Q2 2026 PT Bank Rakyat Indonesia (Persero) Tbk Earnings Call

Speaker #1: Good morning, everyone, and thank you for joining Bangladesh Indonesia's first half 2026 running call. We truly appreciate your time and continued interest in BRI.

Speaker #1: Before we begin, please allow me to introduce the members of our board of directors who are joining us today: our group CEO, Pak Heri Gunardi;

Speaker #2: Good morning, everyone.

Speaker #1: Our Director of Finance and Strategy, Pak Ahmad Royadi;

Siaga Tbk): Good morning everyone, and thank you for joining Bank BRI Indonesia's H1 2026 earnings call. We truly appreciate your time and continued interest in BRI. Before we begin, please allow me to introduce a member of our board of directors who are joining us today. Our Group CEO, Pak Hery Gunardi.

Siaga Hutama: Good morning everyone, and thank you for joining Bank Rakyat Indonesia's H1 2026 earnings call. We truly appreciate your time and continued interest in BRI. Before we begin, please allow me to introduce members of our board of directors who are joining us today. Our Group CEO, Pak Hery Gunardi.

Speaker #3: Morning, everyone.

Speaker #1: Our Director of Micro, Pak Ahmad Purwakajaya;

Speaker #2: Good morning.

Hery Gunardi Tbk): Good morning everyone.

Hery Gunardi: Good morning everyone.

Speaker #3: Morning.

Speaker #1: Our Director of Risk Management, Ibu Eti;

Siaga Tbk): Our Director of Finance Strategy, Pak Achmad Royadi.

Siaga Hutama: Our Director of Finance Strategy, Pak Achmad Royadi.

Speaker #3: Good morning.

Speaker #1: Our Director of Consumer Banking, Pak Aris;

Speaker #2: Good morning.

Achmad Royadi Tbk): Morning everyone.

Achmad Royadi: Morning everyone.

Speaker #1: Our Director of Corporate Banking, Pak Riko Tasmaya;

Siaga Tbk): Our Director of Micro, Pak Akhmad Purwakajaya.

Siaga Hutama: Our Director of Micro, Pak Akhmad Purwakajaya.

Speaker #2: Good morning, everyone.

Speaker #1: And Director of Commercial Banking, Pak Dipo;

Akhmad Purwakajaya Tbk): Morning.

Akhmad Purwakajaya: Morning.

Speaker #2: Morning, everyone.

Tbk): Morning.

Speaker #1: Before we move into presentations, just a couple of quick housekeeping points. First, we encourage you to download the presentation materials available on our website, or through the link shared earlier this morning.

Siaga Tbk): Our Director of Risk Management, Ibu Ety.

Siaga Hutama: Our Director of Risk Management, Ibu Ety.

Ety Yuniarti Tbk): Good morning.

Ety Yuniarti: Good morning.

Siaga Tbk): Our Director of Consumer Banking, Pak Aris.

Siaga Hutama: Our Director of Consumer Banking, Pak Aris.

Speaker #1: Second, during the Q&A session, please raise your hand and we will unmute inside you to unmute and discuss your question. With that, I will now hand over to Pak Heri Gunardi, our group CEO, to begin the presentation.

Aris Hartanto Tbk): Good morning.

Aris Hartanto: Good morning.

Siaga Tbk): Our Director of Corporate Banking, Pak Riko Tasmaya.

Siaga Hutama: Our Director of Corporate Banking, Pak Riko Tasmaya.

Riko Tasmaya Tbk): Good morning everyone.

Riko Tasmaya: Good morning everyone.

Siaga Tbk): Director of Commercial Banking, Pak Dipo.

Siaga Hutama: Director of Commercial Banking, Pak Dippo.

Speaker #1: Please, Pak.

Dipo Tbk): Morning everyone.

Alexander Dippo: Morning everyone.

Speaker #2: Thank you, Siaga. Good morning, everyone, and thank you for joining us. Before discussing our results, let me briefly touch on the micro-environment vision policy responses and how BRI is navigating this development.

Siaga Tbk): Before we move into presentation, just a couple of quick housekeeping points. First, we encourage you to download the presentation materials available on our website or through the link shared earlier this morning. Second, during the Q&A session, please raise your hand and we will invite you to unmute and ask your question. With that, I will now hand over to Pak Hery Gunardi, our Group CEO, to begin the presentation. Please, Pak.

Siaga Hutama: Before we move into presentation, just a couple of quick housekeeping points. First, we encourage you to download the presentation materials available on our website or through the link shared earlier this morning. Second, during the Q&A session, please raise your hand and we will invite you to unmute and ask your question. With that, I will now hand over to Pak Hery Gunardi, our Group CEO, to begin the presentation. Please, Pak.

Speaker #2: Despite an increasingly uncertain global macroeconomy, marked by the geographical tensions, trade fragmentation, and tighter global financial conditions, Indonesia continues to demonstrate macroeconomic resilience. GDP growth remains resilient at 5.29% year-on-year in the second quarter of 2026, supported by consumption, 53.3% of GDP, with improving lower-middle-income spending in food and beverage and clothing.

Hery Gunardi Tbk): Thank you, Siaga. Good morning everyone, and thank you for joining us. Before discussing our result, let me briefly touch on the microenvironment, recent policy responses, and how BRI is navigating this development. Despite an increasingly uncertain global macroeconomy marked by the geopolitical tensions, trade fragmentation, and tighter global financial condition, Indonesia continues to demonstrate macroeconomic resilience. GDP growth remained resilient at 5.29% year-on-year in Q2 2026, supported by consumption 53.3% of GDP, with improving lower middle income spending in food and beverage and clothing. Inflation remained within BI target range, while the rupiah has stabilized and BI rate remain at 5.75%. Recent SRBI auction yield also is to around 7% from 7.7% in June, indicating improving funding condition and supporting domestic liquidity.

Hery Gunardi: Thank you, Siaga. Good morning everyone, and thank you for joining us. Before discussing our result, let me briefly touch on the microenvironment, recent policy responses, and how BRI is navigating this development. Despite an increasingly uncertain global macroeconomy marked by the geopolitical tensions, trade fragmentation, and tighter global financial condition, Indonesia continues to demonstrate macroeconomic resilience. GDP growth remained resilient at 5.29% year-on-year in Q2 2026, supported by consumption 53.3% of GDP, with improving lower middle income spending in food and beverage and clothing. Inflation remained within BI target range, while the rupiah has stabilized and BI rate remain at 5.75%. Recent SRBI auction yield also is to around 7% from 7.7% in June, indicating improving funding condition and supporting domestic liquidity.

Speaker #2: Inflation remains within BI target range, while the rupiah has stabilized and BI rate remains at 5.75%, recent SRBI auction yield also is to around 7% from 7 to 0.7% in June, indicating improving funding conditions and supporting domestic liquidity.

Speaker #2: For BRI, this creates a favorable but selectively growth environment, improving purchasing power should gradually support transitions transaction funding and also financing demand across our core MSME ecosystem.

Speaker #2: At the same time, still fragile recovery at the lower-end reinforces the importance of disciplined growth, strong underwriting, and also continued focus on asset quality.

Hery Gunardi Tbk): For BRI, this create a favorable but selectively growth environment, improving purchasing power should gradually support transaction funding, and also financing demand across our core MSME ecosystem. At the same time, a still fragile recovery at the lower end reinforce the importance of disciplined growth, strong underwriting, and also continued focus on asset quality. GDP growth remained resilient, 5.29% year-on-year in Q2 2026, supported by consumption, 53.3% of GDP. Overall, the direction remain positive. Domestic demand is resilient, consumption is broadening, and the foundation of the stronger MSME recovery gradually forming, providing a supportive backdrop of BRI sustainable growth. First of all, again, this micro backdrop, both the government and Bank Indonesia are taking targeted measures supported by growth while managing liquidity, rupiah and financial stability risk.

Hery Gunardi: For BRI, this create a favorable but selectively growth environment, improving purchasing power should gradually support transaction funding, and also financing demand across our core MSME ecosystem. At the same time, a still fragile recovery at the lower end reinforce the importance of disciplined growth, strong underwriting, and also continued focus on asset quality. GDP growth remained resilient, 5.29% year-on-year in Q2 2026, supported by consumption, 53.3% of GDP. Overall, the direction remain positive. Domestic demand is resilient, consumption is broadening, and the foundation of the stronger MSME recovery gradually forming, providing a supportive backdrop of BRI sustainable growth. First of all, again, this micro backdrop, both the government and Bank Indonesia are taking targeted measures supported by growth while managing liquidity, rupiah and financial stability risk.

Speaker #2: GDP growth remains resilient at 5.29% year-on-year in the second quarter of 2026, supported by consumption, 53.3% of GDP. So overall, the direction remains positive.

Speaker #2: Domestic demand is resilient, consumption is broadening, and the foundation of the stronger MSC recovery gradually forming providing a supportive backdrop of BRI's sustainable growth.

Speaker #2: First of all, again, this micro backdrop, both the government and Bank Indonesia, are taking targeted measures supported by growth while managing liquidity rupiah and financial stability risk.

Speaker #2: On the fiscal side, targeted support and priority spending are protecting purchasing power, while B7T while B50 downstreaming and initiative to attract global capital are creating new investment and value change opportunities with fiscal discipline maintained.

Speaker #2: At the same time, Bank Indonesia is balancing growth and stability through its policy rate, liquidity incentive, SABI optimization, and also effect measures to support credit transmission banking liquidity and rupiah stability.

Hery Gunardi Tbk): On the fiscal side, targeted support and priority spending are protecting purchasing power while B50 downstreaming and initiative to attract global capital are creating new investment and value chain opportunities with fiscal discipline maintained. At the same time, Bank Indonesia is balancing growth and stability through its policy rate, liquidity incentive, SRBI optimization, and also effect measures to support credit transmission, banking liquidity, and rupiah stability. Overall, the policy mix is becoming more supportive for banking intermediation, fiscal policy, credit demand investment, while BI support liquidity, credit transmission, and FX stability for BRI. This provides opportunities across corporate and commercial value chains, consumer, and micro recovery. Let us now turn to the banking sectors of BRI competitive positioning. Indonesia's banking sector remains resilient, with a loan growth accelerating to 12.7% year on year, supported by healthy liquidity as deposit growth 10.2%, and LDR remain at 88.3%.

Hery Gunardi: On the fiscal side, targeted support and priority spending are protecting purchasing power while B50 downstreaming and initiative to attract global capital are creating new investment and value chain opportunities with fiscal discipline maintained. At the same time, Bank Indonesia is balancing growth and stability through its policy rate, liquidity incentive, SRBI optimization, and also effect measures to support credit transmission, banking liquidity, and rupiah stability. Overall, the policy mix is becoming more supportive for banking intermediation, fiscal policy, credit demand investment, while BI support liquidity, credit transmission, and FX stability for BRI. This provides opportunities across corporate and commercial value chains, consumer, and micro recovery. Let us now turn to the banking sectors of BRI competitive positioning. Indonesia's banking sector remains resilient, with a loan growth accelerating to 12.7% year on year, supported by healthy liquidity as deposit growth 10.2%, and LDR remain at 88.3%.

Speaker #2: Overall, the policy make is becoming more supportive for banking intermediation, fiscal policy, created demand and investment, while BI support liquidity credit transmission and effect stability for BRI, which provide opportunities across corporate and commercial value chains consumer and micro recovery.

Speaker #2: Let us now turn to the banking sectors of BRI's competitive positioning. Indonesia's banking sector remains resilient. With a long growth accelerating to 12.7% year-on-year, supported by healthy liquidity as deposit growth 10.2% and LDR remains at 88.3%.

Speaker #2: Industry fundamental remains sound, with stable name improving asset quality and strong capital providing ample capacity for further growth. BRI continues to outperform the industry, delivering 16.2% loan growth, supported by strong Casa franchise and digital transaction ecosystem.

Speaker #2: Importantly, BRI maintains structurally superior profitability with net interest margin at 7.7%, while improving loan at risk demonstrated. That growth continues to be driven by discipline at risk selection.

Hery Gunardi Tbk): Industry fundamental remains sound, with stable NIM improving asset quality and strong capital providing ample capacity for further growth. BRI continues to outperform the industry, delivering 16.2% loan growth, supported by strong CASA franchise and digital transaction ecosystem. Importantly, BRI maintains structurally superior profitability with net interest margin at 7.7%, while improving loan at risk demonstrate that growth continues to be driven by discipline at risk selection. With a strong capital resilient funding improving asset quality, BRI remains well-positioned to deliver sustainable and profitable growth. First of all, as we have continuously communicated over the past few quarters, our strategic priorities remain unchanged. We believe these priorities are increasingly relevant in today operating environment and continue to guide how we allocate the capital and also execute our business. Our focus remains on the two key areas. First, we are transforming the funding franchise.

Hery Gunardi: Industry fundamental remains sound, with stable NIM improving asset quality and strong capital providing ample capacity for further growth. BRI continues to outperform the industry, delivering 16.2% loan growth, supported by strong CASA franchise and digital transaction ecosystem. Importantly, BRI maintains structurally superior profitability with net interest margin at 7.7%, while improving loan at risk demonstrate that growth continues to be driven by discipline at risk selection. With a strong capital resilient funding improving asset quality, BRI remains well-positioned to deliver sustainable and profitable growth. First of all, as we have continuously communicated over the past few quarters, our strategic priorities remain unchanged. We believe these priorities are increasingly relevant in today operating environment and continue to guide how we allocate the capital and also execute our business. Our focus remains on the two key areas. First, we are transforming the funding franchise.

Speaker #2: With a strong capital resilience, funding improving asset quality, BRI remains well-positioned to deliver sustainable and profitable growth. First of all, as we have a continuously communicate over the past few quarters, our strategic priorities remain unchanged.

Speaker #2: We believe these priorities are increasingly relevant in today's operating environment and continue to get how we'll allocate the capital and also the execute our business.

Speaker #2: Our focus remains on the two key areas. First, we are transforming the funding franchise. On a low-cost funding, we are accelerating merchant primary account acquisition through digital onboarding, while deepening Casa penetration and priority clusters to improve funding efficiency and customer stickiness.

Speaker #2: Beyond funding acquisition, we are strengthening transaction banking capabilities in retail via expanding ADC and QRIS penetration through ecosystem-based cluster, while continuously improving BRIMO capabilities.

Hery Gunardi Tbk): On a low-cost funding, we are accelerating merchant primary account acquisition through digital onboarding, while deepening CASA penetration and priority clusters to improve funding efficiency and customer stickiness. Beyond funding acquisition, we are strengthening transaction banking capabilities. In retail, we are expanding EDC and QRIS penetration through ecosystem-based cluster, while continuously improving BRImo capabilities. For SMB and wholesalers, we are building One BRI Solution, connecting transaction banking with the supply chains opportunities to capture a larger share of customers' financial flows. Second, we are strengthening our core while accelerating the new growth engines. In micro, we are improving portfolio quality through stronger underwriting and collection, while enhancing productivity through better screening and also the streamlined process. At the same time, we are diversifying growth by expanding consumer through payroll ecosystem and strengthening corporate and commercial value chains, balancing stronger growth with better quality.

Hery Gunardi: On a low-cost funding, we are accelerating merchant primary account acquisition through digital onboarding, while deepening CASA penetration and priority clusters to improve funding efficiency and customer stickiness. Beyond funding acquisition, we are strengthening transaction banking capabilities. In retail, we are expanding EDC and QRIS penetration through ecosystem-based cluster, while continuously improving BRImo capabilities. For SMB and wholesalers, we are building One BRI Solution, connecting transaction banking with the supply chains opportunities to capture a larger share of customers' financial flows. Second, we are strengthening our core while accelerating the new growth engines. In micro, we are improving portfolio quality through stronger underwriting and collection, while enhancing productivity through better screening and also the streamlined process. At the same time, we are diversifying growth by expanding consumer through payroll ecosystem and strengthening corporate and commercial value chains, balancing stronger growth with better quality.

Speaker #2: For SME and wholesales, we are building a one BRI solution connecting transaction banking with a supply change opportunities to capture a larger share of customers' financial flows.

Speaker #2: Second, we are strengthening our core while accelerating the new growth engines. In the micro, we are improving portfolio quality through stronger underwriting and collection, while enhancing productivity through better screening and also the streamlined process.

Speaker #2: At the same time, we are diversifying growth by expanding consumer through federal ecosystem and strengthening corporate and commercial value chains balancing stronger growth with a better quality.

Speaker #2: This initiative are enable by investment in people, data, and artificial intelligence, digital, distribution, operation, and also risk management, allowing us to execute a scale while maintaining the discipline.

Speaker #2: There are central to BRIVOLUTION reignite and we are already seeing the benefit in stronger funding, improving asset quality, and more diversified earning base reinforcing our confident in the trajectory toward our long-term aspirations.

Hery Gunardi Tbk): These initiatives are enabled by investment in people, data and artificial intelligence, digital distribution, operation, and also risk management, allowing us to execute a scale while maintaining the discipline. They are central to BRIvolution Reignite, and we are already seeing the benefit in stronger funding, improving asset quality, and more diversified earning base, reinforcing our confidence in the trajectory toward our long-term aspirations. Ladies and gentlemen, let me highlight how our transformations is translating into the concrete execution and tangible result across the franchise. First one, transforming the funding franchise. This is already delivering result, with CASA reaching 67.6% and cost of fund improving to 2.4%, while higher transaction activity create more opportunities to capture low-cost funding. The second one is the repumping micro or core fund franchise. We are strengthening the credit process end to end from title pre-screening and underwriting to stronger collections. The results are becoming visible.

Hery Gunardi: These initiatives are enabled by investment in people, data and artificial intelligence, digital distribution, operation, and also risk management, allowing us to execute a scale while maintaining the discipline. They are central to BRIvolution Reignite, and we are already seeing the benefit in stronger funding, improving asset quality, and more diversified earning base, reinforcing our confidence in the trajectory toward our long-term aspirations. Ladies and gentlemen, let me highlight how our transformations is translating into the concrete execution and tangible result across the franchise. First one, transforming the funding franchise. This is already delivering result, with CASA reaching 67.6% and cost of fund improving to 2.4%, while higher transaction activity create more opportunities to capture low-cost funding. The second one is the repumping micro or core fund franchise. We are strengthening the credit process end to end from title pre-screening and underwriting to stronger collections. The results are becoming visible.

