Dear Respected Shareholders and Stakeholders,
On behalf of the Board of Directors of Bank Resona Perdania (“the Bank”), allow me to present the Bank’s Annual Report for the 2022 fiscal year. The report is a manifestation of the Bank’s accountability to the Shareholders. Year 2022 is a year of recovery for the Indonesian economy, even though the COVID-19 pandemic is not completely over and global economic conditions are still full of uncertainties. The Bank proclaims 2022 as the “Resurgence Year” which will be the initial moment/awakening for the Bank to start the 5 year Corporate Plan (2022-2026). During 2022, the Bank has consistently made improvements in all aspects, including financial, governance, and risk management. A significant addition to core capital has been made through a Perpetual Subordinated Loan (PSL) of IDR3 trillion which has brought the Bank’s core capital to more than IDR5 trillion by the end of 2022, and the Bank has also implemented a strategy for funding sources management, improving the quality of earning assets, organizational reconstruction, increasing human resource capabilities, and improvement of credit risk management.
Overview of Macroeconomy and Industry Segment
The global economic condition throughout 2022 was influenced by global geopolitical tension that worsens fragmentation, economic prospect, and global finance. The weakened global economic growth, the disruption in global supply chain, and the spike in global energy and food prices are the results of the global major events happened in 2022, including the Russian-Ukraine war, US-China trade war, and COVID-19 pandemic. The Bank Indonesia’s Governor Perry Warjiyo, in Bank Indonesia Annual Meeting Book (PTBI Book) carrying the theme “Synergy and Innovation, Strengthening Resilience and Awakening Towards Advanced Indonesia” released on November 30, 2022, stated that the world encountered at least 5 major issues, namely first is slow growth that was followed by the intensified recession risk in several countries, the second is high inflation, the third is higher interest rate policy (higher for longer) to respond the rise in inflation, the fourth is strong US dollar, and the fifth is global investor fund withdrawal followed by liquid asset distraction (cash is the king).
If those issues continued, the world will be on the verge of stagflation risk, which is defined as economic slowdown and high inflation rate, or even “reflation” (economic recession and high inflation rate) that will likely increase uncertainty in the global financial market, and increase the pressure on foreign capital flow, especially in portfolio investment to developing countries and depreciation of exchange rate in various countries.
Based on World Economic Outlook January 2023 edition published by International Monetary Fund (IMF), the global economic growth in 2022 was predicted to reach 3.4% (yoy), a decrease compared to the last year of 6.2%. The decreased was mainly caused by a decrease in the world trade volume (yoy) from 10.4% in 2021 to 5.4% in 2022.
In contrast, the national economic growth remained stable. It is indicated with the resilient domestic demand due to higher people consumption and strong confidence of the economic agents. According to Statistics Indonesia (BPS), the national economic growth in 2022 was recorded at 5.31%, higher than the previous year of 3.70%. In terms of production, the highest growth was recorded by Transportation and Warehousing Sector of 19.87%, while Goods and Services Export Component recorded the highest spending by 16.28%.
OJK revealed that the loan growth in 2022 reached 11.35%, compared to the previous year. It was mainly contributed by the increase in work capital loans of 12.17% and the increase in corporate debtor loan of 15.44%. The increase in loan was also in line with the improvement in asset quality, which was indicated by the decrease in the banking NPL Gross as of December 2022 of 2.44%, compared to the previous year at 3%. In 2022, the banking TPF grew by 9.01%, while the banking liquidity was adequate, with Liquid Asset/Non-Core Deposit (AL/NCD) ratio reaching 137.67% and Liquid asset/TPF at 31.20% in December 2022. The capital resilience of financial service industry has demonstrated an improvement, indicated with the CAR ratio of 25.63%.
The Bank Indonesia’s Board of Governors Meeting on December 21-22, 2022 took decisions to increase BI 7-Day Reverse Repo Rate (BI7DRR) of 25 bps to 5.50%, the Deposit Facility of 25 bps to 4.75%, and the Lending Facility of 25 bps to 6.25%. The decision to increase interest rates in a more measured manner serves as a follow-up step in a front-loaded, pre-emptive and forward-looking manner to ensure the continued decline in inflation expectations, so that core inflation can be maintained within the range of 3.0 ± 1%. The Rupiah exchange rate stabilization policy continues to be strengthened to control imported inflation in addition to mitigating the spillover impact of the US dollar that remained strong and high uncertainty on global financial markets.
