Annual Report Versi Inggris Bank BTN 2017

Annual Report 2017
Digital Banking-Based Transformation

to Support the Strengthening and Expansion
of Housing Business
Introduction Company Performance 2017 Reports of The Board of Commisioners and Directors
Theme Continuity
Digital Banking-Based Transformation

to Support the Strengthening and
Expansion of Housing Business
In line with the growth of the Indonesian population, the number of housings or residencies backlog
keeps increasing. Housing is the basic needs of the community. Based on the Statistics Indonesia
(BPS), the backlog number reached 11.4 million house units, which still needs to be fulfilled by the
Government. To reduce the amount of backlog, PT Bank Tabungan Negara (Persero) Tbk, hereinafter
referred to as the Company, participated in the One Million Houses Program, proclaimed by President
Joko Widodo in the Nawacita Program (9 Development Priorities Agenda)
The Company has two main roles and is the motor in realizing the One Million Houses Program.
First, the Company is a financing institution that provides lending products to all parties related to
housing construction, both in terms of supply and demand. Secondly, the Company is an initiator and
integrator of cooperation in between institution in increasing the houses supply. As the major player
in the national housing finance, the Company will continue to increase its capacity by committing
to enhancing the synergy, competitiveness, and added value through digital-based transformation.
This is performed to strengthen the Company’s core business in the housing finance field, particularly
to encourage the fulfillment of the One Million Houses Program, through housing finance and its
derivative industries.
Annual Report 2017 PT Bank Tabungan Negara (Persero) Tbk.

Corporate Profile Management Discussion and Analysis Corporate Governance Corporate Social Responsibility 1
Along with the rapid business changes and competitive competition in the banking sector, the
Company does not have a choice but to enter and compete in the competition, by preparing the Bank’s
digital banking business. The Company’s focus on making the digital banking-based transformation
is conducted by improving the business process in order to provide faster service to the public with
excellent quality.
The Company’s digital-based transformation is a priority in 2017. Because, the digital domination in the
business aspect of all sectors and lines is real. The Company’s understanding of millennial generation
and the millennial generation development in terms of human resources are the Managements’
concern to anticipate the competition, especially in facing the ASEAN Economic Community (AEC)
and the competitive reliability in the market today. The Company will continue to develop the latest
and specialized use of digital technology to support its services and network. The Company does
not stop the transformation on digitalization only. There are three Company’s transformation, i.e.
business transformation, infrastructure transformation, and people transformation. These three
transformations are performed simultaneously in order to be the world-class company.
In the banking business transformation, there is three periods. The first phase is the survival period,
which has passed in 2013-2015. The second phase is the digital banking period, which is conducted
since 2015. The last phase will be the global partnership transform, so the Company will be able to
compete in the global competition.
In terms of infrastructure transformation, the Company has developed digital banking services to
further facilitate services to its customers. The digital banking services are implemented through
several concrete steps related to technology transformation towards digital banking, by optimizing
the use of electronic transaction features. To complete the digital-based services such as mobile
banking, internet banking, and cash management, the Company also integrates various e-channel
application and facilitates its outlets with digital banking-based services (BTN Digital Longue), such as
ATM, CDM, e-KTP reader, Pin Pad, all-in-one-PC, internet coroner, digital banner interactive, opening
an account via web, Housing Loan application, opening deposit and demand deposit, and cash deposit
and withdrawals, in order to accelerate the process of taking off to the era of free competition in
Southeast Asia.
In terms of people transformation or human capital, the Company wants the human resources to
have more efficient and faster working process. In addition, the Company’s HR must emphasize the
Good Corporate Governance (GCG), so that the Company’s transformation process can run smoothly.
All Company’s transformation process is summarized in the ‘5 Siap (Ready 5)’ Program, i.e. Ready HR,
Ready Technology, Ready Business Process, Ready Funds, and Ready Houses Supply.
The Company’s transformation process is quite remarkable, as the transformation has been able to
drive the Company’s performance. Throughout 2017, the Company succeeded to record Net Income
at Rp3.02 trillion, increased by 15.59% compared to the previous year, which was Rp2.61 trillion. The
Company is optimistic that business will be better with the potential of quite big Housing Loan market.
The digital-based transformation will also contribute highly to the Company’s business. Currently,
the Company has entered the ranking of the 6th largest Banks in the country based on Assets. With
the support of various parties, the Company is optimistic that in the near future, it will rise to the 5th
position as the largest bank in Indonesia.
Digital Banking-Based Transformation to Support the Strengthening and Expansion of Housing Business
2 Introduction Company Performance 2017 Reports of The Board of Commisioners and Directors
2017
Digital Banking-Based Transformation to Support the Strengthening
and Expansion of Housing Business
The Company’s digital-based transformation is a priority in 2017. Because, the digital

domination in the business aspect of all sectors and lines is real. The Company’s
understanding of millennial generation and the millennial generation development
in terms of human resources are the Managements’ concern to anticipate the
competition, especially in facing the ASEAN Economic Community (AEC) and the
competitive reliability in the market today. The Company will continue to develop the
latest and specialized use of digital technology to support its services and network.
2016
Strengthening the foundation of sustainable growth, supporting the
acceleration of one million houses program
In 2016, we managed to record a successful performance by applying the Company’s

governance best practices and gaining a positive public image. The success was
achieved due to the consistency of the Company in running its business based on
healthy industrial and commercial principles with resources capable of generating
value creation, complying with the regulations, and with clear direction and strategies.
2015
BTN 5IAP Become a Top Player of One Million Houses Program
The Company position in housing finance is getting stronger. It is supported by a long

history in housing finance, and the “ 5iap Program”, the Company is ready to become
a major player in the One Million Houses program launched by the government.
5iap stands for - Human Resources (HR) is ready, Technology is ready, Business
Process is ready, Funding is ready and Housing Supply is ready. With this readiness
the Company is optimistic that it will continue to improve its performance Now and
in the future.

2014
BTN TERDEPAN, GCG RUMAHKOE
Heading for 2015, which is often referred to as the new economic era - the era of
ASEAN free market competition, the Company has established a new tagline that has
also become the Bank’s new corporate culture: “BTN TERDEPAN GCG RUMAHKOE”.
This new tagline shows the Company’s strong determination to realize its vision “To
be the leading bank in housing finance”, by adhering to Good Corporate Governance.
2013
Transformation Supported by Good Governance Implementation
in Quality Business Achievement
Entering 2013, the Company undergoes the process to the next level through the
transformation in business, culture, and infrastructure (foundations). According to the
Company focus and vision to become a leading bank in housing financing, 2013 can
be illustrated as a foundation in building the Company houses. Similar to constructing
a house, a person will dig deep and put the foundation on a solid stone, so when flood
comes, the house is unshaken, as the house is built on a strong foundation.
2012
Dedicated to Indonesian Families
The house is not only a basic human need for Indonesian families, it is more. The
property sector plays an important role in the national economy. No fewer than
175 industries depend on this sector. A large amount of labor can be absorbed, so
its impact is on the reduction of unemployment.
Contents
Introduction 1 Theme Continuity

5 Contents
9 Company’s Important Achievement 2017
10 BTN Agile Transformation Journey
12 2017 Digital Banking Projects
14 Company’s Key Events 2017
19 Testimonial
01
23 Important Financial Data Highlights
29 Information for Shareholders and Investors
32 Company Share Performance
Company Performance 2017 35 Company Share Highlights
37 Information on Bonds, Sukuk, or Convertible Bonds
in the last 2 (two) Years
02
43 Report of the Board of Commissioners
47 Report of the Board of Directors
60 Accountability of Annual Report 2017
Reports of The Board of
Commissioners and Directors
03
65 Company Identity
66 Company’s Milestones
68 Company’s Brief History
Corporate Profile 70 Vision, Mission, and Corporate Culture and Values
74 Strategies to Achieve the Company’s Vision and Mission
75 Corporate Brand
76 Business Sector
77 Products and Services
91 Structure and Composition of Shareholders
94 Company’s Organization Structure
96 Sharia Supervisory Board’s Profiles
100 Board of Commissioners’ Profiles
106 Board of Directors’ Profiles
112 Officers Reporting Directly to the Board of Directors
116 Employee Statistics

03
120 Education and/or training of the Board of Commissioners, the Board of
Directors, the Committees, the Corporate Secretary, and the Internal
Audit Unit (refers to the Governance Chapter Profile of the Board of
Corporate Profile Commissioners and Board of Directors)
132 Employee Competence Development
132 Group Structure, Subsidiaries, Associations, and Venture Companies
132 Share Listing Chronology
132 Chronological Listing of Stocks
136 Certification and Awards
142 Map of Operational Area
144 Name and Addresses of Regional Offices and Branches
150 Capital Market Supporting Institutions
150 Company’s Website
04
155 Industry Analysis
155 The World Economy
156 Indonesian Economy
Management Discussion 157 Banking Industry Condition
and Analysis 158 The Company’s Position in the Banking Industry
160 Business Prospect 2018
160 Economical Prospect
160 The Company’s Housing Business Prospect and
One Million Houses Program
162 Business Development Strategies
166 Marketing Aspect
166 Marketing Strategy
169 Market Share
171 Operational Analysis
171 Operational Performance by Segments
171 Conventional
179 Sharia
182 Banking Services
185 Income Per Segment
187 Financial Analysis
187 Financial Position Statement
187 Assets
192 Liabilities
195 Equity
196 Statement of Profit or Loss and Other Comprehensive Income
200 Statement of Cash Flows
202 Solvency and Collectability of Receivables
206 Financial Ratios
208 Capital Structure and Implementation of Risk Management
208 Capital Structure
210 Risk Management Application
04
241 Contribution to the State
241 Tax Payment
241 Dividend Payment Policies and Chronology
Management Discussion 243 Commitments for Capital Expenditure
and Analysis 244 Capital Goods Investment
245 Share Ownership Program by Employee and/
or Management (MSOP/ESOP)
248 Commitment and Contingency
249 Use of Funds from Public Offerings
250 Impact of Changes in Interest Rate to Company Performance
250 Material Information After the Accounting Reporting Period
251 Material Information on Investment, Expansion, Divestment, Acquisitions,
or Restructuration of Debt and Capital
251 Financial Information Containing Extraordinary and Rare Events
252 Information on Material Transactions with Conflict of Interest and/or
Transactions with Affiliated or Related Parties
258 Legislation Amendments with Significant Impact
259 Amendment to Accountancy Policy
261 Comparison of Target, Realization, and Projection
264 KPI and Bank Soundness Level
266 Business Continuity Information
266 Business Continuity Assessment
266 Corporate Position
268 Human Resources Management
274 Information Technology Governance
05
283 Company’s Governance Statement
283 GCG Importance in Company
284 Objectives of GCG Principles Implementation
Corporate Governance 285 Company’s Governance Roadmap
287 Sustainable GCG Commitment
287 GCG Implementation Focus in 2017
288 Initiative in Sustainable Financial Application
289 GCG Application Quality Improvement Plans in 2018
290 Company’s GCG Assessment
296 ASEAN Corporate Governance Scorecard (ACGS)
299 Corporate Governance Structure, Mechanism, and Policies
301 General Meeting of Shareholders (GMS)
314 Board of Commissioners
322 Board of Directors
331 Working Procedures of the Board of Commissioners and Directors
332 Meetings of the Board of Commissioners and Board of Directors
345 Diversity Policy and Succession of the Board of Commissioners
and Directors

05
350 Affiliations Between Member of Board of Directors, Board of
Commissioners, and Major and/or Controlling Shareholders
355 The Company’s Remuneration Governance Implementation
Corporate Governance 362 Organs and Committees Reporting Directly to the Board of Commissioners
391 Committee Reporting Directly To The Directors
398 Sharia Business Unit Governance (UUS)
407 Corporate Secretary
414 Internal Control System
417 Internal Audit Function
427 Compliance Function
434 Risk Management Function
448 External Audit Function
452 Code of Conduct
455 Gratification Control
457 Whistleblowing System (WBS)
461 Legal Issues
462 Procurement of Goods and Services
466 Access To Information
467 Company Strategic Plans
472 Disclosure of Other Aspects
06
477 Introduction
479 CSR Kaleidoscope 2017
481 CSR Programs and Budget in 2017
Corporate Social 483 Responsibility to Products and Customers
Responsibility 489 Responsibility to Employment, Health, and Safety
493 Responsibility to the Environment
496 Responsibility to Social and Community Development
504
Audited Financial Statement
746 748 Reference to The Financial Services Authority Regulation and Annual
Report Award Criteria 2017
Apendix 764 Glossary
765 Recommendations Follow-Up from ARA 2016
766 Good Corporate Governance Practices in the Company
766 Bad Governance Practices in the Company
Company’s Important
Achievement 2017
NPL Nett
Released Housing
Loan for informal
1,66%
Sector Workers
and BTN Micro Loan Distribution
Housing Loan Rp 181Trilion
Income of
3,03 Trilion
Third-Party Fund
192,47
Trilion
Smart Branch
Office with
Modern and
Simple Look
Top Gainer at
Index LQ45,
BBTN Share
Price Increased BTN Shares
105,17% CSR Fund
Listed in the
MSCI Global
Disbursement
Standard Index
Rp 5.148 Billion

Subsidy Market Share
95,42%
The Asset Gold
Award for Corporate
Total Transaction of
Governance and
Indonesian Property
Investor Relations
Expo (IPEX)
Rp 8,36 Trilion
Gold Award for

Government, Risk and
Total Compliance Award pada
Sharia Financing ASEAN Risk Award
Rp 18 Trilion In cooperation with
SBM ITB, the Company
has graduated
770 through Housing
Finance Center (HFC)
Asset
One Million Houses 261,36
Program realization in Trilion
2017 reached Property Literacy
1.73 million Education Program
house units for 10,000 young
enterpreneur
BTN Agile Transformation Journey
The Company’s leadership in the field of housing finance competitive interest rates. Thus, the Company continuously
became more apparent when the Company was appointed improves customer service and the cost of funds to offer
as a financing bank in the One Million Houses Program in attractive interest rates.
2015. The Company has succeeded in disbursing 1.74 million
housing units, and the number exceeds the established target. To face these challenges, the Company anticipates it by
conducting three transformation stages. With these three
All of these achievements do not make the Company complacent. transformation stages, the Company is targetting to be the
Considering the increasingly fierce business competition, all leading bank in housing finance with global quality services.
commercial banks offer Housing Loan (KPR) products with
Transformation 1 Transformation 2 Transformation 3

Survival Period Global-Playership Period
Digital Banking Period
Aspiration
Transformational
Aspiration Enterprise-Global Mindset
Leading Housing Bank in Indonesia
with World Class Service
Strong
Transformation Leap Business
Triggered by One Million
Houses Program
International-operating
Infrastructures HR
Products and Services
One Million
Houses Program
2013 2015 2016 2019 2025 Year
Transformation Focus on the Digital Banking Phase
The focus of transformation is to strengthen business

dominance in the housing sector and to increase CASA.

STRONGER BUSINESS
Strengthening Establishing
Actively Involved as an
the housing sector Strong Customer Orientation
integrator & accelerator in the
business position and to aim and improve CASA-
residential business sector
construction value chain based funding
Maintaining the dominance of Increasing the BTN HFC The Market Target is Family,
the Housing Loan market at role as the main think tank Young Generation (Milennial
Mass segment (Subsidized & institution in Indonesia. Generation and Digital Savvy)
Non-Subsidized)
Targeting emerging affluent
Expanding loan to the Developing initiatives to and affluent segments,
emerging affluent & affluent. support the development which covers family and
of subsidized home young generation (milennial
Increasing Construction Loans developers. generation and digital savvy)
to support the houses supply by
targeting MSME, Commercial, Developing digital banking services
and Corporate segments. to strengthen bank image in the
upper middle segment.
To implement the transformation in the digital era and in harmony with business needs,
it must be implemented with “agility at scale” (Process Digitalization)
›› Identifying prioritized pilot

and establishing teams.
›› Implementing pilot based ›› Digitalization and
on the best practice. change management
1 2 3 4 5
Setting Strengthening
Refinement Improvement
Aspiration and Competence Digitalization
Transformation
and Pilot & Sustain
and Business
Strategy
Process
›› The Company aspiration to set ›› Strengthening the Transformation ›› Share best practice
startegy and adapt with the team (Leader and TMO) ›› Strengthening coaching
The Company’s diagnostic, and set ›› BPI and Performance Management and mentoring
the transformation framework. ›› Strengthening the capabilities
›› Encouraging transformation with
(Training, Role, Career Path)
Corporate Culture and adaptive to
›› GRC Implementation
the business changes.
2017 Digital Banking Projects
PPOB griyabayar.com
The Company PPOB Counters is a Electricity Token Purchase

PPOB business service that allows
people to open counter payment such The Company customers can
as Electricity/PLN, Phone, Speedy, purchase electricity token by using
Credit Card, Cable TV, Phone Credit, BTN e-channel such as ATM, BTN
Multifinance Loan, Train Ticket, BPJS Mobile Banking and BTN Internet
Health, etc. easily and cheap, but Banking every time and every where.
equipped with reliable technology
support and flexible and profitable
business system.
E-Panjar QR Pay via

Mobile Banking
The down payment fee is a down payment for filing a petition

or lawsuit to be processed in court. Such fees are generally
paid and manually administered for administrative and BTN Mobile banking is equipped with payment
operational costs related to the trial. system based on QR Code, both online and offline
safely and conveniently.
Receipt of Payment BTN Smart Branch

Motorcycle Tax
The evolution of the shift
Now, East Java Vehicles Tax Payment from conventional outlet to an
(PKB) can be paid via BTN e-channel outlet equipped with a variety
such as ATM, BTN Mobile Banking, of cutting-edge tools that will
BTN Internet Banking, and Btn EDC at assist customers in fulfilling
designated Samsat and BTN outlets. banking needs at the Company.

KPR Payment via

Indomart & Alfamart Project Merah Putih
Housing Loan Payment can be As a continuation of the cooperation of all Banks through Bank
conducted at Indomart and Alfamart Himpunan Negara (Himbara), the Company, together with other
throughout Indonesia. Hence, it Himbara Banks are committed to developing Himbara ATM features
facilitates the debtors. to achieve the desired efficiency level.
BTN Zone
Laku Pandai Smart Campus
The Company has developed branchless banking services In order to increase the community awareness to the
through the Laku Pandai program and is committed to presence of the Company, the Company took the initiative
expanding Laku Pandai network in order to reach out to to cooperate with the University to open BTN Zone,
Indonesia’s outer communities. equipped with various interesting facilities to attract
students to understand and use BTN products.
Smart City - E-Retribusi

SOEs Creative Home
The Company, as one of the SOEs has an initiative to
participate in the development and construction of
SOE Creative Houses (RKB) is a forum for SOEs districts/municipalities with various products and features
collaboration in establishing Digital Economy Ecosystem to assist the local government in managing the urban
through coaching for SMEs to improve the capacity and planning, for example through e-retribution.
capabilities of the SMEs themselves.
Company’s Key Events 2017
Image source: Company Documentation
Image source: Company Documentation February 9, 2017

The Company Focuses on Improving The Banking
January 16, 2017 Services in It’s 67th Anniversary
Optimistic in 2017, The Company Prioritizes Digital-
Based Business On February 9, 2017, the Company celebrated its 67th anniversary.
The Company focuses on the transformation to provide the best
In Corporate Work Plan and Budget 2017 established in the service for the customer and to accelerate the Company’s business
Company’s Working Meeting 2017, the Company prioritizes the performance. In terms of business, the Company improves the
digital-based business transformation to support its core business banking services by accelerating the transformation phase in the
in order to encourage the One Million Houses Program. Minister digital era, one of which by opening Smart Branch. the Company
of SOEs, Rini M. Soemarno also attended the Working Meeting. Smart Branch is equipped with various services to facilitate the
She also appreciated the Company’s performance in 2016 and customer’s needs in obtaining the banking information, conducting
assessed that the Company has a good performance in 2016 communication, registration, and opening accounts, as well as
compared to other SOEs. performing non-banking transactions.
March 30, 2017

People’s Representative Council Appreciates The
Company’s Performance
24 Februari 2017
The Company Released BTN Micro Housing Loan to The Commission XI of People’s Representative Council appreciated
Target Low-Income Community and Informal Workers the Company on the 2016 performance, which was in the above
average level of the industry. On the Public Hearing, Commission
Consistent in its role to support the One Million Houses Program XI of People’s Representative Council asked the Company’s
launched by the Government, the Company released BTN Micro management to maintain its performance while simultaneously
Housing Loan product. The new product shall answer the needs of improving it. The national economy needs banking industry support.
housing for Low-Income Community (MBR), specifically the informal Therefore, national bank especially State-Owned banks must be the
workers whose number is predicted to reach 6.5 million people. pioneer in achieving a positive business growth.

March 30, 2017

The Company and The School od Business Image source: Company Documentation
and Management ITB (SBM ITB) Have

Graduated 770 Candidates April 21, 2017
The President Inaugurates E-Retribution in Cooperation
The Company keeps improving the business growth in the property with the Solo Government at Klewer Market
sector by producing young entrepreneurs with competence in this
field. In cooperation with the School of Business and Management The Company expands the implementation of electronic retribution
Bandung Institute of Technology (SBM ITB), the Company has system or e-retribution at Klewer Market, after a success in Gede
produced 770 graduates in the program Mini MBA in Property. The Market. By replacing the retribution system from manual to
graduates of Mini MBA Program in Property are targeted to work electronic in the form of cards, it is expected the local revenue for
on the large potential of the property sector, and to support the One Surakarta Government shall be more efficient and accountable.
Million Houses Program. In addition, the e-retribution system is an effort in terms of
government mission to achieve Solo as Smart City in 2018.
May 2, 2017
Image source: Company Documentation The Company Recorded EPA-SP 03 at Rp1 Trilion
April 11, 2017 Succeeding in performing the asset securitization with the Asset-
SERBU BTN Succeeded in Gaining Small Funding Backed Securities Participation Contract (EBA-SP) scheme for two
years in a row, the Company registered EPA-SP 03 in Indonesian
The Company keeps growing the small funding position, supported Stock Exchange (BEI) for Rp1 trillion. The amount of EBA-SP
by the BTN Lottery Lucky Draw (Serbu BTN) The Company’s financial absorbed reached Rp1 trillion. In A Class, the A1 Series reached
data stated that up to February 2017, the small fund (current account Rp200 billion and A2 Series reached Rp713 billion. The B Class
and saving account/CASA) improved in the 20.1% level yoy (year- reached Rp76 billion. Asset securitization with EBA-SP scheme
on-year). The Company’s CASA improved from Rp60.24 trillion in keeps being improved to support the funding for One Million Houses
February 2016 to Rp72.36 trillion in February 2017. Program because this program requires substantial funding.
Image source: Company Documentation Image source: Company Documentation Image source: Company Documentation
May 3, 2017 May 4, 2017 June 13, 2017

GO-JEK SERBU BTN, Housing Loan Company Prepares Cheap The Company Launches Mobile
for GO-JEK Partners Houses for Workers to Support Application for Nadhatul Ulama
One Milion Houses Waqf Payment
The Company signed a Memorandum of
Understanding (MoU) with Go-Jek and The Company provides cheap houses for The Company strengthens its commitment
launched a BTN Self Subsidized Housing Low-Income Communities (MBR). On this to support the One Million Nahdliyin Waqf
Loan. The objective of this program is to occasion, the Company cooperated with Movement (Gerwaku Sena), pioneered by
realize the dream of Go-Jek drivers to own PT Arrayan Bekasi Development to provide Nadhatul Ulama (NU) by launching the mobile
a house and to appreciate their services in cheap houses for MBR. In the inauguration application to pay waqf. The application called
improving the welfare of their partners. attended by President Joko Widodo, the “Mobile Wakaf Uang NU BTN” facilitates the
The Program is conducted through the BTN MBR may own a house only by paying people who want to do waqf. By downloading
Payroll Savings as the account to process Rp1.12 million in down payment and the the application available at Google Store,
the Housing Loan. Informal sector workers installment is approximately Rp800,000 the customer can register directly on the
such as Go-Jek drivers are often considered per month. The housing project called Villa application, transfer waqf, both perpetual
not bankable, hence they have difficulty Kencana Cikarang is planned to be built on waqf and limited waqf.
in accessing banking products. Under the 105-hectare area in Bekasi.
program, Go-Jek drivers shall have access to
the Housing Loan products.
July 17, 2017

Bestselling BTN Continuous
Bond III Phase I
After finishing the initial offering period

and public offering on July 10, 2017, the BTN August 17, 2017
Continuous Bond III Phase I 2017 managed Company Held a Ceremony at Soekarno Landing Museum at Limboto Lake to
to collect Rp5 trillion from the capital Celebrate The Passion of The Unitary State of The Republic of Indonesian (NKRI)
market, in line with the target. As of today,
the Company has issued 22 Bonds and 1 The Company held a Ceremony at Soekarno Amphibian Aircraft Landing Museum in
Subordinated Bonds. The Continuous Bonds Gorontalo Regency, and provided 6 boats worth Rp100 million for the Gorontalo MSMEs.
III Phase I 2017 is the first over-subscribed The Company also provided two homestay rehabilitation units at Bahari Olele Tourism Village
bond. In the future, all proceeds from the which amounted to Rp100 million. To support the “BUMN Hadir untuk Negeri” Program, the
bonds emission will be utilized to fund the Company also has other social responsibilities to improve the welfare and independence of
prospective loan expansion, simultaneously the public. For example, the establishment of SOEs Creative Houses in numerous provinces
to support the One Million Houses Program. and Village Economic Hall (Balkondes) at Borobudur, Central Java.

Image source: Company Documentation Image source: Company Documentation Image source: Company Documentation
August 20, 2017 September 22, 2017 September 25, 2017

At IPEX, The Company Recorded The Company Officiated Jakarta BBTN Shares Will Be The Target
Rp8.36 Trillion Transaction Banten Regional Office with Loan of Investment for Local and
Growth Focus Up to Rp17.8 Trillion Foreign Investors
The Company successfully recorded a new
potential loan in the amount of Rp8.36 To catch the loan growth and third-party BBTN shares entered into the Morgan
trillion at the “Indonesia Properti Expo fund, the Company has implemented Stanley Capital International (MSCI) Global
(IPEX) 2017”. The achievement exceeds various management strategies for the Standard Index. MSCI has just rebalanced
the initial target which was Rp5 trillion. branch offices, such as regionalization its list of shares and it came into effect
This achievement reflects the high demand of Jakarta Banten Regional Office which on November 30, 2017. This was not
for good housing, both as the place for was a part of Jakarta I Regional Office. easily achieved, considering there are less
living and for investment. The President Through regionalization, the Company is than 100 Issuers in the Indonesian Stock
of the Republic of Indonesia, Joko Widodo more efficient, coordinated, and controlled Exchange in the list of MSCI Global Standard
attended the exhibition closing. In the because it facilitates the logistics, accelerate Index. Hence, the BBTN shares shall be the
exhibition, the Company seeks to work on the decision-making, and focuses on tactical investor’s target, both in short-term and
the potential by providing various easiness strategic development in line with the long-term.
and facilities for the public who wants to business potential in the area.
own housing, both in terms of interest
promotion and other attractive gimmicks.
October 20, 2017

The Company Launched Siap!
Savings to Target Milennials Image source: Company Documentation
In the 2017 last quarter, the Company October 28, 2017

aggressively gives more appreciation to University of North Sumatera (USU) College Students Welcome the SOE
the customers. The background for Siap! Programs on Campus
Savings launching was the needs of the
public to save routinely in order to realize USU College Students welcomed the SOE Programs on Campus with open arms. The program
their needs, complete with health, accident, is initiated by Ministry of SOEs. The speakers were the Company’s President Director Maryono,
and life protection so the planned fund will Expert Staff of Minister of SOEs, Salaha Lumban Gaol, and President Director of Krakatau Steel
be realized in the future. Siap! Savings has Mas, Wigrantoro. The program’s objective is to convey the development of national economy
1 to 15 years’ period, and equipped with today and to encourage the students to involve themselves in the economic growth. The
insurance feature. Company is proud to be in the midst of USU students to improve their passion to better Indonesia.
Image source: Company Documentation Image source: Company Documentation
Magelang, November 11-12, 2017 November 13, 2017

BTN Tour de Borobudur XVII Company’s MOU with Dongbu Savings Bank
The Company held a sports tourism event titled ‘BTN Tour de The Company’s President Director and the President of World
Borobudur XVII’ attended by more than 6,000 participants, including Savings Bank Institute (WSBI) Asia Pacific Region, and Vice Chairman
the Governor of Central Java, Ganjar Pranowo. The Company & CEO of Dongbu Savings Bank signed the MoU related to global
also participated to conserve the environment and encourage partnership strengthening. Through this partnership, the Company
the economy of Central Java. For every 1 kilometer traveled by and the South Korea bank shall analyze the business partnership
participants, the Company will donate funds in the amount of Rp opportunities to develop the financial market in both countries.
1,000 for the Central Java Government. In addition to social support, These two countries who are members of WSBI, are also planning
the Company also contributes to the environment by spreading to hold employee exchange training to transfer knowledge and share
10,000 fish and planting 1,000 fruit tree seedlings in the Jatibarang the work experience.
Reservoir area, which is one of the tourism objects in Semarang.
December 12, 2017

Realizing Houses for The Public for 41 Years, The
Company has Disbursed More Than Rp230.2 Trilion
Housing Loan
On December 10, 2017, the Company celebrated its 41st Anniversary

of Housing Loan (KPR) by holding a “Parade KPR” event. The Company
keeps innovating by opening Housing Loan Plaza and Housing Loan
Hotline to facilitate the customer in finding their choice of Housing
Loan. As a Bank with focus on Housing Loan, the Company not only
provides affordable Housing Loan interest, but also facilitates the
public with various Housing Loan products to meet the housing needs
for everyone, both for the low-income communities and the upper
middle class.

Testimoni
Joko Widodo
President of the Republic of Indonesia
Providing home for the people through One Million Houses Program
is a government commitment. The effectiveness of this program is
inseparable from the support of the Company. The Company, Friends
of Indonesian Family
Source: President Secretariat Bureau of the Republic of Indonesia
M. Jusuf Kalla
The Vice President of the Republic of Indonesia
Bank Tabungan Negara has a very important position because this great
nation has 260 million inhabitants, and we need a bank that specializes in
housing finance. With an enormous needs, the One Million Houses Program
can reduce the backlog and the Company has been functioning really well.
Source: Company Documentation
Rini M. Soemarno
Minister of SOE of the Republic of Indonesia
The Company is the only mortgage bank in Indonesia. Which means,

if we want the Indonesian people to own a house, they should get
financing for the house. That is BTN’s function.
Sri Mulyani Indrawati

Minister of Finance of the Republic of Indonesia
We do realize that there are many people who need affordable housing
financing. Therefore, I am grateful to the Ministry of SOEs, one of
which is the Company as one of the State-Owned Bank that disbursed
subsidized housing loan.
Source: https://www.merdeka.com/uang/pemerintah-sediakan-rumah-
murah-bagi-karyawan-masjid-istiqlal.html
Basuki Hadimuljono
Minister of Public Works and Public Housing of Indonesia
I am proud of the The Company’s work so far that provides a home for
the Indonesian people, through both subsidized and non-subsidized
mortgages. The growth of housing needs for the people continues to
increase and so far it can be provided mostly by the Company.
Photo Source: Company Documentation
Company Performance 2017
01
01 Company
Performance 2017
23 Important Financial Data Highlights

29 Information for Shareholders and Investors
32 Company Share Performance
35 Company Share Highlights
37 Information on Bonds, Sukuk, or Convertible Bonds
in the last 2 (two) Years

Important Financial Data Highlights
2013 2014 2015 2016 2017

Financial Position (Rp Milion)
Earning Assets 128,161,082 141,561,595 168,035,035 206,477,677 237,786,483
Loans 92,386,308 106,271,277 127,732,158 150,221,960 181,002,783
Sharia Financing/Receivables 8,081,083 9,644,524 11,223,646 14,224,421 17,987,798
Placements with Bank Indonesia and Other Banks 4,839,318 1,496,455 7,839,477 17,581,350 24,697,503
Securities 4,210,440 5,446,372 1,819,562 4,186,141 7,720,954
Government Bonds 8,384,960 8,238,065 8,230,908 9,243,639 8,183,973
Total Assets 131,169,730 144,582,353 171,807,592 214,168,479 261,365,267
Deposits from Customer 96,207,622 106,470,677 127,708,670 147,787,618 177,091,421
Demand Deposit 19,116,196 23,422,618 31,368,443 42,643,680 50,019,826
Savings 24,237,893 26,167,914 30,757,681 32,776,835 38,217,936
Time Deposit 52,853,533 56,880,145 65,582,546 69,536,953 85,481,932
Deposits from Other Banks 275,257 1,179,269 1,721,198 3,643,889 5,063,433
Securities Sold Under Agreement to Repurchase 2,652,730 3,817,603 2,135,091 1,385,000 1,385,000
Securities Issued 8,836,711 8,519,884 12,492,202 14,919,910 20,480,459
Fund Borrowings 7,073,032 6,998,213 7,726,728 4,999,616 7,991,053
Total Liabilities 119,576,373 132,329,458 157,947,485 182,828,998 223,937,463
Total Syirkah Temporary Funds - - - 12,208,945 15,764,370
Total Equity 11,593,357 12,252,895 13,860,107 19,130,536 21,663,434
Profit Loss (Milion Rp)
Interest Revenue and Net Split 10,782,877 12,807,328 14,966,209 17,138,819 19,271,582
Interest Expense and Bonus (5,129,554) (7,342,747) (8,155,133) (8,975,274) (9,930,642)
Interest Income and Profit Sharing - Net 5,653,323 5,464,581 6,811,076 8,163,545 9,340,940
Other Operating Income 763,983 894,82 1,106,526 1,282,822 1,605,931
Provision for Impairment Losses on Financial and Non-

Financial Assets (430,289) (771,166) (901,008) (707,531) (884,401)
Reversed Estimated Allowance (Expense) on Impairment of

Commitment and Contingencies (2,066) (729) 7,198 - -
Other Operational Expenses (3,849,042) (4,010,139) (4,490,187) (5,386,604) (6,170,567)
Income from Operations 2,135,909 1,577,367 2,533,605 3,352,232 3,891,903
Non-Operational Income - Net 4,862 1,96 8,281 (22,148) (30,348)
Profit before Tax Expense 2,140,771 1,579,327 2,541,886 3,330,084 3,861,555
Note
1. The Company has no investment in the associates.
2. The Company has no subsidiaries so that other comprehensive profits and income
are not grouped into the mainland entity and to non-controlling interests.
2013 2014 2015 2016 2017

Profit Loss (Milion Rp)
Tax Expenses (578,610) (433,755) (690,979) (711,179) (834,089)
Income for the Year 1,562,161 1,145,572 1,850,907 2,618,905 3,027,466
Income for the year Attributable to:
Owners - 1,145,572 1,850,907 2,618,905 3,027,466
Non-controlling Interests - - - - -
Total comprehensive income for the year - after tax 1,443,057 1,120,716 1,811,337 5,631,617 3,056,679
Income for the year Attributable to:
Owners - 1,120,716 1,811,337 5,631,617 3,056,679
Non-controlling Interests - - - - -
Earnings per Share (Full Amount) 148 108 175 247 286
Financial Ratios (%)
Capital Adequacy Ratio (CAR) 15.62 14.64 16.97 20.34 18.87
Non Performing Loan (NPL) Gross 4.05 4.01 3.42 2.84 2.66
Non Performing Loan (NPL) Netto 3.04 2.76 2.11 1.85 1.66
Return On Asset (ROA) 1.79 1.14 1.61 1.76 1.71
Return On Equity (ROE) 16.05 10.95 16.84 18.35 18.11
Net Interest Margin (NIM) 5.44 4.47 4.87 4.98 4.76
Operating Expenses to Operating Revenues (BOPO) 82.19 88.97 84.83 82.48 82.06
Loan to Deposit Ratio (LDR) 104.42 108.86 108.78 102.66 103.13
Compliance (%)
BMPK Violation Percentage
Related Parties 0.00 0.00 0.00 0.00 0.00
Non Related Parties 0.00 0.00 0.00 0.00 0.00
BMPK Exceedance Percentage
Related Parties 0.00 0.00 0.00 0.00 0.00
Non Related Parties 0.00 0.00 0.00 0.00 0.00
Minimum Statutory Reserve (GWM)
Primary Statutory Reserve (Rupiah)
Conventional 9.29 8.09 7.95 6.72 7.02
Sharia 8.10 5.09 5.04 5.08 5.00
Statutory Reserve (Foreign Currency) 8.03 8.39 8.08 8.47 8.38
Net Open Position 1.01 1.92 1.74 0.29 1.29
Note
1. The Company has no investment in the associates.
2. The Company has no subsidiaries so that other comprehensive profits and income
are not grouped into the mainland entity and to non-controlling interests.

Total Assets
261,365,267
Total Assets increased by
214,168,479
22.04%
171,807,592
144,582,353 to
131,169,730
Rp261.365.267 milion
in 2017
2013 2014 2015 2016 2017
Total Liabilities
223,937,463
Total Liabilities increased by
182,828,998
157,947,485 22,48%
132,329,458 to
119,576,373
in 2017
2013 2014 2015 2016 2017
Total Equity
21,663,434
19,130,536
Total Equity increased by
12,252,895
13,860,107 13,24%
11,593,357
to
Rp21.663.434 milion
in 2017
2013 2014 2015 2016 2017
Interest Revenue and Net Split
19,271,582
17,138,819
14,966,209
Total of Interest Income and
12,807,328
10,782,877 Profit Sharing increased by
12,44%
to
Rp19.271.582 milion
in 2017
2013 2014 2015 2016 2017
Interest Expense and Bonus
2013 2014 2015 2016 2017

increased by
10,64%
(5,129,554)
to
Rp9.930.642 milion
(7,342,747)
(8,155,133) in 2017
(8,975,274)
(9,930,642)
Income from Operations
3,891,903
3,352,232 Income from Operations increased by
2,533,605 16,10%
2,135,909
to
1,577,367
Rp3.891.903 milion
in 2017
2013 2014 2015 2016 2017
Total comprehensive income for the year - after tax
5,631,617
Total comprehensive income for the

year - after tax increased by
3,056,679
45,72%
1,811,337 to
1,443,057
1,120,716
Rp3.056.679 milion
in 2017
2013 2014 2015 2016 2017

Capital Adequacy Ratio (CAR)
20.34
18.87
16.97 CAR decreased by
15.62
14.64
7,23%
to
18,87% milion
in 2017
2013 2014 2015 2016 2017
Non Performing Loan (NPL) Netto
3.04
2.76
2.11 Non Performing Loan (NPL) Netto

1.85
1.66 decreased by
10,27%
to
1,66%
in 2017
2013 2014 2015 2016 2017
Return On Asset (ROA)
1.79 1.76 1.71

1.61
1.14
Return On Asset (ROA) decreased by
2,84%
to
1,71%
in 2017
2013 2014 2015 2016 2017
Return On Equity (ROE)
16.05 18.35 18.11

16.84
10.95
Return On Equity (ROE) decreased by
1,31%
to
18,11%
in 2017
2013 2014 2015 2016 2017
Net Interest Margin (NIM)
5.44
4.87 4.98 4.76
4.47
NIM decreased by
4,42%
to
4,76%
in 2017
2013 2014 2015 2016 2017
Operating Expenses to Operating Revenues (BOPO)
88.97
Operating Expenses to Operating

84.83 Revenues (BOPO) decreased by
82.19
82.48
82.06
0,51%
to
82,06%
in 2017
2013 2014 2015 2016 2017
Loan to Deposit Ratio (LDR)
108.86 108.78
LDR increased by
0,44%
104.42
103.13 to
102.66
103.13%
in 2017
2013 2014 2015 2016 2017

Operational Performance Highlights
2013 2014 2015 2016 2017

Operational Performance (Rp Milion)
Consumer Banking
Consumer Loan Distribution 23,843,281 23,684,924 30,399,375 34,804,253 44,187,731
Consumer Savings 32,036,582 34,811,565 38,618,436 44,389,209 52,743,237
Consumer Banking
Commercial Loan Distribution 15,971,269 13,807,906 16,565,305 18,521,043 23,298,077
Commercial Savings 57,578,465 62,911,655 77985698 100,568,259 122,011,519
Sharia Business Unit
Sharia Financing 4,478,410 4,105,302 4,281,522 5,960,741 7,489,093
Sharia Savings 6,592,577 8,747,457 11104536 15,030,249 18,754,099
Fee Based Income 772,422 724,590 1,124,189 1,294,649 1,630,415
Other Operations
Branch Offices 65 65 65 65 75
ATM 1,504 1,830 1,830 1,830 1,964
Total Employees 8,011 8,582 9,042 9,380 10,245
Composite 3 Composite 2 Composite 2 Composite 2 Composite 2

GCG Score “QUIET HEALTHY” “HEALTHY” “HEALTHY” “HEALTHY” “HEALTHY”
Consumer Loan Distribution

44,187,731
34,804,253
30,399,375
Consumer Loan Distribution increased by
23,843,281 23,684,924
27,06%
to
Rp44.187.731 milion
in 2017di tahun 2017
2013 2014 2015 2016 2017
Consumer Savings
52,743,237
Consumer Savings increased by
38,618,436
44,389,209
18,86%
34,811,565
32,036,582 to
Rp52.762.232 milion
in 2017
2013 2014 2015 2016 2017
Commercial Loan Distribution

23,298,077
18,521,043
15,971,269 16,565,305 Commercial Loan Distribution
13,807,906 increased by
25,79%
to
Rp23.298.077 milion
in 2017
2013 2014 2015 2016 2017
Commercial Savings
122,011,519
100,568,259
Commercial Savings increased by
77,985,698
62,911,655 21,32%
57,578,465
to
in 2017
2013 2014 2015 2016 2017
Sharia Financing
7,489,093
5,960,741
Sharia Financing increased by
4,478,410
4,105,302 4,281,522 25,64%
to
Rp7.489.093 milion
in 2017
2013 2014 2015 2016 2017
Sharia Savings
18,754,099
15,030,249 Sharia Savings increased by
11104536
24,78%
8,747,457 to
6,592,577 Rp18.754.100 milion
in 2017
2013 2014 2015 2016 2017

Fee Based Income
1,630,415
1,294,649 Fee Based Income increased by

1,124,189
25,93%
772,422 724,590 to
Rp1.630.415 milion
in 2017
2013 2014 2015 2016 2017
ATM
1,964
1,830 1,830 1,830
1,504
ATM increased by
1.964 unit
in 2017
2013 2014 2015 2016 2017
Total Employees
10,245
9,042 9,380
8,011 8,582
Total Employees increased by
10.360 employees
in 2017
2013 2014 2015 2016 2017
GCG Score
Composite 2 Composite 2 Composite 2 Composite 2 GCG Score 2017 is

“HEALTHY” “HEALTHY” “HEALTHY” “HEALTHY”
Composite 2 “HEALTHY”
Composite 3
“QUIET HEALTHY”
2013 2014 2015 2016 2017
Information for Shareholders

and Investors
The Company’s solid financial fundamentals and effective communications

to the capital market community have resulted in the Company’s share
price increase of 105.17% (yoy) during 2017.
The Indonesia Stock Market performance in 2017 has faced in several countries. Several sentiments that affected the
many challenges. In terms of domestic, there are numerous performance of the stock index during 2017 includes a 25bps
risks that may affect the fluctuation of the Indonesian Capital Fed Fund Rate increase in December 2017, improved growth
Market, i.e. continued corporate consolidation and limited in Gross Domestic Product of the United States and China, and
banking intermediation. In terms of global economic, the quite solid European economic recovery.
sentiments cover the normalization of monetary policy in
some developed countries as well as rising geopolitical risks to Despite the geopolitical risks of 2017, in line with the
watch out for. But the Indonesia Composite Index (IHSG) has economic recovery in some countries, the global stock index
had a positive yearly increase. This played a role in supporting recorded positive results including the Indonesia Composite
the Company’s stock price increase, which has also shown a Index (IHSG), which closed at the highest level in the history
positive/increased trend. This increase in stock value reflects of Indonesia Stock Exchange (BEI) trading, at the level of
the higher level of trust from the Investor to the Company. 6,355.65 or growing by 19.99% (yoy). The annual IHSG positive
rate is supported by several positive sentiments during 2017,
Company’s Stock Market Condition and including the BI 7-day Reverse Repo Rate cut at 50 bps and
Stock Performance the upward movement of Indonesia’s outlook from stable to
In 2017, several global events had created sentiments in the positive by Moody’s international rating agency.
market which had affected the performance of stock index
No Country Indemnity December 31, 2016 December 31, 2017 YoY Performance
1 India NSE Nifty Bank Index 18.177,20 25.539,45 40,50%
2 Hong Kong Hong Kong Hang Seng Index 22.000,56 29.919,15 35,99%
3 United States of NASDAQ Composite Index 5.383,12 6.903,39 28,24%

America
4 Philippines Philippines Stock Exchange PSEi Index 6.840,64 8.558,42 25,11%
5 United States of Dow Jones Industrial Average - DJI 19.762,60 24.719,22 25,08%
America
6 South Korea Korea Stock Exchange KOSPI Index 2.026,46 2.467,49 21,76%
7 Indonesia Jakarta Stock Exchange Composite Index 5.296,71 6.355,65 19,99%
8 United States of S&P 500 Index 2.238,83 2.673,61 19,42%

America
9 Japan Nikkei 225 19.114,37 22.764,94 19,10%

No Country Indemnity December 31, 2016 December 31, 2017 YoY Performance
10 Singapore Straits Times Index STI 2.880,76 3.402,92 18,13%
11 Thailand Stock Exchange of Thailand SET Index 1.542,94 1.753,71 13,66%
12 Malaysia FTSE Bursa Malaysia KLCI Index - 1.641,73 1.796,81 9,45%

Kuala Lumpur Composite Index
13 Australia Australian Stock Exchange All Ordinaries Index 5.719,10 6.167,29 7,84%
14 England FTSE 100 Index 7.142,83 7.687,77 7,63%
15 China Shanghai Stock Exchange Composite Index 3.103,64 3.307,17 6,56%
Company Share Performance
IHSG BBTN
6.500 4.100
3.600
6.000
December 31, 2017
Rp3.570
3.100
6.000
105.17%
2.600
5.000
2.100
December 31, 2016

Rp1.740
4.500
1.600
4.000 1.100
Dec ‘16
Jan ‘17
Feb ‘17
Mar ‘17
Apr ‘17
May ‘17
Jun ‘17
Jul ‘17
Agt ‘17
Sep ‘17
Oct ‘17
Nov ‘17
Dec ‘17
The Company’s shares managed to record good performance

in 2017 with the achievement indicators as follow:
Indicator 2017 2016
Closing Price (Rp) 3.570 1.740
Lowest Price (Rp) 1.695 1.280
Highest Price (Rp) 3.610 2.100
Average Daily Trading Volume (Stock Lot) 209.739 202.509
PE (x) 12,49 7,04
PBV (x) 1,75 0,96
Market Capitalization (Rp million) 37.806.300 18.426.600
Per December 31, 2017, the BBTN share price is closed at Because of the significant increase in stock prices, the Company
Rp3,570 per share, an increase of 105.17% (yoy) from the is listed as the top 3 (three) shares with the highest growth
closing price at the same period in 2016, which was Rp1,740 in LQ45 index in 2017. The Company also broke the Morgan
per share. In line with the significant increase in stock prices, Stanley Capital International (MSCI) Global Standard Index
market capitalization recorded a proportionate increase and The Financial Times Stock Exchange (FTSE) Index Value-
following the percentage increase in closing stock price with Stocks ASEAN Index, which reflects the investor confidence,
the position as of December 31, 2017, at Rp37,81 Trillion. especially foreign investors. The Company also received the
The average daily trading volume during 2017 period also Gold Award in the category of “Corporate Governance and
increased, from 202,509 lots of shares in 2016 period, to Investor Relations” from The Asset Publishing and Research
209,739 lot shares. Limited, Hong Kong in 2017.
The increase in the share price is driven by strong Company The Company’s Price to Book Value (PBV) per December 31,
fundamentals and satisfactory financial performance in 2017, 2017, is recorded at 1.75x, increased significantly compared
which ranked above the market expectation and analysts’ to the same period in the previous year, which was at 0.96x.
consensus. Amidst the limited performance of the national The Company’s Price to Earning (PE) per December 31, 2017,
banking sector, the Company recorded improved performance, is recorded at 12.49x, increased compared to the same period
such as loans and financing growth of 21.01%, increased third- in the previous year, which was at 7.04x.
party funds by 20.45%, and net profit growth of 15.60% in
2017. The asset quality is also reflected in the Non-Performing Due to the above-mentioned performance, BBTN was included
Loan (NPL) ratio, which improved from 2.84% to 2.66%. in the calculation components in the following renowned
Stock Index:
Indemnity Period
The Financial Times Stock Exchange (FTSE) Value-Stocks ASEAN Index October 2017 - April 2018
Morgan Stanley Capital International (MSCI) Global Standard Index November 2017 - May 2018
Investor33 June - November 2017
LQ45 August 2017 - January 2018
Kompas100 August 2017 - January 2018
IDX Small-Mid Cap (IDX SMC) Composite December 2017 - January 2018
IDX Small-Mid Cap (IDX SMC) Liquid December 2017 - January 2018
BISNIS27 November 2017 - April 2018
MNC36 November 2017 - April 2018
PEFINDO i-Grade December 2017 - May 2018
Infobank15 January - June 2018

Company Share Highlights
Price, Volume, and Capitalization of Company’s Shares 2016-2017
The quarterly overview of the Company shares are as follows:
Average Daily Market

Number of Shares Trading Volume Capitalization
Period Outstanding (share) Closing Price (Rp) Lowest Price (Rp) Highest Price (Rp) (share Lot) (Rp million)
TW I 10.590.000.000 1.745 1.280 1.865 276.471 18.479.550
TW II 10.590.000.000 1.715 1.560 1.885 171.332 18.161.850

2016
TW III 10.590.000.000 1.920 1.690 2.100 225.578 20.332.800
TW IV 10.590.000.000 1.740 1.590 1.995 140.466 18.426.600
TW I 10.590.000.000 2.270 1.695 2.360 211.178 24.039.300
TW II 10.590.000.000 2.600 2.140 2.710 133.321 27.534.000

2017
TW III 10.590.000.000 3.150 2.320 3.340 160.448 33.358.500
TW IV 10.590.000.000 3.570 2.690 3.610 321.682 37.806.300
Share Highlights Quarterly

321,682
276,471 3,570
Average Daily Trading

Volume (share lot) 225,578 211,178 3,150
Closing Pricen (Rp) 171,332 2,600 160,448

140,466
133,321
2,270
1,920
1,745 1,715 1,740
QI Q II Q III Q IV QI Q II Q III Q IV
2016 2017
Initial Public Offering (IPO) Listing Corporate Act (Limited Public

The Company listed its shares on the Indonesia Stock Offering I - Rights Issue)
Exchange on December 17, 2009, by offering 2,360,057,000 In 2012, the Company made a Limited Public Offering I (LPO I)
Class B common shares or 27.08% of its authorized capital to the Company’s shareholders in relation to the issuance of
with a par value of Rp800 per share. The IPO also received Preemptive Rights (HMETD) or Rights Issue with the purpose
a very good response from the public, indicated by the of strengthening the Company’s capital structure, as well as
2.04 times oversubscription with a total proceed of Rp1.88 increasing the number of floating shares. This will increase the
trillion. The Company was awarded as “The Best IPO in BBTN’s market capitalization and share liquidity in the capital
Indonesia 2009” from The Asset magazine and “Mid Cap/ market as well as to encourage loan growth, hence increasing
IPO Deal of the Year in Southeast Asia 2009” from Alpha investors’ interest to invest more in BBTN shares.
South Asia Publisher (Hong Kong).
The summary of the Company’s Rights Issue transaction is:
Type of Offer HMETD
Number of Shares Offered 1,512,857,500 Class B Common Shares
Nominal Value Rp500 (five hundred rupiahs)
Implementation Price Rp1,235 (one thousand two hundred and thirty-five rupiahs)
Rp1,868,379,012,500 (one trillion eight hundred sixty-eight billion three hundred

Total Amount (Proceeds) Received
seventy million twelve thousand and five hundred rupiahs);
555,000 (five hundred and fifty-five thousand) Old Shares are entitled to 94,943
Conversion Ratio
(ninety-four thousand nine hundred and forty-three) HMETD
14.61% (fourteen point six one percent) prior to the implementation of MESOP
Ownership Dilution
and 16.49% (sixteen point four nine percent) after the implementation of MESOP
HMETD Trading Period November 23-29, 2012
HMETD Implementation Period November 23-29, 2012
Securities Listing Date at Stock Exchange November 23, 2012
Listing Indonesian Stock Exchange
Standby Purchasers PT Bahana Securities, PT Danareksa Sekuritas dan PT Mandiri Sekuritas
Management and/or Employee Stock

Ownership Program
The Management and Employee Stock Ownership Program
through the Management and Employee Stock Allocation
(MESA) and Management and Employee Stock Option Plan
(MESOP) in relation with the IPO will be described in the Good
Corporate Governance Section and Analysis and Management
Discussion on this Annual Report.

Information on Outstanding Bonds,

Sukuk, or Convertible Bonds of The
Last 2 (Two) Fiscal Years
Bonds
Nominal Period Matured/Not

Bonds (Rp Million) Issuance Date Maturity Date (Year) Coupon Rating *) Matured Exchange
BTN Bonds XIV 2010 1.650.000 June 11, 2010 June 11, 2020 10 10,250% idAA+ No
BTN Bonds XV 2011 1.300.000 June 28, 2011 June 28, 2021 10 9,500% idAA+ No
BTN Continuous Bonds I 2.000.000 June 5, 2012 June 5, 2022 10 7,900% idAA+ No
Phase I 2012
BTN Continuous Bonds I 2.000.000 March 27, March 27, 10 7,900% idAA+ No
Phase II 2013 2013 2023
BTN Continuous Bonds II 900.000 July 8, 2015 July 8, 2018 3 9,625% idAA+ No
Phase I 2015 Series A
Phase I 2015 Series B
Phase I 2015 Series C Indonesian
Stock
BTN Continuous Bonds II 800.000 July 8, 2015 July 8, 2025 10 10,500% idAA+ No Exchange
Phase I 2015 Series D
BTN Continuous Bonds III 1.347.000 August 30, August 30, 3 8,200% idAA+ No
Phase I 2017 Series A 2016 2019
BTN Continuous Bonds II 1.653.000 August 30, August 30, 5 8,750% idAA+ No
Phase II 2016 Series B 2016 2021
BTN Continuous Bonds III 1,466,000 July 13, 2017 July 13, 2020 3 8,300% idAA+ No
BTN Continuous Bonds III 853,000 July 13, 2017 July 13, 2024 7 8,700% idAA+ No
Phase I 2017 Series C
Total 17.950.000
*) Rating by PT Pefindo (March 8, 2017 - March 1, 2018)
Bonds Issued by the Company
Name of Bonds Nominal Amount Term Maturity Date Interest
BTN Bonds I 50.000 5 years July 25, 1994 *) 18,75% fixed
BTN Bonds II 50.000 5 years June 1, 1995 *) 16,25% fixed
BTN Bonds III 50.000 5 years November 11, 1996 *) 20,00% fixed
BTN Bonds IV 100.000 5 years January 23, 1996 *) 17,00% fixed
BTN Bonds V 150.000 5 years July 31, 1998 *) 15.25% fixed for the first and second years, floating for
remaining years until maturity
BTN Bonds VI 350.000 5 years December 21, 2000 *) 17.25% fixed for the first year, floating for remaining
years until maturity
BTN Bonds VII 200.000 5 years July 22, 2001 *) 17.125% fixed for the first year, floating for remaining
years until maturity
BTN Bonds VIII 400.000 5 years July 18, 2002 *) 14,15% fixed
BTN Bonds IX 750.000 5 years October 2, 2008 *) 12,50% fixed
BTN Bonds X 750.000 5 years May 25, 2009 *) 12,20% fixed
BTN Bonds XI 750.000 5 years July 6, 2010 *) 12,00% fixed
BTN Bonds XII 1.000.000 10 years September 19, 2016 12,75% fixed
BTN Bonds XIII A 300.000 3 years May 29, 2012 *) 11,75% fixed
BTN Bonds XIII B 300.000 4 years May 29, 2013 *) 12,00% fixed
BTN Bonds XIII C 900.000 5 years May 29, 2014 *) 12,25% fixed
BTN Bonds XIV 1.650.000 10 years June 11, 2020 10,25% fixed
BTN Bonds XV 1.300.000 10 years June 28, 2021 9,50% fixed
BTN Continuous Bonds I 2.000.000 10 years June 5, 2022 7,90% fixed

Phase I
BTN Continuous Bonds I 2.000.000 10 years March 27, 2023 7,90% fixed
Phase II
BTN Continuous Bonds II 900.000 3 years July 8, 2018 9,625% fixed

Phase I Series A

Phase I Series B


Phase I Series C

Phase I Series D
BTN Continuous Bonds II 1.347.000 3 years August 30, 2019 8,20% fixed
Phase II Series A
BTN Continuous Bonds II 1.653.000 5 years August 30, 2021 8,75% fixed
Phase II Series B
BTN Continuous Bonds III 1.466.000 3 years July 13, 2020 8,30% fixed
Phase I Series A
Phase I Series B
BTN Continuous Bonds III 853.000 7 years July 13, 2024 8,70% fixed
Phase I Series C
Phase I Series D
Obligasi Subordinasi BTN 250.000 10 years May 25, 2014 **) 12.60% fixed for first year until fifth year, 22.60% fixed
for sixth year until tenth year if the Bank does not
exercise its option to buyback on the fifth year since
the issuance date
*) The Bank has made the repayment of bonds issued on maturity date
**) The Bank has exercised the buy back options on May 25, 2009
Information on sukuk or convertible

bonds of the last 2 (two) fiscal years
In 2017, the Company has not issued any sukuk or convertible
bonds which are still outstanding in the last 2 (two) fiscal years.
Reports of The Board of

Commisioners and Directors
02
02 Reports of The Board of

Commisioners and Directors
43 Report of the Board of Commissioners

47 Report of the Board of Directors
60 Accountability of Annual Report 2017

Report of the Board of Commissioners
Management is able to contribute

a good performance. The Board
of Commissioners appreciate the
achievement of the Directors’
performance during 2017 is very good
and satisfactory.
I Wayan Agus Mertayasa

President Commissioner
Distinguished Shareholders, Representatives of

Shareholders, and Stakeholders,
With the highest gratitude, we pray to the presence of God 15.60% compared to last year and Capital Adequacy Ratio of
Almighty who has bestowed His mercy and grace on us all, so 18.87% exceeded the minimum capital adequacy requirement.
that the Company went through the year 2017 with excellent
performance. It is an honor for me to represent the Board of This financial performance has lifted the company’s image
Commissioners in presenting the supervisory report on the and stakeholder and stakeholder confidence as reflected in
Company’s performance for the Fiscal Year 2017. the increase of BBTN’s share price of105.17% YoY to Rp3,570,
resulting in an increase in the market cap of 105.17% YoY, to
The Board of Commissioners has performed the task of Rp37.81 Trillion.
supervising and advising the Board of Directors with good faith
and high sense of responsibility and prudence in the interest The above performance also includes the performance of
of the Company. In performing its duties and functions, Board the Sharia Business Unit (UUS), whose development is very
of Commissioners is performing them independently, in encouraging, in which the total Third-Party Funds collected by
accordance with the provisions of the Company’s Articles of UUS Company increased by 24.78% to Rp18.75 trillion compared
Association and applicable laws and regulations, as well as on to 2016 of Rp15.03 trillion. UUS financing increased by 26.46%
the basis of good corporate governance principles. The focus while Sharia NPF decreased to 0.95% from 1.01%.
of supervision and advice by the Board of Commissioners
in 2017 includes the planning and implementation of the The performance is supported by the implementation of
Bank’s Business Plan (RBB); the planning and implementation additional office network infrastructure and Information
of Corporate Work and Budget Plan (CBP); Follow-Up on the Technology capabilities; the improvements in product
General Meeting of Shareholders (GMS) Resolutions; the diversification and business process; the increased internal
application of Good Corporate Governance, Internal Control control; and good practices in risk management.
System Effectiveness, and Corporate Culture, as well as
applicable laws and regulations which we may report as follows: Regarding these achievements, the Board of Commissioners
expresses high appreciation and recognition to the Board of
Macro Economy Condition Directors and all levels of management and employees for their
The 2017 global economy grew 3.7% higher than the previous dedication and commitment to the Company.
year at 3.2%. The increase is supported by the growth of
developed and developing economies, such as United States, Good Corporate Governance Implementation
Europe, China, and India. The growth in these countries has The Board of Commissioners considers that the Company has
boosted price and volume of Indonesia’s flagship export committed to implementing GCG consistently and sustainably
commodities so that Indonesia’s 5.07 percent (YoY) economic and making GCG principles its operational basis. The Company
growth in 2017 was higher than the 2016 figure of 5.03 focuses on strengthening good governance system and
percent. Indonesia’s economic growth also boosted the rise foundation primarily in relation to the application of financial
in Indonesian banking industry which in 2017 grew 9.77%. conglomeration in order to realize an excellent and highly
competitive governance. The GCG implementation in 2017 is
Assessment of Directors’ Performance 2017 in line with the Company’s GCG Roadmap.
In line with the mentioned macro developments, the Company
also showed a good performance in 2017. Its performance far In addition to refining the Working Guidelines and Procedures
exceeded the growth of the banking industry. The company’s of the Board of Directors and Board of Commissioners and
assets grew by 22.04%, well above the industry’s growth rate perfecting Audit Committee in accordance with Regulation
of 9.77%. Loan and Financing also grew at a high 21.01%, much of OJK; the Company has also implemented most of OJK
higher than the national loan growth of 8.2%. Third-Party recommendations consisting of 25 recommendations in 5
Funds increased by 20.31%, much higher than the growth of aspects and 8 principles of corporate governance. The quality
third-party funds of 9.4%. of information transparency is also improved, such as through
the notification of important information regarding the General
Fee-based income increased by 25.93%, Loan Quality (NPL Meeting of Shareholders (GMS) in the Company’s website, so
Gross) improved compared to 2016 from 2.84% to 2.66%, and that the shareholders and investors may easily access the
NPL Net improved from 1.85% to 1.66%. Profit increased by necessary information.

The Company is also developing an integrated implementation

of Governance, Risk, and Compliance, by incorporating these
105,17%
three aspects into the performance assessment component at
the head office, branch, division and work unit level so that the
achievement of overall financial performance is a reflection of
internal controls that have been run on every existing level of
the organization. the increase of
Whistleblowing System
Board of Commissioners also oversees the adequacy and
the Company’s share price
effectiveness of WBS implementation in the Company. Any
reporting obtained from this mechanism shall be subject to
attention and follow-up, including the imposition of a penalty 2017
that may provide deterrent effect to the offender and also
those who intend to do so. We are able to report that in Rp3,570 per share
general, the Board of Commissioners believes that the
management of WBS in the Company has been running as
expected. The Board of Commissioners considers that the 2016
application of WBS is part of the internal control system in Rp1,740 per share
order to prevent the practice of irregularities and fraud.
Risk Management and Internal

Control Management
The Board of Commissioners believes that the Company has Planting 1000 seedlings fruit trees in Jatibarang Reservoir etc.
good implementation structure of risk management. The risk The success of the Company should encourage the progress
assessment results in 2017 show the risk composite rating of society and the surrounding environment.
was in the low to moderate rate. The Company’s internal
control system is in line with Bank Indonesia Regulation and Assessment for Committee Reporting
the Implementation Standard for Audit Internal Function in Directly to Board of Commissioners
Commercial Bank, in order to reduce financial loss risk, abuse, The Board of Commissioners continues to promote the
and violation against the prudence principles. implementation of Committees functions and responsibility
in assisting active supervision and advisory application to
Social and Environmental Responsibility the Board of Directors. It encourages each committee to be
According to Board of Commissioners’ monitoring, the more proactive in finding, reviewing, discussing and reporting
Company is highly committed to implementing its corporate current issues, internal and external audit results, financial
social responsibility program with appropriate method performance and risk management in order to provide the
in order to provide benefits to the stakeholders, as this latest update and help Board of Commissioners in giving the
program implementation will bring positive impact to the appropriate direction to the Board of Directors. In 2017, these
Company and community. committees under Board of Commissioners have functioned
well, in an orderly manner and had significant contribution in
Overall, the Company’s social and community development supporting the functions of Board of Commissioners.
programs cover the areas of education, health, economic,
social and cultural, religious and environmental sectors. During Perspective on the Bank’s Business Prospects
2017, the Company has realized Rp 4.99 billion of funds for The Board of Commissioners views that Company’s business
market development activities for communities around prospects ahead are very good. There are at least four major
Sentani Papua, student programs familiar with Nusantara in opportunities that can be pursued by the Company. First
Gorontalo and Torosiaje, aid program to the pottery industry major opportunity is the large number of national housing
in Balkondes the Company Karanganyar Village Magelang, demand (housing backlog) and the need to fulfill non-housing
loans which is real business opportunity and potential for Board of Commissioners continues to increase its commitment
the Company. Second major opportunity is Company’s to carry out its functions and responsibilities. During 2017, the
proven experience and expertise in housing finance business Board of Commissioners has conducted 51 internal meetings,
since 1976. . The third opportunity is government support 36 meetings with the Board of Commissioners and the Board
through the FLPP program which generate great impact on of Directors and provided 110 written directives consisting of:
the acceleration of housing construction and the increasing ›› 28 directions related to Audit;
ability of the community to buy houses through loan. The ›› 55 related directives Risk Management and Loan;
fourth opportunity is based on the demographic growth of ›› 11 Human Resources related directives; and
Indonesian population distribution which estimates that 60% ›› 16 directions for Transformation and Business Process
of Indonesian population is in productive age and that new Improvement.
families will emerge and require new dwellings.
Closing
Considering above opportunities and supported by its On this occasion, on behalf of the Board of Commissioners,
commitment towards improvements in all areas of the expressed our gratitude to the shareholders and stakeholders,
Company through continuous transformation, prudent for their support and trust given to us, the Board of
implementation, risk management and good internal control, Commissioners, in carrying out the supervisory function and
the Board of Commissioners believes that Company’s directives for the management of the Company.
prospects in the future will be very bright and it will be able to
achieve its vision and mission. Highest appreciation and accolade to the Board of Directors
and all staff for their dedication, hard work, commitment, and
Changes in Composition and Frequency of service in bringing the Company to perform better than the
Meetings of the Board of Commissioners previous year. The Board of Commissioners is optimistic that
In the Annual General Meeting of Shareholders dated March the Company will be able to grow, be sustainable, and achieve
17, 2017, the shareholders decided to appoint 1 (one) its vision and mission well.
Independent Commissioner namely Mr. Garuda Wiko. The Thank you.
Jakarta, February 2018

On Behalf of the Board of Commissioners

President Commissioners

Report of the Board of Directors
The trend of high loan growth with

sustainable quality continues in 2017. The
company managed to record a loan growth
of 21.01% amidst the growing banking loan.
Going forward, with the implementation
of its strategic transformation blueprint,
the Company is committed to expanding
its market share in residential financing
and other related industries. We hope to
increase our contribution to the One Million
Houses program every year.
Maryono
President Director
To all Distinguished Shareholders

and Stakeholders
Praise the presence of Allah SWT, The Almighty God, for it 7.85%. Despite this rise, limited lending to the banking sector
is with His abundant grace and blessings that the Company was caused by a combination of low demand for loans and
succeeded in passing the fiscal year 2017 with a proud banking positions which was still focused on maintaining
achievement. It is my honor to represent all members of asset quality. The collection of third-party funds (DPK) of
the Board of Directors to convey that 2017 has been an national banks by the end of 2017 grew by 9.4%, which was
impressive year, where the Company was able to maintain slightly higher than in 2016 at 9.60%. The relatively limited
sustainable performance and has succeeded in creating national banking activities caused business profit in 2017 to
optimal value for shareholders. On this good occasion please have grown by only 16.48% as of November 2017.
allow us to report on the Company’s performance and
management throughout the fiscal year of 2017 in this 2017 Given the controlled inflation rate and improved economic
Annual Report. growth, Bank Indonesia lowered its total billing rate (BI 7-day
reverse repo rate) by 50 bps in 2017, by 25 bps on August
The State of The Economy and Banking Industry 22, and 25 bps on September 22, 2017. At the end 2017, BI’s
Amid the increasingly solid global economy, Indonesia’s benchmark interest rate is 4.25%.
economy grew by 5.07% in 2017. This is mainly driven
by Investment and Exports, in line with government Transformation and Strategic Policies
infrastructure projects and improving global commodity 2017 is the second year in the Company’s Transformation Phase
prices. All business sectors contributed to the growth, II process (2016-2019), i.e. the Digital Banking period, in which
including the financial services and insurance sector, which the stage to achieve is becoming the leading housing bank in
grew by 5.48% year on year (YoY). Indonesia with world-class service. Through this transformation
process, the Company is committed to becoming a leading
In December 2017, the inflation rate was 3.61% (YoY) or Bank in housing, property and basic infrastructure with a
remained within the inflation target range of 4.1%. Since 2015, global mindset service standards by 2025 (transformational
this inflation target range is maintained by low volatile food enterprise - global mindset). The Company strives to leap in
inflation, adequate supply support, Government food price line with the transformation roadmap, with focus on stronger
stabilization policies, and low global food prices. The inflation business, infrastructures, and human resources.
is still within the target range even though the administered
prices inflation increased in the early semester of 2017 As part of this second period of the transformation process,
related to the energy subsidy reform by the Government. the Company initiated the implementation of strategic
transformation blueprint for the 2017-2018 period. In this
Despite pressure coming from external sources at the blueprint, the Company launched 32 (thirty-two) strategic
beginning of the fourth quarter, Rupiah exchange rate was initiatives aimed at maintaining the Company’s market share in
relatively stable in 2017. Point-to-point, the rupiah weakened the mass segment as well as expanding the market in emerging
slightly by 1.54%, from Rp13,343 in 2016 to Rp13,548 affluent and affluent segments of society. Furthermore, one
in 2017. The stable Rupiah exchange rate is reflected in aspect of this strategic initiative is developing an organization
the lower volatility of Rupiah movement compared to the with high capabilities and reliable technology infrastructure,
previous year. This is supported by a sustained domestic as well as optimized productivity in branches and in sales.
macroeconomic stability and a favorable economic outlook. In addition, comprehensive and integrated Governance,
Compliance and Risk (GRC) is also reinforced.
2017 was an exciting year for the Indonesian capital market.
The Composite Stock Price Index (IHSG) recorded an all- For 2017, the Board of Directors has specifically set the
time high during the last trading in 2017. The IHSG closed direction of the Company’s General Policies, which will be used
at 6,355.65, an increase of 19.99% from the 2016 closing of as basis to achieve the Company’s vision and mission, which
5,296.71. is “Digital banking-based transformation for the strengthening
and expansion of housing business”. To support the direction of
Banking performance showed moderate growth. Until the the Board of Directors’ general policy and to achieve the main
end of December 2017, the growth of national banking loan financial objectives of 2017, the following corporate-level
reached 8.2%, better than the period of 2016 which reached strategies were developed:

1. Strategies in the Loan Sector in national development. The Company fully supports the nine
Strengthening the loan sector means strengthening the priority agendas, or NAWA CITA, launched by President Joko
Company’s core business of housing finance accompanied Widodo and Vice President Jusuf Kalla, to enhance the quality
by the expansion and development of a construction value of life of Indonesian public through housing development. The
chain to support an increase in the supply of housing. Company also commits to the Deputy for Finance Services,
Strategies in the loan sector include focusing on housing Survey and Consultant Services of the Ministry of State-
loans by strengthening communications with stakeholders Owned Enterprises (SOEs), work program, especially related
in the housing sector, expanding the housing market, to initiative of equalizing wealth through One Million Houses
both in terms of customer segments and territorial areas, Program as well as to encourage the financial freedom
increasing the effectiveness of collection and asset through financial inclusion program by the development of
recovery management, as well as developing a Housing Financial Services without Offices for Inclusive Finance (LAKU
Finance Center and a mortgage ecosystem. PANDAI) with the launching of BTN Cermat Savings product.
The Company is also participating in improving the
2. Strategies in the Fund Sector competitiveness and efficiency of BUMN Banks through
Strengthening of the funding sector is done by focusing on the synergy of Automated Teller Machines (ATM) and
increasing low-cost and sustainable funding, namely long- Electronic Data Capture (EDC) marked with ATM Merah Putih
term and low-cost funding. Strategies in the fund sector development. Furthermore, the Company also participated in
include extending to emerging affluent segments, developing the people’s economy through the implementation
enhancing of institutional funding cooperation in the of programs such as Social Assistance, Mekaar, Bumdes,
form of housing loan financing schemes, expanding and Farmer’s Card and SOEs Creative House, in addition to the
increasing wholesale funding, as well as increasing fee- existing Partnership and Community Development Programs.
based income through technology development.
Performance Analysis in 2017
3. Strategies in Non-Interest Operational Income Amid economic conditions that have not been fully recovered,
Parallel to its target to continue to increase fee-based and the increasingly tight business competition, the Company
income portion, the Company has devised a strategy was able to end the fiscal year of 2017 with decent financial
to increase revenue from transaction services, digital performance. The audit report by Purwantono, Sungkoro
banking, wealth management and bank guarantees, & Surja Office of Public Accountants (KAP) states that the
managing deleted loans, and establishing subsidiaries to Company’s financial report has been presented fairly in all
support the bank’s business. material respects. The opinion of the public accountants
indicates that the Company’s operations as represented in the
4. Strategies in Infrastructure financial statements have been presented in accordance with
In order to achieve these challenging business targets, Financial Accounting Standards.
strengthening the infrastructure is a critical factor. The
strategy is to build digital banking infrastructure, centralize Assets in 2017 grew by 22.04% to Rp261.36 trillion. High asset
operations and process automation, improve branch office growth is driven by growth in Loan and Third-Party Funds.
productivity as a sales base, and strengthen GCG, and
comprehensive risk management. Over the past 3 (three) years, the Company’s loan has
increased almost 2 (two) fold, from Rp115.92 trillion in
5. Strategies in Human Resources December 2014 to Rp198.99 trillion in December 2017. Loan
Strengthening of human resources is focused on the optimal and financing increased by 21.01% from Rp164.45 trillion in
allocation of human resources, competence development 2016. In line with the Company’s business focus in housing
through the education program, holistic implementation of financing sector, the main push of the loan growth came from
a Human Capital Information System (HCIS), building a high housing loan, i.e. Subsidized KPR and Construction Loan. With
capability organization, and strengthening working culture. this achievement, the Company keeps its position as the
leading of KPR in Indonesia, with market share of 36,30%. As
Of course, in compiling the strategies above, the Company for Subsidized Housing Loan for low-income communities,
always aligns them with the Government’s vision and mission the Company still dominates with a 95.42% share of total
nationwide distribution of Subsidized Housing Loan.
The achievement of high loan growth is also accompanied by The Company’s equity as of December 31, 2017, amounted
the Company’s growing contribution to the government’s One to Rp21.66 trillion, an increase of 13.24% compared to
Million Houses Program. In 2017, the Company successfully December 31, 2016, position of Rp19.13 trillion. The net
distributed 667,312 housing units to the public, consisting of income has been a major contributor to equity growth. The
252,783 units in housing loans (KPR) and 414,529 housing Company’s capital structure is maintained with a Capital
units still under construction, as the Company also distributed Adequacy Ratio (CAR) of 18.87% in 2017, down compared
Construction Loans to housing developers. With this 2017 to 2016 position of 20.34%, due to high loan growth.
achievement, the Company has contributed to a total of Nevertheless, the CAR is still well above the minimum capital
1.74 million housing units ever since the One Million Houses requirement required by Bank Indonesia, including if capital
Program was initiated in 2015. requirement in Basel III is implemented.
The Company is committed to serving the society from all The Company’s net profit in 2017 managed to grow by 15.60%
walks of life, especially in the lowincome segment of society from Rp2.62 trillion in 2016 to Rp3.03 trillion in 2017. The
that has been the focus of the Company. This is meant to increase was driven by the Company’s success in increasing
give them a chance to grow and help people achieve a more interestbased income, lowering cost of funds and growing
prosperous life. In 2017, the Company released 2 (two) revenue services (fee-based income). Interest-based income
mortgage products for low-income people, Micro Housing increased by 12.44% from Rp17.14 trillion to Rp20.08 trillion,
Loan and Housing Loan for Workers in the Informal Sector while feebased income grew 25.19% from Rp1.28 trillion to
provided to online motorcycle drivers. Rp1.61 trillion.
Despite this high growth, the Company continues to maintain With the growth of Net Income, the Company managed
and ensure the quality of disbursed loans. The Company to maintain its profitability ratios at a healthy level. Return
managed to suppress the rate of Non-Performing Loan (NPL) on Asset (ROA) reached 1.71% and Return on Equity (ROE)
to 2.66% in 2017, from 2.84% in the previous year. Furthermore, reached 18.11%. Net interest margin (NIM) as of 31 December
the Company also continuously strives to reduce other risky 2017 was 4.76%. Meanwhile, Ratio of Operational Cost to
loan, including those in the ‘In Special Caution’ category. Loans Operating Income (BOPO) was 82.06%.
with this collectibility category decreased from 10.22% in 2016
to 8.77% in 2017. Improvements in NPLs and Loans with the Complementing the Company’s conventional banking
‘Special Attention’ collectibility level are inseparable from the performance, the Company’s Sharia Business Unit (UUS) also
strategic steps taken by the Company, from improving loan shows good progress. By the end of 2017, UUS assets reached
application analysis and processing (front end), strengthening Rp23.40 trillion, up 29.08% compared to Rp18.13 trillion in
business monitoring and customer collateral (middle end), as 2016. UUS also succeeded in carrying out its intermediary
well as billing intensification, loan restructuring and accelerated functions, as evidenced by the growth of Financing by 26.46%
execution of loan collateral (back end). from Rp14.22 trillion in 2016 to Rp17.99 trillion in 2017. This
figure exceeds the growth rate of national Islamic banking
Meanwhile, increase in third-party funds (DPK) also financing. Non-Performing Financing (NPF) of UUS in 2017
contributes to a boost in asset growth in 2017. The is very small at 0.95%, improved from 2016 by 1.01%. UUS’
Company’s Third Fund Party was recorded amounted to Third Party Funds also managed to grow by 24.78% to support
Rp192.47 trillion or increased by 20.31% from 2016, which Financing growth, increased from Rp15.03 trillion in 2016
was Rp159.99 trillion. With this achievement, the Company’s to Rp18.75 trillion in 2017. UUS’ Net Profit in 2017 reached
current Account Saving Account (CASA) position ratio at the Rp482.19 billion, up 27.76% compared to Rp377.42 in 2016.
end of 2017 is 49.67%.
With the achievement of this proud performance, the Company
To finance the loans, especially long-term Housing Loan, the has received many awards and appreciations from shareholders
Company also collects funds from long-term capital markets. and other stakeholders in 2017. The Company was ranked 2nd
In 2017, the Company raised Rp17.53 trillion of wholesale in the Financial State-Owned Enterprise Category in the 2016
funds, consisting of bond issuance and Negotiable Certificate Annual Report Award. In addition, the Company also received
of Deposit (NCD) amounting to Rp5 trillion and Rp3.87 trillion The Asset Gold Award for Corporate Governance and Investor
respectively, bilateral loans of Rp8.7 trillion, and asset Relations, as well as Gold Award for Government, Risk, and
securitization of Rp1.5 trillion. As of December 31, 2017, the Compliance Award at the ASEAN Risk Award.
Company’s Loan to Deposit Ratio (LDR) stood at 103.13%.

Our proudest achievement is the increased shares price, which

is traded on the Indonesia Stock Exchange as BBTN. BBTN’s
share price increased by 105.17% from Rp1,740 per share at
the close of trading in 2016 to Rp3,570 per share at the close In 2017, the Company
of trading in 2017. This share price hike became the highest
among bank shares listed on the Indonesia Stock Exchange successfully distributed
667,312
and became one of the Top Gainer in the LQ45 index. Going
forward, the Company will continue to maintain the trust of
shareholders and investors by improving the fundamentals of
financial performance and intensifying communications with
the capital market community.
housing units
Development of Digital Banking, Human
Capital and Corporate Culture
The Company is very concerned in approaching with customers,
fixing the infrastructure of Information technology and human 252,783 units in
capital. 2017 is the year of business transformation based housing loans (KPR)
on digital banking. In addition to facing the fierce competition
in the banking world, fast modeling services are considered
capable of providing better service to the community.
Considering the demographics of Indonesia which has a 414,529
considerable age of productive workforce and is a gadget
generation, the Company sees this as an opportunity to
housing units still
offer digitalbased products. Through the application of under construction
digital banking, the Company wants to have world class
service or world class service. The coverage of digital banking
includes products, business processes to the formation of To a total of
1,73
organizational culture. The Company has changed the status
of 65 conventional branch offices to digital offices. In addition,
the Company has also spurred the Portal Property Services as million housing units
a possible site for prospective borrowers to apply for home
loans on line.
ever since the One Million
In line with the business transformation plan, the Company
conducts the human resources (HR) strengthening by Houses Program was
enhancing and improving HR capability as an agent of
transformation. The Company conducts various programs, initiated in 2015.
such as performance management implementation to build
desired behavior and improve employee engagement, clear
succession and career management plan, and employer value
proposition development and recruitment campaigns to attract Meanwhile, in order to improve employee competence, the
the best talent to the Company. In addition, the Company also Company adds employees training and development to
established a strategic manpower plan to determine the gap in build the best-in-class and highly productive workforce.
the long-term and prepare for future needs. The Company engages employees in education and training
activities, both in-house and public. Implementation of the
In 2017, the Company recruited 1,837 new employees to training, both in the field of core competencies and supporting
support business development and expansion of office competencies, is programmed by Learning Center Division.
network, and to replace employees who are entering the
retirement preparatory period (MPP). As of December 31, The Company established corporate culture values as the basis
2017, the Company has 10,245 employees, which consist of for establishing rules, policies, and organizational systems to
8,665 permanent employees and 1,580 contract employees. guide the employees’ behavior of all employees in all ranks and
This number increased by 10.83% from the last position in level. The true values and principles in working are the core
2016, i.e. 9,244 employees. building of corporate culture. This values and principles are
also the base of every human being in behaving, acting, and process, as well as lowering the cost of building public housing
decisionmaking in order to achieve the best results together. under 5 (five) hectares. Nevertheless, the implementation of
this policy throughout Indonesia still takes time.
The 5 values of corporate culture abbreviated as ‘SIIPS’ are
Synergy, Integrity, Innovation, Professionalism, and Spirit Internally, the Company is aware of its need to improve
to Achieve Excellence. These five corporate cultural values efficiency. High-interest costs, some manual operational
establish the foundation for all Company’s employees (‘Bitniz’) processes and lack of optimal productivity in branch offices
in performing to achieve the Company’s vision. still need to be addressed. With the implementation of
the transformation blueprint, the Company is committed
Business Target Achievement in 2017 to improving various business and operational processes
Most of the financial targets set by the Company have been and productivity, so that efficiency levels can gradually and
achieved in 2017, which reflects the Company’s good planning continuously improve.
of its business potentials and capabilities. Nevertheless, with
the condition of the domestic economy that has not fully Business Prospect
recovered and the increasingly tight competition among IMF projection in the World Economic Outlook January 2018
banks, several financial indicators were still below target. estimates that the global economic growth in 2018 is expected
to increase 3.9% compared to the year 2017, i.e. 3.7%. The year
The total asset realization of Rp261.36 trillion exceeded the 2018 is predicted to improve where the global economy is
2017 target of Rp253.11 trillion by 103.26%. Loan Position operating near full capacity. Emerging markets or emerging
in 2017 amounted to Rp198.99 trillion, achieving 99.35% or economies are the main drivers of the global economy, with
slightly below the target of Rp200.29 trillion. Third-Party growth forecasts at 4.9%, and will continue to accelerate to
Funds as of December 31, 2017, amounted to Rp193.47 5.0% by 2019.
trillion, achieving 98.29% of the 2017 target of Rp196.83
trillion. Meanwhile, the Company’s actual Net Profit in 2017 On the basis of these assumptions, the Government also
amounted to Rp3.03 trillion, exactly matching the target of launched a higher economic growth outlook in 2018 of 5.4%.
Rp3.03 trillion by 100.06%. The government will continue to prioritize infrastructure
development, poverty alleviation, and expansion of
Challenges and Constraints employment opportunities. OJK and Bank Indonesia also
In conducting its business and operations, the Company is predict bank loan to grow double digits in 2018, where
faced with various challenges and constraints, both internal property and mortgage loans will contribute substantially to
and external. Therefore, the Company has established a this growth.
realistic business plan by taking into consideration various
internal and external factors that could affect business With the increase of Government infrastructure development,
continuity and financial performance. both through the APBN, APBD, and private sector, the
growing national economic potential and the completion of
Externally, the limited Government budget for Subsidized other infrastructure projects will open up opportunities for
Housing Loan becomes a challenge for the Company. By development in the housing sector. This has a significant
using interest margin subsidy scheme, the Company must impact on the Bank’s loan demand. The company targets loan
provide all the funds required for the distribution of Subsidized growth in 2018 in the range of 22-24%.
Housing Loan. To that end, the Company has devised a
strategy to improve funding structure and gradually lower the This target is also based on the consideration that the
cost of fund. The development of digital and electronic-based contribution of the housing sector to Gross Domestic Product
transactions has become one of the strategies to increase (GDP) continues to increase from year to year, from 2.6% in
low-cost funds. 2010 to 2.8% in 2017. Moreover, the home backlog number
has also reached 11.38 million units, of which 6.09 million
Another obstacle in the provision of housing is the limited units are the backlog of residential and home sales, and most
supply of houses that can be provided by housing developers. of which are still with loan schemes.
Limited lands and high prices become the biggest obstacle.
The issuance of the XIII Economic Policy Package by the The Government’s Commitment to the One Million Housing
Government in 2016 is expected to overcome obstacles Program, as well as the high housing backlog figures, are
in the provision of housing. This policy aims to accelerate the reason for the Company to remain focused on the
the provision of housing for low-income communities by housing finance sector. In addition, the Company has several
simplifying regulations, reducing and accelerating licensing competitive advantages, including:

a. Strong brand value in the housing finance sector 3. Increase fee-based income (FBI), with the policy of
b. Market leader in subsidized and low-cost housing loan. increasing number of accounts (NoA) and customer
c. The main mandate carrier in the implementation of the transaction activity by offering digital banking services,
One Million Houses Program strengthening the role of Priority Banking services, as well
d. Has the highest growth in the housing industry in as extending corporate banking and treasury activities.
Indonesia
e. Has a close relationship with housing developers in 4. Increase the effectiveness of billing and asset recovery
Indonesia, especially subsidized home developers. by strengthening loan monitoring with lancer collectibility
and increasing billing and loan settlement.
To achieve its vision, mission and challenging business and
financial goals, the Company has developed the following 5. Strengthen capital, by increasing profitability, as well
business development strategies for 2018 as proposing dividend schemes that support business
growth and publishing commercial sub debt.
1. Strengthen business positioning in Housing Loan and
construction value chain, with the policy of strengthening 6. Improve employee quality and productivity with policies
the mass-market KPR positioning (both subsidized and such as building top talent management, conducting career
nonsubsidized), increasing financing in the emerging management evaluations, strengthening performancebased
affluent and affluent segments, and expanding the market management systems, designing attractive compensation
share of SMEs, Commercial and Corporate segments to mechanisms, internalizing collaborative work culture and
support housing supply. focusing on external insights for digital transformation.
2. Strengthen funding structures and CASA Ratio, with 7. Strengthen Information Technology Infrastructure (IT),
the policy of optimizing the share of wallets of mass by developing and improving business systems and
customers, affluent customer acquisitions and increasing applications (BTN Property portal, internet & mobile
account utilization as a customer transaction base, banking, iLoan & iCremo, and wealth management),
expanding fund-based institutional-based value chain risk mapping, centralization of loan business processes
collaboration, and increasing low-cost wholesale funding. through digitization of back-office systems, and
implementing IT in the process of planning and evaluation in the ‘Good’ category; this reflects that management has
of corporate performance. implemented good corporate governance. The Company is
considered successful in implementing certain governance
8. Strengthen Risk Management and GRC Integration, practices, in line with the ASEAN Corporate Governance
through the re-engineering loan disbursement, billing, and Scorecard. Thus, the Company is recognized and awarded as
other major processes, and implementing integrated GRC “The Best Financial Sector” at The 9th IICD Awards and “The
by monitoring Key Performance Indicators (KPI), Key Risk Most Trusted Company” based on the Corporate Governance
Indicators (KRI), and Key Compliance Indicators (KCI). Perception Index (CGPI) at the IICG Awards.
9. Inorganic growth, through the establishment of subsidiaries The Company continuously follows the rating and survey
focusing on finance companies, investment management of Corporate Governance Perception Index (CGPI), which is
companies, as well as the establishment of insurance managed by the Indonesian Institute for Corporate Governance
subsidiaries. (IICG). CGPI is a research and rating program of corporate
governance quality assessment. The Company scored an 86.86
Good Corporate Governance Implementation CGPI in 2017, with the predicate of ‘The Most Trusted Company’.
The Board of Directors is always committed to achieving
a good business performance by promoting the Good The GCG assessment based on the ASEAN Corporate Governance
Corporate Governance (GCG) implementation. By consistently Scorecard standard is also conducted by OJK and the Indonesian
implementing the principles of good corporate governance Institution for Corporate Directorship (IICD). Assessment of
in every Company’s business activity at all levels of the GCG practices refers to the public information provided by
organization, the Board of Directors believes that the business the Company, especially in the 2016 annual report and the
continuity will be well maintained. Company’s website. The Company is considered successful in
implementing some governance practices in accordance with
The Board of Directors managed the Company in accordance the ASEAN Corporate Governance Scorecard, as reflected in the
with the authorities and responsibilities. Every decision- results of the 2017 assessment with a total score of 101.74 with
making and policy of the Board of Directors has been conducted the predicate “Leadership in Corporate Governance” and “The
independently, with no intervention, taking into account Best Financial Sector” at the 9th IICD Awards.
due diligence, and constantly avoiding conflict of interest.
Transparently, the Board of Directors also communicates GCG Structure and Mechanism
to employees and stakeholders regarding the Company’s The Company’s governance is implemented in an integrated
business direction in order to realize its vision and mission. structure consists of 3 (three) aspects of governance, i.e.
The Board of Directors strengthens the compliance functions, structure, process, and outcome. The Company conducts
risk management functions, and internal audit functions for these three aspects to ensure the availability of adequate
the supervisory and internal control mechanism. Upon audit governance structure and infrastructures, to maximize the
findings and internal audit recommendations from external effectiveness of governance implementation process, and
auditors, OJK supervisory results, and other auditors, the to promote quality governance outcome to fulfill the hope
Board of Directors is committed to resolving all such findings of all stakeholders.
and using recommendations for follow-up improvements.
The governance mechanism is a set of rules to implement GCG
In 2017, the Board of Directors initiated the “Integrated GRC” that govern the relationship between the organs inside the
initiative that synergizes the comprehensive functions of Company so that the duties, responsibilities, and authorities
Governance, Risk, and Compliance. The function is expected are clear and in accordance with the prevailing rules and
to strengthen the internal control mechanisms to support regulations, GCG principles, healthy business ethics, and best
business growth. In the future, Integrated GRC implementation practices. The Company has Governance Mechanism that is
is expected to transform into the employees’ work culture, reflected in the main policies of GCG principles (soft-structure
which is the unity of performance culture, compliance culture, GCG). This mechanism shall be the living document for all and
and risk-conscious culture. every part of the organization of the Bank. The Company has
8 (eight) main policies of GCG.
In the governance implementation, the Board of Directors
refers to the various regulations issued by OJK, among others, In accordance with Law No. 40 of 2017 on Limited Liability
that govern banking and issuing companies, and refers to Company, the Company Organ consists of a General Meeting
exemplary international best practices. Self-Assessment of Shareholders (GMS), the Board of Directors, and the Board
and OJK Result for Semester I 2017 for the Company is 2 or of Commissioners. GMS, Board of Directors, and Board of

Commissioners respect their duties, responsibilities, and The risk management system is designed to support the
authorities in accordance with rules and legislation and Company in realizing sound business management and
Articles of Associations. Company’s Organ is established to achieving sustainable growth, thus optimizing stakeholder
ensure that the implementation of the Company’s governance value. The Company adopts a comprehensive approach to
shall be done effectively with clear roles and responsibilities managing risks comprehensively, improving performance in
as to create check and balance control mechanism. managing uncertainty, minimizing threats, and maximizing
opportunities without neglecting the principles of risk
GMS is an organ in the Company that has the rights not management that at least include:
granted to the Directors or Board of Commissioners, within
the scope stipulated in the law or Articles of Association. 1. Active supervision by the Board of Commissioners and
The GMS is a forum for shareholders to make important Board of Directors.
decisions regarding the capital invested in the Company. In 2. Adequacy of policies, procedures, and limit set.
addition, GMS functions as accountability forum for Board of 3. Adequacy of the risk identification, measurement,
Commissioners’ supervision and Directors’ management on monitoring, and control process, as well as the Risk
their performance in the time frame specified. Management information system.
4. A comprehensive internal control system.
Throughout 2017, the Company held Annual GMS at the time
that did not exceed the limit set forth, i.e. on March 17, 2017. The Company is one of the Systemic Banks. As one of the
The Company also held an Extraordinary GMS on December 28, efforts to prevent and handle the crisis of the financial system,
2017, with the agenda of Changes in the Board of the Company. especially on Systemically Important Bank issues, the Company
must be able to determine the plan when experiencing the
In 2017, the Directors and the Board of Commissioners financial stress that may endanger the business continuity.
have made improvements to the Board of Directors and The action plan is stipulated in the form of Recovery Plan, in
Board of Commissioners’ Code of Conduct and established a line with POJK N. 14/POJK.03/2017 dated April 4, 2017. The
Working Procedure between the Directors and the Board of Company has prepared a Document Recovery Plan, which
Commissioners, which serve as reference for the two main includes the Trigger Level (for prevention, recovery, and repair
organs to perform their duties and functions effectively and purposes). Every indicator of Recovery Options in Recovery
independently in order to achieve the Company’s objectives. Plan includes, among other: Indicators of Capital, Liquidity,
Profitability, and Asset Quality.
The performance evaluation is conducted comprehensively, by
tier, and periodically. The evaluation result of Key Performance The Company always assesses the risk profile through
Indicators (KPI) Directors by the Board of Commissioners is assessment of inherent risk ratings and quality rating of risk
an assessment accountable by the Directors in GMS. Other management implementation to determine the Company’s
assessments are based on the criteria of Assessment of risk rating. Inherent Risk Assessment is an assessment of
Duties and Responsibilities of the Board of Directors in the the inherent Risks in the Company’s business activities, both
GCG selfassessment as stipulated in Bank Indonesia Circular quantifiable and non-quantifiable, which may potentially
Letter No. PBI No. 15/15/PBI/2006 dated April 29, 2013, affect the Company’s financial position. Quality Assessment
on the Implementation of Good Corporate Governance for. of Risk Management Implementation is an assessment of
Commercial Banks. 4 (four) interrelated aspects, which consist of risk management,
risk management framework, risk management process,
Risk Management adequacy of human resources, and adequacy of management
The Company has policies in the field of risk management, i.e. information system, and adequacy of risk control system.
the Risk Management Policy Manual (PKMR), which covers the Based on the Self-Assessment results of the Company’s
minimum provisions required by Bank Indonesia or Financial soundness, the Company’s Risk Profile in the fourth quarter
Services Authority Regulations. The PKMR has been reviewed of 2017 is at Composite 2 (Low to Moderate) risk rating.
regularly at least once a year by the Board of Directors and
Board of Commissioners by refining the risk management Internal Control
policy guidelines. A re-review of internal policies is also carried The Company implements the internal control system in line
out to be in line with the regulator’s latest provisions by with the regulation on Standard Guidelines of Internal Control
conducting a gap analysis and accommodating the common System for Commercial Banks and Best Practice of Committee
best practices used in the banking industry to increase risk of Sponsoring Organizations of the Treadway Commission
management quality. (COSO)Framework. The supervisory mechanism is stipulated
by the Company’s management on an ongoing basis to Control Activities and Segregation of Duties of Accountancy,
manage and secure the Bank’s assets, in order to ensure the Information, and Communication system, and Monitoring
availability of accurate report, improve compliance with the Activities and Correction Deficiencies. Based on the review and
prevailing regulations, reduce the impact of financial losses, discussion in meetings that have been conducted by the Board
deviations (including fraud), and prudential violations, improve of Commissioners, the Committees, Internal Audit Division,
the organization effectiveness, and improve cost efficiency. and some related divisions, it is concluded that the Company
already has an adequate internal control system.
The Company’s Internal Audit Division has disseminated the
Internal Control (COSO Framework) in all Audit implementation Whistleblowing System
as a part of anti-fraud by strengthening the Control The Company’s internal control system is supported by
Environment of the business/operational unit or the first line sets of policies and reporting infrastructures on the ethical
of defense. violations or any other actions that may harm and violates the
Company’s interests. The Company’s Whistleblowing System
The Company performs the Internal Control Assessment (WBS) Policy is based on Bank Indonesia Regulation (PBI)
(ICA) to evaluate the effectiveness of Internal Control System. No. 5/8/PBI/2003 which was amended to PBI No. 11/23/
The assessment assessed the internal control quality from PBI/2009 and Bank Indonesia Circular Letter No. 13/28/
the auditee task force on 5 (five) COSO Framework internal DPNP on Anti-Fraud Policies. The WBS is a part of the internal
control components, using the criteria and methodology of control system to prevent irregular practices and aims to:
Internal Control Assessment (ICA) questioner rating and
auditor’s professional judgment through direct examination 1. Early detection and prevention of irregularities or
(walkthrough) on the field. violations;
2. Gradually creating an open, sincere, honest, and the
The measures taken by the Company in order to ensure the responsible working environment in the Company.
effective monitoring activities are conducted, including:
WBS internalization within the Company is carried out by
1. Ensure that monitoring functions are clearly defined and distributing guidelines on the Whistleblowing System (SPP/
well-structured within the Company’s organization; WBS) stipulated by Directors’ Circular Letter and sharing
session presentation directly to all of the Company’s leaders
2. Establish the task force/employees to monitor the and employees. In addition, to reach all of the Company’s
effectiveness of internal controls; stakeholders, the WBS socialization is also conducted through
the Company’s website and various media, such as internal
3. Set the correct frequency for monitoring activities based on newsletters, posters, live presentations of WBS ethics and
the inherent risk of the Company and the nature/frequency policy guidelines.
of changes occurring in the operational activities;
In addition, the Company also builds supporting infrastructure
4. Integrate the Internal Control System (SPIN) to the in implementing WBS policies whereby the reporter shall
operation and provide regular report such as book journal, submit reports through the media:
management review, and approval report on the exceptions/
deviations of the policies and procedures set (justification on 1. Letter sent directly to the SPP/WBS Team or President
the irregularities) which shall be reviewed; Director of the Company, Menara Bank BTN, Floor 20 Jl
Gajah Mada No.1 Central Jakarta - 10130
5. Review the documentation and evaluation results of the 2. By official email addressed to the WBS Team at wbs.
task force/employees appointed to perform the monitoring; btn@btn.co.id; and
3. Using channel:
6. Assign information/feedback in an appropriate and correct ›› PO Box Whistle Blowing System (WBS) BTN
frequency. Jakarta 10000
›› E-mail wbs.btn@btn.co.id
In 2017, the Company’s Internal Audit Division conducts ›› Phone/Text to 0811-92-45678
tests and evaluations to improve/refine the effectiveness
of an adequate Company’s SPIN, which includes five main In 2017, there were 99 reports received, which consist of
components of mutually related controls, i.e. the Control 14 reports using Letter/PO BOX, 44 reports via text/phone/
Environment, which includes the Management Oversight direct report, and 41 reports via email. Based on the reports
and Control Culture, Risk Recognition and Assessment, received, 94 reports were settled without further audit (audit

clarification and/or special audit) and 5 reports were passed

for audit process (audit clarification and/or special audits). The
5 reports passed for audit are as follows:
Corporate Social Responsibility Implementation

The Company believes that business sustainability is achieved
by financial target, and also supported by non-financial
investment, one of which by the Corporate Social Responsibility
(CSR) program. The Company considers the CSR concept as a
part to contribute to the sustainable economic development.
In 2017, the Board of Directors
With a triple bottom lines approach that includes economic
indicators, environmental indicators, and social indicators, initiated the “Integrated GRC”
it is expected that the Company’s existence will not only
be beneficial for shareholders, but also for a wider reach initiative that synergizes the
of stakeholders, i.e. The community and environment.
Therefore, the Company always conducts the Corporate comprehensive functions
Social Responsibility activities, in line with the Company’s
sustainable governance principles, and as a fulfillment of the of Governance, Risk, and
Financial Services Authority Regulation No. 51/POJK.03/2017
on Sustainable Finance Implementation. Compliance. The function is
The Company has compiled CSR program to achieve the CSR
Vision and Mission. This program is oriented towards creating
expected to strengthen the
added value for stakeholders and surrounding community, and
supports the sustainable development goals program. These
internal control mechanisms
CSR programs are organized into four key areas, which covers:
to support business growth.
›› Responsibility to Products and Customers, in which
the Company always strives to protect the customers’
rights in the interaction, and maintain customers’
satisfaction level by implementing the best service programs in all the office network, which consist of Head
system, and resolve customer complaints. Office and Branch Offices, spread throughout Indonesia. The
program implementation is adapted to each regional condition
›› Responsibility to Employment, Occupational Health and coordinated with the related parties so that the program
and Safety, in which the Company emphasizes on shall be realized well.
the freedom of association, education and training,
employee career path, including the Occupational The Company always conducts CSR programs annually
Health and Safety (OHS) of its employees. to provide maximum benefits to stakeholders, in terms
of economic, social, and environmental. Consistently, the
›› Responsibility to Social Development and Community, Company provides special budget to support CSR programs.
in which the Company touches aspects of community In 2017, the Company disbursed Rp4.99 billion CSR Funds.
life to improve the quality of life of the surrounding The funds are absorbed in the scope of CSR activities, which
community in order to enhance the standard of living cover the economy, art, culture, sports, education, health,
for the better. facilities and infrastructure, religious and worship, and nature
conservation. Some CSR funding activities in 2017 are the
›› Responsibility to the Environment, in which the Company’s development of Phraa Market in Sentani and Mama Market in
operational activities are designed to minimize negative Jayapura. In addition, the Company established numerous BTN
impacts and maximize positive impacts on the Zone points in some universities. BTN Zone provides access
environment. to college student to connect to the internet, learn about the
Company’s banking product, and directly feel the transaction
The four CSR programs are implemented with careful planning, ease by digital solutions application, which shall encourage
accountable, and refer to the Company’s policies. The CSR cashless society.
In addition to CSR activities, as a BUMN Bank, the Company Risk Management Committee plays a role in formulating risk
also conducts Partnership and Community Development management policies, strategy, and target, and it also plays a
Program. The Company strives to take an important role as a role in facilitating the monitoring and decision making related
business entity in assisting the Government in realizing to the Company’s risk management implementation. In
the community welfare people with the development and 2017, this committee organized 4 (four) meetings, with each
empowerment of the community’s potential. PKBL Program is meeting discussing the self-assessment of the Company’s
a form of awareness that the success in the business industry risk profile report.
is not only determined by the Company’s management and
operational performance, but also by the support of the Asset and Liability Committee (ALCO) plays a role in
surrounding community. formulating the policies, strategy, and target. It also plays a role
in facilitating the monitoring and decision making related to the
Throughout 2017, the Company has disbursed a total of Company’s Asset Liability Management (ALMA). Throughout
Rp6.1 billion assistance funds to the partnership program, 2017, ALCO has conducted 13 (thirteen) meetings, which
distributed to 169 partners across 7 (seven) sectors including discuss the performance of the Company’s assets and liability.
fishery, plantation, agriculture, animal husbandry, industry,
and trade and services. Meanwhile, the realization of the The Loan Policy Committee assists the Board of Directors in
distribution of assistance for the Community Development formulating policies, overseeing the policies implementation,
Program amounted to Rp20.03 billion. monitoring progress and loan portfolio, and providing
recommendations for improvements in the loan field.
In 2017, through ‘BUMN Hadir untuk Negeri (State-Owned Throughout 2017, the Loan Policy Committee has organized
Enterprises for the Nation)’, the Company established Village 3 (three) meetings with the agenda of determining the limits
Economic Center (Balkondes), a tourism-based platform to of authority to decide upon loan and the change of commercial
improve the local economy and empower and develop the loan billing date.
Human Resources through the activities development in the
surrounding area. BTN Balkondes is located in Karanganyar Loan Committee is responsible for analyzing credit applications
Village, Borobudur District, Magelang Regency. The Balkondes received by the Company. The structure, policies, and membership
is one of the tourist villages in the Borobudur, which has the of the Loan Committee are in the process of the Board of
advantage as a pottery industrial center. Directors’ Decree. The duties and functions are performed by the
Board of Directors Meeting, which is responsible to discuss credit.
Performance Assessment for Committee In 2017, the Credit Committee has conducted 64 (sixtyfour)
Reporting Directly to Directors meetings, to discuss the loan application.
To facilitate monitoring and formulate matters that are
considered strategic by the Company in accordance with Product Committee plays a role in compiling the policies,
applicable regulations, the Board of Directors is supported supervising the implementation of policies, monitoring the
by 7 (seven) Committees Reporting to the Board of Directors. development, and providing advice on improvement steps
Those Committees are as follow: related to the Company’s products. During 2017, the Product
Committee has performed its duties by organizing 7 (seven)
1. Risk Management Committee meetings, which discussed the refinement of Subsidized Housing
2. Asset and Liability Management Committee (ALCO) Loan Subsidiary business processes, the issuance of Micro-
3. Credit Policy Committee Housing Loan, Simple Housing Loan, and Savings programs.
4. Loan Committee
5. Product Committee The Personnel Committee assists the Board of Directors
6. Personnel Committee in formulating policies, overseeing the implementation of
7. Information Technology Steering Committee policies, monitoring progress and personnel and providing
recommendations for improvements in accordance with the
The Board of Directors assesses that in 2017, these Company’s Employment regulations and the Labor Laws
committees have performed their duties and responsibilities applicable in Indonesia. In 2017, the Personnel Committee has
effectively in assisting the Directors’ duties. The performance conducted 8 (eight) meetings, which discuss the fulfillment of
assessment for the Committee reporting to the Board of positions and employees in the task force, and employees’
Directors is determined based on the committee work plan promotion and mutation.
related to the Company work plan. The Committee’s work is
reflected in the Committee work meeting and the decision of The Information Technology Steering Committee plays a
the committee meeting. role in the formulation of policies, strategies, targets, and

means of monitoring, and decision-making related to the Director of Strategy, Risk,

implementation of the Information Technology Management and Compliance : R. Mahelan Prabantarikso
of the Company. In 2017, the Information Technology Director of Collection, Asset
Steering Committee has conducted 1 (one) meeting on the Management, and Legal: : Nixon L.P. Napitupulu
development of Company’s IT. Director of
Distribution & Network : Dasuki Amsir
Change in Board of Directors’ Composition
In 2017, there are several changes to the composition of the Changes in the composition of the Board of Directors are vital
Company’s Board of Directors, which are based on the evaluation to the Company’s drive to accelerate the implementation of
of the controlling shareholders and the recommendations of business strategy and transformation and achieve challenging
the Remuneration and Nomination Committee. Mr. Maryono business targets. We believe that by joining the professionalism
is reappointed as the President Director of the Company for and the solidity of the Board of Directors, the Company shall
the second period in Annual General Meeting of Shareholders grow better.
(AGMS) dated March 17, 2017. New members of Board of
Directors in 2017, i.e. Mr. R. Mahelan Prabantarikso, Mr. Nixon Closing
L.P. Napitupulu, and Mr. Budi Satria, respectively, appointed on Thus, this is the end of the Board of Directors’ Report on the
the AGMS dated March 17, 2017, and Mr. Dasuki Amsir which is Company’s management throughout 2017. Let us extend our
appointed in the Extraordinary General Meeting of Shareholders gratitude to all stakeholders, shareholders, customers, and
(EGMS) dated December 28, 2017. partners for their support and trust to the Board of Directors
in performing the Company’s management functions and well-
established cooperation during 2017.
The GMS also dismissed several members of the Board of
Directors in 2017, i.e. Mr. Mansyur Syamsuri Nasution, Mr. Catur We also give the highest appreciation to the Board of
Budi Harto, and Mr. Sulis Usdoko, respectively in the AGMS Commissioners on the direction and advice provided. Thus,
dated March 17, 2017, and Mrs. Handayani in the EGMS dated the Board of Directors is able to manage and achieve business
December 28, 2017. We would like to express our gratitude targets as set forth.
for all contributions and thoughts of mind while serving as a
member of the Company’s Board of Directors. Likewise, the highest appreciation to all employees for their
hard work, creation, and dedication to bring the Company to
With the above-mentioned changes, the composition of the achieve good performance amidst the economic conditions
Board of Directors per December 31, 2017, is as follows: that are still growing limitedly and the highly competitive
competition in the banking world. Going forward, we remain
President Director: : Maryono committed to always provide the best in order to achieve
Director of Finance & Treasury : Iman Nugroho Soeko sustainable performance. The Board of Directors hopes that
Director of IT & Operation : Adi Setianto the Company’s contribution to the Indonesian economy and
Director of Commercial Banking : Oni Febriarto Rahardjo national banking will improve from year to year and will always
Director of Consumer Banking : Budi Satria be an important part of Indonesia’s development.
On behalf of the Board of Directors

Maryono
President Director
Accountability of Annual Report 2017
Letter of Statement of the Members of Board of Commissioners on 2017

Annual Accountability Report of PT Bank Tabungan Negara (Persero) Tbk
We, the undersigned below, declare that all information in the 2017 Annual Report of PT Bank Tabungan Negara
(Persero) Tbk has been completely disclosed and we are fully accountable for the truthfulness of its content. We also
declare that the Company Risk Management and Internal Control System is adequate. This statement is made truthfully.

President/Independent
Commissioner
Kamaruddin Sjam Arie Coerniadi Lucky Fathul Aziz Garuda Wiko

Independent Commissioner Independent Commissioner Hadibrata Independent Commissioner
Independent Commissioner
Sumiyati Maurin Sitorus Iman Sugema

Commissioner Commissioner Commissioner

Letter of Statement of the Members of Board of Directors on 2017

Annual Accountability Report of PT Bank Tabungan Negara (Persero) Tbk
We, the undersigned below, declare that all information in the 2017 Annual Report of PT Bank Tabungan Negara (Persero)
Tbk has been completely disclosed and we are fully accountable for the truthfulness of its content. We also declare that
the Company Risk Management and Internal Control System is adequate. This statement is made truthfully.
Maryono
President Director
Iman Nugroho Soeko Adi Setianto Oni Febriarto Rahardjo

Director Director Director
Budi Satria R. Mahelan Prabantarikso Nixon L.P. Napitupulu

Director Director Director
Corporate Profile
03
03 Corporate Profile
65 Company Identity
66 Company’s Milestones
68 Company’s Brief History
70 Vision, Mission, and Corporate Culture and Values
74 Strategies to Achieve the Company’s Vision and Mission
75 Corporate Brand
76 Business Sector
77 Products and Services
91 Structure and Composition of Shareholders
94 Company’s Organization Structure
96 Sharia Supervisory Board’s Profiles
100 Board of Commissioners’ Profiles
106 Board of Directors’ Profiles
112 Officers Reporting Directly to the Board of Directors
116 Employee Statistics
120 Education and/or training of the Board of Commissioners, the Board of
Directors, the Committees, the Corporate Secretary, and the Internal
Audit Unit (refers to the Governance Chapter Profile of the Board of
Commissioners and Board of Directors)
132 Employee Competence Development
132 Group Structure, Subsidiaries, Associations, and Venture Companies
132 Share Listing Chronology
132 Chronological Listing of Stocks
136 Certification and Awards
142 Map of Operational Area
144 Name and Addresses of Regional Offices and Branches
150 Capital Market Supporting Institutions
150 Company’s Website

Company Identity
Name
PT Bank Tabungan Negara (Persero) Tbk.
Company Well-known Name

Bank BTN (Company)
Business Sector
Commercial Bank
Company’s Status
State-Owned Enterprise
Ownership
1. The Government of the
Republic of Indonesia : 60%
2. Local Public :10.05%
3. Foreign Public :29.95%
Date of Incorporation
February 9, 1950
Legal Basis for Establishment

Emergency Law No. 9 of 1950 State
Gazette of the Republic of Indonesia No. 1. 6,354,000,000 (six billion three Number of Employees
12 of 1950. hundred fifty-four million) shares 10.360 person
of the Republic of Indonesia, which
Authorized Capital comprise: Head Office
Rp10,239,216,000,000 (ten billion ›› 1 (one) Bicolor Series A share; and Menara Bank BTN Jl. Gajah Mada No. 1
two hundred thirty-nine million two ›› 6,353,999,999 (six billion three Jakarta 10130, Indonesia
hundred and sixteen thousand Rupiah), hundred fifty-three million
consists of: nine hundred and ninety-nine Telephone
1. 1 (one) Bicolor Series A share at thousand nine hundred and 62-21 6336789, 6332666
a nominal value of Rp500 (five ninety-nine) Series B shares.
hundred Rupiah) per share; and 2. 4,236,000,000 (four billion two Fax.
2. 20,478,431,999 (twenty billion four hundred thirty-six million) Series B 62-21 6346704
hundred and seventy-eight million shares of the Public.
four hundred thirty-one thousand Email
nine hundred and ninety-nine) Stock Exchange csd@btn.co.id
Series B shares at a nominal value Listed on Indonesia Stock Exchange
of Rp500 (five hundred Rupiah) Website
per share. Stock Listing Date www.btn.co.id
December 17, 2009
Issued and Fully Paid Capital Contact Center
Rp10,590,000,000,000 (ten billion Code BankBTNcoid
five hundred ninety million Rupiah) BBTN @BankBTNcoid
consists of: www.btn.co.id bankbtn
Company’s Milestones
1942 The Company was taken over by the

Government of Japan and renamed by
Tyokin Kyoku or the Office of Savings.
The Company was established

under the name “Postspaarbank”
1945 The Government of Indonesia took over Tyokin
Kyoku and established Office Taboengan Pos.
during the Dutch Era
1897
1946 All Office Taboengan Pos was occupied by
the Dutch and stopped working.
Government of RI re-opened 1949

Office of Taboengan Pos
1950
Name changed to “Bank Tabungan Pos” by
the Government of the Republic of Indonesia
1953
Inaugurated as a legal entity under the
Ministry of Transportation and allowed
Bank single again 1968
re-broken and
to open a Branch Office.
reopened Bank
1963
Tabungan Negara
abbreviated BTN
Name changed to
Bank Tabungan Negara
1971
1965
The Company in cooperation with
Integration of State Banks and
Perum Pos and Giro to implement the
Bank Tabungan Negara into the
Tabungan Nasional (Tabanas) and
Central Bank.
Tabungan Asuransi Berjangka (Taska)
1974
Received the task of financing public
housing from the Minister of Finance.
Established Single Bank under the name of Bank

Negara Indonesia consisting of Bank Tabungan Negara,
1976
Bank Indonesia, Bank Koperasi Tani dan Nelayan, Bank The first KPR BTN realized in Perumahan
Umum Negara, BNI 1946 and Bank Dagang Negara. Tanah Mas Kota Semarang

1986 1989 1992
Getting loans from IBRD/ World Bank First issued Bonds and early Effectively become PT Persero
amounting to USD 266.55 million was executing the activities of
signed by the Government of Indonesia. commercial banks.
2002 With an online system

1994
of real systems,
based on IBM-AS400, Obtained a license to operate as
information technology Foreign Exchange Bank.
is implemented to all
branch offices.
2001
2005 Establishment of Sharia Business Recapitulated by the Government of
Unit and opened the First Sharia Indonesia with a value of Rp 13.6 Trillion.
Branch Office in Jakarta Harmoni.
2013 2014
2008 The Company The Company together

The Company Obtained ISO 9001-2000 transformed into the with SMF signed the
Certification for upper-medium loan leading housing bank and largest Sekuritisasi.
services with service pattern 151. world-class banking.
2009 The Company participated

in One Million Houses
KPR securitization through the first Asset-
Backed Security Collective Investment Program for Public
2015
Contract (KIK EBA) in Indonesia.
The Company did an Initial Public

Offering (IPO) and listing on Indonesia
Stock Exchange (Go Public)
2016
The Company continued the transformation
agenda, “Digital Banking Periods”.
2012
The Company
conducted
2017
Right Issue. Perseroan masih melanjutkan tahapan
transformasi digital banking periods dengan
mengembangkan berbagai produk dan layanan
yang berbasis digital, salah satunya adalah
pembukaan Smart Branch Jakarta Harmoni
Company’s Brief History
PT Bank Tabungan Negara (Persero) Tbk., commonly known as Bank. In 2002, the Company was appointed as a commercial
the Company (here in after referred to as ‘the Company’) has a bank that focuses on housing finance.
long history in the banking industry in Indonesia. The Company
is established in 1897 under the name Postspaarbank. In the In 2009, the Company started to operate as a commercial
independence era, precisely in 1950, the Government of the bank and issued bond for the first time. The company listed
Republic of Indonesia changed Postspaarbank into Bank its first share on December 17, 2009 on Indonesia Stock
Tabungan Pos, which finally changed into Bank Tabungan Exchange and became the first bank in Indonesia to securitize
Negara in 1963. assets through Asset-Backed Security Collective Investment
Contract (KIK-EBA). As a bank with a focus on housing finance,
In 1974, the Company was appointed by the Government as the Company wants to help Indonesian public to actualize
the only institution to disburse Housing Loan (KPR) to the lower their vision of a dream house into reality.
middle class society, in line with the Government’s initiative
to promote its housing program for the people. In 1976, the This vision is showed by more than six consistent decades in
Company first realized the KPR in Perumahan Tanah Mas, providing various products and services in housing, especially
Semarang. In 2009, the Company started to operate as a through KPR, both Subsidized KPR for the lower middle class
commercial bank and issued bond for the first time. In 1994, segment and Non-Subsidized KPR for the upper middle
the Company obtained permit to operate as Foreign Exchange class segment. As a Bank with focus on housing finance, the

As a Bank with focus on housing finance, the

Company has also succeeded in elevating
its position into the tenth biggest bank
in Indonesia in terms of assets and loan
disbursement.
Company has also succeeded in elevating its position into Micro KPR. The year 2016 is the beginning of the Phase II
the tenth biggest bank in Indonesia in terms of assets and Transformation for the Company, i.e. digital banking period.
loan disbursement. In order to deliver the best result for the The Company has developed various products and added
stakeholders, the Company consistently puts the focus on digital-based services, such as mobile BTN, internet banking,
being the leader on housing finance, and aspires to be The and cash management.
Leading Housing Bank in Indonesia with World Class Service.
In 2015, the Company played an important role in helping the 2017 is the continuation of the transformative road for The
Government program “One Million Houses Program for the Company, into the Digital Banking year. In terms of business,
People”. The Company was appointed as one of the Banks that the Company improves the banking services by accelerating
supports the government program through KPR financing. the transformation phase in the digital era, one of which
by opening Smart Branch. The Company Smart Branch is
As an effort to accelerate the One Million Houses Program, in equipped with various services to facilitate the customer’s
2016 the Company keeps pushing the supply and demand of needs in obtaining the banking information, conducting
KPR. This is conducted by facilitating the funding for developer communication, registration, and opening accounts, as well
in a form of construction loan, or disbursement of KPR, and as non-banking transactions.
providing funding facilitation to the developer in the form of
acceleration of Subsidized KPR, Non-Subsidized KPR, and
Vision, Mission and Corporate

Culture and Values
Vision, Mission
Vision is set periodically based on the compilation mechanism of Bank Long

Vision Term Plan (RJP) in accordance with Director’s Circular Letter No. 39/DIR/
CMO/2012 on BTN Strategic and Performance System (BTN STORMS). The
To be the Leading bank Vision is stipulated in the Leadership Forum workshop attended by the Board
in Housing Finance. of Commissioners and Directors on December 4-5, 2015.
The Company set the transformation toward “The Leading Housing Bank in
Indonesia with World Class Service” by 2019.
Asset
Initial Vision New Vision The Leading Housing
Rp, T
Become a leading bank in Become a leading bank in Bank in Indonesia with
Housing Financing. Housing Financing. world class service.
1.000
Infrastructure Strong
Business People
2014 Performance
KPR Market Share : 27.8%
KPR Service Quality
5 days approval (80%) 2017 Performance
KPR Disbursmenet Digital Banking Period
IDR 152.776 units (1 Year)
2015 Interim Objektives

KPR Market Share: >28%
1.00 KPR Service Quality: 5 days approval (90%)
2014 2015 2019 2025 Year
Transformation Phase I Transformation Phase II Transformation Phase III

Year 2013 - 2015: survival period phase, Year 2016 - 2019: digital banking period Year 2020 – 2025: global playership
with the “domination of nation wide phase, with stages to be achieved period stage, with stages to be achieved
market leader” stage reached to to become the leading housing bank to gain a transformational Enterprise
dominate the national housing business. Indonesia with world-class services. Global Mindset. Requirements to be met
The requirements necessary in this phase Requirements to be met in these in these stages are: (a) size and speed
were (a) to dominate the market share in stages are: (a) dominance by speed, (b) thru network, (b) global free trade, (c)
the housing market, (b) protected market, technology enhance, (c) rapid change continuous change and (d) human and
(c) predictable change, and (d) financial and (d) human capital driven. financial driven.
capital driven.

Mission
1. To provide excellent service in housing finance and 3. To prepare and develop qualified and professional
the industry related, consumer finance, as well as Human Capital of high integrity.
small-middle enterprises finance. 4. To perform banking management in accordance
2. To increase competitive excellence through with prudence principle and Good Corporate
innovative product development, services, and the Governance to increase Shareholder Value.
latest technology-based strategic network. 5. To care for public’s needs and environment.
The current vision of the Company, ‘to be the Leading housing business in accordance with the market perceptive
bank in Housing Finance’ has been relatively achieved. and internal expertise of the Company.
The Company has 97% market share for Mass Subsidized
segment. Hence, to support the 25% growth target and The most recent Vision and Mission has been endorsed by
become the 5th Biggest Bank in Indonesia by 2020, the the Board of Commissioners and the Board of Directors at
Company needs to sharpen and broaden the Vision and the Joint Meeting of the Board of Commissioners and Board
Mission in order to strengthen the main leading role in of Directors dated December 29, 2017 and valid from 2018.
Vision
Leading and trusted bank in facilitating the

housing sector and family financial services
Mission
1. Have an active role in supporting 4. To prepare and develop qualified and

integrated housing sector, both in terms of professional human capital of high
supply and demands in Indonesia. integrity.
2. Provide excellent services to housing 5. To improve shareholder value with the
financing sector and family financial needs. focus on profitability growth improvement
3. To increase competitive excellence in accordance with the prudence principle
through innovative product and services and good corporate governance.
development, and the latest technology- 6. To care for the sustainable interest of
based strategic network. public, social, and environment.
Corporate Culture Value
To support the achievement of vision and mission, as well as

the success in the strategies, on March 3, 2016, the Company
has conducted a review of corporate culture called “SIIPS”,
and it has been implemented. Corporate Culture Value is set
periodically based on the compilation mechanism of Bank
Long Term Plan (RJP) in accordance with Director’s Circular
The true values and principles in working are the core building Letter No. 39/DIR/CMO/2012 on the Company Strategic and
of corporate culture. This values and principles are also the Performance System (BTN STORMS).
base of every human being in behaving, acting, and decision-
making in order to achieve the best results together. The The Company Corporate Culture has Corporate Culture
corporate culture values direct the behavior of organization Values that are the foundation for every Bitniz to behave in
members and are the basis in rules, policies, and organization order to achieve the Company’s vision. 5 Corporate Culture
system (“the way we do things around here”). and Values of the Company:
Sinergy Integrity
Building a synergistic cooperation with every stakeholder Consistency in mind, manner, matter, in line with the
sincerely, openly, and to encourage productive Company’s rules, code of professional conduct, and
collaboration with mutual trust and respect to achieve commendable principle of truth .
mutual goals.
Innovation Professionalism
Constantly developing new idea and continuous Visionary, competence in the field, always developing
refinement to improve added value of the itself with the latest technology so it will yield the best
Company. performance.
Spirit to Achieve
Excellence
Shows enthusiasm and strong commitment to achieve the
best results and provide services that exceed customer
expectations (internal and external) by enunciating the
important aspect of quality in every activity as well as the
calculated risk.

Each Corporate Cultural Values has 2 (two) Top of Conducts as a reference for every
the Company individual (Bitniz). Those ten main points of behavior are:
Sinergy 1. Sincere, open, and Integrity 3. Consistency and discipline

productive collaboration 4. Honest and dedicated
2. Trust and appreciate each 5. Responding to change
other
Innovation 6. Creative & innovative in Professionalism and responsible

perfecting value-added 8. Smart working and result
enhancements oriented
7. Competent, entrepreneurship, 9. Enthusiastic, Proactive,
and unyielding
Spirit to Achieve
Excellence 10. Effective, efficient, and
prioritizes customer
satisfaction
Corporate Culture Internalization

Corporate value to support the transformation is prepared improvement in the business performance and business
in order to make the Company’ cultural value as the life of process. The implementation of the work program includes:
the organization and is carried out by all the Company’s
employees. Every level gives their commitment in the form a. Socialization and communication of corporate
of time and resources governed effectively and gradually. The culture values.
transformation of Company’s cultural value starts with the b. Internalization of corporate culture values.
phase of awareness, engagement, acceptance, and ownership. c. Effectivity improvement of the leaders’ roles as the
driving force of the transformation.
The implemented work program is aimed to strengthen the d. Appointment of change agent team.
entrepreneurship oriented work culture (service and sales), e. Aligning the organization system and human resources.
performance, innovation, and efficiency so there shall be f. Implementing the program effectiveness measurement.
Strategies to Achieve the

Company’s Vision and Mission
As a bank that focuses on housing financing business, the Company has set the groundwork in 2017, to
achieve the Company’s vision and mission by setting the direction of the General Policies as follows:
The Company Transformation to realize the vision to become the leading bank
in housing finance with focus on loan quality improvement, optimization of
One Million Houses Program, development of Digital Banking service, as well
as quality improvement of Human Resource”.
To support the direction of the general policies, Grand Strategy for the corporate level has been compiled as follows:
F Sustainable value to shareholder
Loan quality improvement Credit growth focusing on

Financing growth which Increase in
housing sector by optimizing
supports bank’s focus on other operating
the One Million Houses
housing incomes
Program
C Leading in housing
finance
Prominent in service
excellence
BP Increasing strategic
management quality
Delivery Channel Optimization Improving GCG, Risk
Management, and Compliance
Strengthening credit process Strengthening collection & asset management

Operational Excellence
management
Developing strategic alliances to improve
Strengthening bank the business growth (loan program and
capital funding)
Establishing business Optimization of sales program and

subsidiaries promotions
LG Strengthening corporate culture Improving the quality of Human Resources

Strengthening the Information
Technology to support business
with digital banking basis
To support the achievement of vision and mission, as well as the success strategies, The Company has
implemented corporate culture called “SIIPS”.

Company Brand
1. The roof illustrates the main vision and mission of

the Company as a provider of Housing Loan (KPR)
for all Indonesian.
2. Two hexagons, one large and one small, symbolize
“the great protects and develops the young.”
3. The roof shaped like a room with three-dimensional
imprint symbolizes the Company’s flexibility as a
forum for the community in conducting banking
activities.
4. The Three Dimensional form of 4 Robust Pillars
symbolizes the Company’s security and flexibility.
The red line under ‘BTN’ word symbolizes confidence.
The color blue symbolizes the Company’s maturity,

experience in managing banking business and wisdom in
carrying out the main mission of national development.
The color gold symbolizes the Company’s solid credibility

in proving itself as a bank that has the public trust.
The color red symbolizes confidence as a firm bank in

running the banking business in Indonesia.
Business Sector
According to the Deed of Declaration of the Annual General 7. Receive bill for securities and perform calculations for or
Meeting of Shareholders Resolution on the Amendment of PT with third parties;
Bank Tabungan Negara (Persero) Tbk. Articles of Association 8. Provide place to store goods and securities;
No. 90 dated June 21, 2017, the Company’s purpose and 9. Perform custody activities for the interests of other
objectives are to conduct business in the Banking sector and parties pursuant to a contract;
to optimize the utilization of Company’s resources to produce 10. Make placements from client to another client in the form
high-quality services and strong competitiveness in order of securities not listed on stock exchange;
to gain/pursue profit to increase the Company’s value by 11. Conduct financing and/or other activities including sharia-
applying the principles of Limited Liability Company. To achieve principled activities, in accordance with the provisions set
the above-mentioned purpose and objectives, the Company forth by Bank Indonesia;
shall carry out the following main business: 12. Conduct factoring, asset securitization, credit card
business, and trustee activities;
1. Collect funds from public in the form of demand deposit, 13. Perform foreign exchange in accordance with provisions
time deposit, deposit certificate, savings, and/or other by the authorized institution;
equivalent form; 14. Conduct equity participation in bank or other company in
2. Grant loan; the financial sector;
3. Issue debt instrument; 15. o.Conduct temporary investments to overcome credit
4. Purchase, sell, or guarantee on Company’s risk or for the failure, including failure of sharia principle based
Company’s benefit and at the behest of its customer: financing, on the terms that the Company shall withdraw
its investment, in accordance with the provisions set
›› Drafts, including draft accepted by Bank with expiration forth by Bank Indonesia;
date no longer than the practice of said securities trading; 16. Act as the founder and the trustee for pension fund in
›› Debt instrument and other trading instruments with accordance with rules and legislation;
expiration date no longer than the usual practice of said 17. Conduct financial services, commercial banking, and other
securities trading; investment banking;
›› Treasury Bills and Government Securities; 18. Conduct business activities based on Sharia Principle,
›› Bank Indonesia Certificates (SBI); in accordance with provisions set forth by the rules and
›› Bonds; legislation;
›› Futures with maturity in accordance with rules 19. Conduct other activities commonly undertaken by banks
and legislation; with regard to the provisions of rules and legislation.
›› Other valuable instruments with maturity in accordance
with rules and legislation. In addition to the main business activities, the Company may
perform other supporting business activities in the framework
5. Transfer money both for the Company’s good interest and of optimizing the main business resources
customer’s; as long as the activities are in accordance with the
6. Place funds on, or borrow from, or lend funds to other rules and legislation.
banks, using mail, communication, or sight draft, check,
or any other means;

Products and Services Review
01 1. Consumer Loan Products

›› Housing Loan
a. KPR BTN Subsidi
Consumer Banking Housing Loan Program from the Ministry of Public Works and Housing of the
Republic of Indonesia, which is intended for the Low-Income Communities
(MBR) with low-interest rates and low installments in order to buy
prosperous houses and flats.
b. KPR BTN Mikro
This product facilitates the purchase of a land or house, or house
renovation gradually. The product is prioritized for the public who works
in the informal sector.
c. KPR Non Subsidi
Housing loan for the middle-upper class customers. Non-subsidized Housing
Loan services consist of BTN Platinum Housing Loan, BTN Apartment Loan,
and Shop Ownership Loan.
-- KPR BTN Platinum
Housing Loan for house purchase from developer or non-developer, both
for a new house or used house, ready stock or indent, or loan take over
from other Banks.
-- KPA BTN
Apartment Loan for apartment purchase from developer or non-
developer, both for a new apartment or used apartment, ready stock or
indent, or loan take over from other Banks.
01 -- KP Ruko BTN
Shop ownership loan to buy a shop unit, business unit, office, or kiosk
with fast and easy services.
Consumer Banking d. Other Housing-Related Loan
-- Kredit Agunan Rumah BTN
Loan facility for various consumer needs by guaranteeing house/
apartment/shop/house.
-- Kredit Bangun Rumah BTN
Loan facility for those who want to build on their own land.
-- Bantuan Perumahan PNS
Housing support facilities for Civil Servants from the Housing Savings
Advisory Board for Civil Servants (Bapertarum-PNS), with several
choices: Additional Housing Advances (TBUM) in the form of loans or
Housing Savings Assistance (BTP) in the form of the fund (grant).
-- Benefit of Employment BPJS Supplemental Services –
Housing Advances Loan
Housing advances loan for Employment BPJS who applies for BTN
Subsidized Housing Loan.
›› Non-Housing Loan
Non-Housing Consumer Loan is one of the Company’s focus on improving
the business growth, because this potential market can survive the global
financial crisis. This loan has a large and scattered customer base. Non-
Housing Consumer Loan products include BTN Small Loan (Kring BTN), BTN
Small Loan Plan (Pre-Pension Kring BTN), BTN Small Loan Pension (Pension
Kring BTN), BTN Self-financing Loan, Employee Loan.
a. Kredit Ringan BTN (Kring BTN)
Loan facility that is targeted for company/institution employee to fulfill their
needs without collateral. The Employee’s Statement shall suffice.
b. Kredit Ringan BTN Pra Pensiun (Kring BTN Pra Pensiun)
Loan facility granted to debtors/prospective debtors with the fixed income
(salary and pension) as the repayment source. The salary may or may not be
disbursed through the Bank, and shall be utilized for consumptive purposes.
The financing period may extend through the debtor’s pension period.
c. Kredit Ringan BTN Pensiunan (Kring BTN Pensiun)
Loan facility that is targeted for Pensioner of Civil Servant, Indonesian Army/
Police, and their widow/widower. The pension benefit shall be disbursed
through an account in the Company.
d. Kredit Swadana BTN
Loan facility that is targeted for customer with the guarantee in the form
of savings or deposits in the bank, with the maximum loan 90% of the fund
held by the customer with competitive interest rate, easy and fast process,
flexible term time up to 1 year and can be extended.
e. Kredit Pegawai
Soft loan facility for employee who has meet requirements.

01 2. Consumer Saving Products

›› Tabungan Konsumer
a. Tabungan BTN Batara
Consumer Banking Multipurpose saving completed with transaction facilities to support the
customer’s financial activities. BTN Batara Savings is classified based on
the targeted segment:
-- Tabungan BTN Batara
Segmented savings for customer who receives the salary crediting
through the Company.
-- Tabungan BTN Batara Pensiun
Savings for pensioners as the facility to receive the pension fund every
month, paid by PT Taspen (Persero) and PT Asabri (Persero).
-- Tabungan BTN Batara Pendidik
Segmented savings for customer who works as an educator in the
institutions that collaborate with the Bank.
b. Tabungan BTN Prima
Investment saving with various benefits to provide a better
life for the customer.
c. Tabungan BTN Junior
Savings Education for children up to 12 years old.
d. Tabungan BTN Juara
Savings Education and transactions adapted to the need of the young
generation (12-23 years).
e. TabunganKu
Individual savings with easy requirements to promote the saving culture
and improve public welfare.
f. Tabungan Simpanan Pelajar (Simpel)
Saving for students with easy and simple requirements as well as interesting
features, in order to educate and include finance to promote the saving
culture since early stage.
g. Tabungan BTN e’BATARAPOS
Easy and comfortable savings for the public because the transaction can be
conducted online in all Post Office throughout Indonesia.
h. Tabungan BTN Cermat
Saving that facilitates access and easiness of banking transaction through
EDC and phone account throughout the country without having to go to
Bank. This saving is a part of Laku Pandai Program.
i. Tabungan BTN Perumahan
Tabungan yang diperuntukkan dalam rangka membantu lebih banyak
masyarakat di Indonesia menabung dengan tujuan membeli rumah,
khususnya rumah pertama.
j. Tabungan Rekening Dana Nasabah (RDN)
An account from the Bank for Investor in order to conduct transaction in
the capital market.
k. Tabungan BTN siap!
The savings to meet the customers’ future planning needs.
01 ›› BTN Retail Deposit

BTN Deposit is a time deposit in Rupiah or foreign currency. The BTN Deposit
has interesting benefit, such as attractive interest, interest that could be
Consumer Banking capitalized to the principal, the interest that could be utilized to pay for the
housing loan, electricity and phone bills. The placement period varies from 1
month, 2 months, 3 months, 6 months, 12 months, and 24 months, and the
deposit can be utilized as the loan guarantee (Self-Financing Loan).
02 1. Commercial Loan Product

›› Housing Loan
a. Kredit Modal Kerja (KMK) Konstruksi BTN
Commercial Banking Loan facility that is targeted for Developers. This loan functions as the capital
to fund horizontal construction (houses, offices, kiosks, etc.) and vertical/
high-rise building (flats, apartments, condotels, office buildings, etc.) and
the facilities and infrastructures, as long as it has a feasible rating to get
loan. The Company provides 80% of the maximum total cost of construction.
b. Kredit Pemilikan Lahan (KPL) BTN
Loans granted to the developers for the purchase of simple/subsidized
housing land, in which the construction is funded by the Company.
›› Non-Housing Loan
The Company Non-Housing Loan consists of MSME Loan Products, Linkage,
and Corporate Programs and Loans. MSME Loan includes KUR BTN, KUMK,
Kredit Investasi, KMK, and KMK Kontraktor. Linkage Program covers the loan
to Rural Banks and Savings and Loans Cooperatives (Cooperatives). Whereas
Corporate Loans consists of Kredit Investasi, Kredit Modal Kerja BTN, Kredit
Modal Kerja Kontraktor and Kredit Sindikasi.

02 a. Kredit Usaha Mikro dan Kecil (KUMK) BTN

Loan for customer who has productive business in line with the requirements
of MSME. The loan may be utilized to fund the capital and/or investment
Commercial Banking with a maximum loan up to Rp 5 billion.
b. Program Kemitraan
Program to increase the competence of small business in order to become
strong and independent.
c. Kredit Usaha Rakyat (KUR)
Capital loan and/or investment granted to debtor in the MSMEs status, in
a productive and viable business field, but do not have additional collateral
or sufficient additional collateral.
d. BTN Kredit Linkage
Loan to facilitate legal entities i.e. Rural Banks (BPR) and Cooperatives, to
be disbursed to Micro, Small, and Medium Enterprises sector.
e. Corporate Loan
-- Kredit Modal Kerja (KMK) BTN
Customer loan for trading and services or procurement industry, from
the production process to the selling process. The capital needs granted
will be 80% of total needs, and up to 36 (thirty-six) months period.
-- Kredit Investasi BTN
Funding targeted for customer to finance their goods or investment in
the form of new investment, expansion, modernization, rehabilitation, or
special needs related to investment.
-- Kredit Modal Kerja Kontraktor (KMK Kontraktor)
Capital loan to help facilitate the contractor to finish their job
based on specified contract with the amount up to 60% of the
value of the contract.
-- Kredit Sindikasi
Loan granted from more than one bank simultaneously
to certain debtor.
2. Consumer Saving Products

›› BTN Demand Deposit
BTN Demand Deposit is a saving with high flexibility, the withdrawal shall be
performed anytime through Check/BG and other media, or through BTN Cash
Management System (i-Cash)
BTN Demand Deposit by Ownership

a. Giro Perorangan
Personal demand deposit is an individual account, opened by the individual,
including those who have business. The withdrawal shall be performed
through Check/BG, ATM and other withdrawal media.
b. Giro Lembaga
Corporate demand deposit is an account under government/state institution,
business entity/legal entity (including Bank and
Rural Bank) and all business entities or legal entities governed
by the Commercial Laws.
c. Giro Gabungan (Joint Account)
Joint account is an account that is owned by more than one person,
which can be a combination of institution/agency, individual, and/or
combination of both.
02 BTN Demand Deposit by Currency

a. Giro BTN Rupiah
BTN Rupiah Demand Deposit is a third party saving in Rupiah. The withdrawal
Commercial Banking shall be performed by using Check/BG, other withdrawal media, or BTN Cash
Management System (i-Cash).
b. BTN Foreign Currency Demand Deposit
BTN Foreign Currency Demand Deposit is a third party savings in foreign
currency (USD) which may be withdrawn by using a Purchase Order.
›› Time Deposit for Institutions

Time deposit for institutions is a time deposit for investment in Rupiah or
Foreign Currency, with attractive and competitive interest rates.
a. Deposito BTN Rupiah
BTN Rupiah Deposit is a time deposit for investment in Rupiah, with
placement period of 1, 2 3, 6, 12, and 24 months. The savings shall only be
withdrawn in a certain period, under the agreement of the customer and
the bank.
b. Deposito BTN Valas
BTN Foreign Exchange Deposit is a time deposit for investment in foreign
currency (USD) with placement period of 1, 2 3, 6, 12, and 24 months. The
savings shall only be withdrawn in a certain period, under the agreement
of the customer and the bank.
c. Deposito On Call Lembaga
BTN On Call Deposit is a time deposit in Rupiah and foreign currency (USD),
with a minimum period of 1 day and maximum 35 days. The disbursement
shall only be conducted on the maturity date, in accordance with the
agreement between the customer and the bank.
03 1. Sharia Financing Products

Sharia Business Unit Financing Products are categorized into Consumer Finance
and Commercial Finance. Sharia Business Financing Products is described as
Sharia Business Unit follows:

03 ›› Consumer Funding
a. KPR BTN Sejahtera iB
BTN Prosperous iB Housing Loan is a BTN Sharia financing product to
Sharia Business Unit purchase a house for Low-Income Communities (MBR) with low margin,
low and fixed installments throughout the loan term, with a “Murabahah”
(deed of sale) in order to own a House, Flat, or apartment as part of
government program.
b. KPR BTN Platinum iB
BTN Platinum iB Housing Loan is a financing product to individual
customer with a “Murabahah” (deed of sale), with fixed installments
throughout the loan period in order to own a House, Shop, Office, Flat, or
Apartment, both new and used.
c. Pembiayaan Bangun Rumah BTN iB
Funding for individual customer with “Murabahah”(deed of sale), in order
to build or renovate residential buildings.
d. KPR BTN Indent iB
Funding product to facilitate the purchase of a house, shop, office, flat/
apartment based on orders, for individual customer with the principle of
‘istishna’ (deed of sales based on orders), with monthly installments in a
certain period.
e. Pembiayaan Kendaraan Bermotor (PKB) BTN iB
Funding for individual customer with Murabahah (deed of sales) in order
to own a vehicle for personal purposes.
f. Pembiayaan Tunai Emas (Tunas) BTN iB
Funding for customer to fulfill the customer’s financial needs based on
Qardh, Rahn, and Ijarah granted by the Bank to the Customer based on
the agreement and the Letter of Lien is attached.
g. Pembiayaan Multijasa BTN iB
Funding with “Kafalah bil Ujroh” letter to finance various needs of services
for the Customer, such as Education fund package, wedding fund package,
traveling fund package, pilgrimage (umrah/haji plus) package, medical
fund package, other services package that is in line with Sharia principles.
h. Pembiayaan Multimanfaat BTN iB
Individual consumptive financing with “Murabahah” in order to purchase
various types of goods that are useful and not contrary to the applicable
laws, such as electronics, furniture, and household appliance, as well as
other necessities.
i. Pembiayaan Talangan Haji
Financing for individual customer with “Qard” contract in order to
purchase the “Cost of Haji (BPIH)”.
›› Commercial Funding
a. Pembiayaan Konstruksi BTN iB
Financing product to provide the capital expenditure needs for housing
developer in order to construct the housing and industrial projects with
“Musyarakah (cooperation)” principle. The installment plan is based on the
customer cash flow ability.
03 b. Pembiayaan KUR BTN iB

Financing with the “Musyarakah (cooperation)” or “Murabahah (deed of
sales)” granted to productive business in the category of micro, small,
Sharia Business Unit and middle enterprises in the form of individual and Linkage Institution to
fulfill the capital and investment needs. The installment plan is based on
the customer cash flow.
c. Pembiayaan Modal Kerja BTN iB
sales)” granted to institutions or companies to meet the needs of capital
in the trading and services industry. The return installment is based on
the customer cash flow projection.
d. Pembiayaan Investasi BTN iB
sales)” granted to agencies, institutions, or companies to meet the needs
for capital expenditure in order to rehabilitate, modernize, expand, or
increase the business capacity. The return installment is based on the
customer cash flow projection.
e. Pembiayaan Sindikasi BTN iB
Financing in the form of syndication or Club Deal by more than one Bank
to Customer whose financing amount is too large to be granted by one
Financial Institution/Bank/Agency. Non-Bank Financial Institutions (LKBB)
with choices of “Mudharabah (Profit Sharing)”, “Musyarakah (cooperation)”,
“Murabahah (deed of sales)”, or “Ijarah (Rental)”.
2. Sharia Savings Products

›› Sharia Demand Deposit
a. Giro BTN iB
Saving product with the principles of “Wadiah (entrusted)” for the financial
operational needs of the customer, by giving lucrative bonus for the
customer savings, in order to facilitate the business activities.
b. Giro BTN Prima iB
Saving product with the principles of “Mudharabah Mutlaqah (Profit
Sharing)” for investment. The customer will get the share of the lucrative
profit in order to facilitate the business activities.
›› Sharia Savings
a. Tabungan BTN Batara iB
Savings with “Wadi’ah (deposit)” contract for daily banking transaction
with lucrative benefit for the customer and administration fee that does
not reduce the principal savings.
b. Tabungan BTN Prima iB
Savings with a “Mudharabah Mutlaqah (Profit Sharing)” principle, intended
for investment by providing a lucrative and competing outcome for
customers, and administration fee that does not reduce the principal
savings.
c. Tabungan BTN Haji iB dan Umroh iB
This savings product is intended to fulfill the dream to do a Pilgrimage
(Haji and Umroh) by Mudharabah (Profit Sharing) contract. The outcome is
lucrative and beneficial and competitive for the customer.

03 d. TabunganKu iB
Saving product with Wadi’ah (Entrusted) principle which has attractive
bonus. Issued simultaneously by banks in Indonesia in order to foster the
Sharia Business Unit culture of saving and to improve the public welfare.
e. Tabungan BTN Qurban iB
Savings to realize the qurban Prayer, by Mudharabah Mutlaqah (Profit
Sharing), by giving a lucrative and competing outcome.
f. Tabungan BTN Simpel iB
Saving product destined for Students up to 17 years old who do not have
Identity Card yet. The initial deposit is very small and it still gives lucrative
bonus.
g. Tabungan BTN Emas iB
Savings with “Mudharabah Muthlaqah” contract to facilitate the customer
in preparing fund for buying gold and other necessities in the future.
›› Sharia Deposits
a. Deposito BTN iB
Savings for safe, comfortable, and reliable investment in a certain period
of time. Based on “Mudharabah Mutlaqah (Profit Sharing)” principle. The
deposit may be in the individuals or companies’ name.
b. Deposito On Call iB
Savings for safe and reliable investment in a shorter period of time. Based
on “Mudharabah Mutlaqah (Profit Sharing)” principle. The deposit may be
in the individuals or companies’ name.
04 The Company has Banking Services, such as customer card, wealth management,
electronic channel, and other banking services. The customer card is in the form
of debit and credit card. Wealth management is in the form of savings products,
Banking Services securities (ORI, Sukuk, and SBB), Mutual Funds, and Bancassurance. The electronic
channel consists of ATM and KiosK products, CDM, Internet Banking, Cash
Management, SMS Banking, and Mobile Banking. Other banking services provided
are trading services, administration services, and other services.
The services provided by the Company based on the Consumer Banking business
activities are as follow.
1. Customer Card
›› Kartu Debit BTN
Functioning as ATM cards as well as debit cards that to facilitate the
customer to pay various transaction and needs in shop with Visa logo
throughout the world. It is also easy, reliable, and fast in shopping online
through various online merchant (for some types of BTN ATM cards). BTN
Debit has many variants, tailored to the savings segment. The Cards Debit
include TabunganKu ATM, Institution Card, BTN Debit Visa Regular, BTN Visa
e’Batarapos, BTN Visa Winner, BTN Debit Visa Sharia, BTN Debit Visa Gold,
and BTN Debit Visa Platinum for the Company priority customers.
04 ›› Kartu Kredit BTN

BTN Credit Card helps to fulfill the customer’s needs and can be used for
transaction in stores with Visa logo all around the world easily, securely,
Banking Services and quickly.
›› Kartu Suka-suka BTN

The first Debit Visa with card designed for the customer or community
specifically. This card is able to perform transaction in stores with VISA
network all around the world.
›› Debit BTN Online VBV (Verified by Visa)

The BTN Online Debit VBV (Verified by Visa) facilitate the customer to
conduct transaction online with BTN Sharia Debit (e-Commerce)
2. Wealth Management
The Company’s wealth management is improving by providing increase on fee-
based income, especially the fee-based income from sales and non-banking
products. The Company improves the product and services by opening the BTN
Priority services to complement with the wealth management business. This
is marked by the launching of Bancassurance and Mutual Funds products in
cooperation with known insurance partner and Investment Banking professional
in their field.
Perseroan cooperates with PT Zurich Topaz Life, PT Asuransi Jiwasraya (Persero),

PT Asuransi Jiwa Generali Indonesia, PT Asuransi Jiwa Sinarmas MSIG, and PT
FWD Life Indonesia for Bancassurance products. The Company cooperates with
PT Trimegah Aset Manajemen, PT Bahana TCW Investment Management, PT
Manulife Asset Management Indonesia, PT Schroder Investment Management
Indonesia, and PT Danareksa Investment Management for Mutual Funds
products. The Company also becomes the seller of Government Bonds
completely. The Company provides the Sukuk Retail Government Bonds Series
SR 006, Retail Saving Bonds Series SBR 001, Retail Government Bonds Series
ORI 011, Sukuk Retail Government Bonds Series SR 007, and Retail Government
Bonds Series ORI 012. Sukuk Retail Government Bonds Series SR008, Retail
Saving Bonds Series SBF002, Sukuk Savings Series Seri ST001, and Retail
Government Bonds Series ORI013, Sukuk Retail Government Bonds Series
SR009, and Retail Government Bonds Series ORI 014.
BTN Priorities Services consist of Executive Lounge, Airport Handling, Good

Living BTN Priorities Magazine, Merchant Discount, Birthday Gift, Holiday Gift,
Welcoming Pack, Priority Banking Officer/Priority Banking Manager, Meeting
Room, SMS Market Update, E-Consolidated Statement, Safe Deposit Box, and
Priority Event.
3. Electronic Channel ATM

The Automatic Teller Machine (ATM) provides cash withdrawals with denomination
of Rp50,000 and Rp100,000, spread throughout Branch Offices and premium
locations, such as ATM Gallery at Malls, shopping centers, offices, markets, and
houses to facilitate the customer in doing transaction. The network is always
online (24/7).

04 4. CDM (Cash Deposit Machine)

ATM machine services to receive cash deposit to facilitate fast and real-time
transaction. The machine is able to receive money with denomination of
Banking Services Rp20,000, Rp50,000, and Rp100,000.
5. ATM Non Tunai (Kiosk)

A compact and modern machine with touchscreen. It looks similar to an ATM
machine, but does not facilitate cash withdrawal. The machine functions as
promotion media and provides non-cash financial transactions.
6. SMS Banking
Banking services application for individual customer for the convenience of
conducting financial transactions (non-cash) and non-financial transactions
anywhere and everywhere by using a mobile phone. The application can
be accessed by sending text message to 3555 or by USSD (Unstructured
Supplementary Service Data) command. Customer may register through BTN
ATM machine or by contacting Customer Service at branch offices.
7. Mobile Banking
Banking application for individual customer to conduct financial transaction
(non-cash) and non-financial transactions anywhere and everywhere using the
mobile phone. The application can be accessed by downloading the BTN iMobile
application from Google Play, Blackberry World, and Apple Store. The connection
uses internet data so it is cheaper and more efficient. The data tariff follows the
provisions of the network provider.
8. Internet Banking
Banking application for individual customer to obtain financial information and
conduct self-managed banking transaction using the internet. Website: https://
internetbanking.btn.co.id Register through the BTN ATM machine or by contacting
the Customer Service at branch office. The data tariff follows the provisions of
the network provider.
9. Virtual Account
The identification number service for the end user of a company that has been
cooperating with the Company both for individual customer and non-individual
customer to identify fund receipt.
10. Electronic Data Capture (EDC)

The service is similar to a mini ATM that functions as the means to provide
transactions and means of payment by putting the card inside or by swiping the
ATM Card (both Debit and Credit) in a bank or between banks, completed with
other payment facilities. It also connects real-time.
11. Cash Management

Special services for institution customer to perform self-managed financial
transaction by using the internet. Website: https://cashmanagement.btn.co.id
Register by contacting the Customer Service at the nearest branch office. The
data tariff follows the provisions of the network provider.
04 12. Branchless Banking

Banking services for the customers that are performed outside the bank offices’
coverage area through the cooperation of information technology network
Banking Services utilization with telecommunication company; and or cooperation with agents
acting on behalf of the bank, in order to expand the range of banking services and
promote the realization of financial services without offices for inclusive finance.
It is called LAKU PANDAI.
13. Jasa dan Layanan Perbankan Lainnya

In addition to disbursing loan and collecting third-party funds, the Company
also provides other consumer services to improve fee-based income, such as:
Domestic money transfer, remittance, foreign currency exchange, safe deposit
box, bill payment (telephone, electricity, and water), Internet and TV cable
payment, flight and train tickets purchase, and top up.
Moreover, as a provider of banking total solution to the institutional customer,

the Company provides services for the institutional customer such as:
›› BTN Bank Guarantee

This is a statement issued by the bank at customer’s request to guarantee
certain risk that may arise if the customer does not perform its obligations
(breach of contract) to the party receiving guarantee.
›› BTN Cash Management

BTN Cash Management is a financial management service for institutional
customer (with demand deposit account) to self-managed their financial
transaction (mutation and balance monitoring, overdraft printing, transfer,
operational cost payment, employee payroll, multi debit, cash pooling,
and cash distribution) by using internet connection to make it easier, more
effective, and more efficient.
›› Virtual Account BTN

BTN Cash Management is a financial management service for institutional
customer (with demand deposit account) in the form of virtual account. This
account shall be utilized by the customer/partner of this particular institution
customer to pay the bill by using any bank. The institution customer shall
monitor the payment online real-time.
›› Transfer Management
Transfer Management is a financial service for institutional customer to
assist in conducting online institutional fund transfer. The transfer may be in
the form of In-house transfer (between accounts), Domestic transfer (LLG/
Clearing, and RTGS), and International Fund Transfer (transfer to another
bank both domestically or abroad in foreign currency). The transfer may be
in single currency (the recipient received the same currency being sent) or
multi-currency (the recipient received different currency from the currency
that is being sent).

