SHORT FORM SUPPLEMENTARY INFORMATION OJK NEITHER GIVES ITS APPROVAL OR DISAPPROVAL ON THE SECURITIES, NOR DOES THE OJK CONFIRM THE ACCURACY OR ADEQUACY OF THE CONTENTS OF THIS SUPPLEMENTARY INFORMATION. ANY STATEMENT TO THE CONTRARY SHALL BE A VIOLATION OF THE LAW. PT BANK TABUNGAN NEGARA (PERSERO) TBK. (“COMPANY”) AND THEIR RESPECTIVE GUARANTOR FOR ISSUANCE OF BONDS TAKES FULL RESPONSIBILITY FOR THE ACCURACY OF THE INFORMATION OR MATERIAL FACTS, AND OBJECTIVITY OF OPINIONS INCLUDED IN SUPPLEMENTARY INFORMATION.

THIS PUBLIC OFFERING CONSTITUTES THE SECOND STAGE OF A DEBT SECURITIES OFFERING UNDER THE SHELF REGISTRATION , WHICH HAS BECOME EFFECTIVE.

PT BANK TABUNGAN NEGARA (PERSERO) TBK. Business Activities Banking Services

Head Office Gedung Menara BTN Jl. Gajah Mada No. 1, Jakarta 10130, Indonesia P.O. BOX 3198 / JKT 10130 Tel.: (021) 633-6733, 633-6789 Fax.: (021) 633-6737 E-mail: [email protected] Website: www.btn.co.id

SUPPLEMENTARY INFORMATION SHELF REGISTRATION PUBLIC OFFERING SHELF REGISTRATION BOND II BANK BTN WITH TOTAL BONDS TARGET OF RP. 6,000,000,000,000 (SIX TRILLION RUPIAH) The bonds shall be issued as scripless, except for the Jumbo Bond Certificates issued by the Company on behalf of PT Kustodian Sentral Efek Indonesia ("KSEI") as proof of debt for the benefit of bondholders with a principal amount of Rp6,000,000,000,000 (six trillion Rupiah). The Company has issued: SHELF REGISTRATION BOND II BANK BTN PHASE I YEAR 2015 WITH TOTAL BONDS TARGET OF RP. 3,000,000,000,000 (THREE TRILLION RUPIAH) (“Bond Phase I”) With this, the Company will offer and issue: SHELF REGISTRATION BOND II BANK BTN PHASE II YEAR 2016 WITH TOTAL BONDS TARGET OF RP. 3,000,000,000,000 (THREE TRILLION RUPIAH) (“Bond Phase II”)

The bonds shall be issued as scripless, except for the Jumbo Bond certificates issued by the Company on behalf of PT Kustodian Sentral Efek Indonesia. These bonds provide options for people to choose the desired series, namely two (2) series of bonds offered as follows: Series : Bonds with a fixed interest rate of 8.2% (eight point two percent) per annum, with a term of 3 (three) years from the issuance date. The Principal Amount for A the Series A bonds offered is Rp. 1,347,000,000,000 (one trillion three hundred and forty-seven billion Rupiah) Series : Bonds with a fixed interest rate of 8.75% (eight point seven five percent) per annum, with a term of 5 (five) years from the issuance date. The Principal B Amount for the Series B bonds offered is Rp. 1,653,000,000,000 (one trillion six hundred and fifty-three billion Rupiah). The bonds are offered at 100% (one hundred percent) of the Bond Principal value. Bond interest is paid quarterly, according to the payment date for each Bond Interest. The first interest payment will be made on November 30, 2016 with the last bond interest payment being made on the Redemption Date for each Bond Series on August 30, 2019 for Bond Series A and August 30, 2021 for Bond Series B. IMPORTANT NOTICE THIS BOND IS NOT SECURED BY SPECIFIC WARRANTY, BUT IS GUARANTEED WITH ALL THE COMPANY’S ASSETS, BOTH MOVABLE OR NON-MOVABLE, EITHER EXISTING OR FUTURE, WHICH WILL WARRANTY BONDHOLDERS IN ACCORDANCE WITH THE PROVISIONS OF ARTICLES 1131 AND 1132 OF THE CIVIL LAW CODE. THE BONDHOLDERS’ RIGHTS ARE PARIPASSU, WITHOUT PREFERENTIAL RIGHTS, WITH OTHER CREDITORS’ RIGHTS, WHETHER CURRENT OR FUTURE, EXCEPT FOR CREDITORS RIGHTS GUARANTEED BY THE COMPANY WITH COMPANY PROPERTY, EITHER EXISTING OR FUTURE. A BOND BUYBACK CAN BE MADE 1 (ONE) YEAR AFTER THE ALLOTMENT DATE, THE COMPANY CAN BUY BACK PARTS OR ALL OF THE BONDS PRIOR TO THE PRINCIPAL REDEMPTION DATE. THE COMPANY HAS THE RIGHT TO MAKE SUCH BUYBACK AS REPAYMENT OF BONDS OR TO BE RETAINED IN COMPLIANCE WITH THE TRUSTEE AGREEMENT CONDITIONS AND REGULATIONS APPLICABLE LEGISLATIONS. DESCRIPTION OF THE BUYBACK IS OUTLINED IN SUPPLEMENTARY INFORMATION CHAPTER XI. THE COMPANY ONLY ISSUES JUMBO BOND CERTIFICATES REGISTERED IN THE NAME OF PT KUSTODIAN SENTRAL EFEK INDONESIA ("KSEI") AND THEY WILL BE DISTRIBUTED IN ELECTRONIC FORM AND ADMINISTERED IN COLLECTIVE CUSTODY BY KSEI. For the purpose of this Bond Public Offering, the Company has obtained a Bond rating from:

PT Pemeringkat Efek Indonesia (Pefindo): idAA+ (Double A Plus)

THIS BOND WILL BE LISTED ON PT BURSA EFEK INDONESIA

THIS BOND WILL BE QUARANTEED WITH FULL COMMITMENT JOINT LEAD UNDERWRITERS

PT BCA Sekuritas

PT CIMB Securities Indonesia

PT Danareksa Sekuritas (Terafiliasi)

TRUSTEE PT Bank Mega Tbk.

PT Trimegah Securities Tbk

THE MAJOR BUSINESS RISK FACED BY THE COMPANY IS THE CREDIT RISK ARISING FROM LOAN REPAYMENTS AND / OR LOAN INTEREST, WHICH IF NOT SUFFICIENT, CAN AFFECT THE COMPANY PERFORMANCE. THE RISK THAT MAY BE FACED BY THE INVESTORS PURCHASING THE BONDS IS THE RISK THAT THE BONDS OFFERED IN THIS PUBLIC OFFERING MAY NOT BE LIQUID CONSIDERING THE BONDS ARE GENERALLY PURCHASED FOR THE PURPOSE OF LONG-TERM INVESTMENTS.

