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CIMB Niaga: Annual Report 2017

IM Insights
By IM Insights
5 years ago
CIMB Niaga: Annual Report 2017

Fatwa, Halal, Islam, Islamic banking, Mal, Murabahah, Salah, Shariah, Sukuk, Ulema, Zakat, Credit Risk, Daya, Masih, Net Assets, Participation, Provision, Receivables, Reserves, Sales

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  1. Annual Report 2017 Step Forward , Dream Bigger
  2. APPROACH METHOD AND ABOUT THE ANNUAL REPORT The formulation of CIMB Niaga Bank Annual Report 2017 adheres to the applicable conditions regarding the delivery of transparent information that has to be included in an annual report in several chapters as follows : Performance Highlights Presents financial information in comparison over 5 fiscal years. Management Reports Presents information regarding supervision and implementation of strategic policies, achievement of fiscal years and implementation of corporate governance from a management point of view. Company Profile Presents general information about CIMB Niaga, milestones, vision and mission, as well as other related information. Management Discussion and Analysis Presents analysis of CIMB Niaga’s performance in all fiscal years that include macro-economy and banking reviews, achievement in each business segment, analysis of financial performance, and information regarding material transactions. Risk Management Presents general information regarding risk management system, types of risks and their management, as well as a review of CIMB Niaga’s effectiveness in risk management. Business Support Review Presents information regarding CIMB Niaga’s business performance support functions which cover human resources, information technology, and marketing strategies. Corporate Governance Report Presents complete and detailed information regarding implementation of corporate governance by CIMB Niaga pursuant to applicable regulations and standards. Corporate Social Responsibility Presents the program policy and implementation of corporate social activities which cover environment, labour, health, work safety, community social development, and responsibility towards customers. NEGATION OF AND LIMITATION OF RESPONSIBILITY This Annual Report contains operational, financial, projection statements and plans as well as policies and strategy implementations along with CIMB Niaga’s objectives – all categorized as forwardlooking statements in adhering to applicable laws and regulations; save for all matters of an historical in nature. These statements carry prospects of risk and uncertainty which could account for actual developments may materially differ from what is stated. These forward looking statements are designed with the basis of assumptions regarding most current business situations and conditions where the Company conducts its business operations. CIMB Niaga does not guarantee that these vetted documents will provide certain outcomes as expected.
  3. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Step Forward , Dream Bigger The theme “Step Forward, Dream Bigger” represents our commitment at CIMB Niaga in delivering our brand promise, “FORWARD”, as a bank that moves forward, that continues to empower customers to achieve their dreams, goals and aspirations. As a customer-centric bank, CIMB Niaga continues to cater the ever-changing needs of the customer through initiatives in product development, services, events and brand activation, including the ‘Kejar Mimpi’ social movement. With the spirit of ‘Kejar Mimpi’, CIMB Niaga strives to invoke an emotional approach with customers, connecting with them across different life stages in order to better understand their dreams. This will enable CIMB Niaga to develop banking solutions that are uniquely tailored to the wide variety of customer needs. Hence, CIMB Niaga ensures continuous progress towards its vision of becoming the leading ASEAN bank. Annual Report CIMB NIAGA 2017 1
  4. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Table of Contents 8-45 Key Highlights 46-71 Management Reports Approach Method and About the Annual Report Negation and Limitation of Responsibility 1 Theme Description 2 Table of Contents 6 Theme Continuity for the Last 5 Years 8 Key Highlights 2017 10 Operations Highlights 12 Digital Platform 2017 14Initiatives 18 Key Financial Performance 2017 20 Financial Highlights 48 Report of the Board of Commissioners 56 Report of the Board of Directors 68 Report of the Sharia Supervisory Board 22 Share Highlights 25 Corporate Action 26 Bonds Highlights 30 Event Highlights 40 Awards and Certification 70 Statement of the Board of Commissioners and Board of Directors Regarding Responsibility for the 2017 Annual Report PT Bank CIMB Niaga  Tbk 72-121 Company Profile 76 General Company Information 78 CIMB Niaga at A Glance 82Milestones 84 Organization Structure 87 Vision and Mission 88 Corporate Culture 89 Core Values 90 Company’s Identity 91 Products and Services 94 Corporate Group Structure 95 CIMB Group Profile 96 97 98 100 105 111 112 113 2 (Parent Company) Profile CIMB Niaga Auto Finance (Subsidiary) Subsidiary and Joint Ventures Area of Operations or Network Scheme Board of Commissioners Profiles Board of Directors Profiles Sharia Supervisory Board’s Profiles Information on Management Changes After the End of the Fiscal Year Employees & Competency Development Statistics 115 Shareholder Composition 117 Number of Shareholders 117 118 119 120 120 121 121 121 121 & Percentages Based on Classification Development of Capital Structure and Number of Outstanding Shares in the Last Five Years History of Shares Issued and Listing Chronology of Other Securities Listings List of Business Partnerships Capital Market Supporting Institutions and Professionals Periodic Services of Capital Market Supporting Institutions & Professionals in 2017 Data Access and Corporate Information Information on the Company Website Education and Training for the Board of Commissioners, Board of Directors, Committees, Corporate Secretary and Internal Audit Annual Report CIMB NIAGA 2017
  5. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report 122-337 Management Discussion and Analysis 126 Macro Analysis And 213 Realization of Proceeds 130 214 Material Information on 174 201 203 206 Annual Report CIMB NIAGA 2017 Banking Industry Business Segment Review 130 Corporate Banking 134 Treasury and Capital Market 138 Transaction Banking 144 Commercial Banking 148 MSME Banking 154 Consumer Banking 166 Sharia Banking Financial Performance Review 175Overview 177 Statements of Financial Position 177Assets 184Liabilities 188Equity 189 Statements of Profit and Loss and Other Comprehensive Income 197 Statements of Cash Flow 198 Financial Ratios 200 Commitments and Contingencies 200 Subsidiary Performance Prime Lending Rate Electronic Network Transactions Other Material Financial Information 206Solvability 208 Collectibility of Loans 209 Capital Structure 210 Investment Property 210 Material Commitments for Capital Expenditure 210 Capital Expenditure 2017 211 Comparison of Target and Realization 2017 211 Projection 2018 211 Material Information and Facts Subsequent to Reporting Date 212 Significant Changes in the Bank and the Group in 2017 212 Information on Dividend Distribution 212 Employee and /or Management Share Ownership from Public Offering Investment, Expansion, Divestment, Acquisition, and Debt/Capital Restructuring 214 Information Containing Material Transactions with Conflict of Interests and/or Transactions with Affiliated Parties 214 Spot and Derivative Transactions and Hedging Facilities 215 Significant Agreements 217 Other Important Transactions in Significant Amounts 217 Financial Information That Has Been Reported and Contains Extraordinary and Rare Events 217 Adoption of Foreign Account Tax Compliance Act (FATCA) & Common Reporting Standard (CRS) 218 Regulatory Changes with Significant Impacts on the Bank and the Impact on Financial Statements 221 Changes in Accounting Standards 224 Taxpayer Compliance 224 Business Continuity Information 226 Business Prospect 2018 230 Marketing 234 Risk Management 234 Risk Management Focus in 2017 236 Risk Management Implementation 237 Governance & Organization 238 Risk Appetite 239 Risk Management Process 240 Risk Management Infrastructure 242 Risk Culture 243 Three Lines of Defense 243 Anti Fraud Management 3
  6. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management TABLE OF CONTENTS 122-337 Management Discussion and Analysis 245 ICAAP (Internal Capital Adequacy Assessment Process) 247 Sharia (UUS) Risk Management 248 Bank and Consolidated Risk Profile 248 Integrated Risk Management 249 Implementation of Basel II and Basel III 250 Basel II Pillar 3: Capital Disclosure, Risk Exposure and Risk Management 338-369 Supporting Business Review 342 Human Resources 360 Operations and Information Technology 370-573 Corporate Governance Report 374 Corporate Governance 460 Information on Major 375 461 Affiliations Between the Boards 376 376 376 378 379 381 383 396 414 416 427 430 434 436 444 4 Implementation Objectives of the Implementation of Corporate Governance Guidelines and Policies of Corporate Governance Basic Policy of Corporate Governance Corporate Governance Principles Corporate Governance Roadmap CIMB Niaga Governance Focus in 2017 Corporate Governance Structure General Meeting of Shareholders Board of Commissioners Independent Commissioners Board of Directors Policy on the Diversity Composition of the Board of Commissioners and the Board of Directors Corporate Governance SelfAssessment Results in 2017 Performance Assessment of the Boards of Commissioners and Directors Remuneration Policy Policy, Frequency, and Attendance Rates of the Board of Commissioners Meetings, the Board of Directors Meetings, and Joint Meetings of the Board of Commissioners with the Board of Directors Shareholders and Controllers 462 485 496 501 505 510 514 515 515 516 516 517 517 518 518 518 519 521 523 of Commissioners and Directors, and the Controlling Shareholders Board of Commissioners’ Committees Board of Directors Committees Corporate Secretary Compliance Management Internal Audit Unit (IAU) Anti-Money Laundering and Countering the Financing of Terrorism Program (AML and CFT) Public Accountant/External Auditor Transparency of the Banks Financial and Non-Financial Condition CIMB Niaga’s Shares and Bonds Buyback Dividend Policy Funds for Social and Political Activities Provision of Funds to Related Parties Customer Protection Policy Anti Corruption Policy Protection of Creditors’ Rights Submission of the 2017 Sustainability Report Risk Management Internal Control System Legal Issues/Litigation of the Bank and its Subsidiaries Annual Report CIMB NIAGA 2017
  7. Supporting Business Review Corporate Governance Report Corporate Social Responsibility 527 Access to Corporate 531 532 533 534 534 535 536 538 574-609 Corporate Social Responsibility Others Corporate Data Information and Data Employee Code of Conduct & Ethics Disciplinary Policy and Determination of Sanctions for Violations Corporate Culture Goods and Services Procurement Policy Conflict Management Policy (Including Insider Trading) Internal Fraud Whistleblowing System Implementation of Corporate Governance Guidelines for Public Companies Consolidated Financial Report 543 ASEAN Corporate Governance Scorecards Index 552 Integrated Governance Implementation Report 565 Corporate Governance Report of Sharia Business Unit 573 Bad Corporate Governance Practices 573 Statement on Implementation of Good Corporate Governance Principles 573 Statement on the Effectiveness of Internal Control System and Risk Management 578Opening 583 Corporate Social Responsibility in The Environment 588 Corporate Social Responsibility in Labor, Health, and Safety 592 Corporate Social Responsibility in Social and Community Development 606 Corporate Social Responsibility for Costumers 610-646 Others Corporate Data 646-922 Consolidated Financial Report 614 Senior Executives Profiles 627 Office Network Addresses 646 Consolidated Financial Report 923-948 Reference and Index Rules/Criteria Annual Report CIMB NIAGA 2017 923 Reference SEOJK No. 30-SEOJK.04-2016: Annual Report of Public Company 932 Reference SEOJK No. 43-SEOJK.03-2016: Annual Report of Conventional Commercial Bank 938 Annual Report Award Criteria 2017 5
  8. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Theme Continuity for the Last 5 Years 2013 Throughout 2013 , CIMB Niaga continued its strategy to become a leading digital Bank. To achieve this goal, CIMB Niaga optimized the utilization of the latest technology in support of business growth and launched digital initiatives toward branchless banking. 6 2014 CIMB Niaga continued to provide added value for all stakeholders through a range of innovative banking products and services built around the philosophy of ‘Innovation from the Heart’. 2015 CIMB Niaga serves the country by contributing to national economic and banking development. It has been 60 years along a journey and the Bank will continue forward with its upstanding values, extending services from the heart to customers throughout the archipelago. Annual Report CIMB NIAGA 2017
  9. Supporting Business Review Corporate Governance Report 2016 Corporate Social Responsibility Others Corporate Data Consolidated Financial Report 2017 CIMB Niaga Brand Promise of ‘Innovations from the Heart’ followed by the new brand promise ‘FORWARD’ is our commitment to provide the best banking solutions that enable customers to fulfill their ambitions, goals and dreams at each stage of their lives. Continue to deliver the values of our brand promise “FORWARD”, through the spirit of ‘Kejar Mimpi’ as a manifestation of CIMB Niaga’s commitment to support the dreams of each respective segment of customers through our banking products and services. Annual Report CIMB NIAGA 2017 7
  10. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Key Highlights 2017 Net Interest Income In trillion Rupiah 12 .09 12.40 16 17 FIR (Fee Income Ratio) (%) 18.91 21.28 Operating Income BUSINESS AS USUAL (BAU) 2.6% CIR (Cost to Income Ratio) (%) 49.40 16 17 237bps Provision Expenses In trillion Rupiah 47.74 4.97 Operating Expenses 4.08 16 17 166bps Profit Before Tax In trillion Rupiah 16 17 18.0% Net Profit In trillion Rupiah 4.16 2.98 2.58 1.88 Net Profit 16 17 61.4% 16 17 58.8% BAU: Business As Usual Excluding income or expense that occurs once and does not recur. 2016: Income earned from strategic alliance amounting Rp276 billion. 8 Annual Report CIMB NIAGA 2017
  11. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report GCG BUKU 4 Achieved the status of BUKU 4 Bank , or a bank with minimum core capital of Rp30 trillion, CIMB Niaga has strengthened its position as a solid, secure and trustworthy financial institution Appointed Deloitte Indonesia as independent party to manage CIMB Niaga’s Whistleblowing system CAR 18.6% 4,500 4,500 3,865 ATMs 2,956 CAR consistently increases every year and hit 18.6% in 2017 52.6% CASA increased by 8.4% yoy with improved CASA ratio by 171bps to 52.6% Annual Report CIMB NIAGA 2017 Consistently increases the number of ATMs to 4,500 ATMs across Indonesia with 16.4% yoy growth by the end of 2017 ARA The Best Private Finance Listed category in Annual Report Award (ARA) 2016 13 3,272 3,365 14 15 16 17 IICD “The Best Overall” from Indonesian Institute Corporate Directorship (IICD) 9
  12. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Operations Highlights Sharia Banking By end of 2017 , CIMB Niaga Sharia recorded Rp16.69 trillion of financing, or an increase of 63.6% yoy, with NPF (Non Performing Financing) at 0.91% and customer deposits of Rp19.91 trillion, a significant increase of 87.3%. Financing of Sharia Banking Rp 16.69 trillion Corporate Banking Corporate Banking recorded a growth of 7.7% in financing disbursement in 2017, with total portfolio Rp69.60 trillion, of which 53% was for working capital and 47% for investment. Corporate Banking Portfolio Rp 69.60 trillion Commercial Banking Commercial Banking’s loans increased by Rp2.06 trillion or 6.9% yoy from Rp29.85 trillion in the previous year to Rp31.91 trillion in 2017. As a result Commercial Banking’s loan contribution to total loans increased to 17.2% in 2017 compared to 2016 16.4%. Commercial Banking Portfolio Rp 31.91 trillion SME Banking In 2017, SME Banking managed to record a growth of 10.7% on loan distribution, meanwhile customer deposits rose 13.0% compared to last year. 10 SME Banking growth 10.7% Annual Report CIMB NIAGA 2017
  13. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Consumer Banking Mortgage In 2017 , CIMB Niaga recorded a 12.0% growth in its mortgage portfolio, amounting to Rp27.00 trillion, compared to Rp24.11 trillion in 2016. Our mortgage portfolio grew faster than industry. Mortgage Loans Rp 27 trillion Credit Cards By the end of 2017, CIMB Niaga had issued 2.44 million credit cards, increasing 7.8% yoy. This represents 14.1% of credit card market share, a significant increase of 115bps compared to last year. CIMB Niaga was awarded as Best Credit Card Product of the Year for its product CIMB Niaga Platinum Credit Card on the event of Indonesia Country Awards Program 2017 for Retail Financial Services, organized by The Asian Banker. CIMB Niaga has achieved this award for three consecutive years. Wealth Management and Bancassurance In 2017, CIMB Niaga successfully increased Mutual Fund subscriptions by 108.5% compared to the previous year, with Market Link Deposit (MLD) growing by 37.5% compared to 2016. Total Credit Cards 2.44 million Mutual Funds Sales 108.5% Treasury and Capital Market In 2017, Treasury and Capital Market managed a fixed income portfolio of Rp32.9 trillion, an increase of 34.8% yoy compared to Rp24.4 trillion as of year-end 2016. Annual Report CIMB NIAGA 2017 Treasury and Capital Market Portfolio Rp 32.9 trillion 11
  14. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Digital Platform 2017 GO MOBILE Customer Growth 32 % 12 Annual Report CIMB NIAGA 2017
  15. Supporting Business Review Corporate Governance Report Rekening Ponsel Customer Growth 42 % Corporate Social Responsibility Others Corporate Data Consolidated Financial Report CIMB Clicks Customer Growth 21% Digital Lounge Annual Report CIMB NIAGA 2017 13
  16. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Initiatives INDIE ACCOUNT CIMB Niaga launched Indie Account , a savings product dedicated to the teenagers, during the Labsproject 2017 student art performances at Labschool Jakarta High School on May 13, 2017. Attending the event were teenager students of the high school, a perfect audience to introduce a savings account specially designed for teens aged 12-17, complete with product features that cater to the young. Indie Account is a savings account product for teens that are not old enough to have a KTP identification card. The product provides the account holder with the freedom to express his or her unique self in a responsible manner through a variety of features suited to the needs and lifestyle of today’s teenagers. With an Indie Account, teenagers are free to make a transaction anywhere and anytime, with no transaction fee, using the Go Mobile and CIMB Clicks platforms, and the added benefit of free monthly 1 14 GB internet quota. The Indie Account debit card can be used to make transactions at any ATM network, without charges, as well as to make online purchases at various e-commerce platforms. The freedom of expression for teenagers is also proven in the design of the sticker of the debit card, giving the account holder a choice among more than 10 different designs, soon to be expanded to 100 designs. The chosen sticker can be replaced at anytime with another design, a feature that is a first among other banks. Moreover, the designs reflect the dynamic lifestyle of today’s teenagers. Indie Account was recognized by MURI (Indonesia Museum of World Records) as the first savings account in Indonesia to feature replaceable stickers in the debit card. The MURI award was presented during the event #KejarMimpi Leaders Camp at Santa Ursula Jakarta High School on Tuesday, November 7, 2017. Annual Report CIMB NIAGA 2017
  17. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report THE NEW GO MOBILE In November 2017 , CIMB Niaga launched The New Go Mobile, its mobile banking offers a convenient way for customers to conduct transactions via their smart phones, anytime and anywhere. The expanded features of The New Go Mobile are designed to meet the needs of today’s banking behavior which leans towards to digital banking, as well as harmonized CIMB Niaga’s aspiration to become the leading digital banking institution in Indonesia. The New Go Mobile offers various innovations, beginning with a new display that uses a finger-print and face recognition login features, making it easy and fast to access to application. Other innovative features include the 1-gadget-1-phone number feature to added security as access is only possible from registered gadget and phone number; a feature for the direct sharing of transaction receipt from apps to messenger chat apps such as WhatsApp, LINE, SMS, and e-mail; download account statements; promotion codes to participate in attractive promo drive from Go Mobile; and many other innovations that designed for the convenience of customers in making transactions with their handheld gadget. CIMB Niaga is committed to provide positive an endto-end customer experience in all service channels, included Go Mobile. With “FORWARD” as a brand promise, CIMB Niaga is on hand to support all Annual Report CIMB NIAGA 2017 customers in every aspect and stage of life to move forward to reach their goals and dreams. No more no, just Go Mobile. With one Go Mobile apps, enabling fast and secure transactions, anywhere, at anytime, cashless and cardless. 15
