                  subsequently in their entirety at either amortized
       yang diamortisasi atau nilai wajar, tergantung                  cost or fair value, depending on the classification
       pada klasifikasi aset keuangan tersebut.                        of the financial assets.

       Klasifikasi aset keuangan                                       Classification of financial assets

       Perusahaan mengukur aset keuangan pada                          The Company measures financial assets at
       biaya perolehan diamortisasi jika kedua kondisi                 amortized cost if both of the following conditions
       berikut ini terpenuhi:                                          are met:

       ·   aset keuangan dikelola dalam model bisnis                   ·   the financial asset is held within a business
           yang bertujuan untuk memiliki aset                              model whose objective is to hold financial
           keuangan dalam rangka mendapatkan arus                          assets in order to collect contractual cash
           kas kontraktual; dan                                            flows; and

       ·   persyaratan kontraktual dari aset keuangan                  ·   The contractual terms of the financial asset
           menghasilkan arus kas pada tanggal                              give rise on specified dates to cash flows that
           tertentu yang semata dari pembayaran                            are solely payments of principal and interest
           pokok dan bunga (“SPPI”) dari jumlah pokok                      (“SPPI”) on the principal amount outstanding.
           terutang.

       Aset keuangan diukur pada nilai wajar melalui                   Financial assets that meet the following conditions
       penghasilan komprehensif lain (“FVTOCI”), jika                  are subsequently measured at fair value through
       memenuhi kedua kondisi berikut ini:                             other comprehensive income (“FVTOCI”):

       ·   aset keuangan yang dimiliki dalam model                     ·    the financial asset is held within a business
           bisnis yang tujuannya dicapai dengan                             model whose objective is achieved by both
           mendapatkan baik arus kas kontraktual                            collecting contractual cash flows and selling
           maupun menjual aset keuangan; dan                                the financial assets; and

       ·   persyaratan kontraktual dari aset keuangan                  ·    the contractual terms of the financial asset
           menghasilkan arus kas pada tanggal tertentu                      give rise on specified dates to cash flows that
           yang semata-mata dari pembayaran pokok                           are solely payments of principal and interest
           dan bunga dari jumlah pokok terutang.                            on the principal amount outstanding.

       Seluruh aset keuangan lain selanjutnya diukur                   By default, all other financial assets are
       pada nilai wajar melalui laba rugi (“FVTPL”).                   subsequently measured at fair value through
                                                                       profit or loss (“FVTPL”).

       Meskipun    telah  disebutkan  sebelumnya,                      Despite the foregoing, the Company may make
       Perusahaan dapat menetapkan pilihan tak                         the following irrevocable election/designation at
       terbatalkan pada saat pengakuan awal aset                       initial recognition of a financial asset:
       keuangan sebagai berikut:

       ·   menyajikan perubahan selanjutnya nilai                      ·    irrevocably elect to present subsequent
           wajar investasi pada instrumen ekuitas                           changes in fair value of an equity investment
           dalam penghasilan komprehensif lain jika                         in other comprehensive income if certain
           kriteria tertentu dipenuhi (lihat di bawah); dan                 criteria are met (see below); and

       ·   menetapkan aset keuangan yang memenuhi                      ·    irrevocably designate a debt investment that
           kriteria biaya perolehan diamortisasi atau                       meets the amortized cost or FVTOCI criteria
           FVTOCI sebagai diukur pada FVTPL, jika                           as measured at FVTPL if doing so eliminates
           penetapan      itu    mengeliminasi   atau                       or significantly reduces an accounting
           mengurangi secara signifikan inkonsistensi                       mismatch (see below).
           pengukuran dan pengakuan (accounting
           mismatch) (lihat di bawah).




                                                              - 12 -
Page 523
PT BUSSAN AUTO FINANCE                                                              PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                        FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                     DECEMBER 31, 2023 AND 2022 - Continued

       Biaya perolehan diamortisasi dan metode suku                   Amortized cost and effective interest method
       bunga efektif

       Metode suku bunga efektif adalah metode untuk                  The effective interest method is a method of
       menghitung biaya perolehan diamortisasi dari                   calculating the amortized cost of a debt
       instrumen    utang    dan      mengalokasikan                  instrument and of allocating interest income over
       pendapatan bunga selama periode yang relevan.                  the relevant period.

       Untuk instrumen keuangan selain yang dibeli atau               For financial instruments other than purchased or
       yang berasal dari aset keuangan memburuk, suku                 originated credit-impaired financial assets, the
       bunga efektif adalah tingkat suku bunga yang                   effective interest rate is the rate that exactly
       secara     tepat     mendiskontokan       estimasi             discounts estimated future cash              receipts
       penerimaan kas masa depan (termasuk semua                      (including all fees and points paid or received that
       biaya dan poin yang dibayarkan atau diterima                   form an integral part of the effective interest rate,
       merupakan bagian yang tidak terpisahkan dari                   transaction costs and          other premiums or
       suku bunga efektif, biaya transaksi dan premi atau             discounts) excluding expected credit losses,
       diskon lainnya) tidak termasuk kerugian kredit                 through the expected life of the debt instrument,
       ekspektasian, melalui umur ekspektasian dari                   or, where appropriate, a shorter period, to the
       instrumen utang, atau, jika sesuai, periode yang               gross carrying amount of the debt instrument on
       lebih pendek, ke jumlah tercatat bruto instrumen               initial recognition. For purchased or originated
       utang pada pengakuan awal. Untuk aset                          credit-impaired financial assets, a credit-adjusted
       keuangan yang dibeli atau yang berasal dari aset               effective interest rate is calculated by discounting
       keuangan memburuk, suku bunga efektif yang                     the estimated future cash           flows, including
       disesuaikan dengan risiko kredit dihitung dengan               expected credit losses, to the amortized cost of
       mendiskontokan estimasi arus kas masa depan,                   the debt instrument on initial recognition.
       termasuk estimasi kerugian kredit, ke biaya
       perolehan diamortisasi instrumen utang pada
       pengakuan awal.

       Biaya perolehan diamortisasi dari aset keuangan                The amortized cost of a financial asset is the
       adalah nilai aset keuangan yang diukur pada saat               amount at which the financial asset is measured
       pengakuan awal dikurangi pembayaran pokok,                     at initial recognition minus the principal
       ditambah amortisasi kumulatif menggunakan                      repayments, plus the cumulative amortisation
       metode suku bunga efektif dari selisih antara nilai            using the effective interest method of any
       awal dan nilai jatuh temponya, disesuaikan                     difference between that initial amount and the
       dengan penyisihan kerugiannya. Di sisi lain,                   maturity amount, adjusted for any loss allowance.
       jumlah tercatat bruto aset keuangan adalah biaya               The gross carrying amount of a financial asset is
       perolehan diamortisasi dari aset keuangan,                     the amortized cost of a financial asset before
       sebelum      disesuaikan dengan        penyisihan              adjusting for any loss allowance.
       kerugian.

       Bunga diakui dengan menggunakan metode suku                    Interest income is recognized using the effective
       bunga efektif untuk instrumen utang yang diukur                interest method for debt instruments measured
       selanjutnya pada biaya perolehan diamortisasi                  subsequently at amortized cost and at FVTOCI.
       dan pada FVTOCI. Untuk instrumen keuangan                      For financial instruments other than purchased or
       lain, kecuali aset keuangan yang dibeli atau                   originated credit-impaired financial assets,
       berasal dari aset keuangan memburuk,                           interest income is calculated by applying the
       pendapatan bunga dihitung dengan menerapkan                    effective interest rate to the gross carrying amount
       suku bunga efektif terhadap jumlah tercatat bruto              of a financial asset, except for financial assets that
       aset keuangan, kecuali aset keuangan yang                      have subsequently become credit-impaired. For
       kemudian mengalami penurunan nilai kredit.                     financial assets that have subsequently become
       Untuk aset keuangan yang berasal dari aset                     credit-impaired, interest income is recognized by
       keuangan memburuk, pendapatan bunga diakui                     applying the effective interest rate to the
       dengan menerapkan suku bunga efektif terhadap                  amortized cost of the financial asset. If, in
       biaya perolehan diamortisasi dari aset keuangan                subsequent reporting periods, the credit risk on
       tersebut. Jika pada periode pelaporan keuangan                 the credit-impaired financial instrument improves
       selanjutnya, risiko kredit aset keuangan tersebut              so that the financial asset is no longer credit-
       membaik sehingga aset keuangan tidak lagi                      impaired, interest income is recognized by
       mengalami penurunan nilai kredit, maka                         applying the effective interest rate to the gross
       pendapatan bunga diakui dengan menerapkan                      carrying amount of the financial asset.
       suku bunga efektif terhadap jumlah tercatat bruto
       aset keuangan.




                                                             - 13 -
Page 524
PT BUSSAN AUTO FINANCE                                                            PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                              NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                      FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                   DECEMBER 31, 2023 AND 2022 - Continued

       Untuk aset keuangan yang dibeli atau berasal dari            For purchased or originated credit-impaired
       aset     keuangan      memburuk,     Perusahaan              financial assets, the Company recognizes interest
       mengakui      pendapatan      bunga      dengan              income by applying the credit-adjusted effective
       menerapkan suku bunga efektif yang disesuaikan               interest rate to the amortized cost of the financial
       dengan risiko kredit atas biaya perolehan                    asset from initial recognition. The calculation does
       diamortisasi dari aset keuangan sejak pengakuan              not revert to the gross basis even if the credit risk
       awal. Perhitungan tidak kembali ke basis bruto               of the financial asset subsequently improves so
       bahkan jika risiko kredit dari aset keuangan                 that the financial asset is no longer
       selanjutnya membaik sehingga aset keuangan                   credit-impaired.
       tidak lagi mengalami penurunan kredit.

       Pendapatan bunga diakui dalam laba rugi dan                  Interest income is recognized in profit or loss and
       dimasukkan    dalam     pos     “Pendapatan                  is included in the "Financing income" line item.
       pembiayaan”.

       Keuntungan dan kerugian kurs mata uang asing                 Foreign exchange gains and losses

       Jumlah tercatat aset keuangan dalam mata uang                The carrying amount of financial assets that are
       asing ditentukan dalam mata uang tersebut dan                denominated in a foreign currency is determined
       dijabarkan dengan menggunakan kurs spot pada                 in that foreign currency and translated at the spot
       setiap tanggal pelaporan. Secara spesifik untuk              rate at the end of each reporting period.
       aset keuangan diukur pada biaya perolehan                    Specifically for financial assets measured at
       diamortisasi yang bukan merupakan bagian dari                amortized cost that are not part of a designated
       hubungan lindung nilai ditetapkan, selisih kurs              hedging relationship, exchange differences are
       diakui dalam laba rugi.                                      recognized in profit or loss.

       Penurunan nilai aset keuangan                                Impairment of financial assets

       Perusahaan mengakui penyisihan kerugian atas                 The Company recognizes a loss allowance for
       kerugian kredit ekspektasian (“ECL”) dari piutang            expected credit losses (“ECL”) on financing
       pembiayaan dan piutang lain-lain yang diukur                 receivables and other accounts receivables that
       pada biaya perolehan diamortisasi. Nilai kerugian            are mealsured at amortized cost. The amount of
       kredit ekspektasian diperbarui pada tanggal                  expected credit losses is updated at each
       pelaporan untuk mencerminkan perubahan risiko                reporting date to reflect changes in credit risk
       kredit sejak pengakuan awal masing-masing                    since initial recognition of the respective financial
       instrumen keuangan.                                          instrument.

       Perusahaan mengakui ECL sepanjang umur                       The Company recognizes lifetime ECL when
       ketika telah ada peningkatan risiko kredit yang              there has been a significant increase in credit risk
       signifikan sejak pengakuan awal. Jika,                       since initial recognition. If, on the other hand, the
       sebaliknya, risiko kredit pada instrumen                     credit risk on the financial instrument has not
       keuangan tidak meningkat secara signifikan sejak             increased significantly since initial recognition, the
       pengakuan     awal,    Perusahaan     mengukur               Company measures the loss allowance for that
       penyisihan kerugian untuk instrumen keuangan                 financial instrument at an amount equal to 12-
       tersebut sejumlah ECL 12 bulan. Penilaian                    month ECL. The assessment of whether lifetime
       apakah ECL sepanjang umur harus diakui                       ECL should be recognized is based on significant
       didasarkan pada peningkatan signifikan dalam                 increases in the likelihood or risk of a default
       kemungkinan terjadinya atau pada risiko gagal                occurring since initial recognition instead of on
       bayar sejak pengakuan awal dan bukan                         evidence of a financial asset being credit impaired
       didasarkan pada bukti aset keuangan yang                     at the reporting date or an actual default
       mengalami kerugian kredit pada tanggal                       occurring.
       pelaporan atau kejadian gagal bayar sebenarnya.

       Kerugian kredit ekspektasian sepanjang umur                  Lifetime ECL represents the expected credit
       merupakan kerugian kredit ekspektasian yang                  losses that will result from all possible default
       timbul dari seluruh kemungkinan peristiwa gagal              events over the expected life of a financial
       bayar selama perkiraan umur instrumen                        instrument. In contrast, 12-month ECL represents
       keuangan. Sebaliknya, ECL 12 bulan mewakili                  the portion of lifetime ECL that is expected to
       porsi ECL sepanjang umur yang timbul dari                    result from default events on a financial
       peristiwa gagal bayar pada instrumen keuangan                instrument that are possible within 12 months
       yang mungkin terjadi dalam 12 bulan setelah                  after the reporting date.
       tanggal pelaporan.




                                                           - 14 -
Page 525
PT BUSSAN AUTO FINANCE                                                               PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                 NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                         FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                      DECEMBER 31, 2023 AND 2022 - Continued

       Peningkatan risiko kredit secara signifikan                    Significant increase in credit risk

       Dalam menilai apakah risiko kredit pada                        In assessing whether the credit risk on a financial
       instrumen keuangan telah meningkat secara                      instrument has increased significantly since initial
       signifikan sejak pengakuan awal, Perusahaan                    recognition, the Company compares the risk of a
       membandingkan risiko gagal bayar yang terjadi                  default occurring on the financial instrument as at
       pada instrumen keuangan pada tanggal                           the reporting date with the risk of a default
       pelaporan dengan risiko gagal bayar yang terjadi               occurring on the financial instrument as at the
       pada instrumen keuangan pada tanggal                           date of initial recognition. In making this
       pengakuan awal. Dalam melakukan penilaian,                     assessment, the Company considers both
       Perusahaan mempertimbangkan baik informasi                     quantitative and qualitative information that is
       kuantitatif maupun kualitatif yang wajar dan                   reasonable and supportable, including historical
       medukung, termasuk pengalaman historis dan                     experience and forward-looking information that is
       informasi bersifat perkiraan masa depan, yang                  available without undue cost or effort. Forward-
       tersedia tanpa biaya atau upaya berlebihan.                    looking information considered includes the future
       Informasi masa depan yang dipertimbangkan                      prospects of the industries in which the
       mencakup prospek masa depan industri di mana                   Company’s debtors operate, obtained from
       debitur Perusahaan beroperasi, yang diperoleh                  economic expert reports, financial analysts,
       dari laporan ahli ekonomi, analis keuangan,                    governmental bodies, relevant think-tanks and
       badan pemerintah, lembaga terkait, dan                         other similar organizations, as well as
       organisasi serupa lainnya, serta pertimbangan                  consideration of various external sources of
       berbagai sumber eksternal aktual dan prakiraan                 actual and forecast economic information that
       informasi ekonomi yang terkait dengan operasi                  relate to the Company’s core operations.
       inti Perusahaan.

       Secara khusus, informasi berikut diperhitungkan                In particular, the following information is taken into
       ketika menilai apakah risiko kredit telah meningkat            account when assessing whether credit risk has
       secara signifikan sejak pengakuan awal:                        increased significantly since initial recognition:

       ·   memburuknya kondisi usaha, keuangan atau                   ·   existing or forecast adverse changes in
           ekonomi yang terjadi saat ini atau prakiraan                   business, financial or economic conditions
           yang akan menyebabkan penurunan                                that are expected to cause a significant
           signifikan atas kemampuan peminjam untuk                       decrease in the debtor’s ability to meet its
           menyelesaikan kewajiban utangnya;                              debt obligations;
       ·   terdapat penurunan yang signifikan terhadap                ·   an actual or expected significant deterioration
           hasil operasi peminjam, baik secara aktual                     in the operating results of the debtor;
           atau yang diperkirakan akan terjadi;

       Terlepas dari hasil penilaian di atas, Perusahaan              Irrespective of the outcome of the above
       membuat praduga risiko kredit aset keuangan                    assessment, the Company presumes that the
       telah meningkat signifikan sejak pengakuan awal                credit risk on a financial asset has increased
       ketika pembayaran kontraktual tertunggak lebih                 significantly since initial recognition when
       dari 30 hari, kecuali jika Perusahaan memiliki                 contractual payments are more than 30 days past
       informasi yang wajar dan terdukung yang                        due, unless the Company has reasonable and
       menunjukkan hal sebaliknya.                                    supportable information that demonstrates
                                                                      otherwise.

       Meskipun demikian, Perusahaan mengasumsikan                    Despite the foregoing, the Company assumes that
       bahwa risiko kredit pada instrumen keuangan                    the credit risk on a financial instrument has not
       tidak meningkat secara signifikan sejak                        increased significantly since initial recognition if
       pengakuan awal jika instrumen keuangan                         the financial instrument is determined to have low
       tersebut ditetapkan memiliki risiko kredit yang                credit risk at the reporting date. A financial
       rendah pada tanggal pelaporan. Instrumen                       instrument is determined to have low credit risk if:
       keuangan bertekad memiliki risiko kredit rendah
       jika:

      1. instrumen keuangan memiliki risiko gagal                     1. the financial instrument has a low risk of
         bayar yang rendah;                                              default;

      2. debitur memiliki kapasitas yang kuat untuk                   2. the debtor has a strong capacity to meet its
         memenuhi kewajiban arus kas kontraktualnya                      contractual cash flow obligations in the near
         dalam waktu dekat; dan                                          term; and




                                                             - 15 -
Page 526
PT BUSSAN AUTO FINANCE                                                                PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                  NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                          FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                       DECEMBER 31, 2023 AND 2022 - Continued

      3. memburuknya kondisi ekonomi dan bisnis                        3. adverse changes in economic and business
         dalam jangka panjang dapat, tetapi tidak                         conditions in the longer term may, but will not
         selalu, menurunkan kemampuan peminjam                            necessarily, reduce the ability of the borrower
         untuk memenuhi kewajiban arus kas                                to fulfil its contractual cash flow obligations.
         kontraktualnya.

       Perusahaan menganggap aset keuangan                             The Company considers a financial asset to have
       memiliki risiko kredit rendah ketika aset memiliki              low credit risk when the asset has external credit
       peringkat kredit eksternal 'investment grade'                   rating of ‘investment grade’ in accordance with the
       sesuai dengan definisi yang dipahami secara                     globally understood definition or if an external
       global atau jika peringkat eksternal tidak tersedia,            rating is not available, the asset has an internal
       aset tersebut memiliki peringkat internal                       rating of ‘performing’. Performing means that the
       'performing'. Performing berarti bahwa rekanan                  counterparty has a strong financial position and
       memiliki posisi keuangan yang kuat dan tidak ada                there is no past due amounts.
       jumlah yang tertunggak.

       Perusahaan secara teratur memantau efektivitas                  The      Company      regularly   monitors      the
       kriteria yang digunakan untuk mengidentifikasi                  effectiveness of the criteria used to identify
       apakah telah terjadi peningkatan risiko kredit yang             whether there has been a significant increase in
       signifikan dan merevisinya jika perlu untuk                     credit risk and revises them as appropriate to
       memastikan bahwa kriteria tersebut mampu                        ensure that the criteria are capable of identifying
       mengidentifikasi peningkatan risiko kredit yang                 significant increase in credit risk before the
       signifikan sebelum jumlahnya jatuh tempo.                       amount becomes past due.

       Definisi gagal bayar                                            Definition of default

       Perusahaan menganggap hal-hal berikut ini                       The Company considers the following as
       merupakan peristiwa gagal bayar untuk tujuan                    constituting an event of default for internal credit
       manajemen risiko kredit internal karena                         risk management purposes as historical
       pengalaman historis menunjukkan bahwa aset                      experience indicates that financial assets that
       keuangan yang memenuhi salah satu kriteria                      meet either of the following criteria are generally
       berikut umumnya tidak dapat dipulihkan:                         not recoverable:
       ·   ketika terdapat pelanggaran persyaratan                     ·   when there is a breach of financial covenants
           keuangan oleh debitur; atau                                     by the debtor; or.

       ·   Informasi yang dikembangkan secara internal                 ·   Information developed internally or obtained
           atau diperoleh dari sumber eksternal                            from external sources indicates that the
           menunjukkan bahwa debitur kemungkinan                           debtor is unlikely to pay its creditors, including
           tidak akan membayar kreditornya, termasuk                       the Company, in full (without taking into
           Perusahaan,      secara   penuh     (tanpa                      account any collateral held by the Company).
           memperhitungkan jaminan yang dimiliki oleh
           Perusahaan).

       Terlepas dari analisis di atas, Perusahaan                      Irrespective of the above analysis, the Company
       menganggap bahwa gagal bayar telah terjadi                      considers that default has occurred when a
       ketika aset keuangan tertunggak lebih dari 90 hari              financial asset is more than 90 days past due
       kecuali jika Perusahaan memiliki informasi yang                 unless the Company has reasonable and
       wajar dan terdukung untuk menunjukkan bahwa                     supportable information to demonstrate that a
       kriteria yang lebih panjang lebih tepat.                        more lagging default criterion is more appropriate.

       Aset keuangan memburuk                                          Credit-impaired financial assets
       Aset keuangan mengalami penurunan nilai kredit                  A financial asset is credit-impaired when one or
       ketika satu atau lebih peristiwa yang memiliki                  more events that have a detrimental impact on the
       dampak buruk pada estimasi arus kas masa                        estimated future cash flows of that financial asset
       depan dari aset keuangan tersebut telah terjadi.                have occurred. Evidence that a financial asset is
       Bukti bahwa aset keuangan mengalami                             credit-impaired includes observable data about
       penurunan nilai termasuk data yang dapat                        the following events:
       diobservasi tentang peristiwa berikut:

       ·   kesulitan keuangan signifikan yang dialami                  ·   significant financial difficulty of the issuer or
           penerbit atau peminjam;                                         the borrower;



                                                              - 16 -
Page 527
PT BUSSAN AUTO FINANCE                                                               PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                 NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                         FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                      DECEMBER 31, 2023 AND 2022 - Continued

       ·   pelanggaran kontrak, seperti peristiwa gagal               ·   a breach of contract, such as a default or past
           bayar atau tunggakan;                                          due event;

       ·   pihak pemberi pinjaman, untuk alasan                       ·   the lender(s) of the borrower, for economic or
           ekonomik atau kontraktual sehubungan                           contractual reasons relating to the borrower’s
           dengan kesulitan keuangan yang dialami                         financial difficulty, having granted to the
           pihak peminjam, telah memberikan konsesi                       borrower a concession(s) that the lender(s)
           pada pihak peminjam yang tidak mungkin                         would not otherwise consider;
           diberikan jika pihak peminjam tidak
           mengalami kesulitan tersebut;

       ·   terjadi kemungkinan bahwa pihak peminjam                   ·   it is becoming probable that the borrower will
           akan dinyatakan pailit atau melakukan                          enter bankruptcy or other financial
           reorganisasi keuangan lainnya;                                 reorganization;

       ·   hilangnya pasar aktif untuk aset keuangan itu              ·   the disappearance of an active market for that
           akibat kesulitan keuangan; atau                                financial asset because of financial
                                                                          difficulties; or

       ·   pembelian atau penerbitan aset keuangan                    ·   the purchase or origination of a financial
           dengan diskon sangat besar             yang                    asset at a deep discount that reflects the
           mencerminkan kerugian kredit yang terjadi.                     incurred credit losses.
       Kebijakan penghapusan                                          Write-off policy

       Perusahaan menghapuskan aset keuangan                          The Company writes off a financial asset when
       ketika ada informasi yang menunjukkan bahwa                    there is information indicating that the
       pihak lawan berada dalam kesulitan keuangan                    counterparty is in severe financial difficulty and
       yang buruk dan tidak ada prospek pemulihan                     there is no realistic prospect of recovery, e.g.
       yang realistis, contoh ketika pihak lawan dalam                when the counterparty has been placed under
       proses likuidasi atau telah memasuki proses                    liquidation or has entered into bankruptcy
       kebangkrutan,     atau    untuk    hal    piutang              proceedings, or in the case of financing
       pembiayaan, ketika jumlahnya sudah lebih dari                  receivables, when the amounts are over 180 days
       180 hari tertunggak, mana yang terjadi lebih dulu.             past due, whichever occurs sooner. Financial
       Aset keuangan yang dihapuskan dapat                            assets written off may still be subject to
       menjadi subjek aktivitas paksaan dalam                         enforcement activities under the Company’s
       prosedur pemulihan Perusahaan, dengan                          recovery procedures, taking into account legal
       mempertimbangkan nasihat hukum yang sesuai.                    advice where appropriate. Any recoveries made
       Setiap pemulihan yang terjadi diakui dalam laba                are recognized in profit or loss.
       rugi.
       Pengukuran dan pengakuan atas kerugian kredit                  Measurement and recognition of expected credit
       ekspektasian                                                   losses
       Pengukuran kerugian kredit ekspektasian                        The measurement of expected credit losses is a
       merupakan fungsi dari probability of default, loss             function of the probability of default, loss given
       given default (yaitu besarnya kerugian jika terjadi            default (i.e. the magnitude of the loss if there is a
       gagal bayar) dan eksposur pada gagal bayar.                    default) and the exposure at default. The
       Penilaian probability of default dan loss given                assessment of the probability of default and loss
       default berdasarkan data           historis yang               given default is based on historical data adjusted
       disesuaikan dengan informasi masa depan                        by forward-looking information as described
       seperti dijelaskan di atas. Adapun eksposur atas               above. As for the exposure at default, for financial
       gagal bayar, untuk aset keuangan, diwakili oleh                assets, this is represented by the assets’ gross
       nilai tercatat bruto aset pada tanggal pelaporan;              carrying amount at the reporting date; for financial
       untuk kontrak jaminan keuangan, eksposur                       guarantee contracts, the exposure includes the
       mencakup jumlah yang ditarik pada tanggal                      amount drawn down as at the reporting date,
       pelaporan, ditambah dengan jumlah yang                         together with any additional amounts expected to
       diperkirakan akan ditarik di masa depan sebelum                be drawn down in the future by default date
       tanggal gagal bayar yang ditentukan berdasarkan                determined based on historical trend, the
       tren historis, pemahaman Perusahaan mengenai                   Company’s understanding of the specific future
       kebutuhan pembiayaan masa depan yang                           financing needs of the debtors, and other relevant
       spesifik dari debiturnya, dan informasi perkiraan              forward-looking information.
       masa depan lainnya yang relevan.



                                                             - 17 -
Page 528
PT BUSSAN AUTO FINANCE                                                              PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                        FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                     DECEMBER 31, 2023 AND 2022 - Continued

       Untuk     aset    keuangan,    kerugian    kredit             For financial assets, the expected credit loss is
       ekspektasian diestimasi sebagai selisih antara                estimated as the difference between all
       seluruh arus kas kontraktual yang jatuh tempo                 contractual cash flows that are due to the
       kepada Perusahaan sesuai dengan kontrak dan                   Company in accordance with the contract and all
       seluruh arus kas yang diekspektasi akan diterima              the cash flows that the Company expects to
       oleh Perusahaan, didiskontokan pada suku bunga                receive, discounted at the original effective
       efektif awal. Untuk piutang sewa, arus kas yang               interest rate. For a lease receivable, the cash
       digunakan untuk menentukan kerugian kredit                    flows used for determining the expected credit
       ekspektasian konsisten dengan arus kas yang                   losses is consistent with the cash flows used in
       digunakan dalam mengukur piutang sewa                         measuring the lease receivable in accordance
       berdasarkan PSAK 73.                                          with PSAK 73.

       Apabila kerugian kredit ekspektasian sepanjang                Where lifetime ECL is measured on a collective
       umur diukur secara kolektif untuk kasus dimana                basis to cater for cases where evidence of
       bukti kenaikan signifikan risiko kredit pada level            significant increases in credit risk at the individual
       instrumen invidual tidak tersedia, instrumen                  instrument level may not yet be available, the
       keuangan dikelompokkan dengan dasar sebagai                   financial instruments are grouped on the following
       berikut:                                                      basis:

       ·   Sifat instrumen keuangan (yaitu piutang lain-             ·   Nature of financial instruments (i.e. other
           lain dan piutang pembiayaan) masing-masing                    receivables and financing receivables are
           dinilai sebagai grup terpisah;                                each assessed as a separate group;

       ·   Status jatuh tempo;                                       ·   Past-due status;

       ·   Sifat, besaran dan jenis industri debitur;                ·   Nature, size and industry of debtors;

       ·   Sifat jaminan untuk piutang pembiayaan; dan               ·   Nature    of    collaterals      for    financing
                                                                         receivables; and

       ·   Peringkat kredit eksternal jika tersedia.                 ·   External credit ratings where available.

       Pengelompokan ditelaah secara teratur oleh                    The grouping is regularly reviewed by
       manajemen untuk memastikan setiap kelompok                    management to ensure the constituents of each
       mempunyai karakteristik risiko yang sama.                     group continue to share similar credit risk
                                                                     characteristics.

       Jika Perusahaan telah mengukur cadangan                       If the Company has measured the loss allowance
       kerugian untuk instrumen keuangan sebesar ECL                 for a financial instrument at an amount equal to
       sepanjang umurnya pada periode pelaporan                      lifetime ECL in the previous reporting period, but
       sebelumnya, tetapi menentukan pada tanggal                    determines at the current reporting date that the
       pelaporan kini bahwa kondisi untuk ECL                        conditions for lifetime ECL are no longer met, the
       sepanjang umurnya tidak lagi terpenuhi,                       Company measures the loss allowance at an
       Perusahaan mengukur cadangan kerugian                         amount equal to 12-month ECL at the current
       sejumlah ECL 12 bulan pada tanggal pelaporan                  reporting date, except for assets for which the
       kini, kecuali untuk aset yang menggunakan                     simplified approach was used
       pendekatan yang disederhanakan.

       Perusahaan mengakui keuntungan atau kerugian                  The Company recognizes an impairment gain or
       penurunan nilai dalam laba rugi untuk semua                   loss in profit or loss for all financial instruments
       instrumen keuangan dengan penyesuaian terkait                 with a corresponding adjustment to their carrying
       ke jumlah tercatat melalui akun cadangan                      amount through a loss allowance account, except
       kerugian, kecuali untuk investasi pada instrumen              for investments in debt instruments that are
       utang yang diukur pada FVTOCI, dimana                         measured at FVTOCI, for which the loss
       penyisihan kerugian diakui dalam penghasilan                  allowance is recognized in other comprehensive
       komprehensif lain dan diakumulasi dalam                       income and accumulated in the investment
       cadangan revaluasi investasi, dan tidak                       revaluation reserve, and does not reduce the
       mengurangi nilai tercatat aset keuangan pada                  carrying amount of the financial asset in the
       laporan posisi keuangan.                                      statement of financial position.




                                                            - 18 -
Page 529
PT BUSSAN AUTO FINANCE                                                            PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                              NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                      FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                   DECEMBER 31, 2023 AND 2022 - Continued

       Penghentian pengakuan aset keuangan                          Derecognition of financial assets

       Perusahaan menghentikan pengakuan aset                       The Company derecognizes a financial asset only
       keuangan jika dan hanya jika hak kontraktual atas            when the contractual rights to the cash flows from
       arus kas yang berasal dari aset keuangan                     the asset expire, or it transfers the financial asset
       berakhir, atau Perusahaan mentransfer aset                   and substantially all the risks and rewards of
       keuangan dan secara substansial mentransfer                  ownership of the asset to another entity. If the
       seluruh risiko dan manfaat atas kepemilikan aset             Company        neither transfers       nor    retains
       kepada entitas lain. Jika Perusahaan tidak                   substantially all the risks and rewards of
       mentransfer serta tidak memiliki secara                      ownership and continues to control the
       substansial seluruh risiko dan manfaat                       transferred asset, the Company recognizes its
       kepemilikan serta masih mengendalikan asset                  retained interest in the asset and an associated
       yang ditransfer, maka Perusahaan mengakui                    liability for amounts it may have to pay. If the
       keterlibatan berkelanjutan atas aset yang                    Company retains substantially all the risks and
       ditransfer dan liabilitas terkait sebesar jumlah             rewards of ownership of a transferred financial
       yang mungkin harus dibayar. Jika Perusahaan                  asset, the Company continues to recognize the
       memiliki secara substansial seluruh risiko dan               financial asset and also recognizes a
       manfaat kepemilikan aset keuangan yang                       collateralized borrowing for the proceeds
       ditransfer, Perusahaan masih mengakui asset                  received.
       keuangan dan juga mengakui pinjaman yang
       dijamin sebesar pinjaman yang diterima.

       Pada penghentian pengkuan aset keuangan yang                 On derecognition of a financial asset measured at
       diukur pada biaya perolehan diamortisasi,                    amortized cost, the difference between the
       perbedaan antara nilai tercatat aset dan jumlah              asset’s carrying amount and the sum of the
       imbalan yang diterima dan piutang diakui dalam               consideration received and receivable is
       laba rugi. Selain itu, pada penghentian pengakuan            recognized in profit or loss. In addition, on
       investasi     dalam      instrumen   utang   yang            derecognition of an investment in a debt
       diklasifikasikan sebagai FVTOCI, keuntungan                  instrument classified as at FVTOCI, the
       atau kerugian kumulatif yang sebelumnya                      cumulative gain or loss previously accumulated in
       diakumulasi dalam cadangan revaluasi investasi,              the investment revaluation reserve is reclassified
       direklasifikasi ke laba rugi. Sebaliknya, pada               to profit or loss. In contrast, on derecognition of an
       penghentian       pengakuan      investasi  dalam            investment in an equity instrument which the
       instrumen ekuitas yang telah dipilih Perusahaan              Company has elected on initial recognition to
       pada pengakuan awal untuk diukur di FVTOCI,                  measure at FVTOCI, the cumulative gain or loss
       keuntungan atau kerugian kumulatif yang                      previously accumulated in the investment
       sebelumnya diakumulasi dalam cadangan                        revaluation reserve is not reclassified to profit or
       revaluasi investasi tidak direklasifikasi ke laba            loss, but is transferred to retained earnings.
       rugi, tetapi dipindahkan ke saldo laba.

       Liabilitas Keuangan dan Instrumen Ekuitas                    Financial Liabilities and Equity Instruments

       Klasifikasi sebagai liabilitias atau ekuitas                 Classification as debt or equity

       Instrumen utang dan ekuitas yang diterbitkan oleh            Debt and equity instruments issued by the
       Perusahaan diklasifikasi sebagai liabilitas                  Company are classified as financial liabilities or
       keuangan atau ekuitas sesuai dengan substansi                equity according to the substance of the
       perjanjian kontraktual dan definisi liabilitas               contractual arrangements entered into and the
       keuangan dan instrumen ekuitas.                              definitions of a financial liability and an equity
                                                                    instrument.

       Instrumen ekuitas                                            Equity instruments

       Instrumen ekuitas adalah setiap kontrak yang                 An equity instrument is any contract that
       memberikan hak residual atas aset Perusahaan                 evidences a residual interest in the assets of an
       setelah dikurangi dengan seluruh liabilitasnya.              entity after deducting all of its liabilities. Equity
       Instrumen ekuitas yang diterbitkan oleh                      instruments issued by the Company are recorded
       Perusahaan dicatat sebesar hasil penerimaan                  at the proceeds received, net of direct issue costs.
       bersih setelah dikurangi biaya penerbitan
       langsung.




                                                           - 19 -
Page 530
PT BUSSAN AUTO FINANCE                                                                PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                  NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                          FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                       DECEMBER 31, 2023 AND 2022 - Continued

       Liabilitas keuangan                                             Financial liabilities

       Liabilitas keuangan diklasifikasikan sebagai                    Financial liabilities are classified as either financial
       FVTPL atau pada biaya perolehan diamortisasi.                   liabilities “at FVTPL” or “at amortized cost”.

       Namun, liabilitas keuangan yang timbul ketika                   However, financial liabilities that arise when a
       pengalihan aset keuangan tidak memenuhi syarat                  transfer of a financial asset does not qualify for
       untuk penghentian pengakuan atau ketika                         derecognition or when the continuing involvement
       pendekatan        keterlibatan     berkelanjutan                approach applies, financial guarantee contracts
       diterapkan, kontrak jaminan keuangan yang                       issued by the Company, and commitments issued
       diterbitkan oleh Perusahaan, dan komitmen yang                  by the Company to provide a loan at below-market
       diterbitkan oleh Perusahaan untuk memberikan                    interest rate are measured in accordance with the
       pinjaman dengan tingkat bunga di bawah pasar                    specific accounting policies set out below.
       diukur sesuai dengan kebijakan akuntansi spesifik
       yang diungkapkan di bawah ini.

       Liabilitas keuangan      pada    biaya   perolehan              Financial liabilities at amortized cost
       diamortisasi

       Liabilitas keuangan yang bukan merupakan                        Financial liabilities that are not 1) contingent
       1) imbalan kontinjen dari pihak pengakuisisi                    consideration of an acquirer in a business
       dalam kombinasi bisnis, 2) dimiliki untuk                       combination, 2) held-for-trading, or 3) designated
       diperdagangkan, atau 3) ditetapkan sebagai                      as at FVTPL, are subsequently measured at
       FVTPL, selanjutnya diukur pada biaya perolehan                  amortized cost using the effective interest
       diamortisasi dengan menggunakan metode suku                     method.
       bunga efektif.

       Metode suku bunga efektif                                       Effective interest method

       Metode suku bunga efektif adalah metode yang                    The effective interest method is a method of
       digunakan untuk menghitung biaya perolehan                      calculating the amortized cost of a financial
       diamortisasi dari liabilitas keuangan dan metode                liability and of allocating interest expense over the
       untuk mengalokasikan biaya bunga selama                         relevant period. The effective interest rate is the
       periode yang relevan. Suku bunga efektif adalah                 rate that exactly discounts estimated future cash
       suku bunga yang secara tepat mendiskontokan                     payments (including all fees and points paid or
       estimasi pembayaran kas masa depan (mencakup                    received that form an integral part of the effective
       seluruh komisi dan bentuk lain yang dibayarkan                  interest rate, transaction costs and other
       dan diterima yang merupakan bagian yang tak                     premiums or discounts) through the expected life
       terpisahkan dari suku bunga efektif, biaya transaksi            of the financial liability, or (where appropriate) a
       dan premium dan diskonto lainnya) selama                        shorter period to the net carrying amount on initial
       perkiraan umur liabilitas keuangan, atau (jika lebih            recognition.
       tepat) digunakan periode yang lebih singkat untuk
       memperoleh nilai tercatat bersih pada saat
       pengakuan awal.

       Keuntungan dan kerugian kurs mata uang asing                    Foreign exchange gains and losses

       Untuk liabilitas keuangan dalam mata uang asing                 For financial liabilities that are denominated in a
       dan diukur pada biaya perolehan diamortisasi                    foreign currency and are measured at amortized
       pada setiap tanggal pelaporan, keuntungan atau                  cost as at each reporting date, the foreign
       kerugian kurs mata uang asing ditentukan                        exchange gains and losses are determined based
       berdasarkan biaya perolehan diamortisasi dari                   on the amortized cost of the instruments. These
       instrumen. Keuntungan atau kerugian kurs mata                   foreign exchange gains and losses are
       uang asing diakui dalam laba rugi untuk liabilitas              recognized in profit or loss for financial liabilities
       keuangan yang tidak merupakan bagian dari                       that are not part of a designated hedging
       hubungan lindung nilai ditetapkan. Untuk yang                   relationship. For those which are designated as a
       ditetapkan sebagai instrumen lindung nilai untuk                hedging instrument for a hedge of foreign
       lindung nilai atas risiko mata uang asing,                      currency risk, foreign exchange gains and losses
       keuntungan dan kerugian selisih kurs diakui                     are recognized in other comprehensive income
       dalam penghasilan komprehensif lain dan                         and accumulated in a separate component of
       diakumulasikan dalam komponen ekuitas yang                      equity.
       terpisah.




                                                              - 20 -
Page 531
PT BUSSAN AUTO FINANCE                                                                       PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                         NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                                 FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                              DECEMBER 31, 2023 AND 2022 - Continued

        Nilai wajar liabilitas keuangan dalam mata uang                       The fair value of financial liabilities denominated
        asing ditentukan dalam mata uang asing tersebut                       in a foreign currency is determined in that foreign
        dan dijabarkan pada kurs yang berlaku pada akhir                      currency and translated at the spot rate at the end
        periode pelaporan. Untuk liabilitas keuangan yang                     of the reporting period. For financial liabilities that
        diukur pada FVTPL, komponen nilai tukar mata                          are measured as at FVTPL, the foreign exchange
        uang asing merupakan bagian dari keuntungan                           component forms part of the fair value gains or
        atau kerugian nilai wajar dan diakui dalam laba                       losses and is recognized in profit or loss for
        rugi untuk liabilitas keuangan yang tidak                             financial liabilities that are not part of a designated
        merupakan bagian dari hubungan lindung nilai                          hedging relationship.
        ditetapkan.

        Penghentian pengakuan liabilitas keuangan                             Derecognition of financial liabilities

        Perusahaan menghentikan pengakuan liabilitas                          The Company derecognizes financial liabilities
        keuangan, jika dan hanya jika, liabilitas                             when, and only when, the Company’s obligations
        Perusahaan telah dilepaskan, dibatalkan atau                          are discharged, cancelled or have expired. The
        kadaluarsa. Selisih antara jumlah tercatat liabilitas                 difference between the carrying amount of the
        keuangan yang dihentikan pengakuannya dan                             financial     liability derecognized and the
        imbalan yang dibayarkan dan utang diakui dalam                        consideration paid and payable is recognized in
        laba rugi.                                                            profit or loss.

        Ketika Perusahaan bertukar dengan pemberi                             When the Company exchanges with the existing
        pinjaman, satu instrumen utang menjadi                                lender one debt instrument into another one with
        instrumen lain dengan persyaratan yang berbeda                        the substantially different terms, such exchange
        secara substansial, pertukaran tersebut dicatat                       is accounted for as an extinguishment of the
        sebagai penghapusan liabilitas keuangan orisinal                      original financial liability and the recognition of a
        dan pengakuan liabilitas keuangan baru.                               new financial liability. Similarly, the Company
        Demikian pula, Perusahaan memperhitungkan                             accounts for substantial modification of terms of
        modifikasi substansial dari ketentuan liabilitas                      an existing liability or part of it as an
        yang ada atau bagian dari liabilitas tersebut                         extinguishment of the original financial liability
        sebagai pelepasan liabilitas keuangan orisinal                        and the recognition of a new liability. It is assumed
        dan pengakuan liabilitas baru. Diasumsikan                            that the terms are substantially different if the
        bahwa       persyaratannya        berbeda     secara                  discounted present value of the cash flows under
        substansial jika nilai kini arus kas yang didiskonto                  the new terms, including any fees paid net of any
        berdasarkan persyaratan yang baru, termasuk                           fees received and discounted using the original
        setiap fee (imbalan) yang dibayarkan setelah                          effective rate is at least 10 per cent different from
        dikurangi setiap fee (imbalan) yang diterima dan                      the discounted present value of the remaining
        didiskonto menggunakan suku bunga efektif                             cash flows of the original financial liability. If the
        orisinal, berbeda sedikitnya 10% dari nilai kini sisa                 modification is not substantial, the difference
        arus kas yang didiskonto yang berasal dari                            between: (1) the carrying amount of the liability
        liabilitas keuangan orisinal. Jika modifikasi tidak                   before the modification; and (2) the present value
        substansial, maka perbedaan antara: (1) jumlah                        of the cash flows after modification is recognized
        tercatat liabilitas sebelum modifikasi; dan (2) nilai                 in profit or loss as the modification gain or loss
        kini dari arus kas setelah modifikasi, diakui dalam                   within other gains and losses.
        laba rugi sebagai keuntungan atau kerugian
        modifikasi dalam keuntungan dan kerugian
        lainnya.

   f.   Saling hapus antar Aset Keuangan dan                             f.   Netting of Financial Assets and Financial
        Liabilitas Keuangan                                                   Liabilities

        Aset dan liabilitas keuangan Perusahaan saling                        Financial assets and liabilities are offset and the
        hapus dan nilai bersihnya disajikan dalam laporan                     net amount presented in the statements of
        posisi keuangan jika:                                                 financial position when it:

        ·    memiliki hak yang dapat dipaksakan secara                        ·     has a legally enforceable right to set off the
             hukum untuk melakukan saling hapus atas                                recognized amounts; and
             jumlah yang telah diakui tersebut; dan
        ·    berintensi untuk menyelesaikan secara neto                       ·     intends either to settle on a net basis, or to
             atau untuk merealisasikan aset dan                                     realize the asset and settle the liability
             menyelesaikan liabilitasnya secara simultan.                           simultaneously.




                                                                - 21 -
Page 532
PT BUSSAN AUTO FINANCE                                                                       PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                         NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                                 FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                              DECEMBER 31, 2023 AND 2022 - Continued

        Hak saling hapus harus ada pada saat ini dan                          A right to set-off must be available today rather
        tidak bersifat kontinjen atas terjadinya suatu                        than being contingent on a future event and must
        peristiwa di masa depan dan harus dieksekusi                          be exercizable by any of the counterparties, both
        oleh pihak lawan, baik dalam situasi bisnis normal                    in the normal course of business and in the event
        dan dalam peristiwa gagal bayar, peristiwa                            of default, insolvency or bankruptcy.
        kepailitan atau kebangkrutan.

   g.   Instrumen Derivatif                                              g.   Derivative Instrument

        Perusahaan menggunakan instrumen keuangan                             The Company uses derivative financial
        derivatif untuk mengelola risiko suku bunga dan                       instruments to manage its exposure to interest
        nilai tukar mata uang asing.                                          rate and foreign exchange rate risk.

        Derivatif awalnya diakui pada nilai wajar pada                        Derivatives are initially recognized at fair value at
        tanggal kontrak dilakukan dan selanjutnya diukur                      the date the derivative contract are entered into
        kembali pada nilai wajar pada setiap akhir periode                    and are subsequently remeasured to their fair
        pelaporan. Dampak keuntungan atau kerugian                            value at the end of each reporting date. The
        diakui segera di laba rugi kecuali jika derivatif                     resulting gain or loss is recognized in profit or loss
        ditetapkan dan efektif sebagai instrumen lindung                      immediately unless the derivative is designated
        nilai di mana saat pengakuan di laba rugi                             and effective as hedging instrument in which
        bergantung pada sifat dari hubungan lindung nilai.                    event the timing of the recognition in profit or loss
                                                                              depends on the nature of the hedge relationship.

        Derivatif dengan nilai wajar positif diakui sebagai                   A derivative with a positive fair value is recognized
        aset keuangan sedangkan derivatif dengan nilai                        as a financial asset whereas a derivative with a
        wajar negatif diakui sebagai liabilitas keuangan.                     negative fair value is recognized as a financial
        Derivatif tidak saling hapus dalam laporan                            liability. Derivatives are not offset in the financial
        keuangan kecuali Perusahaan memiliki hak yang                         statements unless the Company has both a
        memiliki kekuatan hukum dan intensi untuk saling                      legally enforceable right and intention to offset.
        hapus.

        Akuntansi lindung nilai                                               Hedge Accounting

        Perusahaan menetapkan instrumen lindung nilai                         The Company designates certain hedging
        tertentu, termasuk derivatif lindung nilai atas arus                  instruments, which include derivatives cash flow
        kas.                                                                  hedges.

        Pada saat dimulainya hubungan lindung nilai,                          At the inception of the hedge relationship, the
        Perusahaan mendokumentasi hubungan antara                             Company documents the relationship between
        instrumen lindung nilai dan item yang dilindung                       the hedging instrument and the hedged item,
        nilai, bersama dengan tujuan manajemen risiko                         along with its risk management objectives and its
        dan strategi pelaksanaan lindung nilai.                               strategy for undertaking various hedge
        Selanjutnya, pada insepsi lindung nilai dan secara                    transactions. Furthermore, at the inception of the
        berkelanjutan, Perusahaan mendokumentasikan                           hedge and on an ongoing basis, the Company
        apakah instrumen lindung nilai tersebut efektif                       documents whether the hedging instrument is
        dalam saling hapus antara perubahan nilai wajar                       effective in offsetting changes in fair values or
        atau arus kas dari item lindung nilaian, yaitu ketika                 cash flows of the hedged item attributable to the
        hubungan lindung nilai memenuhi seluruh                               hedged risk, which is when the hedging
        persyaratan efektivitas lindung nilai berikut:                        relationships meet all of the following hedge
                                                                              effectiveness requirements:

        ·   Ada ”hubungan ekonomik” antara item                               ·   There is ‘an economic relationship’ between
            lindung nilaian dan instrumen lindung nilai;                          the hedged item and the hedging instrument;

        ·   Pengaruh risiko kredit tidak ”mendominasi                         ·   The effect of credit risk does not ‘dominate
            perubahan nilai” yang dihasilkan dari                                 the value changes’ that result from that
            hubungan ekonomik tersebut; dan                                       economic relationship; and




                                                                - 22 -
Page 533
PT BUSSAN AUTO FINANCE                                                               PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                 NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                         FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                      DECEMBER 31, 2023 AND 2022 - Continued

       ·   Rasio lindung nilai dari hubungan lindung nilai            ·   The hedge ratio of the hedging relationship is
           adalah sama dengan yang dihasilkan dari                        the same as that resulting from the quantity of
           kuantitas item lindung nilaian yang secara                     the hedged item that the Company actually
           aktual dilindung nilai oleh Perusahaan dan                     hedges and the quantity of the hedging
           kuantitas instrumen lindung nilai yang secara                  instrument that the Company actually uses to
           aktual    digunakan       Perusahaan    untuk                  hedge that quantity of hedged item.
           melindung nilai sejumlah kuantitas item
           lindung nilaian tersebut.

