PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk : Corporate Presentation 3Q 2023

CORPORATE PRESENTATION 3Q2023

PT Bank Pembangunan Daerah Jawa Barat dan Banten, Tbk

(Regional Development Bank of West Java and Banten/BJBR)

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Investment Proposition

The Economic Potential of West Java & Banten

Indonesia's 2nd Largest Economic Region (Combined)

Other 36 Provinces

2Q-2023 Regional GDP of West Java & Banten

16.8% of Indonesia's GDP

2Q-22 GRDP Growth	Regional Budget	Population
+5.25%	(West Java)	(Budget 2023)	(June 2023)
+4.83%	(Banten)	Rp 217.6 Tr	62.3 Mn

Formidable Captive Market in a Well-Established Ecosystem

Closed-Loop Penetration in Government-Related Value Chain

Other Banks

Civil Servant Loan in West Java & Banten

~54.4% Market Share (by Person)

Pipeline

Pensioners Loan of Pension Benefit Payment through BJBR

~44.9% Market Share (by Person)

Pioneer of Regional Development Bank (BPD) Synergy

Indonesia's Largest Regional Development Bank

Other 26 BPDs

bank bjb's Market Shares of BPD

17.5% By Total Assets (Bank Only)*

Potential Banking Synergy Among BPD

Total Assets*	Total Net Income*
Rp 933 Tr	Rp 8.1 Tr
(8.5% Shares)	(5.8% Shares)
Rank #5	Rank #5
	*As of 31 July 2023, Bank Only

Transforming From Regional to Nationwide Coverage

With Hybrid-Bank Business Model

Offline Channels
bank bjb	bank bjb's
Distribution	Business Group/KUB
Network	(Ongoing)
14 Provinces	3 Regional Bank's
Online Channels
Digi Mobile User	QRIS Merchant
June 2023 (YoY)	June 2023 (YoY)
+75.0%	+46.6%

The First Movers on

Sustainable Banking in Indonesia

Strong Commitment to ESG Implementation

Sustainable	Gratification Control	SNI ISO 37001
Portfolio	(Collaboration with	(Anti-Bribery
Rp 15.8 Tr	KPK since March, 2011)	Management
		System/SMAP)

MSME and Low Income Segment Empowerment
Empowerment Program	Financing Product

	KUR	FLPP
mesra	2023 Allocation	2023 Allocation
Rp 3 Tr	8.000 Houses

Consistent Dividend Policy Backed By Stable Financial Metrics

Supported by Resilient Business Model

Dividend Per Share	Loan Growth YoY (Bank Only)
Financial Year 2022	+10.1%
Rp 104,55
		Consumer	+6.2%
				Mortgage	+15.5%
				Corporate	+16.4%
				Commercial	+19.1%
				Micro	+12.6%
FY 2020	FY 2021	3Q22	3Q23

GRDP : Gross Regional Domestic Products

2

The Economic Potential of West Java & Banten Region

Indonesia's 2nd Largest Economic Region (Combined)

	Economic Growth			% Contribution to Indonesia's GDP
	2Q2023, BPS					2Q2023, BPS
Indonesia	West Java	Banten
Jakarta		West		Banten	East	Central	Others
+5.17%	+5.25%	+4.83%		Java		Java	Java
16.8			4.0		43.6
	12.9			14.4	8.3

16.8 West Java & Banten

Source of Economic Growth

By Expenditure and Economic Sector, 2Q2023 - Source BPS

		Population
		June 2023, BPS
	Banten	Indonesia
West Java
50.0 Mn	12.3 Mn	278.7 bn
		(West Java alone is
62.3 Mn
	The most populous province)

Government-Related Value Chain

Closed-Loop Penetration

West Java

Source of Growth (%) By Expenditure

GRDP Structure

By Economic Sector (%)

Banten

Source of Growth (%) By Expenditure

GRDP Structure

By Economic Sector (%)

