PT Bank Maybank Indonesia Tbk : Annual Report Maybank Indonesia 2023

2023

Annual Report

Exceeding

Expectations

PT Bank Maybank Indonesia Tbk

Exceeding

Expectations

"Exceeding Expectations" can be an appropriate expression to describe Maybank Indonesia's presence in the Indonesian banking market and industry to date. The expression manifests itself, for example, when Maybank Indonesia innovates to provide "great" rather than just "good" products and services, or when Maybank Indonesia looks to be a trendsetter and leader in certain fields. "Exceeding Expectations" also describes Maybank Indonesia's commitment to creating added value for shareholders, Maybankers, society, and the community by maintaining excellent levels of growth and financial performance, ensuring work-life balance for Maybankers, and delivering a long-term positive impact for customers,

the community, and the environment.

By 'Exceeding Expectations', Maybank Indonesia will be able to remain relevant in the future as one of the leading banks

in Indonesia.

PT Bank Maybank Indonesia Tbk 2023 Annual Report

1

2	Main	Management
Highlights	Report

Theme

Continuity

2019	2020
The World is
in My Hand	Bank For All

Company	Management Discussion
Profile	and Analysis

2021

Growing With You

As a bank, the way we do business is changing fast, we continuously respond quickly to market change, adopting new technologies, new skills, innovation culture and ways of working, coupled with the increasing expectations of our customers. To stay relevant requires the ability to adapt and innovate to deliver a whole new level of banking transaction experience to the customers in a digital world.

At Maybank Indonesia, we worked hard to adapt to customers' evolving mobile lifestyle needs by innovating products and services that enable customers to bank anytime, anywhere, fast and secure. The emphasis is on ensuring multi-channel access so that our customers see seamlessness in our offerings.

As we constantly adapt and innovate in a digital lifestyle mobility, our goal remains the same: To bring the next level of customer experience at all customer touchpoints, delivering a new benchmark of digital banking and making the world is in our hand.

It certainly was not business as usual in 2020. The Coronavirus Disease 2019 (COVID-19) pandemic caused an escalation in risk, volatility and uncertainty. COVID-19 also led to the implementation of mobility restriction and social distancing. The Bank sought to adapt swiftly in managing banking operations to minimize the impact of economic activity decline towards the sustainability and operating profit of the Bank. In order to stay connected and continue to transact, online transaction or digital has been the key choice among society for various activities or needs. The pandemic thus became the impetus to accelerate the strategy of digital transformation; one that has been consistently carried out by Maybank Indonesia over the past few years.

In 2020, M2U application was continuously improved along with the refinement and development of new features in order to be at the forefront in serving customers' need regardless of distance, time, or the need for face-to-face interactions. Maybank Indonesia also continues to expand its digital ecosystem by developing more and more digital banking solutions with the advantages of being more practical, faster speed, and secured transactions. All products and services are designed to fulfill various needs of Maybank Indonesia's different customer segmentations, among others Young Professional, Young Families, Silver Age, and Golden Age.

With consistency to build excellence in serving all communities with quality product innovation, simple process, and digital connectivity, Maybank Indonesia continue to strengthen its position as a BANK FOR ALL, now and in the future.

Amidst the challenges, Maybank Indonesia's commitment to grow and benefit all stakeholders has never wavered. Driven by ingenuity, creativity, and resilience, Maybank Indonesia has continued to grow as a business entity together with communities. The growth is founded upon environment, social, and governance principles that are increasingly important for a world that is more equitable, prosperous, and more sustainable

PT Bank Maybank Indonesia Tbk 2023 Annual Report

Functional	Good Corporate	Corporate Social	Consolidated Financial
Review	Governance	Responsibility	Statements

2022

One Bank

Impacting Many

The theme for the 2022 report reflects Maybank Indonesia's position as a financial institution that continues to create a positive impact on customers, communities and the environment. Efforts that are manifested include through digital banking innovations according to changes in customer preferences, a commitment to implementing sustainable finance, and a focus on Environmental, Social and Governance (ESG) aspects in banking operations. The theme also represents the spirit of 'One Maybank', an initiative to maximize synergies between Maybank Group entities in Indonesia in order to present a more comprehensive financial solution service for service users, as a differentiating strategic factor that provides added value to Maybank Indonesia in the long term.