       Jika hubungan lindung nilai tidak lagi memenuhi                If a hedging relationship ceases to meet the
       persyaratan efektivitas lindung nilai yang                     hedge effectiveness requirement relating to the
       berkaitan dengan rasio lindung nilai tetapi tujuan             hedge ratio but the risk management objective for
       manajemen risiko untuk hubungan lindung nilai                  that designated hedging relationship remains the
       yang ditetapkan tetap sama, Perusahaan                         same, the Company adjusts the hedge ratio of the
       menyesuaikan rasio lindung nilai dari hubungan                 hedging relationship (i.e. rebalances the hedge)
       lindung      nilai       tersebut      (misalnya,              so that it meets the qualifying criteria again.
       menyeimbangkan kembali lindung nilai) sehingga
       memenuhi kriteria kualifikasi lagi.

       Perusahaan menetapkan perubahan penuh                          The Company designates the full change in the
       dalam nilai wajar kontrak berjangka (misalnya                  fair value of a forward contract (i.e. including the
       termasuk elemen berjangka) sebagai instrumen                   forward elements) as the hedging instrument for
       lindung nilai untuk semua hubungan lindung nilai               all of its hedging relationships involving forward
       yang melibatkan kontrak berjangka.                             contracts.
       Catatan 29 menetapkan rincian dari nilai wajar                 Note 29 sets out details of the fair values of the
       instrumen derivatif yang digunakan untuk tujuan                derivative instruments used for hedging purposes.
       lindung nilai.
       Lindung Nilai atas Arus Kas                                    Cash flow hedge
       Bagian efektif dari perubahan nilai wajar derivatif            The effective portion of changes in the fair value
       dan instrumen lindung nilai lain yang memenuhi                 of derivatives and other qualifying hedging
       syarat yang ditetapkan dan memenuhi syarat                     instruments that are designated and qualify as
       sebagai lindung nilai arus kas, diakui dalam                   cash flow hedges is recognized in other
       penghasilan komprehensif lain dan diakumulasi                  comprehensive income and accumulated under
       dalam pos cadangan lindung nilai arus kas,                     the heading of cash flow hedging reserve, limited
       terbatas pada perubahan kumulatif dalam nilai                  to the cumulative change in fair value of the
       wajar dari item lindung nilaian sejak dimulainya               hedged item from inception of the hedge. The gain
       lindung nilai. Keuntungan atau kerugian yang                   or loss relating to the ineffective portion is
       terkait dengan bagian yang tidak efektif diakui                recognized immediately in profit or loss, and is
       segera dalam laba rugi, dan dimasukkan dalam                   included in the “other gains and losses - net” line
       baris “keuntungan dan kerugian lain - bersih”.                 item.
       Jumlah yang sebelumnya diakui dalam                            Amounts previously recognized in other
       penghasilan komprehensif lain dan diakumulasi                  comprehensive income and accumulated in
       dalam ekuitas direklasifikasi ke laba rugi pada                equity are reclassified to profit or loss in the
       periode ketika item lindung nilaian mempengaruhi               periods when the hedged item affects profit or
       laba rugi, di pos yang sama dengan item lindung                loss, in the same line as the recognized hedged
       nilaian yang diakui. Namun, ketika prakiraan                   item. However, when the hedged forecast
       transaksi lindung nilai menghasilkan pengakuan                 transaction results in the recognition of a non-
       aset non-keuangan atau liabilitas non-keuangan,                financial asset or a non-financial liability, the gains
       keuntungan dan kerugian yang sebelumnya                        and losses previously recognized in other
       diakui dalam penghasilan komprehensif lain dan                 comprehensive income and accumulated in
       diakumulasi dalam ekuitas, menjadi dihapus dari                equity are removed from equity and included in
       ekuitas dan dimasukkan dalam pengukuran awal                   the initial measurement of the cost of the non-
       biaya aset non-keuangan atau liabilitas non-                   financial asset or non-financial liability. This
       keuangan. Transfer ini tidak mempengaruhi                      transfer does not affect other comprehensive
       penghasilan komprehensif lain. Selanjutnya, jika               income. Furthermore, if the group expects that
       grup memperkirakan bahwa sebagian atau                         some or all of the loss accumulated in other
       seluruh kerugian yang diakumulasi dalam                        comprehensive income will not be recovered in
       penghasilan komprehensif lain tidak akan                       the future, that amount is immediately reclassified
       terpulihkan di masa depan, jumlah tersebut                     to profit or loss.
       segera direklasifikasi ke laba rugi.



                                                             - 23 -
Page 534
PT BUSSAN AUTO FINANCE                                                                   PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                     NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                             FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                          DECEMBER 31, 2023 AND 2022 - Continued

        Perusahaan menghentikan akuntansi lindung nilai                    The Company discontinues hedge accounting
        hanya jika hubungan lindung nilai (atau bagian                     only when the hedging relationship (or a part
        darinya) tidak lagi memenuhi kriteria kualifikasi                  thereof) ceases to meet the qualifying criteria
        (setelah penyeimbangan kembali, jika berlaku).                     (after rebalancing, if applicable). This includes
        Ini termasuk contoh ketika instrumen lindung nilai                 instances when the hedging instrument expires or
        kadaluwarsa atau dijual, dihentikan atau                           is sold, terminated or exercised. The
        dilaksanakan.     Penghentian     diperhitungkan                   discontinuation is accounted for prospectively.
        secara prospektif. Keuntungan atau kerugian                        Any gain or loss recognized in other
        yang diakui dalam penghasilan komprehensif lain                    comprehensive income and accumulated in
        dan diakumulasi dalam ekuitas pada saat itu tetap                  equity at that time remains in equity and is
        berada dalam ekuitas dan diakui pada saat                          recognized when the forecast transaction is
        prakiraan transaksi akhirnya diakui dalam laba                     ultimately recognized in profit or loss. When a
        rugi. Ketika prakiraan transaksi tidak lagi                        forecast transaction is no longer expected to
        diharapkan terjadi, keuntungan atau kerugian                       occur, the gain or loss accumulated in equity is
        yang diakumulasi dalam ekuitas segera diakui                       recognized immediately in profit or loss.
        dalam laba rugi.

   h.   Piutang Pembiayaan                                            h.   Financing Receivables

        Pembiayaan konsumen                                                Consumer financing

        Piutang pembiayaan disajikan dalam nilai bersih                    Financing receivables are presented net of
        setelah     dikurangi     bagian     pendapatan                    unearned financing income and allowance for
        pembiayaan yang belum diakui dan cadangan                          expected credit losses (Note 3e).
        kerugian kredit ekspektasian (Catatan 3e).

        Piutang pembiayaan konsumen diklasifikasikan                       Consumer financing receivables are classified as
        sebagai    diukur     pada    biaya   perolehan                    at amortized cost, and subsequent to initial
        diamortisasi, dan setelah pengakuan awal, dicatat                  recognition, are carried at amortized cost using
        pada biaya perolehan diamortisasi dengan                           the effective interest rate method.
        menggunakan metode suku bunga efektif.

        Pendapatan pembiayaan konsumen yang belum                          Unearned consumer financing income represents
        diakui merupakan selisih antara jumlah                             the difference between total installments to be
        keseluruhan pembayaran angsuran yang akan                          received from the consumer and the principal
        diterima dari konsumen dan jumlah pokok                            amount financed, which is recognized as income
        pembiayaan, yang diakui sebagai pendapatan                         over the term of the contract based on effective
        selama jangka waktu kontrak berdasarkan tingkat                    interest rate of the related consumer financing
        suku bunga efektif dari piutang pembiayaan                         receivable.
        konsumen.
        Termasuk      dalam       piutang   pembiayaan                     Included in consumer financing receivables are
        konvensional terdiri dari pembiayaan multi guna,                   multi purpose financing, investment financing and
        investasi dan modal kerja.                                         working capital financing.
        Pembiayaan Murabahah                                               Murabahah financing

        Murabahah adalah akad jual beli barang dengan                      Murabahah is goods sell-buy contract with selling
        harga jual sebesar biaya perolehan ditambah                        price amounting to acquisition cost plus agreed
        keuntungan yang disepakati dan Perusahaan                          margin, and the Company must disclose the
        harus mengungkapkan biaya perolehan barang                         acquisition cost to consumer. When the
        tersebut kepada konsumen. Pada saat akad                           murabahah contract is signed, murabahah
        murabahah ditandatangani/disepakati, piutang                       financing receivables are recognized at
        pembiayaan murabahah diakui sebesar biaya                          acquisition cost plus agreed margin. Murabahah
        perolehan ditambah keuntungan (margin yang                         margin is recognized over the year of the contract
        disepakati). Keuntungan murabahah diakui                           based on margin of the murabahah financing
        selama tahun akad berdasarkan margin dari                          receivables. Substantially, murabahah contract is
        piutang     pembiayaan   murabahah.       Akad                     a financing transaction, so that margin recognition
        murabahah secara substansi merupakan suatu                         is based on standards which regulate financing
        pembiayaan, sehingga pengakuan margin                              transaction, as mentioned in Note 3e.
        dilakukan berdasarkan standar yang mengatur
        pembiayaan, seperti yang disebutkan di
        Catatan 3e.




                                                             - 24 -
Page 535
PT BUSSAN AUTO FINANCE                                                                       PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                         NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                                 FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                              DECEMBER 31, 2023 AND 2022 - Continued

        Pembiayaan Ijarah Muntahiyah Bittamlik (IMBT)                         Ijarah Muntahiyah Bittamlik (IMBT) financing

        IMBT adalah transaksi pembiayaan kembali                              IMBT is refinancing transaction that used
        dengan menggunakan motor bekas sebagai                                secondhand       motorcycle     as    collateral.
        jaminan. Secara substansi transaksi ini merupakan                     Substantially, this transaction is a financing
        suatu pembiayaan, sehingga perlakuan akuntansi                        transaction, hence the accounting treatment of
        atas transaksi ini dilakukan berdasarkan standar                      this transaction is based on standard which
        yang mengatur pembiayaan seperti disebutkan                           regulate financing transaction, as mentioned in
        dalam Catatan 3e.                                                     Note 3e.

        Piutang Pembiayaan dari Jaminan                                       Financing Receivable from Collateral

        Piutang pembiayaan dari jaminan dinyatakan                            Financing receivable from collateral are stated at
        sebesar nilai tercatat dikurangi cadangan                             carrying amount net allowance for expected credit
        kerugian kredit ekspektasian. Beban yang                              losses. Expenses related to the financing
        berhubungan dengan piutang pembiayaan dari                            receivable from collateral assets and its
        jaminan dan pemeliharaannya akan dibebankan                           maintenance are charged to profit or loss as
        pada laba rugi pada saat terjadinya. Pada saat                        incurred. At the end of the period, financing
        akhir periode, piutang pembiayaan dari jaminan                        receivable from collateral are reviewed for any
        akan direviu apabila terdapat penurunan nilai.                        impairment in amount. When the financing
        Pada saat piutang pembiayaan dari jaminan                             receivable from collateral are settled by customer,
        diselesaikan oleh konsumen, nilai tercatatnya                         their carrying amounts are removed from the
        akan dikeluarkan dan keuntungan atau kerugian                         accounts and any resulting gains or losses are
        akan dikreditkan atau dibebankan pada laba rugi.                      credited or charged to profit or loss.

   i.   Aset Tetap                                                       i.   Property and Equipment

        Aset tetap dicatat berdasarkan biaya perolehan,                       Property and equipment are stated at cost, less
        dikurangi akumulasi penyusutan dan akumulasi                          accumulated depreciation and any accumulated
        kerugian penurunan nilai.                                             impairment losses.

        Penyusutan diakui dengan metode garis lurus                           Depreciation is recognized using straight line
        setelah    memperhitungkan    nilai   residu                          method so as to write-off the cost of assets less
        berdasarkan taksiran masa manfaat aset tetap                          residual values with estimated useful lives of the
        sebagai berikut:                                                      assets are as follows:

                                                           Tahun/Years

        Bangunan                                               20               Building
        Prasarana gedung                                       4                Leasehold improvement
        Perangkat kantor dan perabotan                        4-8               Office furniture, fixture and equipment
        Kendaraan                                             4-8               Vehicles

        Masa manfaat ekonomis, nilai residu dan metode                        The estimated useful lives, residual values and
        penyusutan dikaji ulang setiap akhir tahun dan                        depreciation method are reviewed at each year
        pengaruh dari setiap perubahan estimasi                               end, with the effect of any changes in estimate
        tersebut berlaku prospektif.                                          accounted for on a prospective basis.

        Tanah dinyatakan berdasarkan biaya perolehan                          Land is stated at cost and is not depreciated.
        dan tidak disusutkan.

        Beban pemeliharaan dan perbaikan dibebankan                           The cost of maintenance and repairs is charged to
        pada laba rugi pada saat terjadinya. Biaya-biaya                      profit or loss as incurred. Other costs incurred
        lain yang terjadi selanjutnya yang timbul untuk                       subsequently to add to, replace part of, or service
        menambah, mengganti atau memperbaiki aset                             an item of property and equipment, are
        tetap dicatat sebagai biaya perolehan aset jika                       recognized as asset if, and only if, it is probable
        dan hanya jika besar kemungkinan manfaat                              that future economic benefits associated with the
        ekonomis di masa depan berkenaan dengan                               item will flow to the entity and the cost of the item
        aset tersebut akan mengalir ke entitas dan biaya                      can be measured reliably.
        perolehan aset dapat diukur secara andal.




                                                              - 25 -
Page 536
PT BUSSAN AUTO FINANCE                                                                   PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                     NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                             FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                          DECEMBER 31, 2023 AND 2022 - Continued

        Aset tetap dihentikan pengakuannya pada saat                       An item of property and equipment is
        pelepasan atau ketika tidak ada manfaat                            derecognized upon disposal or when no future
        ekonomik masa depan yang diharapkan timbul                         economic benefits are expected to arise from the
        dari penggunaan aset secara berkelanjutan.                         continued use of the asset. Any gain or loss
        Keuntungan atau kerugian yang timbul dari                          arising on the disposal or retirement of an item of
        pelepasan atau penghentian pengakuan suatu                         property and equipment is determined as the
        aset tetap ditentukan sebagai selisih antara hasil                 difference between the sales proceeds and the
        penjualan dan nilai tercatat aset dan diakui dalam                 carrying amount of the asset and is recognized in
        laba rugi.                                                         profit or loss.

        Properti dalam proses kontruksi (“aset dalam                       Properties in the course of construction
        penyelesaian”)      untuk    tujuan     produksi,                  (“construction in progress”) for production, supply
        persediaan atau administrasi, atau tujuan yang                     or administrative purposes, or for purposes not yet
        belum ditentukan, dicatat sebesar harga                            determined, are carried at cost, less any
        perolehan, dikurangi kerugian penurunan nilai                      recognized impairment loss. Cost includes
        yang diakui. Biaya perolehan termasuk biaya                        professional fees and, for qualifying assets,
        profesional dan untuk aset kualifikasian, biaya                    borrowing costs capitalized in accordance with the
        pinjaman yang dikapitalisasi sesuai dengan                         Company’s accounting policy. Depreciation of
        kebijakan akuntansi Perusahaan. Penyusutan                         these assets, on the same basis as other property
        aset ini, dengan dasar yang sama seperti aset                      assets, commences when the assets are ready for
        properti lainnya, dimulai saat aset tersebut siap                  their intended use.
        untuk digunakan sesuai dengan tujuannya.

   j.   Perangkat Lunak Komputer                                      j.   Computer Software

        Biaya perolehan perangkat lunak komputer                           The acquisition cost of computer software
        termasuk seluruh biaya selama masa persiapan                       includes all direct cost related to the preparation
        aset sampai dapat digunakan, diamortisasi                          of the asset for its intended use and amortized
        selama empat tahun menggunakan metode garis                        over four years using the straight-line method.
        lurus.

   k.   Penurunan Nilai Aset Non Keuangan                             k.   Impairment of Non-Financial Assets

        Pada     setiap  akhir   periode   pelaporan,                      At the end of each reporting date, the Company
        Perusahaan menelaah nilai tercatat aset non-                       reviews the carrying amount of non-financial
        keuangan untuk menentukan apakah terdapat                          assets to determine whether there is any
        indikasi bahwa aset tersebut telah mengalami                       indication that those assets have suffered an
        penurunan nilai.                                                   impairment loss.

        Jika terdapat indikasi tersebut, jumlah                            If any such indication exists, the recoverable
        terpulihkan   dari     aset   diestimasi untuk                     amount of the asset is estimated in order to
        menentukan tingkat kerugian penurunan nilai                        determine the extent of the impairment loss (if
        (jika ada). Bila tidak memungkinkan untuk                          any). When it is not possible to estimate the
        mengestimasi jumlah terpulihkan atas suatu aset                    recoverable amount of an individual asset, the
        individual, Perusahaan mengestimasi jumlah                         Company estimates the recoverable amount of
        terpulihkan dari unit penghasil kas atas aset.                     the cash generating unit to which the asset
                                                                           belongs.

        Jumlah terpulihkan adalah nilai tertinggi antara                   Recoverable amount is the higher of fair value
        nilai wajar dikurangi biaya pelepasan dan nilai                    less cost to sell and value in use. In assessing
        pakai. Dalam menilai nilai pakainya, estimasi                      value in use, the estimated future cash flows are
        arus kas masa depan didiskontokan ke nilai kini                    discounted to their present value using a pre-tax
        menggunakan tingkat diskonto sebelum pajak                         discount rate that reflects current market
        yang menggambarkan penilaian pasar kini dari                       assessments of the time value of money and the
        nilai waktu uang dan risiko spesifik atas aset                     risks specific to the asset for which the estimates
        dengan estimasi arus kas masa depan belum                          of future cash flows have not been adjusted.
        disesuaikan.




                                                             - 26 -
Page 537
PT BUSSAN AUTO FINANCE                                                                   PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                     NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                             FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                          DECEMBER 31, 2023 AND 2022 - Continued

        Jika nilai terpulihkan dari aset non-keuangan                      If the recoverable amount of a non-financial asset
        (unit penghasil kas) lebih kecil dari nilai                        (cash generating unit) is less than its carrying
        tercatatnya, nilai tercatat aset (unit penghasil                   amount, the carrying amount of the asset (cash
        kas) tersebut diturunkan ke nilai terpulihkanya                    generating unit) is reduced to its recoverable
        dan kerugian dari penurunan nilai diakui segera                    amount and an impairment loss is recognized
        di laba rugi.                                                      immediately in profit or loss.
        Ketika penurunan nilai selanjutnya dibalik,                        When an impairment loss subsequently reverses,
        jumlah tercatat aset (atau unit penghasil kas)                     the carrying amount of the asset (or a cash-
        ditingkatkan ke estimasi yang direvisi dari jumlah                 generating unit) is increased to the revised
        terpulihkannya, namun kenaikan jumlah tercatat                     estimate of its recoverable amount, but so that the
        tidak boleh melebihi jumlah tercatat ketika                        increased carrying amount does not exceed the
        kerugian penurunan nilai tidak diakui untuk aset                   carrying amount that would have been determined
        (atau unit penghasil kas) pada tahun-tahun                         had no impairment loss been recognized for the
        sebelumnya. Pembalikan rugi penurunan nilai                        asset (or cash-generating unit) in prior years.
        diakui segera dalam laba rugi.                                     A reversal of an impairment loss is recognized
                                                                           immediately in profit or loss.
        Kebijakan akuntansi untuk penurunan nilai aset                     Accounting policy for impairment of financial
        keuangan dijelaskan dalam Catatan 3e.                              assets is discussed in Note 3e.
   l.   Obligasi yang Diterbitkan                                     l.   Bonds Issued

        Obligasi yang diterbitkan diklasifikasikan dalam                   Bonds issued are classified as financial liabilities
        kategori liabilitas keuangan diukur pada biaya                     at amortized costs.
        perolehan diamortisasi.

        Pengakuan, pengukuran awal, pengukuran                             Recognition, initial measurement, subsequent
        setelah pengakuan awal, penentuan nilai wajar                      measurement, fair value and derecognition of
        dan penghentian pengakuan surat berharga                           debt securities issued are discussed in Note 3e.
        utang yang diterbitkan mengacu pada
        Catatan 3e.

        Biaya emisi obligasi langsung dikurangkan dari                     Bonds issuance costs are directly deducted from
        hasil emisi dalam rangka menentukan hasil emisi                    the proceeds of the issuance to determine the net
        neto obligasi tersebut. Selisih antara hasil emisi                 proceds of the bonds transaction. The difference
        neto dengan nilai nominal merupakan atribusi                       between the net proceeds and nominal value
        langsung biaya transaksi, diskonto atau premium                    represents directly attributable transaction costs,
        yang diamortisasi selama jangka waktu obligasi                     discount or premium which are being amortized
        dengan metode suku bunga efektif. Jika terjadi                     during the period using effective interest rate.
        pembelian kembali, selisih antara harga                            In case of early redemption, the difference
        pembelian kembali obligasi tersebut dengan                         between the redemption price and the carrying
        jumlah tercatat obligasi diakui sebagai                            amount of Bonds is recognized as profit or loss
        keuntungan atau kerugian pada tahun berjalan.                      during in the year.

   m. Pengakuan Pendapatan dan Beban                                  m. Revenue and Expense Recognition
        Pengakuan pendapatan dan beban bunga diakui                        Interest revenue and expenses are recognized
        menggunakan metode suku bunga efektif,                             using effective interest method as described in
        seperti dijelaskan dalam Catatan 3e.                               Notes 3e.
        Pendapatan dan beban lainnya                                       Other income and expenses

        Pendapatan pembiayaan jasa administrasi yang                       Administrative financing fees income that are not
        tidak dapat diatribusikan secara langsung atas                     directly attributable to finance leases, consumer
        transaksi sewa pembiayaan dan pembiayaan                           financing and provision fees from finance lease
        konsumen serta pendapatan provisi dari sewa                        transactions are recorded as other income in profit
        pembiayaan dibukukan sebagai pendapatan                            or loss and recognized when incurred. Revenue
        lain-lain pada laba rugi dan diakui pada saat                      from late charges and early termination are
        terjadinya. Pendapatan denda keterlambatan                         recognized when received.
        dan penghentian kontrak diakui pada saat
        diterima.
        Beban lainnya diakui pada saat terjadinya.                         Other expenses are recognized when incurred.




                                                             - 27 -
Page 538
PT BUSSAN AUTO FINANCE                                                                    PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                      NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                              FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                           DECEMBER 31, 2023 AND 2022 - Continued

   n.   Imbalan Pasca Kerja                                           n.   Post-employment Benefits

        Perusahaan memberikan imbalan pasca kerja                          The Company provides post-employment benefits
        sesuai dengan Undang-Undang No. 11 Tahun                           as required under the Law No. 11 of year 2020 on
        2020 Tentang Cipta Kerja beserta peraturan                         Job Creation and its implementing regulations
        pelaksanaan (”Undang-Undang Cipta Kerja”).                         ("Job Creation Law").

        Biaya penyediaan imbalan ditentukan dengan                         The cost of providing benefits is determined using
        menggunakan metode projected unit credit                           the projected unit credit method, with actuarial
        dengan penilaian aktuaria yang dilakukan pada                      valuations being carried out at the end of each
        setiap akhir periode pelaporan tahunan.                            annual reporting period. Remeasurement,
        Pengukuran kembali, terdiri dari keuntungan dan                    comprising actuarial gains and losses, is reflected
        kerugian aktuarial, yang tercermin langsung                        immediately in the statement of financial position
        dalam laporan posisi keuangan yang dibebankan                      with a charge or credit recognized in other
        atau     dikreditkan      dalam      penghasilan                   comprehensive income in the period in which they
        komprehensif      lain     periode     terjadinya.                 occur. Remeasurement recognized in other
        Pengukuran kembali diakui dalam penghasilan                        comprehensive income is reflected as a separate
        komprehensif lain tercermin sebagai pos terpisah                   item under other comprehensive income in equity
        pada penghasilan komprehensif lain di ekuitas                      and will not be reclassified to profit or loss. Past
        dan tidak akan direklasifikasi ke laba rugi. Biaya                 service cost is recognized in profit or loss in the
        jasa lalu diakui dalam laba rugi pada periode                      period of a plan amendment. Net interest is
        amandemen program. Bunga neto dihitung                             calculated by applying the discount rate at the
        dengan mengalikan tingkat diskonto pada awal                       beginning of the period to the net defined benefit
        periode imbalan pasti dengan liabilitas atau aset                  liability. Defined benefit costs are categorized as
        imbalan pasti neto. Biaya imbalan pasti                            follows:
        dikategorikan sebagai berikut:

        ·   Biaya jasa (termasuk biaya jasa kini, biaya                    ·    Service cost (including current service cost,
            jasa lalu serta keuntungan dan kerugian                             past service cost, as well as gains and losses
            kurtailmen dan penyelesaian).                                       on curtailments and settlements).
        ·   Beban atau pendapatan bunga neto.                              ·    Net interest expense or income.
        ·   Pengukuran kembali.                                            ·    Remeasurement.
        Perusahaan menyajikan dua komponen pertama                         The Company presents the first two components
        dari biaya imbalan pasti di laba rugi. Keuntungan                  of defined benefit costs in profit or loss.
        dan kerugian kurtailmen dicatat sebagai biaya                      Curtailment gains and losses are accounted for as
        jasa lalu.                                                         past service costs.
        Pesangon                                                           Termination
        Liabilitas untuk pesangon diakui mana yang                         A liability for a termination benefit is recognized at
        terjadi lebih dulu ketika entitas tidak dapat lagi                 the earlier of when the entity can no longer
        menarik penawaran imbalan tersebut dan ketika                      withdraw the offer of the termination benefit and
        entitas mengakui biaya restrukturisasi terkait.                    when the entity recognizes any related
                                                                           restructuring costs.

   o.   Pajak Penghasilan                                             o.   Income Tax

        Beban pajak penghasilan merupakan jumlah                           Income tax expense represents the sum of the tax
        pajak kini terutang dan pajak tangguhan.                           currently payable and deferred tax.

        Pajak kini terutang berdasarkan laba kena pajak                    The tax currently payable is based on taxable
        untuk suatu tahun. Laba kena pajak berbeda dari                    profit for the year. Taxable profit differs from net
        laba sebelum pajak seperti yang dilaporkan di                      profit as reported in profit or loss because it
        laba rugi karena tidak memperhitungkan                             excludes items of income or expense that are
        penghasilan atau beban yang dikenakan pajak                        taxable or deductible in other years and it further
        atau dikurangkan pada tahun berbeda dan tidak                      excludes items that are never taxable or
        memperhitungkan pos-pos yang tidak pernah                          deductible. The Company’s liability for current tax
        dikenakan pajak atau tidak dapat dikurangkan.                      is calculated using tax rates that have been
        Liabilitas Perusahaan untuk pajak kini dihitung                    enacted or substantively enacted by the end of the
        berdasarkan tarif pajak yang telah berlaku pada                    reporting period.
        akhir periode peiaporan.




                                                             - 28 -
Page 539
PT BUSSAN AUTO FINANCE                                                            PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                              NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                      FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                   DECEMBER 31, 2023 AND 2022 - Continued

       Provisi diakui untuk penentuan pajak yang tidak             A provision is recognized for those matters for
       pasti, tetapi kemungkinan besar            akan             which the tax determination is uncertain but it is
       mengangkibatkan arus keluar dana kepada                     considered probable that there will be a future
       otoritas pajak. Provisi diukur sebesar estimasi             outflow of funds to a tax authority. The provisions
       terbaik atas jumlah ekspektasian yang terutang.             are measured at the best estimate of the amount
       Penilaian berdasarkan pada pertimbangan                     expected to become payable. The assessment is
       professional pajak dalam Perusahaan yang                    based on the judgement of tax professionals
       didukung dengan pengalaman lalu atas aktivitas              within the Company’s supported by previous
       tersebut dan dalam kasus tertentu berdasarkan               experience in respect of such activities and in
       saran pakar pajak independen.                               certain cases based on specialist independent tax
                                                                   advice.

       Pajak tangguhan diakui atas perbedaan                       Deferred tax is recognized on temporary
       temporer antara jumlah tercatat aset dan                    differences between the carrying amounts of
       liabilitas dalam laporan keuangan konsolidasian             assets and liabilities in the consolidated financial
       dengan dasar pengenaan pajak yang digunakan                 statements and the corresponding tax bases used
       dalam perhitungan laba kena pajak. Liabilitas               in the computation of taxable profit. Deferred tax
       pajak tangguhan umumnya diakui untuk seluruh                liabilities are generally recognized for all taxable
       perbedaan temporer kena pajak. Aset pajak                   temporary differences. Deferred tax assets are
       tangguhan umumnya diakui untuk seluruh                      generally recognized for all deductible temporary
       perbedaan temporer yang dapat dikurangkan                   differences to the extent that is probable that
       sepanjang kemungkinan besar bahwa laba kena                 taxable profits will be available against which
       pajak akan tersedia sehingga perbedaan                      those deductible temporary differences can be
       temporer dapat dimanfaatkan. Aset dan liabilitas            utilized. Such deferred tax assets and liabilities
       pajak tangguhan tidak diakui jika perbedaan                 are not recognized if the temporary differences
       temporer timbul dari pengakuan awal (selain dari            arise from the initial recognition (other than in a
       kombinasi bisnis) dari aset dan liabilitas suatu            business combination) of assets and liabilities in a
       transaksi yang tidak mempengaruhi laba kena                 transaction that affects neither the taxable profit
       pajak atau laba akuntansi dan pada saat                     nor the accounting profit and at the time of
       transaksi, tidak menimbulkan perbedaan                      transaction, does not give rise to equal taxable
       temporer yang dapat dikurangkan dan dikenai                 and deductible temporary differences. In addition,
       pajak dalam jumlah yang sama. Selain itu,                   deferred tax liabilities are not recognized if the
       liabilitas pajak tangguhan tidak diakui jika                temporary differences arises from the initial
       perbedaan temporer timbul dari pengakuan awal               recognition of goodwill.
       goodwill.

       Aset dan liabilitas pajak tangguhan diukur                  Deferred tax assets and liabilities are measured at
       dengan menggunakan tarif pajak yang                         the tax rates that are expected to apply in the
       diharapkan berlaku dalam periode ketika                     period in which the liability is settled or the asset
       liabilitas diselesaikan atau aset dipulihkan                realized, based on the tax rates (and tax laws) that
       berdasarkan tarif pajak (dan peraturan pajak)               have been enacted, or substantively enacted, by
       yang telah berlaku atau secara substantif telah             the end of the reporting period.
       berlaku pada akhir periode pelaporan.

       Pengukuran aset dan liabilitas pajak tangguhan              The measurement of deferred tax assets and
       mencerminkan konsekuensi pajak yang sesuai                  liabilities reflects the tax consequences that would
       dengan cara Perusahaan memperkirakan, pada                  follow from the manner in which the Company
       akhir periode pelaporan, untuk memulihkan atau              expects, at the end of the reporting period, to
       menyelesaikan jumlah tercatat aset dan                      recover or settle the carrying amount of its assets
       liabilitasnya.                                              and liabilities.

       Jumlah tercatat aset pajak tangguhan ditelaah               The carrying amount of deferred tax assets is
       ulang pada akhir periode pelaporan dan                      reviewed at the end of each reporting period and
       dikurangi jumlah tercatatnya jika kemungkinan               reduced to the extent that it is no longer probable
       besar laba kena pajak tidak lagi tersedia dalam             that sufficient future taxable profits will be
       jumlah       yang         memadai         untuk             available to allow all or part of the asset to be
       mengkompensasikan sebagian atau seluruh aset                recovered.
       pajak tangguhan tersebut.




                                                          - 29 -
Page 540
PT BUSSAN AUTO FINANCE                                                                     PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                       NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                               FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                            DECEMBER 31, 2023 AND 2022 - Continued

        Pajak kini dan pajak tangguhan diakui sebagai                       Current and deferred tax are recognized as an
        beban atau penghasilan dalam laba rugi periode                      expense or income in profit or loss, except when
        berjalan, kecuali untuk pajak penghasilan yang                      they relate to items that are recognized outside of
        timbul dari transaksi atau peristiwa yang diakui di                 profit or loss (whether in other comprehensive
        luar laba rugi (baik dalam penghasilan                              income or directly in equity) in which case the tax
        komprehensif lain maupun secara langsung di                         is also recognized outside of profit or loss.
        ekuitas), dalam hal tersebut pajak juga diakui di
        luar laba rugi.

        Aset dan liabilitas pajak tangguhan saling hapus                    Deferred tax assets and liabilities are offset when
        ketika entitas memiliki hak yang dapat                              there is legally enforceable right to set off current
        dipaksakan secara hukum untuk melakukan                             tax assets against current tax liabilities and when
        saling hapus aset pajak kini terhadap liabilitas                    they relate to income taxes levied by the same
        pajak kini dan ketika aset pajak tangguhan dan                      taxation authority on either the same taxable
        liabilitas pajak tangguhan terkait dengan pajak                     entity or different taxable entities when there is an
        penghasilan yang dikenakan oleh otoritas                            intention to settle its current tax assets and current
        perpajakan yang sama atas entitas kena pajak                        tax liabilities on a net basis or to realize the assets
        yang sama atau entitas kena pajak yang berbeda                      and settle the liabilities simultaneously, in each
        yang memiliki intensi untuk memulihkan aset dan                     future period in which significant amounts of
        liabilitas pajak kini dengan dasar neto, atau                       deferred tax liabilities or assets are expected to be
        merealisasikan aset dan menyelesaikan liabilitas                    settled or recovered, or to realize the assets and
        secara bersamaan, pada setiap periode masa                          settle the liabilities simultaneously, in each future
        depan dimana jumlah signifikan atas aset atau                       period in which significant amounts of deferred tax
        liabilitas pajak tangguhan diharapkan untuk                         liabilities or assets are expected to be settled or
        diselesaikan atau dipulihkan.                                       recovered.

   p.   Sewa                                                           p.   Leases

        Perusahaan sebagai penyewa                                          The Company as lessee

        Perusahaan menilai apakah sebuah kontrak                            The Company assesses whether a contract is or
        mengandung sewa, pada tanggal insepsi                               contains a lease, at the inception of the contract.
        kontrak. Perusahaan mengakui aset hak-guna                          The Company recognizes a right-of-use asset and
        dan liabilitas sewa terkait sehubungan dengan                       a corresponding lease liability with respect to all
        seluruh kesepakatan sewa di mana Perusahaan                         lease arrangements in which it is the lessee,
        merupakan penyewa, kecuali untuk sewa                               except for short-term leases (defined as leases
        jangka-pendek (yang didefinisikan sebagai sewa                      with a lease term of 12 months or less) and leases
        yang memiliki masa sewa 12 bulan atau kurang)                       of low value assets. For these leases, the
        dan sewa aset bernilai-rendah. Untuk sewa-                          Company recognizes the lease payments as an
        sewa      tersebut,     Perusahaan    mengakui                      operating expense on a straight-line basis over
        pembayaran sewa sebagai beban operasi                               the term of the lease unless another systematic
        secara garis lurus selama masa sewa kecuali                         basis is more representative of the time pattern in
        dasar         sistematis      lainnya     lebih                     which economic benefits from the leased assets
        merepresentasikan pola konsumsi manfaat                             are consumed.
        penyewa dari aset sewa.

        Liabilitas sewa awalnya diukur pada nilai kini                      The lease liability is initially measured at the
        pembayaran sewa masa depan yang belum                               present value of the lease payments that are not
        dibayarkan pada tanggal permulaan, yang                             paid at the commencement date, discounted by
        didiskontokan menggunakan suku bunga implisit                       using the rate implicit in the lease. If this rate
        dalam sewa. Jika suku bunga ini tidak dapat                         cannot be readily determined, the Company uses
        ditentukan, Perusahaan menggunakan suku                             its incremental borrowing rate.
        bunga pinjaman inkremental.

        Pembayaran sewa yang diperhitungkan dalam                           Lease payments included in the measurement of
        pengukuran liabilitas sewa terdiri atas:                            the lease liability comprise:

        ·   Pembayaran tetap (termasuk pembayaran                           ·    fixed lease payments (including in-substance
            tetap secara-substansi), dikurangai insentif                         fixed payments), less any lease incentives;
            sewa;




                                                              - 30 -
Page 541
PT BUSSAN AUTO FINANCE                                                            PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                              NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                      FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                   DECEMBER 31, 2023 AND 2022 - Continued

       ·   Pembayaran      sewa    variabel   yang                 ·   variable lease payments that depend on an
           bergantung pada indeks atau suku bunga                      index or rate, initially measured using the
           yang pada awalnya diukur dengan                             index or rate at the commencement date;
           menggunakan indeks atau suku bunga pada
           tanggal permulaan;

       ·   jumlah yang diperkirakan akan dibayarkan                ·   the amount expected to be payable by the
           oleh penyewa dalam jaminan nilai residual;                  lessee under residual value guarantees;

       ·   harga eksekusi opsi beli jika penyewa cukup             ·   the exercise price of purchase options, if the
           pasti untuk mengeksekusi opsi tersebut; dan                 lessee is reasonably certain to exercise the
                                                                       options; and

       ·   pembayaran penalti karena penghentian                   ·   payments of penalties for terminating the
           sewa, jika masa sewa merefleksikan                          lease, if the lease term reflects the exercise
           penyewa    mengeksekusi   opsi untuk                        of an option to terminate the lease.
           menghentikan sewa.

       Liabilitas sewa disajikan sebagai pos terpisah              The lease liability is presented as a separate line
       dalam laporan posisi keuangan.                              in the statement of financial position.

       Liabilitas sewa selanjutnya diukur dengan                   The lease liability is subsequently measured by
       meningkatkan     jumlah      tercatat  untuk                increasing the carrying amount to reflect the
       merefleksikan bunga atas liabilitas sewa                    interest on the lease liability (using the effective
       (menggunakan metode suku bunga efektif) dan                 interest method) and by reducing the carrying
       dengan mengurangi jumlah tercatat untuk                     amount to reflect the lease payments made.
       merefleksikan sewa yang telah dibayar.
       Perusahaan mengukur kembali liabilitas sewa                 The Company remeasures the lease liability (and
       (dan melakukan penyesuaian terkait terhadap                 makes a corresponding adjustment to the related
       aset hak-guna) jika:                                        right-of-use assets) whenever:
       ·   terdapat perubahan dalam masa sewa atau                 ·   the lease term has changed or there is a
           perubahan dalam penilaian atas eksekusi                     change in the assessment of the exercise of
           opsi pembelian, di mana liabilitas sewa                     a purchase option, in which case the lease
           diukur       dengan        mendiskontokan                   liability is remeasured by discounting the
           pembayaran sewa revisian menggunakan                        revised lease payments using a revised
           tingkat diskonto revisian.                                  discount rate.

       ·   terdapat perubahan sewa masa depan                      ·   the lease payments change due to changes
           sebagai akibat dari perubahan indeks atau                   in an index or rate or a change in expected
           perubahan       perkiraan      pembayaran                   payment under a guaranteed residual value,
           berdasarkan nilai residual jaminan di mana                  in which cases the lease liability is
           liabilitas sewa diukur kembali dengan                       remeasured by discounting the revised lease
           mendiskontokan pembayaran sewa revisian                     payments using the initial discount rate
           menggunakan tingkat diskonto awal (kecuali                  (unless the lease payments change is due to
           jika pembayaran sewa berubah karena                         a change in a floating interest rate, in which
           perubahan suku bunga mengambang, di                         case a revised discount rate is used).
           mana tingkat diskonto revisian digunakan).

       ·   kontrak sewa dimodifikasi dan modifikasi                ·   a lease contract is modified and the lease
           sewa tidak dicatat sebagai sewa terpisah, di                modification is not accounted for as a
           mana liabilitas sewa diukur dengan                          separate lease, in which case the lease
           mendiskontokan pembayaran sewa revisian                     liability is remeasured by discounting the
           menggunakan tingkat diskonto revisian.                      revised lease payments using a revised
                                                                       discount rate.
       Aset hak-guna terdiri dari pengukuran awal atas             The right-of-use assets comprise the initial
       liabilitas sewa, pembayaran sewa yang                       measurements of the corresponding lease
       dilakukan pada saat atau sebelum permulaan                  liability, lease payments made at or before the
       sewa dan biaya langsung awal. Aset hak-guna                 commencement day and any initial direct costs.
       selanjutnya diukur sebesar biaya dikurangi                  They are subsequently measured at cost less
       akumulasi penyusutan dan kerugian penurunan                 accumulated depreciation and impairment losses.
       nilai.



                                                          - 31 -
Page 542
PT BUSSAN AUTO FINANCE                                                                    PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                      NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                              FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                           DECEMBER 31, 2023 AND 2022 - Continued

        Jika Perusahaan dibebankan kewajiban atas                          Whenever the Company incurs an obligation for
        biaya membongkar dan memindahkan aset                              costs to dismantle and remove a leased asset,
        sewa, merestorasi tempat di mana aset berada                       restore the site on which it is located or restore the
        atau merestorasi aset pendasar ke kondisi yang                     underlying assets to the conditions required by the
        disyaratkan oleh syarat dan ketentuan sewa,                        terms and conditions of the lease, a provision is
        provisi diakui dan diukur sesuai PSAK 57. Biaya                    recognized and measured under PSAK 57. The
        tersebut diperhitungkan dalam aset hak-guna                        costs are included in the related right-of-use
        terkait, kecuali jika biaya tersebut terjadi untuk                 asset, unless those costs are incurred to produce
        memproduksi persediaan.                                            inventories.

        Aset hak-guna disusutkan selama periode yang                       Right-of-use assets are depreciated over the
        lebih singkat antara masa sewa dan masa                            shorter period of lease term and useful life of the
        manfaat aset pendasar. Jika sewa mengalihkan                       underlying assets. If a lease transfers ownership
        kepemilikan aset pendasar atau jika biaya                          of the underlying assets or the cost of the right-of-
        perolehan    aset   hak-guna    merefleksikan                      use assets reflects that of the Company expects
        Perusahaan akan mengeksekusi opsi beli, aset                       to exercise a purchase option, the related right-of-
        hak-guna disusutkan selama masa manfaat aset                       use asset is depreciated over the useful life of the
        pendasar. Penyusutan dmulai pada tanggal                           underlying assets. The depreciation starts at the
        permulaan sewa.                                                    commencement date of the lease.

        Aset hak-guna disajikan sebagai pos terpisah di                    The right-of-use assets are presented as a
        laporan posisi keuangan.                                           separate line in the statement of financial position.

        Perusahaan menerapkan PSAK 48 untuk                                The Company applies PSAK 48 to determine
        menentukan apakah aset hak-guna mengalami                          whether a right-of-use asset is impaired and
        penurunan nilai dan mencatat kerugian                              accounts for any identified impairment loss as
        penurunan nilai yang teridentifikasi sebagaimana                   described in the nonfinancial assets impairment
        dijelaskan dalam kebijakan asset nonkeuangan                       policy.
        penurunan nilai.

   q.   Segmen Operasi                                                q.   Segment Operations

        Segmen operasi diidentifikasi berdasarkan                          Operating segments are identified on the basis of
        laporan internal mengenai komponen dari                            internal reports about components of the
        Perusahaan yang secara regular direviu oleh                        Company that are regularly reviewed by the chief
        “pengambil keputusan operasional” dalam                            operating decision maker in order to allocate
        rangka mengalokasikan sumber daya dan                              resources to the segments and to assess their
        menilai kinerja segmen operasi.                                    performances.

        Segmen operasi adalah suatu komponen dari                          An operating segment is a component of an entity:
        entitas:

        ·   Yang terlibat dalam aktivitas bisnis yang                      ·   That engages in business activities from
            mana memperoleh pendapatan dan                                     which it may earn revenue and incur expense
            menimbulkan beban (termasuk pendapatan                             (including revenue and expenses relating to
            dan beban terkait dengan transaksi dengan                          the transaction with other components of the
            komponen lain dari entitas yang sama);                             same entity);

        ·   Yang hasil operasinya dikaji ulang secara                      ·   Whose operating results are reviewed
            reguler    oleh  pengambil      keputusan                          regulary by the entity’s chief operating
            operasional untuk membuat keputusan                                decision maker to make decision about
            tentang sumber daya yang dialokasikan                              resources to be allocated to the segments
            pada segmen tersebut dan menilai                                   and assess its performance; and
            kinerjanya; dan

        ·   Dimana tersedia informasi keuangan yang                        ·   For which discrete financial information is
            dapat dipisahkan.                                                  available.

        Informasi yang digunakan oleh pengambil                            Information reported to the chief operating
        keputusan operasional dalam rangka alokasi                         decision maker for the purpose of resource
        sumber daya dan penilaian kinerja mereka                           allocation and assessment of their performance is
        terfokus pada kategori dari setiap produk.                         more specifically focused on the category of each
                                                                           product.



                                                             - 32 -
Page 543
PT BUSSAN AUTO FINANCE                                                                     PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                       NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                               FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                            DECEMBER 31, 2023 AND 2022 - Continued

     r.   Laba per Saham                                                r.   Earning per Share

          Laba per saham dasar dihitung dengan membagi                       Basic earnings per share is computed by dividing
          laba bersih yang diatribusikan kepada pemilik                      net income attributable to the owners of the
          entitas induk dengan jumlah rata-rata tertimbang                   Company by the weighted average number of
          saham yang beredar pada tahun yang                                 shares outstanding during the year.
          bersangkutan.

          Laba per saham dilusian dihitung dengan                            Diluted earnings per share is computed by
          membagi laba bersih yang diatribusikan kepada                      dividing net income attributable to the owners of
          pemilik entitas induk dengan jumlah rata-rata                      the Company by the weighted average number of
          tertimbang saham biasa yang telah disesuaikan                      shares outstanding as adjusted for the effects of
          dengan dampak dari semua efek berpotensi                           all dilutive potential ordinary shares.
          saham biasa yang dilutif.


4.   PERTIMBANGAN KRITIS AKUNTANSI DAN                             4.   CRITICAL ACCOUNTING JUDGMENTS AND KEY
     SUMBER UTAMA KETIDAKPASTIAN ESTIMASI                               SOURCES OF ESTIMATION UNCERTAINTY

     Dalam penerapan kebijakan akuntansi Perusahaan,                    In the application of the Company’s accounting
     yang dijelaskan dalam Catatan 3, manajemen                         policies, which are described in Note 3, the Company’s
     diwajibkan untuk membuat pertimbangan, estimasi                    managements are required to make judgments,
     dan asumsi tentang jumlah tercatat aset dan liabilitas             estimates and assumptions about the carrying
     yang tidak tersedia dari sumber lain. Estimasi dan                 amounts of assets and liabilities that are not readily
     asumsi terkait didasarkan pada pengalaman historis                 apparent from other sources. The estimates and
     dan faktor-faktor lain yang dianggap relevan. Hasil                associated assumptions are based on historical
     aktualnya mungkin berbeda dari estimasi tersebut.                  experience and other factors that are considered to be
                                                                        relevant. Actual results may differ from these
                                                                        estimates.

     Estimasi dan asumsi yang mendasari ditelaah secara                 The estimates and underlying assumptions are
     berkelanjutan. Revisi estimasi akuntansi diakui dalam              reviewed on an ongoing basis. Revisions to
     periode dimana estimasi tersebut direvisi jika revisi              accounting estimates are recognized in the period
     hanya mempengaruhi periode tersebut, atau pada                     which the estimate is revised if the revision affects only
     periode revisi dan periode masa depan jika revisi                  that period, or in the period of the revision and future
     mempengaruhi periode saat ini dan masa depan.                      periods if the revision affects both current and future
                                                                        periods.

     Pertimbangan Kritis dalam Penerapan Kebijakan                      Critical Judgments        in   Applying     Accounting
     Akuntansi                                                          Policies

     Di bawah ini adalah pertimbangan kritis, selain dari               Below is the critical judgment, apart from those
     yang melibatkan estimasi yang telah dibuat direksi                 involving estimations, that the directors have made in
     dalam proses penerapan kebijakan akuntansi                         the process of applying the Company’s accounting
     Perusahaan dan memiliki pengaruh paling signifikan                 policies and that have the most significant effect on
     terhadap jumlah yang diakui dalam laporan                          the amounts recognized in the financial statements.
     keuangan.

     Peningkatan risiko kredit yang signifikan                          Significant increase in credit risk

     Sebagaimana dijelaskan dalam Catatan 3e, kerugian                  As explained in Note 3e, expected credit losses are
     kredit ekspektasian diukur sebagai cadangan yang                   measured as an allowance equal to 12-month ECL for
     setara dengan ECL 12 bulan untuk aset tahap 1, atau                stage 1 assets, or lifetime ECL for stage 2 or stage 3
     ECL sepanjang umur untuk aset tahap 2 atau tahap                   assets. An asset moves to stage 2 when its credit risk
     3. Suatu aset bergerak ke tahap 2 ketika risiko                    has increased significantly since initial recognition.
     kreditnya telah meningkat secara signifikan sejak                  PSAK 71 does not define what constitutes a significant
     pengakuan awal. PSAK 71 tidak menjelaskan apa                      increase in credit risk. In assessing whether the credit
     yang merupakan peningkatan risiko kredit yang                      risk of an asset has significantly increased the
     signifikan. Dalam menilai apakah risiko kredit suatu               Company takes into account qualitative and
     aset telah meningkat secara signifikan, Perusahaan                 quantitative reasonable and supportable forward-
     mempertimbangkan informasi masa depan yang                         looking information.
     wajar dan dapat didukung secara kualitatif dan
     kuantitatif.



