2 0 1 4 S u s t a i n a b i l i t y

R e p o r t

2

Preface

Sustainable Governance

Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment

Performance of Sustainable Social

2014 Sustainability Report

BTN Terdepan GCG Rumahkoe Facing year of 2015, known as new economic era and ASEAN free trade era, Bank BTN launched a new tagline that is also the new culture of the company, namely BTN TERDEPAN CCG RUMAHKOE. This new tagline represents the company’s strong determination to achieve its vision “Be a leading bank in housing financing” based on Good Corporate Governance. The new tagline was an integral part of transformation that has been carried out by Bank BTN since 2013, where Bank BTN put GCG as commander for the company’s success. Thus, the management of Bank BTN was trying to make the tagline as the working spirit in bank BTN. BTN Terdepan also embodies the attitude and determination that Bank BTN is ready to face the new economic era and preserves its leading, especially in house financing.

BTN Terdepan GCG Rumahkoe

PT. Bank Tabungan Negara (Persero) Tbk.

2014 Sustainability Report

Preface

Sustainable Governance

Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment

Performance of Sustainable Social

3

Table of Contents

5 6 7 8 10 13

14

20 22 24 28 32

Values and Culture Speech from President Commissioner

45

Speech from President Director

48 50 59

Summary of Sustainability Report

Corporate Data

39 41

62

Bank BTN at A Glance Operating Regions Structure and Composition of Stock Ownership Award & Certification

68

Human Resources Report Profile

Prologue Structure of Corporate Governance Compliance and Responsibility toward Economic, Environment, and Social Principles Composition Of Board Of Commissioners And Directors

PT. Bank Tabungan Negara (Persero) Tbk.

84

Internal Audit and Risk Management Whistleblowing System

BTN Cares Initiatives to Care More

Performance of Sustainable Economy 70 77

Significant Events

Development For The Board of Commissioners and The Board of Directors Performance Appraisal and Renumeration of BoC and BoD Ethics, Integrity, and Conflict of Interest

Performance of Sustainable Environment 64 66

Field of Business

Sustainable Governance 36 38

43

Vision and Mission

Company Profile and Sustainability Report 16 17 17 19

34

Preface

Economic Direct Impact Economic Indirect Impact

Performance of Sustainable Social 86 92 93 94 97

Labour Human Rights Community Product Responsibility Appendix

BTN Terdepan GCG Rumahkoe

4

Preface

Sustainable Governance

Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment

Performance of Sustainable Social

BTN Terdepan GCG Rumahkoe

2014 Sustainability Report

PT. Bank Tabungan Negara (Persero) Tbk.

2014 Sustainability Report

Preface

Sustainable Governance

Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment

Performance of Sustainable Social

Preface

Bank BTN consistently materialize various development programs as response toward opportunities of sustainable growth. Policies made by the Company also took side and supported more efficient activities, to ensure an increase of economic performance and to distribute economic values gained to stakeholders. These chain policies are none other than a sustainable manifestation of economic dimension thoroughly aiming for better welfare. For Bank BTN, sustainability reflects our ability to ensure the accomplishment of our vision, namely “To be a Leading Bank in Housing Finance”. Bank BTN has been present in the Indonesian community for more than 50 years. In running its business operation, Bank BTN always tries to implement principles of good corporate governance by establishing harmonious collaboration with all stakeholders. In addition, the principle of natural preservation is also upheld thus the congeniality between economy, social, and environment can be maintained. To uphold this commitment, Bank BTN is always transparent by publishing Sustainability Report every year together with the Annual Report. This Sustainability Report is the fifth report brought to you by Bank BTN as an attempt to inform the transparency of the Bank’s commitment to create sustainable contributions for all stakeholders and society. This is one form to express Bank BTN’s concern in achieving sustainable development that is aligned with the wheels of business run day-to-day by the company. All elements of Bank BTN have become fully aware that the wheels of banking business are full of challenges and responsibilities. Therefore, all operational activities that are carrying out inside Bank BTN implements excellent and accountable corporate governance system. Working systems and standard operational procedures are executed comprehensively in order to achieve the goal to become a world class banking company. Sustainable development for Bank BTN is one of the most important factors in the effort to improve business performance consistently and continuously in the long term, in line with the vision, mission and goals to be achieved. We realize that it requires hard work, cooperation, and patience from all related parties, in order to make excellent result becoming a habit and eventually will become the reflection of Company’s culture. We guarantee that this process is always held firmly by all levels of Bank BTN, joining hands with allstakeholders.

PT. Bank Tabungan Negara (Persero) Tbk.

BTN Terdepan GCG Rumahkoe

5

6

Preface Pendahuluan

Sustainable Governance

Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment

Performance of Sustainable Social

2014 Sustainability Report

Vision and Mission Vision To be a Leading Bank in Housing Finance

Mission 1. Providing excellent services in housing finance and related industries, consumer finance, and small-medium enterprises. 2. Increasing competitive advantage through innovative development of of products, services, and strategic network based on the latest technology 3. Preparing and developing human capital with quality, professionalism, and high integrity. 4. Carrying out banking management in accordance with the principles of prudence and good corporate governance to increase Shareholder Value 5. Concerning for the interests of society and the environment

The company’s vision is decided by the meeting of the Board of Directors No. 002 on January 6, 2015 BTN Terdepan GCG Rumahkoe

PT. Bank Tabungan Negara (Persero) Tbk.

2014 Sustainability Report

Pendahuluan Preface

Sustainable Governance

Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment

Performance of Sustainable Social

Corporate Values and Culture Corporate Values • Professionalism • Competitiveness • Integrity

• • •

Lean Innovation Strive for Excellence

Corporate Culture

BTN TERDEPAN GCG RUMAHKOE • • • • • • •

Bankir Terunggul yang menerapkan Inovasi dengan Integritas yang tinggi Dan Effisien Melampaui harapan masyarakat dan lingkungan

• • • • • • •

Banker Who is the most superior in applying Innovation With high integrity And Efficiency To exceed the expectations of community and environment

for me • Great is not good enough • Challenges are accepted • Green is a must therefore I • Reach for growth and learning opportunities • Utilize environtmental friendly technology and innovation • Make interest of clients’ and communities happen • Act accountable and dependable • Hate arrogance and dishonesty • Keep communication open • Organize concerted effort as a team player • Embrace lean

PT. Bank Tabungan Negara (Persero) Tbk.

BTN Terdepan GCG Rumahkoe

7

8

Preface Pendahuluan

Sustainable Governance

Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment

Performance of Sustainable Social

2014 Sustainability Report

Speech from President Commissioner

Dear Stakeholders,

housing finance in order to provide a positive economic impact in Indonesia.

With gratitude to God Almighty, Bank BTN managed to wade through year of 2014 while providing benefits

Bank BTN was built with the values “BTN Terdepan GCG

to the Stakeholders and banking services to the fullest.

Rumahkoe”. All the people of BTN adopt the philosophy

Board of Commissioners give high appreciation to the

of being bankers who is the most superior in applying

management, which shows commitment to continually

innovation with high integrity and efficiency to exceed

improve social welfare through various activities of

the expectations of community and environment. That

Partnership Program and Community Development as

is why, for us; great is not good enough, challenges are

outlined in the 2014 Bank BTN Sustainable Report 2014

accepted, green is a must. Therefore; reach for growth

that has become and integral part of the 2014 Annual

and learning opportunities, utilize environtmental

Report.

friendly technology and innovation, make interest of clients’ and communities happen, act accountable

Bank BTN continues to maintain the quality of

and dependable, hate arrogance and dishonesty, keep

execution on all lines perfectly, while continuing to

communication open, organize concerted effort as a

maintain harmony of the welfare of employees and the

team player, embrace lean. These values have become

community, as well as environmental sustainability in

guidance for all the people of BTN both as individuals

all its operation activities. This report contains various

and as part of the Company.

policies issued by Bank BTN in order to materialize its commitment continuously, not only based on the

In accordance with the theme of this year Sustainability

Company’s performance and maximum services to

Report “Foremost BTN, GCG as My Home”, Bank BTN is

customers, but also the implementation of Bank BTN’s

committed to carry out all operational activities properly,

contribution to improve and build the foundation of

fast, and focused to best result, and this commitment

BTN Terdepan GCG Rumahkoe

PT. Bank Tabungan Negara (Persero) Tbk.

[G4-1]

2014 Sustainability Report

Pendahuluan Preface

Sustainable Governance

Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment

Performance of Sustainable Social

should be the reflection of work culture that needs to

The management and employees of Bank BTN will

be maintained together. This new tagline reflects great

continue to provide the best services for the small

determination of Bank BTN to achieve Company’s “To

micro and medium enterprises, and to implement

be a leading bank in housing finance” based on good

programs that support improvement and development

Corporate Governance.

of education, health, and the environment through BTN Harmony Program. The realization of a balance between

The wheel of banking business is surely not separated

sustainability of business and environment represents

from the tight competitive and aggressive market. To

our goals and expectations.

that end, the whole management of Bank BTN keep on striving to strengthen the Company’s business lines

In 2014, Bank BTN increasingly shows the stability of

by continuing to innovate in order to foster a positive

its business as a reputable banking company. This

business climate. The management also continues to

is evidenced by numerous awards and appreciation

nurture the main pillar of our business, i.e. as the largest

achieved by the company due to efforts and hard work

housing loans provider bank in Indonesia.

of all the people in BTN. To that end, we shows high gratitude to performance of management and all levels

Bank BTN’s strength, as housing loans provider bank is

of employees who have been working together with the

the initial capital for all the people of BTN to continue

stakeholders in responding the challenge to become a

doing business innovation in the non-residential sector.

world class and sustainable banking company

The Board of Commissioners believes that all human resources in BTN are superior and the best in their field.

Finally, allow me on behalf of the entire Board of

We believe targets declared by the Company are not a

Commissioners to express our appreciation and thanks

burden for them, but rather becomes a challenge to

to all stakeholders for your endless support. This

continue working and give their best effort for the sake

achievement cannot take place without the support

of future progress. We are grateful that various targets of

and cooperation of all parties. We also would like to

Bank BTN in this yearhave been achieved and in line with

acknowledge the Board of Directors, management and

the road map of Bank BTN heading toward world-class

the entire staffs for their efforts and determination to

company.

achieve positive results and also to maintain the growth of BTN and a harmonious social life in a sustainable way.

Bank BTN always upholds the principle of sustainable in all its operations. We are aware as the largest housing loan provider bank in Indonesia, Bank BTN can be regarded as one of the backbones for the community to get a decent dream house. That is why, Bank BTN continues to maintain its commitment in maintaining harmonious and sustainable climate with all stakeholders.

Jakarta, March 2015

Mardiasmo President Commissioner

PT. Bank Tabungan Negara (Persero) Tbk.

BTN Terdepan GCG Rumahkoe

9

10

Preface Pendahuluan

Sustainable Governance

Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment

Performance of Sustainable Social

2014 Sustainability Report

Speech from President Director

Dear Stakeholders,

thus sustainability aspects can be met and always be a top priority in our work. 2014 was a challenging year, not

By sending our praise and thanks to the Almighty God,

only in banking business, but also in all lines of business

let us on behalf of the Bank BTN Board of Directors

in general.National economy in 2014 once again grew at

deliver Sustainability Report for the financial year 2014

a slow pace, only 5.1%.This was lower than the economic

as form of accountability to all levels of community and

growth in the previous year thatreached 5.7%. Slow

other stakeholders.

national economic growth could not be separated from the world economic climate phenomenon, i.e. the debt

It can be said that we have sailed through 2014 with an

crisis in Europe and the continuing instability of the US

encouraging achievement. This achievement could not be

economy after shaken by the crisis in 2008-2009. Other

separated from the overall consolidation of all the people

cause was the tight monetary policy, thus economic

in BTN who has worked mightily in implementing the

growth became constrained.

correct policies and business strategies. These strategies are manifestation of Bank BTN’s commitment in running

Nevertheless, the above phenomenon is not an

its business, to consistently establish a positive climate

obstacle for all the people in BTN to continue their

BTN Terdepan GCG Rumahkoe

PT. Bank Tabungan Negara (Persero) Tbk.

2014 Sustainability Report

Pendahuluan Preface

Sustainable Governance

Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment

Performance of Sustainable Social

performance in order to achieve maximum results. We

According to the Regulation of Minister of State-Owned

keep on fostering innovation and creativity to achieve

Enterprises No. PER-08/MBU/2013 dated 10 September

sustainable development. Company’s reports has

2013 regarding the Fourth Amendment of the

evolved in accordance to the needs, starting from the

Regulation of Minister of State-Owned Enterprises No.

financial statement, annual report, and sustainability

PER-05/MBU/2007 regarding the Partnership Program

report, and also integrated report, which became the

of State-Owned Enterprises with Small Businesses and

basis for reports in the future. If in the previous year Bank

Community Development Programs, starting from 2013

BTN adopted Global Reporting Report (GRI) 3.1, now

funds of Development Partnership and Community

BTN implement the Global Reporting Report (GRI) 4.0 to

Development Programsourced from the company’s

communicate the economic, social, andenvironmental

budget are taken from Company’s budget and calculated

development through sustainability reports.

as cost. The point for this change is the elimination of the profit allocation for Partnership and Community

Again, we are presenting Sustainable Report to provide

Development Program and funds are charged into the

clear and transparent informationto all stakeholders

cost of the Company.

about our endless efforts in giving contribution to customers, society, the nation, and the country. Having an

Therefore, according to the decision the General

ideal home for customers is one of the main concerns of

MeetingShareholders dated March 27, 2014 and February

Bank BTN in developing its products and services. Along

25, 2014, the Company established a reserve fund for

with it, Bank BTN will continue on product expansion,

Corporate Social Responsibility program (CSR), which the

not only the residential sector but also non-residential as

amountis adjusted to the needs and capabilities of the

well, while maintaining its identity as the leader in the

Company. CSR activities shows Company’s commitment

housing loans in Indonesia.

to participate actively in improving the welfare of the community by contributing the Company’s resources

Bank BTN also continued to show its commitment in

through a variety of activities, such as economy, arts and

providing housing finance for lower and middle economic

culture, sports, education, health, environment, religious

class society by supporting the government programs

facility, and nature conservation. In 2014, total cost issued

through the Housing Finance Liquidity Facility (FLPP).

by the Company for CSR activities was Rp6.27 billion.

Meanwhile, Bank BTN also continues its improvements in terms of human resources (SDM). Quality of human

We believe that all the people in BTN will continue

resources is one of the Company’s backbones in order to

to make every effort in order to enhancevariety of

reach a glorious achievement.

programs that can contribute for sustainability of the Bank, the environment, community, andhousing finance

We continue to make sustainable enhancements and

in Indonesia in general. With the same spirit, we will work

improvements, as a form of corporate social responsibility

hard in order to realize the noble objectives; making

and in order toimplement good corporate governance.

housing available for all level of society.

PT. Bank Tabungan Negara (Persero) Tbk.

BTN Terdepan GCG Rumahkoe

11

12

Preface Pendahuluan

Sustainable Governance

Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment

Performance of Sustainable Social

Finally, on behalf of the Board of Directors of Bank BTN,

are aware that what we have done so far still requires

allow me to send an enormous gratitude to the Board

a lot of improvement. To that end, with a humble heart

of Commissioners and other stakeholders for all the

we are open to any suggestions,inputs, and constructive

support that has been bestowed upon us, and also let

criticism in order to improve Bank BTN sustainability

me send a high appreciation to all the people in BTN

performance in the future.

2014 Sustainability Report

whom has been working relentlessly in order to achieve sustainability performance in 2014. Entering 2015, we

Jakarta, March 2015

Maryono President Director

BTN Terdepan GCG Rumahkoe

PT. Bank Tabungan Negara (Persero) Tbk.

2014 Sustainability Report

Pendahuluan Preface

Sustainable Governance

Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment

Performance of Sustainable Social

13

Summary of Sustainability Report

115.916 100.467

44.293

81.411 25.173

63.564 21.071

51.550

10

20

41.552

37.720

11

20

12

20

13

20

14

20

Loan Position of Bank BTN

10

20

11

20

12

20

13

20

14

20

Loan Disbursement of Bank BTN

In million Rupiah

In million Rupiah

88.507 10.330

62.106

61.444 53.840

36.211

6.272

2.790

10

20

11

20

12

20

PKBL Fund

In million Rupiah

PT. Bank Tabungan Negara (Persero) Tbk.

13

20

14

20

10

20

2.468

11

20

2.137

12

20

13

20

14

20

Total CSR Fund Distribution In million Rupiah

BTN Terdepan GCG Rumahkoe

14

Preface

Sustainable Governance

Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment

Performance of Sustainable Social

BTN Terdepan GCG Rumahkoe

2014 Sustainability Report

PT. Bank Tabungan Negara (Persero) Tbk.

2014 Sustainability Report

Preface

Sustainable Governance

Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment

Performance of Sustainable Social

15

Company Profile and Sustainability Report

PT. Bank Tabungan Negara (Persero) Tbk.

BTN Terdepan GCG Rumahkoe

16

Preface

Sustainable Governance

Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment

Performance of Sustainable Social

Corporate Data

Company’s Name Field of Business Date of Establishment Legal basis of establishment Ownership Authorized Capital Issued and Fully Paid-Up Capital Share Listing Share Code

Address of Head Office

BTN Terdepan GCG Rumahkoe

2014 Sustainability Report

[G4-3, G4-4, G4-5, G4-6, G4-7, G4-8]

PT Bank Tabungan Negara (Persero) Tbk. Commercial Bank February 9, 1950 Emergency Law No.9 in1950, State Gazette of the Republic of Indonesia No.12, 1950 • The Government of the Republic of Indonesia 60.13% • Public 38.75% • Employees 1.12% Rp10,239,216,000,000 Rp5,283,848,000,000 The Indonesia’s Stock Exchange BBTN Menara Bank BTN Jl. Gajah Mada No. 1 Jakarta 10130, Indonesia Tel. 62-21 6336789, 6332666 Fax. 62-21 6346704 www.btn.co.id email: [email protected]

PT. Bank Tabungan Negara (Persero) Tbk.

2014 Sustainability Report

Preface

Sustainable Governance

Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment

Performance of Sustainable Social

Bank BTN at a Glance PT Bank Tabungan Negara (Persero) Tbk – or better

of consistency in providing a variety of housing products

known as Bank BTN (here in after referred to as “the

and services, particularly through KPR (mortgage), both

Company”) – has a long history in banking industry

“KPR Subsidy” (Subsidized Mortgages) for lower-middle

in Indonesia. Bank BTN was established in 1897 under

segment and “KPR Non-Subsidy” (Non-Subsidized

the name Postspaarbank. In the era of independence,

Mortgages) for middle and upper segments.

more exactly in 1950, the Government of the Republic of Indonesia changed the name Postspaarbank to Bank

As a Bank focusing on housing finance, the Company

Tabungan Pos, which finally became Bank Tabungan

has also succeeded to keep its position as one of 10

Negara in 1963.

largest banks in Indonesia in term of assets and loan disbursement.

In 1974, the Company was appointed by the Government as the only institution to disburse KPR to lower middle

Aspiring to be the world-class company with a goal of

class society, in line with the Government’s initiative to

providing the best outcome to its stakeholders; Bank BTN

promote housing program for its people. The Company

is always consistent in emphasizing its focus as a leader

listed its initial stocks on December 17, 2009 on the

in the housing finance. At present, Bank BTN’s business

Indonesia Stock Exchange, and was the first Indonesian

focus is accentuated in three sectors: Mortgages &

bank to securitize asset by recording Asset Backed

Consumer Banking, Housing & Commercial Banking, and

Securities - Collective Investment Contracts (KIK-EBA).

Sharia Banking. Each group runs its business through lending, funding and other related services.

As a bank that focuses on housing finance, Bank BTN is willing to help Indonesian people in turning their vision into reality when it comes to having the dream house. This desire has been shown in its more than six decades

Field of Business According to the Deed of the Representation of

deposits, certificates of deposit, savings and/or

Extraordinary

other equivalent forms;

General

Meeting

of

Shareholders

Resolutions on the Amendment to the Article of

B.

Disbursing loans;

Association of PT Bank Tabungan Negara (Persero) no.

C.

Issuing an acknowledgment of debt and making

7 dated October 12, 2009, the Company’s business activities are as follows: A. Collecting funds from the public in the form of deposits consisting of demand deposits, time

PT. Bank Tabungan Negara (Persero) Tbk.

borrowings secured by earning assets; D. Buying, selling or guarantying on the Company’s risk or for the Company’s benefit and at the behest of its customers:

BTN Terdepan GCG Rumahkoe

17

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Preface

Sustainable Governance

Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment

Performance of Sustainable Social

i.

ii.

Money order/drafts including the drafts

J.

through auction or outside the auction based

be no longer than in the practice of the said

on the authority to sell outside the auction from

securities trading.

the owner of the collateral in the event that the

Letter of acknowledgment of debt and other

debtor fails to meet its obligations to the Company,

trade papers with the validity period no longer

provided that the purchased assets shall be

trading. iii. Paper

liquidated as soon as possible. K.

Saving

Bonds

and

Government

Securities.

authorities. M. Conducting equity participation in banks or other

vi. Futures with a maturity in accordance with

companies in the financial sector by adhering to

legislation. vii. Other valuable Instruments with a maturity in

Performing foreign exchange operations by adhering to the provisions stipulated by the

Indonesia / SBI). Bonds.

Conducting factoring, asset securitization, credit card business and activities of the trustee.

L.

iv. Bank Indonesia Certificates (Sertifikat Bank v.

Purchasing part or all of the collaterals, either

accepted by Bank of which the expiration shall

than in the practice of the said securities

2014 Sustainability Report

the legislation. N. Conducting temporary investment to overcome the

accordance with the legislation.

failure of credit, including the failure of financing based on Islamic principles; on the terms that the

E.

F.

Placing funds with, borrowing money from, or

Company at a later date should the Company shall

lending funds to other banks, either by mail,

withdraw its investment, in accordance with the

telecommunication facilities and on sight draft,

provisions set by the Company according to the

check or other means;

legislation.

Receiving payment of bills on securities and

O. Acting as the founder and the trustee of pension

performing calculations with or among third parties;

plan in accordance with the prevailing legislation. P.

G. Providing a place to store goods and securities; H. Performing custody activities for the interests of

and other investment banking. Q. Doing business based on sharia principles; in

other parties pursuant to a contract; I.

accordance with the provisions stipulated by Bank

Making placements of customer funds to other customers in the form of securities that are not listed on the stock exchange;

Conducting financial services, commercial banking,

Indonesia and the prevailing laws and regulations. R.

Performing other activities commonly undertaken by banks with regard to the provisions of prevailing legislation.

BTN Terdepan GCG Rumahkoe

PT. Bank Tabungan Negara (Persero) Tbk.

2014 Sustainability Report

Preface

Sustainable Governance

Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment

Performance of Sustainable Social

19

Operating Regions

Sumatera Regional Offices Branch Offices

Jawa

Bali & Nusa Tenggara

Kalimantan

Papua & Maluku

Sulawesi

1

2

-

-

-

-

11

38

5

3

5

3

Sub Branch Offices

34

158

10

5

13

3

Cash Outlets

58

375

18

8

18

2

Sharia Outlets

6

40

2

-

2

-

5

21

4

2

2

-

Post Offices

Priority Outlet

700

1.624

299

141

126

61

ATMs

240

1.345

85

46

92

22

2011 Regional Offices Branch Offices

2012 2

2013 3

2014 3

3

65

65

65

65

Sub Branch Offices

218

223

223

223

Cash Outlets

316

415

479

479

Sharia Outlets

39

50

50

50

Priority Outlet

7

13

23

34

Total Outlets

640

756

820

820

Post Offices

2.738

2.922

2.922

2.951

ATMs

1.181

1.404

1.504

1.830

Employees

6.337

7.142

8.011

8.582

PT. Bank Tabungan Negara (Persero) Tbk.