Speaker #2: Ladies and gentlemen, let me highlight how our transformations is translating into the concrete execution and tangible result across the franchise. First one, transforming the funding franchise.

Speaker #2: This is already delivering result with Casa reaching 67.6% and cost of fund improving to 2.4%, while higher transaction activity create more opportunities to capture low-cost funding.

Speaker #2: The second one is the repamping micro or core fund franchise. We are strengthening the credit process end-to-end from tighter pre-screening and underwriting to stronger collections.

Speaker #2: The result are becoming feasible, micro return depositive 0.68% quarter to quarter growth, micro cost of credit improve to 3.8% and NPL formation decline to 0.4.5% to further accelerate recovery.

Speaker #2: We are continuing to expand our field collection force progressively building toward our target around 5,500 staff. We call the field collections. So the third one is accelerating the new growth engine in consumer and gold businesses.

Hery Gunardi Tbk): Micro return to positive 0.68% quarter-to-quarter growth. Micro cost of credit improved to 3.8%, and NPL formation declined to 4.5%. To further accelerate recovery, we are continuing to expand our field collection force, progressively building toward our target of around 5,500 staff we call the field collections. The third one is accelerating the new growth engine in consumer and gold businesses. We are leveraging payroll and also BRI broader ecosystem to acquire high-quality customers and deepen relationship. With payroll saving balance reaching IDR 82.9 trillion alongside strong momentum in the gold sales and also gold installment. Finally, capturing tactical growth in corporate and commercial through One BRI Solution, we are moving beyond lending and capture the entire value chain, from financing and transaction banking to payroll and CASA. This is already driving strong transaction and also ecosystem deposit growth, while creating broader cross-selling opportunities across BRI group.

Hery Gunardi: Micro return to positive 0.68% quarter-to-quarter growth. Micro cost of credit improved to 3.8%, and NPL formation declined to 4.5%. To further accelerate recovery, we are continuing to expand our field collection force, progressively building toward our target of around 5,500 staff we call the field collections. The third one is accelerating the new growth engine in consumer and gold businesses. We are leveraging payroll and also BRI broader ecosystem to acquire high-quality customers and deepen relationship. With payroll saving balance reaching IDR 82.9 trillion alongside strong momentum in the gold sales and also gold installment. Finally, capturing tactical growth in corporate and commercial through One BRI Solution, we are moving beyond lending and capture the entire value chain, from financing and transaction banking to payroll and CASA. This is already driving strong transaction and also ecosystem deposit growth, while creating broader cross-selling opportunities across BRI group.

Speaker #2: We are leveraging payroll and also BRI broader ecosystem to acquire high quality customers and deepen relationship. With payroll saving balance reaching 82.9 trillion rupiah alongside strong momentum in the gold sales and also gold installment.

Speaker #2: Finally, capturing tactical growth in corporate and commercial through one BRI solution, we are moving beyond landing and capture the entire value chain. From financing and transaction banking to payroll and Casa.

Speaker #2: This is acceler this is already driving strong transaction and also ecosystem deposit growth, while creating broader cross-selling opportunities across BRI group. So turning to funding, our priority is clear.

Speaker #2: We want to build a stronger more granular and more sustainable funding franchise. And the progress in the first half is encouraging. Casa growth 10.1% year on year with a saving growing is 11.3% year on year lifting our Casa ratio to 67.6%.

Speaker #2: More importantly, Casa continue to grow sequentially despite the tighter gold liquidity showing that our funding strategy is gaining transaction. The quality as growth is also improving retail Casa grew 13.4% year on year significantly faster than deeper customer relationship transaction and also ecosystem.

Hery Gunardi Tbk): Turning to funding, our priority is clear. We want to build a stronger, more granular, and more sustainable funding franchise, and the progress in H1 is encouraging. CASA growth, 10.1% year-on-year, with the saving growing is 11.3% year-on-year, lifting our CASA ratio to 67.6%. More importantly, CASA continued to grow sequentially despite the tighter core liquidity, showing that our funding strategy is gaining traction. The quality of growth is also improving. Retail CASA grew 13.4% year-on-year, significantly faster than deeper customer relationship transaction and also ecosystem. At the same time, we remain disciplined on funding costs. Cost of fund was well managed at 2.4%, while our reliance and the special retime deposit decline and deposit pricing became more efficient. The key message is not simply that deposits are growing.

Hery Gunardi: Turning to funding, our priority is clear. We want to build a stronger, more granular, and more sustainable funding franchise, and the progress in H1 is encouraging. CASA growth, 10.1% year-on-year, with the saving growing is 11.3% year-on-year, lifting our CASA ratio to 67.6%. More importantly, CASA continued to grow sequentially despite the tighter core liquidity, showing that our funding strategy is gaining traction. The quality of growth is also improving. Retail CASA grew 13.4% year-on-year, significantly faster than deeper customer relationship transaction and also ecosystem. At the same time, we remain disciplined on funding costs. Cost of fund was well managed at 2.4%, while our reliance and the special retime deposit decline and deposit pricing became more efficient. The key message is not simply that deposits are growing.

Speaker #2: So at the same time, we remain disciplined on funding cost, cost of fund was well managed at 2.4% while our reliance and the special rate time special rate time deposit decline and deposit pricing became more person.

Speaker #2: So the key message is not simply the deposit are growing. We have improving the structure and also the quality of our funding. More Casa stronger retail retail contribution and better pricing discipline which provide a stronger foundation for sustainable and also profitable profitable growth.

Speaker #2: Within our loan portfolio, micro remain a cornerstone of BRI franchise representing 43.4% of the total loan. Encouraging we are beginning to see sign of stabilization with a standard loan micro delivering positive year to date for the first time since 2023.

Hery Gunardi Tbk): We are improving the structure and also the quality of our funding, more CASA, stronger retail contribution, and better pricing discipline, which provide a stronger foundation for sustainable and also profitable growth. Within our loan portfolio, micro remains a cornerstone of BRI franchise, representing 43.4% of the total loan. Encouraging, we are beginning to see signs of stabilization, with a standalone micro delivering positive year to date for the first time since 2023, supported by the stronger KUR disbursement and while we continue to prioritize portfolio quality over volume. I say again, while we continue to prioritize portfolio quality over volume. At the same time, consumer has continued to grow, driven by higher mortgage disbursement to Tier 1. Tier 1 is a good quality for the mortgage developer and also for a loan.

Hery Gunardi: We are improving the structure and also the quality of our funding, more CASA, stronger retail contribution, and better pricing discipline, which provide a stronger foundation for sustainable and also profitable growth. Within our loan portfolio, micro remains a cornerstone of BRI franchise, representing 43.4% of the total loan. Encouraging, we are beginning to see signs of stabilization, with a standalone micro delivering positive year to date for the first time since 2023, supported by the stronger KUR disbursement and while we continue to prioritize portfolio quality over volume. I say again, while we continue to prioritize portfolio quality over volume. At the same time, consumer has continued to grow, driven by higher mortgage disbursement to Tier 1. Tier 1 is a good quality for the mortgage developer and also for a loan.

Speaker #2: Supported by the stronger QR distribution and while the continue priorities portfolio quality offer volume. So I say again, while we continue to prioritize portfolio quality offer volume.

Speaker #2: So at the same time, consumer has continue to grow driven by higher mortgage disbursement to tier one. Yeah, tier one is a good quality for the mortgage.

Speaker #2: Developer and also payroll loan. Corporate and commercial remain key growth contributors with a selective lending focus on resilience sectors value chains and also ecosystem opportunity.

Speaker #2: Together, with a gradual recovery in micro the segment supported 16.2% year on year consolidated loan growth. Importantly, this portfolio diversification has not compromised our earning profile.

Speaker #2: With a loan yield remaining stable at around 12.2% also supported by the contribution from pegadaian and also PNM is our subsidies company. Going forward, our strategy remain clear strengthened and restore sustainable growth in micro while selectively expanding corporate commercial and also consumer to build a more balanced diversified and also profitable portfolio.

Hery Gunardi Tbk): Corporate and commercial remain key growth contributors with a selective lending focus on resilient sectors, value chains, and also ecosystem opportunity. Together, with a gradual recovery in micro, the segment supported 16.2% year-on-year consolidated loan growth. Importantly, this portfolio diversification has not compromised our earning profile, with the loan yield remaining stable at around 12.2%, also supported by the contribution from Pegadaian and also PNM is our subsidiaries company. Going forward, our strategy remains clear, strengthen and restore sustainable growth in micro, while selectively expanding corporate, commercial, and also consumer to build a more balanced, diversified, and also profitable portfolio. Let me now turn into our H1 performance or Q2 performance, of all the progress in our transformation in then translating into the financial result as of June 2026.

Hery Gunardi: Corporate and commercial remain key growth contributors with a selective lending focus on resilient sectors, value chains, and also ecosystem opportunity. Together, with a gradual recovery in micro, the segment supported 16.2% year-on-year consolidated loan growth. Importantly, this portfolio diversification has not compromised our earning profile, with the loan yield remaining stable at around 12.2%, also supported by the contribution from Pegadaian and also PNM is our subsidiaries company. Going forward, our strategy remains clear, strengthen and restore sustainable growth in micro, while selectively expanding corporate, commercial, and also consumer to build a more balanced, diversified, and also profitable portfolio. Let me now turn into our H1 performance or Q2 performance, of all the progress in our transformation in then translating into the financial result as of June 2026.

Speaker #2: So let me now turn into our first half performance. Our second quarter performance how the progress in our transformation. In the translating into the financial result as of June 2026.

Speaker #2: We continue to strengthen the balance sheet with a set asset growth asset growing to 11.7% and deposit while 6.7% while improving the quality and composition of both of funding and also lending portfolio.

Speaker #2: We deliver strong and broad-based growth with loan and financing growing 16.2% year on year supporting by higher earning asset and driving net interest income growth of 9.9% year on year.

Hery Gunardi Tbk): We continue to strengthen the balance sheet with asset growing to 11.7%, and deposit was 6.7%, while improving the quality and composition of both our funding and also lending portfolio. We deliver strong and broad-based growth with loan and financing growing 16.2% year-on-year, supporting by higher earning asset and driving net interest income growth of 9.9% year-on-year. More importantly, this growth is translating into the stronger profitability. PPOP increased 12.8% year-on-year, while net profit grew at a faster at a 17.5% to IDR 31.2 trillion, demonstrating improving earning quality and operating performance. The key message from our H1 performance is clear. BRI not just deliver growth, we are improving the quality of growth with a healthier balance sheet and more balanced portfolio and also stronger profitability.

Hery Gunardi: We continue to strengthen the balance sheet with asset growing to 11.7%, and deposit was 6.7%, while improving the quality and composition of both our funding and also lending portfolio. We deliver strong and broad-based growth with loan and financing growing 16.2% year-on-year, supporting by higher earning asset and driving net interest income growth of 9.9% year-on-year. More importantly, this growth is translating into the stronger profitability. PPOP increased 12.8% year-on-year, while net profit grew at a faster at a 17.5% to IDR 31.2 trillion, demonstrating improving earning quality and operating performance. The key message from our H1 performance is clear. BRI not just deliver growth, we are improving the quality of growth with a healthier balance sheet and more balanced portfolio and also stronger profitability.

Speaker #2: More importantly, this growth is translating into the stronger profitability. PPOP increased 5.8% year on year while net profit grew at a faster at a 17.5% to 31.2 trillion rupiah.

Speaker #2: Demonstrating improving earning quality and operating performance. The key message from our first half performance is clear. BRI not just deliver growth. We are improving the quality of growth with a healthier balance sheet and more balanced portfolio and also stronger profitability.

Speaker #2: Our profitability and asset quality metric continue to improve reflecting a more efficient balance sheet and the early benefit of strategic action we have taken.

Speaker #2: Net interest margin moderated slightly to 7.7% as our portfolio mix continue to diversify beyond micro. However, this way largely offset by 69 basis point declining in cost of fund to 2.4% demonstrating the strength of funding franchise and discipline balance sheet management.

Hery Gunardi Tbk): Our profitability and asset quality metric continue to improve, reflecting a more efficient balance sheet and the early benefit of strategic action we have taken. Net interest margin moderated slightly to 7.7% as our portfolio mix continued to diversify beyond micro. However, this were largely offset by 69 basis point declining in cost of fund to 2.4%, demonstrating the strength of funding franchise and disciplined balance sheet management. The asset quality continued to improve with the loan at risk declining to 9.1% and cost of credit improving to 3.1%, supported by lower new NPL formation and better portfolio quality. The combination of lower funding costs and lower credit costs more than offset margin normalization, resulting in stronger earning quality and higher balance sheet efficiency.

Hery Gunardi: Our profitability and asset quality metric continue to improve, reflecting a more efficient balance sheet and the early benefit of strategic action we have taken. Net interest margin moderated slightly to 7.7% as our portfolio mix continued to diversify beyond micro. However, this were largely offset by 69 basis point declining in cost of fund to 2.4%, demonstrating the strength of funding franchise and disciplined balance sheet management. The asset quality continued to improve with the loan at risk declining to 9.1% and cost of credit improving to 3.1%, supported by lower new NPL formation and better portfolio quality. The combination of lower funding costs and lower credit costs more than offset margin normalization, resulting in stronger earning quality and higher balance sheet efficiency.

Speaker #2: The asset quality continue to improve with the loan at risk declining to 9.1% and cost of credit improving to 3.1% supported by lower new NPL formation and better portfolio quality.

Speaker #2: The combination of lower funding cost and lower credit cost more than offset margin normalization resulting a stronger earning quality and higher balance sheet efficiency.

Speaker #2: As a result, return on equity increased to 18.8% while return on asset also increased to 2.2 2.7% reflecting more efficient capital development and also improve surrounded return.

Speaker #2: Overall, we are pleased with our strong first half 2026 performance with the benefit of our transformation increasingly feasible across both of operating metric and also financial result.

Hery Gunardi Tbk): As a result, return on equity increased to 18.8%, while return on assets also increased to 2.7%, reflecting more efficient capital deployment and also improved shareholder return. Overall, we are pleased with our strong H1 2026 performance, with the benefit of our transformation increasingly visible across both operating metrics and also financial results. We will discuss our full year 2026 guidance and also the outlook later. But first, I would like to transfer to Pak Achmad Royadi, our CFO, who would like to go through the financial performance in more detail. Pak Achmad Royadi, please.

Hery Gunardi: As a result, return on equity increased to 18.8%, while return on assets also increased to 2.7%, reflecting more efficient capital deployment and also improved shareholder return. Overall, we are pleased with our strong H1 2026 performance, with the benefit of our transformation increasingly visible across both operating metrics and also financial results. We will discuss our full year 2026 guidance and also the outlook later. But first, I would like to transfer to Pak Achmad Royadi, our CFO, who would like to go through the financial performance in more detail. Pak Achmad Royadi, please.

Speaker #2: We will discuss our full year 2026 guidance and also the outlook letter but first I would like to transfer to Pak Royadi our CFO would like to go through the financial performance is more detail.

Speaker #2: Pak Royadi please.

Speaker #3: Thank you. Thank you Pak Dirut. Before move to like a financial performance I would like to discuss about some area of improvement. First our funding strategy is center on increasing customer transaction activity as customer who transact transact more frequently typically maintain higher and more stable deposit balance.

Speaker #3: By leveraging our nationwide customer base and distribution network through BMO merchant Chris and building agents we are capturing a larger share of customer daily payment and transaction flow which in turn support sustainable retain cash growth.

Achmad Royadi Tbk): Thank you. Thank you, Pak Dirut. Before I move to financial performance, I would like to discuss about some areas of improvement. First, our retail funding strategy is centered on increasing customer transaction activity, as customers who transact more frequently typically maintain higher and more stable deposit balance. By leveraging our nationwide customer base and distribution network through BRImo, merchants, QRIS, and BRILink agents, we are capturing a larger share of customer daily payment and transaction flow, which in turn supports sustainable retained CASA growth. For BRImo, monthly active users increased 15.6%, from 19.3 million to 22.4 million, reflect stronger and more frequent customer engagement across BRImo. Financial transactions increased by 30.6%, and transaction value grew by 28.2%. The number of priority merchants also increased 20.1%, while sales volume per merchant grew 17.8%, supported by our merchant engagement initiative that strengthened usability, trust, and transaction adoption.

Achmad Royadi: Thank you. Thank you, Pak Dirut. Before I move to financial performance, I would like to discuss about some areas of improvement. First, our retail funding strategy is centered on increasing customer transaction activity, as customers who transact more frequently typically maintain higher and more stable deposit balance. By leveraging our nationwide customer base and distribution network through BRImo, merchants, QRIS, and BRILink agents, we are capturing a larger share of customer daily payment and transaction flow, which in turn supports sustainable retained CASA growth. For BRImo, monthly active users increased 15.6%, from 19.3 million to 22.4 million, reflect stronger and more frequent customer engagement across BRImo. Financial transactions increased by 30.6%, and transaction value grew by 28.2%. The number of priority merchants also increased 20.1%, while sales volume per merchant grew 17.8%, supported by our merchant engagement initiative that strengthened usability, trust, and transaction adoption.

Speaker #3: For BMO monthly active user increase 15.6% from 19.3 million to 22.4 million reflects stronger and more frequent customer engagement across BMO. Financial transaction increase by 30.6% and transaction value grew by 28.3%.

Speaker #3: The number of relative merchant also increased 20.1% while sales volume per merchant grew 17.8% supported by our merchant engagement initiative that strengthened usability trust and transaction adoption.

Speaker #3: Our Chris sales volume per store also increased by 53.8% and the number of transaction also grew by 86%. Building agent allows us to leverage our nationwide networks beyond physical branches.

Speaker #3: Bringing banking sector service closer to the customer while expanding transaction flow. This transacted into 28.6% growth in casa from brilling agent and income 905.7 billion rupiah increase 16.3% year on year making brilling an increasingly important contributor to both funding and earning.

Aris Hartanto Tbk): Our BRILink sales volume per store also increased by 53.8%, and the number of transactions also grew by 86%. BRILink agents allow us to leverage our nationwide networks beyond physical branches, bringing banking sector service closer to the customer while expanding transaction flow. This translated into 28.6% growth in CASA from BRILink agent and fee income, IDR 905.7 billion, an increase of 16.3% year on year, making BRILink an increasingly important contributor to both funding and earnings. BRImo also has evolved significantly since its launch in 2019, with its user base expanding by 16.8 times. More importantly, it has evolved beyond a banking application into BRI's primary retail platform, addressing customer needs from daily banking and payment to investment, lending, lifestyle, and growth service within a single ecosystem. This broader proposition continues to deepen customers' engagement.

