2014 Sustainability Report
Enriching People, Advancing Sustainability
IDX: BBNI
Contents
2
BNI’s Sustainability Performance Progress
5
About BNI
11
About this Report
16
Greeting from the President Commissioner
20
Message from the President Director
25
BNI Stakeholder Sustainability Pillars
33
Ethics and Governance
45
BNI for Indonesia
51
BNI for Customers
63
BNI for Employees
75
BNI for Society
89
BNI for the Environment
98
Statement GRI G4 Core
99
GRI G4 Core Index
PT Bank Negara Indonesia (Persero) Tbk is a member of:
Sri Kehati Index
Enriching People, Advancing Sustainability Since the start of BNI’s operations to serve customers and the people of Indonesia, the bank has had one main purpose, which is to help every customer and all the people of this country to prosper. However, we do not stop there, all BNI operations and activities must be based on trust, integrity, professionalism and show broad responsibility to the environment and community. Because as one of the largest and most renowned banks in Indonesia, BNI has the resources and the strength to positively impact and benefit the public at large. This is what forms the spirit and the basis for BNI’s whole sustainability strategy.
2014 BNI Sustainability Report
1
BNI’s Sustainability Performance Progress ECONOMY
2011
2012
2013
2014
Benefit Distributed to the Indonesian Economy (Rp billion) Partnership Program Funds Disbursed (through PKBL)
63.1
37.7
12.6
22.0
Community Development Funds Disbursed (through PKBL)
58.3
185.6
88.7
59.1
Employee Remuneration (salaries and benefits)
5,042
5,578
6,169
6,876
Pension Benefits Paid (liabilities recognized in the consolidated balance sheet)
217.9
255.6
65.1
117.5
Total Tax Paid to the Government (Rp billion)
1,653
1,851
2,210
2,686
1,364
1,585
1,687
1,760
5
5
6
6
14.7
16.5
17.8
15.6
Profit Before Tax
7,461
8,899
11,278
13,524
Net Profit
5,826
7,046
9,058
10,829
312
378
486
578
Consumer Banking
34,729
43,891
50,709
55,338
Commercial Banking (Small and Medium)
58,660
70,603
69,127
77,384
Corporate Banking
57,594
72,235
112,234
119,715
Subsidiary Banking
5,458
7,819
11,334
15,104
International Banking
7,092
6,194
7,234
10,082
29,983
33,910
45,398
51,031
Market Presence Number of Bank Offices in Indonesia (Outlet) Overseas Branches Total Accounts, including credit cards (million) Financial Performance (Rp billion)
2
Earnings Per Share Loan Composition based on Type (Rp billion)
Partnership Program Funds Disbursed (through PKBL)
22.0 billion Community Development Funds Disbursed (through PKBL)
59.1 billion
Loan Composition based on Sector (Rp billion) Manufacturing Trade, Restaurants & Hotels
27,330
35,026
40,391
43,356
Agriculture
11,694
15,960
18,593
24,355
Services
15,600
16,410
25,217
25,444
Construction
9,497
11,795
12,394
12,091
Transportation and Communication
9,655
14,524
18,951
20,330
Social Services
1,523
1,749
2,025
1,956
Mining Electricity, Gas and Water Others
12,302
12,332
15,586
18,384
7,727
9,515
12,927
14,329
38,222
49,521
59,157
66,346
2014 BNI Sustainability Report
SOCIAL
2011
2013
2012
2014
Employee Diversity Total Employees
23,639
24,861
26,100
26,536
Total Female Employees
11,819
12,560
13,336
13,702
4.5%
2.1%
4.4%
4.7%
8
8
8
8
6.5
6.5
6.7
2.8
11,475
83,834
2,465
-
5,307
6,075
4,476
5,172
476
487
5,511
2,892
Employee Turnover Inclusive Banking “Pojok BNI” to Develop Entrepreneurship in University Students (Units) Total “Kredit Usaha Rakyat” disbursed by BNI (Rp trillion) Community Investment (Rp million) “SOEs Care Partnership Program” Funds Disbursed Micro business fostering through “Partnership Program” (people) Total Natural Disaster Aid Collected and Disbursed through BNI ENVIRONMENT
2011
2012
2013
2014
3
Energy (Head Office) from PLN Total Energy Consumed (KWh)
17,775,180
17,987,880
18,126,660
17,924,520
161,754
161,982
154,662
149,554
2,354
974
5,456
2,935
83,632
203,589
430,968
559,338
59.5
76.0
64.5
83.3
Water (Head Office) Volume of Water taken from PDAM (m3) Volume of Water taken from wells (m3) Paper (Head Office) Total Paper Reduction through e-Billing (in sheets) Paper Reduction Volume through BNI Online Forum (in Tons; calculated as 1 ream ≈ 500 sheets @70gr)
1.7
Regreening Total Trees Planted and Maintained (thousands of trees)
2014 BNI Sustainability Report
Total Trees Planted and Maintained
1,010
1,298
2,513
1,744
million trees
4
Professionalism, Integrity, Customer Orientation and Continuous Improvements are the four work ethics BNI passes on to all its personnel.
2014 BNI Sustainability Report
5
About BNI
2014 BNI Sustainability Report
BNI’s Vision To be a bank that excels and is prominent and advanced in delivering services and performance
BNI Mission
6
• To be the bank of choice, providing excellent service and value added solutions to all customers • To enhance investment value to our shareholders • To provide the best environment for our employees, to be a source of pride to perform and excel • To improve socially and environmentally corporate responsibility • To be the benchmark for compliance and good corporate governance [G4-56]
PT. Bank Negara Indonesia (Persero) Tbk., known as BNI, was founded on July 5, 1946. BNI was the first circulation bank in Indonesia, meaning it had the authority to regulate the circulation of the Republic of Indonesia’s first payment tool, Oeang Republic of Indonesia (ORI), which started just a few months after BNI was inaugurated on 30 October 1946. These two dates became National Bank Day and National Financial Day. [G4-3] [G4-4] In 1955, in line with a capital increase, BNI converted from a circulation bank to a commercial bank. To strengthen capital to give customers the best results, in 1996 BNI conducted an IPO for 25% of its shares and became the first state-owned bank (State Owned Enterprise) to list on the Jakarta Stock Exchange (now Indonesia Stock Exchange). As of December 31, 2014, the majority shareholder of BNI was the government, with 60% ownership, while the public owned 40%. [G4-7] Gedung BNI is located at Jalan Sudirman, Kav. 1, Central Jakarta, Jakarta 10220, Indonesia, and is BNI’s Head Office, providing the best financial services to every layer of society, from consumers, to SMEs and corporations, supported by various subsidiaries in Islamic banking (BNI Syariah), consumer financing (BNI Multi Finance), capital markets (BNI Securities), insurance (BNI Life Insurance), and remittances services (BNI Remittance). During 2014 there were no significant changes related to the share structure and ownership of BNI. [G4-8][G4-13]
2014 BNI Sustainability Report
BNI’s 4 Work Ethics • Professionalism
• Integrity
• Customer Orientation
• Continuous Improvements
6 Core Behavioral Values for BNI Employees • Improve Competency and Provide the Best Results • Honesty, Sincerity, and Devotion • Discipline, Consistency and Responsibility • Provide the Best Service Through Synergistic Partnerships • Always Striving For Perfection • Creative and Innovative
7
BNI Business Structure and Ownership in Subsidiaries as of December 31, 2014 [G4-7] BNI
PT BANK BNI SYARIAH
PT BNI MULTI FINANCE
99.90%
99.98%
PT BNI SECURITIES
PT BNI LIFE INSURANCE
75.00%
99.99%
BNI REMITTANCE LTD
100%
PT Kustodian Sentral Efek Indonesia
PT Bank Mizuho Indonesia
PT Bank Sumitomo Mitsui Indonesia
PT Sarana Bersama PembiayaanIndonesia
PT Pemeringkat Efek Indonesia
1.00%
1.00%
0.52%
8.00%
1.43%
2014 BNI Sustainability Report
As evidence of BNI’s customer-centric work culture, BNI is supported by 26,536 employees spread across 15 regions in Indonesia and 6 cities abroad. BNI operates a broad network of services covering 1,760 domestic outlets and 6 overseas branches in New York, London, Hong Kong, Singapore, Tokyo and Osaka. A total of 14,071 self-owned ATMs in the country and 6 ATMs abroad, namely 4 ATMs in Hong Kong and 2 ATMs in Singapore, as well as internet banking and SMS banking facilities, make BNI a leading, renowned and prominent leader in services and performance. Thanks to these achievements, BNI now has total assets of Rp 350.2 trillion and has posted a profit in 2014 of Rp10.8 trillion. [G4-6][G4-9]
Number of BNI Outlets
1,585
1,687
1,760
1,364 1,148
2010
2011
2012
2013
2014
Awards related to Sustainability 8
Indonesian CSR Awards 2014 “Kampoeng BNI Imogiri”
Sri-Kehati dan SWA “The Best Companies 2014 Sri-Kehati Index“
Best Sustainability Report 2013 “Category Financial Services SRA 2014”
Indonesia Sustainability Reporting Awards 2014 “Commendation for 1st G4 Sustainability Report 2013”
Yayasan Keanekaragaman Hayati Indonesia (KEHATI) “Constituent of Sustainable Responsible Investment SRI-Kehati Index”
2014 BNI Sustainability Report
Company Identity Data [G4-3][G4-4][G4-5][G4-7] Company Name
PT Bank Negara Indonesia (Persero) Tbk.
Head Office Address
Gedung BNI Jl. Jend. Sudirman Kav.1 Jakarta 10220 PO Box 1946, Jakarta Mampang 12700
Tel. : +62 21 2511946
(140 lines)
I-Telex : 765185BNI DLN IA
765186BNI DLN IA
Fax. : +62 21 2511214
E-mail :
[email protected]
Website : www.bni.co.id
Company Establishment
July 5, 1946
Shareholders (As of Desember 31, 2014)
Republik of Indonesia 60% Public 40%
Recorded Shares
Indonesia Stock Exchange
Business Field
Perbankan
Share Code
BBNI
Products and Services
Simpanan, Pinjaman, Kartu Kredit, E-Banking
Public Accountant
Kantor Akuntan Publik Tanudiredja, Wibisana & Rekan
(PwC Indonesia)
Plaza 89
JI. HR. Rasuna Said Kav. X-7 No. 6
Jakarta 12940 Indonesia
Telephone: [62] (21) 521 2901
Telecopier: [62] (21) 5290 5555, (21) 5290 5050
Share Registrar
PT Datindo Entrycom
Puri Datindo
Wisma Diners Club Annex Jl. Jend. Sudirman Kav. 34 Jakarta 10220
Tel. (62-21) 5709009
Fax. (62-21) 5709026
Company Rating
Standard & Poor‘s 30 Cecil Street
PrudentialTower 17th floor
Singapore 30 Cecil Street
PrudentialTower 17th floor
Singapore 049712
Phone : (65) 6438 2881
Website : www.standardandpoors.com Moody‘s Singapore Pte Ltd 50 Raffles Place #23-06 Singapore LandTower 048623 Phone : (65) 6398-8300
Fax : (65) 6398-8301
Website : www.moodys.com PT Fitch Ratings Indonesia PrudentialTower 20th floor
Jl. Jend. Sudirman Kav. 79 Jakarta Selatan 12910 – Indonesia Phone : (62-21) 57957755
Fax : (62-21) 57957750
Website : www.fitchratings.com PT Pemeringkat Efek Indonesia (Pefindo) PaninTower Senayan City 17th Floor Jalan Asia Afrika Lot 19
Jakarta 10270, INDONESIA
Tel. (62-21) 7278 2380 Fax. (62-21) 7278 2370 Website : www.pefindo.com
Contact Address
Divisi Komunikasi Perusahaan & Kesekretariatan Gedung BNI, Lantai 24
Jl. Jend. Sudirman Kav. 1, Jakarta 10220 Tel. (62-21) 2511946, 5728387, 5728037 Fax. (62-21) 5728295, 5728053
2014 BNI Sustainability Report
9
10
This Sustainability Report is published as an aligned and inseparable part of the BNI 2014 Annual Report. We publish a Sustainability Report annually to disclose the meaning of sustainability to BNI and our efforts to integrate the Triple Bottom Line principle with our business strategies and day-to-day operational activities.
2014 BNI Sustainability Report
11
About This Report
2014 BNI Sustainability Report
BNI has consistently published a Sustainability Report every year since 2009. This report is aligned with and is an inseparable part of the 2013 Sustainability Report, which was published in March 2014. [G4-29] [G4-30] Through this Sustainability Report, BNI presents balanced and comprehensive information about economic, social and environmental aspects, as well as the company’s CSR activities and performance as related to business and operations, which is also in compliance with Law No. 40/2007 on Limited Liability Companies. In addition, as a public company, this Sustainability Report is in compliance with the regulations of the Financial Services Authority, through the Decree of the Chairman of Bapepam-LK: Kep-431/ BL/2012 dated August 1, 2012, on the submission of an Annual Report that must contain a CSR report within it or have a separate report, such as the Sustainability Report.
Scope and Boundaries
12
This Sustainability Report contains data for the period from January 1 to December 31, 2014, and encompasses data from BNI head office and our operations across Indonesia. The Sustainability Report does not include the programs, activities or data of our subsidiaries (PT Bank BNI Syariah, PT BNI Multi Finance, PT BNI Securities, PT BNI Life Insurance and BNI Remittance Ltd.). Looking ahead, BNI will encourage its subsidiaries to prepare Sustainability Reports in the respective entities. [G4-17][G4-20][G4-28] In daily operations, BNI is assisted by suppliers of goods and services (outsourcing). Realizing that their performance can influence the reputation and good name of BNI, this Sustainability Report also includes various policies and criteria for the selection and evaluation of suppliers of goods and services, especially suppliers of labor for security, sales and promotion, debt collection, transportation and cleaning services. The policies and supplier evaluation criteria include aspects of employment, protection of employee rights and respect for human rights. [G4-21]
Guidelines and Reporting Standards This report is prepared in accordance with G4 Core criteria and the Financial Services Sector Supplement issued by the Global Reporting Initiative (GRI). G4 Guidelines have two options for Sustainability Report preparation, Core and Comprehensive. For this 2014 Sustainability Report, BNI chose to apply G4-Core. Verification of compliance with GRI G4-Core has been performed by an independent third party, the National Center for Sustainability Reporting (NCSR), as noted in the Third Party Verification Statement on page 98 of this report. [G4-33] To facilitate the reader to easily identify the content relevance of this Sustainability Report with GRI G4 indicators, we have included the relevant GRI indicator on each related page. A complete list of all GRI G4 aspects and indicators can be found on page 99.
2014 BNI Sustainability Report
Report Content This Sustainability Report focuses on our business activities as a bank conducting operational functions, such as consumer, commercial and corporate banking in Indonesia. This Sustainability Report also includes case studies and BNI’s operational activities throughout 2014. We ascertain that there have been no significant changes or changes to the data comparability principles from previous reports. Therefore, there are no restatements in this Sustainability Report. [G4-22] [G4-23] In each reporting cycle, report content is relevanced with BNI’s business, while ensuring that the Sustainability Report contains the latest data and information related to sustainability and stakeholder interests. This Sustainability Report contains three main aspects, economic, environmental and social, in a balanced manner. [G4-18] Determination of the Sustainability Report contents is based on the four GRI G4 principles, namely: Stakeholder Engagement - This principle requires that stakeholders are involved in the drafting process, starting from determination of report content, to providing input on published Sustainability Reports; Sustainability Context - This principle requires that the Sustainability Report covers all sustainability issues relevant to the bank; Materiality - This principle requires the Sustainability Report contains issues or material aspects required by stakeholders in decision-making; Completeness - This principle requires the Sustainability Report is compiled with a specific scope and reporting period and is supported by complete data for that scope and reporting period.