This Supplementary Information is published in Jakarta on August 10, 2016

ISSUE SCHEDULE Effective Date Bond Subscription Period Allotment Date Bond Distribution Date Bond listing date on Bursa Efek Indonesia

: : : : :

June 29, 2015 August 23 – 25, 2016 August 26, 2016 August 30, 2016 August 31, 2016 PUBLIC OFFERING

BOND NAME

The Bond offered through public offering is ”Shelf Registration Bond II Bank BTN Phase II Year 2016”. BOND TYPE

The bonds shall be issued as scripless, except for the Jumbo Bond Certificates issued in the name of KSEI as a proof of debt for the benefit of the Bondholders. These bonds are registered in the name of KSEI for the benefit of Account Holders of KSEI's next to the interests of the Bondholders registered on the date of delivery of Jumbo Bond Certificates from the Company to KSEI. Proof of Bond ownership for Bondholders is a written confirmation issued by KSEI, Securities Company or Custodian Bank. These Bonds do not have right over payment for other prior loans held by the Company because these bonds are not secured by specific collateral but secured by all assets of the Company both movable and immovable, either existing or in the future, which will warranty Bondholders in accordance with the Provisions of Articles 1131 and 1132 of the Civil Law Code.

Based on the Trustee Agreement, the Company has an obligation to maintain assets, that are not specifically pledged, for a minimum of 125% (one hundred and twenty five percent) of the Company's outstanding debts that are not specifically guaranteed, in the form of bonds listed on Bursa Efek Indonesia and / or Foreign Stock Exchanges and Medium Term Notes (MTN). BID PRICE

100% (one hundred percent) of the Bonds nominal value. BOND PRINCIPAL, INTEREST AND MATURITY

The Bond Principle on the issue dates will amount to Rp. 3,000,000,000,000 (three trillion Rupiah), which is composed as follows: Series A : Bonds with a fixed interest rate of 8.2% (eight point two percent) per annum, with a term of 3 (three) years from the issuance date. The Principal Amount for the Series A bonds offered is Rp. 1,347,000,000,000 (one trillion three hundred and forty-seven billion Rupiah) Series B : Bonds with a fixed interest rate of 8.75% (eight point seven five percent) per annum, with a term of 5 (five) years from the issuance date. The Principal Amount for the Series B bonds offered is Rp. 1,653,000,000,000 (one trillion six hundred and fifty-three billion Rupiah). The bonds are issued with regard to the Trustee Agreement provisions, with the unit amount of bonds that can be transferred from one Securities account to another Securities Account being Rp. 1 (one Rupiah) or multiples thereof as set forth in the Trustee Agreement. Each Bond amounting to Rp. 1 (one Rupiah) gives rights to the relevant Bondholder to receive 1 (one) vote in the RUPO.

Bond purchase orders must be made in an amount of at least Rp 5,000,000 (five million Rupiah) and / or multiples thereof. Bond interest rate is the percentage per year of the nominal value, which is calculated based on the number of days that pass, where 1 (one) month equals 30 (thirty) days and one (1) year equals 360 (three hundred sixty) days. The principal must be repaid at a price equal to the Bond Principal amount, or that which is written on the written confirmation owned by the Bondholders. Interest payment schedule for each series of Bonds is as follows: Interest no. Series A Bond Interest Payment Date 1 November 30, 2016 2 February 28, 2017 3 May 30, 2017 4 August 30, 2017 5 November 30, 2017 6 February 28, 2018 7 May 30, 2018 8 August 30, 2018 9 November 30, 2018 1

Series B Bond Interest Payment Date November 30, 2016 February 28, 2017 May 30, 2017 August 30, 2017 November 30, 2017 February 28, 2018 May 30, 2018 August 30, 2018 November 30, 2018

Interest no. 10 11 12 13 14 15 16 17 18 19 20

Series A Bond Interest Payment Date February 28, 2019 May 30, 2019 August 30, 2019 -

Series B Bond Interest Payment Date February 28, 2019 May 30, 2019 August 30, 2019 November 30, 2019 February 29, 2020 May 30, 2020 August 30, 2020 November 30, 2020 February 30, 2021 May 30, 2021 August 30, 2021

COLLATERAL

This Bond is not covered by specific warranty, but is guaranteed with all the Company’s Assets, both Movable and Non-Movable, either existing or future, which will warranty Bondholders in accordance with the Provisions of Article 1131 and 1132 of the Civil Law Code. SENIORITY RIGHTS OVER DEBTS

The Bondholders’ rights are paripassu, without preferential rights, with other creditors’ rights, whether current or future, except for creditors’ rights guaranteed by the Company with Company Property, either existing or future. BOND SINKING FUND

The Company has not set a sinking fund for the redemption of the principal, with consideration for optimizing the use of proceeds from the issuance in accordance with the planned use of the funds. LIMITATIONS AND OBLIGATIONS OF THE COMPANY

Before the redemption of all Bond principals and interest, as well as other expenses that are the responsibility of the Company in connection with the issuance of bonds, then without the written permission of the Trustees (which consent shall not be unreasonably denied by the Trustees, and if the Trustees do not provide an answer within 15 (fifteen) Business Days after receipt of the application for permission by the Trustee and the Trustee considers the documents required have been completed no later than five (5) Business Days after the documents requesting permission by the Company are received, the approval will be deemed to have been granted), the Company's promises and commits itself, among others, not to transfer, relinquish rights or guarantees of debt tied specifically of more than 50% of the entire amount of the Company's assets, either in a single transaction or several transactions that stand alone or interlinked with each other within 1 (one) financial year, subject to the provisions contained in Article 6 paragraph 6.3 letter t of the Trusteeship Agreement.

The Company is obliged, among other things: (i) to comply with all provisions of the Trusteeship Agreement; (ii) to work to maintain a minimum soundness rating of 3 (three), which is classified as "Respectable", according to the internal ratings based on applicable banking regulations; (iii) to maintain the main business of the Company; (iv) to deliver to the Trustee the Company's reported readiness to pay the principal amount of Bonds and / or Bond interest and / or penalties (if any) not later than five (5) Business Days prior to the date of payment; (v) to perform bond ratings in accordance with Bapepam-LK No. IX.C.11, amendments and / or other arrangements that must be fulfilled by the Company in relation to the rating; and (vi) to maintain the amount of assets that are not pledged specifically at a minimum of 125% (one hundred and twenty five percent) of the Company's outstanding debts that are not specifically guaranteed, in the form of bonds listed on Bursa Efek Indonesia and / or Foreign Stock Exchanges and Medium Term Notes (MTN). BOND RANKINGS

In compliance with Bapepam and LK IX.C.1 Attachment to the Decision of the Chairman of Bapepam Number: Kep-42 / PM / 2000 dated October 27, 2000 regarding Guidelines for the Form and Content of Registration Statement for Public Offerings, and Bapepam-LK Number IX. C.11, the Company conducted a Bond rating through PEFINDO.

The rating on long-term debt is in accordance with the PEFINDO letter No. 489 / PEF-Dir / III / 2016 dated March 21, 2016, which assigned a rating on the Shelf Registration Public Offering for the period March 18, 2016 until March 1, 2017 of: idAA+ (Double A Plus)

The ratings reflect strong support from the Government of the Republic of Indonesia (RI) as the controlling shareholder, the strong business position in housing finance and the improving quality of the Company's assets. However, the ratings are constrained by the Company’s moderate profitability and the intense competition in the segment of non-subsidized housing finance.

