Sustainability Report 2013
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Bank BTN | Sustainability Report 2013
Table of Contents About the Report
2
Profile of Bank BTN
3
• Bank BTN at A Glance
3
• Vision and Mission
5
• Corporate Values
5
Report of the Board of Commissioners
6
Report of the Board of Directors
8
Management Strategy and Approach
10
• Sustainability Principles
10
• Governance Strategy
14
• Towards World Class Governance
14
• GCG Roadmap Pillars
15
• GCG Implementation Results
16
• Dividend Policy
19
• Social Responsibility
19
• Cost Allocation 2013
25
• Contributions to The Nation and Country
26
• Growing with Business Partners and Suppliers
26
• Moving Forward
26
• Enhancement of Products and Services
27
• Strengthen Other Assistance
28
• Responsibility to Customers
30
• Activities in 2013
33
Testimonials from MSME Partners
44
Sustainability Indicators
50
• Financial Indicators
50
• Non-Financial Indicators
51
• GCG Assessment
52
• Awards
53
Global Reporting Initiatives (GRI) Cross Reference
54
Your Opinion is So Meaningful
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Bank BTN | Sustainability Report 2013
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About the Report
Bank BTN has been present in the Indonesian community for more than 50 years. During that time Bank BTN continued being committed to realizing its vision, namely “Being the Leading Bank in Housing Finance”. To uphold this commitment, Bank BTN is always transparent by publishing a Sustainability Report every year together with the Annual Report. This Sustainability Report is the fourth 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. 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. Global Reporting Initiatives (GRI) 3.1 states that the goal of sustainable development is to meet the needs of the present without compromising the ability of future generations to meet their needs. As an important force in society, the organization in whatever form, has an important role in achieving this goal. Therefore, Bank BTN is determined to make sustainable development as the main development goal so that lofty ideals to make Bank BTN as the leading Bank in housing finance that is always a friend of Indonesian family towards world class banking company can soon materialize and eventually
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Bank BTN | Sustainability Report 2013
create a synergy with relevant parties and provide significant benefits to support the development of Indonesian economy. We strongly believe that the achievements that have been obtained today are the result of the implementation of strategy in prioritizing efforts of making sustainable contributions to the stakeholders in particular and the community in general. The contents of this Sustainability Report cover the social activities of Bank BTN within one year since January 1, 2013 until December 31, 2013. It can be said that this report in general reveals the performance and activities of Bank BTN in supporting sustainable development as well as closely associated with its social responsibility to customers, employees, suppliers, business partners, society, and the environment. Moreover, we can state that this Sustainability Report is tailored to the international standards that followed the rules of GRI 3.1. We show our steps headed to the standards through this report. This Sustainability Report is an integral part of the 2013 Annual Report of Bank BTN. Therefore, these two reports complement each other in representing ideas of our entire business and operational performance, as well as in relation to the future sustainability of the Bank. Thus, some repetitions could not be avoided because these two reports complement each other in representing the practices of corporate transparency principles in revealing the achievement of business performance and its relation to sustainable development in the future.
Profile of Bank BTN
BANK BTN AT A GLANCE Bank BTN (IDX: BBTN) is a public company and the market leader in the housing finance in Indonesia. Bank BTN has been trusted by the government as housing loan distributor since 1974, and has been established as a Company since 1897 (when it was named Postspaarbank). Since then, Bank BTN has been struggling to support the Indonesian family from all walks of life to have a good place to live. In line with the vision of Bank BTN to be the Leading Bank in Housing Finance, Bank BTN conducts business division of the Company into KPR and Consumer Banking, Housing
Bank BTN Network in 2013
and Commercial Banking, and Sharia Banking to provide a wider choice in serving customers in addition to the financing of housing that has been the commitment of Bank BTN since the beginning. As of December 31, 2013, Bank BTN has had a total of 3 Regional Offices, 65 branch offices, 223 sub-branch offices, 479 cash offices, 22 Sharia branch offices, 21 Sharia sub-branch offices, 7 Sharia cash offices, 2,922 Online Post Offices, 10 Mobil Cash Cars, 12 payment points, 1,504 ATMs, 13 CDMs, 10 Kiosk Machines throughout Indonesia, as well as providing network access over 80,000 ATMs Link, ATM Bersama, ATM Alto, ATM MEPS and ATM Prima.
Kalimantan Regional Office Branch Office
Sulawesi -
Regional Office
5
Branch Office
Papua & Maluku
5
Regional Office
-
Sub Branch Office
10
Sub Branch Office
13
Branch Office
3
Cash Office
18
Cash Office
18
Sub Branch Office
3
2
Sharia Outlet
Cash Office
2
Sharia Outlet Post Office ATM
299
Post Office
68
ATM
2 126
Sharia Outlet
80
-
Post Office
61
ATM
19
Sumatra Regional Office
1
Branch Office
11
Sub Branch Office
34
Cash Office
58
Sharia Outlet
6
Post Office
700
ATM
199
Jawa Regional Office Branch Office
2 38
Bali & Nusa Tenggara
Total Regional Office
Sub Branch Office
158
Regional Office
-
Cash Office
375
Branch Office
3
Sub Branch Office
Sharia Outlet
40
Sub Branch Office
5
Cash Office
Branch Office
Post Office
1,595
Cash Office
8
Sharia Outlet
ATM
1,101
Sharia Outlet
-
Post Office
Post Office ATM
141
ATM
2009
2010
2011
2012
-
1
2
3
2013 3
61
63
65
65
65
204
214
218
223
223
-
111
316
415
479
21
26
39
50
50
2,045
2,661
2,738
2,922
2,922
528
745
1,181
1,404
1,504
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Bank BTN | Sustainability Report 2013
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Company name
Company Incorporation Composition of Shareholders (as of December 31, 2012) Listing of Shares Type of Business Stock Code Public Accountants
Registrar of Securities
Rating Agency
Corporate Secretary
Investor Relations
Company Website Information Center Shareholders of Bank BTN
Annual General Meeting of Shareholders 2014
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Bank BTN | Sustainability Report 2013
PT Bank Tabungan Negara (Persero) Tbk Menara Bank BTN Jln. Gajah Mada No. 1 Jakarta 10130, Indonesia Phone : 62-21 6336789, 6332666 Fax : 62-21 6346704 Email :
[email protected] February 9, 1950 • The Government of Republic of Indonesia 60.14% • Employees 1.31% • Public 38.55% Indonesia Stock Exchange Commercial Bank BBTN Purwantono, Suherman & Surja Anggota Ernst & Young Global Gedung Bursa Efek Indonesia Tower 2 Lt. 7 Jln. Jend. Sudirman Kav 52 – 53, Jakarta 12190, Indonesia Phone : 62-21 5289 5000 Fax : 62-21 5289 4100 PT Datindo Entrycom Puri Datindo – Wisma Sudirman Jln. Jend. Sudirman Kav 34 –35, Jakarta 10220, Indonesia Phone : 62-21 570 9009 Fax : 62-21 570 9026 PT Pemeringkat Efek Indonesia (Pefindo) Setiabudi Atrium Suite 809 – 810 Jln. HR Rasuna Said Kav. 62 Jakarta 12920, Indonesia Phone : 62-21 521 0077 Fax : 62-21 521 0078 PT Fitch Ratings Indonesia Prudential Tower, lantai 20 Jln. Jenderal Sudirman Kav. 79 Jakarta 12910, Indonesia Phone : 62-21 5795 7755 Fax : 62-21 5795 7750 Viator Simbolon Menara Bank BTN Lantai 20 Jln. Gajah Mada No.1 Jakarta 10130, Indonesia Phone : 62-21 6336789, 6332666 Fax : 62-21 6336719 Eko Waluyo Menara Bank BTN Lantai 20 Jln. Gajah Mada No. 1 Jakarta 10130, Indonesia Phone : 62-21 638 70142, 638 70107 Fax : 62-21 638 70104 www.btn.co.id 500286 As of December 31, 2013, BBTN was owned by 9,463 shareholders, which consists of 9,255 domestic shareholders and 208 foreign shareholders The Annual General Meeting of Shareholders will be held on February 25, 2014 in Jakarta
VISION & MISSION VISION
To be a leading bank in housing finance MISSION
• • • •
Providing innovative products and services and superior services that focus on housing finance and savings Developing quality and high integrity human capital, and the implementation of Good Corporate Governance and Compliance Increasing competitive advantage through the latest Information Technology Concerning for the interests of society and the environment
CORPORATE VALUES Six Core Values •
Twelve Corporate Cultures
Service Excellence
Providing services that exceed customer expectations (internal and external). •
Innovation
Constantly developing new ideas and improvements to add value to the company •
ongoing
Exemplary Behavior
Starting with yourself, exemplary in behavior that reflects cultural work values of Bank BTN for employees and related parties •
Professionalism
Being competent in the field and continue to selfdevelopment resulting in the best performance and deliver added value for the company and all employees of Bank BTN. •
• • • • • • • • • • • •
Friendly and courteous Caring, proactive, and responsive Has initiative to make improvement Oriented to creating added value Being an example in behaving good and true Motivate the application of work culture values Competent and responsible Work smart and thorough Consistent and disciplined Honest and dedicated Sincere and open Mutual trust and respect
Integrity
Being consistent between thoughts, words and actions in accordance with the provisions of the company, professional code of conduct, and principles of commendable truth •
Cooperation
Building a genuine and open relationship with fellow employees of Bank BTN and other parties based on mutual trust and respect to achieve a common goal.
Advanced Culture Internalization Program 2013
2014–2015
Strengthening Bank BTN Culture Internalization Process • Prima pattern inherent to GCG implementation • Reappointment of GCG Champion • Creating GCG Scoreboard • Business ethics and work culture awareness program • Socialization of the application of good corporate governance principles • Socialization of Conflict of Interest • Assessment of Work Culture implementation • Program on evaluation and assessment of business ethics and work culture • Human Capital Management Prima Pattern • Implementation of Prima Pattern Award
Work Culture Transformation of Bank BTN •
Making work culture as a driver to improved performance of the company and review Rebranding as an initial process towards world class banking
Bank BTN | Sustainability Report 2013
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Report of the Board of Commissioners Sahala Lumban Gaol Commissioner
Dear Stakeholders, As good corporate citizens, the Board of Commissioner appreciated the efforts of Management to improve the welfare of society through the implementation of the Partnership and Community Development Program as outlined in the Bank BTN Sustainability Report 2013 that has become an integral part of the 2013 Annual Report. In this report, we presented various things done by Bank BTN in an effort to contribute on an ongoing basis (sustainable), not only for performance improvement of Bank BTN and services to customers, but, more than all these is the contribution of Bank BTN to building and increasing housing finance in Indonesia in general. Bank BTN management continually seeks to be at the forefront of efforts to support Indonesian community housing purposes, along with the success of the Nation in maintaining economic stability that can support the prospects of the
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Bank BTN | Sustainability Report 2013
Indonesian economy which is quite bright in the future. In addition, as a Public Bank which focuses on housing finance business segment, the management has been directing the company’s services to meet various housing finance supporting needs that are part of Bank BTN’s business in order to provide the best services to its customers. However, the management of Bank BTN will remain faithful to the root effort that has stuck solid as the largest housing loan provider Bank in Indonesia. The management and all employees of Bank BTN will retain these characteristics along with our efforts in improving non-residential loan services. Residential and non-residential housing business executed by the Management of Bank BTN is based on targets that have been established towards international quality. In general, the various targets of Bank BTN in 2013 as a series of the Bank’s road map
leading towards a world class company have been properly met. Therefore, Management and all ranks of Bank BTN are trying to continue contributing on an ongoing basis to customers, developers, community and all stakeholders by continuing to improve the quality of housing finance products and existing services systems. In distributing services, Bank BTN also prioritizes benefits for all parties and/or from all circles of society. We continue to provide facilities that facilitate the middle to lower income people to get a decent place to stay, in accordance with what has been entrusted by the government to Bank BTN. We are fully aware that the current achievement of Bank BTN is not inseparable from the contributions of all ranks of Bank BTN. Therefore, the management and all ranks of Bank BTN will continue to ensure that the various programs to appreciate and develop employees will continue to be improved. Performance evaluation at all levels continues to be refined with clear and fair reward and punishment system based on demonstrated performance. In addition, Bank BTN does not forget the importance of maintaining sustainable harmony with the community and surrounding environment. Management and all ranks of Bank BTN will
continue to provide the best services for micro, small, and medium enterprises and implement various programs that support the improvement and development of education, health, and environment through the BTN Harmony Program. One provision of Bank BTN in achieving worldclass quality and also for the sake of sustainability of Bank BTN efforts in the future is to establish good relations with the general public and the surrounding environment. Therefore, the management and all ranks of Bank BTN will continue to apply various strategies that have been established and maintain good relations with stakeholders. Bank BTN management also plans to conduct efficiency in business operations and continue to maintain capital adequacy in order to increase network capacity and coverage of Bank BTN in times to come. The Board of Commissioners believes, with hard work, professionalism, intelligence, and cooperation and harmonious relationship with all stakeholders that this can be done. Thus, Bank BTN can continue contribute on an ongoing basis to housing finance in particular and other areas in general, as well as continue increasing sustained contributions to this Nation and State that we dearly loved. Jakarta, December 31, 2013
Sahala Lumban Gaol Commissioner
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Report of the Board of Directors Maryono
President Director
Dear Stakeholders,
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We had been through 2013 with encouraging performance achievements. These achievements were gained nothing other than because of hard work of all ranks of Bank BTN in the implementation of various efforts and business strategies that have made sustainable business aspect as the most important factor.
Therefore, new knowledge and innovation in technology, management and public policy, is a challenge for all organizations in order to make new choices in carrying out their operations, production, services, and other activities, which would have an impact on the earth, humans, and the economy.
The main challenge of sustainable development is the demand for options and new ways of thinking innovatively. We are very aware of this and understand the importance of strategy to maintain the Bank’s sustainability. Global Reporting Initiatives (GRI) 3.1 state that the development of knowledge and technology is not only required to contribute to economic growth, but can also assist to solve problems related to risks and threats to the sustainability of our social, environmental, and economic relationships.
We again present our Sustainability Report to provide clear and transparent information to the stakeholders about our efforts that strives to continue to contribute to the customers, society, nation and country. We can say that this Sustainability Report has been compiled based on the GRI Reporting Framework to reveal outputs and outcomes that occurred in a particular reporting period in the context of organizational commitment, strategy, and approach of the Management of Bank BTN.
Bank BTN | Sustainability Report 2013
Through this report, all stakeholders will obtain information about the contribution of Bank BTN on an ongoing basis that we feel strongly supported the improved performance of Bank BTN in the long term where over the past few years had been proven consistently successful in improving net income growth with respect to implementation of various corporate strategies, including internet-based system, improved infrastructure, and efficiency in the control of lending and debt collection. Bank BTN has taken strategic steps through a transformation program to support the needs of customers. Bank BTN understands that housing needs cannot be separated from the needs of the people who live in the house. Therefore, Bank BTN will continue to develop products, not only housing loans, but also simultaneously non-housing loans while still maintaining its identity as the leader in housing finance in Indonesia. We also need to say that Bank BTN continues to show commitment in distributing housing loans to lower middle income people with Government support through the Housing Finance Liquidity Facility (FLPP). In addition, we also realize the importance of human capital restructuring. We appreciate the hard work of employees fairly based on their performance and participation to the Bank, as well as other rational and reliable considerations. This increased appreciation of employees’ performance is also a form of our efforts to sustain the ongoing performance of Bank BTN in the future. Coinciding with internal
restructuring of the Bank and improving the quality of products and services for customers, we also strengthen good relationships with other stakeholders, such as business partners, community and surrounding environment, as well as the Government. To improve the quality of life of marginal people, during 2013 we implemented various programs in various fields, including education, health, as well as public facilities and infrastructure, including other religious and social assistance. The amount of funds expended for community development programs during 2013 reached Rp40.42 billion. In 2014 and future years, Bank BTN will continue to refine various programs that can provide contribution to the sustainability of Bank BTN, environment, community and housing finance in Indonesia in general. We expect to be able to continue to help our customers in meeting their housing needs, as well as taking a step forward to world class quality. Finally, on behalf of the entire Board of Directors of Bank BTN, we express our appreciation and thanks to the Board of Commissioners, all ranks of employees of Bank BTN, and to the stakeholders for their support and participation in achieving sustainability performance in 2013. We always open opportunity to stakeholders to provide input, suggestions, and constructive criticism to improve sustainability performance of Bank BTN in the coming period.