04 ›› Payment Management
Payment management is a form of bank cooperation with the customer to
assist the customer in managing payment and bill, such as:
Banking Services a. BTN Online Edu Payment/SPP
b. Edu payment is a facility for educational institution to receive the
education payment and other payment related to the education online
real time.
c. Bill Payment (telephone, electricity, water, gas, etc.)
d. Tax Payment
e. Purchase of payment for Pertamina products
f. Payment of Employment BPJS Subscription
g. Payment of Health BPJS Subscription
h. Pension Payment (Taspen dan ASABRI)
i. Hospital Bill Payment
j. Bank Operational I and II
›› BTN Payroll Service

Payroll Service is a form of bank cooperation with the customer to help
customer pay the employee’s wage or salary.
14. Sharia Business Unit Services

›› BTN Sharia Debit Visa
The card facility to provide easiness for customer through ATM, such as
cash withdrawal and transfer. The transaction may be performed in all the
Company ATM, ATM Bersama (Joint ATM), Prima (Prime), Visa and Plus. The
transaction may be in the form of shopping in merchant with Visa logo in
the country and abroad.
›› Transfer or Remittance
The facility to send money real-time to other BTN and BTN Sharia account,
and to other Banks by using SKN, RTGS, Link, ATM Bersama (Joint ATM), and
Prima (Prime).
›› BTN Cash Management

Internet-based services by using web browser to facilitate customer in
managing the banking activities independently, effectively, and efficiently.
›› BTN iB Payment Point

Fasilitas layanan bagi nasabah untuk memudahkan dalam membayar tagihan
rutin dan tetap seperti tagihan pembayaran uang pendidikan.
›› BTN iB Payrol
Services used by the company, institution, and individual in managing payroll,
Holiday Allowance (THR), bonus, and other routine financial needs of the
employee.
04 ›› The Cost of Haji Receipt

Service to provide certainty and easiness to obtain the departure sit of haji
pilgrimage by online system from Siskohat.
Banking Services
›› BTN iB SPP Online
Services for Universities/Schools in order to provide delivery channel to
accept the payment for education fee in real-time and online.
›› BTN iB Operational Development Program

The Bank provides this program to the Institutional Customer in the form
of fund, goods, or other facilities to support the operation of Customer
with certain requirements, agreed upon by the Bank and the Customer
while maintaining the principles of prudence and Good Corporate
Governance (GCG).
›› BTN iB Bank Guarantee

This service provides the guarantee payment in a certain amount of money
to the receiving party, in the interest of specified transactions/projects that is
performed by the Customer. This guarantee is agreed upon in the Customer’s
“Kafalah (Guarantee)” contract.
›› BTN iB Safe Deposit Box

A box specially designed with certain sizes and complete with safety system
to ensure the safety of valuables or important documents. The purpose is to
store the valuables/important documents away from fire, robbery, etc. The
safe deposit box uses the “Ijarah (Rent)” contract.

Shareholder Composition
Directors, to approve amendments in Articles of Association

The Republic Public 40% including changes in the capital, merger approval, acquisition
of Indonesia and dissolution of the Company, to file a petition of bankruptcy
and liquidation as well as to request report and explanation on
60% Local public 10.05% certain matters to the Company’s Board of Commissioners and
Directors, with regards to the prevailing rules and legislations,
Foreign public 29.95% especially in the Capital Market sector.
On December 31, 2017, the Republic of Indonesia has

The Republic of Indonesia has one Bicolor Series A share. 6,354,000,000 Common Shares, and 1 Bicolor Series A
Bicolor Series A Share gives its shareholder a special right that Share, which has special voting rights, bringing its share
is not owned by any other shareholders, i.e. to approve the ownership to 60%.
appointment and dismissal of Board of Commissioners and
In details, the Company shareholdings are as follows: 31 December 2017
No Public Shareholder Total Shares

Shares %
1 The Republic of Indonesia 1 6,354,000,000 60.00%
2 Public
Local public
Individual 8,214 159,635,827 1.51%
Employee 1,229 18,225,800 0.17%
Cooperatives 2 235,000 0.00%
Foundation 10 15,597,433 0.15%
Pension Fund 65 57,567,127 0.54%
Insurance 70 353,970,781 3.34%
Limited Liability Company 46 198,025,989 1.87%
Mutual Funds 159 261,281,799 2.47%
Sub Total 9.795 1,064,539,756 10.05%
Foreign public
Foreign Individual 37 8,534,840 0.08%
Foreign Business Entity 647 3,162,925,404 29.87%
Sub Total 684 3,171,460,244 29.95%
Total 10,480 10,590,000,000 100.00%
Details of Top 20 Shareholders of BBTN

The 20 Shareholders other than the Government of the Republic of Indonesia is:
No Name Shares Status

Shares %
1 DJS KETENAGAKERJAAN PROGRAM JHT 137.239.308 1,30 Limited Liability Company
2 PT. PRUDENTIAL LIFE ASSURANCE - REF 137.208.800 1,30 Insurance
3 JPMCB NA UCITS CLT RE-HANDELSBANKEN 129.500.000 1,22 Foreign Business Entity

TILLVAXTMARKNAD TEMA
4 NT TST CO S/A LSV EMERGING MARKETS EQUITY FUND, LP 92.008.000 0,87 Foreign Business Entity
5 JPMCB NA RE-SWEDBANK ROBUR GLOBAL EMERGING MARKETS 66.922.500 0,63 Foreign Business Entity
6 CITIBANK NEW YORK S/A DIMENSIONAL EMERGING MARKETS 65.720.027 0,62 Foreign Business Entity
VALUE FUND
7 UBS AG LDN BRANCH A/C CLIENT 61.139.430 0,58 Foreign Business Entity
8 BBH BOSTON S/A VANGRD EMG MKTS STK INFD 58.617.100 0,55 Foreign Business Entity
9 DB LDN GPF CLT OMNI FULL TAX 57.763.870 0,55 Foreign Business Entity
10 CITIBANK NEW YORK S/A EMERGING MARKETS CORE EQUITY 57.527.635 0,54 Foreign Business Entity
PORTFOLIO OF DFA INV DIMENSIO
11 JPMCB NA RE-VANGUARD TOTAL INTERNATIONAL STOCK 46.074.797 0,44 Foreign Business Entity
INDEX FUND
12 PICTET AND CIE (EUROPE) S.A., LUXEMBOURG S/A PICTET 43.095.500 0,41 Foreign Business Entity
EMERGING MARKETS
13 SG/SGBTLUX/PIO FD GLB SEL 42.336.200 0,40 Foreign Business Entity
14 SSB IZQH S/A GMO EMERGING DOMESTIC OPPORTUNITIES FD 42.079.500 0,40 Foreign Business Entity
15 JPMCB NA RE-INVESTERINGSFORENINGEN SYDINVEST 40.594.000 0,38 Foreign Business Entity
16 BNYM S/A ACADIAN EM MKTS SM ALL CAP EQ FD LLC 39.636.900 0,37 Foreign Business Entity
17 PT AIA FINL - UL EQUITY 37.636.100 0,36 Insurance
18 HSBC BANK PLC RE: LXG/HSBC GLOBAL INVESTMENT FUNDS 37.538.700 0,35 Foreign Business Entity
ASIA EX JAPAN EQUITY SMALLER
19 RBC ISB S/A ROBECO CAPITAL GROWTH FUNDS 36.616.500 0,35 Foreign Business Entity
20 SSB 2Q27 S/A ISHARES CORE MSCI EMERGING MARKETS ETF 36.297.276 0,34 Foreign Business Entity
Shareholders Holding Equal to or More Than 5% of Shares

With the exception of The Government Of The Republic Of Indonesia, there is no shareholder with shareholding more than 5%.
Shareholdings of Directors and Board of Commissioners
No Position Name Shares % Shareholdings

Board of Commissioners
1 President Commissioner I Wayan Agus Mertayasa - 0,0000000%
2 Independent Commissioner Kamaruddin Sjam - 0,0000000%
3 Independent Commissioner Arie Coerniadi - 0,0000000%
4 Independent Commissioner Lucky Fathul Aziz Hadibrata - 0,0000000%
5 Commissioner Sumiyati - 0,0000000%

No Position Name Shares % Shareholdings

6 Commissioner Maurin Sitorus - 0,0000000%
7 Commissioner Iman Sugema - 0,0000000%
8 Commissioner*) Garuda Wiko - 0,0000000%
DIrector Shares % Shareholdings
1 President Director Maryono 98.500 0,0009301%
2 Director Iman Nugroho Soeko - 0,0000000%
3 Director Adi Setianto - 0,0000000%
4 Director Oni Febriarto Rahardjo - 0,0000000%
5 Director**) R. Mahelan Prabantarikso 64.000 0,0006043%
6 Director***) Nixon L.P. Napitupulu - 0,0000000%
7 Director****) Budi Satria - 0,0000000%
8 Director*****) Dasuki Amsir - 0,0000000%
Total 162.500
*) Appointed as an Independent Commissioner of PT Bank Tabungan Negara (OJK) for the Fit and Proper Test and in accordance with the prevailing rules
(Persero) Tbk based on the Annual GMS Resolution dated March 17, 2017, and legislation.
effective immediately after obtaining the approval from Financial Services ****) Appointed as a Director of PT Bank Tabungan Negara (Persero) Tbk
Authority (OJK) for the Fit and Proper Test and in accordance with the based on the Annual GMS Resolution dated March 17, 2017, effective
prevailing rules and legislation. immediately after obtaining the approval from Financial Services Authority
**) Appointed as a Director of PT Bank Tabungan Negara (Persero) Tbk (OJK) for the Fit and Proper Test and in accordance with the prevailing rules
based on the Annual GMS Resolution dated March 17, 2017, effective and legislation.
immediately after obtaining the approval from Financial Services Authority *****) Appointed as a Director of PT Bank Tabungan Negara (Persero) Tbk based
(OJK) for the Fit and Proper Test and in accordance with the prevailing rules on the Annual GMS Resolution dated December 28, 2017, effective
and legislation. immediately after obtaining the approval from Financial Services Authority
***) Appointed as a Director of PT Bank Tabungan Negara (Persero) Tbk (OJK) for the Fit and Proper Test and in accordance with the prevailing rules
based on the Annual GMS Resolution dated March 17, 2017, effective and legislation.
immediately after obtaining the approval from Financial Services Authority
Public Shareholders with Shareholdings Less Than 5%
No Public Shareholder Total Shares

Local public Stock %
1 Individual 8,214 159,635,827 1.51%
2 Employee 1,229 18,225,800 0.17%
3 Cooperatives 2 235,000 0.00%
4 Foundation 10 15,597,433 0.15%
5 Pension Fund 65 57,567,127 0.54%
6 Insurance 70 353,970,781 3.34%
7 Limited Liability Company 46 198,025,989 1.87%
8 Mutual Funds 159 261,281,799 2.47%
Sub Total 9,795 1,064,539,756 10.05%
Foreign public
1 Foreign Individual 37 8,534,840 0.08%
2 Foreign Business Entity 647 3,162,925,404 29.87%
Sub Total 684 3,171,460,244 29.95%
Total 10,479 4.236,000,000 40.00%
Company’s Organization Structure
Facing the increasingly competitive

business climate and competition, the Board of Commissioners
Company continuously performs strategic
measures in various field to conduct more
effective and efficient bank operations.
In line with the Company’s business
transformation, the Directors has
made adjustments to the organization
structure in order to execute the business Sharia Supervisory Commercial
Consumer Banking
Distribution
Board Banking Network
initiatives and operational process more
effectively. On May 29, 2017, Directors Oni Febriarto Budi Satria Dasuki Amsir
has stipulated the Amendment to the Rahardjo
Directors’ Resolution Number: 04/

KD/DIR/SIPD/2017 on Head Office
Organization Structure, with the prior Commercial Subsidized
approval of the Board OF Commissioners. Digital Channel
Funding & Services Mortgage
Anton Rijanto Hirwandi Gafar Dopo Lastiyomo
Commercial Non-Subsidized Service Quality &

Lending Consumer Lending Distribution
Alex Sofyan Noor Suryanti Ferry Sipahutar

Agustinar
Small Medium Retail Funding &

Regional Offices
Enterprise Lending Services
Heru Kurniawan Nasril
Corporate and Loan Wealth Branches

Syndication Management
Priority Banking
Sindhu Rahadian Sri Rezeki Murni
Ardita Sudarsari
Sharia
Marisa Gemiralda
Sharia Branches
Risk Management
Product Committee
Committee
Line of Command
Line of Communication/ Information

Shareholder
Meeting
Board of
President Director Commissioners
Maryono
Strategy,
Chief Credit Officer IT and Operation Finance & Strategic Human
(CCO)
Compliance &
(CIO) Treasury Capital
Risk
Nixon L.P. Adi Setianto Iman Nugroho R. Mahelan
Napitupulu Soeko Prabantarikso
IT Strategic HC Management
Corporate Planning Internal Audit
Retail Risk Planning & Treasury & Culture
& Budgeting Audit Committee
Development Specialist
Erwin Dwi Purwa Riadi Nofry Rony Beki Kanuwa Eko Waluyo Triani Pudji
Kusuma Poetro Astuti
Transformation HC Organization Remuneration

Commercial Finance and Corporate
IT Operations Management Development & & Nomination
Risk Accounting Secretary
Office Policy Committee
Hertanta Bimo Haryo Dadang Eka Wilson Achmad Agus
Prawiro P Jatnika Arafat Noorrachman Susanto
Collection & Operation & Institutional Compliance & Learning Risk Monitoring
Remedial Business Support Banking Governance Center Committee
Marfiades Adee Indriana D Adi Santoso Sudaryo Bagyo Rifki

Budi Darma Utomo Sengaji
Asset Credit Policy &

Management Operation Procedure
Elisabeth Novie Rudolf Valentino Adi Suharto

Riswanti Saragih Atmadja
Procurement & Enterprise Risk

Legal
General Services Management
Yossi R. Achmad Sahat

Istanto Zein W Sihombing
Credit Policy Human Capital IT Steering Asset Liability

Credit Committee
Committee Committee Committee Committee
Sharia Supervisory Board’s Profiles
(left to right)
DR.H. Mohammad Hidayat - Member of Sharia Supervisory Board

Ahmad Nazri Adlani - Member of Sharia Supervisory Board
Muhammad Syakir Sula - Member of Sharia Supervisory Board

Ahmad Nazri Adlani

Member of Sharia Supervisory Board
Indonesian Citizen, 80, based in Jakarta. Finished

his Bachelor degree from Sharia Faculty University
Al Azhar, Cairo, Egypt, and Ushuluddin Faculty, IAIN
Syarif Hidayatullah. Studied at Macquarie University,
Sydney, Australia.
Serves as the Chairman of the Company Sharia Supervisory Chairman of the Supervisory Board of Mega Finance Sharia
Board since February 15, 2005. He was active in the military and member of Sharia Supervisory Board for Sinar Mas Sharia
sector and he is a Veteran Brigadier General of the Indonesian Insurance. He received the military education through Defense
National Armed Forces. He served as Vice President of and Safety Department, SUSBINMINU, SUSLAPA IF VII (Army
People’s Consultative Assembly of the Republic of Indonesia Infantry Officers School) Bandung, and SUSCADOS BINTAL
(MPR RI) from Group Representatives Fraction for 1999- ABRI (Lecturer for Mental Development ABRI) Jakarta. He also
2004 period, after being a Member of MPR RI for 1997- attended Ijtima’ Samawi (Sharia Forum held by National Sharia
1998 period, General Secretary of Indonesian Ulema Council Board/DSN) in Jakarta, December 8-9, 2016.
(MUI) for 1995-2000 period, Chairman of Foreign Relations
Commission of MUI for 2000-2005 period, Chairman of Appointed as the Chairman of the Company Sharia
Inter-Religion Harmony MMUI 2005-2014 period, and Vice Supervisory Board based on the Directors’ Circular Letter
President General of Indonesian Ulema Council for 2010- PT Bank Tabungan Negara (Persero) No. 131/DIR/2017 dated
2015 period. He co-founded the National Sharia Board MUI Wednesday, March 22, 2017 on the Working Period Extension
and developed the Islam economic in Indonesia. Currently, he of the Sharia Supervisory Board of PT Bank Tabungan Negara
serves as Advisory Council MUI 2016 - 2021 and as a member (Persero) Tbk and No. 608/DIR/2017 dated November 1,
of the Plenary Session of National Sharia Board - MUI, 2017, started on January 1, 2017 to the date of AGMS 2018.
DR.H. Mohammad Hidayat

Indonesian Citizen, 50, based in Jakarta. Finished

his Bachelor degree in Sharia Faculty IAIN Jakarta
in 1991 and Master of Law from STIH IBLAM in
2003. He also has a Ph.D. of Islamic Economic and
Finance, from Trisakti University in 2015.
Serves as a member of the Company Sharia Supervisory Board Market Expertise 2016, Expert Competence Certificate from
since February 15, 2005. Active as a Postgraduate Lecturer National Professional Certification Board (BNSP) and Ijtima’
at Indonesia Banking School, and provided lectures to several Samawi (Sharia Forum held by National Sharia Board/DSN) in
Universities: Postgraduate Program of Middle East and Islam Jakarta, November 2-3, 2017.
at University of Indonesia, Islamic Economic and Finance of
Trisakti University, etc. Currently, he is active as an Instructor in Indonesian Banking
Development Institute, Expert Council of Islamic banking, the
He has attended numerous training, such as Islamic Banking Board of Trustees of the Association of Indonesian Islamic
in Langkawi, Malaysia, 1998; Monitoring System held by YPPI Insurance, Member of the Association of Islamic Economics,
in 1999; Sharia Supervisory Board Certification by National and Management of Sharia National Council MUI. He is
Sharia Board MUI and the Financial Services Authority in known as a mubaligh and is currently listed as Khatib in the
2014; and Regulation and Supervision of Islamic Financial Presidential Palace of the Republic of Indonesia and the Office
Institutions by the Financial Services Authority in 2015; Ijtima’ of the Vice President of the Republic of Indonesia since 1998
Samawi (Sharia Forum held by National Sharia Board/DSN) in and Bank Indonesia since 2003.
Jakarta, 8—9 December 2016. Certification of Sharia Capital

Muhammad Syakir Sula

Indonesian Citizen, 53, based in Jakarta. Obtained
his Bachelor from Faculty of Agriculture Padjajaran
University Bandung in 1989.
Serves as a member of the Company Sharia Supervisory 2013), Chairman of the IAEI III (2010-2015), Board of MUI
Board since Monday, July 19, 2010. He is also a Member of (2005-2015), Secretary General of MES – Islamic Economic
KPJKS-OJK (Sharia Financial Services Development Committee Society (2005-2015).
– Financial Services Authority) 2014-Present, Chairman of V
MES (2015-Present), DSN Board MUI- National Sharia Board He is one of the Sharia Insurance Expert in Indonesia with
MUI (2005-Present), and Sharia Jamkrindo Commissioner designated title of AAIJ (Indonesia Life Insurance Expert),
(2015-Present). FIIS (Fellow of Islamic Insurance Society), QIP (Qualified
Practitioner), and CRGP (Certified in Risk Governance
In addition, he serves as Sharia Supervisory Board (DPS) in Professional). He has attended numerous training, such
Panin Life Sharia, Central Asia Raya Sharia, National Re Sharia, as Workshop of Islamic Banking, International Banking and
since 2007. He served as the Public Relation Deputy of Wakaf Sharia Finance Training, Bank Insurance Training, Quality
Agency Indonesia (BWI) in 2008-2014, Member of KPS-BI Management System Training – BNSP, Assessor Competency
(Committee of Sharia Banking - Bank Indonesia) in 2008- Training – BNSP, Ijtima’ Samawi (Sharia Forum held by National
2012, CEO of Batasa Tazkia Consulting (2006-2007), Expert Sharia Board/DSN) in Jakarta, December 8-9, 2016, etc.
Staff on Directors’ Board of Bank Muamalat (2005-2006),
and Marketing Director of Takaful Insurance and Operation Appointed as the Chairman of the Company Sharia Supervisory
Director of Takaful Insurance (1999-2005). In the professional Board based on the Directors’ Circular Letter PT Bank Tabungan
organizations, he was the Chairman of AASI – Indonesia Sharia Negara (Persero) Tbk No. 379/DIR/2015 dated June 30, 2015,
Insurance Association (2003-2007), Chairman of the IIS - on the Working Period Extension of the Sharia Supervisory
Islamic Insurance Society (2007-2012), Vice Chairman of IAEI Board of PT Bank Tabungan Negara (Persero) Tbk. The Letter is
– Association of Islamic Economics (2005-2010), Chairman of enacted from July 18, 2015, to December 31, 2016.
PKES – Communication Center of Islamic Economics (2008-
Board of Commissioners’ Profiles
(left to right)
Kamaruddin Sjam - Independent Commissioner

Garuda Wiko - Independent Commissioner
Lucky Fathul Aziz Hadibrata - Independent Commissioner
I Wayan Agus Mertayasa - President Commissioner/
Independent
Sumiyati - Commissioner
Arie Coerniadi - Independent Commissioner
Maurin Sitorus - Commissioner
Iman Sugema - Commissioner


President Commissioner/Independent
Indonesian Citizen, 70, based in Jakarta. Holds
a Bachelor of Economic from Brawijaya Malang
University in 1973
First Appointment Basis Training attended, namely

Appointed as President Commissioner/Independent In addition to attending various training and seminar
Commissioner in Extraordinary General Meeting of domestically, He also attended various Leadership course,
Shareholders (GMS) 2016 of PT Bank Tabungan Negara such as: Seminar Expand Leadership Program for BOD/BOC
(Persero) Tbk dated January 7, 2016, and declared effective in Bali, August 2-5, 2017; Living Wills, Planning For Bank
by the Financial Services Authority (OJK) on April 6, 2016. Recovery and Resolution in London, UK, September 2017;
He received special assignments as a Member of Audit IIA Conference 2017 in Sydney, Australia, July 2017; Deeper
Committee, Member of Risk Monitoring Committee, and Understanding on IFRS 9 & BASEL IV and Progress of BASEL
Chairman of Remuneration & Nomination Committee since III Implementation in Bali, May 2017; London Business
April 25, 2016 – present. School and SRW & Co in London, UK, September 2016; Global
Strategic Management (Harvard Business School) in Boston,
Work Experience USA, June 2009; New Challenges, New Solutions (Harvard
Started his career in 1973 as a Loan Analyst at Head Office Business School) in Boston, USA, July 2008; and Changing
of Bank Bumi Daya, became a General Manager at Bank Bumi The Game Negotiation & Competitive Decision (Harvard
Daya Los Angeles Agency (USA) (1991-1992), Chief Executive Business School) in Boston, USA, August 2003; as well as
at Bumi Daya Finance Hongkong (1992-1993), General various advance management development in finance and
Manager at Bank Bumi Daya New York (1993-1994), Director legal in Hongkong, Singapore, New York, and Champaign
of Bank Pembangunan Indonesia (1994-1999), Director and/ Urbana Illinois USA.
or EVP of PT Bank Mandiri (Persero) Tbk (1999-2005), Vice
President Director of PT Bank Mandiri (Persero) Tbk (2005- He does not have any affiliation with Directors and
2010), Chairman Non-Executive Director of Bank Mandiri members of Board of Commissioners, or main and/or
(Europe) Limited, London UK (2010-2015). controlling shareholders.
First Appointment Basis 2017; Risk Culture & Leadership The

Appointed as Independent Commissioner Paramount of GRC in Geneva Switzerland,
in the Annual General Meeting of Prague Czech, and Budapest Hungary,
Shareholders (GMS) of PT Bank March 2017; Benchmarking and
Tabungan Negara (Persero) Tbk dated Workshop Enterprise Risk Management
March 24, 2015, and declared effective in London, UK, April 2016; Enhancing the
by the Financial Services Authority (OJK) Power of Enterprise Risk Management
on June 29, 2015. He received special in Creating a Sound Bank and Financial
assignments as the Chairman of Audit Risk Integration in Stockholm, Sweden,
Committee since September 9, 2015 – September 2016; ECIIA European
present, and a Member of Remuneration Conference Paris France & On Site
& Nomination Committee since Learning in September 2015, National
Kamaruddin Sjam September 9, 2015 – present. IIA Conference Seminar in August
Independent Commissioner 2015, High Level of Administration
Indonesian citizen, age 70 years, based in Jakarta.
Work Experience Leadership (SPATI) by BPKP and LAN in
Graduated with a Bachelor degree in Tanjungpura He had a few strategic positions, namely, 2002; Study tour to Ghuangzhou and
University Pontianak in 1972 and earned a Member of Commission IX of the House Shenzhen, China, in 2002; and Short
Master of Management (MM) degree from IPWI of Representatives (2009-2014) and Term Training Programme on Auditing
School of Economics, Jakarta in 1997.
Director of Supervision Agency in Finance Objectives and Methods Applied to
and Development Supervision Body Public Sector (Performance Audit) in
(2002-2007). Marseille, France, 1999.
Training attended, namely He does not have any affiliation with

He has attended various training Directors and members of Board
programs, namely Integration of GRC of Commissioners, or main and/or
in New Zealand, Australia, September controlling shareholders.
First Appointment Basis in Indonesian Bank Restructuring Agency

Appointed as Independent Commissioner (2010-2014), and Vice President in
in the Annual General Meeting of Indonesia Central Securities Depository
Shareholders (GMS) of PT Bank (1998-2000), as well as Chief Finance
Tabungan Negara (Persero) Tbk dated Officer in Sarana Global Indonesia
March 24, 2015, and declared effective (2011-2016).
by the Financial Services Authority (OJK)
on June 29, 2015. He received special Training attended, namely
assignments as the Chairman of Risk He has attended various training
Monitoring Committee and a Member of namely ICAAP in Geneva Switzerland,
Remuneration & Nomination Committee Prague Czech, and Austria in October
since March 25, 2016 - present. 2017; Deeper Understanding on IFRS
Arie Coerniadi 9 & BASEL IV and Progress of BASEL III
Independent Commissioner Work Experience Implementation in Bali, May 2017; Risk
Indonesian Citizen, 50, based in Tangerang.
He had various strategic positions, such Culture & Leadership The Paramount
Has a Bachelor of Electric Engineering from the as Vice President in NISP Securities of GRC in Geneva Switzerland, Prague
University of Indonesia in 1991. (2005-2010), Group Head Vice President Czech, and Budapest Hungary in March

2017; Mobile World Congress for Mobile Securities Lending and Borrowing in
Payment and Mobile Banking Solutions, Amsterdam, 1996; and Global Custodian
including Mobile Ekyc in Barcelona, Spin, Services by State Street in Sydney, 1995.
February 2016; Enhancing the Power of
Enterprise Risk Management in Creating a He does not have any affiliation with
Sound Bank and Financial Risk Integration Directors and members of Board
in Stockholm, Sweden, September 2016; of Commissioners, or main and/or
Financial Market Operation by New York controlling shareholders.
Institute of Finance in New York, 1998;

Appointed as a Commissioner in Annual He has attended various trainings such
General Meeting of Shareholders as ERMA International Conference on
(GMS) of PT Bank Tabungan Negara ERM “Navigating the Future of Risk,
(Persero) Tbk on March 24, 2015, Integration of Business Processes” in
and was subsequently transferred Yogyakarta, December 2017; ICAAP
to Independent Commissioner in the in Geneva Switzerland, Prague Czech,
Extraordinary General Meeting of dan Austria in October 2017; The IIA
Shareholders (EGMS) of the Company International Conference 2016, in
dated January 7, 2016, and declared New York & Washington DC, USA, July
effective by the Financial Services 2016; International Enterprise Risk
Authority (OJK) on November 15, 2017. Management Benchmarking in Barcelona,
Lucky Fathul Aziz Hadibrata He received special assignments as Spain, 2015; Leading and Managing
Independent Commissioner a Member of Audit Committee and a People: Power and Relationships by
Member of Remuneration & Nomination Wharton Bussiness School University
a Master of Art (MA) degree in Development Committee since November 21, 2017 - of Pennsylvania in 2014; A New Era of
Economics from Boston University, present. Conduct Supervision: Consequences,
Massachusetts, USA in 1985. In 1991, Challenges,and Opportunities by OJK,
he earned a Master of Science (MS) from
Work Experience AusAID, and the World Bank in Bali,
Hasanuddin University, Makassar
He had various strategic positions such 2014; Workshop on Banking Supervision
as President Director of OJK Pension Fund Indonesia FSA–Japan FSA by OJK and
(2015-2016), and Deputy Commissioner Japan FSA in 2014; and Strengthening
of Strategic Management 1B in OJK the Asian Financial Sector Toward
(2012 -2014). Prior to that, he was a Sustainable and Inclusive Growth by ADB
Chief Representative of Region VI Bank Institute in Japan, 2013.
Indonesia in Bandung (2010-2012), and
Chief Representative of Bank Indonesia in He does not have any affiliation with
New York (2007-2010). Directors and members of Board
of Commissioners, or main and/or
controlling shareholders.

Appointed as Commissioner in the Annual She has attended various training such
General Meeting of Shareholders (GMS) of as Integration of GRC in New Zealand,
PT Bank Tabungan Negara (Persero) Tbk Australia, September 2017; Deeper
dated September 2, 2015, and declared Understanding on IFRS 9 & BASEL IV and
effective by the Financial Services Progress of BASEL III Implementation in
Authority (OJK) on February 22, 2016. Bali, May 2017; London Business School
She received a special assignment as a and SRW & Co in London, UK, September
Member of Risk Monitoring Committee 2016; Enterprise Risk Management in
since April 26, 2016 - present. Japan, 2015; Enhancing the Strategy
M a n a g e m e nt Sys t e m Fo r wa rd s
Obtaining Break Through Results
Sumiyati Work Experience in Jakarta, 2014; High Performance
Commissioner Currently serves as Head of Financial Leadership in England, 2012.
Indonesian Citizen, 56, based in Jakarta.
Education and Training Agency (BPPK) of
Graduated with a Bachelor degree at the State the Ministry of Finance (2015-present). She does not have any affiliation with
College of Accountancy in 1986 and a Master Prior to that, she was the Head of Directors and members of Board
of Financial Management (M.F.M) degree from Financial Planning Bureau, Secretariat of Commissioners, or main and/or
Queensland University, Australia in 1994.
General of Ministry of Finance in 2009- controlling shareholders.
2015, and Commissioner of PT Jiwasraya
(Persero) in 2012-2015.
Appointed as Independent Training attended, namely

Commissioner in the Extraordinary He has attended various training such
Meeting of Shareholders (EGMS) of PT as Seminar Expand Leadership Program
Bank Tabungan Negara (Persero) Tbk for BOD/BOC in Bali, August 2-5, 2017;
dated January 7, 2016, and declared Deeper Understanding on IFRS 9 &
effective by the Financial Services BASEL IV and Progress of BASEL III
Authority (OJK) on June 6, 2016. He Implementation in Bali, May 2017;
received a special assignment as a Finance for Non-Finance Manager in
Member of Remuneration & Nomination Hongkong, November 2017; Risk Culture
Committee since November 1, 2016 - & Leadership The Paramount of GRC in
present. Geneva Switzerland, Prague-Czech,
and Budapest Hungary in March 2017;
Maurin Sitorus Work Experience Program Impact Evaluation and Use of
Commissioner He served as the Directorate General of Monitoring & Evaluation in Performance-
Housing Finance of the Ministry of Public Based Planning Budgeting in Shanghai
Graduated with a Bachelor degree in Law from Works, Secretary of Directorate General China, 2010; Economic Development
the University of Indonesia in 1983, Master in of Debt Management, Directorate Strategy and Market in Japan and South
Monetary and International Economic University General of Debt Management, Ministry Korea, 2002; Macro-Economic Modeling
of Illinois Urbana - Campaign USA in 1990 and
of Finance, in 2014, and the Head of in Denhaag Netherlands, 2002.
earned his Ph.D. in Monetary and International
Economics from the University of Kentucky, Regional Office of Directorate General
Lexington, USA in 1994. of Treasury of Bengkulu Province, He is not affiliated with Directors and
Directorate General of Treasury, Ministry members of Board of Commissioners,
of Finance of the Republic of Indonesia. or main shareholder and/or controlling
shareholder.

Appointed as Independent Commissioner Development of Economics and Finance)

in Annual General Meeting of (2002-present), Senior Economist in
Shareholders (GMS) of PT Bank Tabungan ISEI (Indonesian Economist Association)
Negara (Persero) Tbk dated April 12, (2002-present)
2016, and declared effective by Financial
Services Authority (OJK) on July 25, 2017. Training attended, namely
He received a special assignment as a He has attended various training such
Member of Risk Monitoring Committee as Integration of GRC in New Zealand,
since August 15, 2017 - present. Australia in September 2017; Deeper
Understanding on IFRS 9 & BASEL IV and
Work Experience Progress of BASEL III Implementation in
Executive President of Ec-Think Bali, May 2017; ERMA Bali International
Iman Sugema Indonesia (Think Tank Economy), Corp Conference On Enterprise Risk
Commissioner (2010-present), Director of Inter-CAFE Management in Denpasar Bali, December
Indonesian Citizen, 53, based in Bogor.
(International Center for Applied Finance 2016; Risk Management Training Level 1
Graduated from Bogor Agricultural University and Economics) in Bogor Agricultural and 2 in Jakarta, 2016.
in 1987 and earned his Ph.D in economics University (2005-2013), Senior Economist
(1996-2000), Department of Economics, of Inter-CAFE (International Center for He is not affiliated with Directors and
Research School of Pacificand Asian Studies,
Applied Finance and Economics) in Bogor members of Board of Commissioners,
The Australian National University.
Agricultural University (2005-present). or main shareholder and/or controlling
Senior Economist in INDEF (Institute for shareholder.
Appointed as Independent Training attended, namely

Commissioner in Annual General He has attended various training such
Meeting of Shareholders (AGMS) of PT as Seminar Expand Leadership Program
Bank Tabungan Negara (Persero) Tbk for BOD/BOC in Bali, August 2-5,
dated March 17, 2017, and declared 2017; Living Wills, Planning For Bank
effective after obtaining the approval Recovery and Resolution in London, UK,
from the Financial Services Authority September 2017; Expand Leadership
(OJK) on July 25, 2017. He received Program in Bali, August 2017; Arbitration
special assignments as a Member of Workshop in Construction in Jakarta,
Audit Committee and a Member of Risk 2008; and Workshop and Research on
Monitoring Committee since August 15, Critical Law Studies and Legal Pluralism
2017 - present. in Pontianak, 2004.
Garuda Wiko
Independent Commissioner Work Experience He does not have any affiliation with
In addition to the Independent Directors and members of Board
Graduated from Pontianak University in 1988 Commissioner of the Company, he also of Commissioners, or main and/or
and in 1980. He earned a Doctorate in Law from is a Lecturer at Magister Management controlling shareholders.
Diponegoro University in 2006. Program in University of Tanjungpura
(2008-present), and a Member of Senate
of Pontianak State Islamic Institute, and
Professor of Sharia Major (2010-present).
Board of Directors’ Profiles
(left to right)
Oni Febriarto Rahardjo - Director

R. Mahelan Prabantarikso - Director
Iman Nugroho Soeko - Director
Maryono - President Director
Adi Setianto - Director
Budi Satria - Director
Nixon L.P. Napitupulu - Director
Dasuki Amsir - Director

Maryono
President Director
a Bachelor degree in Economics (S1) from
Diponegoro University in 1981 and Master (S2)
from IPWI School of Economics in 1998.

Appointed as the President Director of the Company in He has attended various training such as Executive Leadership
the Annual General Meeting of Shareholders (GMS) of Program (ELP) of Ministry of SOEs in Jakarta, April 2017;
the Company on March 24, 2017, for the 2nd Period, and WSBI Innovation Workshop in Bangkok, Thailand, May 2017;
declared effective by the Financial Services Authority (OJK) on WSBI General Assembly & Conference in Cape Town, South
March 17, 2017. Currently, he is not serving as other Director Africa, November 2017; Regional Conference on Postal Saving
of other company. System in Asia 2016 in Tokyo, 2016; 24th World Congress
of Saving and Retail Banks in the USA, 2015; 21st Meeting
Work Experience of the WSBI Asia Regional Group in Spain, 2015; Executive
He was a President Director in Bank Mutiara from November International Conference in Moscow, 2014; Refreshment of
2008 until December 2012. Career in the Banking industry in Risk Management Certification in Moscow, Russia, 2014;
Bank Pembangunan Indonesia since 1982 until 1999. In 2008, Negotiation Dynamics Programme, INSEAD, Fontainebleau,
he was a President Commissioner in PT Mandiri Manajemen French, in 2004; and Senior Executive Programme in Asia,
Investasi. He also served as the Group Head of Jakarta Michigan Business School, Hongkong, in 2004.
Network Group in PT Bank Mandiri (Persero) Tbk. Currently,
he is the Regional President of WSBI (World Saving Bank He does not have any affiliation with Directors and members
Institute) in Asia Pacific Region, and the Chairman of HIMBARA of Board of Commissioners, or main shareholder and/or
(Association of State-Owned Banks) 2017 - present. controlling shareholders.
First Appointment Basis

Appointed as a Director in the Annual BASEL IV and Progress of BASEL III, in
General Meeting of Shareholders (GMS) Bali, May 2017; Refreshment Program
of Bank BTN dated February 25, 2014, in Frankfurt, Vienna, August 2017; Risk
and declared effective by Financial Governance Master Class Training &
Services Authority (OJK) on March 16, Certification in Jakarta, 2016; Real Estate
2014. Currently, he is not serving as other Management Program, Finance, Design
Director of other company. and Leadership, in Harvard Business
School, HBS Campus, Boston, USA,
Work Experience 2014; Manager’s Certification on the 4th
He was a Senior Recovery Manager Disciplines of Execution, Jakarta, 2010;
Asset Management and Disposal Internalizing Best Practices of Good
Iman Nugroho Soeko Department (2006), IBMCS Group Head Corporate Governance and Directorship
Director of Bank Mandiri (2009–2010), and Chief in Bali, 2009.
Indonesian Citizen, 62, based in Jakarta. Obtained
Executive of Bank Mandiri (Europe) Ltd.
a Master of Social Science from the University of (2010 - 2013). He does not have any affiliation with
Birmingham, England, in 1989. Directors and members of Board of
Training attended, namely Commissioners, or main shareholder
He attended various training such as and/or controlling shareholders.
Deeper Understanding on IFRS 9 &
First Appointment Basis

Appointed as a Director in the Annual of Ministry of SOEs in Jakarta, April
General Meeting of Shareholders (GMS) 2017; Program for Executives, Deeper
of Bank BTN dated March 24, 2015, and Understanding on IFRS 9 & BASEL IV and
declared effective by Financial Services Progress of BASEL III in Bali, May 2017;
Authority (OJK) on June 8, 2015. Currently, ASEAN Global Leadership in Cambridge,
he is not serving as other Director of UK, September 2017; Europe Class
other company. 2016 in Milan, 2016; Liquidity Risk
Management in Banks by Fitch Learning
Work Experience in London, 2014; Marketing Financial
Career in the Banking industry since Solution by LPN Division and Thierry
1993 He had various strategic positions Fuller (Blue Mountain Incorporated) in
Adi Setianto such as Director of Network and Services 2009; and Malcolm Baldridge Criteria for
Director (2014-2015) and Director of Treasury and Executive Workshop in 2017.
Indonesian Citizen, 56, based in Tangerang. Holds
Financial Institution in PT Bank Negara
a Bachelor of Economics (S1) of Narotama in Indonesia (Persero) Tbk. (2010–2014). He does not have any affiliation with
1989 and a Master of Business Administration Directors and members of Board of
(MBA) (S2) from Drexel University, Pennsylvania, Training attended, namely Commissioners, or main shareholder
USA in 1992.
He attended various training such as and/or controlling shareholders.
Executive Leadership Program (ELP)

First Appointment Basis: Training attended, namely

Appointed as Director in Annual General He attended various training such as
Meeting of Shareholders (GMS) of the Executive Leadership Program (ELP) of
Company dated March 24, 2015, and Ministry of SOEs in Jakarta, April 2017;
declared effective by Financial Services ASEAN Global Leadership Program
Authority (OJK) on May 19, 2015. in Berkeley, 2016; Certified Risk
Currently, he is not serving as other Management Level 5 in 2015; 60th Staff
Director of other company. and Bank Leaders School (SESPIBANK)
by LPPI in 2014; Housing Development
Work Experience Finance Corporation Work Visitation
He has been with PT Bank Tabungan Program in India, 2010; and Smart
Negara (Persero) Tbk since 1997. He Merger and Acquisition by Indonesian Risk
Oni Febriarto Rahardjo served as a Small and Medium Lending Professional Association (IRPA) in 2008.
Director Division Head (2013–2015). Currently,
Indonesian Citizen, 47. Based in Tangerang.
he is not serving as other Director of He does not have any affiliation with
Holds a Bachelor of Engineering (S1) from other company. Directors and members of Board of
Diponegoro University in 1994 and Master Commissioners, or main shareholder
of Management (S2) of PPM School of and/or controlling shareholders.
Management in 1996.

Appointed as Director in Annual General He has attended various training, such
Meeting of Shareholders (GMS) of the as Training Corporate Governance
Company dated March 17, 2017, and Leadership Program (CGLP) in Bali,
declared effective by Financial Services August 2017; Mutual Evaluation Review
Authority (OJK) on July 25, 2017. (MER) in Jakarta, September 2017; “To
Currently, he is not serving as other be Top 50 Team Asean CG Scorecard”
Director of other company. Workshop in Batam, 2016; Socialization
of AFI KPKU BTN Senior Leader in
Work Experience Jakarta, 2016; Interest Rate Risk in
He has been with PT Bank Tabungan Banking Book in Jakarta, 2015; and
Negara (Persero) Tbk since 1995. Banking Industry Strategies Seminar in
R. Mahelan Prabantarikso He served as the Head of Strategic Jakarta, 2015.
Director Innovation & Performance Division, Bank
Indonesian Citizen, 48. Based in Jakarta. Holds a
BTN (2015 – 2017), Head of Change He does not have any affiliation with
Bachelor degree in Economics (S1) from Jenderal Management Office, Bank BTN (2013 – Directors and members of Board of
Sudirman University, Master of Management 2015), Superintendent Human Capital Commissioners, or main shareholder
(S2) from Gadjah Mada University and Candidate, Projects, Bank BTN (2012 - 2013). and/or controlling shareholders.
Doctor of Business Management / Strategic
of Agribusiness Management from Institut
Pertanian Bogor, Bogor in 2018.

Appointed as Director in Annual General He has attended various training such as
Meeting of Shareholders (GMS) of Bank Executive Leadership Program (ELP) of
BTN dated March 17, 2017, and declared Ministry of SOEs in Jakarta, April 2017;
effective by Financial Services Authority Risk Management Refreshment Level
(OJK) on July 25, 2017. Currently, he is 4 in Jakarta, 2017; and Refreshment
not serving as other Director of other Sound Practice in Bank Management
company. Using Risk-Based Bank Rating (RBBR) in
Denpasar, 2016.
Work Experience
He served as the President Director of He does not have any affiliation with
PT Bank Mandiri Taspen Pos (2015 – Directors and members of Board of
Nixon L.P. Napitupulu 2017), Head of Transition Team for Bank Commissioners, or main shareholder
Director Joint Venture PT Bank Mandiri (Persero) and/or controlling shareholders.
Indonesian Citizen, 48. Based in Jakarta. Obtained
Tbk (2015), Head of Priority Project Bank
a Bachelor of Economics from the University of Joint Venture PT Bank Mandiri (Persero)
North Sumatera, Medan, in 1994. Tbk (2014 – 2015), and Group Head
Corporate Secretary Group of PT Bank
Mandiri (Persero) Tbk (2013 - 2014).

Appointed as Director in Annual General He has attended various training
Meeting of Shareholders (GMS) of such as WSBI Innovation Workshop
Bank BTN dated March 17, 2017, and in Bangkok Thailand and South Africa
declared effective by Financial Services in 2017; Domestic Public Course on
Authority (OJK) on July 25, 2017. Marketing, Jakarta, 2014; Matriculation
Currently, he is not serving as other and Help Session, Risk Management
Director of other company. Level 4, Jakarta, 2012, and Assistant
Vice President Development Program
Work Experience (AVPDP) in Jakarta, 2012.
He served as the Jakarta Regional Head
of PT Bank Rakyat Indonesia (Persero) He does not have any affiliation with
Budi Satria Tbk (2015 – 2017), Corporate Secretary Directors and members of Board of
Director of PT Bank Rakyat Indonesia (Persero) Commissioners, or main shareholder
Indonesian Citizen, 54. Based in Jakarta. Holds a
Tbk (2014 – 2015), Head of Palembang and/or controlling shareholders
Law Degree (S1) from the Islamic University of Regional Office of PT Bank Rakyat
Indonesia in 1987 and Master of Management Indonesia (Persero) Tbk (2012 – 2014).
(S2), the University of Indonesia, Jakarta in 2001.


Appointed as Director in Annual General He has attended various training such as
Meeting of Shareholders (GMS) of the Executive Leadership Program (ELP) of
Company dated December 28, 2017, Ministry of SOEs in Jakarta, April 2017;
and declared effective by Financial Seminar on Fertilization Technology and
Services Authority (OJK) on …. Currently, Strategy to Overcome Climate Anomaly
he is not serving as other Director of for Plantations in Bali, on March 31 –
other company. April 1, 2016; Semiloka, with the theme:
“BRINGING FRUGAL INNOVATION TO
Work Experience THE PLANTATION BUSINESS, Achieving
He served as the President Director of Superior Sustainable Performance” in
Holding Perkebunan Nusantara PTPN Yogyakarta, on February 5, 2016.
Dasuki Amsir III (Persero) (April – December 2017),
Director President Director of PT Perkebunan He does not have any affiliation with
Indonesian Citizen, 54. Based in Jakarta. He holds
Nusantara IV (2016–2017), Director Directors and members of Board of
a Bachelor of Economics (S1) from the University of Finance PT Perkebunan Nusantara Commissioners, or main shareholder
of Krisna Dwipayana in 1986 and a Master of XII (2015–2016), Head of Commercial and/or controlling shareholders.
Management (S2) of the Gadjah Mada University Remedial Division of PT Bank BNI Tbk
in 1996.
(2015), Head of Surabaya Regional
Office of PT Bank BNI Tbk (2012–2014),
the Leader of Business Banking across
Surabaya in PT Bank BNI Tbk (2011–
2012), and Leader of Small Centered
Loan PT Bank BNI Tbk (2007–2011).
Officers Reporting Directly to

the Board of Directors
Appointment Basis Training attended

Appointed as the Corporate Secretary He has attended various training and
Division Head based on the Directors’ seminar: Corporate Secretary Dialogue
Circular Letter No. 266/DIR/2017. on POJK 51 / POJK.03 / 2017 on
Sustainable Finance in Jakarta (2017),
Work Experience Public Relations Workshop Forum (FH)
Started his career in PT Bank Tabungan BUMN in Makassar (2017), 2 (two)
Negara (Persero) Tbk since 1991, and Days Workshop Three Pillars Corporate
he was in the Division of Mortgage & Secretary in Bandung (2017) Socialization
Consumer Lending Regional II, Branch of Loan Policy Implementation in Jakarta,
Manager Mataram Branch Office BM Financial Planning Training in Jakarta
(2013), Branch Manager of Denpasar (2016), Training and Corporate Culture
Agus Susanto Branch office (2015), Branch Manager Socialization in Jakarta (2015), Banking
Corporate Secretary of Semarang Branch Office (2016) Management Certification Level 3 in
Indonesian Citizen, 55, based in Jakarta. and Branch Manager of Bekasi Branch Jakarta (2014) and number of seminars
Obtained a Bachelor of Economics from the Office (2017). and other trainings.
University of Muhammadiyah, Palembang, in
1990.
Appointment Basis Training attended

Appointed as the Chairman of Internal She has attended various workshop,
Audit effective since November 13, 2017, domestically and abroad, namely:
based on the Directors’ Circular Letter Developing The Strategic Manager 2 by
No. 612/DIR/2017 dated November 7, AGSM UNSW Business School, Australia,
2017, on Employee Rotation/Promotion. in 2016; Asset Accounting Training (PSAK
& ISAK) by the Institute of Indonesia
Work Experience Chartered Accountants (IAI), Jakarta, in
Started her career in PT Bank Tabungan 2017; Workshop of Asset Accounting
Negara (Persero) Tbk since 1986 and she Implementation by PT Barka Cahaya
was the Head of Finance & Accounting Mediatama in Jakarta, 2017.
Division (2011 - 2017).
Triani Pudji Astuti
Chairman of Internal Audit
a Bachelor of Economics from the University of
Gadjah Mada, Yogyakarta, in 1985.

Executive Officers’ Profiles
Anton Rijanto Alex Sofyan Noor

46. Master of Economics from the 51. Bachelor of Economics, Universitas
University of Hasanudin. Appointed Islam Indonesia. Appointed as the
as the Head Division of Commercial Head of Commercial Lending Division
Funding & Services based on based on Directors’ Circular Letter No.
Directors’ Circular Letter No. 177/ 353/DIR/2017.
DIR/2017.
Heru Kurniawan Sindhu Rahardian Ardita

45. Holds a Magister of Management 44. Holds a Magister Management,
from the Bogor Agriculture Institute. University of Gadjah Mada.
Appointed as the Head of Small & Appointed as the Head of Corporate
Medium Lending Division based on & Loan Syndication Division based
Directors’ Circular Letter No. 177/ on Directors’ Circular Letter No.
DIR/2017. 105/DIR/2017.
Hirwandi Gafar Suryanti Agustinar

49. Bachelor of Civil Engineering, 52. Master of Law, University of
Bandung Institute of Technology. Gadjah Mada. Appointed as the
Appointed as the Head of Subsidized Head of Non-Subsidized Mortgage
Mortgage Division based on and Consumer Lending Division
Directors’ Circular Letter No. 105/ based on Directors’ Circular Letter
DIR/2017. No. 441/DIR/2016.
Nasril Sri Rezeki Murni Sudarsari

52. Bachelor of Economics, STIE 52. Magister of Management,
KBP, Padang. Appointed as the University of Gadjah Mada.
Head of Retail Funding and Services Appointed as the Head of Wealth
Division based on Directors’ Circular Management Division based on
Letter No. 257/DIR/2015. Directors’ Circular Letter No. 177/
DIR/2017.
Marisa Gemiralda Dopo Lastiyomo

57 Holds a Master degree in 46. Bachelor of Economics,
Marketing Management, Trisakti University of Veteran National
University. Appointed as the Head of Development. Head of Digital
Sharia Division based on Directors’ Banking Division. Served since
Circular Letter No. 257/DIR/2015. August 1, 2017, based Directors’
Circular Letter No. 265/DIR/2017.
Ferry Sipahutar Erwin Dwi Kusuma

47. Magister of Management, 38. Bachelor of Civil Engineering,
University of Gadjah Mada. Surabaya Institute of Technology
Appointed as the Head of Service Appointed as the Head of Retail Risk
Quality and Distribution Division Division based on Work Agreement
based on Directors’ Circular Letter No.15139 / PK / BTN / HCD / HCS
No. 105/DIR/2017. / V2017
Hertanta Marfiades
52. Master of Financial 53. Magister of Management, STIE
Management, Padjajaran Indonesia. Appointed as the Head
University. Appointed as the Head of of Consumer Collection & Remedial
Commercial Risk based on Directors’ based on Directors’ Circular Letter
Circular Letter No. 353/DIR/2017. No. 579/DIR/2017.
Elisabeth Novie Riswanti Yossi Istanto

49. Bachelor of Civil Law, University 44. Master of Business Law,
of Gadjah Mada. Appointed as the Parahyangan Catholic University,
Head of Asset Management Division Bandung. Appointed as the Head of
based on Directors’ Circular Letter Legal Division based on Directors’
No. 177/DIR/2017. Circular Letter No. 473/DIR/2013.
Purwa Riadi Bimo Haryo Prawiro P

38. Bachelor of Information 41. Bachelor of Engineering,
Technology, Budi Luhur University. Bandung Institute of Technology
Appointed as the Head of IT (ITB) Appointed as the Head of IT
Strategic Planning & Development Operation Division based on Work
Division based on Work Agreement Agreement No. 15645/PK/BTN-
No.15137/PK/BTN-ICTD/HCD/ ICTD/HMCD/HCS/VIII/2017.
HCS/V/ 2017.
Adee Indriana D Rudolf Valentino Saragih

45. Bachelor of Economics, 50. Bachelor of Accounting and
University of Eleventh March. Economics, University of North
Appointed as the Head of Operation Sumatera Utara. Appointed as the
& Business Support based on Head of Credit Operation Division
Directors’ Circular Letter No. 353/ based on Directors’ Circular Letter
DIR/2017. No. 177/DIR/2017.
R. Achmad Zein W. Nofry Rony Poetro

51. Bachelor of Economics, Islam 49 Master of Business
Nusantara University. Appointed Administration, The George
as the Head of Procurement and Washington University, Washington
General Services Division based on DC, USA. Appointed as the Head of
Directors’ Circular Letter No. 105/ Treasury based on Directors’ Circular
DIR/2017. Letter No. 439/DIR/2016..
Dadang Eka Jatnika Adi Santoso Budi Darma

48 Master of Accounting, 52. Bachelor of Economics
Diponegoro University. Appointed as Management, Pancasila University.
the Head of Finance and Accounting Appointed as the Head of
Division based on Directors’ Circular Institutional Banking Division based
Letter No. 612/DIR/2017. on Directors’ Circular Letter No.
260/DIR/2017.

Beki Kanuwa Wilson Arafat

44. Bachelor of Civil Engineering, 45. Master of Economics, University
Bandung Institute of Technology of Gadjah Mada. Appointed as
(ITB) Appointed as the Head of the Head of Transformation
Corporate Planning & Budgeting Management Office Division, based
Division based on Directors’ Circular on Directors’ Circular Letter No.
Letter No. 353/DIR/2017. 139/DIR/2017.
Sudaryo Bagyo Utomo Sahat Sihombing

54. Bachelor of Civil Law, Diponegoro 51. Master of Economics
University, Semarang. Appointed Management, IPPM Jakarta.
as the Head of Compliance & Appointed as the Head of Enterprise
Governance Division based on Risk Management Division based on
Directors’ Circular Letter No. 397/ Directors’ Circular Letter No. 353/
DIR/2014. DIR/2017.
Eko Waluyo Achmad Noorachman

45. Master of Management, 54. Bachelor of Business Law,
University of Gadjah Mada. Diponegoro University. Appointed
Appointed as the Head of HC as the Head of HC Organization
Management & Culture Specialist Development & Policy based on
Division based on Directors’ Circular Directors’ Circular Letter No. 260/
Letter No. 180/DIR/2017. DIR/2017.
Rifki Sengaji Satya Wijayantara

53. Master of Law, Ars International 50. Master of Law, Jayabaya
University. Appointed as the Head of University. Appointed as the Head
Learning Center based on Directors’ of Regional Office 1 based on
Circular Letter No. 260/DIR/2017. Directors’ Circular Letter No. 177/
DIR/2017.
Dewi Fitrianingrum Joni Prasetiyanto

51. Master of Management, Gadjah 49. Holds a Master of Business Law,
Mada University. Appointed as the University of Indonesia. Appointed
Head of Regional Office 2 based on as the Head of Regional Office 3
Directors’ Circular Letter No. No. based on Directors’ Circular Letter
177/DIR/2017. No. 138/DIR/2016.
Manahan Hutape Achmad Chaerul,

49. Bachelor of Economics, 47. Master of Law, University of
University of North Sumatera. Indonesia. Appointed as the Head
Appointed as the Head of Regional of Regional Office 5 based on
Office 4 based on Directors’ Circular Directors’ Circular Letter No. 260/
Letter No. 579/DIR/2017. DIR/2017.
Employee Profile
In 2017, the Company employs 19,583 employees, which consist of 8,780 Permanent
Employees, 1,580 Contract Employees, and 9,223 Outsource Employees. The number
increased by 22.6% from 2016, which was 15,972 employees.
The following table shows the number of employees within the last 5 (five) years:
Year Total Employees Total

Contract Outsource Including
Permanent Employees Employees Employees Not including Outsource Outsource
2017 8.780 1.580 9.223 10.360 19.583
2016 8.561 683 6.728 9.244 15.972
2015 8.180 862 6.504 9.042 15.546
The following tables and graphics show the composition comparison of the Company’s Employee within
the last 3 (three) years, based on the organization level, education level, employment status, age,
gender, and work unit location:
Composition of the Permanent Employees based on the Organizational Level
Organizational Level 2017 2016 2015

Total % Total % Total %
22 4 0.04% 3 0.03% 2 0.02%
19 s/d 21 99 0.96% 90 0.97% 79 0.87%
15 s/d 18 993 9.58% 926 10.02% 875 9.68%
13 s/d 14 2.364 22.82% 1.860 20.12% 1.806 19.97%
11 s/d 12 5.139 49.60% 4.567 49.41% 4.442 49.13%
8 s/d 10 1.761 17.00% 1.798 19.45% 1.838 20.33%
Total 10.360 100.00% 9.224 100.00% 9.042 100.00%
5.139
5.000
4.567 4.442
4.000
3.000
2.000 2.364
1.860 1.806 1.761 1.798 1.838
2017
1.000 993 926 875
2016
0 4 2 2 99 90 79
2015
22 19 s/d 21 15 s/d 18 13 s/d 14 11 s/d 12 8 s/d 10

Composition of the Permanent Employees based on Education Level
Education Level 2017 2016 2015

Master 358 3.46% 332 3.59% 321 3.55%
4-yr-Bachelor 7.438 71.80% 6.533 70.67% 6.358 70.32%
3-yr-Bachelor 1.871 18.06% 1.686 18.24% 1.704 18.85%
High School 693 6.69% 693 7.50% 659 7.29%
Jumlah 10.360 100% 9.224 100% 9.042 100%
7.438
7.000
6.533
6.000
5.305
5.000
4.000
3.000
2.000 1.871 1.686

1.663
2017
1.000 919
2016 693 693
358 232 299
2015 0
Master 4-yr-Bachelor 3-yr-Bachelor High School
Employee Composition Based on Employee Status
Year Total Employees Total Number

Contract Permanent
Permanent Employees Employees Outsource Contract Employees Employees
2017 8.780 1.580 9.223 10.360 19.583
2016 8.561 6.728 9.244 15.972
2015 8.180 862 6.504 9.042 15.546
10.000 9.223
8.780 8.561
8.180
8.000
6.728
6.504
6.000
4.000
2017
2.000 1.580
2016
683 862
2015 0
Permanent Employees Contract Employees Outsource
Employee Composition Based on Age
Age (Year) 2017 2016 2015

Total Employee % Total Employee % Total Employee %
≥ 51 685 6.61% 689 7.45% 644 7.12%
31 – 50 3.122 30.14% 2.794 30.23% 2.632 29.11%
≤ 30 6.553 63.25% 5.761 62.32% 5.766 63.77%
Total 10.360 100% 9.244 100% 8.665 100%
7.000
6.553
6.000
5.761 5.766
5.000
4.000
3.000 3.122
2.794 2.632
2.000
1.000 685 689 644
0
≥ 51 31-50 ≤ 30
2017 2016 2015
Composition of Employee Based on Gender
Gender 2017 2016 2015

Total Employee % Total Employee % Total Employee %
Male 5.797 55.96% 5.180 56.04% 4.971 54.98%
Female 4.563 44.04% 4.064 43.96% 4.041 45.02%
Total 10.360 100% 9.244 100% 9.042 100%
5.000 5.797
5.180 4.971
4.000 4.563
4.064 4.041
3.000
2.000
2017
1.000
2016
2015 0
Male Female

Employee Composition Based on Work Unit Location
Work Unit Location 2017 2016 2015

Head Office 1.738 1678% 1.517 16.41% 1.439 15.91%
Branch Office 8.622 83.22% 7.727 83% 7.603 84.09%
Total 10.360 100% 9.924 100% 9.042 100%
10.000
8.622
8.000 7.727 7.603
6.000
4.000
2.000 1.738
2017
1.517 1.439
2016
2015 0
Head Office Branch Office
Education and/or training for Board of

Commissioners, Board of Directors, Committees,
Corporate Secretary, and Internal Audit Unit.
Information related to the education and/or training for Board of Commissioners,

Board of Directors, Committees, Corporate Secretary, and Internal Audit Unit have
been described in Good Corporate Governance Chapter.
Employee Competence Development
Employment Opportunity Policy competence development program is determined based on the

This policy stated the employment opportunity in the Training Need Analysis, taking into account the gender equality
Company that is implemented in an open selection process and equal opportunities for all employees.
without discrimination (of gender, race, ethnicity, religion). Skill and knowledge development for the Company’s Human
Employee career management, including their assignment and Resources (HR) are carried out through HR coaching and
promotion/rotation is carried out by taking into consideration development based on basic and technical competence in order
their performance, ability, and competence. The competence to integrate HR competence with their job specification, so that
development for employees, both hard skill and soft skill the operation shall run effectively and efficiently.
became one of the main programs in 2016, i.e. people
transformation. Pursuant to the Directors’ Circular Letter No. The Company implemented employee development program
43/DIR/CMO/2011 dated November 28, 2011, on Employee to fill the continuous needs of competence and skills
Training and Development, which was part of the Human through education, training, specific assignment, as well
Capital Policy Guidelines, it is stipulated that employees who as relocation and promotion programs. Each employee has
are entitled to attend Training and Development activities are equal opportunity to participate in the development program,
the employees with permanent status and certain status. In tailored to the needs for the basic and technical competence
this case, every employee has equal opportunity in training of the position in order to support the employee to give the
and development activities, regardless of the gender. best in their work and career.
The Company always ensures that it provides equal The following table described the Number of the Company
opportunities to every employee in obtaining training and Education and Training Based on Position for January -
development program. This reflects the equal opportunities in December 2017 period:
each level of the organization. The employee participation in

Duration
No Grade Type of Training Objectives (hour)
1 Staf (Grade 9 - 10) Faculty of Audit Training for anti-fraud, Zero Tolerance & Zero Defect 8
2 Staf (Grade 9 - 10 ) Consumer Lending Basic Appraiser Education (PDP) for Consumer Lending staff 8
3 Staf (Grade 9 - 10) Consumer Lending Office Channeling for trainers 16
4 Staf (Grade 9 - 10) Faculty of Compliance Staff training on Prudence Principles of Banking Business 16
5 Staf (Grade 9 - 10) Faculty of Compliance Staff Assessment on branch office for APU & PPT Program 16
6 Staf (Grade 9 - 10) Faculty of Compliance Test Micro Learning of CDD & WIC-APU PPT for staff 8
7 Staf (Grade 9 - 10) Faculty of General Affair Training on Logistics and E-Procurement application 24
8 Staf (Grade 9 - 10) Faculty of Human Capital MVP briefing related to Corporate Culture 8
9 Staf (Grade 9 - 10) Faculty of Human Capital Training for the Company trainers candidate 24
10 Staf (Grade 9 - 10) Finance & Accounting Training on Taxes and Socialization of E-Filing 16
11 Staf (Grade 9 - 10) Finance & Accounting Socialization on Taxes legislations 8
12 Staf (Grade 9 - 10) Finance & Accounting Refreshment on Accounting training related to LBU & LLD 32
13 Staf (Grade 9 - 10) Operational Banking Training on BG, SKNBI, RTGS, DHN & ATM 8
14 Staf (Grade 9 - 10) Operational Banking Training and Socialization of Rupiah 2016 16
15 Staf (Grade 9 - 10) Operational Banking Socialization on BI RTGS, CEK/BG & SKN Provisions 8
16 Staf (Grade 9 - 10) Retail Funding & Services Socialization on Office Channeling for trainers 8
17 Staf (Grade 9 - 10) Service Quality Training for award winners of BSEM MRI 2016/2017 40
18 Staf (Grade 9 - 10) Sharia Others Socialization on Sharia Services for trainers 8
19 Staf (Grade 9 - 10) Treasury Training on Foreign Currency Transactions 8
20 Staf (Grade 9 - 10) Treasury Socialization on BTN Foreign Currency Savings 8
21 Staf (Grade 9 - 10) Wealth Management Sales training for Priority Banking Officer 24
22 Senior Staf (Grade 11 - 12) Collection & Asset Management New Employee Training for General Banking Staff as Team 24
Leader
23 Senior Staf (Grade 11 - 12) Collection & Asset Management Competence and Motivation Development for AMD employee 16
24 Senior Staf (Grade 11 - 12) Collection & Asset Management Collection training for CCRD division 8
25 Senior Staf (Grade 11 - 12) Collection & Asset Management Training related to The New Smart & Successful Collection 8
26 Senior Staf (Grade 11 - 12) Collection & Asset Management Employee Refreshment on the loan restructuration 16
27 Senior Staf (Grade 11 - 12) Commercial Funding Training on PPO, Virtual Account & BTN CMS products for 8
trainers
28 Senior Staf (Grade 11 - 12) Commercial Lending Training for Loan Commercial Analyst & SMAO 48
29 Senior Staf (Grade 11 - 12) Commercial Lending Training related to Commercial Loan products 24
30 Senior Staf (Grade 11 - 12) Commercial Lending Training for Loan Commercial Analyst Level Basic 48
31 Senior Staf (Grade 11 - 12) Commercial Lending Training for Small & Medium Account Officer (SMAO) 48
32 Senior Staf (Grade 11 - 12) Commercial Lending Training for Loan Relationship Management 40
33 Senior Staf (Grade 11 - 12) Commercial Lending Training for Loan SMAO 32
34 Senior Staf (Grade 11 - 12) Commercial Lending RM training related to commercial loan monitoring 8
35 Senior Staf (Grade 11 - 12) Consumer Lending Consumer Loan Analyst training related to analysis and 48
interview, basic level
36 Senior Staf (Grade 11 - 12) Consumer Lending Consumer Loan Directive and Training 8
Duration
37 Senior Staf (Grade 11 - 12) Consumer Lending Consumer Loan Analysis Training 8
38 Senior Staf (Grade 11 - 12) Consumer Lending Competence development of the Pension Savings and BTN Kring 8
Savings products
39 Senior Staf (Grade 11 - 12) Consumer Lending Consumer Loan Service training 40
40 Senior Staf (Grade 11 - 12) Consumer Lending Basic Appraiser Education (PDP) for Consumer Lending staff 96
41 Senior Staf (Grade 11 - 12) Consumer Lending Training to stop bad loans for Head of MCLU 32
42 Senior Staf (Grade 11 - 12) Consumer Lending Consumer Loan Analyst Level Advance Training 32
43 Senior Staf (Grade 11 - 12) Consumer Lending BTN Office Channeling training for trainers 16
44 Senior Staf (Grade 11 - 12) Consumer Lending Training of Head of MCLU & Consumer Loan on BTN Micro 16
Housing Loan product
45 Senior Staf (Grade 11 - 12) Digital Banking Digital Banking Online training 32
46 Senior Staf (Grade 11 - 12) Digital Banking Socialization and Go Live of Prepaid Blink card distribution 8
47 Senior Staf (Grade 11 - 12) Faculty of Audit Refreshment on Audit Root Cause Analysis 8
48 Senior Staf (Grade 11 - 12) Faculty of Audit Socialization related to Anti-Fraud & Whistle Blowing System 8
49 Senior Staf (Grade 11 - 12) Faculty of Audit Training related to Fraud Prevention & Detection Operational 16
50 Senior Staf (Grade 11 - 12) Faculty of Audit Sharing Knowledge of the employee with the Audit Board of 8
Indonesia and the the Company President Director
51 Senior Staf (Grade 11 - 12) Faculty of Audit Examination of Certified Forensic Auditor (CFrA) 40
52 Senior Staf (Grade 11 - 12) Faculty of Audit Training on Mobile Forensic Investigation 16
53 Senior Staf (Grade 11 - 12) Faculty of Compliance Employee socialization on Internal & SOP regulation 8
54 Senior Staf (Grade 11 - 12) Faculty of Compliance Refreshment & Coordinating Meeting of BCSO 2017 24
55 Senior Staf (Grade 11 - 12) Faculty of Compliance Certification on Banking Officer Compliance 8
56 Senior Staf (Grade 11 - 12) Faculty of Corporate Affair Refreshment for Secretary 2017 16
57 Senior Staf (Grade 11 - 12) Faculty of Corporate Affair Certified Investor Relations (CIR) 32
58 Senior Staf (Grade 11 - 12) Faculty of Corporate Affair Protocol Seminar for all Branch Office Protocol 8
59 Senior Staf (Grade 11 - 12) Faculty of Human Capital Workshop related to Budgeting 16
60 Senior Staf (Grade 11 - 12) Faculty of Human Capital Workshop on Employee Recruitment Application 24
61 Senior Staf (Grade 11 - 12) Faculty of Human Capital Workshop on Minibank module of Teaching Guide 24
62 Senior Staf (Grade 11 - 12) Faculty of Human Capital Outsourcing Management training 16
63 Senior Staf (Grade 11 - 12) Faculty of Human Capital MVP briefing related to Corporate Culture 8
64 Senior Staf (Grade 11 - 12) Faculty of Human Capital Training on Competency Based Interviewing Technique 48
65 Senior Staf (Grade 11 - 12) Faculty of Human Capital Workshop on Outsourcing Monitoring 8
66 Senior Staf (Grade 11 - 12) Faculty of Human Capital Indonesia Outsourcing seminar for outsource employees 16
67 Senior Staf (Grade 11 - 12) Faculty of Human Capital Training on Labor Law and Industrial Relations 24
68 Senior Staf (Grade 11 - 12) Faculty of Human Capital Training on the Effective Implementation of KM 8
69 Senior Staf (Grade 11 - 12) Faculty of Human Capital Training on Operation module for trainers 24
70 Senior Staf (Grade 11 - 12) Faculty of Human Capital Training related to Google Educator 8
71 Senior Staf (Grade 11 - 12) Faculty of Human Capital Training on Technology-based Google Educator for trainers 16
72 Senior Staf (Grade 11 - 12) Faculty of Human Capital Employee training: Supporting Staff & General Banking Staff 8
2017

Duration
73 Senior Staf (Grade 11 - 12) Faculty of Human Capital New Employee (Secretary) education 2017 8
74 Senior Staf (Grade 11 - 12) Faculty of Human Capital Induction training (Apprenticeship BTN) 2017 8
75 Senior Staf (Grade 11 - 12) Faculty of Human Capital Secretary Development Program professional education 16
76 Senior Staf (Grade 11 - 12) Faculty of Human Capital Great Leader training for Millennial Generation 16
77 Senior Staf (Grade 11 - 12) Faculty of Human Capital Training on Competency Based Training Facilitator 24
78 Senior Staf (Grade 11 - 12) Faculty of Human Capital New Employees Training (Customer Service) 2017 8
79 Senior Staf (Grade 11 - 12) Faculty of Human Capital Training on Incentive of Sales-Individual finalization 16
80 Senior Staf (Grade 11 - 12) Faculty of Human Capital Training for Change Agent related to Corporate Culture 2017 16
81 Senior Staf (Grade 11 - 12) Faculty of Information Technology Workshop on IT Directional & Trend 2017 16
82 Senior Staf (Grade 11 - 12) Faculty of Information Technology Workshop on IT Infrastructure Library 2017 24
83 Senior Staf (Grade 11 - 12) Faculty of Information Technology Workshop on VMware VSphere 40
84 Senior Staf (Grade 11 - 12) Faculty of Information Technology Training and Examination of IT Infrastructure Library Foundation 24
2011 Edition
85 Senior Staf (Grade 11 - 12) Faculty of Information Technology Certification and Examination of In the GE IT 24
86 Senior Staf (Grade 11 - 12) Faculty of Information Technology Training and preparation of examination on the IT Infrastructure 24
Library Foundation
87 Senior Staf (Grade 11 - 12) Faculty of Information Technology Certified IT Procurement Expert (CIPTE) 24
88 Senior Staf (Grade 11 - 12) Faculty of Leadership Employee training for Officer Development Program (ODP) 41 1104
89 Senior Staf (Grade 11 - 12) Faculty of Leadership Employee training for Supervisor Development Program (SDP) 200
90 Senior Staf (Grade 11 - 12) Faculty of Legal Workshop on Contract Drafting 16
91 Senior Staf (Grade 11 - 12) Faculty of Legal Capital Market Law Consultancy Basic Education 1 64
92 Senior Staf (Grade 11 - 12) Faculty of Legal Special Education for Advocate (PKPA) 296
93 Senior Staf (Grade 11 - 12) Faculty of Legal Education for Law Auditor 40
94 Senior Staf (Grade 11 - 12) Faculty of Legal Writing workshop for Business Legal Document 8
95 Senior Staf (Grade 11 - 12) Faculty of Legal Training on Strategy and Technic for Handling 16
96 Senior Staf (Grade 11 - 12) Faculty of Risk Training and Certification for Risk Management Competence 24
97 Senior Staf (Grade 11 - 12) Faculty of Risk RCSA Application Training & Risk Profile Formulation 32
98 Senior Staf (Grade 11 - 12) Faculty of Risk Living Wills, Planning for Bank Recovery training 24
99 Senior Staf (Grade 11 - 12) Faculty of Risk Training on Application of Integrated Risk Management 24
100 Senior Staf (Grade 11 - 12) Faculty of Risk Workshop on BTN-RCSA application 8
101 Senior Staf (Grade 11 - 12) Faculty of Risk Socialization of ISO 31000 Series I: Risk Management 40
102 Senior Staf (Grade 11 - 12) Finance & Accounting Socialization on Taxes legislations 8
103 Senior Staf (Grade 11 - 12) Finance & Accounting Training on Taxes 16
104 Senior Staf (Grade 11 - 12) Finance & Accounting Socialization on Tax Update & Planning after Tax Amnesty 32
105 Senior Staf (Grade 11 - 12) Finance & Accounting Commercial Bank Monthly Report (LBU) Training 16
106 Senior Staf (Grade 11 - 12) Operational Banking Socialization of BI regulation related to BG 8
107 Senior Staf (Grade 11 - 12) Operational Banking Fraud Prevention For Issuers & Acquirers 24
108 Senior Staf (Grade 11 - 12) Operational Banking Socialization on CIF Form 8
109 Senior Staf (Grade 11 - 12) Operational Banking Socialization of Non-Cash Payment System 16
Duration
110 Senior Staf (Grade 11 - 12) Operational Banking Workshop on Access Level Identification Arrangement 8
111 Senior Staf (Grade 11 - 12) Operational Banking Certification in Operation (IBI) 16
112 Senior Staf (Grade 11 - 12) Operational Banking Verifying Staff training 40
113 Senior Staf (Grade 11 - 12) Others Suksesmulia Inspirational Seminar 8
114 Senior Staf (Grade 11 - 12) Others Suksesmulia Inspirational Session 8
115 Senior Staf (Grade 11 - 12) Others Archive Safety Modernization Urgency training 32
116 Senior Staf (Grade 11 - 12) Others Service Power From WOW to NOW Seminar 8
117 Senior Staf (Grade 11 - 12) Pembiayaan Syariah Workshop BTN Sharia Financing 16
118 Senior Staf (Grade 11 - 12) Retail Funding & Services 2nd Coaching for Sales Officer 32
119 Senior Staf (Grade 11 - 12) Retail Funding & Services Office Channeling Seminar in cooperation with PT Taspen 8
(Persero)
120 Senior Staf (Grade 11 - 12) Retail Funding & Services Sales training for Sales Officer 40
121 Senior Staf (Grade 11 - 12) Retail Funding & Services 2nd Assessment for Sales Officer 8
122 Senior Staf (Grade 11 - 12) Retail Funding & Services Sales training to become POA Staff 24
123 Senior Staf (Grade 11 - 12) Retail Funding & Services 1st Assessment for Sales Officer 8
124 Senior Staf (Grade 11 - 12) Retail Funding & Services 1st Coaching for Sales Officer 8
125 Senior Staf (Grade 11 - 12) Retail Funding & Services Office Channeling 2017 training 8
126 Senior Staf (Grade 11 - 12) Retail Funding & Services Consultative Selling training for Customer Service 8
127 Senior Staf (Grade 11 - 12) Retail Funding & Services Skill Cross Selling skill enhancement for KLKK Customer Service 16
128 Senior Staf (Grade 11 - 12) Service Quality Coaching Clinic Service Quality 8
129 Senior Staf (Grade 11 - 12) Service Quality Service Inspiring Leader training for SQUH & SAS 32
130 Senior Staf (Grade 11 - 12) Service Quality Training Tour for the winner of Best Frontliner Award 32
131 Senior Staf (Grade 11 - 12) Service Quality Workshop on Financial Information Service System (SLIK) 8
132 Senior Staf (Grade 11 - 12) Service Quality Training and Roleplay Office Channeling & SLIK 8
133 Senior Staf (Grade 11 - 12) Service Quality Refreshment on CIF, SLIK, and SPN 8
134 Senior Staf (Grade 11 - 12) Service Quality Training on the Debtor Information Implementation for trainers 8
135 Senior Staf (Grade 11 - 12) Service Quality Refreshment on IDQ, CIF, SLIK, and SPN 8
136 Senior Staf (Grade 11 - 12) Sharia Funding Sharia Funding training for Experienced Hire 16
137 Senior Staf (Grade 11 - 12) Treasury Workshop on Foreign Currency Transactions 8
138 Senior Staf (Grade 11 - 12) Treasury Workshop on Treasury Management 24
139 Senior Staf (Grade 11 - 12) Treasury Training on Basic Bond & Fixed Income Portfolio 24
140 Senior Staf (Grade 11 - 12) Treasury Socialization related to the Delima product and Remittance 8
141 Senior Staf (Grade 11 - 12) Wealth Management Module 2 Wealth Management Training 32
142 Senior Staf (Grade 11 - 12) Wealth Management Module 3 Wealth Management Training 32
143 Senior Staf (Grade 11 - 12) Wealth Management Sales training for Priority Banking Officer 32
144 Senior Staf (Grade 11 - 12) Wealth Management BTN Priorities Personality Development 16
145 Assistant Manager (Grade 13 - 14) Service Quality Coaching Clinic Service Quality 8
146 Assistant Manager (Grade 13 - 14) Collection & Asset Management Training on Coaching Influencer 8

Duration
147 Assistant Manager (Grade 13 - 14) Collection & Asset Management Receivables Management Mechanism Training 16
148 Assistant Manager (Grade 13 - 14) Collection & Asset Management Influencer training for Branch Coordinator 16
149 Assistant Manager (Grade 13 - 14) Collection & Asset Management Loan settlement training for bad loan with Cessie & AYDA 16
150 Assistant Manager (Grade 13 - 14) Commercial Lending Workshop on Commercial Loan product 16
151 Assistant Manager (Grade 13 - 14) Commercial Lending Training on Basic Loan Commercial Analyst 48
152 Assistant Manager (Grade 13 - 14) Commercial Lending Training on Loan Relationship Management 40
153 Assistant Manager (Grade 13 - 14) Commercial Lending Commercial Lending Gathering 8
154 Assistant Manager (Grade 13 - 14) Commercial Lending Marketing training for RM Commercial 8
155 Assistant Manager (Grade 13 - 14) Commercial Lending Workshop on Fundamental Corporation & Syndicated Loan 16
156 Assistant Manager (Grade 13 - 14) Commercial Lending Training on Advance Commercial Loan Analyst 48
157 Assistant Manager (Grade 13 - 14) Consumer Lending Education on A Comprehensive on Mortgage for Bankers 16
158 Assistant Manager (Grade 13 - 14) Consumer Lending Training on Negotiation Skill In Business 24
159 Assistant Manager (Grade 13 - 14) Consumer Lending Training to Break Loan & Consultative Selling for Head of 40
Sub-Branch
160 Assistant Manager (Grade 13 - 14) Consumer Lending Workshop on be Motivator be Champion for consumer loan 8
161 Assistant Manager (Grade 13 - 14) Consumer Lending Training on Consumer Loan Marketing 32
162 Assistant Manager (Grade 13 - 14) Consumer Lending Training on Basic Loan Consumer Analyst 40
163 Assistant Manager (Grade 13 - 14) Consumer Lending Corporate Loan & Syndication training 24
164 Assistant Manager (Grade 13 - 14) Digital Banking Digital Banking Workshop with HIMBARA 24
165 Assistant Manager (Grade 13 - 14) Faculty of Audit Audit Command Language (ACL) training 32
166 Assistant Manager (Grade 13 - 14) Faculty of Audit CISA training 312
167 Assistant Manager (Grade 13 - 14) Faculty of Audit IAIB CAES workshop 16
168 Assistant Manager (Grade 13 - 14) Faculty of Audit Fraud Prevention & Detection workshop 16
169 Assistant Manager (Grade 13 - 14) Faculty of Compliance ASEAN CG Scorecard Tim ACGS Workshop 8
170 Assistant Manager (Grade 13 - 14) Faculty of Compliance Refreshment on Compliance Certification Level 1 16
171 Assistant Manager (Grade 13 - 14) Faculty of Compliance Workshop on Rules Sequences & Mechanism 8
172 Assistant Manager (Grade 13 - 14) Faculty of Compliance Anti-bribery Seminar: ISO 37001 8
173 Assistant Manager (Grade 13 - 14) Faculty of Corporate Affair MC & Public Speaking training 8
174 Assistant Manager (Grade 13 - 14) Faculty of Human Capital Preparation of Retirement Program training 40
175 Assistant Manager (Grade 13 - 14) Faculty of Human Capital Certified Professional Human Resource 16
176 Assistant Manager (Grade 13 - 14) Faculty of Human Capital Workshop on Corporate Culture Preparation 16
177 Assistant Manager (Grade 13 - 14) Faculty of Human Capital MVP briefing related to Corporate Culture 8
178 Assistant Manager (Grade 13 - 14) Faculty of Human Capital Operation Academy Module Preparation 16
179 Assistant Manager (Grade 13 - 14) Faculty of Human Capital Socialization on Sales Incentive and Vocational 8
180 Assistant Manager (Grade 13 - 14) Faculty of Human Capital Kaizent Event Experience 24
181 Assistant Manager (Grade 13 - 14) Faculty of Human Capital the Company Strategic Workforce Planning 16
182 Assistant Manager (Grade 13 - 14) Faculty of Information Technology IT Planning 2017 Workshop 16
183 Assistant Manager (Grade 13 - 14) Faculty of Information Technology Training IT Infrastructure Library Foundation 2017 Edition 24
Duration
184 Assistant Manager (Grade 13 - 14) Faculty of Information Technology Training IT Infrastructure Library 2017 40
185 Assistant Manager (Grade 13 - 14) Faculty of Information Technology Training VMware VSphere v6.5 40
186 Assistant Manager (Grade 13 - 14) Faculty of Information Technology Facing the Financial Technology industry 16
187 Assistant Manager (Grade 13 - 14) Faculty of Information Technology Project Management Prince2 Foundation 24
188 Assistant Manager (Grade 13 - 14) Faculty of Information Technology Managing IT Risk: GRC-ITGOV-150 16
189 Assistant Manager (Grade 13 - 14) Faculty of Information Technology Training and Examination related to IT Infrastructure Library 24
190 Assistant Manager (Grade 13 - 14) Faculty of Leadership Leadership Series 2017 Training 16
191 Assistant Manager (Grade 13 - 14) Faculty of Leadership Manager Development Program 96
192 Assistant Manager (Grade 13 - 14) Faculty of Leadership GMAT Preparation Program S2 Abroad 96
193 Assistant Manager (Grade 13 - 14) Faculty of Leadership MDP Requirements 96
194 Assistant Manager (Grade 13 - 14) Faculty of Leadership Officer Development Program (ODP) 40 8
196 Assistant Manager (Grade 13 - 14) Faculty of Leadership Advanced Leadership Program training 24
198 Assistant Manager (Grade 13 - 14) Faculty of Legal Legal Audit & Legal Opinion Drafting Training 8
199 Assistant Manager (Grade 13 - 14) Faculty of Legal Stock Opname and document finishing 8
200 Assistant Manager (Grade 13 - 14) Faculty of Legal Seminar on PPAT Certainty of Deed 8
201 Assistant Manager (Grade 13 - 14) Faculty of Management System Training on Implementation of Management Office 24
Transformation
202 Assistant Manager (Grade 13 - 14) Faculty of Management System Training on KPKU Interpretation for State-Owned Enterprises 24
203 Assistant Manager (Grade 13 - 14) Faculty of Management System Consignment of KPKU State-Owned Enterprises BTN 2017 16
204 Assistant Manager (Grade 13 - 14) Faculty of Management System KPKU-based Performance Evaluator for State-Owned 24
Enterprises
205 Assistant Manager (Grade 13 - 14) Faculty of Management System AODN Summit 2018 (International Conference) 24
206 Assistant Manager (Grade 13 - 14) Faculty of Management System Refreshment on KPKU 2017 for State-Owned Enterprises 8
207 Assistant Manager (Grade 13 - 14) Faculty of Risk Training on Risk Management & GCG Implementation 16
208 Assistant Manager (Grade 13 - 14) Faculty of Risk Training on Risk Management Strengthening 16
209 Assistant Manager (Grade 13 - 14) Faculty of Risk Refreshment on UKMR 2017 8
210 Assistant Manager (Grade 13 - 14) Faculty of Risk Certification of Level 1 UKMR (LSPP) 24
211 Assistant Manager (Grade 13 - 14) Faculty of Risk Statistics Based Credit Risk Scoring Models 8
212 Assistant Manager (Grade 13 - 14) Faculty of Risk BTN-RCSA Application Workshop 16
213 Assistant Manager (Grade 13 - 14) Faculty of Risk Risk Management training 24
214 Assistant Manager (Grade 13 - 14) Finance & Accounting Workshop on IFRS 9 16
215 Assistant Manager (Grade 13 - 14) Operational Banking Socialization on Pilot Project CIF Web BDS 16
216 Assistant Manager (Grade 13 - 14) Operational Banking Certification on Operation 16
217 Assistant Manager (Grade 13 - 14) Others 8th Affordable Housing Projects Seminar 32
218 Assistant Manager (Grade 13 - 14) Others Training on The 7 Habits For Manager 16
219 Assistant Manager (Grade 13 - 14) Others Training on Microsoft Excel Advance & VBA 32
220 Assistant Manager (Grade 13 - 14) Others Powerful Social Media-Content Marketing 16

Duration
221 Assistant Manager (Grade 13 - 14) Others Workshop on Facebook Ads Mastery 16
222 Assistant Manager (Grade 13 - 14) Others Training on Amazing Presentation For Business 16
223 Assistant Manager (Grade 13 - 14) Others Workshop & Regulation Update 16
224 Assistant Manager (Grade 13 - 14) Others Political Economy Outlook 2018 Seminar 8
225 Assistant Manager (Grade 13 - 14) Others Strategic Marketing Communications 40
226 Assistant Manager (Grade 13 - 14) Retail Funding & Services Consultative Selling For Cash Office Head Training 24
227 Assistant Manager (Grade 13 - 14) Retail Funding & Services Sales Academy-Sales Manager (Supervisor) 40
228 Assistant Manager (Grade 13 - 14) Retail Funding & Services Assessment 1 for Sales Manager 8
229 Assistant Manager (Grade 13 - 14) Retail Funding & Services Assessment 1 for Sales Officer 8
230 Assistant Manager (Grade 13 - 14) Retail Funding & Services Experience Hire Cash Office Head 40
231 Assistant Manager (Grade 13 - 14) Retail Funding & Services Coaching 1 for Sales Officer 8
232 Assistant Manager (Grade 13 - 14) Retail Funding & Services Training Marketing On Desk (MOD) 8
233 Assistant Manager (Grade 13 - 14) Retail Funding & Services Coaching 2 for Sales Manager 8
237 Assistant Manager (Grade 13 - 14) Retail Funding & Services Assessment 2 for Sales Officer 8
238 Assistant Manager (Grade 13 - 14) Retail Funding & Services Socialization on BTN Ready & Preparation of AAJI Certification 8
239 Assistant Manager (Grade 13 - 14) Retail Funding & Services Assessment 2 for Sales Manager 8
241 Assistant Manager (Grade 13 - 14) Retail Funding & Services Product Knowledge on SDB, Insurance & IB 8
242 Assistant Manager (Grade 13 - 14) Sharia Others Product & Instrument Treasury On Sharia 24
243 Assistant Manager (Grade 13 - 14) Treasury Everything U Need to Know a/ Derivative 16
244 Assistant Manager (Grade 13 - 14) Treasury Hedging & Treasury Transactions Records 16
245 Assistant Manager (Grade 13 - 14) Treasury 45th Basic Treasury Training 32
246 Assistant Manager (Grade 13 - 14) Treasury SKBDN Training 16
247 Assistant Manager (Grade 13 - 14) Treasury ALMA STRATEGIC & FTP Training 24
248 Assistant Manager (Grade 13 - 14) Treasury Workshop Global Treasury Management 24
249 Assistant Manager (Grade 13 - 14) Wealth Management Module 1 Wealth Management Training 32
250 Assistant Manager (Grade 13 - 14) Wealth Management Selling training for Priority Banking Officer 24
251 Assistant Manager (Grade 13 - 14) Wealth Management Financial Planning training for Priority Banking Officer 32
252 Assistant Manager (Grade 13 - 14) Wealth Management Financial Planning Fee Base Income Training 8
253 Manager (Grade 15 - 16) Collection & Asset Management Post Assessment Influencer 8
254 Manager (Grade 15 - 16) Commercial Lending Credit Risk Desk (CRD) Training 24
255 Manager (Grade 15 - 16) Consumer Lending Breaking Loan - Consultative Selling SBH 48
256 Manager (Grade 15 - 16) Faculty of Audit Fraud in Financial Transaction Workshop 16
257 Manager (Grade 15 - 16) Faculty of Audit QMS Auditor - Lead Auditor 40
258 Manager (Grade 15 - 16) Faculty of Audit Socialization on Anti-Fraud & WBS Strategies 8
Duration
259 Manager (Grade 15 - 16) Faculty of Audit CISA Preparation Full Package Training 40
260 Manager (Grade 15 - 16) Faculty of Audit Certified Information System Auditor 24
261 Manager (Grade 15 - 16) Faculty of General Affair SOE Asset Rescue Strategy 8
262 Manager (Grade 15 - 16) Faculty of Human Capital MVP briefing related to Corporate Culture 8
263 Manager (Grade 15 - 16) Faculty of Information Technology CGEIT 2017 Training 24
264 Manager (Grade 15 - 16) Faculty of Leadership Advanced Leadership Program 24
265 Manager (Grade 15 - 16) Faculty of Leadership Leadership Series Basic 24
266 Manager (Grade 15 - 16) Faculty of Management System Refreshment on KPKU BTN 2017 24
267 Manager (Grade 15 - 16) Faculty of Management System Assessor Preparation Course (APC) KPKU 16
268 Manager (Grade 15 - 16) Faculty of Risk UKMR Certification Level 2 24
269 Manager (Grade 15 - 16) Faculty of Risk UKMR-BSMR Certification Level 3 16
270 Manager (Grade 15 - 16) Operational Banking ASWIFTINDO Networking Forum 2017 8
271 Manager (Grade 15 - 16) Operational Banking Workshop on Financial Transactions Fraud 16
272 Manager (Grade 15 - 16) Others The Power of Credibility And Trust 16
273 Manager (Grade 15 - 16) Others ISO 9001:2015-QMS Interpretation & Doc 24
274 Manager (Grade 15 - 16) Others Workshop on Negotiation Skill 16
275 Manager (Grade 15 - 16) Others ISO 22301-based Business Management 24
276 Manager (Grade 15 - 16) Others Upgrading ISO 9001:2008 to 9001:2015 16
277 Manager (Grade 15 - 16) Others Quality Audit ISO 9001: 2015 training 16
278 Manager (Grade 15 - 16) Others Certified Contact Center Manager 32
279 Manager (Grade 15 - 16) Others ISO 9001:2015-QMS Transition Course 8
280 Manager (Grade 15 - 16) Retail Funding & Services Coaching 1 for Sales Manager 8
282 Manager (Grade 15 - 16) Retail Funding & Services Consultative Selling training for Head of Sub-Branch 40
284 Manager (Grade 15 - 16) Retail Funding & Services Assessment 1 for Sales Officer 8
285 Manager (Grade 15 - 16) Retail Funding & Services Assessment 2 for Sales Officer 8
286 Manager (Grade 15 - 16) Retail Funding & Services Socialization on National GOJEK Roll Out Program 8
287 Manager (Grade 15 - 16) Sharia Others Workshop on Sharia Treasury Management 24
288 Manager (Grade 15 - 16) Sharia Others Workshop on Sharia Capital Market 2017 8
289 Manager (Grade 15 - 16) Treasury Workshop on Liquidity Risk Management 16
290 Manager (Grade 15 - 16) Treasury Workshop on Trade Based Financial Crime 16
291 Manager (Grade 15 - 16) Wealth Management Financial Planning training for Priority Banking Manager 32
292 Manager (Grade 15 - 16) Wealth Management Examination of Mutual Funds Sales Representatives (WAPERD) 8
293 Manager (Grade 15 - 16) Wealth Management PPL of Mutual Funds Sales Representatives (WAPERD) 8
294 Manager (Grade 15 - 16) Wealth Management Workshop on Bancassurance & Mutual Funds 8
295 Senior Manager (Grade 17) Faculty of Audit Qualified Internal Auditor Certification 88
296 Senior Manager (Grade 17) Faculty of Audit Workshop on Fraud In Banking Industry 16

Duration
297 Senior Manager (Grade 17) Faculty of Audit Advanced Audit Internal II Certification 96
298 Senior Manager (Grade 17) Faculty of Audit Loan training on Four Eyes Principle 16
299 Senior Manager (Grade 17) Faculty of Compliance Socialization related to the Directives of APU-PPT policy 8
300 Senior Manager (Grade 17) Faculty of Human Capital Workshop on Job Evaluation & Job Analysis 24
301 Senior Manager (Grade 17) Faculty of Human Capital The 2nd Asia Pacific HR Forum Conference 16
302 Senior Manager (Grade 17) Faculty of Leadership Asean Fixed Income Conference 8
303 Senior Manager (Grade 17) Faculty of Leadership Senior Manager Development Program 88
304 Senior Manager (Grade 17) Faculty of Legal Bankruptcy Training and PKPU 16
305 Senior Manager (Grade 17) Faculty of Legal Workshop on Law Aspect of SOE Holding 16
306 Senior Manager (Grade 17) Faculty of Risk Refreshment on UKMR (LSPP) 8
307 Senior Manager (Grade 17) Faculty of Risk IRRBB (Interest Rate Risk Banking Book) 24
308 Senior Manager (Grade 17) Finance & Accounting CKPN Seminar & IFRS Implementation 24
309 Senior Manager (Grade 17) Others Workshop on KPMM & ATMR 16
310 Senior Manager (Grade 17) Others GCG Implementation and Assessment Strategy 16
311 Senior Manager (Grade 17) Retail Funding & Services Coaching 2 for Sales Manager 8
312 Senior Manager (Grade 17) Retail Funding & Services Coaching 1 for Sales Manager 8
313 Senior Manager (Grade 17) Retail Funding & Services Assessment 2 for Sales Manager 8
314 Senior Manager (Grade 17) Sharia Others Training for the Candidate of Head of Sharia Branch Offices 264
315 Senior Manager (Grade 17) Treasury Basic Fixed Income Securities 16
316 Assistant Vice President (Grade 18) Collection & Asset Management Training on Post Assessment Influencer 8
317 Assistant Vice President (Grade 18) Collection & Asset Management Training on Bad Loan Strategies 16
318 Assistant Vice President (Grade 18) Commercial Lending Workshop on Function, Duties, and Authorities of CLSD 16
319 Assistant Vice President (Grade 18) Commercial Lending Workshop and Training on Credit Risk Division 8
320 Assistant Vice President (Grade 18) Commercial Lending Senior Credit Officer Competence Examination 24
321 Assistant Vice President (Grade 18) Faculty of Audit Workshop on Digital Forensic Basic 24
322 Assistant Vice President (Grade 18) Faculty of Audit IIA Indonesia National Conference 2017 16
323 Assistant Vice President (Grade 18) Faculty of Audit IX IAIB 2017 National Conference 24
324 Assistant Vice President (Grade 18) Faculty of Corporate Affair International CIR 8
325 Assistant Vice President (Grade 18) Faculty of Human Capital Integrated Training Design Program 16
326 Assistant Vice President (Grade 18) Faculty of Leadership The 2nd International Leadership Seminar 16
327 Assistant Vice President (Grade 18) Faculty of Leadership Analytics Leaders’ Summit 16
328 Assistant Vice President (Grade 18) Faculty of Management System Workshop on BTN KPKU Champion Team 40
329 Assistant Vice President (Grade 18) Faculty of Management System Workshop for SOE Human Resources Directors & Managers 8
330 Assistant Vice President (Grade 18) Faculty of Risk Workshop on Risk-Based Rating 24
331 Assistant Vice President (Grade 18) Others ESQ HR Management in Economic Crisis 8
332 Assistant Vice President (Grade 18) Others NLP Training "Communication Expert" 48
333 Assistant Vice President (Grade 18) Others ESQ Quantum Excellence Training 24
334 Assistant Vice President (Grade 18) Retail Funding & Services Coaching 3 for BTN Sales Supervisor 24
Duration
335 Assistant Vice President (Grade 18) Treasury Workshop on All About Currency Option 24
336 Vice President (Grade 19 - 20) Commercial Lending Senior Credit Officer Certification 24
337 Vice President (Grade 19 - 20) Commercial Lending Credit Policy Certification 24
338 Vice President (Grade 19 - 20) Commercial Lending Training on Commercial Credit Motivation 8
339 Vice President (Grade 19 - 20) Commercial Lending Loan Certification 8
340 Vice President (Grade 19 - 20) Commercial Lending Level 3 Credit Policy Competence Examination 8
341 Vice President (Grade 19 - 20) Digital Banking Workshop on Digital Banking & Fintech 16
342 Vice President (Grade 19 - 20) Faculty of Compliance Seminar on Payment System Directives 8
343 Vice President (Grade 19 - 20) Faculty of Compliance Seminar on Mutual Review Assessment of APU-PPT 16
344 Vice President (Grade 19 - 20) Faculty of General Affair Training on Self-Regulation Formulation Method 24
345 Vice President (Grade 19 - 20) Faculty of General Affair Workshop on Public Relations 24
346 Vice President (Grade 19 - 20) Faculty of Human Capital English Presentation For Executive Training 912
347 Vice President (Grade 19 - 20) Faculty of Leadership Strategic Leaders Program 40
348 Vice President (Grade 19 - 20) Faculty of Leadership 6th SESPIBANK Training 8
349 Vice President (Grade 19 - 20) Faculty of Leadership OMDT SESPIBANK 67/2017 Certification 16
350 Vice President (Grade 19 - 20) Faculty of Leadership 67th SESPIBANK Certification 344
351 Vice President (Grade 19 - 20) Faculty of Legal Indonesian Liquidators Training 40
352 Vice President (Grade 19 - 20) Faculty of Management System Workshop on SOE and subsidiaries 8
353 Vice President (Grade 19 - 20) Faculty of Management System Training for KPKU Criteria and Implementation 8
354 Vice President (Grade 19 - 20) Faculty of Management System Workshop on BTN 2018 Business Plan 16
355 Vice President (Grade 19 - 20) Faculty of Risk Refreshment of UKMR (BARA) 264
356 Vice President (Grade 19 - 20) Faculty of Risk Workshop on KRI Simulated Based 16
357 Vice President (Grade 19 - 20) Faculty of Risk Level 5 UKMR Certification Refreshment 16
358 Vice President (Grade 19 - 20) Faculty of Risk Bara Risk Forum Seminar 16
359 Vice President (Grade 19 - 20) Faculty of Risk Risk Management Update 8
360 Vice President (Grade 19 - 20) Faculty of Risk Refreshment on UKMR Level 4 (LSPP) 8
361 Vice President (Grade 19 - 20) Faculty of Risk Training IRRBB, Understanding OJK CP 16
362 Vice President (Grade 19 - 20) Faculty of Risk Level 3 Banking Competence Certification 8
363 Vice President (Grade 19 - 20) Faculty of Risk Refreshment on Level 3 Risk Management 8
364 Vice President (Grade 19 - 20) Faculty of Risk Refreshment on Level 4 UKMR (IRPA) 8
365 Vice President (Grade 19 - 20) Finance & Accounting IFRS 9 : Financial Instruments 16
366 Vice President (Grade 19 - 20) Others 50 Hours Business English Conversation 400
367 Vice President (Grade 19 - 20) Others Indonesia Change Management Forum (ICMF) 8
368 Vice President (Grade 19 - 20) Others Indonesia Marketeers Festival 2017 8
369 Vice President (Grade 19 - 20) Others The Positive Leader - DCO Transformation 40
370 Vice President (Grade 19 - 20) Others Moderator on KNKS Grand Launching 8
371 Vice President (Grade 19 - 20) Others Level 3 General Banking Competence Certification 8
372 Vice President (Grade 19 - 20) Sharia Others International Islamic Risk Management 8

Duration
373 Vice President (Grade 19 - 20) Wealth Management Workshop on Financial Planning 8
374 Executive Vice President (Grade 21) Faculty of Audit Workshop on Successful Audit Strategy and Risk Mitigation 8
375 Executive Vice President (Grade 21) Faculty of Risk Refreshment on UKMR Level 4 16
376 Executive Vice President (Grade 21) Finance & Accounting Workshop on Asset Accounting Implementation 8
377 Executive Vice President (Grade 21) Finance & Accounting Asset Accounting Training (PSAK & ISAK) 24
378 Executive Vice President (Grade 21) Faculty of Leadership Workshop on Developing Leadership Competencies 32
379 Executive Vice President (Grade 22) Faculty of Risk Refreshment on UKMR Level 3 (LSPP) 8
380 Executive Vice President (Grade 22) Others Marketing In The Era Of Disruption 16
Throughout 2017, the Company has conducted development 5,320 hours. Meanwhile, the School of Banking is attended
programs that were attended by 13,896 employees, by 9,736 participants with a total of 5,800 training hours. The
categorized into 3 (three) types of training. School of Business School of Leadership is attended by 1,112 participants with
training dominates as it reached 13,295 participants or 55.07% a total of 2,776 training hours. The data is depicted in the
of total participants in 2017. The total training hours reached following graph:
25.000 24.143
20.000
15.000 13.896
13.295
10.000 9.736
5.320 5.800
5.000
participants 2.776
1.112
hours trained 0
School of Business School of Leadership School of Operation Total
The Cost of Employee Competence Development

In 2017, the training cost Rp164,685,890,161. It increased training needs of employee. The following graphic depicted
by 14.36% compared with the cost in 2016 which was the training cost in the last 3 years:
Rp141,039,323,404. The increased cost was adapted to the
200.000.000.000
164.685.890.161
150.000.000.000 141.039.323.404
105.993.657.000
100.000.000.000
2017
50.000.000.000
2016
2015 0
training cost
Group Structure, Subsidiaries,

Associations, and Venture Companies
The Company is a State-Owned Enterprise, in which the Republic of Indonesia owns 60% of the shares. The
Public owns the rest of 40% as described in the Shareholder Composition sub-chapter. As of December
31, 2017, the Company does not own any subsidiaries, associations, joint ventures, and special purpose
vehicles (SPV). Therefore, there is no information related to the Company’s group structure in terms of the
share ownership percentage, field of business, and operational status of the subsidiaries, associations,
joint ventures, or the special purpose vehicles (SPV).
Share Listing Chronology

Information related to the Company’s Share Listing Chronology is explained
in more detail at Performance Overview Chapter in 2017.
Securities Chronological Listing

Bond Chronological Listing
Nominal Period Stock

Bonds (in Rp million) Issuance Date Maturity Date (years) Coupon Rank*) Matured Exchange
BTN Bond XIV 2010 1.650.000 June 11, 2010 June 11, 2020 10 10,250% idAA+ No
BTN Bond XV 2011 1.300.000 28 Juni 2011 28 Juni 2021 10 9,500% idAA+ No
BTN Continuous Bond I 2.000.000 June 5, 2012 June 5, 2022 10 7,900% idAA+ No
Phase I 2012
BTN Continuous Bond I 2.000.000 March 27, 2013 March 27, 2023 10 7,900% idAA+ No
Indonesia
Phase II 2013
Stock
Exchange
BTN Continuous Bond II 900.000 July 8, 2015 July 8, 2018 3 9,625% idAA+ No

Nominal Period Stock

Bonds (in Rp million) Issuance Date Maturity Date (years) Coupon Rank*) Matured Exchange
BTN Continuous Bond II 1.347.000 August 30, 2016 August 30, 2019 3 8,200% idAA+ No
Phase II 2016 Series A
BTN Continuous Bond II 1.653.000 August 30, 2016 August 30, 2021 5 8,750% idAA+ No
Phase II 2016 Series B
BTN Continuous Bond III 1,466,000 July 13, 2017 July 13, 2020 3 8,300% idAA+ No
Indonesia
Stock
BTN Continuous Bond III 1,295,000 July 13, 2017 July 13, 2022 5 8,500% idAA+ No Exchange
BTN Continuous Bond III 853,000 July 13, 2017 July 13, 2024 7 8,700% idAA+ No
BTN Continuous Bond III 1,386,000 July 13, 2017 July 13, 2027 10 8,900% idAA+ No
Total 17.950.000
*) Rating by PT Pefindo (March 8, 2017 – March 1, 2018)
Bonds Issued by the Company
BTN Bonds I 50,000 5 years July 25, 1994 *) 18.75% fixed
BTN Bonds II 50,000 5 years June 1, 1995 *) 16.25% fixed
BTN Bonds III 50,000 5 years November 11, 1996 *) 20.00% fixed
BTN Bonds IV 100,000 5 years January 23, 1996 *) 17.00% fixed
BTN Bonds V 150,000 5 years July 31, 1998 *) 15.25% fixed for first and second
years, floating for remaining years
until maturity
BTN Bonds VI 350,000 5 years December 21, 2000 *) 17.25% fixed for the first year,
floating for remaining years until
maturity
BTN Bonds VII 200,000 5 years July 22, 2001 *) 17.125% fixed for the first year,
floating for remaining years until
maturity
BTN Bonds VIII 400,000 5 years July 18, 2002 *) 14.15% fixed
BTN Bonds IX 750,000 5 years October 2, 2008 *) 12.50% fixed
Obligasi BTN X/ BTN Bonds X 750,000 5 tahun/years May 25, 2009 *) 12.20% fixed
Obligasi BTN XI/ BTN Bonds XI 750,000 5 tahun/years July 6, 2010 *) 12.00% fixed
Obligasi BTN XII/ BTN Bonds XII 1,000,000 10 tahun/years September 19, 2016 12.75% fixed
Obligasi BTN XIII A/ BTN Bonds XIII A 300,000 3 tahun/years May 29, 2012 *) 11.75% fixed
Obligasi BTN XIII B/ BTN Bonds XIII B 300,000 4 tahun/years May 29, 2013 *) 12.00% fixed
Obligasi BTN XIII C/ BTN Bonds XIII C 900,000 5 tahun/years May 29, 2014 *) 12.25% fixed
BTN Bonds XIV 1,650,000 10 years June 11, 2020 10.25% fixed
BTN Bonds XV 1,300,000 10 years June 28, 2021 9.50% fixed
BTN Continuous Bonds I Phase I 2,000,000 10 years June 5, 2022 7.90% fixed
BTN Continuous Bonds I Phase II 2,000,000 10 years March 27, 2023 7.90% fixed
BTN Continuous Bonds II Phase I Series A 900,000 3 years July 8, 2018 9.625% fixed
BTN Continuous Bonds II Phase I Series B 500,000 5 years July 8, 2020 9.875% fixed
BTN Continuous Bonds II Phase I Series C 800,000 7 years July 8, 2022 10.00% fixed
BTN Continuous Bonds II Phase I Series D 800,000 10 years July 8, 2025 10.50% fixed
BTN Continuous Bonds II Phase II Series A 1,347,000 3 years August 30, 2019 8.20% fixed
BTN Continuous Bonds II Phase II Series B 1,653,000 5 years August 30, 2021 8.75% fixed
BTN Continuous Bonds III Phase I Series A 1,466,000 3 years July 13, 2020 8.30% fixed
BTN Continuous Bonds III Phase I Series B 1,295,000 5 years July 13, 2022 8.50% fixed
BTN Continuous Bonds III Phase I Series C 853,000 7 years July 13, 2024 8.70% fixed
BTN Continuous Bonds III Phase I Series D 1,386,000 10 years July 13, 2027 8.90% fixed
BTN Subordinated Bonds I 250,000 10 years May 25, 2014 **) 12.60% fixed for first year until fifth
year, 22.60% fixed for sixth year
until tenth year if the Bank does not
exercise its option to buy back on the
fifth year since the issuance date
*) The Bank has made the repayment of bonds issued on maturity date
**) The Bank has exercised the call options on May 25, 2009
Housing Loan Securitization Chronological Listing

The Company has securitized Housing Loan bills through the scheme of Asset-
Backed Securities Collective Investment Contract (KIK-EBA) and Asset-Backed
Securities Participation Contract (EBA-SP), as follows:
Issuance Amount Stock

Security Type (Rp Million) Coupon (%) Issuance Date Maturity Date Rate Exchange
1st BTN Housing Loan Class A 1.000.000 13,00% February 11, 2009 January 10, 2018 idAAA
Securitization (KIKDSMF01) Indonesia
Class B 11.111
Stock
2nd BTN Housing Loan Class A 360.000 11,00% November 10, December 10, 2019 idAAA Exchange
Securitization (KIKDSMF02) 2009
Class B 31.305

Issuance Amount Stock

Security Type (Rp Million) Coupon (%) Issuance Date Maturity Date Rate Exchange
3rd BTN Housing Loan Class A 688.500 9,25% December 27, February 27, 2019 idAAA
Securitization (KIKDBTN01) 2010
Class B 61.500
4th BTN Housing Loan Class A 645.000 8,75% November 16, February 27, 2021 idAAA
Class B 58.450
5th BTN Housing Loan Class A 925.000 7,75% December 12, January 7, 2023 idAAA
Class B 75.000 Indonesia

6th BTN Housing Loan Kelas A1 403.000 8,90% December 20, February 26, 2022 idAAA Stock
Securitization (KIKDBTN04) 2013 Exchange
Kelas A2 525.000 9,50%
Kelas B 72.000
7th BTN Housing Loan Kelas A1 723.500 10,00% December 2, 2014 September 7, 2025 idAAA
Securitization (KIKDBTN05)
Kelas A2 647.500
Kelas B 129.000
8th BTN Housing Loan Kelas A 181.600 8,60% December 4, 2015 March 7, 2022 idAAA
Securitization (EBA-SP SMF-
BTN01) Kelas B 18.400
Negotiable Certificate of Deposit (NCD) Chronological Listing
Amount (Rp Interest

Negotiable Certificate of Deposit (NCD) Type Million) Term (Months) (%) Issuance Date Maturity Date
BTN NCD I Phase I 2014 Series C 300.000 15 9.50 December 5, 2014 February 26, 2016
BTN NCD I Phase II 2015 Series B 85.000 12 9.25 February 26, 2015 February 8, 2016
BTN NCD I Phase II 2015 Series C 10.000 15 9.50 February 26, 2015 May 19,2016
BTN NCD I Phase II 2015 Series D 440.000 18 9.70 February 26, 2015 August 18, 2016
BTN NCD II Phase II 2015 Series B 620.000 12 9.00 April 30, 2015 April 30, 2016
BTN NCD II Phase II 2015 Series C 160.000 18 9.25 April 30, 2015 October 30, 2016
Matured Negotiable Certificate of Deposit (NCD)
Amount (Rp Term Interest

Negotiable Certificate of Deposit (NCD) Type Million) (Months) (%) Issuance Date Maturity Date
BTN NCD I Phase I 2014 Series A 280.000 6 9.00% December 5, 2014 June 4, 2015
BTN NCD I Phase I 2014 Series B 45.000 12 9.25 December 5, 2014 November 27, 2015
BTN NCD I Phase II 2015 Series A 470.000 6 9.00% February 26, 2015 August 26, 2015
BTN NCD I Phase III 2015 500.000 5 9.00% February 17, 2015 July 15, 2015
BTN NCD II Phase II 2015 Series A 330.000 6 8.75% April 30, 2015 October 30, 2015
Certifications and Awards
The Company continues to work to provide the best for stakeholders, as

evidenced by the achievements of numerous awards and appreciation from
various institutions both in national and international level, as follows:
Awards
International
ASEAN GRC Awards Winner Gold Award in the category

from Enterprise Risk of Corporate Governance &
Management Academy Investor Relation
International Institution from The Asset - Hongkong
“ASEAN Risk Award 2017” International Institution
7 Desember 2017 “The Asset Corporate Award 2017”
International Desember 13, 2017
International
National
Analyst’s Picks The Best Digital Banking

from CSA Institute 2012-2016, Commercial
Association of Indonesian Bank Sharia Business Unit
Securities Analyst from Majalah Infobank
“‘Let’s Buy Shares’ Goes to Campus” National Magazine
March 13, 2017 “6th Digital Bank Award”
National March 30, 2017
National
Category of Media Markplus and State-Owned

Relations, Sub-category of Enterprises (BUMN) Public
Limited Liability Company, Relations Forum
State-Owned Enterprises from Markplus dan Forum
from PR Indonesia Humas BUMN
National Magazine “BUMN Marketeers Awards 2017”
“PR Indonesia Awards 2017” May 3, 2017
March 24, 2017 National
National

Highest Asset Growth in the The Best Bank In

last 5 years (2012-2016) Retail Banking Services
from Majalah Investor from Majalah Tempo
Banking Magazine National Magazine
Investor Award “Indonesia Banking Award”
June 13, 2017 15 September 2017
National National
The Best Sharia The Best Bank In

Business Unit Digital Services
from Ikatan Ahli Ekonomi from Majalah Tempo
Islam (IAEI) National Magazine
Islamic Institution “Indonesia Banking Award”
“IAEI Award” 15 September 2017
July 26 - 27, 2017 National
National
The Bank with the The Most Efficient Bank

Biggest Housing Loan from Majalah Tempo
Disbursement 2017 National Magazine
from Majalah Housing Indonesia “Indonesia Banking Award”
Property Magazine 15 September 2017
“Real estate Creative Award” National
August 11, 2017
National
Best Limited Liability Best Sharia Business Unit

Company in Indonesia from Majalah Tempo
from Economic Review Magazine National Magazine
Economic Magazine “Indonesia Banking Award”
“Anugerah Perbankan Indonesia” 15 September 2017
August 23, 2017 National
National
Marketing Innovation Best Bank In Productivity

from Sindo from Majalah Tempo
National Newspaper National Magazine
“Innovation Appreciation” “Indonesia Banking Award”
August 28, 2017 15 September 2017
National National
2nd Rank in the category The Leading In Home

of Listed Financial State- Loan Bank
Owned Enterprises from Majalah Properti
from Indonesia Financial National Magazine
Services Authority “Properti Indonesia Award 2017”
Financial Industry Regulator October 17, 2017
“Annual Report Award” National
September 20, 2017
National
The Most Popular Company The Top 50 Companies

from Warta Ekonomi For 2017
National Magazine from Forbes Indonesia
“Corporate PR Award of Warta National Magazine
Ekonomi Indonesia 2017” “Best of The Best Awards 2017”
September 29, 2017 October 19, 2017
National National
The Most Popular Bank with the biggest

Company In Asia Housing Loan Market Share
from Warta Ekonomi from Property & Bank
National Magazine National magazine
“Corporate PR Award of Warta “Indonesia Property and Bank
Ekonomi Indonesia 2017” Award 2017”
September 29, 2017 November 9, 2017
National National
Sharia Unit with “Excellent” The Most Favorite

predicate on the Sharia Leadership
Business Unit Financial from Majalah Property & Bank
Performance throughout 2016 National magazine
from Infobank Magazine “Indonesia Property and Bank
National Magazine Award 2017”
“Infobank 6th Sharia Awards 2017” November 9, 2017
October 13, 2017 National
National

The Appreciation of Best Performance Bank in the

Synergization in Financial category of Sharia Business Unit
Inclusion of Commercial Bank
from Ministry of State- from Republika
Owned Enterprises National Newspaper
Government Institution “Republika Sharia Awards 2017”
“Rapat Kordinasi BUMN di Bengkulu” December 6, 2017
November 22-23, 2017 National
National
Top 50 Of The Biggest

Market Capitalization
Public Listed Companies
from IICD (Indonesian Institute
For Corporate Directorship) Special Award in the category
National Institution of the Best Digital Marketing
“9th IICD Corporate Governance from BUMN Track
Conference And Award” National magazine
November 27, 2017 “BUMN Branding & Marketing
National Award 2017”
December 14, 2017
National
Best Financial Sector

from IICD (Indonesian Institute For
Corporate Directorship
National Institution “Good Corporate Governance
“9th IICD Corporate Governance Award 2017” Indonesia Most
Conference And Award” Trusted Companies
27 November 2017 from IICG dan SWA
National December 19, 2017
National
Top 3 Popular Bank, Top 5 Most Reputable

Top 3 Complete Banking Companies in Banking
Product Sector With Core Capital
from Majalah Warta Ekonomi Rp5 – 30 Trillion
National magazine from Warta Ekonomi
“Indonesia Best Banking Brand” National magazine
29 November 2017 “Indonesia Best Corporate
National Reputation Award”
Desember 14, 2017
National
Good Financial Performance 7th Rank in the category of

kategori State-owned Bank State-Owned Enterprises
from Majalah Warta Ekonomi from Central Information
National magazine Commission of the Republic of
“Indonesia Best Banking Brand Award” Indonesia
29 November 2017 Government Institution
National “Public Information Disclosure
Ranking 2017”
Desember 21, 2017
National
Gold Winner Corporate Best Performance

Branding Kategori Digital from Republika
Branding National Newspaper
from Majalah BUMN Track “Republika Sharia Awards 2017”
National magazine December 6, 2017
“BUMN Branding & Marketing National
Award 2017”
December 14, 2017
National
The Best CEO of the Year The Best PR for CEO

from Mens Obsession Magazine from Warta Ekonomi
Magazine National Magazine
“Mens Obbsesion Award” “Corporate PR Award of Warta
30 Maret 2017 Ekonomi Indonesia 2017”
National September 29, 2017
National
The Best CEO 2017 The Most Popular CEO

from Housing Indonesia from Warta Ekonomi
Property Magazine National Magazine
“Realestate Creative Award” “Corporate PR Award of Warta
August 11, 2017 Ekonomi Indonesia 2017”
National September 29, 2017
National
The Best CEO Bank-2017 CEO Kategori Developing Talent

from Economic Review Magazine from BUMN Magazine
Economic Magazine Government Institution
“Anugerah Perbankan Indonesia” “BUMN Awards 2017”
August 23, 2017 CEO in the category of
National Developing Talent
National

Certifications
ISO 9001:2008 ISO 9001:2008

Mortgage Processing (Ready Stock for Non- Risk Management Service
from SGS Indonesia
Subsidized Housing Loan and Apartment Loan)
Recipient Risk Management Division
from Application to Loan Disbursement masa berlaku September 15, 2018
from SGS Indonesia
Recipient Non-Subsidized Mortgage &
Consumer Lending Division
Expiry September 15, 2018
ISO 9001:2008 ISO 9001:2015

Compliance Assurance For The Following Activities
from SGS Indonesia Internal Audit Services
Recipient Compliance Division from United Kingdom Accreditation Service (UKAS)
Expiry September 15, 2018 Recipient General, Sharia and IT Audit
Expiry July 2017 until July 2020
Map of Operational Area
1
Sumatera
2
Regional Offices 1
Branch Offices 12
Sub Branch Offices 44
Cash Offices 61
Sharia Outlets 10
Priority Outlets 6
Post Office 700
ATM 256
2 3 4
Jawa Kalimantan Sulawesi
Regional Offices 3 Regional Offices 0 Regional Offices 1
Branch Offices 45 Branch Offices 6 Branch Offices 6
Sub Branch Offices 185 Sub Branch Offices 18 Sub Branch Offices 16
Cash Offices 368 Cash Offices 20 Cash Offices 21
Sharia Outlets 53 Sharia Outlets 4 Sharia Outlets 3
Priority Outlets 26 Priority Outlets 5 Priority Outlets 2
Post Office 1.627 Post Office 299 Post Office 126
ATM 1.437 ATM 94 ATM 103

4
6
5 6
Bali and Nusa Tenggara Papua and Maluku Outlet Network 2015 2016 2017
Regional Offices 0 Regional Offices 0 Regional Offices 3 4 5
Branch Offices 65 65 75
Branch Offices 3 Branch Offices 3
Sub Branch Offices 223 243 275
Sub Branch Offices 9 Sub Branch Offices 3
Cash Offices 479 477 484
Cash Offices 10 Cash Offices 4
Sharia Outlets 50 65 71
Sharia Outlets 1 Sharia Outlets 0
Priority Outlets 40 40 41
Priority Outlets 2 Priority Outlets 0
Total Outlets 860 894 951
Post Office 141 Post Office 61 Post Office 2951 2.951 2.954
ATM 50 ATM 24 ATM 1.830 1.830 1.964
Names and Addresses of Regional

and Branch Offices
Head Office
Jl. Gajah Mada No. 1 Jakarta Pusat 10130
Phone : (021) 6336789, 6332666
Facs. : (021) 6346704
Email : csd@btn.co.id
Website: www.btn.co.id
Regional Office
Regional Office 1 Regional Office 3 Regional Office 5

Gedung Bank BTN Jl. Raya Darmo No. 123-125 Surabaya- Jl. Sultan Hassanudin No. 1 Makassar
Kantor Cabang Bekasi Lt. 4 Jawa Timur 60241 Phone : (0411) 5070760
Jl. Jend. Sudirman No. 19 Bekasi 17143 Phone : (031) 5661704 , 5661204 Facs. : -
Phone : (021) 88953281, 88953282 Facs. : (031) 5661696 Email : kantorwilayah5@btn.co.id
Facs. : (021) 8849519 Email : kantorwilayah3@btn.co.id
Email : kantorwilayah1@btn.co.id
Regional Office 4
Regional Office 2 Komplek Perkantoran Batam Center
Jl. HOS Cokroaminoto No. 95 Jl. Engku Putri No. 1, Kel. Belian,
Jakarta Pusat 10310 Kec. Nongsa Batam Center
Phone : (021) 2301184, 31901656, Phone : (0778) 7711331, 7711215,
3905775 7711661
Facs. : - Facs. : -
Email : kantorwilayah2@btn.co.id Email : kantorwilayah4@btn.co.id
Conventional Branch Offices
Conventional Branch Offices Region I
Bandung Branch Office Bekasi Branch Office Karawang Branch Office

(Main Branch Office) (Main Branch Office) (Branch Office I)
Jl. Jawa No. 7 Bandung 40117 Jl. Jend. Sudirman No. 19 Bekasi 17143 Jl. Kertabumi No. 29 A-D,
Phone : (022) 4232112, 4241036, Phone : (021) 8840649 Karawang 41311 Jawa Barat
4241034 Facs. : (021) 8849519 Phone : (0267) 412282 - 83
Facs. : (022) 4204562 Email : kc.bekasi@btn.co.id Facs. : (0267) 412247
Email : kc.bandung@btn.co.id Email : kc.karawang@btn.co.id
Depok Branch Office
Bogor Branch Office (Branch Office I) Cikarang Branch Office
(Main Branch Office) Jl. Margonda Raya No. 186 Depok 16423 (Branch Office I)
Jl. Pengadilan No. 13-15 Bogor 16121 Phone : (021) 7751236-37 Ruko Cikarang Commercial Center B1
Phone : (0251) 8311700 Facs. : (021) 7772927 No. 3-5 Jl. Raya Cikarang-Cibarusah
Facs. : (0251) 8323007, 8351432 Email: kc.depok@btn.co.id Km. 40 Cikarang 17550
Email : kc.bogor@btn.co.id Phone : (021) 8936275 / 89830014
Facs. : (021) 8936418
Email : kc.cikarang@btn.co.id

Cirebon Branch Office Harapan Indah-Bekasi Branch Office Tasikmalaya Branch Office
(Branch Office II) (Branch Office II) (Branch Office III))
Jl. Siliwangi No. 16 Cirebon 45121 Ruko Office Park Harapan Indah Blok Jl. Sutisna Senjaya No. 101
Phone : (0231) 209143, 209153 OP Kavling No. OP1-01 & OP1-02, Tasikmalaya 46112
Facs. : (0231) 209777 Harapan Indah - Bekasi 17132 Phone : (0265) 334464 - 65
Email : kc.cirebon@btn.co.id Phone : (021) 88386971 (hunting) , Facs. : (0265) 330884
88386972, 88386974 Email : kc.tasikmalaya@btn.co.id
Purwakarta Branch Office Facs. : (021) 88386974
(Branch Office II) Email : kc.harapanindah@btn.co.id Cimahi Branch Office
Jl. RE. Martadinata No. 1 (Branch Office III)
Purwakarta 41114 East Bandung Branch Office Jl. Jend. Amir Machmud / Raya Timur
Phone : (0264) 201024, 210830 - 31, (Branch Office III) No. 475 Cimahi Cimahi 40524
206637 Jl. Raya Cinunuk No. 223 A Kec. Cileunyi, Phone : (022) - 6651644, 6651645
Facs. : (0264) 201591 Kab. Bandung Facs. : (022) - 6652586
Email : kc.purwakarta@btn.co.id Phone : (022) 7816883 Email : kc.cimahi@btn.co.id
Facs. : (022) 7838482, 7816876
Cibubur Branch Office Email : kc.bandungtimur@btn.co.id Sukabumi Branch Office
(Branch Office II) (Branch Office III)
Ruko Madison Blok B1 No. 6-8 Jl. Jendral Sudirman No. 49,
Cibubur Time Square Kel. Sriwedari, Kec. Gunung Puyuh,
Jl. Raya Alternatif transyogi Km. 3 Sukabumi - Jawa Barat
Cibubur-Bekasi 17435 Phone : (0266) 223446,235951
Phone : (021) - 84300071 - 73 Facs. : (0266) 223447
Email : kc.cibubur@btn.co.id Email : kc.sukabumi@btn.co.id
Conventional Branch Offices Region II
Kuningan Jakarta Branch Office Kelapa Gading Square Branch Office Ciputat Branch Office (Branch Office I)
(Main Branch Office) (Main Branch Office) Jl. Dewi Sartika No. 21 Ciputat 15411
Wisma Budi Lt. 1 & 2, Jl. H.R. Rasuna Said Gedung Emerald Tower Jl. Boulevard Phone: (021) 7445145
Kav. C6 Jakarta 12940 Barat Blok XB No. 3 Kelapa Gading - Facs. : (021) 7490968, 7402731
Phone : (021) 52964652 Jakarta Utara 14240 Email : kc.ciputat@btn.co.id
Facs. : (021) 52964974 Phone : (021) - 45866883,
Email : kc.jakartakuningan@btn.co.id 45866884 Cawang Jakarta Branch Office
Facs. : (021) – 45866885 (Branch Office I)
Harmoni Jakarta Branch Office Patria Park Apartment & Office
(Main Branch Office) Kebon Jeruk Jakarta Branch Office RK 01-02 Jl. DI Panjaitan Kav. 5-7,
Jl. Gajah Mada No. 1 (Branch Office I) Jakarta Timur 13340
Central Jakarta – 10130 Jl. Anggrek No. 01 Kel. Kelapa Dua, Phone : (021) 85918467 - 69
Phone : (021) 6336789, 6332666, Kec. Kebon Jeruk Kebon Jeruk, Facs. : (021) 85918470
2310490 Jakarta Barat 11550 Email : kc.jakartacawang@btn.co.id
Facs. : (021) 6386593, 6332676, Phone : (021) 53666345
6333021 Facs. : (021) 59666344 Melawai Jakarta Branch Office
Email : kc.jakartaharmoni@btn.co.id Email : kc.jakartakebonjeruk@btn.co.id (Branch Office II)
Jl. Melawai Raya No. 19 C-D,
Kelapa Gading Square Branch Office Tangerang Branch Office Kel. Melawai, Kec. Kebayoran Baru-
(Main Branch Office) (Main Branch Office) Jakarta Selatan
Jl. Gajah Mada No. 1 Jl. Perintis Kemerdekaan No. 01 Phone : (021) 27517843, 27517840
Jakarta Pusat 10130 Tangerang 15118 Facs. : (021) 27517858
Phone : (021) 6336789, 6332666, Phone : (021) 5539363 Email : kc.jakartamelawai@btn.co.id
2310490 Facs. : (021) 5537977, 5581186
Facs. : (021) 6386593, 6332676, Email : kc.tangerang@btn.co.id
6333021
Email : kc.kelapagadingsquare@btn.co.id
Cilegon Branch Office (Branch Office II) Bumi Serpong Damai Branch Office Karawaci Branch Office
Jl. Sultan Ageng Tirtayasa No. 49 (Branch Office II) (Branch Office II)
Cilegon 42414 Komp. BSD, Ruko Sektor VII E Perumnas Karawaci I , Jl. Cendrawasih
Phone : (0254) 391766, 392681, Blok K No. 8, Jl. Raya Serpong, No. 1 Tangerang 15115
393479 Tangerang 15310 Phone : (021) 5517849 - 50
Facs. : (0254) 393480 Phone : (021) 5372235 - 37 Facs. : (021) 5524367, 5511420
Email : kc.cilegon@btn.co.id Facs. : (021) 5372238 Email : kc.karawaci@btn.co.id
Email: kc.bumiserpongdamai@btn.co.id
Conventional Branch Offices Region III
Surabaya Branch Office Sidoarjo Branch Office Jember Branch Office

(Main Branch Office) (Branch Office I) (Branch Office III)
Jl. Pemuda No. 50 Surabaya 60271 Jl. Ahmad Yani No. 15 – Sidoarjo Jl. A. Yani No. 05 Jember 68118
Phone : (031) 5353513-19 Phone : (031) 8929211 , 8957949 - Phone : (0331) 484611, 489292,
Facs. : (031) 5345073, 5458002 50 489266
Email : kc.surabaya@btn.co.id Facs. : (031) 8957951 Facs. : (0331) 484617
Email : kc.sidoarjo@btn.co.id Email: kc.jember@btn.co.id
Semarang Branch Office
(Main Branch Office) Yogyakarta Branch Office Pekalongan Branch Office
Jl. M.T. Haryono No. 717 (Branch Office II) (Branch Office III)
Semarang 50242 Jl. Jend. Sudirman No. 71 Jl. Merdeka No. 7 Pekalongan 51113
Phone : (024) 312151, 446166 Yogyakarta 55223 Phone : (0285) 433883 - 84, 433484,
Facs. : (024) 312186 Phone : (0274) 589898, 581014, 433917, 413222
Email : kc.semarang@btn.co.id 581016 Facs. : (0285) 433926 , 413902
Facs. : (0274) 561289 Email : kc.pekalongan@btn.co.id
Solo Branch Office (Branch Office II) Email : kc.yogyakarta@btn.co.id
Jl. Slamet Riyadi No. 282 Solo 57141 Purwokerto Branch Office
Phone : (0271) 726930 Mataram Branch Office (Branch Office III)
Facs. : (0271) 726931 (Branch Office II) Jl. Jend. Sudirman No. 431
Email : kc.solo@btn.co.id Jl. Pejanggik No. 99-101 Cakranegara, Purwokerto 53116
Mataram 83121 Phone : (0281) 641114
Kupang Branch Office Phone : (0370) 631186, 638289 Facs. : (0281) 638386
(Branch Office III) Facs. : (0370) 634542 Email : kc.purwokerto@btn.co.id
Jl. Jend. Sudirman No. 87 Kupang 85119 Email : kc.mataram@btn.co.id
Phone : (0380) 831004 Kediri Branch Office
Facs. : (0380) 833741 Bangkalan Branch Office (Branch Office III)
Email : kc.kupang@btn.co.id (Branch Office III) Jl. Diponegoro No. 22 - 24 Kediri 64121
Jl. Teuku Umar No. 16, Kel. Kemayoran, Phone : (0354) 691260 - 62
Denpasar Branch Office (Branch Office I) Kec. Bangkalan 69116 Facs. : (0354) 691265
Jl. Dewi Sartika No. 2 Phone : (031) 3098929, 3098831, Email : kc.kediri@btn.co.id
Denpasar 80114 3098930
Phone : (0361) 243811 Facs. : (031) 3098834 Gresik Branch Office
Facs. : (0361) 243815 Email : kc.bangkalan@btn.co.id (Branch Office III)
Email : kc.denpasar@btn.co.id Komp. Pertokoan Multi Sarana Plaza
Madiun Branch Office Blok C 01 No. 1
Malang Branch Office (Branch Office III) Jl. Gubernur Suryo, Gresik 61118
(Branch Office I) Jl. Dr. Sutomo No. 38 Madiun 63116 Phone : (031) 3973455
Jl. Ade Irma Suryani No. 2-4 Phone : (0351) 451460, 459034, Facs. : (031) 3973456
Malang 65119 459034, 457927, 459500 Email : kc.gresik@btn.co.id
Phone : (0341) 323956 Facs. : (0351) 463510
Facs. : (0341) 323959, 350050 Email : kc.madiun@btn.co.id
Email : kc.malang@btn.co.id

Bukit Darmo Surabaya Branch Office Kudus Branch Office Mojokerto Branch Office
(Branch Office III) (Branch Office III) (Branch Office III)
Jl. Mayjend HR Muhammad Kav. 399, Jl. Ahmad Yani No : 45 Kel. Panjunan, Jl. Majapahit No. 130 - 134 Blok1-2,
kel. Putat Gede, Kec. Sukomanunggal Kec. Kota, Kab. Kudus Mojokerto 61323
Phone : (031) 7323344, 7322146, Jawa Tengah 59312 Phone : (0321) 323850, 323853
7322147 Phone : (0291) 438732 Facs. : (0321) 323853
Facs. : (031) 7232899 Facs. : (0291) 4250112
Email: kc.surabayabukitdarmo@btn.co.id Email: kc.kudus@btn.co.id Bayuwangi Branch Office
(Branch Office III)
Tegal Branch Office (Branch Office III) Magelang Branch Office Jl. Brawijaya No. B-1 dan B-2,
Jl. Gajah Mada No. 33 - Tegal (Branch Office III) Kel. Sobo, Kec. Banyuwangi,
Phone : (0283) 343050, 343835, Jl. Tentara Pelajar No. 40, Magelang Kab. Banyuwangi
323038 Phone : (0293) 3215983 Phone : (0333) 414490 dan 415690
Facs. : (0283) 357439 Facs. : (0293) 3215463 Facs. : (0333) 415676
Email : kc.tegal@btn.co.id Email : kc.magelang@btn.co.id Email: kc.banyuwangi@btn.co.id
Conventional Branch Offices Region IV
Medan Branch Office Padang Branch Office Tanjung Pinang Branch Office
(Branch Office I) (Branch Office II) (Branch Office III)
Jl. Pemuda No. 10A Medan 20151 Jl. H. R. Rasuna Said No. 3 Padang 25129 Jl. D.I. Panjaitan Km. 9 Komplek Plaza
Phone : (061) 4149777 Phone : (0751) 31903, 32094 - 96 Bintan Center Blok Bunga No. 9 - 12
Facs. : (061) 4158112, 4153203 Facs. : (0751) 31900, 34938 Tanjung Pinang
Email : kc.medan@btn.co.id Email : kc.padang@btn.co.id Phone : (0771) 7447101 , 7447088
Facs. : (0771) 7447082
Jambi Branch Office (Branch Office II) Pematang Siantar Branch Office Email : kc.tanjungpinang@btn.co.id
Jl. H. M. Yusuf Singadikane No. 146 Jambi (Branch Office III)
Phone : (0741) 61793, 61792 Jl. Sutomo No. 5 G-H, Kel. Proklamasi, Pangkal Pinang Branch Office
Facs. : (0741) 62665 Kec. Pematang Siantar Barat - (Branch Office III)
Email : kc.jambi@btn.co.id Pematang Siantar Jl. Perniagaan, Mall Bangka Trade
Phone : (0622) 28887 Center B11 - B14 - Pangkal Pinang
Palembang Branch Office Facs. : (0622)24020 Phone : (0717) 423748
(Branch Office I) Email : kc.pematangsiantar@btn.co.id Facs. : (0717) 488706
Jl. Jend. Sudirman Km. 4,5 No. 125 Email: kc.pangkalpinang@btn.co.id
Palembang 30128 Bandar Lampung Branch Office
Phone : (0711) 411175, 410552 (Branch Office III) Banda Aceh Branch Office
Facs. : (0711) 410854 Jl. Wolter Monginsidi No. 80-88 (Branch Office III)
Email : kc.palembang@btn.co.id Bandar Lampung 35215 Jl. Sri Ratu Afiatuddin No. 19 - 23 ,
Phone : (0721) 489253 - 55, 484778, Gampong Peunayong, Banda Aceh
Batam Branch Office 483256 Phone : (0651) 35756, 35757
(Branch Office I) Facs. : (0721) 489252 Facs. : (0651) 35758
Jl. Engku Putri No.1, Kel. Belian, Email : kc.bandarlampung@btn.co.id Email : kc.bandaaceh@btn.co.id
Nongsa Batam Center
Phone : (0778) 470630, 470625-28 Bengkulu Branch Office
Facs. : (0778) 457262, 453923 (Branch Office III)
Email : kc.batam@btn.co.id Jl. Soeprapto No. 7 - 8,
Bengkulu 38223
Pekanbaru Branch Office Phone : (0736) 20875
(Branch Office I) Facs. : (0736) 20874
Jl. Jend. Sudirman No. 393 Email : kc.bengkulu@btn.co.id
Pekanbaru 28116
Phone : (0761) 40494, 40185 - 88
Facs. : (0761) 32271, 44776
Email : kc.pekanbaru@btn.co.id
Conventional Branch Offices Region V
Panakukang Branch Office Banjarmasin Branch Office Jayapura Branch Office

(Branch Office III) (Branch Office I) (Branch Office III)
Jl. Hertasning Blok I No. 2 Jl. R. E. Martadinata No. 4 Jl. Koti No. 22 Jayapura 99111
Makassar 90222 Banjarmasin 70111 Phone : (0967) 537970-71
Phone : (0411) 868831, 868833 Phone : (0511) 4368133, 4366669 - 70 Facs. : (0967) 533373
Facs. : (0411) 868833 Facs. : (0511) 4366492, 43363964 Email : kc.jayapura@btn.co.id
Email : kc.panakukang@btn.co.id Email : kc.banjarmasin@btn.co.id
Kendari Branch Office
Gorontalo Branch Office Samarinda Branch Office (Branch Office II) (Branch Office III)
(Branch Office III) Jl. RE. Martadinata No. 01 Jl. A. Yani , Komplek A. Yani Square
Jl. Prof. HB. Yasin No. 55, Kel Limba U2, Samarinda 75127 Blok. A6-7 Kendari 93117
Kota Selatan - Gorontalo Phone: (0541) 736930, 731695, Phone : (0401) 322101
Phone : (0435) 830490, 829481 731510 Facs. : (0401) 322502
Facs. : (0435) 826707, 823943 Facs. : (0541) 737698 Email : kc.kendari@btn.co.id
Email : kc.gorontalo@btn.co.id Email : kc.samarinda@btn.co.id
Ambon Branch Office
Ternate Branch Office Pontianak Branch Office (Branch Office III)
(Branch Office III) (Branch Office II) Jl. Diponegoro No. 75B Ambon
JL. Pahlawan Revolusi (Samping Kantor Jl. Imam Bonjol No. 29 Phone : (0911) 355882, 354471,
Pos Ternate) Kel. Gamalama, Ternate Pontianak 78122 348552, 355882
Tengah – Maluku Utara Phone: (0561) 740163 Facs. : (0911) 348559
Phone : (0921) - 3111330 Facs. : (0561) 740168 Email : kc.ambon@btn.co.id
Facs. : (0921) - 3126968 Email : kc.pontianak@btn.co.id
Email : kc.ternate@btn.co.id Palu Branch Office (Branch Office III)
Banjarbaru Branch Office Jl. Jend. Sudirman No. 2, Palu 94111
Balikpapan Branch Office (Branch Office III) Phone : (0451) 424555, 428555, (0451)
(Branch Office III) Jl. Ahmad Yani Km 33 RT 01 RW 01, 425993
Jl. Jend. Sudirman No. 141 Loktabak Utara, Banjarbaru, Email : kc.palu@btn.co.id
Balikpapan Kalimantan Selatan 71114
Phone : (0542) 420333 Phone: (0511) 774116, 774171 Palangkaraya Branch Office
Facs. : (0542) 420896 Facs. : (0511) 774116 (Branch Office III)
Email : kc.balikpapan@btn.co.id Email : kc.banjarbaru@btn.co.id Jl. Diponegoro No. 23
Palangkaraya 73111
Makassar Branch Office Manado Branch Office Phone : (0536) 3223407, 3222698,
(Main Branch Office) (Branch Office III) 3224136
Jl. Kajaolalido No. 4 Makassar 90111 Jl. Wolter Monginsidi No. 56 Facs. : (0536) 3221020
Phone : (0411) 316016, 316011 Manado 95115 Email : kc.palangkaraya@btn.co.id
Facs. : (0411) 316388 Phone: (0431) 868095, 855504 - 05
Email : kc.makassar@btn.co.id Facs. : (0431) 868013, 863416
Email : kc.manado@btn.co.id
Sharia Branch Office
Harmoni Jakarta Sharia Branch Office Bandung Sharia Branch Office Tangerang Sharia Branch Office
Kec. Gambir - Jakarta Pusat 10130 Jl. Diponegoro No. 8, Bandung Jl. Serpong Raya, Ruko Villa
Phone : (021) 3860617, 3860620, Kel. Citarum, Kec. Bandung Wetan - Melati Mas Blok. SR-1 No. 23-24
3864265 Bandung 40115 Serpong - Tangerang 15320
Facs. : (021) 3447271, (021) 3857706 Phone : (022) 4265472 , 4265473 , Phone : (021) 5370773
Email : kcs.jakartaharmoni@btn.co.id 4265474 Facs. : (021) 5370744
Facs. : (022) 4265385 Email : kcs.tangerang@btn.co.id
Email : kcs.bandung@btn.co.id

Semarang Sharia Branch Office Bekasi Sharia Branch Office Cilegon Sharia Branch Office
Jl. Achmad Yani No. 181 Kel. Wonodri, Jl. Jend. Ahmad Yani Blok A.IV No.5-6 Jl. Jend Ahmad Yani No. 175, Cipete,
Kec. Semarang Selatan, Kota Semarang dan Blok B No. 1 Kel. Kayuringin Jaya Kel. Sumur Pecung, Kec. Serang, Kota
Phone : (024) 8449918, 8449919 Kec. Bekasi Selatan, Kota Bekasi Serang - Banten
Facs. : (024) 8410825 Phone : (021) 8893333 Phone : (0254)378264,378265
Email : kcs.semarang@btn.co.id Facs. : (021) 88956655 Facs. : (0254) 378272
Email : kcs.bekasi@btn.co.id Email : kcs.cilegon@btn.co.id
Malang Sharia Branch Office
Jl. Jaksa Agung Suprapto No. 87, Pekanbaru Sharia Branch Office Pasar Minggu Jakarta
Kel. Rampal Celaket, Kec. Klojen, Jl Tuanku Tambusi Blok A No. 10 - 11, Sharia Branch Office
Kota Malang 65112 Labuh Baru Timur Pekanbaru 28291 Jl. Ruko Grand Palace Blok G & H,
Phone : (0341) 3012469 Phone : (0761) 7891314 Jl. Raya Ps. Minggu Km 16
Facs. : (0341) 579777 Facs. : (0761) 7891313 Pancoran - Jakarta Selatan
Email : kcs.malang@btn.co.id Email : kcs.pekanbaru@btn.co.id Phone : (021) 799 3662,799 3015
Facs. : (021) 799 3174
Surabaya Sharia Branch Office Makassar Sharia Branch Office Email : kcs.pasarminggu@btn.co.id
Jl. Diponegoro No. 29 Surabaya 60271 Jl. Slamet Riyadi No. 7 A
Phone : (031) 5666363,5610518 Kel. Bulogading, Kec. Ujung Tegal Sharia Branch Office
Facs. : (031) 5610519 pandang 90111 Jl. Gajah Mada No. 107 , Kel. Pekauman,
Email : kcs.surabaya@btn.co.id Phone : (0411) 3613399, 3613499 Kec. Tegal Barat Kota Tegal - Jawa
Facs. : (0411) 320785 Tengah 52113
Yogyakarta Sharia Branch Office Email : kcs.makassar@btn.co.id Telp : 0283 - 342923 ,342933
Jl. Faridan M Noto No. 10, Kota Baru, Facs. : 0283 – 342913
Gondokusuman Yogyakarta 55224 Banjarmasin Sharia Branch Office Email : kcs.tegal@btn.co.id
Phone : (0274) 551055, 512467 Jl. Jend. A. Yani Km. 5 Komplek Kencana
Facs. : (0274) 551056 No. 1 Banjarmasin 70249 Tasikmalaya Sharia Branch Office
Email : kcs.yogyakarta@btn.co.id Phone : (0511) 3250530, 3250540, JI. Yudanegara No. 10
3250560 Kel. Yudanegara Kec. Cihideung -
Solo Sharia Branch Office Facs. : (0511) 3260900 Kota Tasikmalaya 46112
Jl. Brigjen Slamet Riyadi No. 332 Email : kcs.banjarmasin@btn.co.id Phone : 0265 - 310612, 7296566,
Solo 57141 7296567, 7296568
Phone : (0271) 712127, 7008978, Cirebon Sharia Branch Office Facs. : 0265 – 310613
7008947 Jl. Dr. Cipto Mangunkusumo Email : kcs.tasikmalaya@btn.co.id
Facs. : (0271) 717276 No. 91 Cirebon
Email : kcs.solo@btn.co.id Phone : (0231) 235485 - 86 - 88 Banda Aceh Sharia Branch Office
Facs. : (0231) 205790 Jl. Teuku Umar No. 430-432, Kel.
Batam Sharia Branch Office Email : kcs.cirebon@btn.co.id Lamteumen Timur Kec. Jaya Baru
Jl. Sriwijaya Komp. Regency Park Lot 29 Banda Aceh 23236
Pelita - Batam 29432 Palembang Sharia Branch Office Telp : 0651 - 40330
Phone : (0778) 421921 , 437880 Jl. Veteran No. 325 - 329, Facs : 0651 – 40331
Facs. : (0778) 422126 Palembang 30114 Email : kcs.bandaaceh@btn.co.id
Email : kcs.batam@btn.co.id Phone : (0711) 355417, 355963
Facs. : (0711) 313366 Mataram Sharia Branch Office
Medan Sharia Branch Office Email : kcs.palembang@btn.co.id Jl. Pejanggik No. 18-19 Kel.
Jl. Ir. H. Juanda No. 48 Medan Cakranegara Kab. Mataram
Phone : (061) 4144554 Balikpapan Sharia Branch Office Telp : 0370 - 7503646
Facs. : (061) 4144546 Jl. Jenderal Sudirman No. 565 - 566, Facs : 0651 – 40331
Email : kcs.medan@btn.co.id Balikpapan 76114 Email : kcs.mataram@btn.co.id
Phone : (0542) 742260, 742258
Bogor Sharia Branch Office Facs. : (0542) 742229
Jl. Jendral Sudirman No. 01,
Kec. Bogor Tengah, Bogor 16121
Phone : (0251) 8327171, 8327575
Facs. : (0251) 8324567
Email : kcs.bogor@btn.co.id
Capital Market Supporting Institutions
Institution Type Name and Address of the Institution Service provided Fee Tenure Period
Public Accountant
Purwantono, Sungkoro & Surja Menara 2 Lantai 7 Financial Report Rp2.290 million Desember 31, 2017
(Anggota Ernest & Young Global) Jl. Jenderal Sudirman Kav. 52 – 53, Audit Services, PKBL
Gedung Bursa Efek Indonesia Jakarta 12190 Indonesia (Partnership and
Tel : 62-21 5289 5000 Community Development
Facs. : 62-21 5289 4100 Program) Audit
Rating Agency
PT Pemeringkat Efek Indonesia Setiabudi Atrium Suite 809 - 810 Rating services on Asset- Rp165 million 2016
(Pefindo) Jl. HR Rasuna Said Kav. 62, Backed Securities in the
Jakarta 12920 Indonesia form of Securitization
Tel : 62-21 5795 7755 Transactions for IX BTN
Facs. : 62-21 5795 7750 Housing Loan in 2016
(EBA-SP SMF-BTN 02)
PT Fitch Ratings Indonesia Prudential Tower, 20th Fl Company Rating Services Rp110 million March 2016 – August
Jl. Jenderal Sudiirman Kav. 79, and/or Bank BTN Bonds II 2021
Jakarta 12910 Indonesia Phase II
Tel : 62-21 5795 7755
Facs. : 62-21 5795 7750
Bureau of Securities Administration
PT Datindo Entrycom Puri Datindo – Wisma Sudirman Secondary Market Shares Rp141 million 2017
Jl. Jenderal Sudiirman Kav. 34 - 35, Administrative Services of
Jakarta 10220 Indonesia PT Bank Tabungan Negara
Tel : 62-21 570 9009 (Persero) Tbk
Facs. : 62-21 570 9026
Company’s Website
Under the enactment of Financial Services Authority ›› BTN Housing Index, 2015 – 2016
Regulation No. 8/POJK.04/2015 on the issuance of public ›› Bonds Information, 2015 – 2016
company website, the Company has a website, namely http:// ›› Press Conference related to the Company Quarterly
www.btn.co.id and is updated periodically. The Company’s Performance, 2013 – 2016
website contains information such as: ›› Governance Policy, which covers:
a. Amendment to the Articles of Association
1. Products & Services b. Articles of Association
›› Savings (Deposits, Savings, Demand Deposits) c. Board Manual
›› Loan (Consumer Loan, Commercial Loan) d. Code Of Conduct
›› Services e. Audit Committee Charter
›› BTN Priority f. Revised Audit Committee Charter
2. Sharia Business Unit g. Risk Monitoring Committee
3. BTN Promo (Online BTN Debit , Savings) h. Remuneration and Nomination Committee
4. Investor Relations, which covers: ›› Annual Report, 2002 - 2017
›› Analyst Coverage ›› Financial Report (Monthly and Quarterly), 2002 - 2017
›› Dividend, 2009 - 2016. ›› Leverage Ratio Report, 2015 - 2017

›› Liquidity Coverage Ratio Report, 2015 - 2017 b. Information on ongoing programs/activities;

›› Analyst Meeting Presentation, 2009 - 2017 c. Information on agenda related to the the Company
›› Shareholding composition, 2015 - 2017 task implementation;
›› Indonesia Macro Economy Development d. Information on potential opening for the Company
›› Specific Shareholders employee and/or official;
›› Public Offering Prospectus e. Summary of the Financial Statement;
›› General Meeting of Shareholders covers:Prospektus f. Summary of the Public Information access report;
Penawaran Umum g. Information on the rights and procedures to obtain
a. GMS Announcements Public Information;
b. GMS Summoning h. Information on the rights and procedures to file an
c. GMS Code of Conduct objection;
d. GMS Resolutions i. Information on complaints on abuse of authority or
e. Efforts performed to invite the Shareholders by Management and Employees of the Company;
›› Whistle Blowing System (WBS) j. Information on announcement of procurement of
›› Guidance for Investor Relations Policy goods and services;
5. CSR (Corporate Social Responsibility) PKBL (Partnership k. Information on material facts
and Community Development Program) Report l. PT Bank Tabungan Negara (Persero) Tbk Public
6. E-Channel (ATM, BTN Non-cash ATM & CDM, Laku Information Service
Pandai, BTN Cash Management System, Electronic Data m. The Company Activities 2017
Capture, Internet Banking, BTN Mobile Banking, SMS ›› Information on clauses.
Banking, BTN Virtual Account and Digital Solution) ›› Readily Available Public Information
7. BTN Info a. List of Public Information
›› Information (BTN News, Exchange Rate, ATM Location, b. Information on Organization, Administration,
Office Network, Career) Employment, and Finance.
›› Links c. Information on Good Corporate Governance
›› Procurement of Goods and Services Guideline.
›› Prime Lending Rates (SBDK) d. Information on Third Party Agreements.
›› FAQs e. Information on Important Cases Faced by the
›› Material Information or Facts Company
›› Tax Amnesty f. Information on Public Information Service Report
8. Public Information, which covers: g. The Company Articles of Association
›› Public Information Required to be Periodically h. External Auditor Evaluation Result
Disclosed and Made Available: i. Information on Public Information Regulation
a. Information on the Company Profile; j. Information on Company Regulations
Management Discussion
and Analysis
Achieving maximum operational performance through
integrated marketing of all Bank’s products. Effective and
innovative marketing strategy reinforces the Company’s best
position in the face of fierce competition.
04
04 Management Discussion
and Analysis
155 Industry Analysis 241 Contribution to the State

155 The World Economy 241 Tax Payment
156 Indonesian Economy 241 Dividend Payment Policies and Chronology
157 Banking Industry Condition 243 Commitments for Capital Expenditure
158 The Company’s Position in the Banking Industry 244 Capital Goods Investment
160 Business Prospect 2018 245 Share Ownership Program by Employee and/ or
160 Economical Prospect Management (MSOP/ESOP)
160 The Company’s Housing Business Prospect and 248 Commitment and Contingency
One Million Houses Program 249 Use of Funds from Public Offerings
162 Business Development Strategies 250 Impact of Changes in Interest Rate to
166 Marketing Aspect Company Performance
166 Marketing Strategy 250 Material Information After the Accounting
169 Market Share Reporting Period
171 Operational Analysis 251 Material Information on Investment, Expansion,

Divestment, Acquisitions, or Restructuration of
171 Operational Performance by Segments
Debt and Capital
171 Conventional
251 Financial Information Containing Extraordinary
179 Sharia and Rare Events
182 Banking Services 252 Information on Material Transactions with Conflict
185 Income Per Segment of Interest and/or Transactions with Affiliated or
187 Financial Analysis Related Parties
187 Financial Position Statement 258 Legislation Amendments with Significant Impact
187 Assets 259 Amendment to Accountancy Policy
192 Liabilities 261 Comparison of Target, Realization, and Projection
195 Equity 264 KPI and Bank Soundness Level
196 Statement of Profit or Loss and Other 266 Business Continuity Information
Comprehensive Income 266 Business Continuity Assessment
200 Statement of Cash Flows 266 Corporate Position
202 Solvency and Collectability of Receivables 268 Human Resources Management
206 Financial Ratios 274 Information Technology Governance
208 Capital Structure and Implementation
of Risk Management
208 Capital Structure
210 Risk Management Application

Industry Analysis
The growth of global economy and Indonesia economy in line with the
national inflation movement and stable rupiah exchange rate have a positive
impact on the development of the banking industry. This condition supports
the Company in implementing business development strategy to improve
operational and financial performance.
The World Economy

In 2017, the global economy is expected to grow 3.7% stronger
than the previous year by 3.2%. The growth is supported by the
economy of developed and developing countries more evenly,
especially the United States, the European Union, and China.
Graph World 8
Economic Growth
2013-2017 (% yoy) 7 7.0 6.8
6.6 6.4 6.5
6
Developed Countries
Developing Countries 5 5.0
4.6 4.7
Asia 4.4
4 4.0
Other
3.4 3.7
3.3 3.2 3.2
3
*Forecast 2.3
2 1.9 2.1
Source: 1.7
1 1.2
World Economic
Outlook (WEO) edisi
Januari 2018 0
2013 2014 2015 2016 2017*
The United States economy has been growing due to the sales, and domestic loan growth. The increasing demand
increasing investment and stable consumption. In addition, for exports to the United States, Europe, and ASEAN lead
the unemployment rate lowers but the wages did not increase to significant improvement in the export performance. The
significantly. This phenomenon led to a lower inflation from Government of China also conducts economy rebalancing in
the target, triggering the Fed’s interest rate to increase three the effort to cope with the slowing performance of the public
times over the course of 2017. In Europe, the economy is investment. Such economic developments drive the world
also expected to grow. Consumption and exports contribute trade volume and global commodity prices to grow higher
to Europe’s economic growth. The recovery of world trade and than the previous year. However, a number of risks to the
the weakening of the euro currency in the first semester of global economy will emerge, such as the normalization of
2017 support their export performance. In line with Europe, monetary policy of central banks of developed countries, rising
China economy is expected to grow strongly supported by protectionism (mainly by the US), and geopolitical factors on
consumption and exports. The consumption improvement is the Korean peninsula and the Middle East to beware.
influenced by the decrease in unemployment, increased retail
Indonesian Economy insurance sector, which grew by 5.48% year on year (YoY). The
Indonesian economy grew by 5.07% in 2017, compared to development in the financial and insurance services sectors is
the previous year. This is mainly driven by Investment and influenced by high capital and adequate liquidity to anticipate
Exports, in line with government infrastructure projects and risks and support business expansion to continue presenting
improving global commodity prices. All business sectors stable conditions.
contributed to the growth, including the financial services and
Graph GDP Growth 10 9.81

Based on Business 8.6 8.49 8.44
Field (% yoy) 8
6.79 6.79
6 5.55
5.48
4.61 4.44
4
2
Source:
Statistics Indonesia 0
Information and Other Transportation Corporate Health Services Construction Provision Financial Water Supply, Retail and
Communication Services and Warehouse Services and Social of Food, Services and Waste Trading; Car
Activities Beverages, and Insurance Management, and Motorcycle
Accommodation Waste and Repair
Recycling
In December 2017, the inflation rate was 3.61% (YoY) or is still within the target range even though the administered
remained within the inflation target range of 4.1%. Since 2015, prices inflation increased in the early semester of 2017 related
this inflation target range is maintained by low volatile food to the energy subsidy reform by the Government. The following
inflation, adequate supply support, Government food price graph is the comparison of inflation in the last two years.
stabilization policies, and low global food prices. The inflation
Graph Inflation Rate Comparison 2016-2017 (% yoy)
4.50 4.42 4.45 4.37

4.33
4.14 4.17
3.83 3.88 3.82
3.75 3.61 3.60 3.72 3.61
3.49 3.45 3.58 3.58
3.33 3.21 3.31 3.30
3.00 3.07 3.02
2.79
2.25
1.50
0.75
0
Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec
2016 2017 Source: BPS
Since August 19, 2016, Bank Indonesia uses BI 7-Day Reverse the BI 7-day RR Rate fixed at 4.75%. However, as an effort
Repo Rate (BI 7-day RR Rate) as the interest rate benchmark to support economic recovery, Bank Indonesia lowered the BI
to replace BI Rate. This is an effort to maintain macroeconomic 7-day RR Rate to 4.50% in August and then lowered it again to
stability by maintaining the momentum of economic domestic 4.25% in September through the end of the year. This decline
growth in the midst of weakening global economic growth. In is expected to strengthen the banking intermediation, thus
early 2017 to July 2017, Bank Indonesia decided to maintain strengthening macroeconomic and financial system stability.