                                                              - 33 -
Page 544
PT BUSSAN AUTO FINANCE                                                                  PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                    NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                            FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                         DECEMBER 31, 2023 AND 2022 - Continued

   Sumber Utama Ketidakpastian Estimasi                              Key Sources of Estimation Uncertainty

   Asumsi utama mengenai masa depan dan sumber                       The key assumptions concerning future and other key
   utama ketidakpastian estimasi lainnya pada akhir                  sources of estimation uncertainty at the end of the
   periode pelaporan, yang memiliki risiko signifikan dan            reporting period, that have the significant risk of
   dapat mengakibatkan penyesuaian material terhadap                 causing a material adjustment to the carrying amounts
   jumlah tercatat aset dan liabilitas dalam periode                 of assets and liabilities within the next financial year
   pelaporan berikutnya, dijelaskan di bawah ini:                    are discussed below:

   Imbalan Pasca Kerja                                               Post-employment Benefits

   Penentuan dari liabilitas imbalan kerja karyawan                  The determination of post-employment benefits
   bergantung pada asumsi manajemen yang                             obligation     is    dependent     on    management’s
   digunakan oleh aktuaris dalam perhitungannya.                     assumptions used by actuaries in calculating such
   Asumsi tersebut diantaranya adalah tingkat diskonto               amounts. Those assumptions include among others,
   dan kenaikan gaji. Hasil aktual yang dapat berbeda                discount rate and rate of salary increase. Actual results
   dengan       asumsi    Perusahaan     mempengaruhi                that differ from the Company’s assumptions, affect the
   pencatatan liabilitas dan beban pada periode                      recognized expense and recorded obligation in future
   mendatang. Meskipun diyakini bahwa asumsi                         periods. While it is believed that the Company’s
   Perusahaan wajar dan sesuai, perbedaan signifikan                 assumptions are reasonable and appropriate,
   dalam hasil aktual atau perubahan signifikan dalam                significant differences in actual results or significant
   asumsi secara material dapat mempengaruhi                         changes in assumptions may materially affect the
   liabilitas imbalan pasca kerja Perusahaan.                        Company’s post-employment benefit obligations.

   Nilai tercatat atas imbalan pasca kerja disajikan pada            The carrying amount of post-employment benefits is
   Catatan 20.                                                       disclosed in Note 20.

   Perhitungan Cadangan Kerugian                                     Calculation of loss allowance

   Saat mengukur ECL, Perusahaan menggunakan                         When measuring ECL, the Company uses reasonable
   informasi masa depan yang wajar dan dapat                         and supportable forward-looking information, which is
   didukung, yang didasarkan pada asumsi untuk                       based on assumptions for the future movement of
   pergerakan masa depan dari berbagai pendorong                     different economic drivers and how these drivers will
   ekonomi dan bagaimana penggerak ini akan saling                   affect each other.
   mempengaruhi.

   Loss given default adalah estimasi kerugian yang                  Loss given default is an estimate of the loss arising on
   timbul karena gagal bayar. Perhitungan didasarkan                 default. It is based on the difference between the
   pada perbedaan antara arus kas kontraktual terutang               contractual cash flows due and those that the lender
   dan yang diharapkan akan diterima, dengan                         would expect to receive, taking into account cash flows
   mempertimbangkan arus kas dari agunan dan                         from collateral and integral credit enhancements.
   peningkatan kredit integral.

   Probability of default merupakan input utama dalam                Probability of default constitutes a key input in
   mengukur ECL. Probability of default adalah                       measuring ECL. Probability of default is an estimate of
   perkiraan kemungkinan gagal bayar selama jangka                   the likelihood of default over a given time horizon, the
   waktu tertentu, yang penghitungannya mencakup                     calculation of which includes historical data,
   data historis, asumsi, dan ekspektasi kondisi masa                assumptions and expectations of future conditions.
   depan.

   Jika tingkat ECL piutang pembiayaan 10% lebih tinggi              If the ECL rates on financing receivable had been 10%
   (lebih rendah) pada 31 Desember 2023, cadangan                    higher (lower) as of December 31, 2023, the loss
   kerugian piutang pembiayaan akan menjadi                          allowance on financing receivable would have been
   Rp 125.426.759 ribu (31 Desember 2022:                            Rp 125,426,759 thousand (December 31, 2022:
   Rp 113.814.886 ribu) lebih tinggi (lebih rendah).                 Rp 113,814,886 thousand) higher (lower).




                                                            - 34 -
Page 545
PT BUSSAN AUTO FINANCE                                                                               PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                                 NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                                         FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                                      DECEMBER 31, 2023 AND 2022 - Continued

5.   KAS DAN BANK                                                          5.    CASH ON HAND AND IN BANKS

                                                     31 Desember/          31 Desember/
                                                     December 31,          December 31,
                                                         2023                  2022
                                                         Rp '000                Rp '000

     Kas                                                                                       Cash on hand
      Rupiah                                             29.833.230              26.052.924     Rupiah

     Bank - Pihak ketiga                                                                       Cash in banks - Third parties
        Rupiah                                                                                    Rupiah
           PT Bank Central Asia Tbk                     167.530.669             135.682.233          PT Bank Central Asia Tbk
           PT Bank Negara Indonesia Tbk                  35.409.775              22.734.177          PT Bank Negara Indonesia Tbk
           PT Bank Rakyat Indonesia Tbk                  33.852.334              17.163.412          PT Bank Rakyat Indonesia Tbk
           PT Bank Mandiri Tbk                           21.748.578              16.535.123          PT Bank Mandiri Tbk
           Citibank N.A., Indonesia                      14.195.817              22.331.034          Citibank N.A., Indonesia
           PT Bank Syariah Indonesia Tbk                 11.487.307              19.177.661          PT Bank Syariah Indonesia Tbk
           PT Bank Central Asia Syariah                  10.425.659                 438.252          PT Bank Central Asia Syariah
           PT Bank Danamon Indonesia Tbk                  5.671.798               7.378.635          PT Bank Danamon Indonesia Tbk
           PT Bank BTPN Tbk                                 -                     1.963.990          PT Bank BTPN Tbk
           PT Bank Permata Tbk                              -                     1.073.430          PT Bank Permata Tbk
           Lainnya (masing-masing dibawah                                                            Others (each below
             Rp 1 miliar)                                 1.948.022               1.784.362            Rp 1 billion)

         Subjumlah                                      302.269.959             246.262.309         Subtotal

         Dolar Amerika Serikat                                                                      United States Dollar
          PT Bank BTPN Tbk                                1.712.621                 428.595           PT Bank BTPN Tbk
          Bank Standard Chartered Indonesia                  94.240                 375.164           Bank Standard Chartered Indonesia
          MUFG Bank Ltd., Cabang Jakarta                     65.600                  66.941           MUFG Bank Ltd., Jakarta Branch
          Bank of America, N.A., Cabang Jakarta              41.267                  46.829           Bank of America, N.A., Jakarta Branch
          Citibank N.A., Indonesia                           11.771                  12.012           Citibank N.A., Indonesia
          Deutsche Bank AG, Cabang Jakarta                    5.511                   5.623           Deutsche Bank AG, Jakarta Branch

         Subjumlah                                        1.931.010                 935.164         Subtotal

         Yen Jepang                                                                                 Japanese Yen
           PT Bank BTPN Tbk                                   4.061                   4.467           PT Bank BTPN Tbk

         Jumlah bank                                    304.205.030             247.201.940         Total cash in banks
     Jumlah kas dan bank                                334.038.260             273.254.864    Total cash on hand and in banks



6.   PIUTANG PEMBIAYAAN - BERSIH                                           6.    FINANCING RECEIVABLES - NET

                                                     31 Desember/          31 Desember/
                                                     December 31,          December 31,
                                                         2023                  2022
                                                        Rp '000               Rp '000

     Pihak ketiga                                                                              Third parties
       Rupiah                                                                                    Rupiah
         Piutang pembiayaan                          17.991.420.873        17.765.114.150           Financing receivables
         Jumlah yang dibiayai oleh bank sehubungan                                                  Amount financed by bank
            dengan transaksi pembiayaan bersama          (1.326.062)             (1.616.979)          relating to joint financing transaction

         Subjumlah                                   17.990.094.811        17.763.497.171          Subtotal
         Pendapatan pembiayaan
           yang belum diakui                         (3.896.054.015)       (3.912.430.461)         Unearned income

         Subjumlah                                   14.094.040.796        13.851.066.710          Subtotal
         Cadangan kerugian kredit ekspektasian       (1.254.267.594)       (1.138.148.859)         Allowance for expected credit losses

         Jumlah - Bersih                             12.839.773.202        12.712.917.851          Total - Net

     Tingkat bunga efektif rata-rata per tahun              34,05%                  34,26%     Average effective annual interest rate




                                                                      - 35 -
Page 546
PT BUSSAN AUTO FINANCE                                                                     PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                       NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                               FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                            DECEMBER 31, 2023 AND 2022 - Continued

   Jumlah piutang pembiayaan (sebelum dikurangi                        Total financing receivables (before deducted with
   pendapatan pembiayaan yang belum diakui dan                         unearned income and allowance for expected credit
   cadangan kerugian kredit ekspektasian) berdasarkan                  losses) based on type of product are as follows:
   jenis produknya adalah sebagai berikut:

                                            31 Desember/        31 Desember/
                                            December 31,        December 31,
                                                2023                2022
                                               Rp '000             Rp '000

    Sepeda motor                            10.767.228.328      11.260.985.355         Motorcycle
    Lain-lain                                7.222.866.483       6.502.511.816         Others

    Jumlah                                  17.990.094.811      17.763.497.171         Total

   Jumlah piutang pembiayaan bersih berdasarkan                        Total net financing receivables based on business
   kegiatan usaha adalah sebagai berikut:                              activities are as follows:

                                            31 Desember/        31 Desember/
                                            December 31,        December 31,
                                                2023                2022
                                               Rp '000             Rp '000

    Pembiayaan multi guna                    8.247.300.088          8.257.634.648      Multi purpose financing
    Pembiayaan IMBT                          2.317.168.005          1.703.986.145      IMBT financing
    Pembiayaan investasi                     2.207.628.138          2.657.522.923      Investment financing
    Pembiayaan murabahah                        58.016.186             60.613.653      Murabahah financing
    Pembiayaan modal kerja                       9.008.740              6.845.239      Working capital financing
    Pembiayaan mudharabah                          652.045             26.315.243      Mudharabah financing

    Jumlah                                  12.839.773.202      12.712.917.851         Total

   Jumlah piutang pembiayaan (sebelum dikurangi                        Total lease installments (before deducted with
   cadangan kerugian kredit ekspektasian) sesuai                       allowance for expected credit losses) based on
   dengan jatuh temponya adalah sebagai berikut:                       maturity date are as follows:

                                            31 Desember/            31 Desember/
                                            December 31,            December 31,
                                                2023                    2022
                                               Rp '000                 Rp '000
    Piutang pembiayaan                                                                    Financing receivable
    Pihak ketiga                                                                          Third parties
      Sampai dengan satu tahun               9.762.236.806            10.175.494.700        Within one year
      Lebih dari satu tahun sampai                                                          More than one year up to
         lima tahun                          8.227.858.005             7.588.002.471           five years

    Jumlah angsuran                         17.990.094.811            17.763.497.171      Total installments

    Pendapatan pembiayaan
      yang belum diakui                                                                   Unearned lease income
        Pihak ketiga                                                                        Third parties
          Sampai dengan satu tahun           2.789.407.990             2.961.840.376          Within one year
          Lebih dari satu tahun sampai                                                        More than one year up to
            lima tahun                       1.106.646.025               950.590.085             five years
    Jumlah pendapatan sewa pembiayaan
      yang belum diakui                      3.896.054.015             3.912.430.461      Total unearned lease income

    Jumlah                                  14.094.040.796            13.851.066.710      Total



   Kisaran jangka waktu pembiayaan adalah 3 - 5 tahun                  Financing agreements have term of 3 - 5 years with
   dengan mayoritas pembiayaan selama 3 tahun.                         majority tenor of within 3 years.




                                                           - 36 -
Page 547
PT BUSSAN AUTO FINANCE                                                               PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                 NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                         FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                      DECEMBER 31, 2023 AND 2022 - Continued

   Terdapat piutang pembiayaan (sebelum dikurangi                 There are some financing receivables (before
   pendapatan pembiayaan yang belum diakui dan                    deducted with unearned financing income and
   cadangan kerugian kredit ekspektasian) sebesar                 allowance for expected credit losses) amounting to
   Rp 1.312.502.040 ribu pada tanggal 31 Desember                 Rp 1,312,502,040 thousand as of December 31, 2023
   2023 (31 Desember 2022: Rp 1.426.003.101 ribu)                 (December 31, 2022: Rp 1,426,003,101 thousand)
   yang digunakan sebagai jaminan atas utang obligasi             which was used as collateral of bonds payable
   (Catatan 18).                                                  (Note 18).

   Berdasarkan Perjanjian No. 26 tanggal 15 Agustus               Based on Agreement No. 26 dated August 15, 2022,
   2022, Perusahaan menandatangani perjanjian                     the Company entered into revolving joint financing
   pembiayaan bersama yang bersifat berulang dengan               agreement with PT Bank CIMB Niaga Tbk. The usage
   PT Bank CIMB Niaga Tbk. Penggunaan joint                       of this joint financing are for car financing and
   financing ini adalah untuk pembiayaan mobil dan                subrogation. Bank agreed to provide a joint financing
   subrogasi. Bank menyetujui untuk memberikan                    facility maximum IDR 250,000,000 thousand. The
   fasilitas pembiayaan bersama dengan jumlah                     facility has a term until January 31, 2025 and can be
   maksimum sebesar Rp 250.000.000 ribu. Jangka                   extended upon the agreement of both parties. The joint
   waktu perjanjian ini berlaku sampai dengan tanggal             financing portion for bank is 90% of the total financing
   31 Januari 2025 dan dapat diperpanjang sesuai                  facilities and the joint financing portion for BAF is 10%
   kesepakatan kedua belah pihak. Porsi pembiayaan                of the total financing facilities.
   bersama untuk bank sebesar 90% dari total fasilitas
   pembiayaan dan porsi pembiayaan bersama untuk
   BAF sebesar 10% dari total fasilitas pembiayaan.

   Tingkat suku bunga yang ditawarkan untuk jangka                Interest rate offered for loan terms of 1-5 years are
   waktu pinjaman 1-5 tahun berkisar 7,7% - 7,9%.                 ranging from 7.7% - 7.9%.

   Berdasarkan       Perjanjian   No.    08/PKS/ICF-              Based on Agreement No. 08/PKS/ICF-SDM/VIIII/2022
   SDM/VIII/2022 tanggal 18 Agustus 2022, Perusahaan              dated August 18, 2022, the Company entered into
   mengadakan perjanjian pembiayaan bersama yang                  revolving joint financing agreement with PT Bank
   bersifat berulang dengan PT Bank Permata Tbk.                  Permata Tbk. The usage of this joint financing are for
   Pembiayaan bersama ini digunakan untuk                         new motorcycles financing, consumer assets
   pembiayaan sepeda motor baru, pembelian aset                   purchase without recourse or subrogation. Bank
   konsumen tanpa recourse atau subrogasi. Bank                   agreed to provide a joint financing facility maximum
   setuju untuk memberikan fasilitas pembiayaan                   IDR 400,000,000 thousand. The facility has a term until
   bersama sebanyak-banyaknya Rp 400.000.000 ribu.                August 18, 2024 and renewable upon the agreement
   Jangka waktu fasilitas ini berlaku sampai dengan               of both parties. The joint financing portion for bank is
   tanggal 18 Agustus 2024 dan dapat diperpanjang                 90% of the total financing facilities and the joint
   sesuai kesepakatan kedua belah pihak. Porsi                    financing portion for BAF is 10% of the total financing
   pembiayaan bersama untuk bank sebesar 90% dari                 facilities. Interest rates per annum at 12% - 13%.
   total fasilitas pembiayaan dan porsi pembiayaan
   bersama untuk BAF sebesar 10% dari total fasilitas
   pembiayaan. Tingkat suku bunga per tahun sebesar
   12% - 13%.

   Pada tanggal 31 Desember 2023, saldo atas                      As of December 31, 2023, the outstanding balances
   transaksi    pembiayaan bersama    sebesar                     for joint financing transaction amounting to
   Rp 1.326.062 ribu (31 Desember 2022:                           Rp 1,326,062 thousand (December 31, 2022:
   Rp 1.616.979 ribu).                                            Rp 1,616,979 thousand)




                                                         - 37 -
Page 548
PT BUSSAN AUTO FINANCE                                                                                                           PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                                                             NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                                                                     FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                                                                  DECEMBER 31, 2023 AND 2022 - Continued

   Piutang Pembiayaan - Berdasarkan Umur Piutang                                                        Financing Receivable - Days Past Due
                                                                                                    31 Desember 2023/December 31, 2023
                                                                                                            Jatuh tempo/Past due
                                                        Belum jatuh
                                                          tempo/                 < 30 hari/           31 – 60 hari/       61 – 90 hari/         >90 hari/              Jumlah/
                                                        Not past due               days                  days                days                days                   Total
                                                           Rp '000                Rp '000                Rp '000            Rp '000              Rp '000               Rp '000

   Tingkat kerugian kredit ekspektasian/
   Expected credit loss rate                                         4%                       17%                  24%                36%                   76%

   Jumlah piutang pembiayaan (setelah
     dikurangi pendapatan pembiayaan
     yang belum diakui) pada saat gagal bayar/
   Total financing receivables (after deducting
     with unearned financing income)
     amount of default                                  11.807.679.279            747.376.872            643.863.874        301.265.985          593.854.786        14.094.040.796

   ECL 12 bulan/12-month ECL                              (416.955.086)          (124.740.690)              -                  -                    -                 (541.695.776)
   ECL sepanjang umur/Lifetime ECL                            -                      -                  (153.004.157)      (108.902.006)        (450.665.655)         (712.571.818)

   Jumlah/Total                                                                                                                                                     12.839.773.202



                                                                                                    31 Desember 2022/December 31, 2022
                                                                                                            Jatuh tempo/Past due
                                                        Belum jatuh
                                                          tempo/                 < 30 hari/           31 – 60 hari/       61 – 90 hari/         >90 hari/              Jumlah/
                                                        Not past due               days                  days                days                days                   Total
                                                           Rp '000                Rp '000                Rp '000            Rp '000              Rp '000               Rp '000

   Tingkat kerugian kredit ekspektasian/
   Expected credit loss rate                                         3%                       17%                  23%                36%                   76%

   Jumlah piutang pembiayaan (setelah
     dikurangi pendapatan pembiayaan
     yang belum diakui) pada saat gagal bayar/
   Total financing receivables (after deducting
     with unearned financing income)
     amount of default                                  11.679.638.873            732.311.012            625.700.327        283.954.540          529.461.958        13.851.066.710

   ECL 12 bulan/12-month ECL                              (358.907.276)          (125.548.448)              -                  -                    -                 (484.455.724)
   ECL sepanjang umur/Lifetime ECL                            -                      -                  (146.723.614)      (103.212.747)        (403.756.774)         (653.693.135)

   Jumlah/Total                                                                                                                                                     12.712.917.851



   Mutasi cadangan kerugian kredit ekspektasian                                                         The changes in the allowance for expected credit
   piutang pembiayaan adalah sebagai berikut:                                                           losses of financing receivable are as follows:
                                                                           31 Desember 2023/December 31, 2023
                                                   Tahap 1/             Tahap 2/             Tahap 3/                       Jumlah/
                                                   Stage 1              Stage 2               Stage 3                        Total
                                                   Rp '000              Rp '000               Rp '000                       Rp '000

   Saldo awal - 1 Januari 2023                     484.455.724           249.936.361                 403.756.774              1.138.148.859    Beginning balance - January 1, 2023

   Transfer tahap 1                                   9.381.172            (9.017.590)                  (363.582)              -               Transfer to stage 1
   Transfer tahap 2                                 (38.991.267)           39.430.616                   (439.349)              -               Transfer to stage 2
   Transfer tahap 3                                 (24.784.770)          (13.092.538)                37.877.308               -               Transfer to stage 3
   Pencadangan baru dan kenaikan cadangan                                                                                                      New and increased provisions
     (dikurangi dengan pembalikan)                  859.247.752          366.936.003                  604.420.058             1.830.603.813      (net of releases)
   Penghapusan                                     (747.612.835)        (372.286.689)                (594.585.554)           (1.714.485.078)   Written-off

   Saldo akhir - 31 Desember 2023                  541.695.776           261.906.163                 450.665.655              1.254.267.594    Ending balance - December 31, 2023


                                                                       31 Desember 2022/December 31, 2022
                                                  Tahap 1/             Tahap 2/          Tahap 3/                          Jumlah/
                                                  Stage 1              Stage 2           Stage 3                            Total
                                                  Rp '000              Rp '000           Rp '000                           Rp '000

   Saldo awal - 1 Januari 2021                    501.689.996          221.736.249                  343.211.994            1.066.638.239       Beginning balance - January 1, 2021

   Transfer tahap 1                       15.840.501                  (14.811.882)                   (1.028.619)               -               Transfer to stage 1
   Transfer tahap 2                      (54.395.312)                  56.266.605                    (1.871.293)               -               Transfer to stage 2
   Transfer tahap 3                      (26.401.691)                (128.114.385)                  154.516.076                -               Transfer to stage 3
   Pencadangan baru dan kenaikan cadangan                                                                                                      New and increased provisions
     (dikurangi dengan pembalikan)        47.722.230                   114.875.964               1.142.199.457              1.304.797.651       (net of releases)
   Penghapusan                                -                            (16.190)             (1.233.270.841)            (1.233.287.031)     Written-off

   Saldo akhir - 31 Desember 2022                 484.455.724          249.936.361                  403.756.774            1.138.148.859       Ending balance - December 31, 2022




                                                                                         - 38 -
Page 549
PT BUSSAN AUTO FINANCE                                                                          PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                            NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                                    FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                                 DECEMBER 31, 2023 AND 2022 - Continued

     Tidak ada perubahan dalam teknik estimasi atau                         There has been no change in the estimation
     asumsi signifikan yang dibuat selama periode                           techniques or significant assumptions made during the
     pelaporan berjalan dalam menilai penyisihan                            current reporting period in assessing the loss
     kerugian untuk aset keuangan tersebut.                                 allowance for these financial assets.


7.   PIUTANG LAIN-LAIN - BERSIH                                       7.    OTHER ACCOUNTS RECEIVABLE - NET

                                                  31 Desember/        31 Desember/
                                                  December 31,        December 31,
                                                      2023                2022
                                                     Rp '000             Rp '000

     Pihak berelasi                                                                       Related parties
       Piutang direksi                                2.188.398             2.887.379       Directors receivables
     Pihak ketiga                                                                         Third parties
       Piutang karyawan                              39.857.944            22.945.539       Employee receivables
       Piutang atas penagihan biaya promosi           2.775.129             2.063.050       Receivables of claimed promotion expenses
       Piutang pengembalian premi asuransi              246.789             1.509.226       Insurance premium refund receivables
       Lain-lain - bersih                            14.395.063             8.208.443       Others - net

       Piutang pembiayaan dari jaminan - bersih                                             Financing receivable from collateral - net
         Piutang pembiayaan dari jaminan             95.924.203             45.548.022        Financing receivable from collateral
         Cadangan kerugian kredit ekspektasian      (34.078.735)           (16.061.108)       Allowance for expected credit losses

       Sub jumlah - bersih                           61.845.468            29.486.914       Subtotal - net

     Jumlah                                         121.308.791            67.100.551     Total

     Piutang Karyawan                                                      Employee Receivables

     Piutang karyawan merupakan pinjaman yang                              Employee receivables represents loan provided to
     diberikan kepada karyawan untuk kepemilikan                           employees for vehicle ownership. This loan has varies
     kendaraan bermotor. Jangka waktu pinjaman                             tenure ranging from 3 - 5 years.
     bervariasi antara 3 - 5 tahun.

     Piutang Direksi                                                       Directors Receivables

     Piutang direksi merupakan pinjaman yang diberikan                     Directors receivables represents loan provided to
     kepada direksi untuk kepemilikan kendaraan                            directors for vehicle ownership. This loan has tenure
     bermotor. Jangka waktu pinjamannya adalah 3 tahun.                    for 3 years.

     Piutang atas Penagihan Biaya Promosi                                  Receivables of Claimed Promotion Expenses

     Piutang ini merupakan piutang atas penagihan biaya                    This receivables represent receivable from marketing
     promosi yang dilakukan Perusahaan untuk                               activities done by the Company to insurance company.
     perusahaan asuransi. Piutang atas penagihan biaya                     The receivables of claimed promotion expenses are
     promosi ini tidak dikenakan bunga dan akan                            not subject to interest and will be paid within one year.
     diselesaikan dalam jangka waktu satu tahun.

     Lain-lain                                                             Others

     Piutang lain-lain kepada pihak ketiga terutama                        Other receivable from third parties primarily represents
     merupakan piutang lain-lain yang berhubungan                          receivable from financing activities and receivables
     dengan kegiatan pembiayaan dan piutang atas biaya                     from collection fee to customer.
     penagihan ke nasabah.

     Piutang Pembiayaan dari Jaminan                                       Financing Receivable from Collateral

     Piutang pembiayaan jaminan merupakan piutang                          Financing receivable from collateral represents
     pembiayaan konsumen yang kendaraannya diambil                         financing receivable that vehicles have been
     alih untuk penyelesaian piutang nasabah.                              foreclosed to cover customer receivable.




                                                                 - 39 -
Page 550
PT BUSSAN AUTO FINANCE                                                                       PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                         NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                                 FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                              DECEMBER 31, 2023 AND 2022 - Continued

   Piutang pembiayaan dari jaminan dijamin dengan                       Financing receivable from collateral are secured with
   agunan. Jika terjadi gagal bayar, Perusahaan berhak                  collateral. In the event of default, the Company is
   untuk menjual aset tersebut, dan berhak atas setiap                  entitled to sell the asset, and has rights to any
   hasil dari penjualan aset tersebut sampai jumlah total               proceeds from such a sale up to the total amount
   piutang dari nasabah.                                                receivable from the customer.

   Manajemen mengestimasi penyisihan kerugian atas                      Management estimates the loss allowance on
   piutang pembiayaan dari jaminan pada tanggal                         financing receivable from collateral at December 31,
   31 Desember 2023 sebesar ECL sepanjang umur.                         2023 at an amount equal to lifetime ECL. Allowance
   Penyisihan kerugian kredit ekspektasian sebesar                      for expected credit losses amounting to Rp 34,078,735
   Rp 34.078.735 ribu (2022: Rp 16.061.108 ribu)                        thousand (2022: Rp 16,061,108 thousand) considers
   memperhitungkan nilai jaminan yang dimiliki atas                     the value of collateral held over these receivables.
   piutang tersebut.

   Untuk tujuan penilaian penurunan nilai piutang lain-                 For purpose of impairment assessment other accounts
   lain, kecuali piutang pembiayaan dari jaminan dan                    receivable, except finance receivable from collateral
   lain-lain, dianggap memiliki risiko kredit yang rendah               and others are considered to have low credit risk and
   dan tidak ada peningkatan signifikan dalam risiko                    there has been no significant increase in the risk of
   gagal bayar sejak pengakuan awal. Oleh karena itu,                   default on the receivables since initial recognition.
   untuk tujuan penilaian penurunan nilai pinjaman ini,                 Accordingly, for the purpose of impairment
   cadangan kerugian diukur sejumlah ECL 12 bulan,                      assessment for these receivables, the loss allowance
   kecuali untuk piutang lain - lain, yang cadangan                     is measured at an amount equal to 12-month ECL,
   kerugian penurunan nilai nya diukur sejumlah ECL                     except for other accounts receivable, where the loss
   sepanjang umur.                                                      allowance is measured at an amount equal to lifetime
                                                                        ECL.

   Dalam menentukan ECL, manajemen telah                                In determining the ECL, management has taken into
   memperhitungkan posisi keuangan pihak terkait,                       account the financial position of the relevant parties,
   disesuaikan dengan faktor-faktor spesifik dari pihak                 adjusted for factors that are specific to the relevant
   terkait,   dalam    memperkirakan     kemungkinan                    parties, in estimating the probability of default of the
   terjadinya gagal bayar pinjaman serta kerugian saat                  other accounts receivable as well as the loss upon
   terjadinya gagal bayar. Manajemen menentukan                         default. Management determines the other accounts
   bahwa pinjaman kepada pihak terkait memiliki                         receivable from relevant parties are subject to
   kerugian kredit yang tidak material.                                 immaterial credit loss.

   Tidak ada perubahan dalam teknik estimasi atau                       There has been no change in the estimation
   asumsi signifikan yang dibuat selama periode                         techniques or significant assumptions made during the
   pelaporan berjalan dalam penilaian cadangan                          current reporting period in assessing the loss
   kerugian piutang lain-lain.                                          allowance for other accounts receivable.

   Mutasi cadangan kerugian kredit piutang pembiayaan                   The changes in the allowance for credit losses of
   dari jaminan adalah sebagai berikut:                                 receivable from collateral are as follows:

                                                31 Desember/        31 Desember/
                                                December 31,        December 31,
                                                    2023                2022
                                                   Rp '000             Rp '000

    Saldo awal tahun                                16.061.108           15.827.832    Balance at beginning of year
    Penyisihan tahun berjalan                      106.305.212           47.323.503    Allowance during the year
    Penghapusan                                    (88.287.585)         (47.090.227)   Written off

    Saldo akhir                                     34.078.735          16.061.108     Balance at end of year




                                                               - 40 -
Page 551
PT BUSSAN AUTO FINANCE                                                                           PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                             NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                                     FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                                  DECEMBER 31, 2023 AND 2022 - Continued

8.   UANG MUKA                                                      8.    ADVANCES

                                               31 Desember/        31 Desember/
                                               December 31,        December 31,
                                                   2023                2022
                                                  Rp '000             Rp '000

     Uang muka pembelian perangkat lunak                                                Advance for purchase of computer
      komputer                                     8.722.119             22.875.030      software
                                                                                        Advance for purchase of property
     Uang muka pembelian aset tetap               22.840.006              7.630.897      and equipment

     Jumlah                                       31.562.125             30.505.927     Total



9.   BIAYA DIBAYAR DIMUKA                                           9.    PREPAID EXPENSES

                                               31 Desember/        31 Desember/
                                               December 31,        December 31,
                                                   2023                2022
                                                  Rp '000             Rp '000

     Pemeliharaan teknis perangkat lunak          23.298.368             17.528.556     Technical maintenance of software
     Asuransi                                      7.002.761              5.608.613     Insurance
     Sewa - pihak ketiga                           4.159.694              5.952.106     Rent - third parties
     Program pemasaran                             1.104.443              1.260.877     Marketing program
     Lainnya                                         589.703                691.669     Others

     Jumlah                                       36.154.969             31.041.821     Total

     Seluruh biaya dibayar dimuka, kecuali biaya sewa,                    All prepaid expenses, except for rent, will mature within
     akan jatuh tempo dalam waktu satu tahun. Pada                        one year. As of December 31, 2023 and 2022, rent
     tanggal 31 Desember 2023 dan 2022, sewa diatas                       above one year are considered as low value asset.
     satu tahun merupakan sewa bernilai rendah.

     Bagian dari biaya sewa dibayar dimuka menurut jatuh                  Portion of prepaid rent expenses based on the maturity
     temponya adalah sebagai berikut:                                     are as follows:

                                                31 Desember/        31 Desember/
                                                December 31,        December 31,
                                                    2023                2022
                                                   Rp '000             Rp '000

     Dalam waktu satu tahun                         2.905.064              4.695.624     Within one year
     Diatas satu tahun                              1.254.630              1.256.482     Above one year

     Jumlah                                         4.159.694              5.952.106     Total




                                                               - 41 -
Page 552
PT BUSSAN AUTO FINANCE                                                                PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                  NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                          FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                       DECEMBER 31, 2023 AND 2022 - Continued

10. ASET TETAP                                             10. PROPERTY AND EQUIPMENT

                               1 Januari/                               31 Desember/
                               January 1,   Penambahan/    Pengurangan/ December 31,
                                 2023        Additions      Deductions      2023
                                Rp '000       Rp '000        Rp '000       Rp '000

    Biaya perolehan:                                                                        At cost:
      Tanah                    88.679.845         -              -             88.679.845     Land
      Gedung                  203.989.210         -              -            203.989.210     Building
      Prasarana gedung         71.579.348      8.552.434             610       80.131.172     Leasehold improvement
      Perangkat kantor                                                                        Office furniture, fixture
        dan perabot           254.201.321     40.812.222      8.765.958       286.247.585       and equipment
      Kendaraan                 5.641.201        911.657        260.450         6.292.408     Vehicles

    Jumlah                    624.090.925     50.276.313      9.027.018       665.340.220   Total

    Akumulasi penyusutan:                                                                   Accumulated depreciation:
      Gedung                   36.569.096     10.209.866         -             46.778.962     Building
      Prasarana gedung         58.354.053      6.791.728              13       65.145.768     Leasehold improvement
      Perangkat kantor                                                                        Office furniture, fixture
       dan perabot            188.769.401     30.893.491      8.075.427       211.587.465       and equipment
      Kendaraan                 3.530.138      1.010.172        245.637         4.294.673     Vehicles

    Jumlah                    287.222.688     48.905.257      8.321.077       327.806.868   Total

    Nilai tercatat bersih     336.868.237                                     337.533.352   Net carrying amount


                              1 Januari/                                31 Desember/
                              January 1,    Penambahan/    Pengurangan/ December 31,
                                2022         Additions      Deductions      2022
                               Rp '000        Rp '000        Rp '000       Rp '000

    Biaya perolehan:                                                                        At cost:
      Tanah                    88.679.845        -              -             88.679.845      Land
      Gedung                  203.989.210        -              -            203.989.210      Building
      Prasarana gedung         64.995.458     6.583.890         -             71.579.348      Leasehold improvement
      Perangkat kantor                                                                        Office furniture, fixture
        dan perabot           208.284.512    46.604.816        688.007       254.201.321        and equipment
      Kendaraan                 4.062.501     1.635.700         57.000         5.641.201      Vehicles

    Jumlah                    570.011.526    54.824.406        745.007       624.090.925    Total

    Akumulasi penyusutan:                                                                   Accumulated depreciation:
      Gedung                   26.359.229    10.209.867         -             36.569.096      Building
      Prasarana gedung         52.806.668     5.547.385         -             58.354.053      Leasehold improvement
      Perangkat kantor                                                                        Office furniture, fixture
       dan perabot            160.874.392    28.515.885        620.876       188.769.401        and equipment
      Kendaraan                 2.781.713       797.737         49.312         3.530.138      Vehicles

    Jumlah                    242.822.002    45.070.874        670.188       287.222.688    Total

    Nilai tercatat bersih     327.189.524                                    336.868.237    Net carrying amount

   Seluruh aset tetap Perusahaan digunakan untuk               All of the Company’s property and equipment are used
   kegiatan operasional Perusahaan.                            in the Company’s operational activity.

   Penyusutan yang dibebankan pada laba rugi                   Depreciation charged to profit or loss amounted to
   sejumlah Rp 48.905.257 ribu pada 31 Desember                Rp 48,905,257 thousand in December 31, 2023
   2023 (31 Desember 2022: Rp 45.070.874 ribu).                (December 31, 2022: Rp 45,070,874 thousand).




                                                     - 42 -
Page 553
PT BUSSAN AUTO FINANCE                                                                            PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                              NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                                      FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                                   DECEMBER 31, 2023 AND 2022 - Continued

   Kerugian penjualan aset tetap adalah sebagai                                Loss on sale of property and equipment are as follows:
   berikut:

                                                  31 Desember/         31 Desember/
                                                  December 31,         December 31,
                                                      2023                 2022
                                                     Rp '000              Rp '000

   Jumlah tercatat                                      705.941                  74.819       Net carrying amount
   Hasil penjualan aset tetap                           317.414                  61.789       Proceeds from sale of property and equipment

   Kerugian penjualan aset tetap                       (388.527)                 (13.030)     Loss on sale of property and equipment

   Kerugian atas penjualan aset tetap disajikan sebagai                        Loss on sale of property and equipment is presented
   bagian dari pendapatan lain-lain pada laporan laba                          as part of other income in the statement of profit or loss
   rugi dan penghasilan komprehensif lain.                                     and other comprehensive income.

   Perusahaan memiliki sebidang tanah dengan luas                              The Company owns a parcel of land located in
   area 4.827 meter persegi dengan hak legal berupa                            Jagakarsa, South Jakarta with total area of 4,827
   Hak Guna Bangunan (HGB) di Jagakarsa, Jakarta                               square meters with Building Use Right (Hak Guna
   Selatan yang berlaku selama 30 tahun sampai                                 Bangunan or HGB) for a period of 30 years until 2045.
   dengan 2045. Perusahaan membangun gedung                                    The Company builds a building office in this area, for
   kantor pada bidang tanah ini yang digunakan untuk                           Company’s business activities. Management believes
   kegiatan     bisnis    Perusahaan.     Manajemen                            that there will be no difficulty in the extension of the
   berkeyakinan bahwa tidak terdapat masalah untuk                             landrights since the land was acquired legally and
   memperpanjang hak atas tanah karena seluruh tanah                           supported by sufficient evidence of ownership.
   dimiliki secara legal dan didukung dengan bukti
   kepemilikan yang memadai.


11. PERANGKAT LUNAK KOMPUTER                                           11. COMPUTER SOFTWARE

                                    1 Januari/                                        31 Desember/
                                   January 1,    Penambahan/       Pengurangan/       December 31
                                      2023        Additions         Deductions            2023
                                     Rp '000       Rp '000           Rp '000             Rp '000
    Biaya perolehan                                                                                      At cost
      Perangkat lunak              198.853.758    34.154.181               -            233.007.939        Computer software

    Akumulasi amortisasi                                                                                 Accumulated amortisation
      Kendaraan
      Perangkat lunak              117.075.766    38.751.007               -            155.826.773        Computer software

    Nilai tercatat bersih           81.777.992                                              77.181.166   Net Carrying Amount



                                    1 Januari/                                        31 Desember/
                                   January 1,    Penambahan/       Pengurangan/       December 31
                                      2022        Additions         Deductions            2022
                                     Rp '000       Rp '000           Rp '000             Rp '000
    Biaya perolehan                                                                                      At cost
      Perangkat lunak              159.067.470    39.786.288               -            198.853.758        Computer software

    Akumulasi amortisasi                                                                                 Accumulated amortisation
      Kendaraan
      Perangkat lunak               81.271.200    35.804.566               -            117.075.766        Computer software

    Nilai tercatat bersih           77.796.270                                              81.777.992   Net Carrying Amount




                                                                  - 43 -
Page 554
PT BUSSAN AUTO FINANCE                                                                              PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                                NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                                        FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                                     DECEMBER 31, 2023 AND 2022 - Continued

12. ASET HAK-GUNA                                                       12. RIGHT-OF-USE ASSETS

   Perusahaan menyewa beberapa aset berupa                                    The Company leases several assets in the form of
   bangunan. Masa sewa rata-rata adalah 2 tahun.                              building. The average lease term is 2 years.

                                      1 Januari/                                         31 Desember/
                                      January 1,   Penambahan/      Pengurangan/         December 31
                                        2023        Additions        Deductions              2023
                                       Rp '000       Rp '000          Rp '000               Rp '000

   Biaya perolehan:                                                                                        At cost:
     Bangunan                         61.459.781    19.540.850        21.996.514           59.004.117        Building

   Akumulasi penyusutan:                                                                                   Accumulated depreciation:
     Bangunan                         33.553.584    19.394.195        21.996.514           30.951.265        Building

   Nilai tercatat bersih              27.906.197                                           28.052.852      Net carrying amount



                                      1 Januari/                                         31 Desember/
                                      January 1,   Penambahan/      Pengurangan/         December 31
                                        2022        Additions        Deductions              2022
                                       Rp '000       Rp '000          Rp '000               Rp '000

   Biaya perolehan:                                                                                        At cost:
     Bangunan                         59.062.619    17.533.559        15.136.397           61.459.781        Building

   Akumulasi penyusutan:                                                                                   Accumulated depreciation:
     Bangunan                         25.985.206    22.704.775        15.136.397           33.553.584        Building

   Nilai tercatat bersih              33.077.413                                           27.906.197      Net carrying amount

   Analisis jatuh tempo liabilitas sewa disajikan pada                        The maturity analysis of lease liabilities is presented in
   Catatan 19.                                                                Note 19.

   Jumlah yang diakui ke laba rugi yang timbul dari sewa                      Amounts recognized in profit or loss arising from
   adalah sebagai berikut:                                                    leases are as follows:

                                                       2023                  2022
                                                      Rp '000               Rp '000

   Beban penyusutan aset hak-guna                     19.394.195            22.704.775      Depreciation expense on right-of-use assets

   Beban bunga atas liabilitas sewa                      450.644               552.987      Interest expense on lease liabilities

   Beban yang berkaitan dengan
     sewa jangka pendek                                1.529.757             2.967.210      Expense relating to short-term leases

   Beban yang berkaitan dengan sewa aset
     bernilai rendah                                      69.703                59.097      Expense relating to leases of low-value assets

   Jumlah pengeluaran kas untuk sewa (termasuk sewa                           The total cash outflow for leases (including short-term
   jangka pendek dan sewa aset bernilai rendah)                               leases and leases of low value assets) amounted to
   sebesar Rp 5.065 juta pada tahun 2023 (2022:                               Rp 5,065 million in 2023 (2022: Rp 8,195 million).
   Rp 8.195 juta).


13. ASET LAINNYA                                                        13. OTHER ASSETS

   Akun ini merupakan investasi pada obligasi konversi,                       This account represents investment in convertible
   uang jaminan dan keanggotaan.                                              bonds, refundable deposit and membership.




                                                                   - 44 -
Page 555
PT BUSSAN AUTO FINANCE                                                                          PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                            NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                                    FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                                 DECEMBER 31, 2023 AND 2022 - Continued

14. PINJAMAN BANK                                                  14. BANK LOANS

                                              31 Desember/        31 Desember/
                                              December 31,        December 31,
                                                  2023                2022
                                                 Rp '000             Rp '000

   a). Berdasarkan kreditur                                                            a). By creditor
       Pinjaman Jangka Panjang                                                             Long Term Loans

      Pihak ketiga                                                                       Third parties
      PT Bank Maybank Indonesia Tbk                                                      PT Bank Maybank Indonesia Tbk
        Rp 700.000.000 ribu pada 2023           700.000.000               -                Rp 700,000,000 thousand in 2023
        (2022: nihil)                                                                      (2022: nil)
      PT Bank BTPN Tbk                                                                   PT Bank BTPN Tbk
        US$ 33.517.969 pada 2023                                                           US$ 33,517,969 in 2023
        (2022: Rp 100.000.000 ribu dan                                                     (2022: Rp 100,000,000 thousand and
        US$ 23.411.313)                         516.713.022            468.283.362         US$ 23,411,313)
      PT Bank Mizuho Indonesia                                                           PT Bank Mizuho Indonesia
        US$ 15.965.084 pada 2023                                                           US$ 15,965,084 in 2023
        (2022: Rp 135.000.000 ribu dan                                                     (2022: Rp 135,000,000 thousand and
        US$ 38.174.456)                         246.117.730            735.522.374         US$ 38,174,456)
      MUFG Bank Ltd., Cabang Jakarta                                                     MUFG Bank Ltd., Jakarta Branch
        Rp 120.000.000 ribu pada 2023                                                      Rp 120,000,000 thousand in 2023
        (2022: nihil)                           120.000.000               -                (2022: nil)
      PT Bank ANZ Indonesia                                                              PT Bank ANZ Indonesia
        (2022: Rp 65.000.000 ribu dan                                                      (2022: Rp 65,000,000 thousand and
        US$ 16.033.461)                            -                   317.222.377         US$ 16,033,461)
      Sumitomo Mitsui Trust Bank., Ltd.                                                  Sumitomo Mitsui Trust Bank., Ltd.
        (2022: US$ 14.000.000)                     -                   220.234.000         (2022: US$ 14,000,000)

      Sub Jumlah                              1.582.830.752        1.741.262.113         Sub Total


      Pinjaman Jangka Pendek                                                             Short Term Loans

      Pihak ketiga                                                                       Third parties
      PT Bank Mizuho Indonesia                                                           PT Bank Mizuho Indonesia
        Rp 135.000.000 ribu dan                                                            Rp 135,000,000 thousand and
        US$38.174.456 pada 2023                                                            US$ 38,174,456 in 2023
        (2022: nihil)                           723.497.420               -                (2022: nil)
      MUFG Bank Ltd., Cabang Jakarta                                                     MUFG Bank Ltd., Jakarta Branch
        Rp 650.000.000 ribu pada 2023                                                      Rp 650,000,000 thousand in 2023
        (2022: Rp 1.000.000.000 ribu)           650.000.000        1.000.000.000           (2022: Rp 1,000,000,000 thousand)
      Bank of America, N.A., Cabang Jakarta                                              Bank of America, N.A., Jakarta Branch
        US$ 41,457,869 pada 2023                                                           US$ 41,457,869 in 2023
        (2022: Rp 624.000.000 ribu)             639.114.509            624.000.000         (2022: Rp 624,000,000 thousand)
      Citibank, N.A., Cabang Jakarta                                                     Citibank, N.A., Jakarta Branch
        Rp 470.000.000 ribu pada 2023                                                      Rp 470,000,000 thousand in 2023
        (2022: Rp 638.000.000 ribu)             470.000.000            638.000.000         (2022: Rp 638,000,000 thousand)
      PT Bank BTPN Tbk                                                                   PT Bank BTPN Tbk
        Rp 100.000.000 ribu dan                                                            Rp 100,000,000 thousand and
        US$ 23.411.313 pada 2023                                                           US$ 23,411,313 in 2023
        (2022: Rp 260.000.000 ribu dan                                                     (2022: Rp 260,000,000 thousand and
        US$ 20.994.694)                         460.908.799            590.267.536         US$ 20,994,694)
      Deutsche Bank AG, Cabang Jakarta                                                   Deutsche Bank AG, Jakarta Branch
        Rp 275.000.000 ribu pada 2023                                                      Rp 275,000,000 thousand in 2023
        (2022: Rp 150.000.000 ribu)             275.000.000            150.000.000         (2022: Rp 150,000,000 thousand)
      Sumitomo Mitsui Trust Bank., Ltd.                                                  Sumitomo Mitsui Trust Bank., Ltd.
        US$ 14.000.000 pada 2023                                                           US$ 14,000,000 in 2023
        (2022: US$ 3.500.000)                   215.824.000             55.058.500         (2022: US$ 3,500,000)
      PT Bank Central Asia Tbk                                                           PT Bank Central Asia Tbk
        Rp 150.000.000 ribu pada 2023                                                      Rp 150,000,000 thousand in 2023
        (2022: Rp 30.000.000)                   150.000.000             30.000.000         (2022: Rp 30,000,000)
      PT Bank HSBC Indonesia                                                             PT Bank HSBC Indonesia
        Rp 150.000.000 ribu pada 2023           150.000.000               -                Rp 150,000,000 thousand in 2023
      PT Bank Digital BCA                                                                PT Bank Digital BCA
        Rp 100.000.000 ribu pada 2023           100.000.000               -                Rp 100,000,000 thousand in 2023




                                                              - 45 -
Page 556
PT BUSSAN AUTO FINANCE                                                                             PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                               NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                                       FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                                    DECEMBER 31, 2023 AND 2022 - Continued

                                                31 Desember/         31 Desember/
                                                December 31,         December 31,
                                                    2023                 2022
                                                   Rp '000              Rp '000

      Pinjaman Jangka Pendek                                                                 Short Term Loans

      Pihak ketiga                                                                           Third parties
      PT CIMB Niaga Tbk                                                                      PT CIMB Niaga Tbk
        Rp 100.000.000 ribu pada 2023             100.000.000                -                 Rp 100,000,000 thousand in 2023
      PT Bank Victoria International Tbk                                                     PT Bank Victoria International Tbk
        Rp 50.000.000 ribu pada 2023                                                           Rp 50,000,000 thousand in 2023
        (2022: Rp 205.000.000 ribu)                 50.000.000            205.000.000          (2022: Rp 205,000,000 thousand)
      PT BCA Syariah                                                                         PT BCA Syariah
        Rp 50.000.000 ribu pada 2023                50.000.000               -                 Rp 50,000,000 thousand in 2023
      PT Bank Muamalat Indonesia Tbk                                                         PT Bank Muamalat Indonesia Tbk
        Rp 40.000.000 ribu pada 2023                                                           Rp 40,000,000 thousand in 2023
        (2022: Rp 10.000.000)                       40.000.000             10.000.000          (2022: Rp 10,000,000)
      PT Bank Victoria Syariah                                                               PT Bank Victoria Syariah
        Rp 30.000.000 ribu pada 2023                                                           Rp 30,000,000 thousand in 2023
        (2022: Rp 5.000.000)                        30.000.000              5.000.000          (2022: Rp 5,000,000)
      Bank of America, N.A., Cabang Tokyo                                                    Bank of America, N.A., Tokyo Branch
        (2022: US$ 45.000.000)                        -                   707.895.000          (2022: US$ 45,000,000)
      PT Bank ANZ Indonesia                                                                  PT Bank ANZ Indonesia
        (2022: Rp 625.000.000 ribu)                   -                   625.000.000          (2022: Rp 625,000,000 thousand)

      Jumlah                                     4.104.344.728        4.640.221.036          Total

      Jumlah pinjaman                            5.687.175.480        6.381.483.149          Total loans

   b). Berdasarkan mata uang                                                              b). By currency
       Pinjaman Jangka Panjang                                                                Long Term Loans

      Pihak ketiga                                                                           Third parties
      Dolar Amerika Serikat                       762.830.752         1.441.262.113          United States Dollar
      Indonesia Rupiah                            820.000.000           300.000.000          Indonesian Rupiah

      Jumlah                                     1.582.830.752        1.741.262.113          Total

      Pinjaman Jangka Pendek                                                                 Short Term Loans

      Pihak ketiga                                                                           Third parties
      Dolar Amerika Serikat                      1.804.344.728        1.093.221.036          United States Dollar
      Indonesia Rupiah                           2.300.000.000        3.547.000.000          Indonesian Rupiah

      Jumlah                                     4.104.344.728        4.640.221.036          Total

      Jumlah pinjaman                            5.687.175.480        6.381.483.149          Total loans

   Tingkat bunga                                                                          Interest rates
      Dolar Amerika Serikat                     2.05% - 6.71%        1.17% - 5.64%            United States Dollar
      Indonesia Rupiah                          6.27% - 8.10%        3.90% - 8.10%            Indonesian Rupiah



   Beberapa fasilitas pinjaman di atas dijamin dengan                       Several loans facility were guaranteed with standby
   standby letters of credit dan letters of guarantee dari                  letters of credit and letters of guarantee from its parent
   perusahaan induk, Mitsui & Co., Ltd., Jepang dan JA                      company, Mitsui & Co., Ltd., Japan and JA Mitsui
   Mitsui Leasing., Ltd. Tidak terdapat aset yang                           Leasing., Ltd. There is no asset guaranteed pertain to
   dijaminkan untuk seluruh fasilitas pinjaman ini.                         these loan facilities. The Company hedged the loans
   Perusahaan melakukan lindung nilai atas pinjaman                         to manage market risks related to foreign currency
   untuk mengelola risiko pasar terkait dengan nilai tukar                  exchange rates using cross currency swaps contract
   mata uang asing dengan menggunakan kontrak cross                         (Note 29).
   currency swap (Catatan 29).