Industry

41.5%

Gross Fixed Capital

0.82

Industry

30.4%

Government		Tax &
Fund	Fiscal Year of 2023	Retribution

Household Consumption

Nett

Export

Gross Fixed

Capital

Formation

3.35	West
Java Growth
0.16
+5.00
1.59

0.15

Others

Growth +5.7% YoY

Trade

14.3%

Growth +3.7% YoY

Agriculture

9.2%

Growth +0.0% YoY

Construction

8.3%

Growth +4.9% YoY

Other 26.7%

Formation

Nett

Export

Household Consumption

1.48	Banten Growth +4.
2.33
68
0.20
Others

Growth +5.8% YoY

Trade

12.5%

Growth +4.4% YoY

Construction

11.4%

Growth +1.2% YoY

Transportation

10.9%

Growth +11.3% YoY

Other 34.8%

	Regional
	State Budget	Revenue
Expenditure	Rp217.6Trillion
Capital	West Java & Banten	Products &
(37 Local Government,
Expenditure	Services
2 Provinces, 13 Cities, 22 Regents)
	Expenditure
	Personnel
	Expenditure

3

Pioneer of Regional Development Bank (BPD) Synergy

Indonesia's Largest Regional Development Bank

Regional Development Bank Financial Performance

(27 BPD, SPI OJK as of 31 July 2023)

Rp Trillion

Market Share (%)

Regional Development Bank Breakdown

Based on Total Assets (Bank Only, 31 July 2023)

Total Assets

Rp933 Tr

950	+6.0% YoY		750
900
850			700
800	8.5	8.5	650
880	933
750	600
	7M-22	7M-23

Total Deposits

Rp742 Tr

+5.1% YoY

9.3	9.2
706	742
7M-22	7M-23

Total Loans

Rp585 Tr

65014	+8.4% YoY		14
			12.0
60012			10.0
		12
			8.0
55010			10
			6.0
5008	8.8	8.7	4.0
		8
	539	585	2.0
4506			6 -
	7M-22	7M-23

Total Net Profits		CAR				17,5%
Rp8.1 Tr		24.8%
		17.5%	(Biggest BPD
-9.6% YoY		20	+236 bps YoY		In Indonesia)
		15	NPL	Others	BPD's		Bank Jatim
		2.4%
			(22 Banks)	Total Assets		11.2%
7.7		10	-2 bps YoY	49.4%	Rp933 Tr
5.8	5	NIM				Bank Jateng
9.0	8.2				8.7%
	5.7%
0			Bank DKI
7M-22	7M-23		-5 bps YoY		Bank Kaltim	8.2%

POJK 12/2020

Banking Consolidation

• BPD must have a Core Capital of a minimum Rp 3 Trillion before 31
  December 2024. If this is not fulfilled, BPD could be downgraded to Rural Bank (BPR).
• The benefit for BPD to become members of Business Group (KUB) is that they only need Core Capital of Rp 1 Trillion and can conduct Banking Synergy in accordance with POJK 12/2021.

Banking Synergy

Business & Infrastructure Synergy (Syndicated

Loan, BI Fast, IT Infrastructure, Tax Payment,

Sharing Expertise, etc)

Benefit : - Dividend & Revenue Sharing as Fee Based Income - Big Data for Market Behavior Analysis

5.0%

Bank Business Group

Kelompok Usaha Bank (KUB)

Financial Performances of BPD with Core Capital < 3 Tr (Exclude BPD with Nett Loss, 2Q2023, Rp Tr)

* On going process to become member of bank bjb's KUB

No	Bank	Core	Total	Total	Total	Profits	CAR (%)	ROE (%)	NPL (%)	NIM (%)
		Capital	Assets	Deposits	Loans	(Rp Mn)
1	Bank Kalsel	2.5	23.3	17.9	11.6	140.6	25.0%	11.9%	3.4%	5.1%
2	Bank Kalteng	2.5	13.1	9.3	9.0	185.8	37.4%	16.0%	1.4%	8.5%
3	Bank Jambi	2.2	12.7	10.0	8.5	208.6	36.4%	19.0%	1.9%	6.4%
4	Bank NTT	2.2	15.7	12.8	11.8	86.0	24.2%	8.0%	2.6%	6.9%
5	Bank SulutGo	1.7	19.7	16.0	14.0	145.3	19.7%	17.3%	2.8%	7.7%
6	Bank Sultra*	1.5	11.8	9.5	8.6	179.9	31.3%	23.8%	1.1%	8.8%
7	Bank NTB Syariah	1.5	13.4	10.3	9.2	111.4	23.4%	14.8%	1.3%	5.6%
8	Bank Maluku Malut*	1.5	9.3	7.4	5.4	65.8	33.1%	8.5%	3.0%	6.4%
9	Bank Sulteng	1.4	11.7	8.1	6.6	139.3	32.3%	21.5%	2.8%	6.0%
10	Bank Banten	1.2	7.5	4.5	3.6	- 24.1	44.6%	-3.8%	9.6%	3.9%
11	Bank Bengkulu*	1.2	8.4	6.8	6.3	53.5	25.5%	9.1%	1.3%	6.1%