BTN Terdepan GCG Rumahkoe

20

Preface

Sustainable Governance

Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment

Performance of Sustainable Social

2014 Sustainability Report

Structure and Composition of Stock Ownership The State of the Republic of Indonesia possesses one

report and explanation on certain matters by taking into

sheet of Dwiwarna A series Share, which furnish the

account of prevailing legislation, particularly the capital

holder with privileges that are given to the other

market regulations.

shareholders, namely: to approve appointment and termination of members of the Board of Directors and

On December 31, 2014, the State of the Republic of

Board of Commissioners, approve the amendments

Indonesia owned 6,353,999,999 Common Shares and

to the Articles of Association, including merger,

one Dwiwarna series A Share with special voting rights,

amalgamation, acquisiton and split-off as well as

making its share ownership amounted to 60.13%.

dissolution and liquidation of the Company, as well as to ask the Board of Commissioners and Directors for a

National

Shareholders The State of the Republic of Indonesia Individual Employees Cooperatives Foundations Pension Plans Insurance Companies Limited Liability Companies Mutual Funds

Total Investors

Sub Total Asing

Foreigners Individuals

Sub Total

Total Shares

Share Ownership %

1

6,354,000,000

60.13%

6,879 1,736 4 17 128 28 83 100 8,976 27 237 264 9,240

406,117,233 118,865,600 8,539,600 29,206,833 230,199,673 167,601,952 312,951,002 778,616,221 8,406,098,114 3,307,902 2,158,289,984 2,161,597,886 10,567,696,000

3.84% 1.12% 0.08% 0.28% 2.18% 1.59% 2.96% 7.37% 79.55% 0.03% 20.42% 20.45% 100.00%

Shareholders with More than 5% Share Ownership As of December 31, 2014, composition of the Shareholders with More than 5% Share Ownership is as follows: No. Name 1 The State of the Republic of Indonesia

BTN Terdepan GCG Rumahkoe

Total Shares 6,354,000,000

Share % 60.13%

PT. Bank Tabungan Negara (Persero) Tbk.

2014 Sustainability Report

Preface

Sustainable Governance

Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment

Performance of Sustainable Social

21

Share Ownership by the Board of Commissioners and the Board of Directors Name Board of Commissioners Mardiasmo Sahala Lumban Gaol Amanah Abdulkadir Maulana Ibrahim Agung Kuswandono Herman Hidayat The Board of Directors Maryono Irman Alvian Zahiruddin Mansyur S. Nasution Hulmansyah Rico Rizal Budidarmo Iman Nugroho Soeko

PT. Bank Tabungan Negara (Persero) Tbk.

Position President Commissioner Independent Commissioner Independent Commissioner Independent Commissioner Commissioner Commissioner President Director Director Director Director Director Director

Total Shares

Share % -

-

98,500 4,922,650 375,000 -

0.0009 0.0466 0.0035 -

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Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment

Performance of Sustainable Social

Award & certification

2014 Sustainability Report

[G4-15]

Type of award Service Excellence Category 2nd Best ATM Commercial Bank Date received 13 Jun 2014 The organization of the award Infobank

Type of award Service Excellence Category 2nd Best Customer Service Islamic Business Unit Date received 13 Jun 2014 The organization of the award Infobank

Type of award Service Excellence Category 1st Best Phone Handling Date received 13 Jun 2014 The organization of the award Infobank

BTN Terdepan GCG Rumahkoe

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2014 Sustainability Report

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Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment

Performance of Sustainable Social

Type of award Service Excellence Category 2nd Best Overall Performance Date received 13 Jun 2014 The organization of the award Infobank

Type of award The 10th Islamic Finance Award Category 1st rank The Best Services Quality Date received 24 Feb 2014 The organization of the award Karim Consulting Indonesia

Type of award Pembiayaan Perumahan Category Pelayanan Terbaik dalam Pembiayaan Perumahan Rakyat Date received 28 Okt 2014 The organization of the award Residence Indonesia

PT. Bank Tabungan Negara (Persero) Tbk.

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2014 Sustainability Report

Significant Events Jakarta, February 10, 2014 Bank BTN Exposed the Company’s Performance of the 4th Quarter of 2013 Bank BTN presented results of the Company’s performance for the 4th Quarter of 2013. BTN managed to increase net income in 2013 amounted to Rp1.56 trillion, growing by 14.53% compared to 2012. While Non-Performing Loan (NPL) - Net could be controlled down to 3.04% as a result of the Bank’s seriousness in improving its loan quality.

Jakarta, March 27, 2014 Bank BTN Rolled-Out Contact Center For Privileged Customers Bank BTN, in cooperation with PT Telkom and PT Infomedia Nusantara, launched a contact center dedicated for “BTN Prioritas” customers and Interactive Voice Response (IVR) service. This program was a form of the Company’s commitment to provide value added services to its customers. Contact Center 1500 286 operates 24 hours every day in the whole year to “BTN Prioritas” customers.

Jakarta, April 29, 2014 Exposure the Company’s Performance of 1st Quarter of 2014 Bank BTN announces the 1stquarter financial performance in 2014 with the achievements of lending amounted to Rp102.82 trillion, or an increase of 20.24 % compared tothe same period in previous year. Total homes andapartments that have been financed by Bank BTN during the first three months of this year reached 28,032 units.Third Party fund gathered by the Company also grew from 17.44 % to Rp 102.28 trillion.

Jakarta, May 5, 2014 Bank BTN Entered into A Cooperation Agreement With JAMKRINDO Bank BTN entered into a cooperation agreement with Perusahaan Umum Jaminan Kredit Indonesia (Jamkrindo). This cooperation aims to provide collaterals for mortgages under Housing Finance Liquidity Facility Scheme (FLPP Scheme). The agreement was signed respectively by Maryono, President Director of Bank BTN and by Diding Surdirja Anwar and Bakti Prasetyo, President Director and Director of Jamkrindo.

BTN Terdepan GCG Rumahkoe

PT. Bank Tabungan Negara (Persero) Tbk.

2014 Sustainability Report

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Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment

Performance of Sustainable Social

Jakarta, June 6, 2014 Bank BTN Supports the Financing of 1000 Homes for Workers Bank BTN is ready to provide financing support for the construction of housing for workers in five major cities in Indonesia that include Karawang, Serang, Palembang, Semarang and Surabaya. Bank BTN will build 1,000 affordable housing units in Serang after a similar project was previously carried out in Karawang. Approximately 130 houses have been realized under KPR Sejahtera FLPP scheme with PUMP-KB with a total financing value of approximately Rp 2.58 billion. The housing project is prepared as the housing facility provided to the participants of BPJS Ketenagakerjaan.

Jakarta, July 15, 2014 Bank BTN Drew Prizes of Homebastis Savings of Period III To boost its Third Party Funds, Bank BTN rewarded its loyal customers, including Homebastis prize program of period III with the Grand Prize 3 consisting of luxury homes worth Rp 2 billion each.

Jakarta, August 16, 2014 Bank BTN Held Property Expo 2014 Bank BTN was back with Property Expo 2014, the fourth property expo event since 2011. This exhibition is Bank BTN’s breakthrough to increase lending, especially mortgages. The public and housing industry players have given good responses to the event. Moreover, such the event offers a lot of the facilities and conveniences for transactions during the exhibition.

Jakarta, September 24, 2014 Bank BTN Won The Best Efficient Bank 2014 Bank BTN was awarded The Best Efficient Bank in 2014 from Bisnis Indonesia daily for 2013 company performance for the stateowned banks group category. The methodology used for this award was by comparing the actual results (outputs) obtained by a bank with the results that actually could be achieved by several consumption of the same inputs. Bank BTN was also assigned “The Best Efficient Bank 2014” for state-owned banks group category.

PT. Bank Tabungan Negara (Persero) Tbk.

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2014 Sustainability Report

Jakarta, October 2, 2014 Synergy between Bank BTN and TELKOM to Develop Branchless Banking Bank BTN provides banking facilities to the sellers of Telkom pulse. The MoU was signed by Maryono, President Director of Bank BTN and Arief Yahya, President Director of Telkom. This Bank BTN’s cooperation with Telkom is a form of synergy between SOEs. This partnership also has a mission to support the government’s program to encourage the National Non-Cash Movement (GNNT).

Jakarta, October 16, 2014 Bank BTN Launched Housing Finance Center As a leader in housing finance in Indonesia, Bank BTN launched Housing Finance Center (HFC) as one of the solutions to the housing problem in Indonesia. Bank BTN’s HFC will be a source of inspiration for businesses in housing finance.

Jakarta, October 16, 2014 Business Leaders Forum Seminar with the topic “Fewer, Bigger, Bolder” and speaker Mohan Sawhney, organized by MarkPlus, Inc. The Seminar featured a discussion session on Housing Finance with the speakers from the Ministry of Public Housing - Mr. Sri Hartayo, Deputy in Financing and Chairman of DPP REI (Indonesian Real Estate Association of Central Office), Eddy Hussy, with an academic discussion by Professor Mohan Sawhney from the Kellogg School of Management.

Jakarta, October 28, 2014 The ceremony of MOU signing with Indonesian National Police represented by Mr. Sutarman (Chief of Police). The Cooperation includes the use of Bank BTN’s products, services and facilities by the National Police Institution and members of the National Police throughout Indonesia.

BTN Terdepan GCG Rumahkoe

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2014 Sustainability Report

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Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment

Performance of Sustainable Social

Jakarta, October 29, 2014 Established a Cooperation with YPI Al-Azhar to Launch “Tabungan BTN Qurban iB” Bank BTN established a cooperation with Islamic Education Foundation (YPI) Al Azhar in the launching of “Tabungan BTN Qurban iB”. The Cooperation generally involves the provision of banking service facilities based on Sharia principles.

Jakarta, November 6, 2014 Bank BTN Open Priority Services In Pondok Indah Bank BTN opened another the 30rd priority service office in Pondok Indah as an effort to improve the Third Party Funds. Pondok Indah’s BTN Prioritas is expected to contribute the strengthening of the Company’s capital structure.

Jakarta, November 18, 2014 Jakarta, November 18, 2014 The launching of “Tabungan BTN Perumahan” was witnessed by the Minister of Public Works and Public Housing Mr. Basuki Hadimuljono at the 2014 National Work Meeting (Rakernas) of Indonesian Real Estate Association (REI).

Jakarta, December 9, 2014 Bank BTN-SMF Issued the Largest Marketable Securities in History Bank BTN jointly with SMF Finance issued Bank BTN’s 7th Collective Investment – Asset-Secured Securities (KIK EBA) in the amount of Rp1.5 trillion, which is the largest value of KIK EBA issued by the Company so far. This KIK EBA DBTN05 obtained the effective statement from OJK on November 25, 2014.

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2014 Sustainability Report

Human Resources

In 2014, the Company has recruited 889 employees including recruiting employees with Pro Hire or Hire Experience status with details of some following aspects: By Gender Gender

Total

Female Male Total

349 540 889

By Education Education One-Year Diploma Three-Year Diploma Four-Year Diploma Bachelor’s Degree Master’s Degree Total

Total 7 293 5 582 2 889

By Age Age

Jumlah

20 - 25

775

26 - 30

67

31 - 35

41

36 - 40 Total

BTN Terdepan GCG Rumahkoe

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PT. Bank Tabungan Negara (Persero) Tbk.

2014 Sustainability Report

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Performance of Sustainable Social

29

By Position Education

Grade

Total

Officer Development Program (ODP)

13

62

General Banking Staff (GBS)

12

0

Supporting Staff (SS)

08-11

545

Customer Service Staff (CS) / Pension at age 36

11-12

83

Junior Secretary (SKR) / Pension at age 36

10-11

13

Teller Service Staff (TS) / Pension at age 36

09-10

132

Professional Hire / Pension at age 36

14-16

54

Total

Collective Labour Agreement [G4-11]

889

implementing the employment relationship as well as being solution for the company, employees, and other

Bank BTN realize that optimizing human potential can

related parties such as the government.

be achieved not only through the implementation of a competency-based HR system in any activity

The Company cooperates with The Unions as partners

of HR functions, but must be accompanied by work

in order to handle “in special attention” employeesby

practices to accommodate the rights of employees.

giving mentoring/counseling to employees, because the

Therefore, the Company includes human rights and work

Company assumes that The Unions is psychologically

practices that are fair and do not violate human rights

closer to employeesin the case of the delivery of

in the Collective Labour Agreement’s points, which are

employees’ complaints.

periodically evaluated and refined. Thus, Collective Labour Agreement can be a guide for the company and

CLA becomes guidance for the Company and employees

employees in carrying out the working relationships that

in carrying out the working relationship, which

govern the rights and obligations of both parties.

determines rights and obligations between the company and employees. Bank BTN incorporate human rights as

Implementation of activities related to Company’s Social

well as fair labor practices and do not violate rights

and Environmental Responsibility shall observe the

of human beings into subjects/points in CLA that are

provisions regarding the industrial relations of human

periodically evaluated and refined.

resources within the Company. Therefore, Bank BTN made provisions governing industrial relations of human

Bank BTN is committed to develop a good industrial

resources set out in the Collective Labour Agreement

relations by:

(CLA), which is periodically evaluated and refined by the

1.

Company.

Providing a good and safe working environment for employees, including a decent welfare.

2.

Fair treatment and protect employees from any

Instruments of the Company’s industrial relations are

form of possibility that endanger the safety and

Bank BTN union and Collective Labor Agreement (CLA)

health at work.

that contains the terms of employment as a guide in

PT. Bank Tabungan Negara (Persero) Tbk.

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3.

4.

2014 Sustainability Report

Build a healthy two-way communication between

In any employment agreement with supplier, the

management and employees on the basis of mutual

Company has set clauses requiring suppliers to comply

interest and benefit.

with work-related rules and regulations related. In this

Providing equal opportunities for employees to take

reporting period, there were no significant violations of

part in training and other development programs in

our suppliers.

accordance with the Company’s business.

Implementation of Precautionary Principle [G4-14]

Significant changes over reporting period [G4-13]

this

There was no significant change during the reporting The precautionary principle implemented by the

period of 2014 Sustainability Report of PT Bank BTN.

Company by establishing a Risk Management Division, which is in it there are a Risk Monitoring Committee, Risk Management Committee, and Risk Management Work Unit. In addition, the Company also implemented the Internal Control System (SPIN).

Membership of the Company in national or international associations/organizations [G4-16]



Application of External Standards

Bank BTN is an active member of associations as follows: 1.

The

Association

of

Indonesian

Issuer/Public

Company In its business activities, standardization of project

2.

andBank BTN’s services refer to the criteria of ISO 9001:2008.

Supply chain [G4-12] In running the Company, Bank BTN identifies and

Association

of

National

Commercial

Bank

(PERBANAS) 3.

The Institute of Bank Internal Auditors

4.

Internal Audit Association of Indonesia

5.

The Institute of Internal Auditors (IIA)-Indonesia Chapter

categorizes supplier that has direct as well as indirect

Stakeholder engagement [G4-24, G4-25,

impact upon the survival of the bank. Definition of supply

G4-26, G4-27]

chain or suppliers in this report are parties whom supply goods and special services,such as business partners and

Bank BNI business sustainability is closely related the

human resource suppliers for audit, security, customer

ability of management to interact with stakeholders. With

service, cleaning service, transportation, marketing,

positive interaction, the sustainability of the business

and maintenance/repair. Aligned with their business

as well as the implementation of social responsibility

implications, which also has the potential risks to the

and environmental sustainability can be implemented

image and reputation of Bank BTN.

optimally for the benefit of stakeholders.

The level of their compliance with labor and work

Stakeholder engagement is limited. In this case, Bank

safety regulations will directly influence the image

BTN involves them through available activity/media, but

and reputation of Bank BTN. Therefore,to suppress the

do not exceed the provisions laid down in the statutes or

negative impact, the Company has conducted rigorous

regulations.

selection of suppliers, with their compliance with labor regulations as main consideration.

BTN Terdepan GCG Rumahkoe

PT. Bank Tabungan Negara (Persero) Tbk.

2014 Sustainability Report

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Sustainable Governance

Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment

Performance of Sustainable Social

Bank BTN has carefully identified groups of key stakeholders, based on their dominant influence upon sustainability of the Company’s business. Stakeholders and their involvement throughout 2014 can be described as follows:

No. Stakeholders

Involvement Methods Call Centre Service

1

2

Customer

Pemerintah dan Otoritas Keuangan

Customer Satisfaction Survey

Bank BTN’s website and frontline information Pelaporan pelaksanaan Provide information regarding kepatuhan dan notifikasi pada compliance to prevailing Bank Indonesia regulations Reporting the compliance of sharia to National Sharia Council Internal Media

3

Objectives Provide services and respond to complaints Gather feedback regaring customer satisfaction and improvement needed Banking education and provision about the Company

Employee Employee Satisfaction Survey Discussion about Collective Labor Agreement

Provide information regarding level of compliance to sharia principles Conduct socialization about policies and strategies concerning employees Assess employee’s level of satisfaction and gather their expectations Create a conducive working climate to produce harmonious bipartite relationship Expansion of the Company’s merchant Improve corporate governance, including gather updates regarding governance

4

Labor Union

5

Suppliers

6

Business Organization

7

Community Organization/Social Organization/ Non-governmental Organization

Strategic cooperation Optimize the achievement of to implement programs Corporate Responsibility, both Company’s CSR program in social and environment area

8

Mass media

Press release

PT. Bank Tabungan Negara (Persero) Tbk.

Gathering, seminar dan workshop Meetings and Activities in national, regional, and international scale

Frequency Every time At least once a year When needed in accordance with the provision in accordance with the provision When needed At least once a year yearly review Every month Every month

When needed

Provide information related to banking business that needs to be When needed known by the public

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2014 Sustainability Report

Report profile 2014 Bank BTN Sustainability Report 2014 is a fifth -year

closely associated with Bank BTN’s social responsibility

report, since the first report was launched in 2009. This

activities to customers, employees, suppliers, business

report was prepared to comply with the provisions of

partners, society, and the environment.

Article 66 paragraph 2c, Act 40 of 2007 on Incorporated Company (PT), which requires the submission of the Social Responsibility and Environment (TJSL) report in the Annual Report. Definition of TJSL according to Article

Report Content Determination Process

1 of Law No. 40 of 2007 is “the Company ‘s commitment to participate in sustainable economic development to

In setting the topics and contents of this report we were

improve the quality of life and beneficial environmental,

using 4 (four) steps suggested by GRI G4, namely:

both for the Company itself, local community, and society

1. 2. 3.

this Report also can be accessed through the company

Perform validation on the material aspects (Validation step);

include Transparency, Accountability, Responsibility, Independence, and Fairness. Besides the printed edition,

Prioritize the aspects that have been identified in the previous step (Priority step);

This report is published annually as a form of Bank BTN’s commitment to the sustainability principles that

Identify the aspects of material and boundary (Identification step);

at large”

4.

Review the report once published in order to improve the quality of the next report (Review step).

website http://www.btn.co.id. This report is deliberately structured to deliver comprehensive information and clear, thorough, and transparent illustration about various

Reporting Principles

policies, programs, activities, efforts, and performance of Bank BTN in economy, social, and environment aspects

In this report we also report the engagement, interaction

related to the operational activities of the Company

and performance of the Company collectively together

throughout the year of 2014. [G4-29,G4-30]

with stakeholders. Data related to the performance of the governance and operational performance of

Bank BTN hope this report can be a source of information

the Company includes financial data, environmental

related to the implementation of the sustainability

performance data, health and safety performance

performance of the Company by all stakeholders,

data, security practices, employment practices, and the

namely the shareholders, government officials, capital

application of the principles of human rights.

market authority, the community around the location of business operation, academia, research institutions, as

The whole financial data was expressed in Rupiah

well as other concerned parties.

currency,

unless

Transparency,

Reporting Period

otherwise

stated.

Accountability,

Principles

of

Responsibility,

Independence, and Fairness that are integratedin all business activities of the Company required us to conduct a review of internal audit against the contents of

This Sustainability Report contents Bank BTN social

the report, in order to ensure that the five principles have

activities with in a period of one year from January 1, 2014

been applied properly and to guarantee the accuracy and

until December 31, 2014. It can be said that this report

accountability of qualitative and quantitative indicators

generally disclose Bank BTN’s performance and activities

of data used in this report.

in order to support sustainable development and also

BTN Terdepan GCG Rumahkoe

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2014 Sustainability Report

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Sustainable Governance

Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment

Performance of Sustainable Social

Bank BTN applied the ‘Principles of Report Content

Report Boundary

[G4-17, G4-18]

Determination’ as recommended in GRI-G4 Sustainability This report covers activities of Bank BTN and its

Report Guidance, consists of:

subsidiaries, as stated in the consolidated financial 1.

Principles of Stakeholder Inclusivity.

report. Financial, human resources, and environmental

We applied this principle by communicating with

data in this report is consolidated data with subsidiaries.

selected stakeholders during the time of preparing Data measurement techniques used by Bank BTN

this report.

based on Indonesia Financial Accounting Standards 2.

Principle of Sustainability Context

(SFAS). Meanwhile, for the sustainability data, we used

We applied this principleby expanding disclosure

internationally accepted data measurement techniques.

with taking into account the extent of Company’s business impact up to national coverage and

Quantitative data presented in this report used the

issuesinternational

principle of comparability,at least in two consecutive

related

with

sustainable

years, sousers of this report can perform trend analysis.

development.

There are no restrictions in determining the scope and 3.

Principle of Materiality We

applied

this

with

boundary of this report. the

involvement

of

stakeholders’ interests by organizing discussion forums attended by representatives from various

Report Examination

stakeholder groups. In this reporting period, the Company has not yet 4.

Principle of Completeness

included an external independent assuror to perform

We applied this principle by presenting data

an underwriting service over the Sustainability Report.

andinformation that are practical to be put into

Nevertheless, we guarantee the truth andvalidity of the

action as well as being consistent with the scope

information in this report, as expressed in the Statement

and reporting period with consideration of relevant

of Board of Directors.

boundaries on every aspects or topics that we are

[G4-32, G4-33]

reporting.

PT. Bank Tabungan Negara (Persero) Tbk.

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Sustainable Governance

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2014 Sustainability Report

Prologue BTN Bank is committed to become a part of the life of

is also in order to mitigate the trend of world banking

Indonesian families, by participating in realizing the

business; hence Bank BTN will be able to conduct the

dream house for all. Materialization of this Indonesian

business transformation consistently and sustainably.

families’ dream can not be separated from the maximum implementation of good corporate governance (GCG)

BTN’s GCG Paradigm

in Bank BTN. The Company realizes that the maximum implementation of GCG is the main requirement in

The challenges faced by the Company are varied and

achieving consistent and sustainable performance in

complex. Therefore, GCG principles implementation is

short and long-term period and long-term.

mandatory. Generally, the Company implement basic principles of GCG including tranparency, accountability,

This is in line with the goals of the Company to position

responsibility, independency and fairness (TARIF),with

itself as an international company (world class banking

a belief that those principles will help ensure a perfect

company). Thus, proper and accountable implementation

balance of its entire business (360 degrees), so that all

of GCG and is the main pillar of the Company in running

kinds of interests of both business and social, individual

its wheels of business. Management of Bank BTN keeps

and groups, internal and external, short term and long

on making improvements in managing all aspects over

term as well as both shareholders and stakeholders

time and based on the demands of banking industry.

interests will move towardone balance point.