2

The Company will deliver an Annual Rating for each classification of Debt Securities and / or Sukuk to OJK no later than 10 (ten) business days after the expiry of the latest rating until the Company has completed all obligations related to the Debt Securities and / or Sukuk issued. The rating agency in this public offering is not a party affiliated with the company either directly or indirectly, as defined in the Capital Market Law. For further information please refer to Supplementary Information Chapter XI on Bond Information. TRUSTEE

In accordance with the provisions of the Trustee Agreement, The Trustee is PT Bank Mega Tbk, who is located at:

EVENT OF NEGLIGENCE

PT BANK MEGA Tbk. Menara Bank Mega. Lantai 16 Jalan Kapten Tendean No. 12-14 A Jakarta 12790 Telephone : (021) 79175000 Fax : (021) 7990720 Email : [email protected] Website : www.bankmega.com Up. : Capital Market Service

Article 9 of Bond Trustee Agreement, specifies that the definition of negligence is when the Trustee declares that incidences of Company negligence have occurred for one or more matters as mentioned in the article. Further explanation related to events of negligence can be found in Supplementary Information Chapter XI on Bond Information. PROCEDURES FOR BOND REDEMPTION AND INTEREST PAYMENTS

Bond redemption and interest payments will be paid by KSEI as the Payment Agent on behalf of the Company, in accordance with the terms and conditions set forth in the Payment Agent Agreement to the Bondholders through the Account Holder, in accordance with the Bond redemption and interest payments time schedule as specified. If the payment date falls on a day that is not a trading day, the payment will be made on the next working day. TAX

Taxation is outlined in Supplementary Information Chapter VIII. USE OF PROCEEDS OBTAINED FROM BOND PUBLIC OFFERING The funds obtained from this bond issuance net of issuance costs, are to be used by the Company as a source of mortgage financing.

3

STATEMENT OF DEBTS The statement of debts is taken from the unaudited financial statements of the Company as of June 30, 2016. As of June 30, 2016 the Company recorded total liabilities of Rp. 171,966,707 million with the following details: (in million Rupiah)

Description

Total

Current Liabilities Deposits from customers: Demand Deposits Wadiah Demand Deposits Savings Deposits Wadiah and Mudharabah Savings Deposits Time Deposits Mudharabah Time Deposits Deposits From Other Bank Securities sold under repurchase agreements Securities issued Fund borrowings Subordinated Loan Interest payable Deferred tax liabilities - net Other liabilities Total Liabilities

1,895,370

30,842,728 2,281,778 27,549,678 1,255,693 63,119,649 9,453,730 6,619,472 3,529,564 12,279,313 5,698,451 2,999,018 362,685 38,126 4,041,452 171,966,707

ADDITIONAL INFORMATION ABOUT THE COMPANY 1.

2.

Articles of Association

Amendments to the Company’s Articles of Association that occurred after the Prospectus PUB II Phase I were based on the General Meeting of Shareholders Deed No. 40 dated April 12, 2016 made before Fathiah Helmi, SH, Notary in Jakarta as well as notification of the changes to its Articles of Association having been accepted by the Ministry of Justice and Human Rights of the Republic of Indonesia - Directorate General of Legal Administration under No.AHU-AH.01.03-0039336 on April 12, 2016 and as registered in the Company Register No.AHU0045615.AH.01.11.TAHUN 2016 dated April 12, 2016 ("PKR Deed 40/2016") which contained changes to article 4 paragraph 2 and 3 of the Articles of Association regarding the Company’s issued and paid up capital. Company Shareholders

The Company's capital structure and shareholders at the Supplementary Information date, based on the Shareholders’ Annual General Meeting of PT Bank Tabungan Negara Tbk abbreviated to PT Bank BTN (Persero) Tbk Deed No. 51 dated March 24, 2015 made before Fathiah Helmi, SH, Notary in Jakarta as well as notification of the changes to its Articles of Association having been accepted by the Ministry of Justice and Human Rights of the Republic of Indonesia - Directorate General of Legal Administration under No.AHU-AH.01.03-0926094 on April 21, 2015 and as registered in the Company Register No.AHU-3495340.AH.01.11 2015 on April 21, 2015 together with PKR Deed 40/2016, are as follows: a. b. c.

Authorized Capital of the Company amounting to Rp.10,239,216,000,000 divided into 20,478,432,000 shares, consisting of: i. 1 seri A Dwiwarna share with a nominal value of Rp.500; ii. 20,478,431,999 seri B shares with a total nominal value of Rp.10,239,215,999,500, with an individual nominal share value of Rp.500. Issued Capital of the Company amounting to Rp.5,295,000,000,000 divided into 10,590,000,000 shares, consisting of: i. 1 seri A Dwiwarna share with a total nominal value of Rp.500; ii. 10,589,999,999 seri B shares with a total nominal value of Rp.5,294,999,999,500 Paid-up Capital of the Company amounting to Rp.5,295,000,000,000 divided into 10,590,000,000 shares, consisting of: i. 1 seri A Dwiwarna share with a total nominal value of Rp.500; ii. 10,589,999,999 seri B shares with a total nominal value of Rp.5,294,999,999,500

4

The Company's shareholders are as follows: Name Republic of Indonesia Public Total

Shares in Portfolio

Shareholding 1 seri A Dwiwarna Share 6,353,999,999 seri B Shares 4,236,000,000 seri B Shares 1 seri A Dwiwarna Shares 10,589,999,999 seri B Shares 9,888,432,000 seri B Shares

Total Nominal Value (Rp) 500 3,176,999,999,500 2,118,000,000,000 500 5,294,999,999,500 4,944,216,000,000

% 60.00

40.00 100.00

The composition of the shareholders at the date of this published Supplementary Information, is based on the Register of Shareholders issued by PT Datindo Entrycom as the Share Registrar, on June 30, 2016, as follows: Name Republic of Indonesia Public Total

Shares in Portfolio

Shareholding 1 seri A Dwiwarna Share 6,353,999,999 seri B Shares 4,236,000,000 seri B Shares 1 seri A Dwiwarna Shares 10,589,999,999 seri B Shares 9,888,432,000 seri B Shares

Total Nominal Value (Rp) * 500 3,176,999,999,500 2,118,000,000,000 500 5,294,999,999,500 4,944,216,000,000

% 60.00

40.00 100.00

Explanation * The nominal value of stock Rp.500 (five hundred Rupiah) is as specified in Article 4 of the Company’s Articles of Association as set forth in the PKR 51/2015 Deed; ** Based on the PKR 40/2016 Deed there was an increase in the issued and paid-up capital of the Company amounting to Rp.3,827,500,000, paid with cash, as a result of the Management Stock Option Plan (MESOP) implementation.

3.