4

Pioneer of Regional Development Bank (BPD) Synergy

Bank Business Group (KUB) of bank bjb

bank bjb's KUB Scheme

The Difference Between bank bjb Syariah and BPD

Majority &

Controlling Shareholders

Ownership 99.24%

Total Assets

Total Deposits

KUB Progress Update

Bank Bengkulu

Distribution Channel			Current Ownership Structure
11 Branch	47 Sub Branch	120 ATM	Prov Bengkulu	bank bjb	Others
39.70	7.15	53.15

Key Milestone

Rp 12.3 tr	Rp 9.0 tr
Total Financing	Net Income
Rp 8.3 tr	Rp 42.0 bn

ROE 4.5% NI 5.1% NPF 3.7% FDR 91.5%

11 Jan 2022

29 July 2022

Signing Memorandum of Understanding of KUB

Signing Agreement regarding KUB

• Bank bjb will make a Capital Injection maximum Rp 250 bn to Bank Bengkulu.
• On the same day, bank bjb executed a Capital Injection Phase I amounted Rp 99.9 bn.

Non-Majority &

Joint-Controlling Shareholders

Aiming for Second Largest Shareholders below existing Provincial Government. Joint-Controlling Shareholders with

existing Provincial Government based on a Shareholders Agreement.

BPD will continue to exist with its current identity and will not be merged into bank bjb.

Other Subsidiary Companies (Non KUB)

bjb Sekuritas	BPR Intan Jabar
Ownership 93,75%	Ownership 11,66%

29 Nov 2022	Capital Injection Phase I approved by OJK
- Bank bjb become Bank Bengkulu's Shareholders with 7.15% ownership.
	- This transaction marks the first time BPD has ownership in another BPD, the first step of KUB
	between BPD.
10 March 2023	Granted Approval from EGMS Bank Bengkulu
- Bank bjb to become a Controlling Shareholders of Bank Bengkulu, joint-control with Bengkulu
	Provincial Government based on Shareholders Agreement.
	- Bank Bengkulu to become a member of bank bjb's KUB
23 June 2023	Capital Injection Phase II
- Bank bjb executed a Capital Injection Phase II amounted Rp 149.9 bn (subject to OJK approval).

Next Step

Currently, Bank bjb is seeking approval from the OJK of 1) Capital Injection Phase II ; 2) Fit and Proper Test bank bjb as

an additional Controlling Shareholder of Bank Bengkulu. If all approvals are granted, Bank Bengkulu will officially become a member of bank bjb's KUB.

5

Transforming From Regional to Nationwide Coverage

With Hybrid-Bank Business Model

Strengthen Offline Channels	Enhancing Online Services
14	907	3	Digi Mobile as Omni Channels	Quarterly Transaction Value
	Digi Mobile and ATM, Rp Trillion
			Digi		ATM
Provinces	Office Channels	KUB Synergy
		(On Going)

Quarterly Transaction Volume

Digi Mobile and ATM, in Million

Digi ATM

bjb			17.7
Cardless		14.9
12.6
		11.7
Next Step, Becoming "Smart Mobile Banking"		10.8

47.8

51.1

Multiple Bank

Onboarding Services

Source of Fund

Open Banking Concept

Merging DigiCash

1.3

1Q20

2Q20

3Q20

4Q20

1Q21

2Q21

3Q21

4Q21

1Q22

2Q22

3Q22

4Q22

1Q23

2Q23

3Q23

in Digi Mobile

Artificial Intelligence

Supported By

PT DCI Indonesia

Alibaba Cloud

Solid IT Infrastructure

Tier-IV Data Centre #1 in SEA

Anti D-DOS Online Security

1,631,056

983,655

16.7

15.3

12.7

7.1

1Q20

2Q20

3Q20

4Q20

1Q21

2Q21

3Q21

4Q21

1Q22

2Q22

3Q22

4Q22

1Q23

2Q23

3Q23

Amazon Web Services

Advisory, Sandboxing, People Capacity

16,765

1,106,937				781,922				12,031
			Digi Mobile User				QRIS Merchant
			Sept 2023 (YoY)				Sept 2023 (YoY)
Sept-22		Sept-23	+47.3%	Sept-22		Sept-23	+25.8%	Sept-22