  18. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management INITIATIVES BIZCHANNEL @CIMB FOR BUSINESS To support its business customers in 2017, CIMB Niaga launched the BizChannel@CIMB for Business, an internet banking solution that offers a secure and convenient way to conduct banking transactions for business customers. Business customers can perform a transactions conveniently without wasting time, as the BizChannel@CIMB for Business comes with complete features for cash management (including fund remittance and tax payment), trade finance, and special deal rates for online foreign exchange purchases. The BizChannel@CIMB for Business prioritizes the security of transaction and customer data, while also providing a convenient way of conducting transactions. Through BizChannel@CIMB for Business, banking access is available from anywhere and at anytime, using the secure mobile token authentication method (no more fear of left behind). The BizChannel@CIMB for Business also provides the flexibility of choosing the number of users and workflow for transactions, with the option of 1-layer workflow (Single User) or 2-layer workflow (Maker and Approver). 16 The BizChannel@CIMB has already served the internet banking needs of corporations since 2010. Now, with the BizChannel@CIMB for Business as designed to accommodate the needs of business customers and entrepreneurs, BizChannel@CIMB is ready to support the growth of businesses and companies. Annual Report CIMB NIAGA 2017
  19. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report 01 Playing to Our Strengths 02 Expanding CASA Franchise Strategic Focus 2017 03 Discipline in Cost Management 04 05 Preservation of Capital and Balanced Risk Culture Leverage Information Technology Annual Report CIMB NIAGA 2017 17
  20. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Key Financial Performance 2017 Total Assets Earning Assets-Net (Rp trillion) 219 13 233 239 14 15 242 17 16 14 271 13 14 15 286 308 17 16 46.8 15 52.6 16 17 164 CASA Ratio increased by 171bps to 52.6% 179 181 189 14 15 16 17 Customer Deposits increased 4.8% to Rp189 trillion 14 15 16 17 13 193 13 205 210 207 14 15 16 229 17 (%) 34 13 14 157 Capital Adequacy Ratio (CAR)*) (Rp trillion) 26 185 Total Liabilities increased by 10.6% to Rp229 trillion Equity-Net 28 180 (Rp trillion) 175 13 177 Total Liabilites (Rp trillion) 50.8 176 Loan increased by 2.8% to Rp185 Trillion Customer Deposits (%) 13 260 277 Earning Assets-Net increased by 7.8% to Rp308 Trillion CASA Ratio 44.9 (Rp trillion) 266 Total Asset increased by 10.2% to Rp266 trillion 44.0 Loans (Rp trillion) 37 29 15 16 Equity-Net increased by 8.0% to Rp37 trillion 17 15.4 15.6 13 14 16.3 15 18.0 18.6 16 17 Capital Adequacy Ratio increased by 64bps to 18.6% Business As Usual (excluding) 2014: Sales of fixed assets 2015: Mutual Separation Scheme (MSS) expense 2016: Income earned from strategic alliance *) After credit and market risk calculation 18 Annual Report CIMB NIAGA 2017
  21. Supporting Business Review Corporate Governance Report Net Interest Income 10 .1 10.7 Others Corporate Data Other Operating Income (Rp trillion) 11.4 Corporate Social Responsibility Operating Income (Rp trillion) 12.1 12.4 (Rp trillion) 3.4 3.4 2.6 Consolidated Financial Report 5.9 2.8 4.1 2.3 3.0 2.5 1.3 13 14 15 17 16 Net Interest Income increased by 2.6% to Rp12.4 trillion 13 14 15 17 16 Other Operating Income increased 20.2% to Rp3.4 trillion Profit Before Tax 170.4 4.2 2.1 14 15 83.7 1.9 0.9 1.1 13 118.5 3.0 2.6 17 16 Profit Before Tax increased by 61.4% to Rp4.2 trillion Return On Equity (ROE) Shareholders (%) 13 17 16 (Rp) 4.3 3.0 15 Earning Per Shares (Rp trillion) 5.8 14 Operating Income increased by 65.7% to Rp4.1 trillion Net Profit (Rp trillion) 13 14 15 74.6 34.1 17 16 Net Profit increased by 58.8% to Rp3.0 trillion 13 14 15 16 17 Earning Per Shares increased by 58.8% to Rp118.5 Cost to Income Ratio (CIR) (%) 17.7 48.0 51.5 52.7 14 15 49.4 47.7 16 17 8.3 7.7 5.8 3.0 13 14 15 16 Return On Equity Shareholders increased by 252bps to 8.3% Annual Report CIMB NIAGA 2017 17 13 Cost to Income Ratio improved by 166bps to 47.7% 19
  22. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Financial Highlights Consolidated Financial Position Statements 2013 2014 * 2015* 2016* 2017 Total Assets 218,866,409 233,162,423 238,849,252 241,571,728 266,305,445 Earning Assets-Net 260,417,854 270,979,099 277,429,171 286,026,620 308,398,914 Loans 156,984,105 176,383,449 177,356,829 180,081,612 185,115,806 Loans-Net 152,909,465 170,274,444 169,958,838 171,983,359 177,807,766 Non-Performing Loans 3,497,420 6,881,335 6,633,404 6,894,089 6,827,249 Impaired Loans 5,045,280 8,440,069 8,914,616 9,421,492 9,433,852 Financing Lease 332,691 273,381 179,927 82,427 19,607 Financing Lease-Net 311,057 251,063 157,683 51,981 10,936 17,673 11,528 2,056 21,904 4,744 20,036,576 22,310,408 26,046,068 28,071,315 38,413,540 INFORMATION ON FINANCIAL POSITIONS CONSOLIDATED BALANCE SHEET Impaired Financing Lease Marketable Securities & Government Bonds-Net Investments-Net 12,108 13,048 13,048 3,574 3,659 Total Liabilities 192,979,722 204,714,729 210,169,865 207,364,106 229,354,449 Customer Deposits 163,737,362 174,723,234 178,533,077 180,571,134 189,317,196 Borrowing 8,591,371 8,814,852 6,684,630 5,436,073 5,809,723 Marketable Securities Issued 5,976,470 5,803,195 4,476,921 3,237,704 5,403,613 Subordinated Loans 2,962,569 2,970,355 2,969,774 2,979,566 1,596,772 94,659 734 788 818 881 25,792,028 28,446,960 28,678,599 34,206,804 36,950,115 Non Controlling Interest Equity-Net INFORMATION ON RESULTS OF OPERATIONS         CONSOLIDATED INCOME STATEMENTS         Net Interest Income     10,120,691 10,689,495 11,386,360 12,094,030 Other Operating Income 3,443,763 2,565,481 2,348,842 2,789,630 3,352,448 Total Operating Income 13,564,454 13,254,976 13,735,202 14,883,660 15,755,827 Allowance for Impairment of Financial and Non-Financial Assets (1,203,481) (3,466,274) (5,360,581) (4,972,951) (4,079,805) Other Operating Expenses (6,495,003) (6,830,462) (7,111,958) (7,432,899) (7,569,451) 5,865,970 2,958,240 1,262,663 2,477,810 4,106,571 Operating Income Non Operating Income/(Expenses)-Net Profit Before Tax Tax Expenses Net Income Other Comprehensive Income After Tax Total Other Comprehensive Income (33,953) 5,832,017 (1,535,866) 4,296,151 (1,062,195) 3,378 2,961,618 (856,329) 2,105,289 351,252 (121,659) 1,141,004 (284,869) 12,403,379 97,114 48,449 2,574,924 4,155,020 (700,045) (1,177,282) 856,135 1,874,879 2,977,738 (196,192) 3,446,518 8,538 3,233,956 2,456,541 659,943 5,321,397 2,986,276 Equity holders of parent 4,282,417 2,103,880 856,081 1,874,849 2,977,675 Non-Controlling Interest 13,734 1,409 54 30 63 Equity holders of parent 3,220,222 2,455,132 659,889 5,321,367 2,986,213 Non-Controlling Interest 13,734 1,409 54 30 63 3,233,956 2,456,541 659,943 5,321,397 2,986,276 Earnings Per Share-Basic 170,40 83,74 34,07 74,60 118,50 Profit Before Tax (Actual) 5,832,017 3,200,169 570,004 2,850,708 4,155,020 Net Income (Actual) 4,296,151 2,343,840 427,885 2,081,717 2,977,738 Net Income Attributable to: Total Comprehensive Income Attributable to: * Business As Usual (excluding) 2014: Sales of fixed assets 2015: Mutual Separation Scheme (MSS) expense 2016: Income earned from strategic alliance ** 20 After credit and market risk calculation Annual Report CIMB NIAGA 2017
  23. Supporting Business Review Corporate Governance Report Performance Ratio Corporate Social Responsibility 2013 Others Corporate Data 2014 * 2015* Consolidated Financial Report 2016* 2017 FINANCIAL RATIO I. Capital Capital Adequacy Ratio (CAR)** 15.36% 15.58% 16.28% 17.96% 18.60% CAR Tier I 12.91% 13.33% 14.20% 16.44% 17.31% CAR Tier II 2.45% 2.25% 2.08% 1.52% 1.29% 16.20% 16.62% 20.26% 27.64% 19.98% Non Performing Earning Assets to Total Earning Assets 2.10% 3.53% 3.35% 3.41% 3.13% Non Performing Loan Ratio 2.23% 3.90% 3.74% 3.89% 3.75% Non Performing Loan Ratio-Net 1.55% 1.94% 1.59% 2.16% 2.16% Impairment Ratio 3.21% 4.79% 5.03% 5.24% 5.10% 116.50% 88.78% 111.53% 117.68% 107.16% 2.76% 1.33% 0.47% 1.09% 1.70% Shareholders 17.74% 7.66% 2.99% 5.81% 8.34% Tier I 19.07% 8.10% 3.10% 6.79% 8.73% Debt to Equity 7.48 7.20 7.33 6.06 6.21 Debt to Assets 0.88 0.88 0.88 0.86 0.86 5.34% 5.36% 5.21% 5.64% 5.60% Other Operating Income to Total Operating Income 25.17% 20.81% 17.11% 18.92% 21.28% Cost to Income Ratio 47.98% 51.52% 52.67% 49.40% 47.74% Operating Expenses to Operating Income (BOPO) 73.79% 87.86% 97.38% 90.07% 83.48% 2.76% 1.44% 0.24% 1.20% 1.70% Shareholders (Actual) 17.74% 8.52% 1.50% 6.46% 8.34% Tier I (Actual) 19.07% 9.02% 1.55% 6.79% 8.73% 47.98% 50.61% 56.83% 48.50% 47.74% Loan to Deposit Ratio (LDR) 94.49% 99.46% 97.98% 98.38% 96.24% CASA Ratio 43.99% 44.87% 46.81% 50.84% 52.55% - - - - - Primary 8.12% 8.13% 7.74% 6.76% 6.74% Secondary Fixed Assets to Capital II. Assets Quality Loan Loss Coverage III. Profitability Return On Assets (ROA) Return On Equity (ROE) Net Interest Margin (NIM) Return On Assets (ROA) (Actual) Return On Equity (ROE) Cost to Income Ratio (Actual) IV. Liquidity V. Compliance LLL Violation Statutory Reserve - Rupiah 9.27% 10.12% 8.94% 12.05% 10.12% Statutory Reserve - Foreign Currency 8.17% 8.18% 8.18% 8.33% 8.05% Net Open Position 2.32% 0.76% 1.19% 1.66% 0.80% -10.72% -12.03% 5.68% 2.19% 5.10% Net Open Position on Financial Positions Annual Report CIMB NIAGA 2017 21
  24. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Share Highlights INITIAL PUBLIC OFFERING PT Bank CIMB Niaga Tbk (formerly PT Bank Niaga) conducted an Initial Public Offering under Minister of Finance of the Republic of Indonesia Regulation No. SI-057/SHM/MK.10/1989 dated 2 October 1989 and listed on the Indonesia Stock Exchange. According to the Underwriting Agreement and Inter-Underwriter Agreement dated 29 September 1989, the underwriters agreed to issue 5,000,000 shares of common stock with value of Rp1,000 per share at the offering price of Rp12,500 per share. Lead Underwriters: 1.PT First Indonesian Finance and Investment Corporation (Ficorinvest); 2. Bank Pembangunan Indonesia (Bapindo); 3. Merchant Investment Corporation (Merincorp). Managing Underwriter: PT First Indonesian Finance Corporation (Ficorinvest). and Investment Co-underwriters: 1. PT Finconesia; 2. PT Indonesian Finance and Investment Company (IFI); 3. PT Indonesian Investment International (Indovest); 22 4. PT Inter-Pacific Financial Corporation (Inter-Pacific); 5. PT Multinational Finance Corporation (Multicor); 6.PT Mutual International Finance Corporation (MIFC); 7.PT Private Development Finance Company of Indonesia (PDFCI); 8. PT Usaha Pembiayaan Pembangunan Indonesia (Uppindo); 9. PT Aseam Indonesia (ASEAM); 10.PT (Perseroan) Danareksa. Supporting Institutions: 1. Public Accountant, Drs. Siddharta & Siddharta; 2. Notary, Kantor Notaris Kartini Muljadi, SH; 3. Legal Counsel, Tumbuan & Associates. Meanwhile, PT Bank Lippo Tbk, which merged into PT Bank CIMB Niaga Tbk, effectively on 1 November 2008, conducted an Initial Public Offering under the regulation of Ministry of Finance of the Republic of Indonesia No. SI-059/SHM/MK.10/1989 dated 2 October 1989 of 6,800,000 shares of common stock with value of Rp1,000 per-share at the offering price of Rp15,000 per share, and listed on Indonesia Stock Exchange. Annual Report CIMB NIAGA 2017
  25. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Price of Share per Month For 2016 - 2017 Month Open 2016 High 2017 2016 Low 2017 2016 Closing 2017 2016 Transaction Volume Changes 2017 2016 2017 2016 Value (Rp.000) 2017 2016 Frequency 2017 2016 2017 January 590 840 620 990 575 820 605 980 15 140 4,759 217,076 2,855 198,799 458 590 February 610 960 615 1,170 570 945 570 990 (40) 30 2,799 315,301 398 610 398 610 March 585 970 615 1,060 570 945 575 1,040 (10) 70 4,076 349,687 2,392 354,915 775 585 April 575 1,040 580 1,300 535 1,040 550 1,270 (25) 230 9,886 424,969 1,212 575 1,212 575 May 560 1,270 560 1,355 480 1,180 494 1,280 (66) 10 11,515 205,398 5,921 264,609 1,557 560 June 494 1,275 540 1,300 488 1,150 525 1,170 31 (105) 36,338 90,362 7,230 494 7,230 494 July 525 1,170 965 1,330 525 1,170 910 1,290 385 120 190,199 160,894 144,971 203,324 15,345 525 August 910 1,290 1,090 1,440 835 1,250 835 1,385 (75) 95 176,439 163,295 17,975 910 17,975 910 September 755 1,380 890 1,395 615 1,255 830 1,295 75 (85) 1,360,809 100,306 1,018,410 134,694 56,423 755 October 840 1,270 1,015 1,315 840 1,160 955 1,240 115 (30) 328,996 121,923 23,161 840 23,161 840 (25) 235,582 106,355 207,507 132,504 17,599 955 97,399 138,862 9,540 830 9,540 830 November 955 1,245 970 1,295 770 1,170 805 1,220 (150) December 830 1,180 870 1,375 765 1,180 845 1,350 15 170 Quarterly Share Price and Number of Issued Shares in 2016-2017 Share Price Years Open 2016 High 2017 2016 Low 2017 2016 Closing 2017 2016 Changes 2017 2016 2017 1st Quarter 590 840 620 1,170 570 820 575 1,040 (15) 200 2nd Quarter 575 1,040 580 1,355 480 1,040 525 1,170 (50) 130 3rd Quarter 525 1,170 1,090 1,440 525 1,170 830 1,295 305 125 4th Quarter 840 1,270 1,015 1,375 765 1,160 845 1,350 5 80 Total Shares Transaction Volume Value (Rp) Market Capitalization (Rp) Years 2016 2017 2016 2017 2016 2017 2016 2017 1 Quarter 25,131,606,843 25,131,606,843 11,634 882,063 6,911,231 882,531,548 14,306,167,195,378 25,875,502,405,553 2 Quarter 25,131,606,843 25,131,606,843 57,738 720,730 29,959,034 872,814,874 13,062,152,656,649 29,109,940,206,247 3 Quarter 25,131,606,843 25,131,606,843 1,727,447 424,495 1,339,449,536 560,586,266 20,650,641,342,893 32,219,976,553,068 4 Quarter 25,131,606,843 25,131,606,843 661,977 367,140 588,649,446 462,525,142 21,023,845,704,512 33,588,392,545,670 st nd rd th Annual Report CIMB NIAGA 2017 23
  26. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management SHARE HIGHLIGHTS 2017 Share Trading Graph 1 ,600 450,000 1,400 400,000 350,000 1,200 300,000 1,000 250,000 800 200,000 600 150,000 400 100,000 200 50,000 0 0 January February 980 990 1,040 1,270 1,280 1,170 1,290 1,385 1,295 1,240 1,220 1,350 217,076 315,301 349,687 424,969 205,398 90,362 160,894 163,295 100,306 121,923 106,355 138,862 Closing Price Transaction Volume March April May June July August September October November December 2016 Share Trading Graph 1,200 1,600,000 1,400,000 1,000 1,200,000 800 1,000,000 800,000 600 600,000 400 400,000 200 200,000 0 Closing Price Transaction Volume 0 January February March April May June July August September October November December 605 570 575 550 494 525 910 835 830 955 805 845 4,759 2,799 4,076 9,886 11,515 36,338 190,199 176,439 1,360,809 328,996 235,582 97,399 TRADING SUSPENSION AND/OR DELISTING Throughout 2016 and 2017, the Bank did not experience any trading suspension and/or delisting on the Indonesia Stock Exchange. 24 Annual Report CIMB NIAGA 2017
  27. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Corporate Action Throughout 2016 and 2017 , CIMB Niaga did not perform the corporate actions of stock split, reverse stock, stock dividends, bonus shares, or change of nominal value of the shares. However, in 2016, CIMB Niaga incorporated (mergered) 2 (two) subsidiary companies engaged in multifinance. The two subsidiary companies were PT Kencana Internusa Artha Finance (KITAF) and PT CIMB Niaga Auto Finance (CNAF). The merger of those two companies was approved and listed by Ministry of Justice and Human Rights No. AHU-AH.01.10-0107406 on 23 December 2015. The composition of shareholders in CIMB Niaga Auto Finance after the merger amounted to 99.93%, the remaining 0.07% owned by PT Niaga Manajemen Citra. The purposes of the merger of CNAF and KITAF were to: • Strengthen the position of the Company in the automotive industry to increase the Company’s profit and income; • Achieve integration in business, management, operations, policy, procedural systems, and risk management; • Eliminate competition between CNAF and KITAF in the automotive industry; • Cost efficiency; and • Strengthen the after-merger company’s capital to be able to conduct business expansion. In a complementary move, also in 2016, CIMB Niaga conducted a redemption of bonds, namely of Shelf Registration Bonds I Bank CIMB Niaga Phase II Year 2013 Series B of Rp315,000,000,000, maturing on 20 November 2016, and Bonds I Bank CIMB Niaga Year 2011 Series B of Rp1,320,000,000,000, maturing on 23 December 2016. In 2017 CIMB Niaga conducted an Initial Public Offering of Shelf Registration Bonds II Bank CIMB Niaga Phase II Year 2017 of Rp2,000,000,000,000, and Shelf Registration Bonds II Bank CIMB Niaga Phase III Year 2017 of Rp2,000,000,000,000. In addition, in 2017, CIMB Niaga conducted repayment of bond principal of Subordinated Bond I Bank CIMB Niaga Year 2010 of Rp1,380,000,000,000 which matured on 8 July 2017, Shelf Registration Bond Bank CIMB Niaga Phase I Year 2012 B Series of Rp1,400,000,000,000, which matured on 30 October 2017, and Shelf Registration Bonds II Phase I Year 2016 Series A of Rp432,000,000,000, which matured on 13 November 2017. In 2017 CIMB Niaga has performed a Buyback program, maximum of 2% of shares issued and fully paid which will be used for Management Employee Stock Ownership Program (MESOP) and effective in 2018. Refer to Good Corporate Governance section for the details of share Buyback. In addition, in 2016 CIMB Niaga conducted an Initial Public Offering of Shelf Registration Bonds II Bank CIMB Niaga Phase I Year 2016 of Rp1,000,000,000,000. Annual Report CIMB NIAGA 2017 25
  28. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Bonds Highlights Bond Information Bonds and Loans Date of Issuance Maturity Date Tenor (years) Coupon Currency Nominal Rating in 2017 AA (Fitch) AA (Fitch)           Bank CIMB Niaga Subordinated Bond II Year 2010 23 December 2010 23 December 2020 10 10.85% Rp 1,600,000,000,000 Shelf Registration Bond I Phase II Year 2013 Series C 20 November 2013 20 November 2018 5 9.75% Rp 850,000,000,000 AAA (Pefindo) AAA (Fitch) AAA (Pefindo) AAA (Fitch) Shelf Registration Bond II Phase I Year 2016 Series B 3 November 2016 3 November 2019 3 8.00% Rp 386,000,000,000 AAA (Pefindo) AAA (Pefindo) Shelf Registration Bond II Phase I Year 2016 Series C 3 November 2016 3 November 2021 5 8.25% Rp 182,000,000,000 AAA (Pefindo) AAA (Pefindo) Shelf Registration Bond II Phase II Year 2017 Series A 23 August 2017 3 September 2018 1 6.75% Rp 802,000,000,000 - AAA (Pefindo) Shelf Registration Bond II Phase II Year 2017 Series B 23 August 2017 23 August 2020 3 7.70% Rp 376,000,000,000 - AAA (Pefindo) Shelf Registration Bond II Phase II Year 2017 Series C 23 August 2017 23 August 2022 5 8.15% Rp 822,000,000,000 - AAA (Pefindo) Shelf Registration Bond II Phase III Year 2017 Series A 2 November 2017 12 November 2018 1 6.20% Rp 500,000,000,000 - AAA (Pefindo) Shelf Registration Bond II Phase III Year 2017 Series B 2 November 2017 2 November 2020 3 7.50% Rp 657,000,000,000 - AAA (Pefindo) Shelf Registration Bond II Phase III Year 2017 Series C 2 November 2017 2 November 2022 5 7.75% Rp 843,000,000,000 - AAA (Pefindo) Bonds   Rating in 2016                 Bank CIMB Niaga Subordinated Bond I Year 2010 8 July 2010 8 July 2017 7 11.30% Rp 1,380,000,000,000 AA (Fitch) AA (Fitch) Bank CIMB Niaga Bond I Year 2011 Series B 23 December 2011 23 December 2016 5 8.30% Rp 1,320,000,000,000 AAA (Pefindo) - Shelf Registration Bond I Phase I Year 2012 Series B 30 October 2012 30 October 2017 5 7.75% Rp 1,400,000,000,000 AAA (Pefindo) AAA (Fitch) AAA (Pefindo) AAA (Fitch) Shelf Registration Bond II Phase I Year 2016 Series A 3 November 2016 13 November 2017 1 7.25% Rp 432,000,000,000 AAA (Pefindo) AAA (Pefindo) Shelf Registration Bond I Phase II Year 2013 Series B 20 November 2013 20 November 2016 3 9.15% Rp 315,000,000,000 AAA (Pefindo) - Matured Coupon Payment History Bank CIMB Niaga Subordinated Bond I Year 2010 Payment Date Amount Payment of Coupon-1st Description 8 October 2010 Rp38,985,000,000 Rp38,985,000,000 Payment of Coupon-2nd 8 January 2011 Payment of Coupon-3rd 8 April 2011 Rp38,985,000,000 Payment of Coupon-4th 8 July 2011 Rp38,985,000,000 Payment of Coupon-5th 8 October 2011 Rp38,985,000,000 Payment of Coupon-6th 8 January 2012 Rp38,985,000,000 Payment of Coupon-7th 8 April 2012 Rp38,985,000,000 Payment of Coupon-8th 8 July 2012 Rp38,985,000,000 Payment of Coupon-9th 8 October 2012 Rp38,985,000,000 Payment of Coupon-10th 8 January 2013 Rp38,985,000,000 Payment of Coupon-11th 8 April 2013 Rp38,985,000,000 Payment of Coupon-12th 8 July 2013 Rp38,985,000,000 Payment of Coupon-13th 8 October 2013 Rp38,985,000,000 Payment of Coupon-14th 8 January 2014 Rp38,985,000,000 Payment of Coupon-15th 8 April 2014 Rp38,985,000,000 Payment of Coupon-16th 8 July 2014 Rp38,985,000,000 Payment of Coupon-17th 8 October 2014 Rp38,985,000,000 Payment of Coupon-18th 8 January 2015 Rp38,985,000,000 Payment of Coupon-19th 8 April 2015 Rp38,985,000,000 Payment of Coupon-20th 8 July 2015 Rp38,985,000,000 26 Annual Report CIMB NIAGA 2017