Achmad Royadi: Our BRILink sales volume per store also increased by 53.8%, and the number of transactions also grew by 86%. BRILink agents allow us to leverage our nationwide networks beyond physical branches, bringing banking sector service closer to the customer while expanding transaction flow. This translated into 28.6% growth in CASA from BRILink agent and fee income, IDR 905.7 billion, an increase of 16.3% year on year, making BRILink an increasingly important contributor to both funding and earnings. BRImo also has evolved significantly since its launch in 2019, with its user base expanding by 16.8 times. More importantly, it has evolved beyond a banking application into BRI's primary retail platform, addressing customer needs from daily banking and payment to investment, lending, lifestyle, and growth service within a single ecosystem. This broader proposition continues to deepen customers' engagement.

Speaker #3: BMO also has evolved significantly since its launch in 2019 with its user base expanding by 16.8 times. More importantly it has evolved beyond banking application into BRI primary retail platform addressing customer needs from daily banking and payment to investment lending lifestyle and gold service within a single ecosystem.

Speaker #3: This broader proportion continues to deepen customers engagement. As of June 2026 BMO process offer 8,000 trillion rupiah in transaction value across 6.4 billion transaction.

Speaker #3: While transaction frequency per user continue to increase it is reflecting BMO's growing role as our customer primary banking platform. Beyond transaction BMO is also becoming a scalable distribution platform for the group.

Speaker #3: Gold saving reach 650,000 counts demonstrating increasing digital adoption. More importantly with BRI group extensive customer base we see substantial runway to accelerate cross sales of gold product across the ecosystem increasing product penetration strengthening customer relationship and generating additional funding and fee-based income over the long term.

Aris Hartanto Tbk): As of June 2026, BRImo processed over IDR 8,000 trillion in transaction value across 6.4 billion transactions. While transaction frequency per user continued to increase, it is reflecting BRImo's growing role as our customer primary banking platform. Beyond transactions, BRImo is also becoming a scalable distribution platform for the group. Gold savings reached 650,000 accounts, demonstrating increasing digital adoption. More importantly, with BRI Group extensive customer base, we see substantial runway to accelerate cross-sales of group products across the ecosystem, increasing product penetration, strengthening customer relationship, and generating additional funding and fee-based income over the long term. Next, on the micro side, we are encouraged that the initiatives we have implemented are beginning to translate into tangible improvement in portfolio quality.

Achmad Royadi: As of June 2026, BRImo processed over IDR 8,000 trillion in transaction value across 6.4 billion transactions. While transaction frequency per user continued to increase, it is reflecting BRImo's growing role as our customer primary banking platform. Beyond transactions, BRImo is also becoming a scalable distribution platform for the group. Gold savings reached 650,000 accounts, demonstrating increasing digital adoption. More importantly, with BRI Group extensive customer base, we see substantial runway to accelerate cross-sales of group products across the ecosystem, increasing product penetration, strengthening customer relationship, and generating additional funding and fee-based income over the long term. Next, on the micro side, we are encouraged that the initiatives we have implemented are beginning to translate into tangible improvement in portfolio quality.

Speaker #3: Next on the micro side we are encouraged that the initiative we have implemented are beginning to translate into tangible improvement in portfolio quality. Net NPL downgrades appear to have peaked in the first quarter and continue to decline in the first half of the year.

Speaker #3: Improving from 593% to 4.48% indicating a more consistent asset quality improvement trend. This improvement reflect the structural change we have made across the micro business.

Speaker #3: We have strengthened our end-to-end credit process through more granular pre-screening and analytic-led credit scoring reinforced underwriting discipline with mandatory onsite credit certification and redesigned the operating model by introducing more specialized loan officer across origination parallel lending recovery and collection.

Aris Hartanto Tbk): Net NPL downgrades appeared to have peaked in the Q1 and continued to decline in the H1 of the year, improving from 5.93% to 4.48%, indicating a more consistent asset quality improvement trend. This improvement reflects the structural changes we have made across the micro business. We have strengthened our end-to-end credit process through more granular pre-screening and analytic-led credit scoring, reinforced underwriting discipline with mandatory on-site credit verification, and redesigned the operating model by introducing more specialized loan officers across origination, parallel lending, recovery, and collection. At the same time, we are improving portfolio management by optimizing the span of control of the loan officers, enabling closer customer engagement and more effective relationship-based banking, which remain fundamental in the micro segment.

Achmad Royadi: Net NPL downgrades appeared to have peaked in the Q1 and continued to decline in the H1 of the year, improving from 5.93% to 4.48%, indicating a more consistent asset quality improvement trend. This improvement reflects the structural changes we have made across the micro business. We have strengthened our end-to-end credit process through more granular pre-screening and analytic-led credit scoring, reinforced underwriting discipline with mandatory on-site credit verification, and redesigned the operating model by introducing more specialized loan officers across origination, parallel lending, recovery, and collection. At the same time, we are improving portfolio management by optimizing the span of control of the loan officers, enabling closer customer engagement and more effective relationship-based banking, which remain fundamental in the micro segment.

Speaker #3: At the same time we are improving portfolio management by optimizing the spend of control of the outloan officers enabling closer customer engagement and more effective relationship-based banking which remain fundamental in the micro segment.

Speaker #3: While there are still working to be done this early improvement reinforce our confidence that the action we have taken are building a healthier and more resilient micro franchise.

Speaker #3: At the same time new loan quality is improving meaningfully. Recent micro micro loan vintages especially Cupidus are performing better with lower SML vintages across cohort compared to the prior years.

Speaker #3: On the second engine performance consumer this initiative are starting to deliver result. As reflected in the growth of our consumer and gold-based lending and saving driven by a focus on high quality customer and improved portfolio traction.

Aris Hartanto Tbk): While there is still work to be done, this early improvement reinforces our confidence that the action we have taken are building a healthier and more resilient micro franchise. At the same time, new loan quality is improving meaningfully. Recent micro loan vintages, especially Kupedes, are performing better, with lower SML vintages across cohort compared to the prior years. On the second engine performance, consumer, these initiatives are starting to deliver results, as reflected in the growth of our consumer and group-based lending and saving, driven by a focus on high-quality customers and improved portfolio traction. Consumer loan grew 9.9%, driven by a 9.5% increase in the payroll loans and 12% expansion in mortgage, backed by strict risk selection targeting higher quality private payroll clients and Tier 1 developers.

Achmad Royadi: While there is still work to be done, this early improvement reinforces our confidence that the action we have taken are building a healthier and more resilient micro franchise. At the same time, new loan quality is improving meaningfully. Recent micro loan vintages, especially Kupedes, are performing better, with lower SML vintages across cohort compared to the prior years. On the second engine performance, consumer, these initiatives are starting to deliver results, as reflected in the growth of our consumer and group-based lending and saving, driven by a focus on high-quality customers and improved portfolio traction. Consumer loan grew 9.9%, driven by a 9.5% increase in the payroll loans and 12% expansion in mortgage, backed by strict risk selection targeting higher quality private payroll clients and Tier 1 developers.

Speaker #3: Consumer loan grew 9.9% driven by a 9.5 increase 9.5% increase in the payroll loans and 12% expansion in mortgage. Backed by strict risk selection targeting higher quality private payroll clients and tier one developers.

Speaker #3: Mortgage disbursement to tier one developer increased to 21% in the first half 2026 increase from 12% last year. Directly reflecting our deliberate pivot toward lower risk high quality real estate assets.

Speaker #3: Auto loans also expanded significantly 404% year on year with grow carefully directed toward low risk segment within the BRI group's ecosystem via integrated underwriting and strategic dealer partnership.

Aris Hartanto Tbk): Mortgage disbursement to Tier 1 developer increased to 21% in H1 2026, increased from 12% last year, directly reflecting our deliberate pivot toward lower risk, high quality real estate assets. Auto loans also expanded significantly, 404% year on year, with growth carefully directed toward low-risk segment within the BRI Group's ecosystem via integrated underwriting and strategic dealer partnership. Funding under management in our wealth management also increased 3.2% through deeper cross-segment relationship, positioning us to optimize wealth management fee income by expanding investment offering and scaling cross-referral execution. In the gold business, gold installment increased up to quite significant, 135%, targeting not only high net worth individual customer, but also mass affluent. Gold saving increased 47.4%, with active customer increasing 60.5% year on year. It is supported by expanded sub-channel B2B transaction and cross-selling to BRI Group customer through BRI extensive distribution networks.

Achmad Royadi: Mortgage disbursement to Tier 1 developer increased to 21% in H1 2026, increased from 12% last year, directly reflecting our deliberate pivot toward lower risk, high quality real estate assets. Auto loans also expanded significantly, 404% year on year, with growth carefully directed toward low-risk segment within the BRI Group's ecosystem via integrated underwriting and strategic dealer partnership. Funding under management in our wealth management also increased 3.2% through deeper cross-segment relationship, positioning us to optimize wealth management fee income by expanding investment offering and scaling cross-referral execution. In the gold business, gold installment increased up to quite significant, 135%, targeting not only high net worth individual customer, but also mass affluent. Gold saving increased 47.4%, with active customer increasing 60.5% year on year. It is supported by expanded sub-channel B2B transaction and cross-selling to BRI Group customer through BRI extensive distribution networks.

Speaker #3: Funding under management in our wealth management also increased 3.2% through deeper cross segment relationship positioning us to optimize wealth management income by expanding investment offering and scaling cross referral execution.

Speaker #3: In the gold business gold installment increased up to. Significant under 35% targeting not only high net worth individual customer but also mass affluent. And gold saving increased 47.4% with active customer increasing 60.5% year on year.

Speaker #3: It is supported by expanded sales channel B2B transaction and cross selling to BRI group customer through BRI extensive distribution networks. Now let me now explain how we repositioning our corporate and commercial business within the group.

Speaker #3: Our objective is no longer simply loan group. We are using lending relationship to build broader banking system through one BRI solution increasing transaction banking cassa and cross segment opportunities.

Speaker #3: Corporate remain well diversified with 58% of loan in investment lending creating longer term relationship and opportunities to capture operating count cash management and payment flow.

Aris Hartanto Tbk): Now let me explain how we repositioning our corporate and commercial business within the group. Our objective is no longer simply loan growth. We are using lending relationship to build broader banking system to One BRI Solution, increasing transaction banking, CASA, and cross-segment opportunities. Corporate remains well-diversified, with 58% of loan in investment lending, creating longer-term relationship and opportunities to capture operating account, cash management, and payment flow. Commercial lending also diversifies across 11 priority sectors. Around 70% in working capital, keeping us embedded in customer daily business activities. For commercial, we are increasingly linking lending with ecosystem deposit. Higher deposit generation within the relationship improves transaction visibility and underwriting quality, while creating opportunities to capture larger value chains. Qlola is the key platform to deepen this relationship, enabling us to capture more customer transaction while growing CASA and fee income. Active user increased 42.6% to around 100,000 clients.

Achmad Royadi: Now let me explain how we repositioning our corporate and commercial business within the group. Our objective is no longer simply loan growth. We are using lending relationship to build broader banking system to One BRI Solution, increasing transaction banking, CASA, and cross-segment opportunities. Corporate remains well-diversified, with 58% of loan in investment lending, creating longer-term relationship and opportunities to capture operating account, cash management, and payment flow. Commercial lending also diversifies across 11 priority sectors. Around 70% in working capital, keeping us embedded in customer daily business activities. For commercial, we are increasingly linking lending with ecosystem deposit. Higher deposit generation within the relationship improves transaction visibility and underwriting quality, while creating opportunities to capture larger value chains. Qlola is the key platform to deepen this relationship, enabling us to capture more customer transaction while growing CASA and fee income. Active user increased 42.6% to around 100,000 clients.

Speaker #3: Commercial lending also diversifies across 11 priority sectors around 70% in working capital keeping us embedded in customer daily business activities. For commercial we are increasingly linking lending with ecosystem deposit.

Speaker #3: Higher deposit generation within the relationship improve transaction feasibility and underwriting quality. While creating opportunities to capture larger value chains. Lola is the key platform to deepen this relationship.

Speaker #3: Enabling us to capture more customer transaction while growing cassa and fee income. Active user increase 42.6% to around 100,000 clients. Fee income increase 22.3% while transaction volume grew 59.5% to 558 million in second half 2026.

Speaker #3: We are now piloting one BRI solution with selected corporate and commercial anchor clients. Connecting them across BRI border customer ecosystem relation level KPIs are being introduced to systematically cover this anchor into group wide opportunities.

Aris Hartanto Tbk): Fee income increased 22.3%, while transaction volume grew 59.5% to 558 million in H2 2026. We are now piloting One BRI Solution with selected corporate and commercial anchor clients, connecting them across BRI broader customer ecosystem. Relationship level KPIs are being introduced to systematically cover this anchor into group-wide opportunities. During H1 of the year, BRI total asset increased by 11.7%, driven by loan growth 16.2%, reflecting continued momentum across our diversified lending portfolio. As discussed by Pak Hery Gunardi, we continue to prioritize CASA, with nominal CASA growing 10% year on year, and also saving also grew good, 11.3%. Amid tighter liquidity in Q2 2026, we selectively utilized other interest-bearing liabilities to support loan growth while maintaining funding cost discipline.

Achmad Royadi: Fee income increased 22.3%, while transaction volume grew 59.5% to 558 million in H2 2026. We are now piloting One BRI Solution with selected corporate and commercial anchor clients, connecting them across BRI broader customer ecosystem. Relationship level KPIs are being introduced to systematically cover this anchor into group-wide opportunities. During H1 of the year, BRI total asset increased by 11.7%, driven by loan growth 16.2%, reflecting continued momentum across our diversified lending portfolio. As discussed by Pak Hery Gunardi, we continue to prioritize CASA, with nominal CASA growing 10% year on year, and also saving also grew good, 11.3%. Amid tighter liquidity in Q2 2026, we selectively utilized other interest-bearing liabilities to support loan growth while maintaining funding cost discipline.

Speaker #3: During the first half of the year BRI total asset increased by 11.7% driven by loan growth 16.2% reflecting continued momentum across our diversified lending portfolio.

Speaker #3: As discussed by Pak Harry we continue to prioritize cassa with nominal cassa growing 10.0% year on year and also saving also grew good 11.3%.

Speaker #3: I made tighter liquidity in the second quarter 2026 with selectively utilized other interest bearing liabilities to support loan growth while maintaining funding cost discipline.

Speaker #3: At the consolidated level pegadaian and PNM contribute 12.6% total loans increase from 10.7% a year ago reinforcing our leadership in micro segment while at the same time diversifying the group earning profile.

Speaker #3: Loan loss reserve maintained at 5.2% reflecting our prudent provisional approach. We continue to maintain overlay established since 2024 while utilizing reserve built during the pandemic to absorb trade-offs.

Aris Hartanto Tbk): At the consolidated level, Pegadaian and PNM contribute 12.6% total loans, increased from 10.7% a year ago, reinforcing our leadership in micro segment, while at the same time diversifying the group earning profile. Loan loss reserve maintained at 5.2%, reflecting our prudent provisioning approach. We continue to maintain overlay established since 2024 while utilizing reserve built during the pandemic to absorb trade-offs. Meanwhile, government bonds and marketable securities increased 12.2%, reflecting disciplined liquidity management and optimization of surplus liquidity into yield-generating asset. Finally, equity increased 2.1% year on year, despite total dividend distribution of around 52.1 trillion, comprising of 20.7 trillion interim dividend paid in January 2026 and 31.5 trillion final dividend paid in April 2026, equivalent to total DPS around 346 rupiah per share.

Achmad Royadi: At the consolidated level, Pegadaian and PNM contribute 12.6% total loans, increased from 10.7% a year ago, reinforcing our leadership in micro segment, while at the same time diversifying the group earning profile. Loan loss reserve maintained at 5.2%, reflecting our prudent provisioning approach. We continue to maintain overlay established since 2024 while utilizing reserve built during the pandemic to absorb trade-offs. Meanwhile, government bonds and marketable securities increased 12.2%, reflecting disciplined liquidity management and optimization of surplus liquidity into yield-generating asset. Finally, equity increased 2.1% year on year, despite total dividend distribution of around 52.1 trillion, comprising of 20.7 trillion interim dividend paid in January 2026 and 31.5 trillion final dividend paid in April 2026, equivalent to total DPS around 346 rupiah per share.

Speaker #3: Meanwhile government bonds and marketable securities increase 12.2% reflecting discipline liquidity management and optimization of surplus liquidity into yield generating asset. Finally equity increased 2.1% year on year despite total dividend distribution of around 52.1 trillion comprising of 20.7 trillion interim dividend packet dividend paid in January 2026 and 31.5 trillion final dividend paid in April 2026.

Speaker #3: Equivalent to total DPS around 346 rupiah per share. As we look ahead we plan to gradually optimize our dividend payout to retain additional capital supporting future growth opportunities while maintaining an attractive return to shareholders.

Speaker #3: Next we move to balance sheet. Now we move to income statement. Our first half 2026 result demonstrated that our strategic initiative are translating into stronger and higher quality earnings.

Speaker #3: Net interest income increase 9.9% year on year. Supported by healthy loan growth despite portfolio diversification into corporate and commercial segment. While this businesses carry relatively lower yield they deepen client relationship strengthen transaction banking and support sustainable cassa generation.

Aris Hartanto Tbk): As we look ahead, we plan to gradually optimize our dividend payout to retain additional capital, supporting future growth opportunities while maintaining an attractive return to shareholders. Next, we move to balance sheet. Now we move to income statement. Our H1 2026 result demonstrate that our strategy initiatives are translating into stronger and higher quality earnings. Net interest income increased 9.9% year on year, supported by healthy loan growth despite portfolio diversification into corporate and commercial sector. While these businesses carry relatively lower yield, they deepen client relationship, strengthen cross-selling banking, and support sustainable CASA generation. Together with disciplined funding management, cost of fund remains stable at around 2.4%, while interest expense declined 5.9% year on year. Margin resilience was further supported by increasing contribution from our subsidiaries, Pegadaian and PNM, especially Pegadaian, keeping consolidated loan yield above 12%.