Sept-23

Agent bjb BiSA

• Branchless Banking Agent Sept 2022 (YoY)

+39.3%

6

Commitment for ESG Implementation

Sustainable Banking

Sustainable Portfolio

Rp. 15,8 Trillion

Infrastructure Financing & Government Collaboration

bjb INDAH

Financing for infrastructure projects, government-related procurement and government deficit cash flow.

Other

Environmentally

Bussiness Activity

45.91%

Pollution

Prevention and

Control

7.69%

MSME Business

Activity

29.86%

Financing for

Residential

Construction

Financing for Waste Factory Management System Into Electrical Energy

Land and Water

Biodiversity

Conservation

0.25%

Eco Friendly

Transportation

15.30%

Natural Resources

Management &

Sustainable Land Use

0.86%

Sustainable Water &

Waste Water

Management

0.13%

Financing for Palm

Oil with PHPO

Certification

Financing for Fertilizer Industry

Financing for clean water distribution and supply

Commercial Segment	Corporate Segment
❑ PLTM Cikaengan	❑ Cipali Toll

• Tegal Gede Overpass ❑ Cikampek Elevated Toll
• Awipari Public Market ❑ Several Regional Government

❑ Others

❑ Others

bjb MESRA

Ultra-micro financing based on worship place, joint- responsibility in a group of 5-10 members, maximum loan limit of Rp 5 million, 6-12 month of tenor and zero interest rate. During loan period, bank bjb will provide

mesra assistance with "bjb PESAT" program to increase their business capacities and competencies.

Achievement : 16.303 Person in 1.902 house of worship, 1.389 village in 5 Provinces (West Java, Banten, Jakarta. North Sumatra & Bali)

IDX Carbon

Bank bjb participates in the Carbon Exchange (IDXCarbon) by purchasing carbon credits as part of the roadmap to become a carbon-neutral company.

7

Commitment for ESG Implementation

Sustainable Operation

Digital Village 2.0 Program

Support digitalization in a number of administrative processes and financial services in the Village Administration, such as

Bumdes Current Account, bjb

Pesat, QRIS, bjb BISA, Petani

Milenial, Loan and DPLK.

16.765 agent bjb BiSA

665 Farmer of Petani Milenial

20 Digital Village

Empowering MSME's

bjb PESAT

(Pemberdayaan Ekonomi Masyarakat Terpadu)

Business Capacity

Go Digital

New Entrepreneur

Empowering MSME's (bank bjb debtor's or local community) to increase their business capacity, enhance their digital marketing and create new entrepreneur, by providing assistance in their business activity or through training/seminar.

Paperless Movement

Developing systems that can eliminate or reduce paper use by digitalization business process, such as : SP2D Online, E-Samsat,

Loan E-Form, bjb

Knowledge Management

System (KMS), bjb Virtual

Office.

CSR Program "Tree Planting"

Mangrove seeds	Emission	reduction
10.000	programs	through
	Corporate	Social
Trees Planting	Responsibility	(CSR)
program, "tree	planting",
13.000	that have been carried out

since 2019.

HC Forum, HC Event, HC Journey

1. HC Forum "Benchmarking Culture with Global Banking" with Managing Partner ACT Consulting.
2. HC Event - Appreciation Night bjb Better Award 2023.
3. HC Forum "Gratification Control Program in Shaping Employee
   Professionalism"with
   Representatives from KPK (Corruption Eradication Commission).

