Corporate Secretary

In 2022, the Bank focused on maintaining asset quality by prioritizing the quality of loan distribution, managing funding costs, expanding the corporate banking market share, and increasing fee-based income. To support these plans, the Bank strives to continuously improve the competence of its human resources and information technology, as well as maintaining the efficiency of the business operation.

Lending
The Bank continuously improved its intermediary function through loans distribution, among others by:

  1. Focusing on the management and development of “Local” Corporate customers who have business relationship with Japan;
  2. Funding supply chain and business alliance by optimizing business relationships with the existing customers by seeking opportunities to develop new business relationships with buyers and suppliers from the existing customers;
  3. Optimizing existing customers in terms of using loan facilities that have not been used, understanding debtor needs, and increasing customer contact.

The Bank still maintains its business model by managing the proportion of loans portfolio given to Japanese and Local companies in balance composition to support the loan expansion and avoid the occurrence of credit concentration risk. The Bank also tries to increase market share among corporate banking customers through effective marketing system, including cooperation with Resona Bank, Ltd., The Bank of Yokohama, Ltd., and Daido Life Insurance Company, by providing various banking products to customers according to their needs.

To improve credit quality, the Bank also monitors lending, in accordance with both internal and external regulations, as well as business developments and changes, resulting in a good credit quality. In addition, the Bank also continues to supervise the provision of sound credit and refers to the established management portfolio.
In maintaining asset quality, the Bank consistently controls and manages non-performing loans as a result of the economic downturn due to the COVID-19 pandemic and optimizes the return rate of non-performing loans and written-off loans by continuing to provide stimulus to customers affected by the COVID-19, loan restructuring, and debtor’s collateral assets selling for the settlement process.

Capital
The Bank continues the effort to keep sufficient capital ratio in order to support its business, by engaging in the following activities:

  1. Maintaining the achievement of the Bank in increasing profit.
  2. Increasing the loan quality so that to reduce the loan loss impairment expense.
  3. Perpetual Subordinated Loan (PSL) from the controlling shareholder, which is also intended to fulfill the regulatory requirements regarding the Minimum Core Capital of the Bank.
  4. Managing the dividend payment at fair level and acceptable to shareholders.

Funding
The Bank continuously makes efforts to optimize the source of fund in order to increase Net Interest Margin (NIM) ratio, while still maintaining the liquidity ratio ofthe Bank through, among others, the following activities:

  1. Increasing the daily banking transactions of customers, such as the receipt of payment of customer sales receivable through the customers’ current account in the Bank.
  2. Approaching “Local” Corporations that have had business relationship with Japan, or that have served as suppliers/buyers from customers, as well as reaching out to Japanese Corporations newly established in Indonesia;
  3. Giving competitive interest rate for time deposits for institutional investors.
  4. Improving its quality of business services in operational transactions;
  5. Improved the functions of Financial Institutions in the Treasury Division, to build relationships with local and international Bank partners.
  6. Manage the amount of borrowing from other banks and the amount of interbank/call money obligations in accordance with the Bank’s liquidity needs.

Operational
Throughout the year 2022, the Bank consistently optimized its operations, among others, by:

  1. Continuing the implementation of reassessing the Bank’s Business Model by applying the Business Model Canvas method.
  2. Rebuilding the Bank’s foundation by applying the philosophy of “KAIZEN” or known as “Continous Improvement” in 4 (four) main aspects, namely Product, People, Process, and Procedure.
  3. 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.
  4. Aligning processes, procedures, and policies to support efforts to reform and diversify the business that has been formulated.
  5. Continuing the migration process, installing IT equipment, and infrastructure at the new Bank Resona Perdania’s Head Office Building at Jakarta Mori Tower, Jl. Jend. Sudirman Kav. 40-41, Central Jakarta.
  6. Continuing the process of relocating the head office to a new building at Jakarta Mori Tower, Jl. Jend. Sudirman Kav. 40-41, Central Jakarta.
  7. Ensuring the direction of Management policies, plans, and strategies for improvement that have been determined can encourage the the Bank’s business growth and in line with the Bank’s Vision and Mission.

In carrying out all business activities, the Bank is committed to creating a positive and sustainable business climate.
To that end, the Bank continuously optimizes each of the business segments as the main foundation in continuing the strategies going forward. The Bank’s strategic plan is implemented through the following strategic policies:

1. Continuing the stages of the 5-year Corporate Plan in 2023, with the theme “Reposition Year”, the direction and policies of the Bank are focused on the following:

  • The Bank will relocate its head office to a new building at Jl. Jend Sudirman Kav. 40-41, Jakarta Central and also launch a new company slogan “Sustain Your Business Growth” as a replacement for the slogan “Your Real Partner”.
  • Emphasizing on the unique values of the Bank and building a strong repositioning in the niche market, it is expected that the Bank will be able to develop a larger business capacity and market share along with income diversification, by not relying solely on interest income.

2. Maintaining and improving the composite rating of the Risk Based Bank Rating (RBBR) at a minimum of Rank 2 or Sound, which includes the risk profile composite rating and the rating of the implementation of Good Governance both individually and in consolidation with the subsidiary, PT Resona Indonesia Finance (PT RIF).


3. Maintaining the risk profile composite rating and Good Governance rating by making improvements on:

  • The compliance function includes managing compliance risk as well as improving the implementation of the Anti-Money Laundering and Combating Financing Terrorism (AML CFT) Program in accordance with applicable regulations.
  • Risk management, including coordinating with Resona Bank, Ltd. to strengthen the implementation of the Bank’s risk management.
  • The internal audit function, both in terms of human resources and audit methodology, and the functions of the committees by effectively enhancing the role of the committees, both committees that support the duties of the Board of Directors and the Board of Commissioners.

4. Continuing the implementation of sustainable financial actions, apart from continuously developing internal capacities through training, the Bank will also initiate studies and development related to sustainable financial products and services.


5. Strengthening the development and management of the portfolio of Local Corporations that have business relationship with Japan, as a manifestation of expanding the customer base accompanied by the development of products and services as well as diversifying sources of income.


6. Continuing communication and cooperation with shareholders: Resona Bank, Ltd., The Bank of Yokohama Ltd., and Daido Life Insurance Company to further expand the market share of Japanese Corporate customers.


7. Maintaining the quality of the loan portfolio with a prudent approach to credit risk management.


8. Continuing efforts to improve the Bank’s infrastructure through the standardization of business and operational processes that can support the Bank’s ability to expand its market share, particularly in lending.


9. Consistently striving to improve the quality of human resources through:

  • Implementing best practices in human resource management including talent management, career paths, performance management linked with remuneration management and implementation of employee engagement programs.
  • The development of a more structured training program that aims at improving the skills of employees that is adjusted to the needs of technical requirements and the development of soft skills including leadership and mindset.
  • Implementation of the main program, which is the training program related to the overall credit process (end to end credit process training), starting from initiation (marketing personnel) to disbursement (credit administration) and handling of non-performing loans, which are also supported by programs related to customer service, improvement of communication and negotiation including changing economic and business situations/conditions.
  • Continuing programs related to risk management, sustainable finance training, and sustainable governance.
  • Conducting effective transfer of knowledge from foreign workforce to local workforce.
  • Retaining talented employees through both financial aspects (competitive remuneration) & non-financial aspects (work comfort & employee engagement).
  • Recruiting human resources based on their competence to get the best talents that meets the needs and conditions of the Bank.
  • Preparing infrastructure and relocate the Bank’s head office at Jl Jend. Sudirman kav.40-41, Central Jakarta, planned for beginning of year 2023.