Graph BI 7-Day Reverse Repo Rate 2017 (%)

5.00 4.75 4.75 4.75 4.75 4.75 4.75 4.75
4.50
4.25 4.25 4.25 4.25
4.00
3.00
2.00
1.00
0
Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec
Source: Bank Indonesia
The Rupiah exchange rate was stable until September 2017, weakening of almost the entire world’s currencies against USD,
but it weakened in October. This is influenced by external as the normalization of monetary policy of the central banks
factors, such as the United States’ trade policy under the new of developed countries, increased expectations of interest rate
government, China economic rebalancing, and uncertainty in the hikes, and tax reform plans in the United States. Furthermore,
geopolitical issues, especially between the United States and the Rupiah strengthened in line with maintained macroeconomic
North Korea. The weakening rupiah is in accordance with the stability and the prospect of a stable economy.
Graph Rupiah 13,700

Exchange Rate
against USD in 13,600
2017 13,500
13,400
13,300
13,200
13,100
3 Jan 17 3 Mar 17 3 May 17 3 Jul 17 3 Sep 17 3 Nov 17
Banking Industry addition, the level of bank profitability is quite solid, along with
The banking industry condition continues to improve, as the increased efficiency supported by adequate capital. The
reflected in the increase in the number of assets, third-party following is the performance indicators of commercial banks
funds, and loans disbursed compared to the previous year. In in the last five years.
Performance Indicators of Commercial Banks 2013-2017 Source: Indonesia Banking Statistics, November 2017
Description 2013 2014 2015 2016 2017*
Assets (Rp billion) 4,954,467 5,615,150 6,132,583 6,729,799 7,222,351
Third Party Fund (Rp billion) 3,663,968 4,114,420 4,413,056 4,836,758 5,199,486
Loan (Rp billion) 3,319,842 3,706,501 4,092,104 4,413,414 4,645,409
Capital Adequacy Ratio (CAR) (%) 18.13 19.57 21.39 22.93 23.37
Net Interest Margin (NIM) (%) 4.89 4.23 5.39 5.63 5.31
Return on Assets (ROA) (%) 3.08 2.85 2.32 2.23 2.48
Operating Expenses to Operating Revenues (BOPO) (%) 74.08 76.29 81.49 82.22 78.37
Loan Deposit Ratio (LDR) (%) 89.70 89.42 92.11 90.70 88.97
Non-Performing Loan (%) 1.77 2.16 2.49 3.16 2.18
As of November 2017, the Banking Assets grew 7.32% Commercial banks’ capital per November 2017 grew 9.93%
over the previous year. The increase is mainly influenced compared to 2016. The composition is 92.81% of core capital
by the growth of Third-Party Funds (DPK), which increased and 7.19% supplementary capital. Capital growth was higher
as an impact of the Amnesty Tax program. The source of than that of RWA that grew by 7.88%, so the CAR was 23.37%.
Bank funds is dominated by the third-party funds, which Adequate capital encourages the ability of commercial banks
reached 87.25%. In November 2017, DPK increased by 7.50% to generate profits. The bank’s profitability as reflected in
compared to 2016. The DPK increase is driven by the growth the ratio of ROA and NIM has increased, in line with profit
of demand deposits, savings, and time deposits by 48.58%, before tax and interest income, which increased by 22.10%
14.12%, and 27.42%, respectively. The funds are allocated for and 3.14%, respectively.
lending, placements with other banks, placements with Bank
Indonesia, securities, investments, allowance for impairment The Company’s Position in the Banking Industry
losses (CKPN) of financial assets, spot notes and derivatives, The growth support of the banking industry has a positive
and other claims. The largest allocation of funds is for the impact on the Company’s efforts to continuously improve
disbursement of loan to third parties and other banks. Loans its role. The effort is realized through the implementation
disbursed to third parties amounted to Rp4,645,409 billion, an of business development strategy so that the Company
increase of 6.13% compared to 2016, which was Rp4,377,195 succeeded in achieving operational and financial performance
billion. Loan disbursed to other banks amounted to Rp40,330 targets. In 2017, the Company has disbursed loan amounting
billion, an increase of 11.35% compared to 2016 Rp36,220 to Rp196,634 billion or 4.23% of total commercial bank loans.
billion. Loans to third parties that are disbursed as working In order to support the One Million Houses Program, the
capital loan amounted to Rp2,138,876 billion, an increase of Company disbursed loans for 667,312 houses. The realization
4.38% compared to Rp2,049,098 billion in 2016. Investment consists of disbursement of the subsidized loan for 481,329
loan amounted to Rp1,158,751 billion, increased by 2.96% housing units of Rp34,162 billion, and non-subsidized loans
compared to 2016, i.e. Rp1,125,467 billion. Consumption for 185,983 housing units of Rp37,376 billion. The increased in
amounted to Rp1,307,452 billion, increased by 8.72% loan disbursement encourages the Company to improves the
compared to 2016, i.e. Rp1,202,630 billion. loan quality. This commitment is reflected in the Company’s
NPL Net, which decreased to 1.66%.
Graph Loan 5,000,000

Comparison 2013- 4,414,414 4,654,409
2017 (Rp billion) 4,000,000 4,092,104
3,706,501
3,319,842
BTN 3,000,000
Commercial Bank 2,000,000
1,000,000
99,330 114,346 136,905 162,330 196,634

50,000
2013 2014 2015 2016 2017
Loans and financing that increased the Company’s assets to

Rp261,365 billion or 3.62% of the total assets of commercial
banks.
Graph Assets 7,500,000

Comparison 2013- 7,222,351
6,729,799
2017 (IDR million) 6,000,000 6,132,583
5,615,150
4,954,467
BTN 4,500,000
1,500,000
131,170 144,582 171,808 214,168 261,365

100,000
2013 2014 2015 2016 2017

One of the Company’s sources of funding is DPK. The

Company always executes its marketing strategy as an effort
to increase the number of DPK. In 2017, the Company’s DPK
is recorded at Rp177,091 billion or 3.41% of total deposits
of commercial banks.
DPK Comparison 6,000,000
2013-2017 5,199,486
(Rp billion) 5,000,000
4,733,977
4,413,056
4,000,000 4,114,420
BTN 3,663,968
2,000,000
1,000,000
96,208 106,470 127,709 147,787 177,091

50,000
2013 2014 2015 2016 2017
The Company’s financial ratio also shows a positive

performance. Adequate capital is reflected in CAR that
continues to grow along with the lending activities.
Graph CAR 2013- 25

23.42
2017 (Rp billion) 21.39 22.93
20 19.57 20.34
18.13 18.87
BTN 15.62 16.97
15 14.64
Commercial Bank
10
0
2013 2014 2015 2016 2017
ROA is an indicator of profitability, and it continues to

grow. This condition is supported by the Company’s
increased profit growth.
Graph ROA 2013- 3.50
2017 (Rp million)
3.00 3.08
2.85
BTN
2.50 2.49
Commercial Bank 2.32
2.23
2.00
1.79
1.61 1.76 1.71
1.50
1.00 1.14
0.50
0
2013 2014 2015 2016 2017
The performance improvement prompted the Company to

conduct continuous improvements in order to always face
the challenges of business dynamics of the banking industry
in the future.
Business Prospect
Economical Prospect The structure of the national economy is also supported by

Based on the IMF projection in the World Economic Outlook key sectors, which include the Processing Industry; Agriculture,
January 2018, the global economic growth in 2018 is expected Forestry, and Fisheries; Large and Retail Trade; Construction,
to reach 3.9% increase compared to the year 2017, i.e. 3.7%. Information and Communication, Financial Services and
The global economic recovery will boost the world trade Insurances sectors. Several service sectors are expected to
volume and global commodity prices, that will encourage the grow higher above the national average, in accordance with an
economy improvement of developing countries, contributing increasingly conducive investment climate. For example, the
to the improvement of the global economy. Meanwhile, Financial Services and Insurance sector is expected to grow by
developed countries’ economic growth is expected to be 9.4%, driven by increased activity in financial markets and the
stable. The US economy will increase limitedly. On the other penetration of inclusive financial services, through expansion
side, the economy of the European Region will slow down due of technological innovation. (Source: NK RAPBN 2018)
to employment and productivity problems. Japan’s economy
will face aging population problems. Business Prospects for Housing Sector and
One Million Houses Program Development
The global economy is expected to improve in 2018. The Indonesia’s macroeconomic conditions in 2018, is estimated to
improvement is expected to boost investment and export be better than the previous year. This will have a positive impact
performance. Thus, Indonesian economy is predicted to on the banking industry to grow more rapidly. As one of the
grow by 5.3%. Household consumption and Government’s business sectors in the financial services and insurance sector,
consumption increase are contributing to the national the banking industry continues to contribute to increasing
economic growth. Gross Domestic Fixed Capital Formation economic growth through equal distribution of income and
(PMTB) is predicted to grow high, in line with infrastructure community welfare, by providing loan disbursement in the
development and improved investment climate as an effort housing sector. Indonesia’s housing sector has a prospect to
to encourage non-government direct investment. However, grow faster. This is expected due to the number of middle-class
the national economy improvement will face various external population that is predicted to grow significantly from 74 million
risks, among others, derived from the normalization of in 2012 to 141 million by 2020. Projection of middle-class
monetary policy of developed countries central banks, rising population growth in Indonesia is shown in the following graph.
protectionism (mainly by the US), and geopolitical factors on
the Korean peninsula and the Middle East.
Graph of Indonesian 70 68.2

65.4
Population Growth 64.5
Projection 2012 60
and 2020 50.5
50 49.3 47.9
41.6 44.4
2012 40
2020
30
28.3
23.2
20
16.5
10
6.9 6.6
2.5
0
Elite Affluent Upper Middle Emerging Aspirant Poor
Middle Middle

Most of the houses are purchased by Housing Loan (KPR) housing loan demand continues to grow. The housing sector
financing scheme. Despite the slowdown in 2017, the growth is in line with the GDP movement, as illustrated in
housing sector has started to strengthen continuously. Since the following graph.
the issuance of the Loan to Value (LTV) in 2013 and 2016,
Graph GDP and Housing Sector Growth
40 6
5.6 5.6 5.8
5.1 5.3
30 28.3
5.0
4.8
5.0 5
27.1
22
20 20 20 4
16 18
13.7 15
12.7 11.7 11
10 8.4
10 3
7.7
0 2
(10) 1
(14.3)
(20) 0
>55 51 – 55 46 – 50 41 – 45 36 – 40 31 – 35 26 – 30 < 26
GDP Growth Housing Loan Growth Demand of Housing Loan Growth
The housing sector growth is also affected by the One Million Houses Program realization by 2019 is targeted at more than
Houses Program. Bank BTN plays a strategic role in supporting 3 million units. The Company’s commitment to supporting this
program realization, in particular from the banking aspect of program is realized by participating in disbursing housing loans
housing financing for the people. Under the National Medium- for 1.53 million houses since the program was launched by
Term Development Plan (RJPMN) 2015 - 2019, the One Million the Government.
Graph Realization 900

and Target of
750 740 750
One Million 700
661 667
Houses Program 600 595
(Thousand Unit)
474
450 431
Government Target
BTN 300
150
0
2015 2016 2017 2018
Business Development Strategies
The Company performs the ongoing business transformation phase in order

to face the challenges and opportunities in the banking industry. The business
development strategy is implemented, in line with the transformation in order
to improve the Company’s competitive advantage.
The dynamics of global and national economic growth affecting into a strategic initiative every year as published in the Bank
the development of the banking industry continue to create Business Plan 2018-2020. The Company is currently in phase
opportunities and challenges for the Company. As a bank that II transformation, which is the digital banking period, described
strives to be the leading in housing finance, the Company has as follows.
set up a 2016-2020 transformation roadmap, which is derived
Initiative of Transformation on the Digital Banking Phase
2017 2018 2019-2020

Investing to build Building Growth Rapid Growth
a solid foundation Momentum and control
and fund growth
Stronger Human Infrastructures

Business Resources
Each year, the transformation initiatives are implemented by The Company sets the foundation for work in 2018 and the
the Company through strategies to strengthen business and next three years by considering SWOT analysis and national
organizational capabilities, particularly in the field of human economic development. The Company’s Board of Directors sets
resources and infrastructure. The business is strengthened by the direction of the General Policy of the Board of Directors
focusing on two main segments, i.e. commercial banking and (KUD), i.e. “Building growth momentum based on stronger
consumer banking, and supporting the SOE synergy program. business, human capital competence development, and
Organizational capability in the human resources is improved reliable business infrastructure”. Furthermore, the Company
by the internalization of high-performance work culture and prepares a corporate-level Grand Strategy to support the
improving risk culture on all bank’s business operations. The direction of the KUD and achieve key strategies.
infrastructure field is strategically strengthened to support
business sustainability.

Grand Strategy
Sustainable Growth
Strengthening the
Enhancing
mortgage business Strengthening the
Improving non- effectiveness of
positioning and funding structure
interest income collection and
construction value and CASA Ratio
asset recovery
chain
Capital Support
Improving Employees’ Quality and Productivity
Strengthening the risk management and integrated GRC
Improving IT capability to support the digital banking

and digitalization process
Corporate Level Grand strategy consists of four pillars of 3. Improving non-interest income sources
business to achieve the Company’s long-term vision, i.e. to The Company sees that the non-interest income sources
be the leading bank in the housing financing, equipped with have the potential to be improved. In addition, the non-
four enabler pillars as supporters. These pillars are described interest income is a new engine growth for the Company
as follow: with a focus on developing digital banking services. The
1. Strengthening the mortgage business position and bank policy to realize that is:
construction value chain ›› Increasing non-interest income based on
Loan sector strengthening is focused on strengthening administration and service fees
the bank’s core business in housing and the expansion of ›› Expanding corporate banking and treasury activities by
the construction value chain to support the increase in the developing targeted transactions of commercial and
supply of housing. The direction of bank policy in loan is: institutional customers;
›› Strengthening loan positioning on the mass segment ›› Conducting cross-selling in order to improve the
(subsidized and mass non-subsidized) Supply Chain Financing (SCF) transaction to the anchor
›› Increasing the financing of aspiring affluent (emerging party of the corporate loan & SOEs to gain supplier,
affluent and affluent) segments; distributor, or agent;
›› Establishing cooperation with SOEs and their ›› Optimizing passive income through massive off-
subsidiaries that engage in non-residential balance sheet asset sales;
construction;
›› Expanding the market share for Micro Loan, 4. Improving effectiveness of collection and asset
Commercial, and Corporate segments to support the recovery
houses supply; The Company’s commitment to enhancing quality asset
›› Conducting asset securitization as an alternative growth is achieved by maintaining the consistency of
strategy in expanding housing loan financing. collection and asset recovery effectiveness. These efforts
are formulated in line with the bank policy’s direction:
2. Strengthening the funding structure and CASA Ratio ›› Strengthening the collectibility burden effectively;
Funding strengthening is aimed to improve low cost and ›› Improving the loan collectibility posture refinement;
sustainable funding with CASA-based funding. In addition, ›› Increasing collection and loan settlement.
the funding sector strengthening is also conducted through
commercial financing and long-term and cheap wholesale 5. Capital Support
funds. The direction of bank policy in funding is: In order to support the growth rate of loan growth, capital
›› Optimizing the share of wallets of captive customers strengthening initiatives have become one of the key
by increasing the mass customer average balance; objectives in the draft growth strategy in the next three
›› Improving CASA-based consumer financing through years. The capital initiative is focused on maintaining
the acquisition of aspiring affluent customers the capital adequacy ratio in accordance with regulatory
and improving account utilization as a customer’s requirements with the following strategies:
transaction base; ›› Increasing profitability;
›› Expanding cooperation in funding institutions based on ›› Issuing commercial subdebt/convertible debt;
construction value chain; ›› Conducting a rights issue with the approval of the
›› Improving Business to Business (B2B) cooperation shareholders.
(together with loan unit) to corporate customers and
SOEs for up-selling;
›› Improving cheap cost wholesale funding.

6. Improving Employees’ Quality and Productivity 8. Information Technology (IT) Infrastructure

The Company innovates the human resources development Strengthening
to create sustainable value for shareholders. This The focus of IT infrastructure strengthening is the
innovation is expected to provide distinctive competence, digital banking-based development to improve process
especially in the housing field to all Bitniz personnel. The effectiveness and efficiency. The initiatives implemented
policy direction in the human resources development in the that refer to RSTIK 2017, among others:
next three years are as follows: ›› Strengthening of BTN Property Portal
›› Establishing top talent and succession management ›› Establishing a Customer Relationship Management
through career management and job facility evaluation (CRM) to gain the 360-degree customer view, profiling,
and formulating strategic manpower planning with and improving customer services capability;
pareto allocation strategy; ›› Strengthening the role of BTN Property Portal; Develop
›› Internalization of employer value proposition through internet banking & mobile banking applications through
the directed recruitment to attract top talent; platform upgrades and integration between systems
›› Strengthening the performance-based management by such as iColl, iCash, and property portals.
performance management system strengthening and ›› Developing management tools for marketing and sales
designing attractive compensation mechanisms for all activity by creating digital marketing & sales tools;
business segments; ›› Comprehensively refining the wealth management
›› Strengthening high-performance culture with system;
collaborative cultural internalization, focusing on ›› Improving the operational supporting tools to add risk
external insights for digital transformation, enhancing prevention capacities;
the capabilities of Human Capital units to carry out ›› Maximizing risk profiling of the task forces;
the execution of a top-of-the-line strategic workforce ›› Integrating Loan Origination System and adding iCremo
empowerment initiative. to monitor loan disbursement;
›› Reengineering the financing business process to lead to
7. Strengthening the Risk Management and Integration of centralization model or back office digitalization system
GRC (Governance, Risk, and Compliance) to automate process and connect to various database;
Integrated GRC is implemented through continuous ›› Establishing process system of planning and evaluation
improvement of business processes and enhancement of of corporate performance to increase Corporate
organizational capabilities that promote GCG principles, Planning effectiveness and efficiency.
and integrated and comprehensive risk management. The
strategic initiative to achieve that is:
›› Reengineering the process of loan granting, collection,
remedial, and other main processes;
›› Implementing the integrated GRC by monitoring the
Key Performance Indicator (KPI), Key Risk Indicator
(KRI), and Key Compliance Indicator (KCI).
Marketing Aspect
Marketing Strategy and program refreshment and constraints and potential,

The dynamic business environment encourages the Company and direct visits to Branch Offices and Regional Offices.
to prepare various strategies to improve competitiveness. One In 2017 the funding people conference was held three
strategy that is constantly perfected is the marketing strategy. times, i.e. POA Conference “Transform the stare in you” in
The Company develops a marketing strategy based on the April 2017, Kick Off Consumer Funding “A Team You Can
Bank’s Business Plan, taking into consideration the condition of Trust” in May 2017, and Conference of the Conventional
digital developments and the needs of its customers towards and Shariah Funding People in May 2017. Direct visits
increasingly complex banking products, thereby affecting to branch offices and regional offices for funding people
the high competition in the banking industry. In order to face reinforcement, products, and programs refreshment, and
these challenges, the Company is strengthening its business coordination meetings of regional offices. The Company
with a focus on consumer banking and commercial banking also strives to meet the needs of funding people in branch
segments, both in loan and funding products. The Company offices to improve performance.
has applied various marketing strategies for financing, and
products, as well as sharia business unit products, as described 3. Strengthening Market Segmentation According to
as follow. Product Segmentation
The increasingly varied banking products provide an
Funding Products opportunity for selective customers to encourage banks
Throughout 2017, the Company executes the marketing to innovate both in product features and benefits in order
strategy of funding products to increase low cost and for the customer to obtain what the programs have to
sustainable funding. These strategies include: offer. The Company has various excellent programs for
1. Closing the Gap on the Products and Savings Features each product. Some of the Company’s leading savings
This strategy is conducted through product development programs in 2017:
and business process improvement. In 2017, the Company ›› BTN Batara Savings
innovates by launching the new BTN ready! Savings. This The Company organized five programs for this
product is launched to fulfill customers’ financial planning product, i.e.
needs. Product development is carried out on Foreign a. Lottery Program (Period: September 2016 –
Currency Deposit for SGD and EUR currency. In addition, the September 2017), the program aims for active
Company also develops new products, i.e. Foreign Currency clients who conduct e-channel transactions and
Savings. The active development of new product features maintain an average monthly balance.
and new products is a manifestation of the Company’s b. Super Untung Program is intended for customers
commitment to provide a variety of financial products who place fund within a certain period.
that are expected to increase customer satisfaction and c. Super Untung Jaman Now Program as a
attract new customers. Meanwhile, the Company strives continuation of the Super Untung Program elevates
to maintain the loyalty of existing customers by improving the millennial theme as an appeal with prizes of
business processes and reviewing policies that are owned iPhone X, Apple iWatch, and Drone.
to support optimal operational activities. d. SurePrize Top Up Tabungan Program is an incentive
for new or existing customers who make top-ups
2. Product Sales Organization Improvement on BTN Batara Savings.
One of the direct factors in the Company’s profits is the e. SurePrize Super Untung Program is an incentive for
number of product sales. The Company’s commitment new or existing customers who do top up on Super
to continue strengthening its business is demonstrated Untung program in a certain time period.
by improving the product sales organization. The ›› eBataraPos Savings
Company conducts coaching and refreshment to Branch The Company’s organized three programs to improve
Offices and Regional Offices regularly. Coaching and the performance of this product. Those Programs are
refreshment activities are conducted through funding Wuooow Banjir Hadiah Lagi Program, which is aimed
people conferences, calls to Branch Offices and Regional at existing active customers who conduct echannel
Offices on constraints and issues, video calls on product transactions and maintain an average monthly balance.

Xtra Bonus Program is intended for existing customers ›› Regional Housing Exhibition
who place fund within a certain period. Sembako The Company’s Branch Office also executes property
Pesta Program is aimed at Western Union remittance exhibition equally through cooperation with the
recipients and new customers who are placing funds developer associations (REI-APERSI) and developer
within a specified period of time. partners. This activity is expected to support the
›› Prima Savings performance of each branch.
The Company organizes a direct reward program for ›› Mini Expo
customers who place funds within a specified period This activity is carried out with an open booth at the
of time. Implementation of the program is expected to institution during the socialization and provides access
attract customers to increase the balance savings. to information on the Branch Office or at the center of
the crowd.
4. Improved Communication of Product Above The Line
(ATL) and Below The Line (BTL) 2. Business Gathering
Communication plays an important role in the process Throughout 2017, the Company conducts regular gathering,
of product marketing because, with the opening of such as developer gathering, marketing gatherings, morning
information access, customers and prospective customers coffee, and business gatherings with several agencies
can easily make choices according to their needs. In 2017, including Government institutions, Indonesian Army and
the Company actively communicated its products through Polices Agencies, BPJS Employment, and all Branch Offices.
ATL and BTL media. The ATL media used are electronic This activity acts as a forum for socializing the Company’s
media such as Indosiar, SCTV, O-Channel, and U See TV; product and program policies related to housing business.
print media such as Sindo, Mark Plus, Local Print Media, The potential of cooperation and home builders can be
Women Obsession, and Infobank; social media such as explored through this activity and the results are used as
Instagram, Facebook, and Twitter BTN Batara, Liputan a basis for planning sales and marketing strategies. This
6.com, Kapanlagi.com, kompas.com, and Endorse/buzzer; activity also functions to establish a good relationship with
as well as Billboard and DOOH. The BTL is conducted by developer partners, marketing developers, and agencies’
organizing or participating in several events including the treasurer, as well as to improve services and business
Indonesian Property Expo and Serba Untung Activation. processes in the Branch Offices.
Loan Products 3. Awareness dan Loyalty Program

As a financing institution that plays a strategic role in the one The program’s objectives are to enhance cooperation and
million houses program, the Company implements several support for activities related to housing business (DPP &
marketing strategies in order to become a market maker in DPD REI, DPP & DPD APERSI, other Developer Associations,
the housing sector. The marketing strategies adopted by the Insurance, Housing Institutions, government agencies);
Company throughout 2017 include: enhance the Company’s brand awareness through the
1. Housing Exhibition award received; improve Housing Loan brand awareness
The Company conducts activities aimed at, among others, and Company’s image through the implementation of
assisting the achievement of consumer loan targets; brand activities attended by President Joko Widodo. Throughout
awareness, maintaining and enhancing the Company’s 2017, the Company conducted three activities, i.e.:
corporate image as the leading and most experienced Bank ›› Sponsorship
in the housing finance field; maintaining and expanding The Company provides sponsorships to enhance
cooperation with residential developer associations and cooperative partnership, such as housing associations/
exhibition developers. Throughout 2017, the Company housing institutions, thus strengthening BTN Housing Loan
conducted three type of exhibition, i.e.: brand awareness, as a bank that focuses on the housing
›› National Housing Exhibition sector for the housing and community stakeholders.
The Company participated in Indonesian Property Expo ›› Inauguration of Housing and Review of Mass
I on February 11-19, 2017. The Company successfully Agreement in Subsidized Housing by President RI
obtained IDE Prospect of Subsidized Housing Loan On May 4, 2017, the Company held inauguration of
of Rp526 billion through the participation in this the Low-Income Community (MBR) Housing at Villa
exhibition, The success continued at the next Kencana Cikarang. The Company also conducts mass
Indonesian Property Expo on August 11-20, 2017. ceremony review at Pesona Bukit Batuah Balikpapan
The Company obtained IDE Prospect of Subsidized housing on July 13, 2017, and in Griya Setia Bangsa
Housing Loan of Rp930 billion. Pekanbaru housing on July 23, 2017. This activity is a
form of the Company’s contribution in supporting the speed up the search process, and reduce costs
distribution of community welfare through the one associated with paper document handling.
million houses program. ›› Checking Subsidy
›› BTN Golden Property Award One of the new features in iloan is Checking Subsidy,
On September 11, 2017, the Company organized the which serves to anticipate the submission of double
BTN Golden Property Award as a form of appreciation subsidized Housing Loan. This menu is accessible on
to business players in the property sector and to boost the Duplicate Review menu, located on the facility’s
optimism of the national property industry. The event submenu. This module works by searching data on the
is the result of Company’s cooperation with Indonesia core system by looking for matches by name and date
Property Watch. In this event, the national property of birth or ID card and Tax ID.
figure and the best housing project for 2016 were ›› ABCG (Academic, Business, Community,
awarded, among others, PT Budi Langgeng Persada, Government) Scheme
which was awarded as Best of The Best Housing Loan Collaboration in supporting community-based housing
Subsidy Developer. development in Kendal, where the main housing
providers are based on community development
4. Innovating products and services (community), and government program support, i.e.
The Company strives to innovate service quality to the Housing Stimulants (Government), Company’s support
customers. The innovations conducted in 2017 are: in the form of Subsidized Housing Loan (Business), and
›› Launching of BTN Micro Housing Loan assisted by empowerment of residential community
On February 24, 2017, the Company launched Micro groups (Academic).
Housing Loan at Wisma Perdamaian, Semarang. This
activity was carried out with a series of activities of Sharia Products
APMISO Noodle and Bakso Festival, Serbu BTN, signing The Company’s Sharia Business Unit (UUS) strives to improve
of MOU between the Company and APMISO (Asosiasi the product and services performance by implementing
Pedagang Mie dan Bakso) and Diponegoro University, marketing strategy to support the Bank’s core business. Some
and ceremonial delivery of SP3K (Surat Pernyataan strategies conducted, are:
Persetujuan Pemberian Kredit) to the noodle and 1. Improving low-cost fund and expanding emerging
meatballs traders. affluent segment by:
›› Cooperation of BTN Housing Loan Support for ›› Developing Product/Business
Gojek Partners a. Establishing special organization structure for Haji
The Company conducts marketing activities under and Umrah for optimization of Haji and Umrah
the theme “Gojek Serbu BTN” consisting of a series products and services.
of socialization activities to Gojek Partners who meet b. Establishing the sales and Marketing Funding
the qualifications and pass the verification, then the organizational structure to optimize the management
open booth of Housing Loan service by involving of target funding and funding people on Sharia Branch
the subsidized housing developer. Gojek Partners Offices, and the management of funding potential
who meet the requirements are subject to daily and policies at the Center.
deductions as a condition for the adequacy of the ›› Optimizing Promotions
housing Advance, Participants of Gojek Serbu BTN a. Launching of the Additional Rewards program that
Phase I in November-December are 351 people in the is equivalent to the Deposit Ratio
Jabodetabek area. b. Direct Rewards Program of Batara iB Savings, BTN
›› B2B2C Development Prima iB Savings, BTN Haji & Umrah iB Savings,
The Company takes an approach/socialization on the BTN Qurban iB Savings, BTN ib Gold Savings
cooperation of the houses fulfillment focused on the c. Bundling Program with Multi-Service Financing/
institutions/agencies/Local Government/Ministries Multi Benefits
with the target of MOU/PKS related to the acceleration d. Reward Program for Wakaf Infak Sadaqoh (Wakaf)
of the housing needs fulfillment. facility
›› Document Imaging (Data Capture) ›› Optimizing Sales and Channel Sales Program
The Company improved its document handling process a. Implementing Sharia Laku Pandai to expand
with Document Imaging. It aims to improve efficiency, the community access

b. Cooperation with PT Pos Indonesia to provide customers with Mapping and offering to prime customers
Opening of Hajj and Umroh Savings service at KKLK who have cooperated and have good performance.
Pos and SISKOHAT Online at KKLK POS ›› Holding Developer Gathering, cooperating with developer
c. Incorporating target funding of sharia products and SOEs as an effort to strengthen sales program.
within KPI of Sharia Service Office ›› Providing financing within the residential value chain
d. Cooperation bundling program with schools/Institutions/ network by offering to the derivative industry of housing.
agencies that have an MoU with the Company
4. Expanding institutional funding cooperation through:
2. Increase non-interest operating income through the ›› Developing Housing Loan-based cooperation with SOEs,
following efforts: Industry, and Big Private Companies.
›› Strengthening communications with Stakeholders ›› Supply Chain Management implementation.
including the Company’s advisory team, fostering ›› Opening outlets and allocation of adequate ATM in the
communication with the Government (Ministry of agency environment so that sales programs and sales
Public Works and Housing, Ministry of Finance, BLU, channels optimal.
Bapertarum, etc.)
›› Optimizing Sales and Promotion Program by Market Share
participating in Exhibition and organizing a Gathering The Company implements a marketing strategy that is
Event with developers and associates. expected to support the growth performance of each product
and the expansion of market share. The following described
3. Increasing the amount of commercial financing through: the Company’s market share in national banking industry for
›› Providing non-residential commercial financing to prime every product.
Funding Products
Graph Savings Market 2.14% 1.98% 2.28%

Share 2015-2017* (%)
BTN
Non BTN 2015 2016 2017
*Data Per September 2017 97.86% 98.02% 97.72%
Graph Deposits Market 2.86% 3.29% 3.67%

Share 2015-2017* (%)
BTN
Non BTN 2015 2016 2017
Loan Products
Graph Housing/Apartment
31.11% 34.21% 36.30%
Loan Market Share
2015-2017* (%)
BTN
Non BTN 2015 2016 2017
Graph Subsidized Housing 3.21% 3.87% 4.58%

Loan Market Share
2015-2017* (%)
BTN
Non BTN 2015 2016 2017
Sharia Products
Graph Akad Murabahah 5.43% 6.00% 7.44%

BTN Sharia Funding
Market Share
2015-2017* (%)
BTN 2015 2016 2017

Non BTN

Operational Analysis
Operational Up to 2017, the Company has operational activities that cover two main business segments,
Performance by i.e. conventional and sharia. In addition, the Company also provides other banking services as
the supporting business. A brief overview of the Company’s operating segments is as follows.
Segments
Conventional Sharia
Other
Banking
Service
Conventional The Company provides consumer and commercial savings and loan products in the conventional
segment. The performance of conventional segment is as follows.
01
Consumer Loan Products
The Company’s Loan Products consists of Housing Loan (KPR) and Non-Housing Loan. The Housing
Loan is classified as Subsidized Housing Loan, Non-Subsidized Housing Loan, and Other Housing
Loan. Every personal loan product is in the Rupiah currency. Throughout 2017, the Company
Consumer Banking
successfully disbursed consumer loan amounted to Rp44,187,131 million, an increase by 26.96%
compared to 2016, which was Rp34,804,253 million. The increase is mainly caused by the
disbursement of subsidized Housing Loan that increased by 31.36% from the previous year.
Table Consumer Banking Loan

Disbursement 2015-2017 Increase/ Decrease
(IDR million) Loan Type 2015 2016 from 2016 to 2017 (%) 2017
Housing Loan 26,295,864 30,133,461 25,14 37,708,048
Subsidized Housing Loan 11,718,433 15,609,653 31,36 20,504,547
Non-Subsidized Housing Loan 12,194,611 12,724,741 20,95 15,390,702
Other Housing-Related Loan 2,382,820 1,799,067 0,76 1,812,799
Non-Housing Loan 4,103,511 4,670,792 38,73 6,479,683
Total 30,399,375 34,804,253 26,96 44,187,731
Graph Consumer Banking 13.50% 13.42% 14.66%

Loan Disbursement
2015-2017
Housing Loan
Non-Housing Loan 2015 2016 2017
86.50% 86.58% 85.34%
01 Subsidized Housing Loan

The Company was appointed to give the Subsidized Housing Loan service, in line with the
Ministry of Finance Letter No. B-49/MK/IV/I/1974 dated January 29, 1974. The first realization
Consumer Banking of Housing Loan is on December 10, 1976. Subsidized Housing Loan disbursement is conducted
through partnership with Government, i.e. Ministry of Public Works and Public Housing. Since
1976 until today, the scheme of Subsidized Housing Loan disbursement changes, but the
Company is consistent with disbursing Subsidized Housing Loan.
The provisions on the Subsidized Housing Loan is stipulated in the Minister of Public Works and
Housings Regulation (Permen PUPR) No. 21/PRT/M/2016 dated June 14, 2016, on Facilitation
and/or Assistance for Low-Income Communities to Acquire Houses, and Permen PUPR No.
26/PRT/M/2016 dated July 14, 2016, on the Amendment to the Minister of Public Works and
Housing Regulation No. 21/PRT/M/2016 on Facilitation and/or Assistance for Low-Income
Communities to Acquire Houses.
Subsidized Housing Loan is a mortgage/financing of home ownership with assistance and/

or facility to obtain housing from the Government, in the form of low-cost long-term funds
and subsidy for the acquisition of houses. The Loan is issued by the Implementing Bank both
conventionally and in sharia principles.
Low-Income Communities (MBR) who are first-time home buyers who meet certain requirements
may obtain Subsidized Housing Loan at low and fixed interest rates during the term of the
Housing Loan. Based on the Government subsidy program, the subsidized housing loan is for
customers who do not have a home with a maximum income of Rp4 million per month to
purchase a landed house, and a maximum income of Rp7 million per month to purchase a
flat. House prices are bound to certain price limits. The Customer must have ID Card and Tax
Identification Number when requesting loan.
In 2016, the Company disbursed subsidized housing loan using the Housing Financing Liquidity
Facility (FLPP) scheme and Interest Margin Subsidy (SSB). Under an agreement with the
government, the Company distributes Housing Loan with the SSB scheme in 2017, while the
FLPP budget is allocated to other banks. The 2017 SSB budget is sufficient to disburse Subsidized
Housing Loan in accordance with the Company’s target of approximately 180 thousand houses.
The provisions of SSB Tapak and SSB Susun Housing Loan are as follows::
1. The housing loan value is at most the selling price of a landed or flat house, with difference
on the down payment;
2. The highest annual rate of Housing Loan per year is the BI rate or other equivalent reference
recognized by the Government plus 5% (five percent) as set forth in the Joint Operations
agreement between the Implementing Bank and the Officer of Treasury Task Force;
3. In the event that the housing loan interest rate as referred to in point (2) is higher than the
non-subsidized housing loan interest rate applicable to the Implementing Bank, the SSB

01 4.
Tapak and SSB Susun Housing Loan interest rate uses the outstanding non-subsidized
Housing Loan interest rate applicable to the Implementing Bank;
The housing loan interest is paid by the debtor at 5% (five percent) annually, including the
Consumer Banking life insurance premium, fire insurance, and loan insurance;
5. The interest rate as referred to in point (4) is fixed during the term of loan (fixed-rate
mortgage) by the method of annuity or effective interest rate in accordance with the
applicable provisions of the Implementing Bank;
6. The term of Housing Loan is agreed upon by the Implementing Bank and the target group of
SSB Tapak and Susun Housing Loan, which is adjusted to the ability to pay the installment
by the target group of SSB Tapak and SSB Susun Housing Loan or at the maximum 20
(twenty) years; and
7. The subsidized housing loan interest paid by the Government to the Implementing Bank
is the highest difference in housing loan interest rate as referred to in point (2) with the
mortgage rate paid by the debtor as referred to in point (4).
In 2017, the Company has disbursed Subsidized Housing Loan at Rp20,504,547 million or
173,763 house units, an increase of 31.36% compared to 2016, which was Rp15,609,652 million.
The increase is mainly caused by the KPR SSA/SSB Tapak which increased by 176.70% from the
previous year.
Table Subsidized Housing

Increase/ Decrease
Loan Disbursement from 2016 to 2017
2015-2017 (IDR million) Loan Type 2015 2016 (%) 2017
KPR BTN Sejahtera Tapak 10,800,393 8,189,550 - -
KPR BTN Sejahtera Susun 877 6,536 - -
KPR BTN Sejahtera Susun Indent - - - -
KPR SSA/SSB Tapak 917,163 7,408,861 176,70 20,500,609
KPR SSA/SSB Susun - 4,705 (17,90) 3,863
KPR BTN Mikro - - 100 75
Total 11,718,433 15,609,652 31,36 20,504,547
Non-Subsidized Housing Loan

The Company provides a range of non-subsidized Housing Loan services targeted towards
upper-middle income customers with floating interest rates. The maximum period is 25 years for
non-subsidized Housing Loan and 15 years for Apartment Loan (KPA) and Shop Office Loan. The
minimum deposit requirement is 15% or in accordance with Bank Indonesia regulation concerning
Loan to Value Ratio.
In 2017, the Company has disbursed Non-Subsidized Housing Loan amounted to Rp15,390,702
million, an increase of 20.95% compared to 2016, which was Rp12,724,741 million. The increase
is mainly caused by the KPR BTN Platinum, which increased by 18.24% from the previous year.
Table Non-Subsidized
Increase/ Decrease
Housing Loan Disbursement from 2016 to 2017
2015-2017 (IDR million) Loan Type 2015 2016 (%) 2017
KPR BTN Platinum 11.722.117 12.283.700 18,24 14.524.342
KPA BTN 257.769 304.134 125,31 685.237
Kredit Ruko BTN 214.725 136.907 32,30 181.123
Total 12.194.611 12.724.741 20,95 15.390.702
01 Other Housing-Related Loan

In order to increase business growth, the Company also offers other types of housing loans
and other consumer loans, which can be used in accordance with consumer needs. In 2017,
Consumer Banking the Company has disbursed Other Housing-Related Loan amounted to Rp1,812,799 million, an
increase of 0.76% compared to 2016, which was Rp1,799,067 million. The increase is mainly
caused by the increase in Kredit Agunan Rumah, which increased by 0.37% from the previous year.
Table Disbursement of Increase/ Decrease

Other Housing-Related Loan from 2016 to 2017
2015-2017 (Rp million) Loan Type 2015 2016 (%) 2017
Kredit Agunan Rumah 2,244,276 1,766,754 0.37 1,773,333
Kredit Bangun Rumah 64,061 28,973 13.96 33,018
PUM-KB BPJS Ketenagakerjaan 62,837 - - -
PRR-KB BPJS Ketenagakerjaan 1,503 - - 5,398
TBUM Bapertarum 10,103 3,320 (68.37) 1,050
TBM Bapertarum 40 20 - -
Total 2,382,820 1,799,067 0.76 1,812,799
Non-Housing Consumer Loan

The Company provides other consumer loans, excluding housing loans used for various
customers’ needs.
In 2017, the Company has disbursed Non-Housing Consumer Loan amounted to Rp6,479,683
was mainly caused by the Kredit Swadana BTN which increased by 78.82% from the previous year.
Table: Disbursement of Increase/ Decrease

Non-Housing Consumer Loan from 2016 to 2017
2015-2017 (Rp million) Loan Type 2015 2016 (%) 2017
Kring BTN 628,205 621,456 29.39 804,100
Kring BTN Pensiunan 38,561 37,877 22.87 46,540
Kredit Swadana BTN 3,046,969 2,717,776 78.82 4,859,950
Kredit Pegawai 389,776 1,293,683 (40.55) 769,093
Total 4,103,511 4,670,792 38.73 6,479,683
Consumer Saving Products

The Company provides various saving products to facilitate the customer’s needs, which is
categorized into 2 (two) products, i.e. Savings and Deposits. The Company uses the saving products
to maintain healthy liquidity rate, low-cost fund source, in line with the company’s strategy to
maintain the competitive and affordable funding composition. Broadly speaking, the performance
Table Consumer Saving of saving products or Third-Party Funds in 2017 increased, both the amount of the accounts and
Products 2015-2017 the fund collected. Details of the Company’s savings products performance are as follows.
No Type of Saving 2015 2016 2017

Total Total Total
Account (unit) (Rp million) Account (unit) (Rp million) Account (unit) (Rp million)
1 Savings 6,118,475 29,402,734 6,748,167 32,776,835 7,470,025 38,217,936
2 Deposito 60,955 9,215,702 67,010 11,612,374 70,911 14,525,301
Total 6,179,430 38,618,436 6,815,177 44,389,209 7,540,936 52,743.237

Graph: Consumer Saving 23.86% 26.16% 27.54%

Products 2015-2017
Savings
Deposits
2015 2016 2017
76.14% 73.84% 72.46%
Consumer Savings
In 2017, the Company has accumulated Consumer Savings amounted to Rp38,217,936 million,
an increase of 16.60% compared to 2016, which was Rp32,776,835 million. The increase was
mainly caused by the increase in Tabungan Batara, which increased by 25.33% from the previous
Table Consumer Savings year. The Company innovates the consumer savings products by launching three new products,
2015-2017 (Rp million) i.e. Tabangan Batara Tax Amnesty, Tabungan BTN Batara RDN, and Tabungan BTN Siap!.
Account Total Account Total Account Total

(unit) (Rp million) (unit) (Rp million) (unit) (Rp million)
1 Tabungan Batara 1,802,251 10,125,935 1,900,917 12,067,548 2,042,236 15,124,799
2 Tabungan BTN Pensiunan 7,094 60,019 8,643 73,084 9,446 82,679
3 Tabungan Batara Pendidik 19,336 54,224 33,203 72,733 29,606 84,518
4 Tabungan Batara Prima 43,398 14,989,280 41,225 15,898,413 38,540 17,666,053
5 Tabungan Batara Tax Amnesty - - - - 34 1,369
6 Tabungan BTN Batara RDN - - - - 1,957 1,068
7 Tabungan Lainnya 3,100,448 1,776,516 3,786,815 2,051,828 4,310,330 2,326,796
Tabungan BTN Junior 992,490 635,615 1,033,623 691,882 1,070,772 769,632
Tabungan BTN Juara 850,794 485,786 986,294 533,834 1,084,567 591,116
TabunganKu 234,690 449,485 291,601 585,061 629,410 720,546
Tabungan BTN Simpel 19,371 1,647 457,880 46,704 494,424 59,343
Tabungan Cermat 939,755 55,415 951,592 35,198 951,872 28,366
Tabungan BTN Perumahan 4,716 36,397 4,329 46,313 4,244 43,942
Tabungan BTN Haji Reguler 58,179 109,805 61,084 110,615 65,312 109,629
Tabungan BTN Haji Plus 453 2,366 412 2,221 392 2,158
Tabungan BTN Siap ! - - - - 9,337 2,064
8 Tabungan Pos 1,145,948 2,396,760 977,364 2,613,229 1,037,876 2,930,654
Tabungan Tabanas Batara 167,338 87,728 77,207 66,673 38,154 50,458
Tabungan eBatara Pos 978,610 2,309,032 900,157 2,546,556 999,722 2,880,196
Total 6,118,475 29,402,734 6,748,167 32,776,835 7,470,025 38,217,936
Time Deposits
In 2017, the Company has accumulated Time Deposits amounted to Rp14,525,301 million, an
Table Time Deposits increase of 25.08% compared to 2016, which was Rp11,612,374 million. The increase was mainly
2015-2017 caused by the increase in 3-months deposits by 26.51% from the previous year.
No Type of Deposit 2015 2016 2017
Total Total Total

1 1 months 36,094 5,784,519 39,654 6,803,407 42,806 7,687,249
2 2 months 52 100,496 806 74,579 1,058 83,266
3 3 months 15,261 2,452,874 18,993 4,050,550 20,427 5,124,295
4 6 months 6,417 459,640 4,879 378,137 4,376 1,329,091
5 12 months 2,694 191,898 2,352 192,696 2,019 229,422
6 24 months 335 16,553 281 11,907 215 9,697
7 On Call Deposit 102 209,722 45 101,098 20 62,281
Total 60,955 9,215,702 67,010 11,612,374 70,911 14, 525,301
02
Commercial Loan Product
The Commercial Banking Loan Product consists of housing loan product and non-housing loan.
Housing loan is in the form of Company’s construction loan; the non-housing loan consists
of MSME loan, Linkage BTN Loan, and Corporation Loan. Throughout 2017, the Company
Commercial Banking
successfully disbursed commercial loan amounted to Rp23,298,077 million, an increase by
25.79%, compared to 2016 which was Rp18,521,043 million. The increase is mainly due to the
Corporate Loan increase, by 52.99% from the previous year.
Table: Commercial Loan Increase/ Decrease

Disbursement 2015-2017 from 2016 to 2017
(Rp million) Loan Type 2015 2016 (%) 2017
Construction Loan 12,031,753 11,725,134 14.18 13,387,700
MSME Loan 1,524,466 1,639,585 23.30 2,021,553
Corporate Loan 3,009,086 5,156,324 52.99 7,888,824
Total 16,565,305 18,521,043 25.79 23,298,077
Graph: Commercial Loan 18.54% 63.31% 57.46%

Disbursement 2015-2017
27.84% 33.86%
(Rp million)
27.39%
Construction Loan
MSME Loan 54.07% 2015 2016 2017
Corporate Loan
8.85%
8.68%

02
Construction Loan
The Company provides construction loans to housing developers for working capital purposes
that can be used to finance the construction of houses and apartments. For this type of loan,
the Company provides maximum loan up to 80% of the construction cost or construction with
Commercial Banking floating interest rate. In making the decision to finance construction loan, the Company calculates
the maturity period based on the estimated construction period and the revenue expected to
be generated upon completion of the project. Construction loans are secured by collateral in the
form of land and buildings that will be built on land.
Commercial banking customers who have obtained BTN Construction Loan may also obtain
Land Ownership Loan, whereby the Company provides loan for the purpose of acquiring land to
be used for constructing subsidized houses and apartments, in amounts up to 50% of the cost
and value of the land, up to maximum of Rp5 billion. These loan typically have a maturity of up
to three years and are secured by collateral in the form of acquired land and buildings financed.
This loan generally is subject to floating interest rate which is higher than Non-Subsidized
Housing Loan.
Construction Loan has a strategic role in supporting the One Million Houses Program because
the loan distribution shall create the houses supply. In 2017, the Company has disbursed
Construction Loan amounted to Rp13,387,700 million, an increase of 14.18% compared to 2016,
which was Rp11,725,134 million. The increase is influenced by 7,762 house unit construction,
which increased by 6.20% from the previous year.
MSME Loan
In 2017, the Company has disbursed MSME Loan amounted to Rp2,021,553 million, an increase
of 23.30% compared to 2016, which was Rp1,639,585 million. The increase is mainly caused by
the KUMK Loan which increased by 51.02% from the previous year.
Table MSME Loan Increase/ Decrease

(Rp million) Loan Type 2015 2016 (%) 2017
Loan for the Poor (KUR) 2,042 - 100 9,775
Micro and Small Enterprises Loan (KUMK) 695,642 1,013,545 51.02 1,530,665
KMK 377,944 359,145 (3.43) 346,813
MSME Investment Loan 60,266 44,982 (70.31) 13,354
MSME Contractor KMK 238,606 127,776 (42.97) 72,869
Linkage Program 149,966 94,137 (48.93) 48,076
Total 1,524,466 1,639,585 23.30 2,021,553
Corporate Loan
In 2017, the Company has disbursed Corporate Loan amounted to Rp7,884,824 million, an
increase of 52.99% compared to 2016, which was Rp5,156,324 million. The increase is mainly
caused by the KMK Loan which increased by 151.83% from the previous year.
Table Corporation Loan Increase/ Decrease

(IDR million) Loan Type 2015 2016 (%) 2017
KMK 1,051,595 1,612,221 151.83 4,060,031
Investment Loan 917,529 1,504,565 25.43 1,887,183
KMK Contractor 1,039,962 2,039,538 (4.80) 1,941,610
Total 3,009,086 5,156,324 52.99 7,888,824
Commercial Saving Products

In addition to loan disbursement, the Company provides products and funding services for
commercial banking segment. There are commercial funding products in the Company, i.e.
Table Commercial Saving current account and time deposit for institutions. The performance of commercial banking
Products 2015-2017 savings products is as follow.

Total Total Account Total
Account (unit) (Rp million) Account (unit) (Rp million) (unit) (Rp million)
1 Demand Deposit 49,775 29,152,160 39,726 42,643,680 42,526 50,019,826
2 Time Deposit for Institutions 6,914 48,833,538 6,851 57,924,579 6,938 70,956,631
Total 56,689 77,985,698 46,577 100,568,259 49,464 120,976,457
Throughout 2017, the Company successfully accumulated commercial savings amounted to

Rp120,976,457 million, an increase of 20.29% compared to 2016 which was Rp100,568,259
million. The increase is due to the total funding increase of the Demand Deposit product or the
Time Deposit for Institutions. The largest increase is collected from the Government institutions,
Rp8,072,974 million or 38.10%, followed by SOEs/Regional Owned Enterprises increase of
Rp6,830,799 million or 32.24%, and private institutions of Rp4,479,709 million or 21.14%. The
Local government, others, and Educations institution increased by 7.36%.
Graph Commercial Savings

37.38% 42.40% 41.35%
Products 2015-2017
Demand deposit
Time deposits for Institution
2015 2016 2017
62.62% 57.60% 58.65%
Commercial Demand Deposit

In 2017, the Company has accumulated Commercial Demand Deposit amounted to Rp50,019,826
Table Commercial Demand is mainly due to non-FLPP Demand Deposit, which increased by Rp8,207,777 million or 37.68%,
Deposit 2015-2017 especially from government institutions with an increase of Rp5,412,250 million or 73.37%.
No Jenis Giro 2015 2016 2017

Rekening Jumlah Rekening Jumlah Rekening Jumlah
(unit) (Rp juta) (unit) (Rp juta) (unit) (Rp juta)
1 Non FLPP Demand Deposit 49,768 11,251,613 39,720 21,785,323 42,520 29,993,100
2 FLPP Demand Deposit 7 17,900,547 6 20,858,357 6 20,026,726
Total 49,775 29,152,160 39,726 42,643,680 42,526 50,019,826

Time Deposit for Institutions

In 2017, the Company has accumulated Time Deposits for Institutions amounted to
Rp70,956,631 million, an increase of 22.50%, compared to 2016, which was Rp57,924,579
million. The increase is mainly due to deposits in SOEs/Regional Owned Enterprises, which
increased by Rp7,014,828 million or 50.79%, government institutions at Rp2.660.724 or
Table Time Deposits for 19.26%, and private institutions at Rp2.071.588 or 15.00%. The rest of 14.95% comes from
Institutions 2015-2017 local government institutions, others, and education.
No Type of Deposit 2015 2016 2017
Total Total Total

1 Time Deposit for Institutions 6,820 46,753,461 6,772 55,981,037 6,815 67,726,064
2 On Call Institutional Deposit 94 2,080,077 79 1,943,542 123 3,230,567
Total 6,914 48,833,538 6,851 57,924,579 6,938 70,956,631
03
Sharia Financing Products
The Sharia Business Unit Financing Products are classified to consumer funding and commercial
funding. Descriptions related to the performance of Sharia Business Unit Financing Products
are as follows.
Sharia Business Unit
Financing realization based on consumer and commercial segments in 2017 reached
Rp7,489,093 million, increased by 25.64% from 2016. The realization of financing is dominated
by 60.33% in consumer segment, and the rest 39.67% in commercial segment.
Table Sharia Financing

Increase/ Decrease
2015-2017 (Rp million) from 2016 to 2017
Type of Financing 2015 2016 (%) 2017
Consumer Financing 2,461,823 3,666,853 23.22 4,518,292
Commercial Financing 1,819,699 2,293,888 29.51 2,970,801
Total 4,281,522 5,960,741 25.64 7,489,093
Graph: Sharia Financing

57.50% 61.52% 60.33%
2015-2017 (Rp million)
Consumer Financing
Commercial Financing
2015 2016 2017
42.50% 38.48% 39.67%
Consumer Financing
Throughout 2017, the Sharia Business Unit successfully disbursed consumer financing amounted
to Rp2,545,113 million, an increase of 30.59% from the 2016 realization, which was Rp3,666,853
million. This is mainly due to the Company’s decision to channel Subsidized Housing Loan only
with SSB scheme so that the Sejahtera Tapak iB Housing Loan decreased.
Table Realization of Consumer

Increase/ Decrease
Financing 2015-2017 from 2016 to 2017
(Rp million) Type of Financing 2015 2016 (%) 2017
KPR Sejahtera Tapak iB 1.052.340 1.719.354 (43.03) 979.559
KPR Sejahtera Susun iB - - 100 13.718
KPR SSM Tapak iB - 223.543 782.68 1.973.177
KPR SSM Susun iB - 943 2.872.21 28.035
KPR Platinum iB 1.026.178 1.196.310 (15.96) 1.005.354
KPR Indent iB 183.041 394.257 3.24 407.016
Pembiayaan Bangun Rumah iB 32.695 24.209 (47.81) 12.635
Pembiayaan PUMP Jamsostek iB 2.835 - - -
Pembiayaan Kendaraan Bermotor iB 3.480 4.109 (58.36) 1.711
Pembiayaan Gadai iB 2.552 2.112 45.97 3.082
Pembiayaan Multijasa iB 12.149 18.832 (42.77) 10.777
Pembiayaan Multimanfaat iB 98.301 83.184 0.05 83.227
Pembiayaan Talangan Haji iB 48.252 - - -
Total 2.461.822 3.666.853 23.22 4.518.292
Commercial Financing
Sharia Business Unit’s product for commercial financing in 2017 amounted to Rp2,970,801
was mainly caused by the financing of Construction Financing BTN iB, which increased by 29.95%
from the previous year.
Table Outflow of Commercial

Increase/ Decrease
Financing 2015-2017 from 2016 to 2017
(Rp million) Type of Financing 2015 2016 (%) 2017
BTN iB Construction Financing 1,187,089 1,826,164 29.95 2,373,037
Pembiayaan SYUKUR BTN iB - 108 (100) -
Pembiayaan Modal Kerja BTN iB 430.422 299.665 31,63 394.452
Pembiayaan Investasi BTN iB 202.188 167.951 21,05 203.312
Total 1.819.699 2.293.888 29,51 2.970.801

Sharia Savings Products

Saving products from Sharia Business Unit consist of Demand Deposit, Savings, and Time
Deposit. In 2017, the number of Sharia Business Unit product is Rp18,754,100 million, an
increase of 24.78% compared to 2016. The increase is mainly due to an increase in deposits
Table Sharia Saving Products amounting to Rp1,611,651 or 16.48%. The performance details of Sharia Business Unit Saving
2015-2017 Products is as follows.

Total Total Total
1 Demand Deposit 5,295 2,216,283 6,587 3,202,375 7,743 4,635,304
2 Savings 347,568 1,354,947 443,539 2,049,373 526,806 2,728,643
3 Deposits 5,471 7,533,306 5,678 9,778,501 5,696 11,390,152
Total 358,334 11,104,536 455,804 15,030,249 540,245 18,754,099
Graph Sharia Saving 67.84% 65.06% 60.73%

Products 2015-2017 19.96% 21.31% 24.72%
Demand Deposit
Savings
Deposits 2015 12.20% 2016 13.63%
2017
14.55%
Sharia Demand Deposit

Sharia Demand Deposit consists of Giro BTN iB and Giro BTN Prima iB. In 2017, the sharia
demand deposit amounted to Rp4,635,304 million, an increase of 44.75% compared to 2016.
Table Sharia Demand Deposit The increase is mainly caused by BTN Prima iB Demand Deposit, which increased by Rp945,962
2015-2017 million, or 100.63% from the previous year.
No Type of Demand Deposit 2015 2016 2017

Total Total Total
1 Giro BTN iB 4,019 1,729,780 5,102 2,262,359 6,170 2,749,326
2 Giro BTN Prima iB 1,276 486,503 1,485 940,016 1,573 1,885,978
Total 5,295 2,216,283 6,587 3,202,375 7,743 4,635,304
Sharia Savings
The Company’s Sharia Business Unit Savings Products experience an increase in 2017, both from
the number of accounts, and the fund collected. The number of accounts increased by 18,77% and
Table Sharia Savings the fund increased by 33,15%. The increase is mainly influenced by Tabungan BTN Prima iB, which
2015-2017 increased by Rp628,721 or 45.26% increase from the previous year.
Account Total Account Total Total

(unit) (Rp million) (unit) (Rp million) Account (unit) (Rp million)
1 Tabungan BTN Batara iB 217,345 465,681 269,265 563,695 320,874 617,345
2 Tabungan BTN Prima iB 91,751 796,534 100,413 1,389,225 110,493 2,017,945
3 Tabungan BTN Haji iB 28,540 88,573 29,719 91,009 32,158 86,040
4 TabunganKu iB 8,042 3,128 8,254 3,430 9,249 3,323
5 Tabungan BTN Qurban iB 1,890 1,031 2,406 1,347 3,176 1,754
6 Tabungan Simpel BTN iB 33,482 666 50,561 1,733
7 Tabungan Emas BTN iB 295 503
Total 347,568 1,354,947 443,539 2, 049,373 526,806 2,728,643
Sharia Deposits
The Company’s Sharia Business Unit Deposits Products experience an increase in 2017, both
from the number of accounts, and the fund collected. The number of accounts increased by 0,3%
Table Sharia Deposits and the fund increased by 16,48%. The increase is mainly influenced by BTN iB Deposits, which
2015-2017 increased by Rp1,550,404 or 16.72% increase from the previous year.
Total Total Account Total

Account (unit) (Rp million) Account (unit) (Rp million) (unit) (Rp million)
1 Deposito BTN iB (Perorangan) 4,346 507,775 4,501 484,751 4,557 499,900
2 Deposito BTN iB (Lembaga) 1,119 7,019,926 1,169 9,272,550 1,130 10,822,954
3 Deposito On Call iB 6 5,605 8 21,200 9 67,298
Total 5,471 7,533,306 5,678 9,778,501 5,696 11,390,152
04
Banking services consist of trading services, administration services, and other services.
Administration income is in the form of account fees, saving fees, deposit administration fees,
and loan administration fees. Other income is in the form of payment point, card and E-Banking,
Servicing Fee of Asset Securities, Transfer, Guarantee Bank, SDB, Bancassurance Fee, Sharia
Banking Services Financing Administration, and Banking Services Fee. In addition, other income comes from
collateral values, fines, etc.

Through 2017, the fee-based income accumulated by the Company amounted to Rp1,630,415
million, an increase of 25.93% compared to 2016. The increase was mainly caused by
administration income, which increased by Rp133,565 million or 30.82% from the previous year.
Table Fee Based Income Increase/ Decrease

Type of Income 2015 2016 (%) 2017
Trading Income 170,363 272,689 47.12 401,169
Administration Income 397,422 433,407 30.82 566,972
Demand Deposit Fees 13,784 13,149 2.14 13,430
Saving Fees 310,385 305,296 9.66 334,782
Deposit Administration Fees 15,967 23,709 95.79 46,419
Loan Administration Fees 57,286 91,254 88.86 172,342
Income from Services 193,076 239,992 50.46 361,085
Payment Point 5,251 7,598 140.09 18,242
Card & E-Banking 61,942 73,436 9.29 80,255
Servicing Fee of Asset Securities 20,002 17,602 150.70 44,128
Transfer 4,297 2,462 58.17 3,894
Guarantee Bank 31,328 35,503 22.34 43,436
Safe Deposit Box 4,617 4,713 13.28 5,338
Bancassurance Fees 10,352 29,827 74.95 52,128
Administrative Sharia Financing 50,272 62,880 49.10 93,758
Banking Services Fees 5,014 5,972 232.44 19,854
Other Income 363,328 348,561 (13.59) 301,189
Collateral Values (LPA, taxation) 6,577 12,293 89.85 23,339
Fines 94,546 105,650 (8.62) 96,548
Book Deletion 210,995 178,427 (22.11) 138,972
Others 51,210 52,191 (18.89) 42,330
Total 1,124,189 1,294,649 25.93 1,630,415
Graph Fee Based Income 16,68% 26.92% 18,47%

2015-2017 (Rp million) 18,66%
21,06% 24,61%
Trading Income
Administration Income
Income from Services 2015 2016 2017
Other Income 18,53% 22,15%
21,14%
43,52% 33,48% 34,77%
Customer Card
In 2017, number of cardholder of Consumer Cards increased by 22.62%, from 4,674,641 card
units in 2016 to 5,732,131 card units. This increase is influenced by the Company’s strategy in
the promotion of electronic banking transactions in order to increase the number of cardholders.
Table Consumer Cardholder Increase/ Decrease

2015-2017 from 2016 to 2017
Type of Income 2015 2016 (%) 2017
Debit Card 3.769.503 4.652.914 22,72 5.710.058
Credit Card 20.974 21.727 1,59 22.073
Total 3.790.477 4.674.641 22,62 5.732.131
Wealth Management
The Company has four wealth management products, i.e. DPK, securities, mutual funds, and
bancassurance. In 2017, the Wealth Management customers amounted to 37,034 customers,
an increase of 1.60% compared to 2016. The increase is mainly due to the optimization of sales
through cross-selling of nonbanking products, the addition of non-banking more varied products,
the addition of priority personnel, the addition of priority outlets, and the addition of facilities
and benefits for priority customers.
Table Wealth Management Increase/ Decrease

Customers 2015-2017 from 2016 to 2017
Type of Products 2015 2016 (%) 2017
DPK 14,471 15,564 36.04 21,174
Bonds 4,144 2,812 (34.35) 1,846
ORI 2,717 915 (11.58) 809
SUKUK 1,427 1,476 (29.74) 1,037
SBR - 421 (100) -
Mutual Funds 1,091 1,046 49.62 1,565
Bancassurance 11,803 17,028 (26.89) 12,449
Total 31,509 36,450 1.60 37,034
In line with the increase in the Wealth Management customer, Asset Under Management in
2017 reached Rp27,822,696 million or an increase of 17.43%, which was only Rp23,693,287
million at the end of 2016. Details on Asset under Management is shown in tables as follows.
Table Asset under Increase/ Decrease

Management 2015-2017 from 2016 to 2017
(Rp million) Type of Products 2015 2016 (%) 2017
DPK 16.738.040 20.111.093 19,11 23.955.064
Securities 1.824.885 1.714.560 (57,20) 733.900
ORI 1.295.215 579.575 (38,92) 354.030
SUKUK 529.670 1.024.985 (62,94) 379.870
SBR - 110.000 (100) -

04
Increase/ Decrease
from 2016 to 2017
Mutual Funds 362,381 531,417 (32.71) 357,603

Banking Services Bancassurance 62,573 1,336,218 107.76 2,776,128
Total 18,987,879 23,693,287 17.43 27,822,696
Electronic Channel
Throughout 2017, the transactions through e-channel products amounted to 115,666,659 or
an increase of 23.47% compared to 2016 which was 93,683,253 transactions. This increase is
mainly due to the development of digital features/products and various promotional programs
to attract customers to increase electronic banking transactions.
Table E-Channel Transactions Increase/ Decrease

2015-2017 from 2016 to 2017
ATM & KiosK 41,111,139 72,191,957 18.67 85,673,578
CDM 124,613 143,073 5.26 150,602
Internet Banking 251,757 799,542 111.71 1,692,723
Cash Management 798,154 763,641 31.83 1,006,733
SMS Banking 4,942,511 3,957,008 9.75 4,342,884
Mobile Banking 7,413,767 15,828,032 44.05 22,800,139
Total 54,641,941 93,683,253 23.47 115,666,659
05
The Company has accumulated Income for the Year 2017 amounted to Rp3,027,466 million,
an increase of 15.60% compared to 2016, which was Rp2,618,905 million. The increase is due
to the profitability of conventional segments and sharia segment, which increased by 13.55%
and 27.76%, respectively. The detail of Income for the Year of the Company per segment in the
Income per Segment last two years is as follows.
No Description Conventional Sharia Elimination Total

Table Income for the Year
per Segment 2017 1 Segment Income 18,446,733 824,849 - 19,271,582
(IDR million)
2 Segment Expenses (9,918,890) (11,752) - (9,930,642)
3 Segment Income - Net 8,527,843 813,097 - 9,340,940
4 Other Operating Income 1,538,350 67,581 - 1,605,931
5 Provision for impairment losses on

financial assets and non-financial assets (855,103) (29,298) - (884,401)
6 Other Operating Expenses (5,842,016) (328,551) - (6,170,567)
7 Income from Operations 3,369,074 522,829 - 3,891,903
8 Non-operating Income - Net 10,290 (40,638) - (30,348)
9 Tax Expenses (834,089) - - (834,089)
10 Income for the Year 2,545,275 482,191 - 3,027,466
Table Income for the Year per

Segment 2016 (IDR million)
No Description Conventional Sharia Elimination Total
1 Segment Income 16,501,472 637,347 - 17,138,819
2 Segment Expenses (8,961,627) (13,647) - (8,975,274)
3 Segment Income - Net 7,539,845 623,700 - 8,163,545
4 Other Operating Income 1,241,506 41,316 - 1,282,822
5 Provision for impairment losses

on financial assets and
non-financial assets (598,296) (109,235) - (707,531)
6 Other Operating Expenses (5,132,653) (253,951) - (5,386,604)
7 Income from Operations 3,050,402 265,656 - 3,352,232
8 Non-operating Income - Net (97,741) 75,593 - (22,148)
9 Tax Expenses (711,179) - - (711,179)
10 Income for the Year 2,241,482 377,423 - 2,618,905

Financial Analysis
In 2017, the Company is able to record good financial performance. The

Company recorded Comprehensive Income of the Year for Rp3,056,679
million. In addition, the Company successfully recorded strong financial
position with Total Assets of Rp261,365,267 million, Total Loan and
Financing of Rp198,990,581 million, Total of Third-Party Fund of
Rp192,473,793, and Total Equity of Rp21,663,434 million.
01
Assets
In the midst of the limited growth of growing domestic in 2017 and the increasingly tight
competition in the national banking, the Company is able to increase its assets well above the
average growth of the banking industry. The Company’s assets have grown by more than 18%
Financial Position
over the last 5 (five) years, which proved the growth potential that remains high in the future
Statement as it focuses on housing finance.
The Company’s total assets increased by 22.04% to Rp261,365,267 million, compared to 2016,
which was Rp214,168,479 million. The increase was mainly due to the increase in Loans and
The Total Assets
increased by
Sharia Financing/Receivables by 21.13% in 2017 to Rp196.63 trillion, compared to 2016 of
Rp162.33 trillion.
22.04% Increase/ Decrease

from 2016 to 2017
to Description 2015 2016 (%) 2017
Rp261,365,267 million
Cash 1,181,219 1,006,682 2.07 1,027,554
Current Accounts with Bank

Indonesia 10,986,351 10,697,378 17.36 12,554,585
Current accounts with other Banks 201,361 321,306 73.14 556,301
Table: Assets 2015-2017 Placements with Bank Indonesia and

(IDR million) Other Banks 7,839,477 17,581,350 40.48 24,697,503
Securities 1,807,561 4,171,700 84.72 7,706,031
Government Bonds 8,230,908 9,243,639 (11.46) 8,183,973
Loans granted and sharia financing/

receivables 136,905,226 162,330,347 21.13 196,634,594
Acceptance Receivables - - - 8,081
Fixed Assets 1,553,401 4,659,379 3.82 4,837,319
Interest Receivable 1,548,489 1,864,829 23.14 2,296,440
Deferred Tax Assets - 102,791 69.82 174,555
Other Assets 1,553,599 2,189,078 22.81 2,688,331
Total Assets 171,807,592 214,168,479 22.04 261,365,267
Graph: Assets 2015-2017 300,000,000

(IDR million) 261,365,267
250,000,000
2015 214,168,479
200,000,000
2016 171,807,592
2017 150,000,000
100,000,000
50,000,000
01
Cash
The Company’s Total Cash increased by 2.07% to Rp1,027,554 million compared to 2016, which
was Rp1,006,682 million. Cash Balance of 2016 and 2017 includes cash balance on Automated
Teller Machines, which amounts to Rp192,754 million and Rp187,839 million, respectively. The
Financial Position decreased cash is a part of the Company’s overall liquidity management.
Statement
Current Accounts with Bank Indonesia
The Company’s current account with Bank Indonesia increased by 17.36% to Rp12,554,585
million, compared to 2016, which was Rp10,697,378 million. The increase is influenced by the
Company’s policy in managing current account balance at Bank Indonesia to support payment
traffic and liquidity management. The increase of current Accounts with Bank Indonesia balance
is influenced by the growth of deposits from customer in the amount of 20.45% in 2017.
Current accounts with other Banks

The Company’s current account with other Banks increased by 73.14% to Rp556,301 million,
compared to 2016, which was Rp321,306 million. The increase is influenced by the Company’s
policy in managing liquidity.
Placements with Bank Indonesia and Other Banks

The Company’s total Placements with Bank Indonesia and Other Banks increased by 40.48%
to Rp24,697,503 million compared to 2016, which was Rp17,581,350 million. The increase
is influenced by the increase in Term Deposit in order to optimize liquidity management and
placement in favorable instruments.
Securities
The Company’s total Securities increased by 84.72% to Rp7,706,031 million compared to 2016,
which was Rp4,171,700 million. The increase is influenced by the increase in trading portfolio
by 785.61% in 2017 to Rp4,857,775 million, compared to 2016 which amounted to Rp548,521
million. This is the Company’s goal to optimize revenue while maintaining liquid instruments.
Table: Securities 2015-2017 Increase/ Decrease

(Rp million) from 2016 to 2017
Description 2015 2016 (%) 2017
Fair value through profit or loss
(trading) 0 548,521 786.61 4,857,775
Available-for-sale 1,461,052 3,339,443 (21.65) 2,616,393
Held-to-maturity 358,510 298,177 (17.24) 246,786
Total 1,819,562 4,186,141 84.44 7,720,954
Allowance For Impairment Losses (12,001) (14,441) 3.34 (14,923)
Total Securities 1,807,561 4,171,700 84.72 7,706,031

01
Government Bonds
The Company’s Government Bonds increased by 11.46% to Rp8,183,973 million compared to
2016, which was Rp9,243,639 million. The biggest increase is on available-for-sale portfolio of
14.17% of Rp5,076,450 million in 2016 to Rp4,357,109 million in 2017. The decline is influenced
Financial Position by investment management and Company’s liquidity.
Statement
Increase/ Decrease
Table: Government Bonds from 2016 to 2017
(Rp million) Description 2015 2016 (%) 2017
Fair value through profit or loss
(trading) 19,267 1,130,579 (55.96) 497,939
Available-for-sale 5,111,280 5,076,450 (14.17) 4,357,109
Held-to-maturity 3,100,361 3,036,610 9.63 3,328,925
Total 8,230,908 9,243,639 (11.46) 8,183,973
Fixed Interest Rate 2,160,071 2,637,118 22.39 3,227,470
Zero Coupon 257,502 1,703,915 (100.00) -
Variable Interest Rate 5,813,335 4,902,606 1.10 4,956,503
Total Government Bonds 8,230,908 9,243,639 (11.46) 8,183,973
Loans granted and sharia financing/receivables

Total loans granted and Sharia Financing/Receivables in the Company increased by 21.13% to
Rp196,634,594 million compared to 2016, which was Rp162,330,347 million or in terms of
gross, increased by 21.01% from Rp164,446,381 million in 2016 to Rp198,990,581 million in
2017. The increase was influenced by the increasing lending and sharia financing of the Company
in the housing sector to support the One Million Houses program by the Indonesian government.
The Company maintains a loan portfolio and housing finance of over 90% of total loan and
financing. Housing loans and financing, such as Subsidized Housing Loans and Construction
Loans, are the main drivers of growth. Subsidized Housing Loan grew by 32.45%, in line with
the still high demand for housing in the lower segment, while Construction Loan increased
by 18.98%, in line with the Company’s efforts to increase its home supply during 2017. Non-
Housing Commercial Loans increased by 27.12% in 2017, and it remain focused on State-Owned
Enterprises and its subsidiaries to finance projects that are still related to housing.
Table: Composition of Sharia
Financing and Loans in 2015- Due to this high growths, the Company is still the leader in the Housing Loan market in Indonesia,
2017 (Rp billion) with 36.30% market share.
Increase/ Decrease
from 2016 to 2017
Description 2015 2016 (%) 2017
Market Market Market

Rp billion Share (%) Rp billion Share (%) Rp billion Share (%)
Housing Loans 124,927 89.90 147,948 89.97 21.14 179,228 90.07
1. Subsidized Housing Loan 43,527 31.32 56,835 34.56 32.45 75,278 37.83
2. Non Subsidized Housing Loan 53,567 38.55 60,469 36.77 14.62 69,309 34.83
3. Other Housing Loans 8,934 6.43 8,723 5.30 (1.86) 8,561 4.30
4. Construction Loans 18,900 13.60 21,921 13.33 18.98 26,081 13.11
Increase/ Decrease
from 2016 to 2017
Description 2015 2016 (%) 2017
Non Housing Loans 14,029 10.10 16,498 10.03 19.78 19,763 9.93
1. Consumer Loan 3,839 2.76 4,738 2.88 1.59 4,813 2.42
2. Commercial Loan 10,190 7.33 11,761 7.15 27.12 14,950 7.51
Total Loans 128,956 100.00 164,446 100.00 21.01 198,991 100.00
Although loan growth is well above industry growth during 2017, the Company is able to
maintain the quality of its loans and financing. The Non-Performing Loans (NPL) improved from
2.84% in 2016 to 2.66% in 2017, as a result of the Company’s efforts to improve the loan analysis
process, tight monitoring of debtor’s business and collaterals, and intensification of billing and
sales processes, loan collateral, and financing problems.
Table: Loan and Financing per
Collectibility in 2015-2017 Not only in the NPL level, the special mention loan also continue to show improvement. Special
(Rp billion) mention loan also decreased by 12.46% in 2015, to 10.22% in 2016, and 8.77% in 2017.
Description 2015 2016 2017

Non-Performing Loan (NPL) 134,203 96.58 159,770 97.16 193,703 97.34
1. Current 116,887 84.12 142,963 86.94 176,247 88.57
2. Special Mention 17,316 12.46 16,807 10.22 17,455 8.77
Non-Performing Loan (NPL) 4,753 3.42 4,676 2.84 5,288 2.66
1. Substandard 250 0.18 260 0.16 236 0.12
2. Doubtful 359 0.26 333 0.20 349 0.18
3. Loss 4,144 2.98 4,083 2.48 4,703 2.36
PL + NPL 138,956 100.00 164,446 100.00 198,991 100.00
NPL Gross 3.42% 2.84% 2.66%
NPL Netto 2.11% 1.85% 1.66%
The quality of each type by loan shows that NPL and Subsidized Housing Loan improved over
the last 3 (three) years, to 1.16% in 2017. Non-residential Commercial Loans NPLs also gradually
improved to 7.99%, as the Company step to intensify sales activities and auction of collateral
for troubled loans.
Table: Composition of Sharia

Loan and Financing in 2015- No Description 2015 2016 2017
2017 (%)
1 Housing Loan 2.79 2.36 2.31
1. Subsidized Housing Loan 2.48 1.52 1.16
2. Non-Subsidized Housing Loan 2.57 2.65 3.00
3. Other Housing-Related Loan 3.44 3.59 4.09
4. Construction Loan 3.81 3.21 3.14

01 No
2
Description
Non-Housing Loan
2015
9.02
2016
7.14
2017
5.82
Financial Position
Statement 1. Consumer Loan 2.17 1.35 1.34
2. Commercial Loan 11.57 9.44 7.99
Total Loans 3.42 2.84 2.66
Acceptance Receivables
Total Company’s Acceptance Receivables in 2017 is Rp8,081 million and there is no balance
in 2016. The emerging acceptance receivable is influenced by the Company’s expansion in the
financing business sector, which is still relevant to the Company’s main business scope.
Fixed Assets
The Company’s total assets increased by 3.82% to Rp4,837,319 million, compared to 2016,
which was Rp4,659,379 million. The increase is influenced by the addition of office equipment
in order to support the Company’s operations.
Table: Fixed Assets 2015-

Increase/Decrease
2017 (Rp million) from 2016 to 2017
Description 2015 2016 (%) 2017
Land 537,559 3,579,861 0.00 3,579,953
Building 1,051,747 1,174,514 15.34 1,354,709
Office Equipment and Vehicles 1,575,241 1,751,407 11.12 1,946,112
Total Cost Value 3,164,547 6,505,782 5.76 6,880,774
Construction in progress assets 72,740 51,550 16.70 60,159
Cost Value 3,237,287 6,557,332 5.85 6,940,933
Accumulated Depreciation
Building 392,181 444,222 12.74 500,796
Office Equipment and Vehicles 1,291,705 1,453,731 10.26 1,602,818
Total Accumulated Depreciation 1,683,886 1,897,953 10.84 2,103,614
Net Book Value 1,553,401 4,659,379 3.82 4,837,319
Interest Receivable
The Company’s Total Interest Receivable increased by 23.14% to Rp2,296,440 million compared
to 2016 which was Rp1,864,829 million. The increase is influenced by the increase in interest
from the loan portfolio and the quality of the asset quality.
Deferred Tax Assets

The Company’s Total Deferred Tax Assets increased by 69.82% to Rp174,555 million compared to
2016 which was Rp102,791 million. The increase is mainly influenced by the calculation of fiscal
correction from allowance for impairment losses on financial assets and non-financial assets,
due to differences in calculations under the terms of financial accounting standards and taxation.
Other Assets
The Company’s Total Other Assets increased by 22.81% to Rp2,688,331 million compared to
The Total Liabilities 2016 which was Rp2,189,078 million. This post consists of billing to a third party, prepaid
increased by
expenses, foreclosed assets, etc.
22.48% Liabilities
The Company’s Total Liabilities increased by 22.48% to Rp223,937,463 million compared to
to 2016, which was Rp182,828,998 million. The increase is mainly influenced by the increase in
the Customer’s Deposits, the issuance of new securities, and additional loan receipts amounting
to Rp29,303,803 million, Rp5,560,549 million and Rp2,991,437 million, respectively.
Increase/ Decrease
Table: Liabilities 2015-2017 from 2016 to 2017
Description 2015 2016 (%) 2017
(IDR million)
Liabilities Due Immediately 1,960,789 2,081,886 35.16 2,813,874
Deposits from Customer 118,802,724 147,787,618 19.83 177,091,421
Deposits from Other Banks 1,715,902 3,643,889 38.96 5,063,433
Securities Sold Under Repurchase

Agreements 2,135,091 1,385,000 - 1,385,000
Acceptance Payable - - - 8,081
Securities Issued 12,492,202 14,919,910 37.27 20,480,459
Borrowings 7,726,728 4,999,616 59.83 7,991,053
Interest Payable 357,364 382,551 28.70 492,361
Employee Benefits and Other

Liabilities 3,835,877 4,629,410 21.23 5,612,462
Subordinated loans - 2,999,118 0.01 2,999,319
Deferred Tax Liabilities 9,566 - - -
Total Liabilities 149,036,243 182,828,998 22.48 223,937,463
Graph: Liabilities 2015-2017 250,000,000

223,937,463
(IDR million)
200,000,000
182,828,998
2015 149,036,243
150,000,000
2016
2017 100,000,000
50,000,000
Graph: Liabilities 2015-2017 (IDR million)

The Company’s Total Liabilities Due Immediately increased by 35.16% to Rp2,813,874 million
compared to 2017, which was Rp2,081,886 million. The increase is mainly influenced by the
increase in Time Deposit Maturities and Liabilities to Third Parties amounting to Rp491,458
million and Rp258,771 million, respectively. The increase in liabilities to third parties is due to
increased liabilities to payment point service providers due to increased transactions on the
payment point.
Deposits from the Customer and Temporary Syirkah Funds

To support high loan growth, the Company must be able to raise funds from customers in large
quantities. In 2017, the Company was able to increase its deposits from customer position

01
including temporary syirkah funds from Rp159,987,717 million in 2016, to Rp192,473,793
million in 2017 or an increase of 20.31%.
The Company’s strategy of collecting deposits from customers is to focus on low-cost retail
Financial Position funds, with the aim of increasing the CASA ratio gradually. CASA enhancements are made
Statement through attractive promotional programs, prize drawing campaigns, and improvements to
Savings and Giro products through the development of digital and electronic banking.
Table: Deposits from the

Increase/Decrease
Customer and Temporary from 2016 to 2017
Syirkah Funds Description 2015 2016 (%) 2017
Demand Deposit 31,368,443 45,846,055 19.21 54,655,130
Savings 30,757,681 34,826,208 17.57 40,946,579
Time Deposit 65,582,546 79,315,454 22.14 96,872,084
Total Deposits from the Customer

and Temporary Syirkah Funds 127,710,685 159,989,733 20.31 192,475,810
CASA Ratio 48.65% 50.42% (1.50) 49.67%
Deposits from Customer

The Company’s Total Deposits from Customer increased by 19.83% to Rp177,091,421 million
compared to 2016, which was Rp147,787,618 million. The increase is influenced by the increase
of deposits in term deposits of Rp15,944,979 million and Current Accounts of Rp7,376,146
million, as a result of the effectiveness of third party fundraising by the Company.
Table: Deposits from Customer

Increase/Decrease
(Rp million) from 2016 to 2017
Description 2015 2016 (%) 2017
Demand Deposit 30,881,941 44,906,039 17.51 55,769,152
Savings 29,871,543 33,344,626 16.48 38,840,337
Time Deposit 58,049,240 69,536,953 22.93 85,481,932
Total Deposits from Customer 118,802,724 147,787,618 19.83 177,091,421
Syirkah Temporary Fund

The Company’s Syirkah Temporary Fund increased by 29.12% to Rp15,764,370 million compared
to 2016 which was Rp12,208,945 million. The increase is influenced by the increase of
Mudharabah Customer’s Deposits and Current Account of Mudharabah Customers amounting to
Rp1,348,651 million and Rp945,962 million, respectively, due to the increase in the effectiveness
of the accumulation of funds by the Company.
Table: Syirkah Temporary Fund

Increase/Decrease
Description 2015 2016 (%) 2017
Deposits from Customer 8,905,946 12,200,099 26.08 15,382,372
Deposits from Other Banks 5.296 8.846 4,218.31 381.998
Total Syirkah Temporary Fund 8,911,242 12,208,945 29.12 15,764,370
Graph: Syirkah Temporary 20,000,000

Fund 2015-2017 (Rp million) 15,764,370
15,000,000
12,208,945
2015
10,000,000 8,911,242
2016
2017 5,000,000
Deposits from Customer - Syirkah

The Company’s Total Deposits from Customer - Syirkah increased by 26.08% to Rp15,382,372
million compared to 2016, which was Rp12,200,099 million. The increase is mainly influenced
by the increase in Mudaharabah Customer Deposits amounting to Rp1,611.651 million, as a
result of the effectiveness of the Company’s fundraising activities.
Table: Deposits from Customer Increase/Decrease

- Syirkah (Rp million) from 2016 to 2017
Description 2015 2016 (%) 2017
Current accounts Mudharabah 486,502 940,016 100.63 1,885,978
Saving deposits Mudharabah 886,138 1,481,582 42.16 2,106,242
Time deposits Mudharabah 7,533,306 9,778,501 16.48 11,390,152
Total Deposits from Customer -

Syirkah 8,905,946 12,200,099 26.08 15,382,372
Deposits from Other Banks - Syirkah

The Company’s Total Deposits from Other Banks - Syirkah increased by 4,218.31% to Rp381,998
million compared to 2016, which was Rp8,846 million. The increase is mainly influenced by the
increase in Mudaharabah Other Banks Deposits amounting to Rp371,712 million, as a result of
the effectiveness of the Company’s fundraising activities.
Acceptance Payable
The Company’s Total Deposits from Other Banks increased by 38.96% to Rp5,063,433 million
compared to 2016, which was Rp3,643,889 million. The increase is mainly influenced by the
increase in Deposits from Other Banks in the form of time deposits amounting to Rp2,158,082
million, as a result of the Company’s marketing activities.
Securities Sold Under Repurchase Agreements

Securities sold under repurchase agreements in 2016 and 2017 amounted to Rp1,385,000 million.
Acceptance Payable
Total Company’s Acceptance Payable in 2017 is Rp8,081 million. There is no balance in 2016.
The emerging of acceptance payable in 2017 is due to the Company’s expansion in the new
business sector to supplement its revenue.
Securities Issued
The Company’s Total Securities Issued increased by 37.27% to Rp20,480,459 million compared
to 2016 which was Rp14,919,910 million. The increase is mainly influenced by the issuance of
the Continuous Bonds III Phase I 2017, at a nominal value of Rp5,000,000 million to support
the Company’s financing activities.
Borrowings
The Company’s Total Borrowings decreased by 59.83% to Rp 7,991,053 million compared to
2016 which was Rp4,999,616 million. The increase is mainly influenced by the addition of the

01
Company’s bilateral loan from PT Sarana Multigriya Finansial amounting to Rp2,599,766 million,
which is utilized as a source of funding to support loan distribution.
Interest Payables
Financial Position The Company’s Total Interest Payables increased by 28.70% to Rp492,361 million compared to
Statement 2016 which was Rp382,551 million. The increase is mainly influenced by the increasing interest
payables for Time Deposits and Securities Issued amounting to Rp93,019 million and Rp16,592,
respectively, as a result of the increase in the balance of these financial liabilities.
Employee Benefits and Other Liabilities

The Company’s Total Employee Benefits and Other Liabilities increased by 21.23% to Rp5,612,462
million compared to 2016, which was Rp4,629,410 million. The increase is mainly influenced
by the increase in the Developer Guarantee Fund amounting to Rp771,413 million, in line with
the increased lending to Housing Developers. The Company required developers to provide a
guarantee fund for the settlement of Developer’s liabilities to customers.
Subordinated loans
Total Company’s Subordinated Loans increased by 0.01% to Rp2,999,319 million, compared to
2016 which was Rp2,999,118 million. In 2017, the Company does not use Subordinated Loan
Instruments as an alternative source of financing in the context of overall debt management.
The Total Equity Equity

increased by The Company’s Total Equity increased by 13.24% to Rp21,663,434 million compared to 2016,
13.24%
which was Rp19,130,536 million. The increase is mainly influenced by the increase in retained
earnings of the Company in 2017 amounting to Rp2,503,685 million, in line with the Company’s
success in earning a Comprehensive Income for the year.
to
Increase/ Decrease
from 2016 to 2017
Description 2015 2016 (%) 2017
Capital Stock 5,291,173 5,295,000 - 5,295,000
Additional Paid-Up Capital 2,046,598 2,054,454 - 2,054,454

Table: Equity 2015-2017
(IDR million) Stock Option 2.690 - - -
Net unrealized loss on available-

for-sale securities and Government
bonds, net of deferred tax (133.690) (115.567) (81.19) (21.742)
Remeasurement Losses on defined

benefit plan - net of deferred tax (106.144) (78.546) 82.26 (143.158)
Earnings from Fixed Assets

Revaluation - 2,966,991 - 2,966,991
Retained Earnings 6,759,480 9,008,204 27.79 11,511,889
Total Equity 13,860,107 19,130,536 13.24 21,663,434
Graph: Equity 2015-2017 25,000,000

(IDR million) 21,663,434
20,000,000 19,130,536
2015
15,000,000 13,860,107
2016
2017 10,000,000
5,000,000
02
The Company recorded a net income of Rp3,027,466 million in 2017 or increased by 15.60%
from 2016, i.e. Rp2,618,905 million. This net income growth is driven by high loan and financing
growth, loan quality improvement, and reduction of cost of funds. Fee-based income growth
Statement of Profit
also encouraged the net income increase.
or Loss and Other
Comprehensive Increase/ Decrease
Income Description 2015 2016
from 2016 to 2017
(%) 2017
Table: Statement of Profit/ Operational Income and Expense

Loss in 2015-2017
1. Interest Revenue and Net Split 14.966.209 17.138.819 12,44 19.271.582
(IDR million)
2. Interest Expense and Bonus (8.155.133) (8.975.274) 10,64 (9.930.642)
Other Operating Income 1.106.526 1.282.822 25,19 1.605.931
The Income from Operations Depreciation of Impairment on

increased by Financial and Non-Financial Assets (901.008) (707.531) 25,00 (884.401)
16.10% Reversed Estimated Allowance

(Expense) on Impairment of
Commitment and Contingencies 7.198 - - -
to
Rp3,891,903 million Other Operational Expenses (4.490.187) (5.386.604) 14,55 (6.170.567)
Income from Operations 2.533.605 3.352.232 16,10 3.891.903
Non-Operational Income - Net 8.281 (22.148) 37,02 (30.348)
Profit before Tax Expense 2.541.886 3.330.084 15,96 3.861.555
Tax Expenses (690.979) (711.179) 17,28 (834.089)
Income for the Year 1.850.907 2.618.905 15,60 3.027.466
Other Comprehensive Income:
1. Accounts that shall not be

reclassified to income statement 4.107 2.994.589 (102,16) (64,612)
2. Accounts that shall not be

reclassified to income statement (43.677) 18.123 417,71 93.825
Total comprehensive income for

the year - after tax 1.811.337 5.631.617 (45,72) 3.056.679
Earnings Per Share
1. Basic (full amount) 175 247 15,79 286
2. Diluted (full amount) 175 247 15,79 286
Graph of Comprehensive 6,000,000

5,631,617
Income for the Year 2015-
2017 (Rp million) 5,000,000
4,000,000
2015
2016 3,000,000 3,056,679
2017
2,000,000 1,811,337
1,000,000

Interest Revenue and Net Split

Interest income and profit sharing increased by 12.44% to Rp19,271,582 million compared to
that in 2016 of Rp17,138,819 million. The increase is mainly caused by the increase in interest
income from the granted Loans of 12,51%, from Rp15,458,359 million to Rp17,391,610 million
in 2017 as an impact of the increase in the loans balance and the maintenance of asset
portfolio quality.
Table of Interest Revenue and Increase/ Decrease

Net Split in 2015-2017 (Rp from 2016 to 2017
Keterangan 2015 2016 (%) 2017
million)
Interest 14,455,136 16,501,472 11.79 18,446,734
1. Loans granted 13,523,274 15,458,359 12.51 17,391,610
2. Current Accounts with Bank

Indonesia 58,935 37,913 110.40 79,768
3. Current accounts with other

Banks 3,496 1,548 19.64 1,852
4. Placements with Bank Indonesia

and Other Banks 116,020 159,686 4.78 167,323
5. Government Bonds 488,650 557,935 (12.96) 485,628
6. Securities 264,761 286,031 12.07 320,553
Sharia Net Split 511,073 637.347 29.42 824.848
Interest Revenue and Net Split 14,966,209 17,138,819 12.44 19,271,582
Table: Composition of 824,848

Interest Income and
Profit Sharing in 2017
(Rp million)
Interest
Sharia Net Split
18,446,734

Interest expense and bonus increased by 10.64% to Rp9,930,642 million compared to that
in 2016 of Rp8,975,274 million. The largest component of interest expense is the expenses
from deposits from customers (Demand Deposits, Savings Deposits, and Time Deposits), which
increased by 7.31%, from Rp6,634,569 million in 2016 to Rp7,119,638 million in 2017. The
increase is lower than the 19.83% growth in deposits from customers, as the Company managed
to lower the cost of funds. The increase is experienced by interest expenses of securities issued
of Rp330,125 million, in line with the increase of the Company’s securities balance.
Table of Interest Expense Increase/ Decrease

and Interest in 2015-2017 from 2016 to 2017
Description 2015 2016 (%) 2017
(Rp million)
Interest 8,073,584 8,870,675 10.53 9,805,116
1. Deposits from Customer

(Demand Deposits, Savings
Deposits, and Time Deposits) 6,123,625 6,634,569 7.31 7,119,638
2. Securities Issued 1,056,483 1,189,959 27.74 1,520,084
02
Increase/ Decrease
from 2016 to 2017
Description 2015 2016 (%) 2017
3. Fund Borrowings 517,087 566,644 0.02 566,758

Statement of Profit
4. Subordinated loans - 150,868 79.10 270,200
or Loss and Other
5. Deposits from Other Banks 154,607 181,797 29.96 236,255
Comprehensive
6. Securities Sold Under Repurchase
Income Agreements 221,782 146,838 (37.22) 92,181
Other Financing Expenses 70.383 90.952 25.09 113.773
Wadiah Savings Bonus 11.166 13.647 13.88 11.753
Interest Expense and Bonus 8,155,133 8,975,274 10.64 9,930,642
Graph: Composition of 11,753

112,773
Interest Expense and
Bonus in 2017 (Rp million)
Interest
Other financing expenses
Bonus Simpanan Wadiah
9,805,116
Other Operating Income

Other operating income increased by 25.19% to Rp1,605,931 million, compared to that in 2016
of Rp1,282,822 million. The increase is mainly caused by the increase in administrative fees
and fines on savings and loans of Rp159,120 million.
In the future, the Company will continue its efforts to increase other operating income or
fee-based income, which is currently still a small contribution to total income. Some banking
transactions that are expected to increase fee-based income are wealth management and
bancassurance transactions, business card transactions, and increased banking transactions
through digital and electronic platforms.
Table: Other Operating Income

Increase/ Decrease
in 2015-2017 (Rp million) from 2016 to 2017
Description 2015 2016 (%) 2017
Administration fees and penalties on

deposits and loans 533,688 591,244 26.91 750,364
Income from recovery of loans

written-off 210,996 178,427 (21.68) 139,740
Gain on sale of securities - net 147,558 218,091 35.03 294,486
Gain on sale of government

bonds - net 19,495 54,430 87.28 101,934
Unrealized gain on changes in fair

value of securities - net - 6,443 26.42 8,145
Unrealized gain on changes in fair

value of government bonds - net - 3,507 (100.00) -

02
Increase/ Decrease
from 2016 to 2017
Description 2015 2016 (%) 2017
Bank services 87,549 114,807 34.35 154,239

Statement of Profit Collection services - payment points 5,252 7,599 140.08 18,244
or Loss and Other Others 101,988 108,274 28.17 138,779
Comprehensive Other Operating Income 1,106,526 1,282,822 25.19 1,605,931
Income
Other Operating Expenses

Other operating expenses increased by 14.55% to Rp6,170,567 million, compared to that
in 2016 of Rp5,386,604 million. The increase is mainly due to an increase in general and
administrative expenses, and salaries and employee benefits of Rp487,210 million and
Rp432,776 million, respectively.
Table: Other Operating Increase/ Decrease

Expenses in 2015-2017 from 2016 to 2017
Description 2015 2016 (%) 2017
(Rp million)
General and Administrative 2,151,266 2,465,706 19.76 2,952,916
Salaries and Employee Benefits 1,929,346 2,121,653 20.40 2,554,429
Unrealized loss on changes in fair

value of government bonds - net 193 - 1,801
Premium on government's guarantee

program 229,549 285,344 21.52 346,755
Others 179,833 513,901 (38.77) 314,666
Other Operating Expenses 4,490,187 5,386,604 14.55 6,170,567
General and Administrative Expenses

General and administrative expenses increased to 19.76% from Rp2,465,706 million in 2016 to
Rp2,952,916 million in 2017. The largest contributor to general and administrative expenses is
repair and maintenance expense of Rp807,856 million, and promotional expense of Rp523,425
million in 2017, which increased by 11.65% and 30.38% respectively, compared to the previous year.
Salaries and Employee Benefits

Salaries and employee benefits increased to 20.40% from Rp2,121,653 million in 2016 to
Rp2,554,429 million in 2017. The increase is mainly due to the increase in the number of
Company’s employees of 1,001 employees by 2017, as well as the adjustment of salaries and
employee benefits.

Income from operations increased by 16.10% to Rp3,891,903 million, compared to that in 2016
of Rp3,352,232 million. The increase is mainly due to an increase in interest income, in line with
the increase in earning assets and the maintained quality of the Company’s earning assets.
Graphic: Operational Profit in 4,000,000 3,891,903

2015-2017 (Rp million) 3,352,232
3,000,000
2,533,605
2015
2,000,000
2016
2017 1,000,000
02
Income Before Tax
Income before tax increased by 15.96% to Rp3,861,555 million compared to that in 2016 of
Rp3,330,084 million.
Statement of Profit Tax Expenses

or Loss and Other Tax expense increased by 17.28% to Rp834,089 million, compared to that in 2016 of Rp711,179
Comprehensive million. The increase is in line with the increase in Income Before Tax.
Income
Income for the Year
Income for the year increased by 15.60% to Rp3,027,466 million, compared to that in 2016
of Rp2,618,905 million. The increase is in line with the increase in Interest Income and
Other Operating Income, which is higher than the increase of Interest Expense and Other
Operating Expenses.
Graphic: Income for the Year 4,000,000

2015-2017 (Rp million)
3,000,000 3,027,466
2,618,905
2015
2,000,000 1,850,907
2016
2017 1,000,000
Earnings Per Share

Earnings per share - basic and diluted in 2017 is Rp286, respectively. The amount increased by
15.79% compared to 2016, which was Rp247.
03
The increase in cash and cash equivalents in 2017 is Rp9,229,441 million. Thus, the balance
of cash and cash equivalents in 2017 is Rp38,837,639 million, increased by 31.17% compared
to 2016, i.e. Rp29,608,198 million. The increase is primarily due to the Company’s financing
activities amounting to Rp8,075,789 million, which derived from loan accumulation activities
Statement of and issuance of securities.
Cash Flows
Increase/ Decrease
Table: Cash Flows 2015-2017 from 2016 to 2017
(Rp million) Description 2015 2016 (%) 2017
Net cash provided by (used in)

Operational Activities 1,707,579 9,783,925 (96.72) 321,044
Net cash provided by (used in)

Investment Activities 2,643,735 (1,974,142) (142.18) 832,608
Cash and Cash Equivalents
Net cash provided by Financing
The increase is
Activities 2,826,668 1,588,435 408.41 8,075,789
Rp9,229,441 juta Net Increase (Decrease) in Cash

and Cash Equivalents 7,177,982 9,398,218 (1.80) 9,229,441
making the total of
Rp38,837,639 million Beginning Balance of Cash and
Cash Equivalents 13,031,998 20,209,980 46.50 29,608,198
Ending Balance of Cash and Cash

Equivalents 20,209,980 29,608,198 31.17 38,837,639

03
Cash Flow from Operational Activities
Net cash provided by (used in) the Operational Activities increased 96.72% to Rp321,044
million compared to that in 2016 of Rp9,783,925 million. The decrease is mainly supported
by an increase in cash outflows arising from the increase in operating assets in the form of
Statement of
Loans Provided and Financing/Sharia Receivables and Securities, at fair value, through profit
Cash Flows and loss, amounting to Rp9,059,770 million and Rp3,759,031 million respectively. In addition,
the Operations Cash Flow decrease is also supported by the decrease in cash inflows from
the decrease in operating liabilities in the form of Current Accounts and Other Banks Savings,
amounting to Rp6,115,373 million and Rp508,443 million, respectively.
Cash Flow from Investment Activities

The Net Cash Provided by Investing Activities is Rp832,608 million. The Net Cash used in
Investing Activities in 2016 is Rp1,974,142. In 2017, Cash Inflow of such Investment Activity
is derived primarily from decreases of available for sale securities, decrease of available-for-
sale government bonds, amounting to Rp743,790 million and Rp719,340 million, respectively.
Cash Flow from Financing Activities

Net cash provided by (used in) the Financing Activities decreased 408.41% to Rp8,075,789
million compared to that in 2016 of Rp1,588,435 million. The increase is due to an increase in
cash inflows from net proceeds of the loans received and receipts of securities amounting to
Rp5,718,548 million and Rp2,180,426 million, respectively. This is in line with the Company’s
policy to raise funds from bilateral loans and capital markets in order to support the loan
disbursement activities.
Solvency and Collectability

of Receivables
Solvency
The company’s ability to meet their liabilities can be measured by a liquidity ratio and solvency
Loan to Deposit Ratio ratio. The ratio is also an indicator in calculating the possible risks that may arise in the company’s
of operations. This encourages the Company to continuously control their financial performance
103.13%
in a sustainable manner.
The company’s liquidity is reflected from the financing structure, assets liquidity, liability to third
fits “liquid” criteria parties and loan commitment to the debtors. The company booked a total of Rp51,165,159 million
of Current Assets in 2017, an increase of 28.87% compared to 2016. This figure represents 19.58%
of Total Assets or 26.58% of non-bank savings. This condition indicates that the company’s liquidity
is in good condition. In addition, the Company strives to control liquidity risk by measuring a number
of indicators, including:
1. Primary reserve ratio (ratio of minimum statutory reserve (GWM) and cash)
As of 31 December 2016, the Primary Rupiah GWM for conventional and sharia business
unit were respectively 7.02% and 5.00%. On the other hand, for the case of foreign currency,
the Company maintained a conventional Foreign Currency GWM of 8,38% of total foreign
currency third party funds based on the limit set.

Program Satu Juta Rumah

Source: Wawan Hadi Prabowo
Financial performance indicators can be

measured by the Company’s ability to meet
their short-term or long-term liabilities.
In addition, this can also maximize fast
collectability of receivables especially for
credit granted to customers.
2. Secondary Reserve (liquidity reserve) 4. Loan to Deposit Ratio (LDR)

Supports the primary reserve functioning as a liquidity LFR is a ratio of loan given to a third party in Rupiah and
reserve for miscellaneous expenses. The company foreign currencies, excluding loan to other banks, to:
manages the secondary reserve by limiting the liquidity ›› third-party funds, including demand deposits, savings,
reserve through a limit safety level, i.e. projection of deposits in Rupiah and foreign currencies, excluding
the Company’s liquidity reserve for the upcoming three interbank funds; and
months. As of 31 December 2017, the company’s liquidity ›› securities in Rupiah and foreign currencies that meet specific
reserve is above the safety level. terms issued by the Banks..
3. Loan to Deposit Ratio (LDR)
This ratio is used to measure the bank’s level of liquidity Limit of LFR = 78-92%, with Minimum Capital Adequacy
by comparing the credit granted to third parties against incentive at 14.
the third-party funds (customer savings). The total funds
from the community used to fund the assets in the form As of December 31, 2017, the Company’s LFR is 106.99%,
of loans can be identified by measuring the liquidity ratio, which reflects that the Bank has expanded the loan in 2017
these funds are commonly short-term hence may affect by maintaining the capital adequacy of 18.87%.
the bank’s level of liquidity. As of 31 December 2017, the
Company’s LDR stood at 103.13% that fits “liquid” criteria.
The bank solvency is measured using a capital ratio. The short-term Subordinated Loan meeting certain criteria as a
company continuously ensures that the capital adequacy Capital component. As of 2017, the Company has booked
to meet the credit risks, market risks and operational risks 15.99% CAR for core capital and 18.87% CAR for credit,
is reflected in the Capital Adequacy Ratio (CAR). CAR is the operational and market risks.
ratio of capital to risk-weighted assets (RWA). Based on
Bank Indonesia regulations, the total capital for credit risk In addition, the bonds issued by the Company has achieved
is categorized into Core Capital (“Tier I”) and Supplementary idAA+ rate from the public company rating institution,
Capital (“Tier II”). To calculate Market Risk, the bank can include PT Pemeringkat Efek Indonesia (Pefindo) or Indonesia’s Rating
an Additional Supplementary Capital (“Tier III”) component i.e. Agency, with details as follows:
No Bonds 2017 Rating Rating Agency
1 Shelf Registration Bonds II Phase II idAA+ Pemeringkat Efek Indonesia (Pefindo)
2 Shelf Registration Bonds II Phase I idAA+ Pemeringkat Efek Indonesia (Pefindo)
3 Shelf Registration Bonds I Phase I idAA+ Pemeringkat Efek Indonesia (Pefindo)
4 Shelf Registration Bonds I Phase I idAA+ Pemeringkat Efek Indonesia (Pefindo)
5 Bank BTN Bonds XIV idAA+ Pemeringkat Efek Indonesia (Pefindo)
6 Bank BTN Bonds XIV idAA+ Pemeringkat Efek Indonesia (Pefindo)
On the corporate level, the Company has good credit rate from
the rating agencies, as details on the table follow:
No Rating Types 2017 Rating Rating Agency
1 Company Rating idAA+ Pemeringkat Efek Indonesia (Pefindo)
2 Long-Term National Rank AA(idn) Fitch Rating
3 Short-Term National Rank AA(idn) Fitch Rating
Collectability Level of Receivables

Conventional Net
The Collectability Level of Reserves is reflected in the Non-
Non Performing Loan is
Performing Loan (NPL) ratio. The NPL ratio serves as a
benchmark to understand the portion of non-performing
loans out of all loans that the bank has granted to customers.
A smaller NPL indicates that the Bank’s collectability of
1.75%
lower than the
receivables is improving and shows good loan quality. previous year
Sharia Net
Non Performing Loan is
0.76%
higher than the
previous year

In 2017, the Gross NPL for the Company’s conventional and sharia banking was 0,76%. The decline in the NPL was
banking was 2.83% and sharia banking was 0.95%. On the a result of the facilitation and settlement of the Company’s
other hand, the Net NPL for conventional banking was 1,75% non-performing debtors throughout 2017.
Table: NPL 2015-2017 (%)
No Description 2015 2016 2017
Conventional
1 Collectability I (Rp million) 106,783,859 130,016,727 159,761,478
2 Collectability II (Rp million) 16,381,551 15,672,200 16,124,666
3 Collectability III (Rp million) 219,944 223,246 200,870
4 Collectability IV (Rp million) 338,138 317,326 328,709
5 Collectability V (Rp million) 4,008,666 3,992,461 4,587,060
6 Gross NPL (%) 3.58 3.02 2.83
7 Net NPL (%) 2.26 1.96 1.75
Sharia
1 Collectability I (Rp million) 10,103,098 12,946,389 16,485,799
2 Collectability II (Rp million) 934,086 1,134,820 1,330,565
3 Collectability III (Rp million) 30,548 36,745 35,541
4 Collectability IV (Rp million) 20,402 15,560 19,821
5 Collectability V (Rp million) 135,512 90,907 116,072
6 Gross NPL (%) 1.66 1.01 0.95
7 Net NPL (%) 0.44 0.66 0.76
As an effort to minimize the amount of non-performing loans in

2017, the Company implemented a number of efforts including:
1. Exercising prudence in providing loan and financing
new loan;
2. Facilitating and collecting debts from non-performing
debtors, including restructuring debts of
potential debtors;
3. Conducting foreclosure of collaterals owned by
non-performing debtors by holding an auction for the
collateral and finding a strategic partner to manage the
Company’s assets.
Financial Ratios
In addition to the Company’ capability to meet obligations, and the ability of

its loan collectability, there are numerous important ratios, i.e. profitability
ratio, solvability ratio, compliance ratio, as well other financial ratios. They are
important indicators of the Company’s performance.
Profitability Ratio
Profitability Ratio is calculated by some other ratios, such as Return on Asset (ROA) ratio, which
1.71% assesses the ability of Company’s assets to generate profit; Return on Equity (ROE) ratio, which
assesses the ability of Company’s equities to generate profit; and Net Interest Margin (NIM),
Return on Asset
which shows the ability of interest revenue to generate the bank’s net profit.
(ROA)
In 2017, the Company’s ROA decreased to 1.71% compared to 2016, which was 1.76%. The
Company’s ROE decreased to 18.11%, compared to 2016 which was 18.35%. The decrease was
4.76% primarily due to the increased cost of loss reserves of the Company’s value in order to improve
Net Interest Margin
the coverage ratio to strengthen the Bank’s credit risk mitigation.
(NIM)
For the Company’s NIM, it decreased to 4.76%, compared to 2016 which was 4,98%. The decline
was mainly due to the declining benchmark interest rate throughout 2017.
18.11% Table: Profitability Ratio 2015-2017 (%)

Return on Equity
(ROE)
Description 2015 2016 2017
ROA 1,61 1,76 1,71
ROE 16,84 18,35 18,11
NIM 4,87 4,98 4,76
Solvability Ratio
The Company’s solvability is measured by Capital Adequacy Ratio (CAR), i.e. the capital ratio
against the risk-weighted assets (RWA). In line with BI Regulation, Minimum Capital Adequacy
Capital Adequacy Ratio (CAR)
decreased by 1.47% to
(KPMM) set forth by BI for bank with risk profile 2 is 9.18%.
18.87% In 2017, the Company’s CAR decreased to 18.87% compared to 2016, which was 20.34%. The
Company’s adequacy ratio shows that the Company is able to cover the risks very well, as it is
still above the minimum CAR value of 9.18%.
Graph: CAR 2015- 20 20.34

2017 (%) 18.87
16.97
15
2017
10
2016
2015 5

Compliance Ratio
Compliance ratio is related to the compliance with rules and
legislation from the regulator, i.e. Legal Lending Limit (BMPK),
Minimum Statutory Reserve (GWM), and fulfillment of Net
Open Position (NOP).
Table: Compliance Ratio 2015-2017 (%)
Legal Lending Limit (BMPK)
1 BMPK Violation Percentage
1. Related Parties 0.00 0.00 0.00
2. Non Related Parties 0.00 0.00 0.00
2 BMPK Exceedance Percentage
1. Related Parties 0.00 0.00 0.00
2. Non Related Parties 0.00 0.00 0.00
Minimum Statutory Reserve (GWM)
1 Primary Statutory Reserve (Rupiah)
1. Conventional 7.95 6.72 7.02
2. Sharia 5.04 5.08 5.00
2 Statutory Reserve (Foreign Currency) 8.08 8.47 8.38
Overall Net Open Position (PDN) 1.74 0.29 1.29
Other Financial Ratios

In addition to the ratio mentioned above, herein other financial
ratios that are taken into account in assessing the Company’s
financial performance.
Table: Other Financial Ratios 2015-2017 (%)

1 Non-Performing Earning Assets and Non-Earning Assets to Total Earning Assets
and Non-Earning Assets 2.91 2.42 2.28
2 Non-Performing Earning Assets to Total Earning Assets 3.20 2.64 2.48
3 Impairment of financial assets (CKPN) to Earning Assets 1.38 1.20 1.10
4 Operating Expenses to Operating Revenues (BOPO) 84.83 82.48 82.06
5 Loan to Deposit Ratio (LDR) 108.78 102.66 103.13
6 NPL Gross 3.42 2.84 2.66
7 NPL Net 2.11 1.85 1.66
Capital Structure and Implementation

of Risk Management
The Company’s Capital Structure is based on an assessment of the required

capital adequacy requirements combined with a review of the latest economic
development. The strong capital structure will highly support the Company’s
business sustainability.
Capital Structure In accordance with Bank Indonesia Regulation, the Bank’s

The Company develops its Capital Planning based on a capital consists of:
review and assessment of the required capital adequacy Core Capital
requirements combined with a review of the latest economic Core capital refers to the bank’s capital consisting of: Primary
development. The Capital Plan is prepared by the Board of Core Capital (Common Equity Tier – CET 1) and Supplementary
Directors as part of the Bank’s Business Plan and approved by Core Capital (Additional Tier 1). The primary core capital
the Board of Commissioners. The Company always connects includes paid-up capital and disclose reserve. Disclose reserve
its financial goals and capital adequacy to risk capital through consists of additional factors (agio, general reserves, previous
the capital planning process. Similarly, the Bank’s business year’s profit, profit for the year, and stock options) and the
is also planned based on the Bank’s capital and liquidity deducting factors (other comprehensive losses and financial
requirements. The capital requirements are planned and asset transactions classified as available for sale, difference of
discussed on a regular basis supported with analysis data. Allowance for Uncollectible Accounts (PPA) on earning assets
with Allowance for Impairment Losses and non-earning PPA).
The management policy on capital is intended to ensure that
the Company has a strong capital and creates a strong capital Supplementary Capital (Maximum 100% of Core Capital)
structure to support the current business development The supplementary capital includes PPA general reserves on
strategy and sustain the Company’s development in the earning assets which shall be calculated by a maximum of
future. In addition, the capital policy is set to comply with 1.25% of RWA Credit Risk and Appropriated Reserves.
the capital adequacy requirement set by the regulator and to
ensure that the Bank’s capital structure is efficient. In 2017, the Company’s core capital and supplementary
capital amounted to Rp22,094,944 million, higher than the
core capital and supplementary capital in 2016 amounting to
Rp20,219,637 million.
Table: Capital Structure (Rp million)
No Capital Component 2017 2016
I Core Capital (Tier 1) 16,443,159 18,726,949
1 Common Equity Tier - Cet 1 16,443,159 18,726,949
1. Paid-up Capital (Net of Treasury Shares) 5,295,000 5,295,000
2. Additional Capital Reserves 11,650,424 14,073,731
›› Agio / Disagio 2,054,454 2,054,454
›› Donation Capital - -
›› General Reserves 3,018,884 3,018,884

I Core Capital (Tier 1) 16,443,159 18,726,949
›› Income/Loss of the Previous Years that can be Calculated 2,529,939 4,625,063
›› Loss of the Current Year that can be Calculated 2,618,905 3,027,466
›› Balance due to financial statements translation - -
›› Paid-Up Capital - -
›› Issued warrants - -
›› Stock option issued for stock-based competence program (50%) - -
›› Other comprehensive revenue (115,567) (21,742)
›› Fixed asset revaluation surplus balance 2,966,991 2,966,991
›› The difference between the PPA and less allowance for impairment losses on earning assets 1,407,356 1,581,575
›› PPA on non-earning assets that should be calculated (15,826) (15,810)
›› Negative balance of the total fair value adjustment of financial instruments in trading book - -
3. Non-Controlling Interests than can be calculated - -
4. Primary Capital Deduction Factor (502,265) (641,782)
›› Deferred Tax Calculation (102,791) (174,555)
›› Goodwill - -
›› Other Intangible Assets - -
›› Equity Investment calculated as deducting factors - -
›› Capital shortage in insurance subsidiary - -
›› Securitization Exposure (399,474) (467,227)
›› Other Core Capital Deducting Factors - -
›› Investment in AT1 Instruments and Tier 2 of other banks
2 Additional Tier - AT 1 - -
Instruments qualifying as AT1 - -
Agio / Disagio - -
Deducting Factors: Investment in AT1 and Tier 2 instrument of Other Banks - -
II, Supplementary Capital 3,367,995 3,776,478
1 Capital instruments in the form of shares or other eligible instruments 2,099,319 2,699,118
2 Agio or disagio from the issuance of supporting capital instrument - -
3 General Reserves of statutory PPA for earning assets (max 1.25% of Credit Risk RWA) 1,268,676 1,077,360
4 Specific Reserve - -
5 Deducting Factors of Supplementary Capital - -
Sinking Fund - -
Investment on Tier 2 Instruments of other banks - -
Total Capital 22,094,944 20,219,637
III Risk Weighted Assets (RWA)
1 Credit Risk RWA 101,494,102 86,188,782
2 Market Risk RWA 664,340 343,820
3 Operational Risk RWA 14,933,824 12,899,251
Total RWA 117,092,266 99,431,853
IV CAR
1 CET 1 Ratio 15.99% 16.54%
2 Tier 1 Ratio 15.99% 16.54%
3 Tier 2 Ratio 2.88% 3.80%
Total Ratio 18.87% 20.34%
V CAR based on Risk Profile 9.00% 9.18%
*CAR is calculated based on Bank Indonesia Regulation (PBI) No. 15/12/PBI/2013 on Capital Adequacy Ratio for Commercial Banks
Risk Management Implementation 3. The Board of Directors has conducted supervision by:
Basis for Determining Risk Management ›› Approving risk management policies, including
The Company manages its capital to maintain the Bank’s the determined risk management strategies and
capital adequacy in accordance with the overall risk profile and framework.
strategy for maintaining capital levels. The amount of capital ›› Evaluating the Risk Management Policy and Strategies
managed by the Company should be able to cover risks arising at least once a year or more frequently if there are
from the Company’s activities but not limited to business changes in the factors significantly affecting the Bank’s
expansion plans and other activities. The capital adequacy business activities.
calculation refers to the Regulators’ applicable regulations. ›› Evaluating and deciding the Board of Directors’ request
in respect of transactions requiring the Board of
The Company manages its capital to maintain the Bank’s Commissioners’ approval.
capital adequacy in accordance with the overall risk profile and ›› Evaluating the accountability of the Board of
strategy for maintaining capital levels. The amount of capital Directors and periodically providing direction for
managed by the Company should be able to cover risks arising the enhancement of risk management policy
from the Company’s activities but not limited to business implementation.
expansion plans and other activities. The capital adequacy 4. The Board of Directors has conducted supervision by:
calculation refers to the Regulators’ applicable regulations.
›› Formulating policies, strategies, and Risk Management
framework in writing and comprehensively including
Risk Management General Implementation
the Risk limits as an overall and by Risk type.
1. The Board of Commissioners and the Board of Directors
›› Developing, establishing, and updating procedures as a
active supervision ensure that Risk Management has
tool to identify, measure, monitor, and control risks.
been implemented adequately in accordance with
›› Preparing and establishing the mechanism of
the characteristics, complexity, and profile of the
transaction approval including those that exceed limits
Company’s risks.
and authority for each hierarchy.
2. The Board of Commissioners and the Board of Directors
›› Evaluating and updating Risk Management policy,
have a good understanding of the type and level of risks
strategy, and framework at least once a year or more
inherent in the Company’s business activities.

frequently in the event of changes in the factors Measurement

significantly affecting the Company’s business The Risk measurement system is used to measure the Risk
activities, Risk exposure, and/or Risk profile. exposures inherent in the Company’s activity compared
›› Establishing organizational structure including clear with the Company’s risk appetite so the Company can take
authority and responsibility of every position level risk mitigation actions and measure the Company’s capital
related to the implementation of Risk Management. adequacy to cover the residual risk. Risk Measurement is
›› Being responsible for the implementation of Risk done periodically both for product and portfolio as well as all
Management policies, strategies, and framework as business activities of the Company.
well as evaluating and providing guidance based on the
reports submitted by the Risk Management Division Monitoring
(RMD), including reports on risk profile. The monitoring system and procedures include monitoring of
›› Ensuring that all material Risks with adverse effects the risk exposure magnitude, risk tolerance, adherence to the
have been followed-up and reported to the Board of internal limit, and results of stress testing and the consistent
Commissioners on a regular basis. implementation of the established policies and procedures.
›› Ensuring the implementation of remedial measures for The monitoring is carried out either by the executing unit or
problems or irregularities in the Company’s business by RMD.
activities discovered by the Internal Audit Division (IAD).
Risk Control
›› Developing risk awareness culture including anti-fraud
The risk control processes applied by the Company are
culture at all levels of the organization.
tailored in accordance with the risk exposure, risk level, and
›› Ensuring adequate financial support and infrastructure
risk tolerance. Risk control may be done, among others, by
for managing and controlling risk.
hedging mechanism and other risk mitigation methods such
›› Ensuring that the Risk Management function has as the issuance of guarantees, asset securitization, and loan
been implemented independently among others, the derivatives, as well as the Company’s capital increase to
segregation of functions between the RMD with the absorb potential losses.
work units conducting and completing transactions.
Risk Management Information System
Adequacy of Policies, Procedures and Limit Set The Risk Management Information System is developed
The Company has policies, procedures, and limits in place for according to the needs of the Company in order to implement
implementing Risk Management policies. The procedures effective Risk Management. The Risk Management
and processes are set forth in the implementation guidelines Information System and the resulting information are tailored
reviewed and updated periodically to accommodate the to the characteristics and complexity of the Company’s
occurring changes. In setting these policies, procedures, and business activities and are adaptive to changes. In developing
limits, the Company considers risk management strategies, the information system technology and new software, the
level of risk taken and risk tolerance, as well as the limit with Company makes sure that that the implementation of the
due regard to the ability of the Company’s capital to absorb risk information system and new technologies will not disrupt the
exposures. Adequacy of the Risk Identification, Measurement, continuity of the Company’s information system.
Monitoring, and Control Process as well as Risk Management
Information System. A Comprehensive Internal Control System
1. Effective implementation of Risk Management is
Identification equipped with a reliable internal control system. Reliable
The risk identification process is done by analyzing all sources and effective implementation of the Company’s internal
of Risks, Risk events and Risk impacts the least on the risk control system is the responsibility of all operational and
of the Company’s products and activities and ensures that supporting units and also IAD. Effective implementation
the Risks of new products and activities have gone through of the internal control system in the implementation
a proper Risk Management process before being introduced of the Company’s Risk Management refers to the set
or executed. policies and procedures.
2. The Company implements the four eyes principle ›› Adequate procedures to ensure the Bank’s compliance
(segregation of functions) between the loan units and with the legislation in force;
risk management unit, especially in terms of decision- ›› An effective, independent, and objective review of the
making in lending by the Credit Risk Desk unit. Bank’s policies, frameworks, and operating procedures;
3. The internal control system in the application of Risk ›› Adequate testing and review of the management
Management at least includes: information system;
›› Correspondence between the internal control system ›› Complete and adequate documentation of the audit
with the type and level of Risks inherent in the Bank’s scope, operational procedures, audit findings, as well
business activities; as the Bank management’s response to the audit
›› Establishment of authority and responsibility for results;
monitoring the compliance with policies, procedures, ›› Regular and continuous verification and review of
and limits; handling the Company’s weaknesses that are material
›› Determination of reporting lines and a clear segregation and the bank management’s actions to fix occurring
of functions of the operating units with the unit deviations.
performing control function; 4. Periodic Review of the Risk Management
›› Organization chart that clearly illustrates the duties and implementation at least every year by the RMD and IAD.
responsibilities of each unit and individual;
›› Accurate and timely financial and operational;
Risk Management Specific Implementation

Credit Risk
Risk management specific implementation is focused on the
implementation of 7 specific risks namely:
Market Risk
Operational Risk
Specific Risks Legal Risk
Strategic Risk
Compliance Risk
Reputational Risk

Credit Risk loan and financing as part of the risk assessment process.
Credit Risk Management Credit Risk exposures are monitored since the loan approval
The Company’s credit risk management is part of the overall process until the maturity of the loan.
risk management referring to Bank Indonesia Regulation (PBI)
No. 11/25/PBI/2009 dated July 1, 2009, on the Amendment The disclosures of Net Receivables by Region, Net Receivables
to Bank Indonesia Regulation No. 5/8/PBI/2003 on the by Contractual Maturity, Net Receivables by Economic Sector,
Implementation of Risk Management for Commercial Banks, Receivables and Reserves by Region, Receivables and
where credit risk is the risk that occurs due to the failure of Reserves by Economic Sector, as well as Movement of the
debtors and/or other parties in meeting their liabilities to the Allowance for Impairment Loss (CKPN) are described in the
Bank. Loan and Financing Policy Guidelines for the Company’s following tables:
Table: Disclosure of Net Receivables by Region per December 31st 2016 (Rp million)
Java Non
No Portfolio Category Jabodetabek Jabodetabek Sumatera Others Total
1 Receivables to Government 37,657,046 - - - 37,657,046
2 Receivables to Public Sector Entities 94,634 - - - 94,634
3 Receivables to Multilateral Development

Banks and International Institutions - - - - -
4 Receivables to Bank 2,057,921 7,499 852 539 2,066,811
5 Loans Secured by Residential Property 49,064,374 32,348,218 19,090,646 20,856,896 121,360,134
6 Loans Secured by Commercial Real Estate 11,000,150 5,042,495 2,256,226 2,542,140 20,841,011
7 Employee/Retired Loans 407,358 270,936 135,760 141,196 955,250
8 Receivables to Micro, Small Business and

Retail Portfolio 2,566,048 1,765,332 675,611 1,197,645 6,204,636
9 Receivables to Corporations 11,045,483 2,761,702 616,468 1,020,578 15,444,231
10 Past Due Receivables 1,051,466 572,200 515,190 751,906 2,890,762
11 Other Assets 4,255,619 2,112,084 581,537 915,561 7,864,801
Total 119,200,099 44,880,466 23,872,290 27,426,461 215,379,316
Table: Disclosure of Net Receivables by Region per December 31st 2017 (Rp million)
Java Non
No Portfolio Category Jabodetabek Jabodetabek Sumatera Others Total
1 Receivables to Government 45,427,435 - - - 45,427,435
2 Receivables to Public Sector Entities 394,809 - - - 394,809

Banks and International Institutions - - - - -
4 Receivables to Bank 2,023,720 16,553 289 - 2,040,562
5 Loans Secured by Residential Property 60,682,877 38,956,028 23,696,509 24,169,762 147,505,176
6 Loans Secured by Commercial Real Estate 13,142,233 6,041,279 2,746,879 2,761,830 24,692,221
7 Employee/Retired Loans 523,014 374,502 191,777 199,701 1,288,994

Retail Portfolio 1,923,775 1,624,915 823,869 2,529,034 6,901,593
9 Receivables to Corporations 12,402,604 4,297,576 1,064,536 1,236,493 19,001,209
10 Past Due Receivables 966,583 711,365 533,996 888,346 3,100,290
11 Other Assets 4,836,185 2,182,664 572,505 968,405 8,559,759
Total 142,323,235 54,204,882 29,630,360 32,753,571 258,912,048
Table: Disclosure of Net Receivables by Contractual Maturity per December 31st 2016 (Rp million)
> 1 Year - > 3 Years - Non

No Portfolio Category <1 Year 3 Years 5 Years >5 Years Contractual Total
1 Receivables to Government 34,930,945 921,774 1,465,310 339,017 - 37,657,046
2 Receivables to Public Sector Entities 69,849 - 3,084 21,701 - 94,634

Banks and International Institutions - - - - - -
4 Receivables to Bank 1,669,382 270,853 126,576 - - 2,066,811
5 Loans Secured by Residential Property 211,240 2,148,941 4,993,931 114,006,022 - 121,360,134
6 Loans Secured by Commercial Real Estate 5,878,042 10,763,009 4,161,796 38,164 - 20,841,011
7 Employee/Retired Loans 1,509 30,326 58,850 864,565 - 955,250

Retail Portfolio 808,905 865,207 664,930 3,865,594 - 6,204,636
9 Receivables to Corporations 6,617,096 4,407,531 1,325,515 3,094,089 - 15,444,231
10 Past Due Receivables 789,746 256,820 203,897 1,640,299 - 2,890,762
11 Other Assets - - - - 7,864,801 7,864,801
Total 50,976,714 19,664,461 13,003,889 123,869,451 7,864,801 215,379,316
Table: Disclosure of Net Receivables by Economic Sectors per December 31st 2016
Receivables to Multilateral
Receivables to Receivables to Public Development Banks and
No Economic Sector Government Sector Entities International Institutions Receivables to Bank
1 Agriculture, Hunting and Forestry - - - -
2 Fishery - - - -
3 Mining and Quarrying - - - -
4 Manufacturing - 20,581 - -
5 Electricity, Gas and Water - 31,749 - -
6 Construction - - - -
7 Wholesale and Retail Trading - - - -
8 Hotel and Food & Beverage - - - -
9 Transportation, Warehousing and

Communications - - - -
10 Financial Intermediary 29,805,016 42,304 - 2,066,811
11 Real Estate, Rental and Business

Services - - - -
12 Public Administration, Defense

and Compulsory Social Security - - - -
13 Education Services - - - -
14 Human Health and Social Work

Activities - - - -
15 Public, Socio-Culture,
Entertainment and Other
Personal Services - - - -

Table: Disclosure of Net Receivables by Contractual Maturity per December 31st 2017 (Rp million)
> 1 Year - > 3 Years - Non

No Portfolio Category <1 Year 3 Years 5 Years >5 Years Contractual Total
1 Receivables to Government 40,559,434 3,709,960 354,642 803,399 - 45,427,435
2 Receivables to Public Sector Entities 53,487 20,936 196,510 123,876 - 394,809

Banks and International Institutions - - - - - -
4 Receivables to Bank 1,260,451 726,024 54,087 - - 2,040,562
5 Loans Secured by Residential Property 307,535 2,450,109 5,443,674 139,303,858 - 147,505,176
6 Loans Secured by Commercial Real Estate 6,266,653 12,156,922 5,080,524 1,188,122 - 24,692,221
7 Employee/Retired Loans 2,484 33,912 63,379 1,189,219 - 1,288,994

Retail Portfolio 828,603 821,249 614,973 4,636,768 - 6,901,593
9 Receivables to Corporations 8,981,952 4,006,449 1,600,888 4,411,920 - 19,001,209
10 Past Due Receivables 770,237 217,994 295,793 1,816,266 - 3,100,290
11 Other Assets - - - - 8,559,759 8,559,759
Total 59,030,836 24,143,555 13,704,470 153,473,428 8,559,759 258,912,048
(Rp million)
Loans Secured Loans Secured by Receivables to Micro,

by Residential Commercial Real Employee/Retired Small Business and Receivables to Past Due
Property Estate Loans Retail Portfolio Corporations Receivables Other Assets
- - - 15,048 21,996 19,359 -
- - - 2,299 4,472 2,887 -
- - - 4,218 189,530 12,640 -
- - - 28,531 123,845 31,606 -
- - - 8,142 31,879 16 -
- 18,365,111 - 345,263 7,407,846 553,402 -
- - - 279,677 1,214,624 146,794 -
- - - 20,753 804,050 79,816 -
- - - 13,821 104,998 22,644 -
- - - 36,321 1,114,002 3,107 -
- 2,475,900 - 15,009 1,278,096 18,605 -
- - - - - - -
- - - 12,300 261,628 11,396 -
- - - 23,809 588,884 5,774 -
- - - 148,417 371,907 32,378 -
16 Individual Services for

Households - - - -
International Institution and

17 Other Extra International
Agencies - - - -
18 Undefined Activities - - - -
19 Non Business Field - - - -
20 Others 7,852,030 - - -
Total 37,657,046 94,634 - 2,066,811
Table: Disclosure of Net Receivables by Economic Sectors per December 31st 2017
1 Agriculture, Hunting and Forestry - - - -
2 Fishery - - - -
3 Mining and Quarrying - - - -
4 Manufacturing - 5.009 - -
5 Electricity, Gas and Water - 221.888 - -
6 Construction - 71.489 - 2.685
7 Wholesale and Retail Trading - 40.063 - 23
8 Hotel and Food & Beverage - - - -

Communications - 30.092 - -
10 Financial Intermediary 37.914.975 26.268 - 2.037.854
11 Real Estate, Rental and Business

Services - - - -
12 Public Administration, Defense

and Compulsory Social Security - - - -
13 Education Services - - - -
14 Human Health and Social Work

Activities - - - -
15 Public, Socio-Culture,
Entertainment and Other
Personal Services - - - -
16 Individual Services for

Households - - - -
17 International Institution and

Other Extra International
Agencies - - - -
18 Undefined Activities - - - -
19 Non Business Field - - - -
20 Others 7.512.460 - - -
Total 45.427.435 394.809 - 2.040.562


- - - 1,161 - - -
- - - - - - -
- - - 28,884 167,749 140 -
121,360,134 - 955,250 5,212,417 1,758,725 1,950,198 -
- - - 8,566 - - 7,864,801
121,360,134 20,841,011 955,250 6,204,636 15,444,231 2,890,762 7,864,801
(Rp million)

- - - 5.728 15.622 17.004 -
- - - - - - -
- - - 8.017 142.679 16.274 -
21 - - 20.460 96.182 24.196 -
- - - 13.357 117.304 433 -
- 21.927.092 - 425.558 8.901.650 503.935 -
- 6.423 - 181.647 1.372.949 124.472 -
- - - 13.477 612.892 104.440 -
- - - 14.250 170.318 5.835 -
- - - 39.823 1.526.841 11.521 -
- 2.758.706 - 17.739 1.982.439 11.670 -
- - - - 5.012 - -
- - - 14.436 207.998 12.145 -
- - - 24.518 419.289 12.674 -
- - - 119.213 589.114 34.443 -
- - - 959 8.313 - -
- - - - - - -
- - - 23.900 121.213 532 -
147.505.155 - 1.288.994 5.974.100 2.711.394 2.220.716 -
- - - 4.411 - - 8.559.759
147.505.176 24.692.221 1.288.994 6.901.593 19.001.209 3.100.290 8.559.759
Table: Disclosure of Receivables and Reserves by Region per December 31st 2016 (Rp million)
Java Non
No Description Jabodetabek Jabodetabek Sumatera Others Total
1 Receivables 115,276,835 43,251,740 23,660,205 27,160,408 209,349,188
2 Impaired Receivables 312,832 55,294 18,669 183,246 570,041
1. Non Past Due 39,554 23,426 9,845 118,772 191,597
2. Past Due 273,278 31,868 8,824 64,474 378,444
3 Allowances for Impairment Losses -

Individual 174,895 37,782 11,158 154,735 378,570

Collective 766,811 308,579 271,857 406,140 1,753,387
5 Written Off Receivables 255,149 167,440 134,288 102,344 659,221
Table: Disclosure of Receivables and Reserves by Economic Sectors per December 31st 2016 (Rp million)
Allowances for Written Off

No Economic Sector Receivables Impaired Receivables Impairment Losses Receivables
Non Past Due Past Due Individual Collective
1 Agriculture, Hunting and Forestry 84,211 - 26,794 18,160 10,426 23,890
2 Fishery 12,496 - - - 2,913 1,723
3 Mining and Quarrying 217,189 - 6,298 2,042 9,023 11,680
4 Manufacturing 235,700 - 23,800 16,052 15,421 31,318
5 Electricity, Gas and Water 71,039 - - - 20 139
6 Construction 24,326,680 69,917 134,300 133,946 587,506 169,897
7 Wholesale and Retail Trading 1,789,060 5,519 52,305 48,723 142,399 263,776
8 Hotel and Food & Beverage 987,674 72,040 81,682 78,331 6,230 3,373

Communications 186,807 23,556 5,018 30,574 15,077 5,403
10 Financial Intermediary 33,588,488 - 1,480 1,480 23,868 6,674
11 Real Estate, Rental and Business Services 3,803,051 - 42,178 26,084 17,804 7,255
12 Public Administration, Defense and

Compulsory Social Security - - - - - -
13 Education Services 291,108 - - - 6,956 469
14 Human Health and Social Work Activities 646,737 20,565 4,589 23,178 14,034 1,266
15 Public, Socio-Culture, Entertainment and

Other Personal Services 564,749 - - - 71,911 244
16 Individual Services for Households 1,160 - - - 2 -
17 International Institution and Other Extra

International Agencies - - - - - -
18 Undefined Activities 196,166 - - - 4,739 -
19 Non Business Field 131,995,304 - - - 825,058 132,114
20 Others 10,351,569 - - - - -
Total 209,349,188 191,597 378,444 378,570 1,753,387 659,221

Table: Disclosure of Receivables and Reserves by Region per December 31st 2017 (Rp million)
Java Non
No Description Jabodetabek Jabodetabek Sumatera Others Total
1 Receivables 135,852,279 52,701,438 29,445,502 32,591,196 250,590,415
2 Impaired Receivables 349,353 161,466 23,198 124,942 658,959
1. Non Past Due 165,001 74,590 6,912 17,843 264,346
2. Past Due 184,352 86,876 16,286 107,099 394,613

Individual 156,853 62,567 19,768 108,714 347,902

Collective 768,772 377,837 319,105 559,260 2,024,974
5 Written Off Receivables 326,871 118,123 75,325 145,050 665,369
Table: Disclosure of Receivables and Reserves by Economic Sectors per December 31st 2017 (Rp million)
Allowances for Written Off

No Economic Sector Receivables Impaired Receivables Impairment Losses Receivables
Non Past Due Past Due Individual Collective
1 Agriculture, Hunting and Forestry 74,774 9,377 26,794 26,111 10,631 9,307
2 Fishery - - - - - 672
3 Mining and Quarrying 178,499 - - - 14,514 8,984
4 Manufacturing 170,983 - 23,800 15,903 13,962 19,774
5 Electricity, Gas and Water 353,380 - - - 485 255
6 Construction 29,352,289 175,041 151,407 153,167 637,619 254,388
7 Wholesale and Retail Trading 1,843,859 60,732 23,992 24,885 134,899 202,918
8 Hotel and Food & Beverage 839,785 - 126,443 68,719 40,951 9,731
Transportation, Warehousing and

9 Communications 243,077 17,540 270 18,933 4,020 29,675
10 Financial Intermediary 41,577,436 - 1,695 1,695 37,084 10,470
11 Real Estate, Rental and Business Services 4,778,660 - 6,478 6,155 19,819 37,148
12 Public Administration, Defense and

Compulsory Social Security 5,012 - - - 3 -
13 Education Services 239,100 - - - 4,943 375
14 Human Health and Social Work Activities 495,345 1,656 33,734 32,334 7,712 202
15 Public, Socio-Culture, Entertainment and

Other Personal Services 751,077 - - - 36,866 583
16 Individual Services for Households 9,272 - - - 5 -
17 International Institution and Other Extra

International Agencies - - - - - -
18 Undefined Activities 145,981 - - - 4,145 -
19 Non Business Field 160,736,422 - - - 1,057,316 80,887
20 Others 8,798,827 - - - - -
Total 250,593,778 264,346 394,613 347,902 2,024,974 665,369
Table: Disclosure of the Movement of Allowance for Impairment Losses (CKPN) per December 31st 2016 (Rp million)
No Description Individual CKPN Collective CKPN
1 Starting Balance - Allowance for Impairment Losses 300,017 1,764,134
2 Additional (reversal) allowance for impairment losses during the year (Net) 203,928 523,099
1. Additional allowance for impairment losses during the year 203,928 523,099
2. Reversal allowance for impairment losses during the year - -
3 Allowance for impairment losses used for written off receivables during the year (125,375) (533,846)
4 Other additional (reversal) of allowance during the year - -
Ending Balance of Allowance for Impairment Losses 378,570 1,753,387
The Company’s counterparty credit risk exposure is typically Descriptions on the Disclosure of Net Receivables by Portfolio
with securities under repurchase agreement with bonds of a Category and Rating Scale and Counterparty Credit Risk are
higher value than the securities purchased by the Company provided below:
Table: Disclosure of Net Receivables by Portfolio and Rating Category
No Portofolio Category Net Receivables per December 31st 2016
Rating Agency Long-Term Rating
Standards and Poor's AAA AA+ - AA- A+ - A- BBB+ - BBB- BB+ - BB- B+ - B- lower than B-
Fitch Rating AAA AA+ - AA- A+ - A- BBB+ - BBB- BB+ - BB- B+ - B- lower than B-
Moody's Aaa Aa1 - Aa3 A1 - A3 Baa1 - Baa3 Ba1 - Ba3 B1 - B3 lower than B3
PT Fitch Ratings Indonesia AA+ (idn) - A+(idn) - BBB+(idn) - BB+(idn) - B+(idn) - lower than
AAA (IDN) AA- (idn) A-(idn) BBB-(idn) BB-(idn) B-(idn) B-(idn)
PT Pemeringkat Efek Indonesia idAA+ - idA+ - idBBB+ - idBB+ - idB+ - lower than
idAAA idAA- idA- idBBB- idBB- idB- idB-
1 Receivables to Government - - - 37,657,046 - - -
2 Receivables to Public Sector

Entities 94,634 - - - - - -
3 Receivables to Multilateral
Development Banks and
International Institution - - - - - - -
4 Receivables to Bank 1,877,362 - 10,572 - - - -
Loans Secured by Residential

5 Property - - - - - - -
6 Loans Secured by Commercial

Real Estate - - - - - - -
7 Employee/Retired Loans - - - - - - -
8 Receivables to Micro, Small

Business and Retail Portfolio - - - - - - -
9 Receivables to Corporation - - - - - - -
10 Past Due Receivables - - - - - - -
11 Other Assets - - - - - - -

Table: Disclosure of the Movement of Allowance for Impairment Losses (CKPN) per December 31st 2017 (Rp million)
No Description Individual CKPN Collective CKPN
1 Starting Balance - Allowance for Impairment Losses 378,570 1,753,387
2 Additional (reversal) allowance for impairment losses during the year (Net) 174,127 732,161
1. Additional allowance for impairment losses during the year 174,127 732,161
2. Reversal allowance for impairment losses during the year - -
3 Allowance for impairment losses used for written off receivables during the year (204,795) (460,574)
4 Other additional (reversal) of allowance during the year - -
Ending Balance of Allowance for Impairment Losses 347,902 2,024,974
(Rp million)
Short-Term Rating Unrated Total
A-1 A-2 A-3 lower than A-3
F1 - F1 F2 F3 lower than F3
p-1 p-2 p-3 lower than P-3
F1+(idn) - F1(idn) F2(idn) F3(idn) lower than F3(idn)
idA1 idA2 idA3 - id A4 lower than idA4
- - - - - 37,657,046
- - - - - 94,634
- - - - - -
- - - - 178,877 2,066,811
- - - - 121,360,134 121,360,134
- - - - 20,841,011 20,841,011
- - - - 955,250 955,250
- - - - 6,204,636 6,204,636
- - - - 15,444,231 15,444,231
- - - - 2,890,762 2,890,762
- - - - 7,864,801 7,864,801
No Portofolio Category Net Receivables per December 31st 2017
Rating Agency Long-Term Rating
Standards and Poor's AAA AA+ - AA- A+ - A- BBB+ - BBB- BB+ - BB- B+ - B- lower than B-
Fitch Rating AAA AA+ - AA- A+ - A- BBB+ - BBB- BB+ - BB- B+ - B- lower than B-
Moody's Aaa Aa1 - Aa3 A1 - A3 Baa1 - Baa3 Ba1 - Ba3 B1 - B3 lower than B3
PT Fitch Ratings Indonesia AA+ (idn) - A+(idn) - BBB+(idn) - BB+(idn) - B+(idn) - lower than
AAA (IDN) AA- (idn) A-(idn) BBB-(idn) BB-(idn) B-(idn) B-(idn)
PT Pemeringkat Efek Indonesia idAA+ - idA+ - idBBB+ - idBB+ - idB+ - lower than
idAAA idAA- idA- idBBB- idBB- idB- idB-
1 Receivables to Government - - - 40,383,100 - - -

Entities 278,428 - 5,005 - - - -
International Institution - - - - - - -
4 Receivables to Bank 1,791,159 - 28,227 - - - -

5 Property - - - - - - -

Real Estate - - - - - - -
7 Employee/Retired Loans - - - - - - -

Business and Retail Portfolio - - - - - - -
9 Receivables to Corporation - - - - - - -
10 Past Due Receivables - - - - - - -
11 Other Assets - - - - - - -
Counterparty Credit Risk is categorized into two categories,

namely:
1. Derivative Transactions
The Company did not have derivative transaction as of
December 31, 2017, and 2016.
2. Repo Transactions
Descriptions of Repo Transactions are detailed in the
table below:
Table: Repo Transactions per December 31st 2016 (Rp million)
SB Repo Repo Net

No Portofolio Category Fair Value Liabilities Receivables RWA
1 Receivables to Government - - - -
2 Receivables to Public Sector Entities - - - -
3 Receivables to Multilateral Development Banks and

International Institution - - - -
4 Receivables to Bank 1,532,768 1,385,000 147,768 73,884
5 Receivables to Micro, Small Business and Retail Portfolio - - - -
6 Receivables to Corporation - - - -
Total 1,532,768 1,385,000 147,768 73,884

Short-Term Rating Unrated Total
A-1 A-2 A-3 lower than A-3
F1 - F1 F2 F3 lower than F3
p-1 p-2 p-3 lower than P-3
F1+(idn) - F1(idn) F2(idn) F3(idn) lower than F3(idn)
idA1 idA2 idA3 - id A4 lower than idA4
- - - - 5,044,335 45,427,435
- - - - 111,376 394,809
- - - - - -
- - - - 221,176 2,040,562
- - - - 147,505,176 147,505,176
- - - - 24,692,221 24,692,221
- - - - 1,288,994 1,288,994
- - - - 6,901,593 6,901,593
- - - - 19,001,209 19,001,209
- - - - 3,100,290 3,100,290
- - - - 8,559,759 8,559,759
Table: Repo Transactions per December 31st 2017 (Rp million)
SB Repo Repo Net

No Portofolio Category Fair Value Liabilities Receivables RWA
1 Receivables to Government 1,532,720 1,400,539 2,933,259 1,466,630
3 Receivables to Multilateral Development Banks and

International Institution - - - -
4 Receivables to Bank - - - -
Total 1,532,720 1,400,539 2,933,259 1,466,630
3. Reverse Repo Transaction The Company has allocated loan exposure by geographic
The Company did not have Reverse Repo transaction as area/region in which they operate, and allocate loan exposure
of December 31, 2017, and 2016. categorized by industry sector to find out the credit risk
concentration.
The Company performs debtor pre-screening, requires debtors
to meet the collateral requirements, analyzes and evaluates Descriptions on the Disclosure of Net Receivables Based on
loan worthiness, and makes legally binding loan agreements Risk Weighting after Considering the Impact of Credit Risk
in order to reduce credit risk exposure. Mitigation and Disclosure of Net Receivables and Credit Risk
Mitigation Techniques are described as follows:
Table: Net Receivables based on Risk Weighting after Considering the Impact of Credit Risk Mitigation per December 31st 2016 (Rp million)
Portofolio Capital
No Category 0% 20% 35% 40% 45% 50% 75% 100% 150% Others RWA Expenses
A. Balance Sheet Exposures
1 Receivables to
Government 37,657,046 - - - - - - - - - - -
2 Receivables to
Public Sector
Entities - 94,634 - - - - - - - - 18,927 1,703
3 Receivables
to Multilateral
Development
Banks and
International
Institution - - - - - - - - - - - -
4 Receivables to
Bank - 1,884,053 - - - 34,990 - - - - 394,306 35,488
Loans Secured
5 by Residential
Property - 44,009,059 77,351,075 - - - - - - - 35,874,688 3,228,722
6 Loans Secured
by Commercial
Real Estate - - - - - - - 20,724,387 - - 20,724,387 1,865,195
7 Employee/
Retired Loans - - - - - 955,250 - - - - 477,625 42,986
8 Receivables to
Micro, Small
Business and
Retail Portfolio 212,330 185,395 - - - - 5,795,119 - - - 4,383,419 394,508
9 Receivables to
Corporation 1,432,170 9,209 - - - - - 11,256,465 - - 11,258,307 1,013,248
10 Past Due
Receivables - 255,216 - - - - - 1,579,781 1,055,765 - 3,214,471 289,302
11 Other Assets 1,006,683 - - - - - - 6,780,527 77,591 - 6,896,913 620,722
Total Exposures
- Balance Sheet 40,308,229 46,437,566 77,351,075 - - 990,240 5,795,119 40,341,160 1,133,356 - 83,243,043 7,491,874
B. Off-Balance Sheet Exposures
1 Receivables to
Government - - - - - - - - - - - -
2 Receivables to
Public Sector
Entities - - - - - - - - - - - -
3 Receivables
to Multilateral
Development
Banks and
International
Institution - - - - - - - - - - - -
4 Receivables to
Bank - - - - - - - - - - - -
Loans Secured
5 by Residential
Property - - - - - - - - - - - -

Table: Net Receivables based on Risk Weighting after Considering the Impact of Credit Risk Mitigation per December 31st 2017 (Rp million)
Portofolio Capital
1 Receivables to
Government 45,295,254 - - - - - - - - - - -
2 Receivables to
Public Sector
Entities - 278,427 - - - 116,382 - - - - 113,876 10,454
3 Receivables
to Multilateral
Development
Banks and
International
Institution - - - - - - - - - - - -
4 Receivables to
Bank - 1,967,335 - - - 73,227 - - - - 430,080 39,481
Loans Secured
5 by Residential
Property - 63,786,597 83,718,579 - - - - - - - 42,058,822 3,861,000
6 Loans Secured
by Commercial
Real Estate - - - - - - - 24,631,423 - - 24,631,423 2,261,165
7 Employee/
Retired Loans - - - - - 1,288,994 - - - - 644,497 59,165
8 Receivables to
Micro, Small
Business and
Retail Portfolio 248,441 709,819 - - - - 5,936,253 - - - 4,594,154 421,743
9 Receivables to
Corporation 962,090 5,602 - - - - - 15,016,749 - - 15,017,869 1,378,640
10 Past Due
Receivables - 349,443 - - - - - 1,693,306 1,057,541 - 3,349,506 307,485
11 Other Assets 1,027,556 - - - - - - 7,454,613 77,590 - 7,570,998 695,018
Total Exposures
- Balance Sheet 47,533,341 67,097,223 83,718,579 - - 1,478,603 5,936,253 48,796,091 1,135,131 - 98,411,225 9,034,151
1 Receivables to
Government - - - - - - - - - - - -
2 Receivables to
Public Sector
Entities - - - - - - - - - - - -
3 Receivables
to Multilateral
Development
Banks and
International
Institution - - - - - - - - - - - -
4 Receivables to
Bank - - - - - - - - - - - -
Loans Secured
5 by Residential
Property - - - - - - - - - - - -
Portofolio Capital

6 Loans Secured
by Commercial
Real Estate - - - - - - - 116,624 - - 116,624 10,496
7 Employee/
Retired Loans - - - - - - - - - - - -
8 Receivables to
Micro, Small
Business and
Retail Portfolio - - - - - - 11,792 - - - 8,844 796
9 Receivables to
Corporation - - - - - - - 2,746,387 - - 2,746,387 247,175
10
Past Due
Receivables - - - - - - - - - - - -
Total TRA
Exposure - - - - - - 11,792 2,863,011 - - 2,871,855 258,467
C. Exposures due to Counterparty Credit Risk
1 Receivables to - - - - - - - - - - - -
Government
2 Receivables to
Public Sector
Entities - - - - - - - - - - - -
3 Receivables
to Multilateral
Development
Banks and
International
Institution - - - - - - - - - - - -
Receivables to - - - - - - - - -
4 Bank 147,768 73,884 6,650
Receivables to
Micro, Small
Business and
5 Retail Portfolio - - - - - - - - - - - -
Receivables to
6 Corporation - - - - - - - - - - - -
Total
Counterparty
Credit Risk - - - - - 147,768 - - - - 73,884 6,650
Table: Net Receivables and Credit Risk Mitigation Techniques per December 31st 2016 (Rp million)
Net Unsecured
No Portofolio Category Receivables Secured Portion Portion
Loan
Collateral Guarantee Insurance Others
1 Receivables to Government 37,657,046 - - - - 37,657,046
2 Receivables to Public Sector Entities 94,634 - - - - 94,634

Banks and International Institution - - - - - -
4 Receivables to Bank 1,919,043 - - - - 1,919,043
5 Loans Secured by Residential Property 121,360,134 - - 44,009,059 - 77,351,075
6 Loans Secured by Commercial Real Estate 20,724,387 - - - - 20,724,387
7 Employee/Retired Loans 955,250 - - - - 955,250

Portofolio Capital

6 Loans Secured
by Commercial
Real Estate - - - - - - - 60,799 - - 60,799 5,581
7 Employee/
Retired Loans - - - - - - - - - - - -
8 Receivables to
Micro, Small
Business and
Retail Portfolio - - - - - - 7,080 - - - 5,310 487
9 Receivables to
Corporation - - - - - - - 3,016,768 - - 3,016,768 276,939
10
Past Due
Receivables - - - - - - - - - - - -
Total TRA
Exposure - - - - - - 7,080 3,077,567 - - 3,082,877 283,007
1 Receivables to
Government 132,181 - - - - - - - - - - -
2 Receivables to
Public Sector
Entities - - - - - - - - - - - -
3 Receivables
to Multilateral
Development
Banks and
International
Institution - - - - - - - - - - - -
4 Receivables to
Bank - - - - - - - - - - - -
5 Receivables to
Micro, Small
Business and
Retail Portfolio - - - - - - - - - - - -
6 Receivables to
Corporation - - - - - - - - - - - -
Total
Counterparty
Credit Risk 132,181 - - - - - - - - - - -
Table: Net Receivables and Credit Risk Mitigation Techniques per December 31st 2016 (Rp million)
Net Unsecured
Loan
1 Receivables to Government 45,295,254 - - - - 45,295,254
2 Receivables to Public Sector Entities 394,809 - - - - 394,809

4 Receivables to Bank 2,040,562 - - - - 2,040,562
5 Loans Secured by Residential Property 147,505,176 - - 63,786,598 - 83,718,578
6 Loans Secured by Commercial Real Estate 24,631,422 - - - - 24,631,422
7 Employee/Retired Loans 1,288,994 - - - - 1,288,994
Net Unsecured
Loan

Retail Portfolio 6,192,844 212,330 - 185,395 - 5,795,119
9 Receivables to Corporation 12,697,844 1,432,170 - 9,209 - 11,256,465
10 Past Due Receivables 2,890,762 - - 255,216 - 2,635,546
11 Other Assets 7,864,801 - - - - 7,864,801
Total Eksposur Neraca 212,356,745 1,644,500 - 44,458,879 - 166,253,366
1 Receivables to Government - - - - - -
2 Receivables to Public Sector Entities - - - - - -

4 Receivables to Bank - - - - - -
5 Loans Secured by Residential Property - - - - - -
6 Loans Secured by Commercial Real Estate 116,624 - - - - 116,624
7 Employee/Retired Loans - - - - - -

Retail Portfolio 11,792 - - - - 11,792
9 Receivables to Corporation 2,746,387 - - - - 2,746,387
10 Past Due Receivables - - - - - -
Total TRA Exposure 2,874,803 - - - - 2,874,803

4 Receivables to Bank 147,768 - - - - 147,768

Retail Portfolio - - - - - -
6 Receivables to Corporation - - - - - -
Total Counterparty Credit Risk 147,768 - - - - 147,768
Asset Securitization The Bank’s functions in securitization transactions are

The Bank’s objective in conducting securitization is to as follows:
transform illiquid assets into liquid assets in the form of 1. Originator,
securities/marketable securities (referred to as Asset Backed 2. Servicer,
Securities (ABS)). 3. Investor.
The Bank conducts KPR Asset Securitization for the purpose In the securitization of receivables on KPR (“collective
of, among others, mitigating maturity mismatch, as alternative receivables”), the Bank has been selling the collective
sources of KPR financing, and increasing lending capacity. receivables to third parties (KPR securitization).