Strategy Implementation and Strategic Policy
In the fourth quarter of 2021, the national economy was predicted to keep improving. Economic performance would improve, supported by people’s mobility, accelerated vaccinations, the opening of wider economic sectors, ongoing policy stimulus, and strong export performance. Household consumption was predicted to begin to improve in the fourth quarter of 2021 along with increasing public activity. Investment performance also improved, particularly in the property as government and private construction activities were rampant.
Banking Industry Analysis
The Bank realized that 2022 was still a tough year for businesses, including the banking sector, despite experiencing rebound compared to 2021.
To address those constraints in economic condition, the Bank has taken strategic policies to control the expansion level of loan distribution and acquisition of new debtors. The Bank remained focused on the improvement of loan quality by offering prudent loans, strict monitoring on low quality loans and non-performing loans. The Bank also considered the management of loan restructuring due to the pandemic in 2022, which includes the proposal, monitoring process, and classifying the debtors in COVID-19 restructuring category.
In 2022, the Bank improved and reinforced the implementation of loan risk management by:
1). establishing Middle Office Division,
2). start the communication and process in order to get support from Resona Bank, Ltd in the form of temporary placement of a Technical Advisor who will be in charge of Credit Portfolio Management for knowledge transfer related to credit risk management which will be effective in 2023, and
3). introduction and implementation of Watch Grade Analysis as a further in-dept analysis to identify loan risks for new debtors and loan risk monitoring for existing debtors, and lastly, 4). revising loans policies and guidelines.
In 2022, the Bank has a target market for corporate segment loans consisting of Japanese corporations and Local corporations. The Bank still maintains a business model by balancing the composition and portion of the loan portfolio for both segments. For example, the portion of the loan portfolio for Japanese companies is 40%, while Local companies is 60%. The Bank not only disbursed loans to the manufacturing sector and wholesales trading, but also diversified loans to other industrial sectors.
In terms of funding, the Bank managed funding sources by reducing the amount of expensive funding from other bank loans and deposits that have special interest rates. This initiative is intended to increase the Bank’s net interest margin (NIM) ratio. However, the Bank made borrowing from other banks in the fourth quarter of 2022 in order to maintain the Available Fund in USD currency according to predetermined limits and to anticipate withdrawing funds from customers towards the end of the year.
In regards to strengthening capital and compliance with the provisions of OJK Regulation No. 12/POJK.03/2020 concerning Consolidation of Commercial Banks, namely the minimum core capital of a bank that is at least IDR3 trillion by the end of 2022, the Bank received additional capital in the form of Perpetual Subordinated Loan (PSL) from the shareholders of Resona Bank, Ltd of IDR3 trillion on June 29, 2022. Thus, it significantly increased the Bank’s non-consolidated core capital to IDR5.10 trillion compared to 2021 at Rp2.04 trillion. The Bank’s corporate action may increase the bank resilience against risks and serve as buffer shock in the midst of COVID-19 pandemic and current global uncertainty, while supporting the Bank’s business growth through loans expansion, especially in local customer segmen. With that being said, it is expected to contribute to the Indonesian economic growth.
The Bank’s rentability strategies include increasing feebased income and foreign exchange income, beside from interest income that serves as the Bank’s main income.
In 2022, the Bank also proceeded the relocation process of Head Office to the new building, Jakarta Mori Tower at Jl. Jend. Sudirman Kav.40-41, Central Jakarta. This relocation is expected to strengthen the Bank’s position in the industry, and help the Bank expand the network with customers and partners. It also corresponds to the improvement in the Bank’s branding image in the eye of stakeholders by having representative Head Office. The new Head Office Building will also improve employee comfort at work and the Bank will have a philosophy and concept of a work culture that is expected to improve performance and productivity of employees.