Jakarta, December 31, 2013
Maryono President Director
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Management Strategy and Approach
SUSTAINABILITY PRINCIPLES New innovations to create prosperity and improved quality of life through various economic activities in the globalization era and current information age are usually accompanied with a number of new risks associated with stable environmental conditions, economic and social culture. The development of knowledge and technology is required not only to provide contribution to economic growth, but also assist to solve problems related to risks and threats to the sustainability of our social, environmental, and economic relationships. Therefore, new knowledge and innovation in technology, management and public policy is a challenge for all organizations in order to make a new choice in carrying out their operations, production, services, and other activities, which will have an impact on the environment, social and culture. Sustainable development is one of the components in building the Indonesian economy. The goal of sustainable development itself is fulfilling the needs of the present without compromising the ability of future generations to meet their needs. This is very understandable and Bank BTN necessarily supports the goal. One form is through the this Sustainability Report which is prepared incorporating the
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Bank BTN | Sustainability Report 2013
elements of transparency and accountability through implementation of company activities involving three elements, namely economic, social, and environmental and/or with due regard to sustainable principles, as follows: • Documents are made by the company related to economic, social, and environmental performance aspects as management control tools on internal stakeholders as well as accountability tools, particularly on external stakeholders. • Performance report of the three aspects can only be called a sustainability report when the performance reported within a certain time is already sustainable or showed a tendency to improve. • The consequence is that the sustainability report contains various indicators of the three aspects to be monitored continuously and periodically. The implementation of Bank BTN programs that supports sustainable development is aimed to: • improve the welfare of society and improve the environment, • develop the values and culture of the Bank, in accordance with Good Corporate Governance (GCG) and applicable regulations,
Sustainable development is one of the components in building the Indonesian economy. The goal of sustainable development itself is to meet the needs of the present generation without reducing the ability of future generations in meeting their needs. This is very much understood by Bank BTN, and the Bank has no hesitation to support this goal.
• establish a positive image of the Bank in the community, and • promote cooperation and mutual respect to the public and environment where Bank Offices are operational. Implementation of activities that support sustainable development of PT Bank Tabungan Negara (Persero) Tbk is to realize the Fourth Mission of Bank BTN in regard to the interests of the public and environment. The activities undertaken are among others: • Economic Affairs in the form of activities that have an impact on increasing employment and business opportunities in order to alleviate poverty in the community. • Social Affairs in the form of activities that have an impact on improving the quality of life in the fields of education, health, arts and culture, sports and religion. • Environmental Affairs in the form of activities that have an impact on increased comfort and environmental sustainability as well as energy savings and the use of alternative energy. • Activities to ease the burden of communities due to natural disasters or certain economic conditions due to the increase in prices of basic commodities.
Business Strategy The Long Term Plan (RJP) of Bank BTN for 2013-2017 generally consists of 3 transformation pillars, namely transformation of business, transformation of work culture and transformation of infrastructure, with as main target on 2017 Bank BTN can be the 7th largest in terms of total assets and remain as the market leader in the field of housing finance (KPR). To achieve this vision, Bank BTN will pursue a transformation program with the following details.
Strengthening of housing finance (KPR) position Bank BTN will retain its position as KPR market share holder No.1 in Indonesia with a greater targeted market share of more than 30% in 2017 from the market share in 2012 which amounted to 24.8. This is done by strengthening the position in the lower middle segment and increasing the share in the upper middle segment. The strategy which will be run for the lower middle segment is to maintain KPR dominance in the lower middle segment while increasing barrier to entry into the lower middle segment of competitor banks through efficient business processes, while the strategy for the upper middle segment is through product differentiation and services. KPR products as the main engine of loan growth will be directed to continue to grow in the future. The wide open KPR potential is shown by the high number of national housing backlog, high public interest to use KPR facilities in the home purchase, and increased purchasing power, especially with the increase in middle class population.
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In line with Bank Indonesia Regulations, the business of Bank BTN will remain focused on housing especially provision of housing for people with the strategy of maintaining a portfolio of housing loans and non-housing loans with a portion of 85%:15%. Housing loans cover all loans designated for residential construction, home purchase, building own home, home renovation and other usage with the home as collateral. Bank BTN also improves loan quality through a thorough revamping of loan management, including improved management of collection and loan workout, while upholding prudential banking principles and GCG towards the ratio of average loan quality of the industry.
Creating a new growth engine To create a new growth engine, Bank BTN has entered into a strategic alliance with various parties to maximize the potential of housing value chain such as: • Establish alliance with state-owned insurance (BUMN Asuransi) in supporting the KPR business namely to manage Advance Payment Assistance, joint Marketing and socialization, Provision of long-term funds, as well as Home Ownership Loan Insurance. • Strengthen cooperation with provider partners and housing project builders, namely developers, association of developers, and contractors to ensure the fulfillment of housing supply. • Establish relationship and communication with providers of building materials for housing projects in order to ensure that housing supply is met. • Strengthen cooperation with the Local Government to ensure the availability of land area for the construction of housing projects, support the provision of housing infrastructure such as roads, water, electricity, lighting, transportation, and land initiator for the bank. • Strengthen cooperation and communication with the Central Government in particular housing stakeholders such as the Ministry of Public Housing, Ministry of Finance, and BLU PPP.
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Bank BTN | Sustainability Report 2013
In addition, Bank BTN also conducts synergizing between state-owned enterprises (BUMN) (strategic alliances) both in terms of business development and infrastructure (network, IT, etc.) that support business growth, develop non-housing finance with a 15% portion directed at portfolio with high margin (high yield), namely lending to the MSME, consumer and commercial segments and in particular housing value chain, increase contribution of fee-based income to operating income through diversified products and services with a focus on the development of transaction services, treasury business and trade finance, bancassurance and investment products, investment and participation in subsidiary companies, as well as supporting inorganic growth to support the growth strategy of the bank through corporate acquisition action of banks and non-bank financial institutions on potential new markets and potential market of housing supply chain that has not been fully explored.
Increase in funding Increasing funding is done by strengthening the retail segment to increase funding through low-cost funding towards cheap funds ratio (CASA ratio) above 50% through the exploration strategy of existing customers and new customer acquisition regular-prime segments, as well as development and optimization of physical network and e-channel. Meanwhile, corporation and institutional segments will continue to be developed through placement patterns of funds with underlying loan cooperation and maximization of institutional fund services by improving transactional services in order to have a stable core funding through the optimization of pattern B to B and strengthening alliances with agencies, local governments, and other stateowned enterprises.
Strengthening sharia business Sharia business strategy in the short term will be directed at improving sharia business assets through leveraging that harnesses the parent company’s network for efficiency and effectiveness. As for the long term, existing potential will be reviewed to perform spinoff considering the broad potential of sharia business market.
Transformation of work culture
Highly competent Human Capital
Bank BTN has implemented a corporate culture externalization program and developed a communication medium towards external parties, namely affiliate program and effective socialization/communication, as well as run an advanced cultural externalizing program and realized a positive image of Bank BTN, namely continuity of the externalizing program and formulation of innovation programs.
Improvement of the quality of human capital at Bank BTN is done with qualified recruitment and training and improvement of sustainable work culture.
Improvement of IT systems Application of reliable information technology systems is the main target of Bank BTN in providing banking services and solutions in accordance with the needs of its customers. Bank BTN constantly upgrades existing systems to increase accessibility, ensure safety and reliability of systems, and availability of information technology-based services through the following multiple initiatives. • Zero Downtime, namely the availability of network and infrastructure that is secure and stable in support of IT services for business activities. • Time to Market and Efficiency, namely sustainable development in application aspect to support business products and operational efficiency in improving profits and reducing costs • Data Integrity and Confidentiality, namely provision of information management systems which fulfills the integrity of secure data • E-Channel, namely the procurement and development of new digital delivery disburses, in particular the aspect of commerce as mainstay of the bank in improving productivity of benefits, and feebased income with high optimization of resources and margins. • Leading Edge Technology, namely the adoption of new technologies to support business needs and changes
Improvement of operational process In order to be a competitive bank, the increase in quality of the process will help Bank BTN become healthier and more attractive to consumers by adopting the latest risk management namely quantitative risk management, loan scoring and liquidity risk management, and have the SLA.
Implementation of Good Corporate Governance & Compliance The main goal of GCG application at Bank BTN is the creation of business ethics conducted by every member of Bank BTN in working and behaving based on GCG principles. To achieve this, it is necessary to strengthen the implementation of GCG which includes foundation, namely Commitment on Governance (commitment) and three pillars, namely Governance structure and infrastructure (structure and supporting infrastructure), Governance mechanism (policy), and Governance outcome (strategy). These will be run through the implementation of the GCG 2013-2017 road map in three stages as follows: • Pre-implementation (2013-2014); Strengthen management commitment to build and/or complete the GCG structure and infrastructure, build and complete the GCG soft structure. • Implementation focus (2013-2017); GCG Awareness Program, institutionalization and internalization, monitoring and development of software (dashboard), Assessment Program, and externalization. • Implementation cycle (2017); Ongoing improvement program using the Plan Do Check Action (PDCA) method periodically at each year end of GCG implementation in support of business transformation, work culture, and infrastructure.
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GOVERNANCE STRATEGY Our Commitment The house is a basic human need. The house has a role and function that is so essential for life and human life. The house is not just a place and education center for a family, culture nursery, or improved quality of life for the next generation, but more than all that, the house has indeed a central role as protection of identity and selfesteem. In fact, however hard the efforts of a nation to establish order of the country to be sturdy and strong, it will never work well without the nation’s success in managing households harmoniously, both physical and spirit. Bank BTN has committed to be a family friend of Indonesia and serve them by providing a chance to get a decent and comfortable home. By strengthening our focus on providing housing finance to the community, we plan to meet the various needs of Indonesian families and add value to their lives.
TOWARDS WORLD CLASS GOVERNANCE In order to fulfill our commitment to be a friend of the family of Indonesia, Bank BTN is aware that Governance or widely known as Good Corporate Governance (GCG) is a necessary condition to increase the performance of the company, not only in the short term, but also
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Bank BTN | Sustainability Report 2013
in the long run on a consistent and sustainable basis. Moreover, as a public company that is committed to be a world-class company (world class banking company), the management and all ranks of Bank BTN have a high commitment in implementing GCG. Therefore, all aspects of the management of the Bank’s business are always enhanced by conducting relentless business transformation processes consistently and continuously, aligned with good corporate governance principles. In implementing the basic principles of Corporate Governance that include transparency, accountability, responsibility, independency and fairness (TARIF), Bank BTN builds a paradigm and/or firm conviction that GCG will ensure the creation of a perfect/ thorough business balance so that all forms of interests, whether business or social, individuals with internal and external groups, as well as interests of shareholders and stakeholders will lead to a balance point. For Bank BTN, implementation of good corporate governance principles is not just to follow applicable rules, but is a fundamental element that supports business performance and sustainability of the Bank in the future. GCG implementation has become the machine and mechanism as driver (value driver) for Bank BTN to improve corporate values (value creation) as can be seen through the images and illustrations and eventually lead to a strategic impact, as follows:
GCG ROADMAP PILLARS The four pillars as the cornerstones of GCG implementation at Bank BTN are as follows: • Commitment on Governance • Governance Structure • Governance Mechanism • Governance Outcome These GCG pillars are instructions in order to execute the development strategy of Bank BTN’s GCG which includes several stages, as follows:
1. Pre Implementation Stage: In this stage there are 3 (three) things to be done, namely: • Confirm management commitment • Establish and/or complement GCG soft structure • Establish and/or complement GCG infrastructure
3. Implementation Cycle Stage: Continuous monitoring and determination of action plan and feedback at the end of each year using the Plan Do Check Action (PDCA) method towards long-term success.
2. Implementation Stage: In this stage is done several strategies, namely: • Awareness programs • Internalization and institutionalization • Evaluation and Assessment Program • Development of software (Intelligence Governance [i-Gov]) • Externalization.
Road Map Stage 1: Foundation • Reaffirm the commitment of Management and all Employees of BTN (each period) • Establish and/or complement GCG Structure & Infrastructure • Establish and/or complement GCG Policy (self-structure) • Persistence Spirit • GCG Awareness Program • Institutionalization and Internalization • Monitoring & Software Development (Dashboard) • Assessment Program • Externalization
Stage 2: Internalization • GCG Awareness Program • Institutionalization & Internalization • Monitoring & development • Software (Dashboard) • Externalization
Stage 3: Excellence • Superior governance • Continuous monitoring (Action Plan & Feedback) • P-D-C-A
2017 2013-2017
2013-2014
Bank BTN | Sustainability Report 2013
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• Improve the performance of the Bank through the creation of good decision-making process, increased operational efficiency, and optimal service to stakeholders. • Enhance corporate value by financial performance improvement and risk reduction for actions carried out in the operations of the Bank. • Increase investor confidence to conduct business activities in Indonesia as one of the thriving markets in the midst of global economic challenges. Meeting stakeholder satisfaction which includes task satisfaction and employee satisfaction.
GCG IMPLEMENTATION RESULTS In 2013, several indicators that demonstrate the successful implementation of the above strategy, among others, can be shown from the results of GCG assessment performed by several independent parties as follows: In 2013, Bank BTN implemented a third party assessment in cooperation with The Indonesian Institute for Corporate Governance (IICG). Corporate Governance Perception Index (CGPI) is done through four assessment stages with different weights; self-assessment (25%), completeness of documents (23%), paper and presentation (17%) and observation (35%). Research results and CGPI rankings are then organized into 3 (three) rating categories, namely Fairly Trusted, Trusted and Highly Trusted. After an independent and objective ranking based on the “GCG In Knowledge Perspectives” theme,
IICG concluded that Bank BTN is included in the “Trusted” company category. The quality score of GCG implementation of Bank BTN is 85.42 of the maximum value of 100 and the Bank has successfully maintained “The Most Trusted Company” award. According to IICG, the management of the company has been conducted properly.
Governance Structure and Mechanism The governance structure (Management Structure) of Bank BTN is a way how activities within the organization are divided, organized and coordinated and designed in order to support the passage of activities of the organization in a responsible and controlled manner by the separation between decision making and decision control (who control whom) through major organs and organ support that have been built at Bank BTN. Put differently it can be said that governance structure is a framework within the organization that determines how various governance principles can be divided, run and controlled by Bank BTN through the division of functions, rights, obligations and responsibilities between the parties concerned of Bank BTN, including the process of effective internal and external controls and creating internal balance (between corporate organs) and external balance (between stakeholders) and then all at once regulate how Bank BTN should be directed and controlled to improve business performance on an accountable basis (Governance Mechanism).