[G4-18]
Step 1 IDENTIFICATION
Step 2 PRIORITY
Step 3 VALIDATION
Sustainability Context
Materiality
Completeness
Stakeholder Inclusivity 2014 Sustainability Report
Step 4 REVIEW Sustainability Context
Stakeholder Inclusivity
Determining Material Aspects and Report Boundaries As in previous years, BNI ran internal workshops involving various BNI work units. In the discussion sessions, material issues that had been determined in the previous report were again raised for discussion with the goal of obtaining feedback from the internal team on the material aspects, scope and boundary of the reporting, and presentation of the information and data. Through this session, BNI strived to continuously improve the quality of its Sustainability Reports and to develop policies and targets relevant to key GRI G4 performance indicators. [G4-18][G4-19][G4-20][G4-21]
2014 BNI Sustainability Report
13
List of Material Aspects and Boundary
Market Presence
3
Indirect Economic Impact
4
Material
5
Energy
Manpower
Health and Safety workplace
8
Training and Development
9
Supplier Labor Practices Assessment
10
Supplier Human Rights Assessment
11
Local Communities
12
Anti-Corruption
13
Public Policy
14
Product and Service Lebeling
15
Customer Privacy
16
Product Portfolio
sp
Sale s
6 7
n
2
Tra
Subsidiary
Co
Economic Performance
Clea nin g
ion tat or
e
1
Subsidiary
rs llecto
BNI
In the Company
ic rv Se
14
Outside of the Company
Material Aspect
Security
No
BNI Subsidiary Outside of the Company
The BNI sustainability pillars reported in this report are the result of stakeholder engagement and the GRI G4 sustainability reporting principles that pay attention to world best practices for sustainability implementation, such as ISO 26000 and the United Nations Global Compact (UNGC). These pillars have become our strategic direction to become a banking institution that not only excels in terms of business and operations, but is able to provide added value to all products and services, such that every customer, investor and stakeholder can believe that the BNI always upholds social and conservation values in every step. We have defined the contents of this year’s Sustainability Report by creating BNI Sustainability Pillars, as shown in the illustration to the side. [G4-18][G4-19][G4-20][G4-21]
BNI for Indonesia BNI for the Environment
BNI Sustainability Pillar
BNI for the Community
BNI for Customers
BNI for Employees
2014 BNI Sustainability Report
Disclosure of Management Approach Referring to the GRI G4 guidelines, the management approach disclosure for every aspect of the identified material will be categorized and discussed in the relevant chapter or section of this Sustainability Report.
Validation and Assurance Reports This Sustainability Report presents qualitative and quantitative indicators that are relevant to improving report comparability and accountability. Moreover, BNI upholds the principles of transparency and impartiality. Thus, in this Sustainability Report we also reported the challenges, obstacles and situations where we underperformed, in addition to the various successes and achievements during the reporting period. This is to ensure that readers obtain thorough and balanced, comprehensive and objective information on BNI’s performance. To ensure the accuracy of the data presented in this Sustainability Report, BNI has implemented verification and internal reviews in three phases, namely verification of the initial draft, second draft and, prior to the design process, verification of the final draft before the Sustainability Report is published. An independent external audit (assurance) of the data presented in this Sustainability Report has not been conducted. In future, BNI will consider assurance to enhance the accuracy and credibility of our report. [G4-33]
Accessibility In line with efforts to conserve nature, this Sustainability Report has been printed in limited numbers. The 2014 Sustainability Report and those of previous years can be downloaded from www.bni.co.id. Users of iOS-based smart phones and tablets can download this Sustainability Report from the App Store, while Android users can download it from Play Store, with the key words SR BNI 2014.
Feedback BNI is committed to improving the quality of its Sustainability Reports. We invite all readers and stakeholders to submit advice, ideas, criticism and opinions to: [G4-31] PT Bank Negara Indonesia (Persero)Tbk Corporate Community Responsibility Unit Jl. Jenderal Sudirman Kav. 1 Jakarta 10220 INDONESIA
PO BOX 2955 JKT
2014 BNI Sustainability Report
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Greeting from the President Commissioner [G4-1]
16
2014 BNI Sustainability Report
“For BNI, the Bank would be unable to survive in the long term if the environment was not in good shape.”
Respected Stakeholders, The Board of Commissioners and Board of Directors have agreed to share their vision of the importance of sustainability as part of BNI’s strategy. For BNI, it is clear that the Bank would be unable to survive in the long term if the environment was not in good shape. Despite the economic and political situation still not being fully conducive in 2014, BNI presented a good image and was fully committed to being a leader in sustainability from the financial services dimension in Indonesia. We strongly believe that consistent performance and BNI’s commitment to sustainability are interrelated. Sustainability is not merely the pursuit of profit, but we also have to give attention to the environment and people’s lives. This is the value we want to instill in business as an intermediary financial services institution. Achieving balance in the 3Ps (profit, people, planet) is an essential element for the financial and banking sector, including BNI. We demonstrate this, for example, by entering into financing renewable energy, sustainable agribusiness, infrastructure projects, efficient and effective banking services and continuously improving the performance of our new unit, Corporate Community Responsibility (CCR), which implements BNI’s commitment to sustainability programs. The Board of Commissioners has approved a sustainability policy, in which all BNI activities must be suitable and balanced. We discuss sustainability issues with BNI customers and provide the necessary advice to support sustainability measures, not only at the risk assessment and compliance check level but also at the level of directors and management. We believe that this strengthens our relationships with BNI customers and inspires some BNI customers to implement sustainability policies.
2014 BNI Sustainability Report
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One of the fisheries activities at Kampoeng BNI Lamongan, East Java
18
As a “state-owned enterprise”, BNI has been appointed as an agent of development that contributes through financing in eight key sectors, namely: agribusiness, telecommunications, food and beverage, oil and gas and mining, chemical industry, construction, electricity, and wholesale and retail trade. In addition, the maritime, marine and fisheries sector is a major focus of President Joko Widodo. BNI has consistently informed the business world to pay attention to environmental and social risks to ensure development is correctly targeted and reduces the negative impact on the environment and society. However, sustainability should be an important concern for all stakeholders in Indonesia. In particular, communities consisting of farmers, fishermen, craftsmen and merchants, for whom sustainability can also support their life needs in both the short and long term. For this reason, BNI provides the facilities they need to achieve these goals. The CCR unit provides training, production support and the sale of products from our partners. We work closely with universities and related institutions to train BNI partners with specific skills.
2014 BNI Sustainability Report
Participant stand at Kampoeng BNI Nusantara exhibition in Jakarta, July 2014
BNI offices, from regional to branch offices, always coordinate with local governments and local communities to meet their needs in the fields of education, health, environment, infrastructure, natural disasters, religion, finance and entrepreneurship, as well as arts and culture. Our experience has shown that sustainability practices not only help communities become more resilient and more prosperous, but also expand BNI’s market and strengthen BNI’s relationships with local communities. Sustainability and corporate responsibility have also grown to become part of BNI’s culture. We ensure that the principle of sustainability will remain a core element of BNI’s strategy into the future. Regards,
Peter B. Stok President Commissioner
2014 BNI Sustainability Report
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Message from President Director [G4-1]
20
2014 BNI Sustainability Report
“We recognize that sustainability is not just a matter of philanthropy but is a responsibility to develop communities in our operational areas so that BNI’s presence and added value can be felt through real action.”
Respected Stakeholders, Welcome to the BNI 2014 Sustainability Report. Through this report, BNI would like to report our approaches to efforts to achieve more prosperous and sustainable development and society, as well as a better future for our children and grandchildren. In addition, through this Sustainability Report, BNI also would like to inspire the industry, both in the banking sector and other sectors, to join BNI and the global community in supporting sustainable development, tackling climate change and preserving nature. For BNI, business activities cannot be separated from the environment and surrounding communities. The company is not concerned merely with profit alone but also desires to be sustainable. Business development must be balanced with environmental conservation efforts to achieve growth for the company into the future. Therefore, BNI’s concern and responsibility to its employees, the environment and society forms BNI’s fourth mission statement: “Increase Awareness and Responsibility to the Environment and Community”. We have responded to these challenges by establishing a special Corporate Community Responsibility (CCR) unit, which is responsible for the company’s sustainability, which a basic strategy and an inseparable part of BNI. We would like to convey that BNI is on the right track to support sustainable development. We also recognize that sustainability is not just talking about philanthropic aspects, but is a responsibility to develop communities in our operational areas so that BNI’s presence and added value can be felt with real action. This is not without its challenges, because we need economic development programs that benefit the community and do not disturb the balance of the ecosystem.
2014 BNI Sustainability Report
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Activities at Kampoeng BNI Batik Tulis Lasem, Rembang, Central Java
22
Several initiatives implemented by BNI include increasing business opportunities and strengthening risk management in the credit analysis process, financing several environmentally friendly projects, such as hydroelectric power plants, geothermal energy, green buildings, sustainable plantations (RSPO), biogas, biomass, waste and recycling management, and performing BNI Go Green activities, such as the program to cultivate two million perennials, bike to work and others. We expect that sustainable businesses can create jobs, improve community welfare, promote growth, as well as participate in preserving the environment wherever the business activities take place. Through the use of new technologies, BNI works with the young digital generation who are cognizant of high-tech, gadgets and active in social media. This encourages the practice of sustainability in BNI to produce more efficient and effective banking products. BNI is a miniature of Indonesia and it is fitting we actively communicate the principles of sustainability practice to stakeholders to encourage the achievement of sustainable development and to create synergy with BNI’s banking products and services. As a way to improve the community quality of life, BNI has established Kampoeng BNI in several regions across Indonesia to promote local products for better development, such that business players in Kampoeng BNI still categorized as non-bankable will eventually become feasible. These are the values that BNI offers to its customers and clients - that sustainability also touches on financial inclusion.
2014 BNI Sustainability Report
Lasem Batik Tulis products made by our SME Client in Rembang West Java
BNI is dedicated to improving human capital resources through a variety of types of training and is active in several Environmental and Energy Conservation Analysis training programs organized by the Government, Regulator and other institutions. As a member of UNEP-FI, we promote sustainability to BNI stakeholders, such as customers, debtors and our corporate partners, to jointly take responsibility for the sustainability of the current generation and those to come. Throughout this year, BNI also faced a range of challenges related to sustainability initiatives. Promoting sustainability and its relation to financing to BNI employees is a noble job that never ends. Increasing the BNI lending portfolio in infrastructure that is in line with sustainable development requires awareness and a strong commitment not only from the Board of Directors but also involves customers, investors and BNI employees. We believe the benefits of sustainability can lead to a strong relationship between the parties to help each other. We will continue to adjust our strategy to changes in society and the state. Regards,
Gatot M. Suwondo President Director
2014 BNI Sustainability Report
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24
BNI realizes that its success and the sustainability of the company is not solely the result of our own resources and efforts. In line with the spirit and intent to continue to be one of the best banks in Indonesia, BNI must understand and be responsive to the needs of all stakeholders. Therefore, stakeholder involvement is essential in the process of compiling BNI’ s sustainability pillars. 2014 BNI Sustainability Report
25
BNI Stakeholder Sustainability Pillars
2014 BNI Sustainability Report
BNI SME partner products at the Kampoeng BNI Nusantara exhibition in Jakarta in July 2014
26
The world continues to encourage businesses to take care and be involved in efforts to solve various social and environmental challenges. As one of the leading and largest banks in Indonesia, BNI is determined to participate in combating various challenges faced by the nation of Indonesia.
2014 BNI Sustainability Report
Listening to Stakeholders As a national banking institution, one of the main challenges for BNI is distributing the chance and opportunity for prosperity to the millions of Indonesian people spread across the entire archipelago, from cities to remote villages. Additionally, BNI has continued to ensure every step can provide positive benefits for social, humanitarian and environmental development. To achieve the desired goal together, BNI involves all its stakeholders in the business management and decision-making process, as well as determining the Bank’s strategic direction. BNI defines stakeholders as groups that have an impact on and/or are affected by BNI operations. Through various kinds of involvement, BNI is able to align its business strategy direction with the expectations and needs of all stakeholders. We believe that by continuing to engage and listen to the aspirations of our stakeholders, BNI can continue to grow, help communities to progress and increase sustainability. BNI has a method of multi-stakeholder engagement; we want to make sure every stakeholder can easily, comfortably and effectively present their opinions, ideas and concerns. BNI also ensures that this input is clearly understood. Throughout 2014, BNI engaged with stakeholders as follows: Stakeholders, Method of Involvement and Material Topic [G4-24] [G4-25] [G4-26] [G4-27] Stakeholders [G4-24]
Determination Basis [G4-25]
Approach [G4-26] Involvement Method
Purpose
Frequency
Customers
• Influence • Dependent
Call Center Service
Serving customers and Receiving complaints
At any time
Customer Satisfaction Survey
Identifying customer Satisfaction And required banking aspects
Annually
Website information & Frontline information
Banking Information
As required
Customer Gathering
Fostering business relations
At least once a year
2014 BNI Sustainability Report
Topic [G4-27] • banking transaction security • Consumer credit, Small and medium businesses, and Corporations • Banking facilities and Ease of access • Clear and transparent banking product and service information • Credit request Process
• Banking Rules and Regulations • Customer Expectations
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Stakeholders [G4-24]
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Determination Basis [G4-25]
Approach [G4-26] Involvement Method
Purpose
Topic [G4-27]
Frequency
Shareholders /Investors
Responsibility
Performance Report
Presenting organizational Performance and Company Stability
quarterly
• Financial performance • Investments in Environmentally Friendly companies • Non-financial performance • Employee rights • Equal Opportunity • Recruitment process • Career development • Valued and Enjoyable Work experience • Employee rights • Remuneration and benefits
General Meeting of Shareholders
Reporting on the company’s performance and governance
At least once A year
Employees
Responsibility
Media Internal (Portal)
Disseminating Policies And employment Strategies
At any time
Employee Satisfaction Survey
Indentifying Employee Satisfaction and expectations
Annually
Labor Union
Influencer
Discussing Collective Labor Agreement
Fostering Bipartite relations with Labor union
Every two years
Government And Financial Services Authority
• proximity • influencer • responsibility
Reporting Compliance And notifying Bank Indonesia
Reporting on Compliance levels With prevailing legislation
Twice a year
Basel II Accord Basel Committee
Participation in Study activities Organized by the committee
At least Once a year
Reporting on Syariah Compliance To the National Syariah Board
Reporting on Compliance levels With Syariah Principles
At least Once a year
• Compliance with Rules and Regulations • Transparent Information • Opportunity to cooperate in organizing CSR programs • Corporate Governance • Environmental and Social Risk Analysis for credit provision • Anti Bribery and Corruption (ABC) and Anti Money Laundering (AML) and Anti Terrorism • The principle of prudence in BNI’s Operations and Banking services • Sustainable Finance
2014 BNI Sustainability Report
Stakeholders [G4-24]
Determination Basis [G4-25]
Approach [G4-26] Involvement Method
Purpose
Frequency
Topic [G4-27]
Suppliers
Dependence
Seminars and Policy Dissemination
Developing BNI merchants and vendors
At least Once a year
• Mutually beneficial Relationship with Suppliers • Fair and Transparent procurement process for goods and services
Business Organizations
Representative
Meetings and National and Regional Activities
Raising awareness Of banking and financial governance
At least Once a year
International Conferences
Raising awareness Of banking and financial governance
At least Once a year
Community Organizations / Non Government Institutions
Representative
Strategic cooperation In BNI Social care
Empowering The social environment And improving Welfare Program targets
At least twice a year
Reporting on Community Development Program
Promoting BNI social Policies and programs
Annually
Media
Representative
Press Release
Providing Information related to banking business and corporate information
As required
• Financial performance • Investments in Environmentally Friendly companies • Non-financial performance • Operational activities • Business development Direction (strategic direction) • Environmental impact and performance • CCR (Corporate Community Responsibility) program Progress implemented and planned • Opportunity to collaborate in CCR programs • Information on Company activities • Financial performance • Non-financial performance • Environmental impact and performance • CCR program Progress implemented and planned • Opportunity to collaborate in CCR programs • Information on Company activities
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Determining Materiality In addition to considering matters that are issues and concerns for each stakeholder group, BNI identifies, understands, prioritizes and manages the most material risks, challenges and opportunities for the sustainability of the business today and in the future. Prioritizing issues in the spotlight for stakeholders, the challenges, risks and opportunities that characterize BNI’s business activities and operations is a complex process. We ensure the priorities and BNI’s sustainability pillars are able to address the concerns of stakeholders, as well as support BNI’s business operations and growth in a balanced way. This process is carried out with the involvement of stakeholders through a variety of means and opportunities. Their input and feedback is very valuable to help BNI implement more effective business planning and operations, improve performance, and prepare reports that are more accurate and transparent in order to improve BNI’s competitiveness. This year, the Stakeholders Group Discussion (SGD) was held on 25 November 2014, attended by 20 respondents representing various different stakeholder groups, and was used to review material aspects reported in the previous year through questionnaires and open discussion. This year’s SGD concluded that the material aspects to be reported in the 2014 Sustainability Report were the same as in the previous year. The materiality matrix from this process can be seen below. [G4-18][G4-19]
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Community Economy Empowerment
High
Religion and Human Rights
Carbon Footstep Management State Revenue Environmental Risk Analysis Prior to Credit Provision Occupational Health and Safety Community Infrastructure Development Remuneration
Donations for the Society
Banking Security
Banking facilities for SMEs
Employee Training and Career Development
Social Economic Growth Financing the Renewable Energy Sector Ease of Banking Access Equal Opportunities Between the Genders
Clear Product Portfolio Information
Raising Community Quality of Life
Low
Important for Stakeholders
Medium
Controlling the use of Electricity and Fuel
Greenhouse Gas Emission Mitigation
Low
Medium
High
Important for the Company
2014 BNI Sustainability Report
BNI Pillars of Sustainability As a result of stakeholder engagement and materiality analysis, BNI has been able to formulate its BNI Sustainability Pillars. These pillars are a long-term commitment by BNI to stakeholders and a consistent implementation of sustainability principles. [G4-19] BNI Sustainability Pillar
Topic Based on Stakeholder Survey
GRI G4 Material Aspect
GRI G4 Indicator Reported
BNI for INDONESIA • Improving community welfare • Contributing to state revenue • Encouraging investment
Economic Performance Indirect Economic Impact
EC1 EC8
BNI for CUSTOMERS
• Banking security • Ease of access to banking • Clear product information
Indirect Economic Impact Product Portfolio Product & Service Labelling Product Responsibility Customer Privacy Local Communities
EC8 FS2, FS3, FS6, FS7 PR5 FS16 DMA FS13, FS14
BNI for Employees
• • • •
Economic Performance Market Presence Employment Occupational Health and Safety Training & Education Discrimination Anti-Corruption
EC3 EC5 LA1, LA2
• Improving community living conditions • Banking services for Microfinance and sme sector • Community empowerment and social activities
Indirect Economic Impact
EC7, EC8
Local Community
SO1
• Environmental and social risk analysis for credit provision • Response to climate change / Carbon emission mitigation • Use of electricity and fuel • Products and services Related to financing the renewable energy sector
Material
EN1
Energy
EN3
Product Portofolio
FS8
BNI for the COMMUNITY
BNI for the ENVIRONMENT
Employment practices Occupational health and safety Employee welfare Employee satisfaction Industrial relations
2014 BNI Sustainability Report
LA8 LA9, LA11 HR3 SO4, SO5
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In accordance with BNI’ s fifth mission, “To be the benchmark for compliance and good corporate governance”, maximum implementation of Good Corporate Governance (GCG) is BNI’ s manifestation of its commitment to sustainability.