Sustainable Governance

SNI ISO 37001
Anti Bribery	Gratification
Management System	Control Unit
(SMAP)
Whistle Blowing	Fraud Detection
System (bjb WBS)	System (FDS)

8

3Q2023 Performance

Consolidated

9

Key Takeaways

Decent QoQ Growth in NII and FBI

Increasing Growth Rate in High-Yield Segmen, Driven by PPPK

	Int Income, Int Expense dan NII		Fee Based Income (FBI) Breakdown
	1Q2023 - 3Q202					3Q23 Compared to 2Q23, Bank Only
2,000					NII					3,600		Total : 495.2
					3,592
					Int Expense			500		22.0
1,950								3,550
				Int Income						45.0
1,900									3,500	Total : 375.9			Others
							3,490				97.4
												11.1
1,850												3,450	44.4				Deposit Related
			3,427
1,800								1,814		3,400	103.7	121.4
												Treasury & Trade
1,750												3,350
			1,728			1,734				111.5				E-Channel
1,700									3,300
							1,756	1,778		209.4
1,650	1,699						3,250				Loan Related
						105.1
1,600												3,2000
			1Q23	2Q23		3Q23	2Q23	3Q23

Number of Civil Servant in	Growth of PPPK Debtors & Market Share	Consumer Loan Growth Rate (YoY)
West Java & Banten (by Person)	in West Java & Banten (by Person)			3Q22 - 3Q23
	Permanent	Contract/PPPK	30000			PPPK Debtors	Market Shares	24.00%
						21.40%
	25000						27,835
								22.00%
Jun 23	423,716	85,879											6.2%
Dec 22	431,289	65,152	20000									20.00%
		17.20%
15000				18,408			18.00%				5.8%
						14,914
										16.00%
Market Share		10000													5.6%
		11,192						14.00%
~54,4%											5.3%
	5000									12.00%		5.2%
(Permanent ASN Only, Jun 2023)	5,343
0										10.00%
				3Q22		4Q22	1Q23		2Q23		3Q23				3Q22		4Q22		1Q23		2Q23		3Q23

NII in 3Q23 showed a slight but positive growth of +1.3% QoQ, reaching Rp 1.78 Tr. This growth can be attributed to a +2.9% QoQ increase in Interest Revenue to Rp 3.6 Tr despite there still being pressure on Interest Expense, which have surged by +4.6% QoQ to Rp 1.81 Tr.

FBI 3Q23 reached Rp 495.2 bn (bank only), reflecting an increase of +31.8% QoQ, primarily driven by a robust growth in Loan-Related activities of +99.2% QoQ to Rp 209.4 bn. Furthermore, E-Channel FBI also increased by +8.9% QoQ, in line with Digi Mobile's transaction growth.

The Civil Servant Law (UU ASN) in 2023 has prompted a shift in status for honorary staff to become contract-based Civil Servants (Pegawai Pemerintah dengan Perjanjian Kerja/PPPK). In general, PPPK has similar rights to the usual Civil Servant. However, they are bound by a specified contract duration, while civil servants typically work until their retirement age. There has been a notable increase in the PPPK population in West Java and Banten, growing by 20,727 individuals (+31.8%) from December 2022 to June 2023, and it is still an ongoing process. This has become a positive catalyst for bank bjb's Consumer Loans (12.6 Loan Yield). This can be seen in the increasing number of PPPK debtors by 9,427 individuals (+51.2%) in 3Q2023 alone, which saw a market share increase from 17.2% in 4Q22 to 21.4% in 2Q23 and increasing Consumer Loans growth rate from 5.6% in 2Q23 to 6.2% in 3Q23. With loans being booked at a reprised-up rate (+25 bps up to +50 bps), Consumer Loans are expected to book a better yield and margin when the benchmark rate starts to decline.

Challenges from The Recent Benchmark Rate Hike and Increasing Provisioning

The recent benchmark rate/7DRR hike (+25 bps to 6%) in October 2023, coupled with a higher for longer outlook, posed challenges for bank bjb to continue optimizing its asset and liability management, especially those that are sensitive to interest rate movements. Additionally, Loan Loss Provision amounted Rp 168 billion in 3Q23 exceeding the usual quarterly provision (+/- Rp 100 billion). Nevertheless, the guidance for FY 2023 will remain intact, particularly with Cost Of Funds expected to remain between 4.25% and 4.75% (4.3% in 3Q2023) and Cost Of Credit staying within the range of 0.1% to 0.3% (0.2% in 3Q2023).

10