Company Organs Major Organs
Supporting Organs
16
GMS
Board of Commissioners Committees: • Audit Committee • Remuneration & Nomination Committee • Risk Monitoring Committee
Bank BTN | Sustainability Report 2013
Board of Directors Committees: • Risk Management Committee • Loan Committee • Personnel Committee • Technology Committee • Products Committee • ALCO
• • • • •
Corporate Secretary Internal Audit External Audit Compliance Risk Management
As can be seen from the table, Bank BTN has Main Organs composed of the AGMS, Board of Commissioners and Board of Directors, as well as Supporting Organs consisting of committees, either under the supervision of the Board of Commissioners or the Board of Directors, as well as working units under the supervision of the Board of Directors. AGMS is the highest organ at Bank BTN as a forum to determine policies and make decisions that have not been given to the Board of Commissioners and Board of Directors. The Board of Commissioners has the duty to supervise and provide advice to the Board of Directors, while the Board of Directors is the organ responsible for the management and performance of the business and operations of the Bank. The composition of the Board of Commissioners and Board of Directors of Bank BTN as of December 31, 2013 is as follows: President Commissioner Commissioner Commissioner Independent Commissioner Independent Commissioner Independent Commissioner
President Director
Maryono*
Director Director
Irman Alvian Zahiruddin Mansyur Syamsuri Nasution*
* Effective as of March 18, 2013
A full description of the governance structure and mechanism of Bank BTN and/or various programs implemented in 2013 can be seen in the Annual Report 2013 of Bank BTN. Communication with Shareholders and Investors In communication with shareholders and investors Bank BTN is guided by the principles of transparency and justice, so that a fair disclosure to all parties is emphasized without discrimination based on the composition of share ownership. This proved to be conducted well by Bank BTN because in 2013, according to an assessment conducted by the Indonesian Institute for Corporate Directorship (IICD), Bank BTN was awarded Best Disclosure and
Mardiasmo* Dwijanti Tjahjaningsih Agung Kuswandono** Amanah Abdulkadir** Sahala Lumban Gaol*** Maulana Ibrahim****
*
have passed Fit & Proper test Bank Indonesia per December 9, 2013, but not yet valid up to December 31, 2013 ** have passed fit & proper test Bank Indonesia per July 17, 2013 *** effectively transferred become Independent Commissioner after passed Fit & Proper test Bank Indonesia **** has passed fit & proper test Bank Indonesia per October 24, 2013 and effectively per December 8, 2013
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Transparency. The assessment conducted by IICD was done using international standards, as the standards used by the Organization for Economic Co-operation and Development (OECD), which included five assessment factors, as follows: • The Rights of Shareholders and Key Ownership Functions • The Equitable Treatment of Shareholders • The Role of Stakeholders in Corporate Governance • Disclosure and Transparency • The Responsibilities of the Board Bank BTN actively holds meeting forums with analysts and investors through public exposure to ensure that information can be properly
Activities
Investor Relations Activities in 2013 Basically, Bank BTN is always maintaining good relationships with stakeholders, particularly shareholders and investors, as important actors in business sustainability. Throughout 2013, the Bank organized various information disclosure activities as follows:
Details
Time
Location
Public Expose
Investor Summit 2013
27 Nov
Jakarta
Analyst Meeting
FY 2012
27 Feb
Jakarta
1Q 2013
18 Apr
Jakarta
2Q 2013
23 Jul
Jakarta
3Q 2013
28 Oct
Jakarta
DBS Vickers Securities Indonesia Corporate Day
18 Feb
Jakarta
UBS Indonesia Conference
5-6 Mar
Jakarta
CIMB Indonesia Corporate Days
4-5 Jul
Bali
Danareksa CEO Days
4-5 Sep
Jakarta
Barclays – Mandiri Sekuritas Indonesia Corporate Day
30 Sep-1 Oct
London
DB Access Indonesia Conference 2013
2-3 Oct
Jakarta
Morgan Stanley – 12th Asia Pacific Summit
13-15 Nov
Singapore
Non-Deal Roadshow
29-30 Apr
Kuala Lumpur
Non-Deal Roadshow
2-3 May
Singapore
Non-Deal Roadshow
13-17 May
USA
Non-Deal Roadshow
20-21 May
Hong Kong
Non-Deal Roadshow
23-24 May
Tokyo
Non-Deal Roadshow
24-28 Jun
Europe
AGMS
27 Mar
Jakarta
Investor Conference
Roadshow
GMS
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implemented. The methods used are as follows: • Direct, which includes: Public Expose, Non Deal Road Show, Press Conference, 1-on1 Meetings, Group Meetings, Branch Visits and Site Visits • Indirect, which includes: Annual Report, Publication of Financial Statements, Website, Conference Calls and Emails.
Bank BTN | Sustainability Report 2013
In addition to these activities, Bank BTN is also actively conducting other activities such as meetings with the media, reviews of the media and promotion through the media. Not less important, Bank BTN has also provided the widest possible access to the general public and investors to obtain information via Bank BTN website www.btn.co.id. This website contains the latest information such as corporate actions, financial statements and company guidance (quarterly), Bank BTN presentation material to the public and media news clipping about the Company. Since its shares have been listed on the Indonesia Stock Exchange, Bank BTN has recorded good performance improvement. This can be seen from the 2.04 times over- subscription, Best Mid Cap IPO Deal of the Year 2009 in South East Asia award, Best IPO in Indonesia (The ASSETS Asian Awards 2009) and has successfully performed the Fastest Stock IPO process. Bank BTN shares have also been included as components for the calculation of several leading stock index, namely: • LQ 45 Index • Kompas 100 Index • Bisnis 27 Index Most of investors of Bank BTN are foreign investors. Therefore, Bank BTN seeks to provide disclosure of information to its investors according to international standards. The commitment of Bank BTN to provide transparency to investors has been recognized by various parties, both inside and outside the country. One of our proud achievements is the award for Best Investor Service Provider in Indonesia which we received from the Global Banking and Finance Review, London. In 2014, Bank BTN launched several programs to continue to strengthen relationship with investors. Some of which are investor conferences, analyst meetings and non-deal roadshows.
DIVIDEND POLICY In an effort to maximize shareholders’ value, Bank BTN has made provisions to pay cash dividends at least 25% of net income each year, the amount of which will be determined at the time of the AGMS. This dividend payment is implemented by considering earning (profit), financial condition, liquidity and compliance with regulations in force as well as various other factors that are considered relevant by the Board of Directors following AGMS approval. We can say that in 2012, in accordance with the decision of the AGMS on April 19, 2012, Bank BTN has implemented a dividend policy as follows: • Distribution of cash dividends amounting to Rp223.73 billion. The cash dividend is calculated based on the achievement of financial performance during 2011. • Total dividend per share amounted to Rp25.31 • Payout Ratio 20% Meanwhile, in 2013, in accordance with decisions set out at the Annual General Meeting of Shareholders dated March 27, 2013, Bank BTN has implemented the following dividend policy. • Distribution of cash dividends amounting to Rp409.19 billion. The cash dividend is calculated based on the achievement of financial performance during 2012. • Total dividend per share amounted to Rp38.74 • Payout Ratio 30%
SOCIAL RESPONSIBILITY Community and Environmental Development The contributions of Bank BTN to society and the environment are realized in social activities within the framework of Corporate Social Responsibility (CSR). CSR is the realization and/or shape of Bank BTN implementation of concern to society and the environment.
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Bank BTN CSR General Policy Corporate Social Responsibility (CSR) is a commitment by Bank BTN to participate actively in improving the welfare of the community through good business practices and contribution of some resources of the company through a variety of activities, including: environmental protection, education, health, partnerships, arts, and sports, as can be seen by way of illustration of the CSR Basic Concept of Bank BTN. Through CSR, in running the wheels of business, Bank BTN constantly strives to create a harmonious atmosphere of business activities with the wider community and environment friendly. By contributing to the community and the environment, Bank BTN is expected to be the beloved company of the wider community. Thus, Bank BTN can participate in creating an environment that is safe, comfortable and
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Bank BTN | Sustainability Report 2013
dynamic which is an ideal condition for the sustainability of any business. In the implementation, broadly speaking, the various activities carried out by Bank BTN in implementing Social and Community Development Programs include Partnership Program and Community Development Program (PKBL). Bank BTN’s PKBL Program concentrates its activity on community empowerment goals, especially in residential neighborhood or settlement. Housing community development focus is selected linked to the core business of Bank BTN as distributor of housing loans. In practice, this community empowerment is shown through activities containing education, environment, and socio-economic empowerment.
COMMUNITY DEVELOPMENT PROGRAM
Bank BTN’s Basic CSR Concept
Corporate Image
Money
Power
Capability
Environment
Communication
Education
Communication
Health Partnership Arts & Sports
Cooperation with Third Parties
PKBL Policy Broadly speaking, through the PKBL, Bank BTN is trying to prioritize community empowerment in each operational activity, particularly in housing and settlements, which is the main business areas of Bank BTN. In the implementation, the program includes important activities in the fields of environment, social empowerment and economics, and education.
Environmental Activities and Impact Bank BTN is implementing CSR activities in the environmental field through the BTN Environmental Harmony and Natural Conservation Programs. Through the BTN Environmental Harmony program we provide support and assistance to society, especially where Bank BTN disburses financing. In the implementation, this program prioritizes lower middle income people. This program aims to educate people in an integrated manner through several training or education, and mentoring to residents as the basis for an integrated development program. The program includes activities on an integrated and sustainable basis to support hygiene, health, reforestation, and education.
The following is a description of the activities of BTN Environmental Harmony program per field: • Environment: Bank BTN delivers materials about community participation in waste management, garbage sorting method, organic waste management, and manufacture of products from non-organic garbage. • Education and Training: Bank BTN undertakes development, education, as well as physical and spiritual education quality training for children along with their parents. With training, the children and parents are expected to recognize themselves so that they can form a healthy teamwork in interpersonal relationships. • Health: The program is accompanied with development of community health care quality through workshops regarding children’s health and herbal plants for various diseases. • Socio-economic: This program is expected as a trigger and foundation in the alleviation of poverty through several activities such as entrepreneurship training, and management within the family and surrounding empowerment potential.
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• Religion: A community activity program should be balanced by religion as motivation and reinforcement as well as basis in interacting both within the family and society. • Public Infrastructure and Facilities: Public infrastructure and facilities as a fulfillment of the needs of society and the environment that support other activities so that hopefully people can be more empowered. The names of activities in the BTN Environmental Harmony Program in more detail are described in the following table.
Activities in 2013 Activities undertaken in 2013 by Bank BTN were as follows: Nature Conservation and Environmental Field Bank BTN has made a commitment to PT Bakti Usaha Menanam Nusantara Hijau Lestari I (BUMN HLI) to create synergy in greening activities with the Agrosil vopastural pattern in Ciherang Village and Ciaro Village, Nagreg Subdistrict, Bandung District, West Java which is Citarum watershed in the form of planting trees
Name of activities in the BTN Harmonious Environment Program Item
BTN Welfare 2 BTN Religion BTN Green BTN Fit BTN Health BTN Intelligent BTN Hygiene BTN Care BTN Partnership
Information
Program for Improving Welfare, Social, Arts and Culture Religious Affairs Program Nature Conservation Program Sports Program Program in the field of Health Education Program Program in the field of Hygiene Program in the field of Natural Disaster Response Community Entrepreneurship Empowerment Program
Sejahtera BTN Kemitraan BTN
Peduli BTN
Religi BTN
Hijau BTN
Community
Bugar BTN
Bersih BTN
Cerdas BTN
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Bank BTN | Sustainability Report 2013
Sehat BTN
as much as 22,222 trees on reforestation land area of 55.55 hectares. Total commitment of Bank BTN amounted to Rp1,000,000,000.00 (one billion Rupiah) to support the event. Bank BTN hoped that with the implementation of the greening activity, Citarum watershed will be green again and public awareness in protecting the environment will increase. In addition, Bank BTN has also carried out reforestation programs in Jakarta, North Bandung, Universitas Teknologi Sumbawa, West Nusa Tenggara and Universitas Bengkulu. Social and Economic Field • Joint Homecoming with Bank BTN In 2013 Bank BTN held a free-of-charge Homecoming Program using the theme “Homecoming 2013 Towards Prosperity with Bank BTN” provided to 1,300 informal workers. The homecoming participants consisted of many informal workers operating in the office and housing environment of Bank BTN scattered in the Greater Jakarta area. This joint homecoming program is one form of Bank BTN’s awareness of the surrounding communities conducted continuously every year. In 2013 this activity was carried out for the sixth time by Bank BTN. When compared with a similar
activity of the previous year, the number of participants increased by 100 people. Participants were not charged anything in this program. They were just required to show their Tabungan Batara Bank BTN savings booklets as proof of membership. Homecoming destinations were Semarang, Yogyakarta, Solo and Bandar Lampung. • Bank BTN Flood Care Activity Associated with the major floods that hit almost the entire territory in the Greater Jakarta area, Bank BTN as a form of concern for the environment participated in the Bank BTN Flood Care Activity by providing food packages worth Rp100,000,000.00 (one hundred million Rupiah) to 244 Heads of Families who are in need worth Rp100,000.00 per package. Implementation sites were Jakarta and Bekasi. • Bank BTN Food Sharing Activity In response to the instruction of the Ministry of State-Owned Enterprises (BUMN) for the implementation of low-cost market in order to anticipate the impact of rising fuel prices, as a concern for the people who are in need, on July 4, 2013 Bank BTN organized a Food Sharing Activity which was implemented at Kelurahan Penjaringan by distributing 2,500 food packages worth Rp250,000,000.00.
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Sports Field Support for National Athletes In order to improve performance of Indonesian athletes in the multi-event sports of Sea Games 2013 and 2015, the Asian Games in 2014 and the Olympic Games in 2015, Bank BTN together with Perusahaan Pengelola Aset (PPA) and PT. Danareksa synergized to support improvement and development of Judo sport achievement at the international level in the form of educational assistance and / or training, improvement in health and other assistance to athletes considered necessary to support improved achievement of judo sports in Indonesia. Bank BTN’s commitment in 2013 for the improvement and development of Judo sports achievement amounted to Rp862,000,000.00 (eight hundred sixty-two million Rupiah). Education and/or Training Field • Briefing and Business Training Program to 200 members of the army • In response to the instruction of the Ministry of State-Owned Enterprises (BUMN) for the Preparatory Program on Second Career Army Officers in 2013, Bank BTN along with 12 other BUMNs
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Bank BTN | Sustainability Report 2013
designated by the Ministry of StateOwned Enterprises, participated in the activity aimed at preparing participants to deal with the second phase of a career in the field of psychological, financial and social relationships as well as provide insight and debriefing and comprehensive skills. The activity was carried out for 8 weeks at Pertamina Learning Center on June 2728, 2013 and at Garuda Indonesia Training Center from July 1-19, 2013. Bank BTN participated in the activities referred to amounted to Rp1,500,000,000.00 (one billion five hundred million Rupiah). • University Scholarships In 2013, Bank BTN provided scholarships for higher education to 197 students throughout Indonesia. Branch offices that carried out the provision of scholarships to outstanding students were Bandung, Banjarmasin, Bengkulu, Ciputat, Medan, Pekanbaru, Pontianak and Semarang. The total funds expended for the university scholarship program amounted Rp499,000,000.00 (four hundred ninety- nine million Rupiah). The specifics are as follows:
Branch Bandung Banjarmasin Bengkulu Ciputat Medan Pekanbaru
Pontianak Semarang
Distribution of Bank BTN Scholarship Intitutions Scholarship Universitas Padjajaran 2 Universitas Lambung Mangkurat 10 Universitas Bengkulu 4 Universitas Terbuka Universitas Sumatra Utara Universitas Riau Universitas Lancang Kuning Sekolah Tinggi Kesehatan Universitas Islam Riau Sekolah Tinggi Kejuruan dan Ilmu Pengetahuan Universitas Diponegoro Universitas Negeri Semarang Politeknis Kesehatan Semarang
120 10 10 2 4 10 4 12 4 5
IDR 12,000,000 5,000,000 12,000,000 288,000,000 30,000,000 30,000,000 7,000,000 10,000,000 30,000,000 12,000,000 36,000,000 12,000,0000 15,000,000
The following table shows the types of training and training funding allocations. Allocation of Training Funds Region
Malang Yogyakarta Malang Jakarta Jakarta Surabaya, Bukit Darmo Jakarta Jakarta Total
Activities
Total (in IDR)
Human resource development and economic enhancement MSME Training Human resource empowerment and economic enhancement Training and education facilities Training and education facilities Convection entrepreneurial training Training and education facilities Training and education facilities
9,500,000 10,000,000 19,300,000 25,000,000 49,000,000 50,000,000 281,169,000 1,500,000,000 1,943,969,000
Religious Affairs Field Construction of a Church on Mansinam Island of West Papua Province In response to the instruction of the Ministry of State-Owned Enterprises (BUMN) in order to accelerate development on Mansinam Island, Bank BTN along with 15 other state-owned enterprises (BUMNs) that have been designated by the Ministry of State-Owned Enterprises participated in the construction activity of the Church at Mansinam Island, West Papua Province. Total participation of Bank BTN in the activity referred to amounted to Rp1,000,000,000.00 (one billion Rupiah).
