Record Positive Performance, Bank Jatim Spread Fantastic Dividend Rp 816 Billion

Date: 07 february 2024

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SURABAYA, February 7, 2024. PT Bank Pembangunan Daerah Jawa Timur Tbk (bankjatim) has held the Annual General Meeting of Shareholders (GMS) for the fiscal year 2023. The event was held in the Bromo Room, bankjatim Surabaya Head Office on Wednesday (7/2). Directly present at the GMS was East Java Governor Khofifah Indar Parawansa who represented the East Java Provincial Government as the controlling shareholder along with the entire board of commissioners and directors of bankjatim.

The agenda of the Annual GMS for the fiscal year 2023 consists of: 1. Approval of the Company's Annual Report Regarding the State of the Company During the Fiscal Year 2023. Including the Report on the Implementation of the Supervisory Duties of the Board of Commissioners During the Fiscal Year 2023 and Ratification of the Company's Financial Statements for the Fiscal Year 2023; 2. Determination of the Use of the Company's Net Income for the Fiscal Year 2023. Including the Provision of Bonuses for Employees as well as Tantiem and Remuneration for the Board of Directors and the Board of Commissioners; 3. Granting Authorization to the Board of Commissioners to Appoint a Public Accounting Firm to Audit the Company's Financial Statements for the Financial Year 2024; 4. Approval of the Company's Corporate Action; 5. Changes to the Pension Fund Regulations; 6. Changes to the Company's Management Composition;

On the occasion, East Java Governor Khofifah Indar Parawansa explained that East Java's economic growth has been very positive so far. The achievement of East Java GRDP managed to show a contribution of 14.22 percent of the formation of Indonesia's GDP and 24.99 percent of GRDP for the island of Java.

In addition, financial system stability in East Java in the 3rd quarter of 2023 was also observed to be well maintained. Based on OJK data, the capital adequacy ratio, liquidity adequacy, and credit risk of banks are still maintained at safe limits which of course adjust to the benchmark interest rate in accordance with the policy.

"The credit structure in East Java is dominated by household credit which contributes 28 percent, followed by trade credit which contributes 26.10 percent, and industrial credit contributes 21 percent. This reflects that the adoption of credit in the household community contributes massively to financial transactions regionally," said Khofifah.

The following is OJK data as of September 2023 which shows that the performance of the banking sector in East Java continues to grow. This can be seen from the growth of banking assets which increased by 5.46 percent to Rp 89.1 trillion. Then, Third Party Funds increased by 3.74 percent to Rp 741.1 trillion, and credit provided increased by 5.66 percent to Rp 558.3 trillion.

Khofifah emphasized that bankjatim as a BUMD certainly plays a very important role in supporting the economic growth of East Java. Through financing and financial support, bankjatim has encouraged key sectors in the economy including supporting the development of MSMEs in East Java. "Thank you for all the efforts of bankjatim," she continued.

Khofifah also mentioned, as is well known, cooperatives and MSMEs are still the backbone of the East Java economy. The contribution to East Java's GRDP continues to increase every year. The target for 2023-2024 is 58.5 - 58.9 percent.

"Some time ago we were present in Bojonegoro to inaugurate a corporation formed from a cooperative. Usually corporations form cooperatives, but this cooperative forms a corporation. Things like this we think can be a reference for bankjatim to expand how a cooperative then encouraged to be able to form a corporation. And once opened, it has recruited 3,090 workers," he explained.

According to Khofifah, another form of bankjatim's support for MSMEs is through the revolving fund acceleration program or dagulir. Which until December 2023 the amount of dagulir that has been distributed by bankjatim reached Rp 475.97 billion for 12,525 debtors.

In addition to MSMEs, bankjatim is also known to contribute to ultra-micro businesses. "Since 3 years ago, BUMDs in the East Java Provincial Government have been involved in the process of distributing productive zakat assistance to ultra-micro business people. So the ultra-micro business actors are given a productive zakat of 500 thousand," said Khofifah. These business actors are very vulnerable to the possibility of being trapped by loan sharks. So far, the distribution of productive zakat has reached Rp 929.71 million and has been given to 1,859 people.