2023

Exceeding

Expectations

"Exceeding Expectations" can be an appropriate expression to describe Maybank Indonesia's presence in the Indonesian banking market and industry to date. The expression manifests itself, for example, when Maybank Indonesia innovates to provide "great" rather than just "good" products and services, or when Maybank Indonesia looks to be a trendsetter and leader in certain fields. "Exceeding Expectations" also describes Maybank Indonesia's commitment to creating added value for shareholders, Maybankers, society, and the community by maintaining excellent levels of growth and financial performance, ensuring work-life balance for Maybankers, and delivering a long-term positive impact for customers, the community, and the environment.

By 'Exceeding Expectations', Maybank Indonesia will be able to remain relevant in the future as one of the leading banks in Indonesia.

PT Bank Maybank Indonesia Tbk 2023 Annual Report

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4	Main	Management	Company	Management Discussion
Highlights	Report	Profile	and Analysis

Table of

Contents

The content structure of the Maybank Indonesia Annual Report refers to the Annual Report writing guidelines and regulations that prevail in Indonesia.

Referring to the Integrated Report framework recently issued by International Integrated Reporting Council (IIRC), which suggests that an annual report shall refer to 6 (six) capitals namely Financial, Manufactured, Intellectual, Human, Relationship & Social and Natural, then principally, Maybank Indonesia's 2023 Annual Report has covered discussion on the referred six capitals.

Below is Maybank Indonesia Annual Report's content when viewed under the 6-capital scheme suggested by IIRC for an annual report writing.

Laporan Tahunan	Laporan Terintegrasi
Maybank Indonesia	Capital
Main Highlights	Summary of 6 capital
Management Report	Summary of 6 capital
Company Profile	Manufactured, Intellectual &
Relationship
Management Discussion and	Financial, Intellectual &
Analysis	Manufactured
Functional Review	Manufactured, Human &
Intellectual
Corporate Governance Report	Relationship & Social
Corporate Social Responsibility	Relationship & Social
Consolidated Financial	Financial

2 Theme Continuity

1. Disclaimer and Limitation of Liability
2. Our Competitive Advantage
3. Maybank Group Strategy

1. 7 Initiative Programmes Uplift Indonesia
2. 12 Pillars Uplift Indonesia
3. Strategic Policies (Strategic Thrust) 'Uplift Indonesia'

1. Key Achievement 2023

1. Sustainable Finance Update

1. ESG and Sustainability 2023
2. Support Maybank Group Sustainability Commitment
3. Initiatives and Digital Performance Achievements
4. New Feature Launched in 2023

MAIN HIGHLIGHTS	01
28	Financial Highlights
32	Operational Highlights
33	Shares Highlights
35	Bond, Sukuk, or Convertible Bond Highlights
36	Corporate Ratings
38	Event Highlights in 2023
41	Maybank Sustainability Day 2023
44	Awards and Certifications

MANAGEMENT REPORT02

1. Report of the Board of Commissioners

1. Report of the Board of Directors

1. Report from the Shariah Supervisory Board

1. Statements of Accountability for
   2023 Annual Report by the Board of Commissioners of PT Bank Maybank Indonesia Tbk
2. Statements of Accountability for
   2023 Annual Report by the Board of Directors of PT Bank Maybank Indonesia Tbk

COMPANY PROFILE	03

1. General Bank Information

1. Maybank Indonesia in Brief

1. Corporate Logo and Identity
2. Our Journey

1. Organisational Structure

1. Vision, Mission, and Corporate Culture

1. Core Business

1. Products and Services

1. Board of Commissioners Profile

1. Board of Directors Profile

1. Changes in the Composition of Management after Fiscal Year
2. Senior Management Profile

1. Employee Statistics and Profiles

1. Shareholding Composition

1. Corporate Group Structure
2. Maybank Group Profile
3. Subsidiaries and Joint Ventures

1. Share Listing Chronology

1. Other Securities Listing Chronology

1. Ratings
2. Public Accountant & Public Accountant Firm Services
3. Capital Market Supporting Institutions and Professions
4. Information on Corporate Website
5. Operational Areas

1. Branch Offices Address

MANAGEMENT DISCUSSION	04
AND ANALYSIS

1. Macro Economic Overview

1. Global Banking

1. Community Financial Services (CFS)

1. Shariah Banking

1. Maybank Finance

1. WOM Finance

1. Profitability By Segments

1. Financial Review

1. Financial Performance Analysis

1. General Discussion of The Bank's Financial Performance

1. Consolidated Statement of Financial Position

199 Consolidated Statement of Incomes and Other Comprehensive Incomes

1. Consolidated Statement of Cash Flows
2. Key Financial Ratios
3. Prime Lending Rate
4. Commitments and Contingencies

1. Other Material Information

1. Capital Structure

1. Investment Property

1. Material Commitment for Investment in Capital Goods

1. Realized Capital Investments in The Last Fiscal Year

1. Material Information and Subsequent Events

1. Comparison of Targets And Realisation in 2023 and Projections for 2024
2. Dividend Distribution Policy
3. Employee And/Or Management Share Ownership Program