Board of Directors and Board of Commissioners composition

The legitimate composition of the Board of Directors and Board of Commissioners on the published date of this Supplementary Information is based on the General Meeting of Shareholders and Extraordinary General Meeting of Shareholders Deed No. 42 dated April 12, 2016 made before Fathiah Helmi, SH, Notary in Jakarta, the Company's notification of changes has been received by the Ministry of Justice and Human Rights of the Republic of Indonesia - Directorate General of Legal Administration under No. AHU-AH.01.03-0047122 dated May 4, 2016 as registered in the Company Register under No. AHU-0057587. AH.01.11. TAHUN 2016 dated May 4, 2016 ("PKR Deed 42/2016"), and the Board of Directors and Board of Commissioners are as follows: Board of Directors:

President Director Director Director Director Director Director Director Director

Board of Commissioners:

: : : : : : : :

Maryono; Mansyur Syamsuri Nasution; Iman Nugroho Soeko; Adi Setianto; Sulis Usdoko; Oni Febriarto Rahardjo; Handayani;*) Catur Budi Harto.*)

President Commissioner/Independent Commissioner Independent Commissioner Independent Commissioner Independent Commissioner Commissioner Commissioner Commissioner

:

I Wayan Agus Mertayasa; Kamaruddin Sjam; Arie Coerniadi; Lucky Fathul Aziz Hadibrata; **) Sumiyati; Maurin Sitorus; Iman Sugema.*)

: : : : :

Explanation *) The appointment of Handayani and Catur Budi Harto as Directors and Iman Sugema as Commissioner of the Company will become effective upon approval from Otoritas Jasa Keuangan on fit and proper test and in compliance with the prevailing regulations. **) The appointment of Lucky Fathul Aziz Hadibrata as an Independent Commissioner of the Company will become effective upon approval from Otoritas Jasa Keuangan on fit and proper test and in compliance with the prevailing regulations.

4.

Audit Committee To comply with Capital Market Supervisory Agency provisions No.IX.I.5, Bapepam Chairman Decree No.29 / PM / 2004 dated September 24, 2004 regarding the Audit Committee Establishment and Implementation, and Bank Indonesia Regulation No.8 / 4 / PBI / 2006 dated January 30, 2006, and Bank Indonesia Regulation No.8 / 14 / PBI / 2006 dated October 5, 2006 regarding the Implementation of Good Corporate Governance for Commercial Banks, the Company has established an audit committee based on the Board of Commissioners’ letter no. 50 / KOM / BTN / IV / 5

2016 dated April 25, 2016 and the Board of Directors’ Decree No.161 / DIR / 2016 dated April 25, 2016, and the composition of the Audit Committee at the date of this Supplementary Information is as follows Position Chairman Member Member Member Member Member 5.

7.

8.

Name Kamaruddin Sjam; I Wayan Agus Mertayasa; Sumiyati; Waldy Gutama; Sondang Gayatri; Deddy Effendy Ridwan.

The Nomination and Remuneration Committee

The Company has a Nomination and Remuneration Committee as required by Otoritas Jasa Keuangan Regulation No.34 / POJK.04 / 2014 dated December 8, 2014 regarding the Nomination and Remuneration Committee of Issuers or Public Companies as well as in compliance with Bank Indonesia Regulation No.8 / 4 / PBI / 2006 dated January 30, 2006 as amended by PBI No.8 / 14 / PBI / 2006 dated October 5, 2006 regarding Implementation of Good Corporate Governance for Commercial Banks. The composition of the Company's Nomination and Remuneration Committee is based on the Board of Directors’ Decree 163 / DIR / 2016 dated April 25, 2016, as follows: Chairman Member Member Member Member ex-officio

6.

: : : : : :

: I Wayan Agus Mertayasa; : Lucky Fathul Aziz Hadibrata; : Arie Coerniadi; : Rudolf Tulus Sirait; : Arief Pramuhanto

Risk Monitoring Committee

Based on the Board of Commissioners’ letter No. 50/KOM/BTN/IV/2016 dated April 25, 2016 and the Board of Directors’ Decree No. 162/DIR/2016 dated April 25, 2016, the Company has formed a Risk Monitoring Committee in compliance with BI Regulation No. 5/8/PBI/2003 dated May 19, 2003 regarding Risk Management for Commercial Banks as amended by PBI No. 11/25/PBI/2009 dated July 1, 2009, and 8/4/PBI/2006 dated January 30, 2006 as amended by No. 8/14/PBI/2006 dated October 5, 2006 regarding the Implementation of Good Corporate Governance for Commercial Banks, and Bank Indonesia Circular Letter No. 5/21/DPNP dated 29 September 2003. The composition of the Risk Monitoring Committee of the Company at the date of this Supplementary Information is as follows: Position Chairman Member Member Member Member

Audit Charter and Internal Audit

: : : : :

Name Arie Coerniadi; Lucky Fathul Aziz Hadibrata; I Wayan Agus Mertayasa; Mohamad Helmy; Nurani Raswindriati.

The Company has an internal audit charter as required under the provisions of Otoritas Jasa Keuangan Regulation No. 56/POJK.04/2015 dated December 23, 2015 on the Establishment and Guidelines for Preparation of the Internal Audit Charter, and on the basis of the Board of Commissioners’ Joint Decree No. 02/DEKOM-BTN/2013 and the Board of Directors’ No. SKB-02/DIR-BTN/2013 dated December 18, 2013 regarding the Internal Audit Charter, together with the Board of Commissioners’ Joint Decree No. 02 02/DEKOM-BTN/2016 and the Board of Directors’ No. SKB-02/DIR-BTN/2016 dated July 18, 2016 on the Amendment to the Joint Decree No. 02/DEKOM-BTN/2013 and the Board of Directors’ No. SKB-02/DIR-BTN/2013. The Board of Directors, based on Decree 157/DIR/2016 dated April 6, 2016, appointed Adi Atmadja Suharto as head of the Internal Audit Unit. Compliance Director

In compliance with Bank Indonesia Regulation No. 1/6/PBI/1999 dated September 20, 1999 regarding the Assignment of a Compliance Director and the Implementation of Internal Audit Standards for Commercial Banks, and in conjunction with Bank Indonesia Regulation No. 13/2/PBI/2011 dated January 12, 2011 regarding the Implementation of the Compliance Function in Commercial Banks, the Board of Directors appointed Syamsuri Mansyur Nasution to serve as Director in charge of the Compliance Function, and this was reported to OJK - Department of Licensing and Banking Information, via the Company's letter No. 238/DIR/CSD/IV/ 2016 dated April 20, 2016 regarding Submission of Compliance Director for PT Bank Tabungan Negara (Persero) Tbk.

6

9.

Sharia Supervisory Board

Based on the Board of Directors’ Decree No. 166/DIR/2010 dated July 19, 2010 and the of the MUI National Islamic Council Letter No. U-330/DSNMUI/X/2013 dated October 3, 2013 and the Board of Directors’ Decree No. 927/DIR/2013 dated December 27, 2013, and the Board of Directors’ Decree No. 379/DIR/2015 dated June 30, 2015, the composition of the Sharia Supervisory Board of the Company is: Chairman Member Member

: Drs. H. A. Nazri Adlani : Drs. H. Moh. Hidayat, MBA. MBL.