Achmad Royadi: As we look ahead, we plan to gradually optimize our dividend payout to retain additional capital, supporting future growth opportunities while maintaining an attractive return to shareholders. Next, we move to balance sheet. Now we move to income statement. Our H1 2026 result demonstrate that our strategy initiatives are translating into stronger and higher quality earnings. Net interest income increased 9.9% year on year, supported by healthy loan growth despite portfolio diversification into corporate and commercial sector. While these businesses carry relatively lower yield, they deepen client relationship, strengthen cross-selling banking, and support sustainable CASA generation. Together with disciplined funding management, cost of fund remains stable at around 2.4%, while interest expense declined 5.9% year on year. Margin resilience was further supported by increasing contribution from our subsidiaries, Pegadaian and PNM, especially Pegadaian, keeping consolidated loan yield above 12%.

Speaker #3: Together with discipline funding management cost of fund remains stable at around 2.4% while interest expense decline 5.9% year on year. Margin resilience was further supported by increasing contribution from our subsidiaries pegadaian and PNM especially pegadaian keeping consolidated loan yield above 12%.

Speaker #3: Meanwhile non-interest income grew 0.2% different by previous income strong growth relative revenue and treasury gains. Recovery income decline due to timing of insurance claims integration in the first quarter which has now been resolved.

Speaker #3: More importantly our asset quality initiative are gaining traction supported by the addition of more 300,000 3,800 field collection and stronger collection capabilities result in improvement micro collection performance.

Aris Hartanto Tbk): Meanwhile, non-interest income grew 0.2%, driven by fees income, strong growth-related revenue, and treasury gains. Recovery income declined due to timing of insurance claims integration in Q1, which has now been resolved. More importantly, our asset quality initiatives are gaining traction, supported by the addition of more 3,800 field collection and stronger collection capabilities result in improvement micro collection performance. OPEX increase manageable only 0.7%, largely reflecting in high base from some expenses downloaded in H1 2025 in anticipation and tax-related regulatory change that did not materialize in 2026. This allow us to continue investing in business and collection capabilities while maintaining CIR at 39.2% within the guidance. Managed proficient, supported by 12.8% PPOP and 17.5% net profit growth, reflecting improving asset quality and more resilient funding franchise.

Achmad Royadi: Meanwhile, non-interest income grew 0.2%, driven by fees income, strong growth-related revenue, and treasury gains. Recovery income declined due to timing of insurance claims integration in Q1, which has now been resolved. More importantly, our asset quality initiatives are gaining traction, supported by the addition of more 3,800 field collection and stronger collection capabilities result in improvement micro collection performance. OPEX increase manageable only 0.7%, largely reflecting in high base from some expenses downloaded in H1 2025 in anticipation and tax-related regulatory change that did not materialize in 2026. This allow us to continue investing in business and collection capabilities while maintaining CIR at 39.2% within the guidance. Managed proficient, supported by 12.8% PPOP and 17.5% net profit growth, reflecting improving asset quality and more resilient funding franchise.

Speaker #3: OPEX increase manageable only 0.7% largely reflecting in high base from personal expenses from loaded in the first half 2025 in anticipation and tax related regulatory change that did not materialize in 2026.

Speaker #3: This allow us to continue investing in business and collection capabilities while maintaining CIR our tier at 39.2% within the guidance. Managed provision supported by 12.8% PPOP and 17.5% net profit growth reflecting improving asset quality and more resilient funding franchise.

Speaker #3: As highlighted earlier our continue focus on funding quality discipline balance sheet management and improving asset quality has enabled us to maintain healthy profitability despite a more challenging operating environment.

Speaker #3: Consolidated names stood at 7.7% as of June 2026 tracking with full year 2026 guidance despite system liquidity tightening supported by discipline funding cost optimization and subsidy growth led by pegadaian that grew 52.8%.

Speaker #3: LDR always maintained at healthy 90.8% with the loan concentration expanding to 75.3% of total asset while system liquidity remains strictly contained with the target boundaries backed by a general retail deposit base.

Aris Hartanto Tbk): As highlighted earlier, our continued focus on funding quality, disciplined balance sheet management, and improving asset quality has enabled us to maintain healthy profitability despite a more challenging operating environment. Consolidated NIM stood at 7.7% as of June 2026, tracking with full year 2026 guidance despite system liquidity tightening, supported by disciplined funding, cost optimization, and subsidiary growth led by Pegadaian that grew 52.8%. NPL always maintained at healthy 19.8%, with the loan concentration expanding to 75.2% of total asset, while system liquidity remains strictly contained within the target boundaries backed by a general retail deposit base. Non-interest income continued to grow, supported by strong fee income and gold relatives revenue. Pegadaian remain a key contributor, leveraging its expanding ecosystem and BRImo distribution channel to drive net gold fee income to IDR 2.1 trillion or increase 145% year on year.

Achmad Royadi: As highlighted earlier, our continued focus on funding quality, disciplined balance sheet management, and improving asset quality has enabled us to maintain healthy profitability despite a more challenging operating environment. Consolidated NIM stood at 7.7% as of June 2026, tracking with full year 2026 guidance despite system liquidity tightening, supported by disciplined funding, cost optimization, and subsidiary growth led by Pegadaian that grew 52.8%. NPL always maintained at healthy 19.8%, with the loan concentration expanding to 75.2% of total asset, while system liquidity remains strictly contained within the target boundaries backed by a general retail deposit base. Non-interest income continued to grow, supported by strong fee income and gold relatives revenue. Pegadaian remain a key contributor, leveraging its expanding ecosystem and BRImo distribution channel to drive net gold fee income to IDR 2.1 trillion or increase 145% year on year.

Speaker #3: Non-interest income continue to grow supported by strong fee income and growth relative revenue. Pegadaian remained a key contributor leveraging its expanding ecosystem and BRIMO distribution channel to drive net growth fee income to 2.1 trillion or increase 145% year on year.

Speaker #3: Recovery income moderate year on year due to lower insurance claim recoveries however recovery trend have continued to improve subsequently with recovery rate increasing to 44.4% in first half 2026 from 38.6% in the second in the first quarter 2026.

Speaker #3: We continue to expect recovery rate to gradually normalize to our target range 50 to 50%. Looking ahead we remain committed to discipline cost management targeting to OPEX to asset ratio around 3 to 4% and share of 41 to 43%.

Aris Hartanto Tbk): Recovery income moderate year on year due to lower insurance claim recoveries. However, recovery trend have continued to improve sequentially, with recovery rate increasing to 44.4% in H1 2026 from 38.6% in Q1 2026. We continue to expect recovery rate to gradually normalize to our target range 50% to 50%. Looking ahead, we remain committed to disciplined cost management, targeting to OPEX to asset ratio around 3% to 4% and CIR of 41% to 43%, supported by ongoing productivity improvements and greater ecosystem synergy. We remain confident in our ability to deliver stability, earning growth while managing operating efficiency. The last part, our capital position remains strong with a total CAR is 21.5%, well above both regulatory requirement of 14.7% and our internal risk appetite around 17%. This provide ample capacity to support future business growth while maintaining a prudent capital buffer.

Achmad Royadi: Recovery income moderate year on year due to lower insurance claim recoveries. However, recovery trend have continued to improve sequentially, with recovery rate increasing to 44.4% in H1 2026 from 38.6% in Q1 2026. We continue to expect recovery rate to gradually normalize to our target range 50% to 50%. Looking ahead, we remain committed to disciplined cost management, targeting to OPEX to asset ratio around 3% to 4% and CIR of 41% to 43%, supported by ongoing productivity improvements and greater ecosystem synergy. We remain confident in our ability to deliver stability, earning growth while managing operating efficiency. The last part, our capital position remains strong with a total CAR is 21.5%, well above both regulatory requirement of 14.7% and our internal risk appetite around 17%. This provide ample capacity to support future business growth while maintaining a prudent capital buffer.

Speaker #3: Supported by ongoing productivity improvements and greater ecosystem synergy we remain confident in our ability to deliver sustainability earning growth while managing operating efficiency. The last part our capital position remains strong with a total car is 21.5% well above both regulatory requirement of 14.7% and our internal risk appetite around 17%.

Speaker #3: This provide ample capacity to support future business growth while maintaining a prudent capital buffer. Over the medium term we intend to optimize our capital structure by maintaining minimum car of around 20%.

Speaker #3: Following the payment of full year 2025 final dividend in April 2026 capital naturally moderate this quarter. However we continued earning generation we expect capital to rebuild in coming quarters while remaining comfortable above our target level.

Speaker #3: Regarding dividend full year 2025 represent the fifth consecutive year of high payout following 2021 rate issue and establishment of the ultra micro holding. As the integration phase is now complete and our capital position has normalized we believe it's appropriate time to gradually transition toward a more balanced capital allocation framework.

Aris Hartanto Tbk): Over the medium term, we intend to optimize our capital structure by maintaining minimum CAR of around 20%. Following the payment of full year 2025 final dividend in April 2026, capital naturally moderated this quarter. However, with continued earning generation, we expect capital to rebuild in coming quarters while remaining comfortably above our target level. Regarding dividend, full year 2025 represented the fifth consecutive year of high payout following 2021 private issue and establishment of the Ultra Micro Holding. As the integration phase is now complete and our capital position has normalized, we believe it is appropriate time to gradually transition toward a more balanced capital allocation framework. Accordingly, for full year 2026, we expect the payout ratio to begin to normalize in alignment with our sustainable growth rate, balancing attractive shareholder return with sufficient capital to fund future growth opportunities.

Achmad Royadi: Over the medium term, we intend to optimize our capital structure by maintaining minimum CAR of around 20%. Following the payment of full year 2025 final dividend in April 2026, capital naturally moderated this quarter. However, with continued earning generation, we expect capital to rebuild in coming quarters while remaining comfortably above our target level. Regarding dividend, full year 2025 represented the fifth consecutive year of high payout following 2021 private issue and establishment of the Ultra Micro Holding. As the integration phase is now complete and our capital position has normalized, we believe it is appropriate time to gradually transition toward a more balanced capital allocation framework. Accordingly, for full year 2026, we expect the payout ratio to begin to normalize in alignment with our sustainable growth rate, balancing attractive shareholder return with sufficient capital to fund future growth opportunities.

Speaker #3: Accordingly for full year 2026 we expect the payout ratio to begin to normalize in alignment with our suitability sustainable growth rate. Balancing attractive shareholder return with sufficient capital to fund future growth opportunities.

Speaker #3: With that I'd like to turn the presentation to our director of micro Pak Ahmad to share more on the ultra micro and micro business segment.

Speaker #1: Okay. Thank you Pak Royadi. Let me now elaborate on the performance and outlook of our micro segment. As of first half 2026 we consolidated micro loans reached 712.9 trillion rupiahs growing 6.4% year on year while BRI banks micro portfolio is beginning to stabilize the overall segment.

Aris Hartanto Tbk): With that, I would like to turn the presentation to our Director of Micro, Akhmad Purwakajaya, to share more on the Ultra Micro and Micro Business segment.

Achmad Royadi: With that, I would like to turn the presentation to our Director of Micro, Akhmad Purwakajaya, to share more on the Ultra Micro and Micro Business segment.

Speaker #1: The overall segment continue to benefit from strong growth at pegadaian. Which expanded by 52.8% year on year. Pegadaian's contribution to consolidated loans increased to 9.4% from 7.2% a year ago while PNM represented 3.1% of total loans as we maintain a selective growth strategy to prioritize portfolio quality.

Akhmad Purwakajaya Tbk): Okay. Thank you, Achmad Royadi. Let me now elaborate on the performance and outlook of our Micro segment. As of H1 2026, we consolidated micro loans reached IDR 712.9 trillion, growing 6.4% year on year. While BRI Bank's micro portfolio is beginning to stabilize, the overall segment continued to benefit from strong growth at Pegadaian, which expanded by 52.8% year on year. Pegadaian's contribution to consolidated loans increased to 9.4% from 7.2% a year ago, while PNM represented 3.1% of total loans as we maintain a selective growth strategy to prioritize portfolio quality. Beyond favorable gold prices, Pegadaian continues to strengthen its long-term franchise through the expansion of its bullion banking businesses, B2B ecosystem, and digital capabilities. These initiatives continue to diversify its earning base and reinforce its strategy role within the Ultra Micro ecosystem. Asset quality also continued to improve across our subsidiaries.

Akhmad Purwakajaya: Okay. Thank you, Achmad Royadi. Let me now elaborate on the performance and outlook of our Micro segment. As of H1 2026, we consolidated micro loans reached IDR 712.9 trillion, growing 6.4% year on year. While BRI Bank's micro portfolio is beginning to stabilize, the overall segment continued to benefit from strong growth at Pegadaian, which expanded by 52.8% year on year. Pegadaian's contribution to consolidated loans increased to 9.4% from 7.2% a year ago, while PNM represented 3.1% of total loans as we maintain a selective growth strategy to prioritize portfolio quality. Beyond favorable gold prices, Pegadaian continues to strengthen its long-term franchise through the expansion of its bullion banking businesses, B2B ecosystem, and digital capabilities. These initiatives continue to diversify its earning base and reinforce its strategy role within the Ultra Micro ecosystem. Asset quality also continued to improve across our subsidiaries.

Speaker #1: Beyond favorable growth prices pegadaian continues to strengthen its long-term franchise through the expansion of its bullion banking businesses B2B ecosystem and digital capabilities. This initiatives continue to diversify its earning base and reinforce its strategy role within the ultra micro ecosystem.

Speaker #1: Asset quality also continue to improve across our subsidiaries. PNM's loan at risk declined by 214 basis points year on year to 7.2% supported by an large coverage ratio of 90.9% meanwhile pegadaian's cost of credit improved by 31 basis points to 1.5%.

Speaker #1: Although growth prices moderated during second quarter 2026 pegadaian's prudent LTV policy and predominantly go back portfolio continue to support resilience asset quality. Looking ahead we expect pegadaian's growth to gradually normalize alongside growth prices for BRI micro and PNM we remain encouraged by the improving operating trends.

Akhmad Purwakajaya Tbk): PNM's loan at risk declined by 214 basis points year on year to 7.2%, supported by a large coverage ratio of 90.9%. Meanwhile, Pegadaian's cost of credit improved by 31 basis points to 1.5%. Although gold prices moderated during Q2 2026, Pegadaian's prudent LTV policy and predominantly gold-backed portfolio continue to support resilient asset quality. Looking ahead, we expect Pegadaian's growth to gradually normalize alongside gold prices. For BRI Micro and PNM, we remain encouraged by the improving operating trends. However, given the current geopolitical uncertainty and tighter liquidity environment, we will continue to prioritize asset quality over growth. As macro conditions become more supportive, we believe we are well positioned to gradually accelerate micro lending from a much healthier foundation. Turning to BRI Micro portfolio, outstanding loans stood at IDR 506.4 trillion.

Akhmad Purwakajaya: PNM's loan at risk declined by 214 basis points year on year to 7.2%, supported by a large coverage ratio of 90.9%. Meanwhile, Pegadaian's cost of credit improved by 31 basis points to 1.5%. Although gold prices moderated during Q2 2026, Pegadaian's prudent LTV policy and predominantly gold-backed portfolio continue to support resilient asset quality. Looking ahead, we expect Pegadaian's growth to gradually normalize alongside gold prices. For BRI Micro and PNM, we remain encouraged by the improving operating trends. However, given the current geopolitical uncertainty and tighter liquidity environment, we will continue to prioritize asset quality over growth. As macro conditions become more supportive, we believe we are well positioned to gradually accelerate micro lending from a much healthier foundation. Turning to BRI Micro portfolio, outstanding loans stood at IDR 506.4 trillion.

Speaker #1: However given the current geopolitical uncertainty and tighter liquidity environment we will continue to prioritize asset quality over growth. As macro conditions become more supportive we believe we are well positioned to gradually accelerate micro lending from a much healthier foundation.

Speaker #1: Turning BRI micro portfolio outstanding loan stood at 506.4 trillion rupiahs. While this represents at 2.2% decline year on year reflecting our deliberate strategy to prioritize asset quality over growth like Pak Heri mentioned before and the portfolio began recovering in second quarter 2026 delivering a modest growth of 0.7% quarter on quarter and 0.2% year to date.

Speaker #1: Our focus remains on building a healthier and more sustainable micro franchise rather than pursuing short-term volume. Our selective growth strategy is supported by a more data-driven underwriting approach leveraging enhanced pre-screening and analytical through Brispot or Brilliant sales platform alongside improvements in field execution and business processes.

Akhmad Purwakajaya Tbk): While this represents a 2.2% decline year on year, reflecting our deliberate strategy to prioritize asset quality over growth, like Hery Gunardi mentioned before, the portfolio began recovering in Q2 2026, delivering a modest growth of 0.7% quarter on quarter and 0.2% year to date. Our focus remains on building a healthier and more sustainable micro franchise rather than pursuing short-term volume. Our selective growth strategy is supported by a more data-driven underwriting approach, leveraging enhanced pre-screening and analytical through BRISPOT, or BRILian Sales Platform, alongside improvements in field execution and business processes. At the same time, we continue to strengthen portfolio management by optimizing the span of control at the loan officers level, enabling closer customer engagement and a more proactive portfolio monitoring.

Akhmad Purwakajaya: While this represents a 2.2% decline year on year, reflecting our deliberate strategy to prioritize asset quality over growth, like Hery Gunardi mentioned before, the portfolio began recovering in Q2 2026, delivering a modest growth of 0.7% quarter on quarter and 0.2% year to date. Our focus remains on building a healthier and more sustainable micro franchise rather than pursuing short-term volume. Our selective growth strategy is supported by a more data-driven underwriting approach, leveraging enhanced pre-screening and analytical through BRISPOT, or BRILian Sales Platform, alongside improvements in field execution and business processes. At the same time, we continue to strengthen portfolio management by optimizing the span of control at the loan officers level, enabling closer customer engagement and a more proactive portfolio monitoring.

Speaker #1: At the same time we continue to strengthen portfolio management by optimizing the span of control at the loan officer's level. Enabling closer customer engagement and a more proactive portfolio monitoring.

Speaker #1: As a result the number of borrowers for per loan officer decline from 490 to 459 while a loan outstanding per officer stood at 18.8 billion rupiahs supporting better portfolio oversight and risk management.