2014 BNI Sustainability Report
Enriching People, Building Nation
Ethics and Governance
2014 BNI Sustainability Report
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Green Banking Services Seminar held in cooperation with the University of Cambridge UK, Correspondent Bank Association and BNI. The forum discussed Sustainability, Economic aspects, Social aspects and Governance.
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Governance Structure and Policy
BNI’s Corporate Governance Policy reflects its commitment to improving quality, sustainability, the values espoused by shareholders and stakeholders, business excellence and social and environmental responsibility. [G4-34]
2014 BNI Sustainability Report
Shareholders and Investors [G4-34] Adequate, balanced information on all major developments that affect the company is guaranteed by the bank for shareholders and investors. BNI is committed to always maintaining good relations with all shareholders and investors through accurate and transparent communication and reporting. All information related to BNI’s performance and its investment performance is reported periodically. Quarterly reports, including the company’s financial and operational performance, are published, among others, on the BNI website together with the annual report, through presentation material, announcements and AGM decisions, with the related explanations. In each AGM, BNI distributes the Annual Report and Sustainability Report. All investors and the public can also find a variety of information about BNI’s financial performance and sustainability development on the BNI website.
Board of Commissioners [G4-34] The main duties and responsibilities of BNI’s Board of Commissioners are to supervise BNI’s policies and strategies, monitor its progress, and provide advice to BNI’s Board of Directors. In carrying out these duties and responsibilities, the Board of Commissioners is assisted by the Audit Committee, Risk Monitoring Committee and the Remuneration and Nomination Committee. As of December 31, 2014, there were eight members of BNI’s Board of Commissioner, four of whom were Independent. All BNI’s Board of Commissioner members are individuals who have integrity, capability and sufficient experience in the field of banking and finance, in accordance with the requirements of Bank Indonesia’s fit and proper test. Bank Indonesia Regulation No. 8/14/PBI/2006 dated October 5, 2006, which stipulates that at least 50% (fifty percent) of the total number of Commissioners are Independent Commissioners, serves as a reference to determine the composition of BNI’s Board of Commissioners. Composition of the Board of Commissioners of BNI per December 31, 2014 Name
Title
Peter Benyamin Stok
President Commissioner/Commissioner Independent
Tirta Hidayat
Vice President Commissioner
Achil Ridwan Djayadiningrat
Commissioner Independent
Fero Poerbonegoro
Commissioner Independent
A. Pandu Djajanto
Commissioner
B.S. Kusmuljono
Commissioner Independent
Daniel Theodore Sparringa
Commissioner
Kiagus Ahmad Badaruddin
Commissioner
To ensure independence, each Commissioner is required: • to not having familial relations to the second degree with fellow members of the Board of Commissioners and/or Board of Directors • to have disclosed ownership both in the Company and in other the banks or companies domiciled in the country or overseas in a report that must be renewed annually.
2014 BNI Sustainability Report
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•
•
to not take and/or receive personal benefits from the Bank other than remuneration and other facilities set by the AGM. To ensure this, the Board assigns the Audit Committee to carry out an examination and the conclusion thereof to be published in the Bank’s Annual Report. Fewer than 50 (fifty) percent of Board of Commissioners’ members to have other positions on the Board of Commissioners in non-financial institutions and for one member of the Board of Commissioners to be a representative of the majority shareholder, namely the SOE Ministry.
Board of Directors [G4-34] BNI Directors are responsible for economic, social and environmental matters related to the company in accordance with the provisions of the Articles of Association and prevailing regulations. The primary responsibility of the BNI Directors includes establishing and reviewing strategic goals and business plans, approving the annual budget and financial statements, managing business risk, delivering shareholder value, managing human resources to achieve the company’s goals, as well as internal supervision.
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The Board of Directors is assisted by the Executive Management, which consists of several relevant Division Leaders, who have the duty and responsibility of providing regular up-todate reports about the company’s business activities to be used for decision making. The Board of Directors Meeting is attended by Senior Management (Division Leaders), and is held regularly, at least once every month. The Board of Directors is assisted by the Risk and Capital Committee, Human Resources Committee, Technology Management Committee, Performance Management Committee, Product Committee, Credit Procedure Committee, Credit Policy Committee and the Anti Fraud Committee in performing their duties. As of December 31, 2014, there were 10 members of BNI Board of Directors, all of whom are domiciled in Indonesia. All members of the Board of Directors are individuals who have integrity, capability and adequate experience in banking and who have passed the Bank Indonesia fit and proper test. Proposed replacements and/or appointments to the Board of Directors are made by the Board of Commissioners to the General Meeting of Shareholders, after considering the recommendations of the Remuneration and Nomination Committee. Composition of the Board of Directors of BNI as of December 31, 2014 Name
Title
Gatot Mudiantoro Suwondo
President Director
Felia Salim
Vice President Director
Ahdi Jumhari Luddin
Managing Director – Legal & Compliance
Suwoko Singoastro
Managing Director – Treasury & Financial Institution
Krishna R. Suparto
Business Banking Director
Yap Tjay Soen
Managing Director – Financial (CFO)
Adi Setianto
Managing Director – Channel & Services
Sutanto
Managing Director – Enterprise Risk
Honggo Widjojo Kangmasto
Managing Director – Operation & IT
Darmadi Sutanto
Managing Director – Consumer & Retail Banking
2014 BNI Sustainability Report
To maintain the independence of the Board of Directors, the following conditions are implemented: • Other than Company bodies, no other party may conduct or intervene in the management of the Company. • Members of the Board of Directors are prohibited from activities that could interfere with their independence in managing the Company. • Members of the Board of Directors are prohibited from having familial ties to the second degree with fellow members of the Board of Directors and/or members of the Board of Commissioners. • Members of Board of Directors may not be on the board of political parties and/or serve as legislative candidates/members. • Member of the Board of Directors, either individually or jointly, are prohibited from owning more than 25% (twenty-five percent) of the paid-up capital in another company. In the event of a conflict of interest, every member of the Board of Directors is prohibited from taking action that could harm BNI and must disclose conflicts of interest associated to any decision.
Remuneration The Remuneration and Nomination Committee evaluates the company’s performance and responsibility, as well as individual performances, to develop and provide recommendations to the Board of Commissioners regarding the remuneration and nomination system/policy for the Board of Commissioners, Directors, Executive Officers (Unit Leaders assigned authorization by the Board of Directors) and employees overall.
Risk Management BNI evaluates Risk Management application through risk monitoring, namely looking at the potential risk from self-assessment reports and risk profile reports implemented in coordination with relevant divisions. Risk Management Evaluation encompasses credit risk, market risk, liquidity risk, operational risk, legal risk, reputation risk, strategic risk and compliance risk. [G4-14]
Code of Ethics and Compliance In accordance with the Good Corporate Governance Guidelines issued by the National Governance Policy Committee in 2006, as well as to maximize GCG implementation, BNI applies a Whistle Blowing System (WBS) and Anti-Fraud Strategy. In addition, BNI also publishes a Code of Conduct to guide employees in their ethical daily business practices with stakeholders. This Code of Conduct is distributed to all employees via e-mail, letter and through training conducted at least once a year. This code is also disseminated to all BNI business partners via e-mail and letter. [G4-56]
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BNI’s 14 Point Code of Conduct: [G4-56]
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1. Uphold professional conduct 2. Become role models and constantly remind each other 3. Maintain harmonious relations among BNI personnel 4. Maintain the Bank’s and office confidentiality 5. Maintain work safety 6. Be committed to the environment 7. Keep accurate records and reports 8. Prevent conflict of interest 9. Prohibited from offering and accepting gifts and souvenirs 10. Act as a resource 11. Prohibited from being a political party member or donor 12. Prohibited from imparting untruthful information on BNI 13. Prohibited from utilizing BNI’s assets for personal interest 14. Prohibited from abusing BNI’s Corporate Identity
During the reporting period, BNI received no fines and did not violate laws and regulations related to fair business competition, monopolistic practices, environmental impact, impacts on occupational health and safety, provision of product and service information, promotions, or banking services. [G4-PR9] Given BNI’s Code of Conduct on confidentiality, BNI always safeguards the data confidentiality and privacy of each of our customers. We can report that during the reporting year, we have received no significant complaints or incidents related to data confidentiality and BNI customer privacy. [G4-DMA] [G4-PR8] BNI also implements a Compliance Function run by the Compliance Division, as required by the Board of Directors and its essential functions. BNI has conducted several compliance activities in 2014 as implementation of the compliance function, conducted through the Compliance Awareness and Compliance Training program for internal control, such as routine reviews, compliance testing and incidental reviews. In 2014, BNI’s Compliance Risk profile in the third quarter was ranked at low (1) in risk composite, which demonstrates no violations. The bank’s compliance track record has been very good so far and the bank has applied the Code of Conduct to almost all financial standards. This shows that BNI’s possibility of loss from inherent composite compliance risk is ranked as low with risk management implementation quality that is deemed very satisfactory. The Self Assessment results for GCG implementation in BNI for the first semester of 2014 were ranked second, reflecting that the Bank’s management has generally implemented good corporate governance well.
2014 BNI Sustainability Report
Anti-Money Laundering (AML) and Know Your Customers (KYC) In anticipation of possible money laundering and financing of terrorism, as well as potential risks, BNI continuously monitors the application of Anti-Money Laundering (AML) and Combating the Financing of Terrorism (PPT), including implementing Know Your Customer (KYC). BNI seeks to improve the effectiveness KYC application and the AML & PPT Programs with: [G4-56][G4-SO3][G4-SO4] • The active role of the Board of Directors and Board of Commissioners to support AML and PPT Program implementation, • Periodical review of AML and PPT Policies and Guidelines, • Improving policies, procedures and information systems to ensure compliance with external regulation developments, • Providing training and promoting these policies to all BNI employees. BNI continues to refine the information system to identify suspicious financial transactions, detect Cash Transactions of certain amounts, and the alert system to identify prospective customers deemed of high risk, prospective customers from high-risk countries, and to identify high-risk businesses that may be using money laundering and financing terrorism. [G4-SO3] BNI also monitors the implementation of Customer Data Updating and disseminates KYC implementation and the AML & PPT program on an ongoing basis. Dissemination to all BNI employees takes place through face-to-face methods or through an e-learning program. [G4-SO3] [G4-SO4]
Avoiding Conflicts of Interest Directors and employees must report any possibility where personal or group interests may hinder the provision of an objective assessment. They are also not allowed to give or accept bribes, gifts, donations, or to use company property or confidential business information for personal gain, in accordance with BNI policies about conflict of interest listed in the BNI code of conduct. BNI does contribute to political parties, does not receive any financial benefit from the regional or central government and is not affiliated with any political party.
Association In 2013, BNI joined the United Nations Global Compact (UN Global Compact) through Indonesia Global Compact Network (IGCN) and became a signatory of the Global Compact signed in Bali, on 23 March 2013. [G4-15][G4-16] The UN Global Compact is a designation for companies that voluntarily align business and strategies with ten universally accepted principles in the areas of human rights, labor, environment and anti-corruption and take action in support of UN goals, including the Millennium Development Goals (MDGs). By implementing these ten principles, the business world as the driver of the global economy can act to encourage the creation of markets, trade, technology and financial services that generate economic benefits and sustainability for society at large.
2014 BNI Sustainability Report
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10 UN Global Impact Network
Human Rights
Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights. Principle 2: Make sure that they are not complicit in human rights abuses.
Principles
Labor
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Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining. Principle 4: The elimination of all forms of forced and compulsory labour. Principle 5: The effective abolition of child labour. Principle 6: The elimination of discrimination in respect of employment and occupation.
Environment
Principle 7: Businesses should support a precautionary approach to environmental challenges. Principle 8: Undertake initiatives to promote greater environmental responsibility Principle 9: Encourage the development and diffusion of environmentally friendly technologies.
Anti-Corruption
Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.
2014 BNI Sustainability Report
A creative industry outlet belonging to our SME client in Bukit Tinggi, West Sumatera
Mutually Beneficial Relationships with Suppliers Suppliers are one of the business partners that grow and develop together with BNI, supplying goods and services such as cleaning services, security, transportation and others. The selection and evaluation of each BNI supplier is conducted in a fair and transparent manner, with regard to a number of criteria, including: administrative requirements, legal, operational performance, compliance with employment conditions, human rights and BNI’s rules and code of conduct. [G4-LA14] [G4-HR10] The procurement process, determination selection and results of supplier evaluation are presented in a fair and transparent manner. BNI involves suppliers in open communication and various meetings and seminars are held regularly to discuss matters related to operating performance, dissemination of various regulations and policies, to the discussion of labor issues.
2014 BNI Sustainability Report
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Organization Structure
General Meeting of Shareholders
Board of Commissioners President Director (Chief Executive Officer/CEO) Gatot M. Suwondo Vice President Director Felia Salim
Internal Audit Anang Basuki
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Strategic Planning Division Bob Tyasika Ananta
Corporate Communications Division (Corporate Secretary) Tribuana Tunggadewi
Corporate Community Responsibility Unit Nancy Martasuta
Managing Director – Business Banking Krishna R. Suparto
Managing Director – Consumer & Retail BANKING Darmadi Sutanto
Managing Director – Channel & Services Adi Setianto
Managing Director – Operation & IT Honggo Widjojo Kangmasto
DIREKTUR BISNIS BANKING Krishna R. Suparto Local Corporate & Multinational Company 1 Division Ridwan S. Jahja
DIREKTUR KONSUMER & RITEL Darmadi Sutanto Consumer & Retail Product Management Division Wiweko Probojakti
DIREKTUR JARINGAN & LAYANAN Honggo Widjojo Kangmasto Channel Management Division Adi Susilowati
DIREKTUR OPERASIONAL & TI Suwoko Singoastro Banking Operation Division Fauzi
Local Corporate & Multinational Company 2 Division Adiyasa Suhadibroto
Customer Management & Marketing Division Purnomo B. Soetadi
Service Quality Unit Sinta Indrarini Pradono
Information Technology Division Andi Nirwoto
Stated-Owned Enterprise & Government Institution Division Putra Wahju Setyawan
Consumer & Retail Sales Distribution Division Ageng Purwanto
BNI Contact Center Siti Hasnah T. Pamilih
DATA GOVERNANCE UNIT Sigit Eri Soelistianto
Commercial & Small Enterprise Division Siwi Peni
Card Business Division Wiweko Probojakti
Region
Transactional Banking Services Division Iwan Kamaruddin
Pension Fund Division Betty N. Alwi
Market Intelligence & Business Portfolio Division Tambok P. Setyawati
Process Excellence Consumer & Retail Unit Moh. Hisyam
CREDIT POLICY COMMITTEE
PRODUCT COMMITTEE
Risk & Capital Committee
2014 BNI Sustainability Report
Managing Director – Treasury & Financial Institution Suwoko Singoastro
Managing Director – Legal & Compliance Ahdi Jumhari Luddin
Managing Director – Financial (CFO) Yap Tjay Soen
DIREKTUR TRESURI & FI Adi Setianto
DIREKTUR HUKUM & KEPATUHAN Ahdi Jumhari Luddin
DIREKTUR KEUANGAN Yap Tjay Soen
Treasury Division Aryo Bimo Notowidigdo
Compliance Division Hendry Wibowo
International BANKING Division A. Firman Wibowo
Legal Division Disril Revolin Putra
Managing Director – ENTERPRISE Risk Sutanto
CHIEF BUSINESS RISK OFFICER*)
BUDGETING & Financial Control Division Sigit Prastowo
DIREKTUR RISIKO PERUSAHAAN Sutanto Enterprise Risk Management Division Imam Budi Sarjito
Corporate Remedial & Recovery Division Retno Murwani
Procurement & Fixed Assets Division Tennisia Soekesi
Policy Governance Division Wicaksono Sarwo Edi
Commercial Remedial & Recovery Division Slamet Djumantoro
DIREKTUR RISIKO BISNIS*)
43 Corporate Business Risk Division Farel Tua Silalahi
Subsidiaries Development Unit Karya Budiana
COMMERCIAL Business Risk Division Doddy Sulasmono D.