1. Realization of The Use of Proceeds from The Public Offering

PT Bank Maybank Indonesia Tbk 2023 Annual Report

Functional	Good Corporate	Corporate Social	Consolidated Financial
Review	Governance	Responsibility	Statements

212 Important Changes in The Bank and Bank Business Groups in 2023

212 Prohibitions, Restrictions and Significant Constraints on The Transfer of Funds Between The Bank and other Entities in The Group

1. Provision of Funds, Commitments, and Other Facilities

1. Other Significant Transactions in Significant Amounts
2. Information on Transactions Related To Investment, Expansion, Divestment, Acquisition, and Restructuring

1. Material Transactions That Contain Conflicts of Interest and Transactions With Affiliated Parties/Related Parties
2. Transactions with Affiliated/Related Parties
3. Changes in Laws and Regulations That Have a Significant Impact on The Bank

1. Compliance as a Taxpayer
2. Marketing Aspects

1. Business Outlook
2. Business Continuity

226 Guidelines and Support of Maybank Group on The 2024 Business Sustainability Plan

226 The Bank's Commitment to Environment, Social, and Governance (LST)

228 Results and Progress Achieved by Maybank Indonesia

FUNCTIONAL REVIEW	05

238 Human Capital

1. Information Technology

1. Marketing and Networking

1. Operations and Customer Services

1. Risk Management

GOOD CORPORATE GOVERNANCE 06

402 Good Corporate Governance

1. Corporate Governance Policy Basis
2. Year-On-YearFocus of Governance Implementation

1. Corporate Governance Roadmap
2. Bank's Governance Structure
3. Self-AssessmentResults of Good Corporate Governance Implementation in 2023
4. Information on Major and Controlling Shareholders
5. General Meeting of Shareholders

1. Board of Commissioners

1. Board of Directors

1. Affiliation between Board of Commissioners, Board of Directors and Majority/Controlling Shareholders
2. Board of Commissioners and Directors Diversity Policy

1. Committees of the Board of Commissioners

1. Remuneration Policy

1. Committees of the Board of Directors

1. Corporate Secretary

1. Corporate Security Management
2. Compliance Working Unit

1. Administrative Sanctions
2. Anti-MoneyLaundering and Countering Financing of Terrorism (AML-CFT) Unit

1. Whistleblowing System and Anti-Fraud

1. Legal Issues

1. Taxation Management and Control
2. Internal Audit Working Unit

1. Intern Control System

1. Investor Relations
2. Risk Management

542 Public Accountant/External Auditor

1. Access to Company Information and Data

1. Code of Ethics and Code of Conducts

1. Corporate Culture
2. Transparency of Financial and Non-Financial Conditions that Have not Been Disclosed in Other Report
3. Quarterly Publication Report
4. Provision of Funds to Related Party and Large Exposure
5. Provision of Funds for Social and Political Activities
6. Procurement Policy of Goods and Services
7. Customer Protection Policy

1. Corruption Policy & Anti-Fraud Strategy Implementation
2. Creditors Policy

1. Dividend Distribution Policy
2. Conflict of Interest Policy (including Insider Trading)
3. Affiliated Transactions and Conflict of Interest Transactions

1. Bad Corporate Governance Practices

1. Bank Strategic Plan

1. Ratio of Highest and Lowest Salary and Variable Remuneration Received by Employees
2. Implementation of OJK Public Company Governance Guidelines

1. General Guidelines for Indonesian Corporate Governance (PUGKI)

1. Implementation of Corporate Governance Aspects and Principles in Accordance with the Guidelines of Corporate Governance Principles for Banks Issued by the Basel Committee in Banking Supervision

1. Integrated Governance Implementation Report

1. Implementation of the ASEAN Corporate Governance (CG) Scorecards

1. Board of Commissioners Approval Sheet Good Corporate Governance (GCG) Implementation Report 2023
2. Board of Directors Approval Sheet Good Corporate Governance (GCG) Implementation Report 2023
3. Shariah Business Unit Good Corporate Governance (GCG) Report 2023

CORPORATE SOCIAL	07
RESPONSIBILITY

611 Policy on the Implementation of Social and Environmental Responsibility

1. Implementation of Sustainable Finance as the Foundation for the Implementation of Social and Environmental Responsibility by Maybank Indonesia
2. 2023 Sustainability Achievements