The Company’s commitment to apply principles of GCG

Bagan 360 Degree of Balance Shareholders

Stakeholders

GCG Economy

Long term

GCG

GCG

360 Degree Balance

GCG

GCG

GCG

Short term

GCG

Communal

Individual

Internal

BTN Terdepan GCG Rumahkoe

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External

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2014 Sustainability Report

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Implementation of corporate governance is materialized



in a variety of processes ranging from recruitment,

Development

of

software

37

(Intelligence

Governance [i-Gov]).

internal control system, risk management, performance



Externalization.

evaluation, decision making, up to reward and punishment program. Bank BTN also continues to

3.

Implementation Cycle Stages

improve the process of implementation of GCG to

Continuous monitoring and determination of action

ensure the TARIF principles are applied at every level the

plan and feedback at the end of each year by using

organization, both at main office and business units.

the Plan Do Check Action (PDCA),towards success for the long-term.

Bank BTN continues to encourage the implementation of corporate governance and creating a culture that uphold integrity, professionalism, and compliance

Self-Assessment

with applicable regulations. Bank BTN perceives corporate governance as a means to maintain business

GCG implementation requires an assessment to see the

continuity and stakeholders trust, as well as to foster the

progress of GCG principles that have been implemented

performance and integrity of the Company

by the Company. This assessment is also useful to ensure an increase in the quality of sustainable implementation of GCG into the business processes.

Pillars of GCG Road Map

The Company carried out self-assessment in accordance The four pillars of implementation milestones of Bank

with the provision requiring the Bank to conduct internal

BTN’s GCG are as follows:

self-assessment upon the implementation of GCG. The

• Commitment on Governance

Company has conducted GCG assessment internally

• Governance Structure

since 2007 by using the method of Self Assessment.

• Governance Mechanism • Governance Outcome

Self-Assessment Results for the period of January to December 2014, can be submitted as follows:

These GCG pillars are guidance executing GCG development strategies of Bank BTN that includes several

Individual Rating 2

stages as follows: 1.

Pre-Implementation Phases

Reflecting that the Bank’s management has performed

There are 3 (three) things to do at this stage, namely:

a generally proper implementation of good corporate



Strengthen management commitment.

governance. This is reflected in an adequate adherence



Establish

and/or

complement

GCG

soft



Establish

and/or

complement

GCG

infrastructure. 2.

to GCG principles.Should there be a weakness in the GCG principles implementation,the weakness is generally less

structure.

significant and can be solved with a normal action by the Bank’s management.

Implementation Stages There are several strategies in this stage, namely: •

Awareness programs.



Internalization and institutionalization.



Evaluation and Assessment Program.

PT. Bank Tabungan Negara (Persero) Tbk.

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Structure of Corporate Governance The Company’s management is highly committed

To ensure the checks and balances as well as

to GCG implementation. In

June 25, 2014, the

accountability are clear and unequivocal from each

Company enforced its commitment to support GCG

Organ of the Company, Bank BTN constantly working to

implementation in all aspects by partnering with

improve the structure and implementation of corporate

Indonesia’s Corruption Eradiction Commission, better

governance.

[G4-34]

known as “KPK”, in preventing gratification practice and bribery in the Company’s work environment. KPK will

The Corporate’s organ consists of the Main Organs,

help the Company to implement a gratification control

namely: the General Meeting of Shareholders (GMS),

system in the Company’s work environment.

the Board of Commissioners and Board of Directors; and Supporting Organs, including: Various Committees, both

Through this system, tools and mechanism

for

at the level of the Board of Commissioners and Board

gratification control will be constantly built and

of Directors, in accordance with the regulations. A clear

developed by the Company. This is the system that will

separation between the organs of the Company reflects

keep the integrity of all employees in receiving and

the existence of checks and balances as well as a good

giving the gratification considered as a bribery. Therefore,

system of internal control.

the Company has been partnering with KPK to guard its implementation in the Company work environment.

THE COMPANY’S ORGAN MAIN ORGAN

SUPPORTING ORGAN

GMS

BOC

BOD

Committee

Committee

• Audit Committee • Remuneration and Nomination Committee • Risk Monitoring Committee

BTN Terdepan GCG Rumahkoe

• Risk Management Committee • Loan Policy Committee • Personnel Committee • IT Steering Committee • Product Committee • Asset and Liability Committee

CORPORATE SECRETARY INTERNAL AUDIT WORK UNIT EXTERNAL AUDIT RISK MANAGEMENT WORK UNIT

COMPLIANCE WORK UNIT OTHER WORK UNIT

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Performance of Sustainable Environment

Performance of Sustainable Social

Compliance and Responsibility toward Economic, Environment, and Social Principles House is one of the most important elements inlife.

A series of innovations are often born in order to achieve

As one of the primary needs, dream home becomes

prosperity and improve quality of life through a variety

essential for humans. Role of a house is so central and

of economic activities in this open business climate.

cannot be separated from its function as life support

Tight competition in business accompanied by a number

as well as social identity or social status. In its efforts to

of new risks associated with stability of environment,

preserve life, every human being has primary, secondary,

economic and socialculture, making it a challengethat

and tertiary needs. In this case, house is a primary need

must be dealt with wisely.

of humans as part of their effort to maintain a sustainable life.

Development as an idea, principle and related concept is a challenge for advanced implemented in human life.

Departing from the idea, Bank BTN sought to materialize

Thus, practices of sustainable development framework

the dream of the society for a decent house. By becoming

that are being executed by the Company certainlyhave a

a family friend Indonesia, Bank BTN is committed to give

correlation between environmental, social and economic

a chance for them to get a decent house of their dreams.

aspects. These practices of sustainable development are

But of course, the embodiments of these dreamare

also associated with the government. In the sense that a

adjusted with the business climate in general, supported

business investment must be in line with the standards

by national monetary powers.

that apply nationally and internationally.

Bank BTN’s focus as one of the housing financeprovider

Any company operating in Indonesia must comply with

for the society is an evidence for the Company’s

prevailing legal regulations and national standards. This

commitment to organize feasible and sustainable life for

also applies for some prevailing international standards,

humans. With equitable housing construction equitable

which in it requires companies to comply with the

and upholding the principle of justice for all, making

standards of national policies. Bank BTN is aware of

Bank BTN as one of the economic pillars that respire

this, and implementing it with the submission of this

positive climate in the national business atmosphere. The

Sustainability Report that was prepared by incorporating

Company is determined to make the Indonesian people

elements of transparency and accountability through the

as dignified society, in which all the people are entitled to

implementation of the Company’s activities involving

obtain their dream house.

3 aspects, namely economic, social, and environmental and/or taken into consideration the sustainable

Sustainable Principle

principles, as following; •

Documents created by the Company that are related with the performance of economic, social,

Sustainable development is not a new or unfamiliar thing

andenvironment as a tool of management control

for the people around the world in general. The idea

upon internal stakeholders as well as accountability

of sustainable development has already begun when the Brundtland Commission formulated and defined

tool, especially to external stakeholders. •

Performance report of the three aspects can only be

the term of sustainable development. The principle

called sustainability reportif the performance that

of sustainable development is “fulfill the needs of the

is being reported within a certain time has already

present without compromising the fulfillment of the needs of future generations”.

sustained or showed a trend of improvement. •

The consequence is that sustainability report consists of various indicators of the three aspects, which need to be monitored periodically.

PT. Bank Tabungan Negara (Persero) Tbk.

BTN Terdepan GCG Rumahkoe

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40

Preface

Sustainable Governance

Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment

Performance of Sustainable Social

Implementation

of

good

corporate

governance

Good Corporate Governance (GCG) and prevailing

in the body of BANK BTN essentially is a concept thatrefers to the process of reaching a decision and the

regulations, •

implementation can be accounted for together. UNDP (1997) defines good governance as a consensus reached

2014 Sustainability Report

Establish a positive image of the Bank in the community, and



Increase cooperation and mutual respect with

by the government, citizens, and the private sector for

the community and the environment around the

the execution of governance in a country.

location of Bank operational office. Meanwhile, the implementation of activities which

Meanwhile, the World Bank interpret good governance

support sustainable development in the body of

as a public service that is efficient,good justice system,

Bank BTN are to realize the Company’s fourth mission,

and system of governance that can be accountable to

which is to pay attention to the interests of society and

the public. If referring to the three pillars of sustainable

environment. Forms of activities undertaken, among

development, namely economic, environmental, and

others are:

human development, the efforts of good governance that touches three parties in it, namely the government



In economy field, activities that have an impact on

as state officials, corporate or business world as economic

increasing employment opportunities and business

engine, andthe civil society, are compatible. If all work in

opportunities inorder to alleviate poverty in the

harmony, the indicators of sustainable development will continue to provide positive signals.

community. •

In social field, activities that have an impact on improving the quality of life in education, health,

Sustainable development is one of the components of economic development in Indonesia.The goal of

arts and culture, sport and religious. •

In environmental field, activities that have impact on

sustainable development itself is to fulfill the needs of

improving comfort and environmental preservation

the present generation without reducing the ability

as well as energy saving and the use of alternative

of future generations in fulfilling their needs. It is very

energy.

understandable and BTN immediately support that goal.



Activities that lighten the burden of the people due to natural disasters or certain economic condition

Implementation Bank BTN’s programs that support

caused by the rise in prices of basic commodities.

sustainable development aim to: •

Elevate the welfare of society and improve the environment,



Develop Bank’s value and culture in accordance with

BTN Terdepan GCG Rumahkoe

PT. Bank Tabungan Negara (Persero) Tbk.

2014 Sustainability Report

Preface

Sustainable Governance

Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment

Performance of Sustainable Social

41

Composition Of Board Of Commissioners And Directors Board of Commissioners

Number and Composition of the Board of Commissioners

The Board of Commissioners works collectively and

[G4-38]

has a joint responsibility for what it does. In general,

Composition of Board of Commissioners as of January

the key role played by the Board of Commissioners

01st, 2014 until May 23rd, 2014 is 6 members, consist

includes supervising managerial activities by the Board

of 1 President Commissioner, 2 Commissioner, and 3

of Directors, providing advice and recommendations to

Independent Commissioner. The detail can be seen

the Board of Directors and ensuring the implementation

below:

of GCG principles by the company. Each member of the Board of Commissioners, including the President Commissioner, has an equal status. The president commissioner coordinates the board’s activities. Composition of Board of Commissioners as of Jan 1, 2014 to May 23, 2014 as follows: Name Mardiasmo Dwijanti Tjahjaningsih*) Agung Kuswandono Amanah Abdulkadir Sahala Lumban Gaol Maulana Ibrahim

Position President Commissioner Commissioner Commissioner Independent Commissioner Independent Commissioner Independent Commissioner

Domicile

Date of assignment

Date of approval of BI/OJK

Date of reassignment

Indonesia

27 Mar 2013

28 Feb 2014

-

Indonesia Indonesia

19 Apr 2012 28 Dec 2012

20 Nov 2012 28 Jun 2013

-

Indonesia

28 Dec 2012

28 Jun 2013

-

Indonesia

19 Apr 2012

16 Jun 2014

-

Indonesia

27 Mar 2013

8 Dec 2013

-

*)Dwijanti Tjahjaningsih has served up to May 23, 2014 Composition of Board of Commissioners as of May 23, 2014 to December 31, 2014 with 6 members consist of 1 President Commissioner, 2 Commissioners, and 3 Independent Commissioners as follows: Name Mardiasmo Herman Hidayat *) Agung Kuswandono Amanah Abdulkadir Sahala Lumban Gaol Maulana Ibrahim

Position President Commissioner Commissioner Commissioner Independent Commissioner Independent Commissioner Independent Commissioner

Date of assignment

Date of approval of BI/OJK

Date of reassignment

Indonesia

27 Mar 2013

28 Feb 2014

-

Indonesia Indonesia

21 May 2014 28 Dec 2012

28 Jun 2013

-

Indonesia

28 Dec 2012

28 Jun 2013

-

Indonesia

19 Apr 2012

16 Jun 2014

-

Indonesia

27 Mar 2013

8 Dec 2013

-

Domicile

*) Herman Hidayat was appointed as member of board of commissioners according to EGMS resolution dated 23 May 2014, and will be effectively assigned after obtaining BI/OJK approval

PT. Bank Tabungan Negara (Persero) Tbk.

BTN Terdepan GCG Rumahkoe

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Preface

Sustainable Governance

Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment

Performance of Sustainable Social

2014 Sustainability Report

Board of Directors Tasks of the Board of Directors (BOD) are to run, maintain, and manage assets and represent the Company in judicial and non-judicial affairs. BOD is bound by collegial responsibility in managing the Company to maximize value drivers for the Company’s improved profitability and sustained market value. Each member of the Board of Directors, including President Director, has an equal status. President Director’s main task is to coordinate the activities of the Board of Directors. The Board of Directors is authorized in making decisions, including those made in Board of Directors meetings, and acting upon the decisions in accordance with their capacity, while upholding collegial responsibility. Any member of the Board of Directors will bear the full responsibility for his/her actions other than those laid out in Board of Directors meetings until a Board of Directors meeting approves those actions.

Total Members and Composition of BOD Composition of BOD for period 1 January 2014 to 24 February 2014 is 3 members consists of 1 President Director, and 2 Directors, with details as follows: Name Maryono Irman Alvian Zahiruddin Mansyur Syamsuri Nasution

Position President Director Director Director

Date of assignment

Date of BI/OJK approval

Date of reassignment

Indonesia

28 Dec 2012

18 Mar 2013

-

Indonesia Indonesia

28 Dec 2012

18 Mar 2013

28 Dec 2012 -

Domicile

Composition of BOD for period 25 February 2014 to 31 December 2014 is 6 members consists of 1 President Director and 5 Director, with detail as follows: Name Maryono Irman Alvian Zahiruddin Mansyur Syamsuri Nasution Hulmansyah Rico Rizal Budidarmo Iman Nugroho Soeko

BTN Terdepan GCG Rumahkoe

Position President Director Director Director Director Director Director

Date of assignment

Date of BI/OJK approval

Date of reassignment

Indonesia

28 Dec 2012

18 Mar 2013

-

Indonesia Indonesia Indonesia Indonesia Indonesia

28 Dec 2012 25 Feb 2014 25 Feb 2014 25 Feb 2014

18 Mar 2013 16 Jun 2014 16 Jun 2014 16 Jun 2014

28 Dec 2012 -

Domicile

PT. Bank Tabungan Negara (Persero) Tbk.

2014 Sustainability Report

Preface

Sustainable Governance

Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment

Performance of Sustainable Social

43

Development For The Board of Commissioners and The Board of Directors The company continues to develop competencies of all employees. Throughout 2014, The BOC had participated in several trainings, conferences, seminars or workshops, as follows: [G4-43] Training of BoC in 2014 Name

Position

Training Material Pelatihan Proses PHK dan Perhitungan Pesangon

Pelatihan “Coaching Clinic” Integrated Talent Management

Amanah Abdulkadir

Independent Commisioner

Training Design dan Implementasi PP/PKB yang Efektif Berbasis Strategi Bisnis dan Kompetensi Perusahaan Housing Finance in a Changing Global Environment

Organizer

Place & Time

Seminarku Seminar & Training Ticket Box Jl. Raya Semanan No. 50A Jakarta barat LA Learning Jl. Taman Paris 1, Karawaci Seminarku Seminar & Training Ticket Box Jl. Raya Semanan No. 50A Jakarta barat Wharton Uiversity of Pennsylvania

LA Learning Jl. Taman Paris 1, Karawaci Association of Training National Conference Fraud (NAFC) 2014 dan Kongres III ACFE Certified Examiners (ACFE) Indonesia Chapter Indonesia Bank Risk Management Program IBI dan LSPP Executives Implementasi Basel III di Indonesia : Sebuah Penjelasan Taktis Mengenai Rencana BSMR Penerapan Basel III di bawah Otoritas Jasa Keuangan (OJK) Workshop ALM Liquidity Risk BSMR Management Kegiatan Enterprise Risk Center For Risk Management Benchmarking in Management Studies Europe (Netherlands, Belgium, (CRMS) Indonesia France, Switzerland) Ethos & Corporate Culture Conference 2014

Agung Kuswandono

Maulana Ibrahim

Commisioner

Independent Commisioner

Sahala Lumban Independent Gaol Commisioner

Hotel Amaris Thamrin City, 23 Januari 2014

Hotel Santika Jakarta, 2526 Februari 2014

Hotel Ibis- Thamrin, 15 April 2014 Wharton School- Amerika Serikat, 2 Juni – 12 Juni 2014 Hotel Santika – Jakarta, 11 – 12 November 2014 The Hotel Sahid Rich, Yogyakarta, Senin s/d Rabu, 1 s/d 3 Desember 2014 Hongkong, 27 s/d 28 November 2014 Hotel Grand Hyatt- Jakarta, 21 April 2014 Sydney- Australia, 14 – 15 Mei 2014 Netherlands, Belgium, France, Switzerland, 21 s/d 28 September 2014

Kegiatan Indonesia International Conference on Islamic Finance

Otoritas Jasa Keuangan (OJK)

JW. Marriot Hotel Surabaya, 3 s/d 4 November 2014

Implementasi Basel III di Indonesia : Sebuah Penjelasan Taktis Mengenai Rencana Penerapan Basel III di bawah Otoritas Jasa Keuangan (OJK)

BSMR

Hotel Grand Hyatt- Jakarta, 21 April 2014

Executive International Conference

Banker Association Moscow, Novgorood dan for Risk Management St. Pittersburg, Rusia, 13 (BaRA) 21 September 2014

To support the BOD in performing their tasks, throughout 2014 the BOC had participated in several trainings, conferences, seminars or workshops, as follows:

PT. Bank Tabungan Negara (Persero) Tbk.

BTN Terdepan GCG Rumahkoe

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Preface

Sustainable Governance

Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment

Performance of Sustainable Social

2014 Sustainability Report

BOD Training of 2014 Name

Position

Training Material

Maryono

President Director

Executive International Conference

Mansyur S. Nasution

Director

Bank Risk management Program Executives

Irman Alvian Zahiruddin

Director

The Aligning Strategy and Sales (ALIGN)

Hulmansyah

Director

Iman Nugroho Director Soeko

Rico Rizal Budidarmo

Director

Banks 3.0 : Reshaping and Aligning Banking Business Towards the ASEAN Economic Community 2020 Real Estate Management Program : Finance, Design and Leadership Intensive Wealth Management and Risk management Refreshment Program for Executives- Rotherdam Making Corporate Boards More Effective

BTN Terdepan GCG Rumahkoe

Organizer Training

Place & Time

Banker Association Moscow, Novgorood dan for Risk management St. Pittersburg, Rusia, 13 (BaRA) 21 September 2014 Hongkong 27 s/d , 28 IBI and LSPP November 2014 HBS Campus, Boston, Harvard Business Amerika Serikat, 7 s/d 12 School Desember 2014 PERBANAS

Hotel Shangri-La, Jakarta, 25-Nov-14

Harvard Business School

HBS Campus, Boston, Amerika Serikat, 14 s/d 18 Oktober 2014

Erasmus University

Amsterdam and Brussels, 10 s/d 17 Mei 2014

Harvard Business School

HBS Campus, Boston, Amerika Serikat, 5 - 8 November 2014

PT. Bank Tabungan Negara (Persero) Tbk.

2014 Sustainability Report

Preface

Sustainable Governance

Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment

Performance of Sustainable Social

Performance Appraisal and Renumeration of BoC and BoD Performance Assessment Criteria For BoC and BoD [G4-44]

Company and Shareholders in particular, as well as other stakeholders in general. Meanwhile, indicators or performance or so-called Key Performance Indicators

Indicators used to assess the performance of the

(KPIs) that are used to measure the performance of the

BOC is the implementation of functions of the Board

Board of Directors, consisting of 4 (four) perspective,

of Commissioners in monitoring and advising the

namely:

Company’s Board of Directors for the sake of The Objectives Strategy

Key Performance Indicators Financial Perpective

Sustainable Value to Shareholder

ROA, ROE, CIR, and LFR Ratio

Growth and Balance of Fund Composition

CASA Ration and DPK Growth

Growth and Balance of Loan Composition

Loan Growth and Loan Composition of Non-Housing

Quality of Loan

Gross and Nett NPL Customer Perpective

Forefront as Market Leader

Market Share Increment

Forefront in Excellent Service

Service Index Business Process Perpective

Network Optimization

Amount of Transaction and Network

GCG Improvement

GCG INDEX Learning And Growth Perpective

Corporate Culture Building

Culture Asessment Index

Human Capital Development

Engagement Employee Index

The assessor for the performance of the Board of Commissioners is GMS, while the assessor for the performance of the Board of Directors is the Board of

Remuneration of the Board of Commissioners and the Board of Directors [G4-51, G4-52, G4-53]

Commissioners and GMS. In its assessment of the Board of Directors, the Board of Commissioners refers to the

Company sets the remuneration for the Board of

Key Performance Indicators of the Board of Directors

Commissioners referring to the Regulation of the Minister

as described above. The Board of Commissioners and

of State Owned Enterprises No. PER-04/MBU/2014 dated

the Board of Directors will later report their work for

March 10, 2014 regarding Guidance for Remuneration

the 2014 period, including the execution of tasks and

of Board of Directors, Board of Commissioners, and

responsibility of BoC and BOD in GMS that will be held

Supervisory Board of State Owned Enterprise. According

in 2015.

to this SOE’s regulation, the amount of income of the Board of Commissioners determine by General Meeting of Shareholders (GMS). The procedure of remuneration of the Board of Commissioners and Board of Directors, as follows:

PT. Bank Tabungan Negara (Persero) Tbk.

BTN Terdepan GCG Rumahkoe

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Preface

Sustainable Governance

Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment

Performance of Sustainable Social

2014 Sustainability Report

The Board of Commissioners makes recommendations to the Remuneration and Nomination Committee to conduct a study on the remuneration of Board of Commissioners’ members. The Remuneration and Nomination Committee coordinates with the Human Capital Division and relevant working units to prepare the recommendations on the remuneration of BoC and BOD. The Remuneration and Nomination Committee prepares the recommendations on the remuneration of BoC and BOD, and then submit the recommendation to the Board of Commissiones The Board of Commissioners discusses the recommendations of the Remuneration and Nomination Committee on the remuneration of BoC and the Board of Directors The Board of Commissioners submit the recommended remuneration of BoC and BOD in GMS and GMS will grant authority and power to BoC by previously obtaining approval from Shareholders of Dwiwarna Serial A to determine the remuneration of BoC and BoC of BTN.

BoC determine the remuneration of BoC and BOD

The Structure of Remuneration for BoC Comprise

of

honorarium,

allowances

(religious,

transportation, and retirement insurance), facilities (health, legal assistance), tantiem or incentive that can be added with Long Term Incentive (LTI).

The Structure of Remuneration for BOD

and legal assistance), tantiem or incentive that can be added with Long Term Incentive (LTI).

Nominal Rate/Components of Remuneration for the Board of Commissioners and the Board of Directors The remuneration package and other facilities for the Board of Commissioners and the Board of Directors are as follows:

Comprises of salary, allowances (religious, housing, retirement insurance), facilities (official vehicles, health,

BTN Terdepan GCG Rumahkoe



The remuneration package and other facilities for BOC and BOD set by the Bank’s General Meeting

PT. Bank Tabungan Negara (Persero) Tbk.