                                                                 - 46 -
Page 557
PT BUSSAN AUTO FINANCE                                                                                                                                  PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                                                                                    NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                                                                                            FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                                                                                         DECEMBER 31, 2023 AND 2022 - Continued

   Ringkasan fasilitas pinjaman bank Perusahaan                                                                            A summary of the Company's bank loan facilities are
   adalah sebagai berikut:                                                                                                 as follows:
                                                                                           Batas kredit
                                                                                         (dalam ribuan
                                                                                        mata uang asli)/
                                                                                            Credit limit
                      Bank/                         Fasilitas/          Basis/            (in thousand                                                       Bunga/                                         Tanggal jatuh tempo/
                      Bank                           Facility           Base            original amount)                                                    Interest                                             Due date

   MUFG Bank Ltd.,                         Fasilitas modal kerja/     Guarantee   Rp        2.200.000.000     Suku bunga akan dibebankan atas suatu pinjaman pada jangka waktu bunga                     31 Desember 2024/
   Cabang Jakarta/Jakarta Branch           Working capital facility                                           dan mata uang tertentu                                                                     December 31, 2024
                                                                                                              USD - bunga referensi + margin yang berlaku
                                                                                                              JPY - JBA TIBOR + margin yang berlaku
                                                                                                              IDR - biaya pendanaan + margin yang berlaku
                                                                                                              Margin yang berlaku:
                                                                                                              Untuk pinjaman dalam rupiah, sampai dengan 1 tahun : 0,375% per tahun.
                                                                                                              lebih dari 1 tahun sampai dengan 2 tahun: 1,00% per tahun
                                                                                                              lebih dari 2 tahun sampai dengan 4 tahun: 1,20% per tahun
                                                                                                              Untuk pinjaman dalam USD dan/atau JPY, sampai dengan tahun: 1,10% per tahun
                                                                                                              lebih dari 1 tahun sampai dengan 2 tahun: 1,40% per tahun
                                                                                                              lebih dari 2 tahun sampai dengan 4 tahun: 1,65% per tahun/
                                                                                                              Interest rate shall be charged over a loan for the relevant interest period and currency
                                                                                                              USD - Reference rate + applicable margin
                                                                                                              JPY - JBA TIBOR + applicable margin
                                                                                                              IDR - COF + applicable margin
                                                                                                              Applicable margin:
                                                                                                              For loan in IDR, up to 1 year: 0.375% p.a. more than 1 year up to 2 years: 1.00% p.a
                                                                                                              more than 2 years up to 4 years: 1.20% p.a.
                                                                                                              For loan in USD and/or JPY, up to 1 year: 1.10% p.a.
                                                                                                              more than 1 year up to 2 years: 1.40% p.a
                                                                                                              more than 2 years up to 4 years: 1.65% p.a.

   MUFG Bank Ltd.,                         Fasilitas modal kerja/      Clean      Rp        1.000.000.000     Suku bunga akan dibebankan atas suatu pinjaman pada jangka waktu bunga                     31 Desember 2024/
   Cabang Jakarta/Jakarta Branch           Working capital facility                                           dan mata uang tertentu                                                                     December 31, 2024
                                                                                                              USD - bunga referensi + margin yang berlaku
                                                                                                              JPY - JBA TIBOR + margin yang berlaku
                                                                                                              IDR - biaya pendanaan + marjin yang berlaku
                                                                                                              Margin yang berlaku:
                                                                                                              Untuk pinjaman dalam rupiah, sampai dengan 1 tahun : 0,65% per tahun.
                                                                                                              lebih dari 1 tahun sampai dengan 2 tahun: 1,30% per tahun
                                                                                                              lebih dari 2 tahun sampai dengan 3 tahun: 1,47% per tahun
                                                                                                              Untuk pinjaman dalam USD dan/atau JPY, sampai dengan tahun: 1,25% per tahun
                                                                                                              lebih dari 1 tahun sampai dengan 2 tahun: 1,65% per tahun/
                                                                                                              lebih dari 2 tahun sampai dengan 3 tahun: 1,95% per tahun
                                                                                                              Interest rate shall be charged over a loan for the relevant interest period and currency
                                                                                                              USD - reference rate + applicable margin
                                                                                                              JPY - JBA TIBOR + applicable margin
                                                                                                              IDR - COF + applicable margin
                                                                                                              Applicable margin:
                                                                                                              For loan in IDR, up to 1 year: 0.65% p.a. More than 1 year up to 2 years: 1.30% p.a
                                                                                                              more than 2 years up to 3 years: 1.47% p.a
                                                                                                              For loan in USD and/or JPY, up to 1 year: 1.25% p.a.
                                                                                                              more than 1 year up to 2 years: 1.65% p.a
                                                                                                              more than 2 years up to 3 years: 1.95% p.a

   PT Bank Mizuho Indonesia                Fasilitas modal kerja/     Guarantee   Rp        1.500.000.000     Biaya pendanaan + 0,3% untuk penarikan menggunakan mata uang                               31 Desember 2024/
                                           Working capital facility                                           Rupiah dan Dolar Amerika Serikat/Cost of Fund + 0.3% for drawdown                          December 31, 2024
                                                                                                              using Rupiah and US$ currency

   PT Bank Mizuho Indonesia                Fasilitas modal kerja/      Clean      Rp          950.000.000     Biaya pendanaan + 0,6% untuk penarikan menggunakan mata uang                               31 Desember 2024/
                                           Working capital facility                                           Rupiah dan Dolar Amerika Serikat/Cost of Fund + 0.6% for drawdown                          December 31, 2024
                                                                                                              using Rupiah and US$ currency

   PT Bank BTPN Tbk.                       Fasilitas modal kerja/     Guarantee   Rp        1.825.000.000     Biaya Pendanaan + 0,375%/                                                                  31 Desember 2024/
                                           Working capital facility                                           Cost of Fund + 0.375%                                                                      December 31, 2024

   PT Bank BTPN Tbk.                       Fasilitas modal kerja/      Clean      Rp        1.000.000.000     Biaya Pendanaan + 1,10%/                                                                   31 Desember 2024/
                                           Working capital facility                                           Cost of Fund + 1.10%                                                                       December 31, 2024

   Citibank, N.A., Cabang Jakarta/         Fasilitas modal kerja/     Guarantee   Rp        1.850.000.000     Sesuai dengan tingkat bunga yang diberitahukan oleh bank/                                  31 Desember 2024/
   Jakarta Branch                          Working capital facility                                           At the rates notified by the bank                                                          December 31, 2024

   Citibank, N.A., Cabang Jakarta/         Fasilitas modal kerja/      Clean      Rp          500.000.000     Sesuai dengan tingkat bunga yang diberitahukan oleh bank/                                  7 April 2024/
   Jakarta Branch                          Working capital facility                                           At the rates notified by the bank                                                          April 7, 2024

   Citibank, N.A., Cabang Jakarta/         Cerukan/                   Guarantee   Rp           50.000.000     Sesuai dengan tingkat bunga yang diberitahukan oleh bank/                                  1 November 2024/
   Jakarta Branch                          Overdraft                                                          At the rates notified by the bank                                                          November 1, 2024
                                                                       Clean      Rp           38.000.000     Biaya Pendanaan + 0,75%/                                                                   31 Januari 2024/
                                                                                                              Cost of Fund + 0.75 %                                                                      January 31, 2024

   Sumitomo Mitsui Trust Bank Ltd.,        Fasilitas modal kerja/     Guarantee   US$               20.000    Biaya Pendanaan + 0,67% untuk pinjaman dalam Dolar Amerika Serikat                         31 Desember 2024/
   Cabang Singapura/Singapore Branch       Working capital facility                                           dengan tenor sampai dengan 1 tahun dan Biaya Pendanaan + 0,84%                             December 31, 2024
                                                                                                              untuk pinjaman dalam Dolar Amerika Serikat dengan tenor lebih dari 1 tahun
                                                                                                              sampai dengan 2 tahun.
                                                                                                              Untuk pinjaman dalam Rupiah untuk seluruh jangka waktu bunga yang
                                                                                                              berlaku adalah suku bunga per tahun sebagaimana disetujui bersama
                                                                                                              oleh Debitur dan Bank/
                                                                                                              COF + 0.67% for USD loan with a tenure up to 1 year and COF + 0.84%
                                                                                                              for USD loan with a tenure over 1 year and up to 2 years
                                                                                                              For Loan IDR For All Interest Period applicable thereto shall be at the rate
                                                                                                              per annum as mutually agreed to by both the Borrower and the Bank

   Bank of America N.A., Cabang Jakarta/   Fasilitas modal kerja/      Clean      US$        52.000 atau/or   Akan ditentukan pada saat penarikan                                                        1 November 2024/
   Jakarta Branch                          Working capital facility               Rp          624.000.000     To be determined at the time of utilization                                                November 1, 2024




                                                                                                           - 47 -
Page 558
PT BUSSAN AUTO FINANCE                                                                                                                                PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                                                                                  NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                                                                                          FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                                                                                       DECEMBER 31, 2023 AND 2022 - Continued

                                                                                         Batas kredit
                                                                                        (dalam ribuan
                                                                                       mata uang asli)/
                                                                                         Credit limit
                     Bank/                            Fasilitas/       Basis/           (in thousand                                                        Bunga/                                             Tanggal jatuh tempo/
                     Bank                             Facility         Base            original amount)                                                    Interest                                                 Due date


   PT Bank ANZ Indonesia                  Fasilitas modal kerja/     Guarantee   Rp          500.000.000     Disetujui oleh Bank dan Perusahaan/                                                              31 Desember 2024/
                                          Working capital facility                                           To be mutually agreed by Bank and Company                                                        December 31, 2024

   PT Bank HSBC Indonesia                 Fasilitas modal kerja/       Clean     US$       10.000 atau/or    Biaya pendanaan + 1.75% untuk penarikan dalam Dolar Amerika Serikat                              30 Juni 2024/
                                          Working capital facility               Rp          150.000.000     dan Rupiah/                                                                                      June 30, 2024
                                                                                                             Cost of Fund + 1.75% for drawdown using US$ and Rupiah currency

                                          Fasilitas modal kerja/     Guarantee   US$       20.000 atau/or    Biaya pendanaan + 1.5% untuk penarikan dalam Dolar Amerika Serikat                               30 Juni 2024/
                                          Working capital facility               Rp           300.000.000    dan biaya pendanaan + 1.75% untuk penarikan dalam Rupiah/                                        June 30, 2024
                                                                                                             Cost of Fund + 1.5% for drawdown using US$ currency
                                                                                                             and Cost of Fund + 1.75% for drawdown using Rupiah currency

                                          Cerukan/                   Guarantee   Rp           20.000.000     Untuk fasilitas cerukan: bunga pinjaman dari bank - 2%/                                          30 Juni 2024/
                                          Overdraft                                                          For overdraft facility: bank's best lending rate - 2%                                            June 30, 2024

   Deutsche Bank AG, Cabang Jakarta/      Fasilitas modal kerja/     Guarantee   US$                55.000   Biaya pendanaan + 0.7%/                                                                          31 Oktober 2024/
   Jakarta Branch                         Working capital facility                                           Cost of Fund + 0.7%                                                                              October 31, 2024

                                          Fasilitas modal kerja/       Clean     US$                20.000   Bunga akan dikenakan pada rate yang dapat ditentukan oleh bank                                   31 Oktober 2024/
                                          Working capital facility                                           dari waktu ke waktu/Interest shall be charged at a rate as may be                                October 31, 2024
                                                                                                             determined by bank from time to time

   PT Bank Central Asia Tbk               Fasilitas modal kerja/     Guarantee   Rp          150.000.000     Berdasarkan negosisasi sebelum tanggal penarikan/                                                21 Januari 2024/
                                          Working capital facility                                           Based on the negotiation prior to the drawdown date                                              January 21, 2024

                                          Cerukan/                   Guarantee   Rp            30.000.000    9.5% p.a                                                                                         21 Januari 2024/
                                          Overdraft                                                                                                                                                           January 21, 2024

                                          Fasilitas modal kerja/       Clean     Rp          150.000.000     Berdasarkan negosisasi sebelum tanggal penarikan/                                                21 Januari 2024/
                                          Working capital facility                                           Based on the negotiation prior to the drawdown date                                              January 21, 2024

   PT Bank Victoria Internasional, Tbk,   Fasilitas modal kerja/       Clean     Rp          250.000.000     Sesuai suku bunga pasar yang berlaku dan yang akan disepakati pada                               24 Mei 2024/
   Cabang Jakarta/Jak arta Branch         Working capital facility                                           saat penarikan fasilitas                                                                         May 24, 2024
                                                                                                             In accordance with the prevailing mark et interest rate, which will be agreed
                                                                                                             upon at the time of withdrawal of the facility.

                                          Fasilitas modal kerja/       Clean     Rp          100.000.000     Sesuai suku bunga pasar yang berlaku dan yang akan disepakati pada                               24 Mei 2024/
                                          Working capital facility                                           saat penarikan fasilitas                                                                         May 24, 2024
                                                                                                             In accordance with the prevailing mark et interest rate, which will be agreed
                                                                                                             upon at the time of withdrawal of the facility.

   Bank Standard Chartered Indonesia,     Fasilitas modal kerja/     Guarantee   Rp          350.000.000     Akan diberitahukan sebelum pencairan                                                             31 Agustus 2024/
   Cabang Jakarta/Jak arta Branch         Working capital facility                                           To be advised prior to drawdown                                                                  August 31, 2024

                                                                       Clean     Rp           93.000.000     Akan diberitahukan sebelum pencairan                                                             31 Agustus 2024/
                                                                                                             To be advised prior to drawdown                                                                  August 31, 2024

   PT Bank Victoria Syariah               Fasilitas modal kerja/       Clean     Rp           40.000.000     Suku bunga pasar dan berdasarkan negosiasi pada saat penarikan/                                  31 Agustus 2024/
                                          Working capital facility                                           At market rate and based on negotiation at drawdown                                              August 31, 2024

   PT Bank CIMB Niaga Tbk                 Fasilitas modal kerja/       Clean     Rp          200.000.000     Fasilitas Pinjaman Tetap : indikasi sebesar 6,75% p.a (bunga tetap);                             8 Agustus 2024/
                                          Working capital facility                                           Bunga yang akan disepakati pada saat penarikan                                                   August 8, 2024
                                                                                                             Fasilitas Pembiayaan Modal Kerja iB: Akan ditentukan sebelum penarikan dan
                                                                                                             dicantumkan dalam Penarikan
                                                                                                             Fixed Loan Facility: indicative of 6.75% p.a (fixed rate); Interest to be agreed at the
                                                                                                             time of drawdown
                                                                                                             Working Capital iB Financing Facility: Will be determined before withdrawal and
                                                                                                             listed in the Withdrawal

   PT Bank Central Asia Syariah           Fasilitas modal kerja/       Clean     Rp          100.000.000     Suku Bunga ditentukan sesuai Expected Financing Return Bank                                      30 November 2024/
                                          Working capital facility                                           The Interest rate is determined according to the Bank's Expected                                 November 30, 2024
                                                                                                             Financing Return

   PT Bank Muamalat Indonesia Tbk         Fasilitas modal kerja/       Clean     Rp          100.000.000     Nisbah Bagi Hasil akan ditentukan pada saat penarikan dengan eqv. rate 6% p.a                    19 Maret 2024/
                                          Working capital facility                                           Profit Sharing Ratio will be determined at the time of drawdown with eqv. rate 6% p.a            March 19, 2024

   PT Bank Maybank Indonesia Tbk          Fasilitas modal kerja/       Clean     Rp          500.000.000     1 tahun: 7.3% p.a. 2 tahun: 7.7% p.a. 3 tahun: 8.1% p.a.                                         21 Februari 2024/
                                          Working capital facility                                           Suku bunga di atas bersifat indicative dan dapat disesuaikan pada saat pencairan.                February 21, 2024
                                                                                                             1 year: 7.3% p.a. 2 years: 7.7% p.a. 3 years: 8.1% p.a.
                                                                                                             The interest rates shown above are indicative and can be adjusted at the time of disbursement.

                                          Fasilitas modal kerja/       Clean     Rp          750.000.000     2 tahun: 7.95% p.a. 3 tahun: 8.1% p.a.                                                           15 Desember 2024/
                                          Working capital facility                                           Suku bunga di atas bersifat indicative dan dapat disesuaikan pada saat pencairan.                December 15, 2024
                                                                                                             2 years: 7.95% p.a. 3 years: 8.1% p.a.
                                                                                                             The interest rates shown above are indicative and can be adjusted at the time of disbursement.

   PT Bank Digital BCA                    Fasilitas modal kerja/       Clean     Rp          100.000.000     7.15% p.a., tetap selama jangka waktu./                                                          21 Desember 2024/
                                          Working capital facility                                           7.15% p.a., fixed during the Term                                                                December 21, 2024




                                                                                                        - 48 -
Page 559
PT BUSSAN AUTO FINANCE                                                                 PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                   NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                           FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                        DECEMBER 31, 2023 AND 2022 - Continued

   Sampai dengan tanggal laporan keuangan,                          As of the issuance date of the financial statements, the
   perusahaan     telah     mendapatkan fasilitas                   Company has obtained extension facilities from the
   perpanjangan dari bank berikut ini:                              following banks:

   · PT Bank Central Asia Tbk (Guarantee) fasilitas                 · PT Bank Central Asia Tbk (Guarantee) working
     modal kerja sebesar Rp 150.000.000 ribu efektif                  capital facility of Rp 150,000,000 thousand effective
     pada tanggal 21 Januari 2024 sampai dengan                       January 21, 2024 until April 21, 2024.
     tanggal 21 April 2024.

   · PT Bank Central Asia Tbk (Guarantee) fasilitas                 · PT Bank Central Asia Tbk (Guarantee) overdraft
     cerukan sebesar Rp 30.000.000 ribu efektif pada                  facility of Rp 30,000,000 thousand effective
     tanggal 21 Januari 2024 sampai dengan tanggal                    January 21, 2024 until April 21, 2024.
     21 April 2024.

   · PT Bank Central Asia Tbk (Clean) fasilitas cerukan             · PT Bank Central Asia Tbk (Clean) working capital
     sebesar Rp 150.000.000 ribu efektif pada tanggal                 facility of Rp 150,000,000 thousand effective
     21 Januari 2024 sampai dengan tanggal 21 April                   January 21, 2024 until April 21, 2024.
     2024.

   · Sampai dengan tanggal pelaporan ini, fasilitas                 · Up to the date of these financial statements, loan
     pinjaman dari Citibank (Clean) sebesar                           facility from Citibank (Clean) amounting to
     Rp 38.000.000 ribu tidak diperpanjang, dan tidak                 Rp 38,000,000 thousand is not extended and there
     terdapat saldo terutang atas fasilitas pinjaman ini              is no outstanding balance of this loan facility as of
     pada tanggal 31 Desember 2023.                                   December 31, 2023.

   · Sampai dengan tanggal pelaporan ini, fasilitas                 · Up to the date of these financial statements, loan
     pinjaman dari PT Bank Maybank Indonesia Tbk                      facility from PT Bank Maybank Indonesia Tbk
     (Clean) sebesar Rp 500.000.000 ribu sudah                        (Clean) amounting to Rp 500,000,000 thousand
     dicairkan seluruhnya. Terdapat saldo pinjaman                    already fully drawn. There is loan outstanding from
     atas         fasilitas      ini       sebesar                    this facility amounting to Rp 500,000,000 thousand
     Rp      500.000.000    ribu     pada   tanggal                   as of December 31, 2023.
     31 Desember 2023.

   Utang bank digunakan oleh Perusahaan untuk modal                 The Company’s bank loans are used for Company’s
   kerja Perusahaan.                                                working capital.

   Fasilitas pinjaman dengan MUFG Bank Ltd., dan                    The loan facilities with MUFG Bank Ltd., and
   PT Bank Mizuho Indonesia mencakup persyaratan                    PT Bank Mizuho Indonesia contain covenants which
   Perusahaan diharuskan untuk menjaga porsi                        the Company is required to maintain stock ownership
   kepemilikan saham oleh Mitsui & Co. Ltd., Jepang,                of Mitsui & Co. Ltd., Japan, and/or JA Mitsui Leasing
   dan/atau JA Mitsui Leasing Ltd., dan/atau Yamaha                 Ltd., and/or Yamaha Motor Co. Ltd., either direct or
   Motor Co. Ltd., baik secara langsung maupun tidak                indirect at least 51% from total paid in capital.
   langsung sekurang-kurangnya 51% dari total modal
   disetor.

   Fasilitas pinjaman dengan PT Bank BTPN Tbk                       The loan facilities with PT Bank BTPN Tbk contain
   mencakup persyaratan Perusahaan diharuskan untuk                 covenants which the Company is required to maintain
   menjaga porsi kepemilikan saham oleh Mitsui & Co.                stock ownership of Mitsui & Co. Ltd., Japan, and/or JA
   Ltd., Jepang, dan/atau JA Mitsui Leasing Ltd.,                   Mitsui Leasing Ltd., and/or Yamaha Motor Co. Ltd.,
   dan/atau Yamaha Motor Co. Ltd., dan/atau                         and/or PT Yamaha Indonesia Motor Manufacturing
   PT Yamaha Indonesia Motor Manufacturing baik                     either direct or indirect at least 51% from total paid in
   secara langsung maupun tidak langsung sekurang-                  capital.
   kurangnya 51% dari total modal disetor.




                                                           - 49 -
Page 560
PT BUSSAN AUTO FINANCE                                                                            PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                              NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                                      FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                                   DECEMBER 31, 2023 AND 2022 - Continued

   Fasilitas pinjaman dengan Deutsche Bank AG,                                The loan facilities with Deutsche Bank AG, Jakarta
   Cabang Jakarta, Bank Standard Chartered                                    Branch, Bank Standard Chartered Indonesia, PT Bank
   Indonesia, PT Bank HSBC Indonesia, PT Bank                                 HSBC Indonesia, PT Bank Central Asia Tbk, PT Bank
   Central Asia Tbk, PT Bank ANZ Indonesia, PT Bank                           ANZ Indonesia, PT Bank Victoria Internasional, Tbk,
   Victoria Internasional, Tbk, Bank of America N.A.,                         Bank of America N.A., Jakarta Branch, PT Bank
   Cabang Jakarta, PT Bank Victoria Syariah, PT Bank                          Victoria Syariah, PT Bank CIMB Niaga Tbk, PT Bank
   CIMB Niaga Tbk, PT Bank BCA Syariah, PT Bank                               BCA Syariah, PT Bank Muamalat Indonesia Tbk, PT
   Muamalat Indonesia Tbk, PT Bank Maybank                                    Bank Maybank Indonesia Tbk contain covenants
   Indonesia Tbk mencakup persyaratan Perusahaan                              which the Company is required to maintain stock
   diharuskan untuk menjaga porsi kepemilikan saham                           ownership of Mitsui & Co. Ltd., Japan, and/or JA Mitsui
   oleh Mitsui & Co. Ltd., Jepang, dan/atau JA Mitsui                         Leasing Ltd., and/or Yamaha Motor Co. Ltd., and/or PT
   Leasing Ltd., dan/atau Yamaha Motor Co. Ltd., dan                          Yamaha Indonesia Motor Manufacturing either direct
   PT Yamaha Indonesia Motor Manufacturing baik                               or indirect at least 67% from total paid in capital.
   secara langsung maupun tidak langsung sekurang-
   kurangnya 67% dari total modal disetor.

   Perusahaan dilarang mengadakan transaksi untuk                             The company shall not enter into a transaction to sell,
   menjual, menyewakan, mengalihkan atau melepas                              lease, transfer or otherwise dispose of any assets
   asetnya yang diperkirakan memiliki dampak yang                             which might be expected to have a material adverse
   merugikan secara material, kecuali dalam rangka                            effect unless in the general course of business of the
   kegiatan   usaha    normal     Perusahaan      dan                         Company and maintain certain financial ratios.
   mempertahankan rasio - rasio keuangan tertentu.

   Perusahaan telah mematuhi semua persyaratan yang                           The Company has complied with all covenants
   disebutkan dalam perjanjian pinjaman.                                      mentioned in loan agreements.

   Rata-rata tertimbang suku bunga efektif pinjaman                           Weighted average effective interest rate of loans in
   untuk 31 Desember 2023 adalah 6,87% (2022:                                 December 31, 2023 is 6.87% (2022: 4.38%).
   4,38%).

   Utang bank memiliki suku bunga tetap maupun                                Bank loans are arranged at both fixed and floating
   variabel, sehingga Perusahaan terpapar risiko suku                         interest rates, thus, exposing the Company to fair
   bunga atas nilai wajar (fair value interest rate risk) dan                 value interest rate risk and cash flow interest rate risk.
   risiko suku bunga atas arus kas (cash flow interest
   rate risk).

   Nilai tercatat pada biaya perolehan diamortisasi dari                      Carrying amount at amortized cost of the bank loans
   utang bank adalah sebagai berikut:                                         are as follows:

                                                   31 Desember/        31 Desember/
                                                   December 31,        December 31,
                                                       2023                2022
                                                      Rp '000             Rp '000

   Utang bank                                       5.687.175.480          6.381.483.149   Bank loan
   Bunga yang masih harus dibayar (Catatan 17)        108.768.858            108.074.143   Accrued interest (Note 17)

   Jumlah                                           5.795.944.338          6.489.557.292   Total




                                                                  - 50 -
Page 561
PT BUSSAN AUTO FINANCE                                                                                 PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                                   NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                                           FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                                        DECEMBER 31, 2023 AND 2022 - Continued

15. UTANG PAJAK                                                           15. TAXES PAYABLE

                                                  31 Desember/            31 Desember/
                                                  December 31,            December 31,
                                                      2023                    2022
                                                     Rp '000                 Rp '000
    Pajak yang dipungut                                                                        Withholding taxes
      Pasal 21                                         4.957.747                 4.818.019       Article 21
      Pasal 23                                         1.227.564                 1.451.391       Article 23
      Pasal 4 ayat 2                                     224.574                   435.574       Article 4(2)
    Pajak penghasilan                                                                          Corporate income taxes
      Pasal 25                                        10.261.948                17.508.608       Article 25
      Pasal 29 (Catatan 26)                           34.991.124                62.296.551       Article 29 (Note 26)
    Pajak pertambahan nilai - bersih                   2.861.237                 1.167.573     Value added tax - net

    Jumlah                                            54.524.194                87.677.716     Total


16. UTANG LAIN-LAIN                                                       16. OTHER ACCOUNTS PAYABLE

                                                  31 Desember/            31 Desember/
                                                  December 31,            December 31,
                                                      2023                    2022
                                                     Rp '000                 Rp '000

    Utang kepada dealer                             215.566.850               162.559.008      Dealer payables
    Utang asuransi                                   33.889.525                45.798.377      Insurance payables
    Uang jaminan pelanggan                           21.221.991                15.713.066      Customers' deposit
    Denda administrasi pajak                                                                   Tax administration penalty
      PPh badan FY2012 (Catatan 34)                     -                      11.378.582         corporate income tax FY2012 (Note 34)
    Lain-lain                                               19.854                  7.193      Others

    Jumlah                                          270.698.220               235.456.226      Total

   Utang kepada dealer merupakan utang kepada                                   Dealer payables represent payable to motor-vehicle
   dealer   kendaraan    bermotor     (pihak   ketiga)                          dealer (third parties) in connection with the financing
   sehubungan dengan kegiatan pembiayaan yang tidak                             activities which do not bear interest and has no
   dikenakan bunga dan tidak memiliki jangka waktu                              repayment terms, which usually pay within two and
   pembayaran yang tertulis, yang biasanya dibayarkan                           three days.
   dalam waktu dua sampai tiga hari.

17. BIAYA YANG MASIH HARUS DIBAYAR                                        17. ACCRUED EXPENSES

                                                  31 Desember/           31 Desember/
                                                  December 31,           December 31,
                                                      2023                   2022
                                                     Rp '000                Rp '000

    Utang bunga dari pinjaman bank (Catatan 14)     108.768.858               108.074.143     Interest from bank loans (Note 14)
    Komisi                                           51.211.183                37.748.446     Commission
    Utang bunga obligasi                             34.452.666                22.830.779     Interest bonds
    Bonus                                            30.284.476                64.082.932     Bonus
    Hiburan                                          18.070.933                38.207.964     Entertainment
    Jasa profesional                                 16.555.741                19.949.250     Professional fee
    Klaim asuransi untuk pelanggan                    9.576.811                 5.047.310     Insurance claim to customers
    Perangkat lunak                                   6.166.579                12.388.889     Software
    Perbaikan dan pemeliharaan                        4.808.336                 5.078.037     Repairs and maintenance
    Komunikasi dan internet                           2.269.184                 5.659.049     Communication and internet
    Jaminan fidusia                                   2.291.236                 1.461.420     Fiducia
    Pengaturan pinjaman dan penjaminan                                                        Loan arrangement and guarantee fees
      (Catatan 33)                                    1.211.524                 2.419.717        (Note 33)
    Dana sosial Perusahaan                            1.201.565                 2.705.631     Company's social fund
    Lain-lain                                        27.541.363                34.588.321     Others

    Jumlah                                          314.410.455               360.241.888     Total




                                                                     - 51 -
Page 562
PT BUSSAN AUTO FINANCE                                                                                PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                                  NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                                          FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                                       DECEMBER 31, 2023 AND 2022 - Continued

18. UTANG OBLIGASI                                                       18. BONDS PAYABLE

                                                    31 Desember/        31 Desember/
                                                    December 31,        December 31,
                                                        2023                2022
                                                      Rp '000                 Rp '000

   Obligasi Berkelanjutan I Tahap II                                                           Bond Sustainable I Phase II
   Seri B                                             725.000.000            725.000.000       Series B

   Obligasi Berkelanjutan I Tahap III                                                          Bond Sustainable I Phase III
   Seri B                                             625.000.000            625.000.000       Series B

   Obligasi Berkelanjutan I Tahap IV                  500.000.000            500.000.000       Bond Sustainable I Phase IV

   Obligasi Berkelanjutan I Tahap V                   775.000.000            775.000.000       Bond Sustainable I Phase V

   Obligasi Berkelanjutan II Tahap I                                                           Bond Sustainable II Phase I
   Seri A                                                 -                   88.500.000       Series A
   Seri B                                              11.500.000             11.500.000       Series B

   Obligasi Berkelanjutan II Tahap II                                                          Bond Sustainable II Phase II
   Seri A                                                 -                  655.000.000       Series A
   Seri B                                             545.000.000            545.000.000       Series B

   Obligasi Berkelanjutan II Tahap III                                                         Bond Sustainable II Phase III
   Seri A                                             401.000.000                -             Series A
   Seri B                                             841.000.000                -             Series B

   Obligasi Berkelanjutan II Tahap IV                 458.000.000                -             Bond Sustainable II Phase IV

   Obligasi Berkelanjutan I Tahap I                         -                100.000.000       Bond Sustainable I Phase I

   Sukuk Mudharabah Berkelanjutan I                                                            Sukuk Mudharabah Sustainable I
     Tahap I                                                -                 15.000.000       Phase I
     Tahap II                                                                                  Phase II
       Seri B                                               -                112.000.000         Series B

   Jumlah                                           4.881.500.000        4.152.000.000         Total

   Biaya perolehan pinjaman yang
     belum diamortisasi                                 (7.812.557)           (10.725.771)     Unamortized transaction costs

   Bersih                                           4.873.687.443        4.141.274.229         Net

   Dikurangi bagian yang jatuh tempo
     dalam satu tahun                               (2.251.000.000)          (970.500.000)     Less current maturity

   Bagian jangka panjang                            2.622.687.443        3.170.774.229         Long-term portion



   Obligasi Berkelanjutan I Bussan Auto Finance Tahap                           Bond Sustainable I Bussan Auto Finance Phase I year
   I tahun 2020                                                                 2020

   Pada bulan Juli 2020, Perusahaan melakukan                                   In July 2020, the Company held a bond offering called
   penawaran umum obligasi bernama "Obligasi                                    "Bond Sustainable I Bussan Auto Finance Phase I
   Berkelanjutan I Bussan Auto Finance Tahap I tahun                            year 2020". The transaction costs associated with the
   2020". Biaya transaksi yang terkait dengan                                   issuance of these bonds are Rp 2,523,833 thousand,
   penerbitan obligasi ini adalah sebesar Rp 2.523.833                          this transaction cost included the transaction cost with
   ribu, biaya tersebut termasuk biaya penerbitan                               the issuance of the Bond Sustainable I Busan Auto
   Obligasi Berkelanjutan I Busan Auto Finance Tahap I                          Finance Phase I year 2020. All funds obtained will be
   tahun 2020. Seluruh dana yang diperoleh akan                                 used for the Company's working capital. These bonds
   digunakan untuk modal kerja Perusahaan. Obligasi                             are issued scripless and are offered at their principal
   ini diterbitkan tanpa warkat dan ditawarkan sebesar                          value as below:
   nilai pokoknya sebagai berikut:

                                         Pokok/Principal        Jangka waktu/Term            Bunga/Interest
                                          100.000.000.000         3 tahun/years                 8,25%




                                                                    - 52 -
Page 563
PT BUSSAN AUTO FINANCE                                                                   PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                     NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                             FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                          DECEMBER 31, 2023 AND 2022 - Continued

   Pembayaran obligasi dilakukan secara penuh (bullet                 Bond payments are made in full (bullet payment) when
   payment) saat jatuh tempo. Bunga obligasi terutang                 due. Bond interest is payable every three months from
   setiap tiga bulan mulai dari 4 November 2020 sampai                November 4, 2020 to August 4, 2023. Purchases of
   dengan 4 Agustus 2023. Pembelian obligasi dapat                    bonds can be made after one year from the date of
   dilakukan setelah satu tahun dari tanggal penjatahan               allotment based on market prices.
   berdasarkan harga pasar.

   PT Bank Mandiri (Persero) Tbk bertindak sebagai wali               PT Bank Mandiri (Persero) Tbk act as trustee. At the
   amanat. Pada saat diterbitkan, Obligasi tersebut                   time of issuance, the Bond received the AAA(idn) Fitch
   mendapatkan AAA(idn) Fitch rating dan tercatat pada                rating and was listed on the Indonesia Stock Exchange
   Bursa Efek Indonesia pada 5 Agustus 2020. Obligasi                 on August 5, 2020. The bonds are guaranteed by the
   ini dijamin dengan piutang performing Perusahaan                   Company's performing receivables amounting to 50%
   sebesar 50% (lima puluh persen) dari nilai pokok                   (fifty percent) of the principal value of the bonds.
   obligasi.

   Pembatasan-pembatasan penting yang diatur dalam                    Important restrictions stipulated in the agreement are:
   perjanjian adalah:

   1.   Tanpa persetujuan tertulis dari wali amanat,                  1.   Without written approval from trustee, the
        Perusahaan dilarang melakukan pembayaran                           Company is not permitted to make dividend
        dividen pada tahun buku dimana Perusahaan                          payment in the fiscal year where the Company is
        lalai dalam melakukan pembayaran bunga atau                        absent to make payment on the interest and/or
        pokok yang terutang.                                               principal due.

   2.   Tanpa persetujuan tertulis dari wali amanat,                  2.   Without the written consent of the trustee, the
        Perusahaan dilarang memberikan pinjaman atau                       Company is prohibited from providing loans or
        kredit kepada afiliasi, kecuali atas pinjaman yang                 loans to affiliates, except for loans that have
        telah ada sebelum perjanjian dengan wali                           existed before the agreement with trustee and
        amanat dan pinjaman dalam rangka kegiatan                          loans relates with the Company’s normal
        operasional Perusahaan.                                            operation.

   3.   Tanpa persetujuan tertulis dari wali amanat,                  3.   Without written approval from the trustee, the
        Perusahaan dilarang menjual, mentransfer atau                      Company is prohibited from selling, transferring all
        mengalihkan seluruh atau sebagian dari harta                       or part of its assets, either one by one or any
        kekayaannya, baik satu persatu ataupun jumlah                      transfer amounting to 30% (thirty percent) or more
        pengalihan sebesar 30% (tiga puluh persen) atau                    of the Company's total assets, except for the
        lebih dari total aset Perusahaan, kecuali dalam                    Company's operational activities.
        rangka kegiatan operasional Perusahaan.

   4.   Tanpa persetujuan tertulis dari wali amanat,                  4.   Without the written consent of the trustee, the
        Perusahaan dilarang melakukan penggabungan,                        Company is prohibited to merge, consolidated
        konsolidasi, dan peleburan dengan perusahaan                       and amalgamate with other companies except it is
        lain kecuali sepanjang yang dilakukan pada                         carried out in the same business and does not
        bidang usaha yang sama dan tidak mempunyai                         have a negative impact on the Company's
        dampak negatif terhadap jalannya usaha                             business and does not affect the Company's
        Perusahaan      serta   tidak  mempengaruhi                        ability to make principal payments and/or bond
        kemampuan Perusahaan dalam melakukan                               interest.
        pembayaran pokok obligasi dan/atau bunga
        obligasi.

   Perusahaan telah mematuhi semua persyaratan yang                   The Company has complied with all covenants
   disebutkan dalam perjanjian.                                       mentioned in the agreements.

   Pada tanggal 4 Agustus 2023, Perusahaan telah                      On August 4, 2023, the Company has fully paid the
   melakukan pelunasan atas seluruh pokok pinjaman                    principal of Bond Sustainable I Phase I year 2020
   utang Obligasi Berkelanjutan I Tahap I tahun 2020                  amounting to Rp 100,000,000 thousand.
   sebesar Rp 100.000.000 ribu.




                                                             - 53 -
Page 564
PT BUSSAN AUTO FINANCE                                                                   PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                     NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                             FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                          DECEMBER 31, 2023 AND 2022 - Continued

   Sukuk Mudharabah Berkelanjutan I Bussan Auto                       Sukuk Mudharabah Sustainable I Bussan Auto
   Finance tahap I tahun 2020                                         Finance Phase I year 2020

   Pada bulan Juli 2020, Perusahaan melakukan                         In July 2020, the Company held a sukuk offering called
   penawaran umum         sukuk bernama "Sukuk                        "Sukuk Mudharabah Sustainable I Bussan Auto
   Mudharabah Berkelanjutan I Bussan Auto Finance                     Finance Phase I year 2020". The transaction costs
   Tahap I tahun 2020". Biaya transaksi yang terkait                  associated with the issuance of these sukuk
   dengan penerbitan sukuk mudharabah ini adalah                      mudharabah are Rp 2,523,833 thousand, this
   sebesar Rp 2.523.833 ribu, biaya tersebut termasuk                 transaction cost included the transaction cost with the
   biaya penerbitan Obligasi Berkelanjutan I Bussan                   issuance of the Bond Sustainable I Busan Auto
   Auto Finance Tahap I tahun 2020. Seluruh dana yang                 Finance Phase I year 2020. All funds obtained will be
   diperoleh akan digunakan untuk modal kerja                         used for the Company's working capital. These sukuk
   Perusahaan. Sukuk mudharabah ini diterbitkan tanpa                 mudharabah are issued scripless and are offered at
   warkat dan ditawarkan sebesar nilai pokoknya                       their principal value as below:
   sebagai berikut:

                                                                                 Bagi hasil/Profit
                                   Pokok/Principal       Jangka waktu/Term          sharing
                                     15.000.000.000        3 tahun/years              8,25%

   Pembayaran dana sukuk mudharabah dilakukan                         Fund sukuk Mudharabah payment are made in full
   secara penuh (bullet payment) saat jatuh tempo.                    (bullet payment) when due. Profit sharing income is
   Pendapatan bagi hasil dibayarkan setiap tiga bulan                 payable every three months from November 4, 2020 to
   mulai dari 4 November 2020 sampai dengan                           August 4, 2023. Purchases of sukuk mudharabah can
   4 Agustus 2023. Pembelian sukuk mudharabah dapat                   be made after one year from the date of allotment
   dilakukan setelah satu tahun dari tanggal penjatahan               based on market prices.
   berdasarkan harga pasar.

   PT Bank Mandiri (Persero) Tbk bertindak sebagai wali               PT Bank Mandiri (Persero) Tbk act as trustee. At the
   amanat. Pada saat diterbitkan, sukuk tersebut                      time of issuance, the sukuk received the AAA(idn)
   mendapatkan AAA(idn) Fitch rating dan tercatat pada                Fitch rating and was listed on the Indonesia Stock
   Bursa Efek Indonesia pada 5 Agustus 2020. Sukuk ini                Exchange on August 5, 2020. The sukuk are
   dijamin dengan piutang performing Perusahaan                       guaranteed by the Company's performing receivables
   sebesar 50% (lima puluh persen) dari nilai pokok                   amounting to 50% (fifty percent) of the principal value
   sukuk.                                                             of the sukuk.

   Pembatasan-pembatasan penting yang diatur dalam                    Important restrictions stipulated in the agreement are:
   perjanjian adalah:

   1.   Tanpa persetujuan tertulis dari wali amanat,                  1.   Without written approval from the trustee, the
        Perusahaan dilarang melakukan pembagian                            Company is prohibited from dividend distribution
        dividen pada tahun buku dimana Perusahaan                          in the financial year where the Company negligent
        lalai dalam melakukan pembayaran bunga atau                        in making payments of interest or principal owed.
        pokok yang terutang.

   2.   Tanpa persetujuan tertulis dari wali amanat,                  2.   Without the written consent of the trustee, the
        Perusahaan dilarang memberikan pinjaman atau                       Company is prohibited from providing loans or
        kredit kepada afiliasi, kecuali atas pinjaman yang                 loans to affiliates, except for loans that have
        telah ada sebelum perjanjian dengan wali                           existed before the agreement with trustee and
        amanat dan pinjaman dalam rangka kegiatan                          loans relates with the Company’s normal
        operasional Perusahaan.                                            operations.

   3.   Tanpa persetujuan tertulis dari wali amanat,                  3.   Without written approval from the trustee, the
        Perusahaan dilarang menjual, mentransfer atau                      Company is prohibited from selling, transferring all
        mengalihkan seluruh atau sebagian dari harta                       or part of its assets, either one by one or any
        kekayaannya, baik satu persatu ataupun jumlah                      transfer amounting to 30% (thirty percent) or more
        pengalihan sebesar 30% (tiga puluh persen) atau                    of the Company's total assets, except for the
        lebih dari total aset Perusahaan, kecuali dalam                    Company's operational activities.
        rangka kegiatan operasional Perusahaan.




                                                             - 54 -
Page 565
PT BUSSAN AUTO FINANCE                                                                PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                  NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                          FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                       DECEMBER 31, 2023 AND 2022 - Continued

   4.   Tanpa persetujuan tertulis dari wali amanat,               4.   Without the written consent of the trustee, the
        Perusahaan dilarang melakukan penggabungan,                     Company is prohibited to merge, consolidated
        konsolidasi, dan peleburan dengan perusahaan                    and amalgamate with other companies except it is
        lain kecuali sepanjang yang dilakukan pada                      carried out in the same business and does not
        bidang usaha yang sama dan tidak mempunyai                      have a negative impact on the Company's
        dampak negatif terhadap jalannya usaha                          business and does not affect the Company's
        Perusahaan      serta   tidak  mempengaruhi                     ability to make principal payments and/or bond
        kemampuan Perusahaan dalam melakukan                            interest.
        pembayaran pokok obligasi dan/atau bunga
        obligasi.

   Perusahaan telah mematuhi semua persyaratan yang                The Company has complied with all covenants
   disebutkan dalam perjanjian.                                    mentioned in the agreements.

   Pada tanggal 4 Agustus 2023, Perusahaan telah                   On August 4, 2023, the Company has fully paid the
   melakukan pelunasan atas seluruh pokok pinjaman                 principal of Sukuk Mudharabah Sustainable I Phase I
   utang Sukuk Mudharabah Berkelanjutan I tahap I                  year 2020 amounting to Rp 15,000,000 thousand.
   tahun 2020 sebesar Rp 15.000.000 ribu.

   Sukuk Mudharabah Berkelanjutan I Bussan Auto                    Sukuk Sustainable I Bussan Auto Finance Phase II
   Finance Tahap II tahun 2020                                     year 2020

   Pada bulan Oktober 2020, Perusahaan melakukan                   In October 2020, the Company held a sukuk offering
   penawaran umum         sukuk     bernama    "Sukuk              called "Sukuk Mudharabah Sustainable I Bussan Auto
   Mudharabah Berkelanjutan I Bussan Auto Finance                  Finance Phase II year 2020". The transaction costs
   Tahap II tahun 2020". Biaya transaksi yang terkait              associated with the issuance of these sukuk
   dengan penerbitan sukuk mudharabah ini adalah                   mudharabah are Rp 1,361,350 thousand. All funds
   sebesar Rp 1.361.350 ribu. Seluruh dana yang                    obtained will be used for the Company's working
   diperoleh akan digunakan untuk modal kerja                      capital. These sukuk mudharabah are issued scripless
   Perusahaan. Sukuk mudharabah ini diterbitkan tanpa              and are offered at their principal value, in 2 series,
   warkat dan ditawarkan sebesar nilai pokoknya, dalam             namely:
   2 seri, yaitu:

                                                                                     Bagi hasil/
                     Seri/Series      Pokok/Principal     Jangka waktu/Term         Profit sharing
                          A             373.000.000.000     370 hari/days              5,75%
                          B             112.000.000.000      3 tahun/years             7,25%

   Pembayaran dana sukuk mudharabah dilakukan                      Fund sukuk mudharabah payments are made in full
   secara penuh (bullet payment) saat jatuh tempo.                 (bullet payment) when due. Profit sharing income is
   Pendapatan bagi hasil terutang setiap tiga bulan                payable every three months from January 22, 2021 to
   mulai dari 22 Januari 2021 sampai dengan                        October 29, 2021 for series A sukuk mudharabah and
   29 Oktober 2021 untuk sukuk mudhrabah seri A dan                October 22, 2023 for series B sukuk mudharabah.
   tanggal 22 Oktober 2023 untuk sukuk mudharabah                  Purchases of sukuk mudharabah can be made after
   seri B. Pembelian sukuk mudharabah dapat                        one year from the date of allotment based on market
   dilakukan setelah satu tahun dari tanggal penjatahan            prices.
   berdasarkan harga pasar.

   PT Bank Mandiri (Persero) Tbk bertindak sebagai wali            PT Bank Mandiri (Persero) Tbk act as trustee. At the
   amanat. Pada saat diterbitkan, sukuk tersebut                   time of issuance, the sukuk received the AAA(idn)
   mendapatkan AAA(idn) Fitch rating dan tercatat pada             Fitch rating and was listed on the Indonesia Stock
   Bursa Efek Indonesia pada 23 Oktober 2020. Sukuk                Exchange on October 23, 2020. The sukuk are
   ini dijamin dengan piutang performing Perusahaan                guaranteed by the Company's performing receivables
   sebesar 50% (lima puluh persen) dari nilai pokok                amounting to 50% (fifty percent) of the principal value
   sukuk.                                                          of the sukuk.




                                                          - 55 -
Page 566
PT BUSSAN AUTO FINANCE                                                                   PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                     NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                             FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                          DECEMBER 31, 2023 AND 2022 - Continued

   Pembatasan-pembatasan penting yang diatur dalam                    Important restrictions stipulated in the agreement are:
   perjanjian adalah:

   1.   Tanpa persetujuan tertulis dari wali amanat,                  1.   Without written approval from trustee, the
        Perusahaan dilarang melakukan pembayaran                           Company is not permitted to make dividend
        dividen pada tahun buku dimana Perusahaan                          payment in the fiscal year where the Company is
        lalai dalam melakukan pembayaran bunga atau                        absent to make payment on the interest and/or
        pokok yang terutang.                                               principal due.