CONSUMER & RETAIL Business Risk Division Muhammad Iqbal
Change Management Office Welan Towai Palilingan
Human Capital Division Anggoro Eko Cahyo
Performance Management Committee
Technology Management Committee
Human Resources Committee
CREDIT POLICY COMMITTEE
Organizational Learning Division Putu Bagus Kresna
*) Currently vacant, for the time being the roles and responsibilities of the Director of Business Risk are assumed by the Director of Enterprise Risk
2014 BNI Sustainability Report
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As one of the largest national banks, BNI can play a major role in promoting national and regional economic growth. Economic values received by the company are not only distributed to the company’s owners, but also flow to all stakeholders, especially the people of Indonesia.
2014 BNI Sustainability Report
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Bni for Indonesia
2014 BNI Sustainability Report
Junior High School students in Warsambin, Manyaifun village, Raja Ampat, Papua, receiving scholarship assistance from BNI during a Sail Raja Ampat 2014 visit
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Thanks to a long history and passion to constantly improve, BNI has continued to grow and develop into one of the largest banks in Indonesia. This is reflected in the achievement of economic value received and distributed. In 2014, BNI’s economic performance showed a significant increase compared to the previous year.
2014 BNI Sustainability Report
Healthy Economic Growth Economic growth performance was marked by a 23.9% rise in economic value distributed and 14.3% increase in the economic value generated compared to the previous year. BNI has healthy economic growth because of the acquisition of economic value derived purely from BNI’s operations and investment activities, and does not include government assistance. For distributed economic value, the entire amount of expenditure earmarked for improving the welfare of stakeholders included fulfillment of all BNI’s obligations as a business entity. [G4-DMA][G4-EC1][G4-EC8] Economic Value Obtained (Rp trillion) [G4-EC1] Description
2011
2012
2013
2014
25.9
29.6
33.2
40.4
b) operating costs
5.3
6.1
7.9
8.6
c) employee wages and benefits
5.0
5.6
6.1
6.8
d) payments to providers of capital
9.7
9.4
9.5
13.7
e) payments to government
1.4
1.5
2.2
2.7
f) community investment
0.1
0.2
0.1
0.1
Economic value retained
4.4
6.8
7.4
8.5
Direct Economic Value Generated a) Revenue Economic Value Distributed
Contribution To State Revenue Since its establishment, the bank has dedicated itself to driving economic development in Indonesia. BNI realizes that its greatest contribution has been achieved precisely by the indirect impact resulting from investment projects it has financed and financing for micro, small and medium enterprises in the country. BNI implements strict consideration to entrust these contributions in mutual agreement with several large industrial companies in Indonesia, which have been shown to have continued growing and contributing to a strong economy for the nation of Indonesia. [G4-DMA][G4-EC8] In 2014, BNI contributed to state revenues through the payment of dividends amounting to Rp 2.7 trillion and income tax of Rp 2.7 trillion. The total amount of BNI’s dividend payments and taxes in 2014 increased by 25.7% compared to the previous year. Meanwhile, the existence of BNI’s overseas network contributed to BNI’s overall revenue. This was obtained from the total income of all BNI branches abroad, which at the end of 2014 amounted to USD 92.2 million, including trade transactions, remittances and import export activities involving Indonesian businessmen with Europe, the Middle East, Africa, Asia and Latin America. [G4-EC1]
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A Biogas Power Plant with a capacity of 2 MW powered by tapioca waste was established by the BNI corporate client in Tulung Buyut, North Lampung. BNI supports the financing of renewable energy to increase the supply of electricity in Indonesia.
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Encouraging Investment, Promoting Growth In addition to contributing to state revenue, BNI is also committed to improving the nation’s economy through investment. Working closely with the Investment Coordinating Board (BKPM), BNI supports government programs, in this regard BKPM, to promote investment activities in Indonesia as well as exploring and expanding international market potential in the region. [G4-DMA][G4-EC8]
2014 BNI Sustainability Report
BNI Bridging Indonesia and The World [G4-DMA] [G4-EC8]
In 2014, BNI had the opportunity to connect BNI customers with strong enough potential to explore global business with businessmen in the Middle East through the Annual Investment Meeting in Dubai Convention Centre from April 8-10, 2014. To maximize these efforts, BNI invited its best customers who have business relations in the Middle East region to meet strategic partners and investors during the conference and exhibition held in the Indonesia Pavilion. This is a clear manifestation of BNI facilitating business matching of its corporate customers with global businesses, in accordance with BNI’s spirit for Bridging Indonesia and The World. 49
2014 BNI Sustainability Report
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BNI customers play an important role in BNI’ s efforts toward sustainability. These customers not only strengthen our financial portfolio but also serve as an extension of BNI’ s reach to strengthen the performance of the Triple Bottom Line, namely: economic, environmental and social
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Bni for Customers
2014 BNI Sustainability Report
Products from BNI’s SME clients were shown in the Community Empowerment Work Exhibition in Jakarta
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As a financial institution, the largest economic, environmental and social impact originates from financing BNI’s debtors. Therefore, in addition to always implementing prudent banking principles, environmental and social community aspects are always important considerations for BNI in its interactions with all debtors and customers, as well as in designing banking product and service specifications.
2014 BNI Sustainability Report
For this, as a form of responsibility to its customers, the public and the environment, BNI implements various strategic measures aimed at ensuring every client runs its business within the law, complying with environment and social provisions, and following best practices in the banking sector and other related industries. [G4-DMA]
Our value chain: Raising Confidence, Delivering Growth [G4-12]
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Employees BNI | Regulators | Government | Public | Media
BNI Portfolio Products-Services and Customer Distribution To provide sustainable banking services, every bank must manage the risks inherent in its products and services. By applying the principle of sustainability, BNI has become a pioneer, demonstrating that maintaining a balanced triple bottom line of profit, people and planet can be achieved. BNI measures product and service quality by ensuring product responsibility, ensuring all matters follow best practices in the banking sector. 1. Distribution of Funds for SMEs [G4-FS2][G4-FS3][G4-FS6][G4-FS7] Small and Medium Enterprises (SMEs) are an important sector and make a great contribution to realizing national economic development goals. The Government also has created a policy for the development of the SME sector with the aim of increasing the potential and active participation of SMEs in national development. BNI also participates in the development of the SME sector to improve people’s lives through the provision of credit to the SME segment. The lending program for SMEs is divided into eight groups, in accordance with the principles of green banking, namely:
2014 BNI Sustainability Report
• • • • •
Food and Energy Resilience Credit (KKPE) Community Business Credit (KUR) Cattle Breeding Credit (KUPS) Plantation Revitalization through Bio Energy Development Credit (KPEN-RP) Credit for Environmentally Friendly Productive Business (Industrial Efficiency and Pollution Control, known as IEPC -1 and -2 IEPC) • Transmigration Core Community Plantation (KLBI Pir-Trans) Credit • Asian Development Bank (ADB) Export-Oriented Business Credit in Rupiah
Type of Loans KKPE KUR KUPS KPEN-RP
2013 Realization
2014 Balance
Realization
Balance
-
196,205,370,479
-
200,631,270,442
6,713,840,071,064
4,194,709,363,695
2,873,771,177,185
3,186,179,314,222
-
61,412,755,774
-
56,037,528,030
-
347,135,494,929
-
526,551,972,425
IEPC-1
23,018,529,713
9,262,347,994
-
11,063,179,652
IEPC-2
66,883,825,000
28,199,212,700
-
5,460,712,986
KLBI (Pir-Trans)
25,225,767,601
6,124,853,128
-
-
USD 328,407.22
USD 47,272.63
-
-
ADB
54 In addition to the loan program, BNI disbursed Rp 77.4 trillion in loans to small and medium business groups in 2014. 2. Consumer Credit [G4-FS2][G4-FS3][G4-FS6][G4-FS7] In addition to distributing funds to SMEs, BNI also disbursed consumer funds or consumer loans, such as housing loans (BNI Griya), vehicle ownership credit (BNI Oto), unsecured loans (BNI Fleksi), education credit (BNI Cerdas), secured retail loans (BNI Wira Usaha), and secured deposit loans for other purposes that cannot be fulfilled by other credit (BNI Instan). In 2014, consumer credit growth stood at 9.1%, reaching Rp 55.3 trillion, and accounted for 19.9% of BNI’s total loan portfolio. Following are details of BNI’s consumer loan products: • BNI Griya BNI Griya is property sector consumer credit and achieved a high growth level, at Rp 33.3 trillion in 2014, and accounted for 60.2% of BNI’s total consumer loans. BNI Griya disbursement paid attention to sustainability by requiring green open space, public facilities, waste processing, as well as the avoidance of flood zones and locations under Extra High Voltage electricity cables. • BNI Oto BNI’s car ownership product, BNI Oto, is the second largest contributor to BNI’s consumer credit and retail. BNI Oto offers financing solutions for new and used fourwheeled vehicles, as well as new two-wheeled vehicles. In 2014, BNI Oto realized Rp 6.0 trillion, including channeled loans and loans made directly by BNI.
2014 BNI Sustainability Report
• BNI Fleksi BNI Fleksi offers unsecured loans for permanent employees who have worked for the bank for a minimum of two years. This product contributed to BNI’s consumer credit and retail portfolio with loan growth of 36.6% in 2014, achieving Rp 1.3 trillion. • BNI Wira Usaha BNI Wira Usaha is a collateral-based retail credit product to satisfy productive/ non-consumptive needs channeled through a standard process by using an e-LO (Electronic Loan Origination) system. In 2014, this product contributed Rp 3.3 trillion. Loan Composition Based on Customer Category (Rp billion) [G4-FS6][G4-FS7] Consumer Banking
55,338
19.9%
Commercial Banking (Small and Medium)
77,384
27.9%
119,715
43.1%
International Banking
10,082
3.6%
Subsidiary Banking
15,104
5.4%
277,622
100%
Corporate Banking
Total
Accompanying Every Customer BNI continues to run a variety of strategic measures aimed at ensuring customers always run their businesses in compliance with environmental and social provisions, as well as following banking best practices. Client operations have a direct impact on the environment and society, therefore BNI realizes that customers need products and services that suit their needs. Moreover, BNI has now transformed into a customer-based business (customer-centric) through products and services that can be customized and are flexible in line with customers’ needs. • BNI Weekend Banking [G4-FS14] BNI understands that retail customers are busy and often do not have time to come to BNI offices on weekdays. Therefore, BNI has opened Weekend Banking outlets that are open on Saturdays and Sundays in certain strategic areas in more than 40 major cities across Indonesia to reach retail customers. BNI Weekend Banking services include account opening, cash deposits and withdrawals, and transfers. • Financial Solution Currently, corporate customers in the banking business segment expect a banking contribution to be not only about funding but to also deliver customized financial solutions. BNI offers a variety of financial solutions to meet the financial management needs of its corporate customers. Starting from receiving to selling products, as well as financing needs and fund placement.
2014 BNI Sustainability Report
55
•
Community Credit Card [G4-FS14] Micro, Small and Medium Enterprises (MSMEs) in Indonesia continue to gain the attention of stakeholders, including for funding. BNI has issued a community credit card that can facilitate MSME transactions to repay loans to BNI. The community credit card is one solution to make it easier for MSMEs to rent a place of business and to expand their businesses.
Expanding Access to Banking Connecting every customer across Indonesia and oversees is BNI’s dream. BNI continues to strive to expand access to banking to provide transaction convenience to customers. Further, BNI has also started to focus on implementing branchless banking, as endorsed by the government.
56
1. Foreign ATMs [G4-FS14] BNI has realized the first full access Automated Teller Machine (ATM) operations by an Indonesian bank abroad. In the first stage, BNI is operating four ATMs in Hong Kong and plans to continue in Singapore. BNI’s ATMs are in the following strategic locations: [G4-13] • Two ATMs at the BNI Hong Kong branch office at G/F Far East Finance Centre, 16 Harcourt Road, Admiralty, Hong Kong. • Two ATMs at BNI Remittance Ltd. (BRL) at Flat/RM5 on G/F, Nos 1-7 Keswick Street, Causeway Bay, Hong Kong, facing the Consulate General of the Republic of Indonesia in Hong Kong. 2. Treasury Expansion in Eastern Indonesia [G4-FS13][G4-FS14] To provide convenience to customers for physical and non-physical foreign exchange transactions, BNI has opened a Treasury Regional Area (TRA) in Manado. The Manado TRA can serve customers in North Sulawesi, Central Sulawesi and North Maluku. TRA Manado is the tenth owned by BNI. BNI has already opened TRAs in Medan, Pekanbaru, Palembang, Bandung, Semarang, Surabaya, Makassar, Balikpapan and Denpasar.
Safe and Comfortable Banking Services Technology development and the increasingly digital age have resulted in banks becoming targets of crime. Cases of thefts from accounts and ATMs across Indonesia have made bank customers feel unsafe. BNI has implemented security procedures at every office and ATM and increased security for Internet Banking. [G4-DMA]
2014 BNI Sustainability Report
•
•
ATM Machine Security Technology The use of fake ATM cards and ATM burglary making use of power failures has been anticipated by BNI and additional security technology added to BNI’s ATM machines. Currently, all BNI ATMs are equipped with sensors so that when a cash withdrawal is ongoing and the power fails, the account still records a withdrawal. [G4-DMA] BNI Internet Banking Security Systems (BNI E-Secure) BNI Internet Banking is a facility provided to customers to conduct banking through the Internet, facilitating transactions anytime and anywhere. BNI Internet Banking services prioritize convenience, information and financial transaction security through International Internet Standard Security ISSL 3.0 with 128-bit encryption so that customers’ financial and personal information is more secure. BNI uses additional safety devices for Internet Banking financial transactions with BNI e-Secure. BNI e-Secure functions by generating a continually changing PIN (dynamic PIN) every time the customer makes a transaction. [G4-DMA]
Financial Education and Wise Financial Management To support the government’s step to implement the National Strategy for Financial Literacy, BNI has also aggressively disseminated its financial literacy program (financial planning). BNI feels a sense of responsibility to the community related to financial management to improve welfare. This year, BNI has created the BNI Financial Board Game program, which is a new breakthrough in teaching financial management and planning in a simple and fun way. [G4-FS16] 57 The BNI Financial Board Game has been designed to resemble the game Monopoly. The game has been set up as a tool to learn financial management and investment planning, adapted to the conditions of Indonesia’s financial sector and a variety of financial products owned by BNI. The BNI Financial Board Game can also train users to easily and more quickly understand information on the ins and outs of the financial world, ranging from macro-economic conditions, to how to spend money, and differences in the character of various financial products, such as banking, insurance and other investment products. [G4-FS16]
Development of New Products and Services A company must make a profit to maintain sustainability, however, the three economic, environmental and social aspects should be able to run alongside and complement this. To improve economic sustainability, BNI continued to develop products and services in 2014. BNI did this to maintain the company’s economic sustainability.