Net Unsecured
Loan

Retail Portfolio 6,894,513 248,441 - 709,819 - 5,936,253
9 Receivables to Corporation 15,984,441 962,090 - 5,602 - 15,016,749
10 Past Due Receivables 3,100,290 - - 349,443 - 2,750,847
11 Other Assets 8,559,759 - - - - 8,559,759
Total Eksposur Neraca 255,695,220 1,210,531 - 64,851,462 - 189,633,227

5 Loans Secured by Residential Property - - - - - -
6 Loans Secured by Commercial Real Estate 60,799 - - - - 60,799

Retail Portfolio 7,080 - - - - 7,080
9 Receivables to Corporation 3,016,768 - - - - 3,016,768
10 Past Due Receivables - - - - - -
Total TRA Exposure 3,084,647 - - - - 3,084,647
1 Receivables to Government 132,181 - - - - 132,181


Retail Portfolio - - - - - -
Total Counterparty Credit Risk 132,181 - - - - 132,181
The Bank recognizes the securitization of housing loans The accounting policy for securitization transactions conducted
(Asset-Backed Securities) as the sale on the KPR receivable by the Bank refers to the substance of the transactions
because the Bank has transferred the risks and benefit of the undertaken. In the event the securitization undertaken by the
ownership to the counterparty. Therefore, the effective date of Bank falls under the category of true sale, all the contractual
the Bank’s securitization derecognizes the mortgage collective rights to the cash flow from the asset are derecognized on the
receivables including in the securitization. date of transfer of assets. At the time of derecognition of the
whole assets, the difference between the carrying amount and

the amount of payments received and the cumulative gains
and losses are recognized in profit loss.
A description of the Company’s securitization activities as well

as Rating and the Rating Agencies performed by the Company
is provided in the table below:
Table: Asset Securitization, Rating, and Rating Agency
Year of Amount of Senior Junior Rating -

No Securitization Securities Series Securitization Class Class Senior Class Rating Agency
1 2017 SP BTN 03 1,000,000 913,000 87.000 idAAA PT Pemeringkat Efek Indonesia
2 2016 SP BTN 02 1,000,000 913,000 87.000 idAAA PT Pemeringkat Efek Indonesia
3 2015 SP BTN 01 200,000 181,600 18.400 idAAA PT Pemeringkat Efek Indonesia
4 2014 KIK DBTN 05 1,500,000 1,371,000 129.000 idAAA PT Pemeringkat Efek Indonesia
5 2013 KIK DBTN 04 1,000,000 928,000 72.000 idAAA PT Pemeringkat Efek Indonesia
6 2012 KIK DBTN 03 1,000,000 925,000 75.000 idAAA PT Pemeringkat Efek Indonesia
7 2011 KIK DBTN 02 703,450 645,000 58.450 idAAA PT Pemeringkat Efek Indonesia
8 2010 KIK DBTN 01 750,000 688,500 61.500 idAAA PT Pemeringkat Efek Indonesia
9 2009 KIK DSMF II 391,305 360,000 31.305 idAAA PT Pemeringkat Efek Indonesia
10 2009 KIK DSMF I 111,111 100,000 11.111 AAA PT Moody's Indonesia
A description of the Securitization Transaction and Activities –

the Company acts as the Originator is provided below:
Table: Securitization Transactions per December 31st 2016 (Rp million)
Value of Profit/
Securitized Impaired Value of Loss from Asset
No Securitization Exposure Assets Securitized Assets Securitization RWA Deduction
Past Due Not Yet Due
1 Bank acts as the Originator
Receivables secured by Residential Property 6,655,866 - - - - -
2 Bank acts as Supporting Credit Facility
1. First loss facility - - - - - -
2. Second loss facility - - - - - -
3 Banks act as the Liquidity Facility Provider - - - - - -
4 Banks act as the Service Provider 6,655,866 - - - - -
5 Banks act as the Custodian Bank - - - - - -
6 Banks act as the Investor - - - - - -
1. Senior tranche - Receivables secured by

Residential Property - - - - - -
2. Junior tranche - Receivables secured by

Residential Property - - - - - 399,474

Table: Securitization Transactions per December 31st 2017 (Rp million)
Value of Profit/
Securitized Impaired Value of Loss from Asset
No Securitization Exposure Assets Securitized Assets Securitization RWA Deduction
Past Due Not Yet Due
1 Bank acts as the Originator
Receivables secured by Residential Property 7,655,866 - - - - -
2 Bank acts as Supporting Credit Facility
1. First loss facility - - - - - -
2. Second loss facility - - - - - -
3 Banks act as the Liquidity Facility Provider - - - - - -
4 Banks act as the Service Provider 7,655,866 - - - - -
5 Banks act as the Custodian Bank - - - - - -
6 Banks act as the Investor - - - - - -
1. Senior tranche - Receivables secured by

Residential Property - - - - - -
2. Junior tranche - Receivables secured by

Residential Property - - - - - 467,227
Table – Summary of Securitization Activities – The Company acts as an Initiator (Rp million)
No Underlying Asset December 31st 2017 December 31st 2016
Value of Securitized Sales Profit Value of Securitized Sales Profit

Assets (Loss) Assets (Loss)
1 Receivables to Government - - - -
Receivables to Multilateral Development Banks and International

3 Institution - - - -
4 Receivables to Bank - - - -
5 Loans Secured by Residential Property 7,655,866 - 6,655,866 -
6 Loans Secured by Commercial Real Estate - - - -
7 Employee/Retired Loans - - - -
10 Other Assets - - - -
Total 7,655,866 - 6,655,866 -
A description of the calculation of RWA of Credit Risk by using

standard approach is as follows:
1. On-Balance Sheet Asset Exposure
Table: On-Balance Sheet Asset Exposure (Rp million)
No Kategori Portofolio December 31st 2017 December 31st 2016
Net RWA before RWA after Net RWA before RWA after
Receivables CRM CRM Receivables CRM CRM
1 Receivables to Government 45,295,254 - - 37,657,046 - -

Entities 394,809 113,876 113,876 94,634 18,927 18,927
International Institution - - - - - -
4 Receivables to Bank 2,040,562 430,081 430,080 1,919,043 394,306 394,306
5 Loans Secured by Residential

Property 147,505,176 51,626,812 42,058,822 121,360,134 42,476,047 35,874,688

Real Estate 24,631,422 24,631,423 24,631,423 20,724,387 20,724,387 20,724,387
7 Employee/Retired Loans 1,288,994 644,497 644,497 955,250 477,625 477,625

Business and Retail Portfolio 6,894,513 5,170,885 4,594,154 6,192,844 4,644,633 4,383,419
9 Receivables to Corporation 15,984,441 15,984,441 15,017,869 12,697,844 12,697,844 11,258,307
10 Receivables Past Due 3,100,290 3,630,372 3,349,506 2,890,762 3,428,490 3,214,471
11 Other Assets 8,559,759 7,570,998 7,570,998 7,864,801 6,896,913 6,896,913
Total 255,695,220 109,803,384 98,411,225 212,356,745 91,759,172 83,243,043
2. Off-Balance Sheet Asset Exposure
Table: Off-Balance Sheet Asset Exposure (Rp million)
No Portofolio Category December 31st 2017 December 31st 2016

Entities - - - - - -
International Institution - - - - - -

5 Property - - - - - -

Real Estate 60,799 60,799 60,799 116,624 116,624 116,624

Business and Retail Portfolio 7,080 5,310 5,310 11,792 8,844 8,844

9 Receivables to Corporation 3,016,768 3,016,768 3,016,768 2,746,387 2,746,387 2,746,387
10 Receivables Past Due - - - - - -
Total 3,084,647 3,082,876 3,082,877 2,874,803 2,871,855 2,871,855
3. Exposures Causing Counterparty Credit Risk
Tabel Eksposur yang Menimbulkan Risiko Kredit akibat Kegagalan Pihak Lawan (Counterparty Credit Risk) (Rp million)
1 Receivables to Government 132,181 - - - - -
Receivables to Public Sector

2 Entities - - - - - -
3 International Institution - - - - - -
4 Receivables to Bank - - - 147,768 73,884 73,884
Receivables to Micro, Small

5 Business and Retail Portfolio - - - - - -
Total 132,181 - - 147,768 73,884 73,884
4. Exposures causing Credit Risk due to Settlement Risk

The Company has not been exposed to credit risk due to
settlement risk as of 31 December 2017 and 2016.
Table: Exposures causing Credit Risk due to Settlement Risk (Rp million)
1 Delivery versus payment - - - - - -
1. Capital Expenses 8%
(5-15 hari) - - - - - -

(16-30 hari) - - - - - -

(31-45 hari) - - - - - -

(lebih dari 45 hari) - - - - - -
2 Non-Delivery versus payment - - - - - -
Total - - - - - -
5. Securitization Exposure
Table: Securitization Exposure (Rp million)
No Underlying Asset December 31st 2017 December 31st 2016
Faktor Pengurang Modal ATMR Faktor Pengurang Modal ATMR
1 Eligible Supporting Loan Facility - - - -
2 Ineligible Supporting Loan Facility - - - -
3 Eligible Supporting Liquidity Facility - - - -
4 Ineligible Supporting Liquidity Facility - - - -
5 Eligible Purchase of Assets Collaterized Securities 467,227 - 399,474 -
6 Ineligible Purchase of Assets Collaterized Securities - - - -
7 Exposure to Securitizations not Included in Bank Indonesia

Regulation on the Principle of Prudence in Securitization
Activities for Commercial Banks - - - -
Total 467,227 - 399,474 -
6. Total Credit Risk Measurement
Credit Risk Measurement Table

(Rp million)
No Description December 31st 2017 December 31st 2016
1 Total RWA for Credit Risk 101,494,102 86,188,782
2 Total Capital Deduction Factor 467,227 399,474
Market Risk All the foreign exchange transactions conducted by the

Market risk is the risk on statement of financial position and Company are spot transactions. At present, the Company has
administrative accounts, due to changes in overall market no derivative foreign currency transaction. The Company uses
conditions. standard methods to calculate CAR as stipulated in OJK Circular
Letter No. 38/SEOJK.03/2016 dated 8 September 2016 on the
In measuring market risk, the Company uses the Standardized Guidelines for Using a Standardized Method for Calculating
Method in calculating CAR for market risk. Exchange rate risk the Minimum Capital Adequacy Requirement for Commercial
arises from fluctuations in exchange rates maintained by Banks by Considering Market Risks.
keeping the net open position in accordance with Bank Indonesia
regulations. External shocks are also being considered by stress A description of the Market Risk using standard method is
testing, which is done to measure the extent to which the Bank as follows:
can survive some scenario changes in external conditions,
particularly changes in market interest rates.
Table: Market Risk using Standardized Method (Rp million)
No Risk Type December 31st 2017 31 December 2016
Capital Expenses RWA Capital Expenses RWA
1 Interest Rate Risk 32,618 407,726 6,372 79,654
1. Specific Risk - - - -
2. General Risk 32,618 407,726 6,372 79,654
2 Exchange Rate Risk 20,529 256,614 21,134 264,166

No Risk Type December 31st 2017 December 31st 2016
Capital Expenses RWA Capital Expenses RWA
3 Equity Risk - - - -
4 Commodity Risk - - - -
5 Option Risk - - - -
Total 53,147 664,340 27,506 343,820
Table: Interest Rate Risk in in Banking Book (IRRBB) Exposures (%)
No Description December 31st 2017 December 31st 2016
1 NII Sensitivity, NII 12 12 Bulan (25bps) 0.65 0.62
Operational Risk Approach, in accordance with Bank Indonesia Circular Letter

Operational risk is a risk arising from the inadequacy and/ No. 11/3/DPNP dated January 27, 2009 regarding the
or failure of internal processes, human error, system failure, calculation of Risk Weighted Assets (RWA) for Operational Risk
and/or the presence of external events that can affect the Calculated using Basic Indicator Approach (PID).
operations of the Bank.
The Company measures Operational Risk using the Basic
Operational risk arising should be anticipated. Provision of Indicator Approach in accordance with OJK Circular Letter
capital held by bank is calculated based on minimum Capital No.24/SEOJK.03/2016 dated 14 July 2016 on the Calculation
Adequacy Ratio (CAR) which is one of anticipatory measures of Risk-Weighted Assets for Operational Risk by using the
in order the operational risk exposure not interfere Bank’s Basic Indicator Approach.
capital structure.
A description of the Operational Risk is provided below:
In order to calculate the minimum Capital Adequacy Ratio
(CAR) for operational risk, the Bank applies the Basic Indicator
Table: Operational Risk (Rp million)
No Approach December 31st 2017 December 31st 2016
Gross Revenue Capital Gross Revenue Capital

(Average for the Last 3 Years) Expenses RWA (Average for the Last 3 Years) Expenses RWA
1 Basic Indicator Approach 7,964,706 1,194,706 14,933,824 6,879,600 1,031,940 12,899,251
Liquidity Risk liquidity risk can be contributed, among others, by:

Liquidity risk is the risk arising from the inability of the Bank to 1. inability to generate cash flows from productive assets
meet the maturing obligations from cash flow funding sources as well as from the sale of assets, including liquid assets;
and/or from high-quality liquid assets that can be pledged, and/or
without disturbing the activities and financial condition of the 2. inability to generate cash flows from funding, interbank
Bank. The inability to obtain funding for cash flows resulting to transactions and fund borrowings.
A description of Maturity Profile in Rupiah and Foreign

Currency is elaborated as follows:
Table: Rupiah Maturity Profile per December 31st 2016 (Rp million)
No Accounts Balance Past Due
> 1 Month - > 3 Months - > 6 Months -

≤ 1 Month 3 Months 6 Months 12 Months > 12 Months
I. Balance Sheet
A Assets
1. Cash 998,981 998,981 - - - -
2. Placements to Bank Indonesia 28,274,095 28,274,095 - - - -
3. Interbank Placements 360,367 360,367 - - - -
4. Securities 13,077,579 9,812,231 - - 28,201 3,237,147
5. Loans granted 164,446,381 2,880,401 1,445,806 3,099,012 5,322,567 151,698,595
6. Other receivables - - - - - -
7. Others 6,684,120 - - - - 6,684,120
Total Assets 213,841,523 42,326,075 1,445,806 3,099,012 5,350,768 161,619,862
B Liabilities
1. Third Party Funds 159,758,668 128,217,067 14,158,242 4,299,991 696,716 12,386,652
2. Liabilities to Bank Indonesia - - - - - -
3. Interbank Liabilities 5,637,230 3,599,117 - 985,329 1,052,784 -
4. Issues Securities 12,935,415 - - - - 12,935,415
5. Loans Received 7,998,734 - - 1,999,695 1,000,000 4,999,039
6. Other Liabilities 1,385,000 - - - - 1,385,000
7. Others 7,084,268 - - - - 7,084,268
Total Liabilities 194,799,315 131,816,184 14,158,242 7,285,015 2,749,500 38,790,374
Difference between Balance Sheet

Assets and Liabilities 19,042,208 (89,490,109) (12,712,436) (4,186,003) 2,601,268 122,829,488
II. Off-Balance Sheet
A Off-Balance Sheet Receivables
1. Commitment - - - - - -
2. Contingency 3,889,006 3,889,006 - - - -
Total Off-Balance Sheet Receivables 3,889,006 3,889,006 - - - -
B Off-Balance Sheet Liabilities
1. Commitment 16,448,549 16,448,549 - - - -
2. Contingency 2,435,320 2,435,320 - - - -
Total Off-Balance Sheet Liabilities 18,883,869 18,883,869 - - - -
Difference between Off-Balance

Sheet Assets and Liabilities (2,435,320) (2,435,320) - - - -
Difference [(IA-IB)+(IIA-IIB)] 4,047,345 (104,484,972) (12,712,436) (4,186,003) 2,601,268 122,829,488
Cummulative Difference 4,047,345 (104,484,972) (12,712,436) (4,186,003) 2,601,268 122,829,488

Table: Rupiah Maturity Profile per December 31st 2017 (Rp million)

I. Balance Sheet
A Assets
1. Cash 1,022,212 1,022,212 - - - -
2. Placements to Bank Indonesia 37,200,523 37,200,523 - - - -
4. Securities 14,619,701 11,399,094 559 35,594 870,195 2,314,259
5. Loans granted 198,990,581 4,099,939 1,523,607 3,815,228 5,710,801 183,841,006
6. Other receivables 8,351 8,351 - - - -
7. Others 7,632,120 7,632,120 - - - -
Total Assets 260,338,986 62,227,737 1,524,166 3,850,822 6,580,996 186,155,265
B Liabilities
1. Third Party Funds 192,583,585 154,058,217 20,110,272 3,118,493 14,315,661 980,942
3. Interbank Liabilities 7,993,870 5,445,431 513,492 370,855 1,607,040 57,052
4. Issues Securities 17,932,020 - - 899,157 - 17,032,863
5. Loans Received 10,990,372 - 1,299,911 3,998,083 1,693,127 3,999,251
6. Other Liabilities 1,393,081 5,277 863 1,941 450,000 935,000
7. Others 8,417,661 8,417,661 - - - -
Total Liabilities 239,310,589 167,926,586 21,924,538 8,388,529 18,065,828 23,005,108

Assets and Liabilities 21,028,397 (105,698,849) (20,400,372) (4,537,707) (11,484,832) 163,150,157
2. Contingency 8,419,466 8,419,466 - - - -
Total Off-Balance Sheet Receivables 8,419,466 8,419,466 - - - -
1. Commitment 18,753,171 18,753,171 - - - -
2. Contingency 2,930,233 2,930,233 - - - -
Total Off-Balance Sheet Liabilities 21,683,404 21,683,404 - - - -

Sheet Assets and Liabilities (13,263,938) (13,263,938) - - - -
Difference [(IA-IB)+(IIA-IIB)] 7,764,459 (118,962,787) (20,400,372) (4,537,707) (11,484,832) 163,150,157
Cummulative Difference 7,764,459 (118,962,787) (20,400,372) (4,537,707) (11,484,832) 163,150,157
Table: Foreign Currency Maturity Profile per December 31st 2016 (Rp million)

I. Balance Sheet
A Assets
1. Cash 7,701 7,701 - - - -
2. Placements to Bank Indonesia 4,365 4,365 - - - -
4. Securities 110,073 40,634 13,602 - - 55,837
5. Loans granted - - - - - -
7. Others - - - - - -
Total Assets 326,956 257,517 13,602 - - 55,837
B Liabilities
1. Third Party Funds 238,628 225,958 12,555 - 115 -
3. Interbank Liabilities - - - - - -
4. Issues Securities - - - - - -
5. Loans Received - - - - - -
6. Other Liabilities - - - - - -
7. Others - - - - - -
Total Liabilities 238,628 225,958 12,555 - 115 -

Assets and Liabilities 88,328 31,559 1,047 - (115) 55,837
2. Contingency 475,728 475,728 - - - -
Total Off-Balance Sheet Receivables 475,728 475,728 - - - -
2. Contingency 294,831 294,831 - - - -
Total Off-Balance Sheet Liabilities 294,831 294,831 - - - -

Sheet Assets and Liabilities 180,897 180,897 - - - -
Difference [(IA-IB)+(IIA-IIB)] 269,225 212,456 1,047 - (115) 55,837
Cummulative Difference 269,225 212,456 1,047 - (115) 55,837

Table: Foreign Currency Maturity Profile per December 31st 2017 (Rp million)

I. Balance Sheet
A Assets
1. Cash 5,342 5,342 - - - -
2. Placements to Bank Indonesia 45,248 45,248 - - - -
4. Securities 632,438 481,211 - - 27,674 123,553
5. Loans granted - - - - - -
7. Others - - - - - -
Total Assets 1,034,632 883,405 - - 27,674 123,553
B Liabilities
1. Third Party Funds 391,244 378,631 12,497 - 116 -
3. Interbank Liabilities - - - - - -
4. Issues Securities - - - - - -
5. Loans Received - - - - - -
6. Other Liabilities - - - - - -
7. Others - - - - - -
Total Liabilities 391,244 378,631 12,497 - 116 -

Assets and Liabilities 643,388 504,774 (12,497) - 27,558 123,553
2. Contingency 475,728 475,728 - - - -
Total Off-Balance Sheet Receivables 475,728 475,728 - - - -
2. Contingency 70,955 70,955 - - - -
Total Off-Balance Sheet Liabilities 70,955 70,955 - - - -

Sheet Assets and Liabilities 8,780 8,780 - - - -
Difference [(IA-IB)+(IIA-IIB)] 652,168 513,554 (12,497) - 27,558 123,553
Cummulative Difference 652,168 513,554 (12,497) - 27,558 123,553
A description of the Liquidity Coverage Ratio (LCR) is elaborated

as follows:
Tabel Liquidity Coverage Ratio (LCR)
Description 2017 2016
Quarter I Quarter II Quarter III Quarter IV Quarter I Quarter II Quarter III Quarter IV
Bank (Individual) 156.20% 154.52% 150.79% 144.95% 66.40% 124.12% 169.11 162.25%
Legal Risk external provision inherent in internal regulations. In addition,

Legal risks are jointly measured by the Risk Management CMPD analyzes the events that led to the emergence of risk,
Division (RMD) and the Legal Division (LGD) based on the which are reported to and reviewed by RMD and RMC.
analysis and evaluation report on individual legal cases against
the contingency liability arising from the lawsuits. Legal Risks In order to minimize the Compliance Risk, Legal Division
are monitored by the Risk Management Division by evaluating (LGD) has provided a special access called Internal Access
the effectiveness of policies, procedures, and compliance with Management Standards (AIMS) for easy access to the
policies, regulations and bank limits. Monitoring is routinely internal regulations of the Bank for the entire business units.
carried out for Legal Risk positions. The LGD provides legal input In addition, CMPD monitors the events that contributed to
and recommendation for all divisions and units and conducts a compliance risk and reports these matters to RMD.
periodical review on the agreements and partnership contracts
with counterparties to control Legal Risks. Reputational Risk
Reputational risk is identified on inherent risk factors
Strategic Risk associated to functional activities including disclosure
Strategic risk is the risk arising from the inaccuracies in the requirements, customer complaints against the Company,
decision making and/or the execution of a strategic decision employee attitude when providing services to customers and
and failure to anticipate changes in the business environment. the Company’s communication systems.
Strategic Risk identification is based on the strategic risk
factors on specific functional activities, such as lending, Reputation risk measurement is based on the results of
treasury and investment activities, as well as operations and assessment on the reputation risk factors. Company reputation
services through a business plan prepared by the Strategy and risk is managed by CSD and being reported to Bank Indonesia
Performance Management Division (SPMD) as elaborated in by Customer Care Division (CCD).
the General Policy of the BOD.
In order to monitor reputational risk, the Bank developed an
Strategic risk and parameter measurement are based on the application called Customer Complaint System (CCS) to support
Company’s performance by comparing actual results with customer service and complaint handling that allows online
targets that have been set. Strategic risk monitoring is carried complaints handling process between the parties related to
out by SPMD periodically to monitor the achievement of Key the issues at branch offices and head office. This will be useful
Performance Indicator and risk exposure compared to the to ensure sustained customer satisfaction.
Bank’s risk appetite.
CSD is responsible for implementing policies related to
Compliance Risk managing and settling negative issues or avoiding counter-
Compliance risk is the risk arising from the Company’s inability productive information and performs the Public Service
to comply and/or carry out laws and regulations. In identifying Obligation (PSO) function in connection with carrying out
compliance risks, Compliance Division (CMPD) conducts a corporate social responsibility.
review regarding compliance risk associated with exposure to

Contribution to the State
The direct contribution is in the form of state revenues, derived from tax
income and dividend payment. Whereas indirect contribution is in the form of
multiplier effect for national economic development.
Tax Payment
The Tax Payment Tax obedient become the Company’s commitment, especially in fulfilling its obligations as
increased taxpayer, i.e. paying tax and cutting/collecting tax. The amount of tax payment in 2017 is
26.64%
Rp2,467,501,260,763, while for in 2016, it amounted to Rp1,948,503,394,645. As a tax
deductor/collector, the Company actively plays a role in deducting/collecting, depositing, and
reporting taxes on every object.
or equivalent to
Rp2,467,501,260,763 Total of Tax Payment 2016-2017 (Rp)
No. Tax 2016 2017
1 Corporate Income Tax 743,020,000,000 1,090,161,279,184
2 Individual Income Tax 199,643,150,360 243,703,714,860
3 VAT 7,931,211,906 16,125,182,882
4 PPnBM - -
5 L&B Tax 8,609,488,033 7,673,144,300
6 Other Taxes:
1. Income Tax Article 22 3,303,367,804 3,208,876,542
4. Income Tax Article 4 paragraph 2 886,369,817,725 1,051,876,285,028
5. Others 38,711,878,805 -
Total Tax Paid 1,948,503,394,645 2,467,501,260,763
Dividend Policy
The dividend Based on Law No. 40 of 2007 on Limited Liability Company, the dividend distribution shall
distributed is
be conducted based on the Annual General Meeting of Shareholders (AGMS) or Extraordinary
20% General Meeting of Shareholders (EGMS) decisions. The dividend amount and payment must
be performed with regards and consideration to these following factors, among others, the
level of financial health, the level of capital adequacy, the required capital for further business
or expansion, without disrupting the rights of the Company’s GMS in determining based on the
Rp523.87 billion
Articles of Association.
The amount of Company dividend will be determined during the GMS. The management plans
to distribute the dividend if there is surplus cash from the operational activities after the fund is
set aside from the reserve fund, funding activities, capital expenditure plan and the Company’s
working capital.
Dividend Distribution
Dividend distribution is conducted based on GMS Decision as described:
Dividend Distribution Fiscal Year 2016
Dividend distribution for the fiscal year 2016 is conducted based on the Annual GMS resolution
dated March 17, 2017, with the provision as follows:
1. The Company’s Net Profit for the fiscal year 2016 amounted to Rp2.62 trillion,
2. Shareholders agreed to a dividend payment of 20% of the Company’s net profit, i.e.
Rp523.78 billion. The allocation for retained earnings is 80% of the net profit, i.e.
Rp2.1 trillion, set forth as retained earnings. The cash dividend per share amounted to
Rp49.46 per share, it will be distributed to the Company’s shareholders with payout ratio
amounted to 20%,
3. Dividend distribution for the fiscal year 2016 is paid on April 13, 2017, to the
Shareholders whose names are registered in the Company’s Shareholders’ Register on
March 30, 2017.
Dividend Distribution Fiscal Year 2015

Dividend distribution for the fiscal year 2015 is conducted based on the Annual GMS decision
dated April 12, 2016, with the provision as follows:
1. The Company’s Net Profit for the fiscal year 2015 amounted to IDR 1.85 trillion,
2. Shareholders agreed to dividend payment of 20% from the Company’s net profit, which
is IDR 370.18 billion, and allocation for retained earnings amounted to 80% from the
net profit, which is IDR 1.48 trillion, set forth as retained earnings. The cash dividend
per share amounted to Rp34.96 per share. It will be distributed to the Company’s
shareholders with payout ratio amounted to 20%,
3. Dividend distribution for the fiscal year 2015 was paid on May 12, 2016, to the
Shareholders whose names are registered in the Company’s Shareholders’ Register
dated April 22, 2016.
Table: Dividend Distribution

Fiscal Year 2014-2016
No. Description Fiscal Year 2014 Fiscal Year 2015 Fiscal Year 2016
1 Net Profit (IDR billion) 1,116 1,851 2,619
2 Cash Dividend (IDR billion) 223 370 524
3 Dividend Per Share (Rp) 21.11 34.96 49.46
4 Dividend Pay Out Ratio (%) 20 20 20
5 Announcement Date Thursday, March Wednesday, April Monday, March 20,

26, 2015 13, 2016 2017
6 Payment Date 24 April 2015 Thursday, May 12, Thursday, April 13,
2016 2017

Commitments for Capital

Expenditure
Investment in the form of Capital Expenditure is an expenditure activity to purchase fixed Assets
or to increase the value of expected fixed assets so it will be beneficial in the future.
Table: Commitments for In 2017, the Company has committed to investing in capital expenditure with various parties,
Capital Expenditure as described below:
No. Binding Party Objectives Fund Source Amount (Rp million)
1 Suppliers of building investment Payment on building investment Company's Internal 178,948
2 Suppliers of office machinery investment Payment on office machinery investment Company's Internal 35,899
3 Suppliers of office furniture investment Payment on office furniture investment Company's Internal 60,709
4 Supplier of home office furniture investment Payment on home office furniture Company's Internal
investment 627
5 Suppliers of building investment about Payment on building investment about to Company's Internal
to finish finish 53,982
Total 330.165
The risk protection measure in 2017 for the investment activities is by insurance protection.
Capital Goods Investment
Acquisition of Fixed Assets

The Company made capital investments in the form of fixed assets such as land, buildings,
The total Acquisition of vehicles, office equipment, and construction in progress in the form of buildings. The investment
Fixed Assets in 2017 is in capital goods aims to support the Company’s operations. In 2017, the total additional
investment in capital goods amounted to Rp269,345 million. Thus, the fixed assets amount to
Rp268,345 Rp4,837,319 million.
million
Table: Additional Investment in Capital Goods in the form of Fixed Assets
Year 2015-2017 (Rp million)
Type of Fixed Assets 2015 2016 2017
Land 286 3,042,845 92
Building 60,698 125,856 182,289
Office Equipment and Vehicles 151,407 180,832 205,720
Construction in progress assets 54,797 88,464 15,464
Total Added Investment 267,188 3,437,997 403,565
Graph: Fixed Assets 2015- 5,000,000

4,659,379 4,837,319
2017 (Rp million)
4,000,000
3,000,000
2,000,000
1,552,401
1,000,000

Management and/or Employee

Stock Ownership Program
Management Stock Option Program (MSOP) and/or Employee 3. Phase III The number of issued option rights amounted
Stock Option Program (ESOP) are the granted of rights to to a maximum of 30% of the total shares in the MESOP
purchase shares for program participants. The participants are program, and distributed to participants of the MESOP
able to purchase new shares to be issued from the Company’s program in 2012..
portfolio, as much as 4% of the issued and paid-up capital of
the Company after the Initial Public Offering. Option Rights granted to MESOP program participants in each
stage may be used to purchase shares in the MESOP program
Management and Employee Stock Option Program (MESOP) is with option life for 5 years since the date of its issuance.
carried out by issuing purchase rights in the following 3 stages: Participants may exercise their right to purchase shares in
1. Phase I The number of issued option rights amounted the MESOP program during the period of implementation by
to a maximum of 40% of the total shares in the MESOP paying the full price of the exercise, after passing the Vesting
program, and distributed to participants of the MESOP Period, i.e. 1 year since the date of issuance of Option Rights. In
program in 2010. the Vesting Period, Participants may not exercise their Option
2. Phase II The number of issued option rights amounted Rights to buy the shares in MESOP program.
to a maximum of 30% of the total shares in the MESOP
program, and distributed to participants of the MESOP MESOP implementation in every phase is as follow:
program in 2011.
Table: MESOP Program
Year Ended of
No. MESOP Period of Validity Option Rights Option Option Price (Rp/share)
1 MESOP 1 February 2011 - August 2014 2014 145,234,500 855.00
2 MESOP 2 February 2012 - August 2015 2015 108,925,500 1,297.44
3 MESOP 3 February 2013 - August 2016 2016 108,925,500 1,098.36
Total 363,085,500
The realization of MESOP Program is as follows:
Table: MESOP Realization Phase 1
No. Remark/Name Total Shares Outstanding (Shares) Option
Granted (Shares) Executed (Shares)
Commissioner
1 Arie Coerniadi - - -
2 Kamaruddin Sjam - - -
3 Lucky Fathul Aziz Hadibrata - - -
4 Catherinawati Hadiman - - -
5 Fajar Harry Sampurno - - -
6 Sumiyati - - -
Board of Directors
1 Maryono - - -
2 Irman Alvian Zahiruddin 3,991,000 1,354,000 1,354,000
3 Mansyur Syamsuri Nasution - - -
4 Iman Nugroho Soeko - - -
5 Sis Apik Wijayanto - - -
6 Adi Setianto - - -
7 Sulis Usdoko - 138,500 138,500
8 Oni Febriarto R. - 65,000 65,000
Executive Officers 7,430,600 6,925,500 6,925,500
Employee - 36,751,500 136,751,500
Commissioner
6 Sumiyati - - -
Board of Directors
1 Maryono - - -
2 Irman Alvian Zahiruddin 3,991,000 855,500 855,500
7 Sulis Usdoko - 109,000 109,000
8 Oni Febriarto R. - 51,000 51,000
Employee - 102,442,500 102,442,500

Commissioner
6 Sumiyati - - -
Board of Directors
1 Maryono - - -
2 Irman Alvian Zahiruddin 3,991,000 828,500 828,500
7 Sulis Usdoko - 108,500 108,500
8 Oni Febriarto R. - 54,500 54,500
Employee - 102,367,500 102,367,500
MESOP Program implementation is carried out in accordance

with the terms and conditions stipulated by the Company’s
Board of Directors with due regard to the prevailing Legislation.
Commitment and Contingency
The commitment and contingency balance for the last three

years are as follows:
Table: Commitment and Contingency
No. Table: Commitment and Contingency 2015 2016 2017
Commitment
1 Commitment Liability
Unused loan facilities for customers 13,209,613 16,446,763 18,740,054
Total Commitment 13,209,613 16,446,763 18,740,054
Contingency
1 Contingency Charges
Interest Revenue in progress 1,908,418 1,954,131 2,372,209
2 Contingency Liability
Guarantee issued (1,460,068) (2,730,151) (3,001,188)
Total Contingency 448,350 (776,020) (628,979)

Use of Funds from Public Offerings
The Company has obtained a license to conduct a Public 9.62% new shares issued on September 30, 2009, to the
Offering pursuant to the approval of the House of employees. This program has been effective since September
Representatives of the Republic of Indonesia, as stipulated in 17, 2009, and all employee is eligible to partake in the program,
the Letter of the Chairman of the House of Representatives with a total of 226,928,500 common shares Series B (nominal
of the Republic of Indonesia No. PW.01/3104/DPRRI/V/2009 value of Rp500 per share) at selling price of Rp640 per share
dated May 29, 2009, and the Government’s stipulation as (after 20% discount from the initial public offering amounted
set forth in the Government Regulation of the Republic of to Rp800 per share) and a six months lock-up period.
Indonesia No. 66 of 2009, and enacted in the State Gazette
No. 167 dated November 16, 2009, on the Changes in State The discount share for MESA Program is borne by the Company
Ownership Structure through Issuance and Sale of New Shares in 2009, amounted to 20% or Rp41,353, including income tax.
of PT Bank Tabungan Negara (Persero).
The use of Initial Public Offering (IPO) in 2009 is realized in
Based on the Capital Market and Financial Institution 2009 and 2010, in line with the plan fund.
Supervisory Board (BAPEPAM-LK) Letter No. S-10523/
BL/2009 dated December 8, 2009, the Bank proposed an In addition to public offering in the form of shares, on June
IPO amounted to 6,353,999,999 common shares of Series 30, 2015, the Company listed Continuous Bonds II Phase I
B owned to the Republic of Indonesia; and 2,360,057,000 and II 2015 in Indonesia Stock Exchange. Report of the use of
new common shares Series B, with nominal value of Rp500 proceeds from the Company’s Continuous Bonds II Phase I 2016
(full amount) per share to the public, which was effective on has been submitted to the Financial Services Authority (OJK)
December 8, 2009. The shares offered would be listed and and Indonesia Stock Exchange (BEI) on January 10, 2017, and
traded on Indonesia Stock Exchange on December 17, 2009, has been reported on the Company’s Annual General Meeting
with selling price of IDR 800 (full amount) per share. of Shareholders GMS) dated March 17, 2017. Report of the use
of proceeds from the Company’s Continuous Bonds III Phase I
Related to the Initial Public Offering, the Company has 2017 has been submitted to OJK and BEI on January 5, 2018,
implemented Management and Employee Stock Allocation and shall be reported on the Company’s 2018 Annual GMS.
(MESA) program. MESA Program offered the maximum of
Utilization of Funds from Public Offerings
Fund Utilization Plan Fund Utilization Realization Remain Fund

Type of Public Effective Value of Public Offering Realization In accordance with In accordance with Result Offering
Offering Date (Rp million) Prospectus (Rp million) Prospectus (Rp million) General (Rp million)
Cost
Total Result Offering Net Credit Credit
Offering General General Profit Realization Total Realization Total
Public Offering of June 30 3,000,000 2,958.50 2,997,041.50 2,997,041.50 2,997,041.50 2,997,041.50 2,997,041.50 -
Continuous Bonds II 2015*
Phase II 2016
*) Statement of Registration of the Company’s Continuous Bonds II in 2016 is effective on June 30, 2015. Listing in Indonesia
Stock Exchange and Receipt of Public Offering Proceeds are effective on August 30, 2016.
Impact of Changes in Interest Rate

to Company Performance
Since August 19, 2016, Bank Indonesia uses BI 7-Day Reverse the BI 7-day RR Rate fixed at 4.75%. However, as an effort
Repo Rate (BI 7-day RR Rate) as the interest rate benchmark to support economic recovery, Bank Indonesia lowered the BI
to replace BI Rate. This is an effort to maintain macroeconomic 7-day RR Rate to 4.50% in August and then lowered it again to
stability by maintaining the momentum of economic domestic 4.25% in September through the end of the year. This decline
growth in the midst of weakening global economic growth. In is expected to strengthen the banking intermediation, thus
early 2017 to July 2017, Bank Indonesia decided to maintain strengthening macroeconomic and financial system stability.
Material Information After the

Accounting Reporting Period
There were no material facts and information after the 2017 accounting
reporting period, which has ended on 31 December 2017. Thus, there is no
information to be disclosed neither is there any impact on performance and
business risk in the future.

Material Information on
Investment, Expansion, Divestment,
Acquisitions, or Restructuration
of Debt and Capital
Investment Acquisition
In 2017, the Company did not invest in any institutions/ In 2017, the Company did not carry out any acquisition hence
companies hence there is no information on to the objective, there is no information on to the objective, transaction value
transaction value and the source of funds for investment. and the source of funds for the acquisition.
Expansion Restructuration of Debt and Capital

In 2017, the Company did not expand hence there is no In 2017, the Company did not restructure any debt or capital
information on to the objective, transaction value and the hence there is no information on to the objective, transaction
source of funds for expansion. value and the source of funds for restructuration.
Divestment
In 2017, the Company did not carry out any divestment hence
there is no information on to the objective, transaction value
and the source of funds for divestment.
Financial Information Containing

Extraordinary and Rare Events
Based on the Company’s Consolidated Financial Statements in 2017 which
has been audited and reported, there was no financial information containing
extraordinary and rare events in 2017.
Information on Material
Transactions with Conflict of
Interest and/or Transaction with
Affiliated or Related Parties
All transactions with related parties have been disclosed in the Annual Report
and Financial Report (note) as stated in the SFAS No. 7 (revised 2010)”Related
Party Disclosures” and Capital Market and Financial Institutions Supervisory
Agency No. IX.E.1 on “Affiliated Transactions and Conflicts of Interest on
Certain Transactions.” All transactions with related parties carried out in 2016
have been approved by both parties and are deemed fair.
Material Transactions with Conflict of Interest 4. a party is a key management personnel of the Bank;
There were no transactions with conflict of interest in 2017, 5. a party is a close family member of the person as
hence no information is disclosed. provided in point (1) or (4);
6. a party is an entity that is controlled, jointly controlled or
Transactions with Affiliated or Related Parties is significantly influenced by several entities, directly or
All transactions with related parties carried out in 2016 have indirectly, individual as stated in point (4) or (5);
been approved by both parties and are deemed fair based on 7. a party is a post-employment benefit program for the
SFAS No. 7 (revised 2010)”Related Party Disclosures”. benefit of employees of either the Bank or an entity
Related Parties related to the Bank.
A party is considered to have relations with the Company if:
1. a party, directly or indirectly, through one or more Nature of Relations
intermediaries, (i) controls, or is controlled by, or under In the normal course of business, the Company enters into
joint control with the Bank; (ii) has significant influence transactions with related parties. Transactions with related
over the Bank; or (iii) has joint control over the Bank; parties are carried out with the same terms and conditions as
2. a party is a member of the same business group as those applied for parties who are not related, except for loans
the Bank; granted to key employees.
3. a party is a joint venture in which the Bank has
ventured in;
Table: Related Parties
No. Related Parties Type of Relationship Nature of Related Party Transaction
1 Government of the Republic of Indonesia Ownership as the main shareholder Government Bonds
2 PT Bank Mandiri (Persero) Tbk Owned by the central government Current accounts with other banks, Placement
in Bank Indonesia and other banks, Securities,
and Deposits from other Banks, Bonds and Bank
Guarantee issued
3 PT Bank Rakyat Indonesia (Persero) Tbk Owned by the central government Current accounts with other banks, Securities,
and Bonds Issued

4 PT Bank Negara Indonesia (Persero) Tbk Owned by the central government Current accounts with other banks, Securities,
Derivative Receivable, and Bonds Issued and
Borrowings
5 PT Bank Syariah Mandiri Owned by the central government Current accounts with other banks, and
Guarantee issued
6 Lembaga Pembiayaan Ekspor Indonesia Owned by the central government Securities
7 PT Pupuk Indonesia (Persero) Owned by the central government Securities and Guarantee issued
8 PT Perusahaan Listrik Negara (Persero) Owned by the central government Securities and Guarantee issued
9 PT Sarana Multigriya Finance (Persero) Owned by the central government Loans received and Subordinated Loans
10 PT PP Pracetak (Persero) Owned by the central government Loans granted and sharia financing/receivables
11 PT Yodya Karya (Persero) Owned by the central government Loans granted and sharia financing/receivables
12 PT HK Realtindo Owned by the central government Loans granted and sharia financing/receivables
13 PT Adhi Karya (Persero) Tbk Owned by the central government Loans granted and sharia financing/receivables
and Guarantee issued
14 PT Bank Mandiri Taspen Pos Owned by the central government Placement in Bank Indonesia and Other Banks,
Securities, and Savings from Other Banks
15 Perum Jasa Tirta I Owned by the central government Guarantee issued
16 PT Jasa Layanan Pemeliharaan Owned by the central government Guarantee issued
17 PT Asuransi Asei Indonesia Owned by the central government Guarantee issued
18 PT Indonesia Power Owned by the central government Securities
19 PT Perkebunan Nusantara III (Persero) Owned by the central government Guarantee issued
20 PT Pelabuhan Indonesia (Persero) Owned by the central government Guarantee issued
21 PT Taspen (Persero) Owned by the central government Bonds Issued
22 PT Asuransi Jasa Indonesia (Persero) Owned by the central government Loans granted and sharia financing/receivables
23 PT Inhutani IV (Persero) Owned by the central government Loans granted and sharia financing/receivables
24 PT Adhi Persada Properti Owned by the central government Loans granted and sharia financing/receivables
25 PT Amarta Karya Owned by the central government Loans granted and sharia financing/receivables
26 PT Hutama Karya Owned by the central government Loans granted and sharia financing/receivables
27 PT PPA Finance Owned by the central government Bonds Issued and Guarantee Issued
28 PT BNI Life Insurance Owned by the central government Loans granted and sharia financing/receivables
29 PT Jasamarga Bali Tol Owned by the central government Bonds Issued
30 PT Asuransi Jiwasraya (Persero) PT Wijaya Karya Owned by the central government Loans granted and sharia financing/receivables
Bangunan Gedung
31 PT Asuransi Jasa Raharja (Persero) Owned by the central government Bonds Issued
32 PT Tugu Pratama Indonesia Owned by the central government Bonds Issued
33 PT Barata Indonesia (Persero) Owned by the central government Loans granted and sharia financing/receivables
34 PT Sucofindo (Persero) Owned by the central government Bonds Issued
35 PT Asuransi Jiwa Bringin dan Sejahtera Owned by the central government Bonds Issued
36 PT Angkasa Pura (Persero) Owned by the central government Guarantee issued
37 PT Telekomunikasi Indonesia (Persero) Tbk Owned by the central government Guarantee issued
38 PT Timah (Persero) Tbk Owned by the central government Bonds Issued
39 PT Pertamina (Persero) Owned by the central government Bonds Issued and Guarantee Issued
40 Saka Indonesia Pangkah Limited Owned by the central government Guarantee issued
41 PT Nindya Karya (Persero) Owned by the central government Securities and Guarantee issued
42 PT Pindad (Persero) Owned by the central government Guarantee issued
43 PT Patra Trading Owned by the central government Guarantee issued
44 PT Antam (Persero) Tbk Owned by the central government Guarantee issued
45 PT Brantas Abipraya (Persero) Owned by the central government Guarantee issued
46 Perum Perumnas Owned by the central government Guarantee issued
47 PT Peruri Properti Owned by the central government Guarantee issued
48 PT Jasa Marga (Persero) Tbk Owned by the central government Guarantee issued
49 PT Indonesia Asahan Alumunium (Persero) Owned by the central government Loans granted and sharia financing/receivables
50 PT Pertamina Hulu Energi Owned by the central government Loans granted and sharia financing/receivables
51 PT Perkebunan Nusantara V (Persero) Owned by the central government Guarantee issued
52 PT Kereta Api Indonesia (Persero) Owned by the central government Guarantee issued
53 PT Indah Karya (Persero) Owned by the central government Guarantee issued
54 PT Perusahaan Pengelola Aset (Persero) Owned by the central government Guarantee issued
55 PT PNM Ventura Syariah Owned by the central government Securities and Guarantee issued
56 PT Propernas Griya Utama Owned by the central government Loans granted and sharia financing/receivables
57 PT Wijaya Karya Realty Owned by the central government Loans granted and sharia financing/receivables
58 Pemerintah Republik Indonesia (RI) Majority of shares held through the Ministry of Government Bonds and Guarantee issued
Finance of the Republic of Indonesia
59 Key Management Relations in controlling company operations Loans Granted and Sharia Financing/
Receivables, Customer Savings, and Syirkah
Temporary Fund
60 Perum Percetakan Negara RI (Perum PNRI) Owned by the central government Loans granted and sharia financing/receivables
61 PT Pembangunan Perumahan (Persero) Tbk Owned by the central government Loans granted and sharia financing/receivables
62 PT Waskita Karya Realty Owned by the central government Loans granted and sharia financing/receivables
63 PT Permodalan Nasional Madani Owned by the central government Loans granted and sharia financing/receivables
64 PT Pertamina Bina Medika Owned by the central government Bonds Issued
65 PT Asuransi Kredit Indonesia (Persero) Owned by the central government Bonds Issued
66 PT Pertamina EP Owned by the central government Guarantee issued
67 PT Pertamina Geothermal Energy Owned by the central government Guarantee issued
68 PT LEN Railway Systems Owned by the central government Guarantee issued

Purpose of Related Party Transaction Transaction Value of Related Parties

In general, the main purpose of transactions with related parties The transaction value with related parties is provided in the
is for the Company’s interest and business sustainability. table below:
Table: Transaction Value of Related Parties Year 2016-2017 (Rp million)

1. Transaction with related parties due to ownership by the Government of Indonesia
No. Description 2016 2017
Assets
1 Current accounts with other banks 16,958 262,619
2 Placement in Bank Indonesia and other banks 268 6,317
3 Securities 998,812 1,188,742
4 Government bonds 9,243,639 8,183,973
5 Loans granted and sharia financing/receivables 2,037,903 4,393,372
6 Acceptances Receivable - 8,081
7 Total assets for related parties 12,297,580 14,043,104
8 Allowance for impairment losses from related parties (877) (1,764)
9 Total assets of related parties – net 12,296,703 14,041,340
10 Percentage of total assets of related parties to the total assets 5.74% 5.37%
Liabilities
1 Deposits from customers 79,463,377 94,738,386
2 Deposits from other banks 500,000 -
3 Acceptances Liabilities - 8,081
4 Bonds Issued 5,036,749 5,370,625
5 Borrowings 1,999,921 4,993,145
6 Subordinated loans 2,999,118 2,999,319
7 Total liabilities for related parties 89,130,005 108,109,556
8 Percentage of total liabilities of related parties to the total liabilities 49.23 % 48.28%
Temporary Syirkah Fund
1 Mudharabah Current Accounts 29,073 154,636
2 Mudharabah Savings - 200,000
3 Mudharabah Deposit 4,138,516 4,954,653
4 Total Temporer Syirkah Fund for related parties 4,167,589 5,309,289
5 Percentage of the Total Temporary Syirkah Fund for related parties to the Temporary
Syirkah Fund 34.14% 33.68%
Interest revenue and profit sharing
1 Placement in Bank Indonesia and other banks 22,332 4,713
2 Securities 42,454 77,953
3 Government bonds 568,417 493,675
4 Loans granted and sharia financing/receivables 69,460 200,215
5 Total interest revenue and profit sharing for related parties 702,663 776,556
6 Percentage of total interest revenue and profit sharing 4.09% 4.03%
Interest and bonus expenses
1 Deposits from customers 3,294,909 3,705,858
2 Bonds Issued 273,235 573,600
3 Borrowings 357,222 295,622
4 Subordinated loans 150,750 270,200
5 Mudharabah Current Accounts 139 873
6 Mudharabah Savings 331
7 Mudharabah Deposit 97,728 106,935
8 Total Interest and bonus expenses from related parties 4,173,983 4,953,419
9 Percentage of total interest revenue and bonus 46% 49.88%
Commitments and Contingencies on Off-Balance Sheet
1 Guarantee issued 565,849 378,722
2 Percentage to commitments and contingencies on off-balance sheet 16.17% 11.11%
2. Transactions with key management
Assets
1 Borrowings and sharia financing/receivables 83,535 98,061
2 Percentage to total assets 0.04% 0.04%
Liabilities
1 Deposits from customers 56,401 76,493
2 Compensation for Key Management 115,320 368,028
3 Total Liabilities of the Key Management 171,721 444,521
4 Percentage to total liabilities 0.09% 0.20%
Temporary Syirkah Fund
1 Mudharabah Savings 1,191 1,157
2 Mudharabah Deposit 2,810 3,606
3 Total Temporary Syirkah Fund for related parties 4,001 4,763
4 Percentage of the Total Temporary Syirkah Fund for related parties to the Temporary
Syirkah Fund 0.03% 0.03%
Interest revenue and profit sharing
1 Loans granted and sharia financing/receivables 3,757 5,589
2 Percentage of total interest revenue and profit sharing 0.02% 0.03%
Interest, profit sharing, and bonus expenses
1 Deposits from customers 1,980 3,169
2 Percentage of total interest revenue and bonus 0.02% 0.03%

Salaries and Allowance Expenses
1 Board of Directors 52,767 61,714
2 Board of Commissioners 20,785 27,744
3 Key Employees 86,922 278,570
4 Total 160,474 368,028
5 Percentage of total employee salaries and allowance expenses 7.56% 14.41%
Fairness of Related Party Transaction

The fairness of all transactions carried out with related
parties, under the conditions and requirements with third
parties or not, disclosed in the financial statements, in
accordance with the SFAS 7 standard (revised 2010) on
Related Party Disclosures.
Review Mechanism and Regulatory Compliance for

Transactions with Related Parties
The review mechanism for transactions with related parties
is done through an audit conducted by the internal auditor
and the external auditor. The affiliate transactions reports
have been audited by the Auditor as an effort to ensure
the level of fairness of transactions and compliance with
accounting standards generally applicable in Indonesia. One
of the purposes of the disclosure of related party transactions
is to comply with SFAS 7 (revised 2010) on Related Party
Disclosures and Capital Market and Financial Institutions
Supervisory Agency No. IX.E.1 regarding Affiliated Transactions
and Conflicts of Interest on Certain Transactions.
Legislation Amendments with

Significant Impact
The Company constantly conducts studies on new regulations

and amendments issued by regulators. The review aims to
analyze the likely impacts of the amendments to these
provisions and to identify the Company’s compliance with
these regulations. The legislation and their amendments
effective in 2017, and the impact on the Company’s
performance are as follows.
No. Peraturan Hal-hal yang Diatur Pengaruh terhadap Perseroan
1 POJK No. 14/POJK.03/2017 Recovery Plan for Systemic Banks. As a Systemic Bank, the Company compiles Recovery
dated April 4, 2017. Plan document and it will be proposed at the Annual
General Meeting of Shareholders 2018 to obtain
approval, which then will be submitted to the Financial
Services Authority.
2 POJK No. 18/POJK.03/2017 Reporting and Requesting Debtor Information through In 2017, the Company conducts a transfer of customer
dated April 26, 2017. the Financial Information Services System information reporting system, from SID to SLIK. During
the transfer period, the Company still used SID, but
conducted trials of SLIK on every Branch Offices.
Since January 1, 2018, the system is SLIK. SID is no
longer valid.
3 POJK No. 42/POJK.03/2017 Obligation to Prepare and Implement Financing or Loan The Company is updating the Bank Credit Policy
dated July 12, 2017. Policies for Commercial Banks Implementation (PKPB) in 2017. Currently, the Company
is transforming the business process. Thus, there is
several adjustments so that the PKPB is in line with the
Company’s transformation process.
4 POJK No. 44/POJK.03/2017 Limitation of Loan or Financing by Commercial Bank for The Company’s Policy regarding Loan on Procurement/
dated July 12, 2017. Land Acquisition and/or Land Management Land Management meets the OJK regulation.
5 SEOJK No. 21/SEOJK.03/2017 Risk Management Implementation in the Use of The Company issued Directors’ Regulation No. 11/PD/
dated Tuesday, June 6, 2017. Information Technology by Commercial Banks ITPD/2017 on Governance Guidelines for Information
Technology-Based Risk Management

Amendment to Accounting Policy
One of indicator for good and accountable financial statement is a report

that is in line with all accounting policy relevant to the Company’s business.
Therefore, the Company commits to comply with all financial accounting
standard, especially on the new policy or policy amendment.
Compliance Statement with the Accounting Policy Accounting Standards Effective on January 1, 2017, and Its
The financial statements as of and for the years ended on Impact on the Company’s Financial Statements
December 31, 2017, and 2016 are prepared and presented in 1. PSAK No. 1 (2015 Amendment), “Presentation of
accordance with Indonesian Financial Accounting Standards, Financial Statements on Disclosure Initiatives”, provides
which include Statements and Interpretations issued by clarification regarding the application of materiality
the Financial Accounting Standards Board of the Indonesia requirements, flexibility of the systematic notes
Chartered Accountants, and Bapepam-LK Regulation No. sequence to financial statements and identification
VIII.G.7 on the attachment of Chairman of Bapepam-LK Decree of significant accounting policies. Amendment to
No. KEP-347/BL/2012 dated June 25, 2012, on Presentation PSAK No. 1 also resulted in amendments to the PSAK
and Disclosure of Financial Statements of Public Listed (consequential amendment) as follows: PSAK No.
Companies. 3 “Financial Statements”, PSAK No. 5 “Operational
Segments”, PSAK No. 60 “Financial instruments:
The Financial Statements is compiled in line with the Disclosure”, and PSAK No. 62 “Insurance Contract”.
Statement of Financial Accounting Standards (PSAK) No. 1 2. PSAK No. 3 (Adjustment 2016), “Financial Statements”,
(2015 Amendment), “Presentation of Financial Statements”. clarifies that the required disclosures should be included
in the financial statements or through cross-references
Sharia bank financial statements based on sharia principles of financial statements such as management comments
are presented in accordance with Statement of Financial or risk reports available to users of financial statements
Accounting Standards (PSAK) No. 101 on ‘Presentation of and at the same time. If users of financial statements
Sharia Financial Statements’, PSAK No. 102 (2013 Revision) are unable to access information contained in cross-
on “Murabahah Accounting”, PSAK No. 104 on “Istishna references with the same terms and times, the entity’s
Accounting”, PSAK No. 105 on “Mudharabah Accounting”, financial statements are considered incomplete..
PSAK No. 106 on “Musyarakah Accounting”, PSAK No. 107 on 3. PSAK No. 24 (2016 Adjustment), “Employee Benefits”.
“Ijarah Accounting”, which replaced PSAK No. 59 on “Sharia This adjustment clarifies that the high-quality corporate
Banking Accounting”, related to the recognition, measurement, bond market is valued based on the denomination of
presentation, and disclosure of the said topics, PSAK No. the bond’s currency and not on the country in which the
110 (2015 Revision) on “Sukuk Accounting”, and Accounting bond is located.
Guidelines for Indonesian Sharia Banking (PAPSI) issued by 4. PSAK No. 60 (2016 Adjustment), “Financial Instruments:
Bank Indonesia and Indonesia Chartered Accountants (IAI). Disclosure”. This adjustment clarifies that the entity
shall assess the nature of service contract rewards
The currency in the financial statements is Rupiah (Rp), which to determine whether the entity has a continuing
is the functional currency of the Bank. The figures presented in involvement in the financial asset and whether
the financial statements, unless otherwise stated are rounded the disclosure requirements related to sustainable
in millions of Rupiah. engagement are met.
5. PSAK No. 101 (2016 Revision), “Presentation of Sharia
Amendment to Accounting Policy, Disclosure, and Financial Statements”, is a revision of the illustration of
their Impact on Financial Statements the sharia insurance financial statements as a result of
The following summarizes some of the Statements of Financial the revised PSAK 108 “Accounting for Sharia Insurance”.
Accounting Standards (PSAK) and Interpretations Financial In which the provision for future policy benefits is
Accounting Standards (ISAK) issued by the Financial Accounting presented in the financial position as liabilities.
Standards Board (DSAK)-IAI relevant for the Company.
6. PSAK No. 102 (2016 Amendment), “Murabahah ›› that tax deductions arising from the reversal of
Accounting”, PSAK No. 103 (2016 Amendment), deferred tax assets are exempted from the estimated
“Greetings Accounting”, PSAK No. 104 (2016 future taxable income. Then the entity compares the
Amendments), “Istishna Accounting”, PSAK No. 107 temporary differences that can be deducted from the
(Amendment 2016), “Ijarah Accounting”, this amendment estimated future taxable income that does not include
modifies the definition of fair value in accordance with the tax deductions resulting from the reversal of
the definition of fair value in PSAK No. 68 “Fair Value deferred tax assets,
Measurement” Fair value is defined as the price to be ›› that some of the entity’s assets exceed the carrying
received to sell an asset or price to be paid to transfer amount if there is sufficient evidence that it is likely
a liability in a regular transaction between market that the entity will achieve this..
participants on the date of measurement. 3. PSAK No. 15 (2017 Adjustment) “Investments
in Associates and Joint Venture”, when the initial
The impact on the financial statements of the above- recognition of an entity may choose to measure its
mentioned accounting standards has been disclosed in the investee at fair value on an investment basis.
relevant notes to the financial statements.. 4. PSAK 71: Financial Instruments, adopted from IFRS 9,
are effective on January 1, 2020, with permitted early
Accounting Standards Not Effective yet for Financial implementation.
Statements per December 31, 2017 5. PSAK 73: Leases, adopted from IFRS 16, is effective
1. PSAK No. 2 (2016 Amendment): The “Cash Flow on January 1, 2020, with permitted early adoption for
Statement of Disclosure Initiatives” requires an entity entities which have also applied PSAK 72: Income from
to provide disclosures that enable users of the Financial Contract with Customer..
Statement to evaluate changes to liabilities arising from 6. Amendment to PSAK No. 62: An Insurance Contract on
financing activities, including changes arising from cash Implementing PSAK 71 Financial Instruments with PSAK
flows or non-cash changes. 62 Insurance Contract, effective on January 1, 2020.
2. PSAK No. 46 (2016 Amendment): “Income Tax On 7. Amendment to PSAK No. 53: Share-based Payment:
Deferred Tax Asset Recognition For Unrealized Losses”, Classification and Measurement of Share-Based
clarifies: Payment Transactions, effective on January 1, 2018,
›› that the temporary difference may be deducted, arising with permitted early implementation.
when the carrying amount of the debt instrument 8. ISAK 33: Foreign Exchange Transactions and Advance
assets measured at fair value, and fair value is less Payments, effective on January 1, 2019, with permitted
than the tax base, regardless of whether the entity early implementation.
forecasts to recover the carrying amount of the debt
9. PSAK 111: Wa’d Accounting, effective on January 1, 2018.
instrument through sale or use,
›› that in order to determine whether the taxable profit
The Company is currently evaluating and has not determined
will be available, the deductible temporary differences
the impact of the revised PSAK on its financial statements.
can be used, the valuation of the deductible temporary
differences shall be made in accordance with the
tax regulations,

Comparison of Target,
Realization, and Projection
Comparison of Target, Realization, and Projection on Operational Aspect

Sharia Loan and Financing Target, Realization, and Projection of Loan Position and Sharia Financing
reached
In 2017, the loan position realization is Rp198,990,581 million, achieving 99.35% of the
99.35%
Company’s Work Budget and Program (CBP) target in 2017, i.e. Rp200,294,261 million.
Subsequently, in 2018, the loan position according to WP&B 2018 is projected to grow 22-
24%. The projection is based on economic assumptions. In 2018, the economy will grow at 5.4%,
of the CBP 2017 inflation will be in the range of 3.5%, and the rupiah exchange rate will be at Rp13,500.
Projection of Loan and

Achievement on Financing Growth 2018
Description 2017 Targets Realization of 2017 CBP 2017 (%) (%)
Table: Target, Realization, and Rp million Growth % Rp juta Growth %

Projection of Loan Position
and Sharia Financing Housing Loan 167,268,136 23.14 163,122,459 20.08 97.52 22 – 24
(IDR million) Non-Housing Loan 15,710,365 9.24 17,880,324 24.33 113.81 24 – 26
Total loan 182,978,500 21.81 181,002,783 20.49 98.92 23 – 24
Total Sharia
Financing 17,315,761 21.73 17,987,798 26.46 103.88 16 – 17
Total Sharia Loan

and Financing 200,294,261 21.80 198,990,581 21.01 99.35 22 – 24
Target, Realization, and Projection of Third Party Fund

The DPK achieved is The realization of third-party fund in 2017 is Rp192,473.793 million, or achieving 97.79% of CBP
97.79%
2017 target, i.e. Rp196,833,164 million. Subsequently, in 2018, the third party fund according
to CBP 2018 is projected to grow at 18-20%. The projection is based on the assumption of
Company’s loan growth in 2018 at 22-24%.
of CBP 2017
Achievement on Projection of Third-Party

Description 2017 Targets Realization of 2017 CBP 2017 (%) Fund 2018 (%)
Rp million Growth % Rp juta Growth %
Demand Deposit 53,316,735 16.30 54,655,130 19.21 102.51 3–4
Savings 41,630,874 19.54 40,946,579 17.57 98.36 32 – 34
Deposits 101,885,554 28.13 96,872,084 21.82 95.08 21 – 23
Total of Third
Party Fund 196,833,164 22.87 192,473,793 20.15 97.79 18 – 20
Comparison of Target, Realization, and Projection on Financial Aspect

Target, Realization, and Projections of Financial Position
Below is description related to the CBP 2017 and projection in 2018 on the Company’s financial
position:
Table: Target, Realization,

Achievement on Projection of Financial
and Projection of Financial
Description 2017 Targets Realization of 2017 CBP 2017 (%) Position 2018 (%)
Position (IDR million)
Demand Deposit 53,316,735 16.30 54,655,130 19.21 102.51 3–4
Savings 41,630,874 19.54 40,946,579 17.57 98.36 32 – 34
Deposits 101,885,554 28.13 96,872,084 21.82 95.08 21 – 23
Total of Third
Party Fund 196,833,164 22.87 192,473,793 20.15 97.79 18 – 20
The realization of total assets in 2017 is Rp261,365,265 million, achieving 103.26% of CBP
2017 target, i.e. Rp253,106,120 million. Subsequently, in 2018, the total assets according to
CBP 2018 is projected to grow at 16-18%.
The realization of total liabilities in 2017 is Rp239,701,832 million, achieving 104.90% of CBP
2017 target, i.e. Rp228,499,783 million. Subsequently, in 2018, the total liabilities according to
CBP 2018 is projected to grow at 16-18%.
The realization of total equity in 2017 is Rp21,663,435 million, achieving 88.04% of the CBP
2017 target, i.e. Rp24,606,337 million. Subsequently, in 2018, the total equity according to CBP
2018 is projected to grow at 12-14%.
Target, Realization, and Projection of Income and Profit

The realization of interest income and profit sharing in 2017 is Rp20,080,990 million, or
achieving 96.04% of the CBP 2017 target, i.e. Rp20,909,020 million. Subsequently, in 2018, the
total interest income and profit sharing according to CBP 2018 are projected to grow at 25-27%.
The realization of income for the year after tax in 2017 is Rp3,027,466 million, achieving 100.23%
of the CBP 2017 target, i.e. Rp3,020,387 million. Subsequently, in 2018, the income for the year
after tax according to CBP 2018 is projected to grow at 27-29%.

Target, Realization, and Projection of Capital Structure

Below is description related to the CBP 2017 and projection in 2018 on the Company’s capital
structure:
Table: Target, Realization, and

Achievement on Projection of Financial
Projection of Capital Structure
Description 2017 Targets Realization of 2017 CBP 2017 (%) Position 2018 (%)
(Rp million)
Core Capital
(Tier 1) 18,065,176 9.86 18,726,949 13.89 103.66 13 – 15
Common Equity
Tier - Cet 1 18,065,176 9.86 18,726,949 13.89 103.66 13 – 15
Additional Core
Capital - - -
Supplementary
Capital (Tier II) 3,551,314 (5.96) 3,367,995 (10.82) 94.84 47 – 49
Total Capital 21,616,490 6.91 22,094,944 9.27 102.21 18 – 20
The realization of total capital in 2017 is Rp22,094,944 million, achieving 102.21% of the CBP
2017 target, i.e. Rp21,616,490 million. Subsequently, in 2018, the total core capital according
to CBP 2018 is projected to grow at 18-20%.
Target, Realization, and Projection of Financial Ratio

The financial ratio realization against the target is described on the table as follows:
Table: Target, Realization, and

Target Realization Achievement on Projection
Projection of Financial Ratio
No. Description CBP 2017 2017 WP&B 2017 (%) CBP 2018
(%)
1 ROA 1.70 1.71 100.16 1.8 – 1.9
2 ROE 17.44 18.11 103.87 20 – 21
3 NIM 4.73 4.76 100.56 4.8 – 5.0
4 LDR 101.76 103.13 98.65 105 – 107
5 CAR 16.61 18.87 113.60 16 – 17
6 Gross NPL (%) 2.43 2.66 90.58 2.3 – 2.4
7 Net NPL 1.42 1.66 82.72 1.5 – 1.6
Key Performance Indicator (KPI) and

Bank’s Soundness Level
The Company continues to strive to achieve KPI targets set by the

Shareholders in the Management Contract annually. In 2017, the Company
achieved a 104.76% KPI and a rating of Composite 2 (PK-2) for Bank’s
Soundness Level
KPI the a Company’s success. The Company’s KPI consists of four

KPI is a quantitative measure of performance to assess perspectives which cover financial and non-financial aspects.
the level of achievement against targets approved by Details of KPI’s achievement in 2017 are as follows.
Management. Achievement of KPI reflects the determinants of
Table: KPI 2017
No. Strategic Target 2017
Target Realization Achievement
Financial Perspective
1 Rp Corporate Income realization Rp3,020,387 Rp3,022,341 100.06%
2 Market capitalization growth Rp 16.87% 75.56% 447.87%
3 % National NPL 2.43% 2.61% 92.45%
4 % RoE 17.44% 18.09% 103.75%
5 % CIR 54.97% 50.20% 108.67%
6 % CAR 16.61% 18.24% 109.80%
7 Rp Asset Growth Rp38,937,641 Rp47,342,018 121.50%
8 Rp Loan Growth Rp35,847,871 Rp34,544,200 96.36%
9 NIM 4.73% 4.76% 100.54%
10 Rp DPK Growth Rp36,641,494 Rp38,064,659 103.88%
11 % CASA 48.24% 49.41% 102.44%
12 Rp Issuance of wholesale funding (including securitization) Rp10,000,000 Rp18,525,000 185.25%
13 Rp Fee Based Income Rp2,000,354 Rp1,630,415. 81.51%
Customer’s Perspective
1 % ∆ Housing Loan Market share 0.43% 2.73% 633.73%
2 MRI Rank 10 8 120.00%
3 Customer Engagement Index 78.00 80.20 102.82%

No. Strategic Target 2017
Target Realization Achievement
Business Process Perspective
1 % PAB implementation approved by OJK 80.00% 81.82% 102.27%
2 % implementation of strategic projects 100% 106.93% 106.93%
3 Implementation of business process improvement and loan projects 100% 102.20% 102.20%
4 KPKU Score 590 602 102.03%
5 % Partnership and Community Development Program (PKBL) realization 24.754% 25.399% 102.60%
6 CGPI Score 86.00 86.86 101.00%
Learning & Growth Perspective
1 Rp Profit / Employee Rp281 Rp344 122.59%
2 Employee Engagement Index 77.50% 78.00% 100.65%
3 % implementation of IT Charter 80% 88% 110.44%
Amount of Weighted Achievement 104.76%
Bank Health Rate

Bank health rate reflects the assessment results towards
the conditions of the Company which is carried out towards
the risks and performance of the Bank which might be
seen from the rank of the assessment final results based
on the Regulation of Financial Services Authority No. No.4/
POJK.03/2016 dated January 26, 2017, on Soundness Level
Assessment of Commercial Banks, and OJK Circular Letter
No. 14/SEOJK.03/2017 dated March 17, 2017, on Soundness
Level Assessment of Commercial Banks using Risk-based
Approach, which includes four factors, i.e.:
1. Risk Profile,
2. Governance,
3. Earnings,
4. Capital.
In 2017, the Company has obtained the Bank health rate rank
of “Composite 2 (PK-2)” which reflects the general health
condition of the Company, which was deemed to be able to
overcome significant negative influence from the changes in
business conditions and other external factors.
Business Continuity Information
Informasi Layanan Perbankan BTN DIgital

Source: Tahta Aidilla
Potential Matters that May Significantly Affect the Management Assumption in Carrying Out
Business Continuity Assessment
As of 2017, the Company does not face any significant impact on Management uses assumption from various source, both
business continuity. The growth of the Company’s operational internal and external, i.e. economic indicator such as GDP,
and financial performance in the last five years, as contained inflation rate, exchange rate, and projections. Achievements in
in the Financial Highlights Overview and the Operational the aspects of financial performance are supported by the level
Performance Indicators Overview reflects the Company’s of capital adequacy, liquidity, and profitability. The Company’s
condition that is able to maintain its business continuity. Management considers the aspects of implementation
effectiveness of the Bank’s Business Policy and Plan as well.
Management Assessment on Potential Matters that
May Significantly Affect the Business Continuity Corporate Position
The Management has assessed the Company’s ability to The Company has analyzed all aspects that affect business
continue its business continuity. The Company’s human sustainability. The external factors that will affect the
resources to continue the business in the future are sufficient. housing businesses are the macroeconomic developments,
In addition, the Company’s management knows nothing about government policies related to the One Million Houses
the uncertainty material that may rise significant hesitancy program, and the growth of bank revenue pools. The internal
on the Company’s business continuity capability. In the last factors are analyzed, taking into account the comprehensive
five years, the Company has obtained opinions from Public capacity and capability of the organization in addressing the
Accounting Firm Purwantono, Sungkoro & Surja, stating that external conditions. The internal and external factors are
the financial statements have been fairly presented in all analyzed by using SWOT analysis. The resulting matrix is
material, including the Company’s financial position, financial as follow.
performance, and cash flow.

External Opportunities (O) External Threats (T)

The Company’s 1. Projected increase in economic 1. The allocation of interest
growth. subsidy (SSB) of Housing Loan
SWOT and TOWS 2. Growth in construction, in line
with the Government’s massive
in the APBN is lower than the
assumption in the BTN Blueprint,
Matrix 2017 3.
infrastructure plan
Growth of Mass and Affluent 2.
i.e. 500 thousand units.
Reduction of FLPP’s budget
Customers portion in RAPBN 2018.
4. Government’s encouragement for 3. Increased number of BTN
the housing sector customers who are digital savvy.
5. Financial inclusion programs that 4. Increased competition from
open opportunities to unbankable fintech companies.
customers 5. Deregulation of a multifinance
6. Growth of MSMEs businesses business that will enable them to
go into the banking business
Internal Strength (S) SO Strategy ST Strategy

1. Brand value in the housing finance 1. Become a market maker of 1. Improving IT capabilities (e.g.
sector residential business and liaison technological updates and
2. Leading the market of subsidized between developers and analytics capabilities)
and low-cost housing loan. Government 2. Developing the Digital Banking
3. The momentum of success 2. Increasing the role of BTN HFC as Services
through the survival period. the main thinktank institution in 3. Establishing Digital Housing Loan
4. The main institution in the Indonesia (e.g. the capability to (KPR) ecosystem
housing program implementation help the Government proactively
5. Highest growth in Indonesian to address supply issues)
banking industry
6. Close relationship with low-cost
housing developers.
Internal Weakness (W) WO Strategy WT Strategy

1. Needs improvement in terms of 1. Strengthening the BTN loan 1. Bond issuance and asset
Efficiency. positioning on the mass segment. securitization continuously
2. Low CASA. 2. Optimizing the SME segment as 2. Preparing and acquiring talents to
3. Product-centric growth strategy the main supporters of housing build digital banking and improve
4. Weak fundamental enablers, such supply. efficiency
as integrated GRC, image outside 3. Improving CASA through the 3. Conducting cleanup process for
the Housing Loan segment mass, emerging affluent & affluent Master Data Management
manual process, branch and sales segment, and commercial funding
productivity that are not optimal, support.
limited analytics capabilities 4. Increasing FBI earnings by
deepening the share of wallets
of emerging affluent & affluent
segments
Human Resources Management
The Company continuously conducts human resource enhanced risk culture across all business operational activities.
management in accordance with the policies and strategies that In general, human resources initiatives were focused on:
have been developed in accordance with the Manpower Law. 1. Implementing a clear succession and career
The Human Capital Management and Culture Specialist Division management plan to identify risks related to the
carries out HR management and is led by a Division Head who availability of employees for occupying key positions;
directly reports to the President Director as regulated in the 2. Preparing a strategic manpower plan to determine the
Board of Directors Decree No. 04/KD/DIR/SIPD/2017 dated gap in the long term and prepare for future needs;
May 29, 2017. In carrying out its duties and responsibilities in 3. Developing an employer value proposition and
human resource management, the Human Capital Management recruitment campaigns to attract the best talents to
and Culture Specialist Division is assisted by three departments, Company;
namely Human Capital Career & Development, Human Capital 4. Improving and managing Company’s performance
Services, and Human Capital Operation and supported by a to build desired behavior and increase employee
specialist unit, i.e. Culture Specialist. engagement;
5. Developing a top talent program for high performing
Human Resources Roadmap Company employees to create appropriate supply for
The Company has a human resource development roadmap succession;
which is used as the basis for human resource management 6. Encouraging change through top management support;
in line with the Company’s Digital Banking transformation
7. Implementing a performance and risk-based culture to
roadmap as stipulated in the Banks Business Plan 2018-
maintain sustainable success
2020. The Company focuses on enhancing organizational
capability through high-performing culture internalization and
Human Resources Development Roadmap 2016-2020
Design and Performance Human Capital Engage and

Recruitment
Planning Management Development Retain
Implementing the Maintaining the Management Trainee Program/ODP consistently to provide the supply for the next generation leader
succession plan and clear continuously for the Company
career management
to identify risk of the
availability of employees Facilitating and implementing BTN performance management to build the desired behavior and
in key positions improve employee engagement
Developing Employer
Value Proposition and
Developing a Top Talent Program for high-performing Employees to create a strong succession
Compiling strategic recruitment campaign
supply and promoting internally
manpower plan to to attract the top talent
determine the long-term to the Company
gap and preparing for the Adding Training and Development to the Company’s employees at the managerial level to build the
future best-in-class and highly productive workforce
Encouraging change through Clarifying the strategic role

Implementing performance-
highest management of Human Capital function
based culture to maintain
commitment and and providing adequate
sustainable success
Management Office functions Human Capital
Ensuring the success of the Human Capital roadmap implementation

Human Resources Planning Development Program, Leadership Program, Executive

The company prepares HR planning in the form of a Manpower Development Program.
Planning annually. The Manpower Planning process is done 2. School of Business Banking
to determine the number and requirements for employees Includes all training related to Company products and
in accordance with the formation standards to support services, i.e. House Mortgage (KPR), funding, treasury,
the business strategy set by the Company. This process is collection, sales, and service.
periodically reviewed to ensure compliance with the Company’s 3. School of Operational Banking
business growth and condition. All work units are involved in Includes all operational activities to support business
the process hence it becomes a reference for recruitment. units, i.e. Information Technology, Finance, Risk, Human
Capital, Legal and others.
Human Resources Recruitment
The recruitment process is well managed to produce human The employee training is conducted in accordance with the
resources capable of providing a competitive advantage for management policies or strategies and results of the training
the Company. The recruitment of employees is conducted need analysis. This condition reflects that all employees
through internal and external channels to obtain candidates meeting the requirements shall have the opportunity to take
in accordance with the Company’s objectives. Internal part in the training. Post-training evaluations are done through
recruitment is done to fill vacant positions in a work unit a Post-Training Evaluation Form to measure the Return on
through employee promotion and rotation. If the needs for Training Investment that reflects the effectiveness of the
employees cannot be met internally, an external recruitment training. The results of these evaluations are used as the basis
will be carried out. for career path and employees’ need for advanced training.
The evaluation is not only carried out for the participants, but
External recruitment information is published in also for the Training Instructors and Organizers.
advertisements through various print and electronic media,
job fair, talent scouting or job searching through universities. In 2017, Company has conducted training for 24,143
External recruitment is carried out by Direct Hire (directly participants, namely: 13,295 school of business participants,
recruited by the Company) or by Outsourcing (recruitment 1,112 school of leadership participants and 9,736 school of
by a third party). The Outsourcing method is used to recruit operational banking participants. The total cost of holding the
employees for non-organic positions with non-core job training reached Rp164,686,000,000 increasing compared to
characteristics. Company has used a web-based recruitment the cost in 2016 i.e. Rp128,400,000,000. The increase of costs
system (e-recruitment) and has cooperation with Linkedin was adjusted with the training required by the employees.
to make the recruitment process more efficient. In 2017,
Company has recruited 1,837 new employees increasing by Performance Management System
34.88% compared to 2016. The company implements a performance management
system as an effort to improve employee performance. In
Human Resources Development addition, the implementation of performance management
Capacity building and competency of employees play is expected to motivate employees to carry out their duties
an important role in establishing qualified employees in optimally, increase employee loyalty and achieve an open,
accordance with the needs and business development of the positive and progressive work climate. Each year, the
Company. The Learning Center Department is responsible for Company’s targets are formulated and distributed to all
employee development through the learning & development Units each year and are then distributed further to each
program. The employee learning program is product-oriented individual based on each employee’s potential and capability.
hence three schools were developed: These set of targets are quantitative in the form of a Key
1. School of Leadership Performance Indicator (KPI). All employees have a KPI as
Includes training related to leadership development, a derivative of the Unit Key Performance Indicator (KPI).
including: Staff Development Program, Officer
The Individual KPIs are determined under the following scheme.
Process to Determine Individual KPI
RKAP Company’s Target Unit

Target
Performance Individual KPI Individual

Appraisal Technical Competencies Target
Purpose Behavioral Competence
The employee performance assessment is done once a year Company to implement an employee career management
for the period of 1 January - 31 December of the current year. system as regulated by the Board of Directors’ Circular
Individual performance is planned, determined, reviewed Letter No. 26/DIR/HCD/2014 on Employee Career Planning.
and assessed by using the Performance Management Form Employee career management practices not only place the
which includes three performance assessment targets, best employees in vacant positions but also to identifies
namely: Individual Work Target for the current performance potentials, and ensure that all employees receive equal
assessment period; Technical Competency which includes opportunities to develop their careers.
the Technical Competency required for individual positions,
Level of Technical Competency required and displayed by In general, Company applies three career paths, namely:
the individual; and Behavioral Competency, i.e. Level of 1. Fast Track
Behavioral Competency required for individuals positions Refers to a highly accelerated career path that applies
assessed and displayed. for employees who meet the requirements and have
been deemed entitled to gain an opportunity for
The Corporate Performance Management System is also promotion within 1 (one) year to 2 (two) years since
implemented using the 4DX Method (Four Disciplines of their last placement.
Execution) as a basis for determining the performance targets/ 2. Middle Track
planning and carrying out the monitoring. In determining Refers to an accelerated career path that applies for
performance targets, the Corporate KPI is set as the most employees who meet the requirements and have been
important target and becomes an Individual SMK component. deemed entitled to gain an opportunity for promotion within
On the other hand, the Unit KPI is determined as a Lag 2 (two) years to 3 (three) years since their last placement.
KPI which becomes the responsibility of the position and 3. Normal Track
encourages the achievement of the Corporate KPI. Hereinafter,
Refers to a career path that follows the general
the Individual KPIs are set as a Lead KPI, i.e. activities that
guidelines that apply for employees who meet the
are Lead Measures to encourage the achievement of the
requirements and have been deemed entitled to gain an
Unit KPI. Subsequently, Company monitors Corporate, unit,
opportunity for promotion in more than 3 (three) years
and individual performance reflected from the KPI using a
since their last placement.
Scoreboard, routinely holding a Wig Session and ensuring that
individual targets are achieved through coaching & mentoring.
The three career patterns are provided through a number
of tracks considering these aspects: organizational need
Career Management and development, as well as the performance management
One of the factors that affect employee satisfaction in their
work is having a clear career path. This encourages the

system assessment in the last three years. The available 2. Reward for Tenure of Service
employee career paths include: Employees with a tenure of service of 15, 20, 25 and
1. Promotion 30 years are entitled to receive awards in the form of a
The career path for higher position groups is managed karya satya bakti plaque, karya satya bakti cash reward
through a Promotion mechanism. Employees are entitled proportionate to the tenure of services, and an extra five-
to be candidates for promotion are those that are day leave.
considered to be part of the star, potential and average 3. Reward upon Completion of Tenure
group based on the Talent Mapping, as managed in the This reward consists of three types: karya purna bakti
Talent Mapping Policy. The promotion also takes place if award, karya satya abadi award, and end-of-tenure
there is a vacant position. award. Retired employees receive a karya purna bakti
2. Rotation award. On the other hand, employees who passed away
The career path to a similar position group is managed while performing their duties to maintain the good
through a Rotation mechanism. Rotation takes place name, security, and integrity of Company’s assets and
is there is a vacant position as a result of a rotation or interests receive karya satya abadi award in the form of a
promotion from a similar position or the position holder is certificated given to the heirs and bereavement pay. The
u8nable to work for a long period. reward upon completion of tenure is given to permanent
3. Career Path to a Position in a Lower Position Group employees who are honorably dismissed or passed away
Career path to a position in a lower position group is due before retirement.
to the employee’s own request, due to various reasons: 4. Special Rewards
wanting to build a career in a different work sector This award is given by the Board of Directors specifically
or position category, but having to start from a lower for former employees of the Company or the Indonesian
Position Group; wanting to be transferred to a different Army/Police at the Central and Regional levels who are
work location where the position available or position deemed to have contributed or have played a major role
they are qualified for is a position in a lower Position or have good cooperation with the Company.
Group than their current position. In addition, transfer 5. Reward in the form of Overseas Assignment
to a position in a lower Position Group due to sanctions This reward is given to Divisions/Desks/Regional Offices/
managed through the Demotion mechanism regulated in Branch Offices that have reached certain targets.
the Policy on Disciplinary Regulations and Sanctions.
The reward given to employees, monetary or non-monetary,
The career management practices indicate that the is adjusted to the ability of the Company referring to the Board
Company does not discriminate as all the mechanisms have of Directors’ Circular Letter No. 43/DIR/CMO/2011 on Awards.
been regulated clearly in accordance with the prevailing The financial reward is evaluated annually and improvements
provisions. In 2017, the promotion program was provided are made to retain the Company’s competitiveness.
for 1,691 employees and the rotation program was provided
for 7,111 employees. The Company administers punishments for employees who
commit a violation, in the form of sanctions or disciplinary
Reward and Punishment punishments based on the level and type of sanctions
The Company strives to encourage every employee to continue applicable. The sanction is determined based on six factors,
to grow and create innovations by giving several types of among others, by Officials or employees who have been
rewards including: subject to disciplinary sanctions, element of intent, bad faith,
1. Reward for Outstanding Work Achievement financial loss, and damage to the Company’s image. The types
This reward is given to employees who demonstrate of sanctions applicable as stipulated in the Board of Directors’
outstanding work performance, hence they are entitled to Circular Letter No. 49/DIR/HCD/2016 on Disciplinary Sanctions
a karya utama award, karya utama cash award amounting dated 14 November 2016 include administrative sanctions,
to three times the basic salary of the respective employee, financial sanctions, criminal/civil charges, and Termination of
and an extra five-day leave. On the other hand, employees Employment (PHK). Administrative sanctions consist of minor
who contribute with ideas and creations that benefit the categories, i.e. verbal, written warnings, and statement of
Company are entitled to the karya utama plaque. dissatisfaction; medium category, i.e. not receiving recreational
leave bonus, not getting a periodic salary adjustment, and
decrease of person grade by one grade; severe category, the employees experience against the Company’s objectives
namely the decrease of person grade by at least two grades, was analyzed to create a comfortable and conducive work
PHK and PHK reported to the authorities. environment to improve performance and productivity.
Employee Engagement Survey The company conducted the 2017 EES on 24 October - 03
Employee engagement to their work or company is one of the November 2017 through cooperation with independent
factors that affect a company’s performance. The Employee consultants. The EES was conducted by distributing an online
Engagement Survey (EES) is used to identify the level of employee questionnaire to all permanent employees of Company. The
engagement to the Company The survey aims to provide the questionnaire consists of questions, covering two aspects:
employees with an opportunity to honestly state their opinion Engagement Questions and Driver Questions. In general, the
on matters that have been well implemented and needs to employee engagement formulation method is illustrated in the
be improved in Company. In addition, the gap between what scheme below.
Skema Metode Employee

Engagement Survey
• Costumer Focus
Engagement
• Diversity & Inclusion
• Enabling Infrastructure
• Survey Follow Up
Drivers
Brand Company Practices • Talent & Staffing
THE WORK
• Senior EXPERIENCE Work / Life Balance
Leadership Leadership The Basics
• Supervision
• Career Opportunities • Collaboration

• Learning & Developmenr • Empowerment/Autonomy
• Performance Management Performance The Work • Work Tasks
• Rewards & Recognition
Engagement SAY STAY STRIVE

Outcomes
CUSTOMER
TALENT OPERATIONAL FINANCIAL
Business • Retention
• Absenteeism
• Productivity
• Safety
• Satisfication
• Retention
• Revenue/Sales Growth
• Op.Income/Margin
Outcomes • Wellness • Total Shareholder

Return
Best Employer Differentiators Foundation

Company’s EES score in 2017 was 78% or exceeding the EES Quartile level. The EES result indicates that the employees’ level
score in 2016, i.e. 77%. That score also indicates that the of engagement with Company is relatively high as illustrated in
engagement of employees with Company is within the Top the following scheme:
50
40 60
70
30 Mo d e r
ate
Zo n
e
le
rti
ua
20
80
Q
w
To
Lo
pQu
arti
10
90
le
100
0
Bank BTN 2017 (78%) Indonesia (65%) Financial Institution Indonesia (72%)
Bank BTN 2016 (77%) Financial Institution APAC (67%) BE Indonesia Benchmark (86%)
In addition, Company’s 2017 EES Score has exceeded other Company also offers a Pension Preparation Period (MPP) for
employees’ engagement level references e.g. 67% in APAC a duration of 12 months for permanent employees who have
Financial Institution, 72% in Indonesia Financial Institution, and reached the age of 55. The MPP is provided for a period of 12
86% in BE Indonesia Benchmark. The company acts upon the months providing an opportunity for permanent employees to
result of the survey by holding an information dissemination participate in various training to support their livelihood after
session and creating an impact plan to formulate improvements pension. In 2017, 115 permanent employees participated in
in the organization. The proposed improvements are then the MPP training program.
included in the preparation of the Company’s Work Program
and Budget (RKAP) for the upcoming year. Industrial Relations
Safe and comfortable working environment supports the
Pension Program smooth operations hence increasing productivity. Harmonious
The pension program is held as a form of appreciation for working relationships between employees and the Company
permanent employees for their contribution in Company. also affect employee productivity. This condition encourages
Permanent employees who have reached the normal retirement the Company to manage industrial relations as productive
age of 56 years and permanent employees working as a teller workers will significantly contribute to the Company’s
staff, customer service staff and secretaries aged 36 years old and performance. The key factor in achieving harmonious industrial
above are entitled to pension benefits. Company provides a pension relations is good communication between the Management
program, consisting of: Defined Benefit Program and Defined and employees. Company has established a Bipartite
Contribution Program which permanent employees are entitled Cooperation Body (LKS Bipartit), i.e. forum for communication
to upon becoming a Pension Fund participant. Under the Defined and consultation on matters related to the Bank’s industrial
Benefit program, employees continue to receive benefits according relations. The members consist of the Position Holders and
to the formula set by the Pension Fund. On the other hand, under Company Labor union (SP-BTN). Company and SP-BTN have
the Defined Contribution Program, employees continue to receive formulated a Collective Labor Agreement which is periodically
pension from accumulated contributions i.e. 2.5% deducted from reviewed according to the employees’ needs. The management
the employee’s salary, 7.5% from the Company, and the investment and SP-BTN also conducts a meeting to discuss the rights
result. The Maximum Pension Benefit an employee receives is 80% and obligations of employees and to formulate disciplinary
of the Basic Income referring to the Board of Directors Regulation sanctions in the case of disciplinary violations.
on Pension Fund Regulation for PT. Bank Tabungan Negara
(Persero) Tbk (Dapen BTN).
Information Technology Governance
Information Technology Development is a requirement for the Company

that engaged in digital-based financial services. The information technology
work program is implemented based on the Information Technology &
Communications Strategy Plan and its derivative policies that are aligned
with the Company’s key strategies to improve operational effectiveness and
efficiency through business process automation.
Information Technology Vision and Mission
Vision
“To synergize Business Strategy and Information Technology

by Providing World Class Information Technology Service to
Achieve Victory in the Digital Age”
Mission
“To be a reliable business partner who provides responsive and

accurate services through cutting-edge technology and leading
integration system.”
Information Technology Roadmap technology in the next three years is the Information Technology
The Company continues to refine the information technology Strategy Plan (RSTIK). Every year, the Company’s management
system utilized to support the digital services development. One evaluates RSTIK to update it with the dynamic business needs,
of the manifestations of Company’s management strategy as in line with the Bank’s Business Plan. Overview of RSTIK 2016-
a plan for the development and management of information 2018 is as follows.

Figure: Information Technology Strategic Plan (RSTIK) 2016-2018
Quick Wins while Post Mortgage Household

Digital Mortgage Bank
Laying the Foundation Financial Provider
Streamlined and Streamlined and

Online mortgage Online post- Customer analytics
more efficient more efficient
offering via digital mortgage product and business
processes, quicker processes, quicker
channels offering intelligence
time to approval time to approval
Digital Property
Staff equipped Agile product
Developer - self
Realized Capabilities
with digital configuration and

service, loan
devices, can work digitised bundled
origination behalf
“on the go” product offering
of buyers
Targeted sales
BTN Property Digitised loan Unified customer
and marketing, Integrated Property
Portal with origination with STP experience across
digital marketing Mobile App
enhanced features and workflow channels
campaigns
Single sign-on
and enhanced
digital security
2016 2017 2018
TC02 - CRM Implementation TC29 - Marketing & Sales MGMT
TC03 - Universal Customer Master TC17 - EDW and BI Enhancement TC30 - Agile Product & Bundling
TC04 - Channel Management Platform

Key Initiative
TC12 - LOS Replacement TC23 - Property Mobile APP
TC18 - BTN Property Portal Enhancement
TC42 - LOS Mobile App

IT Initiative
Mortgage Streamlining Business Initiative
This roadmap shall be elaborated into information technology Information Technology Policies
strategies compiled in accordance with business strategic so As the basis for the work program implementation and
it shall support the optimal operational performance. The information technology management, the Company has
information technology strategies are: a policy stipulated in the Board of Directors’ Decree. The
1. Flexible Distribution Company’s management reviews policies that have been
›› Sales and multi-channel services that provide regularly developed to strengthen the information technology
consistent service level on every distribution channel infrastructure in order to provide solutions to more accessible
›› Flexible channel to serve cooperation with partner and efficient financial services for customers. The Company
›› Starting transaction in one channel and finishing it has implemented information technology policies, as follow:
through another channel 1. Board of Directors’ Regulation No. 11/PD/ITPD/2017 on
2. Automated Processing the Risk Management-Based Information Technology
›› Automation and integration end-to-end by using Governance, Amendment to the Directors’ Regulation
Enterprise Application Integration (EAI) and Straight- No. 35/PD/ICTD/2010 on Risk Management-Based
Through Processing (STP) Information Technology Governance
›› Reduce the needs of user involvement 2. Directors’ Regulation No. 12/PD/ICTD/2016 on the
Information and Communication Technology Strategic
›› Optimize the transaction process speed
Plan 2016-2018.
3. Resource Empowerment
3. Directors’ Decree No. 05/PD/ICTD/2014 on the
›› Self-assisted training, education, and improvement of
Amendment to Directors’ Decree No. 18/PD/CMO/2011
employee’s skills
dated July 20, 2011, on IT Steering Committee.
›› Acceleration in products’ launching process
4. The policy of IT Business Continuity Plan, which covers
›› Improvement in employee empowerment and better
the Directors’ Circular Letter No. 01/DIR/DTI/2006
customer experience
on Operating Procedure Disaster Recovery Center
4. Agile Manufacturing (DRC) Directive, Directors’ Circular Letter No. 23/DIR/
›› Agile product manufacturing that allows for ICTD/2011 on Guidelines for Business Continuity Plan
modifications in the product specification Implementation, and Directors’ Circular Letter No. 35/
›› Enables bundling product DIR/ICTD/2013 on Disaster Recovery Plan (DRP) Manual
›› Accelerate the distribution time of new product to and Directors’ Circular Letter No. 18/DIR/RMD/2017
the market on Business Continuity Management (BCM) Policy
5. Integrated Customer Analytics and Standard Operating Procedure (SOP) of Business
›› Availability of customer’s information through Continuity Plan (BCP).
all channel, including customer’s profile and 5. IT information security policy includes Directors’ Circular
segmentation, product portfolio, risk evaluation, and Letter No. 17/DIR/DTI/2007 on Security Management
current loan Guidelines of Password/Cryptographic Key/Personal
›› 3600 customers’ visibility- a comprehensive view of Characteristics (Fingerprint, Retina, Sounds)/PIN, and
the customer’s perspective Directors’ Circular Letter No. 26/DIR/ICTD/2017 on Non-
›› Customer insights from analytic system Disclosure Agreement.
6. Advanced Security 6. Operational Policy comprised of Directors’ Circular Letter
›› Authentication platform and strong security No. 04/DIR/DTI/1999 on Housing Loan (KPR) Application
Operation Guidelines; Directors’ Circular Letter No. 05/
›› Establish secure and trusted environment for the
DIR/DTI/1999 on Operation Guidelines on Backup Data;
customer and partner in order to maintain good
Directors’ Circular Letter No. 02/DIR/ICTD/2014 on
customer experience
Operational Guidelines on Master Error Report Finishing.
7. IT Management Policy comprised of Directors’ Circular
Furthermore, the overall strategies will be elaborated
Letter No. 41/DIR/ICTD/2011 on Operation Guidelines
in the policy as continuous information technology
of IT Risk Management; and Directors’ Circular Letter No.
implementation guidelines.

33/DIR/ICTD/2011 on Information Technology Standard continues to be enhanced, in line with the Company’s
Operating Procedure (SOP). efforts to improve loan performance. Currently, the BTN
8. IT Standardization Policy includes Directors’ Circular Property portal contains information on various properties
Letter No. 59/DIR/ITPD/2017 on Information System sold with the most comprehensive options from different
Technology Standardization, which is the review result regions of Indonesia. This portal also lists loan simulations
of Directors’ Circular Letter No. 51/DIR/ICTD/2014 on and market prices. In addition, communities may apply
Information System Technology Standardization. for financing with conventional and sharia housing loan
9. Information Security Policy includes Directors’ Circular options, using loan pre-approval.
Letter No. 64/DIR/ITPD/2017 on Information Security 3. Mobile Application Property
Manual, which is an Amendment to Directors’ Circular Customers are able to find the desired property through
Letter No. 31/DIR/ICTD/2011 on Information Security the mobile property application. The application is
Management System, and Directors’ Circular Letter No. equipped with support features such as loan simulation,
40/DIR/ICTD/2016 on the Amendment to the Directors’ and direct loan submission. This reflects the continued
Circular Letter No. 01/DIR/ICTD/2014 on Information facilitation by the Company.
Security Guidelines. 4. Loan Origination System (LOS) Mobile App
The mobile extension of an existing Loan Origination
Information Technology Work Program 2017 System (LOS) for on-the-go lending activities, such as
Throughout 2017, Information and Communication approval.
Technology Division (ICTD) conducted programs
implementation in IT, in technology development, people, People Sector
and process; described as follows: 1. The ICTD conducts workload assessment in an attempt
Technology Sector to identify the capacity of employees in this division
1. Internet Banking and Mobile Banking Enhancement including workload requirements, future workload
In 2017, payment features on Internet Banking and projections, and organizational structures required to
Mobile Banking (IBMB) channels are added as an effort support the Company’s business development.
to meet the customers’ needs. In addition, IBMB function 2. The ICTD and Human Capital Division perform the staff
is enhanced through the integration of another channel. recruitment and rotation from other divisions in order to
The IBMB improvement is expected to enhance security determine the best candidates to meet the requirements
and performance on technologies, networks, and of positions in this division.
infrastructure in order to ensure the security and speed
of customer transaction services. Process Sector
2. BTN Property Portal Improvement ICTD holds a joint planning session with all divisions related
The Company innovates to improve services to to the Company’s business annually. Each division conveys
customers and property developers in order to meet their information technology needs to support the activities
the housing needs. One of the Company’s innovations is effectiveness and compiled work programs. ICT shall follow
the implementation of BTN Property portal, which has up by compiling work program, taking into account the needs
been launched since 2015. The portal implementation of related Division.
Corporate Governance
05
05 Corporate Governance
283 Company’s Governance Statement 355 The Company’s Remuneration Governance

283 GCG Importance in Company Implementation
284 Objectives of GCG Principles Implementation 362 Organs and Committees Reporting Directly to the
285 Company’s Governance Roadmap Board of Commissioners
287 Sustainable GCG Commitment 391 Committee Reporting Directly To The Directors
287 GCG Implementation Focus in 2017 398 Sharia Business Unit Governance (UUS)
288 Initiative in Sustainable Financial Application 407 Corporate Secretary
289 GCG Application Quality Improvement Plans 414 Internal Control System
in 2018 417 Internal Audit Function
290 Company’s GCG Assessment 427 Compliance Function
296 ASEAN Corporate Governance Scorecard (ACGS) 434 Risk Management Function
299 Corporate Governance Structure, Mechanism, 448 External Audit Function
and Policies 452 Code of Conduct
301 General Meeting of Shareholders (GMS) 455 Gratification Control
314 Board of Commissioners 457 Whistleblowing System (WBS)
322 Board of Directors 461 Legal Issues
331 Working Procedures of the Board of 462 Procurement of Goods and Services
Commissioners and Directors 466 Access To Information
332 Meetings of the Board of Commissioners and 467 Company Strategic Plans
Board of Directors 472 Disclosure of Other Aspects
345 Diversity Policy and Succession of the Board of
350 Affiliations Between Member of Board of
Directors, Board of Commissioners, and Major
and/or Controlling Shareholders

Corporate Governance
The Company is fully aware that the corporate governance implementation is
a non-negotiable requirement in the banking management, emphasizing the
prudential banking principles. As a trusted institution, the Company keeps
increasing the trust of all stakeholders in order to maintain the business
continuity and foster integrity by delivering the best performance.
The GCG implementation is reflected in the governance outcome such as the

increase of operational performance and sustainable financial growth, as well
as acknowledgment from various external parties on the Company’s existence.
The achievement as the 2nd winner of Annual Report Award (ARA) in the
category of State-Owned Financial Enterprises Listed in 2016 reinforced the
Company’s position in the information disclosure and corporate governance.
Awards of Company
Indonesia The
Most Trusted
Company
IICG Award 2017
Juara II Annual The Best Financial

Report BUMN Sector Asean Corporate
Keuangan Listed Governance Scorecard
Annual Report IICD Award 2017

Award
ASEAN
Risk Award 2017
ERMA
Gold Award kategori

Perusahaan Tbk Terbaik Corporate Governance &
Indonesia 2017 Investor Relation
Anugerah Perbankan The Asset Corporate

Indonesia Award 2017 -
Hongkong

Company’s Governance Statement
As an intermediary institution to collect public fund in the form of savings,

and then disbursing it in the form of loan/funding, the Company is an
essential part of the public economic wheel, especially on its position as
the housing finance bank with the biggest market share.
Good corporate governance or hereinafter abbreviated as GCG Importance in Company

‘GCG’ is one of Company’s efforts in guaranteeing the rights GCG is an equipment that can be utilized by the Company’s
of the stakeholders sustainably. organ to improve the Company’s business success and
accountability in order to realize the long-term stakeholders’
In order to increase the Bank’s performance, protect the value by taking into account the other stakeholders’ needs,
stakeholders, and improve the compliance with the legislation, based on the legislation and business ethics. The Company
the Company’s Board of Commissioners carries out the needs improved governance practices due to the more
supervisory function to ensure that the bank management complex risks faced by the bank. Therefore, the Company
conducted by the Directors is in line with the prevailing keeps improving the bank governance implementation by
legislation, and provide advice/suggestion on every strategic adapting the regulation development related to OJK Regulation
action/activity to achieve the Company’s objective. The No. 55/POJK.03/2016 on Governance Implementation for
Company’s Directors carry out the management function and Commercial Bank, OJK Circular Letter No. 13/SEOJK.03/2017
the bank management in a secure and professional manner on Governance Implementation for Commercial Bank, and OJK
and avoid any potential conflict of interests. Regulation No. 51/POJK.03/2017 on Sustainable Financial
Implementation for Financial Institution, Issuers, and Limited
In addition, as a listed SOE bank in the capital market, the Liability Companies.
bank’s governance may increase the investor’s trust and
security to invest in this global economy era. Therefore, the Furthermore, the GCG becomes a joint effort to proportionally
GCG principles implementation is reflected in the reliable respond to the GCG implementation needs in order to achieve
corporate governance mechanism in order to achieve the best the Moving Beyond Corporate Governance to True Business
performance. Value. The Company shall be a proud SOE Bank and participate
in realizing the development and welfare of the nation.
The Company keeps adopting various best governance Therefore, the Company always manages all the business
standard regionally and internationally in a sustainable manner, activities professionally by holding the GCG principles. The
and keeps improving the scope of GCG implementation, such root is its human resources who are reliable, professional,
as ASEAN Corporate Governance Scorecard, OJK Regulation have integrity, and good morals. Further, the consistent GCG
No. 55/POJK.03/2016 on Governance Implementation implementation and continuous innovation, both in terms of
for Commercial Bank, Principles for Enhancing Corporate products and services will ensure the stakeholders’ trust.
Governance published by the Basel Committee on Banking
Supervision, OJK Circular Letter No. 13/SEOJK.03/2017 GCG implementation is very beneficial to the Company. Hence,
on Governance Implementation for Commercial Bank, and the Company always has guidelines in performing its business
OJK Circular Letter No. 32/SEOJK.04/2015 on Governance wheel in accordance with the objectives and needs of every
Implementation on Limited Liability Companies. stakeholder. Furthermore, the Company believes that the
improvement of GCG implementation is parallel with the 3. Indonesia’s Most Trusted Company 2017, with the score
overall performance increase. This is demonstrated by the of 86.86;
Company’s accomplishments throughout 2017 that yields 4. ASEAN Risk Award 2017, held by Enterprise Risk Management
very satisfactory result in terms of financial performance, Academy (ERMA)
operational performance, and awards achieved. The Company The harmony between the stakeholders and the Company
maintained the third-party fund growth rate and maintained shall foster mutual trust and conducive behavior in the
its position as market leader in housing finance. The external environment, which will lead to the improvement of superior
recognition in the form of awards on performance, information work and professionalism in every personnel of the Company.
transparency, and implementation of GCG are namely: The Company’s position in the global competition will increase
1. 2nd Place of Annual Report Award in the category of through good financial performance. This also shall provide
Financial Listed SOE; development for the Company in the near future.
2. The Best Financial Sector Asean Corporate Governance
Scorecard by IICD; Objectives of GCG Principles Implementation
Generally, the Company applies GCG basic principles with
the objective and belief that these principles shall create a
business balance so that all parties, be it business or social,
individual or groups, internal or as external, both short-term
and long-term, and shareholders and stakeholders’ interests,
will lead to equilibrium. The GCG principles are essential to
ensure the Company to be stronger and able to maintain the
increasingly tighter competition. The Company continues to
follow the practice development of best GCG that is relevant
in the national, regional, and international scale, and adapted
it to their needs.
Company Transparency
The Company discloses
Accountability
The Company assigns clear
information in a timely, duties and responsibilities
GCG adequate, clear, accurate,

and comparable as well as
for each member of Board of
accessible manner to the and all members, aligned with
Principles parties (stakeholders). the the Company’s vision,
mission, values, targets, and
strategies.
Responsibility Independence Fairness and Equality

Bank sets clear duties and The Company avoids unnatural The Bank pays attention to
responsibilities for each domination by any stakeholder all stakeholders based on the
organ of Bank, taking into and is unaffected by unilateral fairness and equal treatment.
account the prudential banking interest and is free from
practices and ensuring conflict of interest.
compliance with the prevailing
legislations.

Company’s Governance Roadmap
By applying the GCG paradigm as a whole, there shall be an alignment

of interests and objectives between the Company and its stakeholders
(goal congruence), which further will encourage the creation of long-term
Company’s sustainability. GCG Roadmap is compiled in order to strengthen
the GCG consistently from time to time. The Roadmap consists of 4 (four) GCG
pillars, i.e. Commitment on Governance, Governance Structure, Governance
Mechanism, and Governance Outcome.
BTN GCG Pillars
Governance Governance Governance

Structure Mechanism Outcome
Commitment on Governance
The Company keeps perfecting the bank governance the foundation’, i.e. by improving the governance capacity
implementation from time to time and keeps adopting the and capability, conducted by building and strengthening the
governance Roadmap of an Indonesian company with the structure and infrastructure aspects of the bank governance.
Governance Guidelines of Limited Liability Companies and the The comprehensive and integrated governance, risk, and
ASEAN CG Scorecard principles. Hence the Company reviewed compliance shall be applied through the new mapping of
and perfected the Bank Governance Roadmap for 2017-2020 human resources, recruitment, education, and training,
period, i.e. by taking into account the initial implementation organizational structure adaption, policymaking, rules, system,
of Integrated Governance Risk & Control (GRC), the plan and procedures. “Integrated GRC” shall create control function
to implement financial conglomeration by establishing a coordination and a more efficient process optimization without
subsidiary, as well as a sustainable financial action plan which losing the effectiveness. The next step is a more effective
is the challenge in the future. The objective of the Governance and efficient “Integrated GRC” to minimize deviation both in
Roadmap is to direct the Company’s mission achievement. business process and results.
The final target is to be one of the companies with the best
corporate governance in the future. The ultimate goal of Roadmap ‘pursuing effective governance’
is to achieve the effective governance implementation level as
The preparation of the Governance Roadmap for the a prerequisite to support the business transformation objective
2017-2020 period is in line with the Company’s long-term prudently, through the smart and orderly risk management, as
Transformation plan. The first roadmap phase is to ‘reinforce well as in compliance with all regulation and prevailing legislation.
The Governance Roadmap 2017-2020 is:
Improving the governance

capabilities in line with
the policy improvements, Realizing effective
governance application governance on the Main
development, financial Entity and subsidiaries, and
conglomeration plans, and achieving a sustainable
GRC initiatives. financial action plan.
Phase 1 Phase 2 Phase 3 Phase 4

2017 2018 2019 2020
Reinforcing Upgrading Building Pursuing
the Foundation Governance Governance Effective
Capability Sustainability Governance
Preparing supporting Building governance

regulations for the sustainability through the
implementation of governance application
financial conglomeration implementation, sustainable
and GRC initiatives. financial action plan, and
sustainable GCG award.
GCG Implementation Phases

The first phase is the awareness of every personnel of the quality, map the current GCG practices, and identify aspects
Company to create mutual commitment that the GCG practice of needs of attention, be it annually or semiannually. The
is very important to be applied to improve the stakeholders’ GCG strengthening in the Company is also conducted through
trust and realizing sustainable business. The next phase is socialization to all stakeholders as a part of transparency and
internalization on understanding through various media, so fairness principles, by taking into account the bank secrecy
the process to adopt the implementation values shall be provisions and job secrets. Finally, reporting is the last phase
easier in daily working life. The next phase is GCG Assessment of GCG implementation, published on the Annual Report and
which is an effort to measure the GCG implementation Company’s website, accessible to all stakeholders.

Sustainable GCG Commitment
GCG Implementation Focus in 2017

Last year, the corporate governance implementation was conglomeration in order to have an excellent and competitive
focused on the strengthening of good governance system. good governance. The GCG implementation in 2017,
This year, it is focusing on how to strengthen the governance in harmony with the corporate GCG Roadmap is conducted
foundation, in particular relating to the application of financial through these 4 GCG pillars:
2017
Reinforcing The Foundation
Governance Reviewing and refining the application of financial conglomeration:

• Policies and procedures;
Structure • Governance Training Program development;
• Governance standard in accordance with BI/OJK, ASEAN CG
Scorecard, Ministry of SOEs, CGPI;
• Drafting of the master regulation for the financial conglomeration.
Governance Drafting and conducting trainings, tool, and application, as well

as performance system such as:
Process • Drafting the revision of policies and procedures;
• Drafting governance training modules;
• Formation of Task Force ASEAN CG Scorecard Team;
• Developing governance application.
Governance • Reviewing the new governance organizational structure;

• Governance training program;
Outcome • Improving the corporate governance score based on BI/
OJK Regulator, Regional Third-Party Assessment, SOEs
Assessment Standard;
• GCG Composite Score: 2
Commitment on Governance
Refining the Board of Directors and the Board of Follow-up. Furthermore, the anti-fraud commitments were
Commissioners’ Working Guidelines and Code proved by the letter of Statement of Commitment to all of
of Conduct Company’s stakeholders. This “Clean Commitment” includes
In order to follow the development of laws and regulations which being clean from bribery, corruption, collusion, nepotism, and
stipulate on Board of Directors and Board of Commissioners, illegal collection practices, mark up, and other actions, which
in particular after the issuance of OJK Regulation No. 55 of may lead to corruption, collusion, and nepotism.
2016 and OJK Circular Letter No. 13 of 2017 on the Governance
Implementation for Commercial Bank, it is necessary to Integrated Governance, Risk and Compliance (GRC)
amend or update the Board Manual as the previous working Initiative Implementation
guidelines, by establishing the Board of Directors and Board Currently, the Company is developing the application of an
of Commissioners’ working guidelines and code of conduct in integrated Governance, Risk, and Compliance, by inserting
their respective decision and working relationship between those three aspects into the component of performance
them in a Joint Decision Decree (SKB). evaluation in the headquarter office level, branches, as well
as division and working unit, therefore the overall financial
Refining the Audit Committee Organ in accordance with POJK performance achievement is a reflection of the internal control
The Company has adjusted and refined the membership that has been conducted in each organizational level.
hierarchy of the Audit Committee in order to improve the
independence aspect from the Audit Committee based on Initiative in Sustainable Financial Application
POJK Number 55/POJK.04/2016 on the Formation and Along with the Roadmap for Sustainable Finance issued by OJK,
Working Implementation Guidelines of the Audit Committee. the Company started to initiate and participate in supporting
The Corporate Audit Committee in the period of 2017 consists the sustainable development by becoming a sustainable
of six persons i.e.: finance. The conducted initiatives include the implementation
1. 1 (one) Chairman of the Independent Commissioner; of green finance products, i.e. the Company’s products and
2. 3 (three) Independent Commissioners; services that observe the environmental aspects such as in its
3. 2 (two) members of the Independent Party with expertise activities of funding, lending, and fee-based income.
in financial and banking sectors.
With the issuance of Regulation of OJK Number 51/
Strengthening the Implementation of OJK Governance POJK.03/2017 on the Sustainable Financial Application for
Guidelines and ASEAN CG Scorecard Financial Service Institutions, Public Issuers and Companies,
The Company keeps perfecting the application of the corporate the Company also started to complete various supporting
governance from time to time and adjusting it with the Roadmap policies in order to fulfill the principle of the sustainable
of Indonesian Corporate Governance and Public Company finance, which consist of: (1) Responsible investment principle;
Governance as well as ASEAN CG Scorecard principles. The (2) Sustainable business strategies and practices principle;
company has applied most of OJK’s recommendations which (3) Social and environmental risks management principle; (4)
consist of 24 recommendations in 5 aspects and 8 principles of Governance principle; (5) Informative communication principle
corporate governance. The quality of information transparency (6) Inclusive principle; (7) Priority sector development principle;
is also improved, such as through the notification of important and (8) Coordination and collaboration principle.
information regarding the General Meeting of Shareholders
(RUPS) in the Company’s website, so that the shareholders Currently, the Company has provided financial services
and investors may easily access the necessary information. without office in accordance with Regulation of OJK Number
19/POJK.03/2014 regarding Financial Services without Office
Zero Tolerance to Fraud & Zero Defect Program in Order to Create Inclusive Finance, in form of Cermat BTN
In order to guarantee the effectiveness of each effort to Saving Account based on card and mobile phone to increase
mitigate the risk of fraud, the Company keeps improving the the community’s accessibility in reaching the banking services.
awareness of BITNIZ people regarding the compliance aspect This shows that the Company has applied the inclusive finance
through continuous information dissemination of the anti- principle, in which the bank services have reached and are
fraud program and by forming the Anti-fraud Team. The anti- accessible by various community levels. Up to the end of 2017,
fraud strategies were supported by the implementation of 4 there are more than 1.2 million customers’ accounts that have
(four) pillars i.e. (a) Prevention; (b) Detection; (c) Investigation, been using the services.
Reporting, and Sanction; and (d) Monitoring, Evaluation, and

In providing the financing facilities through construction loan, Reliable Business Infrastructure”. For sure in that phase,
land ownership loan, and investment loan, potential client the Company shall need to thoroughly strengthen the
shall fulfill the requirements of Environment Impact Analysis organizational capability which prioritizes GCG principles by
(AMDAL) and other permits according to the established planning the strategic initiatives focused on the corporate
Product Policies. This is to ensure that projects funded by the governance capability improvement, by continuing and
Company have fulfilled the required regulations, both legal and improving the previous corporate governance program,
procedural ones. improving and refining loan distribution process, collection,
remedial, and other main processes, as well as applying
The paperless program is conducted by using various facilities the integrated GRC by monitoring Key Performance
to support the improvement of fee-based income, i.e. through Indicator (KPI), Key Risk Indicator (KRI), and Key Compliance
the improvement of electronic channeled services such as ATM Indicator (KCI) including the adjustment of ISO 9001: 2015.
services, Cash Deposit Machine (CDM), Internet Banking, Cash
Management, SMS Banking, and Mobile Banking. The results of governance implementation are directed to
continue improving the transparency of financial and non-
GCG Application Quality Improvement Plans in 2018 financial conditions of the Company, clients’ protection,
Along with the currently ongoing sustainable business compliance function improvement, banking issues settlement,
transformation phase, in 2018, the Company shall enter the as well as refining GCG implementation according to the
phase to “Build the Growth Momentum Based on a Stronger provisions issued by Financial Service Authority, Ministry of
Business, Human Capital Competence Development, and SOEs, and ASEAN Corporate Governance Scorecard.
Company’s GCG Assessment
The Company always implements the highest standard of Corporate

Governance by referring to the Bank Indonesia (BI) Regulation and Financial
Services Authority (OJK) Regulation, and OECD principles and ASEAN CG
Scorecard as the international standards.
Governance Self-Assessment 4. Handling of conflict of interest;

Governance self-assessment is conducted periodically on 5. Implementation of compliance function;
June and December every year. In 2017, the governance 6. Implementation of internal audit function;
implementation refers to the OJK Regulation No. 55/ 7. Implementation of external audit function;
POJK.03/2016 on Governance Implementation for Commercial 8. Risk management implementation including internal
Bank, and OJK Circular Letter No. 13/POJK.03/2017 on control system;
Governance Implementation for Commercial Bank. There 9. Provision of funds to related parties and large exposures;
are 11 (eleven) parameters as the standard governance 10. Transparency of financial and non-financial condition
implementation indicators: of banks, reports on the corporate governance
1. Implementation of duties and responsibilities of the implementation and internal reporting;
Directors; 11. Bank strategic plans.
2. Implementation of duties and responsibilities of the
Board of Commissioners; The Company’s governance self-assessment results as per
3. Comprehensiveness and execution of Committee’s duties; December 2017 are:
Company Governance Self-Assessment Results
Rating Rating Definition
BANK 2 Reflects the Company's management in implementing the Good Corporate Governance.
Adequate implementation of the Good Corporate Governance principles. If there is any
weakness to the Good Corporate Governance principles, generally the weakness is less
significant and shall be solved by normal action from the Bank’s management.
Generally, the good corporate governance principles have 2. The availability of governance policies, guidelines, and
been implemented comprehensively and structured on three regulations, as well as the clear duties, responsibilities,
governance aspects, i.e. structure, process, and governance and functions of Company’s organs support the
results. The Company has adequate governance structure and implementation effectiveness. However, there are findings
infrastructure to support the corporate governance principles of OJK, so the Company needs to improve the supervision
implementation and produces quality governance, which is quality on the Bank’s operational management activities
reflected in the following indicators: and commits to improving the business process.
1. The number, composition, criteria, Independence of the 3. The adequate functions of Compliance Task Force,
Board of Commissioners, Directors, Committees, and Internal Audit Task Force, and External Audit Task
task force have fulfilled the requirements and are in Force are reflected in the Company’s compliance with
line with the Company’s size and business complexity. the regulation and its commitment. The internal audit
However, there are members of Board of Commissioners implementation has appropriate coverage, in line with the
and Directors who have not passed the fit and proper Company’s risk level.
test by the OJK. Therefore, the Board of Commissioners 4. The risk management and internal control system
and Directors are committed to fulfill and improve the Implementation are adequate, supported with the
governance structure and infrastructure to always adapt policies, procedures, and information system to bolster
to the provision of regulators, supervisors, and follow the the Company’s operations.
bank business dynamics necessity.

5. The implementation of function, duties, and responsibilities Company’s GCG implementation in a transparent
of the Company’s organs are adequate in order to optimize and easily accessible manner for the stakeholders.
the supervisory and monitoring function. However, Nevertheless, there are still fine on the bank statements
there is an identified fraud that requires attention to BI/OJK due to operational constraints. Hence, the
for a comprehensive solution. Hence, the Board of Board of Commissioners and Directors are committed to
Commissioners and Directors are committed to solving it. improving the governance outcomes in order to maintain
6. The bank’s strategic business plan is carried out consistently. business continuity.
7. Disclosure of financial and non-financial conditions, The development of the Company’s GCG Self-Assessment
product information, annual reports, and reports on result in the last 4 years can be seen as follows:
Table: Governance Self-Assessment Score 2014-2017
2014 2015 2016 2017
GCG Self-Assessment Score 2 2 2 2
In addition to the Self-Assessment, the Company has Guidelines for Public Corporate Governance in
consistently conducted third-party assessment to obtain accordance with OJK Regulation
second opinion on the quality of GCG implementation in order Guidelines for Public Corporate Governance are set forth in the
to continuously improve the quality of GCG implementation. OJK Regulation No. 21/POJK.04/2015 and OJK Circular Letter
No. 32/SEOJK.04/2015 on Guidelines of Public Corporate
Governance, which consists of 5 (five) aspects, 8 (eight)
principles, and 25 (twenty-five) recommendations of aspects
implementation and good corporate governance principles.
The implementations in 2017 are as follow:
Company’s Compliance with the Guidelines of Public Corporate Governance
No Recommendation Status Company’s Compliance
Aspect 1: Good Relationship between the Public Company and the Shareholders in Ensuring the Rights of Shareholders
Principle 1. Increasing the Value of GMS
1 Public Company has voting methods or Comply 1. The voting procedure in the decision making of a GMS agenda shall be conducted by close
procedures both openly or closely, that voting, as stated in the GMS Code of Conduct, which is disclosed to the public on the
emphasizes on the independence and Company’s website.
interests of shareholders. 2. Voting procedure maintains independence or the freedom of shareholders.
In 2017, the Company held two GMS, an Annual GMS on March 17, 2017, and Extraordinary
GMS on December 28, 2017. Decisions in the Board of Commissioners’ Meeting are done
through deliberation. In the case that deliberation could not be achieved, voting is conducted.
The decision is made if approved by more than ½ (half) of all the shares with voting rights who
attends the meeting.
1. The voting is conducted with the mechanism as follows:

2. The shareholders or their proxies who gives abstain vote or did not agree will be asked to
show their hands and handed their vote card to the officer.
3. The Meeting Officer will collect all the vote card from shareholders or proxies, who then will
hand the cards over to the Notary to be counted.
4. Number of abstain and disagree votes counted as valid votes voiced at the Meeting, and the
difference is the amount of voice who agree.
5. The shareholders with rights to vote but abstain is considered to voice their vote with the
majority of the shareholders who votes their voice.
6. Notary will count and submit the results of voting on the agenda of Meeting submitted.
2 Every member of Directors and Board Comply In the event of GMS, the Company always complies with all prevailing rules and legislation. In
of Commissioners of Public Company the Annual GMS dated March 17, 2017, all members of Directors and Board of Commissioners,
attends the Annual GMS. including the Members of Audit Committee attended the Annual GMS.
Aspect 1: Good Relationship between the Public Company and the Shareholders in Ensuring the Rights of Shareholders
Principle 1. Increasing the Value of GMS
3 The Minutes of GMS is available in the Comply The Company provides the Minutes of GMS in Indonesian and English on the Company’s website
Public Company’s website at least for 1 www.btn.co.id on Investor Relation menu, in prints, and IDXnet and OJK e-reporting, dated March
(one) year. 17, 2017, for the Annual GMS of Fiscal Year 2016, and December 28, 2017, for Extraordinary GMS.
Principle 2. Improving the Quality of Public Corporate Communication with the Shareholders or Investors.
4 Public Company has a communication Comply The Company already has a communication policy with shareholders or investors as referred
policy with the shareholders or investors. to in the Investor Relations Policy which includes the analyst meeting, public expose, investor
meeting, Annual Report, etc.
5 Public Company expresses the public Comply The Company has disclosed the communication policy to the shareholders or investors on
corporate communication with the the Company’s website (www.btn.co.id) on the Investor Relation - Investor Relation Policy
shareholders or investor on the Website. Guidelines menu
Aspect 2: Duties and Roles of Board of Commissioners
Principle 3. Strengthening the Membership and Composition of the Board of Commissioners
6 Determine the number of Board of Comply The determination of the number of members of the Board of Commissioners has taken into
Commissioners, taking into consideration consideration the Company’s conditions, including the characteristics, capacity, size, achievement
the condition of Public Company. of the objectives, and the fulfillment of the bank’s business requirements in accordance with
the provisions of the Regulator. Number of Members of Board of Commissioners currently is
adequate and in line with the OJK Regulation No. 33/POJK.04/2014 on the Board of Directors
and Board of Commissioners of Listed Companies or Public Companies, or equal to the number
of Directors.
7 Determine the member’s composition Comply The composition of members of Board of Commissioners takes into account the diversity
of Board of Commissioners, taking into of required skills, knowledge, and experience as disclosed in the Diversity of Board of
account the skills diversity, knowledge, Commissioners’ Composition on this Annual Report.
and experienced needed.
Principle 4. Improving the Execution of Duties and Responsibilities of the Board of Commissioners.
8 Board of Commissioners has their own Comply The Board of Commissioners has a self-assessment policy as stated in the Joint Decree on the
self-assessment policy to evaluate the Working Procedures of the Board of Commissioners and Directors dated November 24, 2017, on
Board of Commissioners’ performance. Chapter IV - Performance Evaluation. The chapter is described in the performance assessment of
the Board of Commissioners on this Annual Report and the Company’s website (www.btn.co.id)
in Investor Relation - GCG - Cross-reference ASEAN CG Scorecard - SKB menu.
9 Self-assessment policy to evaluate Board Comply The self-assessment policy to evaluate Board of Commissioners’ performance can be referred to
of Commissioners’ performance is stated in the Board of Commissioners’ Performance Assessment on this Annual Report.
on the Public Company’s Annual Report.
10 Board of Commissioners has their own Comply The Company has a policy in the Board of Commissioners’ Code of Conduct in the Board of
policy related to resignation of member Commissioners’ Decree No. 01/DEKOM-BTN/2017 on resignation and dismissal of Board of
of Board of Commissioners if involved in Commissioners’ member if the member is involved in actions that may harm the Company and/
financial crime. or Nation and if the member is found guilty by the court ruling which has permanent legal power.
11 Board of Commissioners or Committee Comply Appointment and dismissal of the Company’s Directors are performed based on the
who carries out function of Nomination professionalism and GCG principles. As a State-Owned Enterprise (SOE), the Board of Directors’
and Remuneration compiles succession succession policy refers to the Minister of State-Owned Enterprises Regulation No. PER-03/
policy in the process of Director’s member MBU/02/2015 on the Requirements and Procedures to Appoint and Dismiss Members of the
Nomination Board of Directors of State-Owned Enterprises. In addition, as a public company, the Company’s
policies also refer to the Financial Services Authority Regulation No. 33/POJK.04/2014 on the
Board of Directors and Board of Commissioners of Listed Companies or Public Companies. The
description on succession policy in the process of Nomination of the Company’s Director is
explained further on the Succession Policy of Directors in this Annual Report.

Aspect 3: Function and Roles of Board of Directors.
Principle 5. Strengthen the Membership and Composition of the Directors.
12 Determine the member of Directors Comply The determination of the number of members of the Board of Directors has taken into
taking into account the condition of Public consideration the Company’s conditions, including the characteristics, capacity, size, achievement
Company as well as effectiveness in of the objectives, and the fulfillment of the bank’s business requirements in accordance with the
decision-making. provisions of the Regulator. The Directors’ members have complied with the OJK Regulation No.
33/POJK.04/2014 on the Board of Directors and Board of Commissioners of Listed Companies or
Public Companies.
13 Determine the composition of Board Comply The composition of members of Directors takes into account the diversity of required skills,
of Directors, taking into account the knowledge, and experience as disclosed in the Diversity of Board of Directors’ Composition on
diversity of skills, knowledge, and this Annual Report.
experience needed.
14 Directors’ member who oversees Comply In 2017, Directors overseeing accounting or financial sectors have experience in the field of finance
accounting or financial sectors must have with information as follows:
the expertise and/or knowledge in the 1. Education
accountancy. ›› Bachelor of Machine Engineering ITB
›› Master in Accounting and Finance, University of Birmingham, UK
2. Work Experience
›› Treasury Manager of Hong Kong Branch PT Bank Pembangunan Indonesia (Persero)
(1992-1995).
›› Deputy General Manager of Hong Kong Branch PT Bank Pembangunan Indonesia (Persero).
(1995 – 1996)
›› General Manager (CE) of Hong Kong Branch PT Bank Pembangunan Indonesia (Persero).
(1996 – 1997)
›› Deputy Head of Financial Affairs and Bank Services PT Bank Pembangunan Indonesia (Persero).
(1998 – 1999)
›› General Manager (CEO) of Singapore Branch PT Bank Mandiri (Persero) Tbk.
(1999 – 2001)
›› Department Head UP3 Financial Institution & Overseas Network (FION) Group
PT Bank Mandiri (Persero) Tbk. (2001 – 2002)
›› Department Head of Correspondent Banking PT Bank Mandiri (Persero) Tbk.
(2002 – 2003)
›› Department Head of FI Credit Risk and Product Development PT Bank Mandiri (Persero) Tbk.
(2003 – 2006)
›› Department Head Loan Recovery II group, and Senior Recovery Manager Asset
Management and Disposal Department PT Bank Mandiri (Persero) Tbk (2006)
›› Authority Holders of Loan Breaking (PKMK), one level with Group
›› Head for International Banking and Capital Market Services Group (IBCMS)
PT Bank Mandiri (Persero) Tbk (2009 – 2010)
›› Group Head IBCMS Group PT Bank Mandiri (Persero) Tbk (2009 – 2010)
›› Bank Mandiri Europe Ltd. (BMEL) PT Bank Mandiri (Persero) Tbk (2010-2013)
The certification owned by the Directors overseeing finance/accounting can be referred to on the
Director’s Competence Development on this Annual Report.
15 Board of Directors has their own Comply Directors has their own self-assessment policy set forth in Joint Decree on the Working
self-assessment policy to evaluate the Procedures of the Board of Commissioners and Directors dated November 24, 2017, on Chapter
Directors’ performance. IV - Performance Evaluation. This assessment system is summarized as the Key Performance
Indicator (KPI) as described in the Directors’ Performance Assessment on this Annual Report and
the Company’s website (www.btn.co.id) in Investor Relation - GCG - Cross-reference ASEAN CG
Scorecard - SKB menu.
16 Self-assessment policy to evaluate Board Comply The self-assessment policy to evaluate Board of Directors’ performance can be referred to in the
of Directors’ performance is stated on the Directors’ Performance Assessment on this Annual Report.
Public Company’s Annual Report.
17 Board of Directors has their own policy Comply The Company has a policy regarding the Board of Commissioners’ Code of Conduct in the
related to resignation of member of Board Directors’ Decree No. 07/DIR/K D/CMPD/2017 related to resignation and dismissal of Board
of Directors if involved in financial crime. of Directors’ member if the member is involved in actions that may harm the Company and/or
Nation and if the member is found guilty by the court ruling which has permanent legal power.
Aspect 4: Stakeholders’ Participation
Principle 7. Improving the good corporate governance aspects through the stakeholders’ participation
18 Public Company has policy to prevent Comply The Company has a policy related to insider trading, as stipulated in Directors Regulation No. 39/
insider trading. PD/CSD/2011 on the Policy Guidelines for Investor Relations as stated in the Company’s website
(www.btn.co.id) in the Investor Relations - Investor Relations Policy Guidelines menu.
19 Public Company has policy for anti- Comply The anti-fraud implementation in the Company is stipulated by the Board of Directors’ Circular
corruption and anti-fraud. Letter No. 22/DIR/IAD/2014 on Anti-Fraud Strategies Standard Operating Procedure. As a
guideline in the implementation of Gratification Control, as an initiative of the national anti-
corruption program, the Company issued a guideline on gratification control in the Directors’
Circular Letter No. 68/DIR/CMPD/2017.
20 Public Company has policy on selection Comply The Company has a policy regarding vendor management, as stipulated in Directors’ Regulation
and improvement of the suppliers/ No. 13/PD/PGSD/2015 and Directors’ Circular Letter No. 47/DIR/PGSD/2015. Overall, the policy
vendors ability. covered the criteria in selecting vendors, transparent procurement methods, vendor performance
evaluation, and vendor’s track records.
Improvement of vendors/suppliers ability is conducted by guidance through coordination meeting,

monitoring, and vendor’s performance evaluation.
Implementation of vendor selection policy is conducted by managing the Bank’s Client List
for database in procurement through methods of direct appointment / direct election / direct
selection. The Directors Decree and Circular Letter stipulate the Standard Operating Procedure
(SOP) for transparent procurement mechanism through auction/direct appointment/direct
selection in accordance with the vendor’s contract. With the implementation in place, it is expected
the continuity of supply in the company is guaranteed.
21 Public Company has policy on creditor’s Comply Policy on creditor rights fulfilments is the guidelines to ask for loan from the creditor. The purpose
right fulfillment. of the policy is to safeguard the fulfillment of rights and maintain the trust of creditor to the Public
Company. The policy includes the consideration of agreements, as well as follow up in fulfilling the
Public Company’s responsibility to the creditor. The creditors’ basic rights policy, among others, are:
1. Receive principal and interest payment at the agreed time.
2. Rights to any fine on the late principle payment and interest payment.
3. Ask for explanation, information, and documents, as well as auditing the Company’s
accountancy.
In 2017, there are two Company’s creditors, i.e.: Bilateral Loan Creditor and Bonds Creditor.
22 Public Company has policy on Comply The Company has policy on Whistleblowing System implementation as stipulated in Circular Letter
whistleblowing system. No. 21/DIR/IAD/2014 on Standard Operating Procedure of Company Whistle Blowing System,
which covered types of violations to be reported through whistleblowing system, procedures of
complaint, protection and confidentiality of the reporter, complaints handle, parties who handle
the complaints, and results and follow-up of the complaints, in accordance with OJK Regulations.
Whistleblowing System policy disclosure in 2015 is described in the Whistleblowing System on

this Annual Report.
23 Public Company has policy on long-term Comply Long-term incentive for Directors and Board of Commissioners is stipulated in the
incentive for the Directors and employee. Directors’ Regulation No. 02/PD/HCD/2017 on the Remuneration of Directors and Board
of Commissioners, and Directors’ Circular Letter No. 57/DIR/HCD/2016 on Governance
Implementation on Remuneration, as stated on the part of Bank BTN Governance
Implementation on Remuneration in this Annual Report. The Directors Regulation was a
ratification of the Regulation of Ministry of State-Owned Enterprises No. 04/MBU/2014
on Guidelines on Remuneration of Board of Directors, Board of Commissioners, and SOE
Supervisory Board; and POJK No. 45/POJK.03/2015.
Since 2009, the Company has conducted the long-term incentive in the form of MESOP for
Directors and Employee as explained further in the Share Option on this Annual Report.

Aspect 5: Information Disclosure
Principle 8. Improving the Information Disclosure.
24 Public Company utilizes Comply The Company continuously strives to improve the quality of information disclosure to stakeholders
the information technology more broadly through information technology. In addition to the Company’s website, the Company uses social
than the Website as a disclosure medium. media, namely YouTube (officialbankbtn), Facebook (socialmedia@btn.co.id), Twitter (socialmedia@
btn.co.id), Instagram (officialbankbtn) and LinkedIn (PT Bank Tabungan Negara (Persero) Tbk).
The Company also updates the information to the shareholders through email, conference call,
and Capital Market TV, IBCM Channel of Indonesia Stock Exchange, and site visit by investors
to Company Branch Offices, Non-Deal Roadshow, one-on-one meeting, and Analyst Meeting
Public Expose.
25 Public Company Annual Report discloses Comply The Company has disclosed information about shareholders with 5% (five percent) or more
the benefits for shareholders in Public shares of the Company to the Regulator, i.e. OJK and BEI. In this Annual Report, the information
Company at least 5%, as well as the disclosed can be referred to in the part Information to the Investor.
disclosure of the final beneficial of
shareholders in Public Company,
especially through the main shareholders
and the controlling shareholder.
GCG Rating - CGPI Award 2016

The Company continuously follows the rating and survey 2. Observation
of Corporate Governance Perception Index, hereinafter The observation is performed through the instruments
abbreviated as CGPI annually, which is managed by the clarification and documents comprehensiveness owned
Indonesian Institute for Corporate Governance (IICG). CGPI is by the company through the executive exposure and
a research and rating program of corporate governance quality discussion of corporate organs.
assessment, that has the following stages of assessment:
1. Instrument and Document Analysis The stage is carried Company scored a 86.86 CGPI in 2017, as ‘The Most
out by these activities: Trusted Company’. The CGPI assessment in the last 4 years are
a. Self-Assessment; as follow:
b. Document Assessment.
GCPI Score 87.00 86.86 Very Trusted

2014-2017 86.59 Very Trusted
Company
86.50 Company
2017
86.00
2016 85.75 Very Trusted
85.50 Company
2015
2014 84.94 Very Trusted
85.00
Company
84.50
84.00
ASEAN Corporate Governance Scorecard

(ACGS)
The GCG Assessment is based on the ASEAN Corporate Governance Scorecard, which is reflected in the assessment
Governance Scorecard standard. This assessment is result 2017. The Company scored a 101.74, with the predicate
conducted by OJK and the Indonesian Institute for Corporate “Leadership in Corporate Governance”, and predicate “The Best
Directorship (IICD), who assess the GCG practices by referring Financial Sector” at the 9th IICD Awards. The description of the
to the public. The Company is considered successful in applying Scorecard result is as follow:
some governance practices, in line with the ASEAN Corporate
Principle Score of 2017
Shareholders’ Right 10.00
Equivalent Treatment of Shareholders 11.67
Stakeholders’ Role 10.00
Disclosure and Transparency 23.78
Responsibilities of the Board of Commissioners 37.30
Bonus 11.00
Penalty -2
Total 101.74
The Company’s ACGS score in the last 4 years are:

The following graph presents the Company’s CG Score
comparison with an average of 100 listed companies (based on
the largest market cap) based on ASEAN CG Scorecard 2017.
ACGS Score 120.00

2014 - 2017 101.74
100.00
Average of 100
80.00
Issuers 71.96
BBTN 60.00
40.00 37.30
23.78 25.75
20.00 11.67 10.00 18.93
10.00 9.62 7.94
7.66
0
A B C D E Final CG Score

The graph shows that the Company’s CG Scorecard results in

2017 are still above average. Final CG Score obtained by all listed
issuers based on the largest market capitalization (n=100),
either based on a principle score or overall score. For the last 2
years since 2016, the Company is on level 5 with score more
than 100.
The total score or final score for Corporate Governance

performance obtained from the assessment result will be
interpreted as follows:
No. Score Point Company’s Governance Performance Interpretation

1 60,00-69,99 Level 1 Minimum Requirement
2 70,00-79,99 Level 2 Fair
3 80,00-89,99 Level 3 Good
4 90,00-99,99 Level 4 Very Good
5 100 or more Level 5 Leadership in corporate governance
The description of Company Compliance Statement on

Corporate Governance Guidelines based on ASEAN CG
Scorecard is as follows:
Level/ Comply
No Item Corporate Governance Standard Criteria Status Description
Level 1
Part A Rights of Shareholders
A.1 Basic Shareholder Rights Comply -
A.2 Right to participate in decisions concerning fundamental Comply -

corporate changes
A.3 Right to participate effectively in and vote in general shareholder Comply -

meetings and should be informed of the rules, including voting
procedure, that governs general shareholder meeting
A.4 Markets for corporate control should be allowed to function in an Comply -

efficient and transparent manner
A.5 The exercise of ownership rights by all shareholders, including Comply -

institutional investors, should be facilitated
Part B Equitable Treatment of Shareholders
B.1 Shares and voting rights Comply -
B.2 Notice of AGM - 1. Disclosure of the profile of the candidates for the members
of Board of Commissioners and Directors are not yet
available at the GMS;
2. GMS invitation does not contain information related to the
External Auditor to be appointed at the GMS;
3. The Letter for Power of Attorney of the absent shareholders
from the GMS is not attached to the GMS Summoning.
B.3 Insider trading and abusive self-dealing should be prohibited Comply -
B.4 Related party transactions by directors and key executives Comply -
B.5 Protecting minority shareholders from abusive actions. Comply -
Level/ Comply
Level 1
Part C Role of Shareholders
C.3 The rights of stakeholders that are established by law or through Comply -
mutual agreements are to be respected.
C.3 Where stakeholder interests are protected by law, stakeholders Comply -

should have the opportunity to obtain effective redress for
violation of their rights.
C.3 Mechanisms for employee participation should be permitted to Comply -

develop.
C.4 Stakeholders including individual employee and their Comply -

representative bodies, should be able to freely communicate their
concerns about illegal or unethical practices to the Board and their
rights should not be compromised for doing this.
Part D Disclosure and Transparency
D.1 Transparent Ownership Structure Comply -
D.2 Quality of Annual Report - The Company has not disclosed the remuneration of each
member of the Directors and Board of Commissioners.
D.3 Disclosure of Related Party Transactions (RPT) - The Company has not disclosed any policies related to the review
and approval process from the Related Parties that are material
D.4 Directors and Commissioners Dealings in Shares of Comply -

The Company
D.5 External Auditor and Auditor Report Comply -
D.6 Medium of Communications Comply -
D.7 Timely Filing/Release of Annual/Financial Reports Comply -
D.8 Company website Comply -
D.9 Investor Relations Comply -
Part E Responsibilities of The Board
E.1 Board Duties and Responsibilities Comply -
E.2 Board Structure Comply -
E.3 Board Processes Comply -
E.4 People on the Board Comply -
E.5 Board Performance - The Company has not disclosed the individual assessment and
performance appraisal process of the Board of Commissioners,
including its assessment process and criteria.
On Bonus rating, some of the items that can be fulfilled by the

Company are as follows:
Level/ Comply
Level 2
(B)C.1.1. The company adopts an internationally recognized reporting Comply -
framework for sustainability (i.e. GRI, Integrated Reporting, SASB)
(B)D.1.1. The audited annual financial report /statement released within 60 Comply -
days from the financial year-end
(B)E.2.2. The Nominating Committee undertake the process of identifying the Comply -
quality of directors aligned with the company’s strategic directions
(B)E.6.1. The company has a separate board level Risk Committee Comply -

Corporate Governance Structure,

Mechanism, and Policies
Corporate Governance Structure and Mechanism and authorities in accordance with rules and legislation and
In accordance with Law No. 40 of 2017 on Limited Liability Articles of Associations.
Company, it is stated that the Company Organ consists of a
General Meeting of Shareholders (GMS), the Board of Directors, Company’s Organ is established to ensure that the
and the Board of Commissioners. GMS, Board of Directors, and implementation of the Company’s governance shall be done
Board of Commissioners respect their duties, responsibilities, effectively with clear roles and responsibilities as to create check
and balance control mechanism.
Main Organ General Meeting

of Shareholders
(GMS)
Board of Sharia Supervisory

Board of Directors
Commissioners Board
Board of
Corporate
Commissioners’
Secretary
Secretary
External Audit
Risk Management Internal Audit

Audit Committee
Committee Task Force (SKAI)
Assets and
Liabilities
Committee (ALCO)
Risk Monitoring Risk Management
Committee Task Force (SKMR)
Loan Committee *)
Credit Policy
Committee
Remuneration
Compliance
and Nomination
Task Force (SKK)
*) Loan Committee is established Committee
Information
in the Company’s organizational Technology Steering
structure based on the Directors’ Committee (KPTI)
Circular Letter No. 03/KD/DIR/
SIPD/2017 dated April 20, 2017, Other Task Forces
on Head Office Organizational
Human Capital
Structure. The policies related to
Committee
Loan Committee are currently
under approval by the Board of Sharia Business
Directors. At the operational level, Unit (UUS)
the Loan Committee functions
Product Committee
under the implementation of Supporting Organ
Board of Directors’ Meetings in
charge of loan.
The Company’s governance is implemented in an integrated in the Board of Commissioners’ Joint Decree No. 01/KOM-
structure consists of 3 (three) aspects of governance, i.e. BTN/2017 dated August 10, 2017. The Conduct acted
structure, process, and outcome. The Company conducts these as the Board Manual renewal which was the previous
three aspects to ensure the availability of adequate governance guidelines;
structure and infrastructures, to maximize the effectiveness of 3. The Board of Directors’ Code of Conduct is ratified in the
governance implementation process, and to promote quality Directors’ Decree No. 07/DIR/KD/CMPD/2017 dated
governance outcome to fulfill the hope of all stakeholders. September 28, 2017. The Conduct acted as the Board
Manual renewal which was the previous guidelines;
Company’s Governance Policies 4. Working Relationship of the Director and Board of
The governance mechanism is a set of rules to implement GCG Commissioners is ratified in the Board of Commissioners’
that govern the relationship between the organs inside the Joint Decree No. 02/DEKOM-BTN/2017 and Directors’
Company so that the duties, responsibilities, and authorities Decree No. 01/DIR-BTN/2017 dated November 24, 2017;
are clear and in accordance with the prevailing rules and 5. The Code of Conduct is ratified in the Directors’ Regulation
regulations, GCG principles, healthy business ethics, and best No. 16/PD/CMPD/2015;
practices. The Company has the Governance Mechanism 6. Gratification Control Implementation is ratified in the
that is reflected in the main policies of GCG principles (soft- Circular Letter No. 45/DIR/CMPD/2015;
structure GCG). This mechanism shall be the living document 7. Conflict of Interest Handling Guidelines is ratified in
for all and every part of organization of the Bank. the Directors’ Regulation No. 31/PD/CSD/2010 dated
1. The GCG guidelines is ratified by the Directors’ Decree December 22, 2010;
No.06/DIR/DK/2009 dated May 27, 2009; 8. Whistle Blowing System (WBS) and Anti-Fraud are ratified
2. The Board of Commissioners’ Code of Conduct is ratified in the Directors’ Circular Letter No. 55/DIR/CSD/2012.
Relations in Structure, Mechanisms, and Results of Governance
Governance Governance Governance

Structure Process Result
1. The number and composition 1. Implementation of function, 1. The Company’s performance
of the Board of Directors, duties, and responsibilities is positive, including
Board of Commissioners, of the Company’s organs profitability, efficiency, and
committees and task are adequate in order to capital;
forces are sufficient and optimize the supervisory and 2. Disclosure of financial and
in accordance with the monitoring function; non-financial condition as
Company’s needs. 2. Disclosure of affiliate well as other important
2. Duties, responsibilities, and transaction and conflict of information are supported by
functions of the Company’s interests are performed by the Company’s informative
organs are adequate and the Directors and Board of and easily accessible website
established in the available Commissioners; for the Stakeholders;
Policies, Guidelines, Code 3. Provisions of fund and big 3. Sufficient compliance and
of Conducts, procedures, fund to the related party risk management as well as
and information system to shall be conducted through follow-up on the audit result.
support the operation. loan approval at arm’s 4. Bank Business Plan shows
length; the sustainable Bank’s
4. Risk management is well growth.
implemented so that the
risk that may arise may be
managed.