612 Economic, Environment, and Social Performance

616	MAYBANK INDONESIA
	CONSOLIDATED FINANCIAL
	STATEMENTS 2023
982	PARENT COMPANY CONSOLIDATED
	FINANCIAL STATEMENTS

Financial Services Authority Circular Letter

No. 9/SEOJK.03/2020: Transparency and Publication of

Conventional Commercial Bank Reports

SEOJK No. 16/SEOJK.04/2021: Annual Report of Public

Company

PT Bank Maybank Indonesia Tbk 2023 Annual Report

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6	Main	Management	Company	Management Discussion
Highlights	Report	Profile	and Analysis

Disclaimer and

Limitation of Liability

The Annual Report discloses the projections, plans, strategies, policies, and objectives of the Bank, which are classified as forward-looking statements in the implementation of the prevailing regulations, except for historical matters.

These statements involve potential risks, uncertainties, and may materially differ in their actual developments from those reported herein.

The prospective statements in this Annual Report are prepared on the basis of various assumptions regarding the current and future conditions of the Bank as well as the business environment in which the Bank conducts its business. The Bank does not guarantee that these documents whose validity have been ascertained will bring expected results.

The annual report contains the words "Bank," "Maybank Indonesia," and "Bank Maybank Indonesia" which are defined as PT Bank Maybank Indonesia Tbk engaged in banking activities. Often times the word "the Company" is also used for ease of reference to address PT Bank Maybank Indonesia Tbk in general.

PT Bank Maybank Indonesia Tbk 2023 Annual Report

Functional	Good Corporate	Corporate Social	Consolidated Financial
Review	Governance	Responsibility	Statements

Our Competitive

Advantage

High Quality Services

The Bank consistently strives to be relevant by

01 maintaining this competitive advantage and will continue to make sustainable customer service improvements.

02	Simplicity of Process
The Bank consistently enhances efficiency and
simplification towards operational processes through

simplified transaction and digitization processes.

Innovative Products

Sustainable Digital Banking (M2U & M2E)

03 development which experiences a significant business growth becoming a product solution that is relevant to customers' banking needs.

Regionally Connected

The Bank is one of the leading banks in Indonesia with a nationwide branch network and strengthened by a

04 regional network of the Maybank Group in the ASEAN region with home markets of Malaysia, Singapore and Indonesia.

PT Bank Maybank Indonesia Tbk 2023 Annual Report

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8	Main	Management	Company	Management Discussion
Highlights	Report	Profile	and Analysis

Maybank Group

Strategy

M25+: FROM GOOD TO GREAT

Maybank Group introduced an extensive suite of solutions, implemented through the 12 Strategic Programmes, to help its customers and communities through unprecedented times. The M25+ strategy will direct the Group on a deeper purpose of becoming a "Values- Driven Platform, Powered by a Bionic Workforce that Humanises Financial Services".

Infusing the principles of ethical banking (fairness, inclusivity, preservation of environment and exclusion of harmful activities to mankind) as a differentiator to drive economic value for the Group

Upskilling and equipping Maybankers with the right technological capabilities, further unlocking their potential

"We are a values-driven platform, powered by a bionic workforce that Humanises Financial Services"

	Providing customers with hyper-personalised
Orchestrating digital ecosystems and	solutions to support them through their life
integrating customer offerings across the region	journeys and serving the Community as the Force
	for Good

MAYBANK INDONESIA'S M25+ IS BASED ON 5 KEY STRATEGIC THRUSTS AS FURTHER ARTICULATED IN THE UPLIFT INDONESIA PROGRAM INTO 7 INITIATIVES

KEY STRATEGIC THRUSTS IN MAYBANK INDONESIA'S M25+

Building on the foundation laid by the M25 plan, M25+ will reinforce the push for more meaningful differentiation across five key strategic thrusts and create firmer foundational capabilities for long-term sustainable growth.

01

Intensify Customer-centricity

Full agile and iterative Minimum Viable Product (MVP) approach, through customer journeys and imagining the end-state model

02

Accelerate Digitalisation and Technology Modernisation

End-to-end STP platform that integrates with ecosystems within and beyond banking

03

Strengthen Maybank's position beyond Malaysia

Regionalisation of business and product solutions, and technological platforms and applications, with clear leadership in Malaysia

04

Drive Leadership in Sustainability Agenda

Expanded scope to embrace ethical banking principles, deepening social impact and execution of decarbonisation strategy

05

Achieve True Global Leadership in Islamic Banking

Global Islamic wealth management (IWM), Singapore as hub and Middle East/ASEAN countries as spoke

PT Bank Maybank Indonesia Tbk 2023 Annual Report