As BCA’s contribution to developing the Indonesian economy, in 2020 BCA lending to the MSME sector reached Rp77.2 trillion, or 13.4% of total loans.

2020 Sustainability Report | PT Bank Central Asia Tbk

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Sustainability Governance Together through

Pandemic Challenges Sustainability Aspects Highlight

eSG-based electricity Sector Financing Portfolio by region (rp billion)

[FS6]

Description 2020 2019 2018

Sumatra 1,103 779 944

Java 353 251 238

Nusa Tenggara 49 50 47

Sulawesi 54 202 227

Kalimantan 131 175 206

total 1,690 1,457 1,663

SuPPortinG Micro, SMall anD MeDiuM enterPriSeS (MSMeS)

As BCA’s contribution to developing the Indonesian economy, in 2020 BCA lending to the MSME sector reached Rp77.2 trillion, or 13.4% of total loans.

Supporting MSMes during the Pandemic

[203-2]

[FN-CB-240a.1]

MSME loans disbursed during 2020 amounted to Rp77.2 trillion, or a decrease or Rp4.3 trillion from last year.

This was mainly due to the COVID-19 pandemic impact on the economic sector and weak demand so that debtors tend to maintain inventory and receivables at a healthier level, as well as make efficiency in running their business by reducing usage of credit facilities or reducing/paying off part of their credit facilities.

2020 Sustainability Report | PT Bank Central Asia Tbk Inspiration for

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Responsible Banking Inspiration for Sustainability Culture Inspiration for Social Value Creation

The channeling cooperation pattern is also carried out by disbursing of business loans (KUR) through Perkreditan Rakyat (BPR) Karya Perdana Sejahtera (KPS). This channeling collaboration with BPR KPS is aimed at supporting community businesses in the Gunung Kawi area, Malang, including the cattle breeding business through PT Santosa Agrindo (PT Santori), a partner of the MSME cattle breeders. PT Santori will transfer technology to the breeders as well as act as an offtaker, distributing KUR with a limit of Rp20 billion.

Rp 132.7

^billion

Total 2020 KUR disbursements

5.6 ^{% YoY}

Increase in KUR disbursements

Personal business loans (Kur)

[FS7, FS8] [FN-CB-240a.1]

As a form of commitment to supporting sustainable finance, BCA distributes KUR and ESG-oriented financing. BCA distributes financing for productive businesses, ranging from corporate, commercial, to MSMEs. In addition, BCA also focuses on business that encourage increased activities and creativity in disadvantaged (unbankable) areas. The productive businesses include handicrafts, processed agricultural products, animal husbandry and nurseries.

KUR disbursements follow the principle of equality, regardless of background. We also provide assistance and learning on financial products and/or services to help their businesses.

2020 Kur Disbursements

[FN-CB-240a.1]

type of Kur number of Debtors Maximum Financing

(rp billion) composition

%

Micro 446 16.1 12.1

Retail 660 116.6 87.9

total 1,106 132.7 100.0

As at the end of December 2020, the KUR disbursement portfolio had reached Rp132.7 billion, with 1,106 debtors, an increase of 5.6% compared to 2019. The KUR disbursements take place through intermediary branches, and BCA also collaborates with off-takers and channeling schemes. The KUR disbursements this year were dominated by the production business sector. During 2020, the NPL value of BCA KUR was 2.7%, below the target of 3%. [FN-CB-240a.2]

“Thanks to the KUR program, the ginger farmers have been greatly helped. Initially, I had problems raising capital, but now it’s easier and the loan process is very fast. Now I can grow ginger at the right time without any worries about capital.”

tasrip

Ginger Farmer