General Meeting of Shareholders (GMS)
As the Company’s organ with the Information on Major Shareholders and Controllers
Shareholder is an individual or legal entity that is legally
authority that is not granted to the Board registered as a shareholder in the Company’s Shareholder
of Commissioners or Directors, the GMS Register As the owner of the capital, the shareholder shall
carry out their rights and responsibilities based on the
is a forum for the shareholders to make fairness principles, in line with the Articles of Associations
decisions and participate in the Company’s and prevailing legislation, with due regard to the Company’s
business continuity.
management.
As a public State-Owned Enterprise, the Company’s largest
shareholding is the Republic of Indonesia of 60%, which places
the Republic of Indonesia as the Controlling Shareholder. In
addition, the Republic of Indonesia also owns 1 (one) Bicolor
Series A Share, which grants special privileges to the owner
simultaneously as the Controlling Shareholder. These privileges
are not granted to the other shareholders. The rest of 40% of
Company’s shares is owned by the public. Per December 31,
2017, there are 10,590,000,000 (ten billion five hundred and
ninety million) shares, which consists of 1 (one) Bicolor Series
A Share and 10,589,999,999 (ten billion five hundred eighty-
nine million nine hundred ninety-nine thousand nine hundred
and ninety-nine) Series B Shares.
Authorities and Responsibilities of the 6. Right to transfer, waive the rights, or make a guarantee
Shareholders in GMS of the debt of all or more of the Company’s assets
The Company has 2 (two) types of shares, i.e. Bicolor Series A over 50% (fifty percent) of the total net worth of the
Share and Series B Share at the amount of Rp500 (five hundred Company, in either one or several transactions, stand-
Rupiah) per share. The shareholder of Bicolor Series A Share is alone or related, must receive the approval of the GMS.
the controlling shareholder and has the privileges as follow:
1. The right to approve matters in GMS such as: GMS has the authorities, namely to:
›› Approval of the amendment of Articles of Association; 1. Appoint and dismiss members of the Board of
›› Approval of Capital changes; Commissioners and Directors based on policies/
›› Approval of Appointment and Dismissal of members of guidelines set by the shareholders;
Directors and Board of Commissioners; 2. Provide approval/decision necessary to maintain the
›› Approval related to mergers, consolidations, acquisitions, interests of the Company’s long-term and short-term
segregation, and dissolution; business in accordance with the rules and legislation and/
›› Approval of remuneration of members of the Directors or Articles of Association;
and Board of Commissioners; 3. Provide annual report approval, including approval of
›› Approval of the transfer of assets, which based on financial statements and supervisory duties of the Board
the Articles of Association shall be subjected to the of Commissioners in accordance with rules and legislation
approval of the GMS; and/or Articles of Association;
›› Approval on the participation and reduction of the 4. Set the targets and assess the performance of the
percentage of equity participation in other companies, Directors and Board of Commissioners;
which based on the Articles of Association shall be 5. Establish the remuneration of the Board of Commissioners
subjected to the approval of the GMS; and Board of Directors;
›› Approval of the profit utilization; 6. Appoint the external auditor;
›› Approval of non-operational long-term investment 7. Approve or reject Company’s Long-Term Plan (RJPP) and
and funding, which based on the Articles of Association Work Program and Budget (WP&B).
shall be subjected to the approval of the GMS; 8. Make decisions through an open, fair, and accountable
2. Right to propose candidates for members of the Directors process;
and Board of Commissioners; 9. Implement good corporate governance in accordance
3. Right to propose the agenda of the GMS; with their authorities and responsibilities.
4. Right to request and access the Company’s data and
documents. The duties and responsibilities of Shareholders, among others:
1. To adhere to the Articles of Association and rules and
In addition to the special privileges for Bicolor Series A Share, legislation;
as long as not otherwise specified by the Company’s Articles 2. To not conduct Bank’s supervision and management, that
of Association, the holders of Bicolor Series A Share and is the responsibilities of the Board of Commissioners and
Series B Shares have the same right, among others: Directors;
1. Right to attend, submit opinions, and vote in the GMS 3. To not take advantages of the Bank for personal, family,
based on one share, which entitles the holder to issue Bank, or business group reason, in a passion and manner
one vote; contradictory to the rules and legislation, and sound
2. Right to obtain information about the company in a timely, practices in the banking industry;
correct, and orderly manner, except for confidential matters; 4. To evaluate the performance of Board of Commissioners
3. Right to receive the Company’s profit share designated and Directors by the GMS mechanism.
for the Shareholders in the form of dividends and other
profit sharing, in proportion to the number of shares held; GMS 2017
4. Right to obtain a full explanation and accurate information The GMS of Company refers to the Law of Limited Liability
on the procedures to be met regarding the conduct of Company, the Financial Services Authority Regulation (POJK)
the GMS; No. 32/POJK.04/2014 on the Planning and Holding GMS of
5. In the case of more than one type and classification of Public Limited Companies and its amendment through the
shares in the Company, each shareholder is entitled to POJK No. 10/POJK.04/2017 on the POJK Amendment No. 32/
vote according to the type, classification, and number of POJK.04/2014.
shares held. Each shareholder is entitled to be treated
equally on the basis of the type and classification of the In accordance with the Article 21 on the Company’s Articles
shares held; of Association, the GMS consists of (1) Annual GMS, which

must be held within 6 (six) months after the year end and (2) Phase of Annual GMS 2017 for the Fiscal Year 2016
Extraordinary GMS, which may be held at any time based on The phase of Annual GMS is performed in line with the POJK
the needs and interests of the Company. In 2017, Company No. 32/POJK.04/2014 on the Planning and Holding GMS of Public
has conducted 1 (one) Annual GMS for the Fiscal Year 2016 on Limited Companies and its amendment through POJK No. 10/
March 17, 2017, and 1 (one) Extraordinary GMS on December POJK.04/2017 on the amendment of POJK No. 32/POJK.04/2014
28, 2017. and the Company’s Articles of Association as follow:
Phase of Annual GMS
Notification of GMS announcement GMS summoning

GMS to the OJK on official letter and (no later than 21 days before GMS)
newspaper
(no later than 14 days before
the GMS summoning)
Letter sent to OJK, Letter No. 51/ Advertisement on Bisnis Advertisement on Bisnis
DIR/CSD/II/2017 dated February Indonesia and Investor Indonesia and Investor
1, 2017, with copies to Indonesia Daily newspaper, BEI Daily newspaper,
Stock Exchange, KSEI (Indonesia and OJK website, on Company’s website,
Central Securities Depository), February 8, 2017 BEI and OJK website, on
and PT Datindo Entrycom. February 23, 2017
Minutes of GMS Announcement Annual GMS

(no later than 30 days after GMS) of Summary of March 17, 2017
Minutes of GMS
(no later than 2 days after GMS)
Letter sent to OJK, Letter No. 213/ Advertisement on Bisnis

CSD/IR/IV/2017 dated April 11, Indonesia and Investor
2017, published on the Company’s Daily newspaper,
website, BEI and OJK website on Company’s website,
April 11, 2017 BEI and OJK website, on
Monday, March 20, 2017
To give chances to the individual and institution shareholders GMS Quorum

to participate actively in using their rights as shareholders, Attendance quorum and GMS resolution on the decisions made
Company makes GMS announcement and GMS summoning in the GMS shall be performed if the GMS is attended by the
within each term, at least on 1 (one) Indonesian newspapers Bicolor Series A shareholder and other shareholders, and/or their
circulated nationally, the Indonesia Stock Exchange website legitimate representatives that represent more than ½ (one half)
and the Company’s website both in English and Indonesian. of the total shares with voting rights, and the decision is approved
In addition to GMS, the Company published the summary of by the Bicolor Series A shareholder and other shareholders and/
Minutes of GMS no later than 2 (two) days after the GMS, or their legitimate representatives that represent more than ½
through at least 1 (one) Indonesian newspapers circulated (one half) of the overall shares with voting rights who attended
nationally, the Indonesia Stock Exchange website and the the GMS. The GMS is held fairly and transparently, as stipulated
Company’s website both in English and Indonesian. in the Financial Services Authority Regulation (POJK) No. 10/
POJK.04/2017 on the amendment of POJK No. 32/POJK.04/2014
and the Company’s Articles of Association.
1. Annual GMS 2017 ›› Table: Attendance of Board of Commissioners,

›› Annual GMS Directors, and Audit Committee in Annual GMS 2017
The Company held the Annual GMS on: The meeting is chaired by Mr. I Wayan Agus Mertayasa,
Day/Date : Friday / March 17, 2017 as the President Commissioner/Independent
Time : 14.56 – 17.44 PM Commissioner in line with the Board of Commissioners’
Place : Gedung Menara BTN, 6th floor Meeting decision dated March 17, 2017, which is
Jl. Gajah Mada No. 1 Jakarta Pusat -10130 delivered through letter of the Company’s Board of
Commissioners No. 24/KOM/BTN/III/2017 dated
March 3, 2017 on the Chairman of AGMS 2017 of
PT Bank Tabungan Negara (Persero) Tbk, and attended
by all members of the Board of Commissioners and
Directors, and majority of the members of Audit
Committee members, as follow:
No Name Position Attended Not Attended Description

1 Mr. I Wayan Agus Mertayasa President Commissioner/Independent Commissioner √ - -
2 Mr. Kamaruddin Sjam Independent Commissioner √ - -
3 Mr. Arie Coerniadi Independent Commissioner √ - -
4 Mr. Lucky Fathul Aziz Hadibrata Independent Commissioner √ - -
5 Mrs. Sumiyati Commissioner √ - -
6 Mr. Maurin Sitorus Commissioner √ - -
7 Mr. Iman Sugema Commissioner √ - -
8 Mr. Maryono President Director √ - -
9 Mr. Mansyur Syamsuri Nasution Director √ - -
10 Mr. Iman Nugroho Soeko Director √ - -
11 Mr. Adi Setianto Director √ - -
12 Mr. Sulis Usdoko Director √ - -
13 Mr. Oni Febriarto Rahardjo Director √ - -
14 Mrs. Handayani Director √ - -
15 Mr. Catur Budi Harto Director √ - -
16 Mr. Waldy Gutama Independent party as a member of Audit Committee √ - -
17 Mrs. Sondang Gayatri Independent party as a member of Audit Committee √ - -
18 Mr. Rachmat Supratman Independent party as a member of Audit Committee √ - -
›› Shareholders Attendance except for the seventh agenda which was a report.
The meeting was attended by 8,574,506,637 shares, Question and answer session is provided after the
including the Bicolor Series A share, with voting rights equal agenda explanation in the Meeting and before the
to 80.97% of the total shares with voting rights, issued by decision making begin.
the Company.
›› Decision Making Mechanism in the Meeting
›› Opportunity to Ask Questions and/or Submit Opinion Decision in the Meeting is done by deliberation. If
Opportunity for the Shareholders or their the deliberation did not result in consensus, then the
Representatives to submit questions and/or provide decision making is conducted by voting. The first to the
opinion is opened on every agenda of the Meeting, sixth Meeting agenda was carried out by open voting,

in which the Shareholders or the Representatives electronic vote counting. There was no voting in the
voted or abstain, and those who did not agree shall seventh Meeting agenda because it was a report.
raise their hands and submit their voting cards to
the officer. The eighth Meeting agenda was closed ›› Independent Voting Counter
by the closed vote in which the Shareholder or the The decision making results in every agenda of the
Representatives voted by filling out the Vote Card Meeting is counted by PT Datindo Entrycom as the
provided by the Officer at the time of registration. Bureau of Securities Administration and validated by
The Card was then handed back to the officer for an Notary Fathiah Helmi, SH.
›› Decisions and Realization of Annual GMS 2017
First Agenda Realization
To approve Annual Report including the Financial Statements and Board of Commissioners Supervisory Report for the Fiscal Year 2016, as Realized
well as the Financial Statements on the Partnership and Community Development Program for the Fiscal Year of 2016
Questioners
In the First Meeting Agenda, there are 2 (two) Questioners.
No. Question Answer

1 . How is the management attitude in Formation of Banking and Financial Services Holding is based on the Government
facing the SOEs banking consolidation, Regulation No. 44 of 2005 on Participation and Administration of State Capital in
considering the Company is focusing State-Owned Enterprises and Limited Liability Companies as amended by Government
on housing finance? Regulation No. 72 of 2016 in which the State as shareholder may transfer its shares
through the mechanism of inbreng (using shareholders’ properties as the Company’s
capital) to other SOEs.
Holding establishment is purely a shareholder’s action and there is no merger or acquisition

process of Holding members. Holding’s objective is to improve value, strengthen
competitiveness, expand the business networks and independence of SOE management.
As of now, the Holding establishment is still ongoing and it will be finished technically after
the publication of Government Regulation. The Holding formation is expected to strengthen
the Company’s position as a bank with focus on housing finance, especially for improving the
welfare of low-income communities under the Government’s NAWACITA program.
2 . The Company has LDR of 102.66%. Will Company’s LDR is over 100%, because the Company must have a long-term funding
BI fine the Company, or will BI accept the source to lower the maturity mismatch risk due to several long-term loan. The Company
Company’s justification? is not penalized by BI due to the LDR position. However, the Company shall maintain a
CAR Ratio of minimum 14%.
Voting Result
Agreed Disagreed Abstain
8,554,045,697 (99.76%) 17,117,940 (0.20%) 3,343,000 (0.04%)
Decision on the First Agenda:

1. To approve the Company’s Annual Report, including the Supervisory Task Report conducted by the Board of Commissioners for fiscal
year ended on December 31, 2016. Ratifying Company’s Financial Statements for fiscal year ended on December 31, 2016, which have
been audited by KAP Purwantono, Sungkoro & Surja, in line with Report No. RPC-2935/PSS/2017 dated February 10, 2017 with the
result of Unqualified Opinion on all materials.
2. To ratify the Financial Statements of Partnership and Community Development Program for fiscal year ended on December 31, 2016
which have been audited by KAP Purwantono, Sungkoro & Surja, in line with Report No. RPC-2973/PSS/2017 dated February 17, 2017
with the result of Unqualified Opinion on all materials.
3. With the approval of the Company’s Annual Report, including the Supervisory Task Report by the Board of Commissioners; and the ratified
Company’s Annual Report for fiscal year that ended on December 31, 2016, and the Financial Report for the Partnership and Community
Development Program for the fiscal year that ended on December 31, 2016, the GMS granted volledig acquite at de charge to all members
of the Directors and the Board of Commissioners for the management and supervisory actions conducted during the fiscal year that ended
on December 31, 2016, as long as the actions is not of criminal offense and is reflected in the Annual Report, Financial Report, and Report
for the Partnership and Community Development Program for the fiscal year that ended on December 31, 2016.
Second Agenda Realization

To approve Company’s Profit Uses for the Fiscal Year 2016 Realized
Number of Questioners:
In the Second Agenda of the Meeting, there was 1 (one) questioner.
No. Question Answer

1. The Company is a member of The Company has a high loan growth target, and that includes industrial growth to
Himbara. Other members of Himbara support the acceleration of One Million Houses program from the Government. Therefore,
provides special dividend. What is the the Company must maintain a sufficient level of capital adequacy, thus proposing a 20%
justification for the Company to not dividend payment.
grant special dividend?
Voting Result:
The meeting reached consensus on the deliberation of the second agenda.
Decision on the Second Agenda:

To approve the use of company’s net income for the fiscal year 2016 of Rp2,618,905,537,321.00 (two trillion six hundred eighteen billion
nine hundred five million three hundred seventy-thousand three hundred twenty-one Rupiah) as follows:
1. Dividend of 20% (twenty percent) or Rp523,781,107,464.20 as Cash Dividend, distributed to the Shareholders to be paid under the
condition as follows:
›› Government’s dividend as the 60% owner of the total shares in the amount of Rp314,268,664,478.52 will be paid in Rupiah to State
General Treasury Account No.: 502.000000980 at Bank Indonesia
›› To approve and grant the power and authorities to the Board of Directors with substitution right to schedule and provide guidelines
for cash dividend payment of the Fiscal Year 2016 in accordance with the prevailing rules and regulations.
2. 80% or Rp2,095,124,429,856.80 (two trillion ninety-five billion one hundred twenty-four million four hundred twenty-nine thousand
eight hundred fifty-six Rupiah eighty cent) will be used as retained earnings.
Third Agenda Realization

To appoint a Public Accountants Firm to audit the Company’s Financial Statement and Financial Statement on the Partnership and Realized
Community Development Program for fiscal year of 2017.
Questioners
There were no questioners on the Third Agenda of the Meeting.
Voting Result
8.105.194.165 (94,53%) 461.960.572 (5,39%) 7.351.900 (0,08%)
Decision on the Third Agenda:

1. To appoint Public Accountants Firm Purwantono, Sungkoro & Surja as the Public Accountants Firm to audit the Company’s Financial
Statement and Financial Statement on the Partnership and Community Development Program for fiscal year of 2017.
2. To grant the power to Board Of Commissioners to determine the honorarium and other requirements concerning the Public Accountants
Firm, as well as to appoint substitute for the Public Accountants Firm in the event that the Public Accountants Firm Purwantono,
Sungkoro & Surja, because of any reasons unable to complete the audit for the Company’s Financial Statement and Financial Statement
on the Partnership and Community Development Program for Fiscal Year of 2017, including determining the honorarium and other
requirements for the substitute Public Accountants Firm.
Fourth Agenda Realization

To determine the amount of honorarium for Board of Commissioners for the Fiscal Year of 2017 as well as tantiem for the member of Board Realized
of Directors and Board of Commissioners for the Fiscal Year of 2016.
There were no questioners on the Fourth Agenda of the Meeting.
Voting Result
8.567.572.337 (99,92%) 2.925.400 (0,03%) 4.008.900 (0,05%)
Decision on the Fourth Agenda:

1. To grant power and authorities to the Bicolor Series A Shareholder to set forth the tantiem for fiscal year 2016, and to determine the
salary/honorarium, allowances, facilities, and other incentives for the members of Board of Commissioners 2017.
2. To grant power and authorities to the Board of Commissioners with prior written approval from the Bicolor Series A Shareholder to
determine the tantiem for Fiscal Year 2016, as well as to determine the salary/honorarium, allowances, and facilities for the Directors
and Board of Commissioners in 2017.

Fifth Agenda Realization

Enactment of the Regulation of the Minister of SOEs No. PER-03/MBU/12/2016 dated December 16, 2016, on the Amendment to the Regulation Realized
of the Minister of SOEs No. PER-09/MBU/07/2015 on Partnership and Community Development Program of the State-owned Enterprises.
There were no questioners on the Fifth Agenda of the Meeting
Voting Result:
The meeting reached consensus on the deliberation of fifth agenda
Decision on the Fifth Agenda:

To officiate the enactment of Regulation of the Minister of SOEs No. PER-03/MBU/12/2016 on the Amendment to the Regulation of the Minister
of State-Owned Enterprises No. PER-09/MBU/07/2015 on Partnership and Community Development Program of State-Owned Enterprises.
Sixth Agenda Realization

Amendment to the Company’s Articles of Association Realized
There were no questioners on the Sixth Agenda of the Meeting.
Voting Result:
6.899.128.552 (80,46%) 1.620.551.895 (18,90%) 54.826.190 (0,64%)
Decision on the Sixth Agenda:

1. To approve the amendment to the Company’s Articles of Association, in the framework of Ministry of SOEs’ program to standardize
Public SOEs’ Articles of Association.
2. To approve the redrafting of all provisions in the Articles of Association related to the amendment as stated in the point 1 (one) of the
above-mentioned decision.
3. To grant authorities and power to the Directors, with substitution rights to perform any action necessary related to the agendas of
this Meeting, including redrafting and restating the entire Articles of Association in a Notary Deed, and to submit it to the authorized
institution for approval and/or receipt of notification of the amendment to the Articles of Association. To perform everything that is
deemed necessary and useful for such purpose without excluding anything, including to add and/or amend the amendment to the
Articles of Association if such matter is required by the competent authority
Seventh Agenda Realization

Report on the Realization of Fund Utilization on the Public Offering of Bank BTN Continuous Bond II Phase II 2016. Realized
The Seventh Agenda was in the form of report. There were no questions and answers session
Voting Result and Decision on the Seventh Agenda

The Seventh Agenda was in the form of report. There was no decision-making
Eighth Agenda Realization

Changes in the Board of the Company Realized
There were no questioners on the Eighth Agenda of the Meeting
Voting Result:
6.790.208.379 (79,19%) 1.598.257.723 (18,64%) 186.040.535 (2,17%)
Decision on the Eighth Agenda:

1. To dismiss with honor, the following names as members of Directors:
›› Mr. Maryono as the President Director.
›› Mr. Mansyur Syamsuri Nasution as Director.
›› Mr. Catur Budi Harto as Director
›› Mr. Sulis Usdoko as Director
The dismissal of the members of the Directors shall be effective immediately since the closing of this Meeting by acknowledging the
contribution and thoughts given during their tenure as members of the Board of Directors of PT Bank Tabungan Negara (Persero) Tbk.
Eighth Agenda Realization

2. To appoint the following names as the members of Board of Directors: Realized
›› Mr. Maryono as the President Director
›› Mr. R. Mahelan Prabantarikso as Director
›› Mr. Nixon L.P. Napitupulu as Director
›› Mr. Budi Satria as Director
3. To appoint Mr. Garuda Wiko as Independent Commissioner.
4. The end of tenure for the members of Board of Commissioners and Directors who have just been appointed is on the closing of 5th
Annual GMS since the appointment of the respective member, which will be the Annual GMS 2022, taking into account the legislation in
the capital market field and without prejudice to the right of GMS to terminate them at any time.
5. The composition of the Company’s Board of Commissioners and Directors after the changes are as follow:
Board of Commissioners Direksi
President Commissioner/Independent I Wayan Agus Mertayasa President Director Maryono
Independent Commissioner Kamaruddin Sjam Director Iman Nugroho Soeko
Independent Commissioner Arie Coerniadi Director Adi Setianto
Independent Commissioner Lucky Fathul Aziz Hadibrata Director Oni Febriarto R.
Independent Commissioner Garuda Wiko Director Handayani
Commissioner Sumiyati Director R. Mahelan Prabantarikso
Commissioner Maurin Sitorus Director Nixon L.P. Napitupulu
Commissioner Iman Sugema Director Budi Satria
6. To grant authorities and power to the Company’s Directors with the substitution rights to perform any actions necessary related
to the decision in this agenda, in accordance with the prevailing legislation, including to declare in an independent Notary Deed and
to announce the Company’s Board of Commissioners and Directors to the Ministry of Law and Human Rights, as well as to request
to the Financial Services Authority to assess the fit and proper test on the candidates of Board of Commissioners and Directors, in
accordance with the prevailing legislation.
›› Schedule and Payment Procedures for Cash Dividend Rp523,781,107,464.20 or Rp49.459972 per share. This
The Meeting has approved and set the cash dividend shall be distributed to the Company’s Shareholders. It is
in accordance with the decision of the second agenda. hereby notified the timetable and payment schedule of
The cash dividend for fiscal year 2016 amounted to cash dividend for 2016 as follows:
Schedule of Cash Dividend Distribution
No. Description Date

1. End of Share Trading Period with Dividend (Cum Dividen)
›› Regular and Negotiated Markets March 24, 2017
›› Cash Market March 30, 2017
2. Awal Periode Perdagangan Saham Tanpa Hak Dividen (Ex Dividen)
›› Regular and Negotiated Markets March 27, 2017
›› Cash Market March 31, 2017
3. Record Date of Shareholders who have Rights to Dividend (Record Date) March 30, 2017
4. Dividend Payment Date in Fiscal Year 2016 April 13, 2017
1. Extraordinary GMS ›› Table: Attendance of Board of Commissioners, Directors,

›› Extraordinary GMS and Audit Committee in Extraordinary GMS 2017
The Company held Extraordinary GMS on The meeting is chaired by Mr. I Wayan Agus Mertayasa,
Day/Date : Thursday / December 28, 2017 as President Commissioner/Independent Commissioner,
Time : 14.17 – 14.52 PM in accordance with the Board of Commissioners’ Decree
Place : Gedung Menara BTN, lantai 6 dated December 12, 2017, presented in the Board of
Jl. Gajah Mada No. 1 Jakarta Pusat -10130

Commissioners Letter No. 172/KOM/BTN/XII/2017 attended by all members of the Company’s Board of
dated December 12, 2017, on the Chairman of EGMS Commissioners and Directors, and majority of members
2017 of PT Bank Tabungan Negara (Persero) Tbk, and of Audit Committee as follow:
No Name Position Attended Not Attended Description

1 Mr. I Wayan Agus Mertayasa President Commissioner/Independent Commissioner √ - -
Independent Commissioner & Chairman of √

2 Mr. Kamaruddin Sjam - -
Audit Committee
Independent Commissioner & Chairman of √

3 Mr. Arie Coerniadi - -
Risk Monitoring Committee
Independent Commissioner &Member of √

4 Mr. Lucky Fathul Aziz Hadibrata - -
Audit Committee
Independent Commissioner & Member of √

5 Mr. Garuda Wiko - -
Audit Committee
6 Mrs. Sumiyati Commissioner √ - -
7 Mr. Maurin Sitorus Commissioner √ - -
8 Mr. Iman Sugema Commissioner √ - -
9 Mr. Maryono President Director √ - -
10 Mr. Iman Nugroho Soeko Director √ - -
11 Mr. Adi Setianto Director √ - -
12 Mr. Oni Febriarto Rahardjo Director √ - -
13 Mr. R. Mahelan Prabantarikso Director √ - -
14 Mr. Nixon L.P Napitupulu Director √ - -
15 Mr. Budi Satria Director √ - -
›› Shareholders Attendance ›› Voting Mechanism in the Meeting

The meeting was attended by the shareholders and/or Decision of the Meeting is done by deliberation. If
representatives of the shareholders. The total shares deliberation is not achieved, then voting is done. Voting
presented was 8,696,354,315 (eight billion six hundred is conducted closely, in which the Shareholders or their
ninety-six million three hundred fifty-four thousand representatives vote by filling out the Voting Card provided
three hundred and fifteen) shares, including the Bicolor by the Officer at the time of registration, and then handed
Series A Share, or a total of 82.12% (eighty-two point back to the officer for an electronic vote counting.
one percent) with valid voting rights that have been
issued by the Company up to the day of the Meeting, i.e. ›› Independent Party Voting Validator
10,590,000,000 (ten billion five hundred ninety million) The votes are counted by PT Datindo Entrycom as the
shares consisting of: Bureau of Securities Administration and validated by
a. 1 (one) Bicolor Series A share; and Notary Ashoya Ratam, S.H., MKn.
b. 10,589,999,999 (ten billion five hundred eighty-
nine million nine hundred ninety-nine thousand nine ›› Voting Results and Number of Questions:
hundred and ninety-nine) Series B shares; The Meeting reached the decision as stated in the
taking into account the Company’s Shareholder List per Deed, “Minutes of Meeting of the Extraordinary General
December 5, 2017, 16.15 PM, GMT+7. Meeting of Shareholders of Limited Liability Company
(Persero) PT Bank Tabungan Negara Tbk, or abbreviated
›› Opportunities to Ask Questions and/or Provide Opinions to PT Bank Tabungan Negara (Persero) Tbk”, No. 594/
Opportunities to ask questions and/or provide opinions XII/2017 dated December 28, 2017, compiled by
are opened for every agenda in the Meeting. Question Notary Ashoya Ratam S.H., M.Kn., which are as follow:
and answer session is given after the explanation of the
agenda in the Meeting and before the voting begin.
Meeting’s Agenda Realization

Changes in the Board of the Company Realized
In this agenda, there was 1 (one) questioner
No. Question Answer

1. The new title for Directors uses As of now, we are in the globalization era. Therefore, the use of English in the Directors’
English. Is there any translation of title is relevant. Furthermore, Bank BTN is the No. 1 Bank in housing finance and we have
the title in Indonesian? Nowadays, our shareholders not only in the country, but also abroad.
nation has so many new words.
Voting Result:
6.520.851.102 (74,99%) 1.916.120.344 (22,03%) 259.382.869 (2,98%)
Decision on the Agenda:

1. To officiate the dismissal of Mrs. Handayani as the Company’s Director effective immediately since October 18, 2017.
2. Changes of Company’s Directors’ title as follow:
›› Director to Director of Finance & Treasury
›› Director to Director of IT & Operation
›› Director to Director of Commercial Banking
›› Director to Director of Consumer Banking
›› Director to Director of Strategy, Compliance, & Risk
›› Director to Director of Collection, Asset Management, & Legal
›› Director to Director of Distribution & Network
3. To transfer the assignment of the names below as members of the Company’s Board of Directors:
›› Mr. Iman Nugroho Soeko, from Director to Director of Finance & Treasury
›› Mr. Adi Setianto, from Director to Director of IT & Operation
›› Mr. Oni Febriarto Rahardjo, from Director to Director of Commercial Banking
›› Mr. R. Mahelan Prabantarikso, from Director to Director of Strategy, Compliance & Risk
›› Mr. Nixon L.P. Napitupulu, from Director to Director of Collection, Asset Management & Legal
›› Mr. Budi Satria, from Director to Director of Consumer Banking
›› To appoint Mr. Dasuki Amsir as the Director of Distribution & Network.
4. The end of Board of Directors member’s service appointed is at the closing of the 5th Annual GMS since the appointment date, that is
the Annual GMS 2022, by taking into account the rules and legislation in the capital market and without diminishing the right of GMS
to discharge at any time.
5. With the dismissal, changes to the nomenclature of office, assignment, and appointment of members of the Company’s Board of
Directors, the composition of the Board of Directors shall be as follows:
President Director: Mr. Maryono
Director of Finance & Treasury: Mr. Iman Nugroho Soeko
Director of IT & Operation: Mr. Adi Setianto
Director of Commercial Banking: Mr. Oni Febriarto Rahardjo
Director of Consumer Banking: Mr. Budi Satria
Director of Strategy, Compliance, and Risk: Mr. R. Mahelan Prabantarikso
Director of Collection, Asset Management, and Legal: Mr. Nixon L.P. Napitupulu
Director of Distribution & Network: Mr. Dasuki Amsir
6. To give the power and authority to the Company’s Board of Directors with substituting right to perform all the necessary actions related
to the decision of the agenda in accordance with the prevailing rules and legislation, including to declare in separate Notarial Deed and
to inform the composition of Board Of Directors to the Ministry of Justice and Human Rights, as well as to ask the Financial Services
Authority to do the Fit and Proper Test for the candidates of the Board of Directors in accordance with the prevailing rules and legislation
Actualization of 2016 GMS Resolutions

In this annual report, the Company has actualized the GMS
2016 Resolutions. The progress is as follows:
1. Annual GMS 2016
Agenda 2016 GMS Resolutions Status

Not Yet Actualized
Finished With Reasons
First 1. To approve the Company’s Annual Report 2015 and to ratify Board of Commissioners
Supervisory Report and Company’s Financial Report for the Fiscal Year 2015, audited by
-
Public Accountants Firm Purwantono, Sungkoro & Surja, as stated in the Report No. RPC-245/
PSS/2016 dated January 29, 2016.

Not Yet Actualized

First 2. To ratify Annual Report including Company’s Financial Statement for the Partnership and
Community Development Program for the Fiscal Year 2015 audited by Public Accountants
-
Firm Purwantono, Sungkoro & Surja, as stated in the Report No. RPC-126/PSS/2016/DAU
dated February 12, 2016.
3. To grant release and discharge of responsibilities (volledig acquit et de charge) to all member
of the Board of Directors on all acts of supervisory undertook in the fiscal year 2015 including
the management and oversight of the Partnership and Community Development Program,
as long as:
-
›› The activities were not a criminal offense; and
›› Such actions were reflected in the Annual Report and Financial Statement of the Company
as well as the Financial Statement for the Partnership and Community Development
Program for the fiscal year 2015
Second 1. To approve and ratify the Company’s Net Profit of the Fiscal Year 2015 amounted to
Rp1,850,907,302,668.00 (one trillion eight hundred fifty billion nine hundred seven million
three hundred two thousand eight hundred sixty-eight rupiahs), hereinafter referred to as
the Company’s Net Income, to be used with details as follows:
›› 20% (twenty percent) of the Company’s Net Income or Rp370,181,460,573.60 (three
hundred and seventy billion one hundred and eighty-one million four hundred sixty
thousand five hundred and seventy-three point six zero rupiahs) as dividends distributed
to the shareholders. -
›› 80% (eighty percent) of the Company’s Net Income or Rp1,480,725,842,294.40 (one billion
four hundred and eighty billion, seven hundred and twenty-five million eight hundred and
forty-two thousand two hundred and ninety-four point four zero rupiahs) as retained
earnings.
The fund allocated for Community Development Program in 2016 was Rp14,800,000,000.00
(fourteen billion eight hundred million rupiahs) as the Company’s expenditure.
2. To approve granting the power and authorities to the Board of Directors to schedule and Cash dividends paid
provide guidelines for dividend payment of the Fiscal Year 2015 in accordance with the on May 12, 2016 -
prevailing rules and regulations.
Third 1. To appoint Public Accountants Firm Purwantono, Sungkoro & Surja as the Public Accountants
Firm to audit the Company’s Financial Statement and Financial Statement on the Partnership -
and Community Development Program for fiscal year of 2016.
2. To grant the power to Board Of Commissioners to determine the honorarium and other
terms concerning the Public Accountants Firm, as well as to appoint substitute for the Public
Accountants Firm in the event that the Public Accountants Firm Purwantono, Sungkoro &
Surja, because of any reasons would unable to complete the audit for the Company’s Financial -
Statement and Financial Statement on the Partnership and Community Development Program
for fiscal year of 2016, including determining the honorarium and other terms for the substitute
Public Accountants Firm.
Fourth To grant power and authorities to the Board of Commissioners with prior written approval from
the Bicolor Series A Shareholder to determine the tantiem for Fiscal Year 2015, as well as to
-
determine the salary/honorarium, allowances, and facilities for the Directors and Board of
Commissioners in 2016.
Fifth Did not make any decision on the Meeting’s Agenda of the Use of Proceeds from Public Offering
-
of Bank BTN Continuous Obligation II Phase I Year 2015
Sixth Board of Commissioners

1. To dismiss honorably Mr. Fajar Harry Sampurno as the member of Board of Commissioners
-
effective immediately since the closing of this Meeting by acknowledging the contribution
and thoughts given during their tenure as members of the Board of Commissioners.
2. To appoint Mr. Iman Sugema as the Company’s Commissioner. The end of Board of
Commissioners member’s service appointed is at the closing of the 5th Annual GMS since
-
the appointment date, that is the Annual GMS 2021, by taking into account the rules and
legislations prevailing and without diminishing the right of GMS to discharge at any time.

Not Yet Actualized
Sixth 3. With the dismissal and the appointment, the composition of the Board of Commissioners
is as follows:
President Commissioner/ I Wayan Agus Mertayasa

Independent mmissioner
Independent Commissioner Kamaruddin Sjam

-
Independent Commissioner Arie Coerniadi
Commissioner Lucky Fathul Aziz Hadibrata
Commissioner Sumiyati
Commissioner Maurin Sitorus
Commissioner Iman Sugema
4. To grant authorities and power to the Company’s Directors with the substitution rights to
perform any actions necessary related to the decision in this agenda, in accordance with the
prevailing legislation, including to declare in an independent Notary Deed and to announce the
-
Company’s Board of Commissioners and Directors to the Ministry of Law and Human Rights,
as well as to request to the Financial Services Authority to assess the fit and proper test on the
candidates of Board of Commissioners, in accordance with the prevailing legislation.
Directors
1. To officiate the dismissal of Mr. Sis Apik Wijayanto, as the Company’s Director, effective
-
immediately since his appointment as the Director of PT Bank Rakyat Indonesia (Persero) Tbk
in the Annual GMS 2016 PT Bank Rakyat Indonesia (Persero) Tbk dated March 23, 2016.
2. To dismiss honorably Mr. Irman Alvian Zahiruddin as the Company’s Director effective
immediately since the closing of this Meeting, acknowledging the contribution and thoughts -
given during his tenure as members of the Board of Directors.
3. To appoint these names as the member of Board of Directors:

›› Ms. Handayani as Director.
›› Mr. Catur Budi Harto as Director.
-
The end of Board of Directors member’s service appointed is at the closing of the 5th Annual
GMS since the appointment date, that is the Annual GMS 2021, by taking into account the rules
and legislations prevailing and without diminishing the right of GMS to discharge at any time.
4. With the discharge and the appointment, the composition of the Board of Directors is as
follows:
Directors
President Director Mr. Maryono
Director Mr. Mansyur Syamsuri Nasution
Director Mr. Iman Nugroho Soeko

-
Director Mr. Adi Setianto
Director Mr. Sulis Usdoko
Director Mr. Oni Febriarto Rahardjo
Director Mrs. Handayani
Director Mr. Catur Budi Harto
5. To give the power and authority to the Company’s Board of Directors with substituting right
to perform all the necessary actions related to the decision of the agenda in accordance
with the prevailing rules and legislation, including to declare in separate Notarial Deed
-
and to inform the composition of Board of Directors to the Ministry of Justice and Human
Rights, as well as to ask the Financial Services Authority to do the Fit and Proper Test for the
candidates of the Board Of Directors in accordance with the prevailing rules and legislation.

2. Extraordinary GMS 2016

Not Yet Actualized
First 1. To dismiss honorably Mrs. Catherniawati Hadiman as an Independent Commissioner, effective
immediately since the closing of this Meeting, acknowledging the contribution and thoughts -
given during her tenure as members of the Company’s Independent Commissioner.
2. To approve and appoint these names stated below as the member of Company’s Board of
Commissioners, effectively since the approval of Financial Service Authority to the fit and
proper test for:
›› Mr. I Wayan Agus Mertayasa as President Commissioner/Independent
›› Mr. Maurin Sitorus as Commissioner -
The end of Board of Commissioners member’s service appointed is at the closing of the 5th
Annual GMS since the appointment date, by taking into account the rules prevailing in Capital
Market and without diminishing the right of GMS to discharge at any time.
3. To approve the transfer of position of Mr. Lucky Fathul Aziz H., from Commissioner to
Independent Commissioner, effective immediately since the approval of Financial Services -
Authority on the fit and proper test, taking into account the prevailing rules and legislation, and
to continue his tenure as Commissioner.
4. With the dismissal, and after the approval of Financial Services Authority on fit and proper
test on the appointment and transfer of the position, the composition of the Board of
Commissioners is as follows:
Dewan Komisaris
President Commissioner/ I Wayan Agus Mertayasa

Independent Commissioner Kamaruddin Sjam

-
Independent Commissioner Arie Coerniadi
Commissioner Lucky Fathul Aziz Hadibrata.
Commissioner Fajar Harry Sampurno
Commissioner Sumiyati
Commissioner Maurin Sitorus
5. To give the power and authority to the Company’s Board of Directors with substituting right to
perform all the necessary actions related to the decision of the agenda in accordance with the
prevailing rules and legislation, including to declare in separate Notarial Deed and to inform the
-
composition of Board Of Commissioners to the Ministry of Justice and Human Rights, as well
as to ask the Financial Services Authority to do the fit and proper test for the candidates of the
Board of Commissioners in accordance with the prevailing rules and legislation.
Second To agree on the enactment of Regulations of the State Minister for State-Owned Enterprises
No. PER-09/MBU/07/2015 dated July 3, 2015 on the State-Owned Enterprises Partnership and -
Community Program Development as the guidelines for the Board of Directors to carry out the
Program, and it shall go into effect starting 2016.
The Board of Commissioners supervises and provides advice to the Directors

on the Company’s management activities in the interests and in line with the
Company’s objectives.
Number and Composition of the Board of In 2017, the composition of the Board of Commissioners
Commissioners changed 1 (once), in accordance with the Annual GMS dated
The number and composition is adjusted to the Company’s March 17, 2017, with the appointment of member of Board
needs so that the supervisory activity can be conducted of Commissioners Mr. Garuda Wiko as an Independent
effectively, objectively, and independently. The activities shall Commissioner. Throughout January to March, there were 7
not have conflict of interest that could interfere with the ability (seven) Commissioners. Since April to December 31, 2017,
to carry out their duties and responsibilities. there were 8 (eight) Commissioners.
Composition of the Company’s Board of Commissioners Per December 31, 2017
No Name Position Appointment Basis

1 I Wayan Agus Mertayasa President Commissioner/ Extraordinary General Meeting of Shareholders (EGMS) dated January 7, 2016
2 Kamaruddin Sjam Independent Commissioner Annual General Meeting of Shareholders (AGMS) dated March 24, 2015
3 Arie Coerniadi Independent Commissioner Annual General Meeting of Shareholders (AGMS) dated March 24, 2015
4 Lucky Fathul Aziz Hadibrata Independent Commissioner Annual General Meeting of Shareholders (AGMS) dated March 24, 2015
5 Sumiyati Non-Independent Commissioner Annual General Meeting of Shareholders (AGMS) dated September 2, 2015
6 Maurin Sitorus Non-Independent Commissioner Extraordinary General Meeting of Shareholders (EGMS) dated January 7, 2016
7 Iman Sugema Non-Independent Commissioner Annual General Meeting of Shareholders (AGMS) dated April 12, 2016
8 Garuda Wiko Independent Commissioner Annual General Meeting of Shareholders (AGMS) dated March 17, 2017
The appointment of the Board of Commissioners is based on Fit and Proper Test
the fit and proper test that refers to POJK No.27/POJK.03/2016 As of December 31, 2017, all members of the Company’s
on the fit and proper test for the Executive Parties of Financial Board of Commissioners who have passed the fit and proper
Services Institution. The regulation stated that all candidates test without note and have obtained approval from OJK,
of members of Board of Commissioners must pass the fit and indicate that each member of the Board of Commissioners
proper test and must obtain approval from the OJK before carrying has the integrity and competence relevant to their position
out his/her duties and responsibilities in his/her position. to carry out their duties and responsibilities.
List of competencies and fit and proper test of the Board of Commissioners is as follows:
Competency/ Fit and Proper Test Effective

Name Position Expertise Organizer Date Status
I Wayan Agus President Commissioner/ ›› Finance Financial Services Authority April 6, 2016 Effective
Mertayasa Independent Commissioner ›› Banking
Kamaruddin Sjam Independent Commissioner ›› Audit Financial Services Authority June 29, 2015 Effective
›› Finance
Arie Coerniadi Independent Commissioner ›› Finance Financial Services Authority June 29, 2015 Effective
›› Information Technology
Lucky Fathul Aziz Independent Commissioner ›› Finance, Financial Services Authority November 15, Effective
Hadibrata ›› Macro Economics 2017
›› Management Strategy

Competency/ Fit and Proper Test Effective

Name Position Expertise Organizer Date Status
Sumiyati Commissioner ›› Audit Financial Services Authority February 22, Effective
›› Public Finance 2016
›› Human Resources
Development
Maurin Sitorus Commissioner ›› Law Financial Services Authority June 6, 2016 Effective
›› Economy
Iman Sugema Commissioner ›› Economy Financial Services Authority July 21, 2017 Effective
›› Finance
Garuda Wiko Independent Commissioner ›› Law Financial Services Authority July 21, 2017 Effective
›› Education
Appointment and Dismissal of the Board of Commissioners actions that harm the Company, and is ruled guilty by a court
Members of the Board of Commissioners are appointed by the decision. In addition to the reasons stated above, GMS also has
GMS and shall become effective upon OJK’s approval on the the rights to dismiss any member of Board of Commissioners with
Fit & Proper Test, in reference to the PBI No. 12/23/PBI/2010 appropriate reasons in the Company’s interests and purposes.
on the Fit and Proper test, Article 17, which states that the
Board of Commissioners must have integrity, competence, and Board of Commissioners’ Supervisory Job Descriptions
financial reputation. The supervision or focus of the supervisory duties of each
member of the Board of Commissioners shall be determined
In line with the Articles of Association Article 14, the Member based on the roles as Chairman and Vice Chairman of
of the Board of Directors may be discharged if the incumbent the Board of Commissioners Committee, which is adapted
does not carry out his/her duties well; does not implement the to the competence and experience. The supervisory duties of
provisions of the law and Articles of Association; is involved in the Board of Commissioners are:
No Name Position Surveillance Focus

1 I Wayan Agus Mertayasa President Commissioner/ Chairman of the Remuneration and Nomination Committee, Member of Audit
Independent Commissioner Committee, and Member of Risk Monitoring Committee
2 Kamaruddin Sjam Independent Commissioner Chairman of Audit Committee and Member of Remuneration and Nomination Committee
3 Arie Coerniadi Independent Commissioner Member of Risk Monitoring Committee and Member of Remuneration and
Nomination Committee
4 Lucky Fathul Aziz Hadibrata Independent Commissioner Member of Audit Committee and Member of Remuneration and Nomination Committee
5 Garuda Wiko Independent Commissioner Member of Audit Committee and Member of Risk Monitoring Committee
6 Sumiyati Non-Independent Commissioner Member of Risk Monitoring Committee
7 Maurin Sitorus Non-Independent Commissioner Member of Nomination and Remuneration Committee
8 Iman Sugema Non-Independent Commissioner Member of Risk Monitoring Committee
Board of Commissioners’ Orientation Program 1. The implementation of Good Corporate Governance and
Considering the background of the members of Board of Business Ethics principles in the Company.
Commissioners are representation of some of the Shareholders, 2. Information on the duties and responsibilities of the
the Company always provides Orientation Program for new Board of Commissioners and the Board of Directors as
members of the Board of Commissioners, with expectation well as things prohibited.
that the members of Board of Commissioners shall get to 3. The description of Company’s goals, nature, and scope
know each other and work together as a solid, comprehensive, of activities, financial performance, strategy, short-
and effective team; and as an event to give introduction of the term and long-term plans, risk, internal audit, and other
Company’s general conditions. strategic matters.
4. Information on delegation of authorities, internal and
Provisions relating to the Board of Commissioners’ Orientation external audit, internal control systems and policies, and
Program have been regulated by the Board of Commissioners’ Audit Committee.
Code of Conduct, which includes:
On April 4, 2017, the Corporate Secretary has held the of the Board of Commissioners and/or Shareholders, or any
Board of Commissioners’ Orientation Program with the other relationship with the Company that may affect his
following materials: ability to act independently.
1. Reviewing the role, duties, and responsibilities of Board
of Directors and Board of Commissioners The nature of Independent Commissioner is intended to
2. Implementation of compliance, GCG and risk management create a more objective and independent climate, as well
3. The audit result is as follows: as to maintain fairness and provide a balance between
4. Company culture implementation the interests of majority shareholders and the protection
5. The Company’s business overview of the interests of minority shareholders, including public
shareholders and other stakeholders.
Independent Commissioners and Board of
Commissioners’ Independence Independent Commissioner Criteria
An Independent Commissioner is a member of the Board of The criteria fulfillment of the independence of each Company’s
Commissioners who has no financial, management, share Independent Commissioner of the Company can be seen in
ownership and/or family relationship with fellow members the following table:
Name Criteria Status Description

1 2 3 4
I Wayan Agus Mertayasa √ √ √ √ Independent Independence Criteria

1. A person who have not worked or have had any authorities and
responsibilities to plan, direct, control, or supervise activities of
Kamaruddin Sjam √ √ √ √ Independent the Issuers or Public Company within the last 6 (six) months,
except for the reappointment as Independent Commissioner of
the Public Listed Company for the next period;
Arie Coerniadi √ √ √ √ Independent 2. Shall not have shares directly or indirectly to the Public Listed
Company;
3. Shall not have any affiliation with the Issuer or Public
Company, a member of the Board of Commissioners, a
Lucky Fathul Aziz Hadibrata √ √ √ √ Independent
member of the Board of Directors or the major shareholders
of the Public Listed Company;
4. Shall not have any business relationship, directly or indirectly
Garuda Wiko √ √ √ √ Independent
related to the business activities of the Public Listed
Company.
Independent Commissioner Statement Per December 31, 2017, there were 5 (five) effective Independent
The number of Independent Commissioners effective as of Commissioners out of 8 (eight) effective Commissioners, or
December 31, 2017, is 5 (five) Independent Commissioners 62.5% of the total effective Commissioners. This condition
out of 8 (eight) Commissioners, or 62.5% of the total has fulfilled the requirement of a minimum 50% composition
Commissioners. This condition has fulfilled the requirement (Number of Independent Commissioners/Total Commissioners).
of a minimum 50% composition (Number of Independent
Commissioners/Total Commissioners). in accordance Independent Commissioners Statement of Independence
with the Financial Services Authority Regulation No. 55/ Each Company’s Independent Commissioner has made a
POJK.03/2016 on the Implementation of Good Corporate Statement of Independence. It has been submitted to the
Governance for Commercial Banks. OJK, as follows:

In addition to the Statement of Independence, the member of of Commissioners PT Bank Tabungan Negara (Persero) Tbk.
Board of Commissioners must report the change of status that dated August 10, 2017.
may affect his/her independence, and ensure that this practice
is carried out in line with the GCG principles. The Board Charter is based on the corporate principles, Articles of
Association provisions, prevailing rules and legislation, the directive
Code of Conduct of the Board of Commissioners of Shareholders, and Good Corporate Governance best practices.
(Board Charter)
The Board of Commissioners has work guidelines and order, The Board Charter shall make the Board of Commissioners
including work ethics, working times, and meeting, stipulated carry out their duties effectively and it shall be used as a
separately in the Board of Commissioners’ Regulation No. performance assessment tool for Board of Commissioners.
01/DEKOM-BTN/2017 on the Board Charter of the Board The Board Charter stipulated various aspects, among others:
Scope of Board of Commissioners’ Board Charter

Chapter I Introduction
Chapter II Legal Basis
Chapter III Vision, Mission, and Corporate Culture and Values
Chapter IV Code of Conduct of the Board of Commissioners (Board Charter) consists of 1) The Structure and Composition of the Board of Commissioners;
2) Criteria of Members of the Board of Commissioners; 3) Additional criteria for members of the Independent Commissioners; 4) Concurrent
Position; 5) Appointment and Dismissal; 6) Tenure; 7) Duties and Responsibilities; 8) Obligations; 9) Rights and Authorities; 10) The Mechanism
of Segregation of Duties and Authorities of the Board of Commissioners; 11) Prohibition; 12) Ethics of Position; 13) Working Time; 14) Meeting
Arrangement; 15) Leadership; 16) Performance Evaluation; 17) Reporting and Accountability; and 18) Secretary of the Board of Commissioners
and Committees reporting directly to the Board of Commissioners
Chapter V The Board Manual for Board Of Commissioners and Directors consists of 1) General Provisions; 2) Report of the Board of Directors to the Board
of Commissioners; 3) Board of Commissioners’ Audit on the Company's premises; 4) Advice by the Board of Commissioners to the Directors;
5) Actions of the Directors that require approval of the Board of Commissioners; 6) Actions of the Directors that require consultation from the
Board of Commissioners; and 6) Joint Meetings of the Board of Commissioners and the Board of Directors
Chapter VI Relations with the Stakeholders
Chapter VII Mechanism of Change
Chapter VII Closing
The Board Charter of the Board of Commissioners is fully disclosed on the Company’s website (www.BTN.co.id) on the Investor Relation - Governance Policies menu.
Duties and Responsibilities of the Board of supervision on the implementation of the Long-Term Plan
Commissioners (RJP), Company’s Work Budget and Plan (CBP), Articles of
In accordance with the Articles of Association and the Association, and GMS Resolutions, rules and legislation,
authority granted by the GMS, set forth in the Code of Conduct in the best interest of the bank and in accordance with
of the Board of Commissioners, the Board of Commissioners the Company’s vision and mission; to carry out special
has the following duties and responsibilities: duty granted in the Articles of Association, rules and
legislation, and/or GMS Resolutions;
Duties of President Commissioner are: 2. To compile the segregation of duties of the members of
1. To ensure the Board of Commissioners is well-functioning; Board of Commissioners in accordance with the expertise
2. To lead the meeting of the Board of Commissioners; and experience of each member;
3. To coordinate and establish the meeting agenda of Board 3. To compile work program and performance targets each
of Commissioners effectively, including policies and year for the Board of Commissioners as well as peer
strategic issues; review mechanism on the Board of Commissioners’
4. To create openness culture and facilitate constructive discussion; performance;
5. To ensure the right and appropriate information delivery in 4. To compile the information delivery mechanism from the
between the Board of Commissioners with the Directors; Board of Commissioners to the Stakeholders;
6. To give suggestions and maintain an effective and healthy 5. To account for the execution of duties of the Board of
relationship with the Directors. Commissioners on GMS;
6. Related to the GCG Improvement Action Plan, Board
Duties and main responsibilities of the Board of of Commissioners carry out the supervision on the
Commissioners, namely: implementation of healthy loan management and the
1. To supervise the Company’s management policy GCG implementation in every activity of the Company on
and implementation by the Directors, including the every level of the organization;
7. Related to the implementation of GCG Improvement 2. To perform the tasks specifically granted to them in the
Action Plan, Board of Commissioners carries out active Articles of Association, legislation, the provisions of Bank
supervision through Board of Commissioners’ Meetings Indonesia and/or GMS Resolutions, among others:
and/or Board of Commissioners’ Meeting with the ›› To supervise and advise the Directors in conducting
Directors, on the matter of GCG Implementation. Bank’s business activities (Directors’ management
policies).
Authorities of the Board of Commissioners are: ›› To supervise the effectiveness of Governance on every
1. To request information and/or explanation from the level of the Bank’s organization.
Directors and/or Bank Officers reporting directly to ›› To supervise the risk management, compliance, and
the Directors on all issues related to the Company’s Internal Audit.
management; ›› To monitor and evaluate the Directors’ performance.
2. To know every policy and action that has been done and ›› To supervise the Bank’s compliance with the Bank
will be done by the Board of Directors; Indonesia Regulation and the prevailing legislation, and
3. To request the Directors to attend Board of the commitment to Bank Indonesia and other parties.
Commissioners’ Meeting; ›› To direct, monitor, and evaluate the implementation of
4. To request information and/or explanation from the RJP, RBB, and Company’s Work Budget and Plan (CPB).
Officer reporting directly to the Board of Directors on ›› To review the development and utilization of
issues related to the Company’s management, on the information technology.
implementation of duties and the authorities of Board of 3. To provide opinions and suggestions in writing to the
Commissioners, without prior knowledge to the Directors; GMS regarding the Company’s Long Term Plan (RJP), Bank
5. To appoint and dismiss a Secretary of the Board of Business Plan (RBB), and Company’s Work Budget and
Commissioners, upon the suggestion from Bicolor Plan (CBP) proposed by the Directors;
Series A Shareholder; 4. To provide opinions to the GMS related to the important
6. To establish Audit Committee, Remuneration and strategic issues, including opinions on the adequacy of
Nomination Committee, Risk Monitoring Committee, Bank’s Vision and Mission.
and other committees as deemed necessary taking into 5. To examine and review the periodic reports and Annual
account the needs of the Company; Reports prepared by the Directors, including the Bank’s
7. To manage the Company’s management in certain internal audit report.
circumstances for a period of time in accordance with the 6. To ensure that the Directors has followed-up on audit
Company’s Articles of Association; findings and recommendations from the Internal Audit
8. To attend the Board of Directors’ Meeting and provide Task Force, external auditors, Bank Indonesia supervisory
opinions on the matters discussed. results, and/or other authorities’ supervision results.
9. To carry out other supervision authority as long as it is 7. To ensure that established committees perform their
not contradictory to rules and legislation, Articles of duties effectively.
Association, and/or the GMS Resolutions. 8. To review the organizational structure
9. To review the corporate work culture
Implementation of Supervisory Duties of the 10. To monitor the FLPP loan fund reimbursement.
Board of Commissioners 11. To direct and provide advice to the Directors on the
Throughout 2017, the Board of Commissioners has directed, lending that is consulted to the Board of Commissioners
monitored, and evaluated the strategic policy implementation by the Board of Directors.
as a form of supervisory duty of the Board of Commissioners,
which includes: Board of Commissioners’ Competence Training and
1. To supervise the management policy, the management of Development Program
the Bank by the Directors includes supervision on: In addition to the supervisory task, the Board of Commissioners
›› Bank Business Plans 2017-2019 and the realization also performs training/seminar to improve the banking
›› Annual Company’s Work Budget and Plan (CBP) and knowledge and development update in banking and other
the realization fields in order to support the duties and responsibilities. Each
›› Monthly Performance Evaluation member of the Company’s Board of Commissioners plans a
›› Legislation, in the interest of the Bank and in accordance minimum of 1 (once) a year to attend training and/or seminar,
with the Bank’s business objectives and objectives. both inside and outside the country. The following is the
›› Blueprint of the Company Transformation seminar/workshop attended by the members of the Board
of Commissioners throughout January - December 2017.

No Name Date Place Training/Seminar Name

1 Arie Coerniadi April 22-30, 2017 Europe Program International “Risk Culture & Leadership ERM
(Geneva, Prague & Budapest) Master Class & Benchmarking In Europe”
May 18-19, 2017 Rimba Jimbaran Bali by Ayana Deeper Understanding of IFRS 9 & BASEL IV and
Progress of BASEL III Implementation”
October 17-19, 2017 Prague, Czech and Austria Internal Capital Adequacy Assessment Process (ICAAP)
2 Kamaruddin Sjam Thursday, February 16, Jakarta Cyber Security and Integrating Operational Risk With the
2017 Mitigation Factors and Digital Payment Seminar: A New
Era In the Way We Do Payment
April 22-30, 2017 Europe Program International “Risk Culture & Leadership ERM
September 16-23, 2017 New Zaeland Integration of GRC
3 Lucky Fathul Aziz February 16, 2017 Jakarta Cyber Security and Integrating Operational Risk With the
Hadibrata Mitigation Factors and Digital Payment Seminar: A New
March 23-24, 2017 Four Seasons Hotel Jakarta Seminar BARa Risk Forum "Refocusing On Credit
Risk Management, Credit Risk Model, Pricing & Being
Prepared for Upcoming Regulations"
October 17-19, 2017 Prague, Czech and Austria Internal Capital Adequacy Assessment Process (ICAAP)
4 I Wayan Agus Mertayasa February 16, 2017 Jakarta Cyber Security and Integrating Operational Risk With the
Mitigation Factors and Digital Payment Seminar: A New
Friday, February 10, 2017 Denpasar Expand Leadership Program for BOD/BOC
Progress of BASEL III Implementation
July 22-29, 2017 Sydney - Australia IIA CONFERENCE 2017
September 20-26, 2017 London, United Kingdom Living Wills, Planning for Bank Recovery and Resolution
5 Maurin Sitorus February 16, 2017 Jakarta Cyber Security and Integrating Operational Risk With the
Mitigation Factors and Digital Payment Seminar: A New
February 9, 2017 Denpasar Expand Leadership Program for BOD/BOC
April 22-30, 2017 Europe Program International “Risk Culture & Leadership ERM
March 23-24, 2017 Four Seasons Hotel Jakarta Seminar BARa Risk Forum "Refocusing On Credit
November 21-24, 2017 Hongkong Finance For Non-Finance Manager Program
6 Iman Sugema March 23-24, 2017 Four Seasons Hotel Jakarta Seminar BARa Risk Forum "Refocusing On Credit
7 Garuda Wiko Saturday, March 25, 2017 Jakarta Risk Management Competence Certification Level 2 for
Commissioner
September 20-26, 2017 London, United Kingdom Living Wills, Planning for Bank Recovery and Resolution
2-5 Agustus 2017 Bali Expand Leadership Program For BOD/BOC
8 Sumiyati May 18-19, 2017 Rimba Jimbaran Bali by Ayana Deeper Understanding of IFRS 9 & BASEL IV and
Board of Commissioners’ Meeting Board of Commissioners’ Decree

Board of Commissioners’ Meeting throughout 2017 in relation Throughout 2017, the Board of Commissioners has issued
to the frequency, agenda, and participants of the Meeting is 179 (one hundred and seventy-nine) letters containing
further discussed in a separate chapter titled ‘Meeting of supervisory and advisory decisions, among others, related
the Board of Commissioners and Directors’ in the Corporate to the following aspects:
Governance Chapter on this Annual Report.
No Decisions
1 Follow-Up Recommendations of Findings from the External and Internal Auditors
2 KAP Appointment to carry out the Financial Report Statement Audit
3 Implementation of Anti-Fraud Strategy and Whistleblowing System
4 Plan of Equity Participation in subsidiaries
5 Compilation and Implementation of the Company Transformation Blueprint
6 Loan Problem Handling Strategy
7 Compilation of CBP and RBB 2018-2020
8 Implementation of Human Resource Management and Corporate Culture
9 Loan Management Improvement
10 Third Party Fundraising Strategies
11 Approval of Bank Policies in accordance with the Legislation
Board of Commissioners’ Recommendations, Approval, ›› Loan Problem Handling Strategy

and Advice ›› Third Party Fundraising Strategies
In every decision of Board of Commissioners’ and Board of ›› Loan Management Improvement
Directors’ Meeting in the Minutes of Meeting, the follow ›› Implementation of Human Resource Management and
up will be monitored at the next meeting. Throughout Corporate Culture
2017, the Board of Commissioners has provided various
Recommendations, Approvals, and Advice to the Shareholders. Performance Assessment
The Recommendations, Approvals, and Advice, among others, In order to achieve effective supervisory and advisory
are as follow: function, the Board of Commissioners assesses the
1. Board of Commissioners’ Recommendation performance of the Board of Commissioners themselves,
›› KAP Appointment to carry out the Financial Report Directors both individually and jointly, and all committees
Statement Audit as the supporting organ of the Board of Commissioners.
›› Plan of Equity Participation in subsidiaries The performance assessment is described as follows:
›› Boundaries and Criteria of Directors’ action that do not
require the Approval of the Board of Commissioners On the Board of Commissioners
and Shareholders. General Policy on the performance evaluation of the Board
2. Board of Commissioners’ Approval of Commissioners refers to the Board Charter of the Board
›› Letter of Collective Agreement on the Working Guidelines of Commissioners. Performance evaluation of the Board of
of the Board of Commissioners and Board of Directors Commissioners shall be done based on the criteria related to
›› Blueprint of the Company Transformation the execution of duties and responsibilities of the Board of
›› Anti-Money Laundering (APU) and Prevention of Commissioners, and the submission of Board of Commissioners’
Financing of Terrorism (PPT) Programs performance report will be evaluated by the Shareholders.
›› Business Continuity Management Policy
›› Recovery Plan Procedure of Board of Commissioners’ Performance
›› Criteria and Authority of the Directors in accordance Assessment
with the Articles of Association Procedure of Board of Commissioners’ performance assessment
›› Provision of Funds to Related Parties shall be held on the GMS forum. GMS is a meeting attended by
›› CBP 2018 and RBB 2018-2020 shareholders who meet quorum requirements and is held by the
3. Board of Commissioners’ Advice Directors at the request of the Board of Commissioners. Board
a. Recommendation Follow-Up from the External and of Commissioners or shareholders representing 1/10 of the
Internal Auditors total number of shares in decision-making and/or for decision-
b. Implementation of Anti-Fraud Strategy and making on matters whose authorities are not submitted to the
Whistleblowing System Board of Directors or Commissioners.

Board of Commissioners’ Performance Assessment Criteria measurement instruments, such as:

Implementation of the performance evaluation of the Board ›› Board of Commissioners’ Key Performance Indicator (KPI)
of Commissioners shall be based on assessment criteria ›› Bank’s GCG Self-Assessment
related to the implementation of the Board of Commissioners’ ›› ASEAN CG Scorecard
functions in conducting supervision and advising the Board of
Directors on behalf of the Company and the Shareholders, Board of Commissioners’ Key Performance Indicator (KPI)
in particular, the interested parties in general which will be The performance assessment of the Board of Commissioners
evaluated by the Shareholders. based on the Performance Indicator shows that overall the
Board of Commissioners has successfully achieved the
Board of Commissioners’ assessment criteria has several predetermined targets.
Table: Achievement of the Board of Commissioners’ Performance Indicator 2017
No. Board of Commissioners’ Work Program Target Realization

KPI KPI Mark
I. Supervisory & Directive Aspects
1 Company's Plan Review & Response 3 times 4 5
2 Company's Performance Review & Response 8 times 12 20
3 Review of Follow-Up Results/Findings of Internal/External Audit 6 times 6 5
4 Board of Commissioners’ Meeting 24 times 51 20
5 Providing Feedback/Advice/Approval/Suggestions/Instructions to the Directors 100 times 110 20
II. Reporting Aspect
1 Preparing & Delivering Annual Work Program 1 time 1 5
2 Delivering Report/Opinion to Shareholders/GMS 4 times 4 10
3 Delivering Report on the Duties of the Supervisor (Regulator) 2 times 2 5
III. Other/Dynamic Aspect
1 Induction 1 time 1 2
2 Competence Development 8 times 28 3
3 Ratification of WP&B and LPT (AGMS) 2 times 2 5
Parties Conducting the Assessment on the Board of section ‘Developing the Commitment to Sustainable GCG’
Commissioners on this Annual Report.
Assessment is based on the criteria of Assessment of Duties and
Responsibilities of the Board of Commissioners in the GCG self- On the Directors
assessment as stipulated in Bank Indonesia Circular Letter No. PBI The performance assessment of the Directors is determined
No. 15/15/PBI/2006 dated April 29, 2013, on the Implementation on the management duties and responsibilities as stated in
of Good Corporate Governance for. Commercial Banks. the Code of Conduct of the Board of Directors, the Articles of
Association, and the Shareholder Mandate as set forth in the
In addition, the Board of Commissioners has assessment benchmark of performance evaluation criteria for the Board of
mechanism, referring to POJK and BUMN Ministry regulation Directors and each Director individually. Each member of the
as follows: Board of Directors is evaluated by the Board of Commissioners
1. Self-Assessment in line with SEOJK No. 32/SEOJK.04/2015 and submitted to the Shareholders. The Board of Directors’
Board of Commissioners has formulated Key Performance performance evaluation is conducted in the GMS forum.
Indicator (KPI) based on 3 (three) aspects, i.e. supervisory
and guidance aspects, reporting aspects, as well as On the Committees
dynamic aspect (other than those related to the duties and Performance Assessment on the Board of Commissioners’
responsibilities of Board of Commissioners). Committee is determined based on the duty in the Charter
2. The Board of Commissioners is also assessed by the GCG Committee and Work Program of the Committee. The
Self-Assessment mechanism based on the POJK No.55/ basis of performance appraisal of the committee includes
POJK.03/2016, and (1) realization of the committee’s report in accordance
3. Third Party Assessment with international standard, with their responsibilities, (2) recommendations given, and
i.e. ASEAN CG Scorecard. Further explanation on the (3) meeting frequency of the committee in order to support the
Bank GCG self-assessment results based on the BI/OJK supervisory and advisory function of the Board of Commissioners.
provisions and ASEAN CG Scorecard are provided in the Further explanation can be referred to in Chapter of the Board of
Commissioners’ Committee on this Annual Report.
Board of Directors
The Board of Directors is responsible to manage and set the Company’s

strategic directive, by utilizing and maintaining the Company’s assets for
the objective and interest of the Company. Further, the Directors report the
duties implementation and responsibilities to the Board of Commissioners.
Number and Composition of the Board of Directors

Throughout 2017, the composition of the Company’s Board of
Directors changed twice:
1. Based on the Annual GMS dated March 17, 2017, the
Company’s Directors per April 2017 was 8 (eight) people.
The composition was as follows:

1 Maryono President Director Reappointed by the Extraordinary General Meeting of Shareholders
(EGMS) dated March 17, 2017
2 Iman Nugroho Soeko Chief Financial Officer (CFO) Annual General Meeting of Shareholders (AGMS) dated February 25, 2014
3 Adi Setianto Chief Information Officer (CIO) Annual General Meeting of Shareholders (AGMS) dated March 24, 2015
4 Oni Febriarto R. Managing Director Commercial Banking Annual General Meeting of Shareholders (AGMS) dated March 24, 2015
5 Handayani Managing Director Consumer Banking Annual General Meeting of Shareholders (AGMS) dated April 12, 2016
6 R. Mahelan Prabantarikso Managing Director Strategy, Compliance & Risk The Company’s Annual General Meeting of Shareholders (AGMS)
dated March 17, 2017
7 Nixon L.P. Napitupulu Chief Credit Officer (CCO) The Company’s Annual General Meeting of Shareholders (AGMS)
8 Budi Satria Managing Director Distribution Network The Company’s Annual General Meeting of Shareholders (AGMS)
2. Based on the Extraordinary GMS dated December 28, the changes in the Directors’ titles. With the dismissal,
2017, the Company’s Management changed because of changes to the nomenclature of office, assignment, and
the dismissal of Mrs. Handayani and the appointment of appointment of members of the Company’s Board of
Mr. Dasuki Amsir as the Director of Distribution & Network Directors, the composition of the Board of Directors shall
effective immediately since December 18, 2017, and be as follows:
Composition of Company’s Directors Per December 31, 2017

1 Maryono President Director Reappointed by the Extraordinary General Meeting of Shareholders
(EGMS) dated March 17, 2017
2 Iman Nugroho Soeko Director of Finance & Treasury Annual General Meeting of Shareholders (AGMS) dated February 25, 2014
3 Adi Setianto Director of IT & Operation Annual General Meeting of Shareholders (AGMS) dated March 24, 2015
4 Oni Febriarto R. Director of Commercial Banking Annual General Meeting of Shareholders (AGMS) dated March 24, 2015
5 Budi Satria Director of Consumer Banking The Company’s Annual General Meeting of Shareholders (AGMS) dated
March 17, 2017
6 R. Mahelan Prabantarikso Director of Strategy, Compliance, and Risk The Company’s Annual General Meeting of Shareholders (AGMS) dated
March 17, 2017
7 Nixon L.P. Napitupulu Director of Collection, Asset Management, and Legal The Company’s Annual General Meeting of Shareholders (AGMS) dated
March 17, 2017
8 Dasuki Amsir Director of Distribution & Network Extraordinary General Meeting of Shareholders (EGMS) dated
December 28, 2017

The appointment of the Board of Directors is based on the fit Fit and Proper Test
and proper test that refers to POJK No.27/POJK.03/2016 on All candidates of the Board of Directors for the 2017
the fit and proper test for the Executive Parties of Financial period have passed the fit & proper test and obtained OJK
Services Institution. The regulation stated that all candidates approval before being appointed to the Company’s Board of
of members of Board of Directors must pass the fit and proper Directors by the GMS to carry out their duties and functions
test and must obtain approval from the OJK before carrying in their positions.
out his/her duties and responsibilities in his/her position.
List of competencies and fit and proper test of the Board of Directors is as follows:
Name Position Competence and/or Expertise Fit and Proper Test Organizer Effective Date
Maryono President Director ›› Banking, Leadership Financial Services Authority March 17, 2017
›› Strategic Management
Iman Nugroho Director of Finance & Treasury ›› Finance Financial Services Authority June 16, 2014
Soeko ›› Treasury
Adi Setianto Director of IT & Operation ›› Operation Financial Services Authority June 8, 2015
›› IT
Oni Febriarto R Director of Commercial Banking ›› Credit Financial Services Authority May 19, 2015
›› Commercial Banking
R. Mahelan Director of Strategy, Compliance, ›› Strategic Financial Services Authority July 25, 2017
Prabantarikso and Risk ›› Risk Management
Nixon L.P. Director of Collection, Asset ›› Loan Financial Services Authority July 25, 2017
Napitupulu Management, and Legal ›› Risk Management
Budi Satria Director of Consumer Banking ›› Credit Financial Services Authority July 25, 2017
›› Consumer Banking
Dasuki Amsir Director of Distribution & Network ›› Finance Financial Services Authority
›› Distribution & Network
Appointment and Dismissal of the Board of Directors may be discharged if the incumbent
he replacement and/or appointment of members of the does not carry out his/her duties well; does not implement
Company’s Board of Directors has taken into consideration the provisions of the law and Articles of Association; involved
the recommendations of the Remuneration and Nomination in actions that harm the Company and are deemed guilty
Committee, whereby the Remuneration and Nomination by a court decision. In addition to the reasons stated above,
Committee submits recommendation of candidates for the GMS also has the rights to dismiss any member of Board
Board of Directors to the Minister of SOEs as the Controlling of Directors with appropriate reasons in the Company’s
Shareholder to be submitted to the GMS. interests and purposes.
Appointment and dismissal of members of the Company’s Directors’ Job Descriptions

Board of Directors shall be conducted by the GMS after the fit The Company’s Board of Directors continuously manages the
and proper test process referring to PBI No. 12/23/PBI/2010 Bank in accordance with the authority and responsibilities as
on the Fit and Proper Test. regulated in the Articles of Association, prevailing legislation,
the Board Charter of the Directors, and Directors’ Decree on
Article 11 of the Articles of Association states that a Member the Directors’ Job Description, as follows:
No Name Position Duties and Responsibilities

1 Maryono President Director To supervise the Internal Audit Division (IAD), Corporate Secretary Division
(CSD), Human Capital Management & Culture Specialist Division (HMCD),
Human Capital Organization Development & Policy Division (HCOD), Learning
Center Division (LCD)
2 Iman Nugroho Soeko Director of Finance & Treasury To supervise the Finance & Accounting Division (FAD), Treasury Division (TRSD),
Institutional Banking Division (IBD)
3 Adi Setianto Director of IT & Operation To supervise the IT Strategic Planning & Development Division (ITPD), IT Operation
Division (ITOD), Operation and Business Support Division (OBSD), Credit Operations
Division (COD), Procurement and General Services Division (PGSD)
No Name Position Duties and Responsibilities

4 Oni Febriarto R. Director of Commercial Banking To supervise Commercial Funding & Services Division (CMFD), Commercial
Lending Division (CMLD), Small Medium Enterprise Lending Division (SMLD) ,
Corporate & Loan Syndication Division (CLSD).
5 R. Mahelan Prabantarikso Director of Strategy, Compliance, To supervise the Corporate Strategy & Performance Management Division
and Risk (SPD), Transformation Management Office (TMO), Compliance & Governance
Division (CMPD), Policy & Procedure Desk (PPD), Enterprise Risk Management
Division (RMD)
6 Nixon L.P. Napitupulu Director of Collection, Asset To supervise Retail Risk Division (RRD), Commercial Risk Division (CRD),
Management, and Legal Consumer Collection & Remedial Division (CCD), Asset Management Division
(AMD), Legal Division (LGD)
7 Budi Satria Director of Consumer Banking To supervise the Non-Subsidized Mortgage & Consumer Lending Division
(NSLD), Subsidized Mortgage Division (SMD), Retail Funding & Services Division
(RFSD), Wealth Management Division (WMD), Sharia Division (SHAD)
8 Dasuki Amsir Director of Distribution & Network To supervise Digital Channels Division (DCD), Service Quality & Distribution
Division (SQND), Regional Offices
Induction Program or Orientation for New In addition, the Board of Directors are prohibited from
Members of the Board of Directors holding another position as the President Director or
Following the appointment of new members of the Board of other Director position in a State-Owned Enterprise,
Directors and Board of Commissioners, the Corporate Secretary Regional Government Owned Enterprise and Private
has conducted an orientation program in April 2017 and will sector or other positions related to the management of
conduct an advanced orientation program in January 2018. the Company, as well as structural positions, and other
The purpose of this orientation program is to provide a general functional positions in central and/or local government
introduction to the Company’s conditions so that members of agencies/institutions as well as other positions that could
the Board of Directors and Board of Commissioners can work potentially result in a conflict of interest in accordance
together as a solid team, given their different backgrounds. The with the provisions of the Articles of Association and
material presented in the orientation program are as follows: other legislation in force.
1. Outline of the role, duties, and responsibilities of Board of
Directors and Board of Commissioners Code of Conduct of the Board of Directors
2. Compliance and GCG implementation as well as Risk (Board Charter)
Management The Directors has guidance and work order including work
3. The Company’s audit result ethics, working time, and meeting stipulated in:
4. Company culture implementation 1. Directors’ Decree No. 07/DIR/KD/CMPD/2017 on
5. Overview of the Company’s business the Code of Conduct of the Board of Directors as the
amendment to the Joint Decree (SKB) of the Board
Board of Directors’ Independence of Commissioners No. 01-DEKOM-BTN/2016 and
Independence is an important quality that is required from the Directors No. SKB- 01/DIR-BTN/2016 on the Code of
Board of Directors, especially in relation to decision making and Conduct of the Board of Commissioners and Directors
actions taken to be in line with the objective of the Company (Board Manual).
and solely for the interest of the Company. 2. Board of Directors Regulation No. 16/PD/CMPD/2015
dated December 31, 2015, on the Code of Conduct.
Board of Directors’ Independence Criteria
The Board of Directors are required to not have affiliate The Board Charter of the Board of Directors shall make
relationships related to finance and/or family relationships with the Directors carry out their duties effectively and it shall
fellow members of the Board of Commissioners, Board of Directors be used as a performance assessment tool for Board of
and/ or Controlling Shareholders or relationships with the Bank, Directors. The Board Charter stipulated various aspects,
as well as manage relationships and/or shareholding and thus, among others:
can carry out their duties and responsibilities independently.

Code of Conduct of the Board of Directors (Board Charter)

Chapter I Introduction
Chapter II Values
Chapter III Work Guidelines and Order, consists of:
A. Number and Composition of the Board of Directors K. Segregation of Duties and Authorities of the Board of Directors
B. Requirement of the Member of Board of Directors L. Prohibition
C. Criteria of the Director of Compliance Function M. Transparency
D. Board of Directors’ Concurrent Positions N. Work Ethics
E. Appointment and Dismissal of the Board of Directors O. Working Time
F. Board of Directors’ Tenure P. Meeting
G. Board of Directors’ Duties and Responsibilities Q. Leadership
H. Directors’ Obligation R. Board of Directors’ Performance Assessment
I. Rights and Authorities of Board of Directors S. Reporting and accountability
J. Directors’ Actions to be Approved by the Board of Commissioners T. Committees
The Board Charter of the Board of Directors is fully disclosed on the Company’s website (www.btn.co.id) on the Investor Relation - Governance Policies menu.
Board of Directors’ Duties and Responsibilities c. Setting compliance system and procedures that shall
1. The Board of Directors shall be responsible for carrying out be used to compile the Bank’s internal guidelines and
all actions relating to the maintenance and responsibility regulations;
of the Company’s management for the Company’s d. Ensuring every policy, regulation, system, and
benefit in accordance with the Company’s purposes and procedures, as well as business activities conducted
objectives and to represent the Company, both inside by the Bank, is in accordance with Bank Indonesia
and outside the Court on all matters and all occurrences Regulation, Financial Services Authority, and prevailing
with limitations as regulated in the Legislation, Articles of rules and legislation, including Sharia Principles for
Association, and/or GMS Resolutions. Sharia Commercial Bank and Sharia Business Unit;
2. The President Director is the Directors’ Coordinator. His/ e. Minimizing Bank’s Compliance Risks;
her duties are as follow: f. Taking preventive actions to have the policies and/
a. To lead the Directors’ Meetings; or decisions made by Bank’s Board of Directors
b. To create openness culture and facilitate constructive aligned with the provisions of Bank Indonesia and the
discussion; prevailing laws and regulations;
c. To provide advice to the Directors’ member related to g. Carrying out other tasks related to Compliance Function.
the management effectiveness. h. Reporting the duties implementation and responsibilities
d. To maintain relation and solidity between the Directors to the President Director, with copy to the Board of
on the management duties. Commissioners at least quarterly
e. To maintain effective and healthy relationship with the
Board of Commissioners. Report of Board of Directors’ Duties
3. Each member of the Board of Directors shall be fully liable Throughout 2017, the Directors’ members have performed
for the loss of the Company caused by errors or omissions their stewardship and reporting responsibilities submitted to
of the members of the Board of Directors in performing their the Board of Commissioners in the form of:
duties. Directors’ member shall not be held accountable for 1. Performance Review report
the loss as mentioned above, if proven that: 2. Bank Health Rate report
a. The loss is not caused by his/her fault or negligence; 3. Compliance Function report
b. The Director has conducted management activities in 4. Good Corporate Governance Implementation report
good faith and with prudence that are consistent with 5. Audit Findings Follow Up report
the Company’s goals and objectives;
c. The Director has no conflict of interest, be it directly In addition, the Directors also has conducted the corporate
or indirectly on the management action that resulted governance principles in all Bank’s activities in all level of the
in such loss; organization throughout 2017 as follows:
d. The Director has taken necessary actions to prevent 1. Implement the corporate governance as required by POJK.
such loss from arising or continuing. 2. Implement the corporate governance as required by
4. Duties and Responsibilities of the Directors of Compliance Asean CG Scorecard
Function, include: 3. Disseminate and implement Code of Conduct
a. Formulating strategies to empower the Compliance Culture; 4. Report the gratification to KPK
b. Suggesting compliance policies or other compliance 5. Conduct Self-Assessment of Corporate Governance
principles that shall be set forth by the Directors; Implementation in accordance with POJK
6. Compile and submit Annual Report & Sustainability Report
Board of Directors Training and Competence to finance and other fields that support the implementation of
Development Program duties and responsibilities.
Periodically, the Company provides an opportunity to the
Board of Directors to attend education/training/workshops/ In 2017, the members of the Company’s Directors have
seminars, both inside country and abroad, to increase attended various programs to increase competence in the
knowledge about banking and the latest developments related form of conference/training/seminar/workshop as follows:
Directors’ Training and Development in 2017
Name and Competence Development/

No Position Time Place Training Material Organizer
1 Maryono April 27-29 Bandung, BUMN Executive Leadership Program Ministry of SOEs & Forum Human
(President Indonesia – 1 (ELP-1) Capital Indonesia (FHCI)
Director)
May 12-13 Bangkok, WSBI Innovation Workshop Asia World Savings and Retail Banking
Thailand Institute (WSBI)
November 22-28 Cape Town, South Workshop WSBI General Assembly & World Savings and Retail Banking
Africa Conference Institute (WSBI)
2 Iman Nugroho April 27-29 Bandung BUMN Executive Leadership Program Ministry of SOEs & Forum Human
Soeko – 1 (ELP-1) Capital Indonesia (FHCI)
(Director)
18-19 May 2017 Bali Seminar BARA Risk Forum BARA
August 27-29 Frankfurt and Intensive Wealth Management and Risk MM UGM, in cooperation with IBI and
Vienna Management Refreshment Programs LSPP
for Executives
3 Adi Setianto April 27-29 Bandung, BUMN Executive Leadership Program Ministry of SOEs & Forum Human
(Director) Indonesia – 1 (ELP-1) Capital Indonesia (FHCI)
September 11-15 Cambridge, Asean Global Leaderships SRW & Co

Inggris
4 Oni Febriarto April 27-29 Bandung, BUMN Executive Leadership Program Ministry of SOEs & Forum Human
(Director) Indonesia – 1 (ELP-1) Capital Indonesia (FHCI)
5 R Mahelan April 5-6 Jakarta Risk Management Level 5 Certification PT Peak Pratama Indonesia
Prabantarikso Training
(Director)
Saturday, April 29, Bandung BUMN Executive Leadership Program Ministry of SOEs & Forum Human
2017 – 1 (ELP-1) Capital Indonesia (FHCI)
August 24-25, Bali Training Corporate Governance Indonesian Institute Corporate

2017 Leadership Program (CGLP) Directorship (IICD)
April 25 Jakarta Risk Management Level 5 Certification LSPP

Training
December 20-21 Rome, Italy ISER Conference 2017 The International Society for Engineers
and Researchers (ISER)
6 Nixon Napitupulu April 5-6 Jakarta Risk Management Level 5 Certification PT Peak Pratama Indonesia
(Director) Training
April 25 Jakarta Risk Management Level 5 Certification LSPP

Training
7 Budi Satria April 5-6 Jakarta Risk Management Level 5 Certification PT Peak Pratama Indonesia
(Director) Training
April 25 Risk Management Level 5 Certification LSPP

Training
April 27-29 Bandung BUMN Executive Leadership Program Ministry of SOEs & Forum Human
– 1 (ELP-1) Capital Indonesia (FHCI)
May 12-13 Bangkok, WSBI Innovation Workshop: Innovation World Savings and Retail Banking
Thailand Hacks ASIA Share Insights and Learn Institute (WSBI)
from Your Peers
November 22-28 Cape Town, South Workshop WSBI General Assembly & World Savings and Retail Banking
Africa Conference Institute (WSBI)
8 Dasuki Amsir Appointed as Director on EGMS dated December 28, 2017

Directors’ Decree
In addition to the Board of Directors’ meetings that have been 2017, the Board of Directors has issued various Decree,
scheduled and resulted in a number of decisions, throughout including the following:
No Field Decisions
1 Loan Loan approval and loan restructuring in accordance with the authority of the Board of Directors
2 Financing Launching of new product, services, and activities
3 Transformation Transformation of Organizational Structure; Stipulation of the Company's New Vision and Mission
4 Network ›› Addition of Regional Offices, Branch Offices, Sub-Branch Offices, Conventional and Sharia Cash Offices, and ATM machine networks;
›› Smart Branch launching.
5 Human Resources Employees’ Promotion and Mutation
6 Risk Management Recovery Plan Compilation
7 Strategic Plans CBP 2018 and RBB 2018-2020
Performance Assessment
The Annual General Meeting of Shareholders is a forum in which The result of the evaluation on the Board of Directors’
the Board of Directors reports and accounts the Company’s collective performance and individual performance of each
performance to the shareholders based on the Management’s Member of the Board of Directors which is an integral part of
Performance Contract, i.e. to assess the performance of the the compensation scheme and provision of incentives for the
Board of Directors individually and the performance of each Members of the Board of Directors.
committee as the supporting organ of the Board of Directors.
The performance assessment is described as follows: Board of Directors’ Performance Assessment Criteria
On the Directors The Board of Directors’ assessment utilizes a number of
General Policy on the performance evaluation of the Board of measurement tools, including:
Directors refers to the Board Charter of the Board of Directors. 1. Board of Directors’ Key Performance Indicators (KPI)
Implementation of the Board of Directors’ performance The performance of the Board of Directors and each
assessment is based on the performance evaluation member of the Directors shall be evaluated by the Board
benchmarks of each member of the Board of Directors. of Commissioners. The KPI realization of each member of
Directors is reported to the Board of Commissioners and
Board of Directors’ Performance Assessment further reviewed by the Remuneration and Nomination
Implementation Procedures Committee as consideration in determining the
The procedure for evaluating the Board of Directors’ remuneration of each member of the Directors.
performance is discussed in the GMS forum. GMS is a meeting
that is attended by the Shareholders who meet quorum criteria The individual performance of the Board of Directors can
and organized by the Board of Directors at the request of be seen specifically in the individual KPIs comprising the
Board of Commissioners, Board of Directors, or shareholders Joint KPI and the KPI of the Directorate. Individual KPI of
who represent 1/10 of all the share; in order to make decisions the Directors are as follows:
and/or to decide matters that are not in the Board of Directors’
or Board of Commissioners’ authorities.
DIR DIR DIR Dist. DIR DIR DIR DIR

KPI PRESDIR ConB ComB Network CCO CIO CFO SCR
Rp Corporate Income realization
Corporate financial indicator
Market capitalization % growth
% ROE
% CIR
% NIM
% NPL
DIR DIR DIR Dist. DIR DIR DIR DIR

KPI PRESDIR ConB ComB Network CCO CIO CFO SCR
Rp asset growth
Rp loan growth
Rp DPK growth and CASA Ratio
Wholesale funding issuance (bonds, loan, securitization)
Rp Fee-Based Income
Customer Perspective
∆ Housing Loan Market share
MRI Rank
Customer Engagement Index
Business Process Perspective

PAB Implementation approved by the OJK
% strategic projects
# Red and White ATM & EDC
# branchless banking
% achievement of one million houses program
Rp Housing Loan Securitization (billion)
% implementation of transformation blueprint in line

with the roadmap
% Business process improvement projects
CSM and ICR
centralization operation, digitalization process
Smart collection
non-Performing Loan settlement
Passive loan settlement in line with the outcome
% Legal Risk Management
% Score Increase of State-Owned Enterprises Criteria for

Performance Excellence
% Partnership and Community Development Program (PKBL)

realization
CGPI Score
% GRC improvement projects
Learning & Growth Perspective

Earnings Per employees
Employee Engagement Index
Culture Assessment Index
Division and Regions
% Implemented IT project
Weight - - - - - - - -
KPI 12 13 13 11 12 12 11 11
Keterangan PRESDIR (President Director) DIR CCO (Direktur Chief Credit Officer)
DIR ConB (Managing Director Consumer Banking) DIR CIO Direktur Chief Information Officer)
Collegial KPI
DIR ComB (Director of Commercial Banking.) DIR CFO (Direktur Chief Financial Officer)
Unit KPI DIR Dist.Network (Director of Distribution & Network) DIR SCR (Direktur Strategy, Compliance & Risk)

2. Board of Directors’ Work Plan framework of the Company’s development and execution
The Board of Directors has compiled Work Plan as the of Shareholders’ assignment and to fulfill the KPI target
Company’s target or focus in 2017. This is done in the compiled, consisting of:
No Field Activity
1 Loan To expand the market share for microloan segment, commercial, and corporate
2 Loan Quality To implement the Smart Collection program through smart mobile application optimization and icollection
3 Financing Share of wallet (SoW) captive market on the mass segment and to expand the emerging & affluent customers’ SoW
4 Fee-Based Income and To increase customer transaction activity by developing internet banking & mobile banking features and applications,
subsidiaries’ establishment and to offer digital banking services aimed at the emerging affluent segment
5 Sharia Business To map the potential of sharia business development at BTN Conventional Branch Office in accordance with the
potential of sharia market
6 Capital To increase profitability; To increase mortgage securitization
7 Human Capital To strengthen the focus of the 2017 cultural program aligned with increased productivity, process efficiency and the
implementation of GCG principles
8 Information Technology (IT) To strengthen the role of BTN Property Portal; Develop internet banking & mobile banking applications through
and Digital Banking platform upgrades and integration between systems such as iColl, iCash, and property portals.
9 GCG To perform banking management in accordance with prudence principle and Good Corporate Governance to increase
Shareholder Value.
10 Risk Management To strengthen integrated capital and liquidity management by developing a liquidity risk monitoring system
11 Network Development To expand the network with strategy focused on five key initiatives: a regionalization strategy; Branch expansion; Kiosk
placement; Agent banking; and Digital Channel.
3. Directors’ GCG Assessment 3. The Directors appoints the Corporate Strategic &
The assessment is conducted based on the criteria Performance Management Division (SPD) as a Liaison Officer
parameter of Assessment of Duties and Responsibilities to coordinate all task forces to carry out the Assessment.
of Directors in self-assessment of GCG implementation, 4. The FEB Team performs the assessment and makes a
as stipulated in OJK Circular Letter No. 13/SEOJK.03/2017 conclusion on the assessment result.
on GCG Implementation for Commercial Banks. 5. The FEB Team conveys the Assessment results to the
Ministry of SOEs to obtain approval.
In addition, the Board of Directors has assessment 6. The Ministry of SOEs determines the Assessment results.
mechanism, referring to POJK and Ministry of SOEs
as follows: The KPKU assessment criteria consist of 7 (seven) categories,
›› BUMN Superior Performance Assessment Criteria (KPKU) namely: Leadership, Strategic Planning, Customer Focus,
›› Bank’s GCG Self-Assessment Analysis Measurement and Knowledge Management,
›› ASEAN CG Scorecard Workforce Focus, Operational Focus, and Results.
Board of Directors’ Performance Assessment Using the In addition to the 7 (seven) categories, the SOEs
Superior Performance Criteria (KPKU) performance evaluation is also based on two dimensions’
The Assessment System for the SOE Performance Evaluation assessment, i.e.: (1) Process, through the factors of
is based on the Ministry of SOEs Letter No. S-153/S- Approach, Deployment, Learning, and Integration (ADLI),
MBU/2012 dated July 19, 2012, on the Performance Reporting and (2) Results, through the factors of Level, Trend,
Based on Approach of Superior Performance Criteria (KPKU) Comparison, and Integration (LeTCI).
of SOEs that adopted and adapted “Malcolm Baldridge
Criteria for Performance Excellence “. The Company assesses The Company’s KPKU score in 2017 increased by 23.00 points
the Directors’ performance by the KPKU Assessment, which or 3.97% to 602.00 with the bandscore in Emerging Industry
is described as follows: Leader compared to the 2016
1. The Ministry of SOEs established a Forum of SOEs
Excellence (FEB), to carry out the Assessment.
2. The Ministry of SOEs provides the FEB Team to the
Company who will carry out the Company’s Assessment.
The Company’s KPKU Score in the last 4 years are as follows:
660
602
600 579
540
492.25
480
2017 420
2016
360
2015 339.25
2014 300
KPKU Scoring System

876-1000
World
Leader
776-875
Benchmark
Leader
676-775
Industry
Leader
576-675
Emerging
Industry
476-575 Leader
Good
Performance
376-475
Early
276-375 Improvement
Early Result
Bank’s GCG Self-Assessment The Board of Directors will report their 2017 fiscal year
The Company’s Directors conducted the GCG Self- performance in the GMS which will be held in 2018.
Assessment. The Board of Directors’ performance
assessment refers to the CBP targets set at the beginning In addition to the Board of Directors’ performance
of the period and is set as Key Performance Indicators (KPI). assessment through the GMS, the Board of Directors’
The Board of Directors based on the accountability in the performance assessment is also conducted through a GCG
supervision aspect, risk mitigation, and compliance with all Self-Assessment pursuant to BI/OJK provisions and Third
of the applicable regulations. Party Assessment using international standards, i.e. ASEAN
CG Scorecard. Further explanation on the Bank GCG self-
Further explanation on the Bank’s GCG Self-Assessment of the assessment results based on the BI/OJK provisions and
Directors’ aspect based on the BI/OJK Regulation is described ASEAN CG Scorecard are provided in the section ‘Developing
in the ‘Company GCG Assessment’ on this Annual Report. the Commitment to Sustainable GCG’.
Parties Conducting the Assessment On the Committees

The Board of Directors’ performance assessment is done The Performance Assessment for the Committee reporting
by the Shareholders. The Board of Directors’ performance directly to the Board of Directors is determined based on the
assessment refers to the CBP targets set at the beginning committee work plan related to the Company work plan. The
of the period and is set as Key Performance Indicators (KPI). Committee’s work is reflected in the Committee work meeting
The Board of Directors based on the accountability in the and the decision of the committee meeting. The description on
supervision aspect, risk mitigation and compliance with all the Committee reporting to the Board of Directors is provided
of the applicable regulations. in a separate section of this Annual Report.

Working Procedures of the Board of

One of the key factors in good corporate governance is the 9. Directors’ Actions to be Consulted to the Board of
need to clarify the consistency and coordination of the Board Commissioners
of Commissioners and Directors’ functions. The functions are 10. Joint Meeting consists of the Meeting of Directors with
carried out by the relationship pattern between the Board Members of Board of Commissioners and Meeting of the
of Commissioners and Directors, which needs integrated, Board of Commissioners with the Members of Directors
sustainable, and accountable system and policies. 11. The Performance Evaluation consists of:
›› Performance Assessment of Board of Commissioners
In order to create a sustainable and accountable relationship and Board of Directors
between the Board of Commissioners and Directors, ›› Performance assessment of the members of Board of
they need to have common perspective and decent Commissioners and Directors
communication. Therefore, Board of Commissioners and ›› Performance evaluation of the Board of Commissioners
Directors set and agreed upon basic principles of the Board and Directors
of Commissioners and Directors’ working procedures, which
is stipulated in the Board of Commissioners’ Joint Decree No. Working Procedures Implementation of the Board
02/DEKOM-BTN/2017 and Directors’ Joint Decree No. 01/ of Commissioners and Directors
DIR-BTN/2017 on Working Procedures of the Company’s The Board of Commissioners and Directors shall mutually
Board of Commissioners and Directors. respect their duties, responsibilities, and authorities in
accordance with rules and legislation and Articles of
Working Procedures of the Board of Commissioners and Associations. The Board of Commissioners and Directors
Directors is a guideline for the Board of Commissioners and are always coordinating and working together to achieve the
Directors. It also described the activity’s phase structurally, company’s long-term goals and business continuity and be the
systematically, in an understandable and consistent manner, role model for their subordinates.
and acted as a reference for the Board of Commissioners and
Directors in carrying out their duties in order to achieve the In order to unite the perspective and decide on an important
Company’s Vision and Mission, in line with the GCG principles. issue concerning the continuity of the Company’s business and
operations, the Board of Commissioners and Directors meet
Working Procedures Scope of the Board of Commissioners and regularly in the Meeting Forum of Board of Commissioners-
Directors includes: Directors. The regular meeting discusses various agendas such
1. General Provisions as work plans, operations, business opportunities, and strategic
2. Director’s Report to the Board of Commissioners issues, that require the approval of the Board of Commissioners.
3. Board of Commissioners’ Audit on the Company’s Site This meeting is a form of coordination in order to discuss the
4. Board of Commissioners’ Advice to the Directors Directors’ regular reports and provide responses, notes, and
5. Directors’ Actions to be Approved by the Board of advice as outlined in the Minutes of Meeting.
Commissioners
6. Mechanism of Request for Approval to the Board of The decision in the meeting shall be based on the deliberation
Commissioners principles or by majority votes. This decision shall be followed-
7. Directors’ Actions to be approved by GMS after written up. Any member of the Board of Commissioners who has a
response from Board of Commissioners conflict of interest shall not vote in the voting process, and
8. Mechanism of Request of Response to the Board of the statement of this matter shall be recorded in the Minutes
Commissioners of Meeting.
Meetings of the Board of

Commissioners and Board of Directors
In order to unite the perspective and decide on an important issue concerning

the continuity of the Company’s business and operations, the Board of
Commissioners and Directors meet regularly in the Meeting Forum of Board
of Commissioners-Directors.
Board of Commissioners’ Meeting 2. Joint Meeting of the Board of Commissioners with

The Company’s Board of Commissioners must hold the Board the Directors regularly, at least once in 4 (four) months.
of Commissioners’ Meeting (internal meetings) and Board of The agenda shall discuss at least:
Commissioners’ meetings with the Board of Directors. The ›› Formulation of Bank’s Business Plan (RBB) and
internal meeting of the Board of Commissioners refers to the Company’s Work Budget and Plan (CBP);
Board of Commissioners Decree No. 01/DEKOM-BTN/2017 on ›› Performance Review (including discussion on APU
the Board Charter of the Board of Commissioners dated August PPT);
10, 2017. The Joint Meeting of the Board of Commissioners ›› GCG Implementation and Follow Up on the Findings of
with the Directors refers to Joint Decree of the Board of Audit, both Internal and External Audit.
Commissioners No. 02/DEKOM-BTN/2017 and Directors No.
01/DIR-BTN/2017 on the Code of Conduct of the Board of The mechanism of decision-making of the Joint Meeting is
Commissioners and Directors dated November 24, 2017. the same mechanism used in the Board of Commissioners’
Meeting. Hence, the decision-making of the Scheduled Board
In line with the Conduct, the Board of Commissioners’ Meeting of Commissioners’ Meeting must be attended by at least 2/3
consists of: (two third) of the total members of Board of Commissioners.
1. Board of Commissioners’ Internal Meeting, scheduled at
least once in 2 (two) months. The materials shall be delivered Frequency of the Board of Commissioners’ Meeting
to the participants at most 5 days prior to the meetings. If Throughout 2017, the Board of Commissioners has held 51
needed be, the Board of Commissioners’ Meeting shall be (fifty-one) Internal Meeting and 36 (thirty-six) Joint Meeting.
held by request of one or more Members of the Board of The details are as follow:
Commissioners, or at written request of the Directors. 1. Attendance of the Board of Commissioner in the Meetings
Meeting Board of Commissioners’

Name Position Period Board of Commissioners Meeting With Directors
Meetings Attendance % Meetings Attendance %
I Wayan Agus President Commissioner/ January 1 - 51 45 88.24 36 34 94.44

Mertayasa Independent Commissioner December 31, 2017
Kamaruddin Sjam Independent Commissioner January 1 - December 31, 2017 51 46 90.20 36 33 91.67
Arie Coerniadi Independent Commissioner 1 Jan-31 Dec 2016 51 45 88.24 36 33 91.67
Lucky Fathul Independent Commissioner November 15 - 18 17 94.44 14 14 100.00

Aziz H December 31, 2017
Sumiyati Commissioner January 1 - December 31, 2017 51 32 62.75 36 21 58.33
Maurin Sitorus Commissioner January 1 - December 31, 2017 51 48 94.12 36 34 94.44
Iman Sugema Commissioner July 19 - December 31, 2017 26 21 80.77 17 14 82.35
Garuda Wiko Independent Commissioner July 19 - December 31, 2017 26 20 76.92 17 12 70.59

2. Agenda and Participant of the Meeting

The following is the meetings, agenda, and the participants of the Meetings in Board of Commissioners’
Internal Meeting in 2017:
No. Date Agenda Participant

1 January 10 1. Progress report of KAP PSS-EY audit for fiscal year 2016 Arie Coerniadi; Lucky Fathul Aziz Hadibrata; I Wayan Agus Mertayasa;
2. Progress report of deposit fraud case Kamaruddin Sjam; Maurin Sitorus
3. Pending matters of Board of Commissioners’ directives
in 2016
4. Board of Commissioners’ Inbox
2 January 24 1. Audit Committee progress report on procurement of Arie Coerniadi; Lucky Fathul Aziz Hadibrata; I Wayan Agus Mertayasa;
KAP 2017 Kamaruddin Sjam; Maurin Sitorus; Sumiyati
2. KOPAR report on the extension review of warranty
contract with Jamkrindo Syariah
3 January 31 1. Current Issues Arie Coerniadi; Lucky Fathul Aziz Hadibrata; I Wayan Agus Mertayasa;
2. Board of Commissioners’ Inbox Iman Sugema; Kamaruddin Sjam; Maurin Sitorus
4 February 2 Audit Result Report of KAP PSS-EY Fiscal Year 2016 Kamaruddin Sjam, Lucky Fathul Aziz Hadibrata; Maurin Sitiorus;
Sumiyati
5 February 7 3. Current issues Arie Coerniadi; Lucky Fathul Aziz Hadibrata; I Wayan Agus Mertayasa;
4. Board of Commissioners’ Inbox Iman Sugema; Kamaruddin Sjam; Maurin Sitorus; Sumiyati
6 February 14
7 February 16 Proposed Candidate of Directors Arie Coerniadi; Lucky Fathul Aziz Hadibrata; I Wayan Agus Mertayasa;
Iman Sugema; Kamaruddin Sjam; Maurin Sitorus; Sumiyati
8 February 20 Discussion on the Draft of Annual Report, Sustainability Arie Coerniadi; Lucky Fathul Aziz Hadibrata; I Wayan Agus Mertayasa;
Report, PKBL Report 2016 PT Bank Tabungan Negara Kamaruddin Sjam; Maurin Sitorus; Sumiyati
(Persero) Tbk
9 February 21 1. Report of Remuneration and Nomination Committee on Arie Coerniadi; Lucky Fathul Aziz Hadibrata; I Wayan Agus Mertayasa;
10 Proposed Candidate of Directors Iman Sugema; Kamaruddin Sjam; Maurin Sitorus
2. Committee’s Review on Draft of Bank Business Plan
Supervision Report Semester II 2016
3. Ratification of Board of Commissioners’ Committees’
Work Plan 2017
10 February 28 1. Current Issues Lucky Fathul Aziz Hadibrata; I Wayan Agus Mertayasa; Kamaruddin
2. Board of Commissioners’ Inbox Sjam; Maurin Sitorus;
11 March 3 Lucky Fathul Aziz Hadibrata; I Wayan Agus Mertayasa; Kamaruddin

Sjam; Maurin Sitorus; Sumiyati
12 March 6 1. DDI Assessment Result Evaluation Arie Coerniadi; Lucky Fathul Aziz Hadibrata; I Wayan Agus Mertayasa;
2. Board of Commissioners’ Inbox Kamaruddin Sjam; Maurin Sitorus; Sumiyati
13 March 21 1. Current issues Arie Coerniadi; Lucky Fathul Aziz Hadibrata ; I Wayan Agus Mertayasa;
2. Board of Commissioners’ Inbox Kamaruddin Sjam;Maurin Sitorus; Sumiyati
14 March 30 1. Current issues Arie Coerniadi; I Wayan Agus Mertayasa; Kamaruddin Sjam; Maurin
2. Board of Commissioners’ Inbox Sitorus;Sumiyati
15 April 4 Arie Coerniadi; Kamaruddin Sjam; Maurin Sitorus; Sumiyati
16 April 11 1. Current issues Arie Coerniadi; I Wayan Agus Mertayas; Maurin Sitorus
3. Consultation of pre approval line on behalf of PT Waskita
Karya Realty
17 April 18 1. Current issues Arie Coerniadi; I Wayan Agus Mertayas;Sumiyati

18 May 2 1. Current Issues Arie Coerniadi; I Wayan Agus Mertayasa; Kamaruddin Sjam; Maurin Sitorus
3. Explanation from Risk Monitoring Committee and Audit
Committee related to the Directors’ Letter on the Follow
Up of OJK Directive related to the Fraud Event at Bank BTN
19 May 9 1. Current issues Arie Coerniadi; I Wayan Agus Mertayas; Kamaruddin Sjam; Maurin Sitorus
20 May 16 Arie Coerniadi; I Wayan Agus Mertayasa; Kamaruddin Sjam; Maurin
Sitorus; Sumiyati

21 May 23 3. Current issues Arie Coerniadi; I Wayan Agus Mertayasa; Kamaruddin Sjam; Maurin Sitorus
22 June 6 Arie Coerniadi; I Wayan Agus Mertayasa; Kamaruddin Sjam; Maurin
Sitorus; Sumiyati
23 June 13 Arie Coerniadi; I Wayan Agus Mertayasa; Kamaruddin Sjam; Maurin

Sitorus; Sumiyati
24 July 11 Arie Coerniadi; I Wayan Agus Mertayasa; Kamaruddin Sjam; Maurin

Sitorus; Sumiyati
25 July 18 Arie Coerniadi; I Wayan Agus Mertayasa; Kamaruddin Sjam; Sumiyati
26 July 21 1. Performance in May and June 2017 Arie Coerniadi; Garuda Wiko; I Wayan Agus Mertayasa; Iman Sugema;
2. Current Issues (Draft of Published Financial Report and Kamaruddin Sjam; Maurin Sitorus; Sumiyati
Loan Consultation)
27 July 25 Financial Report Publication per June 30, 2017 Arie Coerniadi; Garuda Wiko; Iman Sugema; Maurin Sitorus
28 August 1 1. Current issues Arie Coerniadi; Garuda Wiko; I Wayan Agus Mertayasa; Iman Sugema;
2. Board of Commissioners’ Inbox Kamaruddin Sjam; Maurin Sitorus
3. Draft on RBB Supervisory Report Semester I 2017
30 August 10 Discussion on Draft of Code of Conduct of the Board of Arie Coerniadi; I Wayan Agus Mertayasa; Iman Sugema; Kamaruddin
Commissioners Sjam; Maurin Sitorus; Sumiyati
3 1 August 15 1. Current issues Arie Coerniadi; Garuda Wiko; I Wayan Agus Mertayasa; Iman Sugema;
3. Discussion on Survey Questioner of Corporate Governance
Perception Index (CPGI) 2016
33 August 29 Arie Coerniadi; Garuda Wiko; I Wayan Agus Mertayasa; Iman Sugema;
Kamaruddin Sjam; Maurin Sitorus; Sumiyati
34 September 5 1. Current Issues Arie Coerniadi; Garuda Wiko; I Wayan Agus Mertayasa; Iman Sugema;
35 September 12
36 September 19 1. Current Issues Arie Coerniadi; Garuda Wiko; I Wayan Agus Mertayasa; Maurin Sitorus
37 September 26 1. Draft on Joint Decree of the Board of Commissioners Arie Coerniadi; Iman Sugema; Kamaruddin Sjam; Maurin Sitorus;
and Directors on the Working Guidelines of Directors and Sumiyati
2. Current Issues
38 October 3 1. Current Issues Arie Coerniadi; Iman Sugema; Kamaruddin Sjam; Maurin Sitorus
39 October 10 1. Candidate Criteria of the Board of Directors of the Life Lucky Fathul Aziz Hadibrata; Garuda Wiko; I Wayan Agus Mertayasa;
Insurance Subsidiary Iman Sugema; Kamaruddin Sjam; Khoirul Mampe; Maurin Sitorus;
2. Current Issues Sandra Firmania; Sumiyati
40 October 12 Discussion on the Minister of SOEs Regulation No. PER-12/ Arie Coerniadi; Lucky Fathul Aziz Hadibrata; Garuda Wiko;
MBU/2012 on the Supporting Organs of the SOEs Board of I Wayan Agus Mertayasa; Iman Sugema; Kamaruddin Sjam; Maurin
Commissioners/Board of Trustees; Sitorus; Sumiyati
41 October 17 1. Current Issues Garuda Wiko; I Wayan Agus Mertayasa; Iman Sugema; Kamaruddin
2. Board of Commissioners’ Inbox Sjam; Maurin Sitorus; Sumiyati
42 October 23 1. Audit Committee Review on the Financial Report Draft Garuda Wiko; I Wayan Agus Mertayasa; Iman Sugema; Kamaruddin
Per September 30, 2017 Sjam; Maurin Sitorus
2. KOPAR Review on the Loan Consultation and Loan
Approval of the Related Parties
3. Current Issues
43 October 24 1. Current Issues Arie Coerniadi; Garuda Wiko; I Wayan Agus Mertayasa; Iman Sugema;


44 October 31 1. Current Issues Arie Coerniadi; Garuda Wiko; I Wayan Agus Mertayasa; Iman Sugema;
45 November 7 1. Current Issues Arie Coerniadi; Garuda Wiko; I Wayan Agus Mertayasa; Iman Sugema;
46 November 14 1. Current Issues Arie Coerniadi; Garuda Wiko; I Wayan Agus Mertayasa; Iman Sugema;
47 November 21 1. Current issues Arie Coerniadi; Lucky Fathul Aziz Hadibrata; Garuda Wiko; I Wayan Agus
2. Board of Commissioners’ Inbox Mertayasa; Iman Sugema; Kamaruddin Sjam; Maurin Sitorus; Sumiyati
3. CBP 2018 and RBB 2018-2020
48 December 5 1. Current issues Arie Coerniadi; Lucky Fathul Aziz; I Wayan Agus Mertayasa; Iman
2. Board of Commissioners’ Inbox Sugema; Kamaruddin Sjam; Maurin Sitorus; Sumiyati
3. GCG Self-Assessment
49 December 12 1. Current issues Arie Coerniadi; Lucky Fathul Aziz Hadibrata; Garuda Wiko;
2. Board of Commissioners’ Inbox I Wayan Agus Mertayasa; Iman Sugema; Kamaruddin Sjam; Maurin
3. Proposed Candidate of Directors Sitorus; Sumiyati
50 December 19 1. Current issues Arie Coerniadi; Lucky Fathul Aziz; Garuda Wiko; I Wayan Agus
2. Board of Commissioners’ Inbox Mertayasa; Kamaruddin Sjam; Maurin Sitorus
3. OJK Exit Meeting in the Operational Risk in July 2017
51 December 29 Changes in the Bank BTN’s vision, mission, and organizational Arie Coerniadi; Lucky Fathul Aziz; Garuda Wiko; I Wayan Agus
structure Mertayasa; Iman Sugema; Kamaruddin Sjam; Maurin Sitorus; Sumiyati
The following is the agenda, dates, and participants of Board of Commissioners’ Joint
Meeting with the Directors throughout 2017:

1 January 24 1. Explanation on NPL Achievement 2016 I Wayan Agus Mertayasa; Kamaruddin Sjam; Arie Coerniadi; Lucky
2. Consultation of PKS extension counter guarantee with Fathul Aziz Hadibrata; Maurin Sitorus;
Jamkrindo Syariah
2 January 31 1. Performance review December 2016 I Wayan Agus Mertayasa; Kamaruddin Sjam; Arie Coerniadi; Lucky
2. Explanation on Blueprint of the Bank BTN Strategic Fathul Aziz Hadibrata; Maurin Sitorus; Sumiyati
Transformation Plan 2016-2020
3 February 7 1. Sharia business plan and development I Wayan Agus Mertayasa; Kamaruddin Sjam; Arie Coerniadi; Lucky
2. BTN Information Technology Architecture Fathul Aziz Hadibrata; Maurin Sitorus; Sumiyati
4 February 8 Discussion on the Audit Result of KAP PSS-EY I Wayan Agus Mertayasa; Kamaruddin Sjam; Arie Coerniadi; Lucky
Fathul Aziz Hadibrata; Maurin Sitorus; Sumiyati
5 February 14 Explanation on Blueprint of the Bank BTN Strategic I Wayan Agus Mertayasa; Kamaruddin Sjam; Arie Coerniadi; Lucky
Transformation Plan 2016-2020 Fathul Aziz Hadibrata; Maurin Sitorus; Sumiyati
6 February 16 Salary recommendation and increased salary tantiem of the I Wayan Agus Mertayasa; Kamaruddin Sjam; Arie Coerniadi; Lucky
President Director Fathul Aziz Hadibrata; Sumiyati
7 February 20 BTN Strategic Issues I Wayan Agus Mertayasa; Kamaruddin Sjam; Arie Coerniadi; Lucky
Fathul Aziz Hadibrata; Sumiyati
8 February 28 Performance Review January 2017 I Wayan Agus Mertayasa; Kamaruddin Sjam; Lucky Fathul Aziz
Hadibrata; Maurin Sitorus
9 March 6 Sharia business plan and development I Wayan Agus Mertayasa; Kamaruddin Sjam; Arie Coerniadi; Lucky
Fathul Aziz Hadibrata; Maurin Sitorus; Sumiyati
10 March 21 Introduction of Bank BTN's New Members of Board of I Wayan Agus Mertayasa; Kamaruddin Sjam; Arie Coerniadi; Lucky
Commissioners and Directors Fathul Aziz Hadibrata; Maurin Sitorus; Sumiyati
11 March 30 Performance Review February 2017 I Wayan Agus Mertayasa; Kamaruddin Sjam; Arie Coerniadi; Maurin
Sitorus; Sumiyati
12 March 30 Strategic Issues I Wayan Agus Mertayasa; Kamaruddin Sjam; Arie Coerniadi; Maurin
Sitorus; Sumiyati
13 April 11 1. Consultation of pre-approval line on behalf of PT Waskita I Wayan Agus Mertayasa; Arie Coerniadi; Maurin Sitorus
Karya Realty
2. Performance review February 2017
3. Current issues

14 April 18 Readiness of Program and Tools for Bank BTN APUPPT I Wayan Agus Mertayasa; Arie Coerniadi; Maurin Sitorus
according to the latest POJK about APUPPT Program
Implementation in Financial Services Sector
15 May 2 1. Blueprint of the Bank BTN Strategic Transformation Plan I Wayan Agus Mertayasa; Kamaruddin Sjam; Arie Coerniadi; Maurin Sitorus
2016-2020
2. Risk Profile Quarter I 2017
3. Performance Review March 2017
16 May 9 1. FLPP financing plan 2017 I Wayan Agus Mertayasa; Kamaruddin Sjam; Arie Coerniadi; Maurin
2. FLPP fund realization up to Quarter I 2017 Sitorus
3. Realization of subsidized interest fees up to Quarter I 2017
17 May 16 1. Development of iCremo data input I Wayan Agus Mertayasa; Kamaruddin Sjam; Arie Coerniadi; Maurin
2. Current issues Sitorus; Sumiyati
18 May 23 1. Performance Review April 2017 I Wayan Agus Mertayasa; Kamaruddin Sjam; Arie Coerniadi; Maurin
2. Current issues Sitorus
19 June 13 1. RBB Revision 2017-2019 and CBP 2017 Revision of I Wayan Agus Mertayasa; Kamaruddin Sjam; Arie Coerniadi; Maurin
PT Bank Tabungan Negara (Persero) Tbk Sitorus; Sumiyati
2. Current Issues
20 July 18 1. Current issues I Wayan Agus Mertayasa; Kamaruddin Sjam; Arie Coerniadi; Sumiyati
21 August 1 1. Business Continuity Management I Wayan Agus Mertayasa; Kamaruddin Sjam; Arie Coerniadi; Maurin
2. Non-Performing Loan settlement and 5 Collectivity Loan Sitorus; Sumiyati; Iman Sugema; Garuda Wiko
3. Follow Up on the 2017 Annual GMS Resolutions
4. Internal Audit Division (IAD) presentation on:
›› IAD Organizational Structure
›› IAD Work Plan
›› IAD Activities
22 August 8 1. Follow Up on the 2017 Annual GMS Resolutions I Wayan Agus Mertayasa; Kamaruddin Sjam; Arie Coerniadi; Maurin
2. Internal Audit Division (IAD) presentation on: Sitorus; Sumiyati; Iman Sugema; Garuda Wiko
›› IAD Organizational Structure
›› IAD Work Plan
›› IAD Activities
23 August 22 1. Bank liquidity projection in relation to the reduced portion I Wayan Agus Mertayasa; Kamaruddin Sjam; Arie Coerniadi; Maurin
of FLPP in the Revised State Budget (APBNP) Sitorus; Sumiyati; Iman Sugema; Garuda Wiko
2. Allowance for impairment losses (policy and its
establishment)
3. Further discussion on the amendment to the Bank BTN’s
Articles of Association
24 August 29 4. Performance Review July 2017 I Wayan Agus Mertayasa; Kamaruddin Sjam; Arie Coerniadi; Maurin
5. Fee-Based Income strategies Sitorus; Sumiyati; Iman Sugema; Garuda Wiko
25 September 12 Further Discussion on the Subsidiary Establishment I Wayan Agus Mertayasa; Kamaruddin Sjam; Arie Coerniadi; Maurin Sitorus
26 September 19 1. Letter of BPK-RI No. 77/S/IX-XX.4/08/2017 dated I Wayan Agus Mertayasa; Arie Coerniadi; Maurin Sitorus; Garuda Wiko
August 7, 2017, on the Audit Result on the Effectiveness
Performance of Prosperous Housing Loan and SSA/
SSB Management at PT BTN (Persero) in Special Capital
Region of Jakarta, West Java, Central Java , Riau, South
Kalimantan, North Sulawesi
2. Action Plan on Follow Up of BPK-RI Audit Findings
27 September 26 1. Performance Review: Kamaruddin Sjam; Arie Coerniadi; Maurin Sitorus; Sumiyati;
›› BTN Performance August 2017 Iman Sugema
›› Performance of Non-performing loan settlement
›› APU-PPT
2. Draft of Joint Decree of the Board of Commissioners and
Directors on the Working Guidelines of Directors and
28 October 03 1. Implementation of APU-PPT Kamaruddin Sjam; Arie Coerniadi; Maurin Sitorus;

2. Draft of Joint Decree of the Board of Commissioners and Iman Sugema
Directors on the Working Guidelines of Directors and
29 October 10 1. Follow-up on Bank BTN Transformation Plan I Wayan Agus Mertayasa; Kamaruddin Sjam; Arie Coerniadi; Maurin
2. Explanation of Bank Indonesia Audit Findings Sitorus; Sumiyati; Iman Sugema; Garuda Wiko
3. Explanation of Bank BTN Mutual Funds Product


30 October 23 Performance Review I Wayan Agus Mertayasa; Iman Sugema; Kamaruddin Sjam; Maurin
1. BTN Performance September 2017 Sitorus; Garuda Wiko
2. APU-PPT
31 October 31 Implementation of POJK No. 14/POJK.03/2017 dated April 17, I Wayan Agus Mertayasa; Arie Coerniada; Garuda Wiko; Iman Sugema;
2017, on Recovery Plan of Systemic Bank Kamaruddin Sjam; Maurin Sitorus
32 November 14 1. BTN career path explanation I Wayan Agus Mertayasa; Kamaruddin Sjam; Arie Coerniadi; Maurin
2. NPL settlement development Sitorus; Sumiyati; Iman Sugema; Garuda Wiko
33 November 21 CBP 2018 and RBB 2018-2020 Arie Coerniadi; Lucky Fathul Aziz Hadibrata; Garuda Wiko; I Wayan Agus
Mertayasa; Iman Sugema; Kamaruddin Sjam; Maurin Sitorus; Sumiyati
34 December 5 Performance Review October 2017 I Wayan Agus Mertayasa; Kamaruddin Sjam; Arie Coerniadi; Maurin
Sitorus; Lucky Fathul Aziz Hadibrata; Iman Sugema; Garuda Wiko
35 December 12 1. Discussion on proposed of limits and criteria for the I Wayan Agus Mertayasa; Kamaruddin Sjam; Arie Coerniadi; Maurin Sitorus;
actions of the Board of Directors in accordance with BTN’s Lucky Fathul Aziz Hadibrata; Sumiyati; Iman Sugema; Garuda Wiko
Articles of Association
2. Proposal for recovery plan
36 December 29 Changes in the Bank BTN’s vision, mission, and organizational I Wayan Agus Mertayasa; Kamaruddin Sjam; Arie Coerniadi; Maurin
structure Sitorus; Lucky Fathul Aziz Hadibrata; Sumiyati; Garuda Wiko
The decisions made in the internal meeting of the Board Evaluation on the Follow Up Result of the Board of
of Commissioners and joint meeting with the Company’s Commissioners’ Meeting
Directors have been noted and documented properly in In the Board of Commissioners’ Internal Meeting, the follow-up
the Minutes of Board of Commissioners’ Meeting. The of previous meetings shall be evaluated before discussing the
Minutes of Meeting is signed by the head of the meeting Board of Commissioners’ Inbox. Board of Commissioners and
and distributed to every Board of Commissioners and to Directors actively monitor whether the meeting’s directives have
related parties if needed be. Dissenting opinion in the been submitted to the Directors in written letters and acted upon.
meeting shall be recorded in the minutes of meeting as
well as the reasons for dissenting opinion. Board of Directors’ Meeting
Similar to the Board of Commissioners’ Meeting, Directors
Meeting Plan of the Board of Commissioners also has scheduled meeting, i.e. The Board of Directors’
Based on the Minutes of Board of Commissioners’ Internal Internal Meeting and Joint Meeting attended by the Board
Meeting dated January 16, 2018, it is agreed upon that the of Commissioners. The Board of Directors’ Internal Meeting
Board of Commissioners’ Meeting in 2018 shall be held once refers to the Directors’ Decree No. 07/DIR/KD/CMPD/2017 on
a week. This agreement shall take effect immediately with the the Board Charter of the Board of Directors dated September
agenda of the Current Issues and Discussion on the Board of 28, 2017. The Joint Meeting of the Directors and the Board of
Commissioners’ Inbox with the following arrangements: Commissioners refers to the Working Procedures of the Board
1. Discussion on Human Capital Management in the First Week of Commissioners and the Board of Directors.
2. Discussion on Risk Management on Compliance in the
Second Week In line with the Conduct, the Directors must hold:
3. Discussion on the Internal Audit Function Effectiveness 1. The Board of Directors’ Internal Meeting shall be attended
in the Third Week by the Directors and is regularly held at least once a
4. Discussion on Bank’s Performance in the Fourth Week month, or more well-known as Scheduled Directors’
Meeting (ALCO and Performance Review Meeting). The
The agenda of the Joint Meeting of the Board of Commissioners Directors’ Meeting shall be conducted at any time if
and the Board of Directors must at least discuss: considered necessary by one or more Members of Board
1. Preparation of Bank’s Business Plans (RBB) and Company’s of Directors, or at written request by one or more member
Work Budget and Plan (CBP) and its amendment in the third of Board of Commissioners.
week of June 2018 and the third week November 2018; 2. The Joint Meeting of Directors with Board of
2. Performance Review (including discussion of APU PPT) in Commissioners is a Directors’ Meeting, which is attended
the fourth week of every month; by the members of Board of Commissioners. The Meeting
3. Review of Risk Management Policy Guidelines in the is held regularly at least once every 4 (four) months in order
second week of November 2018; to ask direction or report the Company’s management to
4. Meeting Summons of Joint Meeting of the Board of the Board of Commissioners.
Commissioners and Board of Directors. The summons 3. The Joint Meeting agenda discusses at least:
shall be carried out with mechanisms and procedures a. Formulation of Bank’s Business Plan (RBB) and
stipulated in the Code of Conduct of the Board of Directors. Company’s Work Budget and Plan (CBP);
b. Performance Review (including discussion on APU PPT); Meeting. Hence, the decision-making of the Scheduled Board
c. GCG Implementation and Follow Up on the Findings of of Directors’ Meeting must be attended by at least 2/3 (two-
Audit, both Internal and External Audit. third) of the total members of Board of Directors.
d. The summons of the Commissioners in the Board
of Directors’ Joint Meeting shall be conducted with Frequency of the Board of Directors’ Meetings
mechanisms and procedures as regulated in the Board Throughout 2017, the Directors has held 83 Internal Meetings,
Charter of the Board of Directors. and 8 (eight) Joint Meeting with the Board of Commissioners.
The details are as follow:
The mechanism of decision-making of the Joint Meeting
is the same mechanism used in the Board of Directors’ a. Attendance of the Board of Directors in the Meetings
Meeting Board of Directors’ Meeting

Board of Directors With the Board of Commissioners
Name Position Period Meetings Attendance % Meetings Attendance %
Maryono President Director January 1, 2017– 83 71 86.00 8 5 62.50

December 31, 2017
Iman Nugroho Director of Finance & January 1, 2017– 83 67 81.00 8 4 50.00
Soeko Treasury December 31, 2017
Adi Setianto Director of IT & Operation January 1, 2017– 83 72 87.00 8 7 87.50
December 31, 2017
Oni Febriarto R. Director of Commercial January 1, 2017– 83 74 89.00 8 8 100.00
Banking December 31, 2017
Budi Satria Director of Consumer July 25, 2017– 38 29 76.00 4 4 100.00
Banking December 31, 2017
R. Mahelan Director of Strategy, July 25, 2017– 38 33 87.00 4 4 100.00
Prabantarikso Compliance, and Risk December 31, 2017
Nixon L.P. Director of Collection, Asset July 25, 2017– 38 29 76.00 4 4 100.00
Napitupulu Management, and Legal December 31, 2017
Dasuki Amsir Director of Distribution & Appointed as Director on EGMS dated December 28, 2017
Network
b. Agenda and Participants of the Meeting

The following is the meetings, agenda, and the participants of the Meetings in Board of Directors’
Internal Meeting in 2017:
No. Date Topic Participant

1 4-Jan Internal Director Maryono, Mansyur Nasution, Iman Nugroho S, Adi Setianto,
Sulis Usdoko, Oni Febriarto R, Catur Budi Harto S, Handayani
2 9-Jan Culture & Communication, Transformation of Bank Organizational Maryono, Mansyur Nasution, Iman Nugroho S, Adi Setianto,
Structure, Progress audit PSS-EY Sulis Usdoko, Oni Febriarto R, Catur Budi Harto S, Handayani
9-Jan Human Capital Maryono, Mansyur Nasution, Iman Nugroho S, Adi Setianto,
3 13-Jan Performance Review; BTN Organizational Structure Maryono, Iman Nugroho S, Adi Setianto, Sulis Usdoko, Handayani
13-Jan ALCO Maryono, Iman Nugroho S, Adi Setianto, Sulis Usdoko, Handayani
4 19-Jan Risk Management Committee’s Meeting Mansyur Nasution, Iman Nugroho S, Adi Setianto, Oni Febriarto R
5 23-Jan Preparation of the BTN 67th Anniversary, Result of KPI Assessment 2016 Maryono, Mansyur Nasution, Iman Nugroho S, Oni Febriarto R, Handayani
23-Jan Discussion of NPL, Crisis Team Report, Internal Director Maryono, Mansyur Nasution, Iman Nugroho S, Adi Setianto,
Oni Febriarto R, Handayani
6 24-Jan Preparation of AGMS 2017, Presentation of BTN Anniversary concept Maryono, Mansyur Nasution, Iman Nugroho S, Adi Setianto,
from television, Implementation of FTP Multi-Rate Sulis Usdoko, Oni Febriarto R, Handayani
24-Jan Loan Committee Meeting - Investment Loan Application Maryono, Mansyur Nasution, Iman Nugroho S, Adi Setianto,
Sulis Usdoko, Oni Febriarto R
7 26-Jan Discussions on the 2017 GMS agenda, Crisis Team Report Maryono, Mansyur Nasution, Iman Nugroho S, adi setianto,
Sulis Usdoko, Oni Febriarto R, Catur Budi Harto S
8 30-Jan KPI 2016, Report of KAP PSS EY Maryono, Mansyur Nasution, Iman Nugroho S, Adi Setianto,
Sulis Usdoko, Oni Febriarto R, Catur Budi Harto S


9 5-Feb Crisis Team Report, Interest Margin Subsidy and RBB Maryono, Mansyur Nasution, Iman Nugroho S, Adi Setianto,
10 10-Feb Human Capital Maryono, Mansyur Nasution, Iman Nugroho S, Adi Setianto, Sulis
Usdoko, Oni Febriarto R, Catur Budi Harto S, Handayani
11 13-Feb 2016 Annual Report, Analyst Meeting & Public Expose, Business Maryono, Mansyur Nasution, Iman Nugroho S, Adi Setianto, Sulis
Establishment of Partner Bumdes Usdoko, Oni Febriarto R, Handayani
12 20-Feb Loan Committee Meeting - Construction KMK Application Maryono, Mansyur Nasution, Iman Nugroho S, Adi Setianto, Sulis
20-Feb Loan Committee Meeting - Construction KMK Application Maryono, Mansyur Nasution, Iman Nugroho S, Adi Setianto, Sulis
20-Feb Loan Committee Meeting - KMK Loan Restructuration Maryono, Mansyur Nasution, Iman Nugroho S, Adi Setianto, Sulis
20-Feb Loan Committee Meeting - Construction KMK Application Maryono, Mansyur Nasution, Iman Nugroho S, Adi Setianto, Sulis
13 21-Feb ALCO Mansyur Nasution, Iman Nugroho S, Sulis Usdoko, Oni Febriarto
R, Catur Budi Harto S, Handayani
21-Feb Performance Review January Mansyur Nasution, Iman Nugroho S, Sulis Usdoko, Oni Febriarto
R, Catur Budi Harto S, Handayani
14 27-Feb Resend of SPAN Balance (Zero), AD Change, 2017 GMS Preparation, Iman Nugroho S, Sulis Usdoko, Oni Febriarto R, Catur Budi Harto
Preparation of BPK Entry Meeting S, Handayani
15 1-Mar Transforming the Work Culture Maryono, Iman Nugroho S, Sulis Usdoko, Oni Febriarto R, Catur
Budi Harto S,
16 5-Mar Human Capital Maryono, Mansyur Nasution, Iman Nugroho S, Adi Setianto, Sulis
5-Mar Human Capital Maryono, Mansyur Nasution, Iman Nugroho S, Adi Setianto, Sulis
17 6-Mar Human Capital Maryono, Mansyur Nasution, Iman Nugroho S, Adi Setianto, Oni
Febriarto R, Catur Budi Harto S, Handayani
18 16-Mar Performance Review February Mansyur Nasution, Iman Nugroho S, Adi Setianto, Sulis Usdoko,
Oni Febriarto R, Catur Budi Harto S, Handayani
16-Mar ALCO Mansyur Nasution, Iman Nugroho S, Adi Setianto, Sulis Usdoko,
Oni Febriarto R, Catur Budi Harto S, Handayani
19 21-Mar Internal Director Maryono, Iman Nugroho S, Adi Setianto, Oni Febriarto R,
Handayani
20 23-Mar Human Capital Maryono, Iman Nugroho S, Adi Setianto, Oni Febriarto R
21 27-Mar Loan Committee Meeting - Line Facility Request
27-Mar Loan Committee Meeting - KMK Request Maryono, Iman Nugroho S, Adi Setianto, Oni Febriarto R
27-Mar Loan Committee Meeting - Investment Loan Application Maryono, Iman Nugroho S, Adi Setianto, Oni Febriarto R
27-Mar Loan Committee Meeting - Construction KMK Application Maryono, Iman Nugroho S, Adi Setianto, Oni Febriarto R
27-Mar Performance Prognosis Maryono, Iman Nugroho S, Adi Setianto, Oni Febriarto R
27-Mar White Book, Action Plan of OJK Audit Maryono, Iman Nugroho S, Adi Setianto, Oni Febriarto R
22 29-Mar IDP Preparation Maryono, Iman Nugroho S, Adi Setianto, Oni Febriarto R
23 3-Apr Action plan of new Organizational Structure, KPI 2017 Maryono, Adi Setianto, Oni Febriarto R
24 17-Apr Analyst Meeting Maryono, Iman Nugroho S, Adi Setianto, Oni Febriarto R,
Handayani
Performance Review March Maryono, Iman Nugroho S, Adi Setianto, Oni Febriarto R,
Handayani

25 25-Apr Human Capital Maryono, Iman Nugroho S, Adi Setianto, Oni Febriarto R, Handayani
25-Apr ALCO Maryono, Iman Nugroho S, Adi Setianto, Oni Febriarto R, Handayani
25-Apr Risk Management Committee Iman Nugroho S, Adi Setianto, Oni Febriarto R, Handayani
2 6 2-May Changes in the Organizational Structure, Procurement for Maryono, Adi Setianto, Oni Febriarto R, Handayani
Transformation Consultant
27 10-May Loan Policy Committee - Determination of BWMK Pre-Approval Line Maryono, Iman Nugroho S, Adi Setianto, Oni Febriarto R
10-May Loan Committee Meeting - Construction KMK Maryono, Iman Nugroho S, Adi Setianto, Oni Febriarto R
10-May Loan Committee Meeting - Construction KMK Maryono, Iman Nugroho S, Adi Setianto, Oni Febriarto R
10-May Loan Committee Meeting - Line Facility Request Maryono, Iman Nugroho S, Adi Setianto, Oni Febriarto R
10-May Organizational Structure of Head Office and Explanation of Iman Nugroho S, Adi Setianto, Oni Febriarto R
Procurement of Transformation Consultant
28 17-May Plan of Opening Jakarta Regional Office Maryono, Iman Nugroho S, Adi Setianto, Oni Febriarto R, Handayani
17-May Performance Review Maryono, Iman Nugroho S, Adi Setianto, Oni Febriarto R, Handayani
17-May ALCO Maryono, Iman Nugroho S, Adi Setianto, Oni Febriarto R, Handayani
29 18-May Evaluation of SQND and DBD Divisions Maryono, Oni Febriarto R, Handayani
30 23-May Human Capital Maryono, Iman Nugroho S, Adi Setianto, Oni Febriarto R, Handayani
31 29-May Implementation of SO / Transformation, OJK Action Plan, Audit Development Maryono, Iman Nugroho S, Adi Setianto, Oni Febriarto R,
of BPK, Report of Consumer Banking Directorate
32 30-May Report of Directorate of IT, Operation & Credit Risk Adi Setianto, Oni Febriarto R,
33 5-Jun Report of Directorate of IT, Operation & Credit Risk, Report of PGSD Division Maryono, Iman Nugroho S, Adi Setianto, Oni Febriarto R, Handayani
34 6-Jun Revision of RBB, Loan Quality Discussion (NPL) Maryono, Iman Nugroho S, Adi Setianto, Oni Febriarto R, Handayani
35 14-Jun Loan Committee Meeting - Construction KMK Maryono, Adi Setianto, Oni Febriarto R, Handayani
14-Jun Loan Committee Meeting - Construction KMK Maryono, Adi Setianto, Oni Febriarto R, Handayani
14-Jun Internal Director Maryono, Adi Setianto, Oni Febriarto R, Handayani
36 15-Jun Loan Committee Meetings - Pre Approval Line Maryono, Adi Setianto, Oni Febriarto R, Handayani
15-Jun Loan Committee Meeting - Construction Loan Maryono, Adi Setianto, Oni Febriarto R, Handayani
15-Jun Loan Committee Meeting - Construction Loan Maryono, Adi Setianto, Oni Febriarto R, Handayani
15-Jun Loan Committee Meeting - Investment Loan and Construction Loan Maryono, Adi Setianto, Oni Febriarto R, Handayani
37 16-Jun Performance Review Iman Nugroho S, Adi Setianto, Oni Febriarto R, Handayani
16-Jun ALCO Iman Nugroho S, Adi Setianto, Oni Febriarto R, Handayani
38 19-Jun Internal Director Iman Nugroho S, Oni Febriarto R, Handayani
39 20-Jun Performance Prognosis June Maryono, Iman Nugroho S, Adi Setianto, Handayani
40 3-Jul Discussion of NPL, IT Report Maryono, Iman Nugroho S, Adi Setianto, Oni Febriarto R, Handayani
41 5-Jul Discussion on NPL Maryono, Iman Nugroho S, Adi Setianto, Oni Febriarto R
5-Jul Loan Committee Meeting - Investment Loan and Construction Loan Maryono, Adi Setianto, Oni Febriarto R, Handayani
42 6-Jul Potential for Subsidized Housing Loan and Improvement of Housing Maryono, Iman Nugroho S, Adi Setianto, Oni Febriarto R, Handayani
Loan Business Process
43 11-Jul Potential for Subsidized Housing Loan and Improvement of Housing Maryono, Iman Nugroho S, Adi Setianto, Oni Febriarto R, Handayani
Loan Business Process using Web-Based, and RSTIK
44 18-Jul Risk Management Committee’s Meeting Iman Nugroho S, Oni Febriarto R, Handayani
45 19-Jul Proposed Sales / Individual Policy Employee Incentives, Added Paid Up Maryono, Iman Nugroho S, Adi Setianto, Handayani
Capital BTN UUS, Revised Board Manual
19 Juli ALCO Maryono, Iman Nugroho S, Adi Setianto, Handayani


46 26-Jul Human Capital Maryono, Iman Nugroho S, Adi Setianto,Oni Febriarto R,
Handayani,R. Mahelan Prabantarikso,Nixon L.P, Budi Satria
46 26-Jul Loan Committee Meetings - Debtor Management Changes Maryono, Iman Nugroho S, Adi Setianto,Oni Febriarto R, R.
Mahelan Prabantarikso,Nixon L.P, Budi Satria
26-Jul Loan Committee Meeting - Investment Loan Maryono, Iman Nugroho S, Adi Setianto,Oni Febriarto R, Nixon L.P,
Budi Satria
26-Jul Loan Committee Meetings - Project Financing Principle Permits Maryono, Iman Nugroho S, Adi Setianto,Oni Febriarto R, R.
26-Jul Loan Committee Meeting - KMK Maryono, Iman Nugroho S, Adi Setianto,Oni Febriarto R, R.
26-Jul Loan Committee Meeting - Construction Loan Maryono, Iman Nugroho S, Adi Setianto,Oni Febriarto R, R.
26-Jul Loan Committee Meeting - Investment Loan and Construction Loan Maryono, Iman Nugroho S, Adi Setianto,Oni Febriarto R, R.
26-Jul Revised Board Manual & Internal Board of Directors Maryono, Iman Nugroho S, Adi Setianto,Oni Febriarto R,
Handayani,R. Mahelan Prabantarikso,Nixon L.P
47 31-Jul Subsidiaries and Non-Subsidized Housing Loan Subsidized Business Maryono, Iman Nugroho S, Adi Setianto,Oni Febriarto R,
Reports Handayani,R. Mahelan Prabantarikso,Nixon L.P
48 9-Aug New GSM Proposal and Print Ad Display Outlet Maryono, Iman Nugroho S, Oni Febriarto R,R. Mahelan
Prabantarikso
49 10-Aug Web Branch Report Maryono, Iman Nugroho S, Adi Setianto,Oni Febriarto R,
Handayani, Nixon L.P
50 14-Aug Discussion on NPL Maryono, Iman Nugroho S, Adi Setianto,Oni Febriarto R,

51 18-Aug Discussion on NPL Maryono, Iman Nugroho S, Adi Setianto,Oni Febriarto R, R.

52 28-Aug Performance Review July 2017 Iman Nugroho S, R. Mahelan Prabantarikso, Budi Satria
28-Aug ALCO Juli 2017 Iman Nugroho S, R.Mahelan Prabantarikso,Nixon L.P,

Budi Satria
53 5-Sep Discussion on BPK Findings Maryono, Adi Setianto,Oni Febriarto R, Mahelan Prabantarikso,
Budi Satria
54 6-Sep Progress Report on the Establishment of Subsidiary Companies, IT Maryono, Adi Setianto,Oni Febriarto R, Mahelan Prabantarikso,
Settlement Update Budi Satria
55 7-Sep Golden Property Award, Subsidized Housing Loan Business Update, IT Maryono, Adi Setianto,Oni Febriarto R, Mahelan Prabantarikso,
Update Budi Satria
56 11-Sep Update Progress on Project Digital Channel Maryono, Oni Febriarto R, Mahelan Prabantarikso, Nixon L.P,
Budi Satria
57 13-Sep Implementation Report of Bank BTN Work Culture Maryono, Oni Febriarto R, Mahelan Prabantarikso, Nixon L.P,
Budi Satria
58 18-Sep Performance Review Agustus 2017 & Update APU PPT Iman Nugroho S, Oni Febriarto, Handayani,R Mahelan
Prabantarikso, Nixon L.P
18-Sep ALCO Iman Nugroho S, Oni Febriarto, Handayani,R Mahelan

59 29-Sep Long List of Directors & Commissioners of Subsidiaries Maryono, Iman Nugroho S, Adi Setianto,Oni Febriarto R,
Handayani,R. Mahelan Prabantarikso, Budi Satria
29-Sep Human Capital Maryono, Iman Nugroho S, Adi Setianto,Oni Febriarto R,

Handayani,R. Mahelan Prabantarikso, Budi Satria
60 2-Oct Relayout of BTN Head Office Building Maryono, Iman Nugroho S, Adi Setianto,Oni Febriarto R,
R. Mahelan Prabantarikso
61 4-Oct Loan Committee Meeting - Construction KMK Iman Nugroho S, Adi Setianto,Oni Febriarto R, Handayani, Nixon L.P
4-Oct Loan Committee Meeting - Construction KMK Iman Nugroho S, Adi Setianto,Oni Febriarto R, Handayani, Nixon L.P
4-Oct Loan Committee Meetings - Pre Approval Line Iman Nugroho S, Adi Setianto,Oni Febriarto R, Handayani, Nixon L.P
62 11-Oct Proposal of Directors’ Replacement Maryono, Iman Nugroho S, Adi Setianto,Oni Febriarto R,

63 12-Okt Human Capital Maryono, Iman Nugroho S, Adi Setianto,Oni Febriarto R,
Handayani,R. Mahelan Prabantarikso,Nixon L.P, Budi Satria
12-Okt Loan Committee Meeting - KI, KMK, IDC Maryono, Adi Setianto,Oni Febriarto R, R. Mahelan Prabantarikso,
Nixon L.P
12-Okt Loan Committee Meeting - KMK Maryono, Adi Setianto,Oni Febriarto R, R. Mahelan Prabantarikso,
Nixon L.P
12-Okt Loan Committee Meeting - Principal License for Debtor Financing Maryono, Adi Setianto,Oni Febriarto R, R. Mahelan Prabantarikso,
Scheme Nixon L.P
12-Okt Update Progress of Subsidiary Plans, Housing Finance Center (HFC) Maryono, Adi Setianto,Oni Febriarto R, R. Mahelan Prabantarikso,
Work Program, Separation of ITPD and ITOD Budget Nixon L.P
64 16-Okt Risk Management Committee’s Meeting Iman Nugroho S, Adi Setianto, Oni Febriarto R, R. Mahelan Prabantarikso,
Budi Satria
16-Okt Subsidized and Non-Subsidized KPR Update, CMLD Business Reports, Maryono, Iman Nugroho S, Adi Setianto,Oni Febriarto R,
Network Reports, and Digital Products R. Mahelan Prabantarikso,Nixon L.P, Budi Satria
65 17-Okt Performance Review Iman Nugroho S, Adi Setianto,,R. Mahelan Prabantarikso,

Nixon L.P, Budi Satria
17-Okt ALCO Iman Nugroho S, Adi Setianto,,R. Mahelan Prabantarikso,

66 18-Okt Discussion on CBP 2018 Maryono, Iman Nugroho S, Adi Setianto,Oni Febriarto R,
R. Mahelan Prabantarikso,Nixon L.P, Budi Satria
67 23-Okt Analyst Meeting, SSB Billing Update Maryono, Iman Nugroho S, Adi Setianto,Oni Febriarto R, Nixon L.P
6 8 24-Okt Discussion on CBP 2018, Update Progress of Subsidiary Plan Maryono, Iman Nugroho S, Oni Febriarto R, R. Mahelan
69 25-Okt Loan Committee Meetings - Pre Approval Line Maryono, Iman Nugroho S, Adi Setianto,Oni Febriarto R,
R. Mahelan Prabantarikso,Nixon L.P
25-Okt Loan Committee Meeting - Syndication Loan Maryono, Iman Nugroho S, Adi Setianto,Oni Febriarto R,
R. Mahelan Prabantarikso,Nixon L.P
69 25-Okt CSD Activity Update, Changes in Commercial Loan Charge Date, Update Maryono, Iman Nugroho S, Adi Setianto,Oni Febriarto R,
of the Company's Management Composition R. Mahelan Prabantarikso,Nixon L.P
70 1-Nov Update on Interest Margin Subsidy, Network Report, and Digital Maryono, Iman Nugroho S, Adi Setianto,Oni Febriarto R,
Banking R. Mahelan Prabantarikso, Nixon L.P, Budi Satria
71 6-Nov Reports related to Limits on the Acts of Directors Under the Articles Maryono, Iman Nugroho S, Adi Setianto,Oni Febriarto R, R.
of Association, Update on Collective Labor Agreements with Bank BTN Mahelan Prabantarikso,Nixon L.P, Budi Satria
Trade Union, Executive Development Program
72 7-Nov Discussion on NPL, Loan Maryono, Adi Setianto,Oni Febriarto R, R. Mahelan Prabantarikso,
7-Nov Loan Committee Meeting - KMK Maryono, Adi Setianto,Oni Febriarto R, R. Mahelan Prabantarikso,
7-Nov Loan Committee Meeting - Restructuration Maryono, Adi Setianto,Oni Febriarto R, R. Mahelan Prabantarikso,
7-Nov Loan Committee Meeting - Restructuration Maryono, Adi Setianto,Oni Febriarto R, R. Mahelan Prabantarikso,
7-Nov Loan Committee Meeting - Line Facility Maryono, Adi Setianto,Oni Febriarto R, R. Mahelan Prabantarikso,
7-Nov Loan Committee Meeting - KMK Maryono, Adi Setianto,Oni Febriarto R, R. Mahelan Prabantarikso,
73 13-Nov Performance Review Maryono, Iman Nugroho S, Adi Setianto,Oni Febriarto R, Nixon L.P,
Budi Satria
13-Nov ALCO Maryono, Iman Nugroho S, Adi Setianto,Oni Febriarto R, Nixon L.P,
Budi Satria
13-Nov Limit of Authority to Stop Loan Maryono, Iman Nugroho S, Adi Setianto,Oni Febriarto R, Nixon L.P,
Budi Satria


74 20-Nov Housing Loan Parade Program Update (Housing Loan Anniversary), Maryono, Iman Nugroho S, Adi Setianto,Oni Febriarto R, R.
BPKP Findings, Crash Program for Stock Certificate and Stock Opname Mahelan Prabantarikso,Nixon L.P, Budi Satria
Main Document, IT Update and General Service
75 21-Nov Recovery Plan Draft, Internal Directors Maryono, Iman Nugroho S, Adi Setianto,Oni Febriarto R, R.
76 5-Des Internal Director Maryono, Iman Nugroho S, Adi Setianto,Oni Febriarto R, R.

77 6-Des Pension Fund Meeting Maryono, Adi Setianto,Oni Febriarto R, R. Mahelan Prabantarikso,
Budi Satria
78 12-Des Loan Committee Meetings - Bank Guarantee for Financing Guarantee Maryono, Iman Nugroho S, Adi Setianto, Oni Febriarto R,
12-Des Loan Committee Meeting - Working Capital Loan Maryono, Iman Nugroho S, Adi Setianto, Oni Febriarto R,
12-Des Loan Committee Meeting - Investment Loan Maryono, Iman Nugroho S, Adi Setianto, Oni Febriarto R,
12-Des Loan Committee Meeting - Investment Loan Maryono, Iman Nugroho S, Adi Setianto, Oni Febriarto R,
12-Des Investment Loan Maryono, Iman Nugroho S, Adi Setianto, Oni Febriarto R,
12-Des Loan Committee Meeting - KYG Maryono, Iman Nugroho S, Adi Setianto, Oni Febriarto R,
12-Des Loan Committee Meeting - Working Capital Loan Maryono, Iman Nugroho S, Adi Setianto, Oni Febriarto R,
78 12-Des Loan Committee Meeting - Working Capital Loan Maryono, Iman Nugroho S, Adi Setianto, Oni Febriarto R,
12-Des 1. Change of Vision & Mission of Bank BTN. Maryono, Iman Nugroho S, Adi Setianto, Oni Febriarto R,
2. Update Status of Transformation Strategic Blueprint Project Initiative R. Mahelan Prabantarikso,Nixon L.P, Budi Satria
12-Des IT Report Maryono, Iman Nugroho S, Adi Setianto, Oni Febriarto R,

79 14-Des Performance Review Iman Nugroho S, Adi Setianto,Oni Febriarto R, R. Mahelan

Prabantarikso, Budi Satria
14-Des ALCO Iman Nugroho S, Adi Setianto,Oni Febriarto R, R. Mahelan

Prabantarikso, Budi Satria
80 20-Des ALCO Iman Nugroho S, Adi Setianto, Nixon L.P, Budi Satria
81 22-Des Performance Prognosis December 2017 Maryono, Iman Nugroho S, Adi Setianto, Budi Satria
22-Des Loan Committee Meeting - Restructuration Maryono, Iman Nugroho S, Adi Setianto, Budi Satria
22-Des Loan Committee Meetings - Non Cash Loan Facility Maryono, Iman Nugroho S, Adi Setianto, Budi Satria
22-Des Loan Committee Meeting - Investment Loan Maryono, Iman Nugroho S, Adi Setianto, Budi Satria
82 27-Des Performance Prognosis December 2017 Maryono, Iman Nugroho S, Adi Setianto, R. Mahelan Prabantarikso,
27-Des Loan Committee Meeting - Investment Loan Maryono, Iman Nugroho S, Adi Setianto, R. Mahelan Prabantarikso,
83 29-Des Internal Director Maryono, Iman Nugroho S, Adi Setianto, R. Mahelan Prabantarikso,
29-Des Internal Director Maryono, Iman Nugroho S, Adi Setianto, R. Mahelan Prabantarikso,
The following meetings, agenda, and meeting participants

in the Joint Meeting of the Board of Directors ting with the
Board of Commissioners in 2017:
No. Date Agenda Participant Meeting

1 16-Jan Working Meeting 2017 Maryono, Mansyur Nasution, Iman Nugroho S, Adi Setianto,
2 8-Feb Discussion on Proposed Formation of Operational Risk Maryono, Mansyur Nasution, Iman Nugroho S, Adi Setianto,
Reserves and Completion of Audited Financial Statements as Sulis Usdoko, Oni Febriarto R, Catur Budi Harto S, Handayani
of December 31, 2016 by KAP
3 27-Feb Socialization of Blueprint of the Bank BTN Strategic Iman Nugroho S, Sulis Usdoko, Oni Febriarto R, Catur Budi
Transformation Plan 20162020 Harto S
4 3-May Kick Off Meeting, Implementation of New Organizational Maryono, Adi Setianto, Oni Febriarto R, Handayani,
Structure of Bank BTN R. Mahelan Prabantarikso,Nixon L.P, Budi Satria
5 2-Aug Kick Off Implementation, Strategic Initiative of Transformation Iman Nugroho S, Oni Febriarto R, R. Mahelan
Plan of Bank BTN 2017-2018 Prabantarikso,Nixon L.P, Budi Satria
6 12-Sep Socialization of Banking Holding Implementation Maryono, Iman Nugroho S, Oni Febriarto R, Handayani,
7 11-Oct Kick Off Implementation of PSAK 71 Maryono, Iman Nugroho S, Adi Setianto, Oni Febriarto R,
Handayani, R. Mahelan Prabantarikso,Nixon L.P, Budi Satria
8 31-Oct Kick Off Meeting Audit Review Limited Review and Financial Iman Nugroho S, Adi Setianto, Oni Febriarto R, R. Mahelan
Reports Fiscal Year 2017 Prabantarikso,Nixon L.P, Budi Satria
The decisions made in the internal meeting of the Board of Board of Directors Planned Meetings
Directors and joint meeting with the Company’s Commissioners The 2018 Board of Directors planned meetings have been
have been noted and documented properly in the Minutes of scheduled 12 (twelve) times, it will be held every Monday
Board of Directors’ Meeting. The Minutes of Meeting is signed and the joint meeting with the Board of Commissioners will
by the head of the meeting and distributed to every Board be routinely held once a month as described in the Board
of Directors, and other parties if required. Disenting opinion of Commissioners section. The 2018 Board of Directors
that happened at the meeting has been noted in the meeting scheduled planned meetings are as follows:
summary as well as the reasons as to why.
No. Day/Date Agenda

1 Monday / January 15, 2018 ALCO & Performance Review
2 Monday / February 12, 2018 ALCO & Performance Review
3 Monday / March 12, 2018 ALCO & Performance Review
4 Monday / April 9, 2018 ALCO & Performance Review
5 Monday / May 14, 2018 ALCO & Performance Review
6 Monday / June 11, 2018 ALCO & Performance Review
7 Monday / July 16, 2018 ALCO & Performance Review
9 Monday / August 13, 2018 ALCO & Performance Review
10 Monday / September 17, 2018 ALCO & Performance Review
11 Monday / October 15, 2018 ALCO & Performance Review
12 Monday / November 12, 2018 ALCO & Performance Review
13 Monday / December 17, 2018 ALCO & Performance Review
Evaluation on the Follow Up Result of the Board of 1. Corporate Secretary submitted the Directors’ Meeting
Directors’ Meeting decisions to the related task force.
The decision of the Board of Directors’ Meeting is recorded 2. The working unit and other relevant task force shall
in the Minutes of Directors’ Meeting, which shall be followed implement the result of the Board of Directors’ resolutions
up in accordance with the authority of the relevant division, as well as possible.
and will be implemented in the Bank’s operational policy level. 3. The working unit shall report the work result to the Board
The mechanism is as follow: of Directors.