In 2022, the Bank determined Five-year Corporate Actions, which commenced in 2022 as the “Resurgence Year” for the Bank. The Bank’s focus in 2022 includes:
1. Remain a unique bank with unique competitiveadvantages in specific markets/niche markets,
2. Strengthen capital through additional core capital to achieve a core capital obligation minimum of IDR3
trillion,
3. Reconstruct the organization and improve the capabilities of human resources,
4. Improve the quality of assets, especially loan assets,
5. Optimize funding.
Bank Performance in 2022
At the end of 2022, the Bank booked total assets of IDR17.68 trillion, an increase of 8.10% or IDR1.33 trillion compared to the end of 2021 which amounted to IDR16.35 trillion. The increase in assets was the result of Demand Deposits with Other Banks of IDR596.63 billion or 79.86%,Securities of IDR1,408.91 billion or 281.27%, and loans of IDR27.78 billion or 0.24% compared to the previous year.
The loan portfolio contributes 65.20% to total assets. The Bank booked an increase in net loan in 2022 of 0.43% or IDR47.03 billion to IDR11.07 trillion, compared to the previous year at IDR11.02 trillion.
Based on the economic sector, the manufacturing sectorhas the largest contribution to the Bank’s loans of IDR6.85 trillion with a composition of 59.41% of total loans. The second largest contribution was the wholesales trading, which reached IDR2.41 trillion with a composition of 20.90% of total loans.
In 2022, the Bank’s third party funds were IDR10.39 trillionor a decrease of 13.19% from the previous year. The decrease in third party funds is in line with the Bank’s business plan because the Bank obtained funding sources in the form of Perpetual Sub Ordinated Loans (PSL) from Resona Bank, Ltd.
The total equity in 2022 was booked at IDR5.29 trillion or an increase of 134.70%,compared to 2021 of IDR2.25trillion. This significant increase in total equity came from the receipt of PSL funds of IDR3.00 trillion from Resona Bank, Ltd. The additional capital of IDR3.00 trillion in the form of PSL increased the Bank’s core capital to IDR5.22 trillion and total Minimum Capital Requirement Liability to IDR5.35 trillion by the end of 2022. Meanwhile, the Bank’s CAR was reached by 43.03%. Compared to 2021, the total core capital, total Minimum Capital Requirement Liability and the Bank’s CAR have increased very significantly. Core capital in 2021 reached IDR2.17 trillion, while total Minimum Capital Requirement Liability was IDR2.75 trillion and Bank CAR was 22.01%.
Net interest income in 2022 reached IDR594.14 billion, an increase of 19.38% compared to 2021 of IDR497.70 billion.
Impairment expenses in 2022 reached IDR285.62 billion, a decrease of 10.28% compared to 2021 of IDR318.35 billion.
Net operating income in 2022 reached IDR25.04 billion,a significant increase compared to 2021 which bookeda loss of IDR97.86 billion. Net profit was IDR35.16 billion in 2022, a significant increase compared to 2021, which booked a net loss of IDR37.92 billion. In 2022, the Bank’s non-consolidated earning ratios, such as ROA, ROE, NIM and BOPO, reached 0.29%, 1.05%, 3.76% and 96.06%, respectively. Compared to 2021, ROA has increased significantly from 2021 which was achieved -0.39%. ROE experienced a significant increase from 2021 which reached -1.92%. NIM experienced an increase of 0.62% from year 2021 which achieved 3.14%. BOPO has improved 16.66% from 2021 which reached 112.72%.
The ratio of the quality of the Bank’s assets on a nonconsolidated basis, namely NPL Gross and NPL Net in 2022 respectively achieved by 3.77% and 1.43%. Compared to year 2021, NPL Gross has decreased by 1.25% from last year 2021 which reached 5.02%. NPL Net has decreased 0.87% from 2021 which reached 2.30%.
The Bank’s capital ratio on a non consolidated basis, namely CAR in 2022 was reached by 42.68%. Compared to year 2021, CAR has increased by 21.30% from the year
2021 which achieved 21.38%.
Comparison between Target and Achievement
In 2022, the Bank revised its Bank’s Business Plan (RBB) in line with the dynamics of the global and domestic economy which continues to recover from the impact of the COVID-19 pandemic, marked by maintained financial system stability. The Bank sees that the economic recovery that the Government is trying to achieve is inseparable from various challenges and uncertainties.