2014 BNI Sustainability Report
•
•
•
•
58
BNI TapCash BNI launched BNI TapCash, a card (digital money) that can help customers make payment transactions. BNI TapCash can be used at all merchants who cooperate with BNI, including public facilities such as the commuter line, toll road, parking lots, TransJakarta buses and on campuses such as at BNI-UGM FoodPark and the UI Canteen. BNI launched this product at the international music event Java Jazz Festival (JJF), 2014. BNI JCB Platinum To benefit Japanese people working in Indonesia, BNI launched the JCB Platinum Credit Card in collaboration with an international service provider based in Japan, the Japan Card Bureau (JCB). This cooperation is also expected to be able to trigger JCB credit card users in Japan, China, Korea, Taiwan and other Asian countries to travel to Indonesia, thus BNI will be able to increase its banking services in line with the growing national and regional economy. BNI Emerald World MasterCard BNI has launched the first, most exclusive debit card in Indonesia with facilities around the world, namely the BNI Emerald World MasterCard debit card. The BNI Emerald World MasterCard has facilities aimed at priority customers who want the best experiences to support their everyday activities. Paspor Online BNI is the only bank that offers online passport payments, a new service from the Directorate General of Immigration in the Justice and Human Rights Ministry. The pilot project for passport payments made through BNI has been conducted to provide the public with service and cost certainty and transparency. Currently, the bank serves all Immigration Offices throughout Indonesia.
Customer Service, Satisfaction and Complaint Handling As a national banking company, BNI is responsible for products provided to its customers and pays attention to the importance of customer satisfaction. BNI also provides maximum appreciation for the loyalty of the customers who use BNI products for all their transactions. This starts from prize draws, to discounts and customer engagement in BNI activities. [G4-PR5]
2014 BNI Sustainability Report
Appreciating Loyal BNI
BNI realizes that customers are an inseparable part of its growth. Customer loyalty has made BNI one of the largest and strongest banks in Indonesia. In appreciation for their loyalty, BNI has a variety of special programs, including:
Customers •
Inviting Customers to Stamford Bridge
As a token of appreciation to its loyal customers, BNI has a loyalty appreciation program named “BNI Goes to Stamford Bridge”. This program invites selected customers who use the card cobranded by BNI and the English football club Chelsea FC to watch an English Premier League soccer match in London. This program also contributes to BNI’s efforts to improve the quality of football in Indonesia.
•
Rejeki Taplus Program
BNI launched the “Rejeki BNI Taplus” program in appreciation of loyal customers. BNI has prepared billions in cashback, rewarding customers merely for using BNI ATM, BNI SMS Banking, BNI Internet Banking, BNI Debit Card and BNI Debit Online for transactions as often as possible. In 2014, BNI shared good fortune with 46,000 loyal customers.
Handling Customer Complaints BNI has always believed that customers make a major contribution by providing input to improve services. The BNI Contact Center serves as a bridge between customers and the management. Improvements continue to be made, from increasing applications and infrastructure, to increasing the soft skills of employees. [G4-PR5]
2014 BNI Sustainability Report
59
customer complaints data [G4-PR5] Media Complaints
2013 Banking
Mass Media
2014
Credit Card
OCC
Banking
Credit Card
OCC
4
15
48
5
3
93
30
57
41
11
36
0
Social Media
0
32
0
94
68
0
Letter/Fax
2
46
2,918
0
2
3,873
1,103
1,020
177
683
619
170
54,036
91,554
9,923
86,809
77,467
12,802
0
316
43,413
0
257
66,436
55,085
93,040
56,520
87,602
78,452
83,374
Electronic Media (Online)
Email Telepone Others Total
Grievance settlement [G4-PR5] Type of Grievance Banking
60
2013 Total
On Progress
%
2014 Resolved
%
Total
On Progress
%
Resolved
%
55,085
2,826
5.13
52,529
94.87 87,602
3,302
3.77
84,300
96.20
Credit Card 93,040
3,995
4.29
89,045
95.71 78,452
3,544
4.52
74,908
95.48
56,520
3,456
6.11
53,064
93.89 83,374
3,771
4.47
79,603
95.48
Online Customer Complaint (OCC)
In an effort to provide services and financial services that satisfy customers, BNI continues to provide improved facilities and infrastructure. The Bank continues to work to raise the ability of personnel and improve information technology to serve customer needs. Indicators of customer satisfaction are reflected in surveys conducted by independent parties such as Marketing Research Indonesia, which show that the Bank successfully reached the Top 2 in 2014. [G4-PR5]
BNI Expands Contact Center Services PT Bank Negara Indonesia (Persero) Tbk (BNI) has strengthened its contact center services by adding a new service center in Surabaya, which was inaugurated by BNI President Director Gatot M Suwondo on December 17, 2014. The addition of this service center is one way to strengthen BNI’s business continuity and disaster recovery plan. Through the BNI Call 500046 service, customers can easily access information, conduct transactions and find solutions to problems associated with BNI’s banking services. The Surabaya contact center also functions as the main BNI Contact Center site for Jakarta. The Surabaya BNI Contact Center operates actively 24 hours a day for never ending customer service. For BNI asset optimization and for operational efficiency, the Surabaya contact center is located in Gedung BNI Graha Pangeran Surabaya. Surabaya is BNI’s city of choice because it is Indonesia’s second largest city.
2014 BNI Sustainability Report
Contact Center Service Officers in Surabaya
Employee Engagement In order to capture the aspirations of its employees, BNI conducted the Voice of the Employee Survey (VoES) in 2014. Specifically, the survey aimed to obtain information about the level of employee engagement throughout BNI and its organizational units, as well as key factors that encourage increased engagement levels. The results of this survey can be used as a basis to improve human resource management in the future. The VoES 2014 results showed that 46.88% of BNI employees have a very high level of engagement with the company, higher than company averages globally. The support of employees who are enthusiastic and have a positive perception of their work is one of BNI’s main types of capital to encourage target achievement and raise the organization’s reputation. Based on this survey analysis, the key factors that significantly boost engagement levels are Leadership, Policy and Organization, Remuneration, Work Infrastructure, Work Climate and work-life balance.
2014 BNI Sustainability Report
61
62
BNI expects all its employee to feel proud of being part of the BNI extended family, and to work together to carve out achievements
2014 BNI Sustainability Report
63
BNI for Employees
2014 BNI Sustainability Report
Several BNI staff discuss sustainability, business and risks in the Indonesian palm oil industry with the UNEP-FI team
64
BNI has always believed that employees are one of the most valuable assets for any organization
and company. Sustainability will not be possible without employee contribution. BNI has tried to create the best conditions and work experience for all its employees and wants every employee to feel proud to be part of the BNI family, able to work together and make achievements together. Of course, without the dedication and hard work of all its employees, BNI would not be able to grow well and achieve sustainability.
2014 BNI Sustainability Report
Fair and Equitable Work Opportunities
As one of the largest national banks in Indonesia, the presence of BNI benefits the community by creating work. Employment opportunities are open to anyone who wants to join BNI. BNI also has a policy to ensure that all employees and prospective employees are treated fairly and with respect regardless of age, race, religion, creed, gender or physical condition. BNI is against all forms of discrimination and upholds the principles of humanity and respect for human rights in human resource management. Thanks to this policy, BNI has not made or received any complaints regarding discrimination. [G4-HR3] [G4-DMA]
BNI Personnel Work Culture
BNI has a work culture based on a principle it believes in and that serves as the basis for various Human Resource (HR) policies and management, guiding the behavior of every member of BNI. This work culture is known as Principle 46. All BNI personnel, from commissioners, to directors and employees in the frontline, including employees of BNI partners, must comply with the behavior and values of this work culture. PRINCIPLE 46 consists of four main values and six main behaviors for BNI personnel, who are expected to understand this as a basis for thinking and behavior in any work activity. [G4-56]
Principle 46
4 BNI Work Culture Values: • Professionalism • Integrity • Customer Orientation • Continuous Improvements 6 Main Behaviors for BNI Personnel • Increase competency and provide the best results • Honest, genuine and sincere • Disciplined, consistent and responsible • Provide the best service through synergistic partnership • Always make improvements • Creative and innovative
2014 BNI Sustainability Report
65
BNI trusts that by implementing this work culture, BNI will be able to realize its vision of “Being a Bank that is the pride of the nation, with renowned and leading service and performance.” Therefore, the work culture is promoted continually to all employees. BNI wants to make sure all BNI personnel have the same understanding and passion for providing the best service to all stakeholders. Promotion of the work culture is made to every new employee who becomes part of BNI through a good induction program for fresh graduates as well as experienced hire. [G4-SO4] [G4-DMA]
Employee Profile and Distribution
By the end of 2014, BNI had 26,536 employees spread across Head Office in Jakarta, 15 operational areas throughout Indonesia and six BNI branches abroad. For efficient and equitable development and prosperity in all parts of Indonesia, BNI tries to hire employees from the local population in its operational areas. All BNI’s employees are recruited locally in each operational area. BNI believes that this can not only help the local economy and regional development through job creation but will also help BNI understand the culture, wisdom and needs of local customers. [G4-LA1] employee distribution based on operational areas [G4-LA1] [G4-10]
66
Area Jakarta Head Office Medan Padang Palembang Bandung Semarang Surabaya Makassar Denpasar Banjarmasin Manado Papua Jakarta Senayan Jakarta Kota Jakarta BSD Jakarta Kemayoran Cabang Luar Negeri Grand Total
Male 3,585 673 610 573 745 923 1,130 550 619 716 353 156 524 567 471 622 17 12,834
Female 2,996 668 628 609 791 1,096 1,250 541 567 756 441 153 786 717 800 898 5 13,702
Total 6,581 1,341 1,238 1,182 1,536 2,019 2,380 1,091 1,186 1,472 794 309 1,310 1,284 1,271 1,520 22 26,536
Percentage 24.80 5.05 4.67 4.54 5.79 7.61 8.97 4.11 4.47 5.45 2.99 1.17 4.94 4.79 4.79 5.73 0.08 100.00
2014 BNI Sustainability Report
employee distribution based on level of position [G4-LA1]
employee Turnover based on Gender [G4-LA1]
8,668
5,277
Male
4,143 3,848
4.73%
1,500 693 111
34
Vice President Male
Female
1,110
936 216
Assistant Vice President
4.74%
0
Manager
Assistant Manager
Assistant Non Clerical
Female
employee distribution based on gender, age and position [G4-LA1] 25 - 30 > 30 - 35 > 35 - 40 > 40 - 45 > 45 - 50
> 50
Grand Total
67
Male Vice President
-
-
-
1
21
59
30
111
Assistant Vice President
-
-
10
37
208
287
151
693
Manager
-
13
80
381
432
402
192
1,500
59
786
393
1,281
730
641
253
4,143
Assistant
Assistant Manager
578
2,760
725
871
233
87
23
5,277
Non Clerical
157
246
117
234
70
152
134
1,110
Total Male
794
3,805
1,325
2,805
1,694
1,628
783
12,834
Vice President
-
-
-
9
19
6
34
Assistant Vice President
-
-
3
11
79
90
33
216
Manager
-
17
89
220
335
212
63
936
Female
Assistant Manager Assistant Non Clerical
-
147
936
356
934
827
486
162
3,848
1,459
4,774
988
1,214
209
22
2
8,668
-
-
-
-
-
-
-
-
Total Female
1,606
5,727
1,436
2,379
1,459
829
266
13,702
Grand Total
2,400
9,532
2,761
5,184
3,153
2,457
1,049
26,536
Recruiting New Talent
As a process for the company’s sustainability, BNI does not forget to prioritize recruiting new employees who can fill capacity gaps related to outlet openings and targeted business expansion. In 2014, the bank undertook several initiatives to improve the effectiveness of its recruitment process as part of a strategy to ensure manpower sustainability. Some of these initiatives were:
2014 BNI Sustainability Report
• • •
• • •
Utilizing social media networks to find potential job candidates through cooperation with the website LinkedIn and other social media Increased use of technology through e-recruitment and optimizing participation in job fairs to recruit talented candidates Conducting local recruitment through the Officer Development Program (ODP) with decentralized local training in the Regional Office to empower and develop the economic, social and environmental condition in communities, as well as optimizing labor absorption in the area. Continuing scholarships related to future employment through the Early Recruitment Program in 24 selected universities. Expansion of sourcing channels by utilizing BNI channels/outlets abroad to obtain Indonesian citizens who have graduated from foreign universities as candidate employees. Conducting an Employee Value Proposition (EVP) survey to provide input to improve the effectiveness of the recruitment system, explore BNI’s attractiveness factor, while enhancing BNI’s corporate brand image in the eyes of job seekers.
For the sake of work stability, BNI realizes that the employee turnover ratio should be minimized. BNI had set an employee turnover ratio for 2014 of under 5%. By the end of 2014, a total of 850 employees had resigned, or 3.24% of BNI’s total employees. Taking into account employees who resigned, were dismissed or retired, the BNI employee turnover rate was 4.73% of the total workforce, or 1,243 people. [G4-LA1] 68
Employee turnover based on Gender [G4-LA1] Gender
Total
Percentage
Male
608
4.74%
Female
635
4.73%
1,243
4.73%
Total
Employee turnover based on age* [G4-LA1] Age
Male
Female
Total
Percentage
82
136
218
17.54
> 25 - 30
205
316
521
41.91
> 30 - 35
50
52
102
8.21
> 35 - 40
35
57
92
7.40
> 40 - 45
28
23
51
4.10
> 45 - 50
22
5
27
2.17
> 50
186
46
232
18.66
Total
608
635
1,243
100.00
≤ 25
* Voluntarily Resign
Development, Training and Motivation
BNI realizes that retaining the best talent in the company is a very important strategy. To retain those with potential, BNI continues to improve and innovate with its employee retention programs, such as: • Training, development and employee education programs, including scholarships for BNI employees
2014 BNI Sustainability Report
• • •
Adjustment of remuneration and various facilities and benefits for employees and their families Career Path Planning for every employee Annual performance appraisals for all employees [G4-LA11]
1. Training and Development Program BNI has always believed that employees are one of its most valuable assets. So that BNI can provide the best service to its customers and achieve sustainability, the bank requires human resources that are competent, strong, professional and ethical. Therefore, BNI continues to hone the talents and improve the competence of employees through various training, development and employee education programs. Human Resource Development in 2014 focused on developing performance-improving competencies to face banking market development trends ahead of the 2015 ASEAN Economic Community (AEC). In order to create excellent human resources, BNI develops its human resources with focus on: [G4-LA9] • Organizational refinement (strategy, business partnerships, expertise, services) • Capacity Fulfillment • Capability Enhancement 2. Learning Program In 2014, BNI divided its learning program into eight academies and five business streams, depicted in the BNI Learning Framework. The implementation of this learning program is a necessity for every employee to do their job and achieve the company’s goals and objectives, while providing the best work experience. In addition to the learning program, BNI also has 42 e-learning programs as complementary sessions. BNI also implements learning programs to refresh employees in units dealing with compliance, legal matters and risk. These programs are regularly held with the aim of minimizing errors, fraud and losses. Such programs include refreshing jurists, refreshing compliance officers and refreshing auditors. BNI routinely conducts internal seminars on GCG and Business Ethics for BNI’s Board of Commissioners, Board of Directors and executive officers.[G4-LA9] Academy Banking Operation Academy
Number of Programs
Number of Classes
Number of Learners
6
11
531
171
439
10,571
41
164
4,705
8
40
1,118
Leadership Academy
30
209
6,921
Marketing, Sales, & Service Academy
35
111
2,843
1
26
871
13
68
2,119
305
1,068
29,679
Corporate Core Function Academy Credit & Business Academy Governance, Risk, & Compliance Academy
Transactional Banking Academy Treasury & Global Banking Academy Total
2014 BNI Sustainability Report
69
3. Career Development As one of the most important assets of the company, potential employees must continue to be developed, especially in their career path. To support business expansion and ensure the sustainable smooth running of business, BNI has an integrated career planning and development system. Important components in this system are the establishment of criteria and the identification of groups of employees with superior performance that fall into the talent pool category, i.e. employees considered to have the potential to become BNI’s next leaders. These employees then participate in the Leadership Development Program (LDP). In 2014, there were 2 LDP batches: LDP 1000 Batch 10 and LDP TOP 1000 with a total of 126 employees participating. [G4-LA9] In addition, BNI also implements Individual Development Plans (IDP) that contain career planning and development of employee competencies. This is intended to provide equal opportunities to all employees. Feedback obtained from the IDP is then entered into a Learning Needs Analysis (LNA), which becomes the reference basis for unit leaders to develop the competencies of employees under their responsibility. BNI also applies Dual Career Path Management (Dual CPM), which provides an opportunity for employees to choose a managerial or specialist career path. This program is continuous and done in stages. [G4-LA9]
Health and Welfare 70
1. Health and Safety Health is a priority concern for everyone. Without good health, one cannot do activities and work, thus cannot create business continuity. As well as caring for employees’ career development, BNI also pays attention to the health and safety of its employees. As the embodiment of BNI’s OHS commitment, as noted in the Collective Labor Agreement (CLA), BNI creates programs to safeguard the health of its employees. [G4-LA8] [G4-DMA] • Routine exercise every Friday morning at all branch offices • Campaigns and counseling related to chronic diseases and tips on healthy living • Optimization of time off and fatigue anticipation To ensure the safety of each employee, BNI also conducts routine simulations to ensure fire awareness and good evacuation habits in Head Office, Regional and Branch offices, especially those occupying high-rise buildings. [G4-LA8] [G4-DMA] 2. Employee Remuneration and Benefits To improve the motivation and performance of employees, BNI bases its remuneration policy on employee competence, experience and performance. The better the performance, competence, achievements and responsibility, the higher the employee compensation and benefits to be received. BNI does not base remuneration and allowances on gender differences. BNI also determines the amount of remuneration and benefits through salary surveys conducted by an independent party. Through such surveys, BNI wants to ensure that the remuneration and allowances given are in line with similar companies and the prevailing Provincial Minimum Wage (UMP). Based on the 2014 salary
2014 BNI Sustainability Report
survey, BNI entry-level employees received a base salary of at least 15% higher than the local minimum wage. [G4-EC5] Standard salary entry level BNI 2014 [G4-EC5] Amount of UMP 2014 (Rp)
Amount of Salary of Entry Level BNI (Rp)
Medan
1,505,850
2,200,000
Padang
1,490,000
2,200,000
Palembang
1,825,600
2,200,000
Bandung
2,000,000
2,200,000
Semarang
830,000
2,200,000
Surabaya
866,250
2,200,000
Makassar
1,800,000
2,200,000
Denpasar
1,542,600
2,200,000
Banjarasin
1,620,000
2,200,000
Manado
1,900,000
2,200,000
Papua
2,040,000
2,200,000
Jakarta Senayan
2,400,000
2,400,000
Jakarta Kota
2,400,000
2,400,000
Jakarta BSD
2,400,000
2,400,000
Jakarta Kemayoran
2,400,000
2,400,000
Operation Area
71 In 2014, total expenditure for employee remuneration and allowances (including directors) amounted to Rp 6.87 trillion. This was an increase of 11.34% compared to the previous year’s Rp 6.17 trillion. These funds include the payment of employee and director salaries, bonuses, leave, meal allowances, religious holiday allowances, medication, accommodation, housing, rotating work benefits, old age insurance, pension, and other types of employee benefit. [G4-EC3] remunerations and benefits received by permanent and non permanent employees [G4-LA2] Remunerations and Benefits Received Salaries and wages Jamsostek Compensation for death and mourning Incentives and benefits Disaster relief and disaster Allowances assignment/equality Annuity Housing allowance and medication Annual leave and special leave family support Leave childbirth/miscarriage Menstruation leave Leave perform/practice their religion Leave every 5 years and the cost of travelling Pension Fund Severance
2014 BNI Sustainability Report
Permanent Employee ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Non Permanent Employee ✓ ✓ ✓ ✓ ✓ ✓
✓ ✓ ✓ ✓ ✓
Ratio of Highest to Lowest Salaries Ratio of highest to lowest Employee salary
48.48:1
Ratio of highest to lowest Director salary
1.11:1
Ratio of highest to lowest Commissioner salary
1.11:1
Ratio of highest Director and highest Employee salary
1.64:1
Whistle Blowing System (WBS) As a precaution and to prevent violations at BNI that could lead to financial loss and damage BNI’s image, BNI implements a Whistle Blowing System (WBS) with the name “WBS to the CEO”. WBS is a commitment to creating a clean work environment with integrity through the active participation of BNI personnel reporting violations within the BNI environment. Reports submitted through WBS are for the following offenses: [G4-SO5] • Cheating Dishonest acts including fraud, extortion, forgery, concealment or destruction of documents/reports or use of false documents, by a person/group of people that pose a potential for loss or real loss to the company.