   2.   Tanpa persetujuan tertulis dari wali amanat,                  2.   Without the written consent of the trustee, the
        Perusahaan dilarang memberikan pinjaman atau                       Company is prohibited from providing loans or
        kredit kepada afiliasi, kecuali atas pinjaman yang                 loans to affiliates, except for loans that have
        telah ada sebelum perjanjian dengan wali                           existed before the agreement with trustee and
        amanat dan pinjaman dalam rangka kegiatan                          loans relates with the Company’s normal
        operasional Perusahaan.                                            operations.

   3.   Tanpa persetujuan tertulis dari wali amanat,                  3.   Without written approval from the trustee, the
        Perusahaan dilarang menjual, mentransfer atau                      Company is prohibited from selling, transferring all
        mengalihkan seluruh atau sebagian dari harta                       or part of its assets, either one by one or any
        kekayaannya, baik satu persatu ataupun jumlah                      transfer amounting to 30% (thirty percent) or more
        pengalihan sebesar 30% (tiga puluh persen) atau                    of the Company's total assets, except for the
        lebih dari total aset Perusahaan, kecuali dalam                    Company's operational activities.
        rangka kegiatan operasional Perusahaan.

   4.   Tanpa persetujuan tertulis dari wali amanat,                  4.   Without the written consent of the trustee, the
        Perusahaan dilarang melakukan penggabungan,                        Company is prohibited to merge, consolidated
        konsolidasi, dan peleburan dengan perusahaan                       and amalgamate with other companies except it is
        lain kecuali sepanjang yang dilakukan pada                         carried out in the same business and does not
        bidang usaha yang sama dan tidak mempunyai                         have a negative impact on the Company's
        dampak negatif terhadap jalannya usaha                             business and does not affect the Company's
        Perusahaan      serta   tidak  mempengaruhi                        ability to make principal payments and/or bond
        kemampuan Perusahaan dalam melakukan                               interest.
        pembayaran pokok obligasi dan/atau bunga
        obligasi.

   Perusahaan telah mematuhi semua persyaratan yang                   The Company has complied with all covenants
   disebutkan dalam perjanjian.                                       mentioned in agreements.

   Pada tanggal 29 Oktober 2021, Perusahaan telah                     On October 29, 2021, the Company has fully paid the
   melakukan pelunasan atas seluruh pokok pinjaman                    principal of Sukuk Mudharabah Sustainable I Phase II
   utang Sukuk Mudharabah Berkelanjutan I Tahap II                    Series A year 2020 amounting to Rp 373,000,000
   Seri A tahun 2020 sebesar Rp 373.000.000 ribu.                     thousand.

   Pada tanggal 23 Oktober 2023, Perusahaan telah                     On October 23, 2023, the Company has fully paid the
   melakukan pelunasan atas seluruh pokok pinjaman                    principal of Sukuk Mudharabah Sustainable I Phase II
   utang Sukuk Mudharabah Berkelanjutan I Tahap II                    Series B year 2020 amounting to Rp 112,000,000
   Seri B tahun 2020 sebesar Rp 112.000.000 ribu.                     thousand.

   Obligasi Berkelanjutan I Bussan Auto Finance Tahap                 Bond Sustainable I Bussan Auto Finance Phase II year
   II tahun 2021                                                      2021

   Pada bulan April 2021, Perusahaan melakukan                        In April 2021, the Company held a bond offering called
   penawaran umum obligasi bernama "Obligasi                          "Bond Sustainable I Bussan Auto Finance Phase II
   Berkelanjutan I Bussan Auto Finance Tahap II tahun                 year 2021". The transaction costs associated with the
   2021". Biaya transaksi yang terkait dengan                         issuance of these bonds are Rp 3,516,733 thousand.
   penerbitan obligasi ini adalah sebesar Rp 3.516.733                All funds obtained will be used for the Company's
   ribu. Seluruh dana yang diperoleh akan digunakan                   working capital. These sukuk mudharabah are issued
   untuk modal kerja Perusahaan. Obligasi ini                         scripless and are offered at their principal value, in 2
   diterbitkan tanpa warkat dan ditawarkan sebesar nilai              series, namely:
   nilai pokoknya, dalam 2 seri, yaitu:

                       Seri/Series      Pokok/Principal      Jangka waktu/Term        Bunga/Interest
                            A            500.000.000.000        370 hari/days            4,90%
                            B            725.000.000.000       3 tahun/years             6,90%



                                                             - 56 -
Page 567
PT BUSSAN AUTO FINANCE                                                                    PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                      NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                              FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                           DECEMBER 31, 2023 AND 2022 - Continued

   Pembayaran obligasi dilakukan secara penuh (bullet                 Bond payments are made in full (bullet payment) when
   payment) saat jatuh tempo. Bunga obligasi terutang                 due. Bond interest is payable every three months from
   setiap tiga bulan mulai dari 27 Juli 2021 sampai                   July 27, 2021 to May 7, 2022 for series A bonds and
   dengan 7 Mei 2022 untuk obligasi seri A dan                        July 27, 2021 to April 27, 2024 for series B bonds.
   27 Juli 2021 sampai 27 April 2024 untuk obligasi seri              Purchases of bonds can be made after one year from
   B. Pembelian obligasi dapat dilakukan setelah satu                 the date of allotment based on market prices.
   tahun dari tanggal penjatahan berdasarkan harga
   pasar.

   PT Bank Mandiri (Persero) Tbk bertindak sebagai wali               PT Bank Mandiri (Persero) Tbk act as trustee. At the
   amanat. Pada saat diterbitkan, Obligasi tersebut                   time of issuance, the Bond received the AAA(idn) Fitch
   mendapatkan AAA(idn) Fitch rating rating dan tercatat              rating and was listed on the Indonesia Stock Exchange
   pada Bursa Efek Indonesia pada 28 April 2021.                      on April 28, 2021. The bonds are guaranteed by the
   Obligasi ini dijamin dengan piutang performing                     Company's performing receivables amounting to 50%
   Perusahaan sebesar 50% (lima puluh persen) dari                    (fifty percent) of the principal value of the bonds.
   nilai pokok obligasi.

   Pembatasan-pembatasan penting yang diatur dalam                    Important restrictions stipulated in the agreement are:
   perjanjian adalah:

   1.   Tanpa persetujuan tertulis dari wali amanat,                  1.   Without written approval from the trustee, the
        Perusahaan dilarang melakukan pembagian                            Company is prohibited from dividend distribution
        dividen pada tahun buku dimana Perusahaan                          in the financial year where the Company negligent
        lalai dalam melakukan pembayaran bunga atau                        in making payments of interest or principal owed.
        pokok yang terutang.

   2.   Tanpa persetujuan tertulis dari wali amanat,                  2.   Without the written consent of the trustee, the
        Perusahaan dilarang memberikan pinjaman atau                       Company is prohibited from providing loans or
        kredit kepada afiliasi, kecuali atas pinjaman yang                 loans to affiliates, except for loans that have
        telah ada sebelum perjanjian dengan wali                           existed before the agreement with trustee and
        amanat dan pinjaman dalam rangka kegiatan                          loans relates with the Company’s normal
        operasional Perusahaan.                                            operations.

   3.   Tanpa persetujuan tertulis dari wali amanat,                  3.   Without written approval from the trustee, the
        Perusahaan dilarang menjual, mentransfer atau                      Company is prohibited from selling, transferring all
        mengalihkan seluruh atau sebagian dari harta                       or part of its assets, either one by one or any
        kekayaannya, baik satu persatu ataupun jumlah                      transfer amounting to 30% (thirty percent) or more
        pengalihan sebesar 30% (tiga puluh persen) atau                    of the Company's total assets, except for the
        lebih dari total aset Perusahaan, kecuali dalam                    Company's operational activities.
        rangka kegiatan operasional Perusahaan.

   4.   Tanpa persetujuan tertulis dari wali amanat,                  4.   Without the written consent of the trustee, the
        Perusahaan dilarang melakukan penggabungan,                        Company is prohibited to merge, consolidated and
        konsolidasi, dan peleburan dengan perusahaan                       amalgamate with other companies except it is
        lain kecuali sepanjang yang dilakukan pada                         carried out in the same business and does not
        bidang usaha yang sama dan tidak mempunyai                         have a negative impact on the Company's
        dampak negatif terhadap jalannya usaha                             business and does not affect the Company's
        Perusahaan      serta   tidak  mempengaruhi                        ability to make principal payments and/or bond
        kemampuan Perusahaan dalam melakukan                               interest.
        pembayaran pokok obligasi dan/atau bunga
        obligasi.

   Perusahaan telah mematuhi semua persyaratan yang                   The Company has complied with all covenants
   disebutkan dalam perjanjian.                                       mentioned in agreements.

   Pada tanggal 9 Mei 2022, Perusahaan telah                          On May 9, 2022, the Company has fully paid the
   melakukan pelunasan atas seluruh pokok pinjaman                    principal of Bond Sustainable I Bussan Auto Finance
   utang Obligasi Berkelanjutan I Bussan Auto Finance                 Phase II Series A year 2021 amounting to
   Tahap    II   Seri   A    tahun    2021    sebesar                 Rp 500,000,000 thousand.
   Rp 500.000.000 ribu.




                                                             - 57 -
Page 568
PT BUSSAN AUTO FINANCE                                                                    PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                      NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                              FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                           DECEMBER 31, 2023 AND 2022 - Continued

   Obligasi Berkelanjutan I Bussan Auto Finance Tahap                 Bond Sustainable I Bussan Auto Finance Phase III
   III tahun 2021                                                     year 2021
   Pada bulan September 2021, Perusahaan melakukan                    In September 2021, the Company held a bond offering
   penawaran umum obligasi bernama "Obligasi                          called "Bond Sustainable I Bussan Auto Finance
   Berkelanjutan I Bussan Auto Finance Tahap III tahun                Phase III year 2021". The transaction costs associated
   2021". Biaya transaksi yang terkait dengan                         with the issuance of these bonds are Rp 1,815,537
   penerbitan obligasi ini adalah sebesar Rp 1.815.537                thousand. All funds obtained will be used for the
   ribu. Seluruh dana yang diperoleh akan digunakan                   Company's working capital. These sukuk mudharabah
   untuk modal kerja Perusahaan. Obligasi ini                         are issued scripless and are offered at their principal
   diterbitkan tanpa warkat dan ditawarkan sebesar nilai              value, in 2 series, namely:
   nilai pokoknya, dalam 2 seri, yaitu:

                       Seri/Series      Pokok/Principal      Jangka waktu/Term         Bunga/Interest
                            A            150.000.000.000        367 hari/days             3,75%
                            B            625.000.000.000       3 tahun/years              5,75%

   Pembayaran obligasi dilakukan secara penuh (bullet                 Bond payments are made in full (bullet payment) when
   payment) saat jatuh tempo. Bunga obligasi terutang                 due. Bond interest is payable every three months from
   setiap tiga bulan mulai dari 28 Desember 2021                      December 28, 2021 to October 5, 2022 for series A
   sampai dengan 5 Oktober 2022 untuk obligasi seri A                 bonds and December 28, 2021 to September 28, 2024
   dan 28 Desember 2021 sampai 28 September 2024                      for series B bonds. Purchases of bonds can be made
   untuk obligasi seri B. Pembelian obligasi dapat                    after one year from the date of allotment based on
   dilakukan setelah satu tahun dari tanggal penjatahan               market prices.
   berdasarkan harga pasar.

   PT Bank Mandiri (Persero) Tbk bertindak sebagai wali               PT Bank Mandiri (Persero) Tbk act as trustee. At the
   amanat. Pada saat diterbitkan, Obligasi tersebut                   time of issuance, the Bond received the AAA(idn) Fitch
   mendapatkan AAA(idn) Fitch rating dan tercatat pada                rating and was listed on the Indonesia Stock Exchange
   Bursa Efek Indonesia pada 29 September 2021.                       on September 29, 2021. The bonds are guaranteed
   Obligasi ini dijamin dengan piutang performing                     by the Company's performing receivables amounting
   Perusahaan sebesar 50% (lima puluh persen) dari                    to 50% (fifty percent) of the principal value of the
   nilai pokok obligasi.                                              bonds.

   Pembatasan-pembatasan penting yang diatur dalam                    Important restrictions stipulated in the agreement are:
   perjanjian adalah:

   1.   Tanpa persetujuan tertulis dari wali amanat,                  1.   Without written approval from the trustee, the
        Perusahaan dilarang melakukan pembagian                            Company is prohibited from dividend distribution
        dividen pada tahun buku dimana Perusahaan                          in the financial year where the Company negligent
        lalai dalam melakukan pembayaran bunga atau                        in making payments of interest or principal owed.
        pokok yang terutang.

   2.   Tanpa persetujuan tertulis dari wali amanat,                  2.   Without the written consent of the trustee, the
        Perusahaan dilarang memberikan pinjaman atau                       Company is prohibited from providing loans or
        kredit kepada afiliasi, kecuali atas pinjaman yang                 loans to affiliates, except for loans that have
        telah ada sebelum perjanjian dengan wali                           existed before the agreement with trustee and
        amanat dan pinjaman dalam rangka kegiatan                          loans relates with the Company’s normal
        operasional Perusahaan.                                            operations.

   3.   Tanpa persetujuan tertulis dari wali amanat,                  3.   Without written approval from the trustee, the
        Perusahaan dilarang menjual, mentransfer atau                      Company is prohibited from selling, transferring all
        mengalihkan seluruh atau sebagian dari harta                       or part of its assets, either one by one or any
        kekayaannya, baik satu persatu ataupun jumlah                      transfer amounting to 30% (thirty percent) or more
        pengalihan sebesar 30% (tiga puluh persen) atau                    of the Company's total assets, except for the
        lebih dari total aset Perusahaan, kecuali dalam                    Company's operational activities.
        rangka kegiatan operasional Perusahaan.




                                                             - 58 -
Page 569
PT BUSSAN AUTO FINANCE                                                                        PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                          NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                                  FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                               DECEMBER 31, 2023 AND 2022 - Continued

   4.   Tanpa persetujuan tertulis dari wali amanat,                    4.      Without the written consent of the trustee, the
        Perusahaan dilarang melakukan penggabungan,                             Company is prohibited to merge, consolidated and
        konsolidasi, dan peleburan dengan perusahaan                            amalgamate with other companies except it is
        lain kecuali sepanjang yang dilakukan pada                              carried out in the same business and does not
        bidang usaha yang sama dan tidak mempunyai                              have a negative impact on the Company's
        dampak negatif terhadap jalannya usaha                                  business and does not affect the Company's
        Perusahaan      serta   tidak  mempengaruhi                             ability to make principal payments and/or bond
        kemampuan Perusahaan dalam melakukan                                    interest.
        pembayaran pokok obligasi dan/atau bunga
        obligasi.

   Perusahaan telah mematuhi semua persyaratan yang                     The Company has complied with all covenants
   disebutkan dalam perjanjian.                                         mentioned in agreements.

   Pada tanggal 5 Oktober 2022, Perusahaan telah                        On October 5, 2022, the Company has fully paid the
   melakukan pelunasan atas seluruh pokok pinjaman                      principal of Bond Sustainable I Bussan Auto Finance
   utang Obligasi Berkelanjutan I Bussan Auto Finance                   Phase III Series A year 2021 amounting to
   Tahap III Seri A tahun 2021 sebesar Rp 150.000.000                   Rp 150,000,000 thousand.
   ribu.

   Obligasi Berkelanjutan I Bussan Auto Finance Tahap                   Bond Sustainable I Bussan Auto Finance Phase IV
   IV tahun 2021                                                        year 2021

   Pada bulan Desember 2021, Perusahaan melakukan                       In December 2021, the Company held a bond offering
   penawaran umum obligasi bernama "Obligasi                            called "Bond Sustainable I Bussan Auto Finance
   Berkelanjutan I Bussan Auto Finance Tahap IV tahun                   Phase IV year 2021". The transaction costs associated
   2021". Biaya transaksi yang terkait dengan penerbitan                with the issuance of these bonds are Rp 1,748,400
   obligasi ini adalah sebesar Rp 1.748.400 ribu.                       thousand. All funds obtained will be used for the
   Seluruh dana yang diperoleh akan digunakan untuk                     Company's working capital. These sukuk mudharabah
   modal kerja Perusahaan. Obligasi ini diterbitkan tanpa               are issued scripless and are offered at their principal
   warkat dan ditawarkan sebesar nilai nilai pokoknya,                  value, as below:
   sebagai berikut:

                                   Pokok/Principal          Jangka waktu/Term          Bunga/Interest
                                     500.000.000.000           3 tahun/years              5,75%

   Pembayaran obligasi dilakukan secara penuh (bullet                   Bond payments are made in full (bullet payment) when
   payment) saat jatuh tempo. Bunga obligasi terutang                   due. Bond interest is payable every three months from
   setiap tiga bulan mulai dari 15 Maret 2022 sampai                    March 15, 2022 to December 15, 2024. Purchases of
   dengan 15 Desember 2024. Pembelian obligasi dapat                    bonds can be made after one year from the date of
   dilakukan setelah satu tahun dari tanggal penjatahan                 allotment based on market prices.
   berdasarkan harga pasar.

   PT Bank Mandiri (Persero) Tbk bertindak sebagai wali                 PT Bank Mandiri (Persero) Tbk act as trustee. At the
   amanat. Pada saat diterbitkan, Obligasi tersebut                     time of issuance, the Bond received the AAA(idn) Fitch
   mendapatkan AAA(idn) Fitch rating dan tercatat pada                  rating and was listed on the Indonesia Stock Exchange
   Bursa Efek Indonesia pada 16 Desember 2021.                          on December 16, 2021. The bonds are guaranteed by
   Obligasi ini dijamin dengan piutang performing                       the Company's performing receivables amounting to
   Perusahaan sebesar 50% (lima puluh persen) dari                      50% (fifty percent) of the principal value of the bonds.
   nilai pokok obligasi.

   Pembatasan-pembatasan penting yang diatur dalam                      Important restrictions stipulated in the agreement are:
   perjanjian adalah:

   1.   Tanpa persetujuan tertulis dari wali amanat,                    1.      Without written approval from the trustee, the
        Perusahaan dilarang melakukan pembagian                                 Company is prohibited from dividend distribution
        dividen pada tahun buku dimana Perusahaan                               in the financial year where the Company negligent
        lalai dalam melakukan pembayaran bunga atau                             in making payments of interest or principal owed.
        pokok yang terutang.




                                                               - 59 -
Page 570
PT BUSSAN AUTO FINANCE                                                                   PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                     NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                             FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                          DECEMBER 31, 2023 AND 2022 - Continued

   2.   Tanpa persetujuan tertulis dari wali amanat,                  2.   Without the written consent of the trustee, the
        Perusahaan dilarang memberikan pinjaman atau                       Company is prohibited from providing loans or
        kredit kepada afiliasi, kecuali atas pinjaman yang                 loans to affiliates, except for loans that have
        telah ada sebelum perjanjian dengan wali                           existed before the agreement with trustee and
        amanat dan pinjaman dalam rangka kegiatan                          loans relates with the Company’s normal
        operasional Perusahaan.                                            operations.

   3.   Tanpa persetujuan tertulis dari wali amanat,                  3.   Without written approval from the trustee, the
        Perusahaan dilarang menjual, mentransfer atau                      Company is prohibited from selling, transferring all
        mengalihkan seluruh atau sebagian dari harta                       or part of its assets, either one by one or any
        kekayaannya, baik satu persatu ataupun jumlah                      transfer amounting to 30% (thirty percent) or more
        pengalihan sebesar 30% (tiga puluh persen) atau                    of the Company's total assets, except for the
        lebih dari total aset Perusahaan, kecuali dalam                    Company's operational activities.
        rangka kegiatan operasional Perusahaan.

   4.   Tanpa persetujuan tertulis dari wali amanat,                  4.   Without the written consent of the trustee, the
        Perusahaan dilarang melakukan penggabungan,                        Company is prohibited to merge, consolidated
        konsolidasi, dan peleburan dengan perusahaan                       and amalgamate with other companies except it is
        lain kecuali sepanjang yang dilakukan pada                         carried out in the same business and does not
        bidang usaha yang sama dan tidak mempunyai                         have a negative impact on the Company's
        dampak negatif terhadap jalannya usaha                             business and does not affect the Company's
        Perusahaan      serta   tidak  mempengaruhi                        ability to make principal payments and/or bond
        kemampuan Perusahaan dalam melakukan                               interest.
        pembayaran pokok obligasi dan/atau bunga
        obligasi.

   Perusahaan telah mematuhi semua persyaratan yang                   The Company has complied with all covenants
   disebutkan dalam perjanjian.                                       mentioned in agreements.

   Obligasi Berkelanjutan I Bussan Auto Finance Tahap                 Bond Sustainable I Bussan Auto Finance Phase V
   V tahun 2022                                                       year 2022

   Pada bulan Maret 2022, Perusahaan melakukan                        In March 2022, the Company held a bond offering
   penawaran umum obligasi bernama "Obligasi                          called "Bond Sustainable I Bussan Auto Finance
   Berkelanjutan I Bussan Auto Finance Tahap V tahun                  Phase V year 2022". The transaction costs associated
   2022". Biaya transaksi yang terkait dengan                         with the issuance of these bonds are Rp 2,429,228
   penerbitan obligasi ini adalah sebesar Rp 2.429.228                thousand. All funds obtained will be used for the
   ribu. Seluruh dana yang diperoleh akan digunakan                   Company's working capital. These sukuk mudharabah
   untuk modal kerja Perusahaan. Obligasi ini diterbitkan             are issued scripless and are offered at their principal
   tanpa warkat dan ditawarkan sebesar nilai nilai                    value, as below:
   pokoknya, sebagai berikut:

                                        Pokok/Principal      Jangka waktu/Term         Bunga/Interest
                                          775.000.000.000       3 tahun/years             5,90%

   Pembayaran obligasi dilakukan secara penuh (bullet                 Bond payments are made in full (bullet payment) when
   payment) saat jatuh tempo. Bunga obligasi terutang                 due. Bond interest is payable every three months from
   setiap tiga bulan mulai dari 17 Juni 2022 sampai                   June 17, 2022 to March 17, 2025. Purchases of bonds
   dengan 17 Maret 2025. Pembelian obligasi dapat                     can be made after one year from the date of allotment
   dilakukan setelah satu tahun dari tanggal penjatahan               based on market prices.
   berdasarkan harga pasar.

   PT Bank Mandiri (Persero) Tbk bertindak sebagai wali               PT Bank Mandiri (Persero) Tbk act as trustee. At the
   amanat. Pada saat diterbitkan, Obligasi tersebut                   time of issuance, the Bond received the AAA(idn) Fitch
   mendapatkan AAA(idn) Fitch rating dan tercatat pada                rating and was listed on the Indonesia Stock Exchange
   Bursa Efek Indonesia pada 18 Maret 2022. Obligasi                  on March 18, 2022. The bonds are guaranteed by the
   ini dijamin dengan piutang performing Perusahaan                   Company's performing receivables amounting to 50%
   sebesar 50% (lima puluh persen) dari nilai pokok                   (fifty percent) of the principal value of the bonds.
   obligasi.




                                                             - 60 -
Page 571
PT BUSSAN AUTO FINANCE                                                                   PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                     NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                             FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                          DECEMBER 31, 2023 AND 2022 - Continued

   Pembatasan-pembatasan penting yang diatur dalam                    Important restrictions stipulated in the agreement are:
   perjanjian adalah:

   1.   Tanpa persetujuan tertulis dari wali amanat,                  1.   Without written approval from the trustee, the
        Perusahaan dilarang melakukan pembagian                            Company is prohibited from dividend distribution
        dividen pada tahun buku dimana Perusahaan                          in the financial year where the Company negligent
        lalai dalam melakukan pembayaran bunga atau                        in making payments of interest or principal owed.
        pokok yang terutang.

   2.   Tanpa persetujuan tertulis dari wali amanat,                  2.   Without the written consent of the trustee, the
        Perusahaan dilarang memberikan pinjaman atau                       Company is prohibited from providing loans or
        kredit kepada afiliasi, kecuali atas pinjaman yang                 loans to affiliates, except for loans that have
        telah ada sebelum perjanjian dengan wali                           existed before the agreement with trustee and
        amanat dan pinjaman dalam rangka kegiatan                          loans relates with the Company’s normal
        operasional Perusahaan.                                            operations.

   3.   Tanpa persetujuan tertulis dari wali amanat,                  3.   Without written approval from the trustee, the
        Perusahaan dilarang menjual, mentransfer atau                      Company is prohibited from selling, transferring all
        mengalihkan seluruh atau sebagian dari harta                       or part of its assets, either one by one or any
        kekayaannya, baik satu persatu ataupun jumlah                      transfer amounting to 30% (thirty percent) or more
        pengalihan sebesar 30% (tiga puluh persen) atau                    of the Company's total assets, except for the
        lebih dari total aset Perusahaan, kecuali dalam                    Company's operational activities.
        rangka kegiatan operasional Perusahaan.

   4.   Tanpa persetujuan tertulis dari wali amanat,                  4.   Without the written consent of the trustee, the
        Perusahaan dilarang melakukan penggabungan,                        Company is prohibited to merge, consolidated
        konsolidasi, dan peleburan dengan perusahaan                       and amalgamate with other companies except it is
        lain kecuali sepanjang yang dilakukan pada                         carried out in the same business and does not
        bidang usaha yang sama dan tidak mempunyai                         have a negative impact on the Company's
        dampak negatif terhadap jalannya usaha                             business and does not affect the Company's
        Perusahaan      serta   tidak  mempengaruhi                        ability to make principal payments and/or bond
        kemampuan Perusahaan dalam melakukan                               interest.
        pembayaran pokok obligasi dan/atau bunga
        obligasi.

   Perusahaan telah mematuhi semua persyaratan yang                   The Company has complied with all covenants
   disebutkan dalam perjanjian.                                       mentioned in agreements.

   Obligasi Berkelanjutan II Bussan Auto Finance                      Bond Sustainable II Bussan Auto Finance Phase I year
   Tahap I tahun 2022                                                 2022

   Pada bulan Juni 2022, Perusahaan melakukan                         In June 2022, the Company held a bond offering called
   penawaran umum obligasi bernama "Obligasi                          "Bond Sustainable II Bussan Auto Finance Phase I
   Berkelanjutan II Bussan Auto Finance Tahap I tahun                 year 2022". The transaction costs associated with the
   2022". Biaya transaksi yang terkait dengan                         issuance of these bonds are Rp 2,191,477 thousand.
   penerbitan obligasi ini adalah sebesar Rp 2.191.477                All funds obtained will be used for the Company's
   ribu. Seluruh dana yang diperoleh akan digunakan                   working capital. These sukuk mudharabah are issued
   untuk modal kerja Perusahaan. Obligasi ini diterbitkan             scripless and are offered at their principal value, as
   tanpa warkat dan ditawarkan sebesar nilai nilai                    below:
   pokoknya, sebagai berikut:

                       Seri/Series      Pokok/Principal      Jangka waktu/Term         Bunga/Interest
                            A             88.500.000.000        370 hari/days             4,10%
                            B             11.500.000.000       3 tahun/years              7,00%

   Pembayaran obligasi dilakukan secara penuh (bullet                 Bond payments are made in full (bullet payment) when
   payment) saat jatuh tempo. Bunga obligasi terutang                 due. Bond interest is payable every three months from
   setiap tiga bulan mulai dari 5 Oktober 2022 sampai                 October 5, 2022 to July 15, 2023 for series A bonds
   dengan 15 Juli 2023 untuk obligasi seri A dan                      and October 5, 2022 to July 5, 2025 for series B bonds.
   5 Oktober 2022 sampai dengan 5 Juli 2025 untuk                     Purchases of bonds can be made after one year from
   obligasi seri B. Pembelian obligasi dapat dilakukan                the date of allotment based on market prices.
   setelah satu tahun dari tanggal penjatahan
   berdasarkan harga pasar.




                                                             - 61 -
Page 572
PT BUSSAN AUTO FINANCE                                                                   PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                     NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                             FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                          DECEMBER 31, 2023 AND 2022 - Continued

   PT Bank Mandiri (Persero) Tbk bertindak sebagai wali               PT Bank Mandiri (Persero) Tbk act as trustee. At the
   amanat. Pada saat diterbitkan, Obligasi tersebut                   time of issuance, the Bond received the AAA(idn) Fitch
   mendapatkan AAA(idn) Fitch rating dan idAAA                        rating and idAAA Pefindo rating, was listed on the
   Pefindo rating, tercatat pada Bursa Efek Indonesia                 Indonesia Stock Exchange on July 6, 2022. These
   pada 6 Juli 2022. Obligasi ini tidak menggunakan                   bonds do not have collateral.
   jaminan.

   Pembatasan-pembatasan penting yang diatur dalam                    Important restrictions stipulated in the agreement are:
   perjanjian adalah:

   1.   Tanpa persetujuan tertulis dari wali amanat,                  1.   Without written approval from the trustee, the
        Perusahaan dilarang melakukan pembagian                            Company is prohibited from dividend distribution
        dividen pada tahun buku dimana Perusahaan                          in the financial year where the Company negligent
        lalai dalam melakukan pembayaran bunga atau                        in making payments of interest or principal owed.
        pokok yang terutang.

   2.   Tanpa persetujuan tertulis dari wali amanat,                  2.   Without the written consent of the trustee, the
        Perusahaan dilarang memberikan pinjaman atau                       Company is prohibited from providing loans or
        kredit kepada afiliasi, kecuali atas pinjaman yang                 loans to affiliates, except for loans that have
        telah ada sebelum perjanjian dengan wali                           existed before the agreement with trustee and
        amanat dan pinjaman dalam rangka kegiatan                          loans relates with the Company’s normal
        operasional Perusahaan.                                            operations.

   3.   Tanpa persetujuan tertulis dari wali amanat,                  3.   Without written approval from the trustee, the
        Perusahaan dilarang menjual, mentransfer atau                      Company is prohibited from selling, transferring all
        mengalihkan seluruh atau sebagian dari harta                       or part of its assets, either one by one or any
        kekayaannya, baik satu persatu ataupun jumlah                      transfer amounting to 30% (thirty percent) or more
        pengalihan sebesar 30% (tiga puluh persen) atau                    of the Company's total assets, except for the
        lebih dari total aset Perusahaan, kecuali dalam                    Company's operational activities.
        rangka kegiatan operasional Perusahaan.

   4.   Tanpa persetujuan tertulis dari wali amanat,                  4.   Without the written consent of the trustee, the
        Perusahaan dilarang melakukan penggabungan,                        Company is prohibited to merge, consolidated
        konsolidasi, dan peleburan dengan perusahaan                       and amalgamate with other companies except it is
        lain kecuali sepanjang yang dilakukan pada                         carried out in the same business and does not
        bidang usaha yang sama dan tidak mempunyai                         have a negative impact on the Company's
        dampak negatif terhadap jalannya usaha                             business and does not affect the Company's
        Perusahaan      serta   tidak  mempengaruhi                        ability to make principal payments and/or bond
        kemampuan Perusahaan dalam melakukan                               interest.
        pembayaran pokok obligasi dan/atau bunga
        obligasi.

   Perusahaan telah mematuhi semua persyaratan yang                   The Company has complied with all covenants
   disebutkan dalam perjanjian.                                       mentioned in agreements.

   Pada tanggal 17 Juli 2023, Perusahaan telah                        On July 17, 2023, the Company has fully paid the
   melakukan pelunasan atas seluruh pokok pinjaman                    principal of Bond Sustainable II Phase I year 2022
   utang Obligasi Berkelanjutan II Tahap I Tahun 2022                 Series A amounting to Rp 88,500,000 thousand.
   Seri A sebesar Rp 88.500.000 ribu.

   Obligasi Berkelanjutan II Bussan Auto Finance                      Bond Sustainable II Bussan Auto Finance Phase II
   Tahap II tahun 2022                                                year 2022

   Pada bulan November 2022, Perusahaan melakukan                     In November 2022, the Company held a bond offering
   penawaran umum obligasi bernama "Obligasi                          called "Bond Sustainable II Bussan Auto Finance
   Berkelanjutan II Bussan Auto Finance Tahap II tahun                Phase II year 2022". The transaction costs associated
   2022". Biaya transaksi yang terkait dengan                         with the issuance of these bonds are Rp 4,332,219
   penerbitan obligasi ini adalah sebesar Rp 4.332.219                thousand. All funds obtained will be used for the
   ribu. Seluruh dana yang diperoleh akan digunakan                   Company's working capital. These sukuk mudharabah
   untuk modal kerja Perusahaan. Obligasi ini diterbitkan             are issued scripless and are offered at their principal
   tanpa warkat dan ditawarkan sebesar nilai nilai                    value, as below:
   pokoknya, sebagai berikut:

                       Seri/Series      Pokok/Principal      Jangka waktu/Term         Bunga/Interest
                            A            655.000.000.000        370 hari/days             5,98%
                            B            545.000.000.000       3 tahun/years              7,75%



                                                             - 62 -
Page 573
PT BUSSAN AUTO FINANCE                                                                   PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                     NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                             FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                          DECEMBER 31, 2023 AND 2022 - Continued

   Pembayaran obligasi dilakukan secara penuh (bullet                 Bond payments are made in full (bullet payment) when
   payment) saat jatuh tempo. Bunga obligasi terutang                 due. Bond interest is payable every three months from
   setiap tiga bulan mulai dari 2 Maret 2023 sampai                   March 2, 2023 to December 12, 2023 for series A
   dengan 12 Desember 2023 untuk obligasi seri A dan                  bonds and March 2, 2023 to December 2, 2025 for
   2 Maret 2023 sampai dengan 2 Desember 2025 untuk                   series B bonds. Purchases of bonds can be made after
   obligasi seri B. Pembelian obligasi dapat dilakukan                one year from the date of allotment based on market
   setelah satu tahun dari tanggal penjatahan                         prices.
   berdasarkan harga pasar.

   PT Bank Mandiri (Persero) Tbk bertindak sebagai wali               PT Bank Mandiri (Persero) Tbk act as trustee. At the
   amanat. Pada saat diterbitkan, Obligasi tersebut                   time of issuance, the Bond received the AAA(idn) Fitch
   mendapatkan AAA(idn) Fitch rating dan idAAA                        rating and idAAA Pefindo rating and was listed on the
   Pefindo rating dan tercatat pada Bursa Efek Indonesia              Indonesia Stock Exchange on December 5, 2022.
   pada 5 Desember 2022. Obligasi ini tidak                           These bonds do not have collateral.
   menggunakan jaminan.

   Pembatasan-pembatasan penting yang diatur dalam                    Important restrictions stipulated in the agreement are:
   perjanjian adalah:

   1.   Tanpa persetujuan tertulis dari wali amanat,                  1.   Without written approval from the trustee, the
        Perusahaan dilarang melakukan pembagian                            Company is prohibited from dividend distribution
        dividen pada tahun buku dimana Perusahaan                          in the financial year where the Company negligent
        lalai dalam melakukan pembayaran bunga atau                        in making payments of interest or principal owed.
        pokok yang terutang.

   2.   Tanpa persetujuan tertulis dari wali amanat,                  2.   Without the written consent of the trustee, the
        Perusahaan dilarang memberikan pinjaman atau                       Company is prohibited from providing loans or
        kredit kepada afiliasi, kecuali atas pinjaman yang                 loans to affiliates, except for loans that have
        telah ada sebelum perjanjian dengan wali                           existed before the agreement with trustee and
        amanat dan pinjaman dalam rangka kegiatan                          loans relates with the Company’s normal
        operasional Perusahaan.                                            operations.

   3.   Tanpa persetujuan tertulis dari wali amanat,                  3.   Without written approval from the trustee, the
        Perusahaan dilarang menjual, mentransfer atau                      Company is prohibited from selling, transferring all
        mengalihkan seluruh atau sebagian dari harta                       or part of its assets, either one by one or any
        kekayaannya, baik satu persatu ataupun jumlah                      transfer amounting to 30% (thirty percent) or more
        pengalihan sebesar 30% (tiga puluh persen) atau                    of the Company's total assets, except for the
        lebih dari total aset Perusahaan, kecuali dalam                    Company's operational activities.
        rangka kegiatan operasional Perusahaan.

   4.   Tanpa persetujuan tertulis dari wali amanat,                  4.   Without the written consent of the trustee, the
        Perusahaan dilarang melakukan penggabungan,                        Company is prohibited to merge, consolidated
        konsolidasi, dan peleburan dengan perusahaan                       and amalgamate with other companies except it is
        lain kecuali sepanjang yang dilakukan pada                         carried out in the same business and does not
        bidang usaha yang sama dan tidak mempunyai                         have a negative impact on the Company's
        dampak negatif terhadap jalannya usaha                             business and does not affect the Company's
        Perusahaan      serta   tidak  mempengaruhi                        ability to make principal payments and/or bond
        kemampuan Perusahaan dalam melakukan                               interest.
        pembayaran pokok obligasi dan/atau bunga
        obligasi.

   Perusahaan telah mematuhi semua persyaratan yang                   The Company has complied with all covenants
   disebutkan dalam perjanjian.                                       mentioned in agreements.

   Pada tanggal 12 Desember 2023, Perusahaan telah                    On December 12, 2023, the Company has fully paid
   melakukan pelunasan atas seluruh pokok pinjaman                    the principal of Bond Sustainable II Phase II year 2022
   utang Obligasi Berkelanjutan II Tahap II tahun 2022                Series A amounting to Rp 655,000,000 thousand.
   Seri A sebesar Rp 655.000.000 ribu.




                                                             - 63 -
Page 574
PT BUSSAN AUTO FINANCE                                                                   PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                     NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                             FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                          DECEMBER 31, 2023 AND 2022 - Continued

   Obligasi Berkelanjutan II Bussan Auto Finance tahap                Bond Sustainable II Bussan Auto Finance Phase III
   III tahun 2023                                                     year 2023

   Pada bulan April 2023, Perusahaan melakukan                        In April 2023, the Company held a bond offering called
   penawaran umum obligasi bernama "Obligasi                          "Bond Sustainable II Bussan Auto Finance Phase III
   Berkelanjutan II Bussan Auto Finance Tahap III tahun               year 2023". The transaction costs associated with the
   2023". Biaya transaksi yang terkait dengan                         issuance of these bonds are Rp 4,365,593 thousand.
   penerbitan obligasi ini adalah sebesar Rp 4.365.593                All funds obtained will be used for the Company's
   ribu. Seluruh dana yang diperoleh akan digunakan                   working capital. These sukuk mudharabah are issued
   untuk modal kerja Perusahaan. Obligasi ini diterbitkan             scripless and are offered at their principal value, as
   tanpa warkat dan ditawarkan sebesar nilai nilai                    below:
   pokoknya, sebagai berikut:

                        Seri/Series      Pokok/Principal      Jangka waktu/Term         Bunga/Interest
                             A           401.000.000.000        370 hari/days              5,98%
                             B           841.000.000.000         3 tahun/years             7,10%

   Pembayaran obligasi dilakukan secara penuh (bullet                 Bond payments are made in full (bullet payment) when
   payment) saat jatuh tempo. Bunga obligasi terutang                 due. Bond interest is payable every three months from
   setiap tiga bulan mulai dari 18 Juli 2023 sampai                   July 18, 2023 to April 28, 2024 for series A bonds and
   dengan 28 April 2024 untuk obligasi seri A dan                     July 18, 2023 to April 18, 2026 for series B bonds.
   18 Juli 2023 sampai dengan 18 April 2026 untuk                     Purchases of bonds can be made after one year from
   obligasi seri B. Pembelian obligasi dapat dilakukan                the date of allotment based on market prices.
   setelah satu tahun dari tanggal penjatahan
   berdasarkan harga pasar.

   PT Bank Mandiri (Persero) Tbk bertindak sebagai wali               PT Bank Mandiri (Persero) Tbk act as trustee. At the
   amanat. Pada saat diterbitkan, Obligasi tersebut                   time of issuance, the Bond received the AAA(idn) Fitch
   mendapatkan AAA(idn) Fitch rating dan idAAA                        rating and idAAA Pefindo rating, was listed on the
   Pefindo rating, tercatat pada Bursa Efek Indonesia                 Indonesia Stock Exchange on April 26, 2023. These
   pada 26 April 2023. Obligasi ini tidak menggunakan                 bonds do not have collateral.
   jaminan.

   Pembatasan-pembatasan penting yang diatur dalam                    Important restrictions stipulated in the agreement are:
   perjanjian adalah:

   1.   Tanpa persetujuan tertulis dari wali amanat,                  1.   Without written approval from the trustee, the
        Perusahaan dilarang melakukan pembagian                            Company is prohibited from dividend distribution
        dividen pada tahun buku dimana Perusahaan                          in the financial year where the Company negligent
        lalai dalam melakukan pembayaran bunga atau                        in making payments of interest or principal owed.
        pokok yang terutang.

   2.   Tanpa persetujuan tertulis dari wali amanat,                  2.   Without the written consent of the trustee, the
        Perusahaan dilarang memberikan pinjaman atau                       Company is prohibited from providing loans or
        kredit kepada afiliasi, kecuali atas pinjaman yang                 loans to affiliates, except for loans that have
        telah ada sebelum perjanjian dengan wali                           existed before the agreement with trustee and
        amanat dan pinjaman dalam rangka kegiatan                          loans relates with the Company’s normal
        operasional Perusahaan.                                            operations.

   3.   Tanpa persetujuan tertulis dari wali amanat,                  3.   Without written approval from the trustee, the
        Perusahaan dilarang menjual, mentransfer atau                      Company is prohibited from selling, transferring all
        mengalihkan seluruh atau sebagian dari harta                       or part of its assets, either one by one or any
        kekayaannya, baik satu persatu ataupun jumlah                      transfer amounting to 30% (thirty percent) or more
        pengalihan sebesar 30% (tiga puluh persen) atau                    of the Company's total assets, except for the
        lebih dari total aset Perusahaan, kecuali dalam                    Company's operational activities.
        rangka kegiatan operasional Perusahaan.




                                                             - 64 -
Page 575
PT BUSSAN AUTO FINANCE                                                                    PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                      NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                              FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                           DECEMBER 31, 2023 AND 2022 - Continued

   4.   Tanpa persetujuan tertulis dari wali amanat,                  4.   Without the written consent of the trustee, the
        Perusahaan dilarang melakukan penggabungan,                        Company is prohibited to merge, consolidated
        konsolidasi, dan peleburan dengan perusahaan                       and amalgamate with other companies except it is
        lain kecuali sepanjang yang dilakukan pada                         carried out in the same business and does not
        bidang usaha yang sama dan tidak mempunyai                         have a negative impact on the Company's
        dampak negatif terhadap jalannya usaha                             business and does not affect the Company's
        Perusahaan      serta   tidak  mempengaruhi                        ability to make principal payments and/or bond
        kemampuan Perusahaan dalam melakukan                               interest.
        pembayaran pokok obligasi dan/atau bunga
        obligasi.

   Perusahaan telah mematuhi semua persyaratan yang                   The Company has complied with all covenants
   disebutkan dalam perjanjian.                                       mentioned in agreements.

   Obligasi Berkelanjutan II Bussan Auto Finance Tahap                Bond Sustainable II Bussan Auto Finance Phase IV
   IV tahun 2023                                                      year 2023

   Pada bulan September 2023, Perusahaan melakukan                    In September 2023, the Company held a bond offering
   penawaran umum obligasi bernama "Obligasi                          called "Bond Sustainable II Bussan Auto Finance
   Berkelanjutan II Bussan Auto Finance Tahap IV tahun                Phase IV year 2023". The transaction costs associated
   2023". Biaya transaksi yang terkait dengan                         with the issuance of these bonds are Rp 1,860,177
   penerbitan obligasi ini adalah sebesar Rp 1.860.177                thousand. All funds obtained will be used for the
   ribu. Seluruh dana yang diperoleh akan digunakan                   Company's working capital. These sukuk mudharabah
   untuk modal kerja Perusahaan. Obligasi ini diterbitkan             are issued scripless and are offered at their principal
   tanpa warkat dan ditawarkan sebesar nilai nilai                    value, as below:
   pokoknya, sebagai berikut:

                           Pokok/Principal        Jangka waktu/Term        Bunga/Interest
                           458.000.000.000           3 tahun/years            6,50%

   Pembayaran obligasi dilakukan secara penuh (bullet                 Bond payments are made in full (bullet payment) when
   payment) saat jatuh tempo. Bunga obligasi terutang                 due. Bond interest is payable every three months from
   setiap tiga bulan mulai dari 8 Desember 2023 sampai                December 8, 2023 to September 8, 2026. Purchases
   dengan 8 September 2026. Pembelian obligasi dapat                  of bonds can be made after one year from the date of
   dilakukan setelah satu tahun dari tanggal penjatahan               allotment based on market prices.
   berdasarkan harga pasar.

   PT Bank Mandiri (Persero) Tbk bertindak sebagai wali               PT Bank Mandiri (Persero) Tbk act as trustee. At the
   amanat. Pada saat diterbitkan, Obligasi tersebut                   time of issuance, the Bond received the AAA(idn) Fitch
   mendapatkan AAA(idn) Fitch rating dan idAAA                        rating and idAAA Pefindo rating, was listed on the
   Pefindo rating, tercatat pada Bursa Efek Indonesia                 Indonesia Stock Exchange on September 11, 2023.
   pada 11 September 2023. Obligasi ini tidak                         These bonds do not have collateral.
   menggunakan jaminan.

   Pembatasan-pembatasan penting yang diatur dalam                    Important restrictions stipulated in the agreement are:
   perjanjian adalah:

   1.   Tanpa persetujuan tertulis dari wali amanat,                  1.   Without written approval from the trustee, the
        Perusahaan dilarang melakukan pembagian                            Company is prohibited from dividend distribution
        dividen pada tahun buku dimana Perusahaan                          in the financial year where the Company negligent
        lalai dalam melakukan pembayaran bunga atau                        in making payments of interest or principal owed.
        pokok yang terutang.

   2.   Tanpa persetujuan tertulis dari wali amanat,                  2.   Without the written consent of the trustee, the
        Perusahaan dilarang memberikan pinjaman atau                       Company is prohibited from providing loans or
        kredit kepada afiliasi, kecuali atas pinjaman yang                 loans to affiliates, except for loans that have
        telah ada sebelum perjanjian dengan wali                           existed before the agreement with trustee and
        amanat dan pinjaman dalam rangka kegiatan                          loans relates with the Company’s normal
        operasional Perusahaan.                                            operations.




                                                             - 65 -
Page 576
PT BUSSAN AUTO FINANCE                                                                              PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                                NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                                        FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                                     DECEMBER 31, 2023 AND 2022 - Continued

   3.     Tanpa persetujuan tertulis dari wali amanat,                       3.    Without written approval from the trustee, the
          Perusahaan dilarang menjual, mentransfer atau                            Company is prohibited from selling, transferring all
          mengalihkan seluruh atau sebagian dari harta                             or part of its assets, either one by one or any
          kekayaannya, baik satu persatu ataupun jumlah                            transfer amounting to 30% (thirty percent) or more
          pengalihan sebesar 30% (tiga puluh persen) atau                          of the Company's total assets, except for the
          lebih dari total aset Perusahaan, kecuali dalam                          Company's operational activities.
          rangka kegiatan operasional Perusahaan.

   4.     Tanpa persetujuan tertulis dari wali amanat,                       4.    Without the written consent of the trustee, the
          Perusahaan dilarang melakukan penggabungan,                              Company is prohibited to merge, consolidated
          konsolidasi, dan peleburan dengan perusahaan                             and amalgamate with other companies except it is
          lain kecuali sepanjang yang dilakukan pada                               carried out in the same business and does not
          bidang usaha yang sama dan tidak mempunyai                               have a negative impact on the Company's
          dampak negatif terhadap jalannya usaha                                   business and does not affect the Company's
          Perusahaan      serta   tidak  mempengaruhi                              ability to make principal payments and/or bond
          kemampuan Perusahaan dalam melakukan                                     interest.
          pembayaran pokok obligasi dan/atau bunga
          obligasi.

   Perusahaan telah mematuhi semua persyaratan yang                          The Company has complied with all covenants
   disebutkan dalam perjanjian.                                              mentioned in agreements.


19. LIABILITAS SEWA                                                      19. LEASE LIABILITES

                                                    31 Desember /       31 Desember /
                                                    December 31         December 31
                                                        2023                2022
                                                       Rp '000             Rp '000

   a. Analisis jatuh tempo                                                                 a. Maturity analysis

        Tahun 1                                         3.508.792            3.286.792       Year 1
        Tahun 2                                           -                  2.727.320       Year 2
        Tahun 3                                           -                     43.677       Year 3
        Tahun 4                                           -                     43.677       Year 4
                                                         3.508.792            6.101.466
        Bagian yang jatuh tempo dalam satu tahun        (3.508.792)          (3.286.792)     Current maturity
        Liabilitas sewa jangka panjang                    -                  2.814.674       Non-current lease liabilities

   b. Rincian liabilitas sewa berdasarkan pesewa:                                          b. By lessor

        E J T Lembong                                   2.236.911            4.629.081       E J T Lembong
        Wilianto Tanta                                    634.130             -              Wilianto Tanta
        PT Kolaborasi Global Sukses                       472.326             -              PT Kolaborasi Global Sukses
        DRS Saiful Rizal Siregar                          -                    416.637       DRS Saiful Rizal Siregar
        Lain-lain                                         165.425            1.055.748       Others
        Jumlah                                          3.508.792            6.101.466       Total

   Perusahaan tidak menghadapi risiko likuiditas yang                          The Company does not face a significant liquidity risk
   signifikan sehubungan dengan liabilitas sewa.                               with regard to its lease liabilities. Lease liabilities are
   Liabilitas sewa diawasi oleh fungsi treasury                                monitored within the Company's treasury function.
   Perusahaan.