COST ALLOCATION 2013 Following are details of the allocation of the distribution of program funds for community development and socio-economic empowerment for the year 2013. Fields
Economy Arts & Culture Sports Education Health Comunity Service Religion Biodiversity Total
Realisasi
1,739,008,940 10,000,000 862,000,000 3,173,631,000 158,000,000 1,198,916,000 2,290,600,000 897,670,300 10,329,826,240
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CONTRIBUTIONS TO THE NATION AND COUNTRY As proof of our commitment to contribute to the country, Bank BTN always gives valueadded returns to the government through taxes and dividends. In 2013, Bank BTN deposited taxes amounting to Rp1.01 trillion compared to total taxes paid in 2012. Meanwhile, dividends distributed to the government in 2013 amounted to Rp409.19 billion, which is calculated based on financial performance achievement during 2012 with a payout ratio of 30%. We realize that the advantages and achievement we acquired involved contributions from the government and society. Therefore, giving back to the country is our task to be carried out as well as possible.
GROWING WITH BUSINESS PARTNERS AND SUPPLIERS Bank BTN’s commitment in the field of housing finance is reflected in the harmonious relationship with strategic partners and/or suppliers such as developers and contractors. Such cooperation should be mutually supportive and provide added value. In establishing cooperation, Bank BTN upholds the principles of professionalism, transparency, and fairness. To be a strategic partner of Bank BTN in terms of distributing individual housing loans and residential construction, Bank BTN implements several parallel guides for all parties. With the principle of reference, it is expected that the existing cooperation between Bank BTN and developers can be mutually beneficial and provide equal opportunity to each party. Similarly with suppliers, potential suppliers should follow the bidding mechanism that takes place openly. The tender mechanism will be done by opening bidding, consider any bid received, and evaluate in order to get a strategic partner in conducting cooperation. By upholding transparency, the
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Bank BTN | Sustainability Report 2013
tender is to be an evidence of the absence of corruption practices, collusion and nepotism in cooperating with business partners. In entering into business cooperation, Bank BTN will first consider the business type of business partners and suppliers, supplier experience from the first operation, and the advantages owned by suppliers compared to competitors. Above all, a reliable capability is not enough without the commitment to uphold reference values and good business ethics. Good cooperation is inseparable from anticipation of emerging risks, and Bank BTN will pay attention to the number of employees owned by suppliers to calculate risks that may occur with the capability of the workforce. Labor is bound permanently, subcontractors, and part-time work personnel. Associated with compliance with applicable laws, Bank BTN also considers a few things, such as the implementation of the Law on Labor. Bank BTN will pay attention to the existence of child labor, compensation in the form of wages, working hours, availability of health services and safety, conditions of discrimination and diversity, and concern towards environment.
MOVING FORWARD Bank BTN would take many steps to maintain sustainability and harmony with society and the environment. These things include Corporate Governance, social responsibility, human resource development, and lending to the community and the developers. Based on the corporate governance roadmap, 2014 is the time for Bank BTN to feel the results of the GCG implementation phase in 2013. Therefore, the next task for Bank BTN is to monitor and strengthen the implementation of GCG in conformity with applicable standards. If good governance continues to be maintained,
Bank BTN will go through a smooth path to reach its goal to be a world-class banking company in 2025. In addition, Bank BTN will continue to develop community development programs to create an environment that is always comfortable to live in, as well as improve housing finance services to the public so that they can have a viable home. Bank BTN also would like to improve employee engagement with the Bank so that the Bank and the employees can become one unity to advance in the common interest. Appreciation and fair opportunity for all parties will be improved by strengthening the existing system. Furthermore, Bank BTN expects to develop bigger by continuing to contribute to the environment and also for the sustainability of Bank BTN itself.
ENHANCEMENT OF PRODUCTS AND SERVICES Bank BTN does not only provide housing finance, but also supports developers to build decent housing for the people. Bank BTN is even contributing to the international community. Bank BTN has been trusted by the government to extend housing loans to the community since 1974. We always give our best efforts to help Indonesian families get Type of Loan Subsidized KPR Non-Subsidized KPR Other Housing Loan Construction Loan
December 2010 Rp Billion 21,945 15,635 3,815 5,519
a dream home at affordable prices, especially for the lower middle class. As of December 31, 2013, total conventional outstanding loans amounted to Rp92.39 trillion, increased from Rp75.41 trillion as of December 31, 2012. Meanwhile, total sharia financing in 2013 amounted to Rp8.08 trillion, up from a total of Rp6.00 trillion in 2012. Of the loan and financing position, total housing loans amounted to Rp87.01 trillion and total non-housing loans amounted to Rp13.46 trillion. The composition of loans extended by Bank BTN is 87% housing loans and 13% non-housing loans. This composition shows the commitment of Bank BTN to develop non-residential financing, which is not less important than housing finance. Bank BTN realizes that the service required by Indonesian families is not only the need to have a home, but also the need to have a place to stay, where they can live decently. Based on this understanding, BTN intends to develop a nonresidential loan portfolio and at the same time retain its focus on housing loans, as the core business of Bank BTN for more than 3 decades. Here is a table comparing the position of housing loans disbursed by Bank BTN over the last 4 years.
December 2011 Rp Billion 25,804 18,611 4,457 7,191
December 2012 Rp Billion 24,798 29,129 5,993 9,462
December 2013 Rp Billion 27,255 36,948 7,090 10,637
Bank BTN | Sustainability Report 2013
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From the very beginning, Bank BTN has consistently demonstrated a commitment to help the community, especially the lower middle class in meeting their need to get a decent place to stay. Through KPR BTN Sejahtera, Bank BTN implements government subsidy programs to provide home ownership finance with the Housing Financing Liquidity Facility (FLPP) for all Indonesian people with low interest rates, light and fixed installments throughout the loan period. Bank BTN disburses this FLPP through two products, namely KPR BTN Sejahtera Tapak (for the purchase of landed houses) and KPR BTN Sejahtera Susun (for the purchase of flats). This product is intended for Low Income Communities (MBR) that meet the criteria, as follows: (1) To purchase first home (have never had a home); (2) Have never received a subsidy; (3) Has a Tax Number (NPWP) and Tax Return (SPT)/ Income Statement; and (4) Has a maximum principal income of Rp3.5 million/ month for KPR BTN Sejahtera Tapak and Rp5.5 million/month for KPR BTN Sejahtera Susun. Throughout 2013, Bank BTN managed to channel Subsidized KPR amounting to Rp6,018 trillion, or as many as 80,148 housing units through Conventional Banking and Rp488 billion, or as many as 6,524 housing units through Sharia Business Unit. Thus, the Bank disbursed 28.30% (27.13% from BTN Conventional and 1.17% from Sharia Business Unit). Meanwhile, Bank BTN is still leading the Subsidized KPR market with a 92.23% market share (source: PPP Kemenpera data). The success of Bank BTN in distributing the total Subsidized KPR has proved the commitment of Bank BTN in strengthening the contribution of the Bank to finance housing for the lower middle community. Here is a diagram illustration showing the distribution of Subsidized KPR within the last 5 years.
STRENGTHEN OTHER ASSISTANCE Bank BTN’s commitment to strengthen housing finance for the lower-middle class does not make us forget to service middle class customers. Bank BTN is still faithfully serving middle-class customers by offering the following products.
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Bank BTN | Sustainability Report 2013
KPR BTN Platinum KPR BTN Platinum is a housing loan of Bank BTN for the purposes to purchase a home from a developer or non-developer, both for the purchase of a new home or second home, the purchase of a home that is still under construction (indent) and take over the loan from another bank. The advantages of KPR BTN Platinum are competitive interest rates, fast and easy process, very flexible loan period, loan life insurance protection, fire insurance protection, and earthquake protection, and has a wide network of cooperation with developers across the regions of Indonesia. Bank BTN provides financing up to 80% of the lowest value between home sale price after discounts and the fair market price based on appraisal by the Bank for a home with an area < 70m2 or 70% for a home with an area> 70m2. The prevailing interest rate is a floating rate with a maximum loan period of 25 years. This loan is secured by the house and land financed. Throughout 2013, Bank BTN distributed 67,699 KPR BTN Platinum units with a value of Rp12.5 trillion.
KPA BTN (Apartment Ownership Loan) KPA BTN is an apartment ownership loan for the purpose of purchasing an apartment, both for the purchase of a new apartment and second apartment, purchase of an unfinished apartment (indent) and take over a loan from another bank. The advantages of KPA BTN are competitive interest rates, fast and easy process, very flexible loan period, loan life insurance protection, fire insurance protection, and earthquake protection, and has an extensive network of cooperation with developers in major cities in Indonesia along with very attractive promotion programs. Maximum KPA BTN financing is up to 80% of the lowest value between sale price after discounts and the fair market price based on appraisal by the Bank for an apartment with an area of < 70m2 or 70% for an apartment with an area> 70m2. The prevailing interest rate is a floating rate with a maximum loan period of 15 years. Throughout 2013, Bank BTN distributed 67,699 KPA BTN units with a value of Rp522 billion.
Kredit Ruko BTN
Kredit Bangun Rumah BTN
Kredit Ruko BTN is a home store/home office/ kiosk ownership that can be used as habitable or place of business. The advantages of Kredit Ruko BTN are competitive interest rates, fast and easy process, very flexible loan period, loan life insurance protection, fire insurance protection, and earthquake protection (in some areas). Through Kredit Ruko BTN, Bank BTN disburse loans to buy a home store (ruko) which can function as a store, office, or other business purposes. Loans are granted at a maximum of 70% of the purchase price or market value, whichever is lower. Home store loan usually has a maximum loan period of 15 years with the home store being financed as collateral with floating interest rate. Throughout 2013, Bank BTN disburse Kredit Ruko BTN as much as 622 units amounting to Rp197.5 billion.
KBR BTN is a loan to build a house for individual customers who already have land or a plot of land. Financing amount is 70% of the Cost Budget Plan (RAB) to build a house appropriate to bank assessment. Loan term is given up to 10 years with floating interest rate.
In addition, Bank BTN continues to channel other consumer loans through the following products.
Kredit Agunan Rumah BTN KAR BTN is a loan facility from Bank BTN that can be used by customers for various consumer needs by securing a residential house/apartment/home store/home office owned by the customer. The advantages of KAR BBTN are competitive interest rates, free loan value, very flexible loan period up to 10 years and get loan life insurance and fire insurance protection. This loan is used to fund various purposes as long as not conflicting with the law. In terms of this product, customers provide guarantee with collateral in the form of land and houses. Maximum loan granted is 75% of the transaction value according to the Bank if loan collateral is in the form of a residential house. If the loan is secured by an apartment/home store/condominium/flat/home office, the value of loan distributed may not exceed 60% of the transaction value according to the Bank. This loan has a maximum tenor of 10 years with a floating interest rate.
PUMP-KB BTN Jamsostek For customers who are Jamsostek (Social Security) participants and experiencing financial hardship in connection with home purchase down payment for a Housing Loan (KPR), PUMP-KB BTN Jamsostek is the solution. These loans are granted by PT Jamsostek (Persero) through Bank BTN to its members through who are eligible to get PUMP-KB, for the purpose of home purchase down payment. The advantages of PUMP-KB BTN Jamsostek are flexible PUMP-KB period up to 15 years and not exceeding KPR period, interest rate of 6% with the provisions of maximum loans, as follows: • Wages up to Rp5 million: Rp20 million maximum • Wages> Rp5 million up to Rp10 million: Rp35 maximum • Wages> Rp10 million: Rp50 million maximum This PUMP-KB BTN Jamsostek is granted together with the granting of KPR BTN.
PRR-KB BTN Jamsostek For customers who are Jamsostek (Social Security) participants and experiencing financial hardship in connection with home development or renovation together with Kredit Agunan Rumah (KAR), PRR-KB BTN Jamsostek is the solution. These loans are granted by PT Jamsostek (Persero) through Bank BTN to its members through who are eligible to get PRRKB, with the aim to develop/improve housing, where the loan is submitted, approved, granted simultaneously against paripassu collateral with KAR. The advantages of PRR-KB BTN Jamsostek are flexible time period up to 10 years and not exceeding KAR period, interest rate of 6%, maximum loan up to Rp30 million and not exceeding 50% of the total loan (Kredit Agunan Rumah BTN plus PRR-KB Jamsostek).
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TBUM BTN Bapertarum
Supporting the Developers
For Civil Servant (PNS) customers who are experiencing financial hardship in connection with home purchase down payment for a Housing Loan (KPR), the Additional Down Payment Assistance (TBUM Bapertarum) is the solution, namely partial down payment financing aid product for housing loans (KPR) or partial financing aid for housing loans (KPR), consisting of aid that does not have to be returned and aid that should be returned, distributed to civil servants who meet the requirements and intended for group I, group II and group III, with source of funds from Taperum-PNS dues. Loans are granted by Bapertarum through Bank BTN to civil servants who meet the requirements of TBUM Bapertarum,for the purpose of home purchase down payment. The advantage of TBUM-BTN Bapertarum is the interest rate of 6%, subject to maximum loan provisions as follows: • Group I: Rp13.2 million • Group II: Rp13.5 million • Group III: Rp13.8 million
Bank BTN does not only provide housing finance but also supports developers to build housing viable for the community. Bank BTN also provides loan facilities to developers. We realize the importance of the role of developers in providing the best housing facilities for our customers. Therefore, we continue to maintain and increase products for the developers. Support for developers is routed through Kredit Konstruksi BTN that has managed to record growth as much as 25% to Rp11.83 trillion in 2013 from Rp9.46 trillion in 2012.
Kring BTN Kredit Ringan BTN (Kring BTN) is a loan with mild installments to employees of companies/agencies without collateral and only by filing customer appointment letters (SK). The advantages of Kring BTN are cash up to Rp100 million, competitive interest at a fixed rate, fast and easy process and without collateral, flexible loan period up to 5 years, loan life insurance protection and increasingly lighter installments if customer salaries make use of the BTN Payroll facility.
As a form of the Bank’s commitment to play a role in the financing industry inside and outside the country, Bank BTN has entered into a cooperation with the World Savings Bank Institute (WSBI) in the Tabungan Cermat BTN program. This program is held as part of the WSBI project to increase the amount of savings for disadvantaged people. This project is supported by a grant from the Bill & Melinda Gates Foundation and Bank BTN is one of the 10 banks around the world that receives this funding support. The pilot project for this program is held in Central Java. The features provided in Tabungan Cermat BTN are designed attractively and not difficult for people who are not familiar with banking transactions. The transactions for this program are done in an online post office that has teamed up with Bank BTN.