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• Breaking the rules/law Actions/deeds that are punishable offenses and carry sanctions according to prevailing laws both internally and externally. • Conflict of interest A situation where members of the Board of Directors, Board of Commissioners, Committee members, permanent/ contract/outsourcing employees (BNI personnel) who, because of their position, rank or authority in BNI, have a personal interest that could affect their objectivity in conducting tasks assigned by BNI, giving rise to a conflict between personal and/or group and/or family interests with BNI’s economic interests. • Bribery/gratuities Receiving anything in any form and in any number/value from other parties in relation to a position/authority/responsibility in BNI. • Unethical behavior Acts or actions taken by BNI personnel that cannot be ethically justified such as violations of the BNI Code of Conduct.
2014 BNI Sustainability Report
Status
No.
Type of Fraud
Number of Report
Settlement In Process
Evident In Depth Review
Sanction Process
Warning
Counseling
Administrative Sanction
Not Enough Evidence for Conviction
1.
Conflict of Interest
3
1
0
0
1
1
0
0
2.
Unethical Conduct
8
0
0
0
1
3
0
4
3.
Frauds
3
0
1
0
0
0
0
2
1
0
0
0
0
0
0
1
20
3
1
0
0
4
0
12
35
4
2
0
2
8
0
19
4.
5.
Bribery/ Gratification Bribery/ Gratification Total
Industrial Relations BNI fully supports employee freedom of assembly, association and to have an opinion expressed through trade unions. The union serves as a communication and aspiration forum for BNI employees. Around 24,351 of BNI’s employees, or 91.77% of all employees, have registered as members of the BNI union. This percentage rose 3.77% from the previous year. BNI fosters industrial relations in accordance with applicable employment laws. BNI and Labor Union representatives have agreed on the Collective Labor Agreement (CLA), which aims to protect the rights and obligations of employees and BNI. BNI regularly holds sharing session meetings with the Labor Union with the aim of hearing aspirations, proposals, suggestions and criticism from employees. [G4-11]
CEO Calling
2014 BNI Sustainability Report
Ahead of the ASEAN Economic Community (AEC) in 2015, BNI has prepared a way to increase banking efficiency in the country to win the competition with other banks within the ASEAN region. BNI regularly holds the event “CEO Calling” with the theme “Strengthening Communication to Improve Performance”. This event is held to receive input from employees to improve BNI. BNI also encourages its employees to be ready to face market development trends in the ASEAN region banking industry. All efficiencies achieved by national banks will be the key to coping with free market attacks in Indonesia
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As a national banking institution, working for the welfare of the Indonesian people provides BNI with its spirit and primary purpose.
2014 BNI Sustainability Report
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Bni for Society
2014 BNI Sustainability Report
Developing Weaving in Sumba has become one of BNI’s concerns in assisting its clients in Eastern Indonesia
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Referring to SOE Minister Regulation No. 05/MB/2007 on the Partnership and Community Development (PKBL) Program, BNI has implemented PKBL programs upholding the theme of Building the Nation Together (BNI Shares) across Indonesia to engage and collaborate with various external parties, BNI employees and relevant institutions. Through this program, BNI seeks to increase the positive impact and benefit of its existence amid Indonesian society to spur economic growth and improve welfare and the environment. [G4-DMA] [G4-EC7][G4-EC8] [G4-SO1] Partnership Program The partnership program in 2014 focused on creative crafts and food through the Kampoeng BNI program in all areas of Indonesia. BNI hopes that these programs can develop community economic potential in rural areas through partnership program soft loan assistance, to strengthen the capacity of communities in the area. [G4-DMA][G4-EC7][G4-EC8][G4-SO1] 1. Kampoeng BNI (BNI Village) As one of the largest national banks, which represents the interests of various parties, BNI plays an active role in developing welfare and living standards in small communities. The goal is to create economic and social progress, especially in micro, small and cooperative businesses, with the expectation that such business groups will be able to contribute by being a strong and healthy economic force. This role continues to be implemented through various Corporate Community Responsibility (CCR) programs,
2014 BNI Sustainability Report
one of which is the continuation of the Partnership and Community Development Program concept “Kampoeng BNI”. With Kampoeng BNI or BNI Village, BNI continues to expand development of creative industries through the economic empowerment of rural communities through Partnership Program lending that manages the potential of local resources and local knowledge, while at the same time fostering sustainable development. The Kampoeng BNI program not only distributes business financing but also provides capacity building, such as weaving training in accordance with the wishes of the international market, simple bookkeeping, effective marketing and other training appropriate to the needs of development partners.
Since 2007, BNI has developed 28 Kampoeng BNI in Indonesia, where each Kampoeng highlights individual characteristics. In 2014, BNI added 4 more Kampoeng, namely Kampoeng BNI Batik Tulis Wiradesa (Pekalongan), Kampoeng BNI Batik Tulis Lasem (Rembang), Kampoeng BNI Imogiri (Bantul), and Kampoeng BNI Kain Sasirangan (Banjarmasin). Total funds disbursed amounted to Rp 18.28 billion. [G4-EC7][G4-SO1]
Kampoeng BNI 2014 in numbers Number of Partners
Credit Assistance Fund (Rp)
Relief Fund Public Facilities (Rp)
Kampoeng BNI Batik Tulis Wiradesa Pekalongan (Central Java)
42
4.98 billion
3.3 billion
Kampoeng BNI Batik Tulis Lasem Rembang (Central Java)
101
2.1 billion
598 million
Kampoeng BNI Imogiri Bantul (DI Yogyakarta)
200
3.8 billion
547 million
Kampoeng BNI Kain Sasirangan Banjarmasin (South Kalimantan)
23
2.1 billion
892 milion
Location
Bringing Indonesian SMEs to International Markets Through The Kampoeng BNI Product Exhibition [G4-DMA] [G4-EC7][G4-EC8] [G4-SO1]
2014 BNI Sustainability Report
Working closely with the Embassy of the Republic of Indonesia in the Netherlands, BNI held a Kampoeng BNI Product Exhibition in August 2014 as part of the series “The Pride of Indonesian Heritage” to celebrate the 69th Anniversary of the Republic of Indonesia. The exhibition displayed designer collections by Denny Wirawan and Tuty Cholid and a variety of Kampoeng BNI products, including woven and batik fabrics, wood and metal sculptures, silver jewelry and modern arts and leather crafts for fashion and lifestyle. Visitors were excited to see this exhibition and interact directly with the BNI’s development partners.
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Kampoeng Bni
A Million Enchantments from Local Wisdom As a State-Owned Enterprise engaged in the banking sector, BNI undertakes and is responsible for escorting every layer of Indonesian society to sustainable independence and prosperity. This is a challenge in itself because Indonesia is a large country with extensive cultural diversity and local potential. For this reason, BNI launched “Kampoeng BNI”. Since it was first initiated in 2007, the Kampoeng BNI program has been a pioneer community awareness program integrated with business processes. Currently, Kampoeng BNI has developed into a flagship program to realize BNI’s ideals for rural development, community empowerment, and the development of economic potential in each region based on the potential of local resources. Kampoeng BNI moves to empower community economies through soft loans, while at the same time fostering sustainability through capacity building, advocacy, promotion and infrastructure support, so that in the long run the community can become self-sufficient and improve their living standards. In 2014, BNI published a book entitled “Kampoeng BNI A Million Enchantments from Local Wisdom”, which is dedicated to all the Kampoeng BNI partners throughout the archipelago. The book aims to highlight the uniqueness and characteristics of each Kampoeng BNI. We expect every Kampoeng BNI will become increasingly eager to grow and develop with BNI toward a more prosperous society when they see this book.
News and Stories From Kampoeng BNI Partners
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I Gede Surya Atmaja
In 2005, I Gede Surya Atmaja started a business selling Chinese-style coins with a hole in the middle, which are useful for arts and fulfill demand for religious paraphernalia, among other things. The majority of buyers are from surrounding villages and use these products in traditional ceremonies, as well as in temples and at home. Since BNI made his village part of Kampoeng BNI in 2011, his business has been growing. In addition to training, Gede also received a capital injection. “With the assistance provided by BNI, I became more confident about fulfilling large orders,” said the father of four. Now, Gede is enjoying the fruits of his perseverance. Per month, he is able to make an average profit of Rp75 million from his own efforts. Thanks to BNI, sales are widespread, with customers coming not only from the island of Bali but also from Lampung, Sulawesi and Java. “I am happy because this business is able to employ more people. Hopefully BNI will continue to develop our village into the future so we can progress more, “said the man who upholds the principles of honesty and hard work in his business.
2014 BNI Sustainability Report
Kampoeng BNI MUARA ANGKE FISHERIES
Kampoeng BNI KAMASAN ART
Kampoeng BNI SOUTH SUMATERAN TRADITIONAL WEAVING
Kampoeng BNI PANDAI SIKEK TRADITIONAL WEAVING
Kampoeng BNI WIRADESA BATIK TULIS
Pluit Jakarta
Klungkung Bali
Muara Penimbung South Sumatera
Pandai Sikek West Sumatera
Kemplong Central Java
“Saving our Ancestral Inheritance”
“Every Drop of Sweat is Valuable”
36 BNI Development Partners Rp760 million disbursed* plus Rp900 million in community development
42 BNI development partners Rp3.3 billion disbursed* plus Rp498 million in community development
“The Legendary “Preserving our “Optimizing the Potential for Traditional Ancestors’ Culture” Sriwijaya Songket” Salted Fish” 365 BNI 101 BNI Development Development 60 BNI Development Partners Partners Partners Rp2.42 billion Rp1.6 billion Rp2.4 billion disbursed* plus disbursed* plus disbursed* plus Rp500 Rp480 million Rp247 million million in community in community in community development development development Kampoeng BNI IMOGIRI
Kampoeng BNI LASEM BATIK TULIS
Kampoeng BNI LAMONGAN FISHING GROUP
Kampoeng BNI PISANG LUMAJANG
Kampoeng BNI SASIRANGAN
Karangtengah Yogyakarta
Babagan Central Java
Lamongan East Java
Kandangtepus East Java
Sasirangan South Kalimantan
“Everything in One Village”
“Tracing Chinese History in the Lands of Lasem”
“Raising Fishermen’s Dignity”
“Panning for Gold with Kirana ‘Gold’ Bananas”
“Redefining Sublime Value Through Lengths of Cloth”
379 BNI development partners Rp5.2 billion disbursed* plus Rp547 million in community development
1101 BNI development partners Rp2.1 billion disbursed* plus Rp598 million in community development
567 BNI development partners Rp22.6 billion disbursed* plus Rp569 million in community development
88 BNI Development Partners Rp3.1 billion disbursed* plus Rp405 million in community development
23 BNI development partners Rp2.1 billion disbursed* plus Rp892 million in community development
* Soft Loan Partnership Program 2014 BNI Sustainability Report
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Srigethuk Gunungkidul in Jogjakarta, the Waterfall Ecotourism Village
2. BNI Ecotourism Village BNI sees Indonesia’s potential as a country rich in natural resources. Therefore, BNI is exploiting tourism potential in various regions of Indonesia by developing the concept of Ecotourism, so that local communities benefit economically from tourist arrivals while preserving natural resources in a sustainable manner, such as by maintaining culture and local wisdom. Through this program, BNI hopes that the village communities will preserve nature and maintain their local knowledge and traditions. [G4-DMA] [G4-EC7][G4-EC8] [G4-SO1]
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a. Raja Ampat Raja Ampat is a very popular tourist destination and has natural island beauty with beaches and an ocean that pamper tourists. The waters off the Raja Ampat islands are considered in the best 10 by divers around the world. Furthermore, Raja Ampat is recognized as having extremely diverse underwater flora and fauna. This made BNI interested in developing the tourism potential of the area. Working closely with the Faculty of Business Economics, Gadjah Mada University (UGM), BNI held a Field Work Experience - Community Service (KKN-PPM) in Manyaifun village, West Waigo Islands district. The theme was Empowerment of an Integrated Area Based on Local Wisdom by Strengthening Community Capacity in Manyaifun Village. [G4-EC7][G4-SO1] b. Komodo Island Komodo Island is one of Indonesia’s prides in tourism and is one of the New 7 Wonders of Nature in the world. In addition to the magic of the ancient komodo dragons, the area within the Komodo National Park (KNP) is well known for its natural beauty, which includes coral reefs, and a wealth of fish and marine life, causing the area to be designated a strategic area of tourism for Eastern Indonesia by the government. Nevertheless, the tourism potential has yet to have a direct impact on the economic condition of Komodo Island. This is because fishermen rely on fishing, which is uncertain, for their main income, the the people are unable to manage their finances, there is a lack of financial aid institutions to manage finances (savings and loans), the conditions in villages are cramped and rundown, so places like Labuan Bajo do not interest tourists. [G4-EC7][G4-EC8] [G4-SO1]
2014 BNI Sustainability Report
A compost training program organized by BNI at Iboih beach, Sabang city in Aceh
BNI then realized that the potential for ecotourism on Komodo Island needed to be optimized. Working closely with Our Komodo Foundation, BNI allocated Rp 7,077 million to turn Komodo Island into a tourist village with four major programs, namely tourism promotion, human resource development, social transformation, and government policy encouragement. This program is a follow up program that has been running for the past two years. BNI believes that a symbiotic, mutually beneficial relationship must be created between the Komodo Island people and the surrounding environment, especially the Komodo dragons, to achieve sustainability. The people need to be taught to maintain cleanliness that will attract tourists to visit Komodo Island. [G4EC7][G4-SO1]
c. Sabang In accordance with an appeal made by the Indonesian government, all parties, including companies, need to pay attention to Indonesia’s outer islands for community development programs and to help maintain the integrity of the Republic. The town of Sabang, located on Weh Island, has become a focus for the bank because it is the westernmost tip of Indonesia and has historical significance and nationalism for the homeland through the tagline “From Sabang To Merauke”.