   Rata-rata tertimbang suku bunga pinjaman                                    The weighted average lessee’s incremental
   inkremental penyewa yang diterapkan pada liabilitas                         borrowing rate applied to the lease liabilities
   sewa yang diakui dalam laporan posisi keuangan                              recognised in the statement of financial position at
   pada 31 Desember 2023 adalah 7,50% (2022:                                   December 31, 2023 is 7.50% (2022: 5.75%).
   5,75%).




                                                                    - 66 -
Page 577
PT BUSSAN AUTO FINANCE                                                                          PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                            NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                                    FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                                 DECEMBER 31, 2023 AND 2022 - Continued

20. LIABILITAS IMBALAN PASCA KERJA                                    20. POST-EMPLOYMENT BENEFITS OBLIGATION

   Perusahaan menyelenggarakan imbalan pasca kerja                          The Company provides post-employment benefits to
   untuk 3.497 karyawan untuk tahun yang berakhir                           3,497 employees for the year ended December 31,
   31 Desember 2023 (31 Desember 2022: 3.666                                2023 (December 31, 2022: 3,666 employees),
   karyawan)    sesuai  dengan    Undang-Undang                             respectively in accordance with Labor Law.
   Ketenagakerjaan.

   Program imbalan pasca kerja membuat Perusahaan                           The post-employment benefits plan makes the
   terekspos terhadap risiko aktuarial seperti risiko                       Company exposed to actuarial risks such as interest
   tingkat bunga dan risiko gaji.                                           rate risk and salary risk.

   Risiko tingkat bunga                                                    Interest rate risk

   Penurunan suku bunga obligasi akan meningkatkan                         A decrease in the bond interest rate will increase the
   liabilitas program.                                                     plan liability.

   Risiko harapan hidup                                                    Longevity risk

   Nilai kini kewajiban imbalan pasti dihitung dengan                      The present value of the defined benefit plan liability is
   mengacu pada estimasi terbaik dari mortalitas                           calculated by reference to the best estimate of the
   peserta program baik selama dan setelah kontrak                         mortality of plan participants both during and after their
   kerja. Peningkatan harapan hidup peserta program                        employment. An increase in the life expectancy of the
   akan meningkatkan liabilitas program.                                   plan participants will increase the plan’s liability.

   Risiko gaji                                                              Salary risk

   Nilai kini kewajiban imbalan pasti dihitung dengan                       The present value of the defined benefit plan liability is
   mengacu pada gaji masa depan peserta program.                            calculated by reference to the future salaries of plan
   Dengan demikian, kenaikan gaji peserta program                           participants. As such, an increase in the salary of the
   akan meningkatkan liabilitas program itu.                                plan participants will increase the plan’s liability.

   Beban imbalan pasca kerja yang diakui di laporan                         The details of the post-employment benefit expense
   laba rugi dan penghasilan komprehensif lain adalah                       recognized in the statement of profit or loss and other
   sebagai berikut:                                                         comprehensive income are as follows:

                                                  31 Desember/        31 Desember/
                                                  December 31,        December 31,
                                                     2023                  2022
                                                    Rp '000               Rp '000

    Biaya jasa kini                                  17.671.208            15.598.452     Current service costs
    Kerugian atas penyelesaian                        1.705.040            13.624.272     Loss on settlement
    Beban bunga                                       9.924.192            10.224.924     Interest costs
    Penyesuaian saldo awal                              -                 (21.330.240)    Adjustment at the beginning balance
    Komponen dari biaya imbalan pasca kerja                                               Component of post-employment
      diakui dalam laba rugi                         29.300.440           18.117.408         benefit costs recognized in profit or loss

    Pengukuran kembali kerugian (keuntungan)                                              Remeasurement of actuarial loss (gain)
     aktuarial yang timbul dari:                                                           arising from:
       Perubahan asumsi keuangan                      6.649.488            (6.137.990)       Changes in financial assumption
       Penyesuaian atas pengalaman                    2.798.470            (4.211.147)       Experience adjustments
    Komponen beban imbalan pasca kerja yang                                               Component of post-employment benefit cost
     diakui dalam penghasilan komprehensif lain       9.447.958           (10.349.137)     recognized in other comprehensive income

    Jumlah                                           38.748.398            7.768.271      Total




                                                                 - 67 -
Page 578
PT BUSSAN AUTO FINANCE                                                                                        PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                                          NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                                                  FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                                               DECEMBER 31, 2023 AND 2022 - Continued

   Liabilitas imbalan pasca kerja yang diakui dalam                                     Post-employment benefits obligation recognized in the
   laporan posisi keuangan adalah sebagai berikut:                                      statements of financial position are as follows:

                                                          31 Desember/          31 Desember/
                                                          December 31,          December 31,
                                                              2023                  2022
                                                             Rp '000               Rp '000

    Nilai kini kewajiban imbalan                                                                      Present value of post-employment
      pasca kerja                                            165.704.169             137.543.652        benefits obligation



   Mutasi nilai kini kewajiban imbalan pasca kerja                                      Movements in the present value of post-employment
   adalah sebagai berikut:                                                              benefits obligation are as follows:

                                                           31 Desember/          31 Desember/
                                                           December 31,          December 31,
                                                               2023                  2022
                                                              Rp '000               Rp '000

   Nilai kini kewajiban awal                                  137.543.652             154.003.800      Beginning present value of obligation
   Biaya jasa kini                                             17.671.208              15.598.452      Current service costs
   Kerugian atas penyelesaian                                   1.705.040              13.624.272      Loss on settlement
   Beban bunga                                                  9.924.192              10.224.924      Interest costs
   Pembayaran manfaat                                         (10.587.881)            (24.228.419)     Benefits paid
   Penyesuaian pada saldo awal                                   -                    (21.330.240)     Adjustment at the beginning balance
   Kerugian (keuntungan) aktuarial yang diakui                                                         Actuarial loss (gain) recognized
     dalam penghasilan komprehensif lain                        9.447.958              (10.349.137)       in other comprehensive income

   Nilai kini kewajiban akhir                                 165.704.169             137.543.652      Ending present value of obligation

   Pada tanggal 31 Desember 2023, Perusahaan                                            As of December 31, 2023, the Company recognized
   mengakui provisi kewajiban imbalan pasca kerja                                       provision of post-employment benefits obligations in
   sesuai dengan laporan aktuaria dari aktuaris                                         accordance with actuary report issued by independent
   independen, Kantor Konsultan Aktuaria (“KKA”) I Gde                                  actuary, Kantor Konsultan Aktuaria (“KKA”) I Gde Eka
   Eka Sarmaja, FSAI dan Rekan, dalam laporannya                                        Sarmaja, FSAI dan Rekan, based on its report dated
   tanggal 17 Januari 2024 (2022: 8 Februari 2023),                                     January 17, 2024 (2022: February 8, 2023), using the
   dengan menggunakan metode projected unit credit.                                     projected unit credit method.

   Asumsi utama yang digunakan dalam menentukan                                         The actuarial valuation was carried out using the
   penilaian aktuarial adalah sebagai berikut:                                          following key assumptions:

                                          31 Desember/December 31 , 2023            31 Desember/December 31 , 2022

    Tingkat diskonto per tahun        : 6,75%                                  7,25%                                  :   Discount rate per annum
    Tingkat kenaikan gaji per tahun   : 6,5% untuk tingkat 2 keatas dan        6,5% untuk tingkat 2 keatas dan        :   Salary increment rate per annum
                                        5,5% untuk tingkat 1/6,5% for grade 2  5,5% untuk tingkat 1/6,5% for grade 2
                                        above and 5,5% for grade 1             above and 5,5% for grade 1
    Tingkat kematian                  : TMI 2019                               TMI 2019                               :   Mortality rate
    Tingkat cacat                     : 10% of TMI 2019                        10% of TMI 2019                        :   Disability rate
    Tingkat pengunduran diri          : 2% untuk usia sampai 22,               2% untuk usia sampai 22,               :   Voluntary resignation
                                        10% pada usia 23, manurun linier ke 2% 10% pada usia 23, manurun linier ke 2%
                                        pada usia 45 dan 2% pada usia 46       pada usia 45 dan 2% pada usia 46
                                        sampai 54 tahun/                       sampai 54 tahun/
                                        2% up to age 22, 10% at age 23,        2% up to age 22, 10% at age 23,
                                        and decrease linearly to 2% at age 45  and decrease linearly to 2% at age 45
                                        2% at age 46 until at age 54           2% at age 46 until at age 54
    Umur pensiun normal               : 55 tahun/year                          55 tahun/year                          :   Normal retirement age

   Asumsi aktuarial yang signifikan untuk penentuan                                     Significant actuarial assumptions for the determination
   kewajiban imbalan pasti adalah tingkat diskonto dan                                  of the defined benefits obligation are discount rate and
   kenaikan gaji yang diharapkan. Sensitivitas analisis di                              expected salary increase. The sensitivity analyses
   bawah ini ditentukan berdasarkan masing-masing                                       below have been determined based on reasonably
   perubahan asumsi yang mungkin terjadi pada akhir                                     possible changes of the respective assumptions
   periode pelaporan, dengan semua asumsi lain                                          occurring at the end of the reporting period, while
   konstan.                                                                             holding all other assumptions constant.




                                                                           - 68 -
Page 579
PT BUSSAN AUTO FINANCE                                                                           PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                             NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                                     FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                                  DECEMBER 31, 2023 AND 2022 - Continued

   Jika tingkat diskonto lebih tinggi (lebih rendah) 1%,                   If the discount rate is 1% higher (lower), the defined
   kewajiban imbalan pasti akan berkurang sebesar                          benefits obligation would decrease by Rp 13,594,330
   Rp      13.594.330    ribu     (meningkat     sebesar                   thousand (increase by Rp 15,382,449 thousand)
   Rp 15.382.449 ribu) (2022: tingkat diskonto lebih                       (2022: discount rate is 1% higher (lower), the defined
   tinggi (lebih rendah) 1% kewajiban imbalan pasti                        benefit obligations decrease by Rp 11,479,629
   berkurang sebesar Rp 11.479.629 ribu (meningkat                         thousand (increase by Rp 13,023,462 thousand)).
   sebesar Rp 13.023.462 ribu)).

   Jika tingkat pertumbuhan gaji lebih tinggi (lebih                       If the expected salary growth increases (decreases) by
   rendah) 1%, kewajiban imbalan pasti akan meningkat                      1%, the defined benefit obligation would increase by
   sebesar Rp 16.112.872 ribu (berkurang sebesar                           Rp 16,112,872 thousand (decrease by Rp 14,452,926
   Rp 14.452.926 ribu) (2022: tingkat pertumbuhan gaji                     thousand) (2022: expected salary growth increase
   lebih tinggi (rendah) 1%, kewajiban imbalan pasti                       (decrease) by 1%, the defined benefit obligation
   akan meningkat sebesar Rp 13.701.226 ribu                               increase by Rp 13,701,226 thousand (decrease by
   (berkurang sebesar Rp 12.250.199 ribu)).                                Rp 12,250,199 thousand)).

   Analisis sensitivitas yang disajikan di atas mungkin                    The sensitivity analysis presented above may not be
   tidak mewakili perubahan yang sebenarnya dalam                          representative of the actual change in the defined
   kewajiban imbalan pasti mengingat bahwa                                 benefits obligation as it is unlikely that the change in
   perubahan asumsi terjadinya tidak terisolasi satu                       assumptions would occur in isolation of one another
   sama lain karena beberapa asumsi tersebut mungkin                       as some of the assumptions may be correlated.
   berkorelasi.

   Selanjutnya, dalam menyajikan analisis sensitivitas di                  Furthermore, in presenting the above sensitivity
   atas, nilai kini kewajiban imbalan pasti dihitung                       analysis, the present value of the defined benefits
   dengan menggunakan metode projected unit credit                         obligation has been calculated using the projected unit
   pada akhir periode pelaporan, yang sama dengan                          credit method at the end of the reporting period, which
   yang diterapkan dalam menghitung liabilitas manfaat                     is the same as that applied in calculating the defined
   pasti yang diakui dalam laporan posisi keuangan.                        benefits obligation recognized in the statement of
                                                                           financial position.

   Jadwal jatuh tempo dari kewajiban imbalan pasca                         The maturity profile of undiscounted post-employment
   kerja yang tidak didiskontokan adalah sebagai                           benefits obligation are as follows:
   berikut:

                                              31 Desember/        31 Desember/
                                              December 31,        December 31,
                                                  2023                2022
                                                 Rp '000             Rp '000

   1 tahun                                         8.212.952              7.845.805    Within 1 year
   2 - 5 tahun                                    49.233.898             37.872.084    Between 2 - 5 years
   Lebih dari 5 tahun                            907.131.576            859.078.809    More than 5 years
   Total                                         964.578.426            904.796.698    Total

   Durasi rata-rata dari kewajiban imbalan pada tanggal                    The average duration of the benefits obligation at
   31    Desember       2023     adalah   8,87    tahun                    December 31, 2023 is 8.87 years (December 31,
   (31 Desember 2022: 9,06 tahun).                                         2022: 9.06 years).

   Tidak ada perubahan dalam metode dan asumsi yang                        There was no change in the methods and assumptions
   digunakan dalam penyusunan analisis sensitivitas                        used in preparing the sensitivity analysis from prior
   dari tahun sebelumnya.                                                  years.




                                                               - 69 -
Page 580
PT BUSSAN AUTO FINANCE                                                                   PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                     NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                             FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                          DECEMBER 31, 2023 AND 2022 - Continued

21. MODAL SAHAM                                                  21. CAPITAL STOCK

                                                  31 Desember/December 31, 2023
                                                                                   Jumlah
                                     Jumlah saham/    Persentase pemilikan/     modal disetor/
                                       Number of         Percentage of          Total paid-up
         Nama pemegang saham            shares            Ownership                capital               Name of stockholders
                                                               %                   Rp '000

    Mitsui & Co., Ltd., Jepang             159.107                    45,00        159.107.000   Mitsui & Co., Ltd., Japan
    JA Mitsui Leasing Ltd., Jepang          70.714                    20,00         70.714.000   JA Mitsui Leasing Ltd., Japan
    Yamaha Motor Co., Ltd., Jepang          62.464                    17,70         62.464.000   Yamaha Motor Co., Ltd., Japan
    PT Sinergi Autoindo Abadi               53.036                    15,00         53.036.000   PT Sinergi Autoindo Abadi
    PT Yamaha Indonesia Motor                                                                    PT Yamaha Indonesia Motor
        Manufacturing                        8.250                     2,30          8.250.000     Manufacturing

    Jumlah                                 353.571                   100,00        353.571.000   Total


                                                  31 Desember/December 31, 2022
                                                                                   Jumlah
                                     Jumlah saham/    Persentase pemilikan/     modal disetor/
                                       Number of         Percentage of          Total paid-up
         Nama pemegang saham            shares            Ownership                capital               Name of stockholders
                                                               %                   Rp '000

    Mitsui & Co., Ltd., Jepang             229.821                    65,00        229.821.000   Mitsui & Co., Ltd., Japan
    Yamaha Motor Co., Ltd., Jepang          62.464                    17,70         62.464.000   Yamaha Motor Co., Ltd., Japan
    PT Sinergi Autoindo Abadi               53.036                    15,00         53.036.000   PT Sinergi Autoindo Abadi
    PT Yamaha Indonesia Motor                                                                    PT Yamaha Indonesia Motor
        Manufacturing                        8.250                     2,30          8.250.000     Manufacturing

    Jumlah                                 353.571                   100,00        353.571.000   Total

   Berdasarkan rapat umum pemegang saham tanggal                       Based on shareholders meeting dated December 27,
   27 Desember 2019, pemegang saham menyetujui                         2019, the shareholders approved to allocate certain
   alokasi sejumlah Rp 71.400.000 ribu dari saldo laba                 amount of Rp 71,400,000 thousand from
   yang tidak ditentukan penggunaannya menjadi                         unappropriated retained earnings to a statutory
   cadangan umum. Keputusan ini telah dicatat dalam                    reserve. This resolution has been recorded in notarial
   akta notaris No. 4 tanggal 8 Januari 2020 dari Marina               deed No. 4 dated January 8, 2020 of Marina
   Soewarna, S.H., notaris di Jakarta.                                 Soewarna, S.H., notary in Jakarta.

   Berdasarkan akta notaris No. 121 tanggal                            Based on notarial deed No. 121 dated December 16,
   16 Desember 2013 dari Marina Soewana, S.H.,                         2013 of Marina Soewana, S.H., notary in Jakarta, the
   notaris di Jakarta, pemegang saham setuju untuk                     stockholders approved the issuance of 78,571 shares
   menerbitkan 78.571 lembar saham dengan nilai                        at Rp 1,000,000 par value per share. The proceeds
   nominal Rp 1.000.000 per lembar saham. Hasil dari                   from the issuance of the shares received by the
   penerbitan saham baru ini diterima oleh Perusahaan                  Company on December 20, 2013 amounted to
   pada tanggal 20 Desember 2013 sejumlah                              Rp 314,429,000 thousand. The difference between
   Rp 314.429.000 ribu. Perbedaan antara nilai yang                    the proceeds and the paid up capital amounting to
   diperoleh dengan nilai yang disetor sebesar                         Rp 235,858,000 thousand was recognized as
   Rp 235.858.000 ribu dicatat sebagai tambahan modal                  additional paid-in capital.
   disetor.

   Berdasarkan rapat umum pemegang saham tanggal                       Based      on      shareholders  meeting     dated
   13 April 2022, pemegang saham menyetujui                            April 13, 2022, the shareholders approved to
   pembagian dividen 2021 sebesar Rp 142.118.232                       distribute cash dividends for 2021 amounting to
   ribu atau setara dengan Rp 401,95 ribu per saham                    Rp 142,118,232 thousand or equivalent with
   dimana pembagian dividen kepada para pemegang                       Rp 401.95 thousand per share where the distribution
   saham berdasarkan persentase kepemilikan saham.                     of the dividend to shareholders is based on the
   Dividen tersebut telah dibayarkan tanggal 14 April                  percentage of share ownership. This dividends were
   2022.                                                               paid in April 14, 2022.




                                                            - 70 -
Page 581
PT BUSSAN AUTO FINANCE                                                                             PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                               NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                                       FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                                    DECEMBER 31, 2023 AND 2022 - Continued

   Berdasarkan akta notaris No. 28 tanggal                                   Based on notarial deed No. 28 dated September 26,
   26 September 2023 dari Marina Soewana, S.H.,                              2023 of Marina Soewana, S.H., notary in Jakarta, the
   notaris di Jakarta, pemegang saham menyetujui                             stockholders approved the transfer of shares of
   pengalihan saham Mitsui & Co., Ltd., Jepang sebesar                       Mitsui & Co., Ltd., Japan amounting to 70,714 shares
   70.714 lembar saham kepada JA Mitsui Leasing Ltd.,                        to JA Mitsui Leasing Ltd., Japan. This notarial deed
   Jepang. Akta ini telah memperoleh persetujuan dari                        was approved by the Minister of Law and Human
   Menteri Hukum dan Hak Asasi Manusia Republik                              Rights of the Republic of Indonesia in decision letter
   Indonesia dengan surat keputusan No. AHU-                                 No.           AHU-AH.01.03-0122682             dated
   AH.01.03-0122682 tanggal 26 September 2023.                               September 26, 2023.

   Berdasarkan rapat umum pemegang saham tanggal                             Based      on     shareholders   meeting      dated
   8 Mei 2023, pemegang saham menyetujui pembagian                           May 8, 2023, the shareholders approved to distribute
   dividen 2022 sebesar Rp 239.081.528 ribu atau                             cash     dividends    for  2022    amounting      to
   setara dengan Rp 676,19 ribu per saham dimana                             Rp 239,081,528 thousand or equivalent with
   pembagian dividen kepada para pemegang saham                              Rp 676.19 thousand per share where the distribution
   berdasarkan persentase kepemilikan saham. Dividen                         of the dividend to shareholders is based on the
   tersebut telah dibayarkan tanggal 11 Mei 2023.                            percentage of share ownership. This dividends were
                                                                             paid in May 11, 2023.


22. PENDAPATAN PEMBIAYAAN                                             22. FINANCING INCOME

                                                    2023                   2022
                                                   Rp '000                Rp '000

    Pendapatan bunga dari aktivitas pembiayaan   3.737.079.107        3.569.298.717       Interest income from financing activities
    Pendapatan administrasi                        253.476.385          229.957.223       Administration income
    Pendapatan bunga atas keterlambatan                                                   Interest income from late
      pembayaran                                  225.630.709             195.838.093        payment
    Penerimaan kembali piutang yang                                                       Recovery of writen off
      telah dihapuskan                            109.835.333             114.852.374        receivable
    Denda atas penghentian kontrak dipercepat      31.744.723              29.371.237     Penalty on early termination of contracts
    Lain-lain                                     119.232.115             109.508.569     Others
    Jumlah                                       4.476.998.372        4.248.826.213       Total

   Amortisasi biaya transaksi yang diakui sebagai                            Amortization of transaction costs which were
   pengurang pendapatan bunga dari aktivitas                                 recognized as a deduction of interest income from
   pembiayaan sejumlah Rp        443.529.935 ribu                            financing activities amounted to Rp 443,529,935
   (31 Desember 2022: Rp 395.957.903 ribu).                                  thousand (December 31, 2022: Rp 395,957,903
                                                                             thousand).

   Pada tahun 2023 dan 2022, tidak ada transaksi                             In 2023 and 2022, there were no transactions made
   kepada satu pihak yang melebihi 10% dari                                  to any single party that exceeding 10% of financing
   pendapatan sewa pembiayaan.                                               income.


23. BUNGA DAN BEBAN PEMBIAYAAN                                        23. INTEREST AND FINANCING CHARGES

                                                    2023                    2022
                                                   Rp '000                 Rp '000

    Beban bunga pinjaman                           365.167.768            315.719.451      Interest expenses from loans
    Beban bunga obligasi                           322.704.607            273.875.239      Interest expense of bonds

    Jumlah                                         687.872.375            589.594.690      Total




                                                                 - 71 -
Page 582
PT BUSSAN AUTO FINANCE                                                                    PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                      NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                              FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                           DECEMBER 31, 2023 AND 2022 - Continued

24. BEBAN UMUM DAN ADMINISTRASI                                  24. GENERAL AND ADMINISTRATIVE EXPENSES

                                               2023                   2022
                                              Rp '000                Rp '000

    Jasa profesional                          428.701.773            368.348.890    Professional service fees
    Penyusutan dan amortisasi                                                       Depreciation and amortization
      (Catatan 10, 11, dan 12)                107.050.459            103.580.216      (Note 10, 11 and 12)
    Beban kantor                               78.964.652             77.693.935    Office expenses
    Komputer                                   69.195.731             60.031.012    Computer
    Komisi dan penagihan                       51.525.726             32.407.789    Commissions and collections
    Komunikasi                                 38.776.427             38.795.399    Communication
    Perjalanan dinas                           23.214.712             28.693.849    Traveling
    Beban administrasi bank                    14.750.503             12.502.333    Bank administrative charges
    Materai                                    13.541.628             13.493.149    Stamp duties
    Perijinan, asuransi, pemeliharaan dan                                           License, insurance, repairs and
      perbaikan dan bensin yang berkaitan                                             maintenance and gasoline related
      dengan kendaraan                         11.847.282             11.458.047      to vehicles
    Pelatihan                                   6.685.354              7.452.377    Training
    Biaya kantor lainnya                        5.934.709              8.277.685    Other office expenses
    Sewa kantor                                 4.797.650              4.701.548    Office rental
    Denda administrasi pajak (Catatan 34)         284.738             11.378.582    Tax administration penalty (Note 34)
    Beban lain-lain                            14.348.498             11.268.313    Miscellaneous
    Jumlah                                    869.619.842            790.083.124    Total



25. BEBAN PEMASARAN                                              25. MARKETING EXPENSES

   Saldo dari akun ini merupakan biaya untuk promosi                   This account represents expenses for promotion and
   dan kegiatan pemasaran lainnya.                                     other marketing activities.


26. PAJAK PENGHASILAN                                            26. INCOME TAX

                                               2023                   2022
                                              Rp '000                Rp '000

    Pajak kini                                117.460.359            229.641.652    Current tax
    Penyesuaian pajak penghasilan                                                   Adjustment on corporate income tax
      badan (Catatan 34)                                                              (Note 34)
        Tahun fiskal 2018                         651.872                -              Fiscal year 2018
        Tahun fiskal 2012                         -                   71.728.696        Fiscal year 2012
    Pajak tangguhan                           (10.058.663)            (7.208.354)   Deferred tax

    Jumlah beban pajak penghasilan            108.053.568            294.161.994    Total income tax expense




                                                            - 72 -
Page 583
PT BUSSAN AUTO FINANCE                                                                          PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                            NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                                    FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                                 DECEMBER 31, 2023 AND 2022 - Continued

   Pajak kini                                                              Current tax

   Rekonsiliasi antara laba sebelum pajak menurut                          A reconciliation between profit before tax per
   laporan laba rugi dan penghasilan komprehensif lain                     statements of profit or loss and other comprehensive
   dengan laba kena pajak adalah sebagai berikut:                          income and accumulated fiscal losses is as follows:

                                                   2023                     2022
                                                  Rp '000                  Rp '000
    Laba sebelum pajak menurut laporan                                                     Profit before tax per statements
      laba rugi dan penghasilan                                                              of profit or loss and other
      komprehensif lain                            478.605.528              977.252.699      comprehensive income

    Perbedaan temporer:                                                                    Temporary differences:
                                                                                             Allowance for expected credit losses
      Cadangan kerugian kredit ekspektasian        107.177.117               16.791.616        of receivables
      Biaya yang masih harus dibayar               (80.471.202)              21.899.222      Accrued expenses
      Imbalan pasca kerja                           18.712.559               (6.111.011)     Post-employment benefits
      Perbedaan penyusutan                                                                   Difference between commercial
        komersial dan fiskal                             302.719               185.418         and fiscal depreciation

    Jumlah                                          45.721.193               32.765.245      Total

    Beban (pendapatan) yang tidak dapat                                                    Non-deductible expense
     diperhitungkan menurut fiskal:                                                         (non-taxable income):
     Akomodasi                                           242.509             10.619.094     Accommodation
     Denda administrasi pajak (Catatan 34)                                                  Tax administration penalty (Note 34)
       Pajak penghasilan badan                                                                 Corporate income tax
         Tahun fiskal 2018                               284.738              -                   Fiscal year 2018
         Tahun fiskal 2012                           -                       11.378.582           Fiscal year 2012
     Pendapatan bunga yang telah                                                            Interest income subjected
       dikenakan pajak final                        (2.804.082)              (2.279.550)       to final tax
     Lain-lain                                      11.860.837               14.089.620     Others

    Jumlah                                           9.584.002               33.807.746      Total

    Laba kena pajak                                533.910.723            1.043.825.690    Taxable income

   Perhitungan beban dan utang pajak kini adalah                           Current tax expense and payable are computed as
   sebagai berikut:                                                        follows:

                                                31 Desember/             31 Desember/
                                              December 31, 2023        December 31, 2022
                                                   Rp '000                  Rp '000

    Beban pajak kini pada tarif pajak                                                       Current tax expense at
      efektif 22%                                  117.460.359              229.641.652       statutory tax rate of 22%
    Dikurangi pembayaran pajak dimuka                                                       Less prepaid taxes
      Pajak penghasilan                                                                       Income taxes
        Pasal 23                                     4.626.726                4.424.987          Article 23
        Pasal 25                                    77.842.509              162.920.114          Article 25
      Jumlah                                        82.469.235              167.345.101       Total
    Utang pajak kini (Catatan 15)                   34.991.124                62.296.551    Current tax payable (Note 15)

   Perhitungan Pajak Penghasilan (“PPh”) badan                             The Company’s corporate income tax (“CIT”)
   Perusahaan adalah suatu perhitungan sementara                           calculation is a preliminary estimate made for
   yang dibuat untuk tujuan akuntansi dan dapat                            accounting purposes and is subject to revision when
   berubah pada waktu Perusahaan menyampaikan                              the Company files its annual corporate income tax
   surat pemberitahuan tahunan pajak.                                      return.




                                                              - 73 -
Page 584
PT BUSSAN AUTO FINANCE                                                                                      PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                                        NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                                                FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                                             DECEMBER 31, 2023 AND 2022 - Continued

   Pajak Tangguhan                                                                   Deferred Tax

   Rincian dari aset pajak tangguhan Perusahaan                                      Details of the Company’s deferred tax assets - net are
   adalah sebagai berikut:                                                           as follows:

                                                                              Dikreditkan
                                                      Dikreditkan            (dibebankan)
                                                     (dibebankan)           ke penghasilan
                                                     ke laba rugi/        komprehensif lain/
                                                       Credited           Credited (charged)
                                    1 Januari/         (charged)                to other           31 Desember/
                                    January 1      to profit or loss       comprehensive           December 31
                                      2023            for the year              income                2023
                                     Rp '000           Rp '000                    Rp '000            Rp '000
    Cadangan kerugian kredit                                                                                       Allowance for expected
      ekspektasian                  142.538.951         23.578.966                   -               166.117.917     credit losses
    Nilai wajar kontrak                                                                                            Fair value of derivative financial
      lindung nilai derivatif        17.226.044            -                       (8.584.586)         8.641.458     instrument hedging contract
    Imbalan pasca kerja              29.686.454          4.116.763                  2.078.551         35.881.768   Post-employment benefits
                                                                                                                   Depreciation of property
    Penyusutan aset tetap               415.257             66.598                   -                   481.855     and equipment
    Akrual                           37.136.523        (17.703.664)                  -                19.432.859   Accrual

    Aset pajak tangguhan - bersih   227.003.229         10.058.663                 (6.506.035)       230.555.857   Deferred tax assets - net



                                                                                 Dikreditkan
                                                     Dikreditkan                (dibebankan)
                                                    (dibebankan)            ke penghasilan
                                                    ke laba rugi /        komprehensif lain /
                                                      Credited            Credited (charged)
                                    1 Januari/        (charged)               to other             31 Desember/
                                    January 1      to profit or loss       comprehensive           December 31
                                      2022           for the year                 income              2022
                                     Rp '000           Rp '000                    Rp '000            Rp '000
    Cadangan kerugian kredit                                                                                       Allowance for expected
     ekspektasian                   138.844.795           3.694.156                  -               142.538.951      credit losses
    Nilai wajar kontrak                                                                                            Fair value of derivative financial
      lindung nilai derivatif          2.837.631           -                       14.388.413         17.226.044     instrument hedging contract
    Imbalan pasca kerja               33.307.686         (1.344.422)               (2.276.810)        29.686.454   Post-employment benefits
                                                                                                                   Depreciation of property
    Penyusutan aset tetap                374.465               40.792                -                   415.257    and equipment
    Akrual                            32.318.695          4.817.828                  -                37.136.523   Accrual

    Aset pajak tangguhan - bersih   207.683.272           7.208.354                12.111.603        227.003.229   Deferred tax assets - net




                                                                       - 74 -
Page 585
PT BUSSAN AUTO FINANCE                                                                       PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                         NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                                 FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                              DECEMBER 31, 2023 AND 2022 - Continued

   Rekonsiliasi antara beban pajak dan hasil perkalian                    A reconciliation between the total tax expense and the
   laba akuntansi sebelum pajak dengan tarif pajak yang                   amounts computed by applying the effective tax rates
   berlaku adalah sebagai berikut:                                        to profit before tax is as follows:

                                                   2023                  2022
                                                  Rp '000               Rp '000
    Laba sebelum pajak pada laporan laba                                               Profit before tax per statements of profit
      rugi dan penghasilan komprehensif lain      478.605.528          977.252.699       or loss and other comprehensive income
    Pajak penghasilan dengan tarif pajak
      efektif 22%                                (105.293.216)         (214.995.594)   Tax expenses at effective tax rate 22%

    Pengaruh pajak atas (pendapatan) beban
     yang tidak dapat diperhitungkan                                                   Tax effect of (nondeductible expense)
     menurut fiskal:                                                                     non taxable income:
     Penghasilan bunga yang telah
       dikenakan pajak final                         616.898                501.501      Interest income subjected to final tax
     Akomodasi                                       (53.352)            (2.336.201)     Accomodation
     Denda administrasi pajak (Catatan 34)                                               Tax administration penalty (Note 34)
       Pajak penghasilan badan                                                              Corporate income tax
         Tahun fiskal 2018                              (62.642)            -                 Fiscal year 2018
         Tahun fiskal 2012                            -                  (2.503.288)          Fiscal year 2012
     Lain-lain                                     (2.609.384)           (3.099.716)     Others
    Jumlah                                         (2.108.480)           (7.437.704)     Total

    Penyesuaian pajak penghasilan badan                                                  Adjustment on corporate income tax
     Tahun fiskal 2018 (Catatan 34)                  (651.872)              -             Fiscal year 2018 (Note 34)
     Tahun fiskal 2012 (Catatan 34)                   -                 (71.728.696)      Fiscal year 2012 (Note 34)
    Jumlah beban pajak                           (108.053.568)         (294.161.994)   Total tax expenses



27. PENGHASILAN KOMPREHENSIF LAIN                                  27. OTHER COMPREHENSIVE INCOME

   Akun ini terdiri atas penghasilan komprehensif lain                   This account comprises of items of other
   yang diakumulasi dalam ekuitas. Rincian penghasilan                   comprehensive income that are accumulated in equity.
   komprehensif lain yang diakumulasi dalam ekuitas                      The details of other comprehensive income
   adalah sebagai berikut:                                               accumulated in equity are as follows:

                                                   2023                  2022
                                                  Rp '000               Rp '000

    Liabilitas imbalan pasti                       (4.326.263)            3.043.144    Defined benefits obligation
    Cadangan lindung nilai arus kas               (30.637.896)          (61.074.155)   Cash flow hedging reserve

    Saldo akhir tahun                             (34.964.159)          (58.031.011)   Balance at end of year

   Cadangan lindung nilai arus kas merupakan bagian                      The cash flow hedging reserve represents the
   kumulatif keuntungan dan kerugian instrumen lindung                   cumulative portion of gains and losses on hedging
   nilai yang dianggap efektif dalam lindung nilai arus                  instruments deemed effective in cash flow hedges.
   kas. Keuntungan atau kerugian kumulatif yang                          The cumulative deferred gain or loss on the hedging
   ditangguhkan      atas   instrumen    lindung   nilai                 instrument is reclassified to profit or loss only when the
   direklasifikasi ke laba rugi hanya ketika transaksi                   hedged transaction affects the profit or loss.
   yang dilindungi nilai mempengaruhi laba rugi.

   Keuntungan dan kerugian yang direklasifikasi dari                     Gains and losses reclassified from equity into profit or
   ekuitas ke laba rugi selama tahun berjalan termasuk                   loss during the year are included in the following line
   dalam pos yang bersangkutan di laporan laba rugi                      items in the statements of profit or loss and other
   dan penghasilan komprehensif lain.                                    comprehensive income.




                                                              - 75 -
Page 586
PT BUSSAN AUTO FINANCE                                                                                      PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                                        NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                                                FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                                             DECEMBER 31, 2023 AND 2022 - Continued

   Cadangan lindung nilai arus kas                                                   Cash flow hedging reserve

                                                           2023                    2022
                                                          Rp '000                 Rp '000

   Saldo awal tahun                                       (61.074.155)            (10.060.690)      Balance at beginning of year
   Keuntungan (kerugian) atas lindung nilai arus kas       14.691.332             (68.001.951)      Gain (loss) recognised on cash flow hedges
   Pajak penghasilan terkait keuntungan (kerugian)
    yang diakui pada penghasilan                                                                    Income tax related to gain (loss) recognised
    komprehensif lain                                     (3.232.093)             14.960.429           in other comprehensive income
   Penyelesaian kontrak derivatif                         24.329.513               2.600.073        Settlement of derivative contract
   Pajak penghasilan terkait pelunasan                                                              Income tax related to the settlement
    kontrak derivatif                                      (5.352.493)              (572.016)          of derivative contract

   Saldo akhir tahun                                      (30.637.896)            (61.074.155)      Balance at end of year

   Liabilitas imbalan pasti                                                          Defined benefits obligation

                                                            2023                     2022
                                                           Rp '000                 Rp '000

   Saldo awal tahun                                          3.043.144              (5.029.183)       Balance at beginning of year
   (Kerugian) keuntungan aktuarial atas pengukuran                                                    Actuarial (loss) gain on remeasurement
     kembali liabilitas imbalan pasca kerja                 (9.447.958)             10.349.137           of post employment benefit obligation
   Pajak penghasilan terkait keuntungan                                                               Income tax related to gain
     yang diakui pada penghasilan                                                                        recognised in other comprehensive
     komprehensif lain                                       2.078.551              (2.276.810)          income

   Saldo akhir tahun                                        (4.326.263)              3.043.144        Balance at end of year

   Liabilitas imbalan pasca kerja terdiri dari akumulasi                             The post-employment benefit obligation represents
   porsi keuntungan/kerugian aktuarial yang berasal                                  the cumulative portion actuarial gain/loss from
   dari     imbalan    karyawan.      Porsi    akumulasi                             employee benefits. The cumulative portion of actuarial
   keuntungan/kerugian      aktuarial    dari    imbalan                             gain/loss from employee benefits will not be
   karyawan tidak akan direklasifikasi ke laba rugi.                                 reclassified to the profit or loss.


28. LABA PER SAHAM                                                            28. EARNINGS PER SHARE

   Perhitungan laba per saham dasar dilakukan                                        The computation of basic earnings per shares is based
   berdasarkan informasi di bawah ini:                                               on the following information:

                                                           2023                     2022
                                                          Rp '000                  Rp '000

   Laba bersih periode berjalan                                                                       Profit for the period

   Laba bersih untuk perhitungan laba                                                                 Earnings for computation of basic
     per saham dasar                                      370.551.960              683.090.705          earnings per share

   Jumlah saham (dalam angka penuh)                    Lembar/Shares        Lembar/Shares             Number of shares (in full amount)

   Jumlah rata-rata tertimbang saham                                                                  Weighted average number of ordinary
     biasa untuk perhitungan laba                                                                      shares for computation of basic
     per saham dasar                                           353.571                    353.571      earnings per share

   Laba per saham dasar                                                                               Basic earnings per share
     (dalam angka Rupiah penuh)                              1.048.027                1.931.976         (in full amount of Rupiah)




                                                                         - 76 -
Page 587
PT BUSSAN AUTO FINANCE                                                                                    PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                                      NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                                              FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                                           DECEMBER 31, 2023 AND 2022 - Continued

29. TRANKSAKSI DERIVATIF                                                        29. DERIVATIVE TRANSACTIONS

   Perusahaan menghadapi risiko arus kas terkait                                      The Company is exposed to cash flows risks related to
   dengan nilai tukar mata uang asing dan tingkat suku                                foreign currency exchange rates and interest rates in
   bunga dalam menjalankan kegiatan bisnisnya.                                        the ordinary course of business.

   Untuk mengurangi risiko yang ada, Perusahaan                                       In order to reduce these risks, the Company uses
   menggunakan instrumen derivatif cross currency                                     cross currency swaps to hedge the exposure of the
   swap untuk melindungi arus kas masa mendatang                                      estimated future cash flows of bank loans.
   dari pinjaman bank.

   Saldo nilai wajar instrumen derivatif Perusahaan                                   The fair values of the Company’s derivative
   adalah sebagai berikut:                                                            instruments that are outstanding are summarized
                                                                                      below:

                                                        31 Desember/            31 Desember/
                                                        December 31,            December 31,
                                                            2023                    2022
                                                           Rp '000                 Rp '000

    Piutang derivatif                                        63.341.133            128.527.498    Derivative receivables
    Utang derivatif                                         (14.909.632)            (6.890.047)   Derivative payables

    Jumlah                                                   48.431.501            121.637.451    Total

   Cross currency swap ditetapkan sebagai lindung nilai                               The cross currency swaps were designated as
   arus kas yang efektif. Oleh karenanya, perubahan                                   effective cash flow hedges. Hence, the changes in
   nilai wajar instrument derivatif tersebut dicatat pada                             their fair values were recognized in equity. The
   ekuitas. Estimasi nilai wajar dari instrumen derivatif                             estimated fair values of the derivative instruments are
   dihitung berdasarkan tingkat bunga pasar.                                          calculated based on market rates. Unrealized gain net
   Keuntungan yang belum direalisasi setelah pajak                                    of tax amounting to Rp 30,436,259 thousand (2022:
   sejumlah Rp 30.436.259 ribu (2022: kerugian yang                                   unrealized loss net of tax amounting to
   belum direalisasi setelah pajak sejumlah Rp                                        Rp 51,013,465 thousand) on fair value of the
   51.013.465 ribu) atas nilai wajar instrumen keuangan                               derivative financial instruments are recognized in other
   derivatif dicatat pada penghasilan komprehensif lain.                              comprehensive income.

   Rincian cross-currency           swaps (“CCS”)         adalah                      The details of cross-currency swaps (“CCS”) are as
   sebagai berikut:                                                                   follows:

                                                       31 Desember/December 31, 2023                        31 Desember/December 31, 2022

   Bank-Bank yang menjadi lawan transaksi/
   Banker act as counterparties:             Sumitomo Mitsui Trust Bank, Singapore;               Sumitomo Mitsui Trust Bank, Singapore;
                                             PT Bank BTPN Tbk, Jakarta;                           PT Bank BTPN Tbk, Jakarta;
                                             PT Bank Mizuho Indonesia, Jakarta; dan/and           PT Bank Mizuho Indonesia, Jakarta;
                                             Bank of America N.A., Tokyo                          Bank of America N.A., Tokyo; dan/and
                                                                                                  PT Bank ANZ Indonesia

   Jatuh Tempo/Maturity                      Berbagai tanggal sampai dengan Desember 2025/        Berbagai tanggal sampai dengan Desember 2024/
                                             Various date up to December 2025                     Various date up to December 2024

   Kurs forward/Forward rate
      CCS USD                                Rp 14.270 - Rp 15.620                                Rp 14.073 - Rp 15.620




                                                                          - 77 -
Page 588
PT BUSSAN AUTO FINANCE                                                                                   PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                                     NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                                             FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                                          DECEMBER 31, 2023 AND 2022 - Continued

   Tabel di bawah ini merinci jumlah pokok nosional dan                           The following tables detail the notional principal
   waktu yang tersisa dari kontrak cross currency swaps                           amounts and remaining term of cross currency swap
   yang beredar pada akhir periode pelaporan.                                     contracts outstanding at the end of the reporting
                                                                                  periods.

                                                           31 Desember/December 31, 2023
         Tingkat bunga fluktuatif yang diterima dalam US$/
                   Floating rate received in US$                  Tingkat suku bunga tetap           Nilai pokok
        Tingkat bunga tetap yang dibayarkan dalam Rupiah/        menurut kontrak/Contracted       nosional/Notional
                     Fixed rate paid in Rupiah                       fixed interest rate           principal value        Nilai wajar/Fair value
                                                                                                       Rp '000                   Rp '000

   Satu tahun/One year                                                   5.6% - 8.1%                    1.734.464.625                 54.259.053
   Dua tahun/Two years                                                   7.3% - 7.6%                      745.000.000                 (5.827.552)

   Jumlah/Total                                                                                         2.479.464.625                 48.431.501



                                                           31 Desember/December 31, 2022
         Tingkat bunga fluktuatif yang diterima dalam US$/
                   Floating rate received in US$                  Tingkat suku bunga tetap           Nilai pokok
        Tingkat bunga tetap yang dibayarkan dalam Rupiah/        menurut kontrak/Contracted       nosional/Notional
                     Fixed rate paid in Rupiah                       fixed interest rate           principal value        Nilai wajar/Fair value
                                                                                                       Rp '000                   Rp '000

   Satu tahun/One year                                                    5.3% - 6%                      994.765.500                  87.321.166
   Dua tahun/Two years                                                   5.6% - 8.1%                   1.339.780.000                  34.316.285

   Jumlah/Total                                                                                        2.334.545.500               121.637.451



30. PENGUNGKAPAN TAMBAHAN ATAS AKTIVITAS                                     30. SUPPLEMENTAL DISCLOSURE ON NON CASH
    INVESTASI NON KAS                                                            INVESTING ACTIVITIES

                                                            2023                 2022
                                                           Rp '000              Rp '000

    Aktivitas investasi nonkas:                                                                  Non-cash investing activities:
      Pemindahan dari uang muka ke                                                                 Transfer of advances to property
         aset tetap                                          5.751.345           16.794.348          and equipment
      Pemindahan dari uang muka                                                                    Transfer of advances to computer
         ke perangkat lunak                                 20.472.409           13.759.032          software



31. INFORMASI SEGMEN USAHA                                                   31. BUSINESS SEGMENT INFORMATION

    Perusahaan     melaporkan      segmen                operasi                  The Company reported operating segment into the
    berdasarkan kategori sebagai berikut:                                         following categories:

    ·      Pembiayaan sepeda motor                                                ·    Motor cycle financing

    ·      Pembiayaan lainnya                                                     ·    Other financing activities

    Pembagian aset segmen dicatat berdasarkan                                     The distribution of segment asset presented is based
    piutang pembiayaan neto yang timbul dari kegiatan                             on net receivables arising from financing activities by
    pembiayaan berdasarkan masing-masing kategori di                              each category above.
    atas.

    Pembagian liabilitas segmen dicatat berdasarkan                               The distribution of segment liabilities presented is
    proporsi piutang pembiayaan berdasarkan kategori                              based on the proportion of finance receivables by
    segmen dengan saldo pinjaman bank dan utang                                   category to the outstanding bank loans and payables
    kepada dealer.                                                                to dealers.




                                                                       - 78 -
Page 589
PT BUSSAN AUTO FINANCE                                                                          PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                            NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                                    FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                                 DECEMBER 31, 2023 AND 2022 - Continued

    Informasi mengenai segmen usaha Perusahaan                              Information concerning the Company’s operating
    adalah sebagai berikut:                                                 segment are as follows:
    Informasi berdasarkan jenis pembiayaan:                                 Information based on type of financing:
                                                        31 Desember/December 31, 2023
                                                                  Pembiayaan
                                              Pembiayaan             lainnya/
                                             sepeda motor/      Other financing       Jumlah/
                                           Motorcyle financing      activities         Total
                                                Rp '000              Rp '000          Rp '000

     Pendapatan pembiayaan                      2.790.915.444     1.686.082.928     4.476.998.372   Financing income
     Pendapatan tidak dapat dialokasikan                                                            Unallocated income
      Bunga                                                                             2.804.082     Interest
      Lain-lain                                                                        89.059.602     Others

     Jumlah pendapatan                                                              4.568.862.056   Total revenue

     ASET                                                                                           ASSETS
     Aset segmen                                7.580.999.069     5.380.082.924    12.961.081.993   Segment assets
     Aset tidak dapat dialokasikan                                                  1.140.913.986   Unallocated assets
     Jumlah Aset                                                                   14.101.995.979   Total Assets
     LIABILITAS                                                                                     LIABILITIES
     Liabilitas segmen                          6.376.931.148     4.399.498.625    10.776.429.773   Segment liabilities
     Liabilitas tidak dapat dialokasikan                                              608.188.612   Unallocated liabilities
     Jumlah Liabilitas                                                             11.384.618.385   Total Liabilities

     Beban penyusutan dan amortisasi                                                 107.050.459    Depreciation expense and amortization

     Pengeluaran modal                                                                              Capital expenditures
      Aset tetap                                                                       50.276.313    Property and equipment
      Perangkat lunak komputer                                                         34.154.181    Computer software
     Jumlah pengeluaran modal                                                          84.430.494   Total capital expenditures


                                                        31 Desember/December 31, 2022
                                                                  Pembiayaan
                                              Pembiayaan             lainnya/
                                             sepeda motor/      Other financing       Jumlah/
                                           Motorcyle financing      activities         Total
                                                Rp '000              Rp '000          Rp '000

     Pendapatan pembiayaan                      2.918.264.881     1.330.561.332     4.248.826.213   Financing income
     Pendapatan tidak dapat dialokasikan                                                            Unallocated income
      Bunga                                                                             2.279.550     Interest
      Lain-lain                                                                        85.751.592     Others

     Jumlah pendapatan                                                              4.336.857.355   Total revenue

     ASET                                                                                           ASSETS
     Aset segmen                                7.939.443.602     4.807.796.023    12.747.239.625   Segment assets
     Aset tidak dapat dialokasikan                                                  1.172.269.058   Unallocated assets
     Jumlah Aset                                                                   13.919.508.683   Total Assets
     LIABILITAS                                                                                     LIABILITIES
     Liabilitas segmen                          6.678.061.754     4.007.254.632    10.685.316.386   Segment liabilities
     Liabilitas tidak dapat dialokasikan                                              671.351.987   Unallocated liabilities
     Jumlah Liabilitas                                                             11.356.668.373   Total Liabilities

     Beban penyusutan dan amortisasi                                                 103.580.216    Depreciation expense and amortization

     Pengeluaran modal                                                                              Capital expenditures
      Aset tetap                                                                       54.824.406    Property and equipment
      Perangkat lunak komputer                                                         39.786.288    Computer software
     Jumlah pengeluaran modal                                                          94.610.694   Total capital expenditures


    Seluruh aset dan konsumen Perusahaan berada di                            All of the Company’s assets and customers are
    Indonesia.                                                                located in Indonesia.