Diversity Policy and Succession of the

Board of Commissioners and Directors
Diversity Policy for the Composition of the Board The consideration of diversity aspect of education and work
of Commissioners and Directors experience is performed in order to face the increasingly
Determination of the composition of the Board of competitive business, both to seize opportunities and to
Commissioners and Directors refers to the diversity policy minimize risk, and to respect the rights of every citizen related
based on the provisions of Shareholders and the provisions to the diversity aspect of age and gender.
set forth in the Board Charter of the Board of Commissioners, However, the policy still considers the priority needs related
which is a reference consideration in the process of nomination to the Company’s business field.
and succession of the Company’s Board of Commissioners
and Directors, with due regard to knowledge, expertise, and The current composition of the Board of Commissioners and
experience in line with the Company’s needs, thus obtaining Directors have met the elements of diversity i.e. a combination
the optimal composition of the Board of Commissioners and of independence, expertise/education, work experience, age, and
Directors. gender taking into account the Company’s needs and complexity.
In addition, the scope and the balance of knowledge, skills, All members of the Board of Commissioners and Directors
and experience are also considered in achieving the optimum have integrity, competence and good financial reputation.
composition of the Board of Commissioners and Directors who This is evidenced by obtaining the Indonesia Financial Services
are expected to optimize decision-making and improve the Authority’s approval on the Fit and Proper Test for the members
Company’s performance. of the Company’s Board of Commissioners.
Table: Diversity on the Composition of the Board of Commissioners Per December 31, 2017
No Name & Position Gender Age Last Education Degree Work Experience Expertise
1 I Wayan Agus Male 70 years Bachelor of Economics from ›› General Manager of Bank Bumi Daya Los ›› Finance
Mertayasa Brawijaya University, Malang Angeles Agency (USA) ›› Banking
President in 1973 ›› Chief Executive of Bumi Daya Finance Hongkong
Commissioner/ ›› General Manager of Bank Bumi Daya New York
Independent ›› Director of Bank Pembangunan Indonesia
Commissioner ›› EVP /& Director PT Bank Mandiri (Persero) Tbk
›› Deputy Director PT Bank Mandiri (Persero) Tbk
›› Chairman Non-Executive Director, Bank Mandiri
(Europe) Limited, London UK
2 Kamaruddin Sjam Male 70 years Master of Management ›› Member of Commission XI of the House of ›› Audit
Independent (MM) from IPWI College of People’s Representatives (DPR) ›› Finance
Commissioners Economics, Jakarta, in 1997 ›› Director of Agency Supervision at the
Financial and Development Supervisory
Agency (2002-2007).
›› President Commissioner of PT Lanang Bersatu.
3 Arie Coerniadi Male 50 years Bachelor of Electric ›› Vice President of NISP Sekuritas Group ›› Finance and
Independent Engineering from the ›› Head Vice President of Indonesian Bank ›› Technology
Commissioners University of Indonesia (1991) Restructuring Agency Information
›› Vice President of Indonesian Central
Securities Depository
›› Chief Finance Officer of Sarana Global
Indonesia
4 Lucky Fathul Aziz Male 61 years ›› Master of Art (MA) in ›› President Director of Pension Fund at OJK ›› Finance
Hadibrata Development Economics ›› Deputy Commissioner of Strategic Management ›› Macro
Independent from Boston University, 1B at OJK Economics and
Commissioners Massachusetts, USA (1985) ›› Chief Representative of Bank Indonesia ›› Strategy
›› Master of Science (MS) Region VI in Bandung ›› Management
from the University of ›› Chief Representative Bank Indonesia New York
Hasanuddin, Makassar
(1991)
5 Sumiyati Female 56 years Master of Financial ›› Head of Financial Education and Training ›› Public Financial
Commissioners Management (M.F.M) from Agency (BPPK), Ministry of Finance Audit and
Queensland University, ›› Commissioner of PT Jiwasraya (Persero), Human
Australia ›› Head of Financial Planning Bureau, Secretariat Resources
General of the Ministry of Finance Development
6 Maurin Sitorus Male 61 years Ph.D. in Monetary and ›› Director General for Housing Financing, ›› Law
Commissioners International Economics from Ministry of Public Works ›› Economy
the University of Kentucky, ›› Secretary of Directorate General of Debt
Lexington, USA Management, and Directorate General of
Debt Management, Ministry of Finance.
7 Iman Sugema Male 53 years Ph.D. in Economics Department ›› President Commissioner/ Independent ›› Economy
Commissioners of Economics, Research School Commissioner of PT Perusahaan Gas Negara Tbk ›› Finance
of Pacific and Asian Studies, ›› Senior Economist at Megawati Institute,
The Australian National ›› Lecturer – Faculty of Economics &
University. Management, IPB.
8 Garuda Wiko Male 52 years Doctorate in Law from the ›› Lecturer at the Master Management Program Law
Independent University of Diponegoro in at Tanjungpura University
Commissioners 2006. ›› Member of Senate of Pontianak State Islamic
Institute, and Professor of Sharia Department
Table: Diversity on the Composition of the Board of Directors Per December 31, 2017
1 Maryono Male 62 years Master degree from Sekolah ›› President Director di PT Bank Mutiara Tbk ›› Banking
President Director Tinggi Ilmu Ekonomi IPWI ›› EVP/Group Head Jakarta Network ›› Leadership
(1998) PT Bank Mandiri (Persero) Tbk ›› Strategic
›› Regional Office Head I/Medan Management
PT Bank Mandiri (Persero) Tbk
›› Regional Office Head IX/Banjarmasin
PT Bank Mandiri (Persero) Tbk
2 Iman Nugroho Male 62 years Master of Social Science ›› Chief Executive Bank Mandiri (Europe) Ltd ›› Treasury
Soeko (M. Sos. Sc) from the ›› Group Head International Banking &Capital ›› Accounting
Director of Finance University of Birmingham, Market Services PT.Bank Mandiri Tbk and Corporate
& Treasury UK (1989) ›› Senior Manager Asset Management & Disposal Finance;
Department PT Bank Mandiri (Persero) Tbk ›› Corporate
›› Credit Recovery II Department Head, Branding
›› PT Bank Mandiri (Persero) Tbk
›› FI Credit Risk & Product Development Department
Head PT.Bank Mandiri)
›› Correspondence Banking Department Head,
PT.Bank Mandiri General Manager
(Bank Mandiri Singapore Branch)
›› General Manager (Bapindo Hongkong Branch)
3 Adi Setianto Male 56 years Master of Business ›› Direktur Jaringan dan Layanan, ›› Operation
Director of IT & Administration (MBA) Drexel PT Bank Negara Indonesia (Persero) Tbk ›› Information and
Operation University, Pennsylvania, ›› Direktur Treasury dan IF, Communication
USA 1992 PT Bank Negara Indonesia (Persero) Tbk Technology
›› Pemimpin Divisi Jasa Keuangan dan Dana Institusi
›› Pemimpin Divisi Jaringan,
PT Bank Negara Indonesia (Persero) Tbk
›› Pemimpin Wilayah IV Bandung,
›› Pemimpin Cabang Tangerang,
4 Oni Febriarto R Male 47 years Master of Management ›› Small & Micro Lending Division Head, ›› Commercial
Director of (MM) from PPM College of PT Bank Tabungan Negara (Persero) Tbk lending;
Commercial Economics, Jakarta, in 1996 ›› Branch Manager of Ciputat Branch Office, ›› Mortgage Banking;
Banking PT Bank Tabungan Negara (Persero) Tbk ›› Sharia Banking
5 R. Mahelan Male 48 years Master of Management from ›› Head of Strategic Innovation and Performance ›› Strategic
Prabantarikso Gajah Mada University and Management Division, PT Bank Tabungan Negara Management
Director of Strategy, Doctoral Candidate of Business (Persero) Tbk ›› Corporate
Compliance, Management/ Strategic ›› Head of Change Management Office Division Governance
and Risk Management of Agribusiness PT Bank Tabungan Negara (Persero) Tbk ›› Risk and
from Institut Pertanian Bogor, Compliance
Bogor in 2018.

6 Nixon L.P. Male 48 years Bachelor of Accounting ›› President Director of PT Bank Mandiri Taspen Pos ›› Mortgage
Napitupulu from the University of North ›› Senior Vice President Corporate Transformation Banking
Director of Sumatera, Medan, in 1994 Group – Head of Priority Project, PT Bank Mandiri ›› Collection
Collection, Asset (Persero) Tbk and Asset
Management, and ›› Group Head – Senior Vice President Corporate Management
Legal Secretary Group, PT Bank Mandiri (Persero) Tbk) ›› Consumer
›› PJ Group Head – Senior Vice President Strategy Banking
& Performance Management Group, PT Bank
Mandiri (Persero) Tbk
›› Group Head – Senior Vice President Micro
Network Development Group, PT Bank Mandiri
(Persero) Tbk
›› PJ Group Head – Senior Vice President Micro
Network Development Group, PT Bank Mandiri
(Persero) Tbk
7 Budi Satria Male 54 years Master of Management from ›› Head of Jakarta Region, PT Bank Rakyat ›› Marketing
Director of the University of Indonesia, Indonesia (Persero) Tbk ›› Consumer
Consumer Banking Jakarta, in 2001 ›› Corporate Secretary PT Bank Rakyat Indonesia Banking
(Persero) Tbk ›› Quality Service
›› Head of Palembang Region, PT Bank Rakyat
Indonesia (Persero) Tbk
›› Inspector (Regional Head, Office) of Banjarmasin
Inspection Office, PT Bank Rakyat Indonesia
(Persero) Tbk
›› Deputy Head of Kepala Marketing Communication,
PT Bank Rakyat Indonesia (Persero) Tbk
›› Chief Representative, Hong Kong Representative
Office, PT Bank Rakyat Indonesia (Persero) Tbk
8 Dasuki Amsir Male 55 years Magister Management (MM) ›› President Director of Holding State-Owned ›› Operation
Distribution & from the Gadjah Mada Plantation of PT Perkebunan Nusantara (PT. ›› Network and
Network University, 2009 PN) III Electronic
›› President Director of PT Perkebunan Nusantara Channel
(PT.PN) IV
›› Director of Finance of PT Perkebunan Nusantara
(PT.PN) XII
›› CEO of Surabaya PT BNI Branch Office
Succession and Nomination Policy of the Board of The Talent Mapping Method is conducted with the
Commissioners and Directors objectives to:
Succession Planning a. Determine management and development program
Human Capital Management Division (HMCD) through for the Employees.
Talent Management System (TMS) prepares candidates for b. Place Employee in appropriate Position.
employees as prospective Directors through several programs c. Perform revamping and extermination measures to
as follows: maximize Bank’s performance.
1. Talent Mapping Program The Talent Mapping is a process to assess the Employee’s
The process of identifying and/or nominating members Performance and Potential, as outlined in the ‘9 Boxes’ as
of the Board of Commissioners and Directors is initiated illustrated:
by implementing the process and activity of Employees’
Low 7 8 9
management and placement by implementing Talent P
E
Mapping program. Company believes the Employees’ R
management and placement is the success key in F
O Medium 4 5 6
improving the Bank’s performance. Company sets a R
method and procedure to manage the Employees so the M
A
Management may place them in the appropriate position, N High 1 2 3
in particular, strategic positions that determine the success C
E
of the achievement of the main targets so as to align with
the strategic goals set in order to realize the Company’s Low Medium High
vision and mission.
Potential
Based on the assessment, there are 9 (nine) Employees’ The Succession Planning Committee shall periodically
categories that reflect the characteristics difference of the evaluate the succession planning program that has been
two aspects assessed, as follows: implemented by:
a. Talent 9: High-Performance High Potential Employees. a. Reviewing and revising strategies and plans according
b. Talent 8: High-Performance Medium Potential Employees. to individual and organizational developments;
c. Talent 7: High-Performance Low Potential Employees. b. Succession Planning Committee annually reviews and
d. Talent 6: Medium Performance High Potential Employees. revises strategies and succession plans according to
e. Talent 5: Medium Performance Medium Potential individual development and organizational needs.
Employees.
f. Talent 4: Medium Performance Low Potential Employees. 3. Succession Program for Directors and
g. Talent 3: Low-Performance High Potential Employees. Commissioners
h. Talent 2: Low-Performance Medium Potential Employees. Talent Mapping Program and Succession Program,
i. Talent 1: Low-Performance Low Potential Employees. as described above shall be the basis of Company
management to determine the candidate members
2. Succession Program of the Board of Directors in coordination with the
Based on the talent mapping, Company steps further to Remuneration and Nomination Committee and the
implement the succession program. Company establishes Board of Commissioners. Company sets the criteria for
a policy and mechanism for filling strategic positions (up to employees based on the ‘Star’ talent mapping results
the top management level) that play a key role in aligning for employees who become successors or nominees of
with the Company’s strategic direction to realize the members of the Board of Directors.
Bank’s vision and mission.
Thus, the Talent Mapping conducted by the Company
The objective of succession planning, among others are: (a) management is considered as the main consideration
To audit the Bank’s talent pool to assist in the responsibilities for the Remuneration and Nomination Committee for
establishment and strategies development to fill in the candidate’s selection for Board of Directors that
identified talent gaps; (b) To build key talent resources from are aligned with their competence needs to realize
employees who share key skills, key knowledge, experience, the strategic objectives set by Company. In performing
and values that are important to the Company’s future. our duties and responsibilities, the Remuneration
and Nomination Committee refers to the applicable
Company succession policy is disclosed on item E.5.3 (see regulations, including those based on the provisions
attachment [cross reference]). In general, the mechanism of Bank Indonesia (BI)/Financial Services Authority
of Company Succession Program is performed through (OJK) stipulating that any proposed replacement and/or
several stages as follows: appointment of members of the Directors and Board of
a. The Succession Planning Committee creates a Commissioners to the GMS shall take into account the
succession plan for each of the intended positions based recommendation of the Remuneration and Nomination
on the results of the selection of potential successors; Committee.
b. The succession planning committee discusses
the succession plan with the management, direct Prospecting Process of Prospective Directors
supervisors, employees, and parties involved to ›› Based on the TMS result, HMCD shall propose the
finalize a succession plan to be mutually agreed upon; prospective Director to the Board of Directors.
c. Successors and direct supervisors or appointed ›› Directors submit the prospective Director proposal to the
mentors conduct analysis of assessment results Board of Commissioners
and compile development plans for technical and ›› The Board of Commissioners through the Remuneration
behavioral competence gaps; and Nomination Committee (KRN) discuss the proposed
d. The direct supervisor or assigned mentor recommends prospective Directors.
a specific Development Program for each successor to ›› KRN recommends the prospective Director to the Board
be discussed with the Succession Planning Committee. of Commissioners.

Proposal to the Bicolor Series A Shareholder Selection/Testing Process

Based on the Minister of SOEs Regulation No. PER-03/ ›› The prospective Directors shall be evaluated for Formal
MBU/02/2015 dated February 17, 2015, on the Requirements, Requirements and Other Requirements, and undergo
Procedure for Appointment and Dismissal of SOEs Directors, it the Fit and Proper Test (UKK) by the Ministry of SOEs.
stipulates that the Candidates for SOEs Directors come from: ›› Evaluation of Formal Requirements and Other
1. SOEs Directors; Requirements is conducted by the Deputy/Deputy
2. SOEs Board of Commissioners/Board of Trustees; Technical of the Ministry of SOEs.
3. SOEs Talents, that consist of: ›› Fit and proper test is carried out by professional
a. Officers reporting directly to the Directors or officers institution or Team from the Ministry of SOEs.
with special performance; ›› The evaluation of prospective candidates to be
b. Directors of SOEs subsidiaries/joint ventures. submitted to the GMS, is conducted by the Ministry
4. Ministry of SOEs Talents; of SOE Team involving the Chairman of KRN. If the
5. Other Resources from other SOEs Officers and other sources. Chairman of KRN is absent, he/she shall be replaced by
Independent Commissioner from KRN.
Thus, the process to Propose the SOEs Talents as the ›› Prospective candidates who have fulfilled the Formal
Prospective Candidates of Directors to the Bicolor Series A Requirements and Other Requirements and passed
Shareholder is as follow: the UKK, are set to become candidates for the Board of
›› The Board of Commissioners submits the candidates Directors.
of Directors to the Ministry of SOEs (Bicolor Series A
Shareholder) as the SOEs talents from Company. GMS Appointment Process
›› If the Ministry of SOEs has other candidates, the Ministry The Power or Representation of Bicolor Series A Shareholder
of SOEs shall ask the Board of Commissioners to shall submit the proposal of the name of the candidate of
assess the prospective candidates and if they meet the Board of Directors (along with the resumes) to the Chairman
requirements, the Board of Commissioners proposes to of the GMS to be decided as the Board of Directors at the
the Ministry of SOEs. said GMS.
Affiliations Between Member of Board of

Directors, Board of Commissioners, and
Major and/or Controlling Shareholders
Affiliations Between Member of Board of Directors, Board of Commissioners,

and Major and/or Controlling Shareholders shall mean familial relationship,
financial relationship, share ownership, management in other Companies
(concurrent positions), that may create conflict of interests.
Board of Directors Affiliation

In 2017, the familial and financial relationship between the
Directors and members of Board of Commissioners and/or
Directors and Shareholders are listed in the following table:
Table: Familial and Financial Relationship of Board of Directors Per December 31, 2017
Familial Relationship with Financial Relationship with

Board of Board of
No Name and Position Commissioners Directors Shareholders Commissioners Directors Shareholders Jabatan
Maryono
1 No No No No No No No
President Director
Iman Nugroho Soeko

Chief Financial Officer
Adi Setianto
Chief Information Officer
Oni Febriarto R
Managing Director Commercial Banking
Handayani
Managing Director Consumer Banking
Managing Director Strategy, Compliance & Risk
Nixon L.P. Napitupulu

Chief Credit Officer
Budi Satria
Managing Director Distribution & Network
Throughout 2017, the Company’s Directors do not have any Familial and Financial Relationship with fellow members of Board of Commissioners, Directors,
and Major and/or Controlling Shareholders.
Board of Directors’ Shareholding with all prevailing regulations, and maintain the independence of
In accordance with Bank Indonesia provisions, members of the each Director, among others by requiring members of the Board
Board of Directors, either individually or jointly, are prohibited of Directors to disclose their shareholding, both at Company,
from owning more than 25% of the paid-up capital of another other Banks, Non-Bank Financial Institutions, and other
company. Therefore, the Company aims to improve compliance companies, which are located inside and outside the country.

As of December 31, 2017, members of the Board of Directors’

shareholding amounts to 5% or more than the paid-up capital,
including the type and number of shares at the Company, other
Banks, Non-Bank Financial Institutions, and other companies,
which are located inside and outside the country. The data are
listed in the table below:
Board of Directors’ Shareholding as of December 31, 2017
Shareholding
No Name and Position Company Other Banks Non-Bank Financial Institutions Other Companies
Maryono
1 98.500 None None None
President Director
Iman Nugroho Soeko

2 None None None None
Adi Setianto
Oni Febriarto R
Handayani
6 64.000 None None None
Nixon L.P. Napitupulu

Budi Satria
All members of Directors do not hold shares of 5% or more in the Company, other Banks, Non-Bank Financial Institutions, and other companies, which is in
line with the POJK No.55/POJK.03 2016.
Concurrent Positions position as a member of Board of Commissioners in

Concurrent Positions of Directors is stipulated in the Directors’ another company, with the exception of:
Code of Conduct, in which the Directors are prohibited from a. Members of the Board of Commissioners of a Subsidiary/
acting concurrently as: joint venture of the respective SOE, under the provisions
1. A member of the Board of Directors at State-Owned that they are only entitled to the accumulation of income as
Enterprises (SOEs), Regional-Owned Enterprises, and a Member of the Board of Commissioners at one or more
Private Owned Enterprises; subsidiaries/joint ventures i.e. maximum of 30% (thirty
2. A member of the Board of Commissioners/Board of percent) salaries of members of the respective Board of
Trustees in SOEs; Directors in SOE. Other/additional income is transferred
3. Other structural and functional positions in institutions/ and considered to be the respective SOE’s revenue.
agencies of the central and/or local government; b. Members of the Board of Commissioners of another
4. Members of management of political parties, a legislative company to represent/fight for the SOE’s interest,
member and/or regional/deputy regional head; and/or with permission of the Minister of SOEs.
candidate of legislative or candidate of regional/deputy
regional head; Excluding concurrent positions, if the members of the Board
5. Other positions in accordance with the rules and legislation, of Directors are responsible for the supervision of the Bank’s
and other positions that may cause conflict of interest. investments in subsidiaries or joint ventures, carry out
6. Holds a position as a member of Directors, Board of functional tasks as a member of the Board of Commissioners
Commissioners, or Executive Officers in another bank, in subsidiaries controlled by the Bank, as long as the concurrent
company, and/or institution. position does not interfere with their duties and responsibilities
7. Members of Directors are prohibited from having concurrent as members of the Board of Directors of the Bank.
Concurrent Positions of Company’s Directors in 2017
No Name and Position Concurrent Positions

1 Maryono none
President Director
2 Iman Nugroho Soeko none
3 Adi Setianto none
4 Oni Febriarto R none
5 Handayani none
6 R. Mahelan Prabantarikso none
7 Nixon L.P. Napitupulu none
8 Budi Satria none
Conflict of Interest e. Report the Company’s share transactions within 3 (three)

In the event of a Conflict of Interest, i.e. certain condition in which workdays.
the economic interest of the Company conflicts with the personal f. Members of Directors, either individually or jointly, are
economic interest, the member of Directors shall always: prohibited from owning more than 25% of the paid-up
a. Prioritize the Company’s interest without diminishing the capital of another company,
Company’s economic interest in the event of conflict of g. Members of Directors are prohibited from granting power
interest; of attorney to any other party that may result in the
b. Avoid making decisions in the event of conflict of interest; transfer of Directors’ duties and responsibilities.
c. Disclose a decision needed to be taken in the event of
conflict of interest. Board of Commissioners Affiliation
d. In the event of loan to the Directors, the loan shall be In 2017, the familial and financial relationship between the
based on the fairness limits in accordance with the Bank’s member of Board of Commissioners and fellow members of
provisions without discriminating other customers (arm’s Board of Commissioners and/or Directors and Shareholders
length basis). are listed in the following table
Table: Familial and Financial Relationship of Board of Commissioners

Familial Relationship with Financial Relationship with
Board of Board of
No Name and Position Commissioners Directors Shareholders Commissioners Directors Shareholders Jabatan

President Commissioner/Independent Commissioner
Kamaruddin Sjam
Arie Coerniadi
Lucky Fathul Aziz Hadibrata

Sumiyati
Commissioner
Maurin Sitorus
Commissioner
Iman Sugema
Commissioner
Garuda Wiko
Throughout 2017, the Company’s Board of Commissioners does not have any Familial and Financial Relationship with fellow members of Board of
Commissioners, Directors, and Major and/or Controlling Shareholders.

Board of Commissioners’ Shareholding maintain the independence of each Board of Commissioners,

In accordance with Bank Indonesia provisions, members of among others by requiring members of the Board of
the Board of Commissioners, either individually or jointly, Commissioners to disclose their shareholding, both at
are prohibited from owning more than 25% of the paid-up Company, other Banks, Non-Bank Financial Institutions,
capital of another company. Therefore, the Company aims and other companies, which are located inside and outside
to improve compliance with all prevailing regulations, and the country.
Board of Commissioners’ Shareholding in 2017

Shareholding
No Name and Position Company Other Banks Non-Bank Financial Institutions Other Companies

Kamaruddin Sjam
Arie Coerniadi

Sumiyati
Commissioner
Maurin Sitorus
Commissioner
Iman Sugema
Commissioner
Garuda Wiko
Throughout 2017, the Company’s Board of Commissioners does not own any share in the Company, other Banks, Non-Bank Financial Institutions, and other companies.
Concurrent Positions
Concurrent Positions of Board of Commissioners is stipulated or Executive Officer at 1 (one) Non-Bank Financial Institution/
in the Board of Commissioners’ Code of Conduct, in which Company, and as member of Board of Commissioners, Directors,
the members of Board of Commissioners shall only act or Executive Officer who performs supervisory functions in 1
concurrently as member of Board of Commissioners, Directors, (one) non-Bank subsidiary, controlled by the Bank.
Board of Commissioners’ Concurrent Position 2017
No Name and Position Concurrent Positions

1 -
Kamaruddin Sjam
2 -
Arie Coerniadi
3 -

4 -
Sumiyati
5 Inspectorate General of the Ministry of Finance
Commissioner
Maurin Sitorus Director General of Housing Financing of the Ministry of Public Works and Public
6
Commissioner Housing (ended on March 3, 2017)
Iman Sugema
7 Lecturer at Bogor Agricultural University (IPB)
Commissioner
Garuda Wiko
8 Lecturer at Tanjungpura University
In 2017, 4 members of Board of Commissioners have concurrent positions. However, this does not violate any provisions of the Board of Commissioners’ Code
of Conduct and prevailing legislation
Board of Commissioners’ Conflict of Interest 1. Prioritize the Company’s interest without diminishing
A conflict of interest is a condition in which the Company’s the Company’s economic interest in the event of conflict
economic interests clash with the personal economic interests. of interest;
In the event of any conflict of interest, members of the Board 2. Avoid making decisions in the event of conflict of
of Commissioners, Directors, and Executive Officers of the interest;
Company are prohibited from taking actions that could harm 3. Disclose any familial, financial, management,
the Company or reduce the profits of the Company and must ownership relationships with fellow member of Board
disclose conflicts of interest referred to in any decision. of Commissioners and/or Directors and/or Controlling
Shareholders of the Company and/or other parties in the
In the event of potential Board of Commissioners’ conflict framework of the Company’s business
of interest as stipulated in the Board of Commissioners 4. Disclose a decision needed to be taken in the event of
Guidelines Procedures, the Commissioners shall: conflict of interest.

The Company’s Remuneration Governance

Implementation
The Company provides various remuneration system to Remuneration in accordance with OJK Regulation No.
support the welfare of Board of Commissioners, Directors, and 45/POJK.03/2015. This regulation has considered many
its employees, both compulsory in accordance with applicable aspects, namely financial stability of the Company, the risk
legislation, or additional in nature. The remuneration system is management, short term and long term liquidity requirement,
one of the aspects of promoting, motivating, and maintaining the and future potential profit. The policy aspects include among
best employees in order to provide quality Human Resources. others, the objectives of implementing governance in the
provision of remuneration, variable remuneration, and
The compilation of this remuneration policy is inseparable from material risk takers.
the company’s capability and always based on competitive,
fair, and risk-based manner, in line with the OJK direction and The Company sets remuneration for Board of Commissioners
policy. To maintain competitive remuneration, the Company and Directors based on the Minister of State-Owned
continually conducts benchmarking through surveys by Enterprise Regulation, i.e. the salary of Board of
independent parties. Commissioners and Directors is set on the General Meeting
of the Shareholders (GMS). The policy stipulated in the GMS
Procedures and Mechanism for Establishment of is to grant power and authorization to the Bicolor Series A
the Remuneration Policy Shareholder to determine the amount of tantiem for the
In order to encourage the transparency regarding remuneration fiscal year 2016, and to determine the salary/honorarium,
information and to maintain the bank’s business continuity, allowances, facilities, and other incentives for members of
the Company has complied with OJK Regulation No. 45/ the Board of Commissioners. The policy also grants power
POJK.03/2015 on the Governance Implementation for and authorization to the Board of Commissioners with prior
Commercial Bank’s Remuneration by issuing remuneration written approval from the Bicolor Series A Shareholder,
policies that have been adjusted to the OJK Regulation. to determine the amount of tantiem, salary/honorarium,
allowances, facilities, and other incentives for the Board
Remuneration Policy Organization Procedure for Board of of Directors.
Commissioners and Board of Directors
The Company has issued Board of Directors’ Decree No. The procedure to set remuneration of Board of Commissioners
57/DIR/HCD/2016 on Governance Implementation on and Board of Directors is as follows:
Board of Commissioners KRN coordinates with Human The proposed remuneration

assign the Remuneration Capital Management & Culture is submitted to the Board of
and Nomination Committee Specialist (HMCD) and related Commissioners
task forces to compile the
(KRN) to review the remuneration proposal for Board
remuneration of Commissioners and Directors
1 2 3
GMS grants authorization Board of Commissioners Board of Commissioners

and power to the Board of submits the proposed discusses the proposed
Commissioners to decide, with remuneration for Board remuneration submitted
prior approval from the Bicolor of Commissioners and by KRN
Series A Shareholder Directors to GMS
6 5 4
The scope of the Bank’s remuneration policy that has been ›› Loss or damage to the Company’s reputation
adjusted to the POJK No. 45/POJK.03/2015 and OJK Circular ›› Employee’s involvement directly or indirectly related to
Letter (SEOJK) No. 40/SEOJK.03/2016 on Governance the act or transaction conducted
Implementation on Commercial Bank’s Remuneration includes: Officer who is categorized as MRT, with criteria as follow:
a. The prudence principles in remuneration are based on 1. Causing significant damage to the Company’s reputation
performance and risk. or negative impact on the Company’s finance or business
b. The Material Risk Taker (MRT) is categorized as follows: opportunity.
›› Material Risk Takers (MRT) can be determined by using 2. Causing significant financial loss.
qualitative methods in accordance with the portion 3. Conducted fraud, unethical actions, and/or falsification of
of responsibilities affecting the main risk profile to be records.
determined in accordance with the evaluation of risk 4. Causing material risk or providing false financial statement.
profile specified by the Bank annually. 5. Conducted violation of policies, rules, and procedures
›› MRT category can be determined quantitatively through deliberately.
comparison of variable remuneration between MRT 6. Causing significant loss to the work unit related because
and non-MRT employees, taking into consideration the the risk management is not conducted properly.
performance and position risk of the employees. 7. Causing negative significant impact on the bank capital
c. The application of variable remuneration is in accordance which was not caused by climate change, economics, or
with regulatory provisions related to the remuneration industrial.
for commercial banks. 8. Disclose confidential information to external party
Improvement of remuneration strategy includes review deliberately.
on performance-based and risk-based Remuneration
policy, empowerment through system implementation and Performance assessment and Remuneration
improvement of policies and procedures of benefit program. 1. Remuneration policy linked to the performance assessment
Assessment of remuneration system and employee welfare The Company has policy on Performance Management
shall be conducted periodically and continuously, taking into System that stipulated the increase of remuneration on
account the following matters: pay for performance is regulated in separate rules on Basic
a. Bank’s Financial Performance Salary Policy
b. Employees’ competence and performance
c. Remuneration practices prevailing in the market 2. Method to Calculate the Remuneration linked to Company’s
Remuneration structure which indicates the type and/or performance, work unit performance, individual performance
short-term or long-term benefits, and/or post-employment Policy in the Company’s Performance Management System
is as follows. stipulates the Performance Target Assessment, which
1. Short-term remuneration consists of Salary, Allowances includes Company’s Work Target (SKP), Task Force Target
(holiday, transportation), Amenities (health, legal aid), (SKU), and Individual Work Target (SKI). The work target
and Performance Bonus. assessment is conducted by comparing the actual work
2. Long-term remuneration and/or post-employment achievement with the respective work target.
consist of Full Insurance based on Position and may be
awarded in the form of additional long-term rewards In the Performance Management System Policy, the Company
(long-term incentive/LTI). also regulates the assessment of the corporate culture
competence and leadership competence for employees who
Scope of Remuneration Policy and its Implementation have subordinates.
per Business Unit, per Area, and on Subsidiary or
Branch Office Located Abroad 3. Descriptions of the methods used by the Company to
The Company’s Remuneration Policy has considered the state that the specific performance is not achieved; thus
geographic area of said Branch Office. The Company has a the need to adjust the remuneration and remuneration
policy in terms of providing regional support for certain regions. value if the condition happens
Remuneration Adjustment Method is related to the
Remuneration Adjustment related to Performance and Risk performance achievement. The adjustment is conducted
The Company may postpone the variable remuneration by the Company through the policy of increase of basic
payment that is suspended (Malus) or retract the variable salary every year based on the value of Performance
remuneration payment that is already paid (Clawback) to officer Management System of the previous year and Comparatio.
that categorized as Material Risk Taker (MRT), with the provision Comparatio is a percentage calculated from the basic
as follows: salary of a Permanent Employee to the midpoint of the
1. The Company applied Malus implementation in the basic salary range, category Permanent Employee.
variable remuneration, whilst considering factors such as:

In order to maintain qualified employees, the Company of Directors refer to the State Ministry for State-Owned
provides Production Services as a form of remuneration Enterprises Regulation Number: PER-01/MBU/06/2017
directly related to the employees’ performance on Second Amendment to the Minister of State Owned
assessment, as reflected in the Performance Management Enterprises Regulation No. PER-04/MBU/2014 on Guidelines
System (SMK). for Stipulation of Directors, Board of Commissioners, and
Board of Trustees of State-Owned Enterprises. Salary/
External Consultant Related to Remuneration Policy Honorarium of members of the Board of Directors, Board of
Consultant: PT Mercer Indonesia Commissioners, and Board of Trustees shall be determined
Scope of Work: based on the following factors:
1. Analyzing the remuneration data and Market Benchmark 1. Business scale factor;
for remuneration of Board of Directors and Board of 2. Business complexity factor;
Commissioners 3. Inflation rate;
2. Preparing recommendations for Salaries of Board 4. Company’s financial conditions and capability;
of Directors and Board of Commissioners based on 5. Other relevant factors, which must not conflict with laws
the Market Benchmark results and regulations from and regulations;
applicable regulators 6. The composition of Salary/Honorarium of the Board of
3. Preparing recommendations of Tantiem of Board of Directors and Board of Commissioners is stipulated as follows:
Directors and Board of Commissioners based on the a. The salary of the President Director is determined by
Company’s performance, Market Benchmark, and using internal guidance stipulated by the Minister;
regulations from applicable regulators b. Salaries of other members of Board of Directors is 90%
4. Preparing the recommendation for Long-Term Incentive of the President Director’s salary;
(LTI) scheme. c. President Commissioner’s Honorarium is 45% of the
President Director’s salary;
Connection between Remuneration with Public d. Members of Board of Commissioners’ Honorarium is
Performance or Public Company 90% of the President Commissioner.
In the Board of Directors’ Decree No. 02/PD/HDC/2017 on
Board of Directors’ and Board of Commissioners’ Income, Disclosure of Information of Remuneration Policy
it is stated that remuneration type that is accepted by the for Board of Commissioners and Board of Directors
Directors and Board of Commissioners are tantiem/work Remuneration Packages and Amenities for Board of Directors
incentive, which is a reward for them in case of a Company’s and Board of Commissioners Including Remuneration Structure
performance improvement and it does not accumulate losses. and Nominal Amount
Board of Commissioners’ and Board of Directors’ Components of Remuneration for the Board of Commissioners
Indicators for Determining Remuneration and Board of Directors are:
In setting the indicator, Board of Commissioners and Board
Total
Compensation
Fixed Pay + Variable Pay + Variable Pay
Gaji/honorarium Tantiem Long-term Incentive
In accordance with Board of Directors’ Decree No. 57/DIR/ b. Unfixed remuneration

HCD/2016 on Governance Implementation on Remuneration, Given in the form of cash or share or share-based
there are permanent and variable components of remunerations instruments issued by the Company.
for Board of Commissioners and Board of Directors.
a. Permanent remuneration Written approval from the Bicolor Series A Shareholder
Given in the form of cash which may be accompanied by determines the tantiem for Fiscal Year 2016, and the salary/
provision in cash. honorarium, allowances, and facilities for the Directors and
Board of Commissioners in 2017. The description of types and

facilities received by Board of Commissioners and Directors
throughout 2017 are as follows:
Board of Commissioners’ Remuneration
2016 (Amount received in 1 year) 2017 (Amount received in 1 year)

No Type of Remuneration and Other Amenities People Amount (in million Rupiah) People Amount (in million Rupiah)
1. Remuneration
›› Honorarium 15 6.777 10**) 8.833
›› Regular Allowance*) 15 5.693 10**) 6.365
›› Tantiem 15 9.579 10**) 14.331
2. Other facilities in nature

a. Owned 15 - - -
b. Not owned 15 - - -
Total 22.049 29.529
Remark
*) Leave Allowance, Income Tax Benefit, Clothing Money, Holiday Allowance, and Full Premiums Compensation;
**) Company’s Board of Commissioners consists of 8 (eight) people. There are 2 (two) members of Board of Commissioners who do not serve the position but still get
2017 remuneration in the form of tantiem.
Board of Directors’ Remuneration
2016 (Amount received in 1 year) 2017 (Amount received in 1 year)

No Type of Remuneration and Other Amenities People Amount (in million Rupiah) People Amount (in million Rupiah)
1. Remuneration
›› Salary 12 15.381 14***) 18.606
›› Regular Allowance*) 12 11.751 14***) 10.554
›› Tantiem 12 25.636 14***) 32.553

2. Other facilities in nature
a. Owned 12 2.630 14***) 4.515
b. Not owned 12 3.896 14***) 2.582
Total 68.810
Remark:
In accordance with Bank Indonesia regulations
*) Leave Allowance, Income Tax Benefit, Clothing Money, Holiday Allowance, and Full Premiums Compensation;
**) Director may have amenities in the form of transportation, communication.
***) Company’s Board of Directors consists of 8 (eight) people. There are 2 (two) members of the Board of Directors who do not serve but still get 2017 remuneration
in the form of tantiem; 3 (three) members of the Directors who finished their tenure since the closing of the Annual General Meeting of Shareholders on March 17,
2017, and 1 (one) Director who ended their tenure since the closing of Extraordinary GMS dated December 28, 2017.
Board of Directors, Board of Commissioners, and Employee who

receives Variable Remuneration for 1 (one) year and the nominal
rate are stated in the table below:
Board of Directors Board of Commissioners Employee*

2016No People Amount (in millions Rupiah) People Amount (in million Rupiah) People Amount (in million Rupiah)
Variable
12 25.636 15 9.579 9.380 297.008
Remuneration
(Total) Board of Directors Board of Commissioners Employee*
2017 People Amount (in millions Rupiah) People Amount (in million Rupiah) People Amount (in million Rupiah)
14 32.553 10 14.331 9.516 323.230
Remark
*) consists of employee who receives Production Service and Individual Incentive

Total Remuneration of Board of Directors and Board of Commissioners Per Person in 1 Year
2016 2017
Remuneration per Person in 1 year *) Number of Directors Number of Commissioners Number of Directors Number of Commissioners
> Rp2 billion 10 4 8 7
> Rp1 to Rp2 billion 0 6 4 0
> Rp500 million – Rp1 billion 2 1 1 2
< Rp500 million 0 4 0 1
Remark:
*) accepted in cash
Share Option Owned by Directors, Board of of new shares. The issuance of the new shares in the portfolio
Commissioners, Executive Officers, and Employees referred to as offered to the public through IPO (Initial Public
Offering), which included all shares including Management
Policy to grant shares option and Employee Stock Allocation/MESA and Management and
The Extraordinary General Meeting of Shareholders (EGMS) held Employee Stock Options Plan/MESOP.
on October 6, 2009 approved the issuance of new shares in the
portfolio of PT Bank Tabungan Negara (Persero) Tbk as much Requirements for Eligible Employees and/or Management;
as 30% (thirty percent) or as much as a total of 2,723,142,857 Participants of MESA and MESOP programs are employees
shares of total shares that had been issued and fully paid after registered as of September 30, 2009, and Board of Directors’
the issuance of new shares so that the ownership of the Republic members, Board of Commissioners’ members, Sharia
of Indonesia became 70% (seventy percent) or 6,354,000,000 Supervisory Board’s members, Secretary of the Board of
shares of the total shares issued and fully paid after the issuance Commissioners, and Audit Committee members.
Amount of shares option granted

Table: Share Ownership Based on Shares Option
MESOP Phase 1
Total Shares Option

Outstanding Option
No Remark / Name (Shares) Granted (Shares) Executed (Shares) Price (Rp) Term
1 Arie Coerniadi - - - - -
2 Kamaruddin Sjam - - - - -
3 Lucky Fathul Aziz Hadibrata - - - - -

Commissioner
4 Catherinawati Hadiman - - - - -
5 Fajar Harry Sampurno - - - - -
6 Sumiyati - - - - -
1 Maryono - - - - -
2 Irman Alvian Zahiruddin 3,991,000 1,354,000 1,354,000 855.00 Feb 2011- Ags 2014
3 Mansyur Syamsuri Nasution - - - - -
4 Board of Iman Nugroho Soeko - - - - -
5 Directors Sis Apik Wijayanto - - - - -
6 Adi Setianto - - - - -
7 Sulis Usdoko - 138,500 138,500 855.00 Feb 2011- Ags 2014
8 Oni Febriarto R. - 65,000 65,000 855.00 Feb 2011- Ags 2014
1 Executive Officers 7,430,600 6,925,500 6,925,500 855.00 Feb 2011- Ags 2014
2 Employee - 136,751,500 136,751,500 855.00 Feb 2011- Ags 2014
MESOP Phase 2
Total Shares
Option
Outstanding Option
No Remark / Name (Shares) Granted (Shares) Executed (Shares) Price (Rp) Term

Commissioner
1 Maryono - - - - -
2 Irman Alvian Zahiruddin 3,991,000 855.00 855.00 1,297.44 Feb 2011- Ags 2015
7 Sulis Usdoko - 109,000 109,000 1,297.44 Feb 2011- Ags 2015
8 Oni Febriarto R. - 51,000 51,000 1,297.44 Feb 2011- Ags 2015
1 Executive Officers 7,430,600 5,467,500 5,467,500 1,297.44 Feb 2011- Ags 2015
2 Employee - 102,442,500 102,442,500 1,297.44 Feb 2011- Ags 2015
MESOP Phase 3
Total Shares
Option
Outstanding Option Price
No Remark / Name (Shares) Granted (Shares) Executed (Shares) (Rp) Term

Commissioner
1 Maryono - - - - -
2 Irman Alvian Zahiruddin 3,991,000 828,500 828,500 1,098.36 Feb 2011- Ags 2016
7 Sulis Usdoko - 108,500 108,500 1,098.36 Feb 2011- Ags 2016
8 Oni Febriarto R. - 54,500 54,500 1,098.36 Feb 2011- Ags 2016
1 Executive Officers 7,430,600 5,566,500 5,566,500 1,098.36 Feb 2011- Ags 2016
2 Employee - 102,367,500 102,367,500 1,098.36 Feb 2011- Ags 2016
MESA and MESOP programs have been completed in the 2016 period. In 2017, there is no Share
Option program for Directors, Board of Commissioners, Executive Officers, and Employees.

Highest and Lowest Salary Ratio

The Company attempts to avoid too much gap related to remuneration. The ratio of highest and
lowest salary during 2017 is as follows:
Highest and Lowest Salary Ratio 2017
Description 2015 Ratio 2016 Ratio 2017 Ratio
Highest and lowest Employee salary 17,15 : 1 18,85 : 1 18,64 : 1
Highest and lowest Director salary 1,1 : 1 1,11 : 1 1,1 : 1
Highest and lowest Commissioner salary 1,1 : 1 1,11 : 1 1,1 : 1
Highest Director salary and Highest Employee salary 2:1 2,70 : 1 2,99 : 1
Number of Employees affected by layoffs and total severance paid;
Table: PPST 2017
Severance per Person in 1 (one) year PPST 2016 PPST 2017

Above Rp1 billion 0 1
Between Rp500 million – Rp1 billion 9 6
Below Rp500 million 7 3
Total Suspended Variable Remuneration
Suspended Variable Remuneration 2016 Suspended Variable Remuneration 2017

Cash None Cash None
Shares None Shares None
Total Suspended Variable Remuneration Paid in 1 year Company for Directors, Board of Commissioners’ candidate,
Remuneration policy on variable remuneration that is and/or prospective Employee for 1 (one) year
suspended and paid during 1 year has not been implemented
yet in respect of the Company’s new policy on Remuneration The Company does not have a Variable Remuneration (RBV) and
Governance Policy that is in accordance with POJK No. 45 of unconditional policy, as the policy on RBV is applied uniformly
2015 in late December 2016. without considering the length of the working period.
Quantitative Information of Other Remuneration The Company is committed to implementing a competitive,

There is no quantitative information on other remuneration fair, and balanced remuneration system, and always ensures
considering the remuneration policy for MRT is not implemented that no employee receives compensation under the terms set
yet and remuneration regulations in accordance with POJK 45 by the government. The Company reviews and updates the
of 2015 that was published in late December 2016. remuneration policies to be relevant to industry developments
and business strategies. The Company also adopts compliance
Number of recipients and total amount of variable aspects of the prevailing banking regulations regarding the
remuneration guaranteed unconditionally, granted by the gradual remuneration.
Organs and Committees Reporting

Directly to the Board of Commissioners
In order to assist the Board of Commissioners in carrying out the supervisory and advisory functions to the Directors, the Board
of Commissioners established the Supporting Organs that consist of the Board of Commissioners’ Secretary, Audit Committee,
Remuneration and Nomination Committee, and Risk Monitoring Committee.
01
The Secretary of the Board of Commissioners is appointed by the Board of Commissioners and
is responsible to the Company’s Board of Commissioners. The responsibilities of the Board
of Commissioners’ Secretary, among others, are to regulate administrative affairs, assist the
Board of Commissioners in performing the supervisory function of the Company’s effective
Board of performance, and ensure that the Board of Commissioners has carried out the GCG principles.
Commissioners’
Secretary In 2017, the Board of Commissioners’ Secretary changed. The Board of Commissioners’
Secretary was previously held by Mrs. Sandra Firmanisa. Currently, the position is held by Mrs.
Siti Fauziah by the Board of Directors’ Decree of PT Bank Tabungan Negara (Persero) Tbk No.
573/DIR/2017 dated October 1, 2017.
The Appointment of the Supervisory Board is based on educational background and work
experience which can be seen in the profile of the Board of Trustees’ Secretary as follows:
Siti Fauziah
Indonesian Citizen, Born in Kebumen, Age 44. Holds a Magister in Economic from UPI YAI,
Jakarta, 2016. Has been a Secretary of the Board of Commissioners since November 1, 2017.
Work Experience
1. Head of Governance and Risk Management of Trading Business, Warehouse,
Distribution, and Services Certification Subdivision (May 22, 2006 - October 6, 2010)
2. Head of Primary Industrial Business Ib2 Subdivision (October 7, 2010 - May 8, 2014)
3. Head of SOEs Executive Resources Training Subdivision (May 9, 2014 - December 21,
2014)
4. Head of Human Resources Services Subdivision (December 22, 2014 - July 6, 2017)
5. Head of Agro and Pharmaceutical Industry Iia.1 Subdivision (July 7, 2017 - present)
Profile of Training, Workshop, and Seminar:

the Board of Business strategy (2017); Supervisory Leadership (2017); Audit for non auditor (2017);
Commissioners’ Business Judgement Rule (2017).
Secretary

01
Organizational Structure of the Board of Commissioners’ Secretary
In the organizational structure, Secretary of the Board of Commissioners reports directly to
the Board of Commissioners and is assisted by 1 (one) Secretariat personnel of the Board of
Commissioners.
Board of
Commissioners’ Work Guidelines and Responsibilities of the Board of Commissioners’
Secretary Secretary
Work Guidelines
The Board of Commissioners’ Secretary is equipped with the Code of Conduct to support all
activities. The Code of Conduct refers to the Board Charter of the Board of Commissioners.
Work Guidelines of the Secretary of Board of Commissioners is reviewed at least once a year to
ensure the scope of guidelines is always in line with the needs or related prevailing regulations.
The Guidelines of the Secretary of the Board of Commissioners has been reviewed and was not
amended considering that it is still relevant to the Company’s current conditions.
Duties and Responsibilities of the Board of Commissioners

Duties and responsibilities of the Company’s Secretary of the Board of Commissioners, i.e.:
1. To organize administrative secretariat activities in the Board of Commissioners’
environment.
2. To prepare the minutes of Board of Commissioners’ Meeting, and the minutes of joint
meetings between the Board of Commissioners and the Board of Directors together with
the Corporate Secretary.
3. Delivered the original minutes of meetings of the Board of Commissioners to the Board of
Directors through the Corporate Secretary.
4. To compile the Work Program & Budget draft of the Board of Commissioners.
5. Compiled the Board of Commissioners’ reports template.
6. To ensure that Board of Commissioners comply with legislation and implement the GCG
principles.
7. Provided necessary information to the Board of Commissioners periodically and/or at any
time requested
8. Coordinated the member of Committee if needed in order to facilitate the duties of Board
of Commissioners.
9. Collected data or information relevant to the duties of Board of Commissioners.
10. Provided data/information necessary for Commissioner and the Committees in the Board
of Commissioners’ environment
11. Collected technical data from the Committees in the Board of Commissioners’ environment
for the Board of Commissioners’ needs.
12. To be a liaison in between Board of Commissioners with Shareholders, Directors, and other
related parties (stakeholder).
13. To carry out other duties given by the Board of Commissioners in order to carry out the
duties and function of Board of Commissioners.
Activities Report of the Board of Commissioners’ Secretary

The Board of Commissioners’ Secretary performs the role as the support of the Board of
Commissioners in carrying out the supervisory function and ensuring the Board of Commissioners
performs GCG practices in accordance with prevailing legislation.
Throughout 2017, the Board of Commissioners’ Secretary strives to optimize her role through
various activities such as:
1. Organized administrative secretariat activities in the Board of Commissioners’ environment,
i.e. incoming and outgoing administrative mails, as well as Company’s Minutes of Board of
Commissioners’ Meetings
2. Held the Board of Commissioners Joint Meeting with Directors or other related parties,
including in preparing the meeting invitation, meeting’s agenda, outcoming mails, based on
the meeting’s decision
01
3. Compiled the minutes of Board of Commissioners Meeting, and the minutes of joint
meetings between the Board of Commissioners and the Board of Directors together with
the Corporate Secretary
4. Delivered the original minutes of meetings of the Board of Commissioners to the Board of
Board of Directors through the Corporate Secretary
Commissioners’ 5. Compiled the Board of Commissioners’ reports template.
Secretary 6. Provided necessary information to the Board of Commissioners periodically and/or at any
time requested
7. Coordinated the member of Committee if needed in order to facilitate the duties of Board
of Commissioners.
8. Collected data or information relevant to the duties of Board of Commissioners.
9. Provided data/information necessary for Commissioner and the Committees in the Board
of Commissioners’ environment
10. Collected technical data from the Committees in the Board of Commissioners’ environment
for the Board of Commissioners’ needs.
Training of the Board of Commissioners’ Secretary

The Company always supports the Secretary of the Board of Commissioners to update knowledge
through training activities and skills development.
Throughout 2017, the Secretary of the Board of Commissioners participates in training and
skills development as follows:
Training & Development Program Date
Business strategy 2017
Supervisory Leadership 2017
Audit for non auditor 2017
Business Judgement Rule 2017
Committees In line with a copy of POJK No. 55/POJK.03/2016 on the Implementation of Good Corporate
Governance for Commercial Bank Article 34, in order to support the effectiveness of performance
Reporting Directly of duties and responsibilities, the Board of Commissioners has established Audit Committee, Risk
to the Board of Monitoring Committee, and Remuneration and Nomination Committee, described as follows:
Commissioners
02
To assist the Board of Commissioners in fulfilling its responsibilities as the Company’s supervisor
primarily concerning the quality and transparency of the financial statements submitted by
Management, and identifying matters that require the attention of the Board of Commissioners
as well as several other duties, the Board of Commissioners established Audit Committee.
Audit
Committee Composition of the Audit Committee
The Company’s Audit Committee consists of 7 (seven) members, with 1 (one) Independent
Commissioner as the Chairman, 1 (one) member of the Independent Commissioner, 2 (two)
members of the Commissioners, and 3 (three) members of the Independent Party.

02
In 2017, the composition of the Company’s Audit Committee changed, with the appointment
and dismissal of the Audit Committee Members. The further explanation is as follows:
1. Appointment of Mr. Garuda Wiko as the Member of Audit Committee, based on the
Directors’ Decree No. 382/DIR/2017.
Audit 2. Dismissal of Mrs. Sumiyati, Mr. Maurin Sitorus, and Mr. Waldy Gutama, and the Appointment
Committee of Mr. Lucky Fathul Aziz Hadibrata as the Member of Audit Committee, based on the
Directors’ Decree No. 648/DIR/2017.
Thus, the Composition of Company’s Audit Committee per December 31, 2017, is as follows:
Table: Composition of Audit

Committee Per December 31,
Nama Position Appointment Basis Term of Office
2017
Kamaruddin Sjam Chairman/ Board of Directors’ Decree of PT Bank September 9, 2015 -
Independent Tabungan Negara (Persero) Tbk No. 507/ July 2, 2018
Commissioner DIR/2015 dated September 9, 2016.
I Wayan Agus Member/Independent Board of Directors’ Decree of PT Bank Tabungan April 25, 2016 - April
Mertayasa Commissioner Negara (Persero) Tbk No. 161/DIR/2016 dated 24, 2019
April 25, 2016
Lucky Fathul Aziz Member/Independent Board of Directors’ Decree of PT Bank Tabungan November 11, 2017 -
Hadibrata Commissioner Negara (Persero) Tbk No. 648/DIR/2016 dated March 23, 2020
November 21, 2017
Garuda Wiko Member/Independent Board of Directors’ Decree of PT Bank Tabungan August 15, 2017 -
Commissioner Negara (Persero) Tbk No. 520/DIR/2017 dated August 14, 2020
September 26, 2017.
Sondang Gayatri Member/Independent No.390/DIR/2016 dated September 15, 2016, September 26, 2013 -
Party on the Extension of Tenure of Mr. Waldy September 24, 2016
Gutama and Mrs. Sondang Gayatri as Members September 25, 2016 -
of Audit Committee of PT Bank Tabungan September 25, 2018
Negara (Persero) Tbk.
Rachmat Member/Independent Board of Directors’ Decree of PT Bank Tabungan November 8, 2016 -

Supratman Party Negara (Persero) No. 474/DIR/2016 dated November 7, 2019
November 1, 2016
Throughout 2017, Mr. Kamaruddin Sjam is the Chairman of Audit Committee. He is the Company’s Independent
Commissioner, so it complies with the prevailing legislation.
Appointment and Dismissal

The Board of Commissioners has full authority to appoint and dismiss members of the Audit
Committee, since the structure of the Audit Committee is below the coordination line of the
Board of Commissioners. Generally, the candidates of Audit Committee may be appointed if the
relevant party has met the criteria set by the Company.
The appointment of the Company’s Audit Committee refers to the Joint Decree of Directors
and Board of Commissioners No. 02/DEKOM-BTN/2013 dated December 18, 2013, on Audit
Committee Charter Article 7 about the Audit Committee Member Requirements paragraph
1, which stated “Have integrity, competence, knowledge, and experience in the supervising/
auditing field, and can communicate properly”, with explanation as follows:
Table: Audit Committee Member Profile

(Name, Education, Work Experience, and Expertise)
Kamaruddin Sjam
Chairman of Audit Committee
The education background, work experience, and training expertise can be referred to in the
Board of Commissioners’ Profiles on this Annual Report.
Expertise:
Audit & Finance.

Member
The education background, work experience, and training can be referred to in the Board of
Commissioners’ Profiles on this Annual Report.
Expertise:
Finance & Banking.

Member
Expertise:
Finance, Macro Economy, & Management Strategy
Garuda Wiko
Member
Expertise
Law, Economics

Sondang Gayatri
Member
Indonesian citizen, born in Tarutung, age 59. Graduate with Bachelor of Economic
Management in 1983.
Expertise
Finance & Banking
Work Experience
Appointed as the member of Audit Committee since September 26, 2013, to September 26,
2018. Then it is extended to 2018. Previously she was active in BNI from 1982 until March
2013. Her last position was as Head of Regional.
Training
Training attended, include: IFC Corporate Governance East Asia and The Pacific Audit
Committee Master Program in September 2017; Risk Management Competence Certification
Level IV in 2012; Risk Management Certificate Level 4 and 4th International (CWMA and IBI)
in 2011
Rachmat Supratman
Member
Indonesian citizen, born in Surabaya, Age 61, Graduated from Faculty of Law, Airlangga
University in 1981, and Education from Faculty of Economics Boston University in 1987.
Expertise:
Finance & Banking
Work Experience
Previously served as Chairman of Internal Audit Team Bank Indonesia (2008-2012), Chairman
of Internal Audit Research and Development Team Bank Indonesia (2004-2008), President
of Monetary Statistics Chart Bank Indonesia (2002-2004).
Training
Asian Conference On Internal Audit 2007 in Beijing, China; International Statistics Conference
in 2008 in Malaysia; Money and Bank in 2004, Washington, USA.
02
Member of the Audit Committee shall resign or be dismissed by the Board of Commissioners
based on the Audit Committee Charter in Article 6 that stated Chairman and Members of the
Committee are appointed and dismissed by the Board of Commissioners.
Audit
Independence of Audit Committee Members
Committee In carrying out its duties, the Audit Committee works professionally and independently. The
Chairman of Audit Committee is an Independent Commissioner. There are 3 (three) members of
Independent Commissioners and 2 (two) professional members of Independent Party.
The Audit Committee Members consist of 100% Independent Commissioners and Independent Party,
which is the requirement of independence, in line with the regulation in POJK No. 55/POJK.03/2016 on
the Governance Implementation for Bank Article 41 paragraph (4), that stated the Audit Committee
Members must at least consist of 51% Independent Commissioners and Independent Party.
The independence of members of Audit Committee can be seen in the table with aspects as follows.
Statement of Independence of the Member of Audit Committee
Kamaruddin I Wayan Lucky Fathul Garuda Sondang Rachmat

Independence Aspect Sjam Agus Mertayasa Aziz Hadibrata Wiko Gayatri Supratman
Does not have a financial relationship
with the Board of Commissioners and √ √ √ √ √ √
Directors
Does not have a management relationship

with the company, subsidiaries, or √ √ √ √ √ √
affiliated companies
Does not have any ownership relation to

√ √ √ √ √ √
the company
Does not have any familial relationship

with fellow Board of Commissioners,
√ √ √ √ √ √
Directors, and/or Members of the Audit
Committee
All Members of Company’s Audit Committee from independent parties do not have any financial, management, share ownership, and/or familial relationship
with fellow Board of Commissioners, Directors, and/or Controlling Shareholders, or any other relationship with the Bank that may affect his/her ability to
act independently.
02 Audit Committee Concurrent Position

The Audit Committee Member shall not hold any concurrent positions, as stated in the Joint Decree
of the Directors and Board of Commissioners No. 02/DEKOM-BTN/2013 dated December 18,
Audit 2013, on the Audit Committee Charter of PT Bank Tabungan Negara (Persero) Tbk. On Article 7,
Audit Committee Membership Requirement paragraphs 10, 11, and 12, i.e.:
Committee
1. Paragraph 10 stated ‘the member shall not be an employee in the Public Accountants
Firm, Legal Consultant Office, Public Appraiser Service Office, or any other party providing
assurance, non-assurance, appraisers, and/or other consulting services to the Bank within
the last 6 (six) months’
2. Paragraph 11 stated ‘the member shall not be a person who has authorities and
responsibilities to plan, lead, control, or supervise the Bank’s activities within the last 6
(six) months with the exception of Independent Commissioners’
3. Paragraph 12 stated ‘the member shall not have shares directly and indirectly in the Bank’
Audit Committee Concurrent

Concurrent Positions in the Concurrent Position in other
Position
Name Position Company Company/Institution
Kamaruddin Sjam Chairman 1. Independent Commissioner None
2. Member of Remuneration and
I Wayan Agus Member 1. President Commissioner/ None

Mertayasa Independent Commissioner
President of Nomination and
Remuneration Committee
2. Member of Risk Monitoring
Committee
Lucky Fathul Aziz Member 1. Independent Commissioner None

Hadibrata 2. Member of Remuneration and
Garuda Wiko Member 1. Independent Commissioner Lecturer at Tanjungpura University

2. Member of Risk Monitoring
Committee
Sondang Member None None

Gayatri
Rachmat Member None None

Supratman
As of December 31, 2017, the Chairman of the Committee concurrent position is in accordance with the rules,
that is, an Independent Commissioner does not serve in the Committee for more than 2 (two) Committee in
the same company.

02
Audit Committee’s Charter, Duties, and Responsibilities
Audit Committee Charter
The Audit Committee Charter was formulated based on the prevailing regulations and
Audit legislation. It is reviewed periodically and has been ratified by Board of Commissioners’ Decree
No. 02/DEKOM-BTN/2016 and Board of Directors’ Decree No. SKB-02/DIR-BTN/2016 on the
Committee Amendment to the Board of Commissioners’ Joint Decree No. 02/DEKOM-BTN/2013 and Board
of Directors’ Joint Decree No. SKB-02/DIR-BTN/2013.
Scope of Audit Committee Charter

1. General Provisions; 2. Audit Committee’s Meeting;
3. Functions and objectives; 4. Committee’s Report;
5. Audit Committee’s duties, responsibilities, and authorities; 6. Tenure;
7. Committee’s obligation; 8. Professionalism Improvement of Audit Committee

Members and Supporting Personnel Utilization;
9. Access and Confidentiality of Information; 10. Committee’s Budget;
11. Structure, Appointment, and Dismissal of the Committee; 12. Remuneration of Audit Committee Members;
13. Requirement of Audit Committee Members; 14. Closing.
15. Guidelines and Work Procedures of the Committee;
The Audit Committee Charter can be accessed on the Company’s website (www.btn.co.id) on the Investor Relations
menu on Governance Policy.
Audit Committee’s Duties and Responsibilities

In line with the Audit Committee Charter, the duties and responsibilities of the Audit Committee
are as follow:
1. Assisting the Board of Commissioners to ensure the effectiveness of the internal control
system and the effectiveness of implementation of tasks of external and internal auditors.
2. Assessing the activities and the results of audits conducted by the Internal Audit Unit and
external auditors.
3. Providing recommendations for improvement of the management control system and its
implementation.
4. Ensuring there have been satisfactory evaluation procedures for all information issued by
the Company.
5. Identifying matters that require the attention and duties of the Board of Commissioners.
6. Reviewing the financial information to be released by the Company to the public and/or
authorities including financial statements, projections, and other reports related to the
financial information of the Company.
7. Reviewing adherence to laws and regulations related to the activities of the Company.
8. Providing independent opinion in the event of disagreements between management and
accountants over the services rendered.
9. Providing recommendations to the Board of Commissioners on the appointment,
reappointment, and discharge of Public Accountant based on independence, scope of the
assignment, and audit fee.
10. Evaluating the implementation of financial report audit services by the KAP
11. Reviewing the implementation of inspections by the internal auditor and supervising the
implementation of the follow-up by the Board of Directors on internal auditor findings.
12. Reviewing complaints related to accounting processes and financial reports by the
Company.
13. Reviewing and providing advice to the Board of Commissioners related to potential conflicts
of interest of the Company.
14. Maintaining confidentiality of documents, data, and information of the Company.
02
Audit Committee’s Authority
1. The Committee is authorized to access the documents, data, and information about the
Company’s employees, funds, assets, and the Company’s resources as required.
2. The Committee is authorized to communicate directly with the Board of Directors and
Audit employees including those who perform the functions of internal audit, risk management,
Committee and accounting-related duties and responsibilities of the committee.
3. The Committee is authorized to engage independent parties outside the Committee
members, if needed, to assist in carrying out their duties.
4. The Committee is authorized to perform other powers granted by the Board of
Commissioners.
Audit Committee Activities and Performance Report

In order to clarify and be more effective in carrying out its duties and responsibilities, the Audit
Committee always prepares the annual Audit Committee Work Plan. The formulation of Audit
Committee Work Plan is based on the Audit Committee Charter and the input from Board of
Commissioners.
Audit Committee’s 2017 Work Program is:

1. Report on the Activities of the Audit Committee in evaluating the effectiveness of the
Bank’s internal control
2. Audit Committee’s Meeting
3. Audit Committee’s Training and Competence Development Program
4. Review of follow-up findings of internal and external audit
5. Submit recommendation of appointment of Public Accountants Firm that will perform
the audit services of the company’s financial report to the Board of Commissioners, to be
subsequently submitted to the GMS for approval.
6. Evaluate the implementation of KAP’s services related to the Company’s financial report
audit
Audit Committee Work Program Realization

Audit Committee Activity Report
The Audit Committee is required to annually submit a Report to the Board of Commissioners
for each task, accompanied by recommendations, if necessary.
In 2017, Audit Committee carried out various activities in order to fulfill their duties and
responsibilities, as follows:
1. Monitor and evaluate the Internal Audit Task Force implementation:
›› Discuss and monitor the realization of Annual Audit Plan 2017.
›› Discuss the findings of IAD audit
›› Attend the exit meeting of audit
2. Monitor and evaluate the compliance of the Public Accountants Firm audit with the
prevailing audit standards
3. Research and review the Bank’s published financial report compliance with the prevailing
financial report standards.
4. Monitor the implementation and completion of the Bank’s commitment to the
recommendations of IAD audit and External Auditor’s (Bank Indonesia, OJK, KAP, BPK RI)
findings.
5. Provide inputs on the strategic issues in the framework of giving advice by the Board of
Commissioners.
6. Provide recommendation to the Board of Commissioners on the appointment of Public
Accountants Firm to audit the Financial Report 2017, which then shall be submitted to the
General Meeting of Shareholders.
7. Conduct other duties from Board of Commissioners in line with the Committee’s duties
8. Attend training and education to improve the competence of the Committee’s members.

02
Audit Committee’s Meeting
In accordance with the Audit Committee Charter and the Audit Committee Work Plan, the Audit
Committee’s meeting shall be conducted at least equal to the minimum requirement of the
Board of Commissioners’ meeting, chaired by the Chairman of the Audit Committee. Decisions
Audit in the Audit Committee Meeting are done through deliberation.
Committee
Audit Committee Meeting Frequency and Attendance
In 2017, the Audit Committee has conducted a total of 11 (eleven) meetings, and 8 (eight)
of them were attended by at least 51% (fifty-one percent) of the total members, including
Independent Commissioners and Independent Parties, presented by the term of service of the
Audit Committee’s member, as follows:
%
No. Name Position Meetings Attendance Attendance
1 Kamaruddin Sjam Chairman 8 5 62.5
2 I Wayan Agus Mertayasa Member 8 7 87.5
3 Lucky Fathul Aziz Hadibrata Member 1 1 100
4 Garuda Wiko Member 4 3 75
5 Sondang Gayatri Member 8 7 87.5
6 Rachmat Supratman Member 8 7 87.5
Decisions made at the Audit Committee meeting has been noted and documented in the Minutes
of Meeting of the Audit Committee. The Minutes of Meeting is signed by the head of the meeting
and distributed to every member of Audit Committee. The dissenting opinion in the meeting shall
be recorded in the minutes of meeting as well as the reasons for dissenting opinion.
Audit Committee’s Training and Competence Development Program

The Company has provided budget from the Company’s Board of Commissioners of to improve
the effectiveness of the Audit Committee’s function to assist the supervisory and advisory tasks
of the Board of Commissioners by having the Audit Committee continuously conducts training
and development programs as a means of updating the knowledge and understanding of current
issues concerning the duties and programs undertaken.
Throughout 2017, the training and competence development attended by the Audit Committee
Members are as follow:
Name Position Date Material

Kamaruddin Chairman Thursday, February 16, Cyber Security and Integrating Operational Risk With
Sjam 2017 the Mitigation Factors and Digital Payment Seminar: A
New Era In the Way We Do Payment
April 22-30, 2017 International Program “Risk Culture & Leadership ERM
Master Class & Benchmarking In Europe”
September 16-23, 2017 Integration of GRC
Lucky Fathul Member Thursday, February 16, Cyber Security and Integrating Operational Risk With
Aziz Hadibrata 2017 the Mitigation Factors and Digital Payment Seminar: A
New Era In the Way We Do Payment
March 23-24, 2017 BARa Risk Forum Seminar "Refocusing On Credit

October 17-19, 2017 Internal Capital Adequacy Assessment Process (ICAAP)
02 Name
I Wayan Agus
Position
Member
Date
Thursday, February 16,
Material
Cyber Security and Integrating Operational Risk With the
Audit Mertayasa 2017 Mitigation Factors and Digital Payment Seminar: A New
Committee Friday, February 10, 2017 Expand Leadership Program for BOD/BOC
May 18-19, 2017 Deeper Understanding of IFRS 9 & BASEL IV and

July 22-29, 2017 IIA CONFERENCE 2017
September 20-26, 2017 Living Wills, Planning for Bank Recovery and Resolution
Garuda Wiko Member Saturday, March 25, 2017 Risk Management Competence Certification Level 2 for
Commissioner
September 20-26, 2017 Living Wills, Planning for Bank Recovery and Resolution
September 2017 Corporate Governance East Asia and The Pacific Audit
Committee Master Program
Sondang Member September 2017 Corporate Governance East Asia and The Pacific Audit
Gayatri Commitee Master Program
Audit Committee’s Performance Assessment

The performance of Company’s Audit Committee is evaluated by the Company’s Board
of Commissioners every 3 (three) months. The assessment is based on the realization and
completion of work program stipulated in the Audit Committee Work Plan and Budget. The
assessment will be reported to the Board of Commissioners in the Audit Committee report.
The assessment result became the considerations for Board of Commissioners to reappoint
and/or dismiss Audit Committee Members for the next term of office.
Audit Committee’s Meeting Plan 2018

In line with the Audit Committee Work Plan 2018, the Audit Committee has held at least 12
meetings in the second week of every month. The main agenda is the monthly evaluation of
the realization of Annual Audit Plan 2018 and the Evaluation of Public Accountants Firm Audit
Services on the Financial Report of the Fiscal Year, which is scheduled in May 2018.
03
Risk Monitoring Committee is an organ established by the Board of Commissioners and is
responsible to the Board of Commissioners in supporting the effectiveness of risk monitoring
duties and responsibilities, in line with the Regulation of Financial Services on Implementation
of Good Corporate Governance for Commercial Banks, and State Ministry of SOEs Regulation
Risk Monitoring on the SOEs Supporting Organ of Board of Commissioners/Supervisory Agency.
Committee
Composition of the Risk Monitoring Committee
Throughout 2017, the composition of the Company’s Risk Monitoring Committee changed,
with the appointment and dismissal of the Risk Monitoring Committee Members. The further
explanation is as follows:
1. Mr. Lucky Fathul Aziz Hadibrata from March 26, 2017, until 25 September 2017, conducted a
cooling off in the framework of transfer of position as Commissioner to Independent Commissioner.
Since March 26, 2017, he did not serve as a Member of Risk Monitoring Committee.
2. On August 15, 2017, the Board of Commissioners appointed Mr. Garuda Wiko (Independent
Commissioner) and Mr. Iman Sugema (Commissioner) as the members of Risk Monitoring
Committee. It is stipulated in the Directors’ Decree No. 404/DIR/2017.

3. On October 31, 2017, the Board of Commissioners appointed Mrs. Sumiyati (Commissioner) as a
member of Risk Monitoring Committee. It is stipulated in the Directors’ Decree No. 649/DIR/2017.
Thus, the Composition of Company’s Risk Monitoring Committee is as follows:
Table: Composition of
Risk Monitoring Committee
Name Position Appointment Basis Term of Office
Per December 31, 2017
Arie Coerniadi Chairman/ Directors Decree of PT. Bank Tabungan Negara July 3, 2015 - July
Independent (Persero) Tbk No. 400/DIR/2015 dated July 2, 2, 2015
Commissioner 2015, on Composition Change in Risk Monitoring
Committee PT Bank Tabungan Negara (Persero) Tbk.
I Wayan Agus Member/Independent Directors Decree of PT. Bank Tabungan Negara April 25, 2016 -
Mertayasa Commissioner (Persero) Tbk No. 162/DIR/2015 dated April 25, April 24, 2019
2015, on Composition Change in Risk Monitoring
Sumiyati Member/ Directors’ Decree of PT Bank Tabungan Negara October 31, 2017
Commissioner (Persero) Tbk No. 649/DIR/2017 dated November - April 24, 2019
21, 2017, on Composition Change in Risk Monitoring
Committee of PT Bank Tabungan Negara (Persero) Tbk.
Garuda Wiko Member/Independent Directors’ Decree of PT. Bank Tabungan Negara August 15, 2017
Commissioner (Persero) Tbk No. 404/DIR/2017 dated August 24, - August 14,
2017, on Composition Change in Risk Monitoring 2020
Iman Sugema Member/ Directors’ Decree of PT. Bank Tabungan Negara August 15, 2017
Commissioner (Persero) Tbk No. 649/DIR/2017 dated August 24, - August 14,
2017, on Composition Change in Risk Monitoring 2020
Heru Ratna Member/Independent Directors Decree of PT. Bank Tabungan Negara December 1,
Azimada Party (Persero) Tbk No. 517/DIR/2016 dated November 2016 - November
30, 2016, on Composition Change in Risk Monitoring 30, 2019
Yuki Noviani Kohar Member/Independent Directors’ Decree of PT. Bank Tabungan Negara November 8,
Party (Persero) Tbk No. 475/DIR/2016 dated November 2016 - November
1, 2016, on Composition Change in Risk Monitoring 7, 2019
In 2017, Mr. Arie Coerniadi (Independent Commissioner) is the Chairman of Risk Monitoring Committee.
This complies with the prevailing legislation.
03 Appointment and Dismissal

The Board of Commissioners has full authority to appoint and dismiss members of the Risk
Monitoring Committee, since the structure of the Risk Monitoring Committee is below the
Risk Monitoring coordination line of the Board of Commissioners. Generally, the candidates of Risk Monitoring
Committee Committee may be appointed if the relevant party has met the criteria set by the Company.
The structure and membership of the Risk Monitoring Committee is established based on the
decisions of Board of Commissioners’ Meeting, and formulated in the Board of Commissioners’
Letter No. 147/KOM/BTN/X/2017 dated October 31, 2017, on the Change of Composition of
Members of the Committee, and is stipulated in the Directors’ Decree No. 649/DIR/2017 dated
November 21, 2017 on Amendment to Composition of Risk Monitoring Committee of PT Bank
Tabungan Negara (Persero) Tbk.
The appointment of the Company’s Risk Monitoring Committee has fulfilled the requirements set
forth in the Risk Monitoring Committee Charter, i.e. “Have expertise in finance, risk management,
Macroeconomy, Management Strategy, Banking, and Loan”, as described below:
Table: Profile of Members of Risk Monitoring Committee

(Name, Education, Work Experience, and Expertise)
Arie Coerniadi
Chairman
Expertise
Finance & Teknology Information

Member
Expertise
Finance and Banking
Sumiyati
Member
Expertise
Public Financial Audit and Human Resources Development
Garuda Wiko
Member
Expertise
Law

Iman Sugema
Member
Expertise
Economic Finance
Heru Ratna Azimada

Member
Indonesian Citizen, born in Magelang, age 67. Holds a Bachelor from Gadjah Mada University
in Economic Faculty, Company Major.
Expertise
Banking, Risk Management
Work Experience
Served as an EVP/Director Expert Staff in Human Resources, in PT Bank Mandiri (Persero)
Tbk (2003); Executive Vice President Training Group in PT Bank Mandiri (Persero) Tbk (2001-
2003); EVP Coordinator (SEVP) Corporate, Government, Commercial and Restructuring
Section of PT Bank Mandiri (Persero) Tbk (2000-2001); Executive Vice President Corporate
Banking of PT Bank Mandiri (Persero) Tbk (1999); Director of PT Bank Ekspor Impor Indonesia
(Persero) (1998-1999).
Training
Risk Modelling in Financial Institution Workshop, held by Indonesian Economist Association
in September 3017, Senior Executives Forum IV 2002 in Australia; Asia Pacific Economic
Summit (2000) in Australia; Asian Banker Summit (2000) in Singapore; Asian Pacific Non
Performing Loan (2000) in South Korea; The Asian Banker Summit (2000) in Australia;
Treasury Management (1996) in Singapore; Asset Liability Management (1996) in Singapore.
Yuki Noviani Kohar

Member
Indonesian Citizen, born in Bandung, age 55. Graduated from Economic Faculty, Accountancy
Major, Padjajaran University in 1986.
Expertise
Banking, Loan
Work Experience
Served as Vice President - Deputy GM Commercial Loan Division PT Bank BNI (Persero)
Tbk (2010-2015); Vice President, Group Head of Commercial Business Development Bank
Niaga (2007-2009); Special Assignment as Commercial Banking Representative of CIMB
Niaga Merger Team (2007-2009)
Training
Risk Management Certification Training in Jakarta, 2014; Account Management & Relationship
by Michigan University Ross Scholl of Business in Hong Kong, 2005; Financial for senior
Management London Business School in London, UK, 2015.
03
Member of Risk Monitoring Committee may resign or be dismissed based on Article 6 of the
Risk Monitoring Committee Charter, which stated that the Chairman and Member of Committee
are appointed and dismissed by Board of Commissioners.
Risk Monitoring Independence of Risk Monitoring Committee Members

Committee In carrying out their duties and responsibilities, every member of Risk Monitoring Committee
has to be characteristically independent, objective, and professional, both in appearance and
in the act.
There are 51% or more of Risk Monitoring Committee Members that concurrently are Independent
Commissioners. This number fulfilled the independence requirements in accordance with the
provisions in POJK No. 55/POJK.03/2016 on the Implementation of Good Corporate Governance
Statement of Independence for Bank Article 42 paragraph 4.
of Risk Monitoring Committee
Members The independence of each Risk Monitoring Committee’s member is reflected in the following table.
I Wayan
Arie Agus Garuda Iman Heru Ratna Yuki Noviani
Independence Aspect Coerniadi Mertayasa Sumiyati Wiko Sugema Azimada Kohar
Does not have a financial relationship

with the Board of Commissioners √ √ √ √ √ √ √
and Directors
Does not have a management √ √ √ √ √ √ √

relationship in the company,
subsidiaries, or affiliated companies.
Does not have ownership relation in √ √ √ √ √ √ √

the company
Does not have any familial relationship

with the Board of Commissioners,
Board of Directors, and/or fellow √ √ √ √ √ √ √
members of the Risk Monitoring
Committee

03
The Risk Monitoring Committee Members shall not hold any concurrent positions, as stated in
the Joint Decree of the Directors and Board of Commissioners No. 02/DEKOM-BTN/2013 dated
December 18, 2013, on the Risk Monitoring Committee Charter of PT Bank Tabungan Negara
Risk Monitoring (Persero) Tbk. On Article 7, Risk Monitoring Committee Membership Requirement paragraphs
Committee 9 and 10, i.e.:
1. Paragraph 9 stated ‘the member shall not be a person who has authorities and
responsibilities to plan, lead, control, or supervise the Bank’s activities within the last 6
(six) months before being appointed by the Board of Commissioners’
2. Paragraph 10 stated ‘the member shall not have shares directly and indirectly in the Bank.
In the event that a member of the Committee obtains shares due to a legal event, then
within 6 (six) months after obtaining such shares, he/she shall transfer it to another party’
Table: Risk Monitoring

Concurrent Positions in the Concurrent Position in other
Committee Concurrent
No Name Position Company Company/Institution
Position
1 Arie Coerniadi Chairman 1. Independent Commissioner -
2. Member of Remuneration and
2 I Wayan Agus Member 1. President Commissioner/ -

Mertayasa Independent Commissioner
2. President of Nomination and
Remuneration Committee
3. Audit Committee Member
3 Sumiyati Member Commissioner Inspectorate General of the

Ministry of Finance
4 Garuda Wiko Member 1. Independent Commissioner Lecturer at Tanjungpura University

2. Member of Audit Committee
5 Iman Sugema Member Commissioner Lecturer at Bogor Agricultural

University (IPB)
6 Heru Ratna Member - -

Azimada
7 Yuki Noviani Member - -

Kohar
As of December 31, 2017, the Chairman of the Committee concurrent position is in accordance with the rules, that is, an
Independent Commissioner does not serve in the Committee for more than 2 (two) Committees in the same company.
Scope of Risk Monitoring Committee Charter

Work Guidelines of Risk Monitoring Committee refers to the Risk Monitoring Committee Charter.
The Risk Monitoring Committee Charter is formulated based on the prevailing regulations and
legislation and is periodically reviewed and has been ratified by the Board of Commissioners’
Joint Decree No. SKB–01/DEKOM-BTN/XII/2013 and Directors’ Joint Decree No. SKB-01/DIR-
BTN/XII/2013 on Company’s Risk Monitoring Committee Charter, with the contents as follow:
Scope of Risk Monitoring Committee Charter

1. Functions and objectives; 2. Committee’ Duties, Authorities, and Responsibilities
3. Committee’s Responsibilities; 4. Committee’ Obligations
5. Access and Confidentiality of Information; 6. Structure;
7. Appointment and Dismissal of the Committee; 8. Requirement of Committee Members;
9. Guidelines and Work Procedures of the Committee; 10. Committee’s Meetings;
11. Committee’s Report; 12. Tenure;
13. Professionalism Improvement of Risk Monitoring 14. Committee’s Budget;

Committee Members and Supporting Personnel Utilization;
15. Remuneration of Risk Monitoring Committee Members
and Closing.
The Risk Monitoring Committee Charter can be accessed on the Company’s website (www.btn.co.id) on the Investor
Relations menu on Governance Policy.
03
Risk Monitoring Committee Duties and Responsibilities
Based on POJK No. 55/POJK.03/2016 dated December 7, 2016, on the Governance Implementation
for Commercial Banks Article 48, the Risk Monitoring Committee must conduct at least:
1. evaluation of the conformity between the Bank’s risk management policy and the Bank’s
Risk Monitoring policy implementation; and
Committee 2. monitoring and evaluation of implementation of duties of the risk management
committee and risk management task force, to provide recommendations to the Board of
Commissioners
In line with the Risk Monitoring Committee Charter, the Risk Monitoring Committee duties and
responsibilities are:
1. To collect data and information as well as to evaluate the Bank’s risk management policy
which should consist of at least: 1)LOAN RISK, 2)MARKET RISK,3) LIQUIDITY RISK, 4)
LEGAL RISK, 5)REPUTATION RISK,6) STRATEGIC RISK, 7)COMPLIANCE RISK
2. To perform evaluation of the conformity between the Bank’s risk management policy and
the implementation of the policy.
3. To monitor and evaluate the Risk Management Committee’s duties and Risk Management Unit.
4. To encourage the Company’s risk management function.
5. To report to the Board of Commissioners in terms of likelihood of the Bank’s risk as well as
providing alternative solutions.
6. To conduct risk monitoring in work unit related to the risk-based decision making and
cooperate with Risk Management Division.
7. To invite management and other internal parties to attend the Committee’s meeting
if necessary.
8. To conduct other duties from Board of Commissioners in line with the risk management
duties.
Achievement Report of Risk Monitoring Committee

In order to clarify and be more effective in carrying out its duties and responsibilities, the Risk
Monitoring Committee annually always prepares the Risk Management Committee Work Plan which
is based on the Risk Monitoring Committee Charter and inputs from the Board of Commissioners.
Risk Monitoring Committee Work Plan in 2017 is:

1. Risk Monitoring Committee Activities Report
2. Risk Monitoring Committee’s Meetings
3. Risk Monitoring Committee’s Training and Competence Development Program
Risk Monitoring Committee Work Program Realization

Throughout 2017, the Risk Monitoring Committee has performed its duties to support the
supervisory function of the Board of Commissioner, particularly regarding risk management.
The Committee evaluates the policies and implementation of risk management to provide
recommendations to the Board of Commissioners. The Committee also monitors and evaluates
the Risk Management Committee and Risk Management Task Force duties, as follows:
a. As an evaluation material for the risk management policy implementation, KOPAR in
coordination with the Risk Management Task Force (RMD) conducts regular discussions
and evaluations on quarterly risk profile reports
b. Monitor and evaluate the performance of the Risk Management Committee’s tasks, KOPAR
obtains information and evaluates the Risk Management Committee’s duties through the
Risk Management Committee’s minutes of meeting, i.e.:
›› Back Testing Method Directive
›› Loan consultation
›› Discussion of Risk Profile Report Quarter I 2017
c. Evaluate the suitability of Bank’s risk management policies, particularly in the field of loan,
with the implementation of the policy by monitoring the loan previously consulted to the
Board of Commissioners.

03
d. Encourage functional empowerment at Bank’s risk management function by conducting
discussions with the Credit Risk Division related to their duties in credit risk management.
e. Report to the Board of Commissioners in the event of possible risks of the Bank and
proposing alternative solutions by providing input in every internal meeting of the Board of
Risk Monitoring
Commissioners, especially related to performance reviews and discussions concerning the
Committee actions boundaries and criteria of the Board of Directors that do not require the approval of
the Board of Commissioners.
Risk Monitoring Committee’s Meetings

In line with Risk Monitoring Committee Charter, Risk Monitoring Committee’s Meetings are
conducted at least 4 (four) times a year, and shall be led by Chairman of Risk Monitoring
Committee as stipulated in the Risk Monitoring Committee Charter. Risk Monitoring Committee
Meeting Decision is done by deliberation.
Risk Monitoring Committee Meeting Decision is done by deliberation. In the event that deliberation
is not achieved, then the decision shall be made based on the majority vote. If there is equal
number of votes on those who agree and those who don’t, the proposal is considered rejected.
Throughout 2017, the Risk Monitoring Committee has held 10 (ten) meetings. The frequency
of attendance is as follows:
*) has served as a member of the
Risk Monitoring Committee since
No. Name Position Meetings Attendance % Attendance
December 31, 2017, in the period of
31 October to 31 December 2017, 1 Arie Coerniadi Chairman 10 7 70%
the Risk Monitoring Committee shall
2 I Wayan Agus Mertayasa Member 10 8 80%
only hold 1 (one) meeting and the
concerned party could not attend 3 Garuda Wiko Member 4 4 100%
due to the task implementation
4 Sumiyati*) Member 1 0 0%
from the Ministry of Finance.
5 Iman Sugema Member 4 4 100%
6 Heru Ratna Azimada Member 10 8 80%
7 Yuki Noviani Kohar Member 10 8 80%
Decision in the Risk Monitoring Committee’s Meeting is noted and documented in Minutes
of Meetings of Risk Monitoring Committee by the task force that handles the Committee’s
meetings administration. The Minutes of Meeting is signed by the chairman of the meeting
and distributed to every member of Risk Monitoring Committee. The dissenting opinion in the
meeting shall be recorded in the minutes of meeting as well as the reasons for dissenting opinion.
Risk Monitoring Committee’s Training and Competence Development Program

The Company has provided budget from the Company’s Board of Commissioners to improve the
effectiveness of the Risk Monitoring Committee’s function to assist the supervisory and advisory
tasks of the Board of Commissioners by having the Risk Monitoring Committee continuously
conducts training and development programs as a means of updating the knowledge and
understanding of current issues concerning the duties and programs undertaken.
Throughout 2017, the training and competence development attended by the Risk Monitoring
Committee Members are as follow:
Name Position Time Training/Seminar Name

Program International Risk Culture & Leadership
April 2017
ERM Master Class & Benchmarking in Europe
Arie Coerniadi Chairman Deeper Understanding on IFRS 9 & Basel IV and

May 2017
Progress of Basel III Implementation
October 2017 Internal Capital Adequacy Assessment Process (ICAAP)
03 Name Position Time Training/Seminar Name

Seminar Cyber Security and Integrating Operational
Risk Monitoring February 2017 Risk with the Mitigation Factors and Digital Payment:
A New Era In The Way We Do Payment
Committee I Wayan Agus Mertayasa Member
May2017
Deeper Understanding on IFRS 9 & Basel IV and
September 2017 Living Wills, Planning for Bank Recovery and Resolution
Risk Management Competence Certification Level 2

Maret 2017
Garuda Wiko Member for Commissioner
September 2017 Living Wills, Planning for Bank Recovery and Resolution

May 2017
Sumiyati Member Progress of Basel III Implementation
September 2017 Integration of GRC
Seminar BARa Risk Forum, Refocussing on Credit

March 2017 Risk Management, Credit Risk Model, Pricing & Being
Prepared for Upcoming Regulations.
Iman Sugema Member
May 2017
September 2017 Integration of GRC
Heru Ratna Azimada Member September 2017 Workshop Risk Modelling in Financial Institution
Performance Assessment of Risk Monitoring Committee

The performance of Risk Monitoring Committee is evaluated by the Company’s Board of
Commissioners every 3 (three) months. The assessment is based on the realization and
completion of work program stipulated in the Risk Monitoring Committee Work Plan and
Budget. The assessment will be reported to the Board of Commissioners in the Risk Monitoring
Committee report.
The result of assessment became considerations for Board of Commissioners to reappoint and/
or dismiss Risk Monitoring Committee members for the next term of office.
Risk Monitoring Committee Meeting Plan 2018

In accordance with the Audit Committee Work Plan for 2018, the Audit Committee has planned
12 meetings in 2018, with the main agenda as follow:
1. Conducting periodic evaluation and providing input to the Board of Commissioners on
these matters:
›› Risk Profile
›› Bank Health Rate
›› Bank’s Business Plans
›› Others, in line with the prevailing rules and legislation
2. Evaluating the completeness of the tools and policies related to Credit Risk as well as the
risks that become the priority of 2018, i.e. Compliance Risk, Legal Risk, Strategic Risk, and
Reputation Risk
3. Monitoring the policy process and comprehensiveness on targeted business activities in
2018, i.e.:
›› Strengthening the mortgage business positioning and construction value chain
›› Strengthening the funding structure and CASA Ratio
›› Improving Non-Interest Income
›› Enhancing effectiveness of Collection and Asset Recovery
4. Analyzing and Evaluating the risk management implementation related to the plan to
enhance Information Technology capability to support digital banking and digitalization
process.

04
The Remuneration and Nomination Committee was established by the Board of Commissioners
and reports to the Board of Commissioners in supporting the functions and duties of the Board
of Commissioners in relation to Remuneration and Nomination of the members of the Board
of Directors and members of the Board of Commissioners. The committee is a supporting tool
Remuneration of the Board of Commissioners, working hand in hand with the Human Capital Management
and Nomination & Culture Specialist Division (HMCD) as a tool of the Board of Directors for Human Capital
Committee Improvement and preparation of future leaders who provide exemplary examples and careful
attention to the implementation of the Company’s Good Corporate Governance. The objectives
to establish the Remuneration and Nomination Committee are:
1. Assisting and strengthening the function of the Bank’s Board of Commissioners in
performing the functions of determining the criteria for election of candidates for members
of the Board of Commissioners and Board of Directors and their remuneration system.
2. Assisting the Board of Commissioners in performing the duties and functions of formulating
selection criteria and nomination procedures for members of the Board of Commissioners,
the Board of Directors. Establishing an assessment system and providing recommendations
on the number of members of the Board of Commissioners and the Board of Directors, and
the preparation of payroll and benefits system to members of the Board of Commissioners
and Board of Directors related recommendations.
Composition of the Remuneration and Nomination Committee

There are 7 (seven) members of the Company’s Remuneration and Nomination Committee in
2017. The composition of the Remuneration and Nomination Committee consists of 3 (three)
Independent Commissioners, 2 (two) Commissioners, 1 (one) independent party and one
Executive Officer supervising human resources.
In 2017, the composition of the Company’s Remuneration and Nomination Committee changed,
with the appointment and dismissal of the Remuneration and Nomination Committee Members.
The further explanation is as follows:
1. Based on the Directors’ Decree No. 1168/DIR/HCD/V/2017 dated May 16, 2017, since
April 26, 2017, Mr. Eko Waluyo is appointed as the Head of Human Capital Management
& Culture Specialist Division (HMCD), replacing Mr. Arief Pramuhanto which is appointed as
Director of PT Kimia Farma (Persero) Tbk.
2. Based on the Board of Commissioners’ Letter No. 33/KOM/BTN/III/2017 dated March
21, Mr. Lucky Fathul Aziz Hadibrata shall start the cooling off period as Independent
Commissioner of PT Bank Tabungan Negara (Persero) Tbk, effective since March 26, 2017,
to September 25, 2017. Automatically, he does not serve as the Member of Remuneration
and Nomination Committee on the cooling off period. He will serve effectively on .. 2017.
Thus, the Structure and Membership of Remuneration and Nomination Committee Per December
31, 2017, is as follows:
Table: Composition of
the Remuneration and
Name Position Appointment Basis Term of Office
I Wayan Agus Chairman/ PT Bank Tabungan Negara (Persero) Tbk Board of 25/04/2016 –
Mertayasa Independent Directors' Decision Letter No. 163/DIR/2016 dated 24/04/2019
Commissioner 25 April 2016 on the Change in the Membership
Composition of PT Bank Tabungan Negara (Persero)
Tbk Remuneration and Nomination Committee
Lucky Fathul Aziz Member/ PT Bank Tabungan Negara (Persero) Tbk Board of 21/11/2017 –
Hadibrata Commissioner Directors' Decision Letter No. 503/DIR/2015 dated 4 23/03/2020
September 2015 on the Change in the Membership
Composition of PT Bank Tabungan Negara (Persero)
04 Name
Arie Coerniadi
Position
Member/ Independent
Commissioner
Appointment Basis
PT Bank Tabungan Negara (Persero) Tbk Board of
Directors' Decision Letter No. 163/DIR/2015 dated
Term of Office
25/04/2016
24/04/2019
–
Remuneration 25 April 2015 on the Change in the Membership
and Nomination Composition of PT Bank Tabungan Negara (Persero)

Committee Kamaruddin Sjam Member/ PT Bank Tabungan Negara (Persero) Tbk Board 01/11/2016 –
Independent of Directors' Decision Letter No. 476/DIR/2016 30/09/2019
Commissioner dated 01 November 2016 on the Change in the
Membership Composition of PT Bank Tabungan
Negara (Persero) Tbk Remuneration and Nomination
Committee
Maurin Sitorus Member/ PT Bank Tabungan Negara (Persero) Tbk Board 01/11/2016 –
Independent Party of Directors' Decision Letter No. 476/DIR/2016 30/09/2019
dated 01 November 2016 on the Change in the
Membership Composition of PT Bank Tabungan
Negara (Persero) Tbk Remuneration and Nomination
Committee
I Nengah Rentaya Member/ PT Bank Tabungan Negara (Persero) Tbk Board of 08/11/2016 –
Independent Party Directors' Decision Letter No. 476/DIR/2016 dated 1 07/11/2019
November 2016 on the Appointment of the Members
of the Remuneration and Nomination Committee at
PT Bank Tabungan Negara (Persero) Tbk.
Eko Waluyo Ex-officio Member/ PT Bank Tabungan Negara (Persero) Tbk Board of 06/06/2017-
HR Executive Officer Directors' Decision Letter No.401/DIR/2017 dated 06/06/2020
24 August 2017
From January 1, 2017, to June 30, 2017, Mr. I Wayan Agus Mertayasa (Independent Commissioner) acted as
the Chairman of Remuneration and Nomination Committee. He is also an Executive Officer in charge of Human
Resources, hence he has the knowledge related to remuneration and nomination provisions. Thus, the Bank’s
succession plan, held by Mr. Eko Waluyo is in compliance with the prevailing legislation.
Appointment and Dismissal

The structure and membership of Remuneration and Nomination Committee are established
based on the Directors’ Decree No. 518/DIR/2016 dated November 30, 2016, on the Appointment
of Remuneration and Nomination Committee Members of PT Bank Tabungan Negara (Persero)
Tbk. The appointment of Remuneration and Nomination Committee members shall be conducted
by the Board of Commissioners taking into account the integrity, morality, and independence
Table: Profile of the
and knowledge in terms of the remuneration and/or nomination system provision, and Human
Members of the
Remuneration and Capital Management & Culture Specialist Division (HMCD) succession plan.
(Name, Education, Work In line with the above matter, the candidate of Remuneration and Nomination Committee
Experience, and Expertise) Members appointed have met the criteria established by the Company, as follows:

Chariman
Expertise
Finance & Banking


Member
Expertise
Finance, Macro Economy, Management Strategy
Arie Coerniadi
Member
Expertise
Finance & Tecnology Information
Kamaruddin Sjam
Member
Expertise
Audit, Finance
Maurin Sitorus
Member
Expertise
Law, Economics
I Nengah Rentaya
Member
Indonesian Citizen, Born in Tabanan Bali, Age 58. Bachelor’s degree from the Faculty of
Economics Gajah Mada Yogyakarta University in 1987 and Master of International Affairs
in Economic Policy & Management at Columbia University, the USA in 1994.
Expertise
Banking, Human Resources
Work Experience
Served as Senior Vice President – Group Head of Learning Center PT Bank Mandiri (Persero)
Tbk (2007-2014); Senior Vice President – Group Head of Human Capital Group PT Bank
Mandiri (Persero) Tbk (2006-2007); Senior Vice President – Deputy Group Head of Human
Capital Group PT Bank Mandiri (Persero) Tbk (2003-2006).
Training
Train the Trainer Methodology and Tool Delivery Program Bank Mandiri (2013); Training
Certificate Coaching Program 60 hours, by ICF, USA (2013); Service Excellence for Senior
Manager Program, by SQC, Singapura (2012); The 4 Disciplines of Execution (4DX), Manager
Certification Program – Gold Certificate, by Franklin Covey and Dunamis Indonesia, 2012;
Human Resources Management in ASIA PACIFIC, by INSEAD, Singapore, 2000; Achieving
Performance, by INSEAD France, 2002.
Eko Waluyo
Ex-officio member
Indonesian Citizen, Born in Temanggung, Age 46. He finished his Bachelor degree in the field of
Accounting, in Universitas Gadjah Mada (UGM) in 1995, and earned a Master of Management
(MM) in finance from Universitas Gadjah Mada (UGM) and the University of Kentucky USA in 2004.
Expertise
Finance
Work Experience
Head of Corporate Secretary Division (2015-2017), Department Head Investor Relation
(2013-2015), Manager Investor Relation (2011-2013), Manager Investor Communication
(2010-2011), and Head of Mortgage Security Team (2006-2010). He was previously the Dep.
Manager of Risk Management in PT Sarana Multigriya Finansial (2006) and Junior Auditor in
State Audit Board (BPK) (2006-2007).
Training
Investor Relations Masterclass, Executive Workshop the Investor Relations Society, United
Kingdom (UK) (2013), Financial Risk Management Competence Certification Level 1, 2, 3, and
4 by Institute of Banking Professional Certification (LSPP) (2011, 2012, and 2014), Workshop
ASEAN Corporate Governance Scorecard, Indonesian Institute for Corporate Directorship (IICD),
Jakarta (2015), Roles and Function of Board of Commissioners/Supervisory Board Workshop,
BUMN, State Ministry for State-Owned Enterprises, Bandung, Indonesia (2015), The First
Asean Marketing Summit, Markplus Institute, Jakarta (2015), The 1st Corporate Secretary
Leadership Forum, United Company Press (SPS), Bangkok, Thailand (2015), as well as The
Workshop Making Small-Scale Savings Work for Everyone in a Digitised World, The World
Savings Bank Institute (WSBI), Washington DC, USA (2015), Workshop of Directors & Manager
of SOEs Human Resources, Jakarta (2017); The Second Indonesia Human Capital Summit 2017,
Jakarta (2017); World-Class SOE Talent Management Workshop, Bali (2017).

04
The discharge of Members of the Remuneration and Nomination Committee (resign or discharge)
is based on Article 8 of the Committee Charter which states that the Chairman and Member
of the Committee are appointed for a term of 2 (two) years, without limiting the Board of
Commissioners’ rights to discharge at any time.
Remuneration
and Nomination Independence of Remuneration and Nomination Committee Members
Committee In carrying out their duties and responsibilities, every member of Remuneration and Nomination
Committee has to be characteristically independent, objective, and professional, both in
appearance and in the act.
There are 3 out of 7 (seven) Members of Remuneration and Nomination Committee who are Independent
Statement of Independence Commissioners. This complies with the POJK No. 55/POJK.03/2016 on Governance Implementation
Remuneration and Nomination for Bank Article 43 paragraph 4 that stated if there are more than 3 Members of Remuneration and
Committee Per December 31, 2017 Nomination Committee established, at least 2 (two) of the must be Independent Commissioners.
I Wayan
Independence Agus Lucky Fathul Arie Kamaruddin Maurin I Nengah Eko
Aspect Mertayasa Aziz Hadibrata Coerniadi Sjam Sitorus Rentaya Waluyo
Does not have a financial relationship √ √ √ √ √ √ √

with the Board of Commissioners and
Directors
Does not have a management √ √ √ √ √ √ √
relationship in the company,
subsidiaries, or affiliated companies
Does not have ownership relation in √ √ √ √ √ √ √
the company
Does not have any family relationship √ √ √ √ √ √ √
with the Board of Commissioners,
Board of Directors, and/or fellow
members of the Remuneration and
All Members of Remuneration and Nomination Committee do not have any financial, management, share ownership, and/or familial relationship with fellow Board
of Commissioners, Directors, and/or Controlling Shareholders, or any other relationship with the Bank that may affect his/her ability to act independently.
Concurrent positions of Company’s independent party take into account and consider the competence,
criteria, independence, confidentiality, code of ethics, and the duties and responsibilities. The
concurrent position of Remuneration and Nomination Committee is in the following table:
Remuneration
Concurrent Positions Concurrent Position in other
and Nomination
Name Position in the Company Company/Institution
Committee
Concurrent Position I Wayan Agus Chairman 1. President Commissioner/Independent -
Mertayasa Commissioner
2. Member of Audit Committee
3. Member of Risk Monitoring Committee
Lucky Fathul Aziz Member 1. Independent Commissioner -
Hadibrata 2. Member of Risk Monitoring Committee
Arie Coerniadi Member 1. Independent Commissioner -
2. Chairman of Risk Monitoring Committee
Kamaruddin Sjam Member 1. Independent Commissioner -
2. Chairman of Audit Committee
Maurin Sitorus Member 1. Commissioner Director General for Housing
2. Member of Audit Committee Financing, Ministry of Public Works
and Public Housing
I Nengah Rentaya Member - -

Eko Waluyo Member Human Capital Management & Culture none
Specialist Division Head
As of December 31, 2017, the Chairman of the Committee concurrent position is in accordance with the rules, that is,
an Independent Commissioner does not serve in the Committee for more than 2 (two) Committees in the same company.
04 Work Guidelines, Duties and Responsibilities of the Remuneration and

Work Guidelines of Remuneration and Nomination Committee refers to the Remuneration and
Remuneration Nomination Committee Charter. The Remuneration and Nomination Committee Charter was
and Nomination formulated based on the regulations and legislation in force and is periodically reviewed and
has been endorsed by the Board of Commissioners Decision No. SKB–03/DEKOM/BTN/2016
Committee and Directors’ Joint Decree No. SKB-03/DIR-BTN/2016 dated July 18, 2016.
In 2017, the Remuneration and Nomination Committee has evaluated the remuneration
guidelines by taking into account financial performance, individual work performance, fairness
with peer groups, and long-term goals and strategies of the Bank.
Scope of Remuneration and Nomination Committee

1. Summary 2. Functions and objectives;
3. Structure; 4. Membership Requirement for Independent Party;
5. Duties and Responsibilities; 6. Obligations and Work Ethics;
7. Rights and Authorities; 8. Meetings;
9. Professionalism Improvement and Supporting

Personnel Utilization; 10. Supportings;
11. Reporting 12. Tenure;
13. And Closing
The Remuneration and Nomination Committee Charter can be viewed on the Company’s website (www.btn.co.id) on
the Investor Relations menu on Governance Policy
Duties and Responsibilities of the Remuneration and Nomination Committee

In line with the Remuneration and Nomination Committee Charter, the Duties and Responsibilities
of the Remuneration and Nomination Committee are:
1. Remuneration
a. Provide recommendations to the Board of Commissioners related to 1) Remuneration
structure; 2) Remuneration structure in the form of salaries, emoluments, incentives,
and/or fixed and/or variable allowances.
b. Assist the Board of Commissioners in carrying out a performance assessment on the
conformity of the Remuneration received by each member of Directors and/or member
of the Board of Commissioners.
c. In carrying out the Remuneration function, the Committee shall prepare procedures
for formulating the Remuneration Structure, Remuneration Policy and determining the
amount for the members of the Directors/members of the Board of Commissioners.
d. Evaluate the remuneration policies based on performance, risk, fairness with peer
group, targets, and the Bank’s long-term strategies, meeting reserves as set forth in the
regulation and the Company’s potential revenue in the future.
e. Submit the result of the evaluation and recommendation to the Board of Commissioners.
f. Ensuring that the remuneration policy is in line with the prevailing provisions
g. Periodically evaluate the implementation of the Remuneration policy, at least once a year.
h. Review the human capital management system and human capital development
policy starting from recruitment, assessment, competency development, evaluation,
promotion, demotion, termination, succession, and others.
i. Formulate, analyze, and provide recommendations on the criteria and procedures for
selecting, appointing, and/or replacing members of the Board of Commissioners/Directors.
j. Establish a performance assessment system for members of the Board of
Commissioners/Directors.

04
k. Preparing and evaluating the wage system and provision of allowances for members of the
Board of Commissioners and Board of Directors as well as providing recommendations.
l. Carrying out other duties from the Board of Commissioners in line with Remuneration
and Nomination.
Remuneration 2. Nomination
and Nomination a. Provide recommendations to the Board of Commissioners on the 1) Nomination of
Committee candidates of the Directors referring to the Company’s strategy; 2) Composition of
members of the Directors/members of the Board of Commissioners; 3) Policies and
criteria required for the Nomination process and 4) Performance evaluation policies for
members of the Board of Directors/Board of Commissioners
b. Support the Board of Commissioners in assessing the performance of members of the
Board of Directors/members of the Board of Commissioners based on the benchmarks
set as evaluation material
c. Provide recommendations to the Board of Commissioners on the programs to develop the
expertise of members of the Board of Directors/members of the Board of Commissioners
d. In carrying out the Nomination function as referred to in letter b up to c, the Remuneration
and Nomination Committee is required to follow procedures in formulating the
composition and Nomination process, establishing the composition and nomination
process, preparing an expertise development program and exploring as well as proposing
candidates that meet the requirements to become a member of the Board of Directors/
member of the Board of Commissioners to be submitted to the GMS.
e. Monitor and analyze the nomination criteria and procedures for other executives up to 1
(one) level below the Board of Directors.
Rights and Authorities of the Remuneration and Nomination Committee

The Remuneration and Nomination Remuneration and Nomination Committee reserves the
following rights and authorities:
1. The Remuneration and Nomination Committee is entitled to gain full, free and unlimited
access to records, employees, assets and other resources of the Bank relating to the
implementation of their duties.
2. In executing their rights, the Remuneration and Nomination Committee cooperates with
the Human Resources Division, Compliance Desk, and other Units.
3. The members of the Remuneration and Nomination Committee are Independent parties
entitled to receive an honorarium set through the Board of Directors Decision Letter based
on the results of the Board of Commissioners meeting.
Reports and Achievement of the Remuneration and Nomination Committee

In order to clarify and be more effective in carrying out its duties and responsibilities, the Remuneration
and Nomination Committee always prepares the annual Remuneration and Nomination Committee
Work Plan. Preparation of Remuneration and Nomination Committee Plan based on the Remuneration
and Nomination Committee Charter and input from the Board of Commissioners.
The Remuneration and Nomination Committee’s Work Program 2017 include:

1. Establishing selection criteria, selection, and nomination procedures for members of
the Board of Commissioners and Board of Directors, and the assessment system of
Competence/Personality of the Candidates of the Company’s Officers.
2. Reviewing or analyzing the Talent Pool policy system - Nomination of Prospective
Executive Officer 1 (one) level under the Board of Directors, and the implementation of law
enforcement.
3. Prepare and recommending the Remuneration and Benefits system for members of the
Board of Commissioners and Directors, and ensuring their implementation is in compliance
with applicable policies.
04
4. Reviewing the Remuneration policy system for the Provision of Production Services
(Tantiem) of the Board of Commissioners and Directors, and the Policy of Production
Service System (Jasprod) to the Bank Employees.
5. Conducting review of Talent Pool competence development policy of Strategic Position 2
Remuneration (two) levels under the Board of Directors.
and Nomination 6. Reviewing the implementation of Company Culture and Engagement Program that has
Committee been implemented up to 2016.
7. Reviewing the Employee Training Program and other School Programs, specifically related
to mortgage competency.
8. Reviewing the policies of KPI Corporations and Board of Directors and performance
appraisal system of the Board of Directors.
9. Reviewing the provisions, Strategic Human Capital policies, Provisions of Sanctions and
Discipline, and GCG at the Bank
10. Provide an opinion on proposed promotions, transfers and tour of duty is for employees.
Work Plan Realization of the Remuneration and Nomination Committee

a. Report for the Remuneration and Nomination Committee activities
In 2017, the Remuneration and Nomination Committee has carried out several activities
including:
1. To recommend the Board of Commissioners and/or Board of Directors candidate to be
submitted on GMS
2. To review and discuss Blueprint Strategic Transformation Plan of Company 2016-2020
especially on criteria and procedure of selection of Senior Executive Vice President (SEVP).
3. To evaluate and review criteria and procedure of Official selection 1 (One) level below the
Board of Directors.
4. To review the Remuneration, Tantiem, and LTI provisions for the Board of Directors and
Commissioners.
5. To discuss the follow-up to the 2017 AGMS decisions, particularly those relating to the
duties and responsibilities of the Remuneration and Nomination Committee.
6. To review Board Manual of the Board of Commissioners and Board of Directors, to
become the Guidelines and Work Procedures of the Board of Commissioners (Board
Charter), based on the Board of Commissioners’ Decision No. 01/DEKOM-BTN/2017
dated August 10, 2017.
7. To review the Joint Decree on the Board Manual of the Board of Commissioners and
Directors, into the Joint Decree of the Board of Commissioners and Directors No. 02/
DEKOM-BTN/2017 dated November 24, 2017.
8. To review the provisions on multiple positions of Commissioners and Supporting Organs
of the Board of Commissioners.
9. To review, evaluate, and provide recommendation on system refinement and Human
Capital Management policy.
b. Remuneration and Nomination Committee Meeting
In line with the Remuneration and Nomination Committee Charter, the Remuneration and
Nomination Committee conducts at least 4 (four) meetings in a year. The meetings shall be
chaired by the Chairman of the Remuneration and Nomination Committee. The decisions
of the Remuneration and Nomination Committee Meetings are based on consensus
deliberations as set out in the Board Manual and the Remuneration and Nomination
Committee Charter.
Frequency and Level of Attendance of Remuneration and Nomination Committee Meetings

In 2017, the Remuneration and Nomination Committee has conducted 15 (fifteen) meetings,
and 11 (eleven) of the meetings were always attended by at least 51% (fifty-one percent)
of the total members including the Independent Commissioners and Independent Parties

04
provided based on the term of office of the members of the Remuneration and Nomination
Committee as follows:
Remuneration %
No. Name Position Meetings Attendance Attendance
and Nomination
1 I Wayan Agus Mertayasa Chairman 11 11 100.00%
Committee
2 Lucky Fathul Aziz Hadibrata*) Member 6 5 83.33%
3 Arie Coerniadi Member 11 11 100.00%
4 Kamaruddin Sjam Member 11 10 90.91%
5 Maurin Sitorus Member 11 10 90.91%
6 I Nengah Rentaya Member 11 10 90.91%
7 Arief Pramuhanto/ Ex-officio 11 5 45.45%

Eko Waluyo member
*) Carry out the cooling off period from March 25 to September 24, 2017, in order to transfer the position of the
Commissioner to Independent Commissioner, effective as Independent Commissioner of TMT on November 15, 2017,
and served as Remuneration and Nomination Committee on November 21, 2017, based on Directors Decree No. 650/
DIR/2017 dated 21 November 2017.
Decision in the Remuneration and Nomination Committee’s Meeting is noted and documented
in Minutes of Remuneration and Nomination Committee Meeting. The Minutes of Meeting
is signed by the head of the meeting and distributed to every member of Remuneration and
Nomination Committee. Dissenting opinion in the meeting shall be recorded in the minutes
of meeting as well as the reasons for dissenting opinion.
Training and Competency Development of the Remuneration and Nomination Committee

Throughout 2017, the training and competence development attended by the Remuneration
and Nomination Committee Members are described in the Board of Commissioners’ Profiles.
Assessment of the Remuneration and Nomination Committee

The performance of Remuneration and Nomination Committee is evaluated by the Company’s
Board of Commissioners at the end of the year. The assessment is based on the realization
and completion of work program stipulated in the Remuneration and Nomination Committee
Work Plan and Budget. The assessment will be reported to the Board of Commissioners in the
Remuneration and Nomination Committee report.
The result of assessment became considerations for Board of Commissioners to reappoint

and/or dismiss Remuneration and Nomination Committee members for the next term of office.
Meetings Planned for the Remuneration and Nomination Committee in 2018

In accordance with the Remuneration and Nomination Committee Work Plan for 2018, the
Remuneration and Nomination Committee has planned 10 meetings in 2018, with the main
agenda as follow: Establishing Selection Criteria and Procedures for Candidates of Members of
Board of Commissioners and Directors; Reviewing and analyzing Talent Pool - Nomination of
Candidates for Executive Officers 1 (one) level below the Board of Directors; Reviewing policy of
Remuneration and Tantiem provision policy for Board of Commissioners and Directors; Reviewing
the KPI composition of the Board of Commissioners and Directors; Reviewing and providing
recommendation on the Acceleration Program of Promotion and Competence Development
of Talent Pool participants, and other related Programs. The details of the Committee’s Work
Plan are as follows:
No. Activity/Plan in 2018 QI Q II Q III Q IV

1 Establishing selection criteria, selection, and nomination procedures for
members of the Board of Commissioners and Board of Directors, and
the assessment system of Competence/Personality of the Candidates
of the Company’s Officers.
2 Reviewing or analyzing the Talent Pool policy system - Nomination of

Prospective Executive Officer 1 (one) level under the Board of Directors,
and the implementation of law enforcement.
3 Prepare and recommending the Remuneration and Benefits system for

members of the Board of Commissioners and Directors, and ensuring
their implementation is in compliance with applicable policies.
4 Reviewing the Remuneration policy system for the Provision of

Production Services (Tantiem) of the Board of Commissioners and
Directors, and the Policy of Production Service System (Jasprod) to the
Bank Employees.
5 Conducting review of Talent Pool competence development policy of

Strategic Position 2 (two) levels under the Board of Directors.
6 Reviewing the implementation of Company Culture and Engagement

Program that has been implemented up to 2016.
7 Reviewing the Employee Training Program and other School Programs,

specifically related to mortgage competency.
8 Reviewing the policies of KPI Corporations and Board of Directors and

performance appraisal system of the Board of Directors.
9 Reviewing the provisions, Strategic Human Capital policies, Provisions

of Sanctions and Discipline, and GCG at the Bank.
10 Reviewing and providing opinion on the promotion, transfer policy,

and tour of duty of employees within the framework of Competence
development.
11 Together with the Board of Directors or HMCD, the Committee

conducted a working visit to the Bank’s Business and Operational
branches selectively to ensure that the Bank’s Strategic Policy has been
properly implemented.
12 Reviewing and recommending the Special Project, Acceleration Program

of Promotion and Competence Development for Employees with
performance category of STAR and POTENTIAL, which then will be
prepared to occupy Strategic Positions 2 (two) levels above his/her Grade.
13 Carrying out other duties from the Board of Commissioners.
14 Developing the competency of Committee’s members through training,

seminars, workshops, and certification.
04
Remuneration of the Remuneration and Nomination Committee Members
Remuneration for Remuneration and Nomination Committee members for the 2017 period
refers to Copy of Financial Services Authority Regulation No. 34/POJK.04/2014 on Nomination
and Remuneration Committee of Public Listed Companies Article 10 paragraphs 2 and 3.
Remuneration
and Nomination The 2017 remuneration package received by members of the Remuneration and Nomination
Committee Committee (excluding the members of the Board of Commissioners and executive officers) are
provided in the table below:
Name Period Remuneration
I Nengah Rentaya January 1, 2017 - December 31, 2017 Rp433,444,844
Total Remuneration Rp433,444,844

Committee Reporting Directly

to The Directors
The Committees that support the Directors’ duties have a role *) The structure, policies, and membership of the Credit Committee are in the
in facilitating monitoring, creating effectiveness in problem- process of the Board of Directors’ Decree. The duties and functions are performed
by the Board of Directors Meeting, which is responsible to discuss loan.
solving, and developing aspects that are considered strategic
by the Company, in accordance with the prevailing legislation.
Risk Management Committee
The Board of Directors has established and set the structure Risk Management Committee plays a role in formulating risk
and membership of the Committees reporting directly to the management policies, strategy, and target, and it also plays a
Directors, stipulated under the Directors’ Regulation. The role in facilitating the monitoring and decision making related
establishment is carried out for each Committee: to the Company’s risk management implementation.
1. Risk Management Committee
2. Asset and Liability Management Committee (ALCO) Structure and Membership
3. Credit Policy Committee Risk Management Committee has stipulated based on
4. Loan Committee*) the Directors’ Regulation No.4/PD/RMD/2016 dated
5. Product Committee April 27, 2016, on the Amendment to the Board of
6. Personnel Committee Directors’ Regulation No. 8/PD/RMD/2015 on the Risk
7. Information Technology Steering Committee (IT) Management Committee.
Chairman Managing Director Strategic, Compliance and Risk
Secretary Head of Enterprise Risk Management Division
Permanent Members Board of Directors

1. Managing Director Consumer Banking
2. Managing Director Finance & Treasury
3. Managing Director IT, Operation & Credit Risk
4. Managing Director Commercial Lending
5. Managing Director Collection, Asset Management & Legal
6. Managing Director Commercial Funding, Digital Banking & Distribution
Head of Division
1. Internal Audit Division
2. Compliance & Governance Division
Permanent Members Head of Division

Non-Permanent Members All Head of Division and Head of Desk except the Head of Enterprise Risk
Management Division , Head of Compliance & Governace Division and Head of
Internal Audit Division.
Duties and Responsibilities the head of Operations Task Force and the Head of Risk
The Risk Management Committee’s duties and responsibilities Management Task Force.
are to provide recommendations to the President Director on 2. Periodic and incidental improvement or refinement of
matters relating to, among others, and at least the following: risk management as a result of changes in the Bank’s
1. Formulation of Risk Management Policies and its external and internal conditions affecting the Bank’s
amendments, including the Risk Management strategy capital adequacy, risk profile and the evaluation results of
and contingency plan in the event of abnormal external the effective implementation.
conditions. The formulation is carried out together with 3. Determining matters (justification) related to business
decisions that are not in accordance with normal hence requiring exceptions to procedures established by
procedures (irregularities), such as significant business the Company.
expansion decisions compared to the predetermined
Bank’s business plan or a position/risk exposure that Duties Implementation
exceeds limits set. The justification is presented in the The duties of Risk Management Committee is implemented
form of recommendations to the President Director in the form of meeting. In 2017, the Risk Management
based on business considerations and analysis results Committee has conducted a number of activities including 4
related to specific Bank transactions or business activities (four) meetings with the following agenda:
Table: Risk Management Committee Meeting Agenda
No. Date Agenda

1 January 19, 2017 Self-Assessment of Risk Profile Report Q IV/2016
2 April 25, 2017 Self-Assessment of Risk Profile Report Q I/2017
3 July 18, 2017 Self-Assessment of Risk Profile Report Q II/2017
4 October 16, 2017 Self-Assessment of Risk Profile Report Q III/2017
Asset and Liability Committee (ALCO) Structure and Membership

Asset and Liability Committee (ALCO) plays a role in Asset and Liability Committee (ALCO) is established based
formulating the policies, strategy, and target. It also plays a on the Directors’ Regulation No. 2/PD/TRSD/2015 dated
role in facilitating the monitoring and decision making related February 5, 2015, on Company’s Asset Liability Committee
to the Company’s Asset Liability Management (ALMA). (ALCO). The structure and membership are as follow:
Chairman President Director
Secretary Head of Treasury Division
Permanent Members 1. All Directors (particularly for President Director, he/she shall be a
permanent member but only to provide compliance opinion)
2. Head of Division that manages funding
3. Head of Division that manages lending
4. Head of Sharia Division
5. Head of Banking Institutional Division
6. Head of Corporate & Loan Syndication Division
7. Head of Finance and Accounting Division
8. Head of Strategy and Performance Management Division
9. Head of Consumer Collection and Remedial Division
10. Head of Asset Management Division
11. Head of Risk Management Division
12. Head of Compliance Division
13. Head of Corporate Secretary Division
Permanent Members Other Divisions as required

Non-Permanent Members
Duties and Responsibilities Duties Implementation

The Asset and Liability Management Committee (ALCO) is in charge The duties of Asset and Liability Committee (ALCO) is
of preparing asset and liability management strategies to maximize implemented in the form of meeting. In 2017, the Asset
the Bank’s profitability and maintain the Company’s balance and Liability Committee (ALCO) has conducted 13 (thirteen)
sheet structure through the management of earning assets, cost meetings with the following agenda:
reduction and management of rate risk and liquidity risk.

Table: Asset and Liability Committee (ALCO) Meeting Agenda
No. Date Agenda

1 January 13, 2017 ALCO January 2017 and Asset Performance and Liabilities December 2016
2 February 21, 2017 ALCO February 2017 and Asset Performance and Liabilities January 2017
3 March 16, 2017 ALCO March 2017 and Asset Performance and Liabilities February 2017
4 April 25, 2017 ALCO April 2017 and Asset Performance and Liabilities March 2017
5 May 17, 2017 ALCO May 2017 and Asset Performance and Liabilities April 2017
6 June 16, 2017 ALCO June 2017 and Asset Performance and Liabilities May 2017
7 July 19, 2017 ALCO July 2017 and Asset Performance and Liabilities June 2017
8 August 28, 2017 ALCO August 2017 and Asset Performance and Liabilities July 2017
9 September 18, 2017 ALCO September 2017 and Asset Performance and Liabilities August 2017
10 October 17, 2017 ALCO October 2017 and Asset Performance and Liabilities September 2017
11 November 13, 2017 ALCO November 2017 and Asset Performance and Liabilities October 2017
12 December 14, 2017 ALCO December 2017 and Asset Performance and Liabilities November 2017
13 December 20, 2017 ALCO December 2017
Credit Policy Committee Structure and Membership

The Credit Policy Committee assists the Board of The Credit Policy Committee is established based on the
Directors in formulating policies, overseeing the policies Directors’ Regulation No. 12/PD/CMLD/2015 dated October
implementation, monitoring progress and loan portfolio, 16, 2015, juncto Directors’ Regulation No. 27/DIR/CMO/2011
and providing recommendations for improvements in the dated October 7, 2011, on the Credit Policy Committee.
loan field. The structure and membership are as follow:
Bank Coordinator Director who supervises the Division that manages and develops credit
policies
Secretary Division managing and developing the Bank’s credit policies
Permanent Members 1. Head of Division managing and developing the Bank’s credit policies
2. Head of Enterprise Risk Management Division
3. Head of Internal Audit Division
4. Head of Compliance & Governance Division
Non-Permanent Members Other Directors and Other divisions as required
Duties and Responsibilities 4. Monitor and evaluate the following aspects: The
The Credit Policy Committee’s duties and responsibilities development and overall quality of the loan portfolio;
include making recommendations to the President Director on Community development fund; development of customer
matters relating to, among others, and at least the following: service delivery; Compliance enforcement authority decides
1. Advise the Board of Directors on the preparation of the loan, restructuring and resolution of loan; valid process
credit policy with reference to the prudence principles and administration, the development and the quality of loans
Good Corporate Governance. granted to parties related to the Bank and major debtors;
2. Supervise and control the implementation of the rules and Compliance with the implementation of the Lending Limit;
regulations regarding the main points of the Company’s Observance of the provisions of the legislation and other
Credit Policy well and consistently and formulate regulations in the execution of lending, restructuring and
solutions if there are barriers/obstacles in its application. resolution of loan; The settlement of non-performing
3. Provide consultations on loans with high levels of risk and loans; and the Company’s efforts in meeting the adequacy
loan that should be avoided. Consultation must take place of the reserve for loan losses.
before commitments are made.
Duties Implementation
The duties of Credit Policy Committee is implemented in the form of meeting. In 2017, the Credit
Policy has conducted a number of activities including 3 (three) meetings with the following agenda:
Table: Credit Policy Committee Meeting Agenda
No. Date Agenda

1 May 10, 2017 Placement of BWMK Pre-Approval Line
2 25 Oct 2017 Changes in Commercial Loan Billing Date
3 13 November 2017 Approval of BWMK Self-Fund Loan
Product Committee Structure and Membership

Product Committee plays a role in compiling the policies, The Product Committee is set based on the Directors’
supervising the implementation of policies, monitoring the Regulation No. 20/PD/CMO/2011 on the Company’s Product
development, and providing advice on improvement steps Committee. The structure and membership are as follow:
related to the Company’s products.
Coordinator Director supervising the Division managing and developing the Bank’s
products/services
Secretary Division managing and developing the Bank’s products/services
Permanent Members 1. Head of IT Strategic Planning & Development Division

2. Head of Legal Division
3. Head of Compliance & Governance Division
4. Head of Enterprise Risk Management Division
Duties and Responsibilities a. Progress in the implementation of products in accordance

The Product Committee’s duties and responsibilities include with the CBP associated with product development.
assisting the President Director on matters relating to, among b. Product development plan and implementation;
others, and at least the following: c. Strategic issues encountered in the development and
1. Ensuring the suitability of the product development with implementation of products
the needs and objectives of the Company. d. Technology and standards that need to be considered, and
2. Making decisions related to product development and the possibilities of its implementation in the Company.
long-term implementation;
3. Determining the Company’s policies relating to product Duties Implementation
development; The duties of Product Committee is implemented in the form
4. Monitoring and discussing: of meeting. In 2017, the Product Committee has conducted 7
(seven) meetings with the following agenda:

Table: Product Committee Meeting Agenda
No. Date Agenda

1 May 29, 2017 Discussion on Savings Program
2 July 6, 2017 Discussion on Subsidized Housing Loan Business Process
3 July 11, 2017 Discussion on Subsidized Housing Loan Business Process
4 July 31, 2017 Discussion on Cost of Subsidized and Non-Subsidized Housing Loan Business Process
5 September 7, 2017 Discussion on Micro Housing Loan
6 October 16, 2017 Discussion on Simple Housing Loan
7 07 November 2017 Agreement of Micro Housing Loan Program
Personnel Committee Structure and Membership

The Personnel Committee assists the Board of Directors Personnel Committee is set based on the Directors’ Regulation
in formulating policies, overseeing the implementation of No. 04/PD/HCD/2014 on Personnel Committee. The structure
policies, monitoring progress and personnel and providing and membership are as follow:
recommendations for improvements in accordance with the
Company’s Employment regulations and the Labor Laws
applicable in Indonesia.
Coordinator President Director
Secretary Human Capital Management & Culture Specialist Divison Head
Permanent Members Director supervising Human Capital Management & Culture Specialist
(HMCD) and other HR related Directors in units whose supervision are
being discussed
Non-Permanent Members Other Head of Division as required
Supporting Group Department Head of Human Capital Division and Human Capital Career
& Development Management Unit on the Human Capital Management
& Culture Specialist Division
If the Division Heads in the Personnel Committee cannot be the Divisions/Regions/Branches/Teams pertaining to
represented or is unable to execute their duties and responsibilities Number 1
as a member of the Personnel Committee, their role cannot be 4. As an independent medium for Employees to make
delegated to any other position holders in their unit. clarifications regarding the decisions of the Personnel
Committee to the Divisions/Regions/Branches/Teams
Duties and Responsibilities concerning the placement/assignment of employees.
The Personnel Committee’s duties and responsibilities include 5. Responsible for the recommendations concerning policy
assisting the President Director on matters relating to, among proposals that will then be decided upon by the Board of
others, and at least the following: Directors’ Meeting.
1. Recommend strategies, policies and Human Resources 6. The Committee has the authority to decide on Human
management systems in line with the Bank’s Business Plan. Capital issues apart from Number 1 – Number 5
2. Monitor and supervise the implementation of HR mentioned above if the Board of Directors’ Meeting
programs to fit the strategies, policies and human mandates it.
resources management system. 7. If necessary, coordinate with the Remuneration and
3. Recommend the settlement of issues related to the Nomination Committee in reviewing the Human Capital
proposal submitted by the Personnel Committee to Management system/policy.
Duties Implementation
The duties of Personnel Committee is implemented in the form of meeting. In 2017,
the Personnel Committee has conducted 8 (eight) meetings with the following agenda:
Table: Personnel Committee Meeting Agenda
No. Date Agenda

1 January 9, 2017 Proposed Appointment of PO of New KC Openings
2 February 10, 2017 1. Proposed Fulfillment of Head of Division & Head of Branch that ends its working period in 2017
2. Fulfillment of Employees for TMO
3 March 6, 2017 Employees’ Promotion and Mutation
4 April 25, 2017 Appointment of Division Head on HMCD
5 May 23, 2017 Appointment of L1 Employees in the New Division
6 July 26, 2017 Employees Mutation of L1 KP, RO, KC
7 September 29, 2017 Head of Division Mutation
8 October 12, 2017 Head of Division Mutation
Information Technology Steering Committee

Information Technology Steering Committee plays a role in formulating policies, strategy,
targets, and facilities in monitoring and making decision-related to the Company’s Information
Technology management.
Structure and Membership

Information Technology Steering Committee is established based on the Directors’ Regulation No.
05/PD/ICTD/2014 dated July 2, 2014, on the Amendment to the Board of Directors Regulation
No. 18/PD/CMO/2011 dated July 20, 2011, on Information Technology Steering Committee (IT
Steering Committee). The structure and membership are as follow:
Chairman Director of IT & Operation (ex-officio)

If the President Director attends the Information Technology Steering
Committee, the President Director acts as the Information Technology
Steering Committee
Secretaryy Head of Information Technology Operation Division (ex-officio)
Permanent Members 1. Managing Director Risk, Compliance, and Strategy (ex-officio)

2. Managing Director Distribution & Network (ex-officio)
3. Managing Director Consumer Banking (ex-officio)
4. Head of Enterprise Risk Management Division (ex-officio)
5. Head of Operation and Business Support Division (ex-officio)
6. Head of Sharia Division (ex-officio)
7. Head of Regional Office (ex-officio)

Duties and Responsibilities key IT projects to enable the Directors to make decisions
The Information Technology Steering Committee’s duties efficiently.
and responsibilities include making recommendations to the 5. Suitability of IT with the needs of the management
President Director on matters relating to, among others: information system that supports the management of
1. Information Technology Strategic Plan is in accordance the Company’s business activities.
with the strategic plans of the Company’s business 6. The effectiveness of measures to minimize risk on
activities. In providing recommendations, the Committee the Company’s investment in the IT sector and the
should consider factors of efficiency, effectiveness, and investments that will contribute to achieving our business
matters as follows. objectives.
a. The roadmap to achieve the requirement of IT needs 7. Monitoring of and efforts to increase IT performance,
that support the Company’s business strategy. The by detecting IT obsolescence and measuring the
roadmap consists of the current state, the future state effectiveness and efficiency of the implementation of IT
as well as measures to be undertaken to achieve the security policies.
future state; 8. Efforts to settle various IT related issues, which cannot be
b. Data sources required; solved by the user unit and organizing unit. The Committee
c. Advantages/benefits that will be obtained when the may facilitate the relationship between the units.
plans are implemented. 9. The adequacy and allocation of resources owned by the
2. Formulation of major IT policies and procedures such as Company. If the resources are inadequate, and the Bank
IT security policy and risk management related to the use uses the services of other parties in the implementation
of IT in the Company. of IT, the IT Steering Committee should ensure that the
3. Compliance of IT projects approved by the IT Strategic Company has established policies and procedures.
Plan. The Committee also assigns priority status to 10. The Committee is responsible for recommendations and
IT projects that are critical (significant impact on the referring the next proposals to be decided upon by the
Company’s operational activities), for example, change Board of Directors’ Meeting.
of core banking applications, production servers, and
network topology. Duties Implementation
4. Compliance of implementation of IT projects with The duties of Information Technology Steering Committee is
the project charter that was agreed upon in a service implemented in the form of meeting. In 2017, the Information
level agreement. The committee should complete the Technology Steering Committee has held 1 meeting with the
recommendations based on the results of the analysis of following agenda:
Table: Information Technology Steering Committee Meeting Agenda
No. Date Agenda
1 April 12, 2017 1st Meeting of Information Technology Steering Committee (KPTI) 2017
Sharia Business Unit Governance (UUS)
The community’s need for sharia banking products continues to

grow from year to year. In response, the Company consistently Sharia Business Unit Structure
implements and improves its performance through continuous The Sharia Business Unit Structure is as follows:
services improvement to customers and stakeholders by
referring to sharia principles and based on the five basic
principles of GCG, i.e. openness, accountability, responsibility, Wicaksono
professionalism, and fairness. Didi Patria
Fajar Setyo Nugroho
Sharia Supervisory
Provisions on the Company’s UUS management refer to Branch
among others on:
1. Law No. 21 of 2008 on Sharia Banking dated July 16,
2008.
Rizky Syanarra
2. Bank Indonesia Regulation No. 11/10/PBI/2009 on
Sharia Business Unit as amended by Bank Indonesia Branch Supervisory
Support
Regulation No. 15/14/PBI/2013;
3. Bank Indonesia Regulation No. 11/33/PBI/2009 on
Good Corporate Governance Implementation for Sharia
Meidia Tirta
Commercial Bank and Sharia Business Unit. M Irwan Hernanto Eko Daniel SW
Adiguna
4. Directors’ Decree No. 02/KD/DIR/SPMD/2015 on Head Cons. Business Cons. Business Comm. Business
Office Organizational Structure of PT Bank Tabungan Dev Dept Head Serv. Dept Head Dev Dept Head
Negara (Persero) Tbk.
5. Company’s Articles of Association. Rizal Dz (Spv) Cons. Policy Ahmad Mukhtar
Jimmy O (Spv) & Product Amir
Karina Pradita Development Tony Ardiansyah
UUS Vision and Mission Subsidized Comm. Financing
In the operations, Sharia Division has Vision and Mission as Mortgage RM
follow:
Putri A (Spv) Ruli Ghazali
Cons. Financing
Aditya Wiranda Agung Budi
Vision Admin Support
Dana Ervano Setiawan
“To be the leading Sharia Bank in housing finance and related Non Subsidized & Wahyu Ardimas
industries” Cons Financing Comm. Financing
Analyst
Mission Bonny Marvel
1. To provide innovative products and services, as well as Evrien Ferdinand
Haji & Umroh
superior services that focus on housing finance and Management
Asti Kumala Putri
related industry with low-cost funding sources. Tatiek Rifqiyati
Sumbogo Ferli L
2. To develop qualified human capital with high integrity,
and to implement Good Corporate Governance and Fera W (Spv) Comm. Funding &
Dedy S (Spv) Services
Compliance.
Sintia Agnes
3. To improve the competitive edges through the latest Fendi Permana W
Information Technology Lucky Fabian
4. To care for public’s needs and environment Marisa
Cons. Funding &
Services

Marisa
Gemiralda
Sharia
Division Head Rima Lisnawaty
Cherly Anastasya
Secretary
Edward Alimin S Sanyato Rachmat Iskandar MS,

Sharia Business Sharia Ops. & Business Strategic & Planning
Deputy Supp. Deputy Dev Dept Head
Aprianto Rulyansah Moh. Alfas Cuk Hidayat Herman S Syapril Zein

Hadi Sulistyo
Comm. Business Treasury Dept IT Ops & Dev Ops & Finance Coll & Workout Andika P
Serv. Dept Head Head Dept Head Dept Head Dept Head
Strategic Planning
& Network
Comm. Policy Development
Money & Capital M. Hilmi A (Spv) Tito Ardhi (Spv)
& Product Akbar Sukardi
Market Hanggoro A (Spv) Indra Amin I
Development
Cecep Saprudin Agam Setiawan Collection Sharia Policy
IT Development (*) Ops. Business & QA Group
Support (*)
Comm. Financing
Reska F (Spv)
Monitoring & Liquidity & ALM Aji K (Spv)
Budiman (Spv) Johan Sandi P
Restructing RM M. Rezki H (Spv)
Agus Salim Fajrin Fathan Budiyono
Afdhi P
Arief Maulana Abdul Khair Pramudia Ricky I
Adriyan S
Muji Isna S Dede MY Restructing (*) Sharia Risk &
Comm. Financing IT Operation (*) Cucu R Compliance
Monitoring & Evi Retno N Endang Yusuf N
Restructing Finance &
Analyst Sharia Treasury
Accounting (*) Abdul Gopur
Supervisor Imam Susilo
Asset Legal & Financing
Management (*) Document
Sri Dewiningsih
Yuwanto Dwi S
Welly Yosi Reza P
Treasury Staff Rinaldi Dwi P
General Support
& HR
Layer 1
Layer 2
Layer 3 & 4
In carrying out the UUS, the Company is supervised by the 1. Candidates of DPS’ members must obtain recommendation
Board of Trustees. The UUS is managed by Director of UUS as from National Sharia Board - Indonesian Ulema Council
explained as follows: 2. Candidates of DPS’ members must obtain approval from
the Financial Services Authority;
Sharia Supervisory Board 3. Candidates of DPS’ members with approval from Financial
In order to conduct UUS business, the Company is supervised Services Authority shall be appointed by the Company in
by the Sharia Supervisory Board (DPS), which is the board the GMS;
responsible to provide advice and input to the Directors 4. Appointment and/or resignation of DPS’ members shall
and to supervise the UUS’s activities in accordance with the be reported by the UUS to the Financial Services Authority
sharia principles as stipulated in Bank Indonesia Regulation
No. 15/14/PBI/2013 on the Amendment to Bank Indonesia Sharia Supervisory Board’s Profiles
Regulation No. 11/10/PBI/2009 on Sharia Business Unit. Brief Profiles of the Sharia Supervisory Board (DPS) is
All the UUS’ fund products, financing, and services must be described in the Sharia Supervisory Board’s Profiles chapter
approved by DPS to ensure the suitability and compliance of on this Annual Report.
the products with the sharia principles.
Work Guidelines
Number and Composition of the Sharia Supervisory Board In carrying out its duties and responsibilities, the DPS refers
(DPS) to Bank Indonesia Regulation No. 1/33/PBI/2009 on Good
Throughout 2017, there are 3 members of Company’s DPS, Corporate Governance Implementation for Sharia Commercial
which consists of 1 (one) Chairman of DPS and 2 (two) Bank and Sharia Business Unit.
members of DPS. The composition of DPS is as follows:
DPS’ Duties and Responsibilities
1. To assess and ensure compliance with Sharia Principles on
Name Position
the operational guidelines and product issued by the Bank;
Drs. H. A. Nazri Adlani Chairman 2. To supervise the process of developing new products of
Banks in accordance with the fatwa of the National Sharia
Dr.H.Mohamad Hidayat Member
Board - Indonesian Ulema Council;
Ir. H. Muhammad Syakir Sula, AAIJ, FIIS Member 3. To provide sharia opinion on new products and/or funding
restructuration
4. To request fatwa to the National Sharia Board - Indonesian
Appointment of Company’s DPS is based on the DPS Ulema Council on the Bank’s new products without fatwa yet;
requirements, in line with the Bank Indonesia Regulation No. 5. To regularly review the compliance of Sharia Principles
11/10/PBI/2009 on Sharia Business Unit as amended by with the mechanism for the fund collection, fund
Bank Indonesia Regulation No. 15/14/PBI/2013, in which disbursement, and Bank’s services;
the Members of DPS shall have integrity, competence, and 6. To request information and data related to sharia aspects
reputation in the financial field. from the Bank’s task force in carrying out its duties.
Appointment and Dismissal of the DPS Independence of DPS

The DPS is appointed and dismissed by the Sharia Financial Company’s UUS DPS is independent and has no familial
Institution through GMS after obtaining recommendation from relationship, financial relationship, with the Controlling
the National Sharia Board of Indonesian Ulema Council (DSN- Shareholder, Director of UUS, and members of the Board of
MUI). The process of DPS appointment refers to the Bank Commissioners.
Indonesia Regulation No. 11/10/PBI/2009 on Sharia Business
Unit as amended by Bank Indonesia Regulation No. 15/14/ The Statement of Independence of the Company’s DPS in
PBI/2013, such as: 2017 is as follows:
Drs. H. Mohamad Ir. Muhammad Syakir

Independence Aspect Drs. H. A. Nazri Adlani Hidayat, MBA. MBL Sula, AAIJ. FIIS. QIP
Does not have a familial relationship with the Board of Commissioners, √ √ √

Directors, and Shareholders
Does not have a financial relationship with the Board of Commissioners, √ √ √

Directors, and Shareholders
Tidak memiliki Rangkap Jabatan baik sebagai konsultan, anggota Direksi √ √ √

maupun sebagai anggota DPS.

Concurrent Positions of DPS’ Members in 2017
No. Name Position Concurrent Position

1 Drs. H. Ahmad Nazri Adlani Chairman 1. DPS UUS Bank BTN
2. DPS Mega Finance
3. DPS UUS Asuransi Sinar Mas
2 Dr H. Mohamad Hidayat Member 1. DPS UUS Bank BTN

2. DPS Bank Syariah Mandiri
3. DPS Allianz Syariah
4. DPS UUS Bringin Life
5. DPS Manulife Syariah
3 Ir. H Muhammad Syakir Sula, AAIJ, FIIS, QIP Member 1. DPS UUS Bank BTN
2. DPS Panin Life Syariah
3. DPS Asuransi Nasional Re Syariah
Report of DPS’ Duties

1. DPS’ Meetings
DPS’ Meeting is one of the media in implementing the DPS’ Sharia Business Unit. The DPS’ Meetings are scheduled
functions and responsibilities to provide sharia opinion regularly, 2 times in a month. All decisions in the Company’s
on new products, to assess and ensure the compliance DPS’ meetings are based on consensus deliberations. Every
with sharia principles on the operational guidelines and meeting has minutes of DPS’ meeting which is signed by
products, and to request information and data related to every member of DPS who attended and it is documented
sharia aspects from the task forces. properly. The result of the DPS’ meeting shall be informed
of the business decisions for the Company’s UUS.
The regulation related to DPS’ Meetings refers to the
Bank Indonesia Regulation No. 11/33/PBI/2009 dated Frequency and Attendance of the DPS’ Meeting
December 7, 2009, on the Implementation of Good Throughout 2017, the Company’s DPS has held 17
Corporate Governance for Sharia Commercial Bank and (seventeen) meetings. The attendance of DPS is as follow:
No. Name Total Meeting Attendance

1 Drs. H. A. Nazri Adlani 17 17
2 Dr.H.Mohamad Hidayat 17 15
3 Ir. H. Muhammad Syakir Sula, AAIJ, FIIS 17 17
2. DPS Input Related to the sharia compliance compliance implementation with the list of opinions. The
Throughout 2017, the Company’s DPS UUS has voiced Minutes of DPS’ Meetings with the Company’s UUS are
their opinion 17 (seventeen) times, i.e. related to the sharia as follow:
Activity
No. Date Agenda Bank Operational
1 January 11, 2017 DPS Response to Financial Services Authority Findings
2 January 25, 2017 Preparation of DPS Supervision Report Semester 2 2016
3 February 8, 2017 Finalization of DPS Supervision Report Semester 2 2016
4 March 13, 2017 KPR securitization plan BTN iB Sharia-Asset Backed Securities - Letter of Participation Bank Activities
5 March 30, 2017 1. Amendment of Administration Saving Administration Cost BTN Prima iB with Akad Bank’s Products
Mudharabah Bank Activities
2. Charging of Einmalig (at once) Commercial Financing Administration Fee
3. KPR securitization plan BTN iB Sharia-Asset Backed Securities - Letter of Participation
6 April 26, 2017 Further Discussion on Amendment of Administration Saving Administration Cost BTN Prima Bank’s Products
iB with Akad Mudharabah
7 May 10, 2017 Opinion Request for Products and Activities: Bank’s Products
1. BTN iB Emasku Financing;
2. BTN iB Property Financing
Activity
No. Date Agenda Bank Operational
8 May 24, 2017 Finalization of Opinion on Products and Activities: Bank’s Products
1. BTN iB Emasku Financing;
2. BTN iB Property Financing
9 June 21, 2017 Preparation of DPS Supervision Report Semester 1 2017
10 July 12, 2017 Finalization of DPS Supervision Report Semester 1 2017
11 July 26, 2017 Request for Responses to the Materials of Internal Audit Division Findings
12 August 23, 2017 Request Response Use of the Qardh contract for Working Capital Bank’s Products
13 September 13, 2017 Request for Opinion on Bancassurance Product Cooperation
14 October 11, 2017 1. Opinion Request for Foreign Exchange Sale and Purchase Cooperation Bank’s Products
2. Request for Response to Wakalah Calhaj Related to BPIH Bank Activities
3. Request for Information Regarding DPS Certification Obligations
15 November 6, 2017 Meeting Preparation for DPS Bank BTN and DSN-MUI Bank Activities
16 November 9, 2017 Follow up of Preparation of Sharia Housing Loan Securitization Bank Activities
17 December 6, 2017 DPS Meeting with the Compliance Director
3. Frequency, Advice and Input Method, UUS activities to comply with Sharia Principles as set forth
Supervision of Practice Compliance in Minutes of Meeting and Report of DPS Supervisory. The
The Company’s DPS carries out its duties by providing supervision of the Company’s UUS operation is on the
advice and input to the Director of UUS and supervising the existed products, as follow:
No. Activity DPS Supervision Mechanism Supervision Frequency

1 To supervise the process of developing new 1. To assess and ensure compliance with Sharia There are opinions on 4 new Products/Activities
products of Banks in accordance with the fatwa Principles on the operational guidelines and in 2017, i.e.:
of the National Sharia Board - Indonesian Ulema product issued by the Bank 1. Financing product, BTN iB Emasku
Council 2. To provide sharia opinion on new products (Murabahah);
and/or funding restructuration 2. Financing product, BTN iB Property Financing
(Musyarakah Mutanaqishah/MMQ)
3. Purchase and Sale of Foreign Banknotes (Al
Sharf)
4. Sharia Bancassurance (Wakalah Bil Ujroh)
2 To request fatwa to the National Sharia Board To discuss with DSN-MUI on the sharia deed for The Meeting was held on November 9, 2017
- Indonesian Ulema Council on the Bank’s new securitization activities BTN iB Housing Loan
products without fatwa yet; Receivables (Murabahah)
3 To regularly review the compliance of Sharia 1. To review the compliance of Sharia Principles 1. It is conducted at 8 Sharia Branch Offices
Principles with the mechanism for the fund with the mechanism for the fund collection, 2. DPS Quotation Test Result at 8 Sharia Branch
collection, fund disbursement, and Bank’s fund disbursement, and Bank’s services by Offices
services quotation test at Sharia Branch Offices 3. Semester II 2016 Report and Semester I
2. To compile the Quotation Test Result on 2017 Report
the compliance of Sharia Principles with 4. There are 17 DPS’ Meetings throughout 2017
the mechanism for the fund collection,
fund disbursement, and Bank’s services by
quotation test at Sharia Branch Offices
3. To compile Semester Report to the Financial
Services Authority on the Supervisory Report
of Sharia Principles Compliance at Company
UUS
4. To hold Sharia Supervisory Board’s Meeting
4 To analyze the reports submitted by and/or To provide feedback on the Internal Audit Division The feedback was provided in the DPS’ Meeting
requested by the Board of Directors, execute findings on the imposition of Accelerated on July 26, 2017
internal audit function and/or compliance Repayment Fees and Ta'widh on Commercial
function to know the quality of compliance Financing Customers
implementation of Sharia Principles on
fundraising and fund disbursement activities,
and Bank's services
5 To hold Sharia Supervisory Board's Meeting To hold Sharia Supervisory Board's Meeting at The Sharia Supervisory Board Meetings in 2017
least once a month has been conducted 17 times

4. DPS Competence Development duties. Throughout 2017, members of Company’s DPS

DPS periodically conducts competence development have attended various training programs, workshops,
for all its staffs to support the implementation of DPS conferences, seminars including:
Program
No. Name Position Development
1 Drs. H. Ahmad Nazri Adlani Chairman Ijtima’ Samawi (Sharia Forum held by National Sharia Board/DSN)
in Jakarta, November 2-3, 2017
2 Dr H. Mohamad Hidayat Member Ijtima’ Samawi (Sharia Forum held by National Sharia Board/DSN)
3 Ir. H Muhammad Syakir Sula, AAIJ, FIIS, QIP Member Ijtima’ Samawi (Sharia Forum held by National Sharia Board/DSN)
5. Supervision and Recommendation Report of activities to comply with Sharia Principles as set forth in
the Sharia Supervisory Board Minutes of Meeting and Report of DPS Supervisory. The
In 2017, the DPS carries out its duties by providing advice supervision of the Company’s UUS operation is on the
and input to the Director of UUS and supervising the UUS existed products, as follow:
Activity Mechanism
No. DPS Supervision Supervision Reporting Type
1 To supervise the process of developing ›› • To assess and ensure compliance with Sharia There are opinions on 4 new Products/
new products of Banks in accordance with Principles on the operational guidelines and product Activities in 2017, i.e.:
the fatwa of the National Sharia Board - issued by the Bank 1. Financing product, BTN iB Emasku
Indonesian Ulema Council ›› • To provide sharia opinion on new products (Murabahah);
and/or funding restructuration 2. Financing product, BTN iB Property
Financing (Musyarakah Mutanaqishah/
MMQ)
3. Purchase and Sale of Foreign Banknotes
(Al Sharf)
4. Sharia Bancassurance (Wakalah Bil Ujroh)
2 To request fatwa to the National Sharia To discuss with DSN-MUI on the sharia deed for Minutes of Meeting November 9, 2017
Board - Indonesian Ulema Council on the securitization activities BTN iB Housing Loan Receivables
Bank’s new products without fatwa yet; (Murabahah)
3 To regularly review the compliance of Sharia ›› To review the compliance of Sharia Principles ›› It is conducted at 8 Sharia Branch Offices
Principles with the mechanism for the fund with the mechanism for the fund collection, fund ›› DPS Quotation Test Result at 8 Sharia
collection, fund disbursement, and Bank’s disbursement, and Bank’s services by quotation test Branch Offices
services at Sharia Branch Offices ›› Semester II 2016 Report and Semester I
›› To compile the Quotation Test Result on the 2017 Report
compliance of Sharia Principles with the mechanism ›› There are 17 DPS’ Meetings throughout
for the fund collection, fund disbursement, and Bank’s 2017
services by quotation test at Sharia Branch Offices
›› To compile Semesterly Report to the Financial
Services Authority on the Supervisory Report of
Sharia Principles Compliance at Bank BTN UUS
›› To hold Sharia Supervisory Board’s Meeting
4 To analyze the reports submitted by and/or To provide feedback on the Internal Audit Division findings Minutes of Meetings on Opinions dated July
requested by the Board of Directors, execute on the imposition of Accelerated Repayment Fees and 26, 2017
internal audit function and/or compliance Ta'widh on Commercial Financing Customers
function to know the quality of compliance
implementation of Sharia Principles
on fundraising and fund disbursement
activities, and Bank's services
5 To hold Sharia Supervisory Board's Meeting To hold Sharia Supervisory Board's Meeting at least once The Minutes of Sharia Supervisory Board
a month Meetings in 2017 has been conducted 17
times
DPS’ Remuneration and Facilities The focus of Director of UUS’ responsibilities is the UUS
Remuneration package/policies and other facilities for DPS management, based on the prudence and Sharia Principles, in
are as follows: line with the Company’s Articles of Association by emphasizing
1. The remuneration package/policies and other facilities the prudence, sharia, and GCG principles.
for DPS’ members are stipulated by the GMS. They cover
salary and bonus/tantiem. Head of Sharia Division
2. Type and the total amount of the remuneration package/ In conducting the UUS operations, the Director of UUS is
policy and other facilities for all members of DPS are: assisted by the Head of Sharia Division. Based on Company’s
Guidelines, the duties and authorities of Head of Sharia
Table: Remuneration and Other Facilities of the Sharia
Division as stated in the Job Description are:
Supervisory Board
1. To set the work plan and budget of his/her field in line
Remuneration and with the prevailing provisions.
No. Other Amenities Amount received in 1 year 2. To ensure the strategic planning process for BTN Sharia
People Million Rupiah Business Unit
3. To ensure the policy formulation related to the BTN Sharia
1 Remuneration 3 837.50
Business Unit
2 Other facilities - 4. To ensure the secretarial function of the Sharia
Supervisory Board
Owned -
5. To ensure the operation is running and the performance
Not owned - of Sharia Business Unit
6. To manage and control risks under his/her management
7. To implement the GCG in his/her task force
Members of DPS who received the remuneration in one
year is categorized based on the income range, as follow Report of DPS’ Activities
1. Fund Distribution to Financing Core Customers
Table: Group of DPS Total Remuneration
a. The provision of funds by the Bank to relevant parties
Total Remuneration Total and or large exposures have met Bank Indonesia’s
Amount received in 1 year Members provisions on the Legal Lending Limit (LLL) and takes
Above Rp2 billion - into consideration the prudential principles and the
prevailing regulations.
> Rp1 to Rp2 Billion -
b. The Director of Compliance through the compliance work
Above Rp500 million - Rp1 billion 3 People unit continuously monitors the Company’s compliance
with the LLL’s provisions and reports it to BI each
Below Rp500 million -
semester.
c. Pursuant to PD No. 01/PD/HCLD/2011 dated January
13, 2011, on Provision of Funds to Large Debtors
Director of Sharia Business Unit (UUS) (Large Funds) of PT Bank Tabungan Negara (Persero)
Role of Director of UUS Tbk, it is mentioned as follows:
The Director of UUS is responsible for ensuring the i. Limit on Provision of Funds shall be set at the
implementation of GCG principles in every business activity highest level in accordance with the limits stipulated
of the Company’s UUS at all levels of the organization. in the Bank Indonesia Regulation, on the maximum
Implementation of GCG principles, among others, is conducted crediting limit and the level of provision of funds
through sharia risk management planning and following up the shall be determined an impact analysis of the
recommendation of supervisory results of Sharia Supervisory Provision of Funds on the balance sheet structure
Board, Bank Indonesia supervision result, findings of internal and Bank’s risk profile. Analysis of the impact on the
audit and external auditor. balance sheet structure and risk profile of the Bank
and in accordance with the Bank’s internal policies
The Company’s Director of UUS has fulfilled the fit and proper on lending.
test as referred to in the Bank Indonesia Regulation No. 14/6/ ii. Provision of funds is performed, taking into account
PBI/2012 on the Fit and Proper Test of Sharia Bank and Sharia the size, type, duration, and diversification of the
Business Unit. Article 44 stated that the Director of UUS is Provision of Funds portfolio as a whole, to prevent
obliged to have competence in the sharia banking field and the Provision of Fund portfolio concentrated on a
commitment to the UUS development. Article 46 paragraph (3) particular Borrower or Group of Borrowers.
stipulated that the Candidates of Director of UUS must follow iii. The determination of the Provision of Funds limits
the fit and proper test based on the provisions of fit and proper shall be made by considering the amount, type,
test for the Conventional Commercial Bank.

duration of the Fund Provision or the impact of Quarterly Published Financial Report in the fiscal year
Provision of Funds on the Bank’s overall portfolio 2017 is published in several newspapers, among others:
diversification policy and strategy. Stipulation of
limits on exposure to certain parties is determined
Financial Statements
based on geographic limits and certain industries. Publication Newspaper
iv. Impact assessment of the Provision of Funds on the Quarter I 2017 Bisnis Indonesia, Kompas, Kontan
balance sheet structure and risk profile is conducted
Quarter II 2017 Bisnis Indonesia, Investor Daily
by measuring credit risk to pools of the provision
Quarter III 2017 Kompas, Kontan
of funds having similar characteristics, in terms
Quarter III 2017 Kompas, Kontan, Investor Daily, Bisnis Indonesia
of magnitude, type, or duration. The credit risk is
measured based on the historical default rate of
data and the transfer of the quality of the Fund (loan
rating migration) during a certain period. 3. UUS Consultants and Advisors
v. In addition to analyzing the concentrations of Throughout the year 2017, the Company’s UUS did not
Provision of Funds to Borrowers and a set of cooperate with any Consultant
Provision of Funds as described above, the Bank
shall also undertake an analysis of the allocations 4. UUS Internal Deviation Report
assigned to each component of the Provisioning In order to reduce internal irregularities (Internal Fraud)
Fund portfolio. conducted by the management, permanent, and non-
permanent employees (honorary and outsourced) related
2. Transparency of Financial and Non-Financial Condition, to the Company’s work processes and operational activities
GCG Implementation Report, and Internal Reporting that significantly affect the Company’s performance, the
The Company’s UUS has delivered the financial and non- Company conducts various efforts to prevent possible
financial information to the public in a timely, complete, internal fraud by the employees.
and accurate manner through adequate website and
media in a transparent manner. The Company’s UUS During 2017, deviations/fraud related to UUS work
processes and operations is described in the following table:
Number of Cases Committed by

Management Permanent Employee Contract Employee
Internal Fraud Previous Year Current Year Previous Year Current Year Previous Year Current Year
Internal Fraud 0 0 2 1 0 0
Resolved 0 0 2 1 0 0
In the process of internal settlement 0 0 0 0 0 0
Resolution not finalized 0 0 0 0 0 0
Had been followed up through legal process 0 0 0 0 0 0
5. Legal issues monitoring The Company’s UUS always prioritizes deliberation when
During 2017, there are no legal (civil or criminal) issues facing dispute with customer in solving the legal problems
related to the operation of Sharia Business Unit. faced. However, if the deliberation process cannot resolve
the dispute, the Company’s UUS and the customer shall
Throughout 2017, the civil and criminal law issues faced agree to settle the dispute by using the arbitration line
by Company’s UUS and have been filed through the legal or through the judicial institution based on the prevailing
process is reflected in the following table: laws and regulations and in accordance with the sharia
principles.
No. Problem Law Civil Criminal 6. Non-Halal Income and its Utilization
1 Finished (has permanent legal power) - - Throughout 2017, the Company’s sources of non-halal
2 In progress 8 16 revenue include danda and non-halal income such as
Total 8 16 interest services. It is stated in the following table:
Source and Utilization of Qard January 1, 2017 - December 31, 2017 (in full unit)
No. Description December 31, 2017

1 Initial Balance of Source of Virtue Funds 11,458,506
2 Recipient of Source of Virtue Funds
›› Infaq 320,913
›› Donation
›› Refund of Virtue Funds
›› Fine; and 1,634,418
›› Non-Halal Income 46,010,243
Total Revenue 47,969,574
3 Virtue Fund Utilization
›› Productive Virtue Fund
›› Contribution
›› Other Use for the Public’s Needs 27,496,281
Total Utilization 27,496,281
4 Increase (Decrease) Fund Resources Policy on Use 20,473,293
5 Policy Fund Final Balance 31,931,799
7. The UUS conducted the GCG Self-Assessment in Fiscal Year 2017

In 2017, the Company’s UUS conducted the GCG self-assessment. The scores for each
criterion are as follow
The calculation of the composite score for Self-Assessment is as follows:
No. Factor Weight (%) Rating Mark

1 Implementation of duties and responsibilities of Director of UUS 0.35 1.00 0.35
2 Implementation of duties and responsibilities of Sharia Supervisory Board; 0.20 2.00 0.40
3 The Sharia Principles in the fund collection and disbursement activities and 0.10 2.00 0.20
the services
4 Fund disbursements to core customer financing and deposit fund by core 0.10 1.00 0.10
depositors
5 Transparency of Financial and Non-Financial Condition of Banks, Reports on 0.25 2.00 0.50
the GCG Implementation, and Internal Reporting
COMPOSITE SCORE 1.00 1.55
CRITERIA 2
PREDICATE GOOD
Based on the Self-Assessment, the composite score of the Sharia Business Unit of PT Bank Tabungan Negara (Persero) Tbk is 1.55, the criteria are 2, and it achieved
the ‘Good’ predicate. The composite score is the same as the previous year’s composite score. This reflects the Bank’s Management consistency and wellness in
implementing the Good Corporate Governance. Adequate implementation of the Good Corporate Governance principles. If there is any weakness to the Good Corporate
Governance principles, generally the weakness is less significant and shall be solved by normal action from the Bank’s management.
8. Compliance with the Sharia Principles

Pursuant to the POJK No. 46/POJK.03/2017 dated July 12, 2017, on Bank’s
Compliance Function, the Company through the Director of Compliance has conducted
coordination meetings with the Sharia Supervisory Board one times in month
December in 2017 to ensure the implementation of the compliance function of
sharia principles.