  29. Supporting Business Review Corporate Governance Report Description Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Payment Date Amount Payment of Coupon-21st 8 October 2015 Rp38 ,985,000,000 Payment of Coupon-22nd 8 January 2016 Rp38,985,000,000 Payment of Coupon-23rd 8 April 2016 Rp38,985,000,000 Payment of Coupon-24th 8 July 2016 Rp38,985,000,000 Payment of Coupon-25th 8 October 2016 Rp38,985,000,000 Payment of Coupon-26th 8 January 2017 Rp38,985,000,000 Payment of Coupon-27th 8 April 2017 Rp38,985,000,000 Payment of Coupon-28th 8 July 2017 Rp38,985,000,000 Bank CIMB Niaga Subordinated Bond II Year 2010 Description Payment of Coupon-1st Payment Date Amount 23 March 2011 Rp43,400,000,000 Payment of Coupon-2nd 23 June 2011 Rp43,400,000,000 Payment of Coupon-3rd 23 September 2011 Rp43,400,000,000 Payment of Coupon-4th 23 December 2011 Rp43,400,000,000 Payment of Coupon-5th 23 March 2012 Rp43,400,000,000 Payment of Coupon-6th 23 June 2012 Rp43,400,000,000 Payment of Coupon-7th 23 September 2012 Rp43,400,000,000 Payment of Coupon-8th 23 December 2012 Rp43,400,000,000 Payment of Coupon-9th 23 March 2013 Rp43,400,000,000 Payment of Coupon-10th 23 June 2013 Rp43,400,000,000 Payment of Coupon-11th 23 September 2013 Rp43,400,000,000 Payment of Coupon-12th 23 December 2013 Rp43,400,000,000 Payment of Coupon-13th 23 March 2014 Rp43,400,000,000 Payment of Coupon-14th 23 June 2014 Rp43,400,000,000 Payment of Coupon-15th 23 September 2014 Rp43,400,000,000 Payment of Coupon-16th 23 December 2014 Rp43,400,000,000 Payment of Coupon-17th 23 March 2015 Rp43,400,000,000 Payment of Coupon-18th 23 June 2015 Rp43,400,000,000 Payment of Coupon-19th 23 September 2015 Rp43,400,000,000 Payment of Coupon-20th 23 December 2015 Rp43,400,000,000 Payment of Coupon-21st 23 March 2016 Rp43,400,000,000 Payment of Coupon-22nd 23 June 2016 Rp43,400,000,000 Payment of Coupon-23rd 23 September 2016 Rp43,400,000,000 Payment of Coupon-24th 23 December 2016 Rp43,400,000,000 Payment of Coupon-25th 23 March 2017 Rp43,400,000,000 Payment of Coupon-26th 23 June 2017 Rp43,400,000,000 Payment of Coupon-27th 23 September 2017 Rp43,400,000,000 Payment of Coupon-28th 23 December 2017 Rp43,400,000,000 Bank CIMB Niaga Bond I Year 2011 Series B Description Payment of Coupon-1st Payment Date Amount 23 March 2012 Rp27,390,000,000 Payment of Coupon-2nd 23 June 2012 Rp27,390,000,000 Payment of Coupon-3rd 23 September 2012 Rp27,390,000,000 Payment of Coupon-4th 23 December 2012 Rp27,390,000,000 Payment of Coupon-5th 23 March 2013 Rp27,390,000,000 Payment of Coupon-6th 23 June 2013 Rp27,390,000,000 Payment of Coupon-7th 23 September 2013 Rp27,390,000,000 Payment of Coupon-8th 23 December 2013 Rp27,390,000,000 Payment of Coupon-9th 23 March 2014 Rp27,390,000,000 Payment of Coupon-10th 23 June 2014 Rp27,390,000,000 Payment of Coupon-11th 23 September 2014 Rp27,390,000,000 Payment of Coupon-12th 23 December 2014 Rp27,390,000,000 Payment of Coupon-13th 23 March 2015 Rp27,390,000,000 Payment of Coupon-14th 23 June 2015 Rp27,390,000,000 Annual Report CIMB NIAGA 2017 27
  30. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management BOND HIGHLIGHTS Payment Date Amount Payment of Coupon-15th Description 23 September 2015 Rp27 ,390,000,000 Payment of Coupon-16th 23 December 2015 Rp27,390,000,000 Payment of Coupon-17th 23 March 2016 Rp27,390,000,000 Payment of Coupon-18th 23 June 2016 Rp27,390,000,000 Payment of Coupon-19th 23 September 2016 Rp27,390,000,000 Payment of Coupon-20th 23 December 2016 Rp27,390,000,000 Shelf Registration Bond I Phase I Year 2012 Series B Payment Date Amount Payment of Coupon-1st Description 30 January 2013 Rp27,125,000,000 Payment of Coupon-2nd 30 April 2013 Rp27,125,000,000 Payment of Coupon-3rd 30 July 2013 Rp27,125,000,000 Payment of Coupon-4th 30 October 2013 Rp27,125,000,000 Payment of Coupon-5th 30 January 2014 Rp27,125,000,000 Payment of Coupon-6th 30 April 2014 Rp27,125,000,000 Payment of Coupon-7th 30 July 2014 Rp27,125,000,000 Payment of Coupon-8th 30 October 2014 Rp27,125,000,000 Payment of Coupon-9th 30 January 2015 Rp27,125,000,000 Payment of Coupon-10th 30 April 2015 Rp27,125,000,000 Payment of Coupon-11th 30 July 2015 Rp27,125,000,000 Payment of Coupon-12th 30 October 2015 Rp27,125,000,000 Payment of Coupon-13th 30 January 2016 Rp27,125,000,000 Payment of Coupon-14th 30 April 2016 Rp27,125,000,000 Payment of Coupon-15th 30 July 2016 Rp27,125,000,000 Payment of Coupon-16th 30 October 2016 Rp27,125,000,000 Payment of Coupon-17th 30 January 2017 Rp27,125,000,000 Payment of Coupon-18th 30 April 2017 Rp27,125,000,000 Payment of Coupon-19th 30 July 2017 Rp27,125,000,000 Payment of Coupon-20th 30 October 2017 Rp27,125,000,000 Shelf Registration Bond I Phase II Year 2013 Series B Description Payment Date Amount 20 February 2014 Rp7,205,625,000 Payment of Coupon-2nd 20 May 2014 Rp7,205,625,000 Payment of Coupon-3rd 20 August 2014 Rp7,205,625,000 Payment of Coupon-4th 20 November 2014 Rp7,205,625,000 Payment of Coupon-5th 20 February 2015 Rp7,205,625,000 Payment of Coupon-6th 20 May 2015 Rp7,205,625,000 Payment of Coupon-7th 20 August 2015 Rp7,205,625,000 Payment of Coupon-8th 20 November 2015 Rp7,205,625,000 Payment of Coupon-9th 20 February 2016 Rp7,205,625,000 Payment of Coupon-10th 20 May 2016 Rp7,205,625,000 Payment of Coupon-11th 20 August 2016 Rp7,205,625,000 Payment of Coupon-12th 20 November 2016 Rp7,205,625,000 Payment of Coupon-1st 28 Annual Report CIMB NIAGA 2017
  31. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Shelf Registration Bond I Phase II Year 2013 Series C Description Payment of Coupon-1st Payment Date Amount 20 February 2014 Rp20 ,718,750,000 Payment of Coupon-2nd 20 May 2014 Rp20,718,750,000 Payment of Coupon-3rd 20 August 2014 Rp20,718,750,000 Payment of Coupon-4th 20 November 2014 Rp20,718,750,000 Payment of Coupon-5th 20 February 2015 Rp20,718,750,000 Payment of Coupon-6th 20 May 2015 Rp20,718,750,000 Payment of Coupon-7th 20 August 2015 Rp20,718,750,000 Payment of Coupon-8th 20 November 2015 Rp20,718,750,000 Payment of Coupon-9th 20 February 2016 Rp20,718,750,000 Payment of Coupon-10th 20 May 2016 Rp20,718,750,000 Payment of Coupon-11th 20 August 2016 Rp20,718,750,000 Payment of Coupon-12th 20 November 2016 Rp20,718,750,000 Payment of Coupon-13th 20 February 2017 Rp20,718,750,000 Payment of Coupon-14th 20 May 2017 Rp20,718,750,000 Payment of Coupon-15th 20 August 2017 Rp20,718,750,000 Payment of Coupon-16th 20 November 2017 Rp20,718,750,000 Shelf Registration Bond II Phase I Year 2016 Series A Description Payment Date Amount 3 February 2017 Rp7,830,000,000 Payment of Coupon-2nd 3 May 2017 Rp7,830,000,000 Payment of Coupon-3rd 3 August 2017 Rp7,830,000,000 Payment of Coupon-4th 13 November 2017 Rp7,830,000,000 Payment of Coupon-1st Shelf Registration Bond II Phase I Year 2016 Series B Description Payment Date Amount 3 February 2017 Rp7,720,000,000 Payment of Coupon-2nd 3 May 2017 Rp7,720,000,000 Payment of Coupon-3rd 3 August 2017 Rp7,720,000,000 Payment of Coupon-4th 3 November 2017 Rp7,720,000,000 Payment of Coupon-1st Shelf Registration Bond II Phase I Year 2016 Series C Description Payment Date Amount 3 February 2017 Rp3,753,750,000 Payment of Coupon-2nd 3 May 2017 Rp3,753,750,000 Payment of Coupon-3rd 3 August 2017 Rp3,753,750,000 Payment of Coupon-4th 3 November 2017 Rp3,753,750,000 Payment of Coupon-1st Company Rating No Rating Agency Rating Rating Description Validity Period 1 Fitch Rating AAA (idn) This rating is given to issuers with the lowest default risk among other Indonesian issuers March 2018 - March 2019 2 Pefindo Id AAA The ability of the obligor to meet its longterm financial commitments, relative to other Indonesia obligors, is superior July 2017 – July 2018 Annual Report CIMB NIAGA 2017 29
  32. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Event Highlights January February 26 08 CIMB Niaga Economic Forum 2017 Opening 2017 , on 26 January at the Ritz Carlton Pacific Place Jakarta, CIMB Niaga cooperated with The Indonesia Chamber of Commerce and Industry conducted CIMB Niaga Economic Forum 2017 – “Navigating 2017: Anchoring Expectations, Finding Opportunities”. The forum attended by more than 650 prime customers and opened by Tigor M. Siahaan, CEO, was held to envision economic and political conditions in 2017 by presenting reputable speakers, featuring social, economy and political experts such as; Ir. Airlangga Hartanto, Minister of Industry Republic of Indonesia; Gregor Carle, Head of Asia Pacific Fixed Income Product Strategy, Blackrock’s Active Investment Group; Sunarto Wijaya, Political Observer, Executive Director of Charta Politika; Arup Raha, Chief Economist CIMB Group. Closing remarks were delivered by Dr. Sri Mulyani Indrawati SE, M.Sc, Ph.D, Minister of Finance Republic of Indonesia. During the forum, prime customers had the opportunity to network among customers from different industries and enjoy the activities in The CIMB Niaga corporate booth, Five Senses Indonesia Heritage Lounge, and Fengshui Booth, as part of Chinese New Year celebrations. Integrated Facilities Launching: CIMB Niaga Telesales, Phone Banking and Video Banking Giving the customers a better quality of service, on 8 February 2017 at CIMB Niaga Gajah Mada Office, CIMB Niaga launched the integrated facilities of Telesales, Phone Banking, and Video Banking, which also celebrated the renovation CIMB Niaga’s historical building. The facilities launched by Dr. Kusumaningtuti Sandriharmy Soetiono SH, LLM, Deputy Commissioner of Financial Service Authority, along with Lani Darmawan, Consumer Banking Director; Wan Razly Abdullah, Finance and Strategic Planning Director; Fransiska Oei, Compliance, Corporate Affairs and Legal Director; Hedy Lapian, Human Resources Director; and Pandji P. Djajanegara, Sharia Banking Director CIMB Niaga. During the event, attended by 100 invitees and media personnel, CIMB Niaga announced its cooperation with Mitra Netra, the foundation providing disabled staff as telesales funding officers, and conducted a tour of all facilities for all invitees. March 06 Country Town Hall First Quarter 2017 The Country Town Hall of First Quarter 2017, was held on 6 March 2017 at Graha CIMB Niaga, Jakarta and attended by 150 senior leaders of CIMB Niaga. The event was opened by Tigor M. Siahaan, CEO CIMB Niaga, featured Tengku Dato’ Sri Zafrul Tengku Abdul Aziz, Group CEO, who delivered the updated regional performance and information of the CIMB Group. The Town Hall closed by the presentation of Chatbot by CIMB X. Chatbot is a tool that enables CIMB Niaga to extend its digital reach to new markets and potentially serve as mass acquisition tools while enhancing engagements with existing customers. During the town hall, CIMB Niaga launched the new brand promise “FORWARD”, presented by Adam Wee, Head of Marketing, Brand & Communication CIMB Group and the brand promise #KejarMimpi as a CIMB Niaga social movement, presented by Slamet Sudijono, Head of Marketing Brand & Communication CIMB Niaga. 30 Annual Report CIMB NIAGA 2017
  33. Supporting Business Review Corporate Governance Report March 13 Corporate Social Responsibility Others Corporate Data 20 Media Discussion with CIMB Niaga Sharia Tigor M . Siahaan, CEO CIMB Niaga opened the event and offered words of appreciation for the merchants’ performance during 2016, in several categories: Hypermart as the best merchant for transactions; Tokopedia as the best merchant on e-commerce transactions; NU Skin as the best merchant for business development, and Eraphone as the best merchant for overall business transactions. The Bank Management Committee members, who also attended the appreciation night were Lani Darmawan, Consumer Banking Director; Rahardja Alimhamzah, Business Banking Director; and Hendra Lembong, Chief of Transaction Banking. The event, opened by Pandji P. Djajanegara, Sharia Banking Director CIMB Niaga, delivered updated information on Sharia banking’s development in Indonesia and international economics, that included consumer and business banking segments. The discussion was presented by Pandji P. Djajanegara, Sharia Banking Director; Diah Rahma Paramaiswari, Head of Sharia Sales & Distribution; Rusdi Dahardin, Head of Sharia Business Banking; and Slamet Sudijono, Head of Marketing, Brand & Communication. Customer Industry Gathering for Insurance As part of establishing business relationships and providing integrated information on CIMB Niaga products and services, especially for insurance customers, CIMB Niaga conducted a customer gathering for the insurance industry especially CIMB Niaga Sales and Distribution, Central Jakarta area, on 13 March 2017 at the Ritz Carlton Pacific Palace hotel, Jakarta. John Simon, Treasury and Capital Market Director opened the event. During the event, there was a talkshow “CIMB Niaga as One the Integrated Financial Solutions” given by Adrian Panggabean, CIMB Niaga Chief Economist along with other senior product specialists. In the talk show, as one integrated financial solution, CIMB Niaga presented products and services of the Treasury and Capital Market (Structured Product – Market Linked Deposit), Transaction Banking (Virtual Account Online Billing), Consumer Banking (CIMB@ Work), and CPAM Directorate (mutual fund investment). The gathering closed by sharing testimony from Sun Life Director, Lidwina Ariyanti. Annual Report CIMB NIAGA 2017 Merchant Partners Appreciation Night CIMB Niaga conducted the Merchant Partners Appreciation Night on 20 March 2017 at the Grand Ballroom, Intercontinental Hotel Mid Plaza, Jakarta, attended by more than 100 merchants. The event was aimed at maintaining relationships between CIMB Niaga and its merchant partners, thus increasing CIMB Niaga’s transactional growth. The media is of the stakeholders of CIMB Niaga who must be up to date with the latest banking information. CIMB Niaga conducted a Media Discussion on Sharia Banking on 13 March 2017 at the Financial Club, 27 floor, CIMB Niaga Building, Jakarta, for more than 100 journalists. 13 Consolidated Financial Report 31 Outstanding Performance Recognition Award 2016 Showing appreciation to the best performers of CIMB Niaga in sales and non-sales, which exceeded the revenue target of CASA, Loan, and fee income, CIMB Niaga conducted the Outstanding Performance Recognition Awards (OPeRA) 2016 on 31 March 2017 at the Ritz Carlton Pacific Place Hotel Jakarta. The awards consisted of the Sales Award, CX Award, Collection Award, Cross Sell Award, and Improvement Award and were awarded to 289 winners from across Indonesia. The winners were also rewarded with a trip to Taiwan from 1 – 2 April 2017. Tigor M. Siahaan, CEO CIMB Niaga opened the event and during the event, CIMB Niaga launched a new OPeRA logo. The event was attended by 350 invitees and featured Maudy Ayunda and Soundwave as the evening’s entertainment. 31
  34. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management EVENT HIGHLIGHTS April 05 25 Media Launching of CIMB Niaga New Brand Promise “FORWARD” CIMB Niaga launched the new brand promise “FORWARD” on 5 April 2017 at Soehanna Hall Jakarta and attended by more than 100 media and bloggers. Annual General Shareholder Meeting (AGMS), Extraordinary General Shareholder Meeting (EGM), Press Conference BUKU 4 The Annual General Meeting of Shareholders (AGMS), Extraordinary General Meeting of Shareholders (EGMS), and the Press Conference on Commercial Bank Based on Business Activities (BUKU 4), were conducted on 25 April 2017 at the Financial Hall 2nd floor, Jakarta, attended by more than 150 stakeholders Shareholders, Directors, Commissioners and Journalists. Tigor M. Siahaan, CEO CIMB Niaga who proudly launched “FORWARD” stated: “FORWARD” is a promise to deliver the exact solutions that our customers need, wherever and whenever they need it most. It also signifies our continued commitment to provide a holistic banking experience by enabling our customers to progress in their hopes, dreams, goals and ambitions at every stage of their lives”. Through the meeting, decisions could be made in order to get approval of the Company’s Consolidated Financial Statements from the year ended 31 December 2016 and repurchasing of Company’s shares (share buyback) at a maximum of 2% of the Paid up Capital and then gave an announcement that CIMB Niaga was entering the category of BUKU 4. During the event, CIMB Niaga presented four segmental videos each describing a segment to be served by CIMB Niaga products and services. These are: the youth segment, young family segment, business banking segment and priority banking segment. CIMB Niaga also presented Maudy Ayunda and Titi Kamal as CIMB Niaga Brand Ambassadors in a lighthearted talkshow with the CIMB Niaga CEO. The meetings (AGMS &EGMS) and Press Conference continued with a discussion session with media personnel. May 10 May 02 Signing of Collective Labor Agreement of PT Bank CIMB Niaga Tbk (2017-2019) The signing was the most important point in industrial relations for CIMB Niaga, which focused on strengthening partnerships in the workplace and defining the roles of the unions and the employer’s association in order to develop CIMB Niaga’s performance. Therefore, CIMB Niaga conducted the signing of the Collective Labor Agreement (period 2017-2019) on 2 May 2017 at Graha CIMB Niaga, Jakarta. The signing was attended by Tigor M. Siahaan, CEO; and Hedy Lapian, Human Resources Director CIMB Niaga; and the Chairman of each CIMB Niaga Union and was witnessed by Haiyani Rumondang, Director General for Industrial Relations and Social Security Development, Ministry of Manpower and Transmigration. The event was attendeed by 70 invitees. 32 Signing of Cooperation Agreement with Holcim Indonesia CIMB Niaga has created another innovation by providing a payment transaction service through e-commerce business channels for customers using mobile applications. The signing of the agreement of payment service cooperation through “Solusi Rumahku” was done with Holcim Indonesia on 10 May 2017 at Graha CIMB Niaga, Jakarta. Lani Darmawan, Consumer Banking Director CIMB Niaga and Raden Ali Permadiono Sumedi, Sales Director Holcim Indonesia opened the event by delivering speeches. The event attended by 150 invitees and media personnel, continued with the signing of the agreement, presentation of a mobile application tutorial “Solusi Rumahku powered by Holcim Indonesia’, and closed by a lighthearted Talkshow. Through this service, CIMB Niaga will increase its contribution to developing the cement industry and support business by providing payment services for customers who access the mobile application. CIMB Niaga also offers various payment facilities, such as, credit card, CIMB clicks, and handphone accounts. Annual Report CIMB NIAGA 2017
  35. Supporting Business Review Corporate Governance Report June 08 15 Corporate Social Responsibility 15 Safari Ramadhan 1438 H Others Corporate Data Consolidated Financial Report Signing the Agreement of Participant with Travel Agents for the Hajj Pilgrimage and Launching Ceremony of the CIMB Niaga Debit Card To expand the Hajj Pilgrimage services , CIMB Niaga Sharia cooperated with Hajj and Umroh associations in Indonesia, named Asphurindo, Amphuri, and prominent travel agents in Indonesia. In order to enhance a good relationship between CIMB Niaga Senior Management and all employees in all regions, and also as a strategic channel for employees to convey their aspirations, CIMB Niaga conducted Safari Ramadhan 1438H from 8th until 15th June 2017. Safari Ramadhan 1438H was attended by Bank Management Committees in 9 cities: Jakarta (on 8th June at Graha CIMB Niaga, attended by 1,000 staff); Bandung (on 9th June at Hotel Harris, attended by 226 staff); Surabaya (on 12th June at Mercure Hotel, attended by 251 staff); Balikpapan (on 13th June at Novotel Hotel, attended by 122 staff); Bintaro (on 14th June at Griya CIMB Niaga attended by 1,000 staff); Medan (on 14th June at Santika Premier Hotel, attended by 150 staff); Makasar (on 14th June at Imperial Aryaduta hotel, attended by 182 staff); Solo (on 14th June at Alila hotel, attended by 103 staff); and Lampung (on 14th June at Novotel hotel attended by 133 staff). CIMB Niaga Sharia conducted the Signing Agreement for the Hajj Pilgrimage with 4 travel agents, namely: PT Patuna Mekar Jaya, PT Sahid Gema Wisata, PT Tazkia Tour Travel, and Al Amin Universal on 15th June 2017 in the Dharmawangsa hotel, Jakarta. The customers could get special rates and discount packages through these 4 specialist Hajj Travel Agents. During the event, CIMB Niaga also launched the CIMB Niaga Debit Card for the Hajj Pilgrimage, that can offer “more value” to customers who use the cards on their Pilgrimage. The agenda consisted of a welcome speech delivered by a Director of CIMB Niaga, presentation of CIMB Niaga’s performance, and the announcement of CIMB Niaga entering BUKU 4. During the event, management gave donations to the orphanages and foundations using Benevolence Fund of CIMB Niaga Sharia and CIMB Niaga Corporate Social Responsibility (CSR). Safari Ramadhan was closed with spiritual lecture and fast breaking. 22 Signing of Cooperation with General Directorate of Population and Civil Registration (DUKCAPIL) CIMB Niaga, Nobu Bank, BPR Inti Dana and Home Credit Indonesia signed the agreement with the General Directorate of Population and Civil Registration (DUKCAPIL), Ministry of Home Affairs on 22 June 2017 at the Financial Club, Jakarta which was attended by 100 invitees and media personnel. The speeches were given by Prof. Dr. Zudan Arif Fakrulloh, SH, MH the General Director of Population and Civil Registration; Ir I Nyaman Supriyatna, M.Sc., Deputy of Research and Standardization Cooperation, The National Standardization Agency of Indonesia, and Tigor M. Siahaan, CEO CIMB Niaga who represented the industry. After the signing ceremony, the event continued with a press conference. General agreement became the main basis for CIMB Niaga to implement the utilization of data for civil population and Electronic Resident Identity Card (Kartu Tanda Penduduk-KTP) in various banking services. Data from Dukcapil will be utilized optimally to facilitate the identification process of prospective customers as well as improve the efficiency of financial transactions. In Digital Banking development for instance, the utilization of Electronic KTP data, has become an important point for the innovation of online banking registration (host to host). In the future, customers can register banking products and other financial services by selfservice. Annual Report CIMB NIAGA 2017 33