2014 Sustainability Report

Preface

Sustainable Governance

Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment

Performance of Sustainable Social



47

of Shareholders comprises salaries and bonuses/

total membership of BOD, and amount of the entire

tantiem

remuneration and other facilities are:

Types of remuneration and other facilities for BOC and BOD, which includes total membership of BOC, Amount Received in 1 Year Type of Remuneration and Other Facilities 1.

Board of Commissioners

Board of Directors

Person

Rp Million

Person

Rp Million

6

12,463

6

28,513

a. Can be owned

6

2,116

6

2,627

b. Can not be owned

6

622

6

3,405

Remuneration (salaries, routine allowance, tantiem, and other facilities in the form of non-natura

2.

Other facilities in natura form (residence, transportation, health insurance and many more) **

Total

15,201

34,545

Note: In accordance with Bank Indonesia regulations. • •

* Salaries, bonuses, leave of absence allowances, income tax allowances, clothes assistance, religious observance assistance and retirement insurance premium assistance ** Facilities for the Board of Directors include transportation, communications, and housing, while those for the Board of Commissioners include transportation and communications

One-year Remuneration grouped in the range of income levels is as follows: [G4-54] Amount of Remuneration

Number of BOD

Number of BOC

Above Rp2 billion

6

3

Above Rp1 billion to Rp2 Billion

-

2

Above Rp500 million to Rp1 Billion

-

1

Under Rp500 million 1

-

-

Ratio of the Highest and the Lowest Salary in 2014 [G4-55] Description

Rasio

Highest and lowest salary of the employees

19.82 : 1

Highest and lowest salary of the BOD members

1.11 : 1

Highest and lowest salary of the BOC members

1.11 : 1

Highest salary of BOD members and Highest salary of employees

PT. Bank Tabungan Negara (Persero) Tbk.

2.86 : 1

BTN Terdepan GCG Rumahkoe

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Preface

Sustainable Governance

Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment

Performance of Sustainable Social

2014 Sustainability Report

Ethics, Integrity, and Conflict of Interest Code Of Conduct [G4-42, G4-56]

and business ethics so that the employees of Bank BTN can assess the desirable human behavior and

In conducting its business, Bank BTN always strives to

help to give consideration if facing doubt in taking

implement Code of Conduct in order to support GCG

action.

implementation at all levels of the Bank’s organization.



Provide a basic guide for all levels and ranks of the Bank’s organization in implementing standards of behavior and business ethics when performing

The existence of Code of Conduct

interaction between employees and employees, customers,

The existence of Code of Conduct of Bank BTN is intended, among other things to: •





Implement the company’s values into employee

investors

(shareholders),

suppliers,

the government, environment and all other stakeholders. •

As a real effort to improve the Bank‘s image in the

conduct standards and business ethics that are

eyes of the community on an ongoing basis so that

aligned with the vision and mission of the Bank.

Bank BTN is not only known through achievement

Describe the company’s values into employee

of figures and good financial performance, but,

conduct standards and business ethics that must

above all, is also known to resort to doing business

be adhered to by all employees of Bank BTN in

in an ethical and dignified manner in reaching the

performing their daily tasks and responsibilities.

achievements.

Describe in detail the employee conduct standards

The Contents of the Company’s Code of Conduct

[G4-57]

The contents of the Company’s Code of Conduct broadly is to regulate the application of codes of conduct and ethical standards business in conjunction with a variety of stakeholders ranging from employees, customers, suppliers of goods and services, competitors, partners, government, society, the media and professional organizations. In essence, these regulations can be explained, among others:

Conflict of Interest Handling [G4-41]

Board of Commissioners, Directors and employees must always avoid the condition, situation, or an appearance of conflict of interest and abuse of office by way of: • Complying with regulations, systems, and established procedures. • In carrying out its duties and responsibilities, the Board of Commissioners and Board of Directors and employees of the Bank must continue to prioritize the company’s economic interest above personal economic interests or family, as well as other parties. • Members of the Board of Commissioners and Board of Directors and employees of the Bank are prohibited from abusing their position for personal interest or gain, family and other parties, by way of: -- Not holding shares/ownership in a business entity that is a partner or a competitor company in an amount that may affect decision-making including husband/wife and children. -- Not having a business directly related to the company›s activities, including husband/wife and children. -- No concurrent positions and jobs in other companies and / or in accordance with applicable regulations, which could result in not objective decision-making. -- Not giving or receiving a loan from goods/service providers and consumers. • In terms of discussion and decision-making that contains elements of conflict of interest the parties concerned are not allowed to participate. • Shareholders who have a conflict of interest must exclude their votes at the General Meeting of Shareholders (GMS) in accordance with the decision taken by the shareholders who do not have a conflict of interest.

BTN Terdepan GCG Rumahkoe

PT. Bank Tabungan Negara (Persero) Tbk.

2014 Sustainability Report

Preface

Sustainable Governance

Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment

Performance of Sustainable Social

• Each Board and Bank Employee are prohibited from giving or offering something, either directly or indirectly, to public officials and or individuals who represent business partners, which are intended to influence decision making. Giving and • Each Board and Bank Employee are prohibited from accepting anything of interest, either directly or indirectly, Accepting from a business partner, which can influence decision-making: Gifts/Gratuities • Donation by the Bank or the provision of a company asset to a political party or one or more candidates of legislative or executive body, should only be done in accordance with the laws and regulations, within the limits of decency as determined by the Bank, but donations to charity can be justified • Company organs and bank employees must carry out the laws and regulations, as well as the rules of the Bank. • The Board of Commissioners shall ensure that the Bank’s Board of Directors and employees carry out the laws Regulatory and regulations, as well as the rules of the Bank. Compliance • The company must keep records of assets, debts and capital properly in accordance with generally accepted accounting principles Bank employees shall always make use of Bank data and information to improve corporate values and decisionmaking by way of: • Members of the Board of Commissioners and Board of Directors , shareholders and employees f the Bank must maintain the confidentiality of company information in accordance with the laws and regulations and the Bank’s rules and prevalence in the business world. Therefore, the Bank sought a few things, as follows: -- Using proper data security systems . -- Provide information that is relevant and proportionate to the stakeholders by keeping in mind the interests of the Bank. -- Avoid dissemination of data and information to others who do not have any interest, either during work or Confidentiality after stopping work. and company information -- Submit all data related to the company at the time of stopping work. -- Maintaining confidentiality of information of consumers. • Each member of the Board of Commissioners and Board of Directors, shareholders and employees of the Bank are prohibited from misusing information relating to the Bank, including but not limited to, information of takeover plans, business mergers and stock repurchases. • Any former member of the Board of Commissioners and Board of Directors and employees of the Bank shall not disclose confidential information of the company obtained during office, unless the information is needed for examination and investigation in accordance with laws and regulations, or is no longer a secret held by the Bank. Employees shall be neutral toward all political parties by way of: • Not conducting any form of political activity, both within the Bank and outside the Bank unless executing their political rights as citizens. Political activity • Not using the facilities of the Bank for the benefit of certain groups / political parties. • Not carrying, exhibiting, installing, and distributing symbols, images and ornaments of political parties in the environment of the Company

Disclosure and Dissemination of Code of Conduct to All Employees



Periodically, business ethics are conveyed to all staff members to be implemented in an orderly manner through Memos and/or Letters from the Director or



Code of Conduct is disclosed and/or distributed to

Division responsible for managing business ethics.

all employees via internet by the bank called Access Internal Management Standards (AIMS) with the support of information technology that is easily accessible by all employees at any time.

PT. Bank Tabungan Negara (Persero) Tbk.

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Sustainable Governance

Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment

Performance of Sustainable Social

2014 Sustainability Report

Internal Audit and Risk Management Internal Audit

refinement of risk management, control, and governance processes.

The position of Internal Audit Division (IAD) in the structure the company is as an independent function

This is done through a proactive, enthusiastic and

that is directly responsible to the President Director and

dynamic approach, effective communication, businesses

serves as a strategic business partner for all levels of

and stakeholders oriented, understanding upon the root

management in order to encourage the achievement of

of the problem and other area that has a high risk, the

the goals and objectives of the Company by evaluating

emphasis on the quality of findings, and recommends

based on risk based audit objectively and as consultant

practical and workable solution.

(resource), particularly concerning the improvement and

Organization Chart as follows: Internal Audit

Quality Assurance Division Head

Audit System Development Dept. Head

Reporting Counterparty Documentation Dept. Head

Auditor Coordinator Head

Internal Audit Quality Assurance

General Audit System Development

External Audit Reporting Monitoring & Counterparty

External Audit Reporting Monitoring & Counterparty

ISO Certification QA

ITC Audit System Development

Internal Audit Reporting Monitoring & Documentation

Internal Audit Reporting Monitoring & Documentation

External Audit Reporting Monitoring & Counterparty Internal Audit Reporting Monitoring & Documentation

Internal Audit Charter

[G4-15]

and Directors No. 03/ DEKOMDIR/BTN/IAD/VI/2011 dated June 30th 2011 relating to “Internal Audit



The Company’s Internal Audit Charter determined

Charter PT Bank Tabungan Negara (Persero) Tbk”

based on Joint Decision of Board of Commissioners

BTN Terdepan GCG Rumahkoe

PT. Bank Tabungan Negara (Persero) Tbk.

2014 Sustainability Report



Preface

Sustainable Governance

Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment

Performance of Sustainable Social

This Internal Audit Charter was intended as a



financial and resources security, as well as the

that has to be implemented by the Company as well

consistency and effectiveness on the benefits of the defined activities or programs. •

Audit rating in order to assess the performance

in creating a shared understanding and foundation

of a work unit of the Bank based on the results

of maintaining the level of interest and comitment

of the audit and assessment in finance, accounting, operations and other activities.

IAD’s scope of audit work covers all aspects and



Information and technology systems audit to

elements of the Company’s organizational activities.

ensure the assured integrity of the data (true,

The audit work is carried out through risk-based

complete, safe, on time), the effectiveness

audit approach by considering at least 8 risks

and

referring to Bank Indonesia Regulation, namely:

and operational continuity of information

Credit Risk, Market Risk, Liquidity Risk, Operational

technology systems, as well as compliance

Risk, Legal Risk, Reputation Risk, Strategic Risk and

with the requirements of information systems

Compliance Risk.

technology. Including conducting audits on

The scope of audit work by the IAD also includes the

any implementation of the TSI application to

activities of affiliated business entities that directly

ensure that the applications are in accordance

or indirectly can influence a proper realization of the

with established requirements, compliance

Company’s interest.

with prevailing provisions, adequate controls

The scope of work of the IAD includes audit

and the availability of an audit trail / trace, and

and assessment of the effectiveness of risk

to give recommendations regarding controls

management, adequacy and effectiveness of

that needs to be applied;

internal control systems, the quality of performance



audit

measurement/size of the functions of Internal Audit

from all parties related to the Company.



(operational

management) in order to improve efficiency,

Audit. This Internal Audit Charter was intended also



Audit

standard guideline that includes a miminum

as the aspects related to the execution of Internal



Operational

51



efficiency

of

operating

procedures

Special audit and investigation on the matters

in carrying out the responsibilities outlined, as well

of alleged act or expected indications of fraud/

as the effectiveness of the governance processes by

abuse/manipulation (fraud), embezzlement,

performing:

deviation from the provisions / regulations

Compliance audit towards policies, plans and

internally and externally, and so forth, based

budgets,

on the Instructions of President Director and/

procedures,

regulations,

Company’s

report in finance, accounting and other operational activities; •

or the Board of Commissioners. •

Off-site Monitoring (desk audits) for all activities

Financial audit within the framework of the

in the entire work units of the Bank through the

implementation of accounting and financial

analysis of documents and reports;

statements that are reasonable, reliable, timely,



An assessment of the Bank’s wealth security

complete and useful for the benefit of the Bank,

system including resources and funds, as well

general public and Bank Indonesia, including

as ensuring the existence of the Bank’s assets.

verifying the fairness of the presentation of the Company’s financial statements at the end of the fiscal year;

PT. Bank Tabungan Negara (Persero) Tbk.

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Application of Risk Management

BTN in 2013 is as follows:

[G4-2, G4-45, G4-46, G4-47]



2014 Sustainability Report

Risk profile assessment that includes assessment Inherent Risk and Quality Implementation Risk

The application of Risk Management system at Bank BTN

Management

refers to Bank Indonesia Regulation No. 5/8/PBI/2003 on

activities. The assessment is carried out on 8

the Implementation of Risk Management for Commercial

(Eight) Risks, namely Credit Risk, Market Risk, Risk

Banks as amended by Bank Indonesia Regulation

Liquidity, Operational Risk, Legal Risk, Strategic

(PBI) No. 11/25/PBI/2009 concerning Amendment to

Risk, Compliance Risk and Reputational Risk.

Bank Indonesia Regulation No. 5/8/PBI/2003 on the

KPMR assessment is an assessment of the 4 (four)

Implementation of Risk Management for Commercial

interrelated aspects, namely Risk Governance;

Banks, Circular Letter No. 5/21/DPNP concerning the

Risk Management Framework; Risk Management

Implementation of Risk Management for Commercial

Processes, Adequacy of Human Resources and

Banks as amended by BI Circular Letter No.13/23/DPNP

Adequacy of Management Information Systems;

dated October 25, 2011 concerning Amendment to

and Adequacy of Risk Control System.

(KPMR)

in

Bank’s

operational

5/21/DPNP concerning the Implementation of Risk Management for Commercial Banks, BI Regulation



Bank BTN has conducted its own assessment (self-

No. 13/1/PBI / 2011 dated January 5, 2011 on the

assessment) upon the Soundness Level of the Bank

Assessment of Soundness Level of Commercial Banks,

with Risk approach (Risk Based Bank Ratings/RBBR)

Bank Indonesia Circular Letter No. 13/24/DPNP dated

that covered factors of Risk Profile, Good Corporate

October 25, 2011, concerning Assessment of Soundness

Governance (GCG), profitability (earnings), and

Level of Commercial Banks, and other Bank Indonesia

Capital to produce Composite Rating of Bank BTN’s

Regulations related to risk management. Related to that,

Soundness Level.

the new implementation of Risk Management in Bank

Risk Management Division Head

Credit Risk Management Dept. Head

Market Risk Management Dept. Head Market Risk Policy & Procedure Market Risk Assessment & Measurement

Risk Officer Coordinator

Credit Risk Policy & Procedure

Operatioral Risk Policy & Procedure

Division/ Regional/Branch Risk Officer

Credit Risk Assessment & Measurement

Operatioral Risk Assessment & Measurement

Division/ Regional/Branch Risk Officer Support

Line of Command Line of Communication/ Information

BTN Terdepan GCG Rumahkoe

Operational Risk Management Dept. Head

Operatioral Risk Assessment & Measurement

PT. Bank Tabungan Negara (Persero) Tbk.

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Bank Risks

53

Regular risk monitoring is done by RMD through DRO, RRO, and BRO to ensure that the work unit

Aligned with Bank Indonesia regulations the risks faced

does credit activities consistently applying the

by Bank BTN are credit risk, market risk, liquidity risk,

provisions of the Standard Operational Procedure

operational risk, legal risk, reputational risk, strategic risk,

(SOP) in accordance with the restrictions set by the

and compliance risk. The explanation of these risks is as

Bank.

follows: Other strategic steps in the implementation of the



Credit Risk

Bank’s credit risk management are to spread

Credit risk is a part of overall risk management,

credit risk and control credit concentration by

which refers to Bank Indonesia regulation No.

increasing the loan portfolio and financing outside

11/25/PBI 2009 dated July 1st, 2009 concerning the

the housing sector (non-housing related).

Amendment of Bank Indonesia Regulation No. 5/8/ PBI/2003 concerning the Implementation of Risk



Liquidity Risk

Management for Commercial Bank, that stated that

Liquidity risk is the risk due to the inability of the

Credit Risk is the risk that occurs as a result of the

Bank to meet its maturing obligations from cash

failure of the debtor and/or other parties to meet

flow funding sources and/or from high quality liquid

obligations to the Bank.

assets that can be pledged, without disrupting the activities and financial condition of the Bank.

The Bank has reviewed the Risk ManagementPolicy

The inability to obtain cash flow funding sources

Guidelines that also set policies in the field of credit

resulted in Liquidity Risk, that is caused among

risk, among others setting credit risk calculation

others by:

using the standardized approach in accordance with



Standardized Approach.

to

generate

cash

flows

from

assets including liquid assets; and/or

18, 2011 regarding Guidelines for Calculation of Risk-Weighted Assets for Credit Risk Using the

Inability

productive assets and derived from the sale of

BI Circular Letter No.13/6/ DPNP dated February •

Inability to generate cash flows derived from the collection of funds, inter-bank transactions, and borrowed funds.

The Bank regularly reviews and updates Risk Management Policy Guidelines and Credit and

In general, main purpose of Liquidity Risk

Financing Policy Guidelines for Bank loans and

Management is to minimize the Bank’s inability to

financing as risk assessment processing.

general cash flow funding. Hence, Bank can meet all of its financial obligation timely as promised as

Credit risk exposures are monitored since the

well as to maintain adequate and optimum level

loan granting process until the loan matures. Risk

of liquidity. Liquidity Risk Management basically

monitoring is to ensure compliance with credit

comprises Active Supervision from the Board of

requirements, collateral adequacy and handling of

Comissioners ad Directors; Policies, Procedures, and

non-performing loans.

Determination of Limit; Risk Management Processes and Risk Management Information System, and Internal Control System.

PT. Bank Tabungan Negara (Persero) Tbk.

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2014 Sustainability Report

Active Supervision from the Board of Commissioners

of specific stress scenarios on the Bank as well as

basically covers Authorities and Responsibilities

general market stress scenario).

of the Board of Commissioners and Directors; Human Resources, and Management Organiztion.



Market Risk

While Policies, Procedures, and Determination of

Market risk is the risk on the balance sheet and

Limit in general covers Strategies of Risk Liquidity

off-balance sheet positions, including derivative

Management; Level of Risk that will be taken

transactions, due to overall changes in market

(Risk Appetite), and Risk Tolerance; Policies and

conditions, including the risk of changes in the

Procedures, and Limit.

option price.

Risk Management Processes for Liquidity Risk

In measuring market risk, the Bank uses Standard

comprises process of Liquidity Risk identification,

Method calculations linked to calculatethe Capital

Liquidity

Adequacy Ratio (CAR) for Market Risk. While the

Risk

measurement,

Liquidity

Risk

monitoring with consideration of early warning

exchange rate risk arising from

fluctuations in

indicator to acknowledge potential increased

exchange rates is maintained by keeping the Net

of Bank Liquidity Risk, Liquidity Risk Monitoring

Open Position in accordance with Bank Indonesia

through funding strategies, daily liquidity position

regulations. External shocks are also accommodated

and Liquidity Risk management, management

with stress testing done to see the extent to which

of high-quality liquid assets, and emergency

the Bank can survive with some scenarios of

funding plan, as well as Liquidity Risk Management

changes in external conditions, particularly changes

Information System to support the implementation

in market interest rates.

of the process of identification, measurement, monitoring, and control, and reporting of liquidity

Included with market risk is the risk of price changes

risk under normal or crisis condition in accurate,

of financial instruments due to changes in market

updated, complete, and sustainable manner.

factors, such as changes in interest rates and exchange rate changes.

Internal Control Systems include the application of internal control systems and independent as



Operational Risk

well as adequate review of the application of Risk

Operational risk is the risk due to insufficiency and/

Management for liquidity risk carried out by the

or failed internal processes, human error, system

Internal Audit Division and Risk Management

failure, and/or the presence of external events

Division.

affecting the operations of the Bank. the

Operational risks that arise must be immediately

measurement of liquidity risk include liquidity ratio,

anticipated. Backup capital carried out by the Bank

maturity profile, cash flow projections, and Stress

that is calculated based on minimum capital needs

testing (testing of the Bank’s ability to meet the

(CAR) is one of the anticipation steps to prevent the

needs of liquidity in a crisis situation with the use

exposure of Operational Risk disrupting the capital.

Measurement

tools

which

BTN Terdepan GCG Rumahkoe

is

used

in

PT. Bank Tabungan Negara (Persero) Tbk.

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55

Risk Management Division ensures that the Bank In order to calculate the minimum capital

has adequate policies and procedures that must be

requirement for Operational Risk , the Bank has

adhered to and implemented by each operational

adopted the Basic Indicator Approach method, in

unit in carrying out transactions and activities with

accordance with the provisions stipulated in Bank

accuracy, efficient and timely.

Indonesia Circular Letter No. 11/3/DPNP dated January 27, 2009 regarding the Calculation of



Legal Risk

Risk Weighted Assets (RWA) for Operational Risk

Legal risk is the risk resulting from the demands

Calculated with the Basic Indicator Approach (PID).

and/or weaknesses of juridical aspects where Legal Risk can be sourced from the juridical aspects

In monitoring Operational Risk, Internal Audit

weakness caused by weak engagement undertaken

function conducted assessments upon internal

by the Bank. The Banks implements Legal Risk

controls on each functional activity, new products

identification based on risk factors which include

or services and Risk Management Division to ensure

lawsuits and juridical aspects weakness.

process of identification, measurement, monitoring and controlling of risks are done effectively on each

Legal Risk measurement is carried out by Risk

functional activity, new product or service.

Management Division jointly with Legal Division (LGD) based on evaluation reports on analysis of

In order to conduct risk identification process, the

law cases individually against contingent liabilities

Bank is currently developing a BTN-Loss Event

arising from the lawsuits.

Database (BTN-LED) application. This BTN - LED application is designed to connect with the Regional

Legal Risk Monitoring carried out by the Risk

Offices and Branch Offices. Thus the Regional

Management

Offices and Branch Offices can periodically transmit

effectiveness of the implementation of policies,

lost event data to each office through the web

procedures and compliance with policies, legal

based online system. The collected data will then be

regulations and Bank’s provisions limit. Monitoring

processed and analyzed. From the processing and

conducted periodically on all Legal Risk positions.

Division

by

evaluating

the

analysis results are expected to be identified the risk exposure map of each Branch Office. Based on the

In implementing legal risk control, LGD provide legal

risk exposure maps obtained, mitigation measures

input and recommendations to each division and

will be taken against the identified risk

work units as well as conduct periodic reviews of

exposure.

the agreements and contracts with counterparties.

Operational Risk mitigation is conducted by



Reputation Risk

all Bank units. Compliance with policies and

Reputation risk is the risk due to declining

procedures is one form of Operational Risk

levels of stakeholders trust that is sourced from

mitigation implemented by all Bank work units.

negative perceptions of the Bank. Reputation

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Risk identification is done on the risk factors



2014 Sustainability Report

Strategic risk

inherent in the functional activities that include

Strategic risk is the Bank’s risk due to inaccuracies

transparency (disclosure requirement), customer

in the decision and/or implementation of a

complaints against Bank service, the behavior of

strategic decision and the failure to anticipate

Bank employees in serving customers, and the

changes in the business environment. Strategic Risk

communication systems of the Bank.

identification performed based on the Strategic Risk factors in certain functional activities, such as

Reputation Risk measurement is done based on the

lending activities, treasury and investment, as well

assessment of Reputation Risk factors. Reputation

as the operations and services through a business

risk of the Bank is managed by Corporate Secretary

plan prepared by the Strategy & Performance

Division (CSD) and Customer Care Division (CCD)

Management Division (SPMD) as the elaboration of

and reported to Bank Indonesia by Customer Care

Public Policy Directors (KUD) .