Corporate Secretary
The Corporate Secretary has a role in ensuring that the Corporate Secretary shall organize an introduction program
Company complies with the provisions related to the openness for newly appointed members of the Board of Directors and/
requirement, in line with the GCG principles. The Corporate or Board of Commissioners.
Secretary strives to provide the information required by
the Board of Directors and Board of Commissioners, and to Corporate Secretary Organizational Structure
fulfill the Company’s responsibilities regarding the delivery of The Corporate Secretary is assisted by Manager/Senior
material and relevant information to stakeholders. Manager who is responsible for each task force, such as
Investor Relations, Corporate Communication and Planning,
As a liaison officer, the Corporate Secretary organizes, Budgeting & Protocol. Corporate Secretary is responsible
coordinates, and documents the Board of Directors’ Meetings, to the President Director on the execution of their duties.
Board of Directors and Board of Commissioners’ Meetings, The structure of the Company’s Corporate Secretary is
GMS, and other meetings with stakeholders. In addition, the as follows:
L1 Corporate President
Secretary Director
L2 Planning,
Corporate Investor Chief
Budgeting
Communication Relations Economist
& Protocol
L3 Planning, Policy,
Corporate
Promotion &
Investor
& Budgetting Communication
Media Relation
Marketing
Capital Market
Protocol Communication
Support
Coordination
Community
Personal Research &
Development
Assistant Valuation
Program
Web Content
Coordination
Profile of the Corporate Secretary Appointment, to replace Eko Waluyo (the Corporate
The Board of Directors of PT Bank Tabungan Negara Secretary for April 1, 2015 to June 13, 2017).
(Persero) Tbk has appointed Agus Susanto as Corporate
Secretary as of June 14, 2017, based on Directors’ Decree The appointment of the new Corporate Secretary has been reported
No. 300/DIR/2017 dated July 3, 2017, on the Appointment to the Financial Services Authority through Letter No. 298/CSD/
of Corporate Secretary of PT Bank Tabungan Negara IR/VI/2017 dated June 15, 2017, on Information of Corporate
(Persero) Tbk, and it has obtained the approval of Board Secretary Change. The information is also published on the website
of Commissioners in the Letter No. 70/KOM/BTN/VI/2017 of Indonesian Stock Exchange (www.idx.co.id), Financial Services
dated June 7, 2017, on the Approval of Corporate Secretary Authority (www.spe.ojk.go.id) and Company (www.btn.co.id).
Agus Susanto
Indonesian Citizen, age 55, born in Pontianak, Domiciled in Jakarta.
Obtained a Bachelor of Economics from the University of Muhammadiyah, Palembang,
in 1990.
Work Experience
Started his career in PT Bank Tabungan Negara (Persero) Tbk since 1991, and he was
in the Division of Mortgage & Consumer Lending Regional II, Head of Mataram Branch
Office (2013-2015), Head of Denpasar Branch office (2015-2016), Head of Semarang
Branch Office (2016-2017) and Head of Bekasi Branch Office (2017).
Training
He has attended various training and seminar: Corporate Secretary Dialogue on POJK
51/POJK.03/2017 on Sustainable Finance in Jakarta (2017); SOEs Public Relations
Forum (FH BUMN) in Makassar (2017); 2 (two) Days Workshop of Three Pillars of
Corporate Secretary in Bandung (2017); Socialization of Credit Policy Implementation
in Jakarta; BM Training Financial Planning in Jakarta (2016); Corporate Culture Training
and Socialization in Jakarta (2015); Banking Level 3 Risk Management Certification in
Jakarta (2014); and various other seminars and trainings.
Competence Development Program of the Corporate Secretary

Throughout 2017, the Corporate Secretary has attended training and seminar activities to support the
implementation of duties and responsibilities as follows:
Corporate Secretary Competency Development Program 2017
Training Organizer Place and date

2 (two) Days Workshop of Corporate Secretary’s Three Pillars Infobank Bandung, March 2-3, 2017
SOE Public Relations Forum Workshop (FH BUMN) FH BUMN Makassar, July 27-29, 2017
Corporate Secretary Dialogue on POJK 51/POJK.03/2017 on Sustainable Finance Indonesia Corporate Secretary Association (ICSA) Jakarta, September 27, 2017
Tasks and Responsibilities of the Corporate Company, in performing its duties and responsibilities, including:
Secretary 1. To follow the development of the capital market,
Provisions relating to the Corporate Secretary’s duties and especially the applicable rules and legislation in the field
responsibilities are contained in the CGC Code and Board of capital market.
Manual. The main task and responsibility cover the internal and 2. To provide suggestion to the Company’s Board of
external communications and the relationship of the Company’s Directors and Board Of Commissioners to adhere to the
leadership. The Corporate Secretary also refers to the Financial rules and regulations in the field of Capital Market.
Services Authority Regulation No. 35/POJK.04/2014 dated 3. To assist Board of Directors and Board of Commissioners
December 8, 2014, on Corporate Secretary of Public Listed in the implementation of corporate governance, which

includes the following aspects: Progress Reports are:

a. Information disclosure to the public, as well as the a. BBTN Shares Performance 2016 through Memo No.
availability of information on the public website or 291/M/CSD/IR/II/2017 dated February 27, 2017.
public company; b. BBTN Shares Performance Quarter I 2017 through
b. Submission of the report to the Financial Services Memo No. 638/M/CSD/IR/IV/2017 dated April 28, 2017.
Authority in a timely manner; c. BBTN Shares Movement in early July 2017 through
c. Management and documentation of the General Memo No. 1001/M/CSD/IR/IV/2017 dated July 14, 2017.
Meeting of Shareholders; d. BBTN Shares Performance Quarter II 2017 through
d. Management and documentation of Board of Directors Memo No. 1092/M/CSD/IR/IV/2017 dated July 31, 2017.
and/or Board of Commissioners Meeting; and e. Submission of Response from Capital Market
e. Orientation program for Board of Directors and/or Analyst to the Company’s Performance as of June
Board of Commissioners; 30, 2017, through Memo No. 1100/M/CSD/IR/
4. As a liaison between the Company and the public IV/2017 dated July 31, 2017.
shareholders or public listed company, Financial Services f. Report of Communication to Market Capital Community
Authority, and other stakeholders. on Quarter III 2017 through Memo No. 1479/M/CSD/
IR/IV/2017 dated September 29, 2017.
Duties and Responsibilities of the Corporate g. BBTN Shares Performance Quarter III 2017
Secretary through Memo No. 1713/M/CSD/IR/XI/2017 dated
The realization of duties and responsibilities undertaken by the November 1, 2017.
Corporate Secretary during 2017 are as follows: h. Response from Capital Market Analysts to
1. Socializing the Capital Market Development to the Company’s Performance as of September 30, 2017,
Directors and Board of Commissioners which includes: and BBTN Shares Performance in October 2017
›› New rules or regulations to be socialized or policies through Memo No. 1811/M/CSD/IR/XI/2017 dated
updated by Corporate Secretary, such as: November 15, 2017.
a. OJK Appeal to Use the Tax Amnesty Program through ›› Input, feedback, and expectations of investors,
Memo No. 255/M/CSD/IR/II/2017 dated February analysts, and other capital market community on the
21, 2017. development of business and performance improvement
b. Review of POJK No. 11/POJK.04/2017 on of Company, through forum Investor Conference and
Shareholdings Reports or Any Changes in the Public Non-Deal Roadshow, among others, are:
Company Shareholdings through Memo No. 570/M/ a. Analyst’s Summary and Feedback on the Company’s
CSD/IR/IV/2017 dated April 18, 2017. Performance 2016 through Memo No. 327/M/CSD/
c. Socialization of POJK No. 10/POJK.04/2017 dated IR/IV/2017 dated March 6, 2017.
March 14, 2017, on the Amendment to the OJK b. Report of the Official Travel of the Board of Directors
Regulation No. 32/POJK.04/2014 on the Plan and in the event of Communication to Investor through
Implementation of General Meeting of Shareholders Letter No. 610/DIR/CSD/VIII/2017 dated August 24,
of Public Company through Memo No. 585/M/CSD/ 2017.
IR/IV/2017 dated April 25, 2017. c. Report of the Official Travel of the Board of Directors
d. Review of the Articles of Association on the Board in the event of Non-Deal Roadshow in Hong Kong
of Directors’ Actions that require approval from and Kuala Lumpur, September 4-6, 2017, through
the Board of Commissioners and Bicolor Series A Letter No. 659/DIR/CSD/VIII/2017 dated September
Shareholder, through Memo No. 1155/M/CSD/IR/ 12, 2017.
IV/2017 dated August 8, 2017. d. Report of the Official Travel of the Board of Directors
e. Socialization of POJK No. 51/POJK.03/2017 dated in the event of Non-Deal Roadshow in USA and
July 18, 2017, on the Implementation of Sustainable Canada, August 22-25, 2017, through Letter No.
Finance for Financial Services Institutions, Issuers, 660/DIR/CSD/VIII/2017 dated September 12, 2017.
and Public Companies through Memo No. 1509/M/ e. Report of the Official Travel of the Board of Directors
CSD/IR/IV/2017 dated October 4, 2017. in the event of Communication to Investor through
f. Articles of Association Article 12 paragraph 7 related Letter No. 841/DIR/CSD/VIII/2017 dated November
to the Board of Directors’ Actions that require approval 30, 2017.
from the Board of Commissioners and Bicolor Series f. Report of the Official Travel of the Board of Directors
A Shareholder, through Memo No. 1810/M/CSD/IR/ in the event of Communication to Investor through
XI/2017 dated November 15, 2017. Letter No. 1050/DIR/CSD/XII/2016 dated December
›› Progress of the Company’s share, including unusual 6, 2016.
market activities. In 2017, the Company’s Shares 2. Implementation of a Capital Markets Community
Communication Program through public exposure, that is: b. Indirect, including Annual Report, Financial Report
a. Direct, including General Meetings of Shareholders, Publication, Press Release, Website, Broadcast Media
Public Expose, Non-Deal Road Show, Investor (TV, Newspaper, Online Media), Social Media, and Emails.
Conference, Press Conference, 1-on-1 Meetings, The capital market community communications program
Group Meetings, Conference Call, Branch Visits, and conducted by the Company in 2017 are:
Branch Visits.
Date Activity Place
February 13, 2017 Analyst Meeting for Quarter III 2016 Financial Report and Press Conference Jakarta
February 16-17, 2017 Non-Deal Roadshow Jakarta
March 6, 2017 UBS Indonesia Conference Jakarta
March 9-10, 2017 CLSA ASEAN Forum Bangkok
March 17, 2017 Annual GMS Jakarta
April 17, 2017 Macquarie Indonesia Corporate Day Jakarta
April 18, 2017 Analyst Meeting for the Quarter I 2017 Financial Statement and Press Conference Jakarta
3-4 May 2017 CIMB 11th Annual Indonesia Conference Bali
8-9 May 2017 Citi Indonesia Investor Conference Jakarta
June 12-13, 2017 Macquarie emerging Leaders Conference London
July 24, 2017 Analyst Meeting for Quarter II 2017 Financial Statement and Press Conference Jakarta
August 7-8, 2017 Credit Suisse Indonesia Conference Singapore
August 8, 2017 Public Expose (Investor Summit 2017) Jakarta
August 9-10, 2017 Non-Deal Roadshow Tokyo
August 22-25, 2017 Non-Deal Roadshow USA
August 30, 2017 Public Expose (Investor Summit 2017) Surabaya
October 23, 2017 Analyst Meeting for Quarter III 2017 Financial Statement and Press Conference Jakarta
November 7-8, 2017 dbAccess Indonesia Conference Jakarta
November 16-17, 2017 Morgan Stanley Asia Pacific Summit 2017 Singapore
December 28, 2017 Extraordinary GMS Jakarta
In addition to organizing and participating in the events, in community, either with the Board of Directors or the
2017, the Company also serves the demand of meeting, Investor Relations unit. The activities are detailed as
conference call, and site visit from the capital market follows:
Analysis Investor Rating Agency Site Visit Total

Local Foreign
Jumlah 51 13 70 4 6 144
3. Disclosure of Information to the Public affect the value of the company’s securities or investors’
During 2017, the Corporate Secretary has submitted investment decisions. In addition to the above-mentioned
information disclosure to OJK and the Exchange, totaling information disclosure reports, the Corporate Secretary
268 (two hundred and sixty-eight) reports. All reports also coordinates the routing of explanations if there
are submitted within the grace period in accordance are any questions or requests on the Exchange reports
with the applicable provisions, i.e. no later than the end related to the Company or BBTN stock transactions. In
of the second (2) work day after the decision or the accordance with the Exchange Rules No. I-E, the Listed
availability of material information or facts that may Company shall provide a written response to things that

are questionable to the Exchange, no later than 3 (three) other delivery media. Throughout 2017, the Company has
Trading Days after receipt of the request for explanation provided 1 (one) response to the request of the Exchange,
the Exchange conveyed by the Exchange via facsimile or with details as follows:
Exchange's request Answer Date
Indonesia Stock Exchange Letter No. S-01507/BEI.PP3/03-

2017 dated March 20, 2017, on the Request of Explanation for Letter No. 179/DIR/CSD/III/2017 dated March 20, 2017, on the
Mass Media Reporting Response related to the Company's News Monday, March 20, 2017
4. Public Information Access Improvement a. The Government Regulation of the Republic of

Communication with the Company’s stakeholders Indonesia No. 61 of 2010 dated August 23, 2010, on
uses a one-door policy, which is coordinated by the the Implementation of Law No. 14 of 2008, on the
Corporate Secretary. The Company always facilitates Public Information Openness;
the stakeholders to access information. In addition b. Information Commission Regulation No. 1 of 2010 dated
to mass media publications, the public shall obtain June 7, 2010, on Standardized Public Information Service;
the information about the Company through the c. Law of the Republic of Indonesia No. 14 of 2008 dated
Company’s website (www.btn.co.id), as well as social April 30, 2008, on Public Information Openness.
media such as Facebook (BankBTNcoid), Twitter (@
BankBTNcoid), YouTube (officialBankBTN) and Instagram 5. Relationship with Media and Access to Information
(officialBankBTN). Corporate Secretary always strives to establish good
relationship with the mass media in the electronic (TV,
The Company consistently improve the quality of radio), printed media (newspapers, magazine), and online
information to the public, i.e. by providing Public Information media. During 2017, the Corporate Secretary has issued
Openness on the Company’s website, in order to meet the 100 (one hundred) press releases on the Company’s
following requirements: performance, business, and operations, 30 (thirty) of which
are as follows:
No. Date Activity

1 January 17, 2017 Bank BTN Targets 100 MSMEs to Go Digital in 2017
2 January 27, 2017 Bank BTN Supports the Special Economic Zones Development in Mandalika
3 February 13, 2017 In 2016, Bank BTN’s Net Income Skyrocketed 41.49%
4 February 24, 2017 Bank BTN Launched BTN Micro Housing Loan to target MBR Community and Informal Workers
5 March 3, 2017 In 2016, Bank BTN Disbursed Rp16.23 Trillion Loan in East Java
6 March 17, 2017 BTN Shared the Dividend of Rp523.8 Billion, GMS Appointed Three New Directors, BTN Increases its Performances Firmly
7 March 30, 2017 People's Representative Council Appreciates Bank BTN's Performance
8 April 17, 2017 Net Income and DPK BTN Grows Above 20% in Quarter I 2017
9 April 21, 2017 The President Inaugurates E-Retribution, the cooperation between Bank BTN with Solo Government at Klewer Market
10 May 2, 2017 Bank BTN Recorded EBA-SP 03 at Rp1 Trillion
11 June 13, 2017 Bank BTN Launched Mobile Application For Nadhatul Ulama Waqf Payment
12 June 16, 2017 May 2017, BTN Cheap Fund Increases 18.74%
13 July 13, 2017 Bank BTN is Committed to Disburse Subsidized Housing Loan and Success the One Million Houses Program
14 July 23, 2017 Loan Provides 2,126 Cheap Houses in Pekanbaru
15 July 24, 2017 Credit Growth of 18.81% & Profit Growth of 21.95% in Semester I 2017
16 July 28, 2017 Bank BTN Developed Independence of Islamic Boarding School through Fintech
17 August 20, 2017 Bank BTN Embraces MSMEs to Increasingly Use Online Transaction
18 August 24, 2017 BTN Achieve the Best Bank in Indonesia Award 2017
19 August 30, 2017 Printing Highest Closing Shares, BTN Increases the Loan in the Region
20 September 14, 2017 BTN Obtained 5 Awards in IBA 2017
21 September 20, 2017 BTN Won the Annual Report Award 2016
No. Date Activity

22 September 25, 2017 BTN Cooperates with Telkomsel to Provide Connected Financial Services
23 October 19, 2017 BTN Enters the Rank of the Best Company in Indonesia
24 October 17, 2017 Supports One Million Houses, BTN Funds 2,000 Houses in Tower Undip
25 October 20, 2017 Momentum in the Property Sector, BTN Invites Students to Become Young Entrepreneurs
26 October 23, 2017 BTN Profit Up by 24% & Reached Rp2 Trillion in Quarter III 2017
27 November 5, 2017 Serbu BTN Program Succeeded in Improving the Third-Party Funds Growth
28 December 12, 2017 Realizing Houses for the Public for 41 Years, Bank BTN Has Disbursed More Than Rp230.2 Trillion Housing Loan
29 December 19, 2017 BTN Give Housing Loan Access to Go-Jek Partners in Semarang
30 December 24, 2017 Supports One Million Houses, BTN is Ready to Disburse FLPP 2018
6. The General Meeting of the Shareholders (GMS) a. Annual GMS on March 17, 2017
The Corporate Secretary coordinates the Company’s b. Extraordinary GMS on December 28, 2017
General Meeting of Shareholders (GMS), with reference
to the Financial Services Authority Regulation No. 32/ All stages of the GMS have been executed in accordance
POJK.04/2014 dated December 8, 2014, on Planning and with the above mentioned POJK and the Company’s
Implementation of Public Company GMS. In 2017, the Articles of Association, including notices, announcements,
Company has held 2 (two) GMS, consists of 1 (one) Annual summoning of GMS, and the submission of the summary
GMS and Extraordinary GMS, i.e.: of the GMS.
Annual GMS Extraordinary GMS

Activity Friday, March 17, 2017 Thursday, December 28, 2017
Announcement to OJK, BEI, and KSEI February 1, 2017 November 14, 2017
Announcements of GMS in Newspaper, OJK website, BEI website, and the Company’s website February 8, 2017 November 21, 2017
Summoning of the GMS in Newspaper, OJK website, BEI website, and the Company’s website February 23, 2017 December 6, 2017
GMS March 17, 2017 December 28, 2017
Publication of Minutes of GMS Meeting in Newspaper, OJK website, BEI website, and the March 20, 2017 December 29, 2017
Company’s website
Submission of GMS Summary to OJK and BEI April 11, 2017 Will be submitted by January 29, 2018
7. Implementation and Documentation of the Board of On December 28, 2017, the Company held an Extraordinary
Directors’ Meeting and/or Joint Meeting with the Board General Meeting of Shareholders and approved the
of Commissioners; appointment of 1 (one) Company’s Director, i.e. Mr. Dasuki
In 2017, the Company has held 173 (one hundred seventy- Amsir. Following the appointment of the new member
three) Board of Directors’ Meeting and 34 (thirty-four) of Director, the Corporate Secretary shall conduct an
Joint Meeting with Board of Commissioners. The details orientation program in January 2018. The purpose of this
of the Board of Directors’ meetings and joint meetings orientation program is to provide a general introduction
of the Directors and the Board of Commissioners, are to the Company’s conditions so that members of the
described in the Meeting of the Board of Commissioners Board of Directors and Board of Commissioners can work
and Directors chapter on this Annual Report. together as a solid team, given their different backgrounds.
The material presented in the orientation program are as
8. The Company’s General Meeting of Shareholders dated follows:
March 17, 2017, approved the appointment of 1 (one) Board a. Reviewing the role, duties, and responsibilities of
of Commissioners’ Member, i.e. Mr. Garuda Wiko, and 3 Board of Directors and Board of Commissioners
(three) Directors’ Members, i.e. Mr. R. Mahelan Prabantarikso, b. Compliance and GCG implementation as well as Risk
Mr. Nixon L.P Napitupulu, and Mr. Budi Satria. Following Management
the appointment of the new members of the Board of c. Company culture implementation
Commissioners and Directors, the Corporate Secretary has d. The Company’s business overview
conducted an orientation program on April 4, 2017.

Evaluation of Duties Carried Out Corporate Secretary

The duties execution of the Corporate Secretary is always evaluated, among them, based on the
Key Performance Indicator (KPI). The Corporate Secretary’s KPI is part of the effort to comply
with the Financial Services Authority Regulation No. 35/POJK.04/2014 dated December 8, 2014,
and is prepared on the basis of Balanced Scorecard principles. The KPI is divided into 4 (four)
perspectives, i.e. Financial, Customer, Business Process, and Learning and Growth.
Below are the KPI of the Corporate Secretary in 2017 and the achievements of each perspective:
No. KPI Perspective Achievement

1 Corporate Profit* Financial 100.07%
2 Ratio of Operating Expenses to Operating Revenues Financial 82,06%
3 Market Capitalization Financial 447.87%
4 Cost Realization Financial 100.00%
5 Customer Satisfaction Index Customer 100.00%
6 Positive News on the First Tier Media Customer 114.91%
7 Realization of Community Development Business Process 124.91%
8 Marketing Program Implementation Business Process 100.00%
9 Communication to the Capital Market Community (Analysts and Investors) Business Process 100.00%
10 SLA to the Stakeholders Business Process 100.00%
11 The Strategic Program for Media Relations, Website, and Digital Communication Channel Business Process 559.86%
12 GRC Index Business Process 100.00%
13 Culture Assessment Index Learning & Growth 100.00%
Following up the Article 11 POJK No 35/POJK.04/2014, the Company’s Corporate Secretary has
submitted the Corporate Secretary Duties Report to the Board of Commissioners and Directors
in 2017 through:
1. Memo No. 128/M/CSD/IR/I/2018 dated January 16, 2018, on the 2017 Report of the
Implementation of Corporate Secretary Duties of PT Bank Tabungan Negara (Persero) Tbk.
2. Letter No: 24/CSD/IR/I/2018 dated January 16, 2018, on the 2017 Report of the
Implementation of Corporate Secretary Duties of PT Bank Tabungan Negara (Persero) Tbk.
Internal Control System
The Company implements the internal control system in line 1. Management Supervision and Control Culture, in which
with the regulation on Standard Guidelines of Internal Control the Board of Commissioners is in charge to ensure that
System for Commercial Banks and Best Practice of COSO the Directors has supervised the effectiveness of internal
Framework. The supervisory mechanism is stipulated by the control system. Hence, the Board of Commissioners has
Company’s management on an ongoing basis to manage and an active role in ensuring the improvement of Company’s
secure the Bank’s assets, in order to ensure the availability problem that may reduce the effectiveness of internal
of accurate report, improve compliance with the prevailing control system. Directors is responsible for stipulating
regulations, reduce the impact of financial losses, deviations policies, strategies, and procedures of internal control
(including fraud), and prudential violations, improve the system. Directors is also in charge of monitoring adequacy
organization effectiveness, and improve cost efficiency. and effectiveness of internal control system. Board of
Commissioners and Directors are responsible for improving
Internal control system is stipulated by the Company’s Board work ethics and integrity, and creating organization culture
of Commissioners and Directors through Joint Decree (SKB) No. that emphasizes the importance of the Company’s internal
SKB-04 dated July 29, 2011, on the Internal Control System control system to all Bank’s employees.
Guidelines. The guidelines refer to the regulation and are in 2. Identification and Risk Assessment are sets of actions
accordance with the internal control framework developed carried out by the Directors in order to identify, analyze,
by COSO (Committee of Sponsoring Organizations of the and assess the risks faced by the Company to achieve the
Treadway Commission). predetermined business targets.
3. Operational Segregation of Duties and Control Activity
Framework of the Company’s Internal Control System are controlled activities to assist the Directors and Board
Joint Decree of the Company’s Board of Commissioners and of Commissioners in managing and controlling risks
Directors No. SKB-04 dated July 29, 2011, on the Internal that may affect the Company’s performance or cause
Control System Guidelines. The Decree explained the losses to the Company. Control activity includes policies,
Company’s internal control component, in line with the internal procedures, and practices to provide confidence to the
control framework COSO which include: Company’s officers and employees that the directives of
1. Control environment, which is a fundamental component Board of Commissioners and Directors have been carried
in the internal control system. This component reflects out effectively. The objective of Segregation of Duties is
the nuance and atmosphere of the awareness of staff, to ensure that the person in their position does not have
officials, and leaders of the importance of effective opportunity to conduct and hide mistakes or deviations in
internal control. The control environment is heavily their duties on all level of the organization in every step
influenced by the Strong Tone at the Top. of operations.
2. Risk assessment, which is a set of employees’ awareness 4. System for Accounting/Finance, Information, and
related to the risk culture and the activities of evaluating, Communication. The system covers the methods and
assessing, and mitigating risks. records in order to identify, group, analyze, classify,
3. Control activities, which includes the adequacy of policies, record/book, and report the Company’s transactions.
provisions, procedures, and the operations’ compliance. Information System shall be able to generate report
4. Information and communication, which is a condition to on the business activities, financial condition, risk
communicate effectively, both internal and external in management implementation, and provision fulfillment
line with the respective responsibilities. that support the duties of Board of Commissioners
5. Monitoring, which is an assessment process on the and Directors. Communication System must be able
monitoring of design effectiveness, internal control to provide information to all parties, both internal and
structure operation, and management performance. external, such as Bank’s supervisory authority, external
The activity assesses that those processes are carried auditor, shareholders, and customers.
out accordingly and shall be improved within the 5. Monitoring and Deficiencies Correction are the activities
circumstances. where the Company must continuously monitor the
effectiveness of internal control implementation
The element of Bank Internal Control System as stated thoroughly. The Company prioritizes the monitoring of
in the SKB No. SKB-04 dated July 29, 2011, refers to the main risk. This also functions as part of Company’s daily
Bank Indonesia (BI) and Financial Services Authority (OJK) activities, including periodic evaluation, both carried out by
Regulations, which include: the operation task force and the internal audit task force.

“Internal Audit Division disseminated the correctly. In addition, application control should ensure
the availability of an effective audit process and accuracy
Internal Control (COSO Framework) in all of the said audit process.
Audit as a part of anti-fraud by strengthening 4. Physical Control
Physical control is carried out to ensure physical security of
the control environment of the business/ the Company’s assets. The activity covers assets security,
operational unit or the first line of defense.” limited records and access to the computer program and
data file, and comparison of values of Company’s assets
and liabilities listed in the control records, particularly
Financial and Operational Control regular assets values check.
The control activities cover several aspects, not limited to 5. Documentation
the establishment of control procedures and policies, as The Company formalizes and documents the policies,
well as verification process to ensure that the procedures procedures, systems, accounting standards, and audit
and policies are consistently adhered to. Control activities, process adequately. The documents shall be updated
specifically related to the operations and finance are applied periodically to reflect the Company’s actual operations and
on all functional level, in which the responsibilities are adapted shall be disseminated to all officers and employees. On
to the Company’s organizational structure needs. request, the documents must be available for the internal
1. Top Level Reviews audit, public accountants, and Company’s supervisory
The Bank’s Directors regularly holds coordination meeting authority. Accuracy and availability of the documents shall
to obtain the information on the Company’s performance be assessed by the internal audit while performing regular
from the executives and employees. This regular meeting and non-routine audits.
makes it possible to review the realization with the targets 6. Segregation of Duties
set, such as the financial report or management report, Segregation of Duties is a part of control activities to
which then is compared with the predetermined budget ensure that every person on their position does not have
plan. Based on the review, the Directors shall be able to opportunity to conduct and hide mistakes or deviations in
detect problem such as control weakness, faulty financial their duties on all level of the organization in every step
report, or other deviations (fraud) as soon as possible. of operations. The segregation of duties work as follow:
2. Functional Review a. Compliance with the segregation of duties, or
The review is conducted by the Internal Audit Division “Dual Control”;
monthly, quarterly, biannually, or annually, such as: b. Set the procedures (authority), including the
a. Review of risk assessment (risk profile report) by the establishment of officers who can access high-risk
risk management task force; transactions or business activities;
b. Analyze the operational data, both related to risk and c. Avoid the granting of authorization and responsibilities
finance, i.e. by verification of details and transactions to that may create various conflict of interest. All aspects
the output (report) by the risk management task force; and that may arouse such conflict of interest are identified,
c. Review the realization of work program and budget, in minimized, and carefully monitored by an independent
order to: party;
1. Identify the cause of significant deficiencies, d. The Company carries out several measures of
2. Determine the action requirement and corrective action. segregation of duties, among others:
3. Information and Technology System Control 1. To determine certain functions and tasks in the
Information and Technology System Control is carried Company that are separated or allocated to several
out by verification of accuracy and comprehensiveness persons in order to reduce the risk of manipulation
of transaction and authorization procedures, in line with of financial data or misuse of assets of the Company,
the internal provisions. Information system control can be 2. The segregation of duties is not limited to front
categorized into two criteria as follow: and back office activities , but also in the context of
a. General control covers the control on operation of data controlling approval of expenditure and realization of
center, procurement system, software maintenance, expenditures; the account of the customers and the
access security, and application system maintenance Bank owner; transactions in the Company’s books;
and development. General maintenance is applied on Providing information to Company’s customers;
the mainframe, server, and users’ workstation, as well assessment of the adequacy of loan documentation
as internal and external networks. and debtors monitoring after loan disbursement;
b. Application controls are applied to the Bank’s program other business activities that may cause a significant
in processing the transaction. The program ensures conflict of interest; and independence of risk
that all transactions are true, accurate, and authorized management function in the Company.
Evaluation of the Effectiveness of Internal Control to compile the Risk Control Assessment and Audit Rating,
System which was retested during the field audit (walkthrough).
The Company performs the evaluation of the effectiveness 2. Performance is assessed based on the achievement of
of Internal Control System or known as Internal Control real performance targets with the performance specified
Assessment (ICA) through the Internal Audit Division (IAD). in the Company’s Work Plan and Budget (RKAP).
The assessment assessed the internal control quality from
the auditee task force on 5 (five) COSO Framework internal The evaluation of the effectiveness of Company’s internal
control components, using the criteria and methodology of control system (risk control) is performed on all Head Office
Internal Control Assessment (ICA) questioner rating and (division/desk) units, 75 Branch Offices, and 24 Sharia Branch
auditor’s professional judgment through direct examination Offices. Everything related to the adequacy of internal control
(walkthrough) on the field. has been reported directly to the Board of Directors through
the President Director, and to the Board of Commissioners
The Company took several measures to ensure the effective through the Audit Committee. Follow-up measures
monitoring activities are conducted, including: have been conducted to minimize risks and overcome
1. Ensure that monitoring functions are clearly defined and emerging problems.
well-structured within the Company’s organization;
2. Establish the task force/employees to monitor the Statement of Internal Control Adequacy of the
effectiveness of internal controls; Board of Directors and Board of Commissioners or
3. Set the correct frequency for monitoring activities based on Audit Committee
the inherent risk of the Company and the nature/frequency The Board of Directors and the Board of Commissioners
of changes occurring in the operational activities; or the Audit Committee shall review the evaluation
4. Integrate SPIN to the operation and provide regular report results on the effectiveness of the Company’s internal
such as book journal, management review, and approval control system, which covers five main components of
report on the exceptions/deviations of the policies and control, i.e. Control Environment (Management Oversight
procedures set (justification on the irregularities) which and Control Culture), Risk Recognition and Assessment,
shall be reviewed; Control Activities and Segregation of Duties, Accountancy,
5. Review the documentation and evaluation results of the Information, and Communication, Monitoring Activities and
task force/employees appointed to perform the monitoring; Correction Deficiencies . Standard Guidelines of the Internal
6. Assign information/feedback in an appropriate and Control System is a guideline that contains a minimum
correct frequency. size of the Internal Control System that must be applied
and implemented by the Bank in all aspects related to the
Internal Control System and Performance Quality assesses the operation and implementation of the Bank’s operational
adequacy and effectiveness as follows: activities to create a common understanding and basis on
1. The adequacy and effectiveness of Internal Control are the level of maintenance of interests and commitment from
assessed by using the Internal Control Assessment (ICA) all parties related to the Bank.

Internal Audit Function
Layanan Digital Bank BTN

Photo source: Hasiholan Siahaan
The internal audit function is a strategic business partner function is stated on the Internal Audit Charter No. 03- SKB/
for management in optimizing the Company’s GCG DEKOM-DIR/BTN/IAD/VI/2011 dated June 30, 2011, on
implementation and providing assurance and inputs Chapter II Article 3 as follows:
independently and objectively related to the Company’s 1. Article 3 Paragraph (1) states that Internal Audit Division
internal control. The Internal Audit Division (IAD) carries out (IAD) is Internal Audit Task Force (SKAI) in the Bank’s
internal audit function such as by conducting risk-based audit organization who reports directly to President Director.
objectively and conducting consultation services, in particular, 2. Article 3 Paragraph (2) states that IAD, as referred to
those related to the improvement and enhancement of risk in paragraph (1), shall be led by a Head of Division who
management, control, and governance processes. The function reports directly to the President Director.
shall be achieved through proactive, enthusiastic, and dynamic 3. Article 3 Paragraph (3) states that Head of IAD as referred
approach, effective communication, business-oriented and to in paragraph (2) shall be appointed and discharged by
stakeholders oriented, good understanding on the root of the the President Director with the approval of the Board of
problem and high-risk area, emphasizing on quality, as well as Commissioners and reported to Bank Indonesia and Capital
practical and workable solution recommendation. Market and Financial Institutions Supervisory Agency.
4. Article 3 Paragraph (6) states that Auditor in the IAD is
Internal Audit Position in the Organization responsible directly to the Head of IAD.
Structure
Internal Audit Division (IAD) as the internal audit function is Parties Appointing and Dismissing Head of
under the supervision of President Director, as stipulated in Internal Audit
the Directors’ Decree No. 02/KD/DIR/SPMD/2015 dated May The parties who are involved in the process of appointment/
5, 2015, and is updated based on the Meeting Decision of the discharge of Head of Internal Audit is President Director,
Directors and the Board of Commissioners dated March 30, Board of Commissioners, and Financial Services Authority
2017, on the Organizational Structure of PT Bank Tabungan as regulator. In general, the appointment/dismissal process,
Negara (Persero) Tbk. In addition, the position of internal audit which describes the involvement of the said parties, is as
follows:
1. The Board of Directors conducts a fit and proper test on the candidates of Head of Internal Audit Task
Force.
2. The Board of Directors submits an application for approval of appointment/dismissal of Head of
Internal Audit Task Force to the Board of Commissioners.
3. The Board of Commissioners approves or does not approve the proposed appointment/dismissal of
Head of SKAI.
4. The Board of Commissioners and the Board of Directors submit a report of the appointment/dismissal
of Head of SKAI to Financial Services Authority as regulator.
Internal Audit
Organizational Structure President
Director
Internal Audit
Division
Reporting
Anti Fraud &
Quality Audit System Counterparty & Audit
Whistle Blowing
Assurance Development Documentation Coordinator
System
Audit
External Audit External Audit

General Concentional
Internal Audit Reporting Reporting
Audit System General Auditor
QA Monitoring & Monitoring &
Development Group
Counterparty Counterparty
Internal Audit Internal Audit

ITC Audit
ISO Certification Reporting Sharia General Reporting
System
QA Monitoring & Auditor Group Monitoring &
Development
Documentation Documentation
Special Audit &

Investigation
General Auditor
Group
Information
Communication
& Technology
Auditor Group
Regional Office
Auditor

Profile of the Head of Internal Audit

Currently, the Head of Internal Audit is Mrs. Triani Pudjiastuti, served effectively since November 13, 2017,
based on the Directors’ Decree No. 612/DIR/2017 dated November 7, 2017, on the Employees Rotation/
Promotion, and it has obtained approval from the Board of Commissioners on the Directors’ Decree No.
614/DIR/2017
Triani Pudjiastuti
Indonesian Citizen, age 55, born in Yogyakarta
Holds a Bachelor of Economics from the University of Gadjah Mada, Yogyakarta,
in 1985.
Work Experience
Started her career at PT Bank Tabungan Negara (Persero) Tbk since 1991 and she
was the Head of Finance & Accounting Division (2011 - 2017), and Head of Internal
Audit (2017-present).
Training
She has attended various training and seminar: Developing the Strategic Manager 2
by AGSM UNSW Business School, Australia , in 2016; Asset Accounting Training (PSAK
& ISAK) by the Institute of Indonesia Chartered Accountants (IAI), Jakarta, in 2017;
Workshop of Asset Accounting Implementation by PT Barka Cahaya Mediatama in
Jakarta, 2017.
Internal Audit Personnel’s Profiles (eight) members of Reporting Counterparty Documentation

The Company puts attention on the adequacy of Internal Audit Audit Department, 33 Conventional General Auditors, 7 (seven)
Division personnel’s composition to support the duties in Sharia General Auditors, 7 (seven) Special & Investigation
terms of qualification of the position to the competence. Based Auditors, 7 (seven) Information Communication Technology
on the internal workload analysis calculation, the Audit Plan Auditors, 7 (seven) Regional Office Auditors, 3 (three) members
2017 needs 90 IAD personnel. Internal Audit Division has 90 of Anti-Fraud Strategy & Whistleblowing System, and 2 (two)
people that are chaired by 1 (one) Head of Division and assisted members of Audit Committee’s Special Assignment.
by 1 (one) Secretary, 1 (one) Head of Audit Coordination. The
Division consists of 7 (seven) Quality Assurance members, 6 The Composition of Internal Audit Division based on their
(six) members of Audit System Development Department, 8 educational background can be seen on graphic as follows:
Composition of Internal Audit Division by Education
30 30
25 25
20
18
15 14
10 9
8
7 7 7
6 6
5 4
5
3
2 2
1 1 1 1 1 1 1 1 1 1 1
0
Master of
Management
Master of
Accounting
HR Management
Master of
Computer/Informatics
Master of Law
Management/
Corporate Economics
Accounting
Economic
Development Study
Master of Computer/
Informatics
Law
Taxes
Architecture
Engineering
Electric
Engineering
Mathematics
Tabiyah
Secretarial
2016 2017
In addition, the overall number of certificates of the Internal Audit Division personnel can be seen on
diagram as follows:
Certificates of the Internal 80

Audit Division personnel
70 69
2017 2016
60 57
Description :
QIA (Qualified Internal Audit), LSPP/ 50
Banking Professional Certification
Agency (certifies auditor competence 40 37
in auditor until assessor level), UKMR 32
(Risk Management Competence 30
Test), CFE (Certified Fraud Examiner),
CFrA (Certified Forensic Auditor), CA 20
(Certified Accountant), CISA (Certified 11 10
Information Systems Auditor). 10
4 4 4
1 1 1 2
0 0
QIA LSPP UMKR CFE CFrA CA CISA
In addition, the Company also established an audit team ICT activity management, Auditor’s qualification (position and
assigned to each business and operational unit. There are a competence focus), as well as class of Branch/Division/Desk.
few considerations to take into account in the preparation Establishment and adequacy of personnel will have impact
and determination of personnel in each audit team. Those are on the audit and IAD audit budget preparation. Audit team
the results of risk assessment on 14 business processes and composition assigned to each business unit is as follows:
Table: Audit Team
Business Unit Team Leader Team Member
AS SAA AA SA AG-14 AG-13
General Audit
Head Office – Division 1 2 2
Regional Offices 1 2 2
Branch Office
1. Main Class 1 2 2
2. Class I 1 2 1 1
3. Class II 1 2 1
4. Class III 1 1 1 1
Sharia Unit 1 1 1 1
ICT Audit
Application: Office Division/Desk and DTI 1 2 2
Application: Branch Office Sampling 1 1 1
Special Audit
Fraud Investigation 1 1 1 1
Special Review 1 1 2
Note: AS= Audit Superintendent (Set. Department Head - Grade 18), SAA = Auditor (Set. Assistant Manager G.14 or Assistant Manager G.13)
Senior Associate Auditor (Set. Department Head - Grade 17), AA = Associate
Auditor (Set. Manager - Grade 16), SA = Senior auditor (Set.Manager G.15), A =

Internal Audit Competence Development in 2017 and auditors on the Internal Policies and Procedures,
Every IAD personnel is facilitated and encouraged to develop certification program, education and training, workshop, and
their competence in supporting the internal audit function seminar. During 2017, the competence development that has
implementation. The competence development is conducted been carried out in the form of internal and external training
by knowledge sharing in between the Head of IAD, Directors, are as follows:
Table: Competence Development of Internal Audit Division Personnel
No Education Institution Total

National Program
Certification
1 QIA Certification Training Intermediate Level 1 and 2 YPIA 1
2 QIA Certification Training Managerial Level YPIA 1
3 CISA Preparation Examination Certification Puslikom UI 3
4 Risk Management certificate maintenance Bank BTN 4
5 UKMR Certification Level 2 LSPP 3
6 Risk Management Competence - Level 1 LSPP 10
7 CISA Exam Puslikom UI 4
Education & Training
1 Business Process Seminar Bank BTN 68
2 Sharia Financing Seminar Iqtishad Consulting 8
3 MDP Education Prasetya Mulya & Markplus 5
4 SMDP Education Prasetya Mulya 2
5 Digital Banking Education Multimatic 8
6 Leadership Education Proaktif Insani Mulia 5
7 Forensic Audit Training and Certified Auditor Certification ACFE 2
Seminar / Workshop
1 2 Days Workshop on "Fraud in Financial Transactions " Finansial Bisnis 1
2 Workshop ACFE Indonesia Chapter "Fraud in Banking Industry" ACFE 2
3 Workshop IAIB CAEs: IT Governance, IT Security, Emerging Technologies, and IT Audit Round Table Discussion IAIB 3
4 Workshop ACFE Indonesia Chapter “Digital Forensic” ACFE 2
5 Workshop ACFE Indonesia Chapter “Digital Forensic” Batch 2 ACFE 2
6 Workshop Fraud Prevention and Detection : Forensic Data Analytics ACFE 2
7 Workshop Mobile Forensic Investigation Course ACFE 4
8 National Conference IX IAIB IAIB 3
9 Workshop on Sharia Treasury Iqtishad 9
11 IIA National Conference 2017 IIA 2
12 Four Eyes Principle on the Loan Business Process HMCD 4
International Program
Seminar/ Workshop
1 IAIB-IIA International Conference Sydney, Australia IAIB 2
Guidelines for Internal Audit (Internal Audit Charter) Scope of Internal Audit
The Internal Audit Division is equipped with a Working Manual The Company’s Internal Audit Charter is stipulated in the Joint
called Internal Audit Charter, which has been compiled since Decree of the Board of Commissioners and Directors No. SKB-
2002, then updated, and finalized based on the Joint Decree 03/DEKOM-DIR/BTN/IAD/VI/2011 dated June 30, 2011, on
of the Board of Commissioners and the Directors No. SKB- Internal Audit Charter of PT Bank Tabungan Negara (Persero)
03/DEKOM-DIR/BTN/IAD/VI/2011 dated June 30, 2011. Tbk. Chapter III explains about the audit scope, among others:
Internal Audit Charter also serves as the basis of existence, 1. Article 4 paragraph (2): “IAD scope of work addresses all
implementation of supervisory duties and responsibilities of aspects and organizational activities of the Bank. Audit is
the IAD. Therefore, the Internal Audit Charter is disseminated conducted through risk-based audit approach, taking into
to all employees and related parties to encourage the internal account minimum of 8 risks referred to in Bank Indonesia
audit function effectiveness. The content of Internal Audit Regulation, namely: Loan Risk, Market Risk, Liquidity Risk,
Charter is as follows: Operational Risk, Legal Risk, Reputation Risk, Strategic
1. Vision and Mission Risk, Compliance Risk”
2. Structure and Position 2. Article 4 paragraph (3): “Under the direction of President
3. Scope Director and/or Board of Commissioners, IAD audit scope
4. Powers, Function, Duties, and Responsibilities of work addresses affiliated entities and subsidiaries that is
5. Statement of Independence Support directly or indirectly may influence the implementation of Bank”
6. Audit Responsibilities 3. Article 4 paragraph (4) : “IAD scope of work includes audit
7. Code of Conduct and Internal Auditor Requirements and assessment on risk management effectiveness,
8. Accountability and Reporting internal control adequacy and effectiveness, performance
9. Follow Up quality in carrying out responsibilities stated, as well
10. Others as governance processes effectiveness, by conducting:
Compliance audit, financial audit, operational/management
Internal Audit’s Duties and Responsibilities audit, rating audit, ICT audit, special and investigation
The Internal Audit Division has duties and responsibilities to audit, off-site monitoring or desk audit, assessment on the
assist President Director and Board of Commissioners, as security system of Bank’s treasure including resources and
well as every management level in ensuring the adequacy of fund, and ensuring the existence of Bank’s assets.
Bank internal control system. They also provide strategic and
constructive suggestions on the bank’s governance within Summary of Internal Audit Implementation in 2017
the framework of good and healthy governance with duties Internal Audit Division (IAD) has compiled the audit work
as follows: program and executed the audit activities in line with the plan.
1. Formulate operational planning as described in the audit, The work program covers the nature and scope of audit, risk
as well as monitor the follow-up of audit results assessment of business process, composition and number of
2. Make analysis and ratings in finance, accounting, personnel of audit team, effective working day of audit, the
operations, and other activities through on-site and off- length of standard audit, required number of personnel, and
site monitoring audits, including the implementation of position qualification of IAD personnel, condition qualification of
management audits for all Company’s units. IAD personnel, risk assessment, development of IAD personnel.
3. Provide enhancement suggestions and objective
information on the activities audited to every level of Internal Audit Work Plan
management. Work Program of Internal Audit Division is stated in Annual
4. Conduct examination, assessment, and identification of Audit Plan book for a 1-year working period. Work Program
every feasible way to improve efficiency and effectivity of Internal Audit Division in 2017 has been submitted to the
in finance, accounting, operations, the use of resources, President Director, based on the IAD Memo No. 15/M/IAD/
marketing, information technology, and other activities ASD/I/2017 dated January 23, 2017, on the Annual Audit
related to the bank’s operations and businesses based on Plan 2017. The Memo has been approved and signed by the
prevailing rules and legislation. President Director in January 2017. In 2017, the general audit
5. Perform tests and evaluation in order to improve/ planning (conventional and sharia), ICT audit, special and
enhance the effectiveness of risk management, internal investigation audit, as well as the execution of ISO 9001:2008
control, and governance processes. audit, are scheduled as follows:

Table: Internal Audit Work Program
Audit Object Total Change Description

2016 2017 +/- %
General Audit (AU) 123 131 8 6.50%
1. Conventional AU 96 101 5 5.21%
2. AU. Sharia 27 30 3 11.11%
3. AU. Regional Office Auditor 0 88 88 100.00%
ICT Audit 6 14 8 133.33% The focus of ICT audit in 2017 is in the areas
of:
1. Security Audit SKN-BI (Conventional)
2. Security Audit B1-RTGS (Conventional)
3. Security Audit B1-ETP (Conventional)
4. Security Audit B1-SSSS (Conventional)
5. Security Audit DHN Conventional
6. Security Audit SKN-BI (Sharia)
7. Security Audit B1-RTGS (Sharia)
8. Security Audit B1-ETP (Sharia)
9. Security Audit B1-SSSS (Sharia)
10. Security Audit DHN (Sharia)
General Audit & ICT Audit Objects 129 145 16 12.40%
Special & Investigation Audit
1. C.1. Thematic Audit 1 0 -1 -100.00%
2. C.2. Special Audit Assignment/ 0 0 0 0% There are no scheduled plans for special/
Investigation (Incident-based) investigation audit in 2016. It will follow
the assignments of stakeholders and
whistleblowing system.
Certification Audit of ISO 9001:2008 17 19 2 11.76%
Total Audit Object 147 252 105 71.43% Obyek Audit
There are 252 audit objects scheduled for general audit, ICT audit, special & investigation audit,
and certification audit of ISO 9001:2008 for 2017. This number is 105 (one hundred five) more
than the plan of audit target in 2016, which was 147 audit objects.
Internal Audit Work Program Implementation

In 2017, Internal Audit carried out the audit activities. The audit objects covered General Audit (Conventional
and Sharia), ICT Audit, Thematic Audit, ISO Audit, and Special Audit with details on the audit objects as
follows:
Table: Internal Audit Work Program
No. Description Target Realization % Realized
1 General Audit
Conventional 101 99 98,02%
Head Office – Division 23 23 100.00%
Conventional Branch Offices 65 65 100.00%
Regional Offices 2 2 100.00%
BI/OJK Mandated 8 8 100.00%
Government’s Program 3 1 33.33,%
Sharia 30 28 93.33%
Head Office – Sharia Division 1 1 100.00%
Sharia Branch Offices 22 22 100.00%
Government’s Program 2 2 100.00%
Regional Office Auditor (ROA) 88 162 184.09%
Outlet’s Thematic Audit 88 162 184.09%
Total General Audit 219 289 131.96%
2 Information & Communication Technology (ICT) Audit
Head Office Division – Audit Object 4 4 100.00%
Total ICT (Information & Communication Technology) Audit 14 14 100.00%
3 Internal Quality Audit (AMI) for ISO 9001:2008 Certification
Group Surveillance Audit 10 10 100.00%
Surveillance Department 3 3 100.00%
Surveillance Division 2 2 100.00%
Loan Services Audit ISO 1 5 1 4 6 150.00%
Total Internal Quality Audit (AMI) 19 21 110.53%
Total 252 346 137.30 %

The audit throughout 2017 resulted in 2,924 findings. These findings are increasing over the past two
years, as presented in the audit findings graph for the last 5 (five) years as follows:
Internal Audit 3.000 2.924

2.845 2.782
Findings 2.662
2.500
2.308
2.000
1.500
1.000
500
0
2013 2014 2015 2016 2017
Audit Follow Up item” shall be finished by the auditee with necessary

The auditee shall follow-up on audit findings. The follow- explanations, and will be reported by the Head of IAD to
up results shall be submitted to the Head of IAD and then Directors. Throughout 2017, there are follow-ups on audit
evaluated to ensure that the follow-up is in accordance findings from 2016 and 2017. The following table presents
with the intended audit. Complete follow-up will be the follow-up summary:
declared as ‘complete’ and informed to the auditee and
Directors. Incomplete follow up with the status of “pending
Table: Audit Findings Follow-Up
No. Audit Type Tahun 2016 Tahun 2017

Findings Finished Not Finished Findings Finished Not Finished
1. General Audit - Head Office 212 212 0 259 208 51
2. General Audit - Branch Office 1907 1907 0 1884 1651 233
3. General Audit - Sharia Branch Offices 476 476 0 580 484 96
4. ICT Audit (Information & Communication Technology Audit) 305 299 6 201 148 53
5 Internal Quality Audit (AMI) - - - - - -
6 Special Audit - - - - - -
Internal Fraud
In 2017, there were 20 cases of internal fraud with details as follows:
Table: Internal Fraud 2017
Internal Fraud Management Permanent Employee Contract Employee

Previous Year Current Year Previous Year Current Year Previous Year Current Year
Internal Fraud - - 20 16 2 4
Resolved - - 20 16 2 2
In the process of internal settlement - - - - - -
Resolution not finalized - - - - - -
Had been followed up through legal process - - 2 4 - 2
Internal Audit Assurance Review

The Company’s Internal Audit is reviewed annually to assess the compliance with the ISO 9001:2008
quality standard, as follows:
Table: Surveillance Audit Auditor for ISO 9001:2008 Certification
No. External Audit Year Description
1. PT SGS 2014 External Auditor, PT SGS, carried out the surveillance audit for ISO 9001:2008 certification
The assessment review is to assess the compliance with internal audit charter standard, code of conduct,
efficiency and effectiveness of the Internal Audit Function in fulfilling the needs of stakeholders based on the
best practices. This review is carried out by independent assessors once every 3 (three) years, as explained:
Table: Independent Assessor Related to the Audit Implementation
No. External Audit Year Description

1. PT PricewaterhouseCoopers (PWC) 2014 Review gap analysis of policies, procedures, and methodology, and audit on the SPFAIB best
practices every 3 years by External Auditor
2. PT Deloitte Touche Tohmatsu (DELOITTE) 2017 Review gap analysis of policies, procedures, and methodology, and audit on the SPFAIB best
practices every 3 years by External Auditor
Internal Audit Effectiveness management level. In the audit activity and assessment on the
The risk-based audit activities are regulated in the Company’s internal control system, IAD provides added value and improves
Internal Audit Policy have been implemented since 2004 and the quality of bank management in order to realize a healthy and
then ratified in the Board of Directors’ Regulation No. 09/PD/ developing bank, as well as the fulfillment of the bank’s interest
DAI/2008 dated April 30, 2008, on the Company’s Internal and its customer. The added value and the improvement on
Audit Policy, and amended on PD No. 08/PD/IAD/2013 dated bank governance will show the bank’s effectiveness, and
December 5, 2013. These audit activities are any form of this is proven by the decrease in audit findings in the last two
audit-related activities and reporting of audit results on the years, various achievement of the Company’s performance, and
implementation of coordinated control structures at each awards received by Company in 2017.

Compliance Function
The Company consistently performs Compliance Function, The implementation of the Company’s Compliance Function
which is a series of actions or steps that are ex-ante is stipulated in the internal Directors’ Regulation No. 8/
(preventive) to: PD/CMPD/2017 dated Thursday, December 21, 2017, on
1. Realize the implementation of Compliance Culture at all Compliance Function Implementation at PT Bank Tabungan
levels of organization and business activities of the Bank; Negara (Persero) Tbk. The Company mandates the compliance
2. Manage the Compliance Risk faced by the Bank; function implementation that falls under the responsibility
3. Ensure every policy, regulation, system, and procedures of the Managing Director Strategic, Compliance, and Risk, in
as well as business activity conducted by the Bank, is in coordination with Compliance Division, in cooperation with the
accordance with Financial Services Authority provisions, Company’s Compliance Task Force. This is agreed upon by the
and prevailing rules and legislation, including Sharia Board of Commissioners and Directors, and is stated in the
Principles; Joint Decree of the Board of Commissioners and Directors No.
4. To ensure the Bank’s compliance with the commitment SKB-01/DEKOM-BTN/VIII/2012 and No. SKB-01/DIR-BTN/
made by the Bank to Financial Services Authority and/or VIII/2012 on Compliance Charter of PT Bank Tabungan Negara
supervisory authority in charge; (Persero) Tbk.
Compliance Function Managing

Organization Chart Director Strategic,
Compliance
And Risk
Compliance
and Governance
Head
Compliance Anti Money

Compliance Corporate
Policy & Laundering
Supervisory Governance
Monitoring (AML)
Compliance
Compliance AML Strategic Strategic
Supervisory
Policy & Development Governance
Analyst Officer
Branch
Compliance
Compliance AML Transaction Governance
Management &
Supervisory Analyst Analyst
Monitoring
Officer
Sharia
AML Reporting Ethic
Compliance
& Assurance *) Management
Policy
*) Memiliki Layer 4
The organizational structure of Compliance Function is the President Director, and/or Vice President Director,
stipulated in the Directors’ Decree No. 03/DIR/DSP/2017 and/or Director who carries out other Function that may
dated April 20, 2017, as amended by Directors’ Decree No. affect their independence.
04/KD/DIR/SIPD/2017 dated May 29, 2017, on the Head 5. Every change in the Director of Compliance Function shall
Office Organizational Structure, and refers to POJK No. 46/ be reported to the Financial Services Authority.
POJK.03/2017 dated July 12, 2017, on the Compliance Function
Implementation for Commercial Banks. It also stipulates the In connection with the results of the Annual General Meeting
bank internal policies, which consist of: of Shareholders of PT Bank Tabungan Negara (Persero) Tbk.
1. Board of Commissioners has a role to actively supervise dated March 17, 2017, Mr. Mansyur S. Nasution is no longer
the Bank’s Compliance Function. serving as the Company’s Director, and simultaneously
2. Board of Directors plays a role in encouraging and is resigning from the position of Director in charge of the
realizing the Compliance Culture at all levels of the Company’s Compliance Function. In line with the result of the
organization and Bank’s business activities, and ensuring Annual General Meeting of Shareholders, to comply with PBI
the implementation of the Bank Compliance Function No. 13/2/PBI/2011 Article 9, the Company appointed and
3. Compliance Director is a member of the Board of submitted Mr. R. Mahelan Prabantarikso as Director in charge
Directors who has been approved by the Financial of Company’s Compliance Function to the Financial Services
Services Authority, to oversee the Company’s Compliance Authority with Letter No. 195/DIR/CSD/III/2017 dated March
Function and Compliance Task Force that are responsible 23, 2017, on the Submission of the Company’s Director of
for formulating strategies to encourage the Bank’s Compliance Company. dated July 19, 2017, Mr. R. Mahelan
Compliance Culture and the implementation of its tasks Prabantarikso to effectively become Director in charge of the
in ensuring the Bank’s Compliance Function. Company’s Compliance Function, based on the Fit and Proper
4. Compliance and Governance Division is a Compliance Test by the Financial Services Authority.
Task Force in the Head Office that has the duty to carry
out the Company’s Compliance Function. Duties and Responsibilities of the Directors of Compliance
Function
Director who is responsible for Compliance Function Duties and Responsibilities of the Directors of Compliance
Director who is responsible for Company’s Compliance Function Function, include:
is performed by the Managing Director Strategic, Compliance, 1. Formulating strategies to empower the Compliance
and Risk. The approval, discharge, and/or resignation of the Culture;
Company’s Director of Compliance Function shall be conducted 2. Suggesting compliance policies or other compliance
and regulated as follows: principles that shall be set forth by the Directors;
1. Approval, dismissal, and/or resignation of Director of 3. Setting compliance system and procedures that shall
Compliance Function refers to the approval, dismissal, be used to compile the Bank’s internal guidelines and
and/or resignation of member of Directors as stipulated regulations;
in Bank Indonesia Regulation concerning Commercial 4. Ensuring every policy, regulation, system, and procedures
Banks, and has passed Fit and Proper Test pursuant to as well as business activity conducted by the Bank, is in
the prevailing Financial Services Authority regulations. accordance with Bank Indonesia Regulation, Financial
2. In the event that Compliance Director is temporarily Services Authority, and prevailing rules and legislation,
unable to perform his duties, then the implementation of including Sharia Principles;
the tasks related are transferred temporarily to another 5. Managing and minimalizing Compliance Risk;
Director until the Director of Compliance is able to 6. Conducting preventive actions so that policy and/
perform. or decisions made by the Company’s Directors is not
3. In the event of the resignation or end of tenure of Director deviating from Financial Services Authority Regulation,
of Compliance Function, the Company shall appoint a Bank Indonesia Regulation and prevailing rules and
replacement of Director of Compliance Function; and legislation; as well as providing dissenting opinion if
during the process of replacement, other Director will be there is any policy and/or decision that may deviate from
assigned temporarily to perform the duty of Director of Bank Indonesia Regulation, Financial Services Authority
Compliance Function. Regulation, and prevailing rules and legislation; and
4. To meet the independence requirement, Director who 7. Carrying out other tasks related to Compliance Function,
carries out duties as Director of Compliance, shall not be including monitoring and maintaining the Company’s

Digital Smart Branch BTN

Photo source: Dedi Gunawan
compliance with commitments made by the Company to financial and accounting units, logistics units and procurement
the Financial Services Authority, Bank Indonesia, as well of goods/services and units managing information technology.
as other regulatory authorities.
8. Ensuring the Company’s Compliance Unit has been Compliance and Governance Division is led by the Head of
effective in performing the Compliance Functional duties; Division who have met the criteria as Head of Compliance Task
9. Coordinating with Sharia Supervisory Board related to the Force, as stipulated in the PBI No. 46/POJK.03/2017 dated
Compliance Function implementation on Sharia Business July 12, 2017, on the Compliance Function Implementation
Unit on Sharia Principles. for Commercial Banks. Appointment and/or dismissal of
10. Acting as coordinator in Risk Management and Head of Compliance and Governance Division shall always be
Compliance Function implementation on every Bank’s reported to Financial Services Authority with criteria stipulated
business activity to achieve Good Corporate Governance. in internal policy on compliance, which is as follows:
1. Fulfill the independence requirements as stipulated in the
Compliance Task Force applicable provisions of the Financial Services Authority;
The role of Company’s Compliance Task Force as stipulated 2. Masters Bank Indonesia Regulation, Financial Services
in POJK No. 46/POJK.03/2017 dated July 12, 2017 on the Authority, and prevailing rules and legislation;
Compliance Function Implementation for Commercial Banks, 3. Does not have any duties outside the Compliance
is carried out by the Compliance and Governance Division, Function; and
as stipulated in the Board of Directors’ Decree No. 03/DIR/ 4. Has high commitments to conduct and develop
DSP/2017 dated April 20, 2017, as amended by Directors’ Compliance Culture.
Decree No. 04/KD/DIR/SIPD/2017 dated May 29, 2017, on
Head Office Organizational Structure, the Compliance and Head of Compliance Task Force
Governance Division reports directly to the Director who Currently, the Head of Compliance Function is Mr. Sudaryo
functions as Director of Compliance, and is separated from Bagyo Utomo, served effectively since November 1, 2012,
business and operational units, risk management units that based on the Directors’ Decree No. 301/DIR/2012 dated
makes decisions on the Company’s operations, treasury units, Tuesday, October 9, 2012.
Sudaryo Bagyo Utomo

Indonesian Citizen, 53. Holds a Bachelor of Law from Diponegoro University, Semarang,
in 1987.
Work Experience
Have been a Head of Compliance and Governance Division (CMPD) since November
1, 2012. Prior to being the Head of CMPD, he had a few key positions in Company,
namely Head of Gresik Branch Office (2002-2008), Head of Restructuration and Loan
Completion Division (2008-2010), Senior Manager Compliance Policy & Monitoring
(2010-2011), Head of Compliance Policy & Monitoring Department (2011), and Head
of System Development Audit Department Head (2011-2012).
Training
He had attended training and workshop in the country, such as: Internal Control
Implementation (COSO-based) (2012), Integrating 11 (Eleven) Self-Assessment GCG
Factors as Elements to Strengthen Bank Soundness Level (2013), training abroad
is Integrated Governance, Risk Management And Compliance (2014), Training from
Banking Professional Certification Agency on Risk Management Competency for Banking
Profession Level 4 (2014), In addition, Holds a Risk Management Certification Level 4
(2014), Compliance, and AML Certification Level 1 (2015) and had attended training and
workshop in the country, such as: Banking Industry Strategy Seminar (2015), Bara Risk
Forum (2016), and 65th SESPIBANK (2016), Workshop of BTN KPKU Champion Team
(2017), English Presentation For Executive (2017), Seminar on Payment System Policy
Direction (2017), Workshop of ASEAN CG Scorecard ACGS Team (2017), Refreshment
of UKMR Level 4, 4th Batch (LSPP) (2017), Seminar of Mutual Review Assessment of
APU-PPT (2017).
Duties and Responsibilities Compliance Function Unit 6. To perform other tasks related to Compliance Function, i.e.:
Duties and responsibilities of the Compliance and Governance a. To ensure the Company’s compliance with the
Division in carrying out the Compliance function are as follow: commitment made by the Bank to Financial Services
1. To take measures in order to support the Compliance Authority and/or supervisory authority in charge;
Culture in every Bank’s business activity in every level of b. To disseminate to all employees on matters related to
organization. Compliance Function, especially on prevailing regulator
2. To coordinate with other Units in identifying, measuring, regulations;
monitoring, and controlling against Compliance Risk, c. To act as contact person in any Compliance problem for
whilst referring to Financial Services Authority Regulation the Company, both internal and external.
on Risk Management Implementation for Commercial
Banks. Compliance Function Work Program Realization in 2017
3. To assess and evaluate effectiveness, adequacy, Implementation of Corporate Compliance Function throughout
and suitability of policies, regulations, systems, and 2017, among others, are:
procedures owned by Bank or with the prevailing rules 1. One of the Directors’ Active Supervisions is ensuring
and legislation. the implementation of the Bank’s Compliance Function,
4. To review and/or recommend the update and refinement and fostering and realizing the Compliance Culture at all
of policies, regulations, systems, and procedures owned levels of the Bank’s organization and business activities.
by the Company to comply with Regulations of Bank In this regard, the Board of Directors has approved and
Indonesia, Financial Services Authority, and prevailing determined the Company’s Compliance Policy proposed
rules and legislation, including Sharia Principles. by the Director in charge of the Compliance Function,
5. To take measures to ensure that the policies, regulations, which is a guideline in the business conduct and banking
systems, and procedures, as well as the Bank’s business operations. The Board of Directors approves and
activities, are in accordance with Regulations of Bank stipulates the Compliance Procedures as proposed by
Indonesia, Financial Services Authority Regulation, and the Director in charge of the Compliance Function, which
prevailing rules and legislation. will be used to draw up Company’s internal regulations

to maintain compliance with the regulations of Financial 4. In addition to the company’s internal regulation
Services Authority, Bank Indonesia, and the prevailing draft, the Compliance Task Force also reviews
laws and regulations, including the Sharia Principles. existing internal regulations in order to ensure
2. The Board of Commissioners’ supervisory function on the consistency of policy adequacy. The focus of the
Company’s Compliance Function is to provide a review review of existing internal regulations in 2017
and approval of the Company’s Compliance Policy before is on the rules of loan and IT field, such as the
it is stipulated by the Board of Directors. improvement of the structure of loan committees,
3. Implementation of Compliance Function in Corporate loan termination mechanism, the provisions of loan
Governance. In every decision-making process and restructuring, the provision of creditors information
discussion related to the business and operations of the reporting, the preparation of self assessment of
Company conducted in the Board of Directors forum, the loan decisions on First Line of Defense, provisions
Board of Directors shall always observe the opinion of the on IT risk management, and IT policy.
compliance aspect submitted by the Director in charge b. Conduct a compliance assessment of all units of the
of the Compliance and/or Compliance Task Force that Company consisting of Divisions of Head Office, Regional
conveys the rules of the regulator related to the subject Offices and Branch Offices. This assessment is intended to
matter of the Directors’ Meeting measure the level of compliance awareness in each unit as
4. In order to promote compliance culture and ensure that well as to know the areas that will be the focus of attention
every policy, regulation, system, and procedures, as well and coaching for the improvement of aspect compliance in
as Bank’s business activity, are in accordance with the the Company as a whole and per each unit in particular.
regulators, i.e. Bank Indonesia, Financial Services Authority, 5. Implementation of Anti Money Laundering Program and
and prevailing rules and legislation, in the 2017 period, the Prevention of Financing Of Terrorism (APU and PPT) by
Bank has conducted series of activities as follows: referring to prevailing rules and legislation. In order to
a. Supporting Bank’s sustainability business growth by implement APU and PPT program, Bank has conducted
referring to the prevailing rules and legislation. There several activities described separately in the subchapter
are many steps needed to harmonize the Company’s APU and PPT.
commercial needs with the compliance with external 6. Compliance Effectiveness Improvement in Branch Offices.
regulations, namely Bank Indonesia Regulations, The Bank is committed to optimizing the Compliance and
Financial Services Authority Regulation, and prevailing Governance Division of Compliance Function in Branch
rules and legislation, including Sharia Principles for Offices in order to optimize the application of the Internal
Sharia Business Unit. In order to realize this, Bank has Control System to Compliance Awareness, i.e. through the
conducted steps as follows: Branch Compliance Supervisory Officer (BCSO), which is
1. Dissemination of regulator’s regulation to the an organ of Compliance and Governance Division in each
related work unit. The new regulatory provisions Branch Office. The main duties and functions of BCSO
have been socialized by the Compliance and are to evaluate the level of compliance and operational
Governance Division to the operational work units, conformity of the Branch Office and its subordinate
either in writing or through face-to-face media while Offices (Conventional and Sharia), both transactional and
conducting discussions with related units in order to non-transactional operations to applicable regulations.
gain a shared understanding of the newly issued In its implementation, BCSO monitors and evaluates
regulatory provisions. by sampling the implementation of Head Office policy
2. Reviewing the compliance aspects of the company’s in Branch Offices. Evaluation report will be submitted
internal regulatory draft and business and to Compliance and Governance Division and forwarded
operational policy plan to be implemented, to ensure to Branch Manager and Internal Audit Task Force in
compliance with the regulations of the Financial the Regional Office, completed with recommendations
Services Authority, Bank Indonesia, and prevailing of steps to improve in order to implement the policy
rules and legislation. In the Company’s provisions effectively. The results of the evaluation and monitoring
on Internal Procedures, it is stipulated that each conducted by BCSO are as follows:
draft of the internal regulation shall be subject to a. Evaluating the level of Branch’s operational compliance
review on the compliance aspects by the Company’s by using the Compliance Control Application (CCA) system.
Compliance Task Force. b. Monitoring the effectiveness of Bank policy
3. Reviewing the compliance aspects of the plans for implementation in Branch Offices made by Head Office.
the development and publication of new products c. Ensuring socialization of internal regulations to
and/or activities, to ensure compliance with the Branch Office officials and officers as a refreshment
regulations of the Financial Services Authority, of the provisions in order to improve understanding of
Bank Indonesia, and prevailing rules and legislation. applicable rules and regulations.
Compliance Risk Management Other Compliance Activities

Compliance risk management is carried out simultaneously in 1. In order to improve the business process continuously
order to promote compliance culture on every business activity, (Continuous improvement), Compliance Task Force, Risk
and in every level of Bank’s organization, and to mitigate the Management Task Force, and Internal Audit Task Force
Bank’s compliance risk, as described: have standardized business processes in accordance with
1. One of the impacts arising from the exposure of international standards in order to improve and change
compliance risk, is the sanctions imposed in the form of the business processes. The Compliance Task Force, Risk
penalties from the regulators in both Conventional and Management Task Force, and Internal Audit Task Force
Sharia units. Throughout the year 2017, the composition use ISO 9001:2008 certification as the international
of the types of violations are mostly sanctions in error standard. Currently, each task force has followed ISO
reporting of Debtor Information System (SID), Commercial 9001:2008 surveillance, with the result that each task
Bank Report (LBU), and Foreign Exchange Traffic (LLD) force has consistently fulfilled the requirements and
2. Based on the assessment of risks and historical data, conditions in ISO 9001:2008 standards. In 2018, the
the Bank still has the potential risk of compliance with Compliance Task Force, Risk Management Task Force, and
a significant highest risk, i.e. related to the reporting Internal Audit Task Force are planning to participate in ISO
activity of debtor information, the Bank’s periodic report Recertification to update ISO 9001:2008 Certification to
to the regulator and the reporting of Foreign Exchange ISO 9001:2015 Certification.
Traffic related to foreign currency transactions. 2. The Company improves the quality of Combine
3. Related to the fine potential as referred to above, Bank Assurance implementation, initiated by Control Unit
has set preventive and corrective action effective in order (Risk Management Division, Compliance and Governance
to mitigate compliance potential risk, i.e. significant fine Division, and Internal Audit Division) and other task
imposition of SID, LBU, and LLD from Bank Indonesia in forces with the objective to improve the internal control
the next period, namely: function in all operational aspects of the Bank through
a. Reporting debtor information in 2018 through the SLIK- the ‘Zero Tolerance to Fraud and Zero Defect’ program.
OJK system has been centralized at the headquarters. The implementation refers to the Anti-Fraud Strategy for
The verification and control of data can be monitored Commercial Banks, as stipulated in the Bank Indonesia
standardly before it is sent to the regulator. Circular Letter No. 13/28/DPNP dated December 9, 2011.
b. A monitoring application system has been developed The ‘Zero Tolerance to Fraud and Zero Defect’ Program
to identify the completeness of customer/debtor in 2017 is implemented through the preventive action
data from each branch that becomes the object of of awareness and the socialization of the program itself
monitoring of Head Office to the branches as the on the Branch Offices and Regional Offices. Awareness
owner of the data. Data that has been confirmed by its or dissemination of Zero Tolerance to Fraud and Defect
completeness through the application system will be program in 2017 has been conducted in numerous
sent to the regulator. prioritized Branch Offices, based on the operational
c. Reviewing and changing the organizational structure potential risk and fraud risk (based on historical data).
and changes to the Job Description on the Division 3. Implementation of Integrated GRC (Governance Risk
that manages Reporting of Debtor Information to and Compliance) in the Company. In line with the Bank’s
Regulators at Head Office by adding special units transformation blueprints, i.e. achieving integrated GRC
with duties related to monitoring and Reporting SLIK with the governance practices, risk management, and
Debtor Information to OJK. compliance practices in an integrated manner, the GRC
d. Analyzing the adequacy of personnel in a special unit will be implemented in 3 stages (waves):
of Debtor Information Reporting at Head Office, and ›› Wave 1 Initial Implementation of Integrated GRC
the fulfillment of human resources according to the ›› Wave 2 Refinement of Integrated GRC
sufficiency analysis result, as the report has been ›› Wave 3 Matured GRC
conducted in a centralized manner covering from all
debtors in the branch office of Company As an implementation on Wave 1 (in 2017), the Company
e. To optimize internal control in coaching the officers in performs:
the form of reprimand, coaching, and mentoring to the ›› Formulation and implementation of Governance, Risk,
Branch Office both conventional and Sharia, who makes Compliance, Corporate Culture, and Anti-Fraud.
mistakes in the submission report of SID/LBU/LSMK. ›› Joint socialization by the Compliance Task Force, Risk
f. To map the completion of mandatory loan requirement Management Task Force, Internal Audit Task Force, and
data in reports to SID/LBU by the business unit and the Human Resources management to Branch Offices.
coordinated with the supporting unit. ›› Assessment of GRC Index and reassessment of the
needs of context, corporate culture, and stakeholders.

In the GRC Index Assessment, the assessment will use the Along with the issuance of Financial Services Authority
tools of Key Performance Indicator, Key Risk Indicator, and Key Regulation No. 12/POJK.01/2017 on the Implementation
Compliance Indicator and the assessment will be performed on of Anti Money Laundering and Counter-Financing of
each task force. Each task force will have a GRC Index, which is Terrorism in the Financial Services Sector, and Financial
an indicator of the implementation of integrated governance, Services Authority Circular Letter No. 32/SEOJK.03/2017
risk management, and compliance aspects. on Implementation of Anti Money Laundering and Counter-
Financing of Terrorism in the Banking Sector, the Company
Human Resources Quality Improvement has issued internal regulations on APU and PPT which are
Throughout 2017, the education and training to improve the the Company’s guidelines in implementing anti-money
management of Company’s compliance functions are: laundering and counter-financing of terrorism programs.
1. Workshop Business Of Conduct. 2. Active Board of Commissioners’ Supervision. In order
2. Refreshment of Monthly Reports of Commercial Banks to carry out supervision, the Board of Commissioners
and Foreign Exchange Flows actively participates in providing supervision, among
3. 3rd Verifying Staff Training at Branch Offices others, by giving approval on policies and procedures for
4. ITP Prioritization Portfolio Workshop APU and PPT Programs implementation proposed by the
5. Executive Development Program (EDP) 2017 Board of Directors.
6. Integrated GRC Implementation Workshop and 3. In encouraging effective implementation of the APU and
Work Program Compilation of GRC Index & Awarding PPT Programs, the Company has an information system
Assessment 2017 that can effectively identify, analyze, monitor, and provide
7. Focus Group Discussion with Indonesian Financial reports, and will continue to improve continuously in
Transaction Reports and Analysis Center (INTRAC) accordance with applicable regulatory changes and the
8. Workshop on PSAK 71 Implementation Plan Bank’s experience. In 2017, the Company has been carrying
9. Workshop on Preparing Access Change of ID Level out the development and refinement of APU and PPT
(SKALA) Management Information and Reporting System, which has
10. Rules Regulatory and Rule Making Mechanism Workshop been used in Branch Offices and Head Office. The application
11. Training to Prepare for Upgrade/Recertification of ISO development process has started since January 2017 and it
9901:2008 to ISO 9901: 2017 went live in April 2017 at Branch Offices and Headquarters.
12. Banking Readiness Workshop In Facing Financial The Company will continue to evaluate the evaluation and
Technology Industry develop the information system on a regular basis.
13. Digital Bank Development Workshop 4. The Company conducts sustainable training related to
14. Seminar for young bankers a skills revolution in the APU and PPT programs by:
human age a. Face-to-face with the Branch Manager, Service Quality
15. HIMBARA Logistic Workshop 2017 Unit Head/DBM Business, Sub-Branch Head, Cash
16. Good corporate governance and effective boards Office Head, Priority Banking, Customer Service, and
17. Business process re-engineering workshop and loan Teller Service at several Branch Offices.
marketing and service strategy b. Performing Sharing Module Implementation on Anti
Money Laundering and Counter-Financing of Terrorism
Anti-Money Laundering (APU) and Prevention of Programs in the Knowledge Management System
Financing Of Terrorism (PPT) Programs (KMS) that can be accessed by all employees.
The Company always conducts APU and PPT program in c. Conducting Training through E-Learning media, i.e. the
customer detection activity whilst referring to the prevailing Customer Due Diligence Micro Film to All Frontliner and
rules and legislation. In order to anticipate the money laundering the Person Responsible for APU and PPT at Branch
and financing of terrorism, the Company implements APU Office, and conducting evaluation.
and PPT Program as to detect the customer’s activity whilst 5. In order to fulfill the reporting obligations to the Indonesian
referring to the prevailing rules and legislation The Company Financial Transaction Reports and Analysis Center, the
has conducted APU and PPT Program, such as: Company has submitted reports, among others:
1. Active Directors’ Supervision. One of the Directors’ Active a. Cash Transaction Report (LTKT) and Suspicious
Supervisions is to ensure that the Company has a Policy Transaction Report (LTKM).
and Procedure for the Implementation of Anti Money b. International Fund Transfer Instruction Report (IFTI)
Laundering and Counter-Financing of Terrorism Program. c. Reporting to Law Enforcement Officials and Regulators.
Risk Management Function
Risk Management Function has a big role and responsibility in 1. Implementation of risk management that not only focuses
the Company’s internal control system, in particular, related on the development and simulation of risk measurement
to risk assessment component in the COSO internal control and capital, but also focuses on developing a risk awareness
framework. culture among Company employees as well as the Ex Ante
function to minimize risk exposure. As a result, the risk
In addition, there are other provisions concerning Risk management policies determined can be implemented in
Management Functions set forth in the Financial Services daily business and operational activities at all levels.
Authority Regulations (POJK) No. 18/POJK.03/2016 on the 2. Formulation of Risk Management policies and procedures
Implementation of Risk Management for Commercial Banks, 3. Developing a risk management information system, i.e.
and Financial Services Authority Circular Letter (SEOJK) No. 34/ ICR (Internal Credit Rating) for commercial loans and
POJK.03/2016 on the Implementation of Risk Management for enhancement of the Loss Event Database (LED) for
Commercial Banks, which also serves as a reference for the operational risk.
Company’s risk management. 4. A stress testing for Credit Risks has been conducted once
a year, stress testing for Market Risks once a year and
Risk Management Policies and Procedures stress testing for Liquidity Risks 4 (four) times a year
The Company has policies in the field of risk management, i.e. to measure the Company’s resilience to stress/critical
the Risk Management Policy Manual (PKMR), which covers scenarios.
the minimum provisions required by Bank Indonesia/Financial
Services Authority Regulations. The PKMR has been reviewed Roles of the Board of Commissioners and Directors
regularly at least once a year by the Board of Directors and in the Company’s Risk Management System
Board of Commissioners by refining the risk management Board of Commissioners has clear duties and responsibilities,
policy manual. A re-review of internal policies is also carried among others:
out to be in line with the regulator’s latest provisions by 1. Endorse the Risk Management policy, including the Risk
conducting a gap analysis and accommodating the common Management strategies and framework set in accordance
best practices used in the banking industry to increase risk with the risk appetite and risk tolerance; Directors’
management quality. Regulation No. 11/PD/RMD/2016 dated December 30,
2016, on PT Bank Tabungan Negara (Persero) Tbk Risk
Company’s Risk Management System Management Policy Manual.
The risk management system is designed to support the 2. Board of Commissioners and/or KOPAR has discussed
Company in realizing sound business management and and evaluated risk profile quarterly.
achieving sustainable growth, thus optimizing stakeholder 3. Evaluate the accountability of the Board of Directors and
value. The Company adopts a comprehensive approach to periodically providing direction for improvement in the
managing risks comprehensively, improving performance in implementation of Risk Management policies. Evaluation
managing uncertainty, minimizing threats, and maximizing is conducted in order to ensure that the Board of
opportunities without neglecting the principles of risk Directors has managed the Company’s risks and activities
management that at least include: effectively.
1. Active supervision by the Board of Commissioners and 4. Risk profile is submitted to the Board of Commissioners
Board of Directors. and Risk Monitoring Committee on a quarterly basis as
2. Adequacy of policies, procedures, and limit set an evaluation material for the implementation of risk
3. Adequacy of the risk identification, measurement, management policies and risk management strategies.
monitoring, and control process, as well as the Risk
Management information system Board of Directors has clear duties and responsibilities, among
4. A comprehensive internal control system others:
In addition, the Company’s risk management strategy is 1. Compile Risk Management policy, including the strategy
adjusted to the Company’s Business strategy. The Risk and framework of Risk Management in writing and
Management Strategies are implemented to support the comprehensively. The policy shall include the risks limit
Company’s business development in the future, among others and type of risks, taking into account the risk level faced
through: and risk level tolerance on the capital adequacy. After

obtaining approval from the Board of Commissioners, the q. Risk Operational Report (LED/Loss Event Database)
Directors stipulated policy, strategy, and framework of reported by the RMD to Directors.
the said Risk Management; r. Directors’ Circular Letter No. 03/DIR/RMD/2016 dated
a. Directors’ Circular Letter No. 33/DIR/RMD/2012 dated January 22, 2016, on the Stress Testing Implementation
July 31, 2012, on Guidelines for Formulating Bank Risk Guidelines.
Profile. 2. Developing, establishing, and updating procedures as a
b. The Board of Directors compiles, sets, and updates tool to identify, measure, monitor and control risks;
the procedures, measures the Company’s soundness a. Directors’ Regulation No. 11/PD/RMD/2016 dated
included in the risk profile, i.e. in the Directors’ December 30, 2016, on PT Bank Tabungan Negara
Regulation No. 06/PD/RMD/2015 dated June 1, 2015, (Persero) Tbk Risk Management Policy Manual (PKMR).
on Self-Assessment of the Company’s Soundness. 3. Preparing and establishing the mechanism for approving
c. Directors’ Regulation No. 08/PD/RMD/2015 dated transactions including those that exceed limits and
June 26, 2015, on the Risk Management Committee. authority for each hierarchy;
d. Directors’ Regulation No. 04/PD/RMD/2016 dated a. Board of Directors has set risk limit and risk
April 27, 2016, on the Amendment to the Board of maximum, taking into account the experiences,
Directors Regulation No. 08/PD/RMD/2015 on the risk management capabilities, human resources,
Risk Management Committee. Regulations of Bank Indonesia/OJK, and good
e. Circular Letter No. 30/DIR/RMD/2015 dated August 25, prudential banking practices.
2015, on the Guidelines for Risk Data Collection for the b. Risk limit determination by the Business Task Force
BTN-Loss Event Database Application (BTN-LED Tool). to then recommended to the Risk Management Task
f. Directors’ Circular Letter No. 48/DIR/RMD/2016 dated Force. This will be submitted for Directors’ decision.
November 4, 2016, on the Amendment to the Board c. There is a classification of authority limits in
of Directors’ Circular Letter No. 30/DIR/RMD/2015 termination of loan at Branch Offices and Head Office
dated August 25, 2015, on the Guidelines for Risk per position level.
Data Collection for the BTN-Loss Event Database d. There is a classification of authority limits in treasury
Application (BTN-LED Tool) transaction per position level.
g. Directors’ Circular Letter No. 41/DIR/RMD/2015 dated e. There is a classification of authority limits in authorizing
October 5, 2015, on the Guidelines for Implementing and fiat payment at Head Office and Branch Offices
the Liquidity Risk Measurement Process. per position level.
h. Directors’ Circular Letter No. 60/DIR/RMD/2015 dated 4. Evaluating and/or updating Risk Management policy,
December 28, 2015, on the Market Risk Measurement strategy, and framework at least once a year or more
Guidelines. frequently in the event of changes in the factors
i. Directors’ Circular Letter No. 63/DIR/RMD/2015 significantly affecting the Company’s business activities,
dated December 30, 2015, on the Interest Rate Risk risk exposure, and/or risk profile;
Management in the Banking Book. a. In December 2016, Directors’ Decree No. 11/PD/
j. Directors’ Circular Letter No. 10/DIR/RMD/2017 dated RMD/2016 dated December 30, 2016, on PT Bank
March 27, 2017, on the Policy and Procedure for Risk Tabungan Negara (Persero) Tbk Risk Management
Culture Implementation. Policy Manual is stipulated.
k. Directors’ Circular Letter No. 11/DIR/RMD/2017 dated b. Memo RMD to PPD No. 408/M/RMD/SRM/XI/2017
March 30, 2017, on the Policy and Procedures of Risk dated November 29, 2017, at the Request of risk
and Control Self-Assessment (RCSA). management internal policies approval.
l. Directors’ Circular Letter No. 18/DIR/RMD/2017 dated c. Directors’ Circular Letter No. 41/DIR/RMD/2015 dated
April 3, 2017, on the Policy of Business Continuity October 5, 2015, on the Guidelines for Implementing
Management (BCM) and Standard Operating Procedure the Liquidity Risk Measurement Process.
(SOP) of Business Continuity Plan (BCP). d. Directors’ Regulation No. 10/PD/TRSD/2015 dated
m. Directors’ Decree No. 08/SK/DIR/RMD/2017 dated August 8, 2015, on the Liquidity Monitoring Manual.
May 16, 2017, on Risk Appetite and Risk Tolerance, e. Directors’ Circular Letter No. 48/DIR/TRSD/2015
Credit Concentration on 50 Core Debtors 2017. dated November 5, 2015, on the Guidelines to Compile
n. Directors’ Circular Letter No. 45/DIR/RMD/2017 Contingency Funding Plan.
dated August 14, 2017, on Risk Profile Guidelines and 5. Establishing organizational structure including clear
Assessment at Branch Offices and Sharia Branch Offices. authority and responsibility of every position level related
o. Monthly Credit Risk Exposure Monitoring reported by to the implementation of Risk Management;
the RMD to the Directors. a. Directors’ Regulation No. 11/PD/RMD/2016 dated
p. Weekly Liquidity Risk Monitoring reported by the RMD December 30, 2016, on PT Bank Tabungan Negara
to the Directors. (Persero) Tbk Risk Management Policy Manual.
b. Board of Directors has stipulated a regulation through submitted to the Board of Commissioners using the
Directors’ Regulation on risk management organization, Company’s Quarterly Risk Profile Report.
which consists of a Risk Management Committee 8. Ensure the implementation of refinement measures for
and Divisions supporting the implementation of risk problems or deviations in business activities through:
management i.e. RMD as the Risk Management Task a. Provide guidance on the regular Follow-up Monitoring
Force, internal control by the IAD, Credit Risk Desk as Report of the internal/external audit findings by the
an effort to improve commercial loan business process IAD to Board of Directors.
through the implementation of the four eyes principle b. Evaluate the last year follow-up on audit findings on
and compliance by the CMPD as the Compliance Task the Audit exit meeting.
Force, including the authorities and responsibilities for c. Audit Committee’s Meeting.
each unit. 9. Developing a culture of Risk Management including
6. Responsible for the implementation of Risk Management risk awareness at all levels of the organization, such as
policy, strategy, and framework that has been approved adequate communication to all levels of the organization
by the Board of Commissioners, and evaluate and provide on the importance of effective internal controls;
direction based on reports submitted by SKMR including a. To develop the Risk Management and risk awareness
risk profile report; As part of the responsibility, Board of culture, Directors has conducted:
Directors provides direction, among others, on reports 1. Internalization of risk management culture to all
submitted by RMD, namely: employees, in accordance with Directors’ Circular
a. Bank Risk Profile reported on a quarterly basis. Letter No. 10/DIR/RMD/2017 dated March 27,
b. Liquidity Risk Position Monitoring Report submitted on 2017, on the Policy and Procedure for Risk Culture
a weekly basis. Implementation.
c. Credit Risk Exposure Monitoring Report submitted on 2. Some Employees received the questioner survey
a monthly basis. of RCMA and RMMA Implementation, that are sent
d. The Liquidity Risk Stress Testing has been carried out through Memo No. 392/M/RMD/SRM/XI/2017
4 times, i.e. reported through the Risk Profile Report dated November 16, 2017, the RCMA and RMMA
Quarter IV/2016, Quarter I/2017, Quarter II/2017, Implementation
Quarter III/2017 jointly with the Market Risk and Credit 3. Deliver messages on risk culture using SMS and
Risk Stress Testing reported to the OJK. Email Blast.
e. The Credit Risk Stress Testing is carried out at least 4. Socialization of Risk Culture through the body
once a year. It has been conducted one, in December email of employee’s salary statement to raise risk
2017 jointly with the Liquidity Risk and Market Risk awareness for all Company’s employees.
Stress Testing, this was also reported to the OJK. 5. Signing of Risk Culture Statement of the Board of
f. The Credit Risk Stress Testing is carried out at least Commissioners and Directors dated September 28,
once a year. It has been conducted once, in December 2017, that stated the Board of Commissioners and
2017 jointly with the Liquidity Risk and Market Risk Directors fully support and are responsible for the
Stress Testing, this was also reported to the OJK. Risk Culture implementation.
g. The Branch Office operational risk monitoring report b. As part of developing a risk management culture, the
and evaluation (BTN-LED) is submitted to the Board of Board of Directors ensures the availability of:
Directors. 1. Risk management certification and refreshment for
7. Ensure that all material risks and impacts caused by the Company’s employees and officers.
respective risk have been followed up and periodically 2. Risk management training for new employees.
submit an accountability report to the Board of 10. Compiling risk awareness program that includes 6 (six)
Commissioners. The report includes a progress report and themes as follow:
issues related to material risk as well as the improvement a. Socialization by the head of task force related the
measures that have been, are being, and will be carried out; Directors’ Circular Letter No. 10/DIR/RMD/2017 dated
a. Based on the Company’s risk profile, the significant March 27, 2017, on the Policy and Procedures of Risk
types of risks are credit risk, liquidity risk, and Culture Implementation.
operational risk. With the Company’s risk profile b. Incorporate risk management as a mandatory material
report, a position monitoring, liquidity monitoring for all training.
report, and credit risk exposure monitoring report, the c. Delivering messages on risk awareness through SMS
Board of Directors ensures that relevant task forces and corporate email
follow up on the recommendations in the reports so d. Socialization of risk management through BITNIZ
that credit risk, operational risk, and liquidity risk can bulletin/Paras magazine.
better managed. e. Developing risk management devices as the risk
b. The development of significant risk profile shall be management practices by task forces.

11. Ensuring sufficient financial support/budget and d. Directors’ Decree No. 03/KD/DIR/SIPD/2017 dated
infrastructure to manage and control risk through April 20, 2017, on the Head Office Organizational
approval of CBP 2017. Structure of PT Bank Tabungan Negara (Persero) Tbk.
a. Provide directives on CBP 2017 and RBB 2017-2019,
which is submitted to the Directors at the Joint Meeting Risk Monitoring Committee
of the Board of Commissioners and Directors dated Risk Monitoring Committee has duties and responsibilities to
November 15, 2016, and grant approval of CBP 2017, provide recommendation to the Board of Commissioners by
which is submitted through Board of Commissioners’ evaluating Company’s risk management policies, evaluating
Letter No. 132/KOM/BTN/XI/2016 dated November the compliance of the Company’s risk management policies
15, 2016, on the PT Bank Tabungan Negara (Persero) with the implementation, and monitoring and evaluating the
Work Budget and Plan (CBP) Fiscal Year 2017. Risk Management Committee. The Risk Monitoring Committee
b. Provide directives on CBP 2017 and RBP 2017-2019 to has been described on the Organs and Committees Reporting
be adapted in line with the Minister of SOE Letter No. Directly to the Board of Commissioners.
S-901/MBU/D5/11/2016 dated November 22, 2016,
on the Follow-Up of Minister of SOE Letter No. S-513/ Risk Management Committee
MBU/08/2016. The directives are stated in the Board Risk Management Committee (KMR) plays an active role in
of Commissioners’ Letter No. 134/KOM/BTN/XI/2016 providing recommendations to the President Director related
dated November 22, 2016, on the Adjustment of CBP to the risks attached to the policies to be stipulated by the
Draft of PT Bank Tabungan Negara (Persero) Tbk 2017. Board of Directors, and providing an evaluation of the provisions
c. Provide direction for the adjustment of CBP 2017 and deemed less appropriate to the latest developments and in
RBB 2017-2019 at the Joint Meeting of the Board of need for adjustment. KMR is actively involved in conducting
Commissioners and Directors dated November 29, risk assessments inherent in each new product and/or service/
2016, and grant approval of the CBP 2017 and RBB activity so that the Company can perform the necessary
2017-2019 through Board of Commissioners’ Letter mitigation measures and evaluate Risk Management Policy
No. 142/KOM/BTN/XI/2016 dated November 29, Manual (PKMR). The Risk Management Committee is described
2016, on the Bank’s Business Plan (RBB) 2017-2019 on the Committee Reporting to the Board of Directors chapter.
Approval of PT Bank Tabungan Negara (Persero) Tbk.
d. Grant approval on the CBP 2017 Revision and RBB Risk Management Task Force
2017-2019 Revision through Board of Commissioners’ The Enterprise Risk Management Division (RMD) is a Risk
Letter No. 76/KOM/BTN/VI/2017 dated June 13, 2017, Management Task Force (SKMR) of the Company, led by
on the Bank’s Business Plan (RBB) Revision Approval the Head of Division who directly reports to the Managing
2017-2019 in the form of Company’s Work Budget Director Strategy, Compliance, and Risk. The Enterprise Risk
and Plan (CBP) Revision 2017 of PT Bank Tabungan Management Division’s Organizational Structure consists
Negara (Persero) Tbk. of the Market Risk Management Department, Credit Risk
12. Ensuring that the Risk Management has been Management Department, Operational Risk Management
implemented independently, this is reflected among Department, and Strategic Risk Management Department.
others by separating the functions between the SKMR
performing the identification, measuring, monitoring
and controlling risk with the unit performing and settling
“Since February 4, 2016, the Enterprise
transactions. Risk Management Division (RMD) in the
a. Directors’ Regulation No. 11/PD/RMD/2016 dated
December 30, 2016, on PT Bank Tabungan Negara
implementation of management activities has
(Persero) Tbk Risk Management Policy Manual. implemented and achieved ISO 9001:2008
b. Memo RMD to PPD No. 408/M/RMD/SRM/XI/2017
dated November 29, 2017, at the Request of risk
certification and is committed to upgrading
management internal policies approval. the certification to ISO 9001:2015 in 2018.”
c. Board of Directors ensures that the risk management
functions are implemented independently on
the business and IAD task force. RMD as a Risk Risk Management Organizational Structure
Management Task Force (SKMR) has carried out its The organizational structure of Risk Management is stipulated
function as Risk Manager, that identifies, measures, in the Directors’ Decree No. 02/KD/DIR/SPMD/2015 dated
monitors and controls risks and business task force/ May 5, 2015, and last amended by Directors’ Decree No. 03/
unit/operational task force as the Risk Owner, must KD/DIR/SIPD/2017 dated April 20, 2017, on the Head Office
report or inform the risk exposure on their respective Organization Structure as follows:
task force to the RMD.
Direktur Strategy,
Compliance & Risk
Enterprise Risk
Management
Division Head
Market Risk Credit Risk Operational Risk Strategic Risk

Management Management Management Management
Market Risk Credit Risk Operational Risk Policy Quality

Policy & Procedure Policy & Procedure Policy & Procedure Assurance
Market Risk Credit Risk Operational Risk

Assessment & Assessment & Assessment & Unit Basel
Measurement Measurement Measurement
Risk Management
Support &
Reporting
The Market Risk Management Department functions to ensure Market Risk and Liquidity Risk
management effectiveness. The Credit Risk Management Department serves to ensure Market
Risk and Operational Risk management effectiveness. The Operational Risk Management
Department serves to ensure Operational Risk, Legal Risk, Strategic Risk, Compliance Risk and
Reputational Risk management effectiveness. Each Department Head is assisted by the Policy
and Procedure Task Force and Assessment and Measurement Task Force.
The Strategic Risk Management Department serves to coordinate and ensure the risk
management integration process through strategic planning, performance assessment and
providing incentives to increase shareholder value, increase investor confidence, support
decision making and improve capital usage efficiency.
Profile of the Head of Risk Management

The Head of Enterprise Risk Management Division and concurrently the Risk Management
Committee’s Secretary is Mr. Sahat Sihombing since August 1, 2018, based on the Directors’
Decree No. 353/DIR/2017 dated August 1, 2017.

Sahat Sihombing
Indonesian Citizen, age 52, born in Medan on October 23, 1966.
Has a Bachelor degree in Planning Engineering from Bandung Institute of Technology,
1990, and Magister Management of IPPM University, Jakarta, in 1992.
Work Experience
Started his career at PT Bank Tabungan Negara (Persero) Tbk since 1991. Served a few
key positions, i.e. Head of Branch Office Class I Jakarta Cawang (2013-2014) and Head
of Tangerang Main Branch Office (2014-2016), Head of Wealth Management Division
(2016-2017) and Corporate Strategic & Performance Division (2017).
Training
He had attended various training and seminar, among others: Mandya Manager
Education 16, the Best Graduate, LPPI (2002); IT Services Management as the key,
LAPI-ITB (2010); Level 3 Risk Management Certification by BSMR (2011); Refreshment
of Level 3 Risk Management by LSPP (2015); 66th Sespibank 66 by LPPI (2017); Level
3 General Banking Certification by LSPP (2017); etc.
Risk Management Division HR Certification Program

The Company fulfills the HR competence of Risk Management Division through training or certification in risk
management as an effort to improve risk management quality. The table below lists the training and certification for
Risk Management Division HR in 2017:
Table: 2017 Risk Management Division HR Certification Program
Certification Program Organizer Participant
UKMR Level 1 LSPP 10 people
HR Development in Risk Management Sector Risks Faced by the Company

The Company has carried out the HR development program There is 8 risks type faced by the Company, and they are in the
for risk management officers, and the program includes all inherent risk category as explained below:
employees (in accordance with job specification) particularly
RMD, in the context of risk management certification. The Credit Risk
Company conducts in-house training and pre-tests as a Credit Risk is a loss risk due to other party failure to fulfill their
preliminary screen for officers and employees who will take obligations. Credit Risk includes Credit Risk due to debtor’s
the risk management certification examination held by LSPP failure, Credit Risk due to the concentration of fund provision
(Banking Professional Certification Agency). (Credit Concentration Risk), counterparty credit risk, settlement
risk, and country risk. Credit Risk may be originated from
The Company regularly conducts education and training and various Company’s business activities. In addition to loan, the
actively engages its staff and officials in seminars related to risk Company faces Credit Risk from various financial instruments,
management. The Company also involves several employees such securities, acceptances, interbank transactions, trade
and officials in risk management task force to attend Master’s finance transactions, exchange and derivative transactions,
degree programs in risk management and banking and finance. and commitment and contingent liabilities.
Market Risk risks can result from weaknesses in the strategy formulation
This risk occurs on the balance sheet and off-balance sheet process and inaccuracy in the strategy formulation, inadequate
positions, including derivative transactions, due to overall management information systems, inadequate internal and
changes in market conditions, including the risk of changes external environmental analysis results, the determination
in the option price. Market Risk includes Interest Rate Risk, of overly aggressive strategic objectives, inaccuracy in
Exchange Rate Risk, Equity Risk, and Commodity Risk. Interest implementation strategies, and the failure to anticipate
rate risk, exchange rate risk, and commodity risk may be changes in the business environment.
originated from trading or banking book’s position. Equity Risk
may be originated from the trading book’s position. Compliance Risk
Compliance Risk is a risk due to the failure of the Company in
Liquidity Risk complying with and/or implementing the laws and regulations
This risk occurs due to the inability of the Company to meet in force. Compliance Risk may originate from, among other
its maturing obligations from cash flow funding sources things, the behavior of the law, i.e. The Company’s activity or
and/or from high-quality liquid assets that can be pledged, behavior that deviates from or violates the provisions and/or
without disrupting the activities and financial condition of the regulations and the organization’s behavior, i.e. the Company’s
Company. Incapability to obtain cash flow source funding may behavior or activities that are deviant or contradictory from the
incur Liquidity Risk, which may be caused by: generally accepted standards.
1. Incapability to generate cash flow from productive asset
and asset sale including liquid assets; and/or Reputational Risk
2. Incapability to generate cash flow from fund collection, Reputational risk is a risk due to a declining level of
inter-bank transactions, and received loans. stakeholder’s trust that is a result of negative perceptions of
the Company. Reputation Risk may originate from Company’s
Operational Risk various business activities as follows:
Operational risk is the risk due to insufficient and/or failed 1. events that have adversely affected the Company’s
internal processes, human error, system failure, and/or reputation, such as negative publicity in the mass media,
external events affecting the operations of the Company. violations of business ethics, and customer complaints; or
Operational Risk may be originated from HR, internal process, 2. other matters that may lead to Reputational Risks, such
system and infrastructure, and external events. as weaknesses in corporate governance, corporate
culture, and business practices.
Such Risk Sources may cause events that adversely affect the
Company’s operations. Thus, the emergence of these types Risk Management Efforts
of Operational Risk events is a measure of the success or As a Bank that mainly focuses in the field of providing loans or
failure of Risk Management for Operational Risk. The types of financing housing, the Company’s asset portfolio is dominated
Operational Risk events can be classified into several types by Housing Loans (KPR) which is affected by changes in the
of events, such as internal fraud, external fraud, labor and external business climate, such as inflation and BI Interest
workplace safety practices, customers, business products Rate. The attempts to minimize the negative impact of the
and practices, physical asset damage, business activity and business are conducted through day to day risk management
system failures, and process and execution errors, including activities, on the basis of Good Corporate Governance (GCG)
fraud arising from money laundering and terrorism financing principles to guarantee all the processes and mechanisms
activities. involved in achieving the objectives of the Company, prevent
the Company from irregularities and risks that can lead to
Legal Risk failure to achieve company objectives, as well as on the basis
Legal Risk is Risk due to lawsuits and/or weakness of juridical of prudence principle to ensure that the Bank’s performance
aspect. Legal risks may result from the weakness of the growth is sound and sustainable.
juridical aspect caused by the engagement weakness of the
Company, the absence and/or amendment of the laws and The Company is one of the Systemic Banks. As one of the
regulations which cause a transaction to be inconsistent with efforts to prevent and handle the crisis of the financial system,
the provisions, and the litigation process, either arising from especially on Systemically Important Bank issues, the Company
a third party lawsuit against the Company or the Company must be able to determine the plan when experiencing the
against a third party. financial stress that may endanger the business continuity.
The action plan is stipulated in the form of Recovery Plan, in
Strategic Risk line with POJK N. 14/POJK.03/2017 dated April 4, 2017. The
Strategic Risk is a risk due to inaccuracies in the decision making Company has prepared a Document Recovery Plan, which
and/or implementation of strategic decisions and the failure includes the Trigger Level (for prevention, recovery, and repair
to anticipate changes in the business environment. Strategic purposes). Every indicator of Recovery Options in Recovery

Plan includes, among other: Indicators of Capital, Liquidity, As a part of managing market risk, the Company has identified,
Profitability, and Asset Quality. measured, monitored and controlled market risk, this is carried
out by the business unit and/or Enterprise Risk Management
Credit Risk Management Division. One of the identifications for market risk is performed
As a part of credit risk management, the Company regularly for each product or activity that is included in the category of
reviews and updates its Risk Management Policy Manual and new product or activity.
Loan and Financing Policy Manual for Bank loans and financing
as part of the risk assessment process. Credit Risk exposures In order to measure interest rate risk in the trading book and
are monitored since the loan approval process until the maturity banking book positions, the Company conducted a sensitivity
of the loan. Credit risk monitoring and control include evaluating analysis aimed at measuring the impact of changes in market
credit risk exposure to credit risk limit (Risk Appetite & Risk interest rates on the Company’s net income (loss) and equity.
Tolerance), establishing Internal Credit Rating application, and In order to measure the exchange rate risk, the Company
implementing four eyes principle by establishing Credit Risk conducted a sensitivity analysis aimed at measuring the impact
Desk (CRD) for commercial loan in analyzing from risk side of exchange rate changes on the Company’s profit (loss).
loans including restructuring. CRD consists of Head Office CRD,
Regional Credit Risk Head (RCRH), and Branch Credit Risk Head. For the banking book position, the Company measures the
In addition, a Monitoring Department was established in the interest rate risk in the banking book by using the repricing gap
Commercial Lending Division (CMLD) to specifically monitor the method as contained in Directors’ Circular Letter No. 63/DIR/
major debtors loan exposure (50 core debtors). Credit risk control RMD/2015 dated December 30, 2015, on the Interest Rate Risk
for consumer loans is carried out through iLoan Consumer i.e. Management in the Banking Book. The Company has developed
completing the application with the Credit Scoring Model (CSM). an IRRBB measurement/application system to conduct the
The debtor management for consumer loan (Kol-2) and non- measurement of interest rate risk in the banking book.
performing loan (NPL) is carried out by Consumer Collection
and Remedial Division (CCD), equipped with Desk Call unit and In order to measure the market risk with standard method
CCRU unit in Branch Offices. Asset Management Division (AMD) and sensitivity analysis, the Bank conducts stress testing to
manages billing of debtors in arrears for more than 360 days assess the Company in facing extreme changes in interest
(consumer & Commercial credit), debtor transfer (Novation, rates and exchange rates, with reference to the provisions of
Cessie), and auction. the regulator and the Company’s internal scenarios. For the
Company’s internal scenario, in the beginning of each year,
As a follow up to the implementation of Pillar 1 of Basel II, the Enterprise Risk Management Division coordinates with
the Bank has implemented credit risk measurement by using the Working Group Stress Test (relevant Division) to formulate
the Standardized Approach in accordance with OJK Circular scenarios and assumptions to be used in the implementation
Letter No. 42/SEOJK.03/2016 dated September 28, 2016, on of the Market Risk Stress Test for the upcoming year.
the Guidelines for Calculating Risk Weighted Assets (RWA) for
Credit Risk by using the Standard Approach. In order to control or limit exposure to market risks, the Company
has set a limit that includes treasury transaction limits, dealer
Market Risk Management limits, budget loss limits and stop loss/stop gain limits. In
Market risk management at the Company is generally aimed addition, the Company has also set Net Open Position (NOP) limits
at minimizing the negative impact of changes in market corresponding to the maximum limit specified in PBI No. 17/5/
conditions on the assets and capital of bank. In accordance with PBI/2015 dated May 29, 2015, and the Fourth Amendment of
regulations and considering that Company has consolidated PBI No. 5/13/PBI/2003 on Net Open Position for Commercial
with its subsidiaries, market risk management only includes Banks to control or limit exchange rate risk exposures.
the management of interest rate risk and exchange rate risk.
The interest rate risk managed by the Company mainly derives In order to calculate market risk for Minimum Capital
from the banking book positions and a small portion comes Requirement (KPMM), the Company measures market risk
from trading book positions. On the other hand, the exchange using standard methods as regulated by the regulator. The
rate risk managed by the Company almost fully derives from portfolio calculated in the determination of market risk KPMM
the banking book position. consists of trading book portfolio for interest rate risk and
trading book and banking book portfolio for exchange rate risk.
In relation to market risk management, the Company has
an Asset and Liabilities Committee (ALCO). ALCO regularly Liquidity Risk Management
discusses, among others, interest rates and market risk As part of managing liquidity risk, the Company has an Assets
management of the Company, especially those originated from and Liabilities Committee (ALCO), to manage liquidity and
the banking book position. regularly discuss the liquidity risk management in the Company.
For guidance in managing liquidity risk, the Company has near miss, or potential loss from each risk event. The data will
Liquidity Risk Management Policy Manual, which is part of be converted into Top 10 risk. As a result, the data collected
the Company’s Risk Management Policy Manual (PKMR). The will be processed and analyzed to identify the operational risk
Liquidity Risk Management Policy Guidelines include active exposure map for each Branch Office and Regional Office. This
supervision by the Board of Commissioners and Directors in map of exposure is a reference in preventing the occurrence
managing liquidity risk, liquidity risk management processes, of similar events by taking steps to improve existing business
as well as the policies, procedures and liquidity risk limits. processes or by adding other forms of risk mitigation.
Referring to the Liquidity Risk Management Policy Manual, the The Company has developed Risk and Control Self-
Company identifies, measures, monitors and controls liquidity Assessment (RCSA) policies based on Basel II. The RCSA uses
risk. The identification of liquidity risk is basically intended to risk management process references in ISO 31000: 2009 as
determine the amount and trend of liquidity needs and sources its approach. RCSA policies and procedures are supported by
of funding available to meet the needs. web-based RCSA applications and must be implemented in all
work units, Head Office, Regional Offices, and Branch Offices
Measurement of liquidity risk in the Bank is conducted by the as a means of identification, measurement, monitoring, and
Treasury Division (TRSD) and the Risk Management Division controlling operational risk of task forces.
(RMD). The liquidity risk measurement uses 4 (four) methods,
i.e. stock-based, maturity profile analysis, cashflow projection Operational Risk mitigation will be carried out by all units at
and stress testing. The stock-based method is used to measure the Bank. Compliance with policies and procedures is a form of
liquidity risk in the Company using liquidity ratio, maturity Operational Risk mitigation. The Enterprise Risk Management
profile analysis method used to measure liquidity gap and Division ensures that the Company has sufficient risk
cashflow projection is used to measure the total and liquidity management policies and procedures to carry out transactions
need trend. The Company conducts stress testing using Bank and activities in an accurate, efficient and timely manner. The
Specific Crisis (BSC) scenario and General Market Crisis (GMC) Company has appointed Branch Compliance Supervisory
stress tests, aimed at measuring the adequacy of liquid assets Officer (BCSO) at the Branch Office with the following duties
available and the Company’s ability to meet the needs of and responsibilities:
liquidity in a crisis situation. In the beginning of each year, the 1. Evaluate the compliance level of task force with the rules
Enterprise Risk Management Division coordinates with the and regulations and SOPs that apply in performing the
Working Group Stress Test (relevant Division) to formulate operations (transactions and non-transactions) at Branch
scenarios and assumptions to be used in the implementation Offices (conventional and Sharia).
of the Liquidity Stress Test for the upcoming year. 2. Conduct analysis and evaluation of compliance violations
to subsequently submit the proposed coaching to the
The Company monitors liquidity risk on a regular basis, relevant Division, and the submission of a review of the
conducted by TRSD and RMD, to manage liquidity risk. Liquidity applicable provisions.
risk monitoring by RMD shall be submitted to the Board of 3. Coordinate with relevant task forces and the Internal/
Directors on a weekly report. External Auditors in the compliance evaluation and audit
implementation.
In order to maintain the availability and sufficiency of liquid 4. Monitor the follow-up of completion and/or improvement
assets as well as to control or limit exposure to liquidity of compliance evaluation result or audit findings.
risk, the Company has set limits that include minimum 5. Provide opinion of compliance with Branch Office
Secondary Reserves (SR) and maturity gap limits. In measuring operations that require compliance opinion based on
Liquidity Risk, the Company has provisions on Liquidity Risk Branch Office request.
measurement method which is an effort to build a Liquidity 6. Cultivate a culture of compliance and risk awareness
Risk Management Information System.
The Company is currently formulating the Business Continuity
Operational Risk Management Management (BCM) policy to guarantee the Company’s
The Bank has a BTN-Loss Event Database (BTN- LED) operations in carrying out business and providing service for
that functions as operational risk data collection in Branch customers. The formulation of BCM policy aims to ensure that
Offices (KC) using the risk event criteria based on Basel II the Company can continue business activities and customer
(7 risk event types) for implementing the risk management services in the event of disasters, including disruption to
process, particularly the operational risk. BTN LED application information systems technology. To further facilitate the
is connected with Branch Office so in its reporting, Branch understanding of employees related to the BCM policy, the
Office can send data loss event online through web-based Company has prepared socialization materials in the form
media every month. BTN LED output is the accumulated data of video, which contains prevention procedures, disaster
of Company’s losses in one month, in the form of actual loss, response, post-disaster procedures, even the process to

return to normal condition. To support and measure the policy 3. Perform monitoring function of management and
effectiveness, the Company have prepared a pilot or simulation completion of principal loan document at Branch Office to
plan as a continuous improvement material in order to adjust comply with the stipulated policy.
to the development of existing business processes. 4. Communicate the key policies and issues related to LGD’s
task in risk management that arise from the legal aspects
Legal Risk Management of the Company’s operations.
Legal Risks are identified in factors causing the risk including
lawsuits and weaknesses in the juridical aspects attached to Strategic Risk Management
credit functional activities (financing), treasury and investment, Strategic Risk is identified based on the Strategic Risk factors
operational and services, information systems technology and in certain functional activities such as credit, treasury and
MIS, and human resource management. investment as well as operations and services through a
business plan formulated by the Corporate Strategy and
The Company carries out the identification of Legal Risk based Performance Management Division (SPD) as an elaboration
on risk factors that include lawsuits and the existence of juridical of the Board of Directors’ General Policy (KUD).
aspects of weakness. Legal Risk Measurement is carried out
by Enterprise Risk Management Division (RMD), Legal Division Strategic Risks are measured based on the Bank’s performance
(LGD), and Credit Operation Division (COD). LGD obtained the i.e. by comparing actual results with the targets set. Strategic
evaluation report on the analysis of individual legal cases Risk is periodically monitored by the Corporate Strategy &
against contingent liabilities arising from lawsuits. COD obtained Performance Management Division (SPD) by monitoring the
the quality of credit document engagement (LAT). Key Performance Indicators (KPI) achieved and the Enterprise
Risk Management Division (RMD) monitors the risk exposure
Legal risks are jointly measured by the Risk Management compared to the Company’s risk appetite. Afterwards, the
Division (RMD), Legal Division (LGD), and COD, based on Board of Commissioners, Board of Directors and Divisions will
the analysis and evaluation report on individual legal cases review the strategies by focusing on business transformation,
against the contingent liability arising from the lawsuits. The infrastructure, and HR.
indicators/parameters used to measure Legal Risks include
potential loss due to lawsuits, weak engagement due to the The Enterprise Risk Management Division will then monitor
failure to meet the official requirements of the agreement and Strategic Risk by comparing the expected results against the
changes to the laws and regulations causing the Company’s actual results, evaluate unit performance and ensure that
products to be incongruous with the existing provisions. target objectives are met.
Legal Risks are monitored by the RMD by evaluating the The Corporate Strategy and Performance Management
effectiveness of policies, procedures and compliance with Division (SPD) analyses the gap between the actual report
policies, regulations and bank limits. Monitoring is routinely and the business plan target in controlling Strategic Risks, the
carried out for Legal Risk positions. The LGD provides division also informs the steps to be periodically taken by the
legal input and recommendation for all divisions and units Board of Directors.
and conducts a periodical review on the agreements and
partnership contracts with counterparties to control Legal Compliance Risk Management
Risks. In addition, the Company has a Legal Report Information The Company through its Legal Division (LGD) has provided a
System (LRIS) application that is designed in the form of a special portal called Internal Access Management Standards
website and is used to register and monitor criminal and non- (AIMS) to facilitate all units to gain access to the internal
criminal legal cases occurring or handled by the Company, provisions of the Company. The Company has assigned a
hence the progress of all cases occurring in the Branch office Branch Compliance Supervisory Officer (BCSO) in the Branch
or the head of the can be monitored. Office to evaluate the level of compliance with the transaction
flow and the Company’s non-operational transactions to
The Company appointed a Regional Legal Representative (RLR) determine whether it is in line with the prevailing regulations,
in the Regional Offices, with duties and responsibilities, among provisions or SOP.
others:
1. Monitor and manage potential legal issues in the The Compliance Division (CMPD) will create a list of the
operations that may harm the Company in accordance Company’s liabilities to external parties and continuously
with its authority by providing legal opinion, legal review the internal provisions to ensure that it remains
consultation, and legal watch function. relevant to the applicable external provisions, this is done to
2. Handle legal issues arising in the Regional Offices and identify and monitor compliance risks. In addition, the CMPD
Branch Offices as a result of or related to the Company’s will monitor events that pose a Compliance Risk and will
operations in all judicial bodies in Indonesia. inform this matter to the Enterprise Risk Management Division
(RMD). The CMPD will monitor and report the Compliance Risks To monitor Reputational Risk and ensure that customer
incurred to the Board of Directors of the Company at any given satisfaction is maintained, the Company’s SPN (Customer
time or periodically at the time the Compliance Risk occurs. Complaint System) serves to support the service management
Compliance Risks are measured against the potential loss and online handling of customer complaints between parties
caused by non-compliance and the bank’s failure to meet the related to the issues in the Branch Office and the Head Office.
prevailing external provisions. The indicators/parameters used In addition, Reputational Risk is monitored by the Enterprise
to measure Compliance Risks include the type, significance, Risk Management Division (RMD) unit by reminding and
and frequency of violations against the prevailing provisions providing recommendations for improvements by the CSD and
or the Company’s compliance track record, behavior basing SQND based on the assessment on the reputational risk profile
the violation, and violation against the commonly applicable parameter to the Reputational Risk Management Division.
standards.
In controlling Reputational Risk, the Corporate Secretary
The RMD and CMPD control Compliance Risk by evaluating the Division is responsible for the implementation of policies
effectiveness of Compliance Risk management by periodically relating to the handling and settlement of negative publicity
monitoring all types of activities that potentially incur a or avoiding counterproductive information and performing
Compliance Risk. the Public Service Obligation (PSO) function to implement
Corporate Social Responsibility (CSR). Corporate Social
Reputational Risk Management Responsibility activities are not only focused on charity
All employees, including business unit management and activities, but also in the form of other social programs. SQND
Company’s supporting activities, are part of the Risk immediately follows up customer complaints and resolves it
Management implementation structure for Reputation Risk, in accordance with the predefined SLA to control Reputational
taking into account that the result of Company’s business Risk related to customer complaints.
activities is the reputation. The Management role of the
Business Unit is to identify the Reputational Risk that occurs Improving and Refining Risk Management
in the business or activities of the unit and as a front liner As a Bank that mainly focuses in the field of providing loans
in building and preventing Reputational Risk, particularly and financing housing, the Company’s asset portfolio is
related to customer relationships. Reputational Risks are dominated by housing loans (KPR) which are affected by
identified from the risk factors inherent in the functional changes in the external business climate, such as inflation and
activities that include transparency (disclosure requirement), BI Interest Rate. Efforts to minimize the negative impact of
customer complaints regarding Company services, behavior of risk management needs to be done on an ongoing basis with
Company employees in serving customers, and the Company’s the principles of Good Corporate Governance (GCG). To ensure
communication system. In order to identify reputation risk that business processes are able to achieve the company’s
process, the Company has SPN (Customer Complaint System) objectives and to prevent deviations and risks that can lead
application and conducts monitoring on all mass media (both to failure to achieve the company’s objectives, it is necessary
local and national, printed and electronic). The Company to base the process on the prudent principles to ensure that
records every Company’s news, either directly (straight news) the growth of the Company’s performance is sound and
or indirectly (mention). SPN application is integrated with sustainable. The Company has conducted socialization of risk
the Branch Offices and Contact Center. Service Quality & culture to Regional Office I, II, III, and IV by inviting Branch
Network Division (SQND) as the SPN administrator will follow Offices and Sharia Branch Offices, attended by the Head of
up and resolve customer complaints in accordance with the Branch Offices to improve the Risk management culture.
predefined SLA. In addition, the RMD reviews the issuance of At the end of 2017, the Company disseminated RCMA and
new products and activities for identification purposes. RMMA surveys to the employees to measure the Company’s
risk culture maturity and risk management.
Reputational Risk measurement is carried out based on the
assessment of the factors affecting the Company’s reputation Target and Strategic Initiatives for the Implementation
including customer complaints and negative press about the of Risk Management in 2017
Company. The Company’s Reputational Risk is managed by Target and strategic initiatives related to the implementation
the Corporate Secretary Division (CSD) unit, which manages of risk management in 2017 as follows:
the coverage on the Company that was published in print and 1. Implementation of risk management that not only
electronic media, and the Service Quality & Network Division focuses on the development and simulation of risk
(SQND) that manages customer complaints. The Service measurement and capital, but also focuses on developing
Quality & Network Division (SQND) is in charge of reporting to a risk awareness culture among Company employees as
Bank Indonesia and Financial Services Authority. well as the Ex Ante function to minimize risk exposure. As

a result, the risk management policies determined can be 1. The Liquidity Risk Stress Testing has been carried
implemented in daily business and operational activities out 4 times, i.e. reported through the Risk Profile
at all levels. Report Quarter IV/2016, Quarter I/2017, Quarter
2. Formulation of policies and procedures for risk II/2017, Quarter III/2017.
management in 2017, as follows: 2. The Credit Risk Stress Testing is carried out at least
a. Board of Directors’ Circular Letter No. 10/DIR/ once a year. It has been conducted one, in December
RMD/2017 dated March 27, 2017, on the Policies and 2017 jointly with the Liquidity Risk and Market Risk
Procedures for Risk Culture Implementation Stress Testing, this was also reported to the OJK.
b. Board of Directors’ Circular Letter No. 11/DIR/ 3. The Credit Risk Stress Testing is carried out at least
RMD/2017 dated March 30, 2017, on Policy and once a year. It has been conducted once, in December
Procedures of Risk and Control Self-Assessment 2017 jointly with the Liquidity Risk and Market Risk
(RCSA) Stress Testing, this was also reported to the OJK.
c. Board of Directors’ Circular Letter No. No. 18/DIR/
RMD/2017 dated April 3, 2017, on the Policies of Basel Implementation
Business Continuity Management (BCM) and Business To implement risk management and anticipate the
Continuity Plan (BCP) Standard Operating Procedure implementation of Basel II, specifically pillar 1, the Company
(SOP) has implemented the following:
d. Board of Directors’ Decision No. No. 08/SK/DIR/ 1. Credit risk measurement by using the Standardized
RMD/2017 dated May 16, 2017, on Risk Appetite and Risk Approach, in line with OJK Circular Letter No. 42/
Tolerance of the Concentration in 50 Core Debtors 2017 SEOJK.03/2016 dated September 28, 2016, on the
e. Board of Directors’ Circular Letter No. No. 45/DIR/ Guidelines for Calculating Risk Weighted Assets (RWA) for
RMD/2017 dated August 14, 2017, on Guidelines and Credit Risk by using the Standard Approach.
Rating of Risk Profile of Branch Offices and Sharia 2. Standardized Model for market risk in accordance with OJK
Branch Offices Circular Letter No. 38/SEOJK.03/2016 dated September
f. Board of Directors’ Circular Letter No. 62/DIR/ 8, 2016, on Guidelines for the Use of Standard Methods
RMD/2017 dated November 21, 2017, on the in the Calculation of Minimum Capital Requirement for
Guidelines of CSM process implementation Commercial Banks by Calculating Market Risk.
g. Board of Directors’ Circular Letter No. 77/DIR/ 3. Calculating the minimum capital adequacy requirement
RMD/2017 dated December 27, 2017, on the using the Basic Indicator Approach for operational
Guidelines of ICR process implementation risks in accordance with OJK Circular Letter No. 24/
h. On Progress Review of Directors’ Regulation on the SEOJK.03/2016 dated July 14, 2016, on the Guidelines for
Risk Management Implementation Guidelines (PPMR), Calculating Risk Weighted Assets (RWA) for Credit Risk by
including risk appetite and risk tolerance management using the Standard Approach.
of the Company (2018) The Company implements the Basel III, i.e.:
i. On Progress Review Board of Directors’ Circular 1. Calculate and report Liquidity Coverage Ratio (LCR) to
Letter No. 11/DIR/RMD/2017 dated March 30, 2017, regulator, monthly and quarterly, in accordance with POJK
on Policy and Procedures of Risk and Control Self- No. 42/POJK.03/2015 dated December 23, 2015, on
Assessment (RCSA) (2018) Adequacy of Liquidity Coverage Ratio for Commercial Banks.
j. On Progress Review Board of Directors’ Circular Letter 2. Calculate and report trial of Net Stable Funding Ratio
No. No. 18/DIR/RMD/2017 dated April 3, 2017, on the (NSFR) quarterly to regulator, in accordance with POJK
Policy of Business Continuity Management (BCM) and No. 50/POJK.03/2017 dated July 13, 2017, on Adequacy
Business Continuity Plan (BCP) Standard Operating of Net Stable Funding Ratio for Commercial Banks.
Procedure (SOP) (2018) 3. Calculate and report trial of Leverage Ratio (LR) quarterly
k. On Progress policy formulation of Key Risk Indicator to regulator, in accordance with LR Consultative Paper.
(KRI) (2018) 4. Calculate buffer in the calculation of minimum capital
l. On Progress formulation of Circular Letter on requirement, i.e.:
Integrated Risk Management (2018) a. Conservation Buffer, in line with article 6 of POJK
m. On Progress formulation of Internal Rules draft on risk No. 11/POJK.03/2016 dated January 29, 2016, on
model validation framework (2018) Minimum Capital Requirement for Commercial Banks
n. Development of Enhancement Loss Event Database b. Countercyclical Buffer, in accordance with PBI No.
(LED) for operational risk, Development of Liquidity 17/22/PBI/2015 dated December 23, 2015, on the
Monitoring Application, and Development of IRRBB Mandatory Countercyclical Buffer Determination
Measurement Application. c. Capital Surcharge for Systemic Banks, in line with POJK
o. Stress testing to assess the Company’s resistance to No. 46/POJK.03/2015 dated December 23, 2015, on
stress/crisis scenario: the Determination of Systemically Important Bank and
Capital Surcharge, and the letter of determination for affect the Company’s financial position. Quality Assessment
bucket for Systemic Bank, submitted by the regulator. of Risk Management Implementation is an assessment of 4
(four) interrelated aspects, which consist of risk management,
Risk Profile Assessment risk management framework, risk management process,
The Company always assesses the risk profile through adequacy of human resources, and adequacy of management
assessment of inherent risk ratings and quality rating of risk information system, and adequacy of risk control system.
management implementation to determine the Company’s
risk rating. Inherent Risk Assessment is an assessment of Based on the results of the Company’s self-assessment on
the inherent Risks in the Company’s business activities, both the Company’s soundness, the Company’s Risk Profile is
quantifiable and non-quantifiable, which may potentially as follows:
No. Risk Profile Quarter IV/2017 Quarter IV/2016

Risk Management Risk Management
Inherent Risk Rating Quality Rating Risk Ratings Inherent Risk Rating Quality Rating Risk Ratings
1 Credit Risk Low to Moderate (2) Satisfactory Low to Low to Satisfactory Low to
(2) Moderate (2) Moderate (2) (2) Moderate (2)
2 Market Risk Low Satisfactory Low Low Satisfactory Low

(1) (2) (1) (1) (2) (1)
3 Liquidity Risk Low to Moderate (2) Satisfactory Low to Low to Satisfactory Low to
4 Operational Risk Low to Moderate (2) Satisfactory Low to Moderate Satisfactory Low to
(2) Moderate (2) (3) (2) Moderate (2)
5 Legal Risk Low to Moderate (2) Strong Low Low Satisfactory Low
(1) (1) (1) (2) (1)
6 Strategic Risk Low Satisfactory Low Low Satisfactory Low

(1) (2) (1) (1) (2) (1)
7 Compliance Risk Low to Moderate (2) Satisfactory Low to Low to Satisfactory Low to
8 Reputational Risk Low to Moderate (2) Satisfactory Low to Low Satisfactory Low
(2) Moderate (2) (1) (2) (1)
Composite Rate Low to Moderate (2) Satisfactory Low to Low to Satisfactory Low to
Evaluating the Effectiveness of the Risk Company’s financial position. Quality Assessment of Risk
Management System Management Implementation is an assessment of 4 (four)
Enterprise Risk Management Division, as the Risk Management interrelated aspects, which consist of risk management,
Task Force, regularly evaluates the effectiveness of the risk risk management framework, risk management process,
management system through a risk profile report by using adequacy of human resources, and adequacy of management
risk profile tools, which includes risk management for credit information system, and adequacy of risk control system.
risk, market risk, liquidity risk, operational risk, compliance risk,
legal risk, reputational risk and strategic risk on a quarterly Risk Management Information System Adequacy
basis. As stipulated in the POJK No. 18/POJK.03/2016 on the In the early stages, the risk management information system
Risk Management Implementation for Commercial Banks, is focused on the collection and improving the quality of the
and OJK Circular Letter No. 34/SEOJK.03/2016 on the Risk risk database. The expectation is to gradually develop and
Management Implementation for Commercial Banks, the risk apply the database into the risk management information
profile report includes assessment of Inherent Risk and Quality system for an integrated and timely presentation of the risk
Assessment on the Risk Management Implementation in the measurement and risk monitoring process. The Company
Company. is currently developing an Internal Credit Rating (ICR) for
commercial loan and enhancement Loss Event Database (LED)
Inherent Risk Assessment is an assessment of the inherent to support the collection of loss event information occurring
Risks in the Company’s business activities, both quantifiable in Branch Offices to identify the risks occurring in the KC for
and non-quantifiable, which may potentially affect the follow up and mitigation.

Adequacy of the Risk Identification, Measurement, the Risk Appetite Framework (RAF). The RAF is the formal
Monitoring and Control Process and systematic basis for formulating risk management
The risk identification measurement, monitoring, and control policy, taking into account the capacity of risk (capital)
is carried out by the Risk Management Unit, in this case, the owned by the Bank.
RMD, which has an assessment and measurement unit to 3. Improve the operational risk management capabilities,
identify and measure each risk. Risk management and control among others, by strengthening the internal provisions
are carried out periodically to mitigate significant risks to the regulating the Loss Event Database (LED), Risk & Control
Company. Self-Assessment (RCSA), and Business Continuity
Management (BCM). In addition, to expand the
Strategy/Policy Direction of Risk Management for operational risk management capability, the Company
the next 1 (one) year compiles provision of Key Risk Indicator (KRI) and IT Risk
Objectives of Enterprise Risk Management: Management, and implements IT application/system to
1. Creating a system or mechanism for the company to support RCSA implementation.
anticipate and manage risks in order to increase and 4. Improve loan decision process and build effective risk
maintain the Company’s value. scoring model by enriching/extending the capability of
2. Encouraging management and employees to act Internal Credit Rating (ICR), Credit Scoring Model (CSM),
proactively to reduce the risk of loss, making risk Development of Probability of Default (PD) model, Loss
management as a competitive advantage and corporate Given Default LGD), and EAD as part of the implementation
performance advantage. of PSAK 71. In addition, the Company develops a risk
3. Developing the ability to socialize risk understanding and model validation framework, including credit risk, and
maintaining the Company’s risk management. establishes the Limit of Authority to Terminate Credit
4. Improving the Company’s performance by providing risk Lending Authority.
level information as outlined in the risk map that is useful 5. Enhance the capability of liquidity and market risk
for management in the development of strategies and management, i.e. by intensifying monitoring on Core
improvement of risk management process continuously Customer concentration, Liquidity Coverage Ratio (LCR),
and sustainably. and Net Stable Funding Ratio (NSFR).
6. Establish strong governance structures to enhance risk
Bank’s Risk Management Target: culture, among others, by developing internal provisions
1. Human resources with insight and risk culture, sustainable related to risk management implementation guidelines
and planned development pattern. from self-assessment methodology of Bank Soundness
2. Support the achievement of CBP 2018 and continuously internalizing the implementation of risk
3. Improve and maintain risk profile and Company’s culture.
soundness at the desired level. 7. Establish a risk information system by developing and/or
4. Optimize Company’s KPMM and maintain it at the desired strengthening IT system applications, which cover:
level. a. Credit Risk Datamart
To achieve these objectives, each task force needs to implement b. Enhancement of Liquidity Risk Monitoring Application
the risk management as stipulated in this provision. In order to c. Enhancement of IRRBB Application
realize the objectives of the risk management implementation, d. Bloomberg Terminal
with reference to the strategic transformation blueprint e. BCM web-based application
2016-2020, in particular, to strengthen the comprehensive f. Integration of LED, KRI, RCSA Applications
implementation of GRC, the Bank develops strategic and work g. Application of Risk Management Integration:
plans related to the risk management implementation with a ›› TKB: GCG, Risk Profile, Capital, Rentability
1-year strategy and work plan as follows: ›› Risk Profile of Task Forces (Division, Regional Office,
1. Strengthen the risk capability, among others, by restaffing HR’s Branch Offices)
risk management task force and increasing the RMD and the ›› Monitoring of Recovery Plan
Company’s HR Competence, in relation to risk management. In order to support/optimize the implementation of the above-
2. Establish a clear risk appetite & tolerance and clear mentioned strategy, RMD plans to upgrade the certification
strategy by developing, implementing, and disseminating from ISO 9001:2008 to digitalized ISO 9001:2015.
External Audit Function
BTN Salurkan Dana KPR Rp 5,9 Triliun Dalam IPEX 2017

Sumber foto: Prayogi
The Company holds the accountability of management The appointment of Public Accountants and Public Accountants
information and data in order to fulfill the reporting Firm is conducted through limited tender procurement for
responsibilities to the stakeholders and as a matter of general audit services, and the tender participants have to
consideration to determine the appropriate strategic and policy meet the criteria as follow:
measures to maintain the business continuity of the Company. 1. The Public Accountants Firm is ranked in the top
External auditor needs to be able to provide accountable, 10 (ranking by the official association of the Public
independent, and reasonable information and data, especially Accountants Firm).
related to the financial, operational, and compliance aspects 2. Has an affiliation certificate with the International Public
of the prevailing legislation. Accountants Firms.
3. Has experiences in performing general audit to Public
External Audit is performed by an independent party who Bank, and has assets of at least Rp 100 trillion.
has fulfilled the requirements to ensure that the Company’s 4. The Manager has at least 3 (three) years experiences in
accounting report is compiled in accordance with the auditing Commercial Bank and PKBL (Partnership and
Statements of Financial Accounting Standards (SFAS). The Community Development Program)
Company’s report consists of the Company’s financial position 5. The KAP (Public Accountants Firm) is registered in BI, OJK,
and business results in a fair manner, and the business and the Audit Board of the Republic of Indonesia (BPK).
operations conducted by the Company shall not be in violation 6. General audit services on financial statements by KAP for
of the prevailed regulations. a maximum of 5 (five) consecutive years.
7. The same Signing Partner of the KAP for a maximum of 3
External Auditor Appointment (three) consecutive fiscal year audit period.
The GMS on March 17, 2017, has appointed a Public 8. Partner has experiences in Public Accounting for more
Accountants Firm to fulfill the Financial Statement Audit of than 10 years.
Fiscal Year 2017.

9. Has experiences in performing General Audit on Bank Fiscal Year 2017 is stated in Letter No. 15/KOM/BTN/II/2017
with Sharia Business Unit. dated February 21, 2017 on “KAP Appointment to Perform
10. Has at least one CISA certified person and banking or General Audit for Financial Statements of Fiscal Year 2017
Sharia Accounting and Financial Statements of PKBL Implementation of Fiscal
11. Has expertise in at least: Quality Assurance, Computer Year 2017 PT Bank Tabungan Negara (Persero) Tbk” and Letter
Audit Specialist, Tax Specialist. No. 505/PGSD/PROC/II/2017 dated February 28, 2017, on
“Appointment Letter” for KAP Purwantono, Sungkoro & Surja/
Based on these criteria, Board of Commissioners has PSS – EY as the public accountant on Company Financial
appointed Public Accountants Firm Purwantono, Sungkoro & Statements 2017.
Surja – Ernst & Young as auditor that shall audit the Financial
Statement of PT Bank Tabungan Negara (Persero) Tbk Fiscal Accountant, Public Accountants Firm, and Audit Fee
Year 2017. Accountant and Public Accountants Firm (KAP) who conducted
the audit and Audit Fee in the last 5 years (including Audit of
The assignment legality of general audit of Financial Statement Partnership and Community Development Program or PKBL)
and PKBL Report of PT Bank Tabungan Negara (Persero), Tbk. is presented on this table:
Fiscal
Year Accountant Public Accounting Firm Scope of Audit Audit Opinion Audit Fee
2017 Yasir Purwantono, Sungkoro & Surja 1. Financial Statement Audit Unqualified Rp2,290,000,000
License No. AP.0703 License No. 603/KM.1/2015 2. Audit of Partnership and Community Opinion
Development Program (PKBL)
2016 Danil Setiadi Handaja Purwantono, Sungkoro & Surja 1. Financial Statement Audit Unqualified Rp2,175,000,000
2015 Danil Setiadi Handaja Purwantono, Sungkoro & Surja 1. Financial Statement Audit Unqualified Rp1,967,000,000
2014 Benyanto Suherman Purwantono, Suherman & Surja 1. Financial Statement Audit Unqualified Rp1,769,000,000
License No. AP. 0685 License No. 381/KM.1.2010 2. Audit of Partnership and Community Opinion
2013 Benyanto Suherman Purwantono, Suherman & Surja 1. Financial Statement Audit Unqualified Rp 1,650,000,000
License No. AP. 0685 License No. 381/KM.1.2010 2. Audit of Partnership and Community Opinion
Other Services Provided the Audit Board of the Republic of Indonesia, and PT SGS related to
In 2017, the Company’s Public Accountants and Public the surveillance audit for ISO 9001:2008 certification.
Accountants Firm provided other services in addition to the
Financial Statement Audit and PKBL Audit Fiscal Year 2017, Findings and Recommendations of Follow-Up
i.e. Compliance Audit with the Legislation and Internal Control from External Auditor
(PSA 62), and Audit on Performance Evaluation Report (LHEK) Company always follows up every findings and recommendation
2017. Audit fee services include the audit fee for Financial from external audit result in order to refine the Company’s
Statements and PKBL of Fiscal Year 2017. governance. Directors are consistently monitoring the follow
up from external audit finding in every coordination meeting
Other External Auditor and Services Provided between the Directors and Units related to ensure the smooth
In addition to the Public Accountants and Public Accountants Firm, implementation and minimalize findings that may arise. Follow
there were other external auditors who audited the Company in the up on external audit findings conducted by Company in 2017
fiscal year 2017, i.e. Bank Indonesia, Financial Services Authority, are as follows:
No. Audit Result Findings Finished Not Finished

Total % Total Description
1 Indonesia Financial Services Authority
General KHP Credit Risk per December 31, 2015 48 48 100.00 0 Finished
General KHP Information Technology per December 31, 2015 7 7 100.00 0 Finished
15 14 1 On going
General KHP Customer Complaint Handling per December 31, 2015 93.33
General KHP, Operational Risk, and APU-PPT, per July 30, 2016 120 120 100.00 0 Finished
General KHP Credit Risk per Tuesday, January 31, 2017 40 28 70.00 12 On going
87 11 76 On going
General KHP, Operational Risk, and APU-PPT, per Monday, July 31, 2017 12.64
OJK Findings 317 228 71.92 89
2 Bank Indonesia
LKD Bansos (Social Aid for Digital Financial Services) 7 7 100.00 0 Finished
LTV 3 3 100.00 0 Finished
LLD 5 5 100.00 0 Finished
BI Findings 15 15 100.00 0
3 The Audit Board of the Republic of Indonesia (BPK RI)
Internal Control System Semester I 2010 49 49 100.00 0 Finished
Loan Management Quarter I 2012 60 60 100.00 0 Finished
Micro Loan Program (KUR) Management Semester I 2014 38 29 76.32 9 On going
Performance on KC Efficiency Semester I 2015 36 36 100.00 0 Finished
Performance on Subsidized Housing Loan Management and SSB/SSA Management

2017 22 15 68.18 7 On going
BPK RI Findings 205 189 92.20 16
4 Public Accounting Firm
Management Letter on Financial Statements per December 31, 2017 20 17 85.00 3 On going
KAP Findings 20 17 85.00 3
External Findings 557 449 80.61 108
Effectiveness of External Audit and Bank’s Audit result on the financial statement for the fiscal year ended
Compliance with Regulations on the Relations in on December 31, 2017, will be submitted to Financial Services
between the Bank, Public Accountant, and Bank Authority (OJK). The implementation of transparency of the
Indonesia financial statements for the fiscal year 2017 is based on Bank
The Company always maintains communication between Indonesia Regulation and Financial Services Authority (OJK)
Public Accountants Firm, Audit Committee, and the Company’s regulations as follows:
management in an effort to make the audit executed effectively 1. PBI No. 3/22/PBI/2001 dated December 13, 2001,
and has significant impacts on the Company’s performance as amended partly by PBI No. 7/50/PBI/2005 dated
improvement. Audit Committee routinely coordinates with November 29, 2005, on Bank Financial Condition
Internal Audit Division (IAD) to conduct study on the effectivity Transparency, and amended partly by PBI No. 14/14/2012
of external audit implementation and to ensure that every dated October 18, 2012, on Bank Report Publication and
finding can be resolved. Transparency;

2. BI Circular Letter No. 3/31/DPNP dated December 14, 3. Follow up on interim result
2001, on Commercial Bank Annual Report and specified a. Update the understanding of internal control.
annual report submitted to Bank Indonesia; b. Follow up on interim result.
3. PBI No. PBI No. 8/4/PBI/2006 dated January 30, 2006, c. Presentation of audit interim result.
on Implementation of Good Corporate Governance for 4. End of the year Audit
Commercial Banks; a. Review subsequent event
4. Financial Services Authority Regulation No. 6/ b. Roll forward of substantive procedure.
POJK.03/2015 dated March 31, 2015, on Transparency c. Review the book closing on December 31, 2017.
and Publication of Bank Report. d. Finalization of audit conformation.
e. Publish the assigned report.
The audit strategies are as follow: 5. Reports
1. Planning Finishing of PKBL, management letter, performance
a. Communication with regulator. evaluation report, and PSA 62
b. Coordinating with BTN to develop audit planning.
c. Formulating strategies and detailed audit plan. Audit results are in accordance with the audit scope set by the
d. Conducting internal training for the assigned team. Company, i.e. as follow:
2. Interim Audit 1. Audit of the Financial Statements and Consolidated Financial
a. Understanding the business process, risk, and internal Statements of PT Bank Tabungan Negara (Persero) Tbk for
control. the fiscal year that ended on December 31, 2017.
b. Reviewing the process of books closing. 2. Audit on the Financial Statement of the Partnership and
c. Identifying and resolving accounting and auditing Community Development Program (PKBL) for the fiscal
issues. year that ended on December 31, 2017.
d. Testing of internal control in Head Office and Branch 3. Audit on Compliance with the Legislation and Internal
Offices. Control (PSA 62) on December 31, 2017.
e. Review collectivity and adequacy of CKPN and KYD. 4. Audit on Performance Evaluation Report (LHEK) 2017.
Code Of Conduct
The Company’s noble values always accompany every business stakeholders. Statement of Code of Conduct applies to all levels
activity performed in realizing Good Corporate Citizen. As of the organization and is stipulated in the Directors’ Regulation
an effort to be a Good Corporate Citizen, the Company as No. 16/PD/CMPD/2015 dated December 31, 2015, on the
a business entity promotes good attitude in all elements, Code of Business Ethics and Conduct. The Company requires
maintains harmonic relationship with the stakeholders, and all Company’s Personnel to sign the attitude statement of the
fosters social sensitivity. Company’s Code of Conduct called the Integrity Pact, to be
carried out as well as possible. The successful implementation
In those contexts, the Company has formulated several sets of Code of Conduct falls under the responsibility of all leaders
of policies as the code of conduct for every element in the in their own task force. Therefore, the Head of Units have the
Company in performing the business activities. The Company responsibility to provide understanding on the Code of Conduct
strives to apply standards for ethics and conduct in performing implementation for their staff in their respective task force.
all business activities in accordance with the vision, mission,
and cultural values held through the implementation of the Contents of the Code of Conduct
Code of Conduct. The Code of Conduct contains ethical and behavioral standards
for the Company as a business entity and all its elements in
Implementation of the Code of Conduct for the interacting both internally and externally to various related
Board of Commissioners, Directors, and Employee parties. Code of Conduct is expected to achieve the creation
The Code of Conduct applies to all Management (Board of of ideal behaviors to evolve into a work culture based on the
Commissioners, Directors) and Employees in performing noble values instilled within the Company’s ranks. The Code
Company’s business activities and conducting interaction of Conduct is summarized into 4 Chapters outlined briefly as
between the Commissioners, Directors, and Employees with all follows:
01 The Code of Conduct is a codification or compilation of policies, employee

regulations, and agreements that have been jointly developed by the Bank and
Introduction its employees that will affect, form, and set standards of behavior for both the
Board and employees in carrying out all business activities.
The implementation of the Code of Conduct, either its compliance or non-

compliance is one of the aspects of employee’s performance evaluation.
Therefore, this Code of Conduct will always be used as a guideline in developing
policies, manuals/procedures, and management practices existing in the Bank.
Consistent implementation of the Code of Conduct shows that Company is a
Bank that upholds the business values and ethics in carrying out business, as
well as the GCG principles.
02 1. Bank Ethics with Employees

Fair treatment of employees, employee discipline, as well as prohibiting
Standard Business Ethics employees from being involved in the Bank’s securities business activities
2. Bank Ethics with Customers

The Bank prioritizes the customer’s satisfaction and trust, hence employees
are required to support the Bank in an effort to achieve customer satisfaction.