Speaker #1: Across products core continue to grow by 10.2% year on year with cumulative disbursements reaching 103.8 trillion rupiahs or 57.7% of the annual quote. Quota.

Akhmad Purwakajaya Tbk): As a result, the number of borrowers per loan officer declined from 490 to 459, while loan outstanding per officer stood at IDR 18.8 billion, supporting better portfolio oversight and risk management. Across products, KUR continued to grow by 10.2% year on year, with cumulative disbursements reaching IDR 103.8 trillion or 57.7% of the annual quota. Meanwhile, Kupedes continued to contract as we work through legacy portfolio originated in 2023 and 2024. Encouragingly, we are beginning to see early signs of stabilizations, providing greater confidence that the micro portfolio is moving in the right directions. Looking ahead, we will continue executing across people, business processes and risk management, with the focus shifting from implementing the changes to scaling them across micro business. We expect this translate into sustained lower NPL formations, higher loan officers productivity, and healthier growth trajectory for micro.

Akhmad Purwakajaya: As a result, the number of borrowers per loan officer declined from 490 to 459, while loan outstanding per officer stood at IDR 18.8 billion, supporting better portfolio oversight and risk management. Across products, KUR continued to grow by 10.2% year on year, with cumulative disbursements reaching IDR 103.8 trillion or 57.7% of the annual quota. Meanwhile, Kupedes continued to contract as we work through legacy portfolio originated in 2023 and 2024. Encouragingly, we are beginning to see early signs of stabilizations, providing greater confidence that the micro portfolio is moving in the right directions. Looking ahead, we will continue executing across people, business processes and risk management, with the focus shifting from implementing the changes to scaling them across micro business. We expect this translate into sustained lower NPL formations, higher loan officers productivity, and healthier growth trajectory for micro.

Speaker #1: Meanwhile Kupedes continue to contract as we work through legacy portfolio originated in 2023 and 2024. Encouragingly we are beginning to see early signs of stabilizations providing greater confidence that the micro portfolio is moving in the right directions.

Speaker #1: Looking ahead we will continue executing across people business processes and risk management with the focus shifting from implementing the changes to scaling them across micro business.

Speaker #1: We expect this translate into sustained lower NPL formations higher loan officers productivity and healthier growth trajectory for micro. Now I would like to turn the presentation over our director of risk Buetti to discuss our asset quality.

Speaker #1: Thank you.

Speaker #2: Thank you Pak Maturaka. Moving into loan quality our consolidated NPL decline by 14 basis point year on year to 2.9% driven by improvement in both bank only as well as subsidiaries NPL.

Speaker #2: In the bank only the gradual decrease in NPL was part of our soft lending strategy in micro SME and commercial segment. In the micro segment NPL increased 34 basis point year on year but SML lower by almost 150 bips showing that new booking has improved.

Akhmad Purwakajaya Tbk): Now I would like to turn the presentation over our Director of Risk, Ibu Etty, to discuss our asset quality. Thank you.

Akhmad Purwakajaya: Now I would like to turn the presentation over our Director of Risk, Ibu Etty, to discuss our asset quality. Thank you.

Speaker #2: Hence we prefer to optimize our COC by allowing NPL ratio to be a bit higher. The NPL formation is down 150 bips from 5.9% in the first half last year to 4.4% this year but still higher than pre-pandemic level of around 2.5%.

Ety Yuniarti Tbk): Thank you, Pak Madurakak. Moving into loan quality, our consolidated NPL declined by 14 basis points year on year to 2.9%, driven by improvement in both bank only as well as subsidiaries NPL. In the bank only, the gradual decrease in NPL was part of our soft lending strategy in micro, SME and commercial segment. In the micro segment, NPL increased 34 basis points year on year, with SML lower by almost 150 bps, showing that new booking has improved. Hence, we prefer to optimize our CoC by allowing NPL ratio to be a bit higher. The NPL formation is down 150 bps from 5.9% in the H1 of last year to 4.4% this year, but still higher than pre-pandemic level of around 2.5%. Loan at risk formation, primarily driven by SML, is down by almost 300 bps from 6.7% H1 last year to 3.8% this year.

Ety Yuniarti: Thank you, Pak Madurakak. Moving into loan quality, our consolidated NPL declined by 14 basis points year on year to 2.9%, driven by improvement in both bank only as well as subsidiaries NPL. In the bank only, the gradual decrease in NPL was part of our soft lending strategy in micro, SME and commercial segment. In the micro segment, NPL increased 34 basis points year on year, with SML lower by almost 150 bps, showing that new booking has improved. Hence, we prefer to optimize our CoC by allowing NPL ratio to be a bit higher. The NPL formation is down 150 bps from 5.9% in the H1 of last year to 4.4% this year, but still higher than pre-pandemic level of around 2.5%. Loan at risk formation, primarily driven by SML, is down by almost 300 bps from 6.7% H1 last year to 3.8% this year.

Speaker #2: Loan at risk formation primarily driven by SML is down by almost 300 bips from 6.7% first half last year to 3.8% this year. If we look at Q1 on quarter performance NPL ratio also shows improvement from 4.15% to 4.11% and quarter on quarter SML is down 5.6% to 5.1%.

Speaker #2: We continue to see optimism in 2026 as we expect that classified loan level will continue to lower and will be below 9% by September 2026.

Speaker #2: In the SME segment if we look at year on year performance both NPL and SML ratio has improved. NPL lowered by 24 bips and SML is 115 bips quarterly performance also shows stable improvement both NPL and SML ratio lower by 37 bips and 34 bips consecutively.

Ety Yuniarti Tbk): If you look at quarter-on-quarter performance, NPL ratio also shows improvements from 4.15% to 4.11%, and quarter-on-quarter SML is down 5.6% to 5.1%. We continue to see optimism in 2026, as we expect that classified loan level will continue to lower and will be below 9% by September 2026. In the SME segment, if we look at year-on-year performance, both NPL and SML ratio has improved. NPL lowered by 24 bps and SML is 115 bps. Quarterly performance also shows stable improvement, both NPL and SML ratio lower by 37 bps and 34 bps consecutively. We implement improvement in RAC and lending model, especially for ecosystem-related project financing, and add 700 account manager that specifically handles SML portfolio for branches with higher loan at-risk portfolio since Q4 last year.

Ety Yuniarti: If you look at quarter-on-quarter performance, NPL ratio also shows improvements from 4.15% to 4.11%, and quarter-on-quarter SML is down 5.6% to 5.1%. We continue to see optimism in 2026, as we expect that classified loan level will continue to lower and will be below 9% by September 2026. In the SME segment, if we look at year-on-year performance, both NPL and SML ratio has improved. NPL lowered by 24 bps and SML is 115 bps. Quarterly performance also shows stable improvement, both NPL and SML ratio lower by 37 bps and 34 bps consecutively. We implement improvement in RAC and lending model, especially for ecosystem-related project financing, and add 700 account manager that specifically handles SML portfolio for branches with higher loan at-risk portfolio since Q4 last year.

Speaker #2: We implement improvement in RAC and lending model especially for ecosystem related project financing and add 700 account manager that specifically handles SML portfolio for branches with higher loan at risk portfolio since four quarter last year.

Speaker #2: In the first quarter this year we also evaluate approval limit given to head of branch and small business manager and we suspend around 100 personnel until third quarter this year.

Speaker #2: We also start to have specific certification for SME underwriting starting second half this year as part of evaluation process for this suspended personnel. By end of the year we expect moderate improvement in loan quality perhaps lower around 1% from June 2026.

Speaker #2: In the commercial segment looking at year on year position SML has improved 160 bips but NPL increased slightly 183 bips this was part of proactive cleanup of legacy or pre-2023 exposure that we prepare the position for future growth.

Ety Yuniarti Tbk): In the first quarter this year, we also evaluate approval limit given to head of branch and small business manager, and we suspend around 100 personnel until Q3 this year. We also start to have specific certification for SME underwriting starting H2 this year as part of evaluation process for this suspended personnel. By end of the year, we expect moderate improvement in loan quality, perhaps lower around 1% from June 2026. In the commercial segment, looking at year-on-year position, SML has improved 160 bps, but NPL increased slightly at 183 bps. This was part of proactive cleanup of legacy or pre-2023 exposures that we prepare the position for future growth. With loan growth assumption close to 40% this year, we expect to maintain SML ratio below 1.5%, and we will gradually clean up the NPL to get lower than 4% level by September.

Ety Yuniarti: In the first quarter this year, we also evaluate approval limit given to head of branch and small business manager, and we suspend around 100 personnel until Q3 this year. We also start to have specific certification for SME underwriting starting H2 this year as part of evaluation process for this suspended personnel. By end of the year, we expect moderate improvement in loan quality, perhaps lower around 1% from June 2026. In the commercial segment, looking at year-on-year position, SML has improved 160 bps, but NPL increased slightly at 183 bps. This was part of proactive cleanup of legacy or pre-2023 exposures that we prepare the position for future growth. With loan growth assumption close to 40% this year, we expect to maintain SML ratio below 1.5%, and we will gradually clean up the NPL to get lower than 4% level by September.

Speaker #2: With loan growth assumption close to 40% this year we expect to maintain SML ratio below 1.5% and we will gradually clean up the NPL to get lower than 4% level by September.

Speaker #2: Until June year to date commercial loan growth is around 17% or around 11 trillion most of the growth comes from Jakarta Surabaya and Pekanbaru.

Speaker #2: In the corporate segment corporate segment grew 19% or 68% 68 trillion year to date primarily to support the SO entity such as Pertamina Pertamina loan is largely largely short-term and some will do in September that's why we expect actually in the second half loan growth in corporate will be negative and we will arrive probably around 10 to 15% growth year on year by end of this year.

Ety Yuniarti Tbk): Until June, year-to-date commercial loan growth is around 17% or around IDR 11 trillion. Most of the growth comes from Jakarta, Surabaya, and Pekanbaru. In the corporate segment, corporate segment grew 19% or IDR 68 trillion year-to-date, primarily to support PSO entity such as Pertamina. Pertamina loan is largely short-term, and some will due in September. That is why we expect actually in the H2, loan growth in corporate will be negative, and we will arrive probably around 10% to 15% growth year-on-year by end of this year. In terms of loan quality, both NPL and SML ratio has improved year-on-year and quarter-on-quarter. We plan to maintain the classified loan level around 3% to 3.5%. In the corporate segment, our watchlist sector is construction, especially SOE, the Karya family, Waskita, WIKA, ADHI, and PTPP. Our total exposure in the SOE construction is IDR 14.2 trillion for the non-government guarantee and non-cash collateralized.

Ety Yuniarti: Until June, year-to-date commercial loan growth is around 17% or around IDR 11 trillion. Most of the growth comes from Jakarta, Surabaya, and Pekanbaru. In the corporate segment, corporate segment grew 19% or IDR 68 trillion year-to-date, primarily to support PSO entity such as Pertamina. Pertamina loan is largely short-term, and some will due in September. That is why we expect actually in the H2, loan growth in corporate will be negative, and we will arrive probably around 10% to 15% growth year-on-year by end of this year. In terms of loan quality, both NPL and SML ratio has improved year-on-year and quarter-on-quarter. We plan to maintain the classified loan level around 3% to 3.5%. In the corporate segment, our watchlist sector is construction, especially SOE, the Karya family, Waskita, WIKA, ADHI, and PTPP. Our total exposure in the SOE construction is IDR 14.2 trillion for the non-government guarantee and non-cash collateralized.

Speaker #2: In terms of loan quality both NPL and SML ratio has improved year on year and quarter on quarter. We plan to maintain the classified loan level around 3 to 3.5%.

Speaker #2: In the corporate segment our watch list sector is construction especially SOE. The Karya family Waskita Wika ADN PTPP. Our total exposure in the SOE construction is 14.2 trillion for the non-government guarantee and non-cash collateralized.

Speaker #2: It consists of Waskita 3 trillion Wika 2.8 trillion AD 3.4 trillion and PTPP 2.1 trillion. In terms of collectability Wika and PTPP still current while Waskita and AD already categorized as SML.

Speaker #2: But in July we already downgraded PTPP to SML. Our approach to this customer is to follow the commitment and restructuring package discussed with Danantara as well as other banks as well as gradually increase the provisioning coverage.

Speaker #2: As for subsidiaries overall loan quality performance primarily in Begadian and PNM is stable in the first half and we expect similar condition to persist in the second half.

Ety Yuniarti Tbk): It consists of Waskita IDR 3 trillion, WIKA IDR 2.8 trillion, ADHI IDR 3.4 trillion, and PTPP IDR 2.1 trillion. In terms of collectability, WIKA and PTPP still current, while Waskita and ADHI already categorized as SML. But in July, we already downgraded PTPP to SML. Our approach to this customer is to follow the commitment and restructuring package discussed with Danareksa as well as other banks, as well as gradually increase the provisioning coverage. As for subsidiaries, overall loan quality performance, primarily in Pegadaian and PNM, is stable in the H1, and we expect similar condition to persist in the H2, given that the expectation of gold price will be stable around $4,500 USD per troy ounce, and it has lowered since the peak in January, $5,500 USD per troy ounce.

Ety Yuniarti: It consists of Waskita IDR 3 trillion, WIKA IDR 2.8 trillion, ADHI IDR 3.4 trillion, and PTPP IDR 2.1 trillion. In terms of collectability, WIKA and PTPP still current, while Waskita and ADHI already categorized as SML. But in July, we already downgraded PTPP to SML. Our approach to this customer is to follow the commitment and restructuring package discussed with Danareksa as well as other banks, as well as gradually increase the provisioning coverage. As for subsidiaries, overall loan quality performance, primarily in Pegadaian and PNM, is stable in the H1, and we expect similar condition to persist in the H2, given that the expectation of gold price will be stable around $4,500 USD per troy ounce, and it has lowered since the peak in January, $5,500 USD per troy ounce.

Speaker #2: Given that the expectation of gold price will be stable around 4,500 USD per troy ounce and it has lower since the peak in January 500 5,500 per troy ounce.

Speaker #2: For Pegadaian year on year NPL and SML has declined by 7 bips and 71 bips consecutively while quarter on quarter NPL slightly increased 20 bips to 0.7% quarter on quarter SML increased a bit by 38 bips to 3.5% due to lower gold price since the peak in January as we prefer to not write off the loan.

Speaker #2: In the PNM the loan quality continues to improve since 2025. Year on year NPL is down by 34 bips. Year on year SML down significantly by 144 bips.

Ety Yuniarti Tbk): For Pegadaian, year-on-year NPL and SML has declined by 7 bps and 71 bps consecutively, while quarter-on-quarter, NPL slightly increased 20 bps to 0.7%. Quarter-on-quarter SML increased a bit by 38 bps to 3.5% due to lower gold price since the peak in January, as we prefer to not write off the loan. In the PNM, the loan quality continues to improve since 2025. Year-on-year NPL is down by 34 bps. Year-on-year SML down significantly by 144 bps. Quarter-on-quarter basis, NPL slightly increased 20 bps to 1.87%, while SML is still consistently lower by 81 bps to 4.6%. Hence, the overall loan at-risk is below 7% in June for PNM. Now we back to micro segment, and I will deep dive a bit about corporate vintage.

Ety Yuniarti: For Pegadaian, year-on-year NPL and SML has declined by 7 bps and 71 bps consecutively, while quarter-on-quarter, NPL slightly increased 20 bps to 0.7%. Quarter-on-quarter SML increased a bit by 38 bps to 3.5% due to lower gold price since the peak in January, as we prefer to not write off the loan. In the PNM, the loan quality continues to improve since 2025. Year-on-year NPL is down by 34 bps. Year-on-year SML down significantly by 144 bps. Quarter-on-quarter basis, NPL slightly increased 20 bps to 1.87%, while SML is still consistently lower by 81 bps to 4.6%. Hence, the overall loan at-risk is below 7% in June for PNM. Now we back to micro segment, and I will deep dive a bit about corporate vintage.

Speaker #2: Quarter on quarter basis NPL slightly increased 20 bips to 1.87% while SML is still consistently lower by 81 bips to 4.6%. Hence the overall loan at risk is below 7% in June for PNM.

Speaker #2: Now we back to micro segment and I will deep dive a bit about competitive ive vintage. On the top left you can see that the waterfall of 2023 batch the disbursement was 200 trillion and last year the remaining outstanding was 35 trillion.

Speaker #2: And in June it has lowered to 23 trillion. Out of this remaining outstanding the classified loan is 8 trillion and we probably need to write off around 2.5 trillion in the second half.

Speaker #2: We expect that remaining outstanding by end of year will be around 12.5 trillion. On the bottom left for 2024 batch the disbursement was much lower compared to 2023.

Ety Yuniarti Tbk): On the top left, you can see that the waterfall of the 2023 batch, the disbursement was IDR 200 trillion, and last year, the remaining outstanding was IDR 35 trillion, and in June, it has lowered to IDR 23 trillion. Out of this remaining outstanding, the classified loan is IDR 8 trillion, and we probably need to write off around IDR 2.5 trillion in the H2. We expect that remaining outstanding by end of year will be around IDR 12.5 trillion. On the bottom left, for 2024 batch, the disbursement was much lower compared to 2023. Last year, remaining outstanding was close to IDR 50 trillion, and in June, it has lowered to IDR 36.7 trillion. Of this remaining, the classified loan is IDR 11.8, and we plan to write off around IDR 3 trillion in the second semester. We expect that remaining outstanding of 2024 batch at the end of year will be around IDR 26 trillion.

Ety Yuniarti: On the top left, you can see that the waterfall of the 2023 batch, the disbursement was IDR 200 trillion, and last year, the remaining outstanding was IDR 35 trillion, and in June, it has lowered to IDR 23 trillion. Out of this remaining outstanding, the classified loan is IDR 8 trillion, and we probably need to write off around IDR 2.5 trillion in the H2. We expect that remaining outstanding by end of year will be around IDR 12.5 trillion. On the bottom left, for 2024 batch, the disbursement was much lower compared to 2023. Last year, remaining outstanding was close to IDR 50 trillion, and in June, it has lowered to IDR 36.7 trillion. Of this remaining, the classified loan is IDR 11.8, and we plan to write off around IDR 3 trillion in the second semester. We expect that remaining outstanding of 2024 batch at the end of year will be around IDR 26 trillion.