Division (CCD). Strategic Risk measurement and its measurement In order to monitor Reputational Risk, the Customer

parameters are based on the Bank’s performance

Complaint System (SPN) application has been

by comparing actual results with the set targets.

developed to support customer complaint service

Monitoring done by the Strategic Risk Strategy

and handling which allows online complaint

and Performance Management Division (SPMD)

handling process between the parties related with

periodically to monitor the achievement of

problems at Branch Offices and Head Office. This is

Key Performance Indicator (KPI) and the Risk

useful to ensure sustained customer satisfaction.

Management Division (RMD) which monitors the risk exposure compared with the Bank’s risk

In controlling Reputational Risk, Corporate Secretary

appetite. Furthermore, the Board of Commissioners,

Division is responsible for the implementation of

Directors and Division review the basic strategies

policies related to the handling and settlement

that focus on changes include the Bank’s

of negative news or to avoid counter- productive

organizational structure, commercial lending, trade

information and perform the function of Public

finance, treasury, operations and strengths and

Service Obligation (PSO) in order to implement

weaknesses of the information technology system.

Corporate Social Responsibility (CSR). Corporate Social Responsibility is not just focused on charity

Afterward, the Risk Management Division, business

activities, but also in the form of a continuous

work units, Internal Audit Division, Bank’s branch

program. This is manifested in the form of providing

offices monitor Strategic Risk by comparing the

subsidies loan and the implementation of the

results to be achieved (expected results) with the

Partnership and Community Development Program

actual results, evaluating work unit’s functional

(PKBL).

performance, and ensuring targets achievement (target objective).

BTN Terdepan GCG Rumahkoe

PT. Bank Tabungan Negara (Persero) Tbk.

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activities include reviewing all penalties, litigations, In controlling Strategic Risk, Strategy & Performance

and customer complaints ever received by the Bank.

Management Division (SPMD) serves to analyze the gap between actual and business targets and deliver the steps that must be made to the Board of Directors on a regular basis.



Compliance Risk Compliance risk is the risk due to the failure of

In monitoring Compliance Risk, Risk Management

the Bank in complying with and/or implementing

Division and Compliance Divisionhas the duty to

the laws and regulations in force. In identifying

evaluate the effectiveness of the implementation

Compliance Risk,

Compliance Division (CMPD)

of Compliance Risk management regularly by

thru BCSO conduct a study related to Compliance

monitoring all types of activities that can potentially

Risk exposure with the inherent external provisions

cause Compliance Risk.

in the internal regulations. In addition, the Compliance Division analyze the events that caused the emergence of Compliance Risk and inform them

Risk Management Efforts

to Risk Management Division and Risk Management Comittee to be reviewed.

PT Bank Tabungan Negara (Persero) Tbk as a Bank with primary focus on granting housing loans or housing

In order to minimize the impact of Compliance Risk,

finance, has a portfolio of assets dominated by Housing

Legal Division (LGD) has provided a special portal

Loans (KPR) which is influenced by changes in the

called Internal Access Management Standards

external business climate such as inflation and BI Rate

(AIMS) to facilitate the entire work units to access to

level.

the internal regulations of the Bank.In addition, the Compliance Division conductmonitoring of events

The efforts to minimize the negative impact of risk

that led to the emergence of Compliance Risk and

management are carried out by day to day risk

inform the matter to the Risk Management Division.

management activities, in accordance with Good Corporate Governance (GCG) principles to ensure that

Compliance Risk measurement is performed to

all processes and mechanisms involved in achieving the

measure potential losses caused by noncompliance

objectives of the company have prevented the company

and inability of the Bank to comply with applicable

from irregularities and risks that can lead to failure in

external regulations. Compliance Risk magnitude

achieving corporate goals, as well as based on prudential

is estimated based on the Bank ‘s ability to meet all

principles to ensure healthy and sustainable Bank

regulations at the time of the past and future. These

performance growth.

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As a follow up of the implementation of Pillar 1 of Basel

Risk Stress testing has been done once a year, market

II, the Bank has implemented credit risk measurement

risk stress testing twice a year and stress testing done on

using the Standardized Approach in accordance with BI

Liquidity Risk on the risk profile report.

2014 Sustainability Report

Circular Letter No. 13/6/DPNP dated February 18, 2011 regarding Guidelines for Calculation of Risk Weighted

The Bank also has conducted a review of the Risk

Assets (RWA) for Credit Risk Using the Standardized

Management Policy Manual (PKMR) in order to improve

Approach. Apart from that, the Bank has also made

the function of Risk control system at least 1 (one) time a

calculation of minimum capital requirements using

year. Henceforth, relating to the plan for implementation

the Basic Indicator Approach for Operational Risk

of Basel III the Bank has made the preparations for

in accordance with BI Circular Letter No. 11/3/DPNP

implementation of Basel III framework and engage in

dated January 27, 2009 concerning the Calculation of

working group under the coordination of Bank Indonesia.

Risk Weighted Assets (RWA) for Operational Risk. The use of the Standardized Model for Market Risk is in accordance with BI Circular Letter No. 9/33/DPNP dated

Improvement and Refinement of Risk Management

December 18, 2007 concerning Guidelines for Use of the Standardized Method in the Calculation of Minimum

The increment of risk awareness based on GCG

Capital Requirements for Commercial Banks by taking

principles within the company is carried out through

into account Market Risk

risk management certification education for all officials of the Bank and improvement of technical competency

In order to complete the risk measurement, especially

for Analysts, Officer Development Program, Supporting

credit risk and liquidity risk, the Bank conducts a periodic

Staff,Business Process Staff, General Banking Staff

stress testing to assess capital adequacy in terms

through the delivery of risk management modules. In

of the occurrence of events that are extreme risk or

addition, Risk Management Division has socialized the

catastrophy. Currently, the stress tests conducted by the

latest revision of the Risk Management Policy Manual to

bank focused on 3 (three) types of risk; credit risk, market

all work units.

risk (including interest rate risk) and liquidity risk. Credit

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Whistleblowing System Whistleblowing System (WBS) is part of the internal

The complaint/disclosure report at least contains several

control system in preventing the occurrence of irregular

aspects, as follows:

practices and aims to:



• •

What: Describe in as much detail as possible:

Conduct early detection and prevention of the

What happened and roughly violated which

occurrence of irregularities or violations;

provisions?

Gradually creating a working environment that is

What do you see or know and roughly violated

open, sincere, honest and responsible at Bank BTN.

which provisions? •

Who: Describe in as much detail as possible: Who are involved in the alleged violation

Submission of Violation Report

event? Besides you, who are also aware of this

[G4-58]

alleged violation incident? The mechanism built by Bank BTN in implementing the



When: Describe in as much detail as possible:

WBS is the complainant to make a complaint/disclosure

When did you know the occurrence the alleged

and send it:

violation event?



If the alleged offender is an employee of Bank

Explain why you are new to report right now (if there

BTN, the alleged violation report is directed to the

is a long time gap of more than 1 month)

SPP/WBS team. The report may be made orally



Where: Describe in as much detail as possible:

or through other modes felt comfortable by the

Where the alleged violation was committed?

Reporting Person.

Is there a series of events related to this incident that you know?



If the alleged offender is a member of the SPP/WBS



How: Describe in as much detail as possible:

team, the alleged violation report is sent directly to

How was the process of occurrence of the alleged

the President Director of Bank BTN in Head Office

violation incident?

marked “CONFIDENTIAL” or “CLASSIFIED” in the

How do you think the perpetrators of the alleged

cover letter.

violation did the mode/means of the violation (whether by markups, commissions, kickbacks,



If the alleged offender is a member of the Board

extortion, or other modes)

of Directors or his/her family, the alleged violation report is sent directly the SPP/WBS Team which will the Board of Commissioners.

Informant Protection (Whistleblower)

If the alleged offender is a member of the Board

Bank BTN provides the following protections to the

of Commissioners or his/her family, the alleged

informant with good intention:

violation report is sent directly to the SP/WBS Team



forward it to the President Director for reporting to



which will forward it to the President Director.

Provision of reporting communication channel (oral, telephone, email) that is free and confidential or provision of an independent and confidential

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Ombudsman. Through this communication channel

declared open. If not, the existing records and files will

the Reporting Person will get follow-up information

remain confidential and should not be opened.

2014 Sustainability Report

on the handling of the alleged violations report submitted; •

Assurance of Reporting Person’s anonymity, unless

Complaint Handling

there is a legal requirement that requires the identity opened in the presence of the judge; •



WBS Team receives complaints/ disclosures, record

Protection from retaliation of the Party or the

them in a standard format that results in:

organization reported. This protection may include:







herself or his/her family; •

Disclosure Report.

Protection of his/her property and his family against terror or retaliation experienced;



Contact acceptance reports by scope category of complaints/disclosures.

Physical protection either against himself/



categories reported).

promotion delays, dismissal, exclusion in the workplace, not viable mutations, including job security, and so forth.

WBS Team submits a disclosure report to the Board of Commissioners/Directors (in accordance with the

Administrative protection in the form of •

WBS Team conducts an initial review/ clarification of the complaints/disclosures and makes its resume, then report it to the Board of Commissioners/

WBS Management [G4-SO3]

Directors (in accordance with the categories reported). Based on the results of the report, the Board Of Commissioners/Directors decided

Bank BTN’s WBS is managed by the WBS Team, as follows:

followup, as follows:





Head of Internal Audit Division (Chairperson & Member)



Head of the Legal Division (Secretary)



Head of Corporate Secretary Division (Member)



Head of Human Capital Division (Member)

Discontinued, if it does not meet the requirements of the initial indication.



Working closely with the Internal Auditor in accordance with the substance of complaints/ disclosures.



In collaboration with external investigators

All task execution processes in the Violation Reporting

if the substance of complaints/disclosures is

System (Whistleblowing System) is confidential so that

related to the image/ reputation of Bank BTN

all Team members shall maintain the confidentiality

and/or cause great harm and/or have not been

of the process, until indeed it should or can be legally

acted upon by the Internal Auditor.

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Investigation Team conducts an investigation and



reports the results to the Board of Commissioners/

61

The process of initial evaluation/clarification and investigation is recorded in the Minutes.

Directors. Based on the report, the Board of Commissioners/Directors decided: •

The disclosure report is closed, if it is not proven.



Provide appropriate sanctions in accordance with applicable provisions, if proven and





WBS Team reports the results of the investigation to the Board of Commissioners/Directors.



Based

on

the

decision

of

the

Board

of

relevant by administrative measures.

Commissioners and the Board of Directors and

Forward the criminal offense to investigators

by certain considerations, the Bank may award

for further proceedings, if proven and linked

the complainant. The shape and type of award is

to general criminal acts or corruption. In this

determined by the Board of Commissioners and

case, the WBS team coordinates with Legal and

Board of Directors.

Loan Document Desk in order to ensure that there is sufficient evidence and if the evidence is sufficient to recommend to the Board of Directors for approval.

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Performance of Sustainable Environment

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BTN Cares

Environmental sustainability is a global issue that requires

In this case, the environmental aspect could be the

commitment and shared responsibility. Not only for

center of attention.

each individual, concern for the environment is also the responsibility of every institution, corporate/company,

In addition to environmental aspects, other aspects of

even nation. Without that commitment, environment

loan distribution are legal aspect, marketing aspect,

will experience more damage and unhealthy for human

financial aspect, technical aspect, management aspects

life.

and principles of credit, namely ability (capacity), willingness (character), and guarantees (collateral).

Bank BTN (Persero) Tbk as members of the world’s society is committed to preserve environment by carrying

As an illustration of the Company’s efforts to minimize

out a number of policies. Because the Company is

environmental damage, Bank BTN will not disburse

engaged in funding/lending, then steps can be taken

loans if the customer whose business requires the

are incorporating environmental aspects in checking

Environmental Impact Analysis (EIA/Amdal), but does

the credit risk. The policies are more important because

not attach the results of the EIA. Company’s firmness also

the Company has credit and financing services in the

can be seen in cases of customers whose business has a

economic sector, among others in housing and mining.

high risk in term of environmental aspects. For example,

BTN Terdepan GCG Rumahkoe

PT. Bank Tabungan Negara (Persero) Tbk.

2014 Sustainability Report

Preface

Sustainable Governance

Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment

Performance of Sustainable Social

the area under cultivation or built is near protected forest

must be proper, not red, and especially black. Therefore,

areas or cultural heritage.

in addition to EIA, checking the waste management installation is also conducted during a visit tolocation.

For the sake of cautiousness and to avoid credit risk,

In this case, the better reputation that the customer

the Company still conducts field inspection to validate

has, the opportunities for lending will be more open.

customers who already includes results of EIA. Bank BTN’s

If the customer has a good reputation in term of the

concern toward the preservation of the environment

environment, the Company will also earn a better the

continue to be improved in line with the policy outlined

reputation.

by the Bank Indonesia and the Financial Services Authority (FSA). Explicitly, the two institutions are urging banks to pay attention to EIA issues before pouring loans to customers, both personal and corporate. [G4-EN27] Related to the environment, the Company alsoconsiders the importance of requirement, i.e. customers also

PT. Bank Tabungan Negara (Persero) Tbk.

BTN Terdepan GCG Rumahkoe

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Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment

Performance of Sustainable Social

2014 Sustainability Report

Initiatives to Care More Bank BTN’s concern to aspects of environmental sustainability when related to credit/financing also

General and Administrative Expense (in billion) 2014

2013

2012

Repair and Maintainance

483,956

419,009

304,381

Promotion

508,539

410,682

274,966

Rental Depreciation (Noted 11) Electrity, Water, and Communication Office Expense Transportation Professional services Others Total

337,687

287,692

236,380

225,741

279,446

266,621

231,737

157,999

169,555

shown in daily operational activities in the office. In this matter, the basic principles held are to reduce or rescue, reuse, and recycle. [G4-EN2] This concern for the environment, among others,realized by the issuance of policies by management to make savings,reuse,

and

recycling.

However,

in

2014

Sustainability Report, the Company cannotpresent detailed data yet, including using the appropriate unit. The Company established that year of 2015 is the initial stage for the initiatives of various aspects related to the environmental performance. By doing so, it is expected that the next report can deliver environmental

124,495 112,212 98,634 95,713 70,065 51,197 17,680 15,153 23,907 97,282 31,804 37,116 2,122,830 1,784,062 1,462,757

performance, completed with the appropriate unit. For example, electricity in kilowatt-hour (KWH), or water in

In practice, for energy savings, the Company stressed the

cubic meters. [G4-EN3, G4-EN4, G4-EN8]

importance of saving. For example, replacing bulbs with energy-saving type that is more efficient. Bank BTN also

In 2014, for instance, the Company still calculated various

follow 2014 Earth Hour by turning off the lights at 20.30-

components that should besaved or reduced, also

21:30 pm on March 29, 2014.

recycled, into General and Administrative Expenses post. Electricity, water and communication, for example, in

Other effort taken to reduce energy use is to reduce

2014 were Rp231.737 billion, up 47% from the previous

the intensity of the face-to-face meeting and have

year, at Rp157.999 billion. Meanwhile, office expenses,

more meetings by using technology, for example

including paper, amounted Rp124.495 billion, up 11%

through teleconferencing. This alternative reduces the

from Rp112.212 billion in 2013. Therefore between one

use of fuelfor the transportation of participants of the

component with the other is still mixed, hence analysis

meeting. Therefore, they can participate in a meeting in

of the components that go up or depreciate are not yet

their working place, without the need to go elsewhere.

possible to do. [G4-EN6, G4-EN7]

Besides energy efficient, meeting by teleconference can also reduce the exhaust emissions of motor vehicles.

BTN Terdepan GCG Rumahkoe

PT. Bank Tabungan Negara (Persero) Tbk.

2014 Sustainability Report

Preface

Sustainable Governance

Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment

Performance of Sustainable Social

Emission reductions are also conducted by the Company

Another step taken to show the Company’s awareness

with routine emissions testing for operational vehicles

for the environment is to reduce the use of paper by

and select the use of high-octane fuel because it is

implementing

more environmentally friendly. Emissions test are also

various documents and company regulations are stored

conducted regularly on the Company’s generator.

in an online server and intranet. The use of greeting cards

Another policy is to rejuvenate the vehicle to make it

has been replaced with electronic greeting. In fact, the

more environmentally friendly. Prompts for employees

printing of the Annual Report and Sustainability Report

to take public transportation or ride a bike to work also

continues to be reduced and replaced with e-book. If

continue to be encouraged.

forced to use paper, then the Company sought to use

paperless

administration. Therefore,

back and forth, or if possible to use used-paper. As for reducing the greenhouse gas effect, the Company has replaced synthetic refrigerant Freon R-22 with a

In terms of banking services, paper saving can be

more environmentally friendly refrigerant for coolant

done through various policies. For example, publishes

engine/temperature control room. While to reduce

an electronic newspaper accounts, banking services

global warming, Bank BTN also intensified tree planting,

via short message service, phone banking, etc. If

afforestation or construction of city parks. More details

withdrawals, transfers, payment transactions and other

about these activities can be read in the report on

transactions could be done with electronic devices, then

Responsibility Corporate Social (CSR) in the field of

the customer does not need to come to the automated

Nature Conservation. [G4-EN15, G4-EN16, G4-EN17, G4-

teller machine (ATM). As a result, the use of ATM paper

EN18, G4-EN19, G4-EN20, G4-EN21]

also could be saved.

Recycling is done on various equipment that is no longer

Besides encouraging all the people of BTN to maintain

used, such as paper or stationery. The old computers

and preserve the environment by various internal

that are replaced with the newest version are donated

policies, the Company also continues to educate

to a number of institutions or social foundations. Or,

customers regarding the importance of environmental

if employees are interested, they can buy them by

sustainability. It is important because Bank BTN believes

participating in auctions.

that environmental sustainability will be more retained if there is a shared commitment to do that.

For toxic waste obtained from the Company’s daily operational activities, namely the used oil from generators, the Company handed it over to a third party who has a permit from the Ministry of Environment.

PT. Bank Tabungan Negara (Persero) Tbk.

BTN Terdepan GCG Rumahkoe

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Company Profile and Sustainability Report

Performance of Sustainable Environment Kinerja Ekonomi Berkelanjutan

Performance of Sustainable Social

BTN Terdepan GCG Rumahkoe

2014 Sustainability Report

PT. Bank Tabungan Negara (Persero) Tbk.

2014 Sustainability Report

Preface

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Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment Kinerja Ekonomi Berkelanjutan

Performance of Sustainable Social

69

Performance of Sustainable Economy

PT. Bank Tabungan Negara (Persero) Tbk.

BTN Terdepan GCG Rumahkoe

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Company Profile and Sustainability Report

Performance of Sustainable Environment Kinerja Ekonomi Berkelanjutan

Performance of Sustainable Social

Economic Direct Impact Business Pillars of Bank BTN

2014 Sustainability Report

[G4-EC1]

2010 on Housing Procurement through Credit/Financing of Welfare Home Ownership (Kepemilikan Rumah

The fulfillment of the housing needs for Indonesian citizen

Sejahtera) with Finance Liquidity Fund Aid Facility, as

is a shared responsibility. Government, developers, and

well as the MoU between Company with Ministry of

banks need to unify vision in realizing this need.

Public Housing No. 10/DP/PKS/2012 and No. 24 /MOU/

Backlog (unmet demand) housing Indonesia does offer

DIR/2012 dated October 18, 2012 regarding Housing

its own challenges. Until now the backlog is estimated

Finance Liquidity Fund Distribution Facility (FLPP) in

that more than 15 million housing units still needs to

the context of Housing Procurement through Credit/

be fulfilled by government. As a result, it requires the

Financing of Welfare Home Ownership (Kepemilikan

participation of many parties to overcome the housing

Rumah Sejahtera), Bank BTN has been appointed as

problem in Indonesia.

one of the channeling banks of KPR Sejahtera with FLPP support.

Bank BTN continues to provide full support toward any efforts taken to meet the housing needs of Indonesian

Thus, the agency that provides this kind of financing is

citizen. The Company also continues to perform

not only limited to Bank BTN, but also other Government-

transformation in order to provide maximum service

Owned Banks, Private Banks and Regional Development

to society. One of them was by establishing Housing

Banks, so that the nature of business is free competition.

Financial Center to provide information for public

Bank BTN’s Nature of Business is more focused on

regarding housing conditions (price, good location, and

the provision of housing loans that is not limited to

so on) based on the results of research.

subsidized loans with consistent adherence to prudential banking practices supported by increased collection of

Bank BTN also re-launched BTN Housing Saving product.

retail funds.

As the “Home for Financial Solution in Life “, Bank BTN want to give a commitment as a pioneer in housing

On the basis of such nature of business, Bank BTN divides

saving in Indonesia with the launching of BTN Housing

its products and services into three major parts, namely:

Saving Cumulatively, BTN has provided mortgages to

Consumer Banking, Commercial Banking and Sharia

more than 3.5 million people across Indonesia. This is an

Banking.

inevitable evidence of Bank BTN’s commitment to realize the dream of all Indonesian citizens to acquire their

The Company has separated mortgages with consumer

dream house.

lending and retail funding in director level, in order to further strengthen mortgage business as the core

Bank BTN has been designated by the Government as

business of Bank BTN. The segregation of mortgages

Housing Finance Institution to help middle to lower

with consumer lending is also performed at the division

communities in channeling Subsidized Mortgages

level through the formation of subsidized mortgages,

based on Minister of Finance Letter Number B-49/MK/

which is separated from non-subsidized mortgages. To

IV/1/1974 dated January 29, 1974 regarding mortgages.

support the promotion of MSME portfolio at the division

This is continued in the implementation of distribution

level, small and micro lending is established separately

of subsidized Mortgages programs, particularly Interest

from commercial lending.

Difference Subsidized Mortgages and Down Payment Subsidy.

Each field/part operates their respective business through lending, funding, and services associated with its scope.

Starting in 2010, in accordance with Minister of Public

However, Bank BTN’s core business is in housing finance.

Housing Regulation No. 14, 2010 dated September 3,

This is evident from the Bank’s loan portfolio in 2014 that

BTN Terdepan GCG Rumahkoe

PT. Bank Tabungan Negara (Persero) Tbk.

2014 Sustainability Report

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Performance of Sustainable Environment Kinerja Ekonomi Berkelanjutan

Performance of Sustainable Social

71

was 88.6 % in housing finance sector. In fact, by the end

intense competition in mortgage industry in Indonesia.

of 2014, Bank BTN remained the largest distributor Bank

While in the subsidized loan segment for low-income

of housing loans in Indonesia. The market share of Bank

community, the Company has a dominant market

BTN as market leader of housing finance (mortgages)

share by 95% based on the amount of loans disbursed

in Indonesia reached 24%. This shows the success of

throughout 2014, which amounted to Rp7.96 trillion.

Bank BTN in increasing its market share in the middle of As of December 31, 2014, the Company was successful in keeping its position among the 10th Biggest bank in Indonesia in terms of total assets and loans. Total assets of the Company amounted to Rp144.58 trillion in 2014, or an increase by 10.38% from Rp131.17 trillion in 2013. While the total loans disbursed by the Company in 2014 amounted to Rp116.30 trillion, up 15.8% compared to the preceding year.