Iboih beach is one of the prime tourist destinations of Sabang city and is visited by about 275,000 tourists and foreigners. BNI has helped to develop Iboih beach into a model of ecotourism that is free from litter by managing waste to make economically valuable products. The waste management system was created by sorting and processing waste. Marketable non-organic waste was collected and sold to scavengers or garbage collectors. Non-organic waste, especially plastic, is used or processed by a group of people into various kinds of saleable crafts. Meanwhile, organic waste is processed into compost. Ultimately, the garbage that cannot be processed and is not saleable is put in a dump truck to be transported by the City Health Department to the Sabang landfill.
Iboih beach has a unique diversity of underwater flora and fauna. In addition, the sea water there is clear blue, indicating that the public is very concerned with the environment. [G4-EC7][G4-EC8][G4-SO1]
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Through this program, BNI also provides assistance such as gateways in Sabang and at Iboih beach, trash cans, dump trucks, waste processing machinery, waste processing areas, and training (transfer of knowledge) to the local community. [G4-EC7][G4-EC8][G4-SO1]
d. Gunungkidul BNI also works closely with the Gunungkidul Government, Java Learning Center and village communities for the development of Sri Gethuk Waterfall and Goa Rancang Kencono ecotourism in Bleberan village, Playen district, Gunungkidul regency, Yogyakarta. This regional development covers revitalization and additional facilities, such as the construction of a gateway to Bleberan Tourism Village and Sri Gethuk Tourism Site, construction of trader kiosks, provision of a boats and lifejackets, gazebo procurement, training (employee capacity) and sustainable tourism management, as well as the procurement of trash cans. [G4-EC7][G4-EC8][G4-SO1]
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Sri Gethuk Waterfall is a stunning natural attraction in Gunungkidul. The village is on the rise with a number of teak forest spots, such that in the past two years Bleberan village has received many visits from tourists from different areas looking to enjoy Sri Gethuk Waterfall and Goa Rancang Kencono. In fact, the Sri Gethuk Waterfall was used for the filming of a Hollywood movie titled “Beyond Skyline” on December 15-16, 2014. The Bleberan waterfall is located on limestone (karst), which is usually common in water-deficient areas. However, with well-maintained teak forests, the water supply is maintained as a waterfall that flows throughout the year. Meanwhile, Goa Rancang Kencono is an ancient underground cave formed by geological processes millions of years ago, so it has educational value for students and the public at large.
2014 BNI Sustainability Report
Community Development Program
1. Natural Disaster Aid a. Flooding Floods in Jakarta and a number of provinces in Indonesia pushed BNI to deliver aid to disaster victims. Help was maximized by asking BNI employees from head office and the regions to donate goods needed by the disaster victims. Aid was given to flood victims in some areas of Jakarta, Tigaraksa, Ciledug, Banten, Bekasi, Subang, and to flash flood victims in Manado. Total aid reached about Rp 1 billion. [G4-EC7] [G4-SO1] b. Mount Kelud and Mount Sinabung Disaster BNI has been working with the Kediri local government to help ease the burden of the victims of the Mt. Kelud eruption in Kediri and the surrounding areas. Aid was distributed to evacuation posts, such as ready meals, masks, baby food and medicines. BNI helped further afield than Kediri and the surrounding area, reaching out to other areas affected by the Mount Kelud eruption, like Semarang, Solo and Yogyakarta, to distribute masks to residents. In addition, BNI also maximized banking services and ensured the safety of Automated Teller Machines (ATM) exposed to Mt. Kelud’s volcanic ash. [G4-EC7][G4-SO1] BNI also distributed social assistance to the victims of the Mount Sinabung eruption in North Sumatra. In this disaster, BNI disbursed aid to school students nationwide, opening 7,181 Cooperative Savings accounts for 3,839 elementary school students, 2,045 junior high school students, 309 students Vocational School students and 988 high school students. BNI’s total aid to victims of these two volcanic eruptions was Rp 1.3 billion. [G4-EC7] [G4-SO1] 2. Education BNI actively participated in setting up various facilities to help improve the quality of education in Indonesia. BNI helped prepare funds to buy a smart car worth Rp 510 million for the community in Raja Ampat, West Papua. [G4-EC7][G4-SO1] 3. Health Improvement BNI is very concerned with improving public health in Indonesia, especially in remote areas. This is manifested in the provision of health improvement assistance, such as ambulance boats worth Rp 4.5 billion for the Navy to expand health services to the residents of Indonesia’s outer islands. In addition, BNI also provided aid of Rp 331 million to support the Air Force in providing health services in Karangasem, Bali. [G4-EC7][G4-SO1]
2014 BNI Sustainability Report
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Services For Persons with Disabilities
84
Persons with disabilities, especially wheelchair users, can use the Automated Teller Machine (ATM) more easily in BNI with the opening of ATM facilities that meet their specific needs. As a first step, BNI provided a special ATM, which has been available since December 3, 2014, for persons with disabilities in the Fatmawati Main Branch Office. [G4-FS14] The Special Disability ATM has specifications that facilitate its users. First, the access road to the ATM Gallery has been prepared so wheelchairs can negotiate it. Secondly, the door to the ATM location is automatic. Third, the floor under the ATM is metal, so that it is not too slippery for wheelchairs. Fourth, the ATM has been designed to be lower than other ATMs. The provision of this Special ATM demonstrates BNI’s concern to further improve humanity, in particular by providing services to persons with disabilities. In the future, BNI will prepare special ATMs for people with disabilities in more locations, especially strategic locations such as shopping malls, airports and hospitals. In addition to these facilities, BNI also provided wheelchairs worth Rp 300 million for persons with disabilities in Jakarta in October 2014 through Community Development Program funds.
2014 BNI Sustainability Report
4. Public Facilities and Infrastructure Development BNI not only helps local communities and the surrounding environment, but also actively works alongside the Government to realize key development synergy. This has been demonstrated by BNI providing help to build public facilities and infrastructure in Ngawi, East Java, in the form of a gazebo to be installed in the Smart Park. Smart Park is an attraction for children to learn and play. By donating the gazebo, it will increase the comfort level for children playing and learning in the park. [G4-EC7][G4-SO1] realization of environmental development fund BNI 2014 Sector
Realization (Rp.)
Education and Training
18,531,531,613
Environmental Conservation
14,301,505,181
Health Improvement
5,607,869,332
Worship Facilities
11,127,854,000
Development of Infrastructure and Public Facilities
5.391.376.276
Poverty Alleviation
1.380.791.400
Victims of Natural Disasters
2.792.394.577
Total
59.133.322.379
In addition to the distribution of Rp 59.1 billion Community Development funds, BNI has also disbursed funds of Rp 56.9 billion for the Community Corporate Responsibility program during 2014.
realization of environmental development fund BNI 2014 5%
2% 9%
31%
Education and Training Environmental Conservation Health Improvement Worship Facilities 19%
Development of Infrastructure and Public Facilities Poverty Alleviation Victims of Natural Disasters
24%
2014 BNI Sustainability Report
9%
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Kampoeng BNI Regional Map Inaugurated in 2014 and Few of BNI Aid Program through Community Development Fund
TENUN PANDAI SIKEK BNI Partners: 36 Loan Disbursement: Rp760 million
SABANG ECOTOURISM
SASIRANGAN BNI Partners: 23 Loan Disbursement: Rp2.1 billion
Indonesia Mengajar Program mount Sinabung eruption
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Waste Bank in Bukit Tinggi BATIK TULIS WIRADESA BNI Partners: 42 Loan Disbursement: Rp3.3 billion
Southern Sumatra Weaving BNI Partners: 365 Loan Disbursement: Rp2.42 billion
mount kelud eruption
MUARA ANGKE FISHERIES
BNI Partners: 60 Loan Disbursement: Rp2.4 billion
MICRO HYDRO POWER PLANT BATIK TULIS LASEM BNI Partners: 101 Loan Disbursement: Rp2.1 billion
IMOGIRI BNI Partners: 379 Loan Disbursement: Rp5.2 billion
WATERFALL ECOTOURISM SRI GETHUK
Kampoeng BNI (Partnership Program Fund) BNI Aid (Community Development Fund)
2014 BNI Sustainability Report
ORGANIC AGRICULTURE
Floods in Manado
Sail Raja Ampat 2014
INTEGRATED AGRICULTURE Bike 2 Work Srikandi Indonesia RAJA AMPAT ECOTOURISM
LUMAJANG BANANA BNI Partners: 88 Loan Disbursement: Rp3.1 billion
Smart House
KOMODO ECOTOURISM
Sumbawa Forest Honey Udayana Forest and Garden Care
MICRO HYDRO AND BIOGAS Kamasan Art BNI Partners: 101 Loan Disbursement: Rp1.6 billion
Lamongan Fishermen BNI Partners: 567 Loan Disbursement: Rp22.6 billion
2014 BNI Sustainability Report
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BNI plays an active role in the Indonesian banking sector and the wider community to articulate the importance of conservation and sustainability for the sake of our future.
2014 BNI Sustainability Report
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Bni for the Environment
2014 BNI Sustainability Report
BNI employees actively participate in the Earth Hour campaign to support electricity and energy savings. The event was held at BNI Head Office in Jakarta in March 28, 2014.
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Managing BNI’s operational impact on the environment is one of the keys to becoming a responsible
organization. BNI has always believed that business growth will not run properly if not supported by a
positive environment. Therefore, BNI is committed to managing and minimizing the environmental impact
of operational activities so as to provide added value to stakeholders and the surrounding environment. In addition, BNI also encourages and motivates all its
customers, personnel, business partners or clients and the wider community to participate in environmental preservation.
2014 BNI Sustainability Report
Green Operation
Green Banking
Green Activity
BNI for Environment
Sustainable Banking To support the Green Banking program initiated by Bank Indonesia (BI) and the Environment Ministry, as well as Sustainable Finance Institutions initiated by the Financial Services Authority (OJK), BNI conducts a variety of strategies and initiatives to participate in environmental conservation programs, community empowerment and eco-friendly business. In implementing this policy, we use the PROPER (Environmental Management Performance Rating Program) results issued by the Forestry & Environment Ministry when considering lending to corporations. BNI no longer provides loans to corporations that are ranked red or black in PROPER. [G4-DMA][G4-FS8] 1. Sustainable Credit (Green Lending) To embody the principle of sustainability and the application of the triple bottom line, BNI implements green lending, i.e. prioritizing lending to environmentally friendly businesses. Green lending is disbursed, among others, to finance companies engaged in renewable energy, including companies that have one or more of the following characteristics: [G4-DMA][G4-FS8] • Conducting energy efficiency and conservation • Making efficient use of natural resources • Implementing initiatives to mitigate greenhouse gases (carbon emissions) • Applying sustainability principles in business operations • Using waste as fuel for environmentally friendly production
Total green lending disbursed by BNI throughout 2014 amounted to Rp 12.3 trillion, of which Rp 8.3 trillion was the maximum total credit for the commercial and corporate segments, while the remaining Rp 4.0 trillion was the remainder of credit program loans to small and medium enterprises (SMEs). Green lending encompasses the financing of projects such as energy efficiency, biogas, biomass, mini hydro, large hydro, sustainable palm oil and agriculture.
2014 BNI Sustainability Report
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A Biomass Power Plant powered by rice husks with a capacity of 25 KW. This facility was made possible through cooperation between BNI, USAID-ICED, IIEE and the Munduk village community in Buleleng, Bali
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2. Community Development [G4-DMA] BNI’s support for Indonesia’s economic growth is not only provided through lending or credit. Another scheme is through the Partnership and Community Development Program, which includes community empowerment through power plants driven by renewable energy. Postempowerment, this is expected to provide economic benefits because the community will be able to access cheaper, cleaner and sustainable energy. Power generation empowerment using PKBL funds is taking place in Sumba (micro hydro and biogas); Subang, Cianjur and Garut (micro-hydro); North Sumatra (biogas); Pasuruan (biogas). 3. Environmental and Social Risk Assessment in Lending As one of the largest banks in Indonesia, BNI has a strong commitment to carrying out environmentally friendly activities and financial services. BNI supports create policies and
Through Community Development funds, BNI has built a Biomass Power Plant with a 25 KW capacity located in Banjar Renewable Energy Development Pura Desa, Munduk village, Buleleng, through the construction of Bali. This facility was made possible Biomass-driven Power Plants through cooperation ranging from local [G4-DMA] villagers to international agencies such as USAID - ICED (United States Agency for International Development - Indonesian Clean Energy Development), Insight Invest, Indonesia Institute for Energy Economics (IIEE) Foundation, and the Wisnu Foundation. Total funding allocated amounted to Rp 500 million for the procurement of machinery and ancillary equipment. The power plant is fueled by rice husks, which are abundant in the area, with an operational requirement per hour of up to 30 kg of rice husks. The construction of this renewable energy power plant is expected to help local communities satisfy their electricity requirements, especially in remote areas that are difficult for the PLN grid to reach (off-grid area).
2014 BNI Sustainability Report
procedures with analysis and assessment of potential environmental and social risk in the portfolio of products that we market. Monitoring customer compliance with environmental and social regulations is done regularly. Each type of product has been screened and assessed through different procedures that have the same goal, namely to prevent and reduce negative impacts on the environment. BNI has also given responsibility to relevant units to carry out these procedures. [G4-DMA][G4-EN27]
BNI requires projects that it finances to have an EIA (Environmental Impact Assessment) document. In addition, assessment of credit worthiness is based not only on the aspect of profitability (cash flow) and the availability of guarantees (collateral), BNI also ensures program identification is undertaken by the debtor to anticipate the negative impacts of the company’s operations or projects. • Corporate and Medium Credit Segment Based on ISPO or RSPO Certification Indonesian Sustainable Palm Oil (ISPO) and the Roundtable on Sustainable Palm Oil (RSPO) status is awarded by an independent agency to companies engaged in the palm oil industry. Until 2014, a total of 9 companies held ISPO/ RSPO certification. [G4-EN27][G4-FS8] Customer ISPO/RSPO Certification Status ISPO RSPO
Number of Companies
ISPO certified
3
In ISPO certification process
5
RSPO certified
6
In RSPO Certification Process Total Loans Disbursed
BNI Holds Green Banking Services Seminar [G4-DMA] [G4-EN27]
3 Rp7.93 trillion
BNI is committed to implementing the Green Banking concept by strengthening risk management capabilities, especially related to a sustainable environment, and encouraging banks to increase their environmentally friendly financing portfolio. BNI worked with the Banking Environment Initiative (BEI) and the University of Cambridge to hold a seminar on Green Banking Services on Monday, September 15th, 2014, at the BNI Head Office. In this seminar, BNI invited its stakeholders, representing individual clients, corporate clients, business partners, employees and regulators, to participate, totaling more than 100 participants. The Green Banking Services seminar was organized with the aim of building common values with international banks that are members of the Indonesia Stock Exchange and the Indonesian banking industry, including the Financial Services Authority (FSA), in relation to environment-based banking services (green banking services). In addition, the seminar explored the potential role of banking regulations related to environmental issues, such as food security and the availability of clean energy. The seminar was presented by Jeremy Wilson, Vice Chairman, Barclays Corporate Banking, Barclays Bank PLC, who is also the Chairman of the IDX Working Group; Edi Setijawan, Deputy Director of the FSA Department of Research and Banking Regulations; Laksmi Prasvita, Executive Director Partnership for Indonesia’s Sustainable Agriculture (PISAgro), and Andrew Voysey, Director, Finance Sector Platforms at the University of Cambridge Institute for Sustainability Leadership.