: Ir. H. Muhammad Syakir Sula, AAIJ, FIIS, QIP

10. Significant Company Agreements

a. Credit Agreement of Private Parties

An agreement was made with PT Bank Central Asia Tbk, based on Credit Agreement Deed No. 09 dated December 7, 2011, made before Siti Rayhana, SH, Notary in the Tangerang District, and an Amendment of the above Credit Agreement No. 311/Add-KCK/2013 dated December 16, 2013, and an Amendment to the above Credit Agreement No. 055/Add-KCK/2016 dated March 7, 2016 , and an Amendment to the above Credit Agreement No. 27 dated June 28, 2016, made before Siti Rayhana, SH, Notary in the Tangerang Regency. The two Non-Revolving Time Loan Facilities consists of: - Time Loan Facility I for Rp. 1,000,000,000,000 (one trillion Rupiah), with an interest rate of 9.25%, which is valid until December 7, 2016; - Time Loan Facility II for Rp. 1,000,000,000,000 (one trillion Rupiah), with an interest rate of 7.75%, which is valid until June 28, 2017; This facility will be distributed by the Company for Home Loan facilities for consumers

b. Agreements with Other Parties

PT Sarana Multigriya Finansial (Persero) - Based on a Lending Agreement For Mortgage Financing (KPR) No. 008/PP/SMF-BTN/II/2016 dated February 19, 2016, SMF provides refinancing of mortgages disbursed by BTN for a total of Rp. 1,000 billion with 9.15% interest per year valid for a period of one (1) year from the date of implementation of the disbursement of the loan facility. - Based on a Subordinated Loan Agreement for Mortgage Financing (KPR) No. 018/PP/SMF-BTN/V/2016 dated May 26, 2016, SMF provides a loan to be disbursed as housing loans by the Company to support the 1 million homes program (KPR), in compliance with the applicable rules and regulations, for an amount of Rp. 3,000 billion with 9% interest per year valid for a period of 5 (five) years from the execution date of disbursement of the loan facility. The Company has no liabilities to third parties binding the Company with requirements that may be detrimental to bondholders (negative covenants).

11. Legal Matters Currently Faced by the Company

As of the issuance of this Additional Information, the Company is not currently involved as a party in cases related to state administration, arbitration, tax and cases of bankruptcy, but the Company is involved in several civil cases either as defendant or co-defendant, in the branch offices of the Company , At the date of the Prospectus the Company is involved in 15 civil cases and 1 industrial relations case that are in progress in the judiciary in Indonesia, with information about the cases can described as follows: 1. Civil Cases No

Case No.

1

97/Pdt.G/2014/PN.Bks

Company Position Defendant

Counterparty

Case Material

2

175/PDT.G/2014/MLG

Defendant 2

Rosuli Hambali

PMH

3 4 5 6 7

205/Pdt.G/2013/PN.JktPst 28/Pdt.G/2012/PN.BB 672/Pdt.G/2011/PN.Jkt.Sel 03/Pdt.G/2015/PN.Bpp 328/Pdt.G/2012/PA.Btl

Defendant Defendant Defendant Defendant Defendant I

PMH PMH PMH PMH PMH

8

14/Pdt.G/2013/PN WT

Defendant 1

PMH

Rp 100,000,000

Cassation

9

257/Pdt G/2016/PN.TNG

Defendant 1

Arifah Soeryono Meddy Marcella Mamesah Prof Dr Soebagio Rahayu Juairiya P-I: Budi Legowo,SP P-II : Akhadina N P-I: Budi Legowo,SP P-II : Akhadina N Andre Iskandar

Material Rp. 15,000,000,000 Immaterial Rp.20,000,000,000 Material Rp. 86,000,000 Immaterial Rp.5,000,000,000 Rp 40,000,000,000 None Rp 750,000,000 Rp. 600,000,000 Rp 400,000,000

PMH

Rp.150,000,000

Under Appeal

M. Sardi Prasetio, MBA

PMH

7

Case Value

Case Status Under Appeal Under Appeal Cassation Cassation Cassation Level I Cassation

10

126/Pdt.G/2015/PN.Smn

11 12 13

48/Pdt.G/2015/PN.Sgm 24/Pdt.G/2014/PN. Sgm 43/PDT.G/2016/PN.JKT. TMR 283/PDT.G/2014/PN.JKT.TM 53/PDT.G/2014/PN.BGR

14 15

* PMH = Unlawful Action

PMH

Rp.650,000,000

Defendant 1 Defendant 1 Defendant 1

Teodora Ratna Miranti alias Ny Andreas Mestoko Mahdie dr. Hj. Hasibah Q. Daud Sitti Mutiara Eko Retno Pujiastuti DKK

Level I

PMH PMH PMH

Rp. 3,669,025,628 Rp.130,697,750 Rp.1,400,000,000

Level I Under Appeal Level I

Defendant 1 Defendant 1

Musliha Eti Mulyati

PMH PMH

Rp.9,000,000,000 Rp.725,000,000

Under Appeal Cassation

2. Industrial Relations Case No 1

Case No.

Company Position Defendant

48/Pdt.Sus-PHI/G/2014/ PN.Smg

Counterparty

Case Material

Dicky Usriyanto

Employment Termination

Case Value

Case Status

None

Level I

The cases faced by the Company are based on the lawsuit claim and do not have any significantly negative / material effect on the Company's business continuity. The Company has never received subpoenas from any third party which could potentially involve the Company in any case that would have a material impact on business viability and wealth. FINANCIAL HIGHLIGHTS Statement of Financial Position Description

ASSETS Cash Current Accounts with Bank Indonesia Current Accounts with other Banks– net Placements with Bank Indonesia and other Banks – net Securities- net Government Bonds Interest Rate Swaps – net Loans – net Sharia Financing/Receivables – net Deferred Tax Assets – net Fixed Assets – net Interest Receivable Other Assets Total Assets LIABILITIES AND EQUITY LIABILITIES Current Liabilities Deposits From Customers Deposits From Other Bank Securities sold under repurchase agreements Securities issued - net Fund Borrowings Subordinated Loan Interest Payable Deferred Tax Liabilities - net Estimated losses on commitments and contingencies Other Liabilities Total Liabilities

2015

2014*

1,181,219

920,482

December 31 2013* 924,451

2012 694,941

2011 512,399

2016

June 30

1,288,005

2015 951,108

10,986,351

9,371,509

9,858.758

7,297,835

5,261,418

10,100,585

10,006,784

7,839,477

1,496,455

4,839,268

11,466,296

9,777,564

8,730,000

2,186,100

7,951,367

5,808,257

201,361

1,093,393

400,215

1,807,561 8,230,908 126,006,434

5,436,970 8,238,065 104,905,865

4,201,682 8,384,960 91,378,847

1,553,401 1,548,489 1,553,599 171,807,592.

1,488,383 1,183,489 1,007,989 144,582,353

1.960,789 127,708,670 1,721,198 12,492,202 7,726,728

10,898,792

2,135,091

357,364 9,566

-

3,835,877 157,947,485

161,993

208,252

293,588

294,876

1,013,796 7,468,930 74,621,792

733,953 7,106,814 58,533,169

4,540,124 9,231,619 135,108,693

5,537,689 8,615,527 42 114,447,379

1,522,724 923,688 783,770 131,169,730

1,582,812 871,985 759,956 111,748,593

58,188 1,497,455 718,892 626,938 89,121,459

4,646,678 1,713,693 1,730,472 189,513,352

1,475,901 1,311,385 1,214,547 155,951,940

1,835,807 106,470,677 1,179,269

1,284,306 96,207,622 275,257

1,201,499 80,667,983 706,703

1,017,008 61,970,015 792,970

1,895,370 134,503,256 6,619,472

2,000,981 114,709,671 3,023,083

8,519,884 6,998,213

8,836,711 7,073,032

7,136,776 6,737,260

5,438,382 5,695,307 173,587 -

12,279,313 5,698,451 2,999,018 362,685 38,126

10,754,344 6,096,531 282,108 223,838

2,258,809 81,799,816

4,041,452 171,966,707

3,410,490 143,193,798

9,439,753

3,817,603

308,996 115,260

7,198

3,076,551 132,329,458

2,652,730

241,370 121,139 6,469

2,877,737 119,576,373

8

2,335,000

193,280 45,009

4,403

2,441,809 101,469,722

4,086,417

4,450,494

3,244

12,129,895

3,529,564

-

9,910,602

2,685,000

7,752

EQUITY Issued and Fully Paid Capital Additional Paid-In Capital Stock Options Unrealized Gains (losses) on available for sale Securities and Government Bonds – net Loss from remeasurement on Defined Benefit Plan – net of deferred tax Gain of Revaluation of Fixed Assets Appropriated Retained Earnings Unappropriated Retained Earnings (deficit) Total Equity Total Liabilities and Equity