RESPONSIBILITY TO CUSTOMERS
Besides Kring BTN, Bank BTN also provides services that cater for the needs of retirees with a maximum loan amount of Rp300 million. The maximum loan period is 7 years with fixed interest rate system.
Bank BTN always strives to provide added value in housing finance services, not only with the best products, but also with consistent service, trustworthy, thorough, and attentive to the needs of customers and at the same time as a form of compliance with the responsibility of Bank BTN to customers.
Kredit Swadana BTN
Bank BTN Policy
Kredit Swadana BTN is a loan facility provided to customers with collateral in the form of savings and time deposits placed at Bank BTN with a maximum loan of 90% of the funds deposited at Bank BTN. The advantages are competitive interest rate, fast and easy process, very flexible loan period up to 1 year and can be extended.
One of the pillars of the Indonesian Banking Architecture (API) as declared by Bank Indonesia and must be implemented by national banks is to realize empowerment and protection for consumers of banking services through the establishment of standard mechanisms on customer complaints, establishment of an
Kring BTN Pensiunan
30
Involvement in International Projects
Bank BTN | Sustainability Report 2013
independent mediation institution, increased transparency of information on banking products, and socialization for customers. Through these various programs, it is expected to increase customer confidence to the national banking system. Bank BTN is constantly striving for the success of the API programs intended to provide added value in housing finance services, not only with the best products, but also with consistent service, trustworthy, thorough, and attentive to the needs of customers and at the same time as a manifestation of the fulfillment of Bank BTN’s responsibilities to customers. The customers of Bank BTN can voice their opinions about the services of the Bank through the Branch Offices, Head Office Divisions, Contact Center, as well as the print and electronic media. Bank BTN has sought various policies, including the following. Receipt of Customer Complaints
• Develop a Customer Complaints System (SPN) which can monitor the solution of the complaints thoroughly. SPN is a web-based system to facilitate monitoring of completion status of complaints as well as provide certainty for customers about the length of time it takes the Bank to resolve complaints. By using the online and integrated system, customers can also submit complaints and check the status of complaints at Branch Offices anywhere in Indonesia. With SPN that is online and web-based and integrated, the handling mechanism of complaints is more structured and can be carefully monitored. The customer complaint handling mechanism can be seen through the illustration in the chart below.
Supervision of Customer Complaint Handling
Coordination between Divisions to Resolve Customer Complaints
Receipt of customer complaint (end user)
Receive notification of complaint from the customer
Receive notification of customer complaint
Inquiry of customer complaint to SPN
See customer complaint details on SPN
See customer complaint details on SPN
Need escalation of group support?
Convey complaint progress to the customer
Escalation of customer complaint completion process
Data entry of customer complaint to SPN
Convey registration number to the customer
Convey complaint completion results to the customer
No
No
Yes Already recorded in SPN
Coordinating the progress of settlement Yes Entry of complaint completion results on SPN
Coordination of complain completion process
Entry of complaint completion results
Closing of complaint
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• Create and implement systems and procedures to ensure that Bank BTN has made transparent the information on Bank products in accordance with Bank Indonesia Regulation on Transparency of Information on Bank Products and Use of Customer Personal Data, such as: » Provide written information in the Indonesian language completely and clearly about the characteristics of each Bank product » The information is submitted to the Customer in writing or orally. » In providing information, the Bank does not provide deceiving (misleading) information and or not ethical (misconduct) » Information on product characteristics Such Bank product shall include: - Product name - Type of product - Benefits and risks inherent on product - The requirements and procedures of using the Bank product - The costs attached to the product - Calculation of interest or profit sharing and profit margins - The validity of the product - Publisher (issuer/originator) of the Bank product Bank • In conjunction with the Bank’s products and raising funds, the Bank provides information regarding the products guarantee program. • The Bank notifies the Customers regarding any changes, additions, and or reduction in the Bank’s product characteristics. • The Bank includes information on bank product characteristics which location or shape is visible and or legible clearly and or easy to understand. • The Bank provides information services of bank product characteristics that can easily obtained by the public. • Information about the Bank’s products has been published through the Bank homepage which can easily be accessed by the wider community. Furthermore, we can also convey that the use of the customer’s personal data is managed in accordance with the provisions, as follows:
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Bank BTN | Sustainability Report 2013
» The Bank asks for written consent from the Customer that the Bank will not provide and/or disseminate Customer Personal Data to Other Parties for commercial purposes, unless specified otherwise by other laws and regulations in force. » In the request for approval the Bank first explained the purposes and consequences of granting or disseminating Customer Personal Data to another party. » Request for approval can be done by the Bank prior to or after the Customer conducted transactions related to the Products of the Bank. » Customer Approval to the request is made by the Customer by signing on a special form created for that purpose. » When the Bank uses personal data of a person and/or group of persons obtained from Another Party for commercial purposes, the Bank shall have written assurance from the Other Party containing written consent from the person and or group of persons to disseminate personal data. » Create and implement systems and procedures to ensure that the Bank has made transparent customer complaint and dispute settlement procedures to the customer in accordance with the Bank Indonesia Regulation on Customer Complaints and Banking Mediation, including through: - The Customer Complaints Service Unit, both at the Branch Office and at Head Office (Division of Policy and Business Development ) for handling customer complaints. - The Bank has policies and procedures on customer complaint resolutions in accordance with the provisions. - The Bank has made transparent the procedures for customer complaints and dispute resolutions to the customer which have been conveyed orally, by direct mail (via mail), by mail via the Branch Office, by phone, through Internet, and through the mass media.
ACTIVITIES IN 2013 Funding provided for social activities in 2013 are packed by Bank BTN by implementing various Corporate Social Responsibility (CSR) activities. Broadly speaking, the costs incurred in the implementation of CSR activities are as follows: Fields
Economy Arts and Culture Sports Educations Health Public Infrastructure Worship Nature Conservation Total Cost
In addition, Bank BTN also always provides services to customers by putting forward good service quality in terms of the quality of products offered, the facilities provided for customer satisfaction, even to the physical viability of our service centers. The following are programs undertaken by Bank BTN to improve the quality of service in 2013. 1. Skill enhancement of front-liners (Customer Service, Loan Service, Teller Service and Security) through coaching and direct assistance.
Total Cost (in IDR)
1,739,008,940 10,000,000 862,000,000 3,173,631,000 158,000,000 1,198,916,000 2,290,600,000 897,670,300 10,329,826,240
2. Mystery-Shopping for maintaining and improving the quality of service at the Branch Office. 3. Increased comfort on the physical aspects which includes room comfort and completeness of banking hall equipment. 4. Improved ease of conducting transactions via e-BTN channel. 5. Interactive voice response for the contact center.
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Other Matters for Our Customers As a token of appreciation from Bank BTN to the loyalty of its customers, in 2013 Bank BTN held a number of lotteries that offer attractive prizes, including the Homebastis 2013 Lottery Program. Lottery programs have been held by Bank BTN since the beginning of 2003. Lottery stages consist of Regular I, Regular II, and Regular III along with Grand Prize. Drawing of Regular I was made in October 2012 while Regular II in January 2013 and Regular III along with the Grand Prize in April 2013. During Grand Prize raffle would be given 5 houses each worth Rp1.5 billion. The houses, as the grand prize, are all located in the Greater Jakarta area. While with the regular lottery would be given prizes in the form of savings to 99 winners worth Rp25 million each, to 333 winners, worth Rp10 million each and to 555 winners worth Rp5 million each. Giving Grand Prize in the shape of a home is the embodiment of Bank BTN’s core business in housing finance. The house is also an asset with a value that continues to grow. All lottery participants are savers of Tabungan BTN Batara and Tabungan BTN Prima.
Financial Impact on Customer Service Costs incurred for the period May up to December 2013 by Bank BTN for the improvement of services in response to the needs of its customers can be seen in the following table: Activity Arranger
Activity Costs (Million IDR)
Service Quality Assurance Improvement Consultant Survey Mistery Shoping Service Quality
HR Quality Improvement
1,700 1,607 489
Human Capital Development and Industrial Relations Bank BTN guaranteed the rights and obligations as well as the equal opportunities to all employees without distinction of ethnicity, religion, race,
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Bank BTN | Sustainability Report 2013
class, gender, and physical condition. Bank BTN also has a strong commitment to protect good working environment for the creation of a healthy, safe, and comfortable working atmosphere. In 2013, the turnover rate of Bank BTN was only 2.52% per year, or very low. This is consistent with the results of a survey conducted by using a survey method prepared by Louis Allen which shows Bank BTN’s Employee Engagement Index (EEI) at a score of 4.02% which suggests that the efforts made by Bank BTN in protecting good working environment for the creation of good working atmosphere has been conducive to fruition. The employees of Bank BTN are willing to work hard and strive to exceed what is expected to build a career at Bank BTN.
Bank BTN Policy For Bank BTN, labor is one of major keys to the success of the Bank’s business. We believe that what we have achieved now we will never get without the cooperation and efforts of our employees. Therefore, we are always trying to develop the ability of employees as well as give fair appreciation in accordance with their performance over the years. We wish to develop the potential of each employee optimally so that they can actively contribute to the sustainability of the Bank. We are also trying so that Bank BTN can be the best workplace for its employees. Bank BTN is managing all personnel affairs starting from planning every stage of employment development or starting from recruitment, employee selection, talent mapping, career development, and succession until retirement of employees. Bank BTN has been using the Integrated Human Capital Management as a guide to manage human resources at the Bank as can be seen in the illustration of Integrated Human Capital Management below. We can state that in general, the whole policy of the Bank in the field of human capital management is divided into 6 (six) policy sections, as follows:
1. Organization Development Policy Contains policies and procedures of the Bank in the field of preparation and development of organizational capability and infrastructure in human resource development. 2. Human Capital Acquisition Policy Contains policies and procedures of the Bank about the manner of the search, selection and placement of Employees at vacant positions, both from within and outside the environment of the Bank, to ensure placement of the right person on the right position (the right man on the right job). 3. Human Capital Development Policy Contains policies and procedures of the Bank on aspects of development and learning for employees to increase their competence so that all employees can perform their jobs well. The policies and procedures in this section govern the development process and learning, both formal and informal.
4. Human Capital Engagement Policy Contains policies and procedures of the Bank to increase commitment and motivation of Employees in working through the procedures of performance and career management and the creation of a harmonious working relationship between the Bank and Employees as well as relationship between Employees. 5. Human Capital Reward Policy Contains policies and procedures of the Bank to increase commitment and motivation of Employees in working through the procedures of rewarding employees, both in the form of cash and non-cash. 6. Human Capital Information System Policy Contains policies and procedures of the Bank regarding the processes and procedures of personnel administration related with Employee positions and jobs, and Human Capital information systems and database.
Application of Human Capital Management System Organization Development
Human Capital Acquisition
Human Capital Development
Human Capital Engagement
Human Capital Reward
Vission - Mission Strategic
Employee Needs Planning & Standards Formation
Spending & Development
Talent Mapping
Cash Remuneration
Cultural Induction
Procurement Employees
Education
Talent Management
Non-Cash Remuneration
Organization Structure
Assesment
Carrier Management
Occupational Positions and Ranks
Employee Selection
Performance Management System
Job Description & Job Specification
Alih Daya
Industrial Relations
Family Title
Appointment & Placement of Employees
Competency Requirements
Human Capital Administrasion Administration Personal
Employment Master Data
Human Capital Information on System (i-HCIS)
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Recruitment and Selection of Employees Changes in the external environment and in the organization bring changes in the needs for the number and quality of human capital. Employee recruitment is the initial step to meet those needs. Therefore, we need a certain procedure to ensure that we can attract potential talents to join our team and contribute to the growth of the Bank. The principles that we apply in recruiting employees are as follows: • Meeting the needs of employees based on Workload Analysis. • Employee Recruitment is done if the analysis results showed the difference (minus) between Workload Analysis calculation and the number of employees who currently serves in one unit. • Employee Recruitment can also be done when there are vacant positions to be immediately filled. • Employee Recruitment focuses on internal recruitment (promotion and rotation), but can also be done via external recruitment if internal recruitment is considered not sufficient or inadequate. The following are the types of recruitment conducted by Bank BTN. • Internal Recruitment: the Bank recruits existing employees to fill certain positions. Internal recruitment can be done with several ways as follows: » Promotion Mutation of employees to a higher level both in one division and to different divisions. » Rotation Mutation of employees to an equal position level both in one division and to different divisions
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Bank BTN | Sustainability Report 2013
• External Recruitment: the Bank recruits candidates from outside the Bank to fill certain vacant positions. External recruitment can be direct-hire of fresh graduates, prohire of experienced employees as well as labor outsourcing. To meet the employee selection principles of Bank BTN, applicants should submit a formal application letter with attachments as required by the Bank. The selection process is done by HCD and does not rule out by the branch office. The selection process should be approved by the Director of Human Capital Supervision. • The methods commonly used in employee selection are among others » Administrative selection » Checking references » Tests of academic potential » Interviews » Assessment » Health Test » Training Program Not all of the above methods is done in a selection process, but is adapted based on the purposes and positions that will be addressed. Talent Mapping Effective management and placement of employees is the key to the success of the Bank’s performance. Talent mapping is a method used by Bank BTN to manage and place employees in appropriate positions. This method measures the potential, competence and performance of employees. With this method, we assess employees based on performance and potential. What is meant by potential here is cognitive and personality, behavioral competence, technical competence, last education, and work experience. Assessment results will then be formulated into a matrix of 9 Boxes so that can be seen the performance level and potential of each employee as can be seen through the illustration.
Matriks 9 boxes Potential
Performance
Low
Medium
High
High (30003700)
Need To Develop: - Coaching & Concelling - Repositioning - On The Job Dev
7.
Potential
8.
Star Employee
9.
Fast Track (< 2 yr)
Medium (23512999)
Slow Starter: - Training - Study Literature - Mentoring
4.
Average
5.
Potential
6.
Middle Track (2 – 3 yr)
Unfit
1.
2.
Need To Develop: - Coaching & Concelling - Repositioning - On The Job Dev
3.
Normal Track (> 3 yr)
Low (10002350)
Slow Starter: - Training - Study Literature - Mentoring
By mapping into 9 Boxes, each employee is grouped by 9 group types, Group 1 is the group that is deemed low performing and low potential (unfit) while group 9 is the group considered performing and potentially most high (star employees). The group with the best performance and best potential get a chance to rise to a higher career level. Meanwhile, the group with the lowest performance and lowest potential may be evaluated, and possibly receive several sanctions, including transfer to lower positions.
supervisor who holds the position and proposed by the division personnel committee concerned. Succession is only for employees who belong to group 9 (star employees) in the talent mapping. The candidates who are nominated must not be involved in cases of certain irregularities. Then the successors will be provided development training by mentors and will be prepared to serve these positions in the next four years or more. If the successor has been truly ready, he/she can fill the position referred to only in a period of 1-2 years.
Career Path and Succession With the clear performance measurement system, we have the ability to assess any employee who has potential to be developed to a higher career level. Bank BTN gives this opportunity through rotation and promotion. Rotation and promotion is reserved only for employees who belong to group 9 (star employees, 8 and 6 (potentials), and 5 (average) in the talent mapping. Normally employees can be promoted in a period of over 3 years. However, if the employee indeed has potential and is performing well, promotion can be done in just 1-2 years.
Labor, Health, and Safety Management of stakeholders, particularly employees is directed to the progress of the Bank’s business with due regard to social responsibility of the Bank associated with labor, safety and employment health, and equality in employment opportunity without regard to gender differences and SARA, as well as focused on priorities and mutual respect in order to reach balance and harmony.