Bank BTN Loans Position Type of Lons

Housing Loans

31 Dec 10 31 Dec 11 Rp Billion Rp Billion 46,710 55,805

31 Dec 12 31 Dec 13 31 Dec 14 ∆ yoy (%) Rp Billion Rp Billion Rp Billion 70,223 87,005 102,614 17.94

• Subsidized Mortgage

21,945

25,804

25,562

28,429

34,347

20.82

• Non-Subsidized Mortgage

15,635

18,611

29,129

39,548

45,601

15.31

• Other Housing Loans

3,611

4,199

6,070

7,198

8,179

13.63

• Construction Loans

5,519

7,191

9,462

11,829

14,486

22.47

Non-Housing Loans

4,840

7,759

11,187

13,463

13,302

(1.19)

• Consumer Loans

1,398

1,463

1,923

2,597

2,916

12.30

• Commercial Loans

3,442

6,296

9,264

10,865

10,386

(4.41)

51,550

63,564

81,411

100,467

115,916

15.38

Total Loans *) including sharia financing

Bank BTN Loan Disbursement Type of Lons Housing Loans • Subsidized Mortgage • Non-Subsidized Mortgage • Other Housing Loans • Construction Loans

Non-Housing Loans • Consumer Loans • Commercial Loans

Total Loans

2010 16,954 4,727 5,324 1,680 5,223 4,117

2011 18,789 5,896 5,340 1,540 6,013 6,384

Year 2012 28,041 4,213 12,479 2,659 8,690 9,679

743 3,374 21,071

900 5,484 25,173

1,809 7,870 37,720

(Rp Billion)

2013 33,955 6,506 14,286 2,500 10,663 10,338

2014 34,029 7,960 12,629 2,416 11,023 7,523

2,389 7,949 44,293

2,564 4,959 41,552

*) including sharia financing

Subsidized Mortgages

Low Income People (MBR), Bank BTN has been appointed by the Government of the Republic of Indonesia since

In order to support the success of Government program

1974 as one of the institutions to channel Housing Loans

implementation with regards to provision of housing

(Mortgages). Distribution of the first Mortgages was

facilities for Indonesian communities, in particular for

made in 1976. [G4-EC8]

PT. Bank Tabungan Negara (Persero) Tbk.

BTN Terdepan GCG Rumahkoe

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2014 Sustainability Report

Subsidy schemes provided by the Government, in this

trillion or as many as 7,292 housing units through Sharia

case the Ministry of Public Housing, have been amended

Business Unit. When compared with the distribution of

several times since first introduced in 1976 up to now.

Subsidized Mortgages in 2013, the figure experienced an increase by 22.03%. For that reason, Bank BTN still leads

Before October 2010, the Government had two

the market of Subsidized Mortgage with market share of

subsidized mortgages programs, namely Down Payment

95%.

Subsidy (SUM) and Interest Difference Subsidy (SSB) and SSB-IOBP. Since October 1, 2010, the Government has introduced a new scheme for Subsidized Mortgages,

Development of Subsidized Mortgage Disbursement (Rp billion)

namely Housing Finance Liquidity Facility (FLPP).

7,345

Subsidized Mortgages in FLPP program is managed by the Housing Finance Center Public Service Board (BLU -

6,019

PPP). Since 2010, Government has changed the financing scheme of Subsidized Mortgages into Housing Finance Liquidity Facility (FLPP) in which the finance resources comes from government and banks. At present, the

3,989

number of banks collaborating in Subsidized Mortgages distribution is 25 banks. Subsidized Mortgages interest rate is decided by the government, by considering the macroeconomic condition and banking interest rate.

12

Mortgages for the lower middle-income communities. On the other hand, distribution of loans is carried out

13

20

The Company is always committed to provide Subsidized

14

20

20

Development of Subsidized Mortgage Position (Rp billion)

in accordance with prudential principles taking into

32,668

account the risk profile return, and to remain competitive 27,256

with the banking industry, because all existing national banks can provide the same Subsidized Mortgages.

24,799

Although at present many Banks have participated in the financing of housing subsidy through this FLPP scheme, but as a bank which since 1976 has been committed to assist the government with this program, Bank BTN still leads the market with a dominant market share. This is evidenced by the Company’s achievement in the Subsidized Mortgages sector. Throughout 2014, Bank BTN managed to channel Subsidized Mortgages amounting to Rp7.34 trillion, or as many as 85,315 housing units through Conventional Banks and Rp615.79

BTN Terdepan GCG Rumahkoe

12

20

13

20

14

20

*) Data combined conventional and sharia

PT. Bank Tabungan Negara (Persero) Tbk.

2014 Sustainability Report

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Performance of Sustainable Environment Kinerja Ekonomi Berkelanjutan

Performance of Sustainable Social

Non-Subsidized Mortgages

form of our support in facilitating customer needs to own an apartment. KPA BTN is an apartment loan

Bank BTN has developed a mortgages portfolio for the

for the purpose of purchasing an apartment, either

upper middle segment of customers through non-

new or used apartment, un-finished apartment

subsidized

(indent) or loan take-over from another bank.

Mortgages.

Non-subsidized

Mortgages

services consist of various products, housing mortgage

The advantages of KPA BTN are its competitive

(KPR)&apartment mortage (KPA), as well as shophouse

interest rate, quick and easy process, very flexible

mortgage (Kredit Ruko) as follows:

term, life insurance, fire insurance, earthquake insurance, and has a large network with developers

1. KPR BTN Platinum As the housing finance leading bank, the Company

in major cities nation wide, also accompanied by very attractive promotional programs.

presents KPR BTN Platinum as a solution for the Indonesian family to have a dream home. KPR BTN

The maximum financing of KPA BTN is up to

Platinum is a housing loan from the Company for

80% from the lowest value of selling price after

the purpose of home purchase from a developer

discounted with fair market value based on Bank

or non-developer, for the purchase of new or used

appraisal for the building with land area of more

house, or unfinished house purchase (indent) and

than 70m2 or 70% for the building with land area

loan take-over from another bank.

of less than 70m2. Prevailing interest rate is floating rate with a maximum term of 15 years. Throughout

The advantages of KPR BTN Platinum are its

2014, The Company channeled 1,047 KPA BTN units

competitive interest rate, quick and easy process,

(2013:2,066 units) with a total value of Rp 295.86

very flexible term, life insurance, fire insurance, and

billion.

earthquake insurance, and has an a large network with developers nation wide.

3. Kredit Ruko BTN (Shophouse Mortgage) The Company believes that a business place is an

Bank BTN provides financing up to 80% of the

integral business media for entrepreneurs with

lowest value between selling price of the house

their business partners. To that end, The Company

after discounted and fair market value, based on

presents Kredit Ruko BTN with beneficial facilities

appraisal by the Bank for a house with land area of

for entrepreneurs to have a place of business and

more than 70m2 or 70% for a house with land area

residence at the same time.

of less than 70m2. Prevailing interest rate is floating rate with a maximum loan term of 25 years. This

Kredit Ruko BTN is a mortgage for shophouse/office

loan is also secured by the house and land financed.

house/kiosk that can be habitable or be a place of

Throughout 2014, the Company channeled 52,637

business. Its advantages are competitive interest

KPR BTN Platinum units (2013: 67,699 units) with a

rate, quick and easy process, very flexible term, life

value of Rp11.06 trillion.

insurance, fire insurance, and earthquake insurance (in certain regions).

2. KPA BTN (Apartment Mortgage) Along with the development of lifestyle in choosing

Through Kredit Ruko BTN, Bank BTN channels

occupancy types and customer needs for investment

loans to buy home stores (shop-houses) which

in the property segment, KPA BTN product is one

can function as a store, office, or other business

PT. Bank Tabungan Negara (Persero) Tbk.

BTN Terdepan GCG Rumahkoe

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Performance of Sustainable Social

purposes. Loan is granted to a maximum of 60%

2014 Sustainability Report

4. Other Housing Loans

of the purchase price or market value whichever is

To enhance its business growth, the Company also

lower. Kredit Ruko generally has a maximum term of

offers husing loan related products. Realization of other

15 years secured by the shophouse being financed

housing loans disbursement in 2014 is as follows:

at floating interest rate. Throughout 2014, The Company channeled 570

Development of Other Housing Loans Disbursement (Rp Billion)

Kredit Ruko BTN units (2013:622 units) with a total

Product Loans

2012

2013

2014

value of Rp210.37 billion, an increase of 6.10%

Kredit Agunan Rumah BTN

2,431

2,277

2,212

Kredit Bangun Rumah BTN

41

36

41

PUM-KB BPJS Ketenagakerjaan BTN

115

126

37

PRR-KB BP Ketenagakerjaan BTN

22

15

92

5

2

3

compared to 2013, which was Rp. 197.54 billion.

Development of Non-Subsidized Mortgage Disbursement (Rp billion) KPR BTN Platinum KPA BTN Kredit Ruko BTN Total

2012

2013

2014

10,999

12,548

11,063

363

522

296

TBUM Bapertarum TBM Bapertarum

222

198

210

11,584

13,267

11,569

Total

0

0

0

2,615

2,452

2,385

Given the trend, Bank BTN is attempting to

Development of Non-Subsidized Mortgage Position (Rp billion) 42,296 36,948

strengthen other housing loans through product services which we briefly describe as follows:

a. Kredit Agunan Rumah BTN To meet the various needs of customers, such as cash, home renovation costs, children

27,241

education expenses, traveling costs, the cost of Hajj, purchasing vehicles or other purposes, “Kredit Agunan Rumah (KAR) BTN” is the right solution. KAR BTN is a loan facility from Bank BTN that can be used by customers for various consumers

12

20

13

20

14

20

needs secured by the residential house/ apartment/shop-house/office-house owned by

The Company realizes that the banking industry

the customers. KAR are its competitive interest

competition in the country has intensified. This

rate, free credit value, highly flexible term up

requires all industry players to deliver various

to 10 years and protected by life insurance and

services and products under one roof. The

fire insurance.

company also continues to respond to the trends of nonsubsidized housing loans and is committed to diversifying its products and reaching the upper middle class

BTN Terdepan GCG Rumahkoe

PT. Bank Tabungan Negara (Persero) Tbk.

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75

This loan can be used for various purposes as

over home purchase down payment in

long as not against the law. For this product,

the form of Mortgages, then PUM-KB BPJS

the customer submits collateral in the form of

Ketenagakerjaan is the right solution. BPJS

land and building. The maximum amount of

Ketenagakerjaan

loan granted is 75% of the transaction value

provides these loans to members who are

according to the Bank if the collateral is in the

eligible for PUM-KB, for the purpose of home

form of residential house. If the loan is secured

purchase down payment.

through

the

Company

by apartment/shop-house/condominium/flat/ office-house, the amount of loan granted may

The competitive advantageof PUM-KB BPJS

not exceed 60% of the value of the transaction

Kesehatan lays on its flexible term up to 15

value according to the Bank. This loan has a

years and not exceeding the mortgages term,

maximum term of 10 years at floating interest

6% interest rate with a maximum loan is

rate.

provided as follows: •

b. Kredit Bangun Rumah BTN

Wages up to Rp5 million: Maximum loan is Rp20 million

The Company is always ready to help finance



the customers’ needs to build their dream houses. Through Kredit Bangun Rumah BTN

Maximum loan is Rp35 million •

(KBR BTN), the Company grants loan facility to customers who want to build a house on his/

Wages > Rp5 million up to Rp10 million: Wages > Rp10 million: Maximum loan is Rp50 million



her own land.

This PUM-KB BPJS Ketenagakerjaan is disbursed together with KPR BTN.

KBR BTN’s advantages are its competitive

d. PRR-KB BPJS Ketenagakerjaan

interest rate as well as quick and easy process,

The Company grants a home renovation loan

with an extremely flexible term up to 10 years.

for

KBR BTN is a loan to build a house for individual

members.

recommended

BPJS

Ketenagakerjaan

customers who already own land or a plot of land. Financing amount is 70% of the Budget

For customers who are BPJS Ketenagakerjaan

Plan (RAB) to build a house according to the

members and having financial constraint in

Bank. Loan term is provided for up to 10 years

home development or improvement together

with floating interest rate.

with Kredit Agunan Rumah (KAR), the PRRKB BPJS Ketenagakerjaan is the right solution. BPJS

c. PUM-KB BPJS Ketenagakerjaan

Ketenagakerjaan (previously PT Jamsostek)

The Company grants a loan earmarked for

grants these loans through the Company to the

down payment of home purchase or apartment

members eligible for PRR-KB, with the purpose

purchase for recommended members of BPJS

for home development/renovation, and this

Ketenagakerjaan (formerly Jamsostek).

loan is simultaneously applied, approved, granted with collateral with KAR.

For customers who are members of BPJS Ketenagakerjaan

financial

The competitive advantage of PRR-KB BPJS

difficulties hardship to pay the down payment

Ketenagakerjaan lays on its flexible term up

PT. Bank Tabungan Negara (Persero) Tbk.

and

having

BTN Terdepan GCG Rumahkoe

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to 10 years and not exceeded the KAR term,

This product is partial mortgages purchase

6% interest rate, maximum loan amount up to

advance payment assistance or partial relief

Rp50 million and not exceeded 50% of the total

of mortgages financing, consisting of aid that

loan (Kredit Agunan Rumah BTN plus PRR-KB

does not have to be returned and aid that must

BPJS Ketenagakerjaan).

be returned, channeled to civil servants who

2014 Sustainability Report

meet the requirements and is intended for

e. TBUM BTN Bapertarum

group I, group II and group III, with source of

The Company distributes loans for eligible

funds coming from Taperum–PNS contribution

civil servants who need additional down

funds. Bapertarum loans are granted through

payment of home or apartment purchase. For

Bank BTN to civil servants eligible for TBUM

Civil Servant (PNS) customers with financial

Bapertarum, for the purpose of home purchase

constraint to pay the down payment for their

advance payment. Its competitive advantage is

purchase of homes using mortgages, then

6% interest rate with maximum loan amount as

“Tambahan Bantuan Uang Muka” TBUM) is the

follows:

solution.



Group I: Rp13.2 Million



Group II: Rp13.5 Million



Group III: Rp13.8 Million

BTN Terdepan GCG Rumahkoe

PT. Bank Tabungan Negara (Persero) Tbk.

2014 Sustainability Report

Preface

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Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment Kinerja Ekonomi Berkelanjutan

Performance of Sustainable Social

Economic Indirect Impact

77

[G4-EC7]

Corporate Social Responsibility (CSR) is the company’s

sustainable business climate. Application Of CSR

committment to actively participate in improving the

obligations as stipulated in Law No. 25 2007 on

welfare of the society through good business practices

Investment, Article 15 letter b mentions, “Every investor

and contribute most of the company resources through a

is obliged to implement corporate social responsibility “.

variety of activities, such as: environmental preservation, education, health, partnerships, art, and sports.

Implementation of CSR activities for public companies has also been arranged by Bapepam-LK through Bapepam

In overall practice,the activities undertaken by the

Regulation No. X.K.6 regarding Submission of Issuer of

Company with regard to Social and Community

Public Company Annual Report. This regulation became

Development Program cover Partnership and Community

the foundation and guidelines for the Companyto

Development Programs (PKBL). This PKBL focuses on the

conduct a proper and evenly social responsibilityin all

activities aiming to empowerthe community, especially

aspects. In accordance with the Attachment of Decision

in a residential area.

of the Chairman of Bapepam-LK Number: Kep431 / BL / 2012 dated August 1, 2012, the implementation of social

Thisfocus

on

housing

community

empowerment

responsibility for public companies covering following

is associated with the Company’s core business in

aspects:

housing finance. In practice, community development



Social and community development

is demonstrated through activities that contains



Environment

educational, environmental, economic and social



The practice of employment, health, and work

empowerment.

safety •

Bank BTN’s CSR Vision and Mission

Responsibility for product

Bank BTN’s CSR pillars The Company carries out CSR activities through Bank

Bank BTN’s CSR Vision:

BTN Harmonious Environment program. This program

Care about the interests of society and the environment

aims to educate the public in an integratedmanner

by contributing to the economic development and

through some trainings or education, and to coach

empowerment of communities in a sustainable manner,

the community as a basis for the development of an

especially in the residential/housing that became the

integrated program.

core business of Bank BTN. Bank BTN’s Harmonious Environment Program coversthe

Bank BTN’s CSR mission:

following areas:

1.



Improving the welfare of society and the

Environment

environment

The Company invites the public to take part and play

2.

Developingthe Bank’s corporate values and culture

a role in waste management, waste sorting method,

3.

Establishingthe Bank’s positive image in the public

organic waste management, and manufacturing of

eye

products from non-organic waste.

4.

Increasing cooperation and mutual respect with



Education and Training

the community and the environment arount the

The Company conducts education and training of

location where the Bank operates its business

physical education and spiritual quality of children along with parents. With training, children and

Legal Foundation

parents are expected to be able to recognize

Bank BTN applies strategic policies in term of CSR

themselves so as to form a healthy teamwork in

implementation in order to foster a conducive and

interpersonal relationships

PT. Bank Tabungan Negara (Persero) Tbk.

BTN Terdepan GCG Rumahkoe

78

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Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment Kinerja Ekonomi Berkelanjutan

Performance of Sustainable Social





Health



2014 Sustainability Report

Public Infrastructure

The program has assisted the development of the

Public infrastructure as a means of meeting the

quality of public health through a workshop on

needs of society and the environment that supports

children’s health and herbs for various ailments.

other activities, so hopefully people can be

Socio-economic

empowered.

The program is expected to trigger and laying the activities such as training, management and

Realization of Disbursement

development potential in the family around.

Corporate social responsibility is a responsibility inherent

Religion

in each company to continue creating harmonious,

The program activities must be balanced with

balanced and adjusted relations with the environment,

religious activities as form of motivation and

values, norms, and culture of local community. Bank

reinforcement as well as grounding in interacting

BTN‘s commitment to carry out CSR program that

both in the family and society.

includes related aspects is evidenced by the numerous

basis for poverty reduction through entrepreneurial



Activities

and

Fund

activities in 2014. As a form of Bank BTN’s accountability on CSR activities, the following is the realization of activities anduse of funds in 2014:

Economy Details Usage

Total

Ustad fee in the occasion of President Director’s arrival in Banjarmasin for Safari Ramadhan

750,000

CSR fund distribution of blankets to the victims of Mountain Sinabung’s eruption

750,000

Bank BTN ‘Mudik Bareng’ ceremony

1,500,000

Bank BTN’s participation in the activities of aid distribution to flood victims in Jakarta with Radio Galay FM

5,000,000

Mass circumcision activities organized by Khoiru Ummah Foundation

5,000,000

The social service activities of giving nine basic needs to the flood victims organized by Jakarta Bike Club Bamus Betawi

5,000,000

Ramadhan activities (Sahur on the Road and Iftar) organized by the Branch Office

40,000,000

Reward of Initial Hajj Deposit

6,000,000

Bank BTN’s participation in the activities of giving aid to the poor and Sahur on the Road activities organized by the Student and Youth Action Committee for Reform and Democracy (KAMERA)

7,500,000

The declaration of Program Beras Genggam for poor people organized by the City Government of Padang

10,000,000

Bank BTN’s participation in Gemar Mimum Susu activities

10,000,000

Participation Bank BTN at Pasar Murah activity performed by state enterprises in West Kalimantan province, in the form of distributing 100 basic needs packages

10,000,000

Bank BTN’s participation in the activities of distribution of Ramadhan gifts and groceries for orphans, the poors, and dhuafa

10,000,000

BTN Terdepan GCG Rumahkoe

PT. Bank Tabungan Negara (Persero) Tbk.

2014 Sustainability Report

Preface

Sustainable Governance

Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment Kinerja Ekonomi Berkelanjutan

Performance of Sustainable Social

Details Usage

79

Total

Bank BTN’s participation in social activities of giving groceries to 1000 Rembang district, organized by Association of Families of Rembang Jabodetabek dated July 20, 2014, in accordance with the approval of President Director of the attached proposal

10,000,000

Bank BTN’s participation in the refinement of facilities and infrastructure at the University of Muhammadiyah Sidoarjo Bank BTN’s participation in the social service activities before Ramadhan held by STIKES Mojokerto

10,000,000

Bank BTN’s participation in social service activities for people with leprosy organized by the Hadi Djojo CareFoundation

10,000,000

Sponsorship of tasbisan uskup

10,200,000

Distribution of 344 rice boxes for Sahur on the Road held by CSD dated July 12, 2014

10,886,000

The event of giving donations to orphans in Directors safari Ramadan

88,000,000

Sponsorship of 2014 Cap Go Meh Event

15,000,000

Bank BTN’s participation in the Peduli Kepada Kaum Dhuafa activities organized by the Juang Anak Bangsa Foundation for providing groceries packages in GOR Tg Priok dated July 23, 2014

15,000,000

Bank BTN’s participation in the iftar activities organized by IKA UNDIP on Wednesday dated July 23, 2014, in accordance with disposition of President Director of the letter IKAUNDIP No. 22 / DPP IKA UNDIP / VII / 14, dated July 21, 2014

15,000,000

Event for giving donations to orphans in Directors Safari Ramadhan and Sahur on the Road activities.

32,000,000

BY KNJ President Director (Kor August to the Protocol)

17,671,750

The purchase of groceries packages and mineral water for flood victims in Subang

20,000,000

Donations to flood victims in the district of Jepara, Kudus, Pati, Demak and Rembang

20,000,000

Social events for flood victims in Jakarta organized by the Gerakan Cinta Anak Bangsa (GENTA)

20,000,000

Donations to 1000 orphans and dhuafa organized by the Komunitas Satu Benih Indonesia Foundation

20,000,000

Bank BTN’s participation in the activities of donations to orphans and dhuafa organized by IBI

20,000,000

Bank BTN’s participation in the activities held by the City Government of Tasikmalaya in Gerakan Masyarakat Sejahtera Bersama Mitra for poverty reduction in Tasikmalaya

20,000,000

Social service activities organized by GP Ansor for flood victims in Kudus

25,000,000

The distribution of aid for victims of volcanic eruption of Mountain Kelud, associated with the flagship program The Ministry of Religious Affairs

25,000,000

Social activities of free medical treatment for celebration of Nyepi Saka New Year 1936

25,000,000

Hajj Reward for 50 participants in April 2014

25,000,000

Mass circumcision activities and donations organized by Bank BTN Baziz

25,000,000

Bank BTN’s participation in the activities of iftar with orphans and dhuafa organizedby LPDP

37,500,000

PT. Bank Tabungan Negara (Persero) Tbk.

BTN Terdepan GCG Rumahkoe

80

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Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment Kinerja Ekonomi Berkelanjutan

Performance of Sustainable Social

2014 Sustainability Report

Details Usage

Total

Bank BTN’s participation in the distribution of aid to victims of the eruption of Mount Sinabung in North Sumatra

49,225,100

Bank BTN’s participation in the activities of a mass circumcision performed by Baziz Bank BTN

50,000,000

Bank BTN’s participation in the activities of the distribution of aid to flood victims as much as 250 packets in the Capital Jakarta and Surrounding

50,000,000

Bank BTN’s participation in the supply of groceries and raw materials for the army’s kitchen in the event of 2014 Sail Raja Ampat

50,000,000

Donations and transport assistance to the 10 foundations in iftar event with orphans dated July 16, 2014

70,000,000

Donations to the foundations and and orphans in iftar event dated July 16, 2014

120,000,000

Channeling aid to flood victims in Manado

449,539,000

Arts and culture Details Usage

Total

Bank BTN’s participation for the procurement of drumband equipment for the Marching Band Team of TK An-Nisaa’ Jombang Raya, Ciputat Banten

Jumlah 6,000,000

Bank BTN’s participation in arts and cultural activities organized by the City Government of Solo

7,500,000

Bank BTN’s participation in arts, cultural, and health activities in the 58thanniversary event of the city of Jambi

11,000,000

Sports Details Usage

Total

Additional budget allocation for the participation of Bank BTN on the activities of the National Traditional Karate Championship Menpora CUP 2014 V for empowerment of potential athletes

3,250,000

BTN Bank’s participation in the activities of 2014 Fun Walk in commemoration of 69 HUT RI organized by Remaja Petojo Binatu 08

5,000,000

Bank BTN’s participation for potential athletes in the National Championship of Traditional Karate Cup Menpora Year 2014

6,750,000

Coaching of potential athletes in karate national championships Karete Kasad Cup XII - Sulsel 2014

30,000,000

Education Details Usage

Total

Bank BTN’s participation in supporting 3 students of FHUI in the National Model United Nation Distribution of scholarship funds for students

5,200,000 558,000,000

Improving the quality of education in Central Jakarta SDN Kenari 07 through field studies aimed to make students more independent and creative

7,500,000

Bank BTN’s participation in the seminar and workshop organized by student associations of FEB Unpad in Accounting Goes to Company activity

10,000,000

Bank BTN’s participation in the activities implemented by the Provincial Government of West Kalimantan in Bank BTN Peduli Pendidikan

25,000,000

BTN Terdepan GCG Rumahkoe

PT. Bank Tabungan Negara (Persero) Tbk.