Speaker #2: Last year remaining outstanding was close to 50 trillion and in June it has lowered to 36.7 trillion. Of this remaining the classified loan is 11.8 and we plan to write off around 3 trillion in the second semester.

Speaker #2: We expect that remaining outstanding of 2024 batch at the end of year will be around 26 trillion. So combined these two will be around 40 trillion.

Speaker #2: At the bottom right the 2025 batch vintage is showing better performance compared to 2023 and 2024 cohorts. The six month on book in the second quarter and third quarter this year has improved to 3.1 until 3.3% and four quarter further down to 2.4% because we already implement a lot of limitation in the brispot as per Ahmad Puraka mentioned earlier.

Speaker #2: It was due to better underwriting process. So with that confidence in the top right you can see also that we start to increase competitive booking in the second quarter this year.

Ety Yuniarti Tbk): So combined, these two will be around IDR 40 trillion. At the bottom right, the 2025 batch vintage is showing better performance compared to 2023 and 2024 cohorts. The six months on book in the Q2 and Q3 this year has improved to 3.1% until 3.3%, and Q4 further down to 2.4% because we already implement lots of limitation in the BRISPOT as Ahmad Solichin Lutfiyanto mentioned earlier. It was due to better underwriting process. So with that confidence in the top right, you can see also that we start to increase Kupedes booking in the Q2 this year, IDR 15.6 trillion or 4% increase compared to Q1. Next, in terms of provisioning, due to improvement in loan at-risk and NPL ratio, as well as some frontloading in CoC in the H1, we can see higher LAR and NPL coverage ratio.

Ety Yuniarti: So combined, these two will be around IDR 40 trillion. At the bottom right, the 2025 batch vintage is showing better performance compared to 2023 and 2024 cohorts. The six months on book in the Q2 and Q3 this year has improved to 3.1% until 3.3%, and Q4 further down to 2.4% because we already implement lots of limitation in the BRISPOT as Ahmad Solichin Lutfiyanto mentioned earlier. It was due to better underwriting process. So with that confidence in the top right, you can see also that we start to increase Kupedes booking in the Q2 this year, IDR 15.6 trillion or 4% increase compared to Q1. Next, in terms of provisioning, due to improvement in loan at-risk and NPL ratio, as well as some frontloading in CoC in the H1, we can see higher LAR and NPL coverage ratio.

Speaker #2: 15.6 trillion or 4% increase compared to first quarter. Next in terms of provisioning due to improvement in loan at risk and NPL ratio as well as some front loading in COC in the first half we can see higher LAR and NPL coverage ratio.

Speaker #2: By June our coverage is higher than December. LAR coverage is 57% and NPL coverage is above 180%. Since we have audited number in June we have updated the macroeconomic variable we use to calculate loan loss provision.

Speaker #2: Variable such as exchange rate and BI rate is the most used especially for competitive SME commercial and corporate loan. For KUR it is like unemployment and consumer price index.

Speaker #2: In addition we also adjusted the LGD model to comply with POJK 11. Thus recovery income from claim is now deducting the exposure at default.

Ety Yuniarti Tbk): By June, our coverage is higher than December. LAR coverage is 57% and NPL coverage is above 180%. Since we have audited number in June, we have updated the macroeconomic variable we use to calculate loan loss provision. Variables such as exchange rate and BI Rate is the most used, especially for Kupedes, SME, commercial, and corporate loan. For KUR, it is unemployment and consumer price index. In addition, we also adjusted the LGD model to comply with POJK 11/2020, thus recovery income from claim is now deducting the exposure at default. This has generated significantly lower CoC, especially for KUR, and hence absorb the impact of increasing probability default due to changes in the macroeconomic variables.

Ety Yuniarti: By June, our coverage is higher than December. LAR coverage is 57% and NPL coverage is above 180%. Since we have audited number in June, we have updated the macroeconomic variable we use to calculate loan loss provision. Variables such as exchange rate and BI Rate is the most used, especially for Kupedes, SME, commercial, and corporate loan. For KUR, it is unemployment and consumer price index. In addition, we also adjusted the LGD model to comply with POJK 11/2020, thus recovery income from claim is now deducting the exposure at default. This has generated significantly lower CoC, especially for KUR, and hence absorb the impact of increasing probability default due to changes in the macroeconomic variables.

Speaker #2: This has generated significantly lower COC especially for KUR and hence absorb the impact of increasing probability default due to changes in the macroeconomic variables.

Speaker #2: As I mentioned earlier about the exposure in SOE construction sector earlier the total outstanding excluding government guarantee and cash collateral is 14.2 trillion and we have provision Waskita at around 75% Wika 65% since last year.

Speaker #2: In June we front loaded the provision for AD and PTPP. They were 15% in March and in June we increased AD to 46% PTPP to 48%.

Speaker #2: This provision is excluding the exposure in the performance bond of around 4 trillion. After all the adjustment audit adjustment in June our loan provision now stood at 85.9 trillion a steady increase if you compare to December and March with loan loss reserve currently 5.2%.

Ety Yuniarti Tbk): As I mentioned earlier about the exposure in SOE construction sector earlier, the total outstanding, excluding government guarantee and cash collateral, is IDR 14.2 trillion, and we have provision Waskita at around 75%, WIKA 65% since last year. In June, we front loaded the provision for ADHI and PTPP. They were 15% in March, and in June we increased ADHI to 46%, PTPP to 48%. This provision is excluding the exposure in the performance bond of around IDR 4 trillion. After all the audit adjustment in June, our loan provision now stood at IDR 85.9 trillion, a steady increase if you compare to December and March, with loan loss reserve currently 5.2%. We have some more room to lower them in the future when macro condition stabilizes and our loan quality further improve. In the last page, I will provide you the information about write-off and credit cost.

Ety Yuniarti: As I mentioned earlier about the exposure in SOE construction sector earlier, the total outstanding, excluding government guarantee and cash collateral, is IDR 14.2 trillion, and we have provision Waskita at around 75%, WIKA 65% since last year. In June, we front loaded the provision for ADHI and PTPP. They were 15% in March, and in June we increased ADHI to 46%, PTPP to 48%. This provision is excluding the exposure in the performance bond of around IDR 4 trillion. After all the audit adjustment in June, our loan provision now stood at IDR 85.9 trillion, a steady increase if you compare to December and March, with loan loss reserve currently 5.2%. We have some more room to lower them in the future when macro condition stabilizes and our loan quality further improve. In the last page, I will provide you the information about write-off and credit cost.

Speaker #2: So we have some more room to lower them in the future when macro condition stabilizes and our loan quality further improves. In the last page I will provide you the information about write off and credit cost.

Speaker #2: Turning into write off our gross COC improved from 3.4% to 3.1% driven by BRI and PNM. At the bank level improvement was led by macro and small segment reflecting the lower NPL and LAR formation.

Speaker #2: This year we allocated write off budget around 43 44 trillion. We have used 21.5 trillion. So below than midpoint in the first half. And we expect that in the second half will be less than 21.5 trillion actually.

Speaker #2: Most of the write off use until the first half is mostly micro 9.6 trillion and SME 5.5 trillion. And we also use some of it for corporate 1.5 trillion but we don't have any more pipeline in the second half for corporate.

Ety Yuniarti Tbk): Turning into write-off, our gross CoC improved from 3.4% to 3.1%, driven by BRI and PNM. At the bank level, improvement was led by micro and small segment, reflecting the lower NPL and LAR formation. This year, we allocated write-off budget around IDR 43.44 trillion. We have used IDR 21.5 trillion, so below than midpoint in the H1. We expect that in the H2 will be less than IDR 21.5 trillion, actually. Most of the write-off used until the H1 is mostly micro, IDR 9.6 trillion, and SME, IDR 5.5 trillion. We also use some of it for corporate, IDR 1.5 trillion, but we don't have any more pipeline in H2 for corporate. That's why we expect to use less write-off budget in the H2 and optimize CoC as our NPL in June is already in line with our target.

Ety Yuniarti: Turning into write-off, our gross CoC improved from 3.4% to 3.1%, driven by BRI and PNM. At the bank level, improvement was led by micro and small segment, reflecting the lower NPL and LAR formation. This year, we allocated write-off budget around IDR 43.44 trillion. We have used IDR 21.5 trillion, so below than midpoint in the H1. We expect that in the H2 will be less than IDR 21.5 trillion, actually. Most of the write-off used until the H1 is mostly micro, IDR 9.6 trillion, and SME, IDR 5.5 trillion. We also use some of it for corporate, IDR 1.5 trillion, but we don't have any more pipeline in H2 for corporate. That's why we expect to use less write-off budget in the H2 and optimize CoC as our NPL in June is already in line with our target.

Speaker #2: That's why we expect to use less write off budget in the second half and optimize COC as our NPL in June is already in line with our target.

Speaker #2: In terms of recovery our recovery income is flat. Year on year at 9.4 trillion while the consumer and SME recovery softened. The micro recovery is continue to improve supported by dedicated field collection officer as mentioned by Pak Heri and Pak Ahmad Royadi that now we already deploy 300 3,800 field collector and plan to add until 5,500 by end of this September.

Speaker #2: In the second half we assume that if recovery from claim is steady we expect slight increase in the recovery income especially coming from consumer SME and corporate.

Ety Yuniarti Tbk): In terms of recovery, our recovery income is flat year on year at IDR 9.4 trillion, while the consumer and SME recovery soften. The micro recoveries continue to improve, supported by dedicated field collection officer, as mentioned by Pak Hery and Pak Achmad Royadi that now we already deploy 3,800 field collector and plan to add until 5,500 by end of this September. In the H2, we assume that if recovery from claim is steady, we expect slight increase in the recovery income, especially coming from consumer, SME, and corporate. With that, I would like to hand it back to our CEO, Pak Hery, to take us through takeaways and guidance. Thank you.

Ety Yuniarti: In terms of recovery, our recovery income is flat year on year at IDR 9.4 trillion, while the consumer and SME recovery soften. The micro recoveries continue to improve, supported by dedicated field collection officer, as mentioned by Pak Hery and Pak Achmad Royadi that now we already deploy 3,800 field collector and plan to add until 5,500 by end of this September. In the H2, we assume that if recovery from claim is steady, we expect slight increase in the recovery income, especially coming from consumer, SME, and corporate. With that, I would like to hand it back to our CEO, Pak Hery, to take us through takeaways and guidance. Thank you.

Speaker #2: With that I would like to hand it back to our CEO Pak Heri to take us through takeaways and guidance. Thank you.

Speaker #1: Thank you Bu Eti. Let me know bring the discussion to our full year 2026 guidance. Based on the strong momentum in the first half 2026 we are rising our full year guidance loan gross guidance to 8 until 10% ya.

Speaker #1: So while maintaining our guidance on NIM non-interest margin credit cost and also cost of income ratio. The revision reflects stronger loan momentum and greater feasibility across our more depressive growth engine.

Hery Gunardi Tbk): Thank you, Ibu Ety. Let me now bring the discussion to our full year 2026 guidance. Based on the strong momentum in the H1 2026, we are raising our full year guidance, loan growth guidance, until 10%. While maintaining our guidance on NIM, net interest margin, credit cost, and also cost to income ratio. The revision reflects stronger loan momentum and greater visibility across our more diversified growth engine. Importantly, this is not a change in our transformation strategy, but a reflection of the progress we are seeing from the execution. We continue to prioritize quality growth while maintaining discipline on asset quality and profitability. On loan growth, we are raising our full year 2026 guidance to 8% to 10%. Micro is returning to positive sequential growth.

Hery Gunardi: Thank you, Ibu Ety. Let me now bring the discussion to our full year 2026 guidance. Based on the strong momentum in the H1 2026, we are raising our full year guidance, loan growth guidance, until 10%. While maintaining our guidance on NIM, net interest margin, credit cost, and also cost to income ratio. The revision reflects stronger loan momentum and greater visibility across our more diversified growth engine. Importantly, this is not a change in our transformation strategy, but a reflection of the progress we are seeing from the execution. We continue to prioritize quality growth while maintaining discipline on asset quality and profitability. On loan growth, we are raising our full year 2026 guidance to 8% to 10%. Micro is returning to positive sequential growth.

Speaker #1: Importantly this is not a change in our transformation strategy but a reflection of the progress we are seeing from the execution. We continue to prioritize quality growth while maintaining discipline on asset quality and profitability.

Speaker #1: So on loan growth we are rising our full year 2026 guidance to 8 to 10%. Micro is returning to positive sequential growth. Commercial momentum remains strong while consumer should benefit from housing related program and gold businesses is expected to maintain steady growth.

Speaker #1: At the same time government lead investment in downstream downstreaming and B50 is creating additional financing opportunities across the plantations energy manufacturing logistic and relative value change combined with a stronger fiscal spending and supportive liquidity measures we see room to capture this demand selectively while maintaining our risk discipline.

Hery Gunardi Tbk): Commercial momentum remains strong, while consumer should benefit from housing related program, and gold businesses is expected to maintain steady growth. At the same time, government-led investment in downstreaming and B50 is creating additional financing opportunities across the plantations, energy manufacturing, logistic, and relative value chains. Combined with a stronger fiscal spending and supportive liquidity measures, we see room to capture this demand selectively while maintaining our risk discipline. Our NIM, we maintain our 7.4% to 7.8% guidance with the H1 2026 at 7.7%, while liquidity and funding costs remain key watch point. Our focus on granular retail funding and available loan repricing should help manage the prices. With cost of credit at 3.1% and cost to income ratio at 39.1%, we see no fundamental reason to reset our guidance.

Hery Gunardi: Commercial momentum remains strong, while consumer should benefit from housing related program, and gold businesses is expected to maintain steady growth. At the same time, government-led investment in downstreaming and B50 is creating additional financing opportunities across the plantations, energy manufacturing, logistic, and relative value chains. Combined with a stronger fiscal spending and supportive liquidity measures, we see room to capture this demand selectively while maintaining our risk discipline. Our NIM, we maintain our 7.4% to 7.8% guidance with the H1 2026 at 7.7%, while liquidity and funding costs remain key watch point. Our focus on granular retail funding and available loan repricing should help manage the prices. With cost of credit at 3.1% and cost to income ratio at 39.1%, we see no fundamental reason to reset our guidance.

Speaker #1: Our NIM we maintain our 7.4 to 7.8% guidance with the first half 2006 2026 at a 7.7% while liquidity and funding cost remain key watch point our focus on granular retail funding and available loan repricing should help manage the the prices.

Speaker #1: So with cost of credit at 3.1% and cost to income ratio at 39.1% we see no fundamental reason to reset our guidance. So we will continue to manage the balance sheet with the discipline preserving both risk and buffer and capacity for the next phase of growth.

Speaker #1: Overall we are entering the second half with a solid gross momentum and greater confidence in the our diversified business. While maintaining a strong focus on funding asset quality and return we will continue to execute our transformation agenda with the same consistency and also the discipline through the second half.

Hery Gunardi Tbk): We will continue to manage the balance sheet with the discipline, preserving both risk and buffer and capacity for the next phase of growth. Overall, we are entering the H2 with a solid growth momentum and greater confidence in our diversified business. While maintaining a strong focus on funding, asset quality, and return, we will continue to execute our transformation agenda with the same consistency and also the discipline through the H2 2026 and beyond. Thank you.

Hery Gunardi: We will continue to manage the balance sheet with the discipline, preserving both risk and buffer and capacity for the next phase of growth. Overall, we are entering the H2 with a solid growth momentum and greater confidence in our diversified business. While maintaining a strong focus on funding, asset quality, and return, we will continue to execute our transformation agenda with the same consistency and also the discipline through the H2 2026 and beyond. Thank you.

Speaker #1: 2026 and beyond. Thank you.

Speaker #2: Thank you Pak Heri we'll now move to the Q&A session. I will start a few questions from submitted on the chat box during the call.

Speaker #2: And then afterwards we'll open the floor for the participants to ask question directly afterwards. The first question will be from Pak Joshua Tanja from UBS.

Speaker #2: Yeah. The question is how management see in the current macroeconomic pressure rupiah inflation risk of fuel price hike as being an hindrance or neighboring factors to go faster in retail or micro landing the second half 26 and in 27.

Siaga Tbk): Thank you, Pak Hery. We will now move to the Q&A session. I will start a few questions from submitted on the chat box during the call, and then afterwards we will open the floor for participants to ask questions directly afterwards. The first question will be from Pak Joshua Tanja from UBS. The question is, how management see the current macroeconomic pressure, rupiah inflation, risk of fuel price hike as being a hindrance or enabling factors to go faster in retail or micro lending in the H2 2026 and in 2027. I will now invite Pak Hery to respond to the question, Pak, from the first question from Pak Joshua Tanja.

Siaga Hutama: Thank you, Pak Hery. We will now move to the Q&A session. I will start a few questions from submitted on the chat box during the call, and then afterwards we will open the floor for participants to ask questions directly afterwards. The first question will be from Pak Joshua Tanja from UBS. The question is, how management see the current macroeconomic pressure, rupiah inflation, risk of fuel price hike as being a hindrance or enabling factors to go faster in retail or micro lending in the H2 2026 and in 2027. I will now invite Pak Hery to respond to the question, Pak, from the first question from Pak Joshua Tanja.

Speaker #2: I will now invite Pak Heri to respond to the question from the first question from Pak Joshua Tanja.

Speaker #1: All right. Thank you Pak Joshua for the questions. The question is how management see the current macroeconomic pressures so including the rupiah inflation risk of fuel price hike and being hand cramps and enabling factors to go faster in the retail micro landing second half 2020 26 and also 2027.

Speaker #1: So let me respond this questions we have been seeing several positive indicators both external and also internal factors to support micro segment micro segment growth however we also some encounter challenge well so in in the micro side micro saving has improved on yearly and quarterly basis reaching stable 3% growth quarterly and 5% year on year basis up to December 2025 is a 1.8% year on year.

Hery Gunardi Tbk): All right. Thank you, Pak Joshua, for the questions. The question is how management see the current macroeconomic pressures, including the rupiah inflation, risk of fuel price hike and being hindrances and enabling factors to go faster in the retail micro lending H2 2026 and also 2027. Let me respond these questions. We have been seeing several positive indicators, both external and also internal factors to support micro segment growth. However, we also some encounter challenge as well. In the micro side, micro saving has improved on yearly and quarterly basis, reaching stable 3% growth quarterly and 5% year-on-year basis. Up to December 2025 is 1.8% year-on-year. Okay. All right. Sorry, let me continue. Moreover, new booking continue to post improvement in vintage 2025 disbursement recorded average 6 MOB downgrade to SML is of 3.4%.