Meanwhile, for certain positions that are considered important, Bank BTN prepares a particular succession system. The candidate for succession of office is nominated by the
In an effort to guarantee the rights of labor over basic protection against workplace accidents, mortality and health, as well as to comply with Government policy that requires work providers to include all of their employees into Jamsostek (Social Security) program, Bank BTN provides Social Security benefits as part of the benefit allowance for its employees. Social Security
Bank BTN | Sustainability Report 2013
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benefits are given so that employees can work in peace and convenience. Social Security benefits provided by Bank BTN are as follows: • Workers’ Social Security (Jamsostek): Protection for workers in the form of compensation in cash as partial replacement of lost or reduced income and services as a result of events or circumstances such as workplace accidents, illness, pregnancy, maternity, old age, and death • Accident Insurance: Protection program aimed at coping with the loss of part or total income caused by the existence of social risks such as death or disability due to workplace accidents both physically and mentally. • Old Age Security: Protection program which is payable when workers reach 55 years of age or have met certain requirements. • Death Benefit: Protection program which is addressed to the heirs of the participants of the Social Security program who died not due to accidents at work in an effort to ease the burden of the family both in the form of funeral expenses and compensation in the form of money.
race, class, gender, or physical condition as part of the Benefit Allowance in order to improve optimal quality of work to better support Bank operations. The goal is to ease the burden of the employee if he/she and family must seek medical care/treatment.
In addition, Bank BTN provides a variety of health assistance for the purposes of health treatment and recovery. All employees are eligible for health assistance regardless of ethnicity, religion,
Ratio of Highest and Lowest Salaries The ratio of the highest and lowest salaries of employees of Bank BTN in 2013 is as follows:
The following is health aid given to the regular employees of Bank BTN. • Health treatment abroad • Hospitalization, including for a long period • Outpatient • Traffic accidents • Illnesses on business trips or education • Glasses • Periodic health examinations that include General Medical Check-up and Medical Check-up Appreciation to Employees In practice, Bank BTN does not only provide career path development opportunities to employees. Based on professionalism, we also provide them with various forms of proper appreciation in salaries, office allowance, worker’s social security, religious holiday allowance (THR), leave allowance, bonus, and so on.
Ratio of Highest and Lowest Salary in 2013 Item
Highest and lowest Employee salary Highest and lowest Director salary Highest and lowest Commissioner salary Highest Director salary and highest Employee salary
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Bank BTN | Sustainability Report 2013
Ratio
20.25 : 1 1.11 : 1 1:1 2.59 : 1
Training and Development In 2013, Bank BTN held a series of training and development programs, which include: • Career education and training, • Technical education and training, • Business-related training, • Academic education, and • Education and training for development of other employees
2012, which amounted to Rp190 million per employee. This means there is an increase in employee productivity in contributing to the achievement of the targeted profit of the company. In 2013, total funds incurred for training and development programs amounted to Rp110 billion. No fewer than 595 kinds of activities were carried out by Bank BTN to 19 331 employees as participants.
The achievement of Bank BTN’s work program in 2013 in order to improve the competence of its employees was better than the previous year. Employee productivity ratio in 2013 amounted to Rp195 million per employee, higher than in
Personnel Costs Ratio/ Employee
Profit Ratio/ Employee
Employee Asset Ratio
BOPO (%)
Profit (billion)
Assets (trillion)
Productivity Ratio
Personnel Costs (billion)
Financial Data
Total Employees
Prospective Employees
Year
Permanent Employees
Number of Employees
Human capital achievement to Bank BTN’s asset and profit growth throughout 2009 up to 2013 can be seen through the table and illustration below.
2009
4,085
255
4,340
58,448
490
654
88.29
13.47
112.90
150.69
2010
4,231
1,081
5,312
68,385
916
762
82.39
12.87
172.25
143.45
2011
5,135
1,202
6,337
89,121
1,119
892
81.75
14.06
176.42
140.76
2012
6,048
1,094
7,142 111,749
1,364
1,010
80.74
15.65
190.98
141.42
2013
6,869
1,142
8,011 131,236
1,562
1,198
82.19
16.38
195.86
149.54
Ratio of Assets per Employee (Billion Rupiah) 13.47
12.87
14.06
15.65
Ratio of Personnel Costs per Employee (Million Rupiah)
16.38 16.00 14.00 12.00 10.00 8.00 6.00 4.00 2.00 0.00
2009
2010
2011
2012
2013
Ratio of Net Income/Profit per Employee (Million Rupiah) 112.90 172.25 176.47 190.90 195.86
150.69 143.45 140.76 141.42 149.54
2009
2010
2011
2012
88.29
82.39
81.75
80.74
100.00 50.00 0.00 2011
2012
2013
82.10 88.00 86.00 84.00 82.00 80.00 78.00 76.00
150.00
2010
2013
BOPO (%)
200.00
2009
150.00 148.00 146.00 144.00 142.00 140.00 138.00 136.00 134.00
2009
2010
2011
2012
2013
Bank BTN | Sustainability Report 2013
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Turnover Rate During 2013, 202 employees resigned. Based on this figure, Bank BTN’s turnover rate is only 2.52% per year, or very low. The working environment which is unconducive is the reason of the very low turnover rate. In future, Bank BTN is committed to protecting the good working environment for the creation of an employment atmosphere that is healthy, safe, and comfortable. Employment Climate Survey Results In 2013, the results of a survey conducted using the survey method prepared by Louis Allen shows Bank BTN’s Employee Engagement Index (EEI) at a score of 4.02% with a scale as follows: • 1-2: Not Engaged, • 3: Neutral, • 4: Engaged, and • 5: Highly Engaged. This survey is consistent and/or in line with the turnover rate above that Bank BTN efforts in maintaining a good working environment in order to create a healthy, safe and convenient working atmosphere bears fruit in the form of Bank BTN employees willing to work hard and strive to exceed the expected to build a career at Bank BTN. Equality of Rights As has been described above Bank BTN gives equal rights and obligations as well as equal opportunities to all employees in developing their career and performing their duties in a professional manner without discrimination of ethnicity, religion, race, class, gender, and physical condition. Creating a Working Environment that is Conducive Bank BTN constantly implements measures to create a healthy, safe, and comfortable working environment. Every effort that we are doing in achieving those goals is always based on corporate culture guidelines for all employees of all office levels to work at Bank BTN.
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Bank BTN | Sustainability Report 2013
The corporate values are contained in the POLA PRIMA which includes: • Service Excellence: providing services which are more than what is expected from customers. This applies to the internal and external relationships of Bank BTN. • Innovation: continuously developing new ideas and refining sustainable programs that ultimately can deliver added value to Bank BTN. • Exemplary: every employee must start from himself/herself to be exemplary in behavior that reflects the values of Bank BTN’s work culture. This is true for fellow co-workers at Bank BTN and related parties. • Professionalism: competent in their field and always eager to develop themselves. Thus, every employee of Bank BTN can generate the best performance and provide added value to the Company and all employees. • Integrity: encouraging every employee of Bank BTN to be consistent in thought, words, and actions, in accordance with Bank BTN provisions, codes of professional conduct, and the principles of commendable truth. • Cooperation: always encouraged to build sincere and open relationship with fellow employees of Bank BTN and other parties, which is based on mutual trust and respect to achieve common goals.
Development of MSMEs and the Partnership Program The empowerment of Micro, Small and Medium enterprises (MSMEs) is a factor that is very important in the economic development in Indonesia in order to realize a fair and prosperous society. MSMEs are dominant as main national economic actors as well as vital development subjects for the expansion of business opportunities for new entrepreneurs and the absorption of labor and reduction of unemployment (pro job). Therefore, the development approach of supporting MSMEs becomes very important. As housing finance leading player in in Indonesia, Bank BTN has been carrying out its duty in providing
total financial solution to all its customers and the whole society. In order to provide comprehensive services to the community, Bank BTN is committed to helping the growth and development of micro, small, and medium enterprises (MSMEs), which play a crucial role for business and economic activities in Indonesia.
Bank BTN Policy SME lending products that exist at Bank BTN consist of KUR, Kredit Usaha Mikro, Kecil dan Menengah/KUMKM (Micro, Small and Medium Enterprise Loan) and Partnership program loans. With this lending, Bank BTN categorizes micro business customers as business that has maximum total assets of Rp50 million and maximum sale of Rp300 million per year. For this segment, Bank BTN disburses KUMKM of Rp100 million maximum. Small Business customers are businesses with total assets of Rp500 million maximum or total sale of Rp2.5 billion maximum per year. For small businesses, Bank BTN disburse a loan of Rp500 million maximum. Meanwhile, Medium Business is a business that has assets of Rp10 billion maximum or maximum sales of Rp50 billion per year. Bank BTN disburse a maximum loan of Rp5 billion to the segment.
People Business Lending (Kredit Usaha Rakyat) KUR BTN is disbursed to micro, small, medium enterprises and cooperatives through linkage
institutions. Bank BTN disburses KUR for working capital with a maximum loan term of three years and can be extended up to six years. KUR for investment purpose has a maximum loan term of five years and can be extended up to ten years. Loan collateral is the project or business being financed in accordance with Bank Indonesia regulations. Bank BTN charges a maximum effective interest rate 22% per year on loans up to Rp20 million and 13% per year on loans over Rp500 million (Retail KUR) and 13% per year on KUR Linkage (maximum 2 billion). As of 2013, total KUR customers of Bank BTN (outside Sharia financing) reached 13,362 accounts. This number grew 2.86% of total KUR customers in 2012 consisting of 13,755 accounts. This increase is reflected in the growth of KUR from year to year. When in 2012 Bank BTN disbursed KUR worth Rp1.24 trillion, in 2012 the number rose 40.64% to Rp733,708 million. KUR BTN lending since 2009 up to December 2013 has been spread across several economic sectors. The largest distribution of KUR during the last 5 years was made to the Wholesale and Retail Sector (27.99%), Construction sector (27.88%) and the Real Estate, Rental Business and Corporate Services (10.80%) and the remainder is disbursed to other sectors (33.34%). Meanwhile, the largest distribution of KUR BTN per region is to Java (68.53%), Sumatra (13.47%), and Kalimantan (5.55%).
4%
27 % .88
33 .3
Distribution of KUR BTN as of December 2013
Wholesalers and Retail
% 80
Construction sector Leasing Others
Bank BTN | Sustainability Report 2013
41
27
.99%
10 .
Largest distribution of KUR BTN by region as of December 2013
1 3 .47 %
5.5 5
%
% .45 12
Jawa
68. 53
Sumatra
%
Kalimantan Others
The obstacles encountered in the distribution of KUR BTN during 2013 were business sector segmentation restrictions in lending KUR, namely housing related industries and associated businesses, as well as cooperation with MSME coaching institutes. To overcome this problem, Bank BTN has taken the following measures: a. Establishment of business model appropriate to MSME lending b. Improvement of MSME lending business process to support optimal realization of MSME lending through management focus
Economy Sectors
Industrial
42
Partnership Program Activities The distribution of Bank BTN’s partnership program is spread across various economic sectors. The largest distribution until December 2013 was made to the Trade (60.70%) and Agriculture (42.36%) sectors. The following is a table of Bank BTN’s partnership program distribution for the period 2009-2013.
Disbursed until December 2013 (in Rp)
Percentage
4,807,539,375
12.39%
Commerce
23,560,074,584
60.70%
Agriculture
16,440,514,775
42.36%
Livestock
4,068,906,947
10.48%
Plantation
(14,978,729,285)
-38.59%
Fishery
711,318,038
1.83%
Service
2,848,937,412
7.34%
Others
1,354,027,626
3.49%
Total
38,812,589,472
100%
Bank BTN | Sustainability Report 2013
Distribution of Bank BTN Partnership Program by Economic Sector
7.34% 3.49%
1.83%
12.39%
59 %
Industrial
Agriculture
60.70%
-38.
Commerce
Livestock
% .48 10
Plantation Fishery Service Others
42.36%
Meanwhile, the largest distribution of Bank BTN partnership program per region is Java (65.06%), Sumatra (11.80%), and Sulawesi (10.48%).
Distribution of Partnership Programs by Region
.48%
11.8 0%
10
Jawa Sumatra Sulawesi
65 .0
6%
Our Partners Thrive Together Our efforts in lending to micro, small, and medium enterprises have also been welcomed by the success of the growth in MSME businesses, particularly the growth of MSMEs financed by Bank BTN. The growth of Indonesian MSMEs
will have a positive impact on the Indonesian economy as a whole. As an appreciation for their cooperation with Bank BTN in developing the national economy, we will show the profiles of our MSME partners, as follows:
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Testimonials from MSME Partners Nunung Nurnilasari
Nunung Nurnilasari is one of the development partners of Bank BTN Cirebon Branch Office who previously has been a development partner of Tangerang Branch Office since 2005 when the business domicile was in Jakarta. In 2008 she moved her business site to the city of Cirebon to date, and has become a development partner of Bank BTN Cirebon Branch Office since August 10, 2010 through the Partnership Loan Program. The Development Partner has acquired sufficient experience in her line of business since the year 2000. The type of business carried out is production and trade of Indonesian traditional batik cloth, handicraft: home supplies such as decorative lights, baskets, multipurpose boxes, racks, bags and furniture with wood construction or aluminum combined with woven rattan, water hyacinth or synthetic rattan.
44
Bank BTN | Sustainability Report 2013
Production Process/Procurement of Goods: Batik Cloth Procurement of traditional batik cloth is partly from own production of batik cloth and direct purchase from artisans either for supply or on order from buyers. Production is done with the procurement of raw materials, and batik design concepts are drawn by herself which is then processed by batik craftsmen in Trusmi (Cirebon Batik Craftsmen Center) and Pekalongan with wages according to mutual agreement (adjusted to the level of difficulty and artistic value). The type of batik material traded is cotton and silk fabric with stamp and written batik techniques.
Handicraft & Rattan furniture Production/procurement on the basis of orders from buyers and produced by the sub-producers in the regions of Tegal Wangi and Rajagaluh. Sales system is directly to consumers or Galleries/Boutiques with cash and loan payments. Accounts receivable is usually payable in 14 calendar days or 2 weeks. Local Marketing Regions: Jakarta, Surabaya and Semarang for Batik trade targeting individual customers of embassies, government agencies and galleries/boutiques. International Marketing Regions: Italy, France, Lebanon and Saudi Arabia specifically for Rattan Furniture and Handicrafts. Exhibitions ever attended are among others: • ICRA 4th Interior and Craft Products Exhibition, July 27 to 31, 2005 at the JCC with Debindo as Organizer • KRIDAYA 2010 Exhibition, August 18 to 22, 2010, at the JCC with PT Mediatama Binakreasi as Organizer • The 13th Jakarta International Handicraft Trade Fair (INACRAFT 2011), April 20 to 24, 2011 at the JCC with PT . Mediatama Binakreasi as Organizer • Indonesia Creativity Exhibition Products Week Exhibition (Pameran Pekan Produk Kreativitas Indonesia, PPKI) 2011, July 6 to 10, 2011 with Ministry of Cooperatives and Small & Medium Enterprises Republic of Indonesia as Organizer
• The 14th Jakarta International Handicraft Trade Fair (INACRAFT 2012), April 25 to 29, 2012, at the JCC with PT . Mediatama Binakreasi as Organizer • The 3rd Muslim World Biz Exhibition, September 12 to 16, 2012, at the JCC with OIC - International Business Centre Malaysia as Organizer • Community Empowerment Work Hold Exhibition (Gelar Karya Pemberdayaan Masyarakat, GKPM) Expo & Award 2012, September 27 to 30, 2012 with Komenkokesra RI as Organizer Through participation in exhibitions, the development partner is quite well known by buyers from abroad for ordering batik cloth and handicraft products. The business of the development partner is thriving thanks to support from the Partnership Pogram of Bank BTN. Currently, applicants are more focused on the business of production and trading of batik cloth, while Handicrafts & Rattan Furniture are still sporadic and production is done based on orders.