2014 Sustainability Report

Preface

Sustainable Governance

Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment Kinerja Ekonomi Berkelanjutan

Performance of Sustainable Social

81

Details Usage

Total

Bank BTN’s participation in research activities conducted by Burhanuddin Muhtadi in the form of Focus Group Discussion as agreed by President Director of the memo No. 539A / M / CC / IV / 2014 dated 11 April 2014

50,000,000

Health Details Usage

Total

Channeling health facilities aid to victims of Mountain Kelud eruption

29,237,000

Channeling medicine aid, chemotherapy, and recovery phases to children and families with cancer coordinated by Cancer Care and other chronic disease community

10,000,000

Bank BTN’s assistance in the field of health (for health centers in South Jakarta) in of the inauguration of Melawai Jakarta BTN Priority

15,000,000

Bank BTN’s participation in providing drugs and medical devices in the General Assembly of Alim Ulama and Grand Conference of NU

25,000,000

Infrastructure and Facilities Details Usage

Total

The cost of making facilities and infrastructure in the form of placards CSR in large and small sizes as much as 12 pcs in iftar event with orphans dated July 16, 2014

2,568,500

Improving the quality of education in the learning process through providing adequate facilities and infrastructure for SMPN 36 Bandung

5,000,000

Bank BTN’s participation in providing facilities and infrastructure for Al-Mukmin Mosque in Pekanbaru in the form of sound system procurement.

5,000,000

Improvement of facilities and infrastructure at Madrash Diniyyah Takmiliyah Tarbiyatul Aulad, Ciampea, Bogor

5,000,000

Bank BTN’s participation in the activity organized by BMPD-SU in the procurement of lampu hemat energi tentara rakyat (LENTERA) in Simalungun

5,000,000

Bank BTN’s participation in making biopori holes in Srengseng City forest as much as 75 pieces @Rp110,999in supporting the program of the Ministry of Finance with the theme “Save Water of the Planet”

8,324,925

Bank BTN’s participation in the program launched by the Government of Central Java Province in improving the welfare of the people in Karimunjawa to reduce the impact of electricity crisis

10,000,000

Bank BTN’s participation in the construction of religious facilities and infrastructure Al-Amanah Nusantara Foundation,South Tangerang

10,000,000

Construction of the Al Qur’an Kindergarten in Madrasah Nurul Iman, South Tugu, Koja, North Jakarta

10,000,000

Construction of Tahfidz Baitussalam Housing, Kalibaru Permai Housing, Cilodong Depok

10,000,000

Bank BTN’s participation in providing facilities and infrastructure such as aluminum pot for business groups and farmers of Satu Hati Tuapukan

10,000,000

Bank BTN’s participation in the renovation of facilities and infrastructure at Daarul Muttaqien Mosque in Jambi

10,000,000

Bank BTN’s participation in the construction of supporting facilities for post of family-based community empowerment in Mojokerto

10,000,000

rocurement of one unit of a bicycle rickshaw trash and garbage in the wheelbarrow garden greening program of Kota Padang initiated by Bapedalda 2014

11,000,000

Pelaksanaan peresmian kegiatan Ruang Perspustakaan Sekolah Percontohan di Semarang tgl 20 Juni 2014

13,400,000

PT. Bank Tabungan Negara (Persero) Tbk.

BTN Terdepan GCG Rumahkoe

82

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Performance of Sustainable Economy

Company Profile and Sustainability Report

Performance of Sustainable Environment Kinerja Ekonomi Berkelanjutan

Performance of Sustainable Social

Details Usage

2014 Sustainability Report

Total

Construction of infrastructure and facilities for Tahfidz Al Qur’an boarding school of Al Washiyyah foundation

15,000,000

Increasing capacity for prayer room at Al Falah mosque in Perum Taman Indah Bona, Lebak Bulus, South Jakarta

15,000,000

Construction of lavatory for toilet facilities at Yos Sudarso Catholic Education Foundation to improve environmental cleanliness and comfort in performing teaching and learning activities

15,000,000

Bank BTN’s participation in the renovation of Al Huda Mosquewhich aims to increase the capacity and comfort of prayer room in Cipinang Kebembem, East Jakarta

15,000,000

Bank BTN’s participation in providing 2 (two) units of patient’s bed and mattress at RS Bhayangkara Mappa Oudang Makassar

15,000,000

Providing facilities and infrastructure in the inauguration of Library Room at Sekolah Percontohan SDN Klepu, Yogyakarta

19,807,000

Repairing facilities and environmental infrastructure in the form of repair embankments, manufacture bins for residents in RW 006/08 North Petojo

20,000,000

The development of facilities and infrastructures and for children with special needs at rumah belajar Little Hijabi Bekasi

20,000,000

Bank BTN’s participation in the activities carried out by the city government of Padang in Padang beach arrangement to be used by traders/culinary businessman

20,000,000

House renovation program and the elevation of cement/concrete floor for the poor and the elderly widows organized by the District of Mojokerto

20,000,000

Bank BTN’s participation in the construction of one unit class III inpatient wards for ‘pasung’ victim patients in order to support Jambi Bebas Pasung 2015

25,000,000

Donation of 1 (one) unit of motor viat/tosa to Pontianak city government in order to accelerate the realization of the clean and healthy Pontianak City

25,000,000

Bank BTN’s participation in the construction of the campus gates UNLAM Banjarmasin

25,000,000

Additional allocationn of funds for the construction of RSJ Jambi Province

25,000,000

Bank BTN’s participation in providing facilities and infrastructure such as carpets for Bustanul Ashyiqin mosque in Semanggi Kidul, Pasar Kliwon, Surakarta

28,000,000

Construction of infrastructure for Panti Asuhan Bersinar foundation for orphans, the poor, abandoned children, and victims of natural disasters

30,000,000

Providing facilities and infrastructure in the form of flask disk to the 27thNational Student Science Week activities (PIMNAS) UNDIP in 2014

30,000,000

Bank BTN’s participation in construction of Panti Werda Hana Foundation, which were used to add occupancy for the elderly

40,000,000

Procurement of learning infrastructure that is more representative and adequate, to support the learning processin the school environment of Tangerang regency

100,000,000

Cost of Phase I (25%) on the execution of 2014 Bank BTN Mudik Bersama

233,884,438

Cost of stage II (25%) on the execution of 2014 Bank BTN Mudik Bersama

233,884,438

Bank BTN’s participation in infrastructure and facilities construction in 4 pilot schools located in Surabaya, Semarang, Malang and DIY

320,000,000

Cost of stage III (50%) / repayment on the execution of 2014 Bank BTN Mudik Bersama

467,768,875

Bank BTN’s participation in the activities of improvement of health services conducted by PMI through donations Two (2) water tank unit for vulnerable areas in Indonesia

500,000,000

BTN Terdepan GCG Rumahkoe

PT. Bank Tabungan Negara (Persero) Tbk.

2014 Sustainability Report

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Performance of Sustainable Economy

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Performance of Sustainable Environment Kinerja Ekonomi Berkelanjutan

Performance of Sustainable Social

Details Usage

83

Total

Bank BTN’s participation in the improvement of facilities and infrastructure at the University of Muhammadiyah Sidoarjo Social services activities before Ramadhan held by STIKES Mojokerto

10,000,000

Bank BTN’s participation in the Facilities and Infrastructure Development Program in the Border, Remote, Outermost, and Disadvantaged Region conducted by PT. Asabri

1,000,000,000

Religion Details Usage

Total

Construction of Al-Furqan Mosque, Jl. Kapok Kingdom Kel. Kapok, district Cengkareng, West Jakarta

4,000,000

Jami Assidiqiyahmosque construction, North Kembangan West Jakarta

4,000,000

Construction and renovation of musholla Al Harikusumo, Jl Kayu Besar, East Cengkareng, West Jakarta

4,000,000

Bank BTN’s participation in the construction of An-Nur Sawangan mosque, Depok

5,000,000

Participation in the Development Bank BTN Fatimah Mosque on the campus of the University of Mulawarman

10,000,000

Nurul Muslim Jamie mosque construction, North Tambun, Bekasi to increase the capacity of the mosque as a center of religious activities and religious learning place for the community.

20,000,000

Bank BTN’s participation in the construction of Ansor mosque in Kramat Raya, Central Jakarta Ansor

25,000,000

Development of the Catholic Church Kranggan to increase the capacity of prayer room, which were inadequatein accommodating people

30,000,000

Bank BTN’s participation in the construction of Nurul Fallah mosque, West Manggarai, NTT in the event of 2013 Sail Komodo

294,000,000

Nature Conservation

[G4-EN11, G4-EN12]

Details Usage

Total

Coverage of Green Action activities in Koran Sindo

55,000,000

Third stage maintenance of the greening activities of Citarum and Ciliwung, organized by PT BUMN Hijau Lestari I

109,091,000

Bank BTN’s participation in greening the environment activity: Go Greenat Hospital Dirgahayu

10,000,000

Bank BTN’s participation on city park construction, Kaltim Green through Samarinda City Government

10,000,000

Bank BTN’s participation in greening activities organized by the city government of Balikpapan

15,000,000

Bank BTN’s participation in tree planting activities undertaken by the Government of Cirebon on 32 regional Organization (PDO)

5,000,000

Bank BTN’s participation in the activities organized by the Department of Hygiene and Park District Banyuwangi, to support the city to become a healthy, clean and beautiful Banyuwangi

10,000,000

Manufacture and installation of flower pot garden in a strategic points of the city in cooperation with the Mataram City Parks Department in the launching event of Mataram Priority Banking

25,000,000

Throughout 2014, the amount of funds distributed and/or used by Bank BTN for CSR activities of all sectors amounted to Rp6,271,617,876

PT. Bank Tabungan Negara (Persero) Tbk.

BTN Terdepan GCG Rumahkoe

84

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BTN Terdepan GCG Rumahkoe

Kinerja Sosial Performance Berkelanjutan of Sustainable Economy

2014 Sustainability Report

Performance of Sustainable Social

PT. Bank Tabungan Negara (Persero) Tbk.

2014 Sustainability Report

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Sustainable Governance

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Performance of Sustainable Environment

Kinerja Sosial Performance Berkelanjutan of Sustainable Economy

85

Performance of Sustainable Social

Performance of Sustainable Social

PT. Bank Tabungan Negara (Persero) Tbk.

BTN Terdepan GCG Rumahkoe

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Kinerja Sosial Performance Berkelanjutan of Sustainable Economy

2014 Sustainability Report

Performance of Sustainable Social

Labour

BTN Terdepan GCG Rumahkoe

PT. Bank Tabungan Negara (Persero) Tbk.

2014 Sustainability Report

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Sustainable Governance

Company Profile and Sustainability Report

Performance of Sustainable Environment

Work Relation Development with Employees

87

Kinerja Sosial Performance Berkelanjutan of Sustainable Economy Performance of Sustainable Social

The Company organized following health facilities: •

Periodic health facilities include Medical Check Up facility

In order to create and maintain harmonious working



Warranty

of

medical

treatment

facilites

:

relationships between the Company and employees, the

reimbursement of inpatient hospital, outpatient

healthy Industrial Relations Policy is done through:

care after discharge from the hospital, the cost



Strengthening the collective bargaining agreement

of birth, cost of dental treatment, replacement of

(CBA) between the Company with the Workers/

glasses, hearing aids, laboratory tests and other

Employees Union.

medical treatment recommended by doctor-patient

Completion of the provisions on the process of good

post inpatient.



employment termination and retirement system including the creation of provisions on exit policy

The Company also provides clinic facilities and doctors to

attractive strategy to optimize and to organize the

provide medical services to employees and their families.

composition and competence of the employees in

Besides facilitating employees to maintain their health,

order to improve the performance of the Company.

the Company also registers employees and their families



Implement engagement survey.

with health insurance organized by BPJS Kesehatan which



The good relationship among employees through

is done gradually. This facility aims to provide protection

various media such as corporate culture magazines

and the cost of insurance coverage while undergoing medical examination or hospital care, including warranty

Occupational Health and Safety

for the employee and employee’s wife which in labor/ maternity.

Occupational Health and Safety (K3) is aspects that

In 2014, the Company has also facilitated employees

matters to management BTN. Bank BTN strive to create a

to attend a seminar on health such as the National

work environment that is safe and convenient to support

Seminar of “Conception and Application Program BPJS

the creation of company’s optimal performance. To that

Kesehatan and BPJS Ketenagakerjaan”and the National

end, Bank BTN is committed to creating a healthy work

Workshop of “Implementation Program BPJS Kesehatan

environment, free of injury and perform operations

dan Ketenagakerjaan Program in Companies and in

according to the rules that apply.

Government .

Health

With the obligation the Company to insured people

The health of employees is one of the main keys of the

in BPJS Kesehatan starting from 2015, the Company

achievement of individual performance of its employees

has conducted socialization of BPJS Kesehatan, so that

and the company as a whole. Therefore, efforts to maintain

employees get a full understanding about the BPJS

the health of employees is a shared responsibility. The

program both in concept and its implementation.

Company facilitates employee with some activitiest that are expected raise up awareness and motivation in maintaining the health of the individual.

PT. Bank Tabungan Negara (Persero) Tbk.

BTN Terdepan GCG Rumahkoe

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Performance of Sustainable Environment

2014 Sustainability Report

Kinerja Sosial Performance Berkelanjutan of Sustainable Economy

Occupational Safety

Performance of Sustainable Social

development as needed by Bank BTN.

For effective implementation of K3, the Company has

ll

completed all its operational offices with various safety devices such as: Apar, Smoke Detector, Diesel Pump,

It is a dynamic program, it constantly adapts to the organization and employment needs.

ll

Emergency Stairs.

Knowledge, skills, and competencies required for each position are key factors to establish Training and Development Program at every level of

Fire safety inspection was conducted on February 13,

position..

2014, upon fire safety equipments as mentioned above. The Company also has plans for fire situation, put the fire

Learning and development programs in Bank BTN are

safety operational procedures in employees work room

divided into two types, namely:

and each floor of the building so that all employees are

ll

well educated.

Technical Competence Learning and Development Program

ll Safety facilities in the Company’s building complies with

Behavioural

Competence

Learning

and

Development Program

the standards of fire safety equipment which based on the Regulation of the Minister of Public Works of

Learning and development programs in the Company

Technical Requirements for Fire Protection Systems in

are conducted through the following methods:

Buildings and Environment.

ll

In terms of labor safety learning, The Company

ll

Formal Education Program for Master (Strata 2) and Doctoral (Strata 3) Degree Training Programme organized by the Bank can be

has included its employees in certification training

divided into two groups, namely:

“Development and Certification Expert Occupational

ww

Training to improve skills (Skill improvement),

Safety and Health General (AK3U) “organized by BPJS

a program training to improve the employees’

Kesehatan.

mastery in specific areas of expertise. These types of programs can be training, workshops,

Competence Development

and certification programs skills. ww

[G4-9, G4-10]

Trainings to improve knowledge (Knowledge

Bank BTN believes that it is necessary to have a system

improvement), a program training to acquire

which can be an objective foundation in improving the

or improve knowledge/insight of employees

employees’ quality. For that purpose, Bank BTN has set

in specific areas of expertise. These types of

learning and development policies as basis to improve

trainings can be seminars, socialization and

the employees’ quality continuously. In general, the

comparative studies programs.

implementation of Learning and Development Program

Professional

Development

Programs

for employees in Bank BTN can be divided according to

ll

development

programs

are

their position, objectives, as well as the nature of their

prepared for groups with specific roles, which are

work.

divided into: ww

PProfessional

that

development

are

specifically

program

for

All educational programs, training and development

functional

e.g.

development

of the company should give attention to the following

programs for auditors and

development

principles:

programs for secretary.

ll

Prepared

by

priority

BTN Terdepan GCG Rumahkoe

targets

for

expertise

ww

Professional

positions,

development

programs

for

PT. Bank Tabungan Negara (Persero) Tbk.

2014 Sustainability Report

Preface

Sustainable Governance

Company Profile and Sustainability Report

Performance of Sustainable Environment

structural

positions,

which

consists

of

positions and ranks. ll

Managerial

Performance of Sustainable Social

Section, Head of Branch, Head of Supporting Branch

leadership evelopment programs specifically organized for employees with particular class

89

Kinerja Sosial Performance Berkelanjutan of Sustainable Economy

and Head of Treasury Office. ll

During 2014, Bank BTN conducted trainings and development programs for 13, 479 employees. The

development

program

specifically

organized for employees with certain structural

Trainings and Development programs held in 2014 were as follows: [G4-LA9]

position, for example Head of Division, Head of No I II

III

IV V

Type of Education

Total

New Employees Education Career Education 1 Supervisory Development Programme (sdp) 2 Management Development Programme 3 Senior Manager Development Programme 4 Assisstant Vice President / VP Development Programme 5 Sespi-Bank/Sespi-Bi Technical Education A. Business 1. Service excellent 2. Selling skill 3. Priority banking 4. Financing / pembiayaan 5. Shariah 6. Collection & workout B. Support 1. Finance, accounting & treasury 2 Human capita & organization 3 Management system 4 Information technology 5 Legal & compliance 6 Corporate secretary 7 General affairs 8 Competence Academic Education Soft Competence Development Total Participants

Work Equality and Employment

955 306 210 94 2 11,638 8,445 2,731 1,302 294 2,726 612 780 3,193 1,659 700 38 419 331 37 9 580 13,479

on selection results, the results of the evaluation on probation period and employee orientation.

The Company provides equal opportunity for all the people, both men and women, regardless of differences

In order to anticipate the development of business

in ethnicity, religion, race, class, gender, or physical

and a fast-growing operation range, Bank BTN applies

condition to participate in the recruitment program.

some strategies of human resources fulfillment that are

Appointment of candidates for employment based

precise, accurate and fast, but still consider the quality

PT. Bank Tabungan Negara (Persero) Tbk.

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2014 Sustainability Report

Kinerja Sosial Performance Berkelanjutan of Sustainable Economy Performance of Sustainable Social

or the basic competencies of candidates. HR fulfillment

Employees while their family is in medical treatment.

strategies applied by Bank BTN includes 2 (two) focus,

Treatment facilities are as follows :

namely:

a.

Inpatient in hospitals.

Retain employees who are included in the talent pool

b.

Outpatient after discharge from the hospital on

in order to continue to be part of the organization and

doctor’s recommendation.

giving full contribution with their maximum potential.

c.

Childbirth for permanent female employees

Attract new talents within the banking industry or new

and the wife of permanent employees up to

talents who are interested to enter the world of banking.

the second child. d.

Employee Welfare

Remuneration

Dental care includes cleaning the teeth (scaling) reef, patched teeth, and dental treatment and

and

tooth extraction.

[G4-LA13]

e.

Prescription glasses reimbursement

f.

Hearing aids

g.

Examination by using health tools such as

Bank BTN applies a fair and competitive remuneration,

x-rays, CT scans, ultrasound, ECG, Endoscopy,

complies with the rules and considers the Company’s

Treadmill and others.

strategy and business development.

h.

Laboratory

tests

based

on

physician

recommendation. The salary structure of Bank BTN is designed to provide

i.

appropriate compensation to workers in line with

Other

types

of

medical

treatment

recommended by doctors after being inpatient.

competence and workload of the employees, hence the employees will feel more challenged in providing the

3.

Condolence money

best contribution to the Company as well as to attract

It is one of beneficial allowances provided by Bank

potential candidates and to retain competent employees.

BTN for the employees who are facing a condition in which them/their family died or suffering from

In order to give a sense of security at work, the employees

physical or mental disabilities.

are given the benefit employment relationship in the form of: [G4-LA2]

4.

Clothing Support for Representation While interacting with stakeholders, uniform and

1.

Periodic health care facilities

harmonious appearance of the employees to attend

Health is the main capital for employees in order

invitations, meetings, seminars, and ceremonies

to work optimally and to carry out tasks with the

is an important aspect to support the image of

best result. To support this,Bank BTN as employers

Bank BTN. Therefore, Bank BTN provides facility of

provides Medical Examination such as General

Clothing Support Representation for employees.

Medical Check-Up and Medical Check-Up facilities in a certain period for Permanent Employees in line with applicable regulations.

5.

Employees Loans To fulfill the primary needs of employees for having a decent home for their family, and vehicles as

2.

Medical assistance

means of transportation, Bank BTN helps permanent

Medical assistance is given for the purpose of

employees to fulfill their primary needs by providing

reducing the burden of Permanent / Prospective

loans.

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Performance of Sustainable Environment

Social Security Insurance

Kinerja Sosial Performance Berkelanjutan of Sustainable Economy Performance of Sustainable Social

ww

In an effort to ensure the rights of labors on the

to

basis of protection against accidents, mortality, and health, the government requires employers to

Karya Satya Abdi Award is an award given employees who are passed away

during their service. ww

Akhir Masa Bhakti Award is an award given

include all labors in the Social Security program. On

to employees who quit with respect or

dues of Social Security program, Bank BTN provides

passed away not due to their service.

Social Security Benefits as part of Welfare benefits. In addition, Bank BTN also provides incentives, bonus or 7.

Reward

production services to employees based on achievement

In order to provide recognition and respect for

of their performance. In providing compensation for each

the dedication given by permanent employees

employee, Bank BTN does not distinguish employees

as well as to encourage Permanent Employee

based on their gender, so there is no difference in the

commitment and their loyalty to the Company, then

rights received by male and female employees.

for permanent employees who meet the specified requirements will be given awards. The types of awards include: a.

Award for exceptional performance is an award given to the employees for their extraordinary work performance.

b.

Work Period Award ww

Award of Karya Satya Bhakti of 15 years service given to the employees who have constantly served in Bank BTN without interruption for 15 (fifteen) years or more.

ww

Award of Karya Satya Bhakti of 20 years given to the employees who have served Bank BTN constantly without interruption for 20 (twenty) years or more.

ww

Award Karya Satya Bhakti of 25 years given to the employees who have served Bank BTN continuously without interruption for 25 (twenty five) years or more.

ww

Award Karya Satya Bhakti of 30 years given to the employees who have served Bank BTN continuously without interruption for 30(thirty) years or more.

c.

Post-Service Award ww

PKarya Purna Bhakti Award is a tribute given to employees who are going to retire.