The recovery or improvement of the world economy continues but it has the potential to be lower than previously estimated, accompanied by the increasing financial market uncertainty, in line with the escalation of geopolitical tensions. However, these challenges was not discourage the Bank, instead it became a strong motivation to remain optimistic in welcoming the economic recovery in 2022.
The comparison between plans and realization in non consolidated is presented as follows:
1. Net Profit
The non-consolidated net profit in 2022 reachedIDR40.32 billion, which is 110.51% of the Bank’s target of IDR36.49 billion. The non-consolidated net interest income was booked atIDR578.58 billion or 99.27% of the Bank’s target of IDR582.82 billion and net income from non-consolidated derivative transactions was booked at IDR36.77 billion or 91.87% of the Bank’s target of IDR40.03 billion.
2. Net Loan
Throughout 2022, the Bank managed to book nonconsolidated Net Loans of IDR11.28 trillion, or 97.43% of the Bank’s target of IDR11.58 trillion. The largest loan distribution occurred in manufacturing and wholesales trading industry. During 2022 the Bank disbursed loan prudently and focus on quality management earning assets and credit recovery non performing loan.
3. Total Assets and Liabilities
In 2022, total non-consolidated assets and liabilities were booked at IDR17.65 trillion and IDR12.39 trillion, or total assets reached 103.14% of the target and total liabilities reached 104.51% of the target. Theachievement of assets and liabilities which was higher than the target was due to the higher borrowings, which amounted to IDR986.79 billion or 187.70% of the target. Borrowing were conducted by the Bank in order to maintain the Available Fund in USD currency in accordance with predetermined limits and to anticipate withdrawing funds from customers towards the end of the year. The funding was placed at Demand Deposits with Other Banks in the amount of IDR1.34 trillion or 229.25% of the target and Securities was IDR1.91 trillion or 132.99% of the target.
4. Total Equity
At the end of 2022, total non-consolidated equity was
IDR5.25 trillion or 100.04% of the target.
Bank Problems and Solutions
The macro and micro economic climate had an impact on almost all elements of the business. Throughout 2022, the credit business segments that experienced a large decline were electricity, water and gas, business service, and hotel and restaurant. Meanwhile the retail trading, agriculture, and manufacturing experienced an increase.
The biggest challenge was the business difficulties experienced by debtors, causing debtors to find it difficult to make payments or even go bankrupt. The Bank booked a big impairment expense that led to a decrease in the Bank’s total profit in 2022. The Bank has taken the following strategic steps towards handling non performing loans:
1. Reminding credit risk awareness to all elements of the Bank, from the management level, Credit Committee, and staff in charge of credit activities in the Business Development Division, Credit Reviewer Division, and Credit Administration Division.
2. Special Asset Management (SAM) Division which was formed in 2021 to settle non performing loans optimally. They focused on handling non-performing
loans, starting from the monitoring process to completion.
3. Enhancing the performance of ATOMIC (Ad-hoc Team of Monitoring and Immediate Recovery for Credit), formed in 2018 and tasked with improving the quality of the Bank’s assets. ATOMIC aims to (1) maximize the recovery of non performing loans owned by the Bank and those that have been written off, (2) maintain and manage NPL Gross and NPL Net, (3) prevent new non performing debtors. ATOMIC team organized two periodic meetings, namely credit monitoring
meeting and credit recovery meeting.
4. On November 8, 2022, the Middle Office Division was formed under the Directorate of Credit and responsible for: Post Disbursement and Covenant
Monitoring and Underline Checking.
5. The Bank is preparing to end the economic stimulus for credit restructuring which will only be extended to certain economic sectors. In this case, taking into account that the majority of the largest economic sector is in the manufacturing industry which is not included in the scope of the extended economic sector, the Bank must manage the restructured loan exposure:
• Ensuring that the restructured loans has returned to normal conditions at the time the agreement ends.
• Preparing a loan recovery strategy if the customer’s condition still requires support.
Overview of Business Outlook
Based on the projection of economic growth by the Government of Indonesia, the Bank states that in general the national economy will recover even though it is still overshadowed by the uncertainty of global economic recovery and the potential for an increase in inflation as a result of rising fuel prices and disruption of global supply chains because of Russia’s invasion of Ukraine.
