BTN Strengthens Capital and Accelerates Credit Strengthening

Photo: BTN

JAKARTA - The Annual General Meeting of Shareholders (RUPST) for the 2025 Fiscal Year of PT Bank Tabungan Negara (Persero) Tbk (BTN) held on Thursday, April 23, 2026, decided to strengthen the company's capital to expand credit. This capital strengthening is in line with the shareholders' decision to allocate BTN 2025 net profit of IDR 3.5 trillion as retained earnings to support future credit expansion.

BTN President Director, Nixon LP Napitupulu, at a press conference confirmed that for the use of profits, the RUPST decided on a dividend payout ratio of 0 percent, with consideration to support credit expansion that exceeds the Work Plan and Budget of the Company (RKAP), so that profits are used as a capital strengthening in 2026.

The decision was based on the plan to acquire a credit portfolio that had been processed for quite some time. The portfolio includes productive and consumer loans with transaction values exceeding 20 percent of the Company's equity, requiring capital strengthening.

Nixon explained that the Company had previously considered various funding options, including the issuance of debt securities, but it was considered less efficient.

"So we had planned to issue sub-debt or additional tier 1 capital. But the time was not possible, and if you use it there is a burden of interest," he said.

Furthermore, Nixon emphasized that the decision not to distribute dividends was taken to maintain efficiency while strengthening expansion capacity.

"So finally it was agreed, we did not pay dividends or dividend payout of 0 percent this year, because the capital was needed for the purchase of the portfolio. That way we no longer need to issue debt," he explained.

In line with this, BTN targets credit and financing growth in 2026 to grow in the range of 8-10 percent, while continuing to focus on the housing segment, both subsidized and non-subsidized, as well as strengthening the housing financing ecosystem.

Regarding credit expansion, RUPST approved the granting of authority to the Board of Commissioners of the Company, with prior approval in accordance with applicable regulations, to approve the plan to acquire a credit portfolio from third parties.

Nixon assessed that the acquisition of the credit portfolio had a better yield profile and asset quality compared to the Company's existing portfolio so that it could provide added value for the company.

"The yield is better than BTN's yield today, so we buy. Then the NPL is smaller than BTN's NPL today," he said.

This transaction is projected to improve asset quality while improving BTN's financial performance.

"So with the purchase of this portfolio, BTN's NPL ratio at the end of the year will fall below 3%. Our interest income will be better, and our total credit will exceed the RKAP," he explained.

Currently, the opposing party to the transaction has not been able to be conveyed because the process is still ongoing, with the target of signing the agreement around mid-May.

In addition, BTN is also expanding strategic collaboration to strengthen the housing credit pipeline, one of which is through cooperation with PT Kereta Api Indonesia (Persero) in the development of transit-based housing (transit oriented development/TOD), including the development of vertical housing projects which are planned to include five towers in a number of strategic locations.

Meanwhile, RUPST received a report on the realization of the use of funds from the Public Offering of Sustainable Bonds VI BTN Phase II of 2025 and Sustainable Mudharabah Sukuk V BTN Phase II of 2025.

RUPST also approved the change of the Recovery Plan as part of efforts to strengthen the Company's resilience in the face of potential financial pressures.

RUPST also approved the 2026 Annual Work Plan (RKAP) and the Company's Long-Term Plan (RJPP) for 2025-2029 as guidelines for the Company's business development in the medium and long term.

Meanwhile, in connection with the change in the composition of the Company's management, RUPST approved the reappointment and/or change in the composition of the Company's Board of Directors and Board of Commissioners in accordance with applicable regulations.

The changes include considering the end of the term of office and the assignment of new positions in other entities. In this case, Mr. Dwi Ary Purnomo, who previously served as Deputy President Commissioner, has been appointed as Financial Director of PT Asuransi Kerugian Jasa Raharja since February 25, 2026, so that he is no longer serving in the Company's management structure. The position of Deputy President Commissioner, based on the results of the RUPST, was filled by Endra Gunawan. Endra Gunawan also serves as Deputy for Improving the Value of SOEs-BP BUMN.

Meanwhile, RUPST also approved the reappointment of Mr. Nofry Rony Poetra and Mr. Eko Waluyo to continue their terms of office as members of the Company's Board of Directors, as part of efforts to maintain continuity of leadership and implementation of the Company's business strategy.

Nixon expressed his appreciation for the contributions made. "We express our deepest thanks and appreciation to Mr. Dwi Ary Purnomo for his dedication and contributions during his tenure. The company also welcomes the continuation of the roles of Mr. Nofry Rony Poetra and Mr. Eko Waluyo in strengthening BTN's performance and transformation in the future," said Nixon.

He added that the change in the composition of the board of directors is part of the organization's dynamics to strengthen the strategic direction of the Company.

"BTN is optimistic that the new management structure will further strengthen the Company's leadership in driving sustainable business growth and increasing value for all stakeholders," he concluded.

In accordance with the results of the RUPST decision, the following is the composition of the new company's management:

Board of Directors

* President Director: Nixon L.P. Napitupulu* Deputy President Director: Oni Febriarto Rahardjo* Director of Finance & Strategy: Nofry Rony Poetra* Director of Consumer Banking: Hirwandi Gafar* Director of Risk Management: Setiyo Wibowo* Director of Operations: I Nyoman Sugiri Yasa* Director of Network & Retail Funding: Rully Setiawan* Director of Commercial Banking: Hermita* Director of Human Capital & Compliance: Eko Waluyo* Director of Information Technology: Tan Jacky Chen* Director of Treasury & International Banking: Venda Yuniarti* Director of Corporate Banking: Helmy Afrisa Nugroho

Board of Commissioners

* President Commissioner: Suryo Utomo * Deputy President Commissioner: Endra Gunawan * Commissioner: Fahri Hamzah * Commissioner: Didyk Choiroel * Independent Commissioner: Ida Nuryanti * Independent Commissioner: Pietra Machreza Paloh * Independent Commissioner: Panangian Simanungkalit