                                                                  - 79 -
Page 590
PT BUSSAN AUTO FINANCE                                                                                  PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                                    NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                                            FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                                         DECEMBER 31, 2023 AND 2022 - Continued

32. INSTRUMEN KEUANGAN, MANAJEMEN RISIKO                                     32. FINANCIAL INSTRUMENTS, FINANCIAL RISK AND
    KEUANGAN DAN RISIKO MODAL                                                    CAPITAL RISK MANAGEMENT

   a.   Kategori dan kelas instrumen keuangan                                     a.    Categories        and      classes       of      financial
                                                                                        instruments

                                                             31 Desember/December 31, 2023
                                          Aset keuangan                         Liabilitas keuangan
                                             pada biaya      Derivatif yang         pada biaya
                                             perolehan      digunakan untuk           perolehan
                                            diamortisasi/     lindung nilai/       diamortisasi/
                                         Financial assets      Derivatives            Financial
                                            at amortized         used for           liabilities at       Jumlah/
                                                cost             hedging          amortized cost          Total
                                              Rp'000            Rp'000                 Rp'000            Rp'000

        Aset Keuangan                                                                                                  Financial Assets
        Bank                                 304.205.030           -                     -               304.205.030   Cash in banks
        Piutang pembiayaan - bersih       12.839.773.202           -                     -            12.839.773.202   Financing receivables - net
        Piutang derivatif                        -              63.341.133               -                63.341.133   Derivative receivables
        Piutang lain-lain - bersih           121.308.791           -                     -               121.308.791   Other accounts receivable - net
        Aset lainnya                                                                                                   Other assets
          Uang jaminan                         2.494.272           -                     -                 2.494.272     Refundable deposit
        Jumlah Aset Keuangan              13.267.781.295        63.341.133               -            13.331.122.428   Total Financial Assets

        Liabilitas Keuangan                                                                                            Financial Liabilities
        Pinjaman bank                            -                 -               5.687.175.480       5.687.175.480   Bank loans
        Utang derivatif                          -              14.909.632              -                 14.909.632   Derivative payables
        Utang lain-lain                          -                 -                 270.698.220         270.698.220   Other accounts payable
        Biaya yang masih harus dibayar           -                 -                 314.410.455         314.410.455   Accrued expenses
        Utang obligasi                           -                 -               4.873.687.443       4.873.687.443   Bonds payable
        Jumlah Liabilitas Keuangan               -              14.909.632        11.145.971.598      11.160.881.230   Total Financial Liabilities



                                                             31 Desember/December 31, 2022
                                          Aset keuangan                         Liabilitas keuangan
                                             pada biaya      Derivatif yang         pada biaya
                                             perolehan      digunakan untuk           perolehan
                                            diamortisasi/     lindung nilai/       diamortisasi/
                                         Financial assets      Derivatives            Financial
                                            at amortized         used for           liabilities at       Jumlah/
                                                cost             hedging          amortized cost          Total
                                              Rp'000            Rp'000                 Rp'000            Rp'000

        Aset Keuangan                                                                                                  Financial Assets
        Bank                                 247.201.940           -                     -               247.201.940   Cash in banks
        Piutang pembiayaan - bersih       12.712.917.851           -                     -            12.712.917.851   Financing receivables - net
        Piutang derivatif                        -             128.527.498               -               128.527.498   Derivative receivables
        Piutang lain-lain - bersih            67.100.551           -                     -                67.100.551   Other accounts receivable - net
        Aset lainnya                                                                                                   Other assets
          Uang jaminan                         2.590.117           -                     -                 2.590.117     Refundable deposit
        Jumlah Aset Keuangan              13.029.810.459       128.527.498               -            13.158.337.957   Total Financial Assets

        Liabilitas Keuangan                                                                                            Financial Liabilities
        Pinjaman bank                            -                 -               6.381.483.149       6.381.483.149   Bank loans
        Utang derivatif                          -               6.890.047              -                  6.890.047   Derivative payables
        Utang lain-lain                          -                 -                 235.456.226         235.456.226   Other accounts payable
        Biaya yang masih harus dibayar           -                 -                 360.241.888         360.241.888   Accrued expenses
        Utang obligasi                           -                 -               4.141.274.229       4.141.274.229   Bonds payable
        Jumlah Liabilitas Keuangan               -               6.890.047        11.118.455.492      11.125.345.539   Total Financial Liabilities




                                                                       - 80 -
Page 591
PT BUSSAN AUTO FINANCE                                                                    PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                      NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                              FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                           DECEMBER 31, 2023 AND 2022 - Continued

   b.   Manajemen risiko modal                                        b.   Capital risk management

        Perusahaan mengelola risiko modal untuk                            The Company manages capital risk to ensure that
        memastikan bahwa Perusahaan mampu untuk                            it will be able to continue as a going concern, in
        melanjutkan usahanya, selain itu untuk                             addition to maximizing the profits of the
        memaksimalkan keuntungan pemegang saham                            shareholders through the optimization of the
        melalui optimalisasi antara saldo utang dan                        balance of debt and equity. The Company strategy
        ekuitas. Strategi Perusahaan tidak berubah sejak                   remains unchanged from 2021. The Company's
        2021. Struktur modal Perusahaan terdiri dari                       capital structure consists of bank loans (Note 14),
        pinjaman bank (Catatan 14), utang obligasi                         bonds payable (Note 18) and equity shareholders
        (Catatan 18) dan ekuitas pemegang saham yang                       consisting of capital stock (Note 21), additional
        terdiri dari modal ditempatkan (Catatan 21),                       paid-in capital (Note 21), other comprehensive
        tambahan modal disetor (Catatan 21),                               income (Note 27) and retained earnings.
        penghasilan komprehensif lain (Catatan 27) dan
        saldo laba.

        Dewan Direksi Perusahaan secara berkala                            The Board of Directors of the Company
        melakukan penelaahan atas struktur permodalan                      periodically reviews the Company's capital
        Perusahaan. Sebagai bagian dari penelaahan                         structure. As part of this review, the Board of
        ini, Dewan Direksi mempertimbangkan biaya                          Directors considers the cost of capital and related
        permodalan dan risiko yang berhubungan.                            risk.

   c.   Tujuan dan kebijakan manajemen risiko                         c.   Financial risk management objectives and
        keuangan                                                           policies
        Tujuan utama dari seluruh kebijakan manajemen                      The main objective of the Company’s overall
        risiko keuangan Perusahaan adalah untuk                            financial risk management and policies is to
        memelihara dan melindungi Perusahaan melalui                       maintain and protect the Company through
        identifikasi, analisa dan pemantauan risiko yang                   identifying, analyzing and monitoring the risks
        dapat timbul dari berbagai macam aktivitas yang                    faced by the Company, which might arise from its
        dilakukan oleh Perusahaan.                                         various activities.
        Tujuan dan kebijakan manajemen risiko                              The objectives and policies of financial risk
        keuangan dicapai melalui pembentukan dan                           management is actualized through the formation
        pengembangan pola pikir yang proaktif dan kuat                     and development of a strong and proactive risk
        terhadap risiko, penguatan Tata Kelola                             mindset,      strengthening     Good     Corporate
        Perusahaan       dan Pengendalian        Internal,                 Governance and Internal Control, preserving the
        menumbuhkan nilai kepatuhan terhadap                               value of compliance with regulations, as well as
        peraturan, serta mendirikan struktur proses kerja                  establishing structured and healthy working
        yang sehat. Pola pikir proaktif yang kuat                          processes. This strong and proactive risk mindset
        terhadap risiko dibentuk melalui pembentukan                       is created by building a strong awareness of risk
        kesadaran yang kuat atas risiko yang dimulai                       starting from the Board of Commissioners, and
        dari Dewan Komisaris, dan Dewan Direksi                            Board of Directors to all employees at all level in
        hingga ke seluruh pegawai pada semua                               the organizational hierarchy. Strengthened Good
        tingkatan organisasi. Penguatan Tata Kelola                        Corporate Governance and Internal Control is
        Perusahaan       dan    Pengendalian      Internal                 implemented through training and establishment
        diterapkan melalui pelatihan dan pembuatan                         of management standards and procedures which
        standar dan prosedur oleh manajemen yang                           aim to develop a disciplined and constructive
        bertujuan untuk membangun sebuah lingkungan                        control environment, where all employees
        pengendalian yang konstruktif dan disiplin,                        understand their roles and obligations. The value
        dimana seluruh karyawan memahami peran dan                         of compliance to the existing and prevailing
        kewajiban mereka. Nilai kepatuhan terhadap                         regulations is cultivated and embedded into all
        peraturan yang sudah berlaku dibudidayakan                         employees of the Company, by applying
        dan     ditanamkan       dengan     menerapkan                     “Compliance Hotline” and “Operational Control
        “Compliance Hotline” dan “Operational Control                      Hotline (human resources, marketing, finance,
        Hotline (sumber daya manusia, pemasaran,                           administration, collection)”. Building strong and
        keuangan, administrasi dan penagihan)”.                            healthy processes as well as risk capabilities is
        Membangun proses kerja yang sehat dan kuat                         performed with a continuous assessment of the
        serta memiliki kapabilitas untuk mengelola risiko                  various activities involving risk handling such as
        dilakukan melalui evaluasi yang berkelanjutan                      identification, measurement, monitoring, and risk
        melalui berbagai aktivitas penanganan risiko                       control.
        seperti identifikasi, pengukuran, pengawasan
        dan pengendalian risiko.




                                                             - 81 -
Page 592
PT BUSSAN AUTO FINANCE                                                                                            PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                                              NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                                                      FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                                                   DECEMBER 31, 2023 AND 2022 - Continued

       Risiko pasar                                                                               Market risk

       Risiko pasar ialah risiko atas fluktuasi nilai wajar                                         Market risk is the risk that the fair value of future
       dari arus kas masa mendatang dari instrumen                                                  cash flows of a financial instrument will fluctuate
       keuangan disebabkan oleh perubahan dari                                                      because of changes in market prices.
       harga pasar.

       Risiko pasar terdiri dari empat tipe risiko,                                                 Market risks comprise four types of risk, those are
       diantaranya adalah risiko tingkat bunga, risiko                                              interest rate risk, currency risk, commodity price
       mata uang asing, risiko harga komoditas dan                                                  risk and other price risk, such as equity price risk.
       risko harga lain-lain, seperti risiko harga ekuitas.                                         Financial instruments affected by market risk
       Instrumen keuangan yang dipengaruhi oleh                                                     include bank loans, bonds payable and derivative
       risiko pasar termasuk pinjaman bank, utang                                                   financial instruments.
       obligasi dan instrumen keuangan derivatif.

       Aktivitas Perusahaan terekspos terutama untuk                                                The Company’s activities expose it primarily to the
       risiko keuangan atas perubahan nilai tukar mata                                              financial risks of changes in foreign currency
       uang asing dan suku bunga. Perusahaan                                                        exchange rates and interest rates. The Company
       membuat kontrak instrumen keuangan derivatif                                                 enters into derivative financial instruments
       untuk mengelola eksposur risiko mata uang                                                    contracts to manage its exposure to foreign
       asing dan risiko suku bunga, termasuk cross                                                  currency risk and interest rate risk, including cross
       currency swap untuk melindungi keragaman                                                     currency swap to hedge variability of floating
       suku bunga mengambang yang timbul dari kurs                                                  interest rate arising on the foreign currency
       mengambang atas pinjaman bank yang                                                           denominated bank loan.
       didenominasi dalam mata uang asing.

       i.   Manajemen risiko mata uang asing                                                   i.       Foreign currency risk management

            Risiko mata uang asing adalah risiko atas                                                   Foreign currency risk is the risk that the fair
            nilai wajar aset atau liabilitas keuangan akan                                              value of a financial asset or financial liability
            berfluktuasi karena perubahan nilai tukar                                                   will fluctuate due to changes in foreign
            mata uang asing. Perusahaan terekspos                                                       exchange rates. The Company is exposed to
            pengaruh fluktuasi nilai tukar mata uang                                                    the effect of foreign currency exchange rate
            asing karena transaksi yang didenominasi                                                    fluctuation mainly because of foreign
            mata uang asing, seperti pinjaman bank                                                      currency denominated transactions, such as
            yang didenominasi dalam mata uang asing                                                     bank loans denominated in foreign currencies
            (Catatan 14). Perusahaan menghadapi                                                         (Note 14). The Company is mainly exposed to
            risiko atas Dolar Amerika Serikat (US$).                                                    the United States Dollar (US$). To help
            Untuk      membantu        mengelola     risiko,                                            manage the risk, the Company has a policy to
            Perusahaan memiliki kebijakan untuk                                                         hedge all loan in foreign currency to avoid any
            melindungi seluruh pinjaman dalam valuta                                                    risk of foreign currency fluctuation against
            asing untuk menghindari segala risiko dari                                                  Indonesian Rupiah.
            fluktuasi mata uang asing terhadap Rupiah
            Indonesia.

            Tabel dibawah ini meringkas instrumen                                                       The table below summarizes the Company’s
            keuangan Perusahaan dengan denominasi                                                       foreign currency denominated financial
            dalam mata uang asing (tidak termasuk                                                       instruments (excluding financial instruments
            instrumen keuangan yang digunakan untuk                                                     used for hedging).
            lindung nilai).

                                    31 Desember/December 31 , 2023                         31 Desember/December 31 , 2022
                                                             Setara dengan                                           Setara dengan
                                                              IDR (Rp '000)/                                          IDR (Rp '000)/
                                                                Equivalent                                              Equivalent
                            US$/USD           JPY/JPY       in IDR (Rp '000)         US$/USD            JPY/JPY     in IDR (Rp '000)

            Kas dan bank        125.260          37.070              1.935.071           59.447            37.998           939.631    Cash on hand and in banks
            Pinjaman bank   (166.526.692)        -            (2.567.175.480)    (161.113.925)             -         (2.534.483.149)   Bank loans

                            (166.401.432)        37.070       (2.565.240.409)    (161.054.478)             37.998    (2.533.543.518)




                                                                            - 82 -
Page 593
PT BUSSAN AUTO FINANCE                                                                                 PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                                   NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                                           FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                                        DECEMBER 31, 2023 AND 2022 - Continued

            Kurs yang digunakan oleh Perusahaan                                              The conversion rates used by the Company
            adalah sebagai berikut:                                                          are as follows:

                                                         31 Desember/           31 Desember/
                                                         December 31,           December 31,
                                                             2023                   2022

            1 US$                                                15.416,00               15.731,00   USD 1
            1 JPY                                                   109,55                  117,56   JPY 1

            Tabel     dibawah    ini   menggambarkan                                         The following table demonstrates the
            sensitivitas terhadap perubahan wajar nilai                                      sensitivity to a reasonably possible change in
            tukar Dolar Amerika Serikat terhadap Rp,                                         the US$ - Rp exchange rates, with all
            dengan semua variabel lainnya tetap                                              variables held constant, of the Company’s
            konstan, efek laba sebelum pajak                                                 profit before income tax.
            penghasilan Perusahaan.

                                31 Desember/December 31, 2023                  31 Desember/December 31, 2022
                                                 USD                                           USD
                                    Kenaikan                                        Kenaikan
                                  (Penurunan)/           Efek/Impact              (Penurunan)/           Efek/Impact
                              Increase (Decrease)          Rp'000             Increase (Decrease)          Rp'000

                                          +1%             (25.652.404)               +1%                  (25.335.435)
                                          -1%              25.652.404                -1%                   25.335.435

      ii.   Manajemen risiko tingkat bunga                                         ii.       Interest rate risk management

            Risiko tingkat bunga adalah risiko nilai wajar                                   Interest rate risk is the risk that the fair value
            arus kas masa mendatang dari instrumen                                           or future cash flows of a financial instrument
            keuangan       yang    akan      berfluktuasi                                    will fluctuate because of changes in market
            disebabkan perubahan tingkat bunga pasar.                                        interest rate. The Company is exposed to
            Perusahaan terekspos pengaruh perubahan                                          change in interest rate due to its impact on
            tingkat suku bunga atas dampaknya                                                banks and borrowings that carry floating
            terhadap bank dan pinjaman dengan tingkat                                        interest rate.
            bunga mengambang.

            Berikut ini adalah tabel ilustrasi instrumen                                     The following tables illustrate the Company’s
            keuangan Perusahaan yang dikenakan                                               interest-bearing     financial     instruments
            bunga (tidak termasuk instrumen derivatif):                                      (excluding derivatives financial instruments):

                                                            31 Desember/December 31 , 2023
                                                Tingkat Bunga       Tingkat Bunga
                                                Mengambang/              Tetap/            Jumlah/
                                                Floating Rate         Fixed Rate            Total
                                                   Rp '000              Rp '000            Rp '000

            Aset Keuangan                                                                                        Financial Assets:
            Bank                                   304.205.030              -                     304.205.030    Cash in banks
            Piutang pembiayaan - bersih               -               12.839.773.202           12.839.773.202    Financing receivables - net


            Liabilitas Keuangan                                                                                  Financial Liabilities:
            Pinjaman bank                        2.567.175.480          3.120.000.000           5.687.175.480    Bank loans
            Utang obligasi                            -                 4.873.687.443           4.873.687.443    Bonds payable




                                                                     - 83 -
Page 594
PT BUSSAN AUTO FINANCE                                                                         PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                           NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                                   FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                                DECEMBER 31, 2023 AND 2022 - Continued

                                                     31 Desember/December 31 , 2022
                                         Tingkat Bunga       Tingkat Bunga
                                         Mengambang/              Tetap/            Jumlah/
                                         Floating Rate         Fixed Rate            Total
                                            Rp '000              Rp '000            Rp '000

           Aset Keuangan                                                                                   Financial Assets:
           Bank                             247.201.940               -                  247.201.940       Cash in banks
           Piutang pembiayaan - bersih         -                12.712.917.851        12.712.917.851       Financing receivables - net

           Liabilitas Keuangan                                                                             Financial Liabilities:
           Pinjaman bank                  2.534.483.149             3.847.000.000         6.381.483.149    Bank loans
           Utang obligasi                      -                    4.141.274.229         4.141.274.229    Bonds payable

          Perusahaan mempraktekkan pengelolaan                                      The Company’s practice is to manage its
          tingkat bunga (biaya pendanaan) atas                                      interest rate (cost of fund) on Indonesian
          pinjaman dalam mata uang Rupiah dengan                                    Rupiah denominated loans using fixed rate in
          menggunakan tingkat bunga tetap untuk                                     order to cover interest rate which is charged
          menutup tingkat bunga yang dibebankan                                     to customers. The Company has a policy to
          kepada pelanggan. Perusahaan memiliki                                     hedge through cross currency swap contracts
          kebijakan untuk melakukan lindung nilai                                   to change its cash flow exposure from IDR to
          melalui kontrak cross currency swap untuk                                 USD. Fair value of derivative resulting from
          mengubah eksposur arus kas dari IDR ke                                    cross currency swap contracts are:
          US$. Nilai wajar dari kontrak cross currency
          swap adalah:

                                                    31 Desember/            31 Desember/
                                                    December 31,            December 31,
                                                        2023                    2022
                                                          Rp '000               Rp '000

          Piutang derivatif                                63.341.133          128.527.498      Derivative receivables
          Utang derivatif                                 (14.909.632)          (6.890.047)     Derivative payables

          Analisa sensitivitas pada bagian dibawah ini                              The sensitivity analysis in the following
          berhubungan dengan posisi bank dan                                        sections relate to the position of cash in bank
          pinjaman bank pada tanggal 31 Desember                                    and bank loans as at December 31, 2023 and
          2023 dan 2022. Analisa sensitivitas tersebut                              2022. The sensitivity analysis have been
          disusun dengan menggunakan asumsi                                         prepared by using assumption of a
          perubahan pada suku bunga yang mungkin                                    reasonable possible change in the interest
          terjadi, dimana seluruh variabel lainnya                                  rate with all other variables held constant of
          dianggap tetap, atas jumlah pinjaman bank                                 the total bank loans with cash in bank that
          yang memiliki tingkat bunga mengambang                                    carry floating interest rate.
          dikurangi dengan bank.

                      31 Desember/December 31 , 2023                                  31 Desember/December 31 , 2022
                                           Pengaruh laba                                                   Pengaruh laba
                                     sebelum pajak penghasilan/                                      sebelum pajak penghasilan/
                                           Effect on profit                                                Effect on profit
            Perubahan basis poin/       before income tax                   Perubahan basis poin/       before income tax
            Change in basis points            Rp ('000)                     Change in basis points            Rp ('000)

                       +50                           (11.314.852)                    +50                                    (11.436.406)
                       -50                            11.314.852                     -50                                     11.436.406




                                                              - 84 -
Page 595
PT BUSSAN AUTO FINANCE                                                                   PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                     NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                             FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                          DECEMBER 31, 2023 AND 2022 - Continued

      iii.   Manajemen risiko kredit                                   iii.   Credit risk management

             Risiko kredit                                                    Credit risk

             Risiko kredit adalah risiko dimana                               Credit risk is the risk that a customer or
             pelanggan lalai pada kewajiban kontraktual                       counterparty will default on its contractual
             yang mengakibatkan kerugian finansial                            obligations resulting in financial loss to the
             kepada Perusahaan. Kegiatan utama                                Company. The Company’s main income
             perusahaan       adalah       menghasilkan                       generating activity is lending to customers
             pendapatan dengan memberikan pinjaman                            and therefore credit risk is a principal risk.
             kepada pelanggan dan karena itu risiko                           Credit risk mainly arises from cash in banks,
             kredit merupakan risiko utama. Risiko kredit                     financing    receivables,    and      financing
             terutama timbul dari rekening bank, piutang                      receivables from collateral. The Company
             pembiayaan, dan piutang pembiayaan dari                          considers all elements of credit risk exposure
             jaminan. Perusahaan mempertimbangkan                             such as counterparty default risk, for risk
             semua elemen dari eksposur risiko kredit                         management purposes.
             seperti risiko gagal bayar dari pelanggan
             untuk tujuan manajemen risiko.

             Manajemen risiko kredit                                          Credit risk management

             Komite kredit Perusahaan bertanggung                             The Company’s credit committee is
             jawab untuk mengelola risiko kredit                              responsible for managing the Company’s
             Perusahaan dengan cara:                                          credit risk by:

             ·   Menetapkan          kerangka        kerja                    ·   Establishing a robust control regarding
                 pengendalian yang kuat mengenai                                  the authorisation structure for the
                 struktur otorisasi untuk persetujuan dan                         approval and renewal of credit facilities.
                 perpanjangan fasilitas kredit.

             ·   Memastikan bahwa aplikasi telah                              ·   Ensuring that the application has been
                 melalui proses survei yang memadai                               through a proper survey process to
                 untuk mendapatkan informasi yang                                 gather information needed for credit
                 dibutuhkan untuk analisis kredit.                                analysis.

             ·   Membuat kebijakan kredit untuk                               ·   Creating credit policies to protect the
                 melindungi Perusahaan terhadap risiko                            Company against the identified risks
                 yang       teridentifikasi      termasuk                         including the requirements to obtain
                 persyaratan      untuk     mendapatkan                           collateral from borrowers, to perform
                 agunan      dari     peminjam,      untuk                        robust ongoing credit assessment of
                 melakukan         penilaian         kredit                       borrowers and to continually monitor
                 berkelanjutan yang kuat dari peminjam                            exposures against internal risk limits.
                 dan untuk terus memantau eksposur
                 terhadap batas risiko internal.

             ·   Mengembangkan dan memelihara                                 ·   Developing    and maintaining        the
                 proses Perusahaan untuk mengukur                                 Company’s processes for measuring
                 ECL termasuk pemantauan risiko                                   ECL including monitoring of credit risk,
                 kredit, penggabungan informasi masa                              incorporation  of   forward    looking
                 depan dan metode yang digunakan                                  information and the method used to
                 untuk mengukur ECL.                                              measure ECL.

             ·   Memastikan      bahwa     Perusahaan                         ·   Ensuring that the Company’s has
                 memiliki kebijakan dan prosedur yang                             policies and procedures in place to
                 tepat    untuk     memelihara    dan                             appropriately maintain and validate
                 memvalidasi model yang digunakan                                 models used to assess and measure
                 untuk menilai dan mengukur ECL.                                  ECL.




                                                              - 85 -
Page 596
PT BUSSAN AUTO FINANCE                                                                                             PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                                               NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                                                       FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                                                    DECEMBER 31, 2023 AND 2022 - Continued

           ·       Membentuk penilaian akuntansi risiko                                                  ·           Establishing a sound credit risk
                   kredit dan proses pengukuran yang                                                                 accounting        assessment           and
                   memberikan dasar yang kuat untuk                                                                  measurement process that provides it
                   sistem generik, alat dan data untuk                                                               with a strong basis for common systems,
                   menilai risiko kredit dan untuk                                                                   tools and data to assess credit risk and
                   memperhitungkan ECL. Memberikan                                                                   to account for ECL. Providing advice,
                   saran, panduan dan keterampilan                                                                   guidance and specialist skills to business
                   spesialis untuk satuan bisnis untuk                                                               units to promote best practice throughout
                   mempromosikan praktik terbaik di                                                                  the Company in the management of
                   seluruh Perusahaan dalam pengelolaan                                                              credit risk.
                   risiko kredit.

          Fungsi audit internal melakukan audit rutin                                                   The internal audit function performs regular
          memastikan bahwa pengendalian dan                                                             audits making sure that the established
          prosedur yang ditetapkan dirancang dan                                                        controls and procedures are adequately
          diimplementasikan secara memadai.                                                             designed and implemented.

          Tabel berikut berisi analisa umur atas aset                                                   The table below shows the aging analysis of
          keuangan Perusahaan (sebelum cadangan                                                         the Company’s financial assets (before any
          kerugian kredit ekspektasian):                                                                allowance for expected credit losses):

                                                                  31 Desember/December 31 , 2023
                                    Belum jatuh       Telah jatuh tempo tetapi tidak mengalami
                                  tempo dan tidak                  penurunan nilai/
                                     mengalami                Past due but not impaired
                                  penurunan nilai/   Kurang dari      31 sampai       Lebih dari Mengalami
                                      Neither          30 hari/     dengan 60 hari/    60 hari/  penurunan
                                    Past due nor     Less than          31 to         More than     nilai/                    Jumlah/
                                     Impaired          30 days         60 days         60 days    Impaired                     Total
                                      Rp' 000          Rp' 000         Rp' 000         Rp' 000     Rp' 000                    Rp' 000

          Bank                       304.205.030             -               -                    -              -            304.205.030    Cash in banks
          Piutang derivatif           63.341.133             -               -                    -              -             63.341.133    Derivative receivables
          Piutang                                                                                                                            Receivables
            Piutang pembiayaan    11.390.724.193      622.636.182    490.859.717          335.553.110 1.254.267.594        14.094.040.796     Financing receivables
            Piutang lain-lain        121.308.791          -               -                    -         34.078.735           155.387.526     Other accounts receivable
          Aset lainnya                                                                                                                       Other assets
            Uang jaminan               2.494.272           -              -                    -             -                  2.494.272     Refundable deposit
          Jumlah                  11.882.073.419       622.636.182    490.859.717          335.553.110 1.288.346.329       14.619.468.757    Total



                                                                 31 Desember/December 31 , 2022
                                   Belum jatuh        Telah jatuh tempo tetapi tidak mengalami
                                 tempo dan tidak                   penurunan nilai/
                                    mengalami                 Past due but not impaired
                                 penurunan nilai/    Kurang dari      31 sampai       Lebih dari Mengalami
                                     Neither           30 hari/     dengan 60 hari/    60 hari/  penurunan
                                   Past due nor      Less than          31 to         More than     nilai/                   Jumlah/
                                    Impaired           30 days         60 days         60 days    Impaired                    Total
                                     Rp' 000           Rp' 000         Rp' 000         Rp' 000     Rp' 000                   Rp' 000

         Bank                       247.201.940          -               -                    -              -               247.201.940    Cash in banks
         Piutang derivatif          128.527.498          -               -                    -              -               128.527.498    Derivative receivables
         Piutang                                                                                                                            Receivables
           Piutang pembiayaan    11.320.731.597      606.762.564     478.976.713          306.446.977 1.138.148.859       13.851.066.710     Financing receivables
           Piutang lain-lain         67.100.551          -                -                    -         16.061.108           83.161.659     Other accounts receivable
         Aset lainnya                                                                                                                       Other assets
           Uang jaminan               2.590.117           -              -                    -             -                  2.590.117     Refundable deposit
         Jumlah                  11.766.151.703       606.762.564    478.976.713          306.446.977 1.154.209.967       14.312.547.924    Total




                                                                                 - 86 -
Page 597
PT BUSSAN AUTO FINANCE                                                         PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                           NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                   FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                DECEMBER 31, 2023 AND 2022 - Continued

         Peningkatan risiko kredit yang signifikan                  Significant Increase in Credit Risks

         Perusahaan      memonitor      semua       aset            The Company monitors all financial assets
         keuangan yang tunduk pada persyaratan                      that are subject to impairment requirements
         penurunan nilai untuk menilai apakah ada                   to assess whether there has been a
         peningkatan risiko kredit yang signifikan sejak            significant increase in credit risk since initial
         pengakuan awal. Jika ada peningkatan risiko                recognition. If there has been a significant
         kredit yang signifikan Perusahaan akan                     increase in credit risk the Company will
         mengukur cadangan kerugian sepanjang                       measure the loss allowance based on lifetime
         umur daripada ECL 12-bulan.                                rather than 12-month ECL.

         Perusahaan           mengembangkan          dan            The Company develop and maintain the
         memelihara penilaian risiko kredit untuk                   Company’s credit risk grading to categorize
         mengkategorikan eksposur sesuai dengan                     exposures according to their degree of risk of
         tingkat risiko gagal bayar. Kerangka penilaian             default. The Company’s credit risk grading
         risiko kredit Perusahaan terdiri dari sub                  framework comprises by sub-group, which
         kelompok yang ditentukan berdasarkan                       are determined based on number of
         jumlah cicilan yang telah jatuh tempo.                     installment overdue. The credit grading
         Informasi peringkat kredit didasarkan pada                 information is based on a range of data that
         serangkaian data yang ditentukan sebagai                   is determined to be predictive to risk of default
         prediktif terhadap risiko gagal bayar dan                  and applying experienced credit judgement.
         menerapkan penilaian kredit berdasarkan                    The nature of the exposure and type of
         pengalaman. Sifat eksposur dan jenis                       borrower are taken into account in the
         peminjam dipertimbangkan dalam analisis.                   analysis. Credit risk grades are defined using
         Tingkat       risiko    kredit    didefinisikan            qualitative and quantitative factors that are
         menggunakan faktor kualitatif dan kuantitatif              indicative of risk of defaults.
         yang menunjukkan risiko gagal bayar.

         Perusahaan menggunakan jumlah cicilan                      The Company uses number of installment
         yang telah jatuh tempo sebagai input utama                 overdue as a primary input into the
         ke dalam penentuan struktur jangka waktu PD                determination of the term structure of the PD
         untuk eksposur. Perusahaan mengumpulkan                    for exposures. The Company collects
         informasi kinerja dan standar tentang                      performance and default information about its
         eksposur risiko kredit yang dianalisis oleh                credit risk exposure analysed by jurisdiction
         yurisdiksi atau wilayah dan menurut jenis                  or region and by type of product and borrower
         produk dan peminjam serta penilaian risiko                 as well as by credit risk grading. The
         kredit. Informasi yang digunakan berasal dari              information used is both internal and external
         internal dan eksternal tergantung pada                     depending on the portfolio assessed.
         portofolio yang dinilai.

         Perusahaan menganggap bahwa risiko kredit                  The Company presume that the credit risk on
         pada aset keuangan telah meningkat secara                  a financial assets has increase significantly
         signifikan sejak pengakuan awal ketika                     since initial recognition when contractual
         pembayaran kontraktual tertunggak lebih dari               payments are more than 30 days, unless the
         30 hari, kecuali jika Perusahaan memiliki                  Company has reasonable and supportable
         informasi yang wajar dan terdukung yang                    information that demonstrates otherwise. The
         menunjukkan        sebaliknya.     Perusahaan              Company uses forward-looking that is
         menggunakan informasi masa depan yang                      available without undue cost or effort in its
         tersedia tanpa biaya atau upaya berlebihan                 assessment of significant increase of credit
         dalam penilaian peningkatan risiko kredit                  risk by updating qualitative and quantitative
         yang signifikan dengan memperbarui                         economic information to update the credit
         informasi ekonomi kualitatif dan kuantitatif               grading. A deteriorate changes in the credit
         untuk     memperbarui       peringkat   kredit.            grading will consider as significant increase in
         Perubahan yang memburuk pada peringkat                     credit risk.
         kredit akan dianggap sebagai peningkatan
         risiko kredit yang signifikan.




                                                           - 87 -
Page 598
PT BUSSAN AUTO FINANCE                                                       PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                         NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                 FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                              DECEMBER 31, 2023 AND 2022 - Continued

         Pengukuran Kerugian Kredit Ekspektasian                  Measurement of Expected Credit Loss
         (ECL)                                                    (ECL)

         Input utama yang digunakan oleh Perusahaan               The key inputs used by the Company for
         untuk mengukur ECL adalah:                               measuring ECL are:

         ·   Probability of Default (PD)                          ·    Probability of Default (PD)
         ·   Loss given Default (LGD)                             ·    Loss given Default (LGD)
         ·   Exposure at Default (EAD)                            ·    Exposure at Default (EAD)

         Probability of Default (PD)                              Probability of Default (PD)

         PD adalah perkiraan kemungkinan gagal                    PD is an estimate of the likelihood of default
         bayar pada horizon waktu tertentu.                       over a given time horizon. It is estimated as
         Diperkirakan pada suatu waktu tertentu dan               at a point in time and the calculation of PD is
         perhitungan PD dilakukan berdasarkan setiap              done based on each credit grading and
         peringkat kredit dan segmen. Estimasi ini                segment. The estimation is calculating based
         dihitung berdasarkan data historis gagal                 on 12-month historical default event data of
         bayar selama 12 bulan untuk perhitungan PD               12-month for calculation 12-month PD and
         12 bulan dan data historis gagal bayar tiga              three years historical default event data for
         tahun untuk perhitungan PD sepanjang                     calculation lifetime PD.
         umurnya.

         Loss Given Default (LGD)                                 Loss Given Default (LGD)

         LGD adalah estimasi kemungkinan kerugian                 LGD is an estimate likely loss on the amount
         pada jumlah eksposur, yang umumnya                       of exposure, which is generally expressed as
         dinyatakan sebagai persentase dari EAD.                  a percentage of EAD. It is based on the
         LGD didasarkan pada perbedaan antara arus                difference between contractual cash flow due
         kas kontraktual yang jatuh tempo dan yang                and those that the lender would expect to
         diharapkan akan diterima oleh pemberi                    receive, taking into account cash flows from
         pinjaman, dengan memperhitungkan arus kas                any collateral.
         dari jaminan.

         Exposure at Default (EAD)                                Exposure at Default (EAD)

         EAD adalah jumlah eksposur Perusahaan                    EAD is the amount to which the Company
         dari peminjam pada saat gagal bayar.                     was exposed to the borrower at the time of
         Perusahaan menggunakan model EAD yang                    default. The Company uses EAD models that
         mencerminkan karakteristik portofolio.                   reflect the characteristic of the portofolios.

         Penggabungan informasi masa depan                        Incorporation        of       forward-looking
                                                                  information

         Perusahaan menggunakan informasi masa                    The      Company       uses    forward-looking
         depan yang tersedia tanpa biaya atau upaya               information that is available without undue
         berlebihan dalam penilaian peningkatan risiko            cost or effort in its assessment of significant
         kredit yang signifikan serta dalam pengukuran            increase of credit risk as well as in its
         ECL. Perusahaan melakukan probabilitas                   measurement of ECL. The Company applies
         untuk skenario ramalan yang diidentifikasi.              probabilities to the forecast scenarios
         Perusahaan telah mengidentifikasi dan                    identified. The Company has identified and
         mendokumentasikan penentu utama risiko                   documented key drivers of credit risk and
         kredit dan kerugian kredit untuk setiap                  credit losses for each portfolio of financial
         portofolio instrumen keuangan dan, dengan                instruments and, using a statistical analysis of
         menggunakan analisis statistik data historis,            historical data, has estimated relationships
         telah memperkirakan hubungan antara                      between macro-economic variables and
         variabel makro-ekonomi dan risiko kredit dan             credit risk and credit losses. The Company
         kerugian kredit. Perusahaan tidak melakukan              has not made changes in the estimation
         perubahan pada teknik estimasi atau asumsi               techniques or significant assumptions made
         signifikan yang dilakukan selama periode                 during the reporting period.
         pelaporan.




                                                         - 88 -
Page 599
PT BUSSAN AUTO FINANCE                                                                    PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                      NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                              FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                           DECEMBER 31, 2023 AND 2022 - Continued

         Perusahaan memiliki prosedur pemantauan                                The Company has monitoring procedures in
         untuk memastikan bahwa kriteria yang                                   place to make sure that the criteria used to
         digunakan         untuk      mengidentifikasi                          identify significant increases in credit are
         peningkatan kredit yang signifikan efektif,                            effective, meaning that significant increase in
         yang berarti bahwa peningkatan risiko kredit                           credit risk is identified before the exposure is
         yang signifikan diidentifikasi sebelum                                 defaulted or when the asset becomes 30 days
         eksposur gagal atau ketika aset menjadi                                past due. The Company performs periodic
         30 hari jatuh tempo. Perusahaan melakukan                              back-testing of its ratings to consider whether
         pengujian kembali pemeringkatan secara                                 the drivers of credit risk that led to default
         berkala untuk mempertimbangkan apakah                                  were accurately reflected in the rating in a
         risiko kredit yang menyebabkan gagal bayar                             timely manner.
         secara akurat tercermin dalam peringkat pada
         waktu yang tepat.

         Pengelompokan berdasarkan karakteristik                                Grouping based          on     shared     risks
         risiko bersama                                                         characteristics

         Ketika ECL diukur secara kolektif, instrumen                           When ECL are measured on a collective
         keuangan      dikelompokkan     berdasarkan                            basis, the financial instruments are grouped
         karakteristik risiko bersama, seperti jenis                            on the basis of shared risk characteristics,
         instrumen, sifat pembiayaan, segmen atau                               such as instrument type, nature of financing,
         jenis piutang pembiayaan, dan jumlah cicilan                           segment or type of financing receivable, and
         yang telah jatuh tempo. Pengelompokan                                  number of installment overdue. The Grouping
         ditinjau secara teratur untuk memastikan                               are reviewed on a regular basis to ensure that
         bahwa masing-masing kelompok terdiri dari                              each group is composed of homogeneous
         paparan yang homogen.                                                  exposures.

          Kerangka peringkat risiko kredit kini                                 The Company’s current credit risk grading
          Perusahaan terdiri dari kategori berikut:                             framework   comprises    the     following
                                                                                categories:

             Kategori/                                                                       Dasar pengakuan ECL/
             Category                         Deskripsi/Description                          Basis for recognizing ECL

          Lancar/          Pihak lawan memiliki risiko gagal bayar yang rendah dan           ECL 12 bulan/
          Performing       tidak memiliki tunggakan./                                        12-month ECL
                           The counterparty has a low risk of default and does not
                           have any past-due amounts.

          Dicadangkan/     Jumlah yang tertunggak > 30 hari atau telah ada                   ECL sepanjang umur -
          Doubtful         peningkatan risiko kredit yang signifikan sejak                   kredit tidak memburuk/
                           pengakuan awal./                                                  Lifetime ECL - not
                           Amount is >30 days past due or there has been a                   credit-impaired
                           significant increase in credit risk since initial recognition.

          Gagal bayar/     Jumlah yang tertunggak > 90 hari atau ada bukti yang              ECL sepanjang umur - kredit
          In default       mengindikasikan aset mengalami penurunan nilai kredit./           memburuk/
                           Amount is >90 days past due or there is evidence                  Lifetime ECL - credit-impaired
                           indicating the asset is credit-impaired.

          Penghapusan/     Ada bukti yang mengindikasikan bahwa debitur dalam                Saldo dihapuskan/
          Write-off        kesulitan keuangan yang buruk dan Perusahaan tidak                Amount is written off
                           memiliki prospek pemulihan yang realistis./
                           There is evidence indicating that the debtor is in severe
                           financial difficulty and the Company has no realistic
                           prospect of recovery.




                                                            - 89 -
Page 600
PT BUSSAN AUTO FINANCE                                                                                                 PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                                                   NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                                                           FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                                                        DECEMBER 31, 2023 AND 2022 - Continued

          Tabel di bawah merinci kualitas kredit aset                                                        The tables below detail the credit quality of
          keuangan Perusahaan serta eksposur                                                                 the Company’s financial assets as well as the
          maksimum Perusahaan terhadap risiko kredit                                                         Company’s maximum exposure to credit risk
          menurut peringkat peringkat risiko kredit:                                                         by credit risk rating grades:

                                                         Kerugian kredit ekspektasian              Peringkat
                                                       12 bulan atau sepanjang umurnya/          kredit internal/   Nilai tercatat/     Cadangan            Nilai tercatat
           31 Desember 2023/              Catatan/               12-month or                    Internal credit       Carrying           kerugian/             bersih/
           December 31, 2023               Notes                 lifetime ECL                       grading           amount          Loss allowance    Net carrying amount
                                                                                               Kategori/Category       Rp '000            Rp '000              Rp '000

           Bank/                                     Kerugian kredit ekspektasian            Lancar/
            Cash in banks                    5       12 bulan/12-month ECL                    Performing               304.205.030          -                  304.205.030

           Piutang pembiayaan/                       Kerugian kredit ekspektasian            Lancar/
           Financing receivables             6       12 bulan/12-month ECL                    Performing            12.555.056.151      (541.695.776)       12.013.360.375

                                                     Kerugian kredit ekspektasian            Dicadangkan/
                                                     sepanjang umurnya - tidak                Doubtful                 945.129.859      (261.906.163)          683.223.696
                                                     mengalami penurunan nilai/
                                                     Lifetime ECL - not credit impaired

                                                     Kerugian kredit ekspektasian            Gagal bayar/
                                                     sepanjang umurnya - mengalami            Default                  593.854.786      (450.665.655)          143.189.131
                                                     penurunan nilai/
                                                     Lifetime ECL - credit impaired

           Piutang derivatif/                        Kerugian kredit ekspektasian            Lancar/                    63.341.133          -                   63.341.133
            Derivative receivables          29       12 bulan/12-month ECL                    Performing

           Piutang lain-lain/                        Kerugian kredit ekspektasian            Lancar/
            Other receivables                7       12 bulan/12-month ECL                    Performing                59.463.323          -                   59.463.323

                                                     Kerugian kredit ekspektasian
                                                     sepanjang umurnya - mengalami
                                                     penurunan nilai/                        Gagal bayar/
                                                     Lifetime ECL - credit impaired           Default                   95.924.203       (34.078.735)           61.845.468

           Aset lainnya - Uang jaminan/
            Other assets - Refundable                Kerugian kredit ekspektasian            Lancar/
               deposit                               12 bulan/12-month ECL                    Performing                  2.494.272         -                    2.494.272
                                                     Jumlah/Total                                                   14.619.468.757    (1.288.346.329)       13.331.122.428




                                                         Kerugian kredit ekspektasian              Peringkat
                                                       12 bulan atau sepanjang umurnya/          kredit internal/   Nilai tercatat/     Cadangan            Nilai tercatat
           31 Desember 2022/              Catatan/               12-month or                    Internal credit       Carrying           kerugian/             bersih/
           December 31, 2022               Notes                 lifetime ECL                       grading           amount          Loss allowance    Net carrying amount
                                                                                               Kategori/Category       Rp '000            Rp '000              Rp '000

           Bank/                                     Kerugian kredit ekspektasian            Lancar/
            Cash in banks                    5       12 bulan/12-month ECL                    Performing               247.201.940          -                  247.201.940

           Piutang pembiayaan/                       Kerugian kredit ekspektasian            Lancar/
           Financing receivables             6       12 bulan/12-month ECL                    Performing            12.411.949.885      (484.455.724)       11.927.494.161

                                                     Kerugian kredit ekspektasian            Dicadangkan/
                                                     sepanjang umurnya - tidak                Doubtful                 909.654.867      (249.936.361)          659.718.506
                                                     mengalami penurunan nilai/
                                                     Lifetime ECL - not credit impaired

                                                     Kerugian kredit ekspektasian            Gagal bayar/
                                                     sepanjang umurnya - mengalami            Default                  529.461.958      (403.756.774)          125.705.184
                                                     penurunan nilai/
                                                     Lifetime ECL - credit impaired

           Piutang derivatif/                        Kerugian kredit ekspektasian            Lancar/
            Derivative receivables          29       12 bulan/12-month ECL                    Performing               128.527.498          -                  128.527.498

           Piutang lain-lain/                        Kerugian kredit ekspektasian            Lancar/
            Other receivables                7       12 bulan/12-month ECL                    Performing                37.613.637          -                   37.613.637

                                                     Kerugian kredit ekspektasian
                                                     sepanjang umurnya - mengalami
                                                     penurunan nilai/                        Gagal bayar/
                                                     Lifetime ECL - credit impaired           Default                   45.548.022       (16.061.108)           29.486.914

           Aset lainnya - Uang jaminan/
            Other assets - Refundable                Kerugian kredit ekspektasian            Lancar/
               deposit                               12 bulan/12-month ECL                    Performing                  2.590.117         -                    2.590.117
                                                     Jumlah/Total                                                   14.312.547.924    (1.154.209.967)       13.158.337.957




                                                                                    - 90 -
Page 601
PT BUSSAN AUTO FINANCE                                                                   PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                     NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                             FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                          DECEMBER 31, 2023 AND 2022 - Continued

         ·   Eksposur maksimum terhadap risiko                                 ·    Maximum exposure to credit risk
             kredit

             Risiko eksposur Perusahaan terhadap                                    The Company’s exposure to credit risk
             risiko kredit terutama berasal dari piutang                            mainly comes from the financing
             pembiayaan,          dimana      eksposur                              receivables, of which, the maximum
             maksimum terhadap risiko kredit sama                                   exposure to credit risk equals to its
             dengan nilai tercatat setelah dikurangi                                carrying amount net of allowance,
             cadangan kredit, tanpa memperhitungkan                                 without taking into account the value of
             nilai agunan yang diperoleh.                                           collateral obtained.

         ·   Jaminan dan peningkatan kredit lainnya                            ·    Collateral and other credit enhancement

             Jumlah dan jenis agunan yang                                           The amount and type of collateral
             dibutuhkan tergantung pada penilaian                                   required depends on an assessment of
             risiko kredit dari nasabah. Pedoman                                    the credit risk of the counterparty.
             diterapkan mengenai tingkat penerimaan                                 Guidelines are implemented regarding
             dan parameter penilaian.                                               the acceptability of types of collateral
                                                                                    and valuation parameters.

             Umumnya, agunan diperlukan untuk                                       Generally, collateral is required for all
             semua pembayaran kredit dan juga                                       credit repayment and also as a form of
             sebagai bentuk mitigasi risiko kredit.                                 credit risk mitigation. The primary source
             Sumber utama pembayaran kredit adalah                                  of credit repayment is the funds
             dana yang dihasilkan dari pendapatan                                   generated from income of the borrowers.
             dari peminjam.

             Jaminan yang dapat diterima oleh                                       Collateral acceptable by the Company
             Perusahaan dari debitur adalah Sertifikat                              from debtors is the Certificate of
             Kepemilikan ("BPKB") kendaraan yang                                    Ownership (“BPKB”) of the vehicles
             dibiayai oleh Perusahaan.                                              financed by the Company.

         ·   Jaminan                                                           ·    Collateral

             Perusahaan telah menerapkan kebijakan                                  The Company has implemented policies
             untuk mengurangi risiko kredit, termasuk                               to mitigate credit risk, which include
             mengambil jaminan sebagai jaminan                                      taking collaterals as a guarantee for loan
             pelunasan pinjaman jika kewajiban                                      repayment if contractual obligations are
             kontraktual tidak terpenuhi. Jenis agunan                              not met. The types of collateral accepted
             yang     diterima      untuk     pinjaman                              for financing loans to mitigate credit risk
             pembiayaan untuk mengurangi risiko                                     include motorcycle, farm machinery, car
             kredit meliputi sepeda motor, mesin                                    and electronics devices.
             pertanian, mobil dan peralatan elektronik.

                                                     Piutang pembiayaan/Financing receivables
                                                       31 Desember/           31 Desember/
                                                      December 31,           December 31,
                                                           2023                    2022
                                                          Rp'000                 Rp'000

             Eksposur kredit - bruto                       14.094.040.796      13.851.066.710    Credit exposure - gross
             Nilai jaminan berdasarkan                                                           Collateral value based
                penilaian Perusahaan                       14.812.430.143      15.275.010.039      on Company's assessment

             Jumlah eksposur kredit tanpa jaminan              -                    -            Total unsecured credit exposure




                                                              - 91 -
Page 602
PT BUSSAN AUTO FINANCE                                                                       PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                         NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                                 FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                              DECEMBER 31, 2023 AND 2022 - Continued

                  Estimasi nilai wajar jaminan adalah                             The estimated fair value of collateral are as
                  sebagai berikut:                                                follows:

                                                     31 Desember/         31 Desember/
                                                     December31,          December31,
                                                         2023                 2022
                                                        Rp'000               Rp'000
                  Jenis jaminan                                                                   Types of collateral
                  Sepeda motor                         11.570.336.707          11.759.882.608     Motorcyles
                  Mobil                                 3.029.555.090           3.146.698.314     Cars
                  Alat-alat elektronik                    150.654.799             282.217.059     Electronics devices
                  Mesin pertanian                          39.856.985              38.093.255     Farmer machineries
                  Lain-lain                                22.026.562              48.118.803     Others

                  Total                                14.812.430.143          15.275.010.039     Total

                  Persyaratan      agunan      bukanlah                                Collateral requirements are not a
                  merupakan pengganti faktor kemampuan                                 substitute factor for the capability of the
                  debitur dalam hal pembayaran kembali                                 debtor in respect of repayment of credit,
                  kredit,  dimana    hal   ini  menjadi                                where it is a primary consideration in any
                  pertimbangan utama dalam setiap                                      decision to grant credit.
                  keputusan pemberian kredit.