As for the outlook for the Indonesian economy, BIestimates that Indonesia’s economic growth in 2023 will remain robust in the range of 4.5-5.3%, Consumer Price Index (CPI) inflation is predicted to decline and return to the target of 3.0 ± 1% in 2023 and the loan growth will grow in the range of 10-12% in 2023.
Considering these projections, in order to be able to maintain business performance, the Bank’s short-term direction and policies are:
• Aligning the direction, policies and strategies of the Bank with the Corporate Plan for a period of 5 (five) years (2022-2026) which has been previously prepared.
• Continuing the Bank’s business model implementation by applying the ‘Business Model Canvas’ method.
• Continuing efforts to reshape the Bank’s foundation using the philosophy of ‘KAIZEN’ or known as Continuous Improvement on 4 (four) main aspects
namely: Product, People, Process and Procedure.
• Continuing the focus on ‘Unique Value Proposition’ by focusing on developing a loan portfolio for Local Corporations that have business relationships with Japan. This policy direction is in line with the establishment of the Bank’s Corporate Plan for a period of 5 years, with the goal of becoming the ‘most reliable Bank for Local Companies that have
relationships with Japan’.
• Continuing the 5-year Corporate Plan, which will enter its second year in 2023, with the theme ‘Reposition Year’.
• Focusing on maintaining the quality of the asset selectively and ensuring the prudent principle is carefully applied in the growth of new assets.
• Having the commitment to achieving the targets that have been set with an emphasis on maintaining asset quality.
• Taking initiatives of activities or issuing new products as an effort to diversify business by making the Bank as reference for third party products that have collaborate with the Bank.
• Continuing the Bank’s efforts to meet the Macroprudential Inclusive Financing Ratio (RPIM), by: disbursing loan to micro, small and medium enterprises (MSMEs), implementing the sustainable finance with a priority scale on alignment between social, environmental and governance risks in business activities, as well as continuing the development of the Bank’s internal capacity through training and development aimed at increasing the capacity and capability of human resources.
• Maintaining and improving the composite rating of theRisk Based Bank Rating (RBBR) at a minimum of Rank 2 or Sound, which includes the risk profile composite rang and the rating of the implementation of Good Governance both individually and in consolidation with the subsidiary, PT Resona Indonesia Finance (PT RIF).
• Maintaining the risk profile composite rating andGood Governance rating.
• Continuing the improvement on the ‘Human’ (People) aspect by aligning the Human Resources strategies with the theme of becoming a trusted and reliable partner to be able to provide support for business strategies.
• Continuing synergy or collaboration with shareholders, particularly Resona Bank, Ltd., The Bank of Yokohama, Ltd., and Daido Life Insurance Company to develop existing business potential.
• Increasing the Bank’s capital.
• Increasing the Bank’s capital, sourced from profit after tax, with a target profit after 2023 tax of IDR58.3 billion and a target of total minimum capital requirement liability of IDR5.3 trillion, and a core capital of IDR5.1
trillion.
• Increased loan at the end of 2023 with a growth of 15.44% compared to 2022 from IDR11.73 trillion to IDR13.54 trillion.
• Maintaining and improving the risk awareness that has been build, so that the Bank’s NPL Gross and NPL Net is still in line with the Bank’s Risk Appetite and Risk Tolerance. The Bank estimates an impairment expense of IDR275.28 billion.
• Increase the growth of third party funds by 4.31% at the end of 2023, from IDR10.42 trillion in 2022 to IDR10.87 trillion in 2023.
• A decrease in the amount of borrowing by 70.26% at the end of 2023, from IDR 986.79 billion in 2022 to IDR 293.46 billion in 2023.
• Net Interest Income as the Bank’s main income with a target of IDR725.73 billion, estimated to increase from year 2022, which will be achieved by managing deposits and borrowings interest expense.
• BI-FAST-Enhancement, Cloud Migration Phase I, Internet Banking System Replacement Phase I, Data Mart Data Replication, and Core Banking Data Replication.