  36. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management EVENT HIGHLIGHTS July 12 Public Expose CIMB Niaga conducted a Public Expose on the Shelf Registration Bond II Bank CIMB Niaga Phase II Year 2017 issuance on 12th July 2017 at Graha CIMB Niaga , Jakarta which was attended by 100 invitees. The Public Expose talked about general information regarding CIMB Niaga. This event announced the offering structure of Shelf Registration Bond II Bank CIMB Niaga Phase II Year 2017 and view of investments on good financial performance, with an idAAA Rating (Triple A) from Pefindo, as the highest rating released by Pefindo. 14 24 Signing Agreement for the Hajj Pilgrimage between CIMB Niaga and the Associations (ASPHURINDO and AMPHURI) CIMB Niaga Sharia expanded its cooperation for Hajj Pilgrimage services by signing the agreement with the Indonesian Hajj Pilgrimage, and In Bound Organizers (ASPHURINDO) on 14th July 2017 in Menara Sentraya, Jakarta and with Moslem Association For Hajj and Umroh Service Republic of Indonesia (AMPHURI) in 24th July 2017 in Graha CIMB Niaga, Jakarta. Through this cooperation, CIMB Niaga Sharia provided its best banking products and services, including the Hajj Special Incentive Program, Debit Card for the Hajj Pilgrimage, Free Transfer Fee Services, Banknotes Reward, and Special Rate Program, MDR Special Program, Current Cash Management Services, Foreign Transactions exchange, both TT and bank notes (USD and SAR), SAR remittances to Saudi Arabia, Cash Management, and various consumer products designed specifically to meet the needs of the members of the Association Pandji P. Djajanegara, Sharia Banking Director said “through this partnership, there will be greater business development opportunities and we will continue to strive to provide the best possible service to our customers during their worship in the Holy Land”. July 24 Halal Bi Halal CIMB Niaga 1438 H Closing the Ramadhan and Ied Al-Fitr 1438H celebrations, and respecting the moment of forgiveness, as well as building good relationship among employees, CIMB Niaga conducted Halal Bi Halal 1438H on 24th July 2017 in the Ritz Carlton hotel, Pacific Place, Jakarta which was attended by 2,700 employees. Opening the event, all employees sang the CIMB Niaga Corporate Song and enjoyed a dance performance by CIMB Indonesia Talent. Dato Sri Nazir Razak, President Commissioner and Tigor M. Siahaan, CEO CIMB Niaga delivered speeches. Prayers for gratefulness for the achievements of CIMB Niaga were said by Ahmad Yani, Sharia Banking. To close the event, all BOC, BMC members, and employees enjoyed the performance of Indonesian artist Rendy Pandugo & GIGI Band. Halal Bi Halal closed by rewarding one employee with a holy trip to Mecca, the lucky winner being Yulimar, Operations & IT Staff. 34 Annual Report CIMB NIAGA 2017
  37. Supporting Business Review Corporate Governance Report July 26 Jalur Rempah To support promotional activities through integrated marketing efforts , CIMB Niaga sponsored Jalur Rempah, in cooperation with Kompas Group, the largest and most reputable media group in Indonesia. The event featured several activities, such as: Launching the Film “Banda, the Dark Forgotten Trail”. The film launch took place at a Press Conference on 26th July 2017 at XXI Lounge Plaza Indonesia which was attended by 250 media personnel. The main speakers were Jay Subiyakto, Reza Rahardian, Fransiska Oei, and Sheilla Timothy. CIMB Niaga and Jalur Rempah Nusantara watched the movie together with more that 150 CIMB Niaga staff. The Gala Premier of the Film was held on 31st July 2017 at XXI Epicentrum Kuningan and was attended by 800 invitees. Corporate Social Responsibility 29 30 Others Corporate Data Consolidated Financial Report Xtra Xpo CIMB Niaga held another Xtra Xpo on Saturday to Sunday, 29-30 July 2017, at Jakarta Convention Center, Senayan, Jakarta. The product display booth at Xtra Xpo was opened by Tigor M. Siahaan, CEO and Lani Darmawan, Consumer Banking Director and attended by more than 11,000 visitors, including for savings and loan/financing products such as saving accounts, credit cards, personal loan, Housing Loans (KPR), and Vehicle Loans (KKB) in collaboration with CIMB Niaga’s subsidiary, CIMB Niaga Auto Finance (CNAF). For Housing Loans, CIMB Niaga is marketing special offers of Hot Deal Loans with 0% interest rate applicable for the first 1 year only for special purchase of property developed by Sinarmas Land and Summarecon Serpong. In addition, special offers are also available for the purchase of property in certain Ciputra projects, such as free provisions, administration, fire insurance, and notary fees for the special purchase of Citra Gran and Citra Indah and special offers for the 24x installments of down payment (DP) starting from Rp4 million per month exclusively for the purchase of property in Citra Land Cibubur. CIMB Niaga is working with three major developers, namely Sinarmas, Ciputra and Summarecon. In addition, CIMB Niaga works in cooperation with business partners in automotive, travel, gadgets, and others. For KKB products through CNAF, people can enjoy 0% interest up to 5 years with a low down payment starting from 25%.The credit approval process can also be instantly completed and applicants need only bring their ID card and NPWP, with free administration fees, provisions, and all risk insurance. Visitors could also see their dream cars on display from a wide range of prominent car dealers, namely BWM, Mercedes Benz, Honda, Toyota, and Mazda at the exhibition. August 17 Indonesia Independence Day Celebration In commemoration of Independence Day, CIMB Niaga conducted Indonesia Independence Day Celebrations on 17th August 2017 at the CIMB Niaga office, Griya Niaga II, Bintaro Jaya, attended by the Bank Management Committee and more than 300 employees. The celebration highlighted corporate involvement in building nationalism among the Country’s employees. During the event, there were traditional games and music representing the spirit of unity and nationalism. Annual Report CIMB NIAGA 2017 As for attractive promos for debit cards, the Bank offers up to a Rp5 million discount by using Xtra Points special for the purchase of Samsung Galaxy S8 or iPhone 7. This program is only applicable for CIMB Niaga individual customers having CIMB Niaga Xtra/iB Xtra Mudharabah Savings Account, CIMB Preferred Account/iB Preferred Account Mudharabah, CIMB Private Banking Account/iB Private Banking Account Mudharabah, Business Savings/iB Mudharabah Business Savings, or ON Account Powered by XL Mudharabah. The Bank also offers crazy travel deals in which customers will receive cashbacks up to Rp2 million and 0% installments up to 24 months for flights to various interesting destinations. Visitors and customers also enjoyed live music performances from Raisa, Rossa, Ari Lasso, KLA Project, Geisha, RAN, as well as fun games, Cosplay and Walking Dead live act in the exhibition area. Not only in Jakarta, CIMB Niaga Xtra Xpo also presented at Atrium Grand City Mall Surabaya, 12-13 August 2017, offering similar attractive benefits. CIMB Niaga will always provide the best to draw public interest to be part of the CIMB Niaga family. “FORWARD> Your Business”. 35
  38. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management EVENT HIGHLIGHTS August September 24 26 Rapat Umum Pemegang Saham Luar Biasa (RUPS LB) The CIMB Niaga Extraordinary General Shareholder Meeting was conducted on 24th August 2017 at Graha CIMB Niaga, Jakarta and was attended by 100 stakeholders. Signing Memorandum of Understanding with Social Security Administration Body (BPJS) CIMB Niaga conducted the Signing of a Memorandum of Understanding with the Social Security Administration Body on 26th September 2017 at the Financial Hall, Graha CIMB Niaga, Jakarta. In the meeting, the shareholders approved the changes of the members of the Board of Directors and Commissioners, amendments to the Articles of Association of the Company, and revision of the approval of the Share Buyback Plan. The cooperation was aimed at supporting the Social Security Administration Body in expanding its network and system especially for workers who work out of the country, to make it easy for them to access the payment system and service. CIMB Niaga is part of CIMB Group has become one of the banks with a well established infrastructure and network, operating in 9 out of 10 ASEAN destination countries for Indonesian workers. The signing ceremony was opened by a welcoming speech from Tigor M. Siahaan, CEO of CIMB Niaga and Agus Susanto, President Director of the Social Security Administration Body. The event was attended by more than 100 invitees and media personnel. September 19 20 Indonesia Banking Expo (IBEX) 2017 The Indonesia Banking Expo (IBEX) 2017 was an annual expo conducted by the Association of National Private Banks and banks in Indonesia that cooperate with telecommunication companies who support banking technology. IBEX was held from 19th – 20th September 2017 at the Jakarta Convention Center, with several activities such as seminars with reputable speakers and exhibitions that presented innovations in technology and digital banking. The expo was opened by Agus Martowardoyo, Governor of the Central Bank and Wimboh Santoso, Chairman of the Board of Commissioners of the Financial Services Authority on 19th September 2017, and was attended by Joko Widodo, President RI on 20th September 2017. The expo had more than 2,000 visitors during the day. 36 26 The 62nd CIMB Niaga Anniversary In commemorating its 62nd anniversary, CIMB Niaga held celebrations on 26th August 2017 at every office across Indonesia. The agenda was opened by singing the CIMB Niaga corporate song, praying together, blowing out the candles, cutting the traditional Tumpeng along with remarks from the Management. In Graha CIMB Niaga Jakarta, the anniversary was attended by the Bank Management Committee and the Board of Commissioners. Tigor M. Siahaan, CEO CIMB Niaga also delivered a very warm message and encouraged the employees to always show positive energy, integrity, professionalism and give their best. “FORWARD > Together”. Annual Report CIMB NIAGA 2017
  39. Supporting Business Review Corporate Governance Report October 01 The Color Run presented by CIMB Niaga 2017 Corporate Social Responsibility Others Corporate Data 30 The Color Run presented by CIMB Niaga 2017 , the “Dream World Tour” was conducted on 1st October 2017 at Gelora Bung Karno, Senayan, Jakarta and was participated in by 12.458 runners. The fun run was part of CIMB Niaga’s campaign for a healthy lifestyle in Indonesia, in accordance with CIMB Niaga’s new brand promise “FORWARD > your healthy life style”.   As part of CIMB Niaga’s CSR activities, CIMB Niaga gave donations of Rp150 million to the Disabled Children Counselling Foundation (YPAC) and a Double Decker Bus that was handed over by Tigor M. Siahaan, CEO, to Budi Kaliwono, President Director of Trans Jakarta as support for tourism in Jakarta. During the event, all runners were catered for by Food Zone that sold a variety of foods in cooperation with CIMB Niaga merchants and employees. Dream Zone presented the #Kejar Mimpi activities as part of the social campaign, and Fun Zone presented several Photo Booths enlivened with interesting features. Related to its theme, this year participants could enjoy the new rides of the color foam zone. CIMB Niaga always supports customers in various aspects of life to move forward to realize stakeholder’s dreams. Consolidated Financial Report Launching CIMB Niaga 14041 – CIMB Niaga Yogyakarta As a commitment of CIMB Niaga to continuously improve its services to customers, CIMB Niaga launched another new facility, CIMB Niaga 14041 (phone banking and video banking) on 30th October 2017 at CIMB Niaga Yogyakarta. Similar facilities were inaugurated earlier in the year at CIMB Niaga, Gajah Mada, Jakarta. The event was opened by a welcoming speech from Tigor M. Siahaan, CEO CIMB Niaga. The event was also attended by Haryadi Suyuti, Mayor of Daerah Istimewa Yogyakarta, Fikri Ausyah, representative of the Financial Services Authority, the Directors of CIMB Niaga, and members of the media. During the event, there was a lighthearted talkshow discussing the integrated service of CIMB Niaga 14041. A donation of Rp100 million was handed over by Lani Darmawan, Consumer Banking CIMB Niaga to Angkie Yudistia, Chairman of the Foundation of the Disabled. There was also a tour of the facilities. CIMB Niaga actively plays a role in empowering the regional economy by providing better service and opening up new employment for the disabled in the Yogyakarta and Central Java areas to become CIMB Niaga 14041’s staff members. November 03 28 Exhibition Jalur Rempah As part of Jalur Rempah activities, Jalur Rempah Nusantara and CIMB Niaga conducted an exhibition from 3rd – 28th November 2017 at the National Museum of Indonesia, Jakarta. The exhibition was opened on 3rd November, 2017 by Luhut Binsar Panjaitan, the Coordinator Minister of Maritime and Fisheries who offered welcoming remarks, and Enggartiasto Lukito, Minister of Trade, the Republic of Indonesia ; Lukito Wanandi, President Director of Jalur Rempah Nusantara, and Tigor M. Siahaan, CEO CIMB Niaga. More than 200 persons attended. During the exhibition, CIMB Niaga also opened a corporate booth to provide visitors with banking products and services. The exhibition educated people about the history of the Nusantara Spice Road, that showcases Indonesia as being a great and strong nation from olden times until the present day. The one month exhibition was attended by more than 10,000 visitors. During the event, CIMB Niaga also held “A Night at the Museum” as part of the #KejarMimpi movement on 2nd November 2017, by presenting Maudy Ayunda, Brand Ambassador, Fransiska Oei, Corporate Secretary, Compliance and Legal Director CIMB Niaga, and Nia Dinata, Film Director. The event was attended by more than 150 students. Annual Report CIMB NIAGA 2017 37
  40. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management EVENT HIGHLIGHTS November 09 Customer Gathering for Sharia Banking Socialization As part of building engagement with and giving integrated information to customers on sharia regulations , products and business opportunities, CIMB Niaga conducted a Sharia Banking Customer Gathering on 9th November 2017 at The Ritz Carlton Jakarta which was attended by more than 100 prime customers from all business segments as well as media personnel. Pandji P. Djajanegara, Sharia Banking Director opened the event, and continued with a talkshow and Q&A session with panelists, Rusdi Dahardin, Deputy Chief of Sharia Banking CIMB Niaga, Dr. Muhammad Syafii Antonio MEc, Sharia Expert, Wahyuni Bahar, Legal Advisor and Ester Siahaan, a prime customer. CIMB Niaga also invited Prof. Muliaman D. Hadad Ph.D, the Chairman of the Sharia Banking Society to deliver the keynote speech. The gathering was closed by having lunch together. 29 10 12 CIMB Niaga Namaste Festival 2017 As part of CIMB Niaga’s campaign, “FORWARD > your healthy lifestyle” for all stakeholders, especially CIMB Niaga customers, CIMB Niaga cooperated with Namaste by conducting the CIMB Niaga Namaste Festival 2017 from 10th – 12th November 2017 at The Sultan Hotel and Residence. The CIMB Niaga Namaste Festival is the biggest international yoga festival in Jakarta and in 2017 it became the 9th such festival in Indonesia. The event started with the CIMB Niaga Namaste Road to more than 10 cities across Indonesia including Jakarta, Bandung, Cirebon, Bogor, and Surabaya and reached more than 2,000 participants from June until November 2017. The CIMB Niaga Namaste Festival 2017 was opened by a press conference on 10th November 2017 at the Sultan Hotel and was attended by Tigor M. Siahaan, CEO; and Lani Darmawan, Consumer Banking Director CIMB Niaga; Anita Boentarman, Chairman of Namaste, a representative from the Ministry of Education and Culture, more than 100 media personnel, as well as international & national yoga teachers.   During the three day event, there were 4 yoga podiums to facilitate 9,835 participants along with prominent international and national yoga teachers. Also featured were the CIMB Niaga Lounge for the prime customers, and a Bazar Area promoting CIMB Niaga products and services, where people spent their time buying healthy food, yoga equipment and merchandise from 71 tenants. CIMB Niaga Auto Finance (CNAF) also had a booth to promote its car selling programs. Launching of The New Go Mobile CIMB Niaga Providing an innovative user-friendly application, on November 9th 2017 at The Ritz Carlton Pacific Place Jakarta, CIMB Niaga launched of The New Go Mobile which was also took on the tagline “No More No, Just Go Mobile”. The New Go Mobile Launching Event was opened by Tigor M. Siahaan, CEO CIMB Niaga. In this digital era, most customers expect ease of operation, and Go Mobile introduced several new features, such as finger print access, promotion code, and bonuses. The event was attended by more than 200 invitees and media personnel, with Saykoji, a digital banking icon, successfully entertaining the audience. 38 Annual Report CIMB NIAGA 2017
  41. Supporting Business Review Corporate Governance Report December 05 15 Corporate Social Responsibility Others Corporate Data 06 Consolidated Financial Report Country Townhall - 4th Quarter 2018 The Country Town hall of the 4th Quarter of 2018 was held on 6 December 2017 at Floor M , Graha CIMB Niaga, Jakarta and was attended by approximately 300 CIMB Niaga senior leaders. CIMB Niaga Indonesia Open Aquatic Championship 2017 CIMB Niaga cooperated with the Committee of the Indonesia Swimming Federation, by sponsoring “CIMB Niaga Indonesia Open Aquatic Championship 2017” held from 5th–15th December 2017 in the Aquatic Stadium, Gelora Bung Karno, Senayan, Jakarta. During the townhall, Tengku Dato’ Sri Zafrul Tengku Abdul Aziz as CEO of CIMB Group gave a presentation on the performance of CIMB during the previous quarter which also conveyed the good performance of CIMB group and CIMB Niaga and was followed by a Q & A session to provide further explanations and an establish two-way communication between CIMB Group and CIMB Niaga management.The Town Hall was closed by a networking session and dinner. A Press Conference was conducted on 4 December and the Championship was opened on 5th December 2017 by Jusuf Kalla, Vice President of the Republic of Indonesia. Also in attendance were the Minister of Youth and Sport Affairs, the Minister of Public of Works and Housing, the State Secretariat and CIMB Niaga Directors : Tigor M. Siahaan, CEO; Wan Razly, Strategic & Finance Director; and Pandji P. Djajanegara, Sharia Banking Director.   The CIMB Niaga Indonesia Open Aquatic Championship 2017 is part of the Road to the ASIAN GAMES 2018, which was a place to prepare Indonesia’s tough and talented swimmers athletes to compete in the ASEAN Games championship. During the event, CIMB Niaga opened a corporate booth for sales of banking products and Food Zone, where several CIMB Niaga staff acted as food sellers. As appreciation for the best swimmers, CIMB Niaga awarded the Xtra saving of CIMB Niaga to 28 best swimmers. 19 Christmas & Year End Staff Gathering CIMB Niaga Christmas and Year End Staff Gathering 2017 was held on 19th December 2017 at the Ritz Carlton Hotel, Pacific Place, Jakarta, attended by 1,900 employees. Tigor M. Siahaan, CEO of CIMB Niaga delivered the opening speech to greet all employees and showed appreciation for the great performance accomplished in 2017. During the event, Angel Pieters and the KOTAK band entertained the audience. Throughout the event, CIMB Niaga gave donations to several foundations as part of Corporate Social Responsibility to stakeholders. The reward of a Holy Trip was also given to a lucky employee. 14 15 CIMB Niaga Training Sharia Banking Media CIMB Niaga Sharia Banking training for the media was conducted from 14th – 15th December 2017 at CIMB Niaga Training Center, Gunung Geulis and opened by Pandji P. Djajanegara, Sharia Banking Director CIMB Niaga. For two days, the media training event delivered an information about sharia banking in general and CIMB Niaga Sharia products. Annual Report CIMB NIAGA 2017 39
  42. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Awards and Certification Annual Report Award 2016 Best Private Finance Listed Category Cooperation between OJK and Ministry of SOE , Bank Indonesia, Directorate General of Taxation, National Committee of Governance Policy, PT Bursa Efek Indonesia and Indonesian Institute of Accountants Indonesia Marketing Award 2017 The Best Innovation in Marketing Marketing Magazine Nusantara CSR Award • Category of Educational Quality Improvement - CIMB Niaga Scholarship Program • Category of Community Economy Improvement Particularly Young Entrepreneurs - BUTIK Program (Outstanding Scholarship of Creative Industry Technology) Indonesia Green Awards Environmental Conservation and Biodiversity Award The Latofi School of CSR The Latofi School of CSR Green Office Competition Award 2017 First Winner Category A Award Graha Niaga Tata Utama (GNTU) 40 The IICD Corporate Governance Conference & Award The Best Overall Indonesian Institute for Corporate Directorship (IICD) Annual Report CIMB NIAGA 2017
  43. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Yuk Nabung Saham Goes to Campus Analyst Choice of Issuer Award in Yuk Nabung Saham Program 2017 Others Corporate Data Consolidated Financial Report PR Indonesia Awards 2017 Category of Media Relations Sub Category of Private National Company Tbk Association of Indonesia Securities Analysts & CSA Institute PR Indonesia Magazine AsiaRisk Award 2017 House of the Year, Indonesia Indonesia Corporate Secretary Award 2017 Top 5 GCG in Banking Sector Indonesia Best Mutual Fund Award (IBMFA) 2017 Best Perform in Custodian Bank AsiaRisk Warta Ekonomi Warta Ekonomi Straight Through Processing (STP) Award USD Clearing with STP Rate 98% Standard Chartered Bank Annual Report CIMB NIAGA 2017 Silaknas IAEI 2017 Best Business Unit in Sharia Business Unit category The National Working Gathering (Silaknas) and the Association of Indonesian Islamic Economists (IAEII) 41