            ·     Konsentrasi risiko kredit                                       ·    Concentration of credit risk

                  Risiko kredit terpusat timbul saat                                   Concentration of credit risk arises when
                  sejumlah nasabah yang memiliki aktivitas                             a number of customers is engaged in
                  bisnis serupa atau beraktivitas dalam                                similar business activities or activities
                  suatu lokasi geografis yang sama, atau                               within the same geographic region, or
                  memiliki karekteristik yang serupa yang                              when they have similar characteristics
                  akan menyebabkan kemampuan untuk                                     that would cause their ability to meet
                  memenuhi kewajiban kontraktualnya                                    contractual obligations to be similarly
                  bersama-sama         dipengaruhi    oleh                             affected by changes in economic or
                  perubahan kondisi ekonomi atau yang                                  other conditions.
                  lainnya.

                  Perusahaan       mengevaluasi      bahwa                             The       Company      evaluates     the
                  konsentrasi risiko terkait dengan piutang                            concentration of risk with respect to its
                  pembiayaan adalah rendah, pelanggan                                  financing receivables as low, as its
                  Perusahaan berada pada beberapa                                      customers are located in several
                  yuridikasi dan industri dan beroperasi di                            jurisdictions and industries and operate
                  pasar yang independen.                                               in largely independent markets.

      iv.       Manajemen risiko likuiditas                              iv.       Liquidity risk management

                Risiko likuiditas adalah risiko dimana                            Liquidity risk is the risk that the Company has
                Perusahaan tidak memiliki kapasitas yang                          insufficient capacity to fund increase in
                memadai untuk mendanai penambahan                                 assets, or is unable to meet its payment
                aset atau memenuhi liabilitas mereka yang                         obligations as they fall due.
                telah jatuh tempo.

                Untuk     memitigasi    risiko   likuiditas,                      To mitigate the liquidity risk, the Company
                Perusahaan     menggunakan       beberapa                         diversifies funding resources. Besides
                sumber pendanaan. Selain pembayaran dari                          customer’s installment collections, the
                cicilan      pelanggan,        Perusahaan                         Company generates funding resources from
                mendapatkan sumber dana dari pinjaman                             bank loans. The Company also leverages
                bank. Perusahaan juga memastikan sumber                           long-term funding resources for financing its
                dana dalam jangka panjang digunakan                               long-term receivables. Further, the Company
                untuk membiayai piutang jangka panjang.                           receives strong support from its Parent
                Selanjutnya, Perusahaan mendapatkan                               Company through Letter of Guarantee to
                dukungan yang kuat dari Induk Perusahaan                          secure most of the Company’s funding.
                melalui Surat Jaminan untuk menjamin
                hampir seluruh pembiayaan Perusahaan.




                                                                - 92 -
Page 603
PT BUSSAN AUTO FINANCE                                                                                                             PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                                                               NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                                                                       FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                                                                    DECEMBER 31, 2023 AND 2022 - Continued

           Tabel berikut ini adalah ilustrasi jatuh tempo                                                                The following tables illustrate the maturity
           aset dan liabilitas keuangan Perusahaan                                                                       analysis of the Company’s financial assets
           berdasarkan pembayaran kontrak yang                                                                           and liabilities based on contractual
           tidak didiskonto:                                                                                             undiscounted payments:
                                                                                    31 Desember/December 31, 2023

                                             Tingkat bunga
                                                  efektif
                                                 rata-rata
                                               tertimbang/        Kurang dari       ≥ 6 bulan dan      ≥ 12 bulan dan         Lebih dari
                                                Weighted           6 bulan /         ≤ 12 bulan /        ≤ 36 bulan /         36 bulan /
                                            average effective     Less than        ≥ 6 months and     ≥ 12 months and         More than        Jumlah/
                                              interest rate        6 months          ≤ 12 months        ≤ 36 months           36 months         Total
                                                    %               Rp' 000             Rp' 000            Rp' 000             Rp' 000         Rp' 000

           Aset Keuangan                                                                                                                                       Financial Assets
           Bank                                                     304.205.030          -                   -                    -             304.205.030    Cash in banks
           Piutang pembiayaan - kotor                            17.917.470.144        72.523.653            -                     101.014   17.990.094.811    Financing receivables - gross
                                                                                                                                                               Other accounts receivables -
           Piutang lain-lain - kotor                               155.387.526            -                  -                    -            155.387.526        gross
           Piutang derivatif pada                                                                                                                              Derivative receivables at net
             nilai bersih pelunasan                                 44.646.568           8.030.790           1.771.341            -             54.448.699        settlement amount
           Aset lainnya                                                                                                                                        Other assets
             Uang jaminan                                             2.494.272           -                  -                    -               2.494.272       Refundable deposit

           Jumlah                                                18.424.203.540        80.554.443           1.771.341              101.014   18.506.630.338    Total

           Liabilitas keuangan                                                                                                                                 Financial Liabilities
           Utang lain-lain                                         270.698.220            -                  -                    -            270.698.220     Other accounts payable
           Biaya yang masih harus dibayar                          314.410.454            -                  -                    -            314.410.454     Accrued expenses
           Utang derivatif pada                                                                                                                                Derivative payables at net
             nilai bersih pelunasan                                 701.233.852        452.386.742          4.574.475             -           1.158.195.069       settlement amount
           Pinjaman bank                  2,05% - 8,10%           2.558.462.987      1.507.515.716      1.712.489.815             -           5.778.468.518    Bank loans
           Utang obligasi                 5,75% - 7,75%             877.475.450      1.657.401.023      2.826.436.500             -           5.361.312.973    Bonds payable

           Jumlah                                                 4.722.280.963      3.617.303.481      4.543.500.790             -          12.883.085.234    Total



                                                                                    31 Desember/December 31, 2022

                                             Tingkat bunga
                                                  efektif
                                                 rata-rata
                                               tertimbang/         Kurang dari       ≥ 6 bulan dan      ≥ 12 bulan dan         Lebih dari
                                            Weighted average        6 bulan /         ≤ 12 bulan /        ≤ 36 bulan /         36 bulan /
                                            effective interest     Less than        ≥ 6 months and     ≥ 12 months and         More than        Jumlah/
                                                   rate             6 months          ≤ 12 months        ≤ 36 months           36 months         Total
                                                    %                Rp' 000             Rp' 000            Rp' 000             Rp' 000         Rp' 000

           Aset Keuangan                                                                                                                                        Financial Assets
           Bank                                                      247.201.940          -                      -                    -          247.201.940    Cash in banks
           Piutang pembiayaan - kotor                             17.692.530.120        70.869.096                   97.955           -       17.763.497.171    Financing receivables - gross
                                                                                                                                                                Other accounts receivables -
           Piutang lain-lain - kotor                                 83.161.659               -                  -                    -          83.161.659        gross
           Piutang derivatif pada                                                                                                                               Derivative receivables at net
             nilai bersih pelunasan                                  26.285.354         40.554.176          79.702.436                -         146.541.965        settlement amount
           Aset lainnya                                                                                                                                         Other assets
             Uang jaminan                                              2.590.117              -                  -                    -            2.590.117       Refundable deposit

           Jumlah                                                 18.051.769.190       111.423.272          79.800.391                -       18.242.992.852    Total

           Liabilitas keuangan                                                                                                                                  Financial Liabilities
           Utang lain-lain                                          235.456.226               -                  -                    -         235.456.226     Other accounts payable
           Biaya yang masih harus dibayar                           360.241.888               -                  -                    -         360.241.888     Accrued expenses
           Utang derivatif pada                                                                                                                                 Derivative payables at net
             nilai bersih pelunasan                                    4.047.003          3.596.734          9.123.760                -           16.767.498       settlement amount
           Pinjaman bank                      1,17% - 8,10%        3.225.260.546      1.723.298.748      1.808.705.308                -        6.757.264.602    Bank loans
           Utang obligasi                     4,10% - 8,25%          131.942.500      1.100.375.236      3.393.755.625                -        4.626.073.361    Bonds payable

           Jumlah                                                  3.956.948.163      2.827.270.718      5.211.584.693                -       11.995.803.575    Total




                                                                                        - 93 -
Page 604
PT BUSSAN AUTO FINANCE                                                                          PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                            NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                                    FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                                 DECEMBER 31, 2023 AND 2022 - Continued

      v.   Nilai wajar instrumen keuangan                                     v.      Fair value of financial instruments

           Kecuali disebutkan dalam tabel dibawah ini,                                Except as detailed in the following table,
           manajemen berpendapat bahwa nilai                                          management considers that the carrying
           tercatat aset dan liabilitas keuangan yang                                 amounts of financial assets and financial
           dicatat sebesar biaya perolehan diamortisasi                               liabilities recorded at amortized cost in the
           dalam laporan keuangan mendekati nilai                                     financial statements approximate their fair
           wajarnya karena jatuh tempo dalam jangka                                   values because of their short-term maturities
           pendek atau mempunyai tingkat suku bunga                                   or they carry market rates of interest:
           pasar:

                                           31 Desember/December 31, 2023       31 Desember/December 31, 2022
                                           Nilai tercatat/   Nilai wajar/      Nilai tercatat/   Nilai wajar/
                                             Carrying            Fair            Carrying            Fair
                                              amount            value             amount            value
                                             Rp '000            Rp '000            Rp '000          Rp '000
           Aset Keuangan                                                                                           Financial Assets
           Pada biaya perolehan
              diamortisasi                                                                                         At amortized cost
           Piutang pembiayaan - bersih     12.839.773.202    14.489.536.318   12.712.917.851     14.203.081.188    Financing receivables - net
           Piutang lain-lain - bersih         121.308.791       121.308.791       67.100.551         67.150.415    Other receivables - net

           Liabilitas Keuangan                                                                                     Financial Liabilities
           Pada biaya perolehan
              diamortisasi                                                                                         At amortized cost
           Pinjaman bank jangka pendek      4.104.344.728     4.104.344.728    4.640.221.036       4.640.221.036   Short term bank loans
           Utang obligasi jangka pendek     2.251.000.000     2.251.000.000      970.500.000         970.500.000   Short term bonds payable
           Pinjaman bank jangka panjang     1.582.830.752     1.598.953.402    1.741.262.113       1.708.416.173   Long term bank loans
           Utang obligasi jangka panjang    2.622.687.443     2.622.345.174    3.170.774.229       3.237.939.053   Long term bonds payable

           Nilai wajar dari instrumen keuangan diatas                                 The fair value for the above financial
           ditentukan dengan mendiskonto estimasi                                     instruments, were determined by discounting
           arus kas, dengan menggunakan tingkat                                       estimated cash flows using discount rates
           diskonto untuk instrumen keuangan dengan                                   based on financial instrument with similar
           periode dan jatuh tempo yang serupa.                                       terms and maturities.

           Hirarki Nilai Wajar                                                        Fair Value Hierarchy

           Perusahaan menggunakan hirarki untuk                                       The Company uses the following hierarchy for
           menentukan nilai wajar dari aset dan                                       determining the fair value of financial assets
           kewajiban keuangan:                                                        and financial liabilities:

           Level 1: harga kuotasi (tidak disesuaikan)                                 Level 1: quoted (unadjusted) prices in active
           pada pasar aktif untuk aset dan liabilitas                                 markets for identical assets or liabilities that
           yang identik, dimana entitas dapat                                         the entity can access at the measurement
           mengakses pada tanggal pengukuran.                                         date.

           Level 2: teknik lainnya untuk seluruh                                      Level 2: other techniques for which all inputs
           informasi yang mempunyai pengaruh                                          which have a significant effect on the
           signifikan pada saat mencatat nilai wajar                                  recorded fair value are observable, either
           dapat di observasi baik secara langsung                                    directly or indirectly.
           ataupun tidak lansung.

           Level 3: teknik yang menggunakan informasi                                 Level 3: techniques which use inputs which
           yang mempunyai pengaruh yang signifikan                                    have a significant effect on the recorded fair
           pada saat mencatat nilai wajar yang tidak                                  value that are not based on observable
           didasarkan pada observasi data pasar.                                      market data.




                                                                 - 94 -
Page 605
PT BUSSAN AUTO FINANCE                                                                       PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                         NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                                 FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                              DECEMBER 31, 2023 AND 2022 - Continued

           Tabel berikut ini merupakan hirarki nilai                              The table below sets out the fair value
           wajar dari aset/liabilitas keuangan:                                   hierarchy of the financial assets/liabilities:

                                                      31 Desember/December 31, 2023
                                              Nilai wajar
                                              instrumen
                                            lindung nilai/       Biaya
                                             Fair value-       perolehan
                                               hedging        diamortisasi/      Jumlah/
                                            instruments      Amortised cost       Total
                                              Rp' 000            Rp' 000         Rp' 000
           Aset Keuangan                                                                       Financial Assets
           Tingkat 2:                                                                          Level 2:
             Piutang pembiayaan - bersih          -          14.489.536.318   14.489.536.318     Financing receivables - net
             Piutang lain-lain - bersih                        121.308.791      121.308.791      Other accounts receivable - net
             Piutang derivatif                63.341.133            -            63.341.133      Derivative receivables


           Jumlah Aset Keuangan               63.341.133     14.610.845.109   14.674.186.242   Total Financial Assets


           Liabilitas Keuangan                                                                 Financial Liabilities
           Tingkat 2:                                                                          Level 2:
             Utang obligasi                       -           2.622.345.174    2.622.345.174     Bonds payable
             Pinjaman bank jangka panjang         -           1.598.953.402    1.598.953.402     Long term bank loans
             Utang derivatif                  14.909.632            -            14.909.632      Derivative payables


           Jumlah Liabilitas Keuangan         14.909.632      4.221.298.576    4.236.208.208   Total Financial Liabilities



                                                      31 Desember/December 31, 2022
                                              Nilai wajar
                                              instrumen
                                            lindung nilai/       Biaya
                                             Fair value-       perolehan
                                               hedging        diamortisasi/      Jumlah/
                                            instruments      Amortised cost       Total
                                              Rp' 000            Rp' 000         Rp' 000
           Aset Keuangan                                                                       Financial Assets
           Tingkat 2:                                                                          Level 2:
             Piutang pembiayaan - bersih          -          14.203.081.188   14.203.081.188     Financing receivables - net
             Piutang lain-lain - bersih                         67.100.551       67.100.551      Other accounts receivable - net
             Piutang derivatif              128.527.498             -           128.527.498      Derivative receivables


           Jumlah Aset Keuangan             128.527.498      14.270.181.739   14.398.709.237   Total Financial Assets


           Liabilitas Keuangan                                                                 Financial Liabilities
           Tingkat 1:                                                                          Level 1:
             Utang obligasi                       -           3.237.939.053    3.237.939.053     Bonds payable
           Tingkat 2:                                                                          Level 2:
             Pinjaman bank jangka panjang                     1.708.416.173    1.708.416.173     Long term bank loans
             Utang derivatif                   6.890.047            -              6.890.047     Derivative payables


           Jumlah Liabilitas Keuangan          6.890.047      4.946.355.226    4.953.245.273   Total Financial Liabilities


       Tidak ada transfer pada level aset keuangan dan                         There are no transfer at level of financial assets
       liabilitas keuangan.                                                    and financial liabilities.




                                                              - 95 -
Page 606
PT BUSSAN AUTO FINANCE                                                                 PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                   NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                           FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                        DECEMBER 31, 2023 AND 2022 - Continued

33. SIFAT DAN      TRANSAKSI       MATERIAL      PIHAK          33. NATURE OF RELATIONSHIP AND MATERIALS
    BERELASI                                                        TRANSACTIONS WITH RELATED PARTIES

   Sifat Pihak Berelasi                                             Nature of Relationship

   Mitsui & Co. Ltd., Jepang (MCJ) adalah pemegang                  Mitsui & Co. Ltd., Japan (MCJ) is the Company’s
   saham utama Perusahaan, entitas induk utama,                     majority stockholder, ultimate parent company,
   penjamin utang bank.                                             guarantor of bank loans.

   JA Mitsui Leasing Ltd., Jepang adalah pemegang                   JA Mitsui Leasing Ltd., Japan is the Company’s
   saham Perusahaan dan penjamin utang bank.                        stockholder and guarantor of bank loans.

   Transaksi-transaksi Pihak Berelasi                               Transactions with Related Parties

   a.   Perusahaan menerima dukungan dan bantuan                    a.   The Company receives support and assistance
        dari MCJ, yang antara lain mencakup dukungan                     from MCJ, which among other things, include the
        dan bantuan untuk mengembangkan pelanggan                        support and assistance to promote new business
        dan mempromosikan bisnis baru dan untuk                          and develop new customers and to strengthen
        memperkuat hubungan dengan pelanggan,                            the relationship with the customers, including
        termasuk      bank.    Sebagai      kompensasi,                  banks. As compensation, the Company was
        Perusahaan ditagih beban pengaturan pinjaman                     charged with arrangement and guarantee fees
        dan penjaminan sebesar Rp 8.114.274 ribu                         amounting to Rp 8,114,274 thousand (December
        (Desember 31, 2022: Rp 17.835.919 ribu). Pada                    31, 2022: Rp 17,835,919 thousand). At reporting
        tanggal pelaporan, kewajiban atas transaksi                      date, the liabilities for these transactions were
        tersebut dicatat sebagai bagian dari biaya masih                 presented as part of accrued expenses
        harus dibayar (Catatan 17).                                      (Note 17).

   b.   Perusahaan memberikan fasilitas pinjaman                    b.   The Company provides non-interest bearing loan
        tanpa bunga kepada direksi untuk kepemilikan                     facilities to directors for vehicle ownership. This
        kendaraan bermotor. Jangka waktu pinjaman                        facilitites have varied tenure from 3 - 5 years. The
        bervariasi antara 3 - 5 tahun. Saldo piutang                     outstanding net receivables from directors
        bersih kepada direksi 31 Desember 2023                           December          31,    2023      amounting      to
        sebesar Rp 2.188.398 ribu (31 Desember 2022:                     Rp 2,188,398 thousand (December 31, 2022:
        Rp 2.887.379 ribu) dicatat sebagai bagian dari                   Rp 2,887,379 thousand) were recorded as part of
        piutang lain-lain (Catatan 7).                                   other accounts receivable (Note 7).

   c.   Remunerasi yang diberikan ke Direktur dan                   c.   Remunerations provided to Directors and
        Komisaris Rp 25.229.834 ribu tahun 2023 (2022:                   Commissioners amounting to Rp 25,229,834
        Rp 31.663.813 ribu).                                             thousand in 2023    (2022: Rp 31,663,813
                                                                         thousand).

   d.   Berdasarkan akta notaris No. 28 tanggal                     d.   Based on notarial deed No. 28 dated September
        26 September 2023 dari Marina Soewana, S.H.,                     26, 2023 of Marina Soewana, S.H., notary in
        notaris di Jakarta, pemegang saham menyetujui                    Jakarta, the stockholders approved the transfer
        pengalihan saham Mitsui & Co., Ltd., Jepang                      of shares of Mitsui & Co., Ltd., Japan amounting
        sebesar 70.714 lembar saham kepada JA Mitsui                     to 70,714 shares to JA Mitsui Leasing Ltd.,
        Leasing Ltd., Jepang. Perubahan ini telah                        Japan. Such amendment was acknowledged and
        diterima dan dicatat oleh Kementerian Hukum                      recorded by Ministry of Law and Human Rights
        dan Hak Asasi Manusia Republik Indonesia                         of the Republic of Indonesia based on letter No.
        berdasarkan surat No. AHU-AH.01.03-0122682                       AHU-AH.01.03-0122682 dated September 26,
        tanggal 26 September 2023.                                       2023.




                                                           - 96 -
Page 607
PT BUSSAN AUTO FINANCE                                                               PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                 NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                         FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                      DECEMBER 31, 2023 AND 2022 - Continued

34. AUDIT PAJAK                                               34. TAX AUDIT

   TAHUN FISKAL 2012                                              FISCAL YEAR 2012

   Pada tanggal 11 Desember 2017, Perusahaan                      On December 11, 2017, the Company received Nil Tax
   menerima Surat Ketetapan Pajak Nihil (“SKPN”) atas             Assessment Letters (“SKPN”) as a result of tax audit
   hasil pemeriksaan pajak tahun fiskal 2012. SKPN                for fiscal year 2012. The said SKPN also stated that
   tersebut juga menyatakan bahwa rugi fiskal tahun               the fiscal loss from year 2012 is amounting to Rp
   2012 adalah sebesar Rp 305.999.051 ribu lebih kecil            305,999,051 thousand, which is smaller than the fiscal
   dari yang dilaporkan pada tahun 2012, yaitu sebesar            loss reported in year 2012 amounting to Rp
   Rp 592.913.834 ribu. Pada tanggal 7 Maret 2018,                592,913,384 thousand. On March 7, 2018, the
   Perusahaan mengajukan keberatan ke Kantor Pajak                Company submit objection to Tax Office against this
   atas keputusan ini. Pada tanggal 7 Februari 2019,              decision. The Company filed an appeal against
   Perusahan menerima penolakan atas keputusan ini.               rejection from Tax Office regarding this decision. The
   Perusahaan telah mengajukan banding atas                       Company filed an appeal against rejection from Tax
   penolakan dari Kantor Pajak. Pada tanggal 21 Maret             Office. On March 21, 2022, through the
   2022, melalui penerbitan Putusan Banding No. PUT-              issuance      of    Appeal    Decision    No.    PUT-
   003987.15/2019/PP/M.XIVA, Perusahaan menerima                  003987.15/2019/PP/M.XIVA, the Company received a
   penolakan dari Pengadilan Pajak. Sebagai respon                rejection from the Tax Court. As a response to the
   atas penolakan banding, Perusahaan mengajukan                  rejection of the appeal, the Company submitted a
   Peninjauan Kembali melalui memori Peninjauan                   Judicial Review by filling out the Judical Review
   Kembali tanggal 28 Juni 2022 dan Perusahaan telah              Memory dated June 28, 2022. The Company has paid
   membayar sebesar Rp 71.728.696 ribu pada tanggal               amounting to Rp 71,728,696 thousand on June 16,
   16 Juni 2022 yang dicatat sebagai penyesuaian PPh              2022 and recorded as adjustment on Corporate
   Badan untuk perhitungan beban pajak di periode                 Income Tax for calculating tax expense in the current
   berjalan (Catatan 26). Pada tanggal 14 Juli 2022,              period (Note 26). On July 14, 2022, the Company
   Perusahaan menerima Surat Tagihan Pajak (“STP”)                received        Notice     of      Tax      Collection
   No. 00031/106/17/096/22 atas denda administrasi                No. 00031/106/17/096/22 for administrative tax
   pajak sebesar Rp 11.378.582 ribu terkait dengan                penalty amounting to Rp 11,378,582 thousand related
   penjelasan diatas. Pada tanggal 31 Desember 2022,              to explanation above. As of December 31, 2022, the
   Perusahaan telah mencatat denda administrasi pajak             Company has recorded administrative tax penalty as
   tersebut sebagai bagian dari utang lain-lain                   part of other accounts payable (Note 16).
   (Catatan 16).

   Pada tanggal 14 Agustus 2023, Perusahaan                       On August 14, 2023, the Company received Supreme
   menerima putusan Mahkamah Agung yang                           Court decision stated that Supreme Court declined the
   menyatakan bahwa Mahkamah Agung menolak                        Company's Judicial Review request. The Company
   permohonan peninjauan kembali dari Perusahaan.                 has paid the tax penalties amounting to Rp 11,378,582
   Perusahaan telah membayar denda administrasi                   thousand on April 6, 2023.
   pajak sebesar Rp 11.378.582 ribu pada tanggal
   6 April 2023.

   TAHUN FISKAL 2018                                              FISCAL YEAR 2018

   Pada tanggal 28 November 2023, Perusahaan                      On November 28, 2023, the Company received tax
   menerima Surat Ketetapan Pajak Kurang Bayar                    underpayment assessment letters (“SKPKB”) for
   (“SKPKB”) atas pajak penghasilan badan untuk tahun             corporate income tax 2018 amounting to Rp 651,872
   fiskal 2018 sebesar Rp 651.872 ribu dan denda                  thousand and tax penalties Rp 284,738 thousand
   administrasi sebesar Rp 284.738 ribu (Catatan 26).             (Catatan 26). The result of the tax assessment was
   Hasil keputusan tersebut dibebankan pada laba rugi             charged to the current year profit or loss. The
   tahun berjalan. Perusahaan telah membayar kurang               Company has paid the underpayment tax on
   bayar pajak tersebut pada tanggal 5 Desember 2023.             December 5, 2023.




                                                         - 97 -
Page 608
PT BUSSAN AUTO FINANCE                                                               PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                 NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                         FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                      DECEMBER 31, 2023 AND 2022 - Continued

35. INFORMASI KEUANGAN TAMBAHAN - UNIT                         35. SUPPLEMENTARY FINANCIAL INFORMATION -
    SYARIAH                                                        SHARIA UNIT

                                            31 Desember/          31 Desember/
                                            December 31,          December 31,
                                                2023                  2022
                                               Rp '000               Rp '000

   Piutang pembiayaan murabahah                                                       Murabahah financing receivables
   Piutang pembiayaan murabahah - bruto         83.481.073             87.969.371     Murabahah financing receivables - gross
   Pendapatan pembiayaan murabahah
       yang belum diakui                        (19.439.577)          (21.944.312)    Unearned murabahah financing income
   Cadangan kerugian kredit ekspektasian         (6.025.311)           (5.411.406)    Allowance for expected credit losses

   Piutang pembiayaan murabahah - bersih        58.016.185             60.613.653     Murabahah financing receivables - net

   Utang kepada dealer                            1.241.390             1.300.018     Dealer payables

   PENDAPATAN                                                                         INCOME
   Pendapatan margin                            22.293.129             21.391.858     Margin income

   Jumlah pendapatan operasional                22.293.129             21.391.858     Total operating income


   Piutang pembiayaan IMBT                                                            IMBT financing receivables
   Piutang pembiayaan IMBT - bruto            3.245.219.925         2.326.054.470     IMBT financing receivables - gross
   Pendapatan pembiayaan IMBT
       yang belum diakui                       (726.386.801)         (519.243.172)    Unearned IMBT financing income
   Cadangan kerugian kredit ekspektasian       (201.665.119)         (102.825.153)    Allowance for expected credit losses

   Piutang pembiayaan IMBT - bersih           2.317.168.005         1.703.986.145     IMBT financing receivables - net

   PENDAPATAN                                                                         INCOME
   Pendapatan Imbal Jasa (Ujrah)               888.875.780           612.913.857      Margin fee income (Ujrah)

   Jumlah pendapatan operasional               888.875.780           612.913.857      Total operating income



   Piutang pembiayaan mudharabah                                                     Mudharabah financing receivables
   Piutang pembiayaan mudharabah - bruto         1.169.152            43.193.454     Mudharabah financing receivables - gross
   Pendapatan pembiayaan mudharabah
       yang belum diakui                          (129.120)           (6.334.271)    Unearned mudharabah financing income
   Cadangan kerugian kredit ekspektasian          (387.987)          (10.543.940)    Allowance for expected credit losses

   Piutang pembiayaan mudharabah - bersih          652.045            26.315.243     Mudharabah financing receivables - net

   PENDAPATAN                                                                        INCOME
   Pendapatan bagi hasil                         5.611.177             7.815.627     Revenue sharing

   Jumlah pendapatan operasional                 5.611.177             7.815.627     Total operating income




                                                        - 98 -
Page 609
PT BUSSAN AUTO FINANCE                                                                                                        PT BUSSAN AUTO FINANCE
CATATAN ATAS LAPORAN KEUANGAN                                                                                          NOTES TO FINANCIAL STATEMENTS
UNTUK TAHUN-TAHUN YANG BERAKHIR                                                                                                  FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022 - Lanjutan                                                                               DECEMBER 31, 2023 AND 2022 - Continued

36. REKONSILIASI LIABILITAS YANG TIMBUL DARI                                                   36. RECONCILIATION OF LIABILITIES ARISING FROM
    AKTIVITAS PEMBIAYAAN                                                                           FINANCING ACTIVITIES

   Tabel di bawah ini menjelaskan perubahan dalam                                                     The table below details changes in the Company’s
   liabilitas Perusahaan yang timbul dari aktivitas                                                   liabilities arising from financing activities, including
   pembiayaan, termasuk perubahan yang timbul dari                                                    both cash and non-cash changes. Liabilities arising
   arus kas dan perubahan nonkas. Liabilitas yang                                                     from financing activities are those for which cash flows
   timbul dari aktivitas pembiayaan adalah liabilitas yang                                            were, or future cash flows will be, classified in the
   arus kas, atau arus kas masa depannya,                                                             Company’s statement of cash flows as cash flows from
   diklasifikasikan dalam laporan arus kas Perusahaan                                                 financing activities.
   sebagai arus kas dari aktivitas pembiayaan.
                                                                                    Perubahan non kas/ Non-cash changes
                                          Arus kas       Pergerakan        Amortisasi biaya     Penambahan            Biaya
                                        dari aktivitas   valuta asing/    penerbitan obligasi/ aset hak-guna/      yang masih
                                        pendanaan/        Movement          Amortization of       Addition to     harus dibayar/
                        1 Januari/       Financing        of foreign        bond issuance        right-of-use       Accrued         Penyesuaian/       31 Desember/
                     January 31, 2023    cash flows       exchange              costs            asset costs        expense          Adjustment      December 31, 2023
                         Rp'000            Rp'000          Rp'000              Rp'000             Rp'000              Rp'000          Rp'000              Rp'000

   Liabilitas sewa         6.101.466       (6.135.919)        -                   -                 3.092.601        450.644             -                   3.508.792   Lease liabilities
   Pinjaman bank       6.381.483.149     (582.082.000)    (112.225.669)           -                  -                  -                -               5.687.175.480   Bank loans
   Utang obligasi      4.141.274.229      723.274.230         -                  9.138.984           -                  -                -               4.873.687.443   Bonds payable

   Jumlah              9.155.484.698      135.056.311     (112.225.669)          9.138.984          3.092.601            -               -              10.564.371.715   Total



                                                                                    Perubahan non kas/ Non-cash changes
                                          Arus kas       Pergerakan        Amortisasi biaya     Penambahan            Biaya
                                        dari aktivitas   valuta asing/    penerbitan obligasi/ aset hak-guna/      yang masih
                                        pendanaan/        Movement          Amortization of       Addition to     harus dibayar/
                        1 Januari/       Financing        of foreign        bond issuance        right-of-use       Accrued         Penyesuaian/       31 Desember/
                     January 31, 2022    cash flows       exchange              costs            asset costs        expense          Adjustment      December 31, 2022
                         Rp'000            Rp'000          Rp'000              Rp'000             Rp'000              Rp'000          Rp'000              Rp'000

   Liabilitas sewa        10.175.802      (21.051.129)        -                   -                17.533.558           -                (556.765)           6.101.466   Lease liabilities
   Pinjaman bank       5.227.088.999      976.780.000      177.614.150            -                  -                  -                -               6.381.483.149   Bank loans
   Utang obligasi      3.918.219.897      216.990.577         -                  7.007.255           -                  (943.500)        -               4.141.274.229   Bonds payable

   Jumlah              9.155.484.698    1.172.719.448      177.614.150           7.007.255         17.533.558           (943.500)        (556.765)      10.528.858.844   Total




37. TANGGUNG    JAWAB   MANAJEMEN   DAN                                                        37. MANAGEMENT       RESPONSIBILITY                                               AND
    PERSETUJUAN ATAS LAPORAN KEUANGAN                                                              APPROVAL OF FINANCIAL STATEMENTS

   Penyusunan dan penyajian wajar laporan keuangan                                                    The preparation and fair presentation of the financial
   dari halaman 1 sampai dengan halaman 99                                                            statements on pages 1 to 99 were the responsibilities
   merupakan tanggung jawab manajemen, dan telah                                                      of the management, and were approved by the
   disetujui oleh Direktur untuk diterbitkan pada tanggal                                             Directors and authorized for issue on March 12, 2024.
   12 Maret 2024.




                                                                                  ********




                                                                                        - 99 -
Page 610
    PT BUSSAN AUTO FINANCE                                                                             PT BUSSAN AUTO FINANCE
    INFORMASI KEUANGAN TAMBAHAN                                                           SUPPLEMENTARY FINANCIAL INFORMATION
    RASIO-RASIO KEUANGAN OTORITAS                                                                  FINANCIAL RATIO OF FINANCIAL
    JASA KEUANGAN (TIDAK DIAUDIT)                                                               SERVICES AUTHORITY (UNAUDITED)
    31 DESEMBER 2023 DAN 2022                                                                        DECEMBER 31, 2023 AND 2022

    INFORMASI KEUANGAN TAMBAHAN - RASIO - RASIO                                 SUPPLEMENTARY FINANCIAL INFORMATION -
    KEUANGAN OTORITAS JASA KEUANGAN                                             FINANCIAL RATIO OF FINANCIAL SERVICES
                                                                                AUTHORITY

    Berdasarkan POJK No. 35/POJK.05/2018 tanggal                                Based on POJK No. 35/POJK.05/2018 dated
    31 Desember 2018 tentang Penyelenggaraan Usaha                              December 31, 2018 regarding the Organisation of
    Perusahaan Pembiayaan, Perusahaan diharuskan untuk                          Financing Company Business, the Company is required to
    memenuhi sejumlah rasio keuangan tertentu. Rasio-rasio                      comply with several financial ratios. These ratios have been
    ini dibuat oleh Perusahaan berdasarkan formula                              prepared by the Company based on the formula as
    sebagaimana ditentukan dalam peraturan OJK untuk                            prescribed in the said OJK regulation for regulatory
    tujuan kepatuhan terhadap peraturan.                                        compliance purposes.

    Berikut ini adalah rasio-rasio keuangan berdasarkan                         The following are the financial ratios based on OJK
    Peraturan OJK:                                                              Regulations (OJK):

                                                                  31 Desember/          31 Desember/
                                                                  December 31           December 31
                                                                      2023                   2022
                                                                  (Tidak diaudit/       (Tidak diaudit/
                                                                   Unaudited )           Unaudited )
                                                                        %                     %

    Rasio piutang pembiayaan bersih terhadap total aset               91,05%              91,33%          Net financing receivable to total assets ratio
    Rasio modal sendiri modal disetor                                461,02%              434,80%         Equity to paid capital ratio
    Rasio piutang pembiayaan bermasalah                                1,02%               0,91%          Non performing financing ratio
    Rasio saldo piutang pembiayaan neto terhadap total pinjaman      121,58%              120,81%         Net financing receivable to total loan
    Rasio saldo piutang pembiayaan investasi dan                                                          Invesment financing and
     pembiayaan modal kerja dibandingkan dengan                                                              working capital financing receivable
     total saldo piutang pembiayaan                                   24,22%               26,87%             to total financing receivable ratio
    Rasio permodalan                                                  27,01%               25,75%         Capital ratio
    Rasio gearing                                                      3,89                 4,11          Gearing ratio
    Tingkat kesehatan keuangan                                    1 (sangat sehat)     1 (sangat sehat)   Company soundness level




p




                                                                         - 100 -
Page 611

          
Page 612
  FINANCIAL
  STATEMENTS




  BAF Plaza
  Jl. Raya Tanjung Barat No. 121,
  Jagakarsa, Jakarta Selatan 12530,
  Indonesia
       +62 21 2939 6000


  www.baf.id



500

File

File Open PDF
Source IDX
Size14.98 MB
Published4 Apr 2024
Pages612
Characters2,887,112
Text sourceEmbedded text layer
OCR confidence—

Names mentioned 198 people and organisations named in the text · linked when the evidence is strong

linked org PT BUSSAN AUTO FINANCE p.1 ×132
linked person Jun Ikeda · Commissioner p.37 ×11
linked org JA Mitsui Leasing Ltd. p.39 ×14
linked person Masami Shiobara p.63 ×8
linked person Toshiyuki Kojima p.64 ×9
linked person DANI FIRMANSJAH · Commissioner p.66 ×4
linked person NAOTAKA TAKESHITA p.66 ×3
linked org Yamaha Indonesia p.70 ×8
linked person A LUNG NG · Director p.82 ×6
linked person AKIRA SUGAI · President Commissioner p.82 ×12
linked person KOJI KATO · President Director p.82 ×11
linked person SIGIT SEMBODO · Commissioner p.82 ×8
linked org Yamaha Motor Co., Ltd p.88 ×17
linked org Sinergi Autoindo p.88 ×5
linked org Bank Maybank Indonesia Tbk p.102 ×2
linked org Citibank NA p.104 ×3
linked — Standard Chartered p.104
linked org Bank Danamon p.104 ×2
linked person JIMMY ISKANDAR p.111 ×2
linked org Bank Mandiri Persero Tbk p.111 ×5
linked org Sinar Mas p.111
linked org PT Bank DBS Indonesia. p.111
linked person Alung Ng p.516 ×2
linked person Stepanus Ardhanova p.516 ×3
possible person Yudono p.44 ×2
possible org Mitsui Co., Ltd. p.78 ×2
possible org PT Busaan Auto Finance p.104
possible org Bank Sinarmas Tbk p.110 ×2
possible — HSBC Singapore p.112
possible person Gatot Subroto p.124
possible person Prabowo · Independent Commissioner p.210 ×3
possible person Nurdayadi · Commissioner p.210
unresolved org PT BUSSAN AUTO FINANCE HIGHLIGHTS PERFORMANCE REPORT MANAGEMENT p.3 ×12
unresolved org PT Bussan Auto Finance. In p.3
unresolved org PT Bussan Auto Finance. GOVERNANCE p.3
unresolved org PT BUSSAN AUTO FINANCE HIGHLIGHTS PERFORMANCE ELEVATE p.5
unresolved — Committee p.7
unresolved — Safety Committee p.7
unresolved org PT BUSSAN AUTO FINANCE HIGHLIGHTS PERFORMANCE Social Aspects p.15
unresolved org PT BUSSAN AUTO FINANCE HIGHLIGHTS PERFORMANCE Environmental Aspects p.17
unresolved org PT BUSSAN AUTO FINANCE HIGHLIGHTS PERFORMANCE I N p.19 ×2
unresolved org PT Bussan Auto Finance. Therefore p.25 ×3
unresolved org PT Bussan Auto Finance’s Shelf-In p.25
unresolved org PT Bussan Auto p.26
unresolved org PT Bussan Auto Finance’s Shelf-Registration Bonds p.26
unresolved org PT BUSSAN AUTO FINANCE HIGHLIGHTS PERFORMANCE p.27 ×7
unresolved org Indonesia Stock Exchange p.28 ×5
unresolved org PT BUSSAN AUTO FINANCE HIGHLIGHTS PERFORMANCE SIGNIFICANT EVENTS p.29
unresolved org PT BUSSAN AUTO FINANCE HIGHLIGHTS PERFORMANCE Indonesia Public p.31
unresolved person Tetsuya Daikoku · President Commissioner p.31 ×3
unresolved org PT BUSSAN AUTO FINANCE HIGHLIGHTS PERFORMANCE Annual GMS p.33
unresolved org MarkPlus Inc. p.33
unresolved org PT BUSSAN AUTO FINANCE HIGHLIGHTS PERFORMANCE CSR Safety p.35
unresolved org PT BUSSAN AUTO FINANCE HIGHLIGHTS PERFORMANCE Resignation p.37
unresolved org PT BUSSAN AUTO FINANCE HIGHLIGHTS PERFORMANCE BAF p.39
unresolved org Mitsui Co. Ltd. p.39
unresolved org PT BUSSAN AUTO FINANCE HIGHLIGHTS UTAMA IKHTISAR PERFORMANCE p.41
unresolved org PT Fitch Ratings Indonesia p.41 ×2
unresolved org PT BUSSAN AUTO FINANCE HIGHLIGHTS PERFORMANCE Result p.43
unresolved org PT Pemeringkat Efek Indonesia p.43
unresolved person Lynn p.44 ×2
unresolved person Charles Gultom · Director p.44
unresolved org PT BUSSAN AUTO FINANCE HIGHLIGHTS PERFORMANCE IDX Channel p.45
unresolved org PT BUSSAN AUTO FINANCE HIGHLIGHTS PERFORMANCE AWARD p.47
unresolved org PT BUSSAN AUTO FINANCE HIGHLIGHTS PERFORMANCE Leadership Indonesia p.49
unresolved person Charles p.49
unresolved org PT BUSSAN AUTO FINANCE HIGHLIGHTS PERFORMANCE REPORT FROM p.57 ×2
unresolved org PT Pemeringkat p.59
unresolved org Public Accountant Firm Imelda & Partners p.62
unresolved person Tetsuya p.63 ×2
unresolved org Financial Services Authority p.63 ×6
unresolved person Azharuddin Lathif p.63
unresolved person Ahmad Ifham p.64
unresolved org PT BUSSAN AUTO FINANCE HIGHLIGHTS PERFORMANCE Implementation p.65
unresolved org Bank Indonesia p.69
unresolved org PT BUSSAN AUTO FINANCE HIGHLIGHTS PERFORMANCE Through p.75
unresolved org Co. Ltd. p.78 ×10
unresolved person Marina Soewarna p.78
unresolved — Daikoku · President Commissioner p.78 ×2
unresolved org PT BUSSAN AUTO FINANCE ANNUAL p.84 ×4
unresolved org PT BUSSAN AUTO FINANCE HIGHLIGHTS PERFORMANCE STATEMENT p.85
unresolved org PT Sinergi Autoindo Abadi p.88 ×5
unresolved org PT Yamaha Indonesia Motor Manufacturing p.88 ×6
unresolved org PT BUSSAN AUTO FINANCE HIGHLIGHTS PERFORMANCE Legal Basis p.89
unresolved person Sugiri Kadarisman · Notaris p.89
unresolved org Minister of Justice p.89
unresolved org PT Yamaha Motor Kencana Indonesia p.89
unresolved org PT Lenggara Gunasejahtera p.89
unresolved org PT Mitsui Indonesia. p.89 ×2
unresolved org PT Ciptadana LOCATIONS ACROSS INDONESIA p.89
unresolved org Yamaha Motor Co. Ltd. p.89
unresolved org PT Pembiayaan Getraco Indonesia p.89
unresolved org PT Danamon Sanggrahan p.89 ×2
unresolved org PT Danamon Mits Otomotif Finance p.89
unresolved org Motor Co. Ltd. p.89
unresolved org PT Sinergi In p.89
unresolved org PT Lenggara p.89
unresolved org PT BUSSAN AUTO FINANCE HIGHLIGHTS PERFORMANCE MISSION p.91
unresolved org Ministry of Law and Human p.94
unresolved org PT BUSSAN AUTO FINANCE HIGHLIGHTS PERFORMANCE PRODUCT p.95
unresolved org India Pvt. Ltd. p.98
unresolved org Circular Shareholders Planning Yamaha Motor India Pvt. Ltd. p.98
unresolved org Toyota Motor Corporation p.98 ×2
unresolved org PT BUSSAN AUTO FINANCE HIGHLIGHTS PERFORMANCE MASAMI SHIOBARA p.99
unresolved org PT BUSSAN AUTO FINANCE HIGHLIGHTS PERFORMANCE DANI FIRMANSJAH p.101
unresolved org Baruprana Finance Tbk p.101
unresolved org PT Aditama Finance p.101
unresolved org PT Smart Multifinance p.101
unresolved org PT Buana Finance He p.101
unresolved org PT BFI Finance p.101
unresolved org PT Saseka Gelora Finance p.101
unresolved org PT IFS Capital Indonesia p.101
unresolved org PT Indosurya Inti p.101
unresolved org Intan Baruprana Finance Tbk p.101 ×2
unresolved org PT Intan p.101
unresolved org Circular Shareholders Statements Internasional Indonesia Tbk p.102
unresolved org PT BNI Multifinance p.102
unresolved org PT AEON Credit Service Indonesia. p.102 ×2
unresolved org PT BUSSAN AUTO FINANCE HIGHLIGHTS PERFORMANCE NURDAYADI INDEPENDENT p.103
unresolved org Waters Indonesia Tbk p.103
unresolved org PT Akasha p.103
unresolved org Wira International Tbk p.103
unresolved org Bank Merincorp p.103
unresolved org PT Bussan p.103
unresolved org PT Ades PROFILE p.103
unresolved org PT Standard Chartered Bank p.104
unresolved org PT Bank Danamon She p.104
unresolved org Indonesia Tbk p.104
unresolved org PT UOB Indonesia p.104
unresolved org PT BUSSAN AUTO FINANCE HIGHLIGHTS PERFORMANCE AKIRA SUGAI p.105
unresolved org Vice President Process Centre Ltd. p.105
unresolved org Bussan Auto Finance India Pvt. Ltd. p.106
unresolved org Strategy Planning Yamaha Motor India Pvt. Ltd. p.106
unresolved org PT BUSSAN AUTO FINANCE HIGHLIGHTS PERFORMANCE SIGIT SEMBODO p.107
unresolved org PT Primus Financial Services p.107
unresolved org PT Subentra Finance p.108
unresolved org PT BUSSAN AUTO FINANCE HIGHLIGHTS PERFORMANCE CHARLES GULTOM p.109
unresolved org PT ANZ Panin Bank p.109
unresolved org PT Adira Finance p.109
unresolved org PT BUSSAN AUTO FINANCE HIGHLIGHTS PERFORMANCE ASSOCIATE p.111
unresolved org Danamon Indonesia Tbk p.111
unresolved org PT Central Sentosa Finance p.111
unresolved org PT Toyota Astra p.112
unresolved org PT GOTO Indonesia Management Department Head p.112
unresolved org PT Mandiri Tunas p.112
unresolved org PT Nissan Financial Services p.112
unresolved org PT Bank UOB p.112
unresolved org Bank UOB (2015 – 2017), Indonesia p.112
unresolved org PT Bank OCBC p.112
unresolved org NISP Tbk. · Director p.112
unresolved org PT Yamaha Indonesia Motor p.114
unresolved org PT BUSSAN AUTO FINANCE HIGHLIGHTS PERFORMANCE As p.115
unresolved org PT Yamaha Mitsui p.115
unresolved org Bank West Client p.117
unresolved org Barclays Securities Japan Limited p.117
unresolved — Tatsuo Yasunaga · Representative Director, Chair of the Board of Directors p.117
unresolved — Kenichi Hori · Representative Director, President and Chief Executive Officer p.117
unresolved — Motoaki Uno · Representative Director, Executive Vice President p.117
unresolved — Yoshiaki Takemasu · Representative Director, Executive Vice President p.117
unresolved — Kazumasa Nakai · Representative Director, Senior Executive Managing Officer p.117
unresolved — Tetsuya Shigeta · Representative Director, Senior Executive Managing Officer p.117
unresolved — Makoto Sato · Representative Director, Senior Executive Managing Officer p.117
unresolved — Toru Matsui · Representative Director, Senior Executive Managing Officer p.117
unresolved — Samuel Walsh · Director p.117
unresolved — Takeshi Uchiyamada · Director p.117
unresolved — Masako Egawa · Director p.117
unresolved — Fujiyo Ishiguro · Director p.117
unresolved — Sarah L. Casanova · Director p.117
unresolved — Jessica Tan Soon Neo · Director p.117
unresolved — 2023 ANNUAL REPORT & SUSTAINABILITY · 117 p.117
unresolved — Kimiro Shiotani · Commissioner p.118
unresolved — Hirotatsu Fujiwara · Commissioner p.118
unresolved — Kimitaka Mori · Commissioner p.118
unresolved — Yuko Tamai · Commissioner p.118
unresolved — Makato Hayashi · Commissioner p.118
unresolved org is under Mitsui & Co., Ltd. business group. · of the main business units. Service area coverage Mitsui p.118
unresolved — into 16 main business units, as of March 31, 2023. · as of October 1, 2023 (Source: Mitsui & Co.,Ltd. Company p.118
unresolved org As of December 31, 2023, the Company has not executed · listed, including corporate action that caused changes p.118
unresolved org initial public offering at Indonesia Stock Exchange · in the stocks, such as stock split, reverse stock, shares p.118
unresolved — or other stock exchanges, therefore, · dividend, bonus shares, changes in shares par value, p.118
unresolved — outstanding, market capitalization based on price at · deduction of capital, or other information as disclosed p.118
unresolved — stock exchange where the stocks are listed, · in Financial Service Authority Circular Letter Number 16/ p.118
unresolved org Regulations. Legal Consultant Thamrin & Rekan p.124
unresolved person Iswira Laksana p.124 ×2
unresolved person Jiro Yamada · President Commissioner p.210 ×4
unresolved person Dani p.210
unresolved — Firmansjah · Independent Commissioner p.210
unresolved person Tetsuya Year p.210
unresolved person Mikio Muramatsu · Commissioner p.210
unresolved person Charles MP Gultom p.210
unresolved — Ramli · President Director p.210
unresolved person Minoru Morimoto p.210
unresolved person Lynn Ramli Business Plan Fiscal Year p.210 ×31
unresolved person Approval Memo · Member p.272 ×11
unresolved org PT BUSSAN AUTO FINANCE HIGHLIGHTS PERFORMANCE POSITION IN p.273
unresolved person Indonesian Citizen · Member p.273
unresolved org PT BUSSAN AUTO FINANCE CATATAN ATAS p.516 ×4
unresolved person Committe. Based · Komisaris p.516

Extraction attempts how the parser did, and what it refused

Nothing structured was extracted from this document — the attempts below say why.

No extraction attempted yet.

↑↓ select ↵ open ⇧↵ see every result