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Ratna Irawati
The most important skills and abilities to be successful is the ability in setting time. This is believed and owned by Ratna Irawati commonly called Ira. In addition to her role as a housewife, she also serves as nurse and owner of a rattan handicraft business. This lady who was born in 1971 in Jakarta spent her school years in several regions along with her parents as a State-owned Enterprise (BUMN) employee. Until it was time for continuing study in 1990, she decided to return to Jakarta to study nursing. Professional curiosity has brought brought into several fields of work. After completing college and working in a private hospital in Jakarta, Ira studied broadcasting and became a broadcaster for a private radio in Jakarta until 1997.
46
Bank BTN | Sustainability Report 2013
The nurse who is also a former broadcaster was also filling her time to become a health educator in a NGO and actively taught drum band in a kindergarten (TK). From all of these experiences and the ability to socialize and interact later became her capital for running the rattan business today. In early 2007, after observing various developments in the handicraft business in Indonesia has fostered the creativity spirit of this mother of two kids to plunge into the world of entrepreneurship. Ira selected rattan handicraft on the grounds that this kind of business is not that many if compared with clothing and batik business, so that the business opportunity is still wide open. With strong determination and
confidence to develop her own ability Ira is not reluctant to ride along in a container truck for her business trips of going back and forth Jakarta – Cirebon. She employs several furniture makers in Cirebon to make a variety of handicrafts demanded by the market today. Although those craftsmen remain in Cirebon it is not an obstacle for Ira to coordinate with them to be creative. She still remembered in her mind that the first buyer of the craft is her schoolmate who bought 4 pieces of large size rattan baskets for her boutique business. Later she managed to sell 4 pieces of dining chairs to other friends. It is from there that her spirit to be able to continue to run her rattan business has been increasingly encouraged. Thus in the same year, ESTU RATTAN was launched with the confidence that it would thrive to produce diverse creative handicrafts that are much in demand by society.
Top of FormThis business can be run, powered by the desire to develop rattan craft business so that people become interested again because now they are more interested in buying crafts from plastic or metal. By following the development and growing market demand, Ira required support and additional capital for business development. In 2009, Bank BTN lent funds as well as made ESTU RATTAN a Development Partner that is always included in large scale handicraft exhibitions in Jakarta. Through these exhibitions ESTU RATTAN sales increasingly improved. Then in 2011 Bank BTN lent funds again so that ESTU RATTAN is more able to increase production and sell rattan handicraft to the public. Thanks to the support of Bank BTN, Ira is grateful that ESTU RATTAN remains an independent business that persists and continues to run in the middle of economic competition that is getting tougher.
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Ahmad Yani
Through a long struggle and high spirit, Ahmad Yani or familiar by the name of Yani has succeeded in establishing simple furniture in Yogyakarta, deliver his products to the many parts of the archipelago and even abroad, including Mauritius, Jordan, France and Malaysia. For approximately three years, Ahmad Yani a former salesman has opened his own business with a very small capital of Rp2 million that he used to make frames and some small calligraphy products as well as some simple products such as chairs and tables. After having finished college he went to where he worked and armed with furniture tools and ready-made wood he made some works for sale in his showroom. This activity became Ahmad Yani’s routine activity every day after college. His career in the field of furniture day after day has begun to produce results. One time the college
48
Bank BTN | Sustainability Report 2013
held an exhibition and this opportunity was not wasted by Yani for displaying his wares at the prestigious event with the hope that there is an advantage in participating in the exhibition and increasing his spirit to introduce products to his friends, especially in the campus environment. It had been Yani desire to develop his furniture business not only in the region of Yogyakarta. He wanted his creation to be sold all over Indonesia and even to foreign countries. In early 1992 to realize his obsession he tried to migrate to Jakarta and set up a furniture shop in Jakarta and as the result his merchandise could be consumed by overseas consumers. Calligraphy is the superior product of Ahmad Yani but he was not only satisfied with the furniture he was working on all this time and in order to increase business prestige he tried to add a collection of products with calligraphy in
the form of wood carving that turned out to have earned a pretty good market response. According to Ahmad Yani the calligraphy business is very risky, especially in writing verses that if wrong could have a different meaning. “Calligraphy is quite complicated because it involves accuracy.” One day he participated in a very large exhibition and there was a calligraphy seller who was almost doomed to failure because the carved writing turned out to be wrong, and this seller was not aware because he just bought from a craftsman for sale. Fortunately he could replace it with another item from Yani. Thanks to the uniqueness of his products, Yani’s calligraphy was purchased by the fifth Indonesian President, Mr. Susilo Bambang Yudhoyono (SBY) who bought three pieces. Yani was overcome by pride and emotion when he knew that his merchandize was purchased by the number one person in this Republic, and in addition other merchandize were also bought by there are several Middle East embassies. According to Yani the market for calligraphy teak wood carving is very good, because the calligraphy models he is working on is very rare in the market, despite the expensive price ranging
from Rp400 thousand to Rp5 million each but demand is many and Yani is also prepared to give a pretty long warranty. Although calligraphy as his superior product is hard selling, but Yani is not satisfied because to get teak wood for raw material is increasingly difficult mainly due to illegal logging. Ahmad Yani’s persistence in running his business intensified after he became a Development Partner of Bank BTN and obtained additional working capital from the Bank to support business development. As a development partner who is always included in large scale handicraft exhibitions in Jakarta, his furniture business continues to thrive, and calligraphy orders come from all over Indonesia, while antique furniture orders made of teak wood have been increasingly in demand, including the desks and chairs of all Judges in the Attorney General’s which are the production of Aura Jati Jepara managed by Yani. The Jakarta Police mosque pulpit also uses calligraphy made by Yani. Thanks to the support of Bank BTN, Ahmad Yani is grateful that Aura Jati Jepara has become an independent business and continues to survive even thrive until now amidst the increasingly stringent competition.
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Sustainability Indicators
These Sustainable Indicators are organized based on financial and non-financial categories which include environment and social aspects and other aspects relevant to the sustainability report.
Performance indicators or Key Performance Indicators (KPI) of BTN Bank are demonstrated through 4 (four) perspectives using the Balanced Scorecard method that we can convey as follows: • Financial Perspective, namely management performance which includes the achievement of corporate financial targets such as ROA, ROE, NIM, Profit Margin and CER. • Customer Perspective, which consists the market share for KPR and KPA and Service Index. • Business Process Perspective, which consists of GCG Index, project implementation changes, implementation percentage of IT Master Plan, opening of networks, growth of commercial third-party funds, growth of commercial loans, implementation of i-Loan, growth of consumer third-party funds, CASA ratio, implementation of performance management (BSC), percentage of NPLs (Gross), risk profile, and implementation of Human Capital Systems. • Growing and Learning Perspective, which consists of Culture Assessment Index, implementation of organizational structure, and implementation of business process.
FINANCIAL INDICATORS Bank BTN managed to earn a net profit of Rp1.56 trillion in 2013, up 15% from 2012. Meanwhile, Bank BTN loan financing position reached Rp99.33 trillion and funding position amounted to Rp96.21 trillion.
50
Bank BTN | Sustainability Report 2013
Meanwhile, in terms of asset growth as of December 31, 2013 Bank BTN managed to increase up to 17% to Rp131.17 trillion from Rp111.75 trillion in the previous year. Based on total assets, Bank BTN remained firm in maintaining its position in the group of 10 national banks with the largest assets. Main financial ratios are also relatively stable. Several indicators such as CAR reached 15.62%, LDR 104.42%, ROA 1.79%, and ROE 16.05% at the end of 2013. Bank BTN also managed to keep the stability of Net Interest Margin (NIM) above 5%, namely worth 5.44% in 2013. However, in terms of loan quality there was an improvement. In 2013, NPLs (net) was at the level of 3.04% a reduction from 3.12% in 2012. Therefore, management pays special attention and review this based on better governance to improve loan quality in times to come. In addition to maintaining its banking position, the bond ratings of Bank BTN also experienced improvement. The Indonesian Securities Rating Agency (Lembaga Pemeringkat Efek Indonesia, Pefindo) has raised Bank BTN rating for bonds issued, namely Bond XII 2006, Bond XIII 2009 and Bond XIV 2010, Bond XV 2011, and Sustainable I Bond 2013 of which each get a rating increase from AA - to idAA. The increase in rating reflects the strengthening position of Bank BTN and the improvement of profitability indicators.
In terms of increased efficiency, to support the smooth running of the business as well as to optimize Bank operations in the face of customer expectations that are increasingly high and complex, Bank BTN is applying the I–Loan and I-Coll technology integratedly with the risk management system of the Bank. Several other IT applications that have been implemented to accelerate business processes are among others Voip, HCIS, Interface RTGS Outwards, Single Sign On, as well as the Clearing intercity stabilization application. In terms of market share of Government subsidized loans for low income communities (MBR), Bank BTN has remained consistent to maintaining its commitment to the Government by channeling financing for Subsidized KPR and Bank BTN is the largest distributor bank. Throughout 2013, Bank BTN managed to channel Subsidized KPR amounting to Rp6.02 trillion, or as much as 80,148 housing units through Conventional Banks and Rp0.49 billion or as much as 6,524 housing units through Sharia Business Unit. Thus, as a whole Bank BTN disbursed 15% (14% from BTN Conventional and 1% from Sharia Business Unit). Bank BTN has also performed a number of diversified businesses in order to increase fee-based income, improve margins, reduce concentration of loan risk, as well as manage maturity mismatch. Bank BTN plans to improve the composition of housing loans and non-housing loans. One way is through the increase in priority banking service and bancassurance.
NON-FINANCIAL INDICATORS There are several levels of customer service models that can be implemented by Bank BTN. The most superior service level is a service that is often referred to as service excellence. Through POLA PRIMA corporate culture, Bank BTN seeks to continue to improve its services to the customers. In 2013, Bank BTN managed to win a number of awards, such as: • Indonesia Most Trusted Companies Award 2013 (Most Trusted Company based on Corporate Governance Perception Index, CGPI)
• Indonesia Middle-Class Consumers’ Choice 2013 (The Indonesia Middle-Class Brand Champion 2013, Product Category: KPR) • 2013 Banking Service Excellence ( 5th Best Overall Performance (Islamic Business Unit)) • 2013 Banking Service Excellence (1st Best Phone Handling (Islamic Business Unit)) • 2013 Banking Service Excellence (2nd Best Phone Handling (Commercial Bank)) • Sharia Finance Award 2013 - The Best Sharia Finance Institutions (Banks that are categorized as “Very Good” in terms of Financial Performance in 2012) • IT Banking Excellence Award 2013 (IT Banking Excellence Award 2013, in the category of Core Capital Rp5-30 trillion) • Adiupaya Puritama 2013 (Rank 1 Implementing Bank of KPR Sejahtera through the FLPP Program, Loan Provider Institution - Conventional category) • Adiupaya Puritama 2013 (Rank 1 Implementing Bank of KPR Sejahtera through the FLPP Program, Loan Provider Institution – Sharia category) This suggests that the efforts of Bank BTN have begun to produce the expected results. Meanwhile, in terms of employment, the results of a survey conducted by Louis Allen Worldwide Inc. showed that the Employee Engagement Index (EEI) of Bank BTN in 2013 was at the score of 4.02, which is almost the same as the achievement in 2012. With the scale range of 1 - 5, this value indicates that the employees enjoy the working atmosphere at Bank BTN and have felt bound as an integral part of the company. This is also supported by Bank BTN’s policy that gives equal rights and obligations as well as equal opportunities to all employees in developing career and performing their duties in a professional manner without discrimination of ethnicity, religion, race, class, gender, and physical condition. In addition, Bank BTN constantly implements measures to create a healthy, safe and comfortable working environment. Every effort that we do in achieving those goals is always based on corporate culture guidelines for all employees of all levels to work at Bank BTN. Bank BTN has a commitment to
Bank BTN | Sustainability Report 2013
51
making the company a learning organization, where every employee is encouraged to develop his/her potential and competence in order to work better and be ready for higher positions. The commitment is also realized by keeping a good working environment for the creation of a working atmosphere that is healthy, safe and comfortable. As a result, during 2013, there were only 202 employees who resigned. Based on this figure, the turnover rate of Bank BTN is only 2.52% per year, or can be said very low. Then, based on third party assessment conducted by the Indonesian Institute for Corporate Governance (IICG), Bank BTN is again awarded as the Most Trusted Company 2013. This award is the third time received by Bank BTN. A survey conducted by IICG and SWA Magazine carried the theme “GCG in the Knowledge Perspective” and Bank BTN managed to get a score of 85.42 from a maximum value of 100. Bank BTN has been elected after going through a series of assessments by industry analysts regarding important parameters, such as innovation power, management, transparency, and ability to serve customer complaints. The award shows that the implementation of banking compliance principles has been fervently run by Bank BTN. This has been done in order to maintain business continuity by upholding good corporate governance principles, namely Transparency, Accountability, Responsibility, Independence, as well as Fairness and Equality. Of the achievements mentioned above it can be said that Bank BTN is very aware of its steadfast commitment to remain focused on housing finance as the primary business of the Bank by making sustainable development as the most important factor to put forward.
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Bank BTN | Sustainability Report 2013
GCG ASSESSMENT Bank BTN is implementing the GCG assessment program periodically. In this case, there are two types of GCG assessment to be performed, namely third party assessment and self-assessment. In 2013, Bank BTN implemented • Third party assessment in cooperation with the Indonesian Institute for Corporate Governance (IICG). After having performed an independent and objective ranking based on CGPI and the theme “GCG in the Knowledge Perspective”, IICG concluded that Bank BTN is included in the company category of “Very Trustworthy” as well as managed to retain the award as “The Most Trusted Company.” • Self-assessment in accordance with Bank Indonesia Regulation which requires that Banks should perform internal selfassessment of the implementation of GCG. Bank BTN has been assessing GCG internally since 2007 using the SelfAssessment Method.
GCG Assessment by IICG Since the last decade, IICG has consistently conducted Corporate Governance Perception Index (CGPI). In 2013, CGPI was conducted through four assessment phases with different weights that we can convey as follows: selfassessment (25%), completion of documents (23%), paper and presentation (17%) and observation (35%). Research results and CGPI rankings are later organized into 3 (three) rating categories, namely “Fairly Trusted”; “Trusted” and “Highly Trusted”. After the independently and objectively ranking based on CGPI criteria, IICG concluded that Bank BTN is included in the company category of “Highly Trusted”. The CG implementation quality score of Bank BTN in 2013 was 85.42 (eighty five point forty two) of a maximum value of 100 (one hundred) and at the same time managed to get an award as “The Most Trusted Company”. According to IICG, the management of the company has been done properly.
GCG Assessment by IICD As a public company, the implementation of GCG by Bank BTN is continually assessed by independent parties. One of which is carried out by IICD using the Organization for Economic Cooperation and Development (OECD) standards, which include five assessment factors, as follows: • The Rights of Shareholders and Key Ownership Functions • The Equitable Treatment of Shareholders • The Role of Stakeholders in Corporate Governance • Disclosure and Transparency • The Responsibilities of the Board As explained by IICD that the activities aim to continue to encourage the spirit of GCG implementation as well as to give the highest appreciation and award to the company that has managed to implement GCG well, true and fervently.