02 3. Bank Ethics with the providers of goods and services

Providers of goods and services must be selected based on an assessment
Standard Business Ethics of abilities, accomplishments, and based on compliance and objectivity in
the field of price standards, quality, availability, requirements, and services
provided by partners/suppliers.
4. Bank Ethics with Competitors

Bank places competitors as a driver to continuously improve performance.
5. Bank Ethics with Partners

The Bank upholds mutual trust and respect, and upholds communality with
partners in accordance with the applicable business norms.
6. Bank Ethics with the Government

The Bank is committed to obey all prevailing regulations.
7. Bank Ethics with the Community

The Bank is committed to give a positive contribution for sustainable
economic development by focusing on the balance between the economic,
social and environmental aspects.
8. Bank Ethics with the Mass Media

The Bank considers the mass media as partners and media for promotion
to build a good image.
9. Bank Ethics with Professional Organizations

The Bank fosters good cooperation with professional organizations
and regulators to share information, experiences and discuss business
developments, and find the best solution to solve issues of common interest.
03 1. Employees should always avoid conditions, situations or the appearance

of conflicts of interest and malfeasance.
Standards of Conduct Policy 2. All members of the Board of Commissioners, Board of Directors and
employees of the Bank are prohibited from giving and receiving items for
their own interest, either directly or indirectly, from a business partner
who can influence decisions.
3. The bodies and employees of the Bank shall implement the Bank’s
legislation and regulations.
04 All Bank employees shall report all deviations of the Corporate Code of Conduct
to the Human Capital Division and the informer’s identity will be kept anonymous.
Implementation and Enforcement The Human Capital Division will follow up each report and submit the results
of their review to the Board of Directors and/or the Board of Commissioners in
accordance with their scope of responsibilities. In the end, the Board of Directors
and the Board of Commissioners will decide to impose mentoring, disciplinary
and/or corrective actions and precautions to be implemented by the direct
supervisor in each work unit.
Corporate Culture Disclosure 3. Collaborate with KPK to disseminate the gratification

Information on Corporate Culture has been provided in the control program and Code of Conduct;
Company Profile section of this Annual Report. 4. Manage the report on gratifications received by all work
units and report it to the KPK based on the provisions;
Code of Conduct Dissemination 5. Submit the Commitment Declaration to the Stakeholders
The Code of Conduct is disseminated to all Company’s at the Head Office and Branch Offices;
personnel and Stakeholders through the Company’s internet 6. A “Say No to Gratuities” pin wore by the entire BTN staff;
media called Access Internal Management Standard (AIMS) 7. Micro-learning program development of gratification
and websites that are easily accessible at any time. The control through the Company’s Smartshare media;
Company has also conducted socialization to representatives 8. Implementing the Whistleblowing System (WBS) program;
of Most Valuable Player (MVP) of all task forces in the Head 9. Punishment of employees who violate the business
Office and Branch Offices. ethics.
The Code of Conduct is socialized to all employees through Sanctions Type and Total Violations against the
anti-fraud dissemination activities conducted at Head Office Code of Conduct
and Regional Offices. The Company has also conducted Code There are two types of violation against Code of Conduct, i.e.:
of Conduct and Gratification Control awareness program 1. Administrative sanctions
through compliance quiz for all Company’s employees. a. Light, i.e.: verbal reprimands; written warning, and
dissatisfaction statement. The employee guidance
Code of Conduct Implementation and Enforcement sanction period is 3 (three) months.
The Company requests and requires the employee’s willingness b. Medium, i.e.: no leave money; no periodic salary
to report any action of another employee or co-worker believed adjustment and Person Grade decrease by 1 (one)
to constitute a violation of the Code of Conduct and submit any grade (salary adjustment). The employee guidance
known fact of irregularities. sanction period is 1 (one) year.
c. Heavy, i.e.: Person Grade decrease by at least 2 grades
The Company imposes firm and consistent sanctions for (basic salary adjustment); employment termination
violations against the Code of Conduct Guidelines. The and report to the authorities. The employee guidance
enforcement and sanctions imposed carried out by the sanction period is 2 (two) years.
Board of Commissioners and Directors refer to the Articles 2. Financial sanctions
of Associations and GMS resolution. On the other hand, Financial sanctions, i.e. to replace any financial losses
sanctions imposed on employees are based on the applicable that may arise as a result of violations of discipline that
staff regulations. a person did.
In 2017, the Company has carried out the following efforts: In 2017, there are 256 sanctions because of the Code of
1. All employees have filled in the Integrity Pact in line with Conduct violations, i.e.: light sanctions for 124 persons,
the Code of Conduct values; medium sanctions for 67 persons, and heavy sanctions for
2. Socialization of the Code of Conduct and Gratification 65 persons. There are 3 cases in the process of imposing
Control through Anti-Fraud activities; sanctions.

Gratification Control
Ingat Rumah Ingat Bank BTN

Sumber foto: Hasiholan Siahaan
The Company emphasizes that any of its element does not give Company adopted a policy as the guideline in implementing
or accept any gift or reward from customers, debtors, vendors, Company’s gratification control through Directors’ Circular
partners, and other third-parties on the service provided by Letter No. 68/DIR/CMPD/2017. In addition, regulations related
the Employees in carrying out their duties, especially gift or to gratification control are stipulated in Code of Conduct.
reward that may create a conflict of interest. This is done,
among other times, in days approaching a religious holiday (Eid Awareness of Gratification Control Program
Mubarak, Christmas/New Year). The Company always makes The Company conducts Awareness on Gratification Control as a
an announcement in a widely distributed national newspaper, form of gratification policy implementation and anti-corruption
stating that the Board of Commissioners, Directors, and the programs through several activities such as:
Employees of Company are fully committed not to receive and/ 1. A “Say No to Gratuities” pin wore by the entire BTN staff;
or request any gift or present in any form from/to customers, 2. Information dissemination for the Control Gratification
debtors, partners/vendors, and other third-parties. Program through Anti-Fraud activity to all the Company’s
personnel in the head office and branch offices;
In addition, the Company also asked all the customers, 3. Publishing a Program to Control Gratification Handbook;
debtors, partners/vendors, and other parties, who are or will 4. Improvement on internal regulation related to Gratification
be in a business relationship with the Company to support Control Program, in line with the recommendation of
this commitment by not giving any form of gift or present, Corruption Eradication Commission (KPK).
directly or indirectly. This announcement is also distributed by 5. Compliance quiz fillings by all Company’s personnel, in which
the Company in a written letter to their customers, debtors, the Gratification Control is included;
vendors, partners, and other third-parties who are involved in 6. Announcement in national newspaper about the Company’s
a business relationship with the Company. gratification control program; and
7. Submission of the Clean Declaration to BTN Partners/
Gratification Control Policy Stakeholders, in Head Office or Branch Offices.
Gratification Control is a part of the national anti-corruption 8. Gratification Control Program by micro-learning through
program. As an initiative to support Gratification Control, the Smartshare media, accessible to all the Company’s personnel.
Gratification Acceptance Report

Throughout 2017, the total number of gratuities report received originated from the head office
and the branch offices is 21 reports, which consist of reports of gratuities in the form of bribes,
services, or gratuities in form of foodstuff in days leading to a religious holiday.
Task Force 15
14
Grafitication Report
12
Head Office
9
Branch Office
7
6
Grafitication Report 12
Based on Position 11
10 10
Officers 8
Employees 6
Head Office Executives
4 4
Branch Office Executives
Directors 2
1
0 0
Based on Type
12 11
Services 9
Bribes 6 6
Food Stuff 4
3
Based on Ownership
6 6 6
5 5
Individually Owned
State Owned 4 4
Social Disbursement
3
Under Investigation by
the KPK
2
Returned
1
0 0

Whistleblowing System (WBS)
The Company’s internal control system is supported by sets of conducted through the Company’s website and various media,
policies and reporting infrastructures on the ethical violations such as internal newsletters, posters, live presentations of
or any other actions that may harm and violates the Company’s WBS ethics and policy guidelines.
interests. Company’s Whistleblowing System (WBS) Policy is
based on Bank Indonesia Regulation (PBI) No. 5/8/PBI/2003 Report Submission Mechanism and WBS Channels
which was amended to PBI No. 11/23/PBI/2009 and Bank In order to submit violation reports, the mechanism is to have
Indonesia Circular Letter No. 13/28/DPNP on Anti-Fraud the informant submit a report/disclosure and send it based
Policies. The WBS is a part of the internal control system to on the indications of committed violations and the suspects,
prevent irregular practices and aims to: including:
1. Early detection and prevention of irregularities or violations; 1. The alleged violation report shall be directly addressed to
2. Gradually creating an open, sincere, honest, and the SPP/WBS team if the alleged violator is a staff. The
responsible working environment in the Company. report can be provided verbally or through other modes
preferred by the Informant.
Type of Violations to be Reported 2. The alleged violation report shall be directly addressed
Violations or deviation is any form of action that significantly to the President Director of Company at the Head Office
interferes with the business continuity or threatens the marked “CONFIDENTIAL” or “CLASSIFIED” on the cover
personal safety of the Company. Several examples of the letter if the alleged violator is a member of the SPP/WBS
violations and irregular practices to be reported based on the team.
WBS policy include: 3. The alleged violation report shall be directly addressed
1. All criminal violations (such as theft, fraud, drug use, etc.); to the SPP/WBS Team to be passed to the President
2. Authority abuse in serving customers, vendors, or suppliers Director and reported to the Board of Commissioners if
(e.g. unwarranted payment delays, extortion, etc.); the alleged violator is a member of the Board of Directors
3. Violations of tax regulations or corporate financial or his/her family.
reporting provisions that are not in compliance with PSAK; 4. The alleged violation report shall be directly addressed
4. Actions that endanger occupational health and safety; to the SPP/WBS Team to be passed to the President
5. Actions that may harm the Company, both financial and Director if the alleged violator is a member of the Board
non-financial, including damaging the Company’s image; of Commissioners or his/her family.
6. Actions of serious violation of the Code of Conduct for
Employees; In addition, the Company also builds supporting infrastructure
7. Violations of Banking regulations regulated in Law in implementing WBS policies whereby the reporter shall
No. 10/1998 jo Law No. 7/1992, among others, submit reports through the media:
not implementing the prudence principle, disclosing 1. Letter sent directly to the WBS Team or President Director
customers’ personal data to unauthorized persons, of PT Bank Tabungan Negara (Persero) Tbk. Menara BTN
making incorrect logging, asking for money for banking Lt. 20 Jl Gajah Mada No.1 Jakarta Pusat-10130
services performed, etc.; 2. By official email addressed to the Whistleblowing System
8. Violations of internal rules (SOP), which can hurt the Team at wbs.btn@btn.co.id; and
integrity of corporate reporting, both in the finance field 3. Using channel:
and any other fields. ›› PO Box Whistleblowing System (WBS) BTN Jakarta
10000
WBS Information Dissemination ›› E-mail to wbs.btn@btn.co.id
WBS internalization within the Company is carried out ›› Phone/Text to 0811-92-45678
by distributing guidelines on the Whistleblowing System
(WBS) stipulated by Directors’ Circular Letter and sharing Whistleblower Protection
session presentation directly to all of the Company’s leaders The Company guarantees the protections of Whistleblower
and employees. In addition, to reach all of the Company’s with good faith that reported the violations at risk of harming
stakeholders, the Whistleblowing System socialization is also the Company. The protections are:
1. Reporting communication channel (verbally, telephone, 3. The WBS Team conducts a preliminary investigation/
email) that is free and confidential or an independent clarification on the report/disclosure and prepares a
and confidential Ombudsman. The Informant will receive summary, which will then be reported to the Board
follow-up information from the communication channel of Commissioners/Board of Directors (based on the
on the alleged violations report submitted; reported category). The Board of Commissioners/Board
2. Guaranteeing the Informant’s anonymity, unless there of Directors decides the following follow up actions based
is a legal requirement that requires the identity to be on the report.
disclosed in the presence of the judge; a. Discontinued, if the preliminary indication requirements
3. Protection from retaliation of the Informant or the are not met.
organization reported. This protection may include: b. Work closely with the Internal Auditor in accordance
a. Physical protection either against himself/herself or with the substance of the report/disclosure.
his/her family; c. Work closely with the external investigator if the
b. Protection of his/her property and his/her family substance of the report/disclosure is related to the
against terror or retaliation; image/reputation of Company and/or could cause
c. Administrative protection in the form of promotion great harm and/or have not been acted upon by the
delays, dismissal, exclusion in the workplace, infeasible Internal Auditor.
transfers, including job security, etc.; 4. The Investigation Team conducts an investigation and
d. Legal protection, in the litigation process in the District reports the results to the Board of Commissioners/
Court, including the cost, and if necessary, including Board of Directors. Based on the report, the Board of
protection through the Witness and Victim Protection Commissioners/Board of Directors decides:
Agency (LPSK). a. The disclosure report shall be closed, if not proven.
b. Impose sanctions in accordance with the applicable
Management Team and Complaint Handling provisions, if proven and related to administrative
Mechanism Through WBS measures.
The Company’s WBS is managed by WBS Team, which consists c. Inform the investigators about the criminal offense
of: (1) Head of Internal Audit Division (Chairman concurrently for further processing, if proven and related to general
Member), (2) WBS Management Unit (Secretary), (3) Head of criminal acts or corruption. In this case, the WBS team
Compliance Division (Member), (4) Head of Human Capital Division coordinates with Legal and Loan Document Desk to
(Member) and (5) Head of Risk Management Division (Member). ensure that there is sufficient evidence and to give
recommendation if there is sufficient evidence.
WBS Team shall follow up every incoming complaint with the 5. The initial evaluation/clarification and investigation
following mechanism: process are recorded in the Minutes of Meeting.
1. The WBS Team receives reports/disclosures, records and 6. The WBS Team reports the results of the investigation to
presents it in a standard format producing the following: the Board of Commissioners/ Board of Directors.
a. Report on contacts received based on the report/ 7. The Bank may reward the informant based on the
disclosure category. Decision of the Board of Commissioners and the Board of
b. Disclosure report. Directors and based on certain considerations. The Board
2. The WBS Team submits the disclosure report to the of Commissioners and the Board of Directors determine
Board of Commissioners/Board of Directors (based on the form and type of reward.
the reported category).

Reporting Mechanism Diagram
Reporter BoD WBS Monitors Committee WBS Anti Fraud

Committee Committee
Reports Occurrence
Violation
DoC BoD N
Reported? Reported/
WBS Y
1a 1b
Validation Reports Validation Reports Validation Reports
2a 2b 2c
Violation? Violation? Violation?
3a 3b 3c
Y N Y N Y N
Fraud? End Fraud? End Fraud? End
4a 4b 4c
Y N Y N Y N
Handling Handling Handling

by Related by Related by Related
Unit Unit Unit
5a 5b 5c
Process Initiation Process Initiation Process Initiation

Investigation to IAD Investigation to IAD Investigation to IAD
6a 6b 6c
Copies of Initiation Copies of Initiation Copies of Initiation

Investigation to the KAF Investigation to the KAF Investigation to the KAF
7a 7b 7c
Received Notification/
Copies of Initiation
Implementation
Investigation 8
Sanctions (Legal) Process Flow Chart
Anti Fraud Committee Human Capital Management & Legal Division

Culture Specialist Division
Received Copies Execution Initiation
Sanctions Decision Sanctions through
Legal Path
1b 1a
Coordination with Legal Preparing Team & Legal

Division to Prepare the Steps Starting the Path
Process Law Legal Proceedings
2 3
Sanctions (Bank) Process Flow Chart

President Director & Anti Fraud Committee Human Capital Management Board of Director
Commissioners & Culture Specialist Division
Discussion Follow Up
Investigation Result Fraud
Process Sanction?
Y
2
N
Initiation Investigation Received Copies Instruction Assembly on Sanction

Follow-up Assembly Sanctions Imposed
Fraud by HMCD
2c 2b 2a
Submission Sanction Draft to Discussion Sunctions Suggestion

the Bod
3 4
Sanction Law
5
N Y
Agree? Discussion
Sanctions
5a Suggestion
Legal Path 5b
N Y
Back to Agree?
no. 4
6
N Y
Back to
no. 5b
Sending Approval Letter

on Sanction
Received Copies Sanctions Sanctions Execution

Decision
8b 8a
WBS Reporting and Handling Recapitulation received, 94 reports were settled without further audit (audit
In 2017, there were 99 reports received, which consist of clarification and/or special audit) and 5 reports were passed
14 reports using Letter/PO BOX, 44 reports via text/phone/ for audit process (audit clarification and/or special audits). The
direct report, and 41 reports via email. Based on the reports 5 reports passed for audit are as follows:
Year Media Channel Follow Up

Text/Phone/ Ongoing reports Reports that have been
Letter/ Direct Closed reports (Audit process/Reporting given a sanction Reports forwarded to Investigators
PO BOX Report Email (not proven) process/Interdivision Process) (including administrativesanctions) (related to public crimes or Corruption)
2014 0 1 2 1 0 2 0
2015 6 3 9 1 15 2 1
2016 5 2 1 0 8 0 0
2017 1 0 4 0 3 1 1

Legal Issues
Important Case Faced by the Directors and Board of Commissioners and Subsidiaries
Throughout 2017, there are no members of Company’s Directors and Board of Commissioners in tenure
who is involved in legal issues, both civil and criminal. Currently, the Company does not have any Subsidiary.
Important Cases Faced by the Company

In 2017, the Company faced legal issues in the form of important lawsuits. The lawsuits have been filed
through the legal process, as follows:
Legal Issues 2016-2017
Legal Issues Number of cases 2016 Number of cases 2017
Industrial Industrial
Civil Criminal Relation Civil Criminal Relation
Finished (has permanent legal power) 42 112* 1 127 207* 0
In progress 185 31 - 243 58 2
Total 227 143 1 370 265 2
*) In 2016, out of 112 criminal law matters, the Company acts as witness in 110 cases. In 2017, out of 207 criminal law matters,
the Company acts as witness in 200 cases.
Disclosure of Administrative Sanctions from OJK

Throughout 2017, there were no administrative sanctions affecting the Company’s business continuity
and there is no administrative sanctions imposed on the members of Board of Directors or the Board
of Commissioners
Table: Important Cases Faced by the Company in 2017
Effect on the
No. Lawsuit Status of Settlement Company’s condition Last Status
1. Lawsuit Debtor in the Auction Process
The lawsuit by the debtor related to the company's action on the The case has been decided by Material losses of Inkracht (legally
execution of mortgage auctions of mortgage rights to the debtor's the Supreme Court (Cassation), Rp14.5 billion binding power)
collateral, the Company is considered to have committed the and the Company won
Unlawful Act (PMH) by the debtor.
2. Official Residence Dispute
Dispute of one of the Company’s official residence, where the On process of cassation Asset loss of Rp100 Cassation
Company has not obtained its right of the house because the heirs appeal by the Company to the billion
do not want to move and feel they had bought the house. Supreme Court
3. Bankruptcy Request
Bankruptcy application submitted by the Company to the debtor The debtor is declared Asset loss of Rp23.8 Inkracht (legally
related to non-payment of loan by the debtor and in a standstill. bankrupt billion binding power)
4. Tort Lawsuit
The lawsuit was filed in relation to the alleged fraudulent deposits Currently in the process of Loss potential of Rp110 Appeal
of plaintiffs placed in the Company. appeal by the Plaintiffs billion
Procurement Of Goods And Services
The Company conducts a series of activities to fulfill the quality, quantity, and period set forth with the best price and
needs of goods and/or services by purchasing or renting implement the risk control management principle.
and/or cooperating with another party such as partners or
other appointed parties, or independently. The Procurement Principles of Procurement of Goods and Services
activity is stipulated in the Policy for Procurement of Goods The procurement process shall provide added value in
and Services, which is a guideline in performing procurement supporting the Company’s business activities. Therefore,
of goods and services, both in a strategic and non-strategic the Company performs the procurement process taking into
manner to support the Bank’s operations based on the account the basic principles of procurement, as follow:
Effective The procurement must be in accordance with the needs/plans that have been
set, and will provide optimal benefit for the Bank.
Efficient The procurement is performed to achieve a stipulated level of quality, on an

agreed period at the best price
Open and Competitive The procurement activity must be open to any qualified Goods and Services
Provider and must be done in a healthy competition between the Goods and
Services Providers and must meet certain requirements/criteria, which are
based on clear and transparent provisions and procedures.
Transparent All provisions and information regarding the Procurement activity, including
the technical requirements and administrative matters, evaluation procedures,
evaluation results, potential Goods and Services Provider candidates must be
open in nature.
Fair and Not Discriminatory Provide the same treatment for potential Goods and Services Provider and does
not intend to provide any parties with certain benefit by any means and reasons.
Accountable The procurement process, result, and payment must be accountable.
Responsible The procurement process is performed in a prudent manner and in compliance

with the applicable regulations.
Independent Procurement decisions are made objectively and are free from any pressure
from any party.

The Company strives to realize the procurement based on the 4. Guided by a Working Culture based on the company’s
basic principles, by implementing the following matters: values, GCG, and comply with the Code of Conduct and
1. Separation of functions in the Procurement Implementation prudence principles.
Unit, i.e. the unit that performs the potential partners/
vendors selection, unit that performs the procurement In addition, to maintain the good procurement process with
process, unit that compiles the Independent Estimated no conflict of interest and free from corruption, the executives
Price; and the Compliance Task Force. shall sign the Integrity Pact to perform the procurement of
2. Always comply and be in accordance with internal and goods and services.
external regulations;
3. Implementing risk management principles, which include Procedures for Procurement of Goods and Services
identification, assessment, mitigation, monitoring and The phases in procuring goods and services are as follow:
operational risk measurement.
Planning Principle permit Process/ Contract/Cooperation Monitoring

1. Budgeting 1. Procurement type Procurement phase Agreement 1. Scope of work
2. Procurement 2. Scope of work 1. Direct appointment 1. Direct appointment 2. Work volume
planning 3. Independent 2. Direct selection 2. Direct selection 3. Specification
Estimated Price 3. Auction/Public 3. Auction/Public 4. Term
and Working Paper selection selection 5. Etc. in accordance
4. Procurement with the
method procurement
5. Evaluation method documents
6. Committee
The method used in procuring goods and services are performed through:
1. Auction, for procurement of goods and services with a value of over Rp2,500,000,000 (two billion and
five hundred million rupiah).
Passed the prequalification < 2

Auction Process Sequence Cancelled Auction/Public
Selection, Announcement
of Re-Auction
Prequalification Announcement in the Picking up the Submitting Answers Evaluating Answers Announcement of
Documents and Mass Media Prequalification of Prequalification of Prequalification Prequalification
Auction/Public Documents Documents Documents Evaluation Result
Selection Documents
1 2 3 4 5 6
Submitting and Picking up Aanwijzing Aanwijzing of Auction/ Picking Up of Invitation to Objection Period
Picking Up of Bid Price Public Selection Auction/Public Participants to Pick
Documents (DPH) Documents Selection Documents Up the Auction/Public
selection Documents
12 11 10 9 8 7
First place did not want Objection must

to negotiate, will be be settled by the
followed by the second Committee
and third places
DPH Evaluation Proposed of First, Invitation of Technical Clarification and Price Proposing the Winner Announcement of the
Second, and Third Clarification and Price Negotiation with the Winner
Places Negotiation with the First Place
First Place
13 14 15 16 17 18
Monitoring Contract Appointment Letter Objection Period
22 21 20 19
Objection is proven,
Re-Auction
2. Direct Selection, for procurement of goods and services with a value of over Rp500,000,000 (five
hundred million rupiahs) to Rp2,500,000,000 (two billion and five hundred million rupiahs).
Passed the administrative

Direct Appointment Process Sequence phase < 2
Cancelled Auction/Public
Selection, Announcement
of Re-Auction
Prequalification Invitation to Picking Up of Direct Aanwijzing/ Picking up of Minutes Submitting and

Documents and Participants Appointment Explanation of Aanwijzing Opening Bid Price
Auction/Public Documents Documents (DPH)
Selection Documents
1 2 3 4 5 6
Announcement of the Proposing the Clarification and Invitation of Proposed of First, DPH Evaluation
Winner Determination Price Negotiation Technical Clarification Second, and Third
with the First Place and Price Negotiation Places
with the First Place
12 11 10 9 8 7
Passed the
First place did not want administrative phase > 2
to negotiate, will be
followed by the second
and third places
Objection Period Appointment Letter Contract Monitoring
13 14 15 16
Objection is proven,
Re-Auction
3. Direct Appointment, for procurement of goods and services with a value of over Rp500,000,000 (five
hundred million rupiahs)
Direct Appointment Process Sequence Work Order (SPK)

if the Procurement
Value reached
Rp200 million
7a
Direct Appointment Invitation to Picking Up Direct Aanwijzing Submitting Bid Price Report to the
Documents Pick-Up the Direct Appointment Documents (DPH): Procurement Leader
Appointment Documents 1. Opening of DPH/
Documents SPH
2. Clarification and
Price Negotiation
1 2 3 4 5 6
Letter of
Appointment
Followed by Contract,
if the Procurement
Value is more than
Rp200 million
7b

Digital Smart Branch BTN

Photo source: Dedi Gunawan
Managing Company’s Goods and Services Partners of the vendor meeting is as follow:
The Company’s Partners shall meet the qualification and ›› Date: March 23, 2017
classification as set forth by the unit that is using the services, ›› Place: Menara BTN Auditorium, 6th Floor
and shall comply with the Company’s policy for procurement of ›› Partners: All partners who have cooperated with the
goods and services. The Company standardizes and optimizes Company
the program for partners’ quality in cooperating with the
Company through the following activities: Procurement of Goods and Service for 2017
1. Assessment of the Partners Throughout 2017, the total value of Company’s procurement
Assessments of the partners are conducted using is Rp 556 billion, which includes procurement related to
assessment variables that cover quality, delivery, development/building renovation, office machines, office
flexibility, responsiveness, price, and violations. The furniture/office houses, and other services.
following vendors that are managed by PGSD must fulfill
the following criteria: Audit of Procurement of Goods and Services
›› Vendor Excellence : 36 % The procurement activities in the Company are constantly
›› Good Vendor : 61 % evaluated to ensure that the policy for the procurement
›› Need Improvement : 3 % of goods and services are carried out well. This is carried
2. Vendor Meeting out by the regular or occasional audit, both internal and
Throughout 2017, Company has conducted 1 vendor external.
meeting, with the ‘eProcurement application socialization’
agenda. The objective is to disseminate the information to There are no audit findings in 2017, both from internal or
the vendor that Company will develop the eProcurement external auditor, related to procurement that may negatively
application, which later on shall be utilized in the process to affect Company. There is no rebuttal from the selection of
procure goods and/or services in the Company. The detail goods and services providers.
Access to Information
Transparency is an important part of Good Corporate Governance 6. The report is intended for regulator, analyst meeting,
implementation in order to preserve the stakeholders’ right, press conference, etc.
especially the shareholders and customers. Therefore,
the Company provides information technology-based To obtain further information on the Company, general public,
infrastructures. External parties also provide other media. These and investor, please contact:
infrastructures grant access to information to the stakeholders.
The Company provides the financial and corporate information, Corporate Secretary
publications (press release), products, corporate actions, public Name : Agus Susanto
presentations, etc. This information shall be available through: Address : Menara BTN Jl. Gajah Mada No.1,
1. Website www.btn.co.id, in Indonesian and English, and Jakarta Pusat 10130
the website delivers: Phone : (021) 6336789 ext. 2003
›› Information on Shareholders up to individual owners; Fax : (021) 6336719
›› Financial performance analysis. E-mail : agus.susanto@btn.co.id
›› Financial statement for the last 5 years. Website : www.btn.co.id
›› Profile of the Board of Commissioners and Board
of Directors. Investor Relations Activities for 2017
2. To obtain further information, the customer can contact Company always fosters good relationship with their
our Call Center at 1500 286 or email to csd@btn.co.id. shareholders, potential investors, analysts, and other capital
3. Investors shall directly contact our Corporate Secretary/ market community members through regular activities,
Company’s Investor Relations by sending an email to such as meeting with the analysts/investors on a national
investor_relations@btn.co.id or calling (62-21) 633 6789 and international scale, and performance presentation to
ext: 2003. the public. Company also meets the disclosure obligation as
4. The Company also provides the report of information stipulated in the Indonesia Capital Market regulation, such
disclosure and/or material facts letter to the Financial as the Material Information or Fact Disclosure, Financial
Services Authority and Indonesia Stock Exchange by Statements, Annual Report, and Specific Shareholders Report.
electronic reporting system in spe.ojk.go.id and idxnet. In addition, the Company actively holds other activities such
co.id and www.btn.co.id website. as media gathering, media coverage, and media promotion.
5. Information via other media includes mass media (Press Throughout 2017, the Company has held several Investor
Release), magazine, internal magazine/bulletin, posters, Relations as described in the part ‘Duties and Responsibilities
and banners. of the Corporate Secretary’.

Company Strategic Plans
The Strategic Plans are compiled in the form of Corporate Plan 2. Digital banking period (2016-2019). The phase to be
and Business Plan, in line with the Bank’s vision and mission. achieved is ‘the leading housing bank Indonesia with
Corporate Plan is packed in the form of Long-term Plan (RJP), world class service.’
which contains the planning for more than 5 years. Business 3. Global playership period (2020-2025) when the
Plan is realized in the form of Bank Business Plan (RBB) in a transformational Enterprise Global Mindset will be achieved.
3-year period.
Long-term Plan
The Board of Directors compile RJP and RBB in coordination The Company’s Long-Term Plan (RJP) is in the second phase
with the task force with top-down mechanism, in which the of transformation, i.e. digital banking period with focus on
Directors provides directive on the strategic targets that they stronger business, such as the early transformation phase,
want to achieve, and bottom-up mechanism, i.e. proposals, which covers aspects as follow:
suggestions, and/or perspective submission from task forces, 1. Credit Strengthening
in the Division, Regional Office, and Branch Offices. In line with the bank policy and the potential revenue
pool of national banks, the credit strengthening sector
The RJP and RBB proposal is submitted to the Board of is focused on strengthening the bank’s core business,
Commissioners for approval. After obtaining approval, the which is the residential business with expansion in other
RJP and RBB are informed to the Controlling Shareholder by businesses through the penetration of strategies tailored
Board of Commissioners, and RBB must be submitted to the to the targeted segment. In addition, the credit strengthens
Financial Services Authority. The annual implementation of RJP Company role as housing market maker, building the
and RBB is carried out by using the Company’s Work Budget construction value chain to support house supply increase.
and Plan (CBP). The directives of credit policy are as follow:
a. Enhancing the positioning of Company in the
The annual target achievement of CP is monitored monthly mass segment (subsidized & non subsidized) by
by the Directors through Performance Review meeting. The strengthening the role of Company as a housing
Board of Commissioners supervises by meeting with the market maker through the role of BTN HFC and the
Directors, which is scheduled once a month. expansion of strategic alliances with developers
outside Java;
Bank’s Business Plan (RBB) Realization is reported quarterly
b. Improving the financing penetration in emerging
by the Directors to the Financial Services Authority as the
affluent and affluent segments through development
banking supervisor. The Board of Commissioners oversees
of Digital housing loan ecosystem;
the implementation of the Bank’s Business Plan by conducting
c. Expanding the SME, Commercial, and Corporate
discussions with the Board of Directors and preparing Bank
segment markets to support the houses supply by
Business Plan Supervision Reports to the Financial Services
building construction value chain
Authority every semester.
2. Fund sector strengthening
The performance is reviewed and evaluated based on Fund sector strengthening is focused on obtaining low
the monthly monitoring. If it is necessary for a change of & sustainable cost to support the financing business
management strategy and work plan, the Board of Directors expansion through strategy penetration that is adjusted
shall propose an RBB revision in the middle of the fiscal year with the targeted segment. The bank’s policy direction in
to the Board of Commissioners for approval. the fund sector is as follow:
a. Improving the CASA of consumer banking segment by
Corporate Objectives deepening the share of wallets of emerging affluent
The company’s objective in accordance with the Company’s & affluent segments and support of mass segment
Long Term Plan (RJP) in 2025, ‘achieving transformational growth;
enterprise – global mindset’, is to become a global company b. Increase the CASA growth on commercial banking
in housing, property. The transformation program has been segment through the strategic alliance expansion
running since 2013, and it consists of 3 stages as follows: with various institutions and mapping the
1. Survival period (2013-2015). The phases achieved is construction value chain for SME, Commercial, and
domination nation-wide market leader, i.e. to master the Syndicated segment;
national housing business. c. Improvement and expansion of wholesale funding
3. Infrastructure strengthening optimalisasi potensi construction value chain pada segmen

To support aggressive growth target and succeed the Usaha Kecil Menengah (UKM), segmen Korporasi dan Sindikasi.
transformation phase of digital banking, the strengthening The strategy in the Credit Sector is as follows:
of infrastructure is focused on three main things, i.e.: 1. Strengthening BTN position on mass segment (subsidized
a. Risk management strengthening through the and non-subsidized)
strengthening of operational risk control pillars, 2. Increasing the fund penetration on the Emerging Affluent
emphasizing the Good Corporate Governance (GCG) & Affluent segments;
principles in the bank’s business operations. 3. Expanding the market share for Micro Loan, Commercial,
b. Digitalization of business process; and Corporate segments.
c. Building the infrastructures for digital banking, big
data, advanced analytics, and IT-based technology Credit Quality
that support the digitalization process Improved credit quality became a benchmark for process
4. HR strengthening (people transformation) improvement and credit success. The strategy in the credit
People transformation is focused on strengthening the quality field is based on time bucket. However, the management
capability of the organization through internalization of is more emphasized on the profiling ability to pay the debtor
high-performance work culture and improving risk culture and also the risk exposure that will be generated.
on all bank’s business operations.
The strategic initiative to support the credit quality achievement is:
1. Profiling the criteria of delinquent debtor to map out
The main initiatives on strengthening this are as follows:
billing strategy or loan settlement;
a. Agile organization development with high capability;
2. Implementing Smart Collection program through smart
b. Human Capital capability development and manpower
mobile and icollection application optimization;
planning formulation
c. Strengthening the performance-based management 3. Optimizing collectability degradation of consumer and
and risk culture commercial loan from the third-party fund;
4. Collections program for collectability of debtors’ loan 1
Short-term and Medium-term Plan and 2 (early bucket) using technology (SMS, call collection,
As a bank’s commitment to supporting the Government’s etc.), loan restructuring for third-party fund debtors, and
aspiration, the short-term and long-term Company’s target collective collection improvement;
are to focus on housing finance to support the realization of 5. Asset recovery program through cooperation with debt
One Million Houses program. To realize the vision, Company collector, law firm, and private Auction Center in collection
changed the business strategy to mapping the customers’ and sale of assets. In addition, the asset recovery
segment. Through the strategy, the asset growth is focused optimization is also conducted through offering of assets
on strengthening the market share of the mass segment, to prospective investors through investors gathering,
and with expansion support on other segments. Meanwhile, property agents, and property expos;
funding is intensified for consumer and commercial CASA 6. Cessie execution and AYDA asset sales
share as well as wholesale funding.
Funding Sector
Infrastructure strengthening is conducted to support short- In line with the bank’s business strategy, the fund growth
term and medium-term target through digital banking initiative is focused on strengthening the current account and
innovation, mortgage ecosystem development, human saving account (CASA) and wholesale funding support. Overall,
resources quality improvement, and business process the funding strategy is as follows:
improvement that promote GCG principles. The objective 1. Improving consumer CASA by optimizing share of wallet
of infrastructure strengthening is to support sustainable (SoW) captive market on the mass segment and to expand
business growth. the emerging & affluent customers’ SoW
2. Increasing commercial third-party fund (DPK) based
Credit Sector on the construction value chain and institution funding
Strategi kredit konsumer akan difokuskan dengan memperkuat based on Housing Loan cooperation;
positioning BTN pada segmen Mass Subsidized & Non 3. Expanding wholesale funding through front-loading
Subsidized dan memperluas pangsa pasar segmen Emerging strategies, including issuing bonds, loans, Negotiable
Affluent dan Afluent melalui pengembangan mortgage Certificate Deposit (NCD), or foreign loans;
ecosystem. Sedangkan kredit komersial, strategi lebih 4. Expanding wholesale funding activities by issuing sub
difokuskan untuk memperkuat supply perumahan melalui debt and bonds.

Fee-Based Income (FBI) and Establishment of 1. Utilizing the parent infrastructure to expand the BTN
Subsidiaries Sharia network.
Considering the contribution of fee-based income (FBI) to a. Mapping the potential of sharia business development
operating income that is not yet optimal compared to the at BTN Conventional Branch Office in accordance with
industry average, it is necessary to strengthen several strategic the sharia market potential;
initiatives to support it. On consumer banking segment, the b. Designing specific Key Performance Indicator (KPI) to
increase of FBI is conducted by: sell sharia product in the conventional branch offices;
1. Optimizing administrative revenue through NOA c. Increasing the capability of BTN Conventional sales
expansion and mass segment loan disbursement; force to sell sharia products through sales force
2. Increasing customer transaction activities by developing effectiveness program;
internet banking & mobile banking features and d. Designing product simplification that helps the
applications, and offering digital banking services conventional staff to sell sharia products
targeted at the emerging affluent segment 2. Once there is clarity about the sharia banking holding
3. Strengthening the BTN Priority role as the Asset Under plan, the spin-off preparation stage will be conducted.
Management (AUM) for the affluent segment. a. Spin-off preparation started by establishing task force
The strategic initiatives to support the achievement of the FBI to conduct review process in detail to ensure minimum
are as follows: operational risk; and
1. Increasing administrative revenue through the addition b. Spin-off implementation
of the Number of Account (NOA) or the growth of the
number of debtors in the distribution of Housing Loan Capital Strengthening
segment mass; In line with business expansion, strong capital is required,
2. Developing digital banking services aimed at increasing taking into account the fulfillment of bank minimum capital
the activity of emerging affluent segment transactions; requirement pursuant to Basel III. Pursuant to the PBI No.
3. Strengthening the BTN Priority role as the AUM 15/12/PBI/2013, the bank is obliged to provide minimum
management for the affluent segment; capital in the form of risk rating and additional capital as
4. Expanding commercial banking and treasury activities. a buffer, based on Basel III (there are 3 types, i.e. capital
conservation buffer, countercyclical buffer, capital surcharge).
In addition to the above-mentioned strategies, the FBI income Starting on January 1, 2016, the minimum capital requirement
shall be collected by strengthening recovery through asset is applied gradually. Thus, in 2017, Company is expected to be
management of off-balance sheet massively, and through able to maintain a minimum CAR of 14%.
the establishment of subsidiary that supports diversification
and differentiation of products offered. In line with the bank’s Meanwhile, in accordance with the regulator’s mandate on
business direction, the subsidiary establishment is focused on the availability of business recovery plan, in the coming year,
supporting the parent business that is the property business to Company also plans to issue convertible debt. Company’s
optimize One Million Houses program. The planned subsidiary capital strengthening strategies are:
establishment is the establishment of life insurance, general 1. Increasing profitability;
insurance, financing company, and investment management. 2. Increasing housing loan securitization;
3. Proposing a dividend policy scheme that supports
Sharia Business Sector housing focus banks;
On a short-term, sharia business supports the bank’s 4. Commercial sub debt issuance; and
main business, i.e. to support the realization of One Million 5. Proposing new share issuance through rights issue (by
houses program, with strategic focus based on the customer approval of shareholders).
segmentation. In line with the parent business strategy, the
growth of sharia assets is directed more expansively in the Human Capital Sector
growth of consumer financing with commercial financing support. The Company needs the people transformation in order to
support the process of transformation and business growth
In line with the Blueprint of Strategic Transformation 2016- through sustainable strategy and theme, supported by the
2020, taking into account the profitability and growth, alignment of the human capital management system with
Company shall maintain the Sharia Business Unit (UUS) as the best practice.
structure and sharia business operation model until further
clarity on the spin-off mandated by the government related To strengthen the implementation of operational risks
to the sharia banking holding plan. Overall, the sharia business in the bank’s business activities, the human resource
development strategy is conducted through: development strategy also considers strengthening
BTN Genjot penyaluran KPR

Sumber foto: Audy Mirza Alwi
internal control through the adequacy of human resources d. Improving bank’s positive values through the Employer
tailored to manpower planning, employee competence Value Proposition program to attract the top talent in
development and strengthening the implementation of the manpower market;
corporate culture, such as KYC (Know Your Customer) & KYE e. Implementing remuneration policy, for variable income,
(Know Your Employee). To realize these, the short-term and fix income, and benefit, in line with best practice;
medium-term work plan for human resources development f. Establishing work climate that harmonizes with corporate
is depicted as follow: culture through cultural programs in accordance with the
1. Long-term Work Plan focus of established behavior;
a. Strengthening the focus of the 2017 cultural program g. Improving the HR performance by providing variable
aligned with increased productivity, process efficiency, remuneration to motivate;
and the implementation of GCG principles; h. Measurement of Employees Performance
b. Evaluating the career management and job family; appropriately, accurately, and accordingly to encourage
c. Compiling strategic manpower planning 2017-2019 the employee’s behavior.
with pareto allocation strategy;
d. Internalization of employer value proposition through Information Technology (IT) and Digital Banking
the directed recruitment to attract top talent; Strengthening
e. Strengthening performance-based management; It is necessary to strengthen the Information Technology
f. Using Knowledge Management System (KMS) as the (IT) adequately to support the digital banking and mortgage
facilities for transfer knowledge; and ecosystem development initiatives. In line with this, IT
g. Improving the capability of Human Capital unit to strategic initiatives are aligned with the bank’s main strategy,
conduct strategic initiative executive of work culture i.e. as a housing focus bank with increased effectiveness and
strengthening with support from top management. operational efficiency through business process automation.
2. Medium-term target In the infrastructure transformation, IT strengthening initiatives
a. Gaining talents to support the succession plan to fill is based on the Information Technology Communications
strategic positions; Strategy Plan (RSTIK), but are prioritized on ten strategic pillars
b. Developing employee competence through the learning aimed at supporting the implementation of the Transformation
and development and knowledge sharing process; Blueprint, which includes:
c. Implementing integrated HCIS (Human Capital 1. Strengthening of BTN Property Portal
Information System);

2. Establishing a Customer Relationship Management The first pillar is strengthened by internalizing the GCG principles
(CRM) to gain the 360-degree customer view, profiling, in the bank’s business and operational activities, which have
and improving customer services capability; been listed as one of the bank’s mission: “Implement banking
3. Strengthening the role of BTN Property Portal; Develop management in accordance with prudential principles and Good
internet banking & mobile banking applications through Corporate Governance to improve shareholder’s value”.
platform upgrades and integration between systems
such as iColl, iCash, and property portals. Furthermore, the second and third pillars are strengthened by
4. Developing management tools for marketing and sales implementing the GCG principles on changes to the Organizational
activity by creating digital marketing & sales tools; Structure and Business Process comprehensively, which is
5. Comprehensively refining the wealth management currently being conducted as a stage of the bank’s business
system; transformation. Broadly speaking, these changes are carried
6. Improving the operational supporting tools to add risk out by streamlining the process to separate the roles of sales,
prevention capacities; operation and risk policy. Pillars strengthening is necessary to
7. Maximizing risk profiling of the task forces reinforce the operation supervision mechanism in the office,
8. Integrating Loan Origination System and adding iCremo from the Directorate level to the Task Force level.
to monitor loan disbursement;
9. Reengineering the financing business process to lead to Meanwhile, the fourth pillar improvement is conducted
centralization model or back office digitalization system by running the roadmap of GCG implementation in four
to automate process and connect to various database; improvement phases or stages, until it reaches Governance
10. Systematization process of planning and evaluation of Excellence at the end of 2017.
corporate performance through system implementation
to increase Corporate Planning effectiveness and Risk Management Improvement
efficiency. In addition to infrastructure and human resources
strengthening, Company also focuses on the development of
Further, initiatives in the digital banking transformation, risk management-based businesses to support sustainable
among others, are developing innovation related to product growth. Overall, the risk management strengthening is based
development, feature, application, and simplification process on the strengthening of four main pillars, i.e.: (i) Strengthening
as one of the rebranding strategies to gain BTN customer and internalizing risk culture at all organization levels; (ii)
on the emerging affluent and affluent segment. To achieve Integrated capital and liquidity management; (iii) Improving
this, the enhancement of digital banking capabilities is done credit risk management capabilities, and (iv) Strengthening
by forming a Digital Ecosystem organization that operates compliance functions for comprehensive operational risk
independently of the task forces. The efforts to increase practices. The strategic initiatives that will be implemented
incubation and commercialization capabilities are as follows: to strengthen the four pillars are as follows:
1. Improving incubation capability through: 1. Strengthening and internalizing risk culture;
a. Putting the research output to product development; 2. Strengthening integrated capital and liquidity management
b. Integrating products into digital channels; and by developing a liquidity risk monitoring system;
c. Developing user experience-based customer journey 3. Improving credit risk capabilities with credit risk
2. Enhancing commercialization capability through: application development;
a. Developing marketing and promotion strategies; 4. Strengthening compliance function for more comprehensive
b. Extending strategic alliances with various potential operational risk practices.
partners for deals/promotions;
c. Mapping market target; Delivery Channel Sector
d. Developing transaction operations and back office The optimization of delivery channels in supporting the
business is done through the development of the quantity and
Good Corporate Governance (GCG) Enhancement variety of channels with network expansion strategies focused
Company realize and understand the importance of GCG on five key initiatives:
implementation as one of the strategic steps to achieve 1. Regionalization strategies;
the vision as the leading bank in housing finance. Therefore, 2. Branch expansion;
the strengthening of organizational structure and business 3. Kiosk opening;
processes based on the principles of GCG are consistently 4. Agent banking; and
carried out through the strengthening of four main pillars of GCG 5. Digital Channel.
implementation: (i) Commitment on Governance; (ii) Governance
Structure; (iii) Governance Process, and (iv) Governance Outcome.
Disclosure Of Other Aspects
The Company seeks to disclose information related to several aspects in meeting the transparency
principles in the good corporate governance implementation. The aspects are described in the
subchapters as follow.
Shares and Bonds Buyback

Shares and Bonds Buyback are performed to reduce the shares or subordinated bonds issued
by the Company by buying back the shares or subordinated bonds. Payment procedures are
conducted in accordance with the prevailing regulations. Up to the end of 2017, the Company
did not perform any shares and subordinated bonds buyback. The description is in line with the
BI/OJK Regulation, as listed in the following table:
Total Bonds Buyback Profit Increase from Bonds

Bonds Buyback Policy Description (million Rp) Buyback Price Buyback (million Rp)
None None None None
Provision of Funds to Related Parties and Large Exposures

The Company provides funds to related parties in 2017, with the approval of the Board of
Commissioners. Provision of funds to related parties and large exposures are as follow:
No. Provision of Funds Total

Debtor Amount (million rupiahs)
1 To Related Parties None None
2 To 50 Essential Debtors: 147 16,446,982
a. Single Loan 44 6,721,389
b. Group 103 9,725,593
The Company never violates the Legal Lending Limit (LLL) for the January – December 2017
period. The Compliance Director, through the compliance task force continuously monitors
the Company’s compliance with the LLL’s provisions and reports it to BI every semester. The
provision of funds to the related parties and/or provision of funds of large exposure take into
account the prudence principles and the prevailing legislation, and have met the provision of
Bank Indonesia on LLL.
Social Activities Funding

Social activities funding is disbursed through the Corporate Social Responsibility (CSR) activities.
The overview of funds provided for CSR activities throughout 2016 and 2017 are as follows:

Activity Sector Fund Disbursement
2016 (Million Rp) 2017 (Million Rp)
Economy 753.03 451.29
Art and Culture 199.20 114.50
Sport 94.95 0
Education 409.32 227.93
Health 54.67 20.00
Facilities and Infrastructure 2,250.93 4,214.47
Religion 564.01 120.00
Nature Preservation 44.95 0
Total 4,371.06 4,998.07
Further information on the Company’s CSR programs is providing funds for related parties with a conflict of interest is
provided in the Corporate Social Responsibility (CSR) section included in a separate Board of Directors Regulation stating
of this Annual Report and 2017 Sustainability Report. that the Bank is prohibited from funding related parties without
obtaining an approval from the Board of Commissioners.
Funding Political Activities
In 2017, there was no funding for political activities or political In the event of a conflict of interest between the Company
parties. and the shareholder, member of Board of Commissioners,
member of Directors, Executive Officers, and/or other parties
Information Disclosure on Administrative related to the Bank happened, then the member of Board of
Sanctions for Capital Market Authorities and Other Commissioners, member of Directors, and Executive Officers
Authorities are prohibited in taking actions that might harm the Bank or
In 2017, no material administrative sanctions affected the reduce profits of the Bank, and shall disclosed the conflict of
Company’s business sustainability and no administrative interest in every decision. Disclosure of conflict of interests is
sanctions were imposed to the members of the Board of stated in the Minutes of Meeting, and contained at least the
Directors or members of the Board of Commissioners. name of party who has conflict of interest, the issue related
to the conflict of interest, and the basic consideration for
Transactions with a Conflict of Interest the decision.
In the event of a transaction with conflict of interest
happened, the Company has complied with the related The conflict of interest has been disclosed in each decision
provision stipulated by Bank Indonesia in BI Circular Letter and has been well-documented. In principle, all Company
15/15/2013 on GCG Implementation for Commercial Banks, employees avoid to make decisions in situations and conditions
and the regulations in capital market President Decree of the under a conflict of interest. Loans are granted to the Board of
Capital Market and Financial Institution Supervisory Board Directors, Board of Commissioners and Company Employees
No. Kep-412/BI/2009 on Affiliated Transactions and Conflict on reasonable limits and in accordance with applicable Bank
of Interests on Certain Transactions. regulations without any distinction from other customers
(arm’s length basis). Information related to the transactions
The Company has a Policy on Transactions with a Conflict with conflict of interest throughout 2017 is as follows:
of Interest as set forth in the Board Manual. The policy on
Type of Transaction Value

Funder Name and Position Decision Maker Transaction (million Rp) Description
Name Position
None None None None None None None
Corporate Social
Responsibility
The Company recognizes the success in developing the
Company’s business needs to be achieved comprehensively
and in balance. That shall be achieved when every aspect of
triple bottom line, i.e. profit, people, and planet is considered
and realized together. Therefore, the Company always carries
out the Corporate Social Responsibility, in accordance with
the sustainable governance principles.
06
06 Corporate Social Responsibility
477 Introduction
479 CSR Kaleidoscope 2017
481 CSR Programs and Budget in 2017
483 Responsibility to Products and Customers
489 Responsibility to Employment, Health, and Safety
493 Responsibility to the Environment
496 Responsibility to Social and Community
Development

Introduction
The Company believes that business sustainability is achieved there are eight principles that have been applied to the
by the financial target, and supported by non-financial Company’s business activities, i.e. (1) Responsible Investment,
investment, one of which by the Corporate Social Responsibility (2) Strategy and Sustainable Business Practices, (3) Social and
(CSR) program and Partnership and Community Development Environmental Risk Management, (4) Good Governance, (5)
Program (PKBL). The Company considers the corporate social Informative Communication, (6) Inclusiveness, (7) Priority
responsibility concept as a part to contribute to the sustainable Sector Development, and (8) Coordination and Collaboration.
economic development. Through consistent CSR activities, the The implementation of the principles is illustrated in various
Company hopes to make a real contribution to sustainable CSR and PKBL activities, which has been consistently
development, support long-term business success and meet implemented by the Company with the triple bottom lines
the expectations of the Company’s stakeholders. approach, i.e. economic, social, and environment.
The Company always conducts the Corporate Social As a form of information disclosure to CSR and PKBL
Responsibility activities, in line with the Company’s sustainable programs, the Company has prepared Sustainability Report
governance principles, and as a fulfillment of the Financial and PKBL Program Report, describing details of Corporate
Services Authority Regulation No. 51/POJK.03/2017 on Social Responsibility various activities throughout 2017.
Sustainable Finance Implementation. In the implementation,
Vision & Mission CSR
Vision
“To care for the interests of society and the environment by contributing to
sustainable economic development and community empowerment, especially in
the housing/residential areas, which is Bank BTN’s core business”.
Mission
1. To improve the welfare of society and environment
2. To develop the Bank’s values and culture
3. To establish a positive Bank’s image in the public eye
4. To enhance the cooperation and mutual respect with the communities
and the environment where the Bank Offices operate
CSR Program Implementation Basis to the Board of Directors’ Circular Letter Number 40/
The company refers to the provisions of the applicable laws DIR/HCLD/2010 on Guidelines for the Implementation
and regulations in implementing CSR programs, including: of Bank Tabungan Negara (Persero) Tbk’s Partnership
1. Law Number 40 of 2007 on Limited Liability Company; Program with Small Businesses.
2. Law Number 19 of 2003 on State-Owned Enterprises;
3. Regulation of the Minister of State-Owned Enterprises CSR Management
of the Republic of Indonesia No. Per-02/MBU/7/ 2017 The company has established a unit that specifically handles
on the Second Amendment to the Minister of State- CSR, i.e. Community Development Program Unit under the
Owned Enterprises Regulation No. Per-09/MBU/07/ Corporate Secretary Division, this symbolizes the Company’s
2015 on Partnership and Community Development commitment to play a role in sustainable development
Program of the State-Owned Enterprises; to improve quality of life and beneficial environment. The
4. Shareholders Deed of Amendment to the Articles of Corporate Secretary Division coordinates or collaborates with
Association of PT Bank Tabungan Negara (Persero) Tbk the following entities in carrying out CSR activities:
Number 34 dated August 11, 2008; 1. Internal Parties, i.e. Bank BTN Branch Offices spread all
5. The Board of Directors’ Regulation Number 17/PD/ over Indonesia or other work units; and
DPKK/1203 dated December 15, 2003 on PT Bank 2. External/Third Parties, consisting of:
Tabungan Negara (Persero) Tbk’s Partnership Program ›› Government
with Small Businesses and Community Development ›› University
Program; ›› Non-Governmental Organization
6. The Board of Directors’ Circular Letter Number 40/DIR/ ›› Social Institutions
HCLD/2010 dated October 8, 2010, on Guidelines for the ›› Mass Media
Implementation of PT Bank Tabungan Negara (Persero) ›› Other agencies with the capacity and capability to carry
Tbk’s Partnership Program with Small Businesses; out the Company’s CSR activities.
7. The Board of Directors’ Circular Letter Number 8/DIR/
HCLD/ 2012 dated March 1, 2012, on the Amendment
Company CSR Management

Structure 2017 Corporate Secretary
Planning, Budgeting & Protocol Corporate Communication Investor Relations
Corporate Promotion & Medical Relation
Marketing Communication Coordinator
Community Development Program
Web Content Coordinator

CSR Kaleidoscope 2017
01 02
Training and Assistance of Taman Mr. Maryono and Mrs. Rini Soemarno
Bacaan Girsang State Elementary provided directives to students of
School (SDN) SDN 3 Sembalun as the beneficiaries
of Bank BTN
03 04
Mr. Maryono and Mrs. Rini M. Soemarno Training for pottery artisan in the
symbolically gave the aid in the form of Karanganyar area for paint and color
Hand Tractor Mr. Maryono and Mrs. Rini techniques, located in Bank BTN
M. Soemarno symbolically gave the aid Balkondes Karanganyar
in the form of Hand Tractor
05 06
Provided aid equipment for Balkondes The President Director of Bank BTN,
BNI - Wanurejo Village, in a series of Mr. Maryono boarded the Katinting
Tour de Borobudur activities Boat, provided by Bank BTN to
increase community empowerment
activities around Lake Limboto
07 08
Facilitating the educational facilities Giving a book of ‘One Price Oil
and infrastructure to SMK (Vocational Fuel Book’ to Gorontalo Provincial
School) Pratidina in the breakfasting Government Representatives,
together event with Himbara and the Gorontalo Regency, Indonesian Army,
Bank BTN PIC Communities, and Academicians on
the 72nd Anniversary of Indonesia
09
Inauguration of Pinge Bali Tourism
Village by Minister of State-Owned
Enterprises Mrs. Rini M Soemarno

CSR Programs and Budget in 2017
CSR Programs added value for stakeholders and surrounding community, and
The Company has designed a systematic and integrated supports the sustainable development goals program.
CSR programs by taking into consideration the needs of the
targeted community out of the realization of the Company’s CSR In line with the CSR Vision and Mission, the Company’s CSR
program. The Company has compiled CSR program to achieve program targets several sectors including education, health,
the CSR Vision and Mission. This program is in line with the 3P art and culture, sports, religion, improving socio-economic
(people, profit, planet) principle, and is oriented towards creating welfare, environmental management, and other incidental
matters. These programs are organized into four key areas:
Responsibility to Products
and Customers
Responsibility to Responsibility to
Social Development Employment, Work Safety
and Community and Health
Responsibility to
the Environment
CSR Budget for CSR Program. The realization of disbursement up to

The Company always conducts CSR programs annually December 2017 reached 102.96% or Rp5,148 billion. The
to provide maximum benefits to stakeholders, in terms funds are absorbed in the scope of CSR activities, which cover
of economic, social, and environmental. Consistently, the economy, art, culture, sports, education, health, facilities and
Company provides special budget to support CSR programs. infrastructure, religious and worship, and nature conservation.
In 2017, the Company allocated a budget of Rp5 billion
Table Realization of CSR Program Fund Disbursement 2015-2017
Activity Sector Disbursement (Rp Million)
2015 2016 2017
Economy 2,425.39 753.03 451.28
Art and Culture 49.65 199.20 114.50
Sport 49.22 94.95 -
Education 1,942.68 409.32 227.94
Health 387.07 54.67 20
Facilities and Infrastructure 4,123.94 2,250.93 4,214.47
Religion 1,314 564.01 120
Nature Preservation 473.33 44.95 -
Total 10,765.28 4,371.06 5,148.19
In addition to CSR activities, as a BUMN Bank, the Company part of the Company’s Annual Report. The PKBL performance
also conducts Partnership and Community Development report is in accordance with the Minister of SOEs Regulation
Program. The Company strives to take an important role as No. PER-02/MBU/7 2017 dated July 5, 2017, on the Second
a business entity in assisting the Government in realizing Amendment to the Ministry of State-Owned Enterprises
the community welfare people with the development and Regulation No. PER-09/MBU/04/2015 on the Partnership
empowerment of the community’s potential. PKBL Program is and Community Development Program of the State-Owned
a form of awareness that the success in the business industry Enterprises.
is not only determined by the Company’s management and
operational performance, but also by the support of the In 2017, the Company has disbursed the Partnership and
surrounding community. Community Development Program funds in the amount
of Rp26.23 billion, increased by 75.84% compared to
The Company has specifically prepared its own report to the previous year. The detail of Company’s PKBL fund
report on the performance of the PKBL, which is an integral disbursement is as follow.
Table: Realization of PKBL Program Fund Disbursement 2016-2017
Activity Sector Disbursement Realization (Rp Million)
2016 2017
Partnership Program 1,779.60 6,201.20
Community Development Program 13,153.14 20,033.23
Total 14,932.74 26,234.43

Responsibility to
Products and Customers
The Company, as a government bank and Policy

The Company believes customers to be one of the most
as the pioneer of housing provider for the important stakeholders in the Company’s sustainability. The
community, participates in optimizing the Company strives to maintain overall customer satisfaction
level by implementing the best service system to fulfill its
service facility by entering the digital banking responsibility to the customers. The handling and settlement
transformation period. The Company policy of customer reports is a form of the Company’s
responsibility to protect the customers’ rights in its interaction
presents numerous digital technology-based with the Company. This measure is not only aligned with
services for all products and transactions in the Company’s culture and values, but is also important for
developing sustainable business.
stages to make banking transactions more
efficient, easier, and simpler. Program Plan and Target in 2017
The Company continues to commit to creating competitive
advantage by building customer’s trust through various
program that can enhance the relationship with the customer.
In 2017, the focus of customer service improvement is the
strengthening of digital banking services for customers. The
Company has established a work plan to increase customer
satisfaction by conducting various programs, such as customer
protection, service development, customer education, and
complaints settlement of customers.
CSR Activities related Product and Customers in

2017 and Activity Impact
The Company constantly improves the operational wheel
performance in order to satisfy the customers because the
trust given by the customers is the Company’s spearhead
in achieving sustainable business activities amidst the
increasingly competitive competition. The excellence
service for the customer is the important key to achieve the
objective. The best service has a broad meaning, ranging
from the socialization of rights and obligations, to services to
customers. Therefore, in maintaining the trust, the Company
implements the corporate social responsibility program for all
customers. Throughout 2017, there are several CSR programs
related to the customers, i.e.:
Customer Loyalty Program Layanan TCASH-BTN Cermat
This program intends to meet the customers’ expectations to

build loyalty. Another objective is so the customers can refer service improvement. It is expected that with the Housing
the Company as one of the Banks preferred by the community. Loan Plaza and Housing Loan Hotline programs, the
The Company performed various efforts in improving customer customers can find a mortgage product that is more
satisfaction, through the improvement of product service suitable for them.
provided for the customer, among others:
1. TCASH-BTN Cermat Service 3. Company Prepares Cheap Houses for Informal Workers
To develop non-office financial services that are in line to Support One Million Houses
with the financial inclusion program (Laku Pandai), the In order to reach community who has yet to have a house,
Company and Telkomsel are working together to launch as well as to succeed the One Million Houses Program,
the TCASH-BTN Cermat service product. TCASH-BTN the Company expands the Housing Loan (KPR) access for
Cermat Service is a service that merges the benefit of the online motorcycle driver (ojek), which was launched
electronic money TCASH with BTN Cermat Savings. This in May 2017. The objective of this program is to reach
product is designed to facilitate the customers to perform more and more Indonesian people to have housing,
transfers or sending money from BTN Cermat to e-money especially for low-income and informal workers. Through
Telkomsel TCASH and vice versa. The partnership is also a this strategic move, the Company provides opportunity
measure to support the SOE synergy. The Company keeps for approximately 27,000 online motorcycle drivers who
reaching the unbanked community, which is unreachable are members of GO-JEK Partners to access the Housing
due to their geographic location. The partnership between Loan. In line with these commitments, the Company opens
the Company and Telkomsel will also create an integrated the opportunities for GO-JEK Partners in Semarang to be
mobile financial services ecosystem, especially in the able to own houses with installments less than Rp50,000
context of accelerating the Non-Cash National Movement per day.
(GNNT) program.
In addition, the Company provides Micro Housing Loan
2. Housing Loan Plaza and Housing Loan Hotline facilities to other informal workers. The facility is a form
As a Company’s innovation to facilitate and accelerate of the Company’s commitment to reach more people to
the Mortgage Services to support the One Million Houses own houses, especially among the lower middle class.
Program, the Company launched the Housing Loan Plaza The informal workers can have houses with maximum
and Housing Loan Hotline. This is also a form of customer credit ceiling of Rp75 million and 20 years tenor by using

6. Inform Customers about every change, addition, and or

elimination of the Company’s product characteristics.
7. Include information on the characteristics of the bank
products with visible placement and or form and or are
clearly readable and or easily understood.
8. Provide information on the characteristics of bank
products which are easily accessible by the general
public and publish is through the Company’s website i.e.
&fAwww.btn.co.id; which is accessible by the general
public.
Customer Education Program

One effort to increase the knowledge and understanding of
financial institutions, products, and services, is the financial
education to the community. The Company has carried out
Dukung Sejuta Rumah, Perseroan Siapkan Rumah Murah Bagi Pekerja Informal
several financial literacy program and financial education
annually. This is in line with the directive of Financial Services
BTN Micro Housing Loan. BTN Micro Housing Loan offers Authority (OJK) on the blueprint of Indonesia national strategy
financing scheme with amount of down payment and of financial literacy, and Financial Services Authority Regulation
installment suited to the worker’s ability. This step is No.76/POJK.07/2016 on financial literacy and financial
in line with financial inclusion to reach more Indonesia inclusion improvement in the financial services sector for
community in accessing the banking service. consumer and/or community. In 2017, the Company launched
an education program to the Company’s customer through
Product Information Access the launching of digital solution i.e. banking application for
The Company has established and implemented system smartphone, in addition to internet banking. This application
and procedures to ensure that the Company has provided is available on playstore/appstore. This application facilitates
transparency for product information in line with the Bank the customers to pay insurance/credit card bill, to transfer and
Indonesia provisions to support services and access for pay e-commerce purchase, which currently is the consumers
customers. The Transparency of Information on Bank Products shopping trend, and also to top up digital payment such as
and Usage of Customer Personal Data can be provided by: gopay, grabpay, etc.
1. Providing written information on the characteristics of
each Bank Product in Bahasa Indonesia in a complete Customer Health and Safety
and clear manner, As a bank that specializes in financing housing, the Company
2. Providing the information for Customers in written and continuously commits to maintaining the customer’s health
verbal form and safety. One of the Company’s efforts to maintain
3. Not providing misleading and/or misconduct information customer health and safety is by providing funding for
4. Information on the characteristics of the Bank Products decent and affordable housing that still meets the health,
include: Product’s name, product type, Benefits and risks safety, and comfort requirements in line with the minimum
inherent to the product, Terms and procedures for use of standards specified in the Minister of Settlement and
the Bank Product, Inherent Costs of the Product, Interest Regional Infrastructure Decision Number 403/KPTS/M/2002
or profit sharing and profit margin, Period validity of the on the Technical Guidelines for the Construction of Simple
product, and issuer/originator of Banks’ products. Healthy Housing (Rs Sehat). The Company collaborates
with developers and contractors to provide decent housing
5. Provide information on insurance programs for products
for the community. The Company upholds professionalism,
related to bank products and pooling of funds
Properti Penggerak Pembangunan

Sumber: Mushaful Imam
transparency, and fairness in their collaboration to ensure that confidential and sensitive information is protected from
the customer’s health and safety are maintained. In addition, computer viruses as to minimize damage from computer
the Company also guarantees customer safety by securing the viruses infiltration. The Company conducts various efforts
confidentiality/privacy of customer data. to maintain customer data, i.e. installing software approved
and updating it periodically, giving IT security training to the
Customer Data Confidentiality user who uses IT resources, implementing management/
As a financial agency, the Company is committed to standardization password to ensure access to the protected
maintaining customer trust and confidentiality by referring to information.
the following provisions: (1) Law Number 7 of 1992 on Banks;
(2) Law Number 10 of 1998 on Amendment to Law Number Customer Deposit Guarantee
7 of 1992; (3) Bank Indonesia Regulation Number 2/19/ Public confidence in the banking industry is one of the keys to
PBI/2000 on the Requirements and Procedures for Giving maintaining stability in the banking system. The trust is gained
Orders or Written Permission to Disclose Confidential Bank when there is legal certainty in the regulation, supervision of
Information related to the Customer confidentiality policy. the Bank, and the guarantee of customer deposits of the Bank.
As stipulated in Law No. 24 of 2004 on Indonesia Deposit
As a form of Company’s commitment in improving the Insurance Corporation (IDIC), the Company provides guarantee
information confidentiality to ensure the business and for the protection of money deposited by the customer
create operational activities that is better, safe, smooth, and through Indonesia Deposit Insurance Corporation.
auditable, as well as to maintain the bank trustworthy image,
the Company has specific policy in the form of Directors’ Customer Reporting Mechanism
Circular Letter No. 40/DIR/ICTD/2016 on Information Security Referring to the POJK No. 1/POJK.07/2013 on Consumer
Guidelines for PT Bank Tabungan Negara (Persero) Tbk. In Protection in Financial Services Sector, the Company conducts
this policy, it is stated the pre-requirements to ensure every various efforts to meet the customer expectations through

Customer Complaints System (SPN) to monitor the completion integrated. In addition, the online, web-based, and integrated
of complaints thoroughly. The SPN is a web-based system that SPN supports a more structured and well-monitored complaint
can support the monitoring of the report settlement status handling mechanism.
and provide certainty for customers about the timeframe
required by the Company to settle that report. Customers can The stages for handling customer complaints since the
also submit their report and check their report status at Branch complaint was submitted up to the evaluation stage are
Offices all over Indonesia because the system is online and illustrated below.
Customer Reporting Mechanism
Receipt of Customers Complaints Customer Complaints Coordination inter Division

Handling Supervision for Customers Complaint Resolution
Receipt of Customers Supervision Handling Receive notification

Complaints (endusers) Customers Complaints of customer complaints
Inquiry customer See details of customer See customer complaints

complaints on the NES complaints on NES details on NES
Already registered Need escalation group Coordination resolving a

N on NES Y N support? Y complaints process
Convey Progress Escalation of customers Entries complaints

Complaints to the complaints resolution resolving in NES
Customers process
Data entry of customer Coordination resolving a

complaints to NES complaints process
Convey Registration Entries results resolving

Number the Customer a complaints
Convey the Results of the Closing complaints

Complaints Completion
to the Customer
The customer reporting center can be accessed through various channels, including:
Head Office of PT Bank Tabungan Negara (Persero) Tbk.
Menara Bank BTN Jl. Gajah Mada No. 1 Jakarta 10130
Phone: (021) 6336789
Fax: (021) 6336719
Contact Center 1500 286
Email Contact Center: btncontactcenter@btn.co.id
The following is the customer complaints received and the

followed-up progress in 2017.
Complaint Type 2017
Total On Progress % Finished %
Fund Raising 6 9 0 6 100
Fund Disbursement 1,392 128 12.25 918 87.77
Payment System 30,612 1,168 3.44 32,808 96.56
Other Products 2220 276 7.81 3,258 92.19
Cooperation Products 2 15 1.01 1,474 98.99
Total 40,051 1,587 3.96 38,464 96.04
The Company’s effort to settle the complaints include: In 2017, the Customer satisfaction survey resulted in an
1. Carrying out an in-depth verification by coordinating 80.7% score, which increased by 2.4% compared to the result
with the branch office, division and other relevant parties of the survey in 2016. In accordance with the commitment to
such as: network provider, developer, notary, etc.; provide excellent service to our customers, the Company will
2. Providing a notification for customers about the report continue to improve the accessibility of the services provided
settlement process; and provide products that meet the needs of our customers.
3. Monitoring the fulfillment of the Service Level
Agreement (SLA) for report settlement; Program’s Impact
4. Improving the procedures and increase staff understanding The CSR activities related to customer responsibility that has
and provide information for customers to avoid issues been performed by the Company throughout the year 2017,
reported by customers from being repeated. have provided a sense of comfort and security of transactions
for customers, thus it impacts on the growth of the Company’s
customers from year to year. This is evidenced by the increase
Customer Satisfaction Survey
in customer satisfaction index by 2.4% compared to the results
The Company cooperates with third parties to conduct the
of the 2016 survey.
customer satisfaction survey. The survey is conducted by using
qualitative and quantitative approaches. The Company uses in-
depth interview method for qualitative approach, and face-to- Certification and Awards
face interview method for quantitative approach. The following The Company has received a number of awards and
is the results of customer’s satisfaction survey in 2017. certifications for providing good services for customers. In
2017, the Company received the TOP 40 Brand In Indonesia
Hasil Survei Kepuasan Nasabah Tahun 2017 award in the SWA Award, The Best Bank In Digital Services and
The Most Efficient Bank in the Indonesia Banking Award, held
Year Survey Result by Tempo Magazine, and Other Awards.
2015 78.9%
2016 78.3%
2017 80.7%

Responsibility to Employment,
Health, and Safety
For the Company, the implementation of responsibilities to employees, which

includes aspects of employment, occupational health and safety, is a very
important factor as it contributes to the Company’s operational performance.
Therefore, the Company put great concern to aspects of employment, which
covers association rights, education and training, employee career path, and
Occupational Health and Safety (OHS).
Employment Aspect employees. Throughout 2017, the Company implemented

Policy social responsibility activities in the field related to employment
In the Human Resources (HR) management, the Company has through several programs including:
a special policy related to HR management, which is stipulated 1. Employee Welfare Program
in the Board of Directors’ Regulation No. 29/DIR/CMO/2011 Welfare becomes one of the employees’ motivations in
on PT Bank Tabungan Negara (Persero) Tbk Guidelines for improving achievement and productivity, and ensuring
Human Capital Management Policy (PKMHC). In terms of the achievement of performance targets. The Company
external policy, the employment policy refers to the Law No. performs an employee welfare program in several
13 of 2003 on Employment. This is to ensure compliance ways including: increased employee benefits, bonuses,
with prevailing legislation and to minimize the occurrence of promotion of rankings and titles, and awards to
violations of human rights in the employment. The Company outstanding employees. The permanent employees have
also provides care and high commitment to gender equality the remuneration component and facilities, i.e. basic salary,
and equal opportunities, job training to improve employee Holiday Allowances, leave allowance, clothing allowance,
professionalism, and appropriate remuneration system. facilities (position, housing, vehicle, expertise, oil fuel,
location, tax), performance bonus, housing loan, pension,
Employment Work Program and Target in 2017 Jamsostek (health insurance for formal workers), medical
Therefore, the CSR program planning related to employees, is checkup, medical aid, and relief money. In 2017, the HR
arranged in line with the direction and strategy of the Company budget related to the employees’ welfare is Rp2.4 billion,
in HR management. The focus of the program in 2017 is to increased by 78% compared to 2016, i.e. Rp1.87 billion.
increase the HR competence (People Transformation) in order
to transform the digital banking. In line with the business 2. Employee’s Remuneration
transformation plan, the human resources strengthening is The Company gives remuneration to every employee
carried out by enhancing and improving HR capability as an based on a merit system, i.e. by prioritizing employee’s
agent of transformation. performance, competence, and integrity in the form of
basic salary, allowances, and other amenities in accordance
Programs in 2017 with the Company’s Regulation and prevailing rules and
The Company continues to evaluate and improve its policy legislation. The remuneration system of the Company
related to the responsibility to employees, to establish has to comply with the Employee’s Wage regulation in
harmonious relationships between the Company and its Indonesia and adhere to the conventions of International
Labour Organization (ILO) on Equality of Remuneration, principle of equality and employment opportunity, by not
where the salary scale for Company’s new employees distinguishing between men and women.
are above the standard minimum wage applicable in the
operational area of the Company. The employment opportunity offered is likewise. The
Company provides equal opportunity for all people,
Tabel Rasio Gaji Tertinggi dan Terendah Tahun 2017
both men and women, regardless of ethnicity, religion,
race, class, gender, or physical condition to participate
Description Ratio
in its employee recruitment program. The appointment
Highest and lowest Employee salary 35.4 :1 of candidates is based on the results of the selection,
evaluation results on probation and employee orientation.
Highest and lowest Director salary 1.1 : 1
Highest and lowest Commissioner salary 1.1 : 1 5. Industrial Relations

Highest Director salary and Highest The Company always strives to respect the rights and
Employee salary 2.59 : 1 perform the obligations to the employees in accordance
with the prevailing laws and regulations, in order
to create a harmonious relationship. The Company
3. Equal Opportunities in Education and Training positions its employees as partners to achieve the
In order to improve the quality and create competent common goals. In the operation, the Company seeks
HR, the Company routinely provides employee education to optimize the management of human resources by
and training programs that refer to the development taking into account the interests of the employees. As
of the banking industry. The Company provides equal part of the implementation of the Company’s human
opportunity to all employees in developing their potential resources management policy, the Company established
through education and training programs as stated in a Bipartite Cooperation Institution (LKS Bipartit), i.e. a
Board of Directors’ Decree No.04/KD/SIPD/2017 dated communication forum and consultation on matters related
May 29, 2017. The participation in the education and to Company’s industrial relations, whose members consist
training contributes significantly to the achievement of of Stakeholders and Bank BTN Trade Unions (SPBTN).
the Company’s business performance.
In addition, the Company has established Collective Labor
The form of education and training that has been Agreement (CLA) which contains the rights and obligations
implemented is divided into three groups of programs, i.e.: of the Company and employees in order to create
School of Leadership, School of Operation, and School of harmonious and just industrial relations. The Company
Business. In 2017, the Company has invested Rp164,686 holds meeting routinely with the workers’ union. The
million for these training, which consists of Rp76,198 meetings discuss areas related to the fulfillment of the
million for School of Leadership, Rp52,673 million for rights and obligations of employees or the formulation
School of Operation, and Rp35,815 million for School of of disciplinary sanctions if there is a breach of discipline
Business. Hence, the average training reached 24 hours by employees. In 2017, the rights of all of Company’s
of training per attendee. employees (100%) are covered by CLA.
4. Equality for All Employees 6. Employee Turnover Rate

The Company applies the principle of diversity and The Company strives to maintain an employee turnover
equality to all employees in accordance with the basic to ensure that the Company is doing well. In 2017, the
principles of employment contained in Law No.13 of employee turnover rate is 4.82% or equal to 499 employees,
2003 on Employment. In 2017, the Company has 10,360 which is lower compared in 2016. The employee’s turnover
employees, which consist of 5,797 (56%) male employees rate is influenced by 131 employees who retired, 26
and 4,563 (44%) female employees. The composition employees requesting for early retirement, 8 employees
of employees by gender reflects that the Company’s died, 245 employees resigned, and 55 employees are laid
recruitment system is organized by upholding the off, and 34 employees are due to other causes.

Occupational Health and Safety Aspect In order to prevent work accidents and various types of
Policy disasters in the workplace, the Company has equipped all
The Company prioritized the health and safety aspects. of its operational offices with a variety of standard safety
The Company strives to create a safe and comfortable working equipment. In addition, the Company conducts OHS training
environment to support the creation of optimal enterprise for employees to understand and realize the importance of
performance. This is because, the employee’s productivity will OHS and to act properly in accordance with OHS rules. The
increase along with the improvement of comfort and safety Company regularly conducts an inspection of all OHS facilities,
in the Company’s environment. In addition to referring to Law to ensure that all facilities work in their maximum capacity
No. 13 of 2003 Article 86 paragraph 2 on the protection of when needed. By providing adequate health facilities and
employees, the implementation of employees’ health and always maintaining employees’ safety, the Company expects
safety programs are also contained in the Company’s internal that employee productivity will be maintained and thus, it will
policies, i.e.: continue to improve.
1. Directors’ Regulation No. 5/PD/PGSD/2017 dated
October 31, 2017, on the Occupational Health and Occupational Facilities and Safety
Safety Management System Policy; To ensure effectiveness in occupational safety implementation,
2. Directors’ Circular Letter No. 60/DIR/PGSD/2017 dated the Company has equipped every operational office with various
October 31, 2017, on the Standard Operating Procedure work safety equipment. Light Fire Extinguisher (APAR), Smoke
of Occupational Health and Safety Management System Detector, Diesel Pump, emergency ladder, and safety signs
are in accordance with the standard of fire safety equipment,
Work Program and Targets of Health and based on the Minister of Public Works Regulation on Technical
Safety Program 2017 Requirements of Fire Protection System in Building and
In 2017, the Occupational Health and Safety (OHS) focused Environment. The Company also conducts an inspection, or
on improving the competence, training, and awareness of regular safety inspection of safety equipment to determine its
employees in working. Thus, the implementation of OHS feasibility level. The employees must have certificate issued
can run optimally with zero accident target. The Company by the Office of Manpower and Transmigration of DKI Jakarta
always provides adequate health facilities for employees. It is Province for operators of safety equipment, such as lifting and
expected that employee productivity will be maintained and it hauling aircraft. The environment must have a fire situation
will continue to improve. The safety management is intended plan and the laying of fire safety operational procedures in
to prevent the occurrence of work accidents. the employee room and every floor of the building so that all
employees are well educated.
Occupational Health and Safety Program
In 2017, the Company conducted various activities to improve Up to 2017, the Company regularly involves employees in
the understanding and skills to deal with Occupational Health the certification of “Training and Certification of Occupational
and Safety (OHS) issues. The Company is committed to creating Health and Safety (AK3U) Specialist” held by BPJS Health. All
a healthy work environment, free of injury, and conducting employees are also enrolled in Social Security (Jamsostek)
operational activities in accordance with the applicable rules. through BPJS Employment. This program includes Old Age
To achieve workplace health, the Company conducts health Security Program (JHT), Accident Insurance Program (JKK),
program efforts on business processes, regular Medical Check and Life Insurance Program (JK), aimed to ensure the security
Up facilities, training, medical emergency response simulations, and certainty for employees from socio-economic risks such
and workshops on Occupational Health. The Company also as work accident on site, disability, old age, and death, which
conducts periodic health checks on employees and enrolls resulted in a reduction or termination of labor income.
employees in the Social Security Agency (BPJS) Employment
and Health program, in accordance with applicable provisions, Safety and Health Management System (SMK3)
provides assistance in childbirth, examination, treatment, As the Company’s commitment to OHS management, in
and health care of employees, and cooperates with various 2017 the Company has compiled and endorsed the policy
hospitals scattered in the company’s operating area. of Occupational Safety and Health Management System
(SMK3). The policy stipulates SMK3 Standard Operational 3. If the reported party is a member of Directors or the
Procedure (SOP) and Corporate K3 Specific Policy. The aim family, then alleged violations report is addressed
of SMK3 implementation is to increase the effectiveness directly to the Board of Commissioners.
of occupational safety and health protection in a planned, 4. If the reported party is a member of Board of
measured, structured, and integrated way as well as to prevent Commissioners or the family, then alleged violations
workplace accidents and occupational diseases. report is addressed directly to the President Director.
In 2017, the Company also again conducted AK3U Certification With effective implementation and management of
to several employees. This certification program is carried employment practices and human rights, in 2017, there were
out in the framework of the Occupational Safety and Health no reports of the employment practices and human rights
Regulations issued by the Ministry of Manpower and violation, including discrimination incidents experienced by
Transmigration of the Republic of Indonesia. The safety and the Company’s employees.
health certification materials include:
1. Facilities and infrastructure that support the building Quantitative Impacts
operation, e.g. elevator, generator, air conditioning, Implementation of CSR policies related to employment in 2017
lighting has been effective in accordance with its objectives to meet
2. Regular medical check-ups for employees the interests of employees, in order to create alignment of
3. Supporting working equipment shall have no effect on employee objectives with the objectives of the Company. With
health the alignment of objectives, the employees’ turnover rate has
4. Employees’ rotation periodically to maintain their reduced. In 2017 the employee turnover rate decreased to
psychological level 4.82% compared to the year 2016, which was 4.96%.
Table: Company’s Employees Turnover

Work Accident Rate
In 2017, the Company has managed the health and safety of
Year % Turnover
the employees optimally. Noted, that during that period there
is no employee who in their work activities are often exposed 2015 4.24%
or risked getting certain occupational diseases (zero accident). 2016 4.96%
Employment Problem Complaint Mechanism 2017 4.82%
In order to provide protection for employee in carrying out their

duties and responsibilities effectively, the Company provides
complaint channel for the employee related to the Company. In addition, proper management of health and safety facilities
Finishing employee’s complaint is one of the Company’s for employees has resulted in significant improvement of
responsibilities in the field of employee protection in order to employee health and performance. This is evidenced by
ensure the rights related to the Company. the proper management of health and safety facilities for
employees, that has resulted in significant improvement of
There are several ways to send report related to alleged employee health and performance. Given the implementation
violations that happened. The mechanism for employee’s of safety management that is supported by socialization and
complaint delivery is as follows: various training activities, it has a fairly effective impact. In
1. If the reporter is the Company’s employee, then 2017, there is no accident (zero accident) in the Company.
alleged violations report is addressed directly to the Thus, the work accident ratio is 0%.
Whistleblowing System team using the address:
›› Whistleblowing System Team PT Bank Tabungan Certification and Awards
Negara (Persero) Tbk. The Company has obtained Fire Safety certification issued
›› PO BOX Whistle Blowing System (WBS) BTN Jakarta by the Fire and Disaster Management Department of Special
Capital Territory of Jakarta. This certification effort strives
›› Email: wbs.btn@btn.co.id
the Company to create a safe, healthy, and secure work
›› Text/Handphone: 081311434343
environment for the Company’s employee.
The report can be done verbally or through other media by
the Report/Whistleblower.
2. If the reportee is a member of Whistleblower System
Team, then alleged violations report is addressed directly
to the President Director.

Responsibility to the Environment
The Company is committed to preserving the environment in its daily

operations. The Company’s operational activities are designed to minimize
negative impacts and maximize positive impacts on the environment. This is
because the Company realizes that environmental conservation is an important
thing that has a positive impact on the quality of life of all stakeholders.
Policy programs. The objective is to build strategic synergies, which in

As a form of implementation of the Company’s compliance turn will improve the Company’s efficiency and effectiveness.
with Law No. 32 of 2009 on Environmental Protection and
Management, the Company has focuses on the environmental CSR Activities Related to Environment and
sustainability through environmentally relevant CSR policies Quantitative Impact
and programs. The Company’s policy related to management Throughout 2017, the Company has implemented several
and protection of the environment is actualized in the form of policies to support the social responsibility program for
appeals, edicts, and the Company’s regulations to minimize the environmental conservation, one of which is through
the operational impacts on the environment. environmentally friendly operational management.
In addition, the Company’s policies related to nature Paper Management (Paperless)

conservation and the environment are also applied in the In the banking operations, the paper is the main material
form of credit policy contained in the Company’s Commercial for customer account creation, mailing activities, and other
Credit Facility Guidelines. In terms of credit requirements, the operational support activities. The Company consistently save
Company requires the availability of Environmental Impact paper by: Reusing paper using 2-sided print method, increasing
Assessments/Environmental Management Efforts (UKL/UPL) effectiveness of billing method through calls or directly using
document and or Environmental Impact Analysis (AMDAL). information technology application that supports mobile,
These Environmental Policies are guidelines for the Company paperless, historical record, and parameterized practices
to carry out the environmentally friendly operational activities. The Company’s commitment to reduce paper usage is
also implemented by encouraging the customers to use
Work Program in 2016 the Electronic Channel service as much as possible. This is
The Company’s activity program related to environmental evidenced by the increasing number of transactions using
management is determined in accordance with the Bank’s Electronic Channel service in 2017. Transactions with ATM
Business Plan and related environmental strategies, in and Kiosk increased by 18.67%. Cash Deposit Machine (CDM)
line with the sustainable financial roadmap and POJK No. transactions increased by 5.26%. Internet Banking transactions
51/POJK.03/2017 on the Implementation of Sustainable increased significantly by 111.71%. Cash Management
Finance for Financial Services Institutions, Listed, and Public transactions increased by 31.83%. SMS Banking increased by
Companies. 9.75%, and Mobile Banking increased by 44.05%.
In addition, by 2017, the Company will make paper use more
The Company’s participation in the responsibility program efficient through the iflow application, i.e. cross-division and
for the environment is conducted to achieve sustainable or cross-branch letters that are distributed structurally. In
finance. The Company’s focus is to manage and coordinate addition to having advantages in the distribution of structured
the Company’s operational business activities by implementing correspondence, this application also has other benefits such
green banking through environmentally friendly credit, as the speed in the flow of mail distribution, the monitoring
environmentally friendly operational activities, and go green of documents or letters that have been delivered, and the
reduction of paper usage (paperless) due to no printing 2. Changing refrigerator/air conditioner R-22 synthetic
required of the letters. refrigerant Freon with environmental friendly refrigerant
such as R-32, musicool 22, or R134a;
Electricity Usage Management 3. Replacing conventional light bulbs with Light Emitting
In 2017, the Company used 8,035,903 kWh or equivalent to Diode (LED) bulbs;
28,929.25 GJ electricity. The use of electrical energy increased 4. Reducing the intensity of face-to-face meeting and
compared to 2016 due to the development of an energy replacing it with meetings via teleconferences. This
structure that causes the relayout of the room. In addition, will reduce the use of oil fuel (BBM) for the for the
it is influenced by changes in the Company’s business tools transportation of meeting participants;
towards banking digitalization. 5. Rejuvenating vehicles into environmental friendly
Company’s Electricity Consumption vehicles;
6. Suggesting the employee to use public transportation to
Unit 2016 2017
commute.
Requiring the operational vehicles to use higher-grade green
kWh 6,846,700 8,035,903
fuel that is more environmentally friendly, in accordance with
gigajoule 24,648.12 28,929.25 the Government of the Republic of Indonesia policy, which
requires SOEs operational vehicles to use non-subsidized
fuel. Through the Memo No. 1836/M/CSD/IR/XI/2013 dated
In 2017, the Company launched a number of initiative to November 6, 2017, the Procurement and General Service
improve energy efficiency in order to reduce the Company’s Division submitted memos to Regional Offices, Branch Offices,
contribution to greenhouse gas emission. Those initiatives are: and Sharia Branch Offices regarding the prohibition of the use
1. Giving information to all employee on the importance of of certain petroleum fuels in the form of gasoline, RON 88 for
turning off light and other electronic after office hours; Company’s operational vehicles.
BTN Participated in Earth Hour Program 2017

The Company saved electricity consumption on the last Saturday for one hour
at Earth Hour Program on March 25, 2017.
The theme for 2017 Earth Hour is “Shine a Light on Climate Action – from
Moment to Movement”. The Company’s participation in this event is a form
of consistency in building an environmentally friendly culture and efforts
to change lifestyles by reducing ecological footprint and greenhouse gas
emissions for the sake of the Earth.
Water Management Waste Management

In 2017, the Company’s Head Office used 88,879 m3 water, The Company’s operational activities generate waste in the
which is a 30.25% increase from 2016, i.e. 68,200 m3. This form of plastic waste, paper, and dirty water. The waste does
increase occurred due to the addition of manpower and not fall into the category of Hazardous and Toxic Waste (B3)
draining of water reservoirs. Despite the increase in water based on the provisions of the Ministry of Environment of the
usage, the Company has always committed to saving water, Republic of Indonesia. However, the Company continuously
especially at the Head Office. Water saving is performed by manages waste in cooperation with third parties, in accordance
using water as needed and closing the water faucet when with environmental management standards to lessen any
not needed. In addition, the Company also utilizes recycled negative impact on the environment.
water for various purposes, such as watering plants and
routinely control the water supply and faucets to immediately On November 2, 2017, the Company did a measurement of
handle any leakage. Thus, there will be a reduction in water wastewater at Bank’s Head Office. This is regularly conducted
consumption, maintenance costs, and water disposal costs. once every three months. With the regular measurement, the

Company understands that the water discharged has met Planting 67 Manglid Tree at the Foot of Mount Ciremai.
quality standards in accordance with Governor Regulation As a form of nature awareness and education to children about
of Special Capital Territory of Jakarta Province No. 122 of the environment, the Company conducted a movement to plant
2005 on domestic wastewater management in the Special 67 Manglid trees at the foot of Mount Ciremai. This is also
Capital Territory of Jakarta Province so it does not pollute the conducted to celebrate the Company’s anniversary this year.
environment.
Environmental Friendly Credit Disbursement
Green BTN The Company’s concern on environmental sustainability will
In order to conserve the environment in Indonesia, particularly always be improved in line with sustainable finance policy
around the Company’s working area, the Company actualizes stipulated by the Financial Services Authority (OJK). The
nature conservation program through Hijau BTN. In general, Company has consistently established rules and policies
the Hijau BTN activities include forestation activity such as to support sustainable financial program effectively. The
tree cultivation around the Company’s work area. In addition, in Company has performed various initiatives, one of which
the housing construction, the Company requires reforestation is through green finance product (Company’s products that
land around the housing. For one house, there should be at consider the aspects of environment, social, and governance)
least one tree. implementation. One consistent effort is the provision of
credit. The Company has implemented the policy related to
environmentally friendly credit disbursement by rejecting credit
for customers who do not include the results of Environmental
Impact Analysis (AMDAL). The Company will validate the result
by going to the field for customers with AMDAL results.
Environmental Problem Complaint

As a form of concern for the environment, the Company is
open to any complaints from the public for any environmental
impacts that might arise because of the Company’s operations.
The environmental complaints then will be delivered to the
Company through official letters. Throughout 2017, the
Company did not receive any complaint or grievance related to
environmental issues. Thus, the Company was not subjected
to sanctions or penalties relating to non-compliance with laws
and Regulations in regards to the environment.
Aksi Tanam Pohon dalam Program BTN Tour de Borobudur XVII
Certification and Awards

Tree Planting in BTN Tour de Borobudur XVII Program Until 2017, the Company still has not received awards and
The Company strives to instill environmental awareness certification related to the environment.
through tree planting in the BTN Tour de Borobudur XVII
program in Semarang, November 2017. In this event, the Implementation Cost
Company contributed to the environment by planting 1,000 Throughout 2017, the Company spent Rp157.20 million for
fruit tree seedlings in Jatibarang reservoir area, which is one the environmental management and conservation for the STP
of Semarang tourist attractions. (Sewage Treatment Plan) and waste management.
Responsibility to Social and

Community Development
The Company’s social and community Policy

Social and Environmental Responsibility is the Company’s
development responsibility is a form of its commitment to participate in sustainable economic
commitment to participate in sustainable development in order to improve the quality of life and the
environment, which in turn would benefit the Company, the
economic development by addressing aspects local community, as well as the general public. The commitment
of social lives in order to improve quality of life of the Company to social and community development is
realized through the activities of Partnership and Community
and elevate society’s living standards. Development Program and Corporate Social Responsibility
Program which aim to boost the community participation
and support to the activities of the Company as well as to
improve the life quality of the surrounding communities and
those outside the operational area of the Company. The
implementation refers to the Regulation of the Minister of
State-Owned Enterprises of the Republic of Indonesia No. Per-
02/MBU/7/ 2017 on the Second Amendment to the Minister
of State-Owned Enterprises Regulation No. Per-09/MBU/07/
2015 on Partnership and Community Development Program of
the State-Owned Enterprises.
Program Plan and Target in 2017

Every year, the Company in its Bank’s Business Plan develops
its CSR program planning aimed at local communities. Plans
are prepared in accordance with the focus of the CSR program

which is identified at the beginning of the year. In 2017, the of small-scale enterprises to become strong and independent
Company as an SOE Bank plays a role in the Government- through the utilization of funds already budgeted by the
initiated Partnership and Community Development Program Company. The objective of the partnership program is to select
(PKBL). The program aims to empowering the socioeconomic partners who have clear prospects for the future, meet the
standing of communities divided into seven areas of requirements set by the Company and have the motivation to
distribution, which are: natural disasters, education / training, become strong and independent entrepreneurs. The Company
health promotion, development of facilities and infrastructure, expects that the loanable funds can be used to develop the
means of worship, conservation and social assistance in business so as to produce optimal efficiency.
poverty alleviation.
Throughout the year 2017, the Company has disbursed a total
CSR Program related to Social and Community of Rp6.2 billion assistance funds to the partnership program,
Development in 2016 and Activity Impact distributed to 169 partners across 7 (seven) sectors including
Partnership Program fishery, plantation, agriculture, animal husbandry, industry, and
The partnership program is the Company’s commitment to trade and services. The budget expenditure for Partnership
the social development which aims to increase the capacity Program fund disbursement in 2017 is as follows:
Table: Realization of Fund Disbursement of Partnership by Business Field 2017
No. Business Sector Disbursement (Rp)
1 Fishery 280,000,000
2 Plantation 240,000,000
3 Agriculture 1,620,000,000
4 Animal Husbandry 343,000,000
5 Industries 1,132,500,000
6 Services 1,986,950,000
7 Trading 598,750,000
Total 6,201,200,000
Table: Realization of Fund Disbursement of Partnership by Company’s Regional Offices Distribution 2017
No, Branch Office Disbursement (Rp)
1 Jawa Timur 2,129,450,000
2 Jawa Tengah 1,433,000,000
3 Jawa Barat 280,000,000
4 DKI Jakarta 80,000,000
5 NTT 350,000,000
6 Sulawesi Tenggara 550,000,000
7 Sulawesi Selatan 750,000,000
8 NTB 75,000,000
9 Sumatera Barat 250,000,000
10 D.I. Yogyakarta 230,000,000
11 Gorontalo 73,750,000
Total 6,201,200,000
Community Development Program Regional Divisions. The Community Development Funds are
Community Development Program by the Company aims channeled through various assistance activities, including
to provide aid to the surrounding communities of the education and training, public infrastructure and facilities,
headquarters and branch offices of the Company. In 2017, religious and worship facilities, and community health and
a total of Rp20,023 billion of Community Development social development for poverty alleviation. The following is the
Program assistance funds were distributed to local realization of fund disbursement for Community Development
communities in 34 Provinces across the Company’s 5 (five) Program 2017.
Table: Realization of Fund Disbursement of Community Development Program 2017
Office Working Area Amount of Disbursement (Rp)
Regional Office I West Java Branch Offices 3,680,866,500
Regional Office II DKI Jakarta & Banten Branch Offices 3,395,137,573
Regional Office III Central Java, East Java, Bali & Nusa Tenggara Branch Offices 9,051,052,500
Regional Office IV Sumatera Branch Offices 1,741,531,591
Regional Office V Sulawesi, Kalimantan, Maluku, North Maluku, and Papua Branch Offices 2,164,638,711
Total 20,033,226,875
Table: Realization of Fund Disbursement of Community Development Program by Activities 2017
No. Activity Sector Disbursement (Rp)
1 Natural Disaster 344,239,400
2 Education and/or Training 3,868,653,556
3 Health Quality Improvement 481,339,350
4 Public Infrastructure & Facilities 4,140,494,450
5 Religion & Worship 1,763,657,000
6 Nature Preservation 399,082,600
7 Community & Social Assistance for Poverty Alleviation, including for: 9,035,760,519
1. Electrification in areas without electricity coverage
2. Clean water facilities
3. Sanitation, toilet, and washing facilities
4. Educational assistance, training, apprenticeships, promotions, and other forms of assistance related to
empowering small businesses outside of the Partnership Program beneficiaries
5. Home repair and renovations for underprivileged households
6. Nursery assistance for agriculture, animal farming, and fishery
7. Business equipment assistance
Total 20,033,226,875

Empowerment of Pottery Tourism Village

In 2017, through ‘BUMN Hadir untuk Negeri (State-Owned Enterprises for
the Nation)’, the Company established Village Economic Center (Balkondes),
a tourism-based platform to improve the local economy and empower and
develop the Human Resources through the activities development in the
surrounding area. BTN Balkondes is located in Karanganyar Village, Borobudur
District, Magelang Regency. The Balkkondes is one of the tourist villages in
the Borobudur, which has the advantage as a pottery industrial center.
There are 85 pottery artisans under the guidance of BTN Balkondes. Through
BTN Balkondes, these artisans have the space, not only to show their expertise
but also to attend training on how to develop during this digital economy era.
The artisans received training to utilize the information technology to support
their product marketing throughout Indonesia, and even the whole world. The
training covers how to open an e-commerce account, how to create added-
value on their products, how to fill out an online store with product photos
worth selling, attractive packaging, etc. on an online e-commerce site.
By pursuing the mastery of pottery production, these artisans shall improve

their economic revenue. BTN Balkondes is expected to be a form of support
for the preservation of traditional pottery making culture, making it a tourism
icon, and is expected to provide economic impact for the village and its citizens.
Siswa Mengenal Nusantara (Students Understand the

Indonesia Archipelago) Program
Siswa Mengenal Nusantara Program (SMN) is an initiative program of the
Ministry of State-Owned Enterprises (SOEs), which started in 2015. This
program aims to cultivate pride as a nation with diverse Archipelago, through
information and cultural exchange process. In addition, this program also
takes part in building understanding of the stakeholders about the role of
the Ministry of SOEs and SOEs in National Capacity Building through the
nation’s younger next generation.
As an SOE, in 2017, the Company has conducted SMN by sending 20 students

(two of which are disability students and schooled in SLB) from some
Gorontalo High School to Pontianak for one week through selection system
based on set criteria (requirement). During the trip to Pontianak, participants
are divided into few groups with 3-5 students per group and every group
lived together with foster family who are native people. The participants are
accompanied by Provincial Education Office (one person), Role-Teacher of
Provincial Level (two persons), and a Company’s representative.
Corporate Social Responsibility Program companies in order to help realize Program Sejuta Rumah (One
The Company acknowledges that business continuity is Million Houses Program). In selecting the suppliers according
inseparable from community participation in the various to the sustainability context, the Company prioritizes local
products and services offered. Therefore, the Company plays suppliers, i.e. the suppliers from Indonesia. Besides reducing
an active role in making a real contribution to the welfare of operational costs, this measure aims as well to support
the community by conducting Corporate Social Responsibility domestic companies.
(CSR) activities. In 2017 the Company revitalized the BTN
Harmony Environment Program which aims to educate Financial Education and Literacy Program
the community in an integrated manner through several Currently, banking products and services continue to be
training and/or education activities as basis for developing innovated and made possible. However, the public is not
the integrated programs. Nine primary activities became the sufficiently informed, so that the potential is not fully
focus of community development programs, i.e. BTN Welfare maximized by banks and miscommunication often occur when
Program, BTN Religious, BTN Green, BTN Focus, BTN Healthy, it shouldn’t. Therefore, to improve capacity, knowledge, and
BTN Intelligent, BTN Net, BTN Care, and BTN Partnership. skills to manage financial resources (financial literacy) for
the community in achieving or improving welfare, financial
Utilization of Domestic Manpower and Suppliers education is necessary. This is in line with the National Strategy
In order to support the operational activities of the Company, for Financial Literacy Program by the Financial Services
domestic manpower is exclusively employed. In addition, the Authority (OJK), as well as the National Program for Banking
Company also collaborates continuously with suppliers of Education by Bank Indonesia (BI). During 2017, community
goods and services as their working partners in short-term education program implemented by the Company includes:
and long-term cooperation, in particular with construction
Smart Branch Education in the Siswa Mengenal In the program, the Company also conducted financial
Nusantara Program literacy education activity especially banking product
In 2017, the Company conducted smart branch education to some students, who enrolled in the Siswa Mengenal
to a number of students who are enrolled in the Siswa Nusantara, by inviting them to see the smart branch in
Mengenal Nusantara (SMN) program. The Siswa Mengenal the Company’s head office. During this activity, students
Nusantara (SMN) Program is an initiative program of the received explanation on digital banking products and
Ministry of State-Owned Enterprises (SOEs), which started services, starting from getting to know which products
in 2015. This program aims to cultivate pride as a nation and services are available in the Company’s Smart
with diverse Archipelago, through information and cultural Branch. Furthermore, a student representative from
exchange process. In addition, this program also takes part Siswa Mengenal Nusantara was given guidance to create
in building understanding of the stakeholders about the an account, from registration, filling out the Smart Branch
role of the Ministry of SOEs and SOEs in National Capacity menus, all the way to completion. In addition, some SMN
Building through the nation’s younger next generation. students were directed to obtain information on service
convenience and the Company’s feature through BTN
Smart Branch. They were also given the explanation of
the virtual reality, which allows people to shop more easily.
BTN Zone college student to connect to the internet, learn about

In 2017, the Company optimized the digital banking the Company’s banking product, and directly feel the
for millennial generation by opening BTN Zone spots in transaction ease by digital solutions application, which
various universities. The objective is to introduce digital shall encourage cashless society.
banking to college student. BTN Zone provides access to

Communication on Anti-Corruption Policy and Procedures Anti-Corruption Training

In order to implement clean and transparent banking, In 2017, the Company has conducted various awareness
the Company participates actively in eradicating fraud, program related to Gratification Control in the Company’s
corruption, and money laundering practices. The anti-fraud environment, including: (1) Reject Gratification Pin that is worn
implementation in the Company is regulated by the Board of by every Company’s employee; (2) Socialization Program of
Directors Circular Letter Number: 22/DIR/IAD/2014 dated Gratification Control to every MVP representative in all work
May 28, 2014, on Anti-Fraud Strategies Standard Operating unit of the head offices and branch offices; (3) Publication of
Procedure of PT Bank Tabungan Negara (Persero) Tbk. Anti- Handbook of Gratification Control Program; and (4) Submission
Fraud Strategies have 4 (four) pillars i.e. (1) prevention; (2) Letters to Company’s Partners/Stakeholders both Head Office
detection; (3) investigation, reporting, and sanction; as well and Branch Offices.
as (4) monitoring, evaluation, and follow-up.
In addition, as part of the Company’s commitment to control
Measures to prevent fraud and corruption have been fraud/gratuities, several anti-corruption training and education
implemented through Information Dissemination Program to sessions were held and were attended by employees. The
increase awareness of fraudulent acts in work environment by, Company also participated in anti-corruption awareness
among others, disseminating information to all employees and program initiated by KPK (the Corruption Eradication
stakeholders regarding the Policy of Anti-Fraud, corruption, and Commission). These communication and training programs on
money laundering strategies, as well as the implementation gratuities control were implemented by the Company to prevent
of Gratification Control. The company has also disseminated practices of corruption and fraud, especially within the Company.
this policy to the clients as well as the community by hoisting
banners on anti-corruption/gratification in the headquarters Expenditure
and all branch offices. Throughout the year 2017, actual expenditure for the
community and social responsibility was Rp5.14 billion, or
102,96% of allocated funds. The following table lists the
Company’s CSR activities in 2017.
Table: Implementation of CSR Activities in 2017
No. Date Activity Name
Economy
1 June 21 The Company participated in Iftar with 1,000 orphans, an activity initiated by Kamerad
2 October 11 Distribution of Emergency Disaster Relief for Sinabung Eruption in District of Karo, North Sumatera
3 December 7 Distribution of Free Essential Food Materials in the District of Sabang, Nanggroe Aceh Darussalam Province
4 December 12 Provision of supporting facilities and equipment In Hutan Adat Kasepuhan Karang Banten activity
5 December 29 The Company participated in State-Owned Enterprises for Veterans from Gorontalo program in Halim PK Base
Operation with the President of RI
Art and Culture
1 January 23 Distribution of assistance for art and culture supplies and facilities in Woro Village, Rembang, Central Java
2 August 24 The Company participated in supporting Nangku Arts & Culture activities and the 1439 H / 2017 Panjalu Cultural
Festival organized by Borosngora Panjalu Foundation in Ciamis, Central Java
3 August 25 The Company supported the Ternate Sultanate to participate in the Keraton Nusantara Cultural Festival in Cirebon
4 October 27 The Company supported the 2nd Pottery Festival in 2017 organized by the Village Government of Karanganyar, District
of Magelang, Central Java
Education
1 January 31 Provision of education facilities and infrastructure for SDN 03 Sembalun Elementary School, East Lombok District,
West Nusa Tenggara, in the SOE for the Nation program in Mandalika
2 April 29 Development of education facilities in Hikmatu Syahdina Foundation located at Cipasung Village RT 01/07,
Rancatungku, Pameungpeuk Sub-District, Bandung District Bandung
3 May 4 Provision of education facilities and infrastructure to Cahaya Keluarga Fitrah Foundation for autism therapy for poor
families in Tanjung Priok, North Jakarta
4 May 17 The Company participated in improving education quality at Mambaul Huda Madrasa in Pati
5 May 19 Construction of new classrooms at Madrasal Alawiyah Al Manar located in Menoro Village, Sedan Sub-District,
Rembang, Central Java
6 May 29 The Company participated in improving quality of education at a number of Madrasas in Central Java (Pati, Jepara,
Rembang, Semarang, and Kendal)
7 July 14 Improving education facilities and infrastructure at Baidhaul Ahkam, located at I. Villa Tangerang Indah Sangiang
Regency, Rt. 004/012, Gebang Raya Village, Periuk Sub-District, Tangerang Municipality, in Banten.
8 July 31 UIN Sunan Gunung Jati Bandung Provision of 2 units of computers for education facilities at
UIN Sunan Gunung Jati, Bandung
9 August 7 Provision of supporting facilities and infrastructure to support the 2017 Siswa Mengenal Nusantara Program in the
Province of Gorontalo
10 September 8 Assistance in procurement of supporting facilities and infrastructure in Nurul Hikmah Madrasa and Orphanage
Foundation, Langka Mataram Village
11 December 28 Provision of art supplies in supporting education infrastructure facilities in Az Zahra Sekura Foundation, located in JL.
Raya Jepara Bangsri, Central Java
Facilities and Infrastructure
1 February 8 Renovation of Vertical Housing building in Southern Cibinang Besar
2 April 12 Construction of facilities and infrastructure for KB Dahlia, located in Krajan, Kedawung Village, Nguling Sub-District,
Pasuruan District, East Java, as well as renovation of sports facilities located in Watulumbung Village, Lumbang Sub-
District, Pasuruan
3 April 18 Site visit for BUMN Hadir Untuk Negeri in Gorontalo for SMN and Veteran Home Renovation
4 April 29 Provision of sanitation facilities around the Yogya Kembali Monument Museum
5 May 4 Provision of supporting facilities and infrastructure (MMT and enforcement framework) for Klewer Solo Market
6 May 5 Road renovations in Pasarenan Village, Kedungdung Sub-District, Sampang, East Java
7 December 21 Renovations of facilities and infrastructure in Kejambon Market, in the form of provision of 20 units of waste bins
located in Jl. Sultan Agung, Tegal Municipality, Central Java.
Religious Affairs
1 February 24 Renovation of Nurul Muttaqin Mosque in Sanggen, Gandurejo Village, Bulu Sub-District, in Temanggung, Central Java
2 March 24 Renovation of Attaqwa Mosque Minaret, located in Jl. Kresek Raya, Duri Kosambi, Cengkareng, West Jakarta
3 March 24 Construction of Baitul Maqdis Al Rahmah Mosque, located in Jl. Muhammad Ali, Central Jakarta
4 March 29 Provision of education facilities and infrastructure to Cintya Nandika Batam Foundation and Nurul Haq Foundation,
Batam Municipality
5 March 30 Construction of Al Gufron Mosque, located in Jl. Cendrawasih, Maledeang, Manado Municipality

Religious Affairs
6 March 31 Construction of Gereja Kerapatan, located in Buku Utara Village, Belang Sub-District, Southeast Minahasa District
7 Building Rehabilitation at Miftahul Ulum Madrasa, located in Sumber Penjalin, Akkor Village, Palengaan Sub-District,
March 31 Pamekasan District, East Java
8 March 31 Construction of entrance gate in Banyuanyar, Banjarsari Sub-District, Surakarta Municipality
9 April 12 Rehabilitation of Nurul Hidayah Prayer Room, located in Dusun Gunungan RT 03/14, Nguling Village, Nguling Sub-
District, Pasuruan District, as well as provision of facilities and infrastructure for KB Permata Bunda located in Dsn
Kramat, Watestani Village, Nguling Sub-District, Pasuruan, East Java
10 April 12 Construction of Al Mubarok Mosque, located at Gesing Village, Rowogempol, Lekok Sub-District, Pasuruan District, and
Bank BTN’s participation in Baitul Hasani Mosque, located at Dsn Welulang Lor, Wlulang Village, Lumbang Sub-District,
Pasuruan District
11 May 5 Renovation of Al Kautsar Prayer Room located in Trasang, Ambat Village, Tlanakan, Pamekasan, East Java
12 Construction of prayer rooms and paving of Nur Al Falah Mosque, located at Bukit Dago Housing Complex, South
May 10 Tangerang District, Banten
13 May 12 Construction of Sion Mapura Tanah Papua Church building
14 May 16 Renovation of Miftakhul Jannah Mosque, located in Nguncup, Bekiring Village, Pulung Sub-District, Ponorogo, East Java
15 Construction of facilities at Musholla Al Hasyimiyyah, located in Cabean Village Kidul, Bulu Sub-District, Rembang
May 23 District, Central Java
16 June 14 Construction of GKPI, GKPA Selantom Tonga, construction of pastoral housing, Construction of BKPN Church, and
construction of Babur Ikhsan Mosque
17 September 15 Construction of Al Kautsar Mosque located at Villa Nusa Indah 2, Bojongkulur, Gunung Putri Sub-District, Bogor District
18 December 28 Assistance in construction of Al Hikmah Mosque, located at RT 06/06, Sukaluyu, Sebeunying Kalor Sub-District,
Bandung District
Health
1 May 10 The Company participated in providing health infrastructure and facilities for DKM Jami Al Muhajirin, Pelabuhan Ratu,
Bekasi District
2 July 31 The Company participated in providing health facilities and infrastructure at Ibnu Sina Hospital in Gresik, located in Jl.
Wahidin Sudirohusodo, Gresik
3 December 28 The Company participated in providing support for a number of activities in health and disaster relief organized by the
Indonesian Red Cross Organization, Central Jakarta
Audited Financial
Statement
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Aplikasi Digital Solution
Photo source: Evi Herawati
Appendix
Reference to The Financial Services

Authority Regulation and Annual
Report Award Criteria 2017
No Criteria Explanation Page
I. General
1 Written in good and correct Indonesian, it is recommended √

to present the report as well as in English.
2 The Annual Report is Printed with good quality using √

readable type and size of font.
3 The Annual Report is posted in the Company’s website. Includes the latest annual report and at least √
the last 4 years.
4 The annual report presents clear identity of the company Company name and the year of the Annual Report are √
shall be made in such a way that is easy to read. Pictures, shown in:
graphs, tables and charts by mentioning the title and /or 1. Front cover;
description clearly. 2. Side margin;
3. Back cover; and
4. Each page.
1 Information of the Company’s business performance, The information includes: 23 - 31

Financial information in comparative form over a period 1. Revenues;
of 3 (three) financial years or since the commencement 2. Gross Income;
of business if the company has been running its business 3. Income (Loss);
activities for less than 3 (three) years. 4. Total income (loss) for the year to equity holder and non-
controlling interest;
5. Total comprehensive income (loss);
6. Total comprehensive income (loss) for the year to equity
holder and non-controlling interest;
7. Income (loss) per share;
8. Total assets;
9. Total liability;
10. Total equity;
11. Total investments in associates;
12. Income (loss) ratio to the total asset;
13. Income (loss) ratio to the equity;
14. Income (loss) ratio to the revenues;
15. Current ratio;
16. Liability ratio to the equity;
17. Liability ratio to the total asset;
18. Other information and financial ratios relevant to the
company and its industry.

II. Financial Highlights
2 The annual report must include information regarding Information includes: 35

the shares issued for each quarter in the period of 2 (two) 1. Number of outstanding share.
financial years (if any). 2. Information in the form of a table that contains:
›› Market capitalization based on the price at the Stock
Exchange where the shares are listed;
›› The highest, lowest, and closing prices are based on
the price at the Stock Exchange where the shares are
listed; and
›› Stock trading volume on the Stock Exchange where
the shares are listed.
3. Information in the form of a graph containing at least:
4. The closing price is based on the price at the Stock
Exchange where the shares are listed; and
5. Stock trading volume on the Stock Exchange where the
shares are listed. For each quarter in the last 2 (two)
fiscal years.
Note: if the company does not have market capitalization,

stock price information, and stock trading volume, to be
disclosed.
3 In case of corporate actions such as stock split, reverse Information includes: 35

stock, stock dividend, bonus shares and par value reduction, 1. Implementation date of corporate action;
the stock pricing information referred to in point 2), shall be 2. Stock split, reverse stock, share dividend, bonus share
added. ratio, and decline in share value;
3. Number of outstanding share before and after
corporate action;
4. Share price before and after corporate action.
4 In terms of stock trading suspension during the year, the - / NA

annual report must include an explanation of the reason for
the suspension.
5 In terms of suspension as referred in item (4) still being - / NA

imposed until the date of annual report issuance, then Issuer
or Public Company must also explain the actions of the
company to resolve the issue.
6 Information on bonds, sukuk or convertible bonds Information contains: 37 - 39

outstanding within the last 2 (two) fiscal years. 1. Amount of outstanding bonds/sukuk/ convertible bonds;
2. Interest rate/reward;
3. Due Date; and
4. Rating of bonds/sukuk in 2016 and 2017.
Note: if the company does not have a bond sukuk/

convertible bond, to be disclosed.
III. Report to The Shareholders
1 Board of Commissioners’ Report. Information includes: 43 - 46

1. Assessment of the Board of Directors’ performance ;
2. A view of the business prospects of the company
drawn up by the Board of Directors and its basis of
consideration;
3. A view of the implementation of whistleblowing system
(WBS) in the company and the role of the Board of
Commissioners in the WBS;
4. Assessment of the performance of committees under
the Board of Commissioners;
5. Changes in the composition of the Board of
Commissioners and the reasons for the change (if any).
2 Board of Directors’ Report. Information includes: 47 - 59

1. Assessment of the Board of Directors’ performance ;
2. A view of the business prospects of the company
drawn up by the Board of Directors and its basis of
consideration;
3. A view of the implementation of whistleblowing system
(WBS) in the company and the role of the Board of
Commissioners in the WBS;
4. Assessment of the performance of committees under
the Board of Commissioners;
5. Changes in the composition of the Board of
Commissioners and the reasons for the change (if any).
3 Board of Directors and Board of Commissioners’ signatures. Containing the following: 60 - 61

1. Signatures are given on separate sheets;
2. Statement of full responsibility on the accuracy of the
annual report contents by Board of Directors and Board
of Commissioners;
3. Signed by all members of Board of Commissioners and
Board of Directors by stating names and position.
Written explanation in separate letter from the person(s)

concerned in the event that member of Board of
Commissioners or Board of Directors fail to sign the
annual report; or: written explanation in separate letter
from the other member(s) in the event that the person(s)
concerned fails to provide with a written explanation.
IV. Company Profile
1 Company Profile Information. Include among others: Name and address, zip code, no. 65
Tel, no. Fax, email, and company website and/or branch
office or representative office, enabling the public to obtain
information about the company.
2 Brief history of the company. Includes among others: Date/year of establishment, name 66 - 67
and change in the company name (if any) and effective date
of company’s name change.
Note: explanation shall be given in the event that the entity

has never conducted name changes
3 Line of Business. Description includes: 76 - 93

1. The line of business as stated in the last Articles of
Association;
2. Business activities conducted; and
3. Type of products and/or services produced.

IV. Company Profile
4 Organization Structure. Organization Structure In the form of a chart, at least until 94 - 95

one level below the Board of Directors, along with names
and titles.
5 Vision and Mission. Description includes: 70 - 79

1. Company’s vision;
2. Company’s mission;
3. Statement that vision and mission has been approved by
the Board of Directors / Board of Commissioners.
4. Statement on corporate culture held by the company.
6 Identity of the Board of Commissioners. Description includes: 100 - 105

1. Name;
2. Position history, tenure period (including position in
other companies);
3. Age;
4. Domicile;
5. Education history;
6. Work Experience (position, company and tenure period);
and
7. A brief description of the type of trainings attended
in order to improve the competency of the Board of
Commissioners who during the year (if any);
8. Disclosure of affiliated relations with other members of
the Board of Director and Board of Commissioners, as
well as shareholder (if any);
9. History of the appointment as member of Board of
Commissioners in the Company since appointed as
stated in GMS decisions.
7 Identity of the Board of Directors. Description includes: 106 - 111

1. Name and brief description regarding the duty and
function performed;
2. Position history, tenure period (including position in
other companies);
3. Age;
4. Domicile;
5. Education history;
Directors in the Company since appointed;
7. Work Experience (position, company and tenure period);
Directors in the Company since appointed as stated in
GMS decisions;
9. A brief description of the type of training in order to
improve the competence of the Board of Commissioners
who have followed in the financial year (if any);
10. Disclosure of affiliated relations with other members of
the Board of Director and shareholder (if any).
8 Change in the composition of the Board of Commissioners -

and/or Board of Directors after the end of financial year until
the time limit of submission of annual report as referred in
item number 1 letter a, the composition has set in annual
report is the composition of the last and before of the Board
of Commissioners and/or Board of Director.
IV. Company Profile
9 Number of employee (comparative 2 years) and description Information includes: 116 - 119
of competency development (i.e. employee education and 1. Number of employee for each organization level;
training programs). 2. Number of employee for each education level;
3. Number of emloyee based on employment status;
4. Description and data Competency development that has
been done by reflecting the equality of opportunity to all
employees consist of (position level) they who attended
training, type of training and object of training;
5. Employee competency development funds incurred
during the financial year.
10 Description of the name of shareholder and the percentage Description includes : 91 - 93

of its ownership at the end of financial year. 1. Details of the shareholder’s name which includes the 20
largest shareholders and the percentage of ownership;
2. Details of shareholders and ownership’s percentage
includes:
›› Shareholders’ name who own 5% (five) or more shares;
›› The category of public shareholders who each own
less than 5% of the shares and percentage of their
ownership.
3. Name of the Commissioner and Director who own shares
and percentage of share ownership both directly and
indirectly.
Notes: If Directors and Commissioners do not have direct

and indirect shares, shall be revealed
11 Information regarding major shareholder and issuer or public 91 - 93

company, both directly or indirectly, which presented in form
of scheme or chart.
12 Subsidiaries and/or affiliated companies. In the form of tables, the information includes: 132
1. Name of the Subsidiaries/affiliated companies;
2. Percentage of share ownership;
3. Information of the line of business of subsidiaries and/or
associate entities;
4. Information of Subsidiaries and associations; operational
status (has operated or has not operated yet);
5. Information regarding the address of Subsidiaries.
13 Structure of company’s group. Structure of company’s group describing subsidiaries, 132

associate entities, joint venture, and special purpose vehicle
(SPV).
14 Share listing chronology (including private placement) and/ Includes the following items: 32 - 36
or share recording from the beginning of issue until the end 1. The year of shares issuance, the number of shares, the
year book. par value of the shares, and the offer price of shares for
each corporate action;
2. Number of shares registered after each corporate action;
and
3. The name of the stock in which the company’s shares
are listed.
Note: if the company does not have a share listing

chronology, shall be disclosed.

IV. Company Profile
15 Issuance chronology and/or other securities recording from Includes the following items: 132 - 135
the beginning until the end of the year book. 1. Names of other securities, year of issuance, interest rate,
and securities maturity date;
2. Type of Corporate actions affecting total number of
share;
3. Change in the total number of share from initial listing to
the end of the financial year;
4. Shares offering value;
5. Name of exchanges where the shares are listed
6. Securities rating.
16 Names and address of capital market agencies/ Information includes: 152

professionals. 1. Name and address of BAE/ those who administer the
company’s securities;
2. Name and addresses of the public accountant; and
3. Name and addresses of the rating agency.
17 National and international levels Awards and/or certification Information includes : 136 - 141
received by the company which is still valid in the last year. 1. Names of awards and/or certificates;
2. Year awarded;
3. Awarding or certifying authority or institution;
4. Validity (for certificates).
18 Name and addresses of subsidiaries and/or branch office or Includes the following items: 142 - 150
representative office (if any). 1. Name and addresses of the subsidiaries; and
2. Name and addresses branch office or representative
office.
Notes: if the company does not have subsidiaries/ branch/

representative, the information should be disclosed
19 Information on Company Website. Covering at least: 152 - 153

1. Shareholder Information up to the individual end owner;
2. The Content of the Code of Ethic;
3. General Meeting of Shareholders’ (GMS) at least includes
the agenda items discussed in the GMS, summaries
of minutes of the GMS, and information on important
dates, namely the date of the GMS announcement, the
date of the GMS’s invitation, the date of the GMS, the
summary date of the minutes of the GMS;
4. Separate annual financial statements (5 years);
5. the Board of Commissioners and Directors Profile; and
6. Charter of the Board of Commissioners, Directors,
Committees, and Internal Audit Unit.
20 Education and / or training of the Board of Commissioners, Includes at least information (types and relevant parties in
the Board of Directors, the Committees, the Corporate following):
Secretary, and the Internal Audit Unit. 1. Education and/or training for the Board of 100 - 105
Commissioners;
2. Education and/or training for the Board of Directors; 107 - 1115
3. Education and/or training for the Audit Committee; 367; 371; 100 - 105
4. Education and/or training for the Nomination and 384; 389; 100 - 105
Remuneration Committee;
5. Education and/or training for Other Committees; 375-376; 100 - 105
6. Education and/or training for the Corporate Secretary; 408
and
7. Education and/or training for the Internal Audit Unit, 419; 421;
Which is followed in the fiscal year.
Note: if there is no education and/or training in the fiscal

year, it shall be disclosed.
V. Management and Discussion Analysis of Company Performance
1 Review of operations per business segments. Description includes the following items: 171-186
1. Description of each business segment.
2. Performance of each business segment, among others:
›› Products/line of business;
›› Increase/decrease in production capacity;
›› Sales/operating income;
›› Profitability.
2 Description of company’s financial performance. An analysis of financial performance which includes a 187-201
comparison between the financial performance of the
current year and that of the previous year (in the form of
narration and tables) concerning:
1. Current assets, non-current assets, and amount of
assets;
2. Short term and long term liabilities and total liabilities;
3. Equity;
4. Sales/operating income, expenses and profit (loss), other
comprehensive revenue, and total comprehensive profit
(loss);
5. Cash flow.
3 Discussion and analysis on the capacity to pay debts and the Explanation on: 202-205
company’s level of receivables collectability by presenting 1. Ability to pay debts, both short-term and long-term;
relevant ratio according to the type of company’s industry. 2. Receivables collectability level.
4 Discussion of capital structure and capital structure policy. Explanation of: 208-210
1. Capital structure (capital structure); and
2. Management policy on capital structure policies; and
3. Basic selection of management policies on capital
structure.
5 Discussion on material ties for the investment of capital Explanation of: 244
goods. 1. Name of the party making the bond;
2. The purpose of the bond;
3. Sources of funds that is expected to fulfill such
commitments;
4. Currency of the denomination; and
5. Planned steps by the company to protect the risks from
the associated foreign currency position.
Note: if the company does not have a capital investment

related bond in the last fiscal year, it shall be disclosed.
6 Discussion of capital investments that were realized in the Explanation on: 243
last financial year. 1. Investment type of capital goods;
2. Investment objective of capital goods; and
3. Value of capital investments incurred in the last
financial year.
Note: if there is no actual investment of capital goods, it

shall be disclosed.
7 Information on the comparison between Information should include: 261-263

target set at the beginning of the fiscal year and the 1. Comparison between target of the beginning of the year
realization and target or projection for the next year and the realization
concerning revenue, profit, capital structurer, and others 2. Target or projection for the next year
considered important for the company.

8 Information and material fact subsequent to the date of Description of important events after the date of 250
accountant reporting. the accountant’s report, including the effects on the
performance and business risk in the future
Note: if there is no important event after the date of the

accountant report, such information should be disclosed.
9 Description of the company’s business prospects. Description of the company’s prospects in relation to the 160-161
industry and the economy in general, with supporting
quantitative data from reliable sources.
10 Description of marketing aspects. Description of marketing aspect of products and/or services, 166-170
includes marketing strategy and market share.
11 Description on dividend policy and amount of cash dividend Description includes: 241-242
per share and amount of dividend per year published/paid 1. Dividend distribution policy;
for the last 2 (two) financial years. 2. Total distribution dividend;
3. Total cash dividend per year;
4. Payout ratio; dan
5. Date of announcement and cash dividend payment for
each year.
Note: if no dividend was distribution, the reason should be

stated
12 The program of shareholding by employee and/or Description includes: 245-247

management held by company (ESOP/MSOP). 1. Number of shares ESOP / MSOP and realization;
2. Term of time;
3. Requirements of employees and/or management of the
beneficiaries; and
4. The excercise price.
Note : if it does not have such programs, it shall be disclosed
13 Realization of fund utilization from public offering (should Information include: 249
the company be required to submit the report of fund 1. Total funds obtained;
utilization). 2. Budget plan;
3. Details of budget plan;
4. Balance; and
5. Date of approval from General Meeting of Shareholders
regarding the changes in fund utilization (if any).
Note: if it does not have realization information on the use of

proceeds from the public offering, it shall be disclosed.
14 Material information concerning investment, expansion, Information include: 251

divestment, consolidation/ merger, acquisition or debt/ 1. The purpose of transaction;
capital restructuring. 2. Transaction value or number of transaction;
3. Fund resource.
Note: if it does not have realization information on the use of

proceeds from the public offering, it shall be disclosed
15 Transaction information material conflict of interest and/or Information include: 252-257

transactions with affiliated parties. 1. Name of the parties involved in the transactions and
related affiliation;
2. Explanation on fairness of transaction;
3. Reason for transaction;
4. Realization of transaction in the current period;
5. Corporate policy related to review mechanism of the
transaction; and
6. Compliance to provisions and concerned Regulation.
Note: if there is no such transaction, such information

should be disclosed
16 Description on changes in regulation having significant effect Description should include: 258
on the company. 1. changes in the regulation; and
2. Its (quantitative/qualitative) effect on the company
(if significant) or a statement that the effect is not
significant.
Note: if there is no change in the regulation having

significant effect on the company, such information
should be disclosed
17 Description on changes in the accounting policy Description includes : 259-260

implemented by company in the last book year. 1. Change in accounting policy;
2. Change in accounting policy reasons; and
3. Qualitative impacts on financial report.
18 Information on business continuity. Disclosure of information includes: 266-267

1. Matters with the potential to inflict significant impact on
company’s business continuity for the last fiscal year;
2. Management assessment on matters in point 1; and
3. Assumptions used by the management in performing the
assessment.
Note: In the absence of matters which have a significant

effect on the business continuity of the company in the
last fiscal year, disclose the assumptions underlying
management in believing that there is no significant
potential for a company’s business continuity in the
financial year.
VI. Good Corporate Governance
1 The Board of Commissioners. Description includes: 315, 317

1. Description of responsibilities of Board of 355-358
Commissioners; 332
2. Disclosure of procedures of determining remuneration; 318-319
3. Remuneration structure that represents remuneration 317
component and amount per component for each
member of Board of Commissioners;
4. Meeting frequency and attendance level of Board of
Commissioners;
5. Training programs to increase the competency of Board
of Commissioners or orientation programs for new
Commissioners; and
6. Disclosure of Board Charter (regulation of Board of
Commissioners).
2 Information on Independent Commissioners. Includes the following items: 316

1. Criteria for determining independent commissioner; and
2. Statement about the independency of each Independent
Commissioners.

3 Board of Directors. Description includes: 323-324

1. Scope of work and responsibilities of each member of 338
the Board of Directors; 326-327
2. Meeting frequency and presence level of each member 324-325
of the Board of Directors at a meetings of the Directors; 347-349
3. Meeting frequency and presence rate combined meeting 330
of the Board of Directors in the Board of Directors;
4. Training programs for improving the competence of the
Board or orientation program for Directors;
5. Disclosure on Board Charter (regulation of Board of
Directors);
6. Policy on the succession of Directors.
7. Assessment on committees performance under the
Board of Directors (if any).
4 Assessment on Board of Commissioners and Board of Description includes: 327-330

Directors. 1. Assessment on performance of Board of Commissioners
and/or Board of Directors’ Performance;
2. Criteria used in the assessment process;
3. Parties conducting assessment.
5 Assessment of GCG Implementation for the fiscal year 2017 Description includes: 290-298
covering at least the aspect of the Board of Commissioners 1. The criteria used in the assessment;
and the Board of Directors. 2. The party conducting the assessment;
3. Scoring scores of each criterion;
4. Recommendation of assessment result; and
5. Reason for not to implement recommendation.
Note: if there is no GCG implementation assessment for the

2017 fiscal year, shall be disclosed.
6 Description on remuneration policies for the Board of Includes among others: 355-361
Directors and Commissioners. 1. Disclosure of proposal procedure up to the determination
of remuneration of the Board of Commissioners;
2. Disclosure of the proposing procedure up to the
determination of the remuneration of the Board of
Directors;
3. The remuneration structure showing the remuneration
component and the nominal amount per component for
each member of the Board of Commissioners;
4. Remuneration structure showing remuneration
component and nominal amount per component for each
member of the Board of Directors;
5. Disclosure of indicators for the Board of Directors’
remuneration; and
6. Disclosure of performance bonuses, non-performance
bonuses, and / or stock options received by each
member of the Board of Commissioners and Board of
Directors (if any).
Note: in the absence of performance bonuses, non-

performance bonuses, and stock options received by each
member of the Board of Commissioners and Board of
Directors, to be disclosed.
7 Frequency and attendance rate in BOC Meetings, BOD The information includes among others: 332-344
meetings, and joint meetings of BOD and BOC. 1. Meeting date;
2. Meeting participants; and
3. Meeting agenda.
For each BOD and BOD meetings, and joint meetings.
8 Information on the Majority and Controlling Shareholders, In the form of scheme or diagram, except for SOEs owned 301
direct and indirectly, and the individual shareholder. fully by government.
Note: the main shareholder is a party who directly or

indirectly, owns at least 20% (twenty percent) of the voting
rights of all shares with voting rights issued by a Company,
but not the controlling shareholder.
9 Disclosure of affiliation among Board of Directors, Board Include: 350-354

of Commissioners, and Majority and/or Controlling 1. Affiliation among internal members of the Board of
Shareholders. Directors;
2. Affiliation between the Board of Directors and the Board
of Commissioners;
3. Affiliation between the member of the Board of Directors
and Majority and/or Controlling Shareholders;
4. Affiliation among internal members of the Board of
Commissioners;
5. Affiliation between the member of the Board of
Commissioners and Majority and/or Controlling
Shareholders.
Note: if there is no such transaction, such information

should be disclosed
10 Audit Committee. Includes: 364-372

1. Name and position of each member of audit committee;
2. Educational background and working experience of audit
committee member;
3. Independency of audit committee member;
4. Description of roles and responsibilities;
5. Brief report of the implementation of audit committee
activity;
6. Meeting frequency and attendance level of audit
committee.
11 Committee/Nomination and Remuneration. Includes: 381-390

1. Name, position, and brief curriculum vitae of member of
remuneration and nomination committee;
2. Independency of remuneration and nomination
committee member;
4. Description of the implementation of remuneration and/
or nomination committee’s activity;
5. Meeting frequency and attendance level of remuneration
and/or nomination committee
6. Statement about the existence of guidelines for
Nomination and remuneration and/or nomination
committee; and
7. Policy relating to the Board of Directors’ succession.
12 Other committees under the Board of Commissioners. Includes: 372-380

1. Name, position, and brief curriculum vitae of other
committees;
2. Independency of other committee member;
4. Description of the implementation of other committee’s
activity;
5. Meeting frequency and attendance level of other
committees.
13 Description of the duties and functions of Corporate Includes: 407-413

Secretary. 1. Name and professional record of corporate Secretary;
2. Domicile;
3. Description on the implementation of corporate
secretary’s duties;
4. Training programs in order to develop competency of
Corporate Secretary.

14 Description on internal audit unit. Includes: 417-426

1. Name of head of internal audit unit;
2. Number of employees (internal auditor) within internal
audit unit;
3. Qualification/certification as professional internal audit;
4. Position of internal audit unit in the company structure;
5. Description of duty implementation;
6. Parties appointing/dismissing head of internal audit unit.
15 Description on General Meeting of Includes: 301-313

Shareholders (GMS) of previous year. 1. GMS resolutions of previous year;
2. Realization of GMS result in fiscal year; and
3. Reasons in the event that any GMS resolutions are not
realized.
16 Public Accountants. Information includes, among others: 448-451

1. Name and year of a public accountant who audits the
annual financial statements for the last 5 years;
2. Name and year of the Public Accounting Firm which
audits the annual financial statements for the last 5
years;
3. The amount of fee for each type of services provided by
the Public Accounting Firm in the last fiscal year; and
4. Other services provided by the Public Accounting Firm
and public accountant in addition to the annual financial
report audit services in the last fiscal year.
Note: if no other services are mentioned, it shall be

disclosed.
17 Description on corporate risk management. Includes: 434-447

1. Explanation on risk management system;
2. Explanation on evaluation of risk management system
effectiveness;
3. Explanation on risks posed to the company;
4. Efforts to manage such risks.
18 Description on internal control system. Includes: 414-416

1. Brief explanation on internal control system, including
financial and operational control;
2. Explanation of the conformity of internal control system
to the internationally recognized framework (COSO-
internal control framework);
3. Explanation of the evaluation on the effectiveness of
internal control system.
19 Description on corporate social responsibility program that Includes: 493-495

relates to environment. 1. Policies set by management;
2. Target/plan of activity in 2017 set by the Management;
3. Activities undertaken related environmental programs
related to the operations of the company, such as the
use of materials and energy that are environmentally
friendly and can be recycled;
4. Certification for environmental programs.
20 Explanation on corporate social responsibility related to Includes information on: 489-492

employment, occupational health and safety. 1. Target/activity plan by the year 2017 determined by
management;
2. The policies set by management;
3. Activities undertaken and quantitative impacts on such
activities related to employment, health and safety
practices, such as gender equality and employment,
employment and safety, employee turnover rates,
occupational accidents rate, and so on.
21 Explanation on corporate social responsibility related to Includes information on: 496-503

social and community development. 1. Activity plan/target by the year of 2017 determined by
management;
2. The policies set by management;
3. Undertaken activities and the impact of such activities
related to social and community development, such as
the use of local labor, empowerment of communities
around the company, improvement of social facilities and
infrastructure, other forms of donations, etc.
4. Costs related to social and community development,
such as the use of local labor, empowerment of
communities around the company, improvement of
social facilities and infrastructure, other forms of
donations, communication on anti-corruption policies
and procedures, training on anti-corruption, and so on.
22 Explanation on corporate social responsibility related to Includes: 483-488

responsibility to customers. 1. Activity target/plan in 2017 set by the Management.
2. Policies set by management;
3. Undertaken activities and impact of related activities;
related to responsibilities of products, such as health
and consumer safety, product information, facilities, and
control over the number of consumer complaints, etc.
23 Litigation faced by the company, subsidiaries, members Includes: 487

of the Board of Directors and/or members of Board of 1. Material of the case/claim;
Commissioners for the period. 2. Status of settlement of the case/claim;
3. Potential impacts on the company;
4. Encountered risk and amount of case/claim value;
5. Administrative sanctions imposed to the entity,
members of the Board of Directors and Board of
Commissioners, which is imposed by the authorities
concerned (capital market, banking, etc.) for the last
financial year (including statements of having no
administrative sanction, if any).
Note: if there is no litigation, such information

should be disclosed
24 Information access and corporate data. Description on the availability of access to corporate 492
information and data for public, such as through website
(in Bahasa and English), mass media, mailing list, bulletin,
meeting with analysts, etc.

25 Discussion of the code of ethics. Description includes: 476-479

1. The contents of the code of ethics;
2. Disclosure that the code of conduct applicable to all
levels of the organization;
3. Dissemination of the code of ethics;
4. Efforts in the application and enforcement;
5. Statement on corporate culture of the company;
6. The number of violation and sanction that is given in the
last fiscal year.
Note: if there is no violation of the code of ethics in the last

fiscal year, it shall be disclosed.
26 Disclosure regarding whistle blowing system. Description of the mechanism of whistle blowing system, 482-486
includes:
1. Submission of report violations;
2. Protections for whistleblowers
3. Handling of complaints
4. Those who manage complaint; and
5. Number of complaints accepted and proceeded in the
last book year and follow up ;
6. Sanction/follow up of claims that has been processed in
fiscal year.
Notes: If there is not any complaints and have been

processed in the last fiscal year, it shall be disclosed
27 Policy on Composition Diversity of Board of Commissioners Description of Company policy on composition diversity of 358-360
and Board of Directors. Board of Commissioners and Board of Directors by education
(field of study), work experience, age, and gender.
Note: explanation shall be given in the event that concerned

policy is nonexistent
VII. Financial Information
1 Statement by the Board of Directors and/or Board of Conformity with the relevant rules of responsibility for the 508
Commissioners on the responsibility of financial reports. financial statements.
2 Opinion of independent auditor on the financial reports. 510
3 Description of the independent auditor in the opinion. Description includes: 510-511

1. Name & signature;
2. Date of Audit Report;
3. PAF and Public Accountant license.
4 Comprehensive financial statements. Contains all elements of the financial statements: 512-745
1. Balance sheet;
2. Comprehensive Profit or Loss statement;
3. Changes in Shareholders’ Equity;
4. Cash flow report;
5. Notes to the financial statements;
6. Statement of financial position at the beginning of
the comparative period presented when an entity
implements accounting policy retrospectively or makes
restatement of financial statement items, or when the
entity reclassify items in its financial statements (if
relevant).
5 Comparison of the level of profitability. Comparison of profit (loss)for the current year with the 518-519
previous year.
6 Statements of cash flows. Meet the following requirements: 522-524

1. Grouping into three categories of activities: operating,
investing, and financing;
2. The use of the direct method to report cash flows from
operating activities;
3. Separation between the presentation of cash receipts
and/or disbursement during the current year in
operating, investing and financing;
4. Disclosure of non cash transactions must be stated in
the notes to the financial statements.
7 Accounting policy highlights. Includes at least: 537-586

1. Statement of compliance with IFRSs;
2. The basis of measurement and the preparation of
financial statements;
3. Revenue and expense recognition ;
4. Fixed assets;
5. Financial statements.
8 Disclosure of transactions with related Parties. Items disclosed among others are: 691-700
1. Names of related parties and the nature of relationship
with these parties;
2. Transactional value and its percentage against total
revenue and relevant expenses; and
3. Total balance and its percentage against total assets or
liabilities.
9 Disclosure related to taxation. Items that must be disclosed: 674-682

1. Reconciliation between fiscal and current tax
assessment;
2. Explanation of the relationship between tax expense
(income) and accounting profit;
3. Statement that the reconciled taxable profit is the basis
for the annual corporate income tax return;
4. Breakdown of deferred tax assets and liabilities
recognized in the balance sheet for each period
presented, and total deferred tax expense (income)
recognized in the income statement if such amount is
not shown in the total deferred tax assets or liabilities
recognized in the financial statement;
5. Disclosure of whether or not there are any tax disputes.
10 Disclosure of matters relating to fixed assets. Matters need to be disclosed: 629-632

6. Depreciation method used;
7. Description of accounting policy selected, either
revaluation or cost model;
8. Methods and significant assumptions used to estimate
fixed assets’ fair value (for revaluation model) or
disclosure of fixed assets’ fair value (for cost model); and
9. Reconciliation of the gross carrying amount and
accumulated depreciation of fixed assets at the
beginning and the end of period by presenting: addition,
reduction, and reclassification.

11 Disclosure of matters relating to operational segment. Matters need to be disclosed: 688-689

1. General information covering the factors used to identify
unreported segment;
2. Information regarding profit and loss, assets, and
liabilities of the reported segment;
3. Reconciliation of total revenue, profit and loss, assets,
liabilities of the reported segment, and material
elements of the other segment against relevant amount
in the entity; and
4. Disclosure at the level of entity, covering information on
products and/or services, geographical area, and main
customer.
12 Disclosure related to financial instruments. The thing that must be disclosed: 736-740
1. Terms, condition and accounting policies for each class of
financial instruments;
2. Classification of financial instruments;
3. The fair value of each class of of financial instruments;
4. Risk management objectives and policies;
5. Explanation of the risk associated with financial
instruments: market risk, credit risk, liquidity risk; and
6. Risk analysis associated with financial instruments
quantitatively
13 Publication of the Financial Statements. Items to be disclosed include: 508 and 745
1. Date of authorization for the publication of the Financial
Statements
2. Party responsible for authorizing the Financial
Statements.
Glossary
A Halaman K Page
ASEAN Corporate Governance 8,125,280,296,430 Subsidized KPR 49,68,69,342

Scorecard (ACGS)
B M
Housing Backlog 45,52 Risk Management 5,7,44,45,46,49,54,55,58,60,61,94,95,1
02,103,104,105,107,108,109,110,115,1
SOEs 13,14,16,17,19,49,107,108,109,110,11 23,126,128,130,136,141,154,163,165,2
1,164,169,178,179,287,289,305,307,32 08,210,211,212,213,240,258,276,280,2
3,326,329,334,349,351,362,372,384,40 84,285,290,299,300,316,318,319,323,3
8,482,494,499,500 24,326,327,328,329,337,338,340,342,3
55,356,362,367,370,371,372,373,375,3
76,378,379,380,384,391,392,393,394,3
96,397,404,408,412,414,415,417,420,4
C 21,422,429,430,431,432,433,434,435,4
36,437,438,439,440,441,442,444,445,4
Construction value chain 11,49,53,163,164,380,467,468 46,447,458,463,468,471,477
Low-Income Communities 14,16,18,49,52,77,83,167,172,305

(MBR)
D Mini MBA in Property 15
Digital Banking 1,2,4,10,11,12,48,49,51,53,67,69,70,74,

122,125,130,136,162,164,165,267,268,
329,342,380,391,421,467,468,469,470,
471,483,489,500 P
One Million Houses Program 1,2,5,9,10,14,15,16,19,47,49,50,51,52,
53,67,69,74,154,158,160,161,167,168
,177,189,266,306,328,411,412,468,46
E 9,484,500
Asset-Backed Securities 15,134,150,228,229,401
E-Retribution 13,15,411 S
BBTN Shares 17,35,409
Smart Branch 8,12,14,67,69,327,429,465,500

H
Securitization 15,50,67,76,134,135,150,164,209,211,
Housing Finance Center (HFC) 9,49,342 228,229,230,231,234,264,267,328,329,
401,402,403,469
I T
Integrator and Accelerator 1, 11 Transformation 1,2,3,4,10,11,14,46,47,48,51,52,53,59,
67,69,70,73,74,94,95,115,120,126,130
Indonesian Property Expo (IPEX) 9,17,448 ,162,165,258,268,285,289,318,320,32
4,327,328,335,336,338,340,343,344,3
Integrated GRC (Governance, 54,57,163,165,267,285,289,432,433 47,388,432,443,447,467,468,469,470,
Risk, and Compliance) 471,483,489
K W
KPR BTN Mikro 77,173 Whistleblowing System 7,45,56,280,294,320,419,423,454,45
7,492

Recommendations Follow-Up
from ARA 2016
No. ARA 2016 Recommendations Have been followed-up in AR 2017
1 Information on sukuk or convertible bonds of the last 2 (two) fiscal years. Accommodated in Chronological Listing of Stocks
(Company Performance and Bank BTN Profile
Chapters), page 37-39; 132-135
2 The Board of Commissioners shall contain the Directors’ performance assessment on the Accommodated in the Report of the Board of
management Commissioners page 44 - 45
3 Total employees (with 2 years’ comparison) by organizational level, education level, and Accommodated in the Employee Profile (Chapter Bank
employment status; and data on competence development BTN Profile) page 116 - 131
4 Comprehensive operational review per business segment Accommodated in the Operational Analysis (Chapter
Management Discussion and Analysis) page 171 - 188
5 Capital structure, which consists of interest-based/sukuk and equity debts, management Accommodated in the Capital Structure and
policies on capital structure policy, and basic management policy selection on capital structure. Implementation of Risk Management (Chapter
Management Discussion and Analysis) page 210
6 Material information and facts occurring after the date of the accountant's report and its Accommodated in the Material Information After the
impact on the future performance and business risks. Accounting Reporting Period (Chapter Management
Discussion and Analysis) page 250
7 Information on the changes in accounting policies, reasons, and impacts quantitatively on the Accommodated in the Amendment to Accountancy
financial statements. Policy (Chapter Management Discussion and Analysis)
page 259 - 260
8 Matters that may significantly affect the business continuity in the last fiscal year, Accommodated in the Legislation Amendments with
management assessment of those matters and assumptions used by management in Significant Impact (Chapter Management Discussion
conducting the assessment. and Analysis) page 266 - 267
9 Criteria to determine the Independent Commissioners and independence statements of each Accommodated in the Board of Commissioners
Independent Commissioner. (Chapter Corporate Governance) page 316
10 Procedure of proposal to the determination of remuneration of Board of Commissioners and Accommodated in the Company's Remuneration Policy
Directors, remuneration structures showing the types and amounts of short-term, post- (Chapter Corporate Governance) page 355 - 358
employment, and/or other long-term benefits for each member of the Board of Commissioners
and Directors. Disclosure of performance bonus, non-performance bonus, and stock option
that are received by each Board of Commissioners and Directors’ member (if available).
11 Targets/plans and activities performed in 2017, impacts on such activities, costs incurred in Accommodated in CSR Budget (Chapter Corporate
relation to CSR in terms of social and community development. Social Responsibility) page 496 - 503
Good Corporate Governance

Practices in the Company
No. Good corporate governance practices that exceed the criteria: Description
1 Implement rules or corporate governance stipulation in the capital markets field and 1. Guidelines for Public Corporate Governance in
international best practices accordance with OJK Regulation
2. GCG Assessment based on the ASEAN Corporate
Governance Scorecard standard
2 Submitting a Sustainability Report or CSR formulated based on the internationally accepted Sustainability Report 2017
standards (GRI Sustainability Reporting Guidelines)
Bad Governance Practices in the Company
No. Praktik bad governance yang tidak diatur dalam kriteria seperti: Description
1 Report that the company pollutes the environment NIHIL
2 Significant cases currently faced by the Company, subsidiaries, Board of Directors and/or Board NIHIL
of Commissioners member(s) serving during the period of the Annual Report.
3 Non-compliance with tax obligations fulfillment NIHIL
4 Nonconformity of the presentation of financial statements with IFRS NIHIL
5 Cases related to laborers and employees NIHIL
6 No disclosure in the operating segment on listed companies NIHIL
7 Nonconformity of the Annual Report’s hard copy and soft copy NIHIL

PT BANK TABUNGAN NEGARA (PERSERO) Tbk
Menara Bank BTN
Jl. Gajah Mada No. 1 Jakarta 10130
Telp. 62-21 6336789, 63322666
Fax. 62-21 6346704
Email: csd@btn.co.id
www.btn.co.id
Contact Center: 1500286

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Annual Report 2017

Digital Banking-Based Transformation

Digital Banking-Based Transformation

Annual Report 2017 PT Bank Tabungan Negara (Persero) Tbk.

The Company’s digital-based transformation is a priority in 2017. Because, the digital

In 2016, we managed to record a successful performance by applying the Company’s

The Company position in housing finance is getting stronger. It is supported by a long

Annual Report 2017 PT Bank Tabungan Negara (Persero) Tbk.

Introduction 1 Theme Continuity

Annual Report 2017 PT Bank Tabungan Negara (Persero) Tbk.

Annual Report 2017 PT Bank Tabungan Negara (Persero) Tbk.

Annual Report 2017 PT Bank Tabungan Negara (Persero) Tbk.

Subsidy Market Share

Gold Award for

BTN Agile Transformation Journey

Transformation 1 Transformation 2 Transformation 3

2013 2015 2016 2019 2025 Year

Transformation Focus on the Digital Banking Phase

The focus of transformation is to strengthen business

Annual Report 2017 PT Bank Tabungan Negara (Persero) Tbk.

›› Identifying prioritized pilot

2017 Digital Banking Projects

The Company PPOB Counters is a Electricity Token Purchase

E-Panjar QR Pay via

The down payment fee is a down payment for filing a petition

Receipt of Payment BTN Smart Branch

Annual Report 2017 PT Bank Tabungan Negara (Persero) Tbk.

KPR Payment via

Smart City - E-Retribusi

Company’s Key Events 2017

Image source: Company Documentation

Image source: Company Documentation February 9, 2017

Image source: Company Documentation

March 30, 2017

Annual Report 2017 PT Bank Tabungan Negara (Persero) Tbk.

Image source: Company Documentation

March 30, 2017

and Management ITB (SBM ITB) Have

Image source: Company Documentation

May 3, 2017 May 4, 2017 June 13, 2017

Image source: Company Documentation

July 17, 2017

After finishing the initial offering period

Annual Report 2017 PT Bank Tabungan Negara (Persero) Tbk.

August 20, 2017 September 22, 2017 September 25, 2017

Image source: Company Documentation

October 20, 2017

In the 2017 last quarter, the Company October 28, 2017

Image source: Company Documentation Image source: Company Documentation

Magelang, November 11-12, 2017 November 13, 2017

Image source: Company Documentation

December 12, 2017

On December 10, 2017, the Company celebrated its 41st Anniversary

Annual Report 2017 PT Bank Tabungan Negara (Persero) Tbk.

Source: President Secretariat Bureau of the Republic of Indonesia

Source: Company Documentation

The Company is the only mortgage bank in Indonesia. Which means,

Source: Company Documentation

Sri Mulyani Indrawati