• Ensuring the direction of Management policies, plans and strategies for improvement that have been determined can encourage the Bank’s business growth and in line with the Bank’s Vision and Mission.
Implementation of Bank Governance
In carrying out its business activities, the Bank implements Good Governance (GG) best practices consistently in order to make a positive contribution to the Bank and provide added value to stakeholders. The implementation of GG at the Bank is in line with the principles of GG which consist of 5 (five) basic principles contained in the General Guidelines for Good Corporate Governance issued by the National Committee on Governance Policy (KNKG), namely Transparency, Accountability, Responsibility,
Independence, Equality and Fairness.
The Bank continues to strengthen the implementation of the principles of Bank Governance and maintains a minimum Bank Governance rating of 2 or “Good” by carrying out active supervision of all management, enhancing a culture of risk awareness and culture of compliance, reducing operational risk events, absence of significant audit findings, recurring nature both from the Audit Division, OJK, and external auditors. The Bank
also improves the compliance function at PT RIF as a
subsidiary by conducting monthly discussions.
Changes in Board of Directors Composition
In 2022, there were changes in the composition of the Board of Directors in accordance with the Circular Resolution of the Shareholders of PT Bank Resona Perdania in lieu of the Extraordinary General Meeting of Shareholders, with the following chronology:
I would like to thank Mr. Iding Suherdi and Mr. B.Budijanto Jahja who have so far made a positive contribution to the management of the Bank. I hereby welcome Mr. Oki Oktavianus and hope that we can come together to develop and improve the Bank’s performance.
As of December 31, 2022, there are 6 (six) members of the Board of Directors of PT Bank Resona Perdania, which include 1 (one) President Director, 1 (one) Deputy President Director, and 4 (four) Directors with the following composition.
The composition of the members of the Board of Directors between Local Directors and Foreign Directors as of the end of 2022 did not fully comply with Article 12 paragraph (3) POJK No.37/POJK.03/2017 which stipulates that the majority of members of the Board of Directors must be Indonesian citizens; and the condition as of December 31, 2022, there were 6 (six) members of the Board of Directors consisting of 3 (three) foreigners and 3 (three) Indonesian citizens.
This is only temporary because on November 8, 2022, Mr. Iding Suherdi effectively resigned from the position of Director; as of that date the number of Directors which originally consisted of 7 Directors became 6 Directors. However, on December 20, 2022, the Bank held an Extraordinary Board of Directors Meeting which set the agenda for the Circular Resolution of Shareholders in lieu of the Extraordinary General Meeting of Shareholders regarding the appointment of a new Indonesian Citizen Director based on the decision of the Circular Resolution of Shareholders in lieu of the Extraordinary General Meeting of Shareholders will be effective in January 2023 and the process of submitting the fit and proper test for the candidate for Director will be carried out in January 2023.
The Board of Directors always committed to managing and developing the Bank by prioritizing the principles of good corporate governance for the benefit of Shareholders
and Other Stakeholders.
Bank Organizational Structure in 2022
To support organizational growth, the Bank carries out organizational development with the following details:
a. Established the Credit Portfolio Management Division to improve the quality of the implementation of the Bank’s credit risk management.
b. Strengthened the Bank’s management through establishing one management level above the Division Head, namely 2 (two) Senior Executive Vice Presidents (SEVP) covering the work areas/functions “Planning and Finance and Business Strategy” and “Operational,
Settlement and Correspondent and Branches”.
c. Reorganization, especially business organizations, by establishing a Business Development Division (BDD–7), which will be tasked with developing the business potential of the local corporate customer segment, supply chain financing, entering into syndicated loan business opportunities and reactivating the China Desk.
d. Established a Middle Office Division under the Director of Credit which is responsible for Post Disbursement and Covenant Monitoring as well as Underline Checking.
Bank Main Activities in 2022
The main activities of the Board of Directors during 2022, namely carrying out the Bank’s daily operations and leading the Company in achieving the goals and objectives and business activities set out in the Articles of Association. The Board of Directors is also responsible for managing the Bank’s business and realizing the Bank’s 2022 Business Plan that has been set.
Throughout 2022, the Bank did not issue new types of products/services.