AWARDS In 2013, Bank BTN received or won various awards which proved its commitment in maintaining business continuity, maintaining good corporate governance, as well as contributing to society and the environment, among others • The Minister for Public Housing of the Republic of Indonesia has awarded Bank
BTN with “Adiupaya Puritama 2013” due to the success of Bank BTN in being the Best FLPP Program Executor (first rank in conventional banking and first rank in sharia banking). This shows Bank BTN’s seriousness to run the mandate from the Government in providing the best services for the people who are in need. • In the field of GCG, Bank BTN has proved its commitment to being one of the companies with the best Governance in 2013. Bank BTN won the Most Trusted Company Based on Corporate Governance Perception Index from IICG. The same award was also obtained by Bank BTN in 2012. • “BUMN Marketing Award 2013” award was given to Bank BTN in the category of “BUMN Marketing 2013 Silver Winner & Bronze Winner I”. Bank BTN has been entrusted by the Government as a distributor of housing loans since 1974. Since that time Bank BTN has struggled to help Indonesian families from all walks of life to have a decent place to stay. Those various awards are indicators that have demonstrated the commitment of Bank BTN to conduct business in a sustainable manner. As for complete information of the various awards earned by Bank BTN throughout the year 2013 this can be seen in the Annual Report 2013.
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53
Global Reporting Initiatives (GRI) Cross Reference This Sustainability Reporting is adjusted to international standards that comply with the rules of Global Reporting Initiatives (GRI) 3.1. Category
Page
1 Strategy and Analysis 1.1 Statement of the highest decision-maker in the organization associated with the sustained relationship to the organization and its strategy.
6-9
1.2 Description of key impacts, risks and opportunities.
AR
2 Organizational Profile 2.1 Name of the Organization.
Cover
2.2 Main brands, products and/or services.
AR
2.3 Operational structure of the organization, operating companies, subsidiaries, and joint ventures.
AR
2.4 Location of head office of the organization.
4, 59, AR
2.5 Number of countries where the organization operates, and names of countries where there is Sustainable connection or related to the major or special operations.
irrelevant
2.6 Nature of ownership and legal entity. 2.7 Markets served (including geographic details, sectors served, types of customers / beneficiaries).
4 27-30
2.8 The size the reporting organization - Number of employees; - Net Sales; - Total capitalization broken down in debt and equity; - Quantity of products and services rendered.
AR
2.9 Significant changes that occurred in the reporting period related to the size, structure, or ownership.
AR
2.10 Awards received during the reporting period.
53
3 Parameters of the Report 3.1 Reporting period for the information presented.
2
3.2 Date of most recent report.
2
3.3 Reporting cycle.
2
3.4 Address of contact for questions related to the report and its contents.
59
Scope and Restrictions of the Report 3.5 The process of determining the contents of the report, including: - Establishing materiality; - Prioritized topics in the report; and - Identification of stakeholders expected by the organization to use the report.
2
3.6 Restrictions of the report (for example countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers). See GRI Protocol Restrictions for further guidance.
2
3.7 State any limitations of the scope or restrictions of the report. 3.8 Basis for reporting joint ventures, subsidiaries, leased facilities, outsourced operations and other entities that affect significantly, so that the information can be compared over time and or between organizations.
54
2 AR
3.9 Data measurement techniques and the basis of calculations, including assumptions and techniques underlying estimations applied in the compilation of indicators and other information in the report.
2
3.10 Explanation of the impact of the re-statement on the information provided in previous reports, and the reasons for making such re-statement (for example due to mergers/ acquisitions, change of base years periods used, the nature of the business, measurement method).
2
Bank BTN | Sustainability Report 2013
Category
Page
3.11 Significant changes from previous reporting periods related to the scope, restriction, or measurement method used in the report.
2
3.12 Table which shows the location of Disclosure Standards in the report.
54-58
3.13 Current policies and practices aimed at seeking external assurance for the report. If you do not include an assurance report, to accompany the sustainability report, explain the scope and basis of any external assurance available. Explain the relationship between the organization and the assurance provider.
2, AR
4 Governance, Commitment, and Engagement 4.1 The governance structure of the organization, including committees under the highest governing body responsible for specific tasks, such as in setting strategy or mechanism for the supervision of the organization.
AR
4.2 Indicate whether the Chairman of the highest governing body is concurrently an executive officer (and, if yes, please show their functions in the management of the organization and the reasons why there is such a condition).
AR
4.3 For an organization that has a single board structure, please state the number of members of the highest governing body who come from independent groups or non-executive members.
AR
4.4 The mechanism for shareholders and employees to provide recommendations or direction to the highest governing body.
AR
4.5 The relationship between compensation for members of the highest governing body, senior managers, and executives (including travel arrangements ) and the performance of the organization (including social and economic performance).
AR
4.6 The existing process in the highest governing body in ensuring the avoidance of conflicts of interest.
AR
4.7 The process of determining qualifications and expertise of the members of the highest governing body in directing organizational strategies related to economic, environmental, and social topics.
AR
4.8 Internal development of the statements on mission or values, code of conduct, and principles relevant to economic, environmental and social performance as well as the status of implementation.
AR
4.9 Procedure in the highest governing body to oversee the management and organizational identification of economic, environmental and social performance, including risks and relevant opportunities, and adherence or compliance with the international standards that have been approved, code of conduct, and principles.
AR
4.10 The process in evaluating the performance of the highest governing body, especially related to economic, environmental, and social performance.
AR
Commitment to External Initiatives 4.11 Explanation of how the precautionary approach or principle is used by organization
13
4.12 Charters, principles, or other initiatives developed externally related to economic, environmental, social and also supported/adopted by the organization.
13
4.13 Membership in associations (such as industry associations) and or advocacy organizations.
AR national/international
Involvement of Stakeholders 4.14 List of stakeholder groups engaged by the organization.
2, 22-27
4.15 The basis used in identifying and selecting stakeholders that will be involved.
none
4.16 The approach used to involve stakeholders, including frequency of engagement based on type and group of stakeholders.
17-19
4.17 Topics and major concern raised through stakeholder engagement, and how the organization responded to the topics and major concern, including through reporting.
none
Economic Performance Indicators EC1 Economic value generated and distributed directly, including income, operating costs, compensation to employees, donations and investments to the public, retained earnings and payments to capital providers and the government.
AR
EC2 Financial implications and various risks and opportunities for all activities of the company in the face of climate change.
AR
EC3 List of company liability coverage in the defined benefit plan.
AR
EC4 Significant financial assistance obtained from the government.
AR
Market Presence EC5 Employee wage standard parameters in the initial level compared with minimum employee wage applicable in the location of a particular operation.
AR
EC6 Policy, implementation and distribution of spending on local subcontractors (work partners) existing in various operating locations.
none
Bank BTN | Sustainability Report 2013
55
Category
Page
EC7 Local labor hiring procedures and some people at the senior management level drawn from the local community in several operating locations.
none
EC8 Development and impact of infrastructure investments and services provided especially for public interest through trade, and services or that is pro-bono.
none
EC9 Understanding and explanation of indirect economic impacts, including the extent of the impact
AR
Performance Indicators in the Environmental Field Materials EN1 Use of Materials; itemized by weight or volume. EN2 Use Percentage of Recycled Materials.
irrelevant none
Energy EN3 Direct Energy Consumption of Primary Energy Resources. EN4 Indirect Energy Consumption by Primary Source.
none irrelevant
EN5 Energy Savings through Conservation and Efficiency Improvement.
none
EN6 Initiatives to obtain products and services based on energy efficiency or renewable energy.
none
EN7 Initiatives to reduce indirect energy consumption and reductions achieved.
none
Water EN8 Total water withdrawal by source.
none
EN9 Water sources significantly affected by withdrawal of water.
none
EN10 Percentage and total volume of water reused and recycled.
none
Biodiversity EN11 Location and Size of Land owned, leased, managed by the reporting organization located within, or adjacent to a protected area or areas that have high biodiversity values outside the protected area.
none
EN12 Description of various significant impacts caused by the activities, products, and services of the reporting organization on biodiversity in a protected area and in areas that have high biodiversity values outside the protected area.
irrelevant
EN13 Habitat Protection and Restoration.
19, 21-23
EN14 Strategies, actions, and future plans for managing impacts on biodiversity.
19, 21-23
EN15 Number of species based on the level of extinction risk that are included in the Red List of the IUCN (IUCN Red List Species) and are included in the list of national conservation with habitat in areas affected by the operations.
irrelevant
Emissions, Effluents and Waste EN16 Total greenhouse gas emissions that are directly or indirectly specified by weight.
irrelevant
EN17 Other indirect emissions of greenhouse gases itemized by weight.
irrelevant
EN18 Initiatives to reduce greenhouse gas emissions and the achievement.
irrelevant
EN19 Emissions of chemicals that damage the ozone layer (ozone depleting substances/ODS) specified by weight.
irrelevant
EN20 NOx, SOx and other significant air emissions itemized by type and weight.
irrelevant
EN21 Total water discharge by quality and destination.
irrelevant
EN22 Total weight of waste by type and disposal method .
irrelevant
EN23 The number and volume of significant spills .
irrelevant
EN24 Weight of waste transported, imported, exported, or treated that are considered dangerous according to the Basel Convention Annex I, II, III and VIII, and the percentage of transported waste internationally.
irrelevant
EN25 Identity, size, protected status, and biodiversity value of water bodies and related habitats that are significantly affected by water disposal and runoff of the reporting organization.
irrelevant
Products and Services EN26 Initiatives to mitigate environmental impacts on products and services and the reduced extent of impact.
irrelevant
EN27 Percentage of products sold and packaging materials that are drawn by category.
irrelevant
Compliance EN28 Significant monetary value of fines and non-monetary sanctions for violations of environmental laws and regulations. EN29 Significant environmental impacts as a result of the movement of products and other goods and materials used for the company’s operations, and the labor that move them.
56
Bank BTN | Sustainability Report 2013
irrelevant none
Category
Page
Comprehensive Aspects EN30 Total expenditure for environmental protection and investment by type.
25
Social Performance Indicators Employment LA1 Total workforce by employment type, employment contract, and region.
AR
LA2 Employee turnover rate and number age group, gender, and region.
34, 40, AR
LA3 Benefits provided to full-time employees (full time) that are not provided for non-permanent employees (part-time) according to the principal activity.
37-39
LA4 Percentage of employees covered by collective bargaining agreement.
none
LA5 Minimum notice period of significant activity changes, including whether they are outlined in the collective agreement.
none
LA6 Percentage of total workforce represented formally in the Health and Safety committee between management and the workers that help monitor and give advice to office safety and health programs.
none
LA7 Level of physical accidents, illnesses due to work position, lost days, and absenteeism, and the number of deaths due to work by region.
none
LA8 Programs on education, training, counseling/guidance, prevention, local risk control to help the employees, family members and community members regarding serious/dangerous diseases.
24-25
LA9 Health and safety problems that are covered in formal agreements with labor unions.
37-38 AR
LA10 Average hours of training per year per employee by category/group of employees.
38, AR
LA11 Programs for setting skills and lifelong learning that support continued employment of the employees and assist them in facing the end of career.
36-37
LA12 Percentage of employees receiving performance reviews and career development on a regular basis.
40, AR
LA13 Composition of the governing body/authority and breakdown of employees per category / group by gender, age group, minority group membership, and other diversity indicators. LA14 Basic salary comparison/ratio of men to women by group/category of employees.
AR 38, AR
Human Rights HR1 Percentage and number of significant investment agreements that contain human rights clauses or have undergone the process of screening/filtration associated with human rights aspects.
none
HR2 Percentage of significant suppliers and contractors that have undergone the process of screening/filtration in terms of human rights aspects.
none
HR3 Total training time for employees in terms of policies and procedures related with the relevant human rights aspects of the activities of the organization, including the percentage of employees that have undergone training.
AR
HR4 Number of occurred discrimination cases and actions taken/done.
none
HR5 Identification of all association and assembly activities that may pose significant risks and actions taken to support the rights.
none
HR6 Identification of activities containing significant risks in the onset of child labor cases, and the measures taken to support efforts to eliminate child labor.
none
HR7 Identification of activities containing significant risks that may cause forced or compulsory labor, and measures taken to support the efforts to eliminate forced or compulsory labor.
none
HR8 Percentage of security personnel trained in policies and procedures of the organization concerned with human rights aspects relevant to the activities of the organization.
none
HR9 Total violation cases related to the rights of indigenous people and the steps taken.
none
Community Responsibility SO1 The nature, scope, and effectiveness of any programs and practices are carried out to assess and manage the impacts of operations on communities, both at the time of launch, during operation, and at the end.
AR
SO2 Percentage and number of business units that have the risk of corruption.
none
SO3 Percentage of employees trained in anti-corruption policies and procedures.
none
SO4 Actions taken in response to the incidence of corruption.
AR
SO5 Public policy position and participation in lobbying and public policy-making process.
none
SO6 Value of financial and in-kind contributions to political parties, politicians, and related institutions based on the country in which the company operates.
none
Bank BTN | Sustainability Report 2013
57
Category
Page
SO7 Total legal action against violation of provisions on anti-competition, anti-trust, and monopoly practices and sanctions.
none
SO8 Significant money value of fines and number of non-monetary sanctions for violations of the laws and regulations.
none
Product Responsibility Performance Indicators PR1 Life cycle stages in which the impact on products and services related to health and security is assessed for improvement, and percentage of categories of products and services important to follow the procedures.
irrelevant
PR2 Total non-adherence (non-compliance) towards regulations and ethics regarding the impact on health and safety of products and services during the life cycle, per product.
irrelevant
PR3 Type of product and service information required by procedures and percentage of products and services significantly associated with the required information concerning.
none
PR4 Total non-adherence (non-compliance) towards regulations and voluntary codes concerning provision of information on products and services and product labeling, per product.
none
PR5 Practices related to customer satisfaction, including survey results measuring customer satisfaction.
30-33
PR6 Programs on adherence to laws, standards related to marketing communication, including advertising, promotion and sponsorship. PR7 Total non-adherence (non-compliance) towards regulations and voluntary codes concerning marketing communication, including advertising, promotion, and sponsorship, according to the product. PR8 Total number of complaints based on violations of customer privacy and customer data loss. PR9 Monetary value of fines for non-adherence (non-compliance) towards laws and regulations concerning procurement and use of products and services.
31 none
AR none
Portfolio of Products FS1 Policies with regard to environmental and social aspects which are applied to business lines.
none
FS2 Procedures for assessing and screening of environmental and social risks on business lines.
none
FS3 Process for monitoring implementation and compliance with environmental and social requirements by the customer included in the agreement or transaction.
none
FS4 Process for improving staff competency to implement environmental and social policies and procedures as applied to business lines.
none
FS5 Interactions with customers/associations/business partners about opportunities as well as environmental and social risks.
20-22
FS6 Percentage of portfolio for line of business by specific region, business segment (for example micro/SME/large) and also by sector.
58
26, 30, 40-43
FS7 Monetary value of products and services designed to provide social benefits specific to each business line grouped by objective.
27-30
FS8 Monetary value of products and services designed to provide environmental benefits specific to each business line grouped by objective.
none
FS9 Coverage and frequency of audits to assess the implementation of environmental and social policies as well as procedures and risks.
none
FS10 Percentage and number of companies placed in institutional portfolio with which the SR reporting organization interacts on environmental or social issues.
none
FS11 Percentage of assets to perform environmental and social screening both positive and negative.
none
FS12 Voting policy as applied to environmental or social issues related to shares through which the SR reporting organization has voting rights on the shares or provide suggestions to conduct voting.
none
Bank BTN | Sustainability Report 2013
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Contact us Corporate Secretary Division Menara Bank BTN Jln. Gajah Mada No.1 Jakarta 10130 - Indonesia Telp. +62 (021) 6336789 Faks. +62 (021) 6336719 E-mail :
[email protected] www.btn.co.id
Bank BTN | Sustainability Report 2013
59
Sustainability Report 2013
PT Bank Tabungan Negara (Persero) Tbk Menara Bank BTN Jln. Gajah Mada No. 1 Jakarta 10130 Phone : 62-21 6336789 Fax : 62-21 6346704 E-mail :
[email protected] Call Center : 500 286