2014 BNI Sustainability Report
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Green Operations BNI imposes green operations, or environmental conservation initiatives, not only on its external activities but also in its operational environment. BNI’s strategic policies to strive to preserve the environment continued to be refined in 2014, covering the efficient use of electricity, water recycling for office consumption, waste management, and efficient use of paper. [G4-DMA] 1. Electrical Energy Consumption In 2014, electricity and water consumption in BNI’s Head Office reached 17,924,520 kWh and 152,489 m3. This amount included energy used by office tenants. All BNI’s electricity is supplied by the state electricity company, PLN. [G4-EN3]
BNI’s electricity consumption fell by 1.12% from the previous year, while water consumption decreased by 4.76% compared to 2013.
2. Earth Hour In support of the Earth Hour campaign, BNI has created activation programs by making origami from waste paper and running an energy saving program by turning off all lights and electrical appliances that are not needed in all branches across Indonesia. Since participating in Earth Hour in 2011, BNI has managed to save 33,983 KWh electricity. [G4-EN6] 94
3. Vehicle Operations Maintenance of operational vehicles has also become a commitment for BNI to reduce environmental damage. Exhaust gases from vehicles have the potential to pollute the air and include greenhouse gases. Maintenance of operational vehicles and exhaust emissions testing is performed periodically so emissions from transportation can be minimized. In addition, BNI regularly replaces operational vehicles and is gradually increasing the number of fuel-efficient vehicles with a relatively small cylinder volume (cubic centimeters). [G4-EN6] 4. Waste Management BNI continues to reduce damage to the environment by disposing of waste to landfills after applying a policy of reduce, reuse and recycle (R3). BNI sends its plastic and paper waste to a third party for recycling. Meanwhile, hazardous waste, such as lubricating oil from the generators, is handled with the implementation of procedures that require great caution. BNI has always tried to ensure resources that manage the collection and storage of used oil in a safe place before being handed over to a third party authorized by the Environment Ministry. 5. Paper Use Paper is an important material for banking. However, we should be aware that every 15 reams of A4 size paper require a 5-year-old tree to be cut down. This means, more and more forests in Indonesia will be cut down to make paper. For this reason, BNI works to protect forests by reducing the use of paper. Some of the steps we have taken include: [G4-EN27]
2014 BNI Sustainability Report
Encouraging the use of technology to replace traditional banking services with modern paperless service. BNI also continues to improve Internet service, mobile banking and e-billing to reduce paper usage • Educating customers to access accounts online • Reviewing form and report designs in an effort to further streamline the use of paper • Using BNI Forum online media for paperless internal communication and publications in the Head Office, Regional and Branch offices. •
Green Activity Continuing environmental development programs from previous years, in 2014, the bank took part in environment-based activities through active participation and promotion efforts to minimize environmental damage. Various activities were undertaken to preserve the environment while increasing public awareness of the importance of nature conservation. BNI realizes that green activities are necessary to balance economic growth with nature and the environment, in accordance with a principle of BNI’s Triple Bottom Line business. 1. Planting Trees As a pioneer of sustainable banking in Indonesia, BNI strongly supports any efforts to reduce carbon emissions, develop a healthy lifestyle, be environmentally friendly and support the government program “One Billion Indonesian Trees” (OBIT). This has been manifested in the planting of 100,000 saplings in Jakarta and 5,000 saplings at Kualanamu airport in North Sumatra. In addition to these two areas, BNI also actively distributed and planted trees in a number of areas, such as Banda Aceh City Forest, Trembesi Banda Aceh City Park, Manahan Solo City Forest, Wonosari-Yogyakarta City Park, the slopes of Gunung Sumbing, and Udayana-Bali Forests and Parks. Tree seedlings were grown at BNI’s Plant Nursery in collaboration with Paguyuban Budiasi. Sapling donations consisted of wood, fruit and rare plant seeds. These plants included Sengon, Jabon, Trembesi, Rasamala, African Mahogany, Manglit, Gaharu, Puspa, Almond, Jacaranda, Ebony, Cinnamon, Rambutan, Jambu Air, Klengkeng, Soursop, Durian, Kasiamea, Matoa and others. In 2014, BNI’s Plant Nursery produced 1.5 million perennials and 10,000 rare plants. The concrete benefits of this program began to be felt by absorbing as much as 20,513 million tons of carbon, equivalent to Rp 15,390 billion. [G4-fs8] BNI’s tree seedlings were distributed to the public for free not just for planting but also to be cared for. Communities receiving BNI saplings signed an agreement to periodically care for the trees and to report to BNI’s nursery - Paguyuban Budiasi, by email. Thus BNI - Paguyuban Budiasi can monitor the condition of saplings planted and cared for by communities. In general, approximately 90% of trees planted by the public have the chance of surviving.
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2. Tour de Singkarak BNI again participated in one of the leading national cycling competitions, the Tour de Singkarak 2014 (TDS 2014). As in previous TDS, BNI used the event to campaign about greening the Earth by planting 2,000 mangroves and 2,000 sea pine, as well as releasing 145 turtle hatchlings into their natural habitat at Pantai Tiram, Padang Pariaman. Mangrove and sea pine planting is one of BNI’s efforts to support government programs, namely reducing greenhouse gas emissions by between 26% and 41%, as well as supporting the OBIT program. [G4-EN13] 3. City Forests BNI has a City Forest program that is built through collaboration between BNI and local partners and municipalities. The City Forest program is a manifestation of public-private partnership involving the participation and empowerment of local communities. City Forests and City Parks have been built by BNI in Aceh, Jakarta, Solo, Bali, Wonosari, while other cities are in the preparation process. [G4-EN13]
96
4. Solar PV Training (PLTS) Over the last 2 years, BNI has cooperated with USAID-ICED institution (Indonesia Clean Energy Development) to conduct capacity building and the provision of a second opinion in the field of risk analysis (technical, environmental, financial and legal) for renewable energy projects (solar, mini-hydro, biogas, biomass) from BNI’s prospective and existing borrowers. Solar power generation (often also called Solar Photo Voltaic Generation/Solar PV) is still not optimally used and not absorbed by the industry, including financing by banks. BNI conducted internal capacity building in April 2014 on the development of Solar PV energy. This training discussed Solar PV Project Analysis in financial modeling, project development and EPC project management. [G4-DMA][G4-EN27]
ACHIEVEMENTS IN EFFORTS TO REDUCE OPERATIONAL ENVIRONMENT FOOTPRINT BNI
2011
2012
2013
2014
17,775,180
17,987,880
18,126,669
17,924,520
Water volume taken from PDAM (m3)
161,754
161,982
154,662
149,554
Water volume taken from Wells (m3)
2,354
974
5,456
2,935
Electricity (kWh) Energy Usage Electricity and Water
Transaction E-Banking Nominal Transaction
2011
2012
2013
2014
ATM (Rp billion)
226,327
286,679
354,047
423,995
Internet Banking
17,292
25,204
37,686
52,980
3,835
6,815
17,705
18,788
755
713
826
755
SMS Banking Phone Banking
2014 BNI Sustainability Report
E-billing Number of Accounts Number of Rims Number of Trees Equivalent
Paper Reduction Through BNI Paperless Forum [G4-EN1]
greening
2012
2013
2014
83,632
145,421
307,834
399,527
234
407
862
1,119
15.61
27.15
57.46
74.58
Year
Number of Sheets
2011
13,708,200
7,882,215,000
1,828
2012
17,522,175
10,075,250,625
2,336
2013
14,862,470
8,545,920,250
1,982
2014
19,184,000
11,030,800,000
2,558
Initiative Area
Environmentally friendly Banking Operation Initiatives [G4-EN1]
2011
Cost Efficiency (Rp)
2012
Trees Efficiency
2013
2014
97
Credit Card Saving 2.2 million Bills in Envelopes equivalent One envelope to Rp 6.2 Billion
Saving 1.9 million Envelopes equivalent to Rp 6.1 billion
Saving of 1.5 million Envelopes equivalent to Rp4.8 billion
e-billing services
Taken up by 307,834 accounts (saving equivalent to Rp 8.6 billion)
Taken up by 399,527 accounts (saving equivalent to Rp15.6 billion)
Taken up by 145,421 accounts (saving equivalent to Rp 5.5 billion)
Number of Trees Planted (x1000)
Passbook Usage (Ton) [G4-EN1]
2014 BNI Sustainability Report
2011
2012
2013
2014
1,010
1,298
2,513
1,744
2011
2012
2013
2014
68.7
81.9
123.1
89.4
Statement GRI G4 Core in Accordance Check
Statement GRI G4 Core In Accordance Check
98
The National Center for Sustainability Reporting (NCSR) has conducted a GRI G4 Core in Accordance Check on the PT BNI (Persero) Tbk Sustainability Report 2014 (“Report”). The check communicates the extent to which the GRI G4 Core criteria has been applied in the Report. The check does not provide an opinion on the sustainability performance of the reporter or the quality of the information provided in the report. We conclude that this Report has presented disclosures, either fully or partially, in accordance with GRI G4 Core criteria. National Center for Sustainability Reporting
Elmar Bouma Director
2014 BNI Sustainability Report
GRI G4 Content Index for “in Accordance” - Core [G4-32] Material Aspects
Index
Remarks
Page
General Standard Disclosure Strategi dan Analisis
G4-1
Statement from the Board of Commissioner and Board of Director
Organizational Profile
G4-3
Name of the organization
6, 9
G4-4
Primary brands, products, and services
6, 9
G4-5
Location of the organization’s headquarters
9
G4-6
Location of the organization’s operations
8
G4-7
Nature of ownership and legal form
G4-8
Markets served
6
G4-9
Scale of the organization
8
G4-10
Profile of the employees
66
G4-11
Collective bargaining agreements
73
G4-12
The organization’s supply chain
53
G4-13
Significant changes during the reporting period
G4-14
Precautionary approach or principle addressed
37
G4-15
Externally developed economic, environmental and social charters, principles, or other initiatives
39
G4-16
List memberships of associations
39
The entities included in the organization’s consolidated financial statements
12
Material Aspect G4-17 Identification and Boundary
Stakeholder Engagement
16-23
6,7,9
6,56
G4-18
Process for defining the report content and the Aspect Boundaries
G4-19
List all the material Aspects identified
G4-20
Aspect Boundary within the organization
12,13,14
G4-21
Aspect Boundary outside the organization
12,13,14
G4-22
Effect of any restatements of information provided in previous reports
13
G4-23
Significant changes from previous reporting periods in the Scope and Aspect Boundaries.
13
G4-24
List of stakeholder groups engaged by the organization.
27
G4-25
Basis for identification and selection of stakeholders
27
G4-26
The organization’s approach to stakeholder engagement
27
G4-27
Key topics and concerns that have been raised through stakeholder engagement
27
2014 BNI Sustainability Report
13,14,30 13, 14,30,31
99
Material Aspects Report Profile
Index
Remarks
Page
G4-28
Reporting period
12
G4-29
Date of most recent previous report (if any).
12
G4-30
Reporting cycle
12
G4-31
Contact point for questions regarding the report or its contents.
15
G4-32
GRI Content Index and cross reference to External Assurance report
G4-33
External Assurance
Governance
G4-34
Governance structure of the organization, including committees of the highest governance body
34,35,36
Ethics and Integrity
G4-56
The organization’s values, principles, standards and norms of behavior
6, 7, 37,38 39, 65
G4-DMA
Disclosure Management Approach (DMA) for Economic Performance
47
G4-EC1
Direct economic value generated and distributed
47
G4-EC3
Coverage of the organization’s defined benefit plan obligations
71
G4-DMA
Disclosure Management Approach (DMA) for Market Presence
47
G4-EC5
Ratios of standard entry level wage compared to local minimum wage
71
99-102 12,15
ECONOMIC Economic Performance
Market Presence
100
Indirect Economic G4-DMA Impacts
Disclosure Management Approach (DMA) for Indirect Economic Impacts
47, 48, 49, 76, 77, 80
G4-EC7
Development and impact of infrastructure investments and services supported
76, 77, 80, 81, 82, 83, 85
G4-EC8
Indirect economic impacts
G4-DMA
Disclosure Management Approach (DMA) for Materials
94
G4-EN1
Materials used by weight or volume
97
G4-DMA
Pengungkapan Pendekatan Manajemen untuk Energi yang digunakan
94
G4-EN3
Energy consumption within the organization
94
G4-EN6
Reduction of energy consumption
94
G4-DMA
Pengungkapan Pendekatan Manajemen untuk Product & Services
G4-EN27
Extent of impact mitigation of environmental impacts of products and services
47, 48, 49, 76, 77, 80, 81, 82
ENVIRONMENTAL Material
Energy
Products and Services
52-53 93,94,96
2014 BNI Sustainability Report
Material Aspects
Index
Remarks
Page
LABOR PRACTICES AND DECENT WORK Employment
G4-DMA
Disclosure Management Approach (DMA) for Employment
66
G4-LA1
New employee hires and employee turnover
66,67,68
G4-LA2
Benefits provided to full-time employees that are not provided to temporary or part-time employees
71
Disclosure Management Approach (DMA) for Occupational Health and Safety
70
G4-LA8
Health and safety topics covered in formal agreements with trade unions
70
G4-DMA
Disclosure Management Approach (DMA) for Training and Education
70
G4-LA9
Average hours of training per year per employee
G4-LA11
Employees performance and career development reviews
69
G4-DMA
Disclosure Management Approach (DMA) for Supplier Assessment for Labor Practices
41
G4-LA14
Percentage of new suppliers that were screened using labor practices criteria
41
Occupational G4-DMA Health and Safety
Training and Education
Supplier Assessment for Labor Practices
69,70
HUMAN RIGHTS Discrimination
Supplier Human Rights Assessment
101 G4-DMA
Disclosure Management Approach (DMA) for Discrimination
65
G4-HR3
Total number of incidents of discrimination and corrective actions taken
65
G4-DMA
Disclosure Management Approach (DMA) for Supplier Human Rights Assessment
41
G4-HR10
Percentage of new suppliers that were screened using human rights criteria
41
PRODUCT RESPONSIBILITY Product and Service Labeling
G4-PR5
Results of surveys measuring customer satisfaction
58, 59, 60
Customer Privacy G4-PR8
Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data
38
Compliance
Monetary value of significant fines for noncompliance with laws and regulations concerning the provision and use of products and services
38
G4-PR9
2014 BNI Sustainability Report
Material Aspects
Index
Remarks
Page
SOCIETY Local Communities
Anti-corruption
G4-DMA
Disclosure Management Approach (DMA) for Local Communities
76
G4-SO1
Percentage of operations with implemented local community engagement, impact assessments
G4-DMA
Disclosure Management Approach (DMA) for Anticorruption
39
G4-SO3
Total number and percentage of operations assessed for risks related to corruption and the significant risks identified
39
G4-SO4
Communication and training on anti-corruption policies
39, 66
G4-SO5
Confirmed incidents of corruption and actions taken
76, 77, 80, 81, 82, 83, 85
72
FINANCIAL SERVICES SECTOR SPECIFIC INDICATOR Product Portfolio G4-DMA
102
Policies With Specific Environmental And Social
53
G4-FS2
Procedures For Assessing And Screening Environmental And Social Risks
53,54
G4-FS3
Processes For Monitoring Clients’ Implementation Of And Compliance With Environmental And Social Requirements
53,54
G4-FS6
Percentage Of The Portfolio
53,54,55
G4-FS7
Products and services designed to deliver a specific social benefit
53,54,55
G4-DMA
Pengungkapan Pendekatan Manajemen untuk Produk dan jasa khusus untuk lingkungan
G4-FS8
Products and services designed to deliver a special environmental benefit
91 91, 93, 95
Customer Privacy G4-DMA
Disclosure Management Approach (DMA) for Customer Privacy
56
Local Communities
G4-FS13
Access Points In Low-Populated Or Economically Disadvantaged Areas
56
G4-FS14
Initiatives To Improve Access To Financial Services
55,56,84
G4-DMA
Policies For The Fair Design And Sale Of Financial Products And Services
57
G4-FS16
Initiatives To Enhance Financial Literacy By Type Of Beneficiary
57
Product Responsibility
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103
This report was published in February 2015 2014 BNI Sustainability Report
Printed on FSC certified paper
2014
Sustainability Report
104
PT Bank Negara Indonesia (Persero) Tbk BNI Building Jl. Jend. Sudirman Kav. 1 Jakarta 10220, Indonesia Tel. : (62-21) 2511946, 572 8387 Fax. : (62-21) 572 8805 www.bni.co.id
2014 BNI Sustainability Report