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2014 Sustainability Report

Performance of Sustainable Social

Human Rights

In carrying out its business operations, Bank BTN always

In case of discrimination or harassment, the Company has

respect human rights and respect all form of differences

the right and fast standards, by executing appropriate

without seeing the cultural differences, nationality, faith,

action based on applicable norms and regulations, as well

ethnicity, gender, age or other protected category. The

as making preventive scheme so that it does not happen

Company is committed to accommodate all kind of

again in the future. If a case of harassment happens, the

differences and unite the variety of all employees’ capability,

Company is committed to protect the confidentiality of

individuality, value their perspective into the collective

all parties, including the victim, alleged perpetrator, and

strength of the Company.

information providers.

Bank BTN respects the dignity and value of each individual

The Company gives assessment for each individual fairly, in

in developing an equal partnership as part of the team.

accordance with the role, tasks, and their performance, aims

Meanwhile, the Company does not give the slightest

to develop their career so that they can face and overcome

tolerance to deviant behavior between colleagues or with

all forms of difficulties proactively

other people. In daily life, the people of the Company

[G4-LA11]

should not be using words or behavior that is insulting, discriminate or violate human rights or degrading a person’s

The company also continues to not only keep a workplace

spiritual values.

that is safe, clean, comfortable, and hygienie based on cooperation between the Company and its employees,

The company also committed to not hiring minors or force

but also seek to provide a healthy balance between

employees to work with a minimum wage that is harmful

employees’ work welfare.

to the development of physical, mental, moral of the employees.

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2014 Sustainability Report

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Performance of Sustainable Environment

Kinerja Sosial Performance Berkelanjutan of Sustainable Economy Performance of Sustainable Social

Community In order to apply the principles of good corporate citizen,

Activities Carried Out

the Company gives great concern to the community,

The embodiment of pillars of Bank BTN Environmental

especially people who are around the Company’s

Harmony

operating

activities, namely:

environment.

Company’s

responsibility

towards society is implemented in the form of CSR

ll

program implemented in 9 (nine) main

Prosperous BTN 2: Program for Improving Welfare, Social Sciences, Arts and Culture

activities. In order to run the CSR programs Company refer to the Regulation of the Minister of State Enterprises

ll

BTN Religion: Religious Affairs Program

No. PER-05 / MBU / 2007 April 27, 2007.

ll

Green BTN: Nature Conservation Sector Program

ll

Fit BTN: Program Field Sports

ll

Healthy BTN: Health Sector Program

Through the CSR, Company seeks to prioritize

ll

Intelligent BTN: Program for Education

community empowerment in its operational activities,

ll

Clean BTN: Health Sector Program

particularly in the housing and residentials, as Company’s

ll

Care BTN: Natural Disaster Response Field Program

main business area. In practice, the program includes

ll

Partnership BTN: Empowerment Program

important activities in the field of environmental, social

ll

Entrepreneurship Society

and economic empowerment, and education.

Sejahtera BTN Kemitraan BTN

Peduli BTN

Religi BTN

Lingkungan/ Masyarakat

Bugar BTN

Bersih BTN Cerdas BTN

PT. Bank Tabungan Negara (Persero) Tbk.

Hijau BTN

Sehat BTN

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Performance of Sustainable Social

Product Responsibility One of the pillars of the Indonesian Banking Architecture

Customer’s Complaints Handling Management

(API) that is declared by the Bank Indonesia and must be implemented by national banks are realizing the

From all customer communication channels, complaints

empowerment and protection of consumers of banking

from customers throughout the year of 2014 amounted to

services through the preparation of standard-setting

6,480 complaints with the largest group of complaints are:

customer complaints mechanism, the establishment

a.

of an independent mediation agency, increased transparency of banking product information, and

much as5037 complaints b.

socialization for customers. The program is expected to increase customer confidence in the national banking

Related to the use of cards and ATM machines as Related with indication of deception as many as 612 complaints

c.

system.

Related to electronic banking transactions as many as 346 complaints

d.

Others as many as 845 complaints

The Company strives to ensuring the success of the API program in order to provide added value in housing

Complaints cards and ATM machines largelydue to the

finance services, not only the best products, but also

failure of the transaction, whichcaused by:

with consistent of service, trustworthines, complete, and

1.

attentive to the needs of our customers and also as a form of Company responsibilities fullfillness to its customers.

Physical or receipt of money at ATM machines run out.

2.

There was a breakdown in communication between the host bank and the ATM network host. From all

Customer’s Complaint Center

of these complaints, 99.0 % have been successfully solved or6415 complaints and the rest are in the process of completion.

The company always tries to improve service to consumers, by giving the best service prior, during and after-sales products. That is why, the Company opens

Follow up of Customers Complaints

various media for complaints and against the services rendered the Company, via : [G4-31]

Customers complaints are responded according to Company’s SOP of Customer Complaints, by executing

Contact Us

a clarification to related units, where the results will be

PT Bank Tabungan Negara (Persero) Tbk.

submitted to consumers through the Company’s Bureau

Head Office

of Public Relations Company, thus the problem can be

Menara Bank BTN

solved in a proper manner.

Jl. Gajah Mada No.1 Jakarta 10130

The Company has developed a Customer Complaint

Telp. : (021) 6336789

System (SPN) that can monitor the completion of

Fax. : (021) 6336719

complaints thoroughly. SPN is aweb-based system that

Contact Center:

can facilitate monitoring upon status of the complaints

1500 286

resolution and at the same time provide certainty for

Email Contact Center :

customers about time required by Bank to solve the

[email protected]

complaint.

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By using the online and integrated system, customers

Customer complaint handling mechanism can be seen in

can also submit complaints and checking the status of

the illustration of the chart below

the complaint at any branch offices all around Indonesia. With the online, web-based, and integrated SPN, complaint-handling mechanism is more structured and can be carefully monitored. Receipt of Customers Complaints

Supervision Handling Customers Complaints

Coordination inter Division for Customers Complaint Resolution

Receipt of customer complaints (end-users)

Receive notification of complaints from customers

Receive notification of customer complaints

Inquiry customer complaints on SPN

See details of customer complaints on SPN

See customer complaints details on SPN

Need escalation group support?

Koordinasi proses penyelesaian

Ya

convey progress complaints to the customer

Tidak

Tidak

Already registered on SPN

Escalation of customer complaints resolution process

Data entry of customer complaints to SPN

Coordination resolving a complaints process

Convey registration number the customer

Entries results resolving a complaints

Convey the results of the complaints completion to the customer

Closing complaints

Management of Service Quality

3.

Ya

Entries complaints resolving in SPN

The making of Marketing Tool Kits, guidebooks to facilitate and assist Customer Service to be more

In order to improve excellent and maximum service, in

systematic in explaining or marketing products and

2014 the Company has executed 2014 Service Quality

services to customers.

Work Plan, with the following activities:

4.

Preparation of SOP for Standard Service, a standard for service in outlets.

Strategy and Development, consisting of: 1.

5.

The making of Roleplay Handbook Roleplay, which

guidancefor coaching scenario themes in all

is used by all front liners (Customer Service, Teller Service, Security Officer) to facilitate them in the 2.

The making of Branch Development Curriculum, branches for MRI rank.

6.

The making of monitoring checklist for quality of

implementation of service standards.

service, which is used by the Regional Office, Office

The making of Roleplay Script Guidance, which is

Branches, and outlets.

used by the Loan Service officers.

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Delivery and Implementation, consisting of: 1.

Kinerja Sosial Performance Berkelanjutan of Sustainable Economy

2.

Customer Engagement Survey Measurements include two types of methods:

Coaching Clinic and Mentoring.

a.

FThe Forum is conducted periodically by the

b.

(needs, desires, and expectations of customers).

FBranch Management Forum and Head Outlet,

b.

the initial insights resultingfrom the qualitative

and managing service quality in branche

method, and to obtain data on customer

offices and outlets.

satisfaction index as well as customer priority of

Frontliner

Forum,

focused

on

analyzing

improvement for Bank BTN’s future strategies. 3.

Best Frontliner Award 2014/2015

4.

Regional Office Assessment

Held to promote the spirit of competition among all

To maintain consistency of the implementation of

front liners.

standard services in all branches by Region Officer,

Implementation of the National Customer Day 2014

with predetermined parameters and scenarios.

Held to celebrate Customers National Day by making

4.

Branch Self Assessment Reporting [G4-PR5] A report measuring all outlets under the branches.

technical trainings.

3.

Quantitative Methods, to perform validation of

which focused on understanding (mindset)

service parameters, transaction scenarios, and 2.

Qualitative methods, conducted by Focus Group Discussion to obtain early insights

Customer Care Division and consisting of : a.

2014 Sustainability Report

Performance of Sustainable Social

5.

Service Enforcement for Supervisor

activities in the branch offices on 4 September 2014

Is a program to strengthen service culture for all

and Sympathetic Parade of National Customer Day

supervisors whom undertake direct supervision of the

on December 9 September 2014.

service daily.

Training Competence Competency enhancement training, which includes: a.

Training for management (DBM, CCU Head and SQO) by consultants.

b.

Training for frontliners (CS, TS, LS, Security) by Customer Care Division team.

c. 5.

Product knowledge improvement.

Service Excellence Enforcement Workshop by MRI.

Measurement consists of: 1.

and

Implementation,

Monitoring and observasi Conducted by a team of Customer Care Division with direct observation for all outlets suspect are.

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Appendix CROSS REFERENCE GRI-G4 Index

Aspect and Indicator Strategy and Analysis G4-1 Speech from Most Senior Decision Maker in the Company G4-2 Description of Impacts, Risks, and Main Opportunities Company’s Profile G4-3 Name of the Company G4-4 Brand, Products, and Main Services G4-5 Location of Company’s Head Office G4-6 Operational Area G4-7 Ownership and Legal Entities G4-8 Market Share Company’s Scale (Number of Employees, Operating Total, Product G4-9 Quantity, Net Sales) G4-10 Employee’s Distribution (Based on Working Agreement, Gender, Area) G4-11 Employee’s Protection through Collective Working Agreement G4-12 Company’s Supply Chain Significant Changes during Reporting Period regarding Company’s Size, G4-13 Structure, Ownership, or Supply Chain G4-14 Approach or Prudential Principle within the Company List of Award, Principles, or other Initiatives in Economic Field Economy, G4-15 Environment, and Social that were Developed Externally in which the Company was participating or Providing Support G4-16 The Company’s Membership in Associations Scope and Boundary of Report G4-17 List of Company’s Entities Included in Report G4-18 Report Content Determination and Limitation G4-19 List of Material Aspects Identification G4-20 Limitation of Material Aspects within the Company G4-21 Limitation of Material Aspects outside the Company Influences of Re-statement regarding Information given in the Previous G4-22 Report and Reason for the Re-statement G4-23 Significant Changes from Previous Reporting Period Involvement of Stakeholders G4-24 List of Groups of Stakeholders that was Involved by the Company G4-25 Basis of Identification and Selection of Stakeholders that will be Involved G4-26 Company’s Approach in Relationship with Stakeholders Topics and Main Issues that Ever Been Issued through Relationship with G4-27 Stakeholders Report Profile G4-28 Reporting Period G4-29 Latest Date of Previous Report G4-30 Reporting Cycle G4-31 Available Contacts for Further Questions regarding Report or its Content G4-32 Index of GRI Content G4-33 Assurance

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Index Aspect and Indicator Structure and Composition of Corporate Governance G4-34 Structure of Corporate Governance G4-35 Process of Authority Delegation Position Determination with Economic, Environmental, and Social G4-36 Responsibility, and Report to Highest Governance Board Consulting Process Between Stakeholders and Highest Governance G4-37 Board regarding Economy, Environment, and Social topics G4-38 Composition of Highest Governance Board and Committees Appointment of Chairman of Highest Governance Board regarding G4-39 Doubled Position Process in Determining Qualification and Skill of Highest Governance G4-40 Board and Committees G4-41 Process in Highest Governance Board to Avoid Conflict of Interest Internal Development related with Economic, Environmental, and Social G4-42 Performance, along with the Implementation Status Policies Taken to Develop and Increase Collective Knowledge of Highest G4-43 Governance Board on Economy, Environment, and Social Topic Evaluation Process of the Performance of Highest Governance Board in G4-44 Governance of Economy, Environment, and Social Topic Role of Highest Governance Board in Identification and Management of G4-45 Impacts, Risks, and Opportunities in Economy, Environment, and Social Report on Role of Highest Governance Board in Reviewing the G4-46 Effectiveness of the Company’s Risk Management Process for Economy, Environment, and Social Topic Report on Frequency of Review by Highest Governance Board regarding G4-47 Impacts, Risks, and Opportunities in Economy, Environment, and Social Report of Highest Governance Board in Approving the Company’s G4-48 Sustainable Report Report of the Submission Process of Significant Issues to Highest G4-49 Governance Board Mechanism for Shareholders and Employees in Submiting Report/ G4-50 Recommendation Remuneration and Incentive Remuneration Policies of Highest Governance Board and Senior G4-51 Executives G4-52 Remuneration Determination Process, including Involving Consultants G4-53 Perception of Stakeholders on Remuneration G4-54 Ratio of Total Annual Compensation of Highest Governance Board G4-55 Procentage Ratio of Increment of Annual Compenstaion Ethics and Integrity G4-56 Values, Principles, Standards, and Behavior Norms of the Company G4-57 Advisory and Compliance Behavior of the Law G4-58 Reporting on Unethical and Uncompliance Behavior Disclosure of General Standards Category: Economy G4-Ec1 Direct Economic Values that are Generated and Distributed Financial Implication, Risks, and Opportunites for the Company due to G4-Ec2 Climate Changes G4-Ec3 Company’s Liability Over Defined Benefit Program G4-Ec4 Financial Aid Received From Government Aspects: Existence In The Market Ratio of Employees’ Standard Wages In Early Level With a Minimum G4-Ec5 Wages Acceptance Procedures of Local Labor And Some People In Senior G4-Ec6 Management Level Taken From Local Communities in Several Locations

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Index Aspect and Indicator Aspects: Indirect Economic Impacts Development and Impact of Infrastructure Investment and Services G4-Ec7 Provided G4-Ec8 Significant Indirect Economic Impacts Comparison of Purchasing From Local Suppliers In Significant Operating G4-Ec9 Location Category: Environment G4-En1 Direct Energy Consumption by Primary Energy Source G4-En2 Percentage of Recycled Materials Used Aspect: Energy G4-En3 Energy Consumption Within the Company G4-En4 Energy Consumption Outside the Company G4-En5 Energy Intensity G4-En6 Energy Consumption Reduction G4-En7 Reduction of Energy Needs By Products And Services Aspect: Water Total of Water Intake Based On Sources Water Sources that are G4-En8 Significantly G4-En9 Affected By The Water Intake G4-En10 Percentage and Total Volume of Water Recycled and Reused Aspect: Biodiversity Owned, Rent, Managed Operational Locations that are Adjacent G4-En11 With Protected Areas and Biodiversity Areas with High-Value Outside Protected Areas Description of Significant Impactsof Activities, Products, and Services G4-En12 AgainstBiodiversity in Protected Areas and Biodiversity Areas With HighValue Outside Protected Areas G4-En13 Protected and Restored Habitat Protected And Restored Total number of species in the IUCN Red List and Species in the National G4-En14 Protected Species List With Habitat In Place that are Influenced by Operational Activities, Based on Level of Extinction Risk Aspect: Emissions G4-En15 Direct Greenhouse Gas Emissions (GHGs) G4-En16 Indirect Energy of Greenhouse Gas Emissions (GHGs) G4-En17 Other Indirect Greenhouse Gas Emissions (GHGs) G4-En18 Intensity of Greenhouse Gas Emissions (GHGs) G4-En19 Reduction of Greenhouse Gas Emissions (GHGs) Emissions Substances of Ozone-Depleting (Bpo) that Measured Based G4-En20 on Weigh G4-En21 Nox, Sox, and Other Significant Air Emissions Aspect: Effluents And Waste G4-En22 Total Water Discharged by Quality And Objectives G4-En23 Total Weight of Waste by Type and Disposal Method G4-En24 Number and Total Volume of Significant Spills Weight of Waste Considered Hazardous that are Transported, Imported, G4-En25 Exported, Or Processed G4-En26 Identity, Size, Protected Status, and Biodiversity Value of Water Aspect: Products and Services Initiative To Handle Bad Impact On Environment And Derivative Impact G4-En27 Resulting from the Use of Products and Services G4-En28 Percentage of Recyclabe Products Sold and Packaging Materials Aspect: Compliance Monetary Value of Significant Fines and Total Number of Non-Monetary G4-En29 Penalties For Incompliance to the Law of Regulations on Environment

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Index Aspect and Indicator Aspect: Transport Significant Environmental Impacts Of Transportation of Products And G4-En30 Other Goods as wel as Materials as Materials for Corporate Operational Activitiesand Transportation of Workers Aspect: Others Total Expenditure and Investment of Environmental Protection by G4-En31 Category Aspect: Top Supplier Environmental Assessment G4-En32 Percentage of New Suppliers The Filtered Using Environmental Criteria Significant Negative Environmental Impact, Actual and Potential In G4-En33 Supply Chain Aspect: Complaints Mechanism on Environmental Problem Number of Complaints About Environmental Impact Proposed, Handled, G4-En34 and Resolved Through Official Complaint Mechanism Management Approach Management Approach Why Management Approach is Needed Mechanism of Management Approach G4-Dma Evaluation of Management Approach Results Evaluation of Management Approach Adjustments Related to Management Approach Category: Social Aspect: Employment Total and Level of New Employees Recruitment and Employees Turn G4-La1 Over by Age Group, Gender, and Region Benefits Provided For The Permanent Employees that are Not Provided G4-La2 For Temporary or Part Time Employees G4-La3 Level Re-Hiring and Retention After Maternity Leave Aspect: Industrial Relations Minimum Duration of Announcement regarding Important Operational G4-La4 Changes Aspect: Health And Safety Percentage of Total Workforce That Helps Supervising and Giving Advice G4-La5 on Work Health And Safety Type and level of Injuries, Occupational Diseases, Lost Days, and G4-La6 Absenteeism, as well as Total Number of Deaths Due to Work Workers that are Freuqently Exposed or High Risk for Diseases G4-La7 Associated With Their Work Topics on Health And Safety that are included in The Formal Agreement G4-La8 With Workers Union Aspect: Training and Education G4-La9 Average Training Hours Per Year Per Employee 91 G4-La10 Training Program For Employees Who Will Retire G4-La11 Performance Review and Career Path of Employees Aspect: Diversity and Equal Opportunity G4-La12 Composition of Governance Board And Employee Distribution Aspect: Remuneration Equality of Women and Men G4-La13 Ratio of Salary and Remuneration for Women Against Men Aspect: Assessment of Employment Practice Suppliers G4-La14 Supplier Selection based on Criteria of Employment Practice Percentage Suppliers Who Have Negative Impact upon Employment G4-La15 Practices Aspect: Complaint Mechanism of Employment Issues Number of Complaints About Employment Practices Submitted, G4-La16 Addressed, and Resolved through official Complaints Mechanism

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Performance of Sustainable Environment

Kinerja Sosial Performance Berkelanjutan of Sustainable Economy Performance of Sustainable Social

Index Aspect and Indicator Sub-Category: Human Rights Aspect: Investment Percentage and Total Number of Significant Investment Agreements and G4-Hr1 Contracts That Include Clauses related with Human Rights or Human Rights Based Screening Total Time of Employees Training About Policies Or Procedures for G4-Hr2 Human Rights Aspects that are Relevant with Company Operations Aspect: Non-Discrimination G4-Hr3 Total Number of Incidents of Discrimination and Actions Taken Aspect: Freedom of Association and Collective Labour Agreement Freedom of Association Rights Violations within the Organization or G4-Hr4 Suppliers Aspect: Child Labor Operation Units And Suppliers Identified As High Risk in Doing G4-Hr5 Exploitation of Child Labour and Actions Taken To Contribute In the Elimination of Child Labou Aspect: Forced or Compulsory Labour Workers Operation Units And Suppliers Identified as High Risk in Performing G4-Hr6 Forced or Compulsory Labour Work And Actions Taken to Eliminate it Aspect: Security Practice The percentage of Security Officers Trained In Policies Or Procedures of G4-Hr7 Human Rights that are Relevant with Company Operations Aspect : Indigenous Rights The total number of the incident a foul that involves masyarakatadat G4-Hr8 rights and action taken Aspect : Assessment Number and Percentage of Total Operations That Have Been Doing G4-Hr9 Review Or Assessment About the Impact of Human Right Aspect: Assessment Suppliers Over Human Rights G4-Hr10 New Supplier Selection Using Criteria of Human Right Percentage of Suppliers Identified Has Negative Impact Of Human G4-Hr11 Rights In Supply Chain and Actions Taken Aspect: Complaints Mechanism concerning Human Rights G4-Hr12 Number of Complaints Related to Human Rights And Solution Aspect: Local Communities Percentage of Operational Activities Involving Local Communities, G4-So1 Impact Assessment, and Program Development Applied Operational Activities with Potentially Significant Negative Impact Or G4-So2 has Caused Negative Impact For Local Communities Aspect: Anti-Corruption G4-So3 Corruption Risk Evaluation G4-So4 Anti-Corruption Training G4-So5 Corruption Incident And Actions Taken Aspect: Public Policies G4-So6 Contributions/Donations to Political Parties Aspect: Anti Competition Total Actions Related to Anti-Competition Law, Anti-Trust, as well as G4-So7 Monopoly Practices Aspect: Compliance Monetary Value of Significant Fines and Total Number of Non-Monetary G4-So8 Penalties Against Disobedience Over Applicable Lawand Regulations Aspect: Supplier Assessment regarding Impact on Society G4-So9 New Suppliers Filtering Using Criteria of Impact on Society

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Preface

Sustainable Governance

Company Profile and Sustainability Report

Performance of Sustainable Environment

Index

Performance of Sustainable Social

Aspect and Indicator Significant Negative Impact on Society That Occur In Supply Chain and G4-So10 Actions Taken Aspect: Complaints Mechanism regarding Impact on Society Number of Complaints About Impact on Local Communities that were G4-So11 Handled And Solved through Official Complaint Mechanism Sub-Categories: Responsibility of Products Aspect: Customer’s Health And Safety Percentage of Products and Services that Have Impact On Health And G4-Pr1 Safety Number of Noncompliance Incidence over Related Regulation and G4-Pr2 Ethics about Health And Safety Impact of Products and Service Aspect: Labelling of Products and Services Type of Products and Services Information Required by the Procedures G4-Pr3 Related with Information And Labeling of Products And Services Number of Disobedience Incidents Against Regulation And Voluntary G4-Pr4 Codes Associated With Information And Labeling of Products And Services G4-Pr5 Customer Satisfaction Survey Results Aspect: Marketing Communications G4-Pr6 Sales of Prohibited Or Disputed Products Total Number of Disobedience Incidents Against Regulations and G4-Pr7 Voluntary Codes About Marketing Communications, Including Advertising, Promotion, and Sponsorship Aspect: Customer Privacy G4-Pr8 Total Number of Complaints Related to Customer Privacy Breach Aspect: Compliance Monetary Value of Significant Fines Over Disobedience Against Law and G4-Pr9 Regulations Related to Provision and Use of Products and Services

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2014 Sustainability Report

Kinerja Sosial Performance Berkelanjutan of Sustainable Economy

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PT. Bank Tabungan Negara (Persero) Tbk.

2014 Sustainability Report

Preface

Sustainable Governance

Company Profile and Sustainability Report

Performance of Sustainable Environment

PT. Bank Tabungan Negara (Persero) Tbk.

Kinerja Sosial Performance Berkelanjutan of Sustainable Economy Performance of Sustainable Social

BTN Terdepan GCG Rumahkoe

103

2 0 1 4 S u s t a i n a b i l i t y

R e p o r t

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