On that occasion, Khofifah advised that 2024 is a political year for many countries. There are at least 57 countries that will hold elections this year. In addition to the Indonesian elections, there are also several elections that have the potential to attract world attention. Such as the US election in November, the Indian election in April, and the Russian election in March. A study states that economic policy uncertainty will increase to 13 percent higher in the month before and after an election. The uncertainty increases because there is a polarization of views to the wait-and-see attitude of investors.

Despite the uncertainty, Khofifah emphasized, however, banking industry players must be able to assess the dynamics that occur. This includes a reassessment of the potential risks that accompany these dynamics. For example, credit risk, market risk, and liquidity risk.

"bankjatim as part of the banking is also required to respond and adapt quickly, continue to play an active role in supporting the economic resilience of the region, and carry out an educational role by providing objective information related to political and economic issues to the community," he said. He also hopes that bankjatim will continue to be committed to increasing the contribution of local revenue and building the economy of East Java in order to improve the national economy.

Meanwhile, President Director of bankjatim Busrul Iman explained, in the midst of dynamic national and regional economic conditions, bankjatim was able to record financial performance in Fiscal Year 2023 very well. Its total assets reached Rp 103.85 trillion or grew 0.80% compared to the previous year (YoY) and net profit in 2023 was recorded at Rp 1.47 trillion. "The credit expansion we provided was at Rp 54.76 trillion or an increase of 18.54% (YoY). The lending figure grew above the average national credit growth of only 10.3%," he said.

As for the composition of bankjatim lending, consumptive loans amounted to Rp 31.2 trillion or increased by 8.91% (YoY) and productive loans amounted to Rp 23.5 trillion or grew exponentially 34.28% (YoY). These results are very significant to credit growth, especially in this case is productive credit. This condition is bankjatim's success in implementing segmentation strategies, modernizing business models, setting targets and measurable monitoring, as well as shifting patterns of Account Officer personnel. On the other hand, consumptive credit as a captive market bankjatim, also still has potential through moments such as the acceptance of new ASN, ASN periodic salary increases, school admissions, vacations, etc.

Furthermore, the Company's productive lending in terms of the economy is grouped into several categories. Among them are: wholesale and retail trade amounting to Rp 7.15 trillion; construction amounting to Rp 3.79 trillion; manufacturing industry amounting to Rp 3.10 trillion; agriculture, hunting and forestry amounting to Rp 2.55 trillion; financial intermediaries Rp 2 trillion; community services, social culture, entertainment, and other individuals Rp 1.8 trillion; provision of accommodation and provision of eating and drinking Rp 429 billion and others Rp 1.1 trillion.

"This is in accordance with bankjatim's mission, which is to contribute to the economic growth of East Java through lending to productive businesses that are sustainable and provide a multiplier effect," added Busrul.

Throughout 2023, bankjatim also constantly adapts to existing development conditions. One of them is through digitalization-based services that have been implemented throughout the bankjatim ecosystem. Of course this is able to become the strength of the company which is a strategic partner for the Regional Government in East Java, MSMEs, and the community.

"In general, bankjatim JConnect digital services have experienced good growth in the number of users, transaction frequency, and transaction nominal. JConnect Mobile as the application with the largest user continues to experience feature development that will further facilitate customers in digital financial transactions, "said Busrul.

Throughout 2023, JConnect Mobile users successfully reached 641,266 users or grew 29% (YoY). Then for the nominal transaction it was at Rp 42 trillion, up 45% (YoY). Furthermore, JConnect IB Corporate users are at 8,319 or up 31% (YoY) with a nominal transaction of Rp 11.7 trillion. Not only that, the number of Jatim Agents throughout 2023 also grew 76 percent (YoY) to 8,066 with a total transaction of Rp 92.3 billion.

Meanwhile, for this year 2024, bankjatim has planned to launch New JConnect Mobile. Progress is now still in the OJK licensing process. In the New JConnect Mobile there will be a total of 94 features. With details, 36 new features and 58 existing features.