5,291,173

5,283,848

5,282,427

5,178,220

4,417,985

(133,690)

(90,013)

(90,046)

29,058

35,181

(106,144)

(110,251)

(85,362)

-

-

2,046,598 2,690

2,028,136 9,483

4,751,833

3,859,360

2,007,647

13,860,107

171,807,592

2,025,764 10,600

1,793,503 103,054

2,765,847

1,272,332

1,811,074

1,684,127

12,252,895

11,593,357

144,582,353

1,157,372

111,748,593

89,121,459

*) Financial statements restatement upon adoption of initial PSAK 24 (revised 2013) and effect of PSAK 102 (revised 2013).

7,321,643

5,283,860

2,054,454 -

2,028,167 9,471

(89,200)

916,587

1,363,962

10,278,871

131,169,730

5,295,000

734,359 60,159

(109,938)

(112,174)

(155,280)

2,966,991

-

6,232,559

1,199,015

17,546,645

189,513,352

3,859,360

1,842,502

12,758,142

155,951,940

Statements of Profit or Loss and Other Comprehensive Income Description

Interest income and income from profit sharing Interest and bonus expenses Interest income and Income from profit sharing – net Other Operating Income Provision for Impairment Losses on Financial and Non-Financial Assets Reversal (provision) for impairment losses on commitments and contingencies Other Operating Expenses Income From Operations Non-operating Income (expense)– net Income before Tax Expense Tax Benefits (expenses) Current Deferred Income For The Year Other Comprehensive Income (Expense) Comprehensive Income for the Year Earnings per share (full amount)

2015

2014*

14,966,209

12,807,328

December 31 2013* 10,782,877

2012

8,818,579

2011

7,556,104

2016

June 30

8,120,376

2015

7,606,818

(8,155,133)

(7,342,747)

(5,129,554)

(4,091,760)

(3,770,231)

(4,476,644)

(3,904,365)

1,106,526

894,820

763,983

571,494

512,017

583,923

515,910

6,811,076

5,464,581

5,653,323

4,726,819

3,785,873

3,643,732

(901,008)

(771,166)

(430,289)

(212,624)

(109,562)

7,198

(729)

(2,066)

(1,159)

57,538

(4,490,187) 2,533,605

(4,010,139) 1,577,367

(3,849,042) 2,135,909

(3,213,561) 1,870,969

(2,720,117) 1,525,749

(2,535,486) 1,385,083

(2,252,568) 1,150,679

2,541,886

1,579,327

2,140,771

1,863,202

1,522,260

1,382,327

1,163,087

(24,856)

(119,104)

(6,123)

(92,460)

3,005,451

(28,204)

8,281

1,960

4,862

(392,729) (106,511) 1,363,962

(3,489)

(392,836) (10,763) 1,118,661

(268,562) (554)

(2,756)

(340,536) 484 1,042,275

12,348

(783,483) 92,504 1,850,907

(431,767) (1,988) 1,145,572

1,811,337

1,120,716

1,443,057

1,357,839

1,026,201

4,047,726

802,953

175

108

148

148

127

98

79

2012

2011

(39,570)

(431,779) (146,831) 1,562,161

(7,767)

(307,086)

3,156,453

(292,574) (39,296) 831,157

*) Financial statements restatement upon adoption of initial PSAK 24 (revised 2013) and effect of PSAK 102 (revised 2013).

Growth and Financial Ratios Description

Growth Ratios Interest income and profit sharing - net Operating Income Income For The Year Total Assets Total Liabilities

2015 24.64 60.62 61.57 18.83 19.36

2014

December 31 2013

(3.34)

19.60

(26.15) (26.67) 10.23 10.67

14.16 14.53 17.38 17.84 9

24.85 22.63 21.93 25.39 24.05

12.85 20.74 22.13 30.32 32.07

June 30 2016 2015 6.75

19.06

20.37 25.40 21.52 20.09

54.93 54.25 14.99 15.47

Total Equity Capital CAR for credit risk and operational risk CAR for credit risk, operational risk and market risk Fixed Assets to Capital Earning Assets Non Performing Earning Assets NPL – net**) NPL – gross*) Profitability ROA ROE NIM Operating Expenses to Operating Income (BOPO) Liquidity LDR Compliance Percentage of BMPK violations Percentage of BMPK exceedances GWM Conventional Rupiah Primary Secondary US Dollar Sharia Rupiah PDN

13.12 17.01 16.97 11.21 3.20 2.11 3.42

5.69

12.79

14.68

15.69

14.64

15.62

12.15

13.13

3.57 2.76 4.01

3.60 3.04 4.05

40.39 17.75 17.69 15.40 3.68 3.12 4.09

13.56 15.08 15.03 20.45 2.44 2.23 2.75

37.53

9.81

22.16

14.86

22.07

14.78

26.48

11.56

3.13 2.23 3.41

4.22 3.37 4.70

1.61 16.84 4.87 84.83

1.14 10.95 4.47 88.97

1.79 16.05 5.44 82.19

1.94 18.23 5.83 80.74

2.03 17.65 5.76 81.75

1.54 16.22 4.65 84.72

1.55 15.62 4.72 85.40

108.78

108.86

104.42

100.90

102.56

110.97

109.94

-

-

-

8.20 2.50 8.02 6.50 1.73

6.57 5.95 9.32 5.10 1.60

8.04 5.21 8.09 5.01 1.97

7.95 5.21 8.08 5.04 1.74

-

-

8.09 7.85 8.39 5.09 1.92

-

9.29 9.07 8.03 8.10 1.07

8.15 2.50 8.03 8.00 0.70

BOND UNDERWRITING In accordance with the terms and conditions set forth in the Bond Underwriting Agreement for Shelf Registration Bond II Bank BTN Phase II Year 2016 No. 18 dated August 9, 2016 the Bond Underwriters listed below have agreed to offer to the Public an undertaking for the full commitment for each part and bind themselves to buy any bonds not sold in the Shelf Registration Bond Ii Bank BTN Phase II Year 2016 Public Offering amounting to Rp 3.000.000.000.000,- (three trillion Rupiah) on the closing date of the Offering Period.

This Bond Underwriting Agreement represents the complete agreement and replaces all agreements that may have been made before and there will be no other agreement made by the parties afterwards, the content of which would be contrary to this Bond Underwriting Agreement. The structure and portion, as well as the percentage, for the Syndicated Bond Underwriting is as follows: No.