Hery Gunardi: All right. Thank you, Pak Joshua, for the questions. The question is how management see the current macroeconomic pressures, including the rupiah inflation, risk of fuel price hike and being hindrances and enabling factors to go faster in the retail micro lending H2 2026 and also 2027. Let me respond these questions. We have been seeing several positive indicators, both external and also internal factors to support micro segment growth. However, we also some encounter challenge as well. In the micro side, micro saving has improved on yearly and quarterly basis, reaching stable 3% growth quarterly and 5% year-on-year basis. Up to December 2025 is 1.8% year-on-year. Okay. All right. Sorry, let me continue. Moreover, new booking continue to post improvement in vintage 2025 disbursement recorded average 6 MOB downgrade to SML is of 3.4%.

Speaker #1: Okay. All right. Sorry let me continue. Moreover new booking continue to post improvement and vintage 2025 disbursement recorded average 6 month 6 MOB downgrade to SML is of 3.4%.

Speaker #1: This is COVID disburse in January 26 recorded 5 month MOB downgrade to SML is less than 1%. So if we see the cooper cooper 2023 and 2024 batch gradually soft in line with our guidance and vintage also so good trajectory this is a several factors.

Speaker #1: As to determine resume growth on our micro loan particular COVID this improvement that we have been doing in micro also so a good result on business process from the probability matrix of monthly as of June more than 70% of monthly categorized on the quadrant one and quadrant two so the quadrant one and two which is the profitable quadrant yeah so let me give you the background so while we do the transformation agenda the prepollution reignite basically we are focus number one is the where we would like to repam the micro business within BRI we already repam the business process not only the business process but also the in term of the pipeline management and also the the decision engine including also the loan factory also we improve that's give us you know positive feedback you know during the few quarters last quarters and also this quarters as well so in term of the credit quality I think I think it can give the flavor yeah to Pak Joshua the way we manage the quality we start you know from the the way so how we pick you know the good customers yeah from the pipeline management and also the pipeline from the regional from the branches as well and then this give us you know the opportunity to get a good business today in the future please yeah sure Pak Heri Pak Joshua I will add about our strategy in why we kind of like confidence in growing the micro segment for this year in the first half we have rely on the KUR and KPP the new program from the government to grow the micro landing with low you know interest rate then we actually also quite confidence in the loan quality in the second semester probably we have to rely 50-50 to cooper as well and the way we has improve the underwriting standard in the micro is in the front mid and back everything we also evaluate in the front side the prewash pipeline as a source of growth is already there I mean we already have different swim lane to you know identify which customer to be approved and based on our data is actually we now can you know differentiate in terms of the growth from new to bank if we look at year to date because we just identify since January it's roughly like 15% so we rely most of them is coming from existing to loan roughly 50% and roughly 35% is actually new to loan so these are the you know micro borrowers that previously only use saving account but not yet becoming our borrower because we already incorporate in our new credit risk model the saving account you know deposit risk model as well as transaction risk model then we can identify which of the you know potential borrower coming from the saving borrow the deposit the micro depositor and for the RAC as well we also already have more granular RAC per sector by region with limits that's more reasonable such as net profit margin limit for the borrower for certain sector cost of goods source and the cost structure as well development of the you know OCR or you know automation to read the data from identification or for you know their license as well already features in Brispot in we already pilot in the second quarter this year and we plan to implement for this third quarter as well so we kind of more confidence that it will lower the operational risk side as well for the micro landing we also have certain limit like maximum top up or minimum top up maturity in the mid size we also have better incentive program we look at booking as well as six month on book or vintage quality to our monthly to decide the KPI achievement as well as remuneration structure and then we also have evaluation of approval for the BRI unit and also micro banking manager starting early this year as well we also have regular RTTA forum risk threshold trigger and action we kind of like going into each of the region that has specific problem for their loan quality and try to find out the root cause as well as adjust the policy accordingly and only for local you know implementation also we have a parameterized pre-screening scoring and prewash inside the Brispot as well so the Brispot is now also accommodate the risk management side in the back side the workload of monthly also a little bit reduced because of the field collection officer that handles the off balance sheet NPL or written off loan previously with the similar ratio of borrower to monthly they also still handle the written off loan but now they don't handle that anymore that's why some of the workload also can be allocated to have more rigorous analysis maybe that's from the front mid and back you know improvement in underwriting that I can share with you Pak Joshua thank you okay thank you Bu Eti so I think Pak Royadi you can respond in term of the part of the questions is current macroeconomic pressures talk about so IDR inflation risk etc thank you thank you Pak so let me add about the macro condition like Pak Joshua mentioned also yeah so I think yeah yes the macro condition still quite challenging but at least in second half we see to positive side yeah first second half government spending will be more accelerate compare in the first quarter first half government spending only 40% of the total budget so means 60% of second total budget will be done in the second half so it means that it will be give some positive factor in term of the growth and currently government focus also focus in the low and economy so I think it is in good second is related with the BI policy and liquidity yeah so currently with the new government of BI to maintain the IDR there's not there's still not only only rely on the interest rate but also other tools like for example BI lower the SRBI rate quite significant yeah from 7.4 7.7% to become 7% so I think it is good for our liquidity and also our cost of fund to support the micro growth the second also BI also release new regulation related with the reserve requirement yeah so based on this new regulation we expect BI BRI will have another 10 to 15 trillions release in liquidity yeah because we meet the new the criteria so it is also support the liquidity and then we can support growth in especially in in in the micro so I think that's two factors that give some positive impact to our micro economy environment especially in the second half thank you Pak all right Pak Royadi thank you very much for the response for the answer you back to Siaga maybe there are other questions coming thank you Pak and then there's the next question from Jaden McCorey how much of the corporate loan growth is to SOEs versus private sector customers how much deposit has BRI generated incrementally from new corporate clients relative to outstanding loans same question regarding the AGRINAS loan what is the outstanding amount risk weight and then the provisions and the third one is can you please clarify what range of dividend payout ratio apply this year and what is sustainable level is medium term I think Pak Eti please sign all right thank you Jaden for the questions so I think Pak Rico the corporate banking directors will respond the question number one number two yeah maybe the number three will take by Pak Royadi because this is the dividend payout ratio is the the chop of the CFO to answers please Pak yeah thank you so much Pak Pak Heri and thank you Jaden for the questions we have been focusing in rebalancing the portfolio from the SOE and also the non-SOE in our in our portfolio in the wholesale in corporate banking it used to be it used to be more than about 60% of the portfolio but currently it's less and less than than 50% in the in the second quarter 2026 we disburse about 52.4 trillions to SOE which is majority the landing is for Pertamina Patra Niaga and it's also it's a short-term kind of a landing amounting about 22.8 trillions in this quarter beside the SOE we also provide loan to our subsidiaries to help them in operational side such as to BRI Multi-Finance Pegadaian and PNM there's a mounting about 6.8 trillions of the portfolio this loan was primarily to support on their liquidity to channel their loans products to our to our target markets and the excluding our subsidiaries our 2026 SOE disbursement will be composing about 50% of the expansions but overall portfolio is already less than 50% so the strategy works in rebalancing the portfolio now the the rest of the 45% of the non-SOEs disbursements reflected very selected risk acceptance and economy value creations primarily within the manufacturing side and also in energy sectors in this selection of the of the portfolio we also put a lot of attention in terms of how the portfolio is a is a supporting the ecosystem of the supply chains now in terms of the corporate deposits the the strong growth in corporate loan is also followed by the positive growth in terms of the wholesale transactions so we have been very very focused in the supporting the transaction banking especially in the cash management side so in in the in our platform KLOLA we have posted a very strong transaction growth of 59.5% year on year which is reaching about 558.4 trillion in first half 2006 the composition of a corporate deposits is about 38% of figures slightly flattish compared to larger about 37.5% because there's some outliers transaction last year but if you if you look at the overall loan versus the the the CASA or loan versus the the operating account within the wholesale banking transaction.

Hery Gunardi Tbk): This is Kupedes disbursed in January 2026, recorded 5-month MOB downgrade to SML, which is less than 1%. If you see the Kupedes 2023 and 2024 batch gradually soft in line with our guidance and vintage also, so good trajectory. This is several factors for us to determine resume growth on our microloan, particular Kupedes. This improvement that we have been doing in micro also, so a good result on business process from the probability metric of month 3 as of June, more than 70% of month 3 categorized under quadrant 1 and quadrant 2. The quadrant 1 and 2, which is the profitable quadrant. Let me give you the background. While we do the transformation agenda, the BRIvolution Reignite, basically we are focused number 1 is the where we would like to revamp the micro business within BRI.

Hery Gunardi: This is Kupedes disbursed in January 2026, recorded 5-month MOB downgrade to SML, which is less than 1%. If you see the Kupedes 2023 and 2024 batch gradually soft in line with our guidance and vintage also, so good trajectory. This is several factors for us to determine resume growth on our microloan, particular Kupedes. This improvement that we have been doing in micro also, so a good result on business process from the probability metric of month 3 as of June, more than 70% of month 3 categorized under quadrant 1 and quadrant 2. The quadrant 1 and 2, which is the profitable quadrant. Let me give you the background. While we do the transformation agenda, the BRIvolution Reignite, basically we are focused number 1 is the where we would like to revamp the micro business within BRI.

Hery Gunardi Tbk): We already revamped the business process, not only the business process but also in terms of the pipeline management and also the decision engine, including the loan factory, we improved. That gave us positive feedback during the few quarters, last quarters, and this quarter as well. In terms of credit quality, I think, Ibu Ety, you can give the flavor to Pak Joshua. The way we manage the quality, we start from how we pick the good customers from the pipeline management and also the pipeline from the regional, from the branches as well. This gives us the opportunity to get a good business today and the future. Please, Ibu Ety.

Hery Gunardi: We already revamped the business process, not only the business process but also in terms of the pipeline management and also the decision engine, including the loan factory, we improved. That gave us positive feedback during the few quarters, last quarters, and this quarter as well. In terms of credit quality, I think, Ibu Ety, you can give the flavor to Pak Joshua. The way we manage the quality, we start from how we pick the good customers from the pipeline management and also the pipeline from the regional, from the branches as well. This gives us the opportunity to get a good business today and the future. Please, Ibu Ety.

Ety Yuniarti Tbk): Yeah, sure, Pak Hari. Pak Joshua, I will add about our strategy in why we confidence in growing the micro segment. For this year, in the H1, we have relied on the KUR and KPP, the new program from the government to grow the micro lending with low interest rate. We actually are also quite confident in the loan quality. In the H2, probably we have to rely 50/50 to Kupedes as well. The way we have improved the underwriting standard in the micro is in the front, mid, and back. Everything we also evaluate. In the front side, the pre-wash pipeline as a source of growth is already there. We already have different swim lane to identify which customer to be approved. Based on our data, we now can differentiate.

Ety Yuniarti: Yeah, sure, Pak Hari. Pak Joshua, I will add about our strategy in why we confidence in growing the micro segment. For this year, in the H1, we have relied on the KUR and KPP, the new program from the government to grow the micro lending with low interest rate. We actually are also quite confident in the loan quality. In the H2, probably we have to rely 50/50 to Kupedes as well. The way we have improved the underwriting standard in the micro is in the front, mid, and back. Everything we also evaluate. In the front side, the pre-wash pipeline as a source of growth is already there. We already have different swim lane to identify which customer to be approved. Based on our data, we now can differentiate.

Ety Yuniarti Tbk): In terms of the growth from new to bank, if you look at year to date, because we just identified since January, it is roughly 15%. We rely most of them is coming from existing to loan, roughly 50%, and roughly 35% is actually new to loan. These are the micro borrowers that previously only used saving account, but not yet becoming our borrower. Because we already incorporate in our new credit risk model, the saving account deposit risk model as well as transaction risk model, then we can identify which of the potential borrower coming from the micro depositor. For the RAC as well, we also already have more granular RAC per sector by region with limits that is more reasonable, such as net profit margin limit for the borrower, for certain sector, cost of goods source, and the cost structure as well.

Ety Yuniarti: In terms of the growth from new to bank, if you look at year to date, because we just identified since January, it is roughly 15%. We rely most of them is coming from existing to loan, roughly 50%, and roughly 35% is actually new to loan. These are the micro borrowers that previously only used saving account, but not yet becoming our borrower. Because we already incorporate in our new credit risk model, the saving account deposit risk model as well as transaction risk model, then we can identify which of the potential borrower coming from the micro depositor. For the RAC as well, we also already have more granular RAC per sector by region with limits that is more reasonable, such as net profit margin limit for the borrower, for certain sector, cost of goods source, and the cost structure as well.

Ety Yuniarti Tbk): Development of the OCR or automation to read the data from identification or for their license as well already features in BRISPOT. We already pilot in Q2 this year, and we plan to implement for Q3 as well. We are more confident that it will lower the operational risk side as well for the micro lending. We also have a certain limit, like maximum top-up or minimum top-up maturity. In the midsize, we also have better incentive program. We look at booking as well as six-month on book or vintage quality to our monthly to decide the KPI achievement as well as remuneration structure. We also have evaluation of approval for the BRI unit and also micro banking managers starting early this year as well. We also have regular RTTA forum, risk threshold trigger and action.

Ety Yuniarti: Development of the OCR or automation to read the data from identification or for their license as well already features in BRISPOT. We already pilot in Q2 this year, and we plan to implement for Q3 as well. We are more confident that it will lower the operational risk side as well for the micro lending. We also have a certain limit, like maximum top-up or minimum top-up maturity. In the midsize, we also have better incentive program. We look at booking as well as six-month on book or vintage quality to our monthly to decide the KPI achievement as well as remuneration structure. We also have evaluation of approval for the BRI unit and also micro banking managers starting early this year as well. We also have regular RTTA forum, risk threshold trigger and action.

Ety Yuniarti Tbk): We going into each of the region that has specific problem for their loan quality and try to find out the root cause as well as adjust the policy accordingly and only for local implementation. Also, we have a parameterized pre-screening scoring and pre-wash inside the BRISPOT as well. The BRISPOT is now also accommodate the risk management side. In the back side, the workload of monthly also a little bit reduced because of the field collection officer that handles the off-balance sheet NPL or return of loan. Previously, with the similar ratio of borrower to monthly, they also still handle the return of loan. But now they do not handle that anymore. That is why some of the workload also can be allocated to have more rigorous analysis. Maybe that is from the front, mid, and back improvement in underwriting that I can share with you, Pak Joshua Tanja. Thank you.

Ety Yuniarti: We going into each of the region that has specific problem for their loan quality and try to find out the root cause as well as adjust the policy accordingly and only for local implementation. Also, we have a parameterized pre-screening scoring and pre-wash inside the BRISPOT as well. The BRISPOT is now also accommodate the risk management side. In the back side, the workload of monthly also a little bit reduced because of the field collection officer that handles the off-balance sheet NPL or return of loan. Previously, with the similar ratio of borrower to monthly, they also still handle the return of loan. But now they do not handle that anymore. That is why some of the workload also can be allocated to have more rigorous analysis. Maybe that is from the front, mid, and back improvement in underwriting that I can share with you, Pak Joshua Tanja. Thank you.

Hery Gunardi Tbk): Okay. Thank you, Bu Ety. I think, Pak Achmad Royadi, you can respond in term of the part of the questions is current macroeconomic pressures. Talk about IDR inflation risk, et cetera. Please, Pak.

Hery Gunardi: Okay. Thank you, Bu Ety. I think, Pak Achmad Royadi, you can respond in term of the part of the questions is current macroeconomic pressures. Talk about IDR inflation risk, et cetera. Please, Pak.

Aris Hartanto Tbk): Thank you, Pak. Let me add about the macro condition, like Pak Joshua Tanja mentioned also. I think, yes, the macro condition still is quite challenging, but at least in H2, we see two positive side here. First, H2, government spending will be more accelerate compared in H1, government spending only 40% of the total budget. It means 60% of total budget will be done in H2. It means that it will give some positive factor in term of the growth. Currently, government focus also focus in the low end economy. I think it is in good side. Second is related with the BI policy and liquidity. Currently, with the new government of BI to maintain the IDR, they still not only rely on the interest rate, but also other tools.

Achmad Royadi: Thank you, Pak. Let me add about the macro condition, like Pak Joshua Tanja mentioned also. I think, yes, the macro condition still is quite challenging, but at least in H2, we see two positive side here. First, H2, government spending will be more accelerate compared in H1, government spending only 40% of the total budget. It means 60% of total budget will be done in H2. It means that it will give some positive factor in term of the growth. Currently, government focus also focus in the low end economy. I think it is in good side. Second is related with the BI policy and liquidity. Currently, with the new government of BI to maintain the IDR, they still not only rely on the interest rate, but also other tools.

Aris Hartanto Tbk): Like for example, BI lowered the SRBI rate quite significantly from 7.7% to become 7%. I think it is good for our liquidity and also our cost of fund to support the micro growth. The second, BI also released new regulation related with the piece of requirement. Based on this new regulation, we expect BRI will have another IDR 10 to 15 trillion released in liquidity, because we meet the new criteria. It is also support the liquidity and then we can support growth especially in micro. I think that is two factors that give some positive impact to our microeconomic environment, especially in the H2. Thank you, Pak.

Achmad Royadi: Like for example, BI lowered the SRBI rate quite significantly from 7.7% to become 7%. I think it is good for our liquidity and also our cost of fund to support the micro growth. The second, BI also released new regulation related with the piece of requirement. Based on this new regulation, we expect BRI will have another IDR 10 to 15 trillion released in liquidity, because we meet the new criteria. It is also support the liquidity and then we can support growth especially in micro. I think that is two factors that give some positive impact to our microeconomic environment, especially in the H2. Thank you, Pak.

Hery Gunardi Tbk): All right. Pak Achmad Royadi, thank you very much for the response, for the answer. Back to Siaga. Maybe there are other questions coming.

Hery Gunardi: All right. Pak Achmad Royadi, thank you very much for the response, for the answer. Back to Siaga. Maybe there are other questions coming.