Information Technology Support Initiative
To support business and operational needs, the Bank develops information systems through automation and digitalization of several internal processes, to make them more efficient and to increase employees productivity. In 2022, the development of Information Technology is focused on several strategic directions as follows:
1. Improving the efficiency of business processes, to speed up information processing, transactional processes, and saving company resources, including the use of Robotic Process Automation applications, Customer Relationship Management (CRM),
2. Improving the quality of cyber security protection on corporate IT infrastructure by initiating the Security Operation Center (SOC),
3. Improving the business process through the use of IT solutions according to the plans of each Business Unit.
Products and Services
Products and services for corporate customers include third-party funds, loans including MSME loans, treasury, trade finance, interbank payments, internet banking, and others. Details of the Bank’s products and services are presented in the Company Profile chapter of this Annual Report.
Interest Rates of Funding and Lending
Throughout 2022, the Bank applied the following average interest rates of funding and lending:
Employment Network and Office
The Bank’s Head Office is located in Jakarta. To reach a wider customer base, the Bank has 2 (two) branch offices, each located in Surabaya and Bandung as well as 4 (four) sub branch offices, each located in Cikarang, Karawang, MM2100, and Deltamas. Throughout 2022, the Bank did not expand its network, business partners, or open new office networks.
Ownership of Board of Directors, Board of Commissioners, and Shareholders in Bank Business Group
Discussion regarding the ownership of the Board of Directors, Board of Commissioners and Shareholders in the Bank’s business group is presented in the Bank Profile
and Corporate Governance chapter in this Annual Report.
Important Changes in Bank and Bank Business Groups in Current Year
Throughout 2022, there were important and material changes in the Bank and the Bank’s business groups both financially and operationally, as follows:
• On February 17, 2022, the Bank established the Credit Portfolio Management Division.
• On May 30, 2022, the Bank implemented the Trade Finance function at Bank Resona Perdania’s Internet Banking.
• On June 29, 2022 there was an increase in the Bank’s core capital to more than IDR5 trillion through the Perpetual Subordinated Loan (PSL) scheme from Resona Bank, Ltd shareholders of IDR3 trillion.
• On November 8, 2022, the Bank carried out organizational development.
• On November 28, 2022, the Bank implemented Go Live BI-FAST services through counters as a form of implementation in improving financial transaction services.
Future Important Events that are Likely to Occur
The Bank’s business development takes into account thedynamics of the economy, which in the future will dependon the dynamics that occur in the current year. In material, the Bank has not been able to convey important events that are likely to occur in the future.
Human Resources Development
As of the end of 2022, the Bank employed 311 employees.
The Bank continuously strives to improve the quality of its human resources through:
1. Implementing best practices in human resource management including talent management, career paths, performance management linked to
remuneration management and implementation of employee engagement programs.
2. Developing a more structured training program that aims to improve employee capabilities. The training is adjusted to the need of both the technical requirements required by each function and the softskill development program including leadership and
mindset.
3. Implementing the main program, namely end
to end loan process training, starting from initiation (marketing staff) to disbursement (credit administration) as well as handling non-performing loans which are also supported by programs related to customer service, improved communication and negotiation including changing economic and business situations/conditions.
4. Continuing programs related to risk management, sustainable finance training, and sustainable governance.
5. Carry out effective transfer of knowledge from foreign workers to local workers.
6. Retaining talented employees through financial aspects (competitive remuneration) and non-financial aspects (work comfort & and employee engagement).
7. The process of recruiting competency-based human resources in order to get the best talents according to the needs and conditions of the Bank.
The total cost of training in 2022 was IDR2.79 billion.
Appreciation
2022 was still be the year full of challenges for the banking sector in general and for Bank in particular. The Board of Directors appreciate all employees who have worked with full dedication. The Board of Directors also appreciates the Board of Commissioners for their cooperation, advice and recommendations. And on behalf of the Bank, the Board of Directors also appreciates all customers and work partners for the cooperation that has been well established and the trust that has been given to the Bank. To the Shareholders, the Board of Directors would like to thank them for the trust that has been given and to the Regulators for the policies that have been implemented and the directions that have been given. We are optimistic that PT Bank Resona Perdania can continue forward and face various challenges for positive and sustainable results.