1. 2. 3. 4

Joint Lead Underwriters

PT BCA Sekuritas PT CIMB Securities Indonesia PT Danareksa Sekuritas (terafiliasi) PT Trimegah Sekuritas Indonesia Tbk (d/h PT Trimegah Securities Tbk) Total

Underwriting Portion (Rp.) A Series B Series 601,000,000,000 149,000,000,000 321,000,000,000 429,000,000,000 181,000,000,000 569,000,000,000 244,000,000,000 506,000,000,000 1,347,000,000,000

1,653,000,000,000

Total (Rp)

(%)

750,000,000,000 750,000,000,000 750,000,000,000 750,000,000,000

25 25 25 25

3,000,000,000,000

100

Furthermore the Joint Lead Underwriters who are participating in this Bond Underwriting Agreement have agreed to carry out their duties in accordance with Regulation No. IX.A.7, Attachment to the Decision of the Chairman of Bapepam No. Kep-691 / BL / 2011 dated December 30, 2011 regarding Subscription and Allotment of Securities in Public Offerings Based on Republic of Indonesia Law No. 8 of 1995 dated November 10, 1995 on Capital Market an Affiliate is: 1. 2. 3. 4. 5. 6.

A family relationship by marriage and descent to the second degree, both horizontally and vertically; A relationship between parties and employees, directors or trustees; A relationship between two (2) companies where there are one or more members of the Board of Directors or the Board of Commissioners; A relationship between the company and parties directly or indirectly controlling, controlled, or under the control of the company; A relationship between two (2) companies controlled either directly or indirectly by the same party; or A relationship between the company and the Major Shareholders.

The Republic of Indonesia owns 2,800,000 (two million eight hundred thousand) shares or 100% (one hundred percent) of the issued and fully paid-up shares in PT Danareksa (Persero), while PT Danareksa (Persero) Tbk has 499,999,000 (four hundred and ninety-nine million nine hundred and ninety10

nine thousand) shares or 99.999% (ninety nine point nine hundred and ninety-nine percent) of the total issued and fully paid shares in PT Danareksa Sekuritas.

Thus PT Danareksa Sekuritas as a Bond Underwriter, is affiliated indirectly to the PT Bank Tabungan Negara (Persero) Tbk. through ownership by the Republic of Indonesia as defined in Capital Market Law whereas the Joint Lead Underwriters and Bond Underwriters, and Institutions and Capital Market Supporting Professionals in this Public Offering are not affiliated with the Company, either directly or indirectly, as defined in the Capital Market Law. BONDS SUBSCRIPTION TERMS 1.

ELIGIBLE SUBSCRIBERS

2.

BOND SUBSCRIPTION

3. 4. 5.

6.

7.

Indonesian citizens and foreign citizens, wherever they reside, as well as Indonesian business or entities or foreign institution, wherever they are domiciled, are entitled to buy the Bonds in accordance with the provisions of the local jurisdiction. Bond purchase orders must be submitted by using the Bond Subscription Forms ("FPPO"), printed for this purpose, which can be obtained at the Bond Underwriters’ offices as contained in Supplementary Information Chapter XIV and any purchase orders submitted can not be canceled by the customer. Bond Purchase Orders not in accordance with the provisions stated above will not be accepted. MINIMUM SUBSCRIPTION

Bond purchase orders must be for at least Rp 5,000,000 (five million Rupiah) or multiples thereof. PUBLIC OFFERING PERIOD

The Bond Public Offering Period will be August 23, 2016 beginning at 09:00 pm and will close on August 25, 2016 at 16.00 WIB. SUBMISSION TIME FOR BOND SUBSCRIPTION

Before the Bond Public Offering Period is closed, the buyer must make a Bond purchase order by submitting an FPPO during the applicable working hours of the designated Bond Underwriters as contained in Supplementary Information Chapter XII, at the place where the subscriber obtained the Supplementary Information and FPPO. EVIDENCE OF BOND SUBSCRIPTION

The Bond Underwriter who accepted the Bond purchase order will return 1 (one) signed copy of the FPPO as a receipt for the Bond subscription. The Bond Subscription receipt is not a guarantee for the fullfillment of the order. BOND ALLOTMENT

If there is an over-subscription, an allotment will be carried out in accordance with Regulation No. IX.A.7, Attachment to the Decision of Chairman of The Bapepam No. Kep-691 / BL / 2011 dated December 30, 2011 regarding Subscription and Allotment of Securities in Public Offerings. The allotment will be conducted on August 26, 2016.

In the event of an over subscription and proof that certain persons filed more than one subscription form for the public offering, either directly or indirectly, therefore for the allotment purpose, the allotment managers will only include one subscription form, which was the first proposed by the subscriber concerned. The Bond Underwriters will submit a Public Offering results report to OJK no later than five (5) Business Days after the Allotment Date as stipulated in Bapepam-LK No. IX.A.2 and OJK Regulation No. 36 / POJK.04 / 2014 on Sustainable Public Offering of Debt Securities and / or Sukuk.

8.

The Allotment Manager, in this case, PT CIMB Securities Indonesia, will deliver an Accountant’s Examination Report to OJK regarding the fairness of the implementation of the allotment based on Bapepam regulation No.VIII.G.12, Bapepam Chairman Decision No. KEP-17/PM/2004 regarding Accountant Examination Guidelines On Booking and Allotment or Distribution of Bonus Shares and Bapepam No.IX.A.7, Bapepam Chairman Decision and LK No. KEP-691/BL/2011 regarding Subscription and Allotment of Securities in Public Offering, no later than 30 (thirty) days after the expiration of the public offering. PAYMENT OF BOND SUBSCRIPTION

After receiving notification of the bond allotment result, the buyers must immediately make payment, in cash or by transfer, addressed to the Bond Underwriters, PT BCA Sekuritas, PT CIMB Securities Indonesia, PT Danareksa Sekuritas and PT Trimegah Securities Tbk, at the latest on August 29, 2016 (in good funds) to the accounts below:

11

9.

Bank BCA Bank CIMB NIaga Bank Permata Bank BCA Korporasi Menara BCA Branch Graha Niaga Branch Sudirman Branch KH Mas Mansyur Branch Account No: Account No: Account No: Account No: 2050030256 146 0101 085 009 400-1763682 1793030308 In the name of : In the name of : In the name of : In the name of : PT BCA Sekuritas PT CIMB Securities Indonesia PT Danareksa Sekuritas PT Trimegah Securities Tbk All costs or bank fees or transfer fees shall be borne by the Buyer. Subscriptions will be canceled if payment terms are not fulfilled. ELECTRONIC DISTRIBUTION OF BONDS

Electronic distribution of the Bonds will be made on August 30, 2016, and the Company will issue Jumbo Bonds Certificates to be submitted to KSEI and instruct KSEI to credit the Bond Underwriter’s Accounts in KSEI. With the execution of this instruction, the bond distribution will be the sole responsibility of the Bond Underwriters and KSEI. Furthermore the Bond Underwriters will instruct KSEI to transfer the Bonds from the Bond Underwriter’s accounts to the Bond Underwriters’ securities accounts in accordance with the respective underwriting section. With the execution of the distribution of bonds to the Bond Underwriters, the liability for bond distribution is the sole responsibility of the respective Bond Underwriters.