Siaga Tbk): Thank you, Pak. There is the next question from Jayden, Macquarie. How much of the corporate loan growth is to SOEs versus private sector customers? How much deposits has BRI generated incrementally from your corporate clients relative to outstanding loans? Same question regarding the Agrina's loan. What is the outstanding amount, risk weight, and then the provisions? The third one is, can you please clarify what range of dividend payout ratio will apply this year, and what is the sustainable level this medium term? I think, Pak Hery, please answer him.

Siaga Hutama: Thank you, Pak. There is the next question from Jayden, Macquarie. How much of the corporate loan growth is to SOEs versus private sector customers? How much deposits has BRI generated incrementally from your corporate clients relative to outstanding loans? Same question regarding the Agrina's loan. What is the outstanding amount, risk weight, and then the provisions? The third one is, can you please clarify what range of dividend payout ratio will apply this year, and what is the sustainable level this medium term? I think, Pak Hery, please answer him.

Hery Gunardi Tbk): All right. Thank you, Jayden, for the questions. I think Pak Riko, the Corporate Banking Director, will respond the question number 1, number 2. Maybe the number 3 will take by Pak Achmad Royadi because the dividend payout ratio is the job of the CFO to answer. Please, Pak.

Hery Gunardi: All right. Thank you, Jayden, for the questions. I think Pak Riko, the Corporate Banking Director, will respond the question number 1, number 2. Maybe the number 3 will take by Pak Achmad Royadi because the dividend payout ratio is the job of the CFO to answer. Please, Pak.

Riko Tasmaya Tbk): Yes. Thank you so much, Pak Hari, and thank you, Jayden, for the questions. We have been focusing in rebalancing the portfolio from the SOE and also the non-SOE in our portfolio in wholesale in corporate banking. It used to be more than about 60% of the portfolio, but currently is less than 50%. In Q2 2026, we disbursed about IDR 52.4 trillion to SOE, which is majority the lending is for PT Pertamina Patra Niaga, and it is a short-term kind of lending amounting about IDR 22.8 trillion in this quarter. Beside the SOE, we also provide loan to our subsidiaries to help them in operational side, such as BRI Multifinance, Pegadaian, and PNM. There is amounting about IDR 6.8 trillion of the portfolio. This loan was primarily to support on their liquidity to channel their loans products to our target markets.

Riko Tasmaya: Yes. Thank you so much, Pak Hari, and thank you, Jayden, for the questions. We have been focusing in rebalancing the portfolio from the SOE and also the non-SOE in our portfolio in wholesale in corporate banking. It used to be more than about 60% of the portfolio, but currently is less than 50%. In Q2 2026, we disbursed about IDR 52.4 trillion to SOE, which is majority the lending is for PT Pertamina Patra Niaga, and it is a short-term kind of lending amounting about IDR 22.8 trillion in this quarter. Beside the SOE, we also provide loan to our subsidiaries to help them in operational side, such as BRI Multifinance, Pegadaian, and PNM. There is amounting about IDR 6.8 trillion of the portfolio. This loan was primarily to support on their liquidity to channel their loans products to our target markets.

Riko Tasmaya Tbk): Excluding our subsidiaries, our 2026 SOE disbursement will be composing about 50% of the expansions. But overall portfolio is already less than 50%. So the strategy works in rebalancing the portfolio. The rest of the 45% of the non-SOEs disbursements reflected a very selected risk acceptance and economy value creations, primarily within the manufacturing side and also in energy sectors. In this selection of the portfolio, we also put a lot of attention in terms of how the portfolio is supporting the ecosystem of the supply chains. In terms of the corporate deposits, the strong growth in corporate loan is also followed by the positive growth in terms of the wholesale transactions. So we have been very focused in the supporting the transaction banking, especially in the cash management side.

Riko Tasmaya: Excluding our subsidiaries, our 2026 SOE disbursement will be composing about 50% of the expansions. But overall portfolio is already less than 50%. So the strategy works in rebalancing the portfolio. The rest of the 45% of the non-SOEs disbursements reflected a very selected risk acceptance and economy value creations, primarily within the manufacturing side and also in energy sectors. In this selection of the portfolio, we also put a lot of attention in terms of how the portfolio is supporting the ecosystem of the supply chains. In terms of the corporate deposits, the strong growth in corporate loan is also followed by the positive growth in terms of the wholesale transactions. So we have been very focused in the supporting the transaction banking, especially in the cash management side.

Riko Tasmaya Tbk): So in our platform, Qlola, we have posted a very strong transaction growth of 59.5% year on year, which is reaching above IDR 558.4 trillion in H1 2006. The composition of corporate deposits is about 38% of figures, slightly flattish compared to last year, about 37.5%, because there is some outliers transaction last year. But if you look at the overall loan versus the CASA or loan versus the operating account within the wholesale banking transaction, the ratio is 50%. Which is very positive in terms of mix between the loan and the general. Cost of fund of the corporate also recorded stable around slightly above the 3%, and June lowered, but historical cost of funds is lower than last year. So that is the answer for the probably point one.

Riko Tasmaya: So in our platform, Qlola, we have posted a very strong transaction growth of 59.5% year on year, which is reaching above IDR 558.4 trillion in H1 2006. The composition of corporate deposits is about 38% of figures, slightly flattish compared to last year, about 37.5%, because there is some outliers transaction last year. But if you look at the overall loan versus the CASA or loan versus the operating account within the wholesale banking transaction, the ratio is 50%. Which is very positive in terms of mix between the loan and the general. Cost of fund of the corporate also recorded stable around slightly above the 3%, and June lowered, but historical cost of funds is lower than last year. So that is the answer for the probably point one.

Speaker #1: The the ratio is 50% so it's very which is very very positive in terms of mix between the loan and and and the general cost of fund of the cost of fund of the corporate also recorded stable around around close around above slightly above the 3% and joint lower but historical cost of funds is lower than last year so that's this the the the answer for the probably point one in the the second one the AGRINAS side the outstanding today as we communicate before is still the same is 53 55 trillions with around 1.29% coverage and 50% risk weighted this is probably something that Ibu Eti will will discuss a bit more but as we communicate before this AGRINAS is a has been the plan is continued the same they will have a repayments this in in September and right now very close coordination between Danantara Himbara and also MYF in terms of the the execution of the of the plan of the payments so maybe with that Bu Eti maybe give a little bit color on the risk side thank you thank you Pak Rico so for AGRINAS Pak Rico mentioned earlier the exposure is 55 trillion the coverage in the first quarter it was like 0.8% but as I mentioned earlier we have some remodel due to audit in June and we increase the coverage to 1.3% so around 730 billion rupiah in terms of risk with asset we use 50% similar to other PSO so SOE like Pertamina PLN the public service obligation we use that as a benchmark and as Pak Rico mentioned earlier that we still in our scenario is by end of September it will be paid off the first you know installment which is 9 trillion for principal and around 2 trillion for interest but as a risk manager what if scenario we still use we still do the status as well so if they fail to pay and it goes to SML what's the impact to COC and the car the COC will be increasing roughly like 10 trillion or roughly like 70 basis point to bank only and then car will be lower around 100 basis point or 1% due to increasing risk with asset from 50% to 80% hopefully that's answer Jaden thank you okay for let me continue with question related with the dividend payment yeah like we discussed earlier yeah for the last four five years our dividend payout it is up normally high again it is related related with after we doing right issue in the 2021 our car is higher yeah so since 21 until 20 2025 our dividend payout is ranging between 85 to 92% going forward we would like to normalize our dividend payout yeah so with the assumption that our ROE is around 18 to 20% and our suitable growth rate is 8 to 10% actually our normalized or sustained dividend payout is around 50 to 60% but we will do gradually so for the next three four years maybe it will be reaching to 50 60% but until now until before we reaching this normalized dividend payout it will be gradually declined from 90 to percent last year this year we expect around 70 and then keep coming down normalized to 50 60% so again but it is still subject to approval our Danantara yeah related with that so I think in general this is related our dividend payout the next two three year thank you thank you Pak Royadi I think the last question wrap up the conversations and after if there's any follow-up question you can come to investor relation for the call after this earnings call I think I'll hand it over to Pak Harry Pak Group CEO for his closing remarks please Pak all right siaga thank you very much thank you very much everyone before we close the the call today the analyst meeting today I would like to conclude yeah with the key messages yeah from our first half 2026 performance so basically our transformation we call a brief pollution reignite is translating transformation into the tangible result and reinforcing BRI resilience so our core which is the micro business is getting healthier healthier so better risk selection stronger credit process and also improve field productivity are driving consistent asset quality improvement while micro is beginning to regain growth momentum slowly but sure yeah our funding franchise is becoming stronger and more efficient CASA.

Riko Tasmaya Tbk): In the second one, the Agrina side, the outstanding today, as we communicated before, is still the same, is IDR 55 trillion, with around 1.29% coverage and 50% risk-weighted. This is probably something that Ibu Ety will discuss a bit more. But, as we communicated before, this Agrina, the plan is continue the same. They will have repayments in September. And right now

Riko Tasmaya: In the second one, the Agrina side, the outstanding today, as we communicated before, is still the same, is IDR 55 trillion, with around 1.29% coverage and 50% risk-weighted. This is probably something that Ibu Ety will discuss a bit more. But, as we communicated before, this Agrina, the plan is continue the same. They will have repayments in September. And right now, very close coordination between Danareksa, Himbara, and MoF in terms of the execution of the plan of the payments. Maybe with that, Ibu Etty will give a little bit color on the risk side. Thank you.

Siaga Tbk): Very close coordination between Danareksa, Himbara, and MoF in terms of the execution of the plan of the payments. Maybe with that, Ibu Etty will give a little bit color on the risk side. Thank you.

Ety Yuniarti Tbk): Thank you, Pak Rico. For Agrina, Pak Rico mentioned earlier the exposure is IDR 55 trillion. The coverage in the first quarter, it was like 0.8%, but as I mentioned earlier, we have some remodel due to audit in June, and we increased the coverage to 1.3%, so around IDR 730 billion. In terms of risk-weighted asset, we use 50%, similar to other PSO. SOE like Pertamina, PLN, the public service obligation, we use that as a benchmark. As Pak Rico mentioned earlier, that we still in our scenario is by end of September, it will be paid off the first installment, which is IDR 9 trillion for principal and around IDR 2 trillion for interest. As a risk manager, what if scenario we still do the stress test as well.

Ety Yuniarti: Thank you, Pak Rico. For Agrina, Pak Rico mentioned earlier the exposure is IDR 55 trillion. The coverage in the first quarter, it was like 0.8%, but as I mentioned earlier, we have some remodel due to audit in June, and we increased the coverage to 1.3%, so around IDR 730 billion. In terms of risk-weighted asset, we use 50%, similar to other PSO. SOE like Pertamina, PLN, the public service obligation, we use that as a benchmark. As Pak Rico mentioned earlier, that we still in our scenario is by end of September, it will be paid off the first installment, which is IDR 9 trillion for principal and around IDR 2 trillion for interest. As a risk manager, what if scenario we still do the stress test as well.

Ety Yuniarti Tbk): If they fail to pay and it goes to SML, what is the impact to CoC and the CAR? The CoC will be increasing roughly IDR 10 trillion or roughly 70 basis point to bank only, and then CAR will be lower around 100 basis point or 1% due to increasing risk-weighted asset from 50% to 80%. Hopefully, that is answered, Jayden. Thank you.

Ety Yuniarti: If they fail to pay and it goes to SML, what is the impact to CoC and the CAR? The CoC will be increasing roughly IDR 10 trillion or roughly 70 basis point to bank only, and then CAR will be lower around 100 basis point or 1% due to increasing risk-weighted asset from 50% to 80%. Hopefully, that is answered, Jayden. Thank you.

Aris Hartanto Tbk): Okay. Let me continue with the question related with dividend payment. Like we discussed earlier, for the last four, five years, our dividend payout, it is up abnormally high. Again, it is related with after we doing a right issue in 2021, our coverage higher. Since 2021 until 2025, our dividend payout is ranging between 85% to 92%. Going forward, we would like to normalize our dividend payout. With the assumption that our ROE is around 18% to 20% and our sustainable growth rate is 8% to 10%, actually our normalized or sustained dividend payout is around 50% to 60%, but we will do gradually. For the next three, four years, maybe it will be reaching to 50%, 60%. But until now, until before we reaching this normalized dividend payout, it will be gradually declining from 92% last year.

Achmad Royadi: Okay. Let me continue with the question related with dividend payment. Like we discussed earlier, for the last four, five years, our dividend payout, it is up abnormally high. Again, it is related with after we doing a right issue in 2021, our coverage higher. Since 2021 until 2025, our dividend payout is ranging between 85% to 92%. Going forward, we would like to normalize our dividend payout. With the assumption that our ROE is around 18% to 20% and our sustainable growth rate is 8% to 10%, actually our normalized or sustained dividend payout is around 50% to 60%, but we will do gradually. For the next three, four years, maybe it will be reaching to 50%, 60%. But until now, until before we reaching this normalized dividend payout, it will be gradually declining from 92% last year.

Aris Hartanto Tbk): This year, we expect around 70%, and then keep coming down normalized to 50%, 60%. Again, it is still subject to approval our Danareksa, related with that. I think in general, this is related our dividend payout the next 2, 3 years. Thank you.

Achmad Royadi: This year, we expect around 70%, and then keep coming down normalized to 50%, 60%. Again, it is still subject to approval our Danareksa, related with that. I think in general, this is related our dividend payout the next 2, 3 years. Thank you.

Siaga Tbk): Thank you, Pak Royadi. I think the last question wrap up the Q&A sessions, and if there is any follow-up question, you can come to investor relation from the call after this earnings call. I think I will hand it over to Pak Heri, our Group CEO, for his closing remarks, please, Pak.

Siaga Hutama: Thank you, Pak Royadi. I think the last question wrap up the Q&A sessions, and if there is any follow-up question, you can come to investor relation from the call after this earnings call. I think I will hand it over to Pak Heri, our Group CEO, for his closing remarks, please, Pak.

Hery Gunardi Tbk): All right. Sayaga, thank you very much. Thank you very much, everyone. Before we close the call today, the analyst meeting today, I would like to conclude with the key messages from our H1 2026 performance. Basically, our transformation, we call BRIvolution Reignite, is translating transformation into the tangible results and reinforcing BRI resilience. Our core, which is the micro business, is getting healthier. Better risk selection, stronger credit process, and also improved field productivity are driving consistent asset quality improvement, while macro is beginning to regain growth momentum, slowly but sure. Our funding franchise is becoming stronger and more efficient. CASA lead growth supported by digital channel and also transaction banking in deepening customer relationship and reducing reliance on aggressive deposit pricing. We basically quite aggressive to reduce the special rate for time deposit.

Hery Gunardi: All right. Sayaga, thank you very much. Thank you very much, everyone. Before we close the call today, the analyst meeting today, I would like to conclude with the key messages from our H1 2026 performance. Basically, our transformation, we call BRIvolution Reignite, is translating transformation into the tangible results and reinforcing BRI resilience. Our core, which is the micro business, is getting healthier. Better risk selection, stronger credit process, and also improved field productivity are driving consistent asset quality improvement, while macro is beginning to regain growth momentum, slowly but sure. Our funding franchise is becoming stronger and more efficient. CASA lead growth supported by digital channel and also transaction banking in deepening customer relationship and reducing reliance on aggressive deposit pricing. We basically quite aggressive to reduce the special rate for time deposit.

Speaker #1: Lead growth supported by digital channel and also transaction banking in deepening customer relationship and reducing reliance on the aggressive deposit pricing we basically quite aggressive to reduce the special rate per time deposit so the next one is our growth and earning are becoming more diversified corporate banking commercial consumer gold and transaction banking are complementing our micro franchise while resilient margin and strong capital continue to protect profitability as I mentioned in during the couple quarter yeah to the audience the analyst basically we are not only strengthening the micro but also we would like to gaining the new business from the second new core we call it the second core which is the consumer consumer banking including the mortgages multi-purpose loan and also the gold businesses and now we have the new kid on the block coming is the multi-finance and also the auto loan as well this improvement are already visible with the net profit growing 17.5% year on year I think it's quite high during the circumstance yeah we see the economic global economic yeah going forward and also numbers 31.2 trillion rupiah is big numbers going forward we will stay to course strengthening our core deepening our funding franchise and also diverse diversifying growth to build stronger and more resilient BRE again thank you very much for joining us yeah hopefully we will meet you the next three quarters yeah result thank you very much have a good days.

Hery Gunardi Tbk): The next one is our growth and earning are becoming more diversified. Corporate banking, commercial, consumer, gold, and transaction banking are complementing our micro franchise, while resilient margin and strong capital continue to protect profitability. As I mentioned during the couple quarter to the audience, the analysts, basically we are not only strengthening the micro, but also we would like to gaining the new business from the second new core, we call it the second core, which is the consumer banking, including the mortgages, multipurpose loan, and also the gold businesses. Now we have the new kid on the block coming is the BRI Multifinance and also the auto loan as well. These improvements are already visible with the net profit growing 17.5% year-on-year. I think it is quite high during the circumstance.

Hery Gunardi: The next one is our growth and earning are becoming more diversified. Corporate banking, commercial, consumer, gold, and transaction banking are complementing our micro franchise, while resilient margin and strong capital continue to protect profitability. As I mentioned during the couple quarter to the audience, the analysts, basically we are not only strengthening the micro, but also we would like to gaining the new business from the second new core, we call it the second core, which is the consumer banking, including the mortgages, multipurpose loan, and also the gold businesses. Now we have the new kid on the block coming is the BRI Multifinance and also the auto loan as well. These improvements are already visible with the net profit growing 17.5% year-on-year. I think it is quite high during the circumstance.

Hery Gunardi Tbk): We see the global economy going forward, and also IDR 31.2 trillion is big numbers. Going forward, we will stay the course, strengthening our core, deepening our funding franchise, and also diversifying growth to build stronger and more resilient BRI. Again, thank you very much for joining us. Hopefully, we will meet you the next three quarters' result. Thank you very much. Have a good days.

Hery Gunardi: We see the global economy going forward, and also IDR 31.2 trillion is big numbers. Going forward, we will stay the course, strengthening our core, deepening our funding franchise, and also diversifying growth to build stronger and more resilient BRI. Again, thank you very much for joining us. Hopefully, we will meet you the next three quarters' result. Thank you very much. Have a good days.

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