  44. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management AWARDS AND CERTIFICATION Moneygram Agent Conference Best Marketing of The Year & Teller of the Year Indonesia Most Innovative Business Award 2017 The Winner of Indonesia Most Innovative Business Award 2017 MoneyGram Award 2017 Warta Ekonomi Infobank Banking Service Excellence Awards 2017 • Best Performance of SMS Banking •3rd Overall Digital Branch • Second Best Performance of Overall Account Opening Services Through Web/App Infobank Magazine Indonesia Best Banking Brand Award 2016 Consumer Choice, Best Digital, Best Service, Most Reliable and Best Performance Title Warta Ekonomi 42 Indonesia Best Corporate Reputation Award Warta Ekonomi Indonesia Sharia Finance Awards (ISFA) 2017 The Winner of Indonesia Sharia Finance Award 2017 for The Best Digital Sharia Unit Bank Anugerah Sharia Republika 2017 Bank Sharia dengan Kinerja dan Inovasi terbaik Warta Ekonomi Republika Daily Newspaper Annual Report CIMB NIAGA 2017
  45. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Social Business Innovation Award Green Banking Award Warta Ekonomi Annual Global CSR Summit and Awards 2017 Excellence in Provision of Literacy & Education Award The Pinnacle Group International Others Corporate Data Consolidated Financial Report Islamic Finance Award (KARIM Award 2017) The Most Expanding Financing Sharia Unit asset > 1.5T Indonesia Prestige Brand Award (IPBA) 2017 2nd Winner of Most Often Used Brand for National Private Bank category Karim Consulting Indonesia Warta Ekonomi Indonesia Country Awards Programme 2017 for Retail Financial Services CIMB Niaga Platinum Credit Card - Credit Card Product of the Year The Asian Banker Baznas Award 2017 The Best CSR Special Award Baznas Annual Report CIMB NIAGA 2017 Top CSR Award Nawacita V Award – Financial Literation for Students Bussiness News Indonesia 43
  46. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management AWARDS AND CERTIFICATION Corporate Image Award 2017 Tempo Magazine 44 Housing Estate Awards 2017 Most Innovative Bank on Mortgage Products Indonesia Digital Innovation Award 2017 The Winner of Indonesia Digital Innovation Award 2017 Category : Bank BUKU 4 Warta Ekonomi Warta Ekonomi Infobank Awards 2017 “Very Good” Award for Category of Bank with “Core Capital Rp30 Trillion and Up” 2017 Quality Recognition Awards STP Award for U.S. Dollar Clearing with STP Rate 98.7% Infobank Magazine JP Morgan STP Award for USD Clearing with STP Rate 95% The Most Expanding Financing Sharia Unit asset > 1.5T Indonesia Banking Awards 2017: • The Best Bank in Digital Services • The Best Bank in Retail Banking Services • The Best Sharia Business Unit Bank of New York Tempo Magazine Annual Report CIMB NIAGA 2017
  47. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Infobank 6 Sharia Awards 2017 “Very Good” Financial Performance Sharia 2016 Triple A - Asset Asian Awards 2017 • Best Derivatives House of the Year, Indonesia • Best Structured Products House, Indonesia Infobank Magazine The Asset th The Asset Triple A Treasury, Trade & Risk Management Awards 2017 • Best Transaction Bank in Indonesia • Best Cash Management Bank in Indonesia • Best Supply Chain Solutions form Manufacturing Industry in Indonesia • Best Supply Chain Solutions for Consumer Goods Industry in Indonesia • Best e-Solutions Partner for e-Commerce Industry in Indonesia Global Finance The Asset Mastercard Innovation Forum 2017 Best Cross Border Program Indonesia Mastercard Annual Report CIMB NIAGA 2017 Global Finance Best Trade Finance Providers Awards 2017 Best Trade Finance Provider in Indonesia 7th Annual Net Promoter Customer Loyalty Award Mobile Banking Category, NPS : Good Swanetwork 45
  49. SUCCESSFUL PEOPLE NEVER WAIT FOR OPPORTUNITY , THEY SIMPLY CREATE IT Batik Parang As one of the oldest batik motifs in Indonesia, the Parang was a proscribed and prohibited motif that only reserved for the member of royal courts in the era of Mataram Kartasura. The patterns of Parang could be translated as waves in the sea, symbolizing the power of sustainable and never give up spirit.
  50. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Report of the Board of Commissioners To be at the forefront of digital banking , we continue to support the intensification of the application of information technology in business processes and the automation of manual processes so that CIMB Niaga is abe to serve our customers well with high intensity. Dear Shareholders, In 2017, the world economy finally enjoyed its first synchronized upswing since the Global Financial Crisis and saw growth averaging at 3.7%, markedly higher than the 3.2% in 2016. There were improvements in investment, trade and industrial production. Growth in the ASEAN economies accelerated to an average of 5.2%, compared with 4.8% in 2016, while Indonesia’s economy expanded by 5.1% in 2017, up from 5.0% the year before. Against this favorable backdrop, CIMB Niaga had a commendable year, with pretax profit rising by 45.7% year-on-year, even though asset quality remained a challenge. We continued to strengthen the foundations of our operations by implementing many new initiatives, especially in the area of credit underwriting and technology. The Board of Commissioners is pleased to report on the performance of the Board of Directors, supervision on the implementation of strategic policies, future business prospects and corporate governance. 48 Annual Report CIMB NIAGA 2017
  51. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Dato ’ Sri Nazir Razak President Commissioner Annual Report CIMB NIAGA 2017 49
  52. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management REPORT OF THE BOARD OF COMMISSIONERS ECONOMIC CONDITIONS We entered 2017 with concerns over policy unpredictability , trade protectionism and more divisive politics emerging across the world. Thankfully, as the year progressed, our worst fears about the Trump administration’s policies, Brexit and geo-political tensions did not materialize. Instead, the global economy and trade gathered steam, financial markets were buoyant and the operating environment was favorable across ASEAN. Indonesia’s solid growth came on the back of a surge in investments in infrastructure, improvements in trade and a recovery in key commodity prices. Inflation rose to 3.6% from 3.02% in 2016, but the Rupiah was relatively stable, trading at an average rate of 13,360 per US$1. The prospects for the Indonesian economy have certainly improved now that the Government has made significant actual and planned progress in tackling infrastructure bottlenecks that have long constrained the country’s growth potential. Foreign investment is also on the rise, attracted by businessfriendly government policies, political stability and predictable economic policies. EVALUATION OF BOARD OF DIRECTORS’ PERFORMANCE In the opinion of the Board of Commissioners, the Board of Directors performed well in managing CIMB Niaga in 2017. Our assessment considers several objective indicators, such as a 10.2% growth in total assets to Rp266.3 trillion on the strength of a 2.8% increase in loans to Rp185.1 trillion, while customer deposits increased by 4.8% to Rp189.3 trillion. Furthermore, net income showed a significant growth of 43.0% to Rp3.0 trillion, translating into an increase of Rp43.89 in earnings per share to Rp118.49, compared with Rp74.6 in 2016. On a more subjective basis, we do sense that the Board of Directors works well as a leadership team, despite being a mix of people promoted internally and 50 hired externally. The fact that the majority of the board are women makes us quite unique, especially in the banking industry, but it seems to be serving us well. The Board of Commissioners is pleased that the Board of Directors successfully implemented a prudent loan growth strategy in the face of extremely tight competition and after enduring relatively high NPLs. CIMB Niaga’s loan portfolio stood at Rp185.1 trillion, up by 2.8% year-on-year, supported by Indonesia’s improved economy, and was mostly driven by the loan growth in Corporate Banking and SME Banking segments. In our hire purchase loan portfolio, we saw a tactical 40.8% shrinkage, excluding which the group’s total loan growth would have been 6.7%, compared with 8.4% of the industry as a whole. Our NPL ratio improved, but only marginally to 3.75% from 3.89% in 2016. Third-party funds saw outstanding growth as indicated by the rise in the CASA ratio to 52.6% over the previous year’s 50.8%, significantly enhancing the Bank’s funding balance. Our CAR also improved to 18.60% from 17.96% a year earlier. We are also appreciative of the Board of Directors’ efforts in driving CIMB Niaga’s milestone upgrade from a BUKU III bank to a BUKU IV bank, the highest category for banks with the most complete business activities and core capital above Rp30 trillion. We made history as the first bank to “graduate” into the highest category. As at end-2017, CIMB Niaga remained Indonesia’s fifth-largest bank by asset, with total assets of Rp265.7 trillion. Although we are proud of this “league” position, the pace of growth of others means that we may drop a notch this year. We have advised the Board of Directors that we must continue to grow at our chosen pace and not take on undesired levels of risk just to defend market share. Annual Report CIMB NIAGA 2017
  53. Supporting Business Review Corporate Governance Report Corporate Social Responsibility SUPERVISION OF STRATEGY EXECUTION We constantly supervise the execution of strategies by the Board of Directors . In 2017, the Board of Commissioners supervised the implementation of the five-pillar strategic policy that concentrated on 1) focus on core competencies, 2) increase in CASA, 3) cost management discipline, 4) capital preservation and balanced risk culture, and 5) utilization of information technology. These five pillars have been key to strengthening the foundations of the firm. In carrying out its supervisory duties, the Board of Commissioners provides the Board of Directors with the necessary support, input and recommendations. In 2017, these recommendations included more prudent credit processes, better governance, higher integrity to eliminate frauds, agility and flexibility to cope with the digital challenges, asset recovery, and input relating to increasing low-cost funds and revenues through the development of quality services across all business segments as well as the enhancement of service features, such as mobile banking and internet banking. During the year under review, the Board of Commissioners also provided recommendations to improve efficiency and cost discipline to further reduce the Bank’s cost-to-income ratio. We instituted new governance processes for procurement and conducted in-depth analyses of our cost structures. In a bid to be at the forefront of digital banking, we continue to support the intensification of the application of information technology in business processes, and the automation of manual processes to enable our staff to focus more on serving our customers, and to mitigate risks, even in mundane tasks. Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report OPINION ON BUSINESS PROSPECTS AS PREPARED BY THE BOARD OF DIRECTORS In 2018, the growth in global and domestic economies is expected to strengthen. The International Monetary Fund has raised its global growth forecast to 3.9% for 2018 and 2019, and we expect ASEAN to grow by 5.1%, with Indonesia at 5.3%. The Board of Commissioners believes that the business prospects as stated in the Bank Business Plan (Rencana Bisnis Bank or RBB), which is prepared by the Board of Directors, have properly considered the various assumptions in global and domestic growth risks. We are optimistic that CIMB Niaga will perform even better in 2018 based on, among others, our assessments of improving asset quality and lower impairment of loss provisioning. The expected continuing improvement in economic conditions as well as the adoption of various measures, including the five-pillar strategic policy, will provide the Bank with more opportunities to grow in terms of asset and revenue. The outlooks for the consumer and SME segments are especially promising. HUMAN RESOURCES Proper and sustainable human resource management is key in driving CIMB Niaga towards achieving its vision and mission. We believe that the Board of Directors has established effective human resources development initiatives, with due consideration in priority areas, including organizational planning and talent development. Furthermore, we fully support the internalization of the Bank’s values and the risk awareness culture programs. Conducted intensively and consistently, these efforts play a big role in building human resources with high integrity and professionalism. 51
  54. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management REPORT OF THE BOARD OF COMMISSIONERS OPINION ON GOOD CORPORATE GOVERNANCE CIMB Niaga has consistently implemented the principles of Good Corporate Governance (GCG) in order to maintain alignment and balance between the interests of the Bank and those of its stakeholders, all towards achieving an optimal and sustainable performance. The implementation of the GCG principles enables the creation of mechanisms that organize relationships between the Bank and its stakeholders in a transparent manner. In 2017, we believe that the Board of Directors was successful in effectively implementing the GCG, not only based on the standards and benchmarks as set by regulators, but also based on global measures. The GCG at CIMB Niaga includes, but is not limited to, ensuring 1) protection of shareholders’ rights, 2) equal treatment of all shareholders, 3) role of stakeholders, 4) transparent, complete, accurate and timely disclosure of information, and 4) responsible implementation of the duties of the Boards of Commissioners and Directors. On risk management, CIMB Niaga has implemented the Enterprise Wide Risk Management (EWRM) framework on business activities and decision-making. We believe the Board of Directors has been successful in implementing the EWRM as an ongoing initiative, with the support of an adequate risk management infrastructure. In 2017, the Board of Directors carried out risk management processes at CIMB Niaga, which covered 1) identification of significant risks in the Bank’s business activities, 2) measurement and aggregation of risk using adequate methodology, 3) management, control and ongoing risk reporting to evaluate and manage risk, and 4) assurance that risk exposure is in line with the Bank’s risk appetite. 52 With the assistance from the Risk Oversight Committee, we continue to monitor the implementation of risk management initiatives undertaken by the Board of Directors in its efforts to mitigate the Bank’s key risk factors as well as safeguard the long-term sustainability of the Bank. For our work in ensuring good corporate governance, CIMB Niaga has won several awards, including 1st Winner Annual Report Award 2016 in the Private Finance Listed Category, Best Overall at the 9th IICD Corporate Governance Award 2017, and Top 5 GCG Issues on Banking Sector at the Indonesian Corporate Secretary Award 2017. OPINION ON IMPLEMENTATION OF WHISTLEBLOWING SYSTEM CIMB Niaga operates a Whistleblowing System (WBS) as a manifestation of the Bank’s overall internal controls in every aspect of its business activities. The Board of Commissioners, with the assistance of the Audit Committee, plays a role in monitoring the proper implementation of the WBS. The Bank’s reporting mechanisms under the WBS at CIMB Niaga have been gradually improved. The Board of Commissioners, together with the Audit Committee and other units, conduct in-depth evaluation and follow-up actions on the reports received. ASSESSMENT ON COMMITTEE PERFORMANCE AND FREQUENCY AND METHODS OF GIVING ADVICE TO THE BOARD OF DIRECTORS The Board of Commissioners is of the opinion that, in 2017, the Audit Committee, Risk Monitoring Committee, Nomination and Remuneration Committee, and the Integrated Corporate Governance Committee ably performed their respective duties and responsibilities, as evidenced by, among others, the recommendations given by each committee to the Board of Commissioners during our meetings. Annual Report CIMB NIAGA 2017
  55. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Based on the recommendations of the Board ’s committees, the Board of Commissioners provided advice and guidance to the Board of Directors during joint meetings of the Board of Commissioners and Board of Directors. In 2017, the Board of Commissioners held seven meetings and five joint meetings with the Board of Directors. Over the course of the year, the Board of Commissioners submitted important recommendations relating to the strategic policy implementation by the Board of Directors and other recommendations relating to the Bank’s management. These include guidance in the preparation of the RBB, recognizing now that CIMB Niaga is in the BUKU IV category and is, therefore, expected to contribute more to the Indonesian banking industry. outgoing Ahmad Zulqarnain Onn. We would like to thank Ahmad Zulqarnain for his services to the Board. As at end-2017, the composition of the Board was as follows: • President Commissioner: Dato’ Sri Nazir Razak • Vice President Commissioner: Glenn Muhammad Surya Yusuf • Independent Commissioner: Zulkifli M. Ali • Independent Commissioner: Pri Notowidigdo •Independent Commissioner: Armida Salsiah Alisjahbana • Independent Commissioner: Jeffrey Kairupan • Commissioner: David Richard Thomas • Commissioner: Tengku Dato’ Sri Zafrul Tengku Abdul Aziz CORPORATE SOCIAL RESPONSIBILITY CIMB Niaga’s success in executing the RBB depends on our engagements with both internal and external stakeholders. The Board of Commissioners appreciates the implementation of Corporate Social Responsibility (CSR) programs, which help to improve the welfare of the communities that we serve. APPRECIATION AND CLOSING WORDS With the ongoing implementation of various strategies, the Board of Commissioners is optimistic of CIMB Niaga’s growth prospects in 2018. At the same time, we will continue to provide support for the efforts made by the Board of Directors and staff in creating performance improvement. Our key advice to the Board of Directors and staff is to focus on the five strategic pillars in order to achieve sustainable performance. The Board of Commissioners is of the opinion that the performance of CIMB Niaga Peduli for 2017 was in accordance with the plans and direction given by the Board. Going forward, the strategy will be to further enhance the activities aimed at improving the communities’ well-being. CIMB Group has taken a big step in this direction, with our commitment to spend 1% of the Group’s pretax profit on CSR, along with other initiatives that will be gradually rolled out across the region. CHANGES IN BOARD COMPOSITION The Extraordinary General Meeting of Shareholders (EGMS) of CIMB Niaga held on 24 August 2017 decided on changes to the composition of the Board of Commissioners. The EGMS approved the appointment of Tengku Dato’ Sri Zafrul Tengku Abdul Aziz as Commissioner of CIMB Niaga, replacing the Annual Report CIMB NIAGA 2017 We would like to thank our shareholders for their support and trust. We would also like to extend our gratitude to our business partners, regulators and all other stakeholders. 26 March 2018 Dato’ Sri Nazir Razak President Commissioner 53
  56. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Board of Commissioners seated from left to right Dato ’ Sri Nazir Razak President Commissioner 54 Glenn M. S. Yusuf Vice President Commissioner Annual Report CIMB NIAGA 2017
  57. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report standing from left to right Zulkifli M . Ali Jeffrey Kairupan Pri Notowidigdo David Richard Thomas Independent Commissioner Independent Commissioner Independent Commissioner Armida S. Alisjahbana Independent Commissioner Tengku Dato’ Sri Zafrul Tengku Abdul Aziz Commissioner Commissioner Annual Report CIMB NIAGA 2017 55
  58. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Report of the Board of Directors CIMB Niaga continues to expand its franchise in the area where we have established competitive advantages and strong value prepositions as well as focus on developing infrastructure to satisfy the need of our customers . Dear Shareholders, We are pleased to announce our continued improving financial performance despite the soft economic environment in 2017. We are committed in delivering our brand promise “FORWARD” which reflects serving our customers from the heart and positioning CIMB Niaga to become the leading digital bank in Indonesia. Our culture of innovation and services can be seen from our innovative products offering and delivering service excellence at all our touchpoints. We continue to grow our customer base, improve our risk culture, and maintain our efficiency. 2017 was marked with a special milestone for the bank as well. CIMB Niaga was the first bank given the recognition in Indonesia by Financial Services Authority (OJK) that graduated to Business Activities of Commercial Banks (“BUKU”) 4, the highest bankcategory in terms of core capital (Tier-1) of more than Rp30 trillion based on OJK regulations. This achievement is accompanied by the success of maintaining our position as Indonesia’s fifth largest bank by assets, with total assets of the Bank reaching Rp266.3 trillion as of December 2017. 56 Annual Report CIMB NIAGA 2017
  59. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Tigor M . Siahaan President Director Annual Report CIMB NIAGA 2017 57
