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BRG Monthly Insights - November 2023
Strategic Role of Financial Services Cluster
The November 2023 BRG Monthly Insights highlights the strategic role of the financial services cluster, consisting of Bank Mandiri, BRI, BNI, BTN, and Perum Peruri, in Indonesia's economy. By 2022, this cluster recorded total assets of IDR 5,296 trillion, up 13% from the previous year, largely contributed by Bank Mandiri, BRI, and BNI, comprising about 92% of the cluster's assets.
Financial Growth and Business Performance
In 2022, the cluster achieved revenues of IDR 376 trillion, a 14% increase from the previous year. Net profits also rose significantly, nearly doubling from IDR 75 trillion to IDR 118 trillion. The increased net profit highlights solid profitability, supported by operational efficiency and effective credit risk management, indicated by declining Non-Performing Loan (NPL) ratios.
Digital Transformation in Banking
Digital transformation has become a key initiative, illustrated by the expansion of digital banking services. Banks have actively enhanced their digital platforms, such as Livin' by Mandiri, BRISPOT, BRImo, BNI Mobile Banking, and AgenBRILink, improving operational efficiency and customer satisfaction.
ESG Implementation in Banking
Environmental, Social, and Governance (ESG) principles have gained strategic importance within Indonesia's state-owned banks. These banks have actively issued Green Bonds and significantly increased their sustainable finance portfolios. Notably, Mandiri's sustainable financing portfolio reached IDR 228 trillion, and BRI reported sustainable loans constituting approximately 66.7% of its total lending.
Human Resource Development
The financial services cluster also prioritizes human resource development. Banks within this cluster conduct intensive employee training programs and develop digital learning platforms to enhance workforce competencies. These efforts are aimed at ensuring sustainable and competitive business growth.