Not stopping there, bankjatim still continues to innovate to support the digitalization of local government finance. One of them, Electronification of Local Government Transactions (ETPD) which will facilitate customers in conducting financial interactions with local government services digitally. In addition, the company has also uniformed and integrated the regional expenditure financial system through the Regional Government Information System (SIPD) in all areas of East Java and has integrated the Village Financial System (Siskeudes) in 595 villages. "In essence, the company as a strategic partner of the local government, always continues to synergize and align the East Java Provincial program with the company's business and operations, as Nawa Bhakti Satya," Busrul added.

In 2023, bankjatim has also allocated Corporate Social Responsibility (CSR) funds of Rp 17.4 billion which are divided into the education, health, culture and social sectors. Through CSR, the issuer with the code BJTM hopes to take part in efforts to encourage progress, empower and create community independence, and improve the local economy. In addition, the implementation of CSR programs is also a form of bankjatim's support for the implementation of a sustainable financial system.

Busrul also revealed that to support the company's vision of becoming BPD No.1 in Indonesia, in 2023, management has launched 5 Pillars of Transformation. Where the pillars consist of: Organizational Structure Change, Human Capital Transformation, Rule Making Rules, Digital Banking ≈ Information Technology Development, and Capital Participation Corporate Action. As of December 2023, the transformation process has been running at 90%.

On the fifth pillar, Capital Participation Corporate Action, bankjatim intends to grow exponentially. Not only through organic processes, but also inorganic as in the implementation of the Bank Business Group (KUB). This step is carried out in accordance with the provisions of POJK No. 12/POJK.03/2020 concerning Commercial Bank Consolidation. The aim is to increase the business base, expand consumer reach, and distribution channels with the aim of achieving accelerated growth. "We are currently completing the KUB process with BPD NTB Syariah. In addition, it is also in progress with BPD Lampung and is in the exploratory stage with BPD Banten," Busrul added.

Marked by the near completion of the existing transformation process, the year 2024 can be used as a momentum for higher business acceleration in achieving the vision of bankjatim to become BPD No.1 in Indonesia. Following up on this, management set performance targets in 2024, namely total assets increased by Rp117.29 Trillion or grew 12.94% (YoY); lending increased by Rp66.83 Trillion or grew 22.04% (YoY); Third Party Fund Raising grew by Rp100.31 Trillion or grew 28.28% (YoY); and Net Profit increased by Rp1.68 Trillion or grew 14.33% (YoY).

Meanwhile, in the Annual GMS for the fiscal year 2023, bankjatim managed to distribute dividends of Rp 54.39 / share. The value increased from the previous year's dividend of Rp 53.09 / share. So that overall, the total dividends distributed to shareholders are at Rp 816,692,940,679.98 or 55.55% of the net profit for fiscal year 2023. The dividend distribution, which always increases every year, is able to make BJTM shares one of the favorite stocks of people's choice in investing.

At the Annual GMS for the fiscal year 2023 this time, there was also an agenda for changes in the composition of the company's management, one of which was the honorable dismissal of Compliance Director Tonny Prasetyo where the time of the annual GMS for the fiscal year 2023 his term of office had ended. Bankjatim would like to thank you very much for the dedication and performance that has been given to bankjatim.

In addition, bankjatim also honorably dismissed members of the Board of Commissioners of bankjatim Alm. Suprajarto as President Commissioner and Candra Fajri Ananda as Independent Commissioner. Then, based on the results of the Annual GMS for the fiscal year 2023, bankjatim also appointed Umi Rodiyah as Compliance Director of bankjatim.

As for the composition of the Board of Commissioners and Board of Directors of bankjatim after the implementation of the Annual GMS for the Financial Year 2023 as follows: Independent Commissioner: Muhammad Mas'ud Independent Commissioner: Sumaryono Commissioner: Adhy Karyono President Director: Busrul Iman Director of Finance, Treasury & Global Services : Edi Masrianto Director of Micro, Retail and Medium : R. Arief Wicaksono Director of IT & Digital: Zulhelfi Abidin Director of Risk Management: Eko Susetyono Director of Operations: Arif Suhirman Compliance Director: Umi Rodiyah