  60. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management REPORT OF THE BOARD OF DIRECTORS MACROECONOMY 2017 Global economic activities have shown positive growth in 2017 fueled by recovery of world commodity prices . The United States of America has recorded a strong rebound from 1.5% in 2016 to 2.6% in 2017; The Euro-Zone posted 2.5%, its best growth rate in the last 10 years, and China has grew 6.9%, well above the official target of 6.5%. On commodity pricing, the average monthly crude oil and coal has gone up 25% and 34%, respectively to USD54.3 per barrel and USD88.4 per tonne from 2016. These recoveries have generated positive impact on the domestic economy. The economy grew by 5.1%, or slightly better than 2016 but lower than initial Bank Indonesia’s target of 5.2%. In recognition of the improving economy, global rating agencies such as Standard & Poor’s, Moody’s, and Fitch have upgraded Indonesia’s sovereign rating to Investment Grade Status, potentially bolstering foreign investment and capital market activities. Though the economy is improving, the banking industry continues to show moderate performance. The industry recorded an 8.2% increase in credit growth, less than OJK’s projection of 10%-13% growth. This is partly due to political uncertainty as the market awaits the outcome of the 2018 regional elections in 171 districts/provinces. In addition the slower credit growth, and the fact that Industry’s NPL ratio remained at 2.6%, suggests that industry’s sentiment still prioritizes strict underwriting standard over ease of credit disbursement. 58 CIMB NIAGA PERFORMANCE IN 2017 Implementation of Strategic Policies In order to navigate the challenging economic environment, the bank continues to implement 5 core pillars : 1) Playing to our strengths, 2) Expanding our CASA (Current Account and Savings Account) franchise, 3) Maintaining our cost discipline, 4) Focusing on risk management culture, and 5) Leveraging technology and digital platforms. Playing to Our Strengths The bank continues to expand its franchise in the area where we have established competitive advantages and strong value prepositions. In Corporate Banking segment, we continued to focus on expanding Tier-1 customers and improve infrastructure to satisfy the need of our customers. Syndicated loans recorded 38.9% growth to Rp20.7 trillion. Working capital loans contributed of 53.2% to total Corporate Banking loans in 2017, meanwhile the remaining 46.8% contributed from investment loan. Commercial Banking continued its recalibration process to improve asset quality and customer selections. Through the implementation of this strategy, commercial loans increased by Rp2.1 trillion or 6.9% to Rp31.9 trillion in 2017 from Rp29.8 trillion the previous year by targeting selective industries in selected regions. With these repositioning in Corporate and Commercial businesses, we can see the rebalancing of our wholesale portfolio in favor of higher credit quality loans. This would improve the risk profile of the bank, with expected lower credit charges for the future. Annual Report CIMB NIAGA 2017
  61. Supporting Business Review Corporate Governance Report Corporate Social Responsibility After a through deliberation of strategy and execution alignment , we have exited Micro segment business and remained focus to grow on SME (Small and Medium Enterprises) segment. The SME segment gained traction by recorded loan growth of 4.3%. As this segment represents an integral part of Indonesia economy landscape, we are committed and focus to support the growth of this segment through internal collaboration, referral system cross-selling activities and digital preposition. In December 2017, we have soft-launched an internet banking solution for SME customers, offering a secure and convenient way to conduct banking transactions for business customers. Our continued efforts in recalibrating our auto-loan portfolio and focusing on premium segment have yielded good result, bringing down the portfolio gross NPL ratio from 3.2% to 1.3%. We have seen the average ticket size of our auto-loan has increased by 40% compared to last year. However, this strategy also resulted in reduction of auto-loan portfolio from Rp14.81 Trillion in 2016 to Rp8.72 Trillion, bringing the overall Consumer portfolio to Rp48.64 trillion, a 6.7% reduction compare to last year. On the other hand, our mortgage business is gaining momentum in acquiring market shares to 6.6% from 6.4% a year earlier. We managed to record growth of the mortgage loan portfolio with a 12.0% increase to Rp27.0 trillion. In addition, we also demonstrated an excellent achievement in demand for sharia mortgages, where the Sharia mortgage portfolio grew by 103.1% to Rp5.4 trillion, from Rp2.7 trillion in 2016. Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report Overall, Sharia Banking recorded an outstanding achievement, where the volume of financing increased by 63.5% in 2017 compared to 2016. This growth was mainly driven by the corporate segment, which increased by 77.1% in financing. Meanwhile, customer deposits in Sharia Banking in 2017 recorded an 87.3% growth compared to 2016. The Sharia business segment continues to gain positive momentum – now making up 8.7% of the Bank’s total loans from 5.6% in the previous year. This achievement pointed out our success in developing the Dual Banking Leverage Model, the first of its kind in the country. We are proud to be recognized as the Best Performance and Innovation Sharia Bank by Republika in 2017. Expanding Our CASA Franchise Our successful full-court press strategy on expanding our CASA franchise has raised our CASA to 52.6% bringing bankwide cost of fund to 4.1%. This is very important as this strategy allows us to improve our customer selections and increase our credit quality. Massive efforts have been directed to entice more transactions, increase stickiness and share-of-wallet; We launched the New Go Mobile, a mobile banking service that gives retail customers easy access --any time and any place-- to their portfolios at CIMB Niaga through their smart phones. The improved and upgraded version of Go Mobile is expected to meet the needs of customers who are increasingly embracing digital banking. We are excited to continue innovating Go Mobile with a list of new features and enhancements available that we have planned for 2018. For non-retail consumers we have offered an internet banking platform for all segments covering SME to large corporate. Additionally, to penetrate growing demand, we launched a youth savings product, called the Indie Account, which targeted the growing segments of teenagers that like to express themselves. 59
  62. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management REPORT OF THE BOARD OF DIRECTORS Maintaining Our Cost Discipline We also successfully managed operating costs , which increased by only 2.1%, lower than the inflation rate of 3.6%. This was achieved by applying efficiency measurement, simplifying working processes, maximizing effective use of proprietary premises for office space, reviewing branch office operations and re-aligning budgets for promotional and advertising campaigns, while also strongly encouraging development of our more efficient digital banking network and improving our alternative channels. Focusing on Risk Management Culture We continue to put emphasis on building “Risk and Compliance” culture as we are putting significant KPI weightings for all units. The Bank has implemented Enterprise Wide Risk Management framework that guide our business activities and decision making processes. Conscious efforts have been taken to strengthen RCU (Risk Control Unit) and Quality Assurance roles in each function within the organization. The bank is committed to enhance and implement credit rating framework for all corporate and commercial clients. While focusing on improving our processes and strengthening our model within our credit factory, we do so in keeping the customer experience in mind through increasing turn-aroundtime. Leveraging Technology and Digital Platforms We believe our sophisticated customers demand seamless and secure transactions. The ‘1Platform Kita Satu’ program provides better customer experience across the branch and digital touchpoints and networks for all stakeholders and is expected to catapult us to the forefront of digital banking service. 60 The New Go Mobile offers various innovations, starting with the modern look of new user interface, finger-print login feature for a quick and easier access into the apps, 1 device 1 phone number feature for more secure access, share transaction receipt directly to the beneficiary via chat messenger apps such as WhatsApp, LINE, SMS, and e-mail, download account statements, promo codes to participate in Go Mobile marketing programs and many other innovations that make it easier to transact via their smartphones. In keeping with our commitment to improving our customer experience, CIMB Niaga officially launched its latest addition to our Phone Banking 14041 facility in Yogyakarta, which offers numerous digital-based features -- from telephone to email, from social media and live chat to video banking. Performance in 2017 Through the implementation of these strategic thrusts, we were able to seize numerous opportunities and address challenges throughout the year of 2017. In terms of the profit and loss accounts, we recorded a total operating income of Rp15.7 trillion in 2017, up by 5.9%, or Rp872 billion, compared to 2016 at Rp14.9 trillion. This is mainly due to strong performance in Net Interest Income and in Non-Interest Income. Net Interest Income rose by 2.6% to Rp12.4 trillion from Rp12.1 trillion in previous year. Non-Interest Income meanwhile recorded a growth of 18.8% to Rp3.3 trillion, compared with Rp2.8 trillion in the previous year. Annual Report CIMB NIAGA 2017
  63. Supporting Business Review Corporate Governance Report Corporate Social Responsibility We did various cross-selling initiatives involving relationship managers , telemarketing and digital channels, to increase the number of product holding per customer. As a result, at year-end 2017, average product holding was recorded at 1.7x. For customers in the mass market and preferred segment record a product holding of 3.2x and 4.6x, respectively. As a result, we successfully recorded a consolidated net income of Rp3.0 trillion in 2017, an increase of 43.0% or amounted to Rp896 billion, compared to the net income in the previous year of Rp2.1 trillion. This achievement translated to Rp118.5 in earnings per share, an increase by 43.0% or amounted to Rp35.7 from Rp82.8 booked in the previous year. In terms of balance sheet accounts, the Bank recorded a loan growth of 2.8% to Rp185.1 trillion with a non-performing loan (NPL) ratio of 3.7%, a 14bps improvement from last year. In line with developments in domestic economic conditions, the Bank will continue to control NPL levels by maintaining prudent credit distribution principles, exploring recovery activities and keeping considerations of asset quality as a top priority. We are optimistic that the implementation of our policies and strategies will further improve our asset quality in the future. Others Corporate Data Consolidated Financial Report Meanwhile, in terms of third party funds, the Bank recorded a growth of 4.8% to Rp189.3 trillion compared to the previous year at Rp180.6 trillion. CIMB Niaga continues to improve its CASA ratio and recorded a growth of 8.4% to Rp99.5 trillion. Time deposits also increased by 1.2% to Rp89.8 trillion. The Bank also recorded total assets in 2017 at Rp266.3 trillion, increased by 10.2% or Rp24.7 trillion, compared to the previous year at Rp241.6 trillion. Overall, the achievements of CIMB Niaga throughout 2017 are the combined results of the hard work of all personnel and our steadfast commitment to serve customers from the heart. Comparison of Targets and Achievements In 2017, I am pleased to report that CIMB Niaga recorded a commendable performance. We have exceeded our profitability target and achieved a stronger capital position. Our PBT (Profit Before Taxes) grew 45.7% to Rp4.2 trillion; while Net Profit grew 43.0% exceeded the target of 30%. The Bank ended the 2017 with a much stronger capital position: a 64bps improvement on CAR (Capital Adequacy Ratio) to 18.60%. This achievement will put us on a stronger platform for 2018. Challenges and Resolutions The bank recorded a slower loan growth compare to the industry is a function of the softness of the industry and a reflection of bank’s strategies. The decision to exit Micro segment business and autoloan recalibration strategy put a downward pressure against bank’s credit expansion plans; excluding the auto-loan segment, the bank would have recorded 4.3% loan growth in 2017. Annual Report CIMB NIAGA 2017 61
  64. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management REPORT OF THE BOARD OF DIRECTORS We have focused our efforts in improving our NPL ratio , and this has recorded early results of an improvement of 14bps; bringing our NPL ratio down to 3.75% in 2017. The bank is committed to improve the NPL ratio through taking an integrated plan to increase asset quality, continuous monitoring of NPL accounts, deploying early-warning system, restructuring, optimizing collection effort and focusing on collateral sales. We expect this hard work will yield further improvements for our NPL ratio in 2018. Recent fintech disruptions that have swept Indonesia represent challenges as well as opportunities for the bank. We have witness the high level adoptions of innovations that change the way we do businesses and daily activities, affecting banking transaction at its core. Innovation is not a new mantra in CIMB Niaga. Being considered as a digital forerunner within the banking industry command us to stay innovative in our product offering and transform the internal processes to align banking capabilities with customer expectation. We continue to explore opportunities together with new emerging fintech player to reach and deepen banking relationships with our customers. Analysis of Business Prospects In 2018, global economic growth is expected to be slightly better than in 2017, with stable commodity prices and improve trading volumes. However, a number of global economic uncertainties remain amid in the backdrop of the positive prospect of a continuing global economic recovery. The risk stems from the normalization of monetary policies in a number of developed economies as well as geopolitical factors in some parts of the world. On the domestic side, domestic economic growth will 62 be supported by increasing economic activities, continuing government infrastructure development programs, and recovery in public consumption. Indonesia’s economic growth in 2018 is expected to hit the 5.2% GDP growth rate. In Indonesia, the 2018 regional elections and preparation of the 2019 presidential election will offer both challenges and growth opportunities. CIMB Niaga estimates that bank loans will grow by a modest growth rate. Ultimately, the growth of e-Commerce and the growth of MSME business are expected to open up more opportunities for banks to provide financing facilities. As a response, we continue to implement our 5 pillars strategies: 1) Playing to our strengths, 2) Expanding our CASA (Current Account and Savings Account) franchise, 3) Maintaining our cost discipline, 4) Focusing on risk management culture, and 5) Leveraging technology and digital platforms. AT THE FOREFRONT OF DIGITAL BANKING SERVICES We continue to develop our information technology systems in order to support the Bank’s business activities. This strategic movement is taken by CIMB Niaga as we foresee future economic direction on banking industry will be centered on digital technology services. The Bank has taken various IT initiatives which focus on digital banking services expansion with emphasis on branchless banking, heightened customer experience and digital sales proficiency, and enhancement of mobile banking system capability. Annual Report CIMB NIAGA 2017
  65. Supporting Business Review Corporate Governance Report Corporate Social Responsibility In 2017 , we complemented our digital channel offerings foremost through launch of BizChannel@ CIMB for Business, an internet banking solution offering a secure and convenient way to conduct banking transactions for business customers. This service added on the BizChannel@CIMB productline, namely the BizChannel@CIMB for Enterprise dedicated to the corporate customers. Meanwhile for individual customers, We have launched the new improved Go Mobile, a mobile banking service that gives retail customers easy access with a heightened security feature against social engineering. The upgrading and revitalization of these digital channels is expected to address the needs of customers who increasingly turn to digital banking, in line with our aspiration to become Indonesia’s leading digital banking company. HUMAN CAPITAL DEVELOPMENT The Bank put employees as the key element as well as a strategic partner in achieving competitive advantage. Proper management of human capital is therefore one of the key pillars towards sustainable positive performance. CIMB Niaga continuously and continually adjusted its human resource management and development strategy that enable the Bank to respond to any challenges and quickly adapt to market changes, particularly within the banking industry. In developing quality human resources in 2017, the Bank focus on four (4) key areas, comprising automation of HR services, building of internal talents, improving processes and organizational effectiveness across HR lines, and internalizing Core Values and a riskconscious culture. Uplifting these 4 key elements is expected to make positive impacts on business growth and development as a whole. Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report Going forward, we will continuously strive to build professional, agile, high integrity human resources that are able to realize the Bank’s Vision and Mission. This is being accomplished through the long-term HR development strategy, with detailed HR development on stages, priorities, and focuses. CORPORATE GOVERNANCE We believe that achieving good performance can be sustained over the long term and those targets in the Bank Business Plan can be achieved by the consistent implementation of Good Corporate Governance (GCG) practices. For more than 60 years, we have applied GCG principles in order to maintain harmonization and balance between the aspirations of the Bank and those of its stakeholders. At CIMB Niaga, GCG provides direction and control for the Bank to stay aligned with the expectations of stakeholders, the requirements of law and regulations, the practice of business ethics, and the actualization of the Bank’s core values. Bestpractice GCG at CIMB Niaga refers to the four pillars of Corporate Governance, namely governance commitment, governance structure, governance process and governance outcome, representing the manifestation of CIMB Niaga’s responsibility to its stakeholders, notably comprising customers, employees, shareholders, regulators and the general public. In addition, we are also guided by GCG principles as required by the OJK as generally applied in Indonesia, as well as the best practice according to the ASEAN Corporate Governance Score Card. We always adhere to GCG principles in harmony with best practices that not only provide adequate protection and fair treatment to shareholders and other stakeholders, but more than that, encourage the Bank to create shareholder value to the maximum 63
  66. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management REPORT OF THE BOARD OF DIRECTORS level . The Board of Commissioners, the Board of Directors and all employees are fully committed to implementing high standards in the application of GCG principles. These principles serve as a reference for decision making, performance optimization, prevention of conflict of interest, and increased accountability. In recognition of the implementation of best practice corporate governance in CIMB Niaga in 2017, the Bank received a number of prestigious awards in the field of Corporate Governance including as 1st Winner of Private Finance Listed Category in Annual Report Award 2016, Best Overall on the 9th IICD Corporate Governance Award 2017, and Top 5 GCG Issues on Banking Sector at Indonesian Corporate Secretary Award 2017. CORPORATE SOCIAL RESPONSIBILITY PROGRAMS The successes of CIMB Niaga in conducting its business activities is not only determined by operational and financial performance, but is also supported by nonfinancial performance as can be seen on harmonious relationships with the community through the implementation of Corporate Social Responsibility programs. CIMB Niaga’s CSR programs are focused on activities that have a significant impact on the welfare of the respective recipients. In 2017, CIMB Niaga continued its CSR programs and activities through the four activity pillars of education, community development and empowerment, philanthropy, and the environment. In the field of education, we distributed scholarships to 905 students ranging from high school to the graduate level. We also encouraged the implementation of the Banking Finance Education and Literacy Program through the ‘Ayo Menabung dan Berbagi’ Program, Tour de Bank, Mini Banking Laboratory and Bourse Game Laboratory. In addition, we continued with the 64 One Million Book program, Training for Kindergarten/ Early Childhood Education Teachers program, and the provision of supporting educational facilities to schools throughout 2017. On the pillar of community development and empowerment, one on-going activity is the Disabled Person Empowerment Program, which provides an opportunity for physically-challenged people to work in CIMB Niaga. In 2017, CIMB Niaga recruited 48 visually impaired individuals to work in Telesales Funding as well as 10 hearing impaired individuals to work in Phone Banking Social Media. In addition, we also included 20 people with disabilities in Information Technology Training. In an effort to improve the welfare of the community as a reflection of the philanthropic pillar, CIMB Niaga contributed through various activities: a project in cooperation with the Embassy of the Republic of Indonesia in Kuala Lumpur for the provision and management of Rumah Kita Shelter, a temporary shelter for Indonesian Migrant Workers in Malaysia, donation for religious and social activities, organization of blood donor drives, and emergency relief aid in the handling of natural disasters. In the environmental field, we consistently strived in efforts to preserve the environment by planting 10,000 Betung bamboo trees in Ngada, East Nusa Tenggara, and through the implementation of Smart Spending Policy. Throughout 2017, we channelled a total of Rp30.9 billion in CSR funds. In our commitment to the implementation of CSR programs, CIMB Niaga will gradually allocate funds for CSR at 1% of our Profit Before Tax (PBT). We are optimistic that CIMB Niaga’s CSR activities will continue to generate added value for shareholders and other stakeholders, while at the same time supporting CIMB Niaga’s business growth through the synergy between CSR Programs and the Bank’s business strategies. Annual Report CIMB NIAGA 2017