10. BOND REGISTRATION IN COLLECTIVE CUSTODY

Bonds offered by the Company through the Public Offering have been registered through KSEI in accordance with the Bond Registration Agreement that has been signed by the Company with KSEI. With the bond being registered in KSEI, for the bonds offered the following provisions shall apply: a. The Company did not issue the bonds in the form of certificates except for the Jumbo Bond certificate, which is registered in the name of KSEI for the benefit of the Bondholders. The bonds will be administered electronically in the Collective Custody at KSEI. Furthermore the Bonds will be credited to the Securities Account no later than the issuance date August 30, 2016. KSEI will issue a written confirmation to the Securities Company or Custodian Bank as evidence of Bond registration in the Securities Account in KSEI. The written confirmation constitutes legal evidence of ownership for Bond registration in the Securities Account; b. Assignment of ownership of bonds will be made by transfer between Securities Accounts in KSEI, which will then be confirmed to the Account Holders; c. Bondholders registered in the Securities Account are entitled to payment of bond coupons, repayment of bond principal, to vote in the RUPO as well as other rights attached to the bonds; d. Coupon payments and bond principal repayments will be paid by KSEI as Paying Agent on behalf of the Company to the Bond Holders through the Securities Account in accordance with the coupon payments and bond principal repayments schedule as set out in the Company Trustee Agreement and / or the Paying Agent Agreement. The Bondholders holding coupons for the coupon payment periods in question are those whose names are registered in the Bondholders Register 4 (four) business days prior to the Coupon Payment Date, unless otherwise determined by KSEI. e. The right to attend the RUPO by the Bondholders will be by showing the original KTUR issued by KSEI to the Trustee. KSEI will freeze all bonds held in KSEI so that bonds may not be assigned / transferred from 3 (three) Business Days prior to the date of the RUPO (R-3) until the expiration date of the RUPO evidenced by notification of the Trustee. f. Parties who want to make a bond reservation shall open a Securities Account with the Securities Company or Custodian Bank that holds the KSEI Securities Account.

11. PUBLIC OFFERING CANCELLATION

The Bond Underwriter or the Company prior to the Effective Date, after consultation with the other parties, may terminate the Bond Underwriting Agreement if: a. The Company materially neglects to fulfill the terms and conditions of the Bond Underwriting Agreement, and which were not corrected within a period not later than three (3) calendar days after the date of occurrence of negligence, as stated in the written notice of negligence from the Bond Underwriter or if for any reason the Company is unable to perform its obligations under the Underwriting Agreement, or there have been significant changes that could harm (or a development that resulted in important changes which could harm) with respect to the business, property or financial condition of the Company that may affect significantly the quality of the Company’s bond investment. b. The Bond Underwriter materially neglects to fulfill the terms and conditions of the Bond Underwriting Agreement, and which were not corrected within a period not later than three (3) calendar days after the date of occurrence of negligence, as stated in the written notice of negligence from the Company or if for any reason the Bond Underwriter is unable to perform its obligations under the Underwriting Agreement. In the period between the Registration Statement becoming effective until the expiration of the Public Offering, the Company may defer the Public Offering for a period of 3 (three) months from the Registration Statement becoming effective or Public Offering cancellation, provided there are circumstances beyond the capability and power of the Company, namely :: a. The composite stock price index at the Stock Exchange falls more than 10% (ten percent) for 3 (three) consecutive Trading Days; b. Natural disasters, war, riot, fire, strikes that have a significant effect on the continuity of the Company's businesses; and / or c. Other events that significantly effect the Company's business continuity, as set by OJK based on the formula specified in Bapepam-LK No. IX.A.2.

In the event of the Public Offering being delayed due to reasons as referred to in Article 16.4.i of the Bond Underwriting Agreement, the Company will restart the Public Offering period no later than 8 (eight) business Days after the composite stock price index in the Stock Exchange increases by at least 50% ( fifty percent) of the total decline in the stock price index that formed the basis for the delay. 12

If there is a delay or cancellation of the Public Offering or termination of the Underwriting Agreement in accordance with Article 16 (except for the provisions of Article 16.1 f) the Underwriting Agreement, and: a. Bond subscription payments which have been received by the Bond Underwriters or the Joint Lead Underwriters or the Company, then the Bond Underwriters or the Joint Lead Underwriters or the Company is obliged to return the money to the buyer no later than two (2) business days after the announcement of the decision of delay or cancellation of the Public Offering or the expiration of the Underwriting Agreement; b. If the Bond subscription payments have been received by the Company, the Company is liable to refund payments through the KSEI, provided that the Company has received the proceeds from the Bond Underwriter thereby freeing the Joint Lead Underwriters and / or Bond Underwriter of any responsibilities; c. If there is delay, the party that caused the delay, namely the Joint Lead Underwriters and / or the Bond Underwriters or the Company shall pay the buyer a penalty for each day’s delay of 2% (two percent) above the Coupon rate per annum of the amount overdue. The above fines are calculated with the provisions that 1 (one) year is 360 (three hundred sixty) calendar days and 1 (one) month is 30 (thirty) calendar days. Fines will be imposed from day 3 (three) after the expiration of the Bond Underwriting Agreement and will be calculated on a daily basis. d. If the Bond subscription payment refund has been provided, but the buyer did not come to pick it up within 2 (two) business days after the date of the decision of postponement or cancellation of the Public Offering or the expiration of the Underwriting Agreement, the Company and / or the Joint Lead Underwriters and / or Bond Underwriters are not obligated to pay interest and / or penalties to the Bond buyers.

12. OTHERS

The Bond Underwriters reserve the right to accept or reject Bond purchase orders in whole or in part within the applicable provisions. INSTITUTIONS AND SUPPORTING PROFESSIONALS

Trustee Notary Legal Consultant

: PT Bank Mega Tbk : Ir. Nanette Cahyanie Handari Adi Warsito SH, : HKGM & Partners

All Capital Market Supporting Institutions and Professionals are not affiliated with the Company as defined in the Capital Market Law. PAYMENT AGENT PT Kustodian Sentral Efek Indonesia Gedung Bursa Efek Indonesia, Tower I, Lt. 5 Jl. Jend. Sudirman Kav. 52-53, Jakarta 12190 Tel.: (021) 5299-1099, Fax.: (021) 5299-1199 SUPPLEMENTARY INFORMATION DISSEMINATION AND BOND PURCHASE ORDER FORMS Additional information can be obtained at the following Joint Lead Underwriters’ offices: PT BCA SEKURITAS

Menara BCA – Grand Indonesia Lantai 41 Jl. MH. Thamrin No. 1 Jakarta 10310 Tel. (021) 2358 7222 Fax. (021) 2358 7250

JOINT LEAD UNDERWRITERS

PT CIMB SECURITIES INDONESIA Gedung Bursa Efek Indonesia Tower II, Lantai 11 Jl. Jend. Sudirman Kav. 52-53 Jakarta 12190 Tel. : (021) 515-4660 Fax.: (021) 515-4661

PT DANAREKSA SEKURITAS (Affiliated) Gedung Danareksa Jl. Merdeka Selatan No.14 Jakarta 10110

Tel. (021) 2955 5777 Fax. (021) 350 1724/350 1725

PT TRIMEGAH SECURITIES TBK Gedung Artha Graha Lantai 18 & 19 Jl. Jend. Sudirman Kav. 52-53 Jakarta 12190 - Indonesia Tel. : (021) 2924-9088 Fax. : (021) 2924-9150

PROSPECTIVE INVESTORS ARE ENCOURAGED TO READ MORE ABOUT THE PUBLIC OFFERING CONTAINED IN THIS SUPPLEMENTARY INFORMATION

13