  67. Supporting Business Review Corporate Governance Report Corporate Social Responsibility CHANGES IN BOD COMPOSITION The Extraordinary General Meeting of Shareholders (EGMS) held on 24 August 2017, decided to change the composition of the Board of Directors. The EGMS appointed Rahardja Alimhamzah as Director. We would like to extend a warm welcome to Rahardja Alimhamzah, and we believe that with this appointment, CIMB Niaga can achieve higher growth and performance. As at year-end 2017, the composition of the Board of Directors is as follows: • President Director: Tigor M. Siahaan • Director: Wan Razly Abdullah • Director: Rita Mas’oen • Director: Megawati Sutanto • Director: Vera Handajani • Director: John Simon • Director: Lani Darmawan • Director: Pandji P. Djajanegara • Director: Hedy Lapian • Compliance Director (Independent): Fransiska Oei • Director: Rahardja Alimhamzah APPRECIATION AND CLOSING WORDS For closing, the Board of Directors would like to express the highest gratitude and appreciation to the Board of Commissioners for all advice, suggestions and recommendations given to the Board of Directors. I would also like to express the Board of Directors appreciation of CIMB Niaga’s shareholders, customers and business partners, for their support, trust and cooperation that continues to this day. Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report Directors wish to express the highest gratitude and appreciation to all employees who have worked with dedication and compassion in carrying out their respective duties and responsibilities and support the efforts to realize the Bank’s Vision, Mission and Business Plans tirelessly hand in hand. To all the other stakeholders whom we can not possibly mention all individually here, I wish to thank for their consistent cooperation so that CIMB Niaga can achieve its business targets and sustain its growth momentum. Together, let us realize CIMB Niaga’s Vision to Be a Leading ASEAN Company. Step Forward, Dream Bigger 26 March 2018 Tigor M. Siahaan President Director 65
  68. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Board of Directors seated from left to right Tigor M . Siahaan President Director 66 Fransiska Oei Director of Compliance, Corporate Affairs & Legal Pandji P. Djajanegara Director of Sharia Banking Annual Report CIMB NIAGA 2017
  69. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Lani Darmawan Megawati Sutanto John Simon Vera Handajani Rahardja Alimhamzah Others Corporate Data Consolidated Financial Report standing form left to right Director of Consumer Banking Director of Risk Management Annual Report CIMB NIAGA 2017 Director of Credit Director of Business Banking Director of Treasury & Capital Market Wan Razly Abdullah Director of Strategy and Finance Hedy Lapian Director of Human Resources Rita Mas’Oen Director of Operations & Information Technology 67
  70. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Report of the Sharia Supervisory Board Bismillaahirrahmaanirrahim , With the words, Alhamdu lillahi Rabbil ‘Alamin, let us give praise and thanks to Allah Ta’ala for all the grace and blessings bestowed upon us. Salutations and greetings also to the Prophet Muhammad SAW, his family and friends. Throughout 2017, the Sharia Supervisory Board (SSB) of the CIMB Niaga Sharia Business Unit (SBU) performed its duties and responsibilities in providing supervision, as well as advice and recommendations concerning the activities of CIMB Niaga SBU. We have also ensured that all areas of the business have complied, at all times, with the sharia principles based on the Fatwa of the National Sharia Council and the Indonesian Ulema Council (DSN-MUI). We performed these duties with the full support and cooperation of the management and staff of CIMB Niaga, as well as with support from the CIMB Group. The Board conducted, among other activities, regular supervision of the business unit, as well as reviews on product, policy and procedure proposals, or other issues related to the fulfillment of sharia principles, that needed the opinion of the SSB. On the basis of our supervision carried out throughout 2017, the SSB is of the opinion that transactions performed by CIMB Niaga SBU in the form of financing, deposit taking, services, including capital market custodian, and initiatives in product development and other innovations, complied with the requirements of the authorities as regulated in the relevant POJK/PBI and SEOJK/SEBI, as well as the sharia requirements contained in the Fatwa of the DSN-MUI, opinions of the SSB, and the Bank’s General Policy on Sharia Compliance. performance of CIMB Niaga SBU in 2017 was evident from a number of indicators, such as the growth of total assets by approximately 80%, from Rp12.8 trillion to Rp23 trillion, the growth of total funding by approximately 84%, from Rp10.6 trillion to Rp19.5 trillion, and the growth in total financing by approximately 63%, from Rp10.2 trillion to Rp16.7 trillion. As a result of these achievements, our profit before tax (PBT) grew by 61% to Rp491 billion, from Rp305 billion in 2016. We also managed to improve the performance of non performing financing (NPF) from 1.2% in 2016 to 0.9% in 2017. All these achievements have made us more confident and optimistic about our ability to improve the performance of sharia-based business at CIMB Niaga. On this occasion, the SSB would like to extend its highest appreciation and thanks for the support given by the management to CIMB Niaga SBU in 2017. We would also like to encourage the Management to be faithful in the conduct of business activities by always complying with sharia principles. We believe that strong intentions accompanied by sincerity in work obligations will lead CIMB Niaga SBU to grow, and serve the Indonesian people from the heart at all times. We continue to work and encourage the management of CIMB Niaga SBU to keep working with vigor and dedication by maintaining Sharia Compliance so that the expectations and targets set for the coming year can be achieved. In closing, let us pray, may Allahu Ta’ala always provide convenience, ease, and blessings for us all, so that we can maintain our success, both in the world and in the afterlife. Amin yaa Rabbal ‘Aalamin. In summary, we can report that in 2017, CIMB Niaga SBU achieved outstanding results. The excellent On behalf of the Sharia Supervisory Board Prof. Dr. M. Quraish Shihab, MA Chairman of the Sharia Supervisory Board 68 Annual Report CIMB NIAGA 2017
  71. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report from left to right Dr . Yulizar Djamaludin Sanrego, M.EC. Member Prof. Dr. M. Quraish Shihab, MA Chairman Prof. Dr. Fathurrahman Djamil, MA Member 69
  72. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Responsibility of Annual Reporting Board of Commissioners Statement of Responsibility for 2017 Annual Report PT Bank CIMB Niaga Tbk We , the undersigned, testify that all information contained in the 2017 Annual Report of PT Bank CIMB Niaga Tbk has been presented in its entirety, and that we assume fully responsibility for the accuracy of the contents of the Annual Report of PT Bank CIMB Niaga Tbk. This statement is hereby made in all truthfulness. Jakarta, 26 March 2018 The undersigned Dato’ Sri Nazir Razak President Commissioner Glenn M. S. Yusuf Vice President Commissioner Zulkifli M. Ali Independent Commissioner Pri Notowidigdo Independent Commissioner Armida S. Alisjahbana Independent Commissioner Jeffrey Kairupan Independent Commissioner David Richard Thomas Commissioner Ahmad Zulqarnain Onn *) Commissioner *) resigned effective since the closing of EGMS on 24 August 2017 70 Annual Report CIMB NIAGA 2017
  73. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Responsibility of Annual Reporting Board of Directors Statement of Responsibility for 2017 Annual Report PT Bank CIMB Niaga Tbk We , the undersigned, testify that all information contained in the 2017 Annual Report of PT Bank CIMB Niaga Tbk has been presented in its entirety, and that we assume fully responsibility for the accuracy of the contents of the Annual Report of PT Bank CIMB Niaga Tbk. This statement is hereby made in all truthfulness. Jakarta, 26 March 2018 The undersigned Tigor M. Siahaan President Director Wan Razly Abdullah Director Rita Mas’Oen Director Megawati Sutanto Director Vera Handajani Director John Simon Director Lani Darmawan Director Pandji P. Djajanegara Director Hedy Lapian Director Fransiska Oei Director Rahardja Alimhamzah *) Director *) effectively serves since the closing of EGMS on 24 August 2017 Annual Report CIMB NIAGA 2017 71
  74. Batik Kawung Batik Kawung is one of the oldest batik patterns , and once the prerogative of the royal families of Yogyakarta Sultanate. The foursided geometrical pattern symbolizes self-control, clean conscience and a purity of heart.
  75. HAVING PRIVILEGE IS HAVING THE FREEDOM TO CHOOSE
  76. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Company Profile Table of Contents 76 General Company Information 78 CIMB Niaga at A Glance 82Milestones 84 Organization Structure 87 Vision and Mission 88 Corporate Culture 89 Core Values 90 Company ’s Identity 91 Products and Services 94 Corporate Group Structure 95 Cimb Group Profile (Parent Company) 96 Profil CIMB Niaga Auto Finance (Subsidiary) 97 Subsidiary and Joint Ventures 98 Area of Operations or Network Scheme 100 Board of Commissioners Profiles 105 Board of Directors Profiles 111 Sharia Supervisory Board’s Profiles 74 Annual Report CIMB NIAGA 2017
  77. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report 112 Information on Management Changes After the End of the Fiscal Year 113 Employees & Competency Development Statistics 115 Shareholder Composition 117 Number of Shareholders & Percentages Based on Classification 117 Development of Capital Structure and Number of Outstanding Shares in the Last Five Years 118 History of Shares Issued and Listing 119 Chronology of Other Securities Listings 120 List of Business Partnerships 120 Capital Market Supporting Institutions and Professionals 121 Periodic Services of Capital Market Supporting Institutions & Professionals in 2017 121 Data Access and Corporate Information 121 Information on the Company Website 121 Education and Training for the Board of Commissioners, Board of Directors, Committees, Corporate Secretary and Internal Audit Annual Report CIMB NIAGA 2017 75
  78. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management General Company Information Company Name Issued and Fully Paid Capital PT Bank CIMB Niaga Tbk Rp1 ,612,257,325,350 or 25,131,606,843 shares consisting of Class A at Rp359,269,680,000 or 71,853,936 shares at a nominal value of Rp5,000 per share, and Class B at Rp1,252,987,645,350 or 25,059,752,907 shares at a nominal of Rp50 per share. Line of Business Banking Date of Establishment 26 September 1955 Stock Exchange Legal Basis of Establishment Deed of Establishment No. 90 by Raden Meester Sowewandi, Notary in Jakarta, on 26 September 1955, amended by virtue of Deed No. 9 dated 4 November 1955. Deed of Establishment is endorsed with Decision of Justice Minister of the Republic of Indonesia (now Minister of Justice and Human Rights) No. J.A.5/110/15 dated 1 December 1955, State Gazette No. 71 dated 4 September 1956, State Gazette Supplement No. 729/1956. Authorized Capital Rp2,900,000,000,000 or 50,886,460,336 shares, consisting of Class A shares at Rp359,269,680,000 of 71,853,936 shares at a nominal value of Rp5,000 per share; and Class B shares at Rp2,540,730,320,000 or 50,814,606,400 shares at a nominal value of Rp50 per share. 76 Indonesia Stock Exchange Stock Listing 29 November 1989 Stocks and Bonds Code BNGA 2017 Shareholder Composition - CIMB Group Sdn Bhd 91.48% - PT Commerce Kapital 1.02% - Public Shareholders (<5%) 7.50% Change of Name On 26 September 1955, the Company was established under the name of PT Bank Niaga, and upon becoming a Public Company by adjusting to Law No. 40 Year 2007 on Public Companies, changed the name to PT Bank CIMB Niaga Tbk in 2008. Annual Report CIMB NIAGA 2017
  79. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report ISIN Code Subsidiaries ’ Data ID1000098007 PT CIMB Niaga Auto Finance, Line of Business: Consumer Financing SWIFT Code BNIAIDJA Merger History In 1973 Bank Niaga merged with PT Bank Agung, and in 1978 with PT Bank Tabungan Bandung, and in 1983 with PT Bank Amerta, and in 2008 with PT Bank Lippo Tbk. Address of Head Office Graha CIMB Niaga, Jl. Jend Sudirman Kav. 58 Jakarta 12190, Indonesia Tel : (+62-21) 250 5252, 250 5353 Fax : (+62-21) 250 5205 Website : www.cimbniaga.com Corporate Secretary : corporate.secretary@cimbniaga.co.id Investor Relations : Investor.relations@cimbniaga.co.id Menara Sentraya 28th Floor Jalan Iskandarsyah Raya No.1A Jakarta Selatan 12160 Tel : (+62-21) 27881800 Call center : 0804-1-090909 Email : info@cnaf.co.id Website : www.cnaf.co.id 2017 Office Network As of 31 December 2017, CIMB Niaga had 542 branch offices consisting of conventional, sharia, and micro branch offices. Addresses of branches can be found on the Branch Network List section in this Annual Report. Total Employees in 2017 12,782 employees Total Assets in 2017 Rp266 trillion Annual Report CIMB NIAGA 2017 77
  80. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management CIMB Niaga at A Glance BRIEF HISTORY OF ESTABLISHMENT CIMB Niaga was established based on Deed of Company Establishment No . 90 made in the presence of Raden Meester Soewandi, Notary in Jakarta dated 26 September 1955 and amended by deed of the same Notary No. 9 dated 4 November 1955. These Deeds of Establishment have been approved by the Minister of Justice of the Republic of Indonesia (now Minister of Justice and Human Rights) with Decision No. J.A.5/110/15 dated 1 December 1955 and published in the State Gazette of the Republic of Indonesia No. 71 dated 4 September 1956, the Official Gazette No. 729/1956. Based on the Deed No. 38 dated 28 May 2008, made by Dr. Amrul Partomuan Pohan, SH, LLM, the company name was changed from PT Bank Niaga Tbk to PT Bank CIMB Niaga Tbk. The name change was approved by the Minister of Justice and Human Rights of the Republic of Indonesia through its Letter No. AHU-32968.AH.01.02 2008 dated June 13, 2008 and the Decision of the Governor of Bank Indonesia No. 10/56/KEP.GBI/2008 dated 22 July 2008. Icon - Plaza CIMB Niaga, Medan 78 CIMB Niaga has obtained the license as commercial bank, forex bank, and sharia bank, based on Ministry of Finance of the Republic of Indonesia Decision Annual Report CIMB NIAGA 2017
  81. Supporting Business Review Corporate Governance Report Corporate Social Responsibility No . 249544/U.M.II dated 11 November 1955, Board of Directors of Bank Indonesia Decision No. 7/116/Kep/ Dir/UD dated 22 November 1974, and Bank Indonesia Governor Decision No. 6/71/KEP.GBI.2004 dated 16 September 2004. Regarding the approval from Bank Indonesia (now managed by the Finance Services Authority, OJK) on the merger plan of Lippo Bank into Bank CIMB Niaga through the Bank Indonesia Governor Decision No. 10/66/KEP.GBI/2008 dated 15 October 2008 on “Approval of the Merger of PT Bank Lippo Tbk into PT Bank CIMB Niaga Tbk”, as well as the Ministry of Justice and Human Rights of the Republic of Indonesia Letter No. AHUAH. 01.10-22669 dated 22 October 2008, the merger is in effect since 1 November 2008. The Others Corporate Data Consolidated Financial Report statement of the effective merger obtained notification from Bapepam-LK (now OJK) through Letter No. S-4217/BL/2008 dated 30 June 2008. The effective date of the merger with Bank Lippo was as of 1 November 2008 based on Deed No. 9 dated 16 October 2008 made before Notary Dr. Amrul Partomuan Pohan, SH, LLM, Notary in Jakarta. Since its establishment, CIMB Niaga has therefore undergone four (4) mergers, namely: • On 22 October 1973 with PT Bank Agung; • On 30 November 1978 with PT Bank Tabungan Bandung; • On 17 October 1983 with PT Bank Amerta; and • On 1 November 2008, with PT Bank Lippo Tbk. Brief History of Changes in Corporate Name Date 26 September 1955 Corporate Name Change PT Bank Niaga Tbk into PT Bank CIMB Niaga Tbk Effective Date of Corporate Name Change 13 June 2008 Basis of Establishment Ministry of Justice and Human Rights of the Republic of Indonesia Letter No. AHU-32968.AH.01.02 dated 13 June 2008 Bank Indonesia Governor Decision No. 10/56/KEP. GBI/2008 dated 22 July 2008 Triggered by Bank Indonesia’s policy on single presence, the majority shareholder of Bank Niaga and LippoBank decided to merge as the best option for the interest of all stakeholders. Accordingly, during the Bank’s Extraordinary GMS on 28 May 2008, the EGMS resolved to change of name into PT Bank CIMB Niaga Tbk. With the value and spirit of always thinking and stepping forward as displayed in the logo of CIMB Niaga, the synergy and business combination among Bank Niaga, LippoBank and CIMB Group are expected to provide the best results for a better future. CIMB NIAGA AT A GLANCE Established under the name of Bank Niaga, the Bank’s main focus is to build core values and professionalism in the Indonesian banking industry. Over time, Bank Niaga became well-known as a trusted provider of quality products and services. In 1987, Bank Niaga became the first bank in Indonesia to launch banking transaction services through Automatic Teller Machines (ATM). Annual Report CIMB NIAGA 2017 Bank Niaga became a listed company on Jakarta Stock Exchange and Surabaya Stock Exchange (now the Indonesia Stock Exchange/IDX) in 1989. In 2002, CIMB Group Holdings Berhad (CIMB Group Holdings) acquired its majority ownership in Bank Niaga from Indonesian Bank Restructuring Agency IBRA). In a separate transaction, Khazanah, the majority shareholder of CIMB Group Holdings Berhad, acquired majority ownership of LippoBank on 30 September 2005. In 2007, the total shareholding was transferred to CIMB Group as part of an internal reorganization to consolidate the activities of all CIMB Group subsidiaries with a universal banking platform. The majority of CIMB Niaga’s 92.5% shareholding is directly and indirectly owned by CIMB Group Sdn Bhd, which is the fifth largest universal banking group in ASEAN with a wide regional network in Malaysia, Singapore, Thailand and Cambodia. 79
  82. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management CIMB NIAGA AT A GLANCE As the controlling shareholder of Bank Niaga (through CIMB Group) and LippoBank, since 2007 Khazanah had been considering merger as a measure to be taken in order to comply with the Single Presence Policy (SPP) policy stipulated by Bank Indonesia. This is the first merger in Indonesia related to SPP policy. In 2008, Bank Niaga changed its name to Bank CIMB Niaga. This merger was a monumental step in the banking sector in Southeast Asia and provides CIMB Niaga the advantage of connectivity into the ASEAN regional network through CIMB Group. As of the end of 2017, CIMB Niaga is the fifth largest bank in Indonesia with total assets of Rp266 trillion with market capitalization of Rp34 trillion. This achievement has successfully placed CIMB Niaga within the category of BUKU 4 with minimum core capital of Rp30 trillion. CIMB Niaga provides a wide range of comprehensive and innovative products and services ranging from consumer banking; Micro, Small and Medium (MSME) banking; commercial banking; and corporate banking, supported by Treasury and Transaction Banking capabilities and a powerful network of branchless banking. CIMB Niaga offers commercial and sharia products and services through the CIMB Niaga Sharia Business Unit. One of the advantages of CIMB Niaga is its Transaction Banking capability, which offers a variety of products and services as well as comprehensive solutions for companies to manage their domestic and cross border financial operations and transactions. Those solutions include Cash Management, Remittance, Trade Finance and Value Chain. With internet banking features such as BizChannel@CIMB for the corporate market, corporate customers are provided with convenient access to process a wide variety of payment transactions and also purchase foreign currency online, without having to go to a CIMB Niaga branch office. These capabilities led CIMB Niaga to win several prestigious awards in the field of transaction banking and FX, as the best cash management bank, best trade finance bank and the Leading FX Provider in Indonesia. 80 CIMB Niaga’s Cash Management is capable of delivering innovative products and services that meet the needs of its customers with the support of strong IT infrastructure to maintain excellent security, stability and service levels for our customers. CIMB Niaga Trade Finance is supported by trade desks throughout Indonesia in order to reach all of our customers. With the support of CIMB Group, trade finance services are also capable of providing competitive services and gaining its very strong position in ASEAN. In the remittance business, CIMB Niaga services can be accessed through 542 branch offices and also through branchless banking. Through collaboration with many local and foreign financial institutions, CIMB Niaga’s cross-border remittance service provides more than 130 foreign currencies with same-day service capability for several major currencies, and is also supported by competitive rates and dedicated client service. Throughout 2017, CIMB Niaga continues to develop branchless banking by optimizing the utilization of cutting-edge technology with emphasis on the customer experience as a differentiator, this is done to realize the vision of making CIMB Niaga a leader in digital banking services. Thus, CIMB Niaga bank has become one of the most complete banks in providing digital banking services for customers in the national banking industry Branchless banking services currently available include Phone Banking service 14041, Preferred Phone Banking 1 500 800, Go Mobile banking, CIMB Clicks internet banking, Digital Lounge and Mobile Account (Rekening Ponsel). Mobile Account is an innovative service that allows customers to transfer to a mobile number without having a bank account. CIMB Niaga is the first bank in Indonesia to have such a product and service. Annual Report CIMB NIAGA 2017
  83. Supporting Business Review Corporate Governance Report Corporate Social Responsibility In addition , CIMB Niaga customers can also access various national and regional ATMs through the Prima network, ATM Bersama, Cirrus, VISA, and MEPS networks. These are aimed at providing customers with flexibility and convenience to make transactions through ATMs both in Indonesia and in ASEAN. As a leading bank in the adoption of information technology, CIMB Niaga launched the Wave n Go Credit Card. This is the first credit card in Indonesia with a unique credit card design equipped with contactless payment technology. With CIMB Niaga Wave n Go, card holders only need to “wave” their cards near to the contactless EDC (Electronic Data Capture) machines for easy and practical transactions. Others Corporate Data Consolidated Financial Report CIMB Niaga is committed to provide positive end-toend customer experience at all times and in all service platform, including the Go Mobile. With the “Forward” brand promise, CIMB Niaga is on hand to support its customers in all aspects and stages of life to move forward to reach their goals and dreams. No more no, just Go Mobile. With one Go Mobile apps, enabling fast and secure transactions, anywhere, at anytime, cashless and cardless. Supported by 542 branch offices, 4,500 ATMs, 174 Multi-Function Devices/MFD, 683 Cash Deposit & Recycle Machines, and 12,782 employees all over Indonesia, CIMB Niaga is confident to be continually growing as the best and leading provider of banking services for the community. In 2017, CIMB Niaga also launched The New Go Mobile, its mobile banking offering that provides a convenient way for customers to conduct transactions via their smart phones, anytime and anywhere. The expanded features of The New Go Mobile are designed to meet the needs of today’s banking customers who increasingly prefer the digital way of banking, as well as suited to CIMB Niaga’s aspiration to become the leading digital banking institution in Indonesia. Annual Report CIMB NIAGA 2017 81
  84. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Milestones Initial Public Offering (IPO) at Surabaya Stock Exchange First bank to launch ATMs Merged with: • Bank Agung in1973 • Bank Tabungan Bandung in 1978 • Bank Amerta in 1983 1989 1987 1973-1983 1955 82 Established as PT Bank Niaga CIMB Group took over 50.99% shares of PT Bank Niaga Tbk from BPPN Rights Issue Rp1.3 trillion 1.Became the 5th largest bank in Indonesia 2.Distribution of Rp305 billion of final dividends, or Rp12.75 per share 3.Completed the integration of systems and operations after merger 2002 2005 2009 1991 2004 2008 2010 The first Bank to provide Online Banking Launch of Sharia Banking 1.Official name was changed to PT Bank CIMB Niaga Tbk 2.Effective merger between CIMB Niaga and LippoBank Launched BizChannel and CIMB Clicks internet banking platforms Annual Report CIMB NIAGA 2017
  85. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report 1 .Launched new mobile banking platform - Go Mobile 2.Relaunch of Phone Banking service 14041 and Preferred Phone Banking 1 500 800 with various exclusive features Launch of the first online TD opening in Indonesia through CIMB Clicks 1.Implementation of “Core Banking System” using one platform (1P”) scheme 2.Launch of Visa Credit Card Pay Wave Card and sticker (contactless) 2012 2014 2016 2013 2015 1.Launch of Digital Lounge 2.Launch of Rekening Ponsel 3.Launch of Poin Xtra 4.Launched Net Banking - online account opening Launch of MMQ Home Financing – Sharia Home Financing with floating rate 2017 1. Bank status promoted to BUKU 4 Bank by OJK, the highest classification for banks 2. Established 2nd call center in Yogyakarta 3. Launched Indie account savings product 4. Released BizChannel@CIMB for Business 5. Launched New Go-Mobile service Annual Report CIMB NIAGA 2017 83
  86. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Organization Structure Consumer Banking Director Lani Darmawan Head of Retail Product Budiman Tanjung Business Banking Director Rahardja Alimhamzah Chief of Corporate Banking Rusly Johannes Head of Commercial Banking Michael G . Jusanti Chief of Micro, Small & Medium Enterprise Sukarman Omar Head of Segment, Decision Management & Customer Experience Noviady Wahyudi Head of Corporate Banking I Miranty Supardi Head of Commercial Banking I Wagimin Head of Small Medium Enterprise I Dajani Head of Sales & Distribution for Jakarta Region Robby Mondong Head of Corporate Banking II Widodo Suryadi Head of Commercial Banking II Faisal A. Tambayong Head of Small Medium Enterprise II Edianto* Head of Sales & Distribution for Out Region Tony Tardjo Head of Corporate Banking III Riboet Budiono Head of Commercial Banking II C. Ninik Martini Head of Small Medium Enterprise III Edianto Head of Non Branch Channel Lukito Adisubrata Head of Structure Finance & Syndication Chialmi D. Rosalim Head of Commercial Banking Office Michael G. Jusanti* Head of Micro Linkage Arief Danardono* Head of Digital Banking, Branchless & Partnership Bambang Karsono Adi Head of Corporate Banking Business Credit Jeffrey Bob Karman Head of Commercial Banking Business Credit Hartanto Kurniawan Head of MSME Business Credit Sari Kartika* Head of Consumer Credit Risk Djojo Boentoro Head of Corporate Banking Office Vacant Head of Consumer Collection & Recovery Banyon Anantoseno Head of Micro Finance Welli Irawan Business Banking Risk Control Unit Head Ratri Setyorini Head of MSME Business & Product Development Sari Kartika MSME Portfolio Management & Analytical Head Ratna Dyah Ismoyowati Head of Marketing, Brand & Communications Slamet Sudijono Head of Business Planning & Network Management Helen Stella M Head of Risk Control Unit Humilo Felona Ronitua 84 Annual Report CIMB NIAGA 2017
  87. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report General Meeting of Shareholders (GMS) Integrated Corporate Governance Committee Sharia Supervisory Board President Director Tigor M. Siahaan Board of Commissioners Nomination & Remuneration Committee Risk Oversight Committee Audit Committee Chief of Corporate Strategic Initiatives Budiman Poedjirahardjo Chief Audit Executive Antonius Gunadi Treasury & Capital Market Director John Simon Sharia Banking Director Pandji P. Djajanegara Credit Director Megawati Sutanto Operations & IT Director Rita Mas’oen Risk Management Director Vera Handajani Compliance, Corporate Affairs & Legal Director Fransiska Oei Human Resources Director Hedy Lapian Strategy & Finance Director Wan Razly Abdullah Chief of Transaction Banking Gregory Hendra Lembong Head of Government Relation & Staff Khusus CEO Rudy Hutagalung Head of Corporate Client Solutions Agus Wicaksono Head of Business Banking Office Vacant Deputy Chief of Transaction Banking Andrew Suhandinata Head of Trading & Structuring Ferdinand R. W. Head of Sharia Business Banking Rusdi Dahardin Head of Wholesale Banking Credit Tjahjadi Yapeter Head of Wholesale Banking Operations & Shared Services Center Josephine Mercy Ari P. Head of Operational Risk Management Julius Wiantara, Tjhioe Head of Legal/General Counsel Surya Kirana Sulistiyo Head of HR Business Partner, Rewards & HR Services Joni Raini Head of Finance Wenny Ekawulan Handojo Head of Trade & Cash Sales Vonny Irawan Head of Global Sales & Marketing Sjarif Hartady Gunawan Head of Sharia Consumer & Business Management Diah Rachma P. Head of Commercial & MSME Banking Credit Henry Sawali Head of Consumer Banking Operations Albert Suhandinata Head of Risk Analytics & Infrastructure Yulius Setiawan Head of Compliance Management Liston Siahaan Head of Learning & Development Henry Budiarto Head of Operational Accounting Ria Yohanita Head of FI & NBFI Vonny Irawan* Head of Money Market & Funding Aulia Mochtar Business Analytical Head Ananto Prasetio Head of Non Retail Credam Compliance, Checking & Appraisal Retno Hestiati Head of Business Continuity & Change Management Support Bayu Prasetyanto Head of Basel PMO Ariffin Bin Morad Head of Anti Money Laundering Entin Rostini Head of Talent Acquisition, OD, & Employee Relations Ang Lennywaty Head of Strategy & Investor Relations Mulyawan Gani Head of Commercial & Wholesale Funding Hanny Librata Head of Treasury Risk Analytics & RCU Daniel E. Hutapea Risk Control Unit Head Raymond Y. Das Head of Loan Workout for Corporate Banking Suherman Onihana Head of OIT Risk Control Unit & Strategic Risk Analytics Santi Gloria P. Head of Credit Assurance Testing Yulius Setiawan* Head of Corporate Secretary Fransiska Oei* Head of Strategic Procurement & Admin Property Management Victor Indarto Head of Value Chain & Trade Product Tjhiu Fen Chief Economist Adrian Pangabean Advisory & Legal Head Syamsul Aidi B. Head of Loan Workout for ComBa & MSME Lena Head of Information Technology Yenny Siswanto Market Risk Management Head Diva Mahdi Good Corporate Governance (GCG) Head Vacant Asset Liability Management Head Roy Bahren S. Head of Securities Services Furiyanto Asset Disposal & Project Management Head Paskalina Singara OIT Office, Cost Management & Analytics Head Magdalena Project Development & Integration Management Head Waskin Head of Cash Management Amir Mirza Risk Control Unit Head Nicko Viranicko Risk Control Unit Head Gusti Faryansyah Treasury Islamic Head Agus Setiono Risk Control Unit Head Hadi Soedarso ALM Risk Head Sandi Maruto Retail Credit Risk Management Head Koei Hwei Lien Head of Anti Fraud Management Antonius Sukriswanto Note : *Interim Directorate Chief Sub Directorate Group Senior Legal Advisor Norida Noviyanti Business Strategy & Support Head Satria Indraprasta 85 Annual Report CIMB NIAGA 2017 86
  88. Performance Highlights Vision and Mission Management Reports Company Profile Management Discussion and Analysis Risk Management Corporate Culture 3 Vision To Be The Leading ASEAN Company Critical Behaviors Mission Work hard to satisfy customers To provide universal banking services in Indonesia as a high-performing , institutionalized and integrated company located in ASEAN and key markets beyond, and to champion the acceleration of ASEAN integration and the region’s links to the rest of the world Mutual respect, open-minded and cooperative Mutual respect for each other’s efforts and support one another “The Company’s Vision, Mission and Core Values have been effective since 1 January 2015, as previously approved by the Board of Directors on 14 October 2014 and by the Board of Commissioners on 31 October 2014. Latest review and re-evaluation on Vision, Mission, including Core Values of CIMB Niaga was conducted by Management on 21 October 2017.” 87 Annual Report CIMB NIAGA 2017 88 Annual Report CIMB NIAGA 2017
  89. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Core Values C H E S I Customer-centric We exist to serve our customers and we sell products and services that our customers understand and value , High Performance We work hard and we work strategically for customers, staff and other stakeholders, Enabling People We empower and align our people to innovate and deliver value in there workplaces as well as for the community they serve, Strength in Diversity We have respect for different cultures, we value varied perspectives and we recognise diversity as a source of strength, Integrity We are honest, respectful and professional in everything we do because integrity is the founding value of CIMB. Annual Report CIMB NIAGA 2017 89
  90. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Company ’s Identity Logomark Logotype Logo The official logo of CIMB Niaga consists of 2 main elements, namely the logomark and the logotype, the two elements of which being an integral logo, not to be separated. The CIMB Niaga logo was explicitly designed to capture the Company’s identity and values. • Logotype serves to strengthen the logomark as a descriptive word. All logotypes have the initialized ‘CIMB’ prefix as well as the “Niaga” suffix. To ensure its quality and consistency, CIMB Niaga’s official logo should not be changed or modified. Separately, the two elements have the following meanings: • Logomark, the logo symbol, is an arrow motif formed with a square graphic. This symbol describes the values and spirit of the Company to always think and move to be a leader. 90 Annual Report CIMB NIAGA 2017
  91. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Products and Services Business Activities Pursuant to Articles of Association Pursuant to the Articles of Association , article 3 paragraph 3.2, CIMB Niaga conducts the following major business activities as follows: a.Funding from the community in the form of deposits, including demand deposits, term deposits, certificate of deposits, savings and/or equal forms; b.Lending; c. Issue certificates of indebtedness; d. Purchase, sell, or collateralize at its own risk or for the benefit and at the request of its customers: i. Promissory notes including those accepted by banks with validity period no longer than the customary commercial instruments; ii. Certificates of indebtedness and other commercial paper with validity periods no longer than the customary commercial instruments; iii. State treasury notes and government guarantee instruments; iv. Bank Indonesia Certificates (SBI); v. Bonds; vi.Commercial paper valid up to 1 (one) year pursuant to prevailing laws and regulations; vii.Other commercial instruments valid up to 1 (one) year, pursuant to prevailing laws and regulations; e. Transfer money for its own interest or for the interest of the Bank’s customers; f. Place funds in, borrow from, or lend to other banks using notes, telecommunication means, sight drafts, checks, or any other means; g.Accept payment from commercial paper and perform calculation with or among third parties; h. Provide storage for the safekeeping of goods and commercial paper; i. Perform depository activities for the interest of other parties or on the basis of contract; j. Place funds from a customer to another in the form of commercial paper not listed on stock exchanges; Annual Report CIMB NIAGA 2017 k. Perform factoring activities, credit card businesses, and trusteeship activities; l.Perform activities in foreign exchange in compliance with the requirements stipulated by Bank Indonesia; m.Perform sharia-compliant banking activities; n. Perform marketing agency activities for nonbanking products such as insurance, mutual funds, government bonds, or others pursuant to the regulations; To support the Bank’s primary business activities, the Bank may perform the following supplementary activities: a. Purchase from auction or others, collateral either wholly or partially should a debtor default on an obligation to the Bank, under the condition that the purchased collaterals are required to be immediately disbursed; b.Perform capital investment in a bank or other financial institution, such as leasing, joint venture, consumer financing, securities, or insurance companies, or in a clearing house and underwriting, and settlement and depository agency accordance with Bank Indonesia regulations; c. Perform temporary capital investments to manage the consequences of default, or sharia-based financing default, under the condition that the investment shall be withdrawn in compliance with Bank Indonesia regulations; d. Act as pension fund founder and pension fund manager pursuant to pension fund rules and regulations; e. Perform other supporting activities to sustain the Bank’s primary business activities as commonly performed by a bank as long as they are not against the laws and regulations. 91
  92. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management PRODUCTS AND SERVICES Business Activities Conducted in 2017 CIMB Niaga Products and Services • • • • •  •  •  Saving Products Individual Loans • • • • • • • • • • • • • • • • • • • • • • • • As of 31 December 2017, CIMB Niaga conducted all of the business activities set forth in the most recent Articles of Association. CIMB Niaga Xtra Savings Xtra Valas Savings Xtra Payroll Savings CIMB Junior Savings Education Savings Education Xtra Savings Business Savings Mapan Savings Mapan Hadiah Savings TabunganKu CIMB Niaga AirAsia Savers CIMB Preferred Account CIMB Niaga Private Banking Account Power Deposit Xtra Deposit Time Deposit Current Account (Rupiah/Foreign Currency) ON Account Powered by XL Electronic Access Facilities • • • • • • • • • • • • • • • • • • • 92 Debit Card ATM Phone Banking 14041 Preferred Phone Banking 1500 800 CDM (Cash Deposit Machine) Go Mobile CIMB Clicks BizChannel Account Balance Consolidation eMFTS (Electronic Mass Fund Transfer System) e-Chain e-Notification e-Statement e-Tax Payment Self Service Terminal (SST) Fax Statement Cash & Cheque Pick–up Virtual Account Mobile Phone Bank Account Video Banking Digital Lounge Domestic and Foreign Transfer Mobile Phone Payment and Voucher Purchase Virtual Card Number (VCN) Opening Account and Time Deposit Online Mass and Scheduled Transactions Mortgage Auto Loan Xtra Dana (Personal Loan) Auto Loan (Joint Financing) Credit Card Corporate Credit Card Business, Treasury and Corporate Banking • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • Trustee & Agency Services Custodian Services Syndicated Loan Payment Bank Intraday Bank Guarantee Working Capital Loan Investment Credit Small and Medium Enterprise Credit Partnership (Linkage Program) Value Chain - Distributor/Dealer/Agent Financing Supplier Financing Trade Financing Warehouse Financing Factoring Tender or Bid Bond Performance Bond Retention Bond Payment Bond Advance Payment Bond Counter Guarantee Shipping Guarantee Standby Letter of Credit Custom Bond Bapeksta Bond Issuance of Letter of Credit – Sight Usance SKBDN Issuance (Local Letter of Credit) Inward Documentary Collection - D/P and D/A Usance Payable At Sight (UPAS) Post Import Financing/Trust receipt Import Tax - PIB/PIBT Annual Report CIMB NIAGA 2017
  93. Supporting Business Review Corporate Governance Report Corporate Social Responsibility • Continuation of Letter of Credit Export • Transfer Letter of Credit • Negotiation of Export Letter of Credit with Facilities • Negotiation of Export Letter of Credit without Facilities • Outward Documentary Collections - D/P and D/A • Pre and Post Export Financing • Market Linked Deposit • FX Today/Tom/Spot • FX Forward • FX Swap • Bank Notes • Interest rate Swap • Cross Currency Swap • FX Call Option • SWAP Depo • FX Put Option • Repo/Reverse Repo • Par Forward • Negotiable Certificate of Deposit • Bonds • Interest rate futures • Strike Currency Others Corporate Data Consolidated Financial Report • Auto Financing • Sharia Gold Card • iB Working Capital & iB USD Working Capital Financing • iB Investment & iB USD Investment Financing • iB Current Account Financing (PRK) Financing • Islamic FX Spot • Islamic FX Forward • iB Bank Guarantee • iB LC Import Issuance • iB SKBDN Issuance Other Services • • • • • • • • • • • • Foreign Currency Remittance Bank Draft Special Funds Transfer Safe Deposit Box Mass Fund Transfer Systems (MFTS) Payroll Preferred Collection Services Tax Payment Routine Bills Payment Corporate Advisory Financial Structure CIMB Niaga Mobile Cash Services CIMB Niaga Sharia • • • • • • • • • • • • • • • • • • • • • iB X-Tra Savings iB Junior and iB USD Junior Savings iB Xtra Education & iB USD Education Savings iB Mapan & Wakaf Savings iB Payroll Savings iB TabunganKU iB Haji & iB USD Haji Savings iB Pahala Haji & iB USD Pahala Haji Savings iB Investor Savings iB Business Savings iB On Account Savings iB Retirement Savings iB Hypermart Savers Savings iB AirAsia Savers Savings iB CIMB Preferred Savings iB CIMB Private Savings iB SimPEL Savings iB Current Account & iB Forex Current Account iB Deposit & iB Forex Deposit Mortgage Xtra Flexi Mortgage Annual Report CIMB NIAGA 2017 93
  94. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Corporate Group Structure Khazanah Nasional Berhad Employees Provident Fund 27 .27% Public 14.40% 6.15% 52.18% CIMB Group Holdings Berhad 100.0% Publik Public CIMB Group Sdn Bhd 7.5% 92.5%* PT Bank CIMB Niaga Tbk 99.9% PT CIMB Niaga Auto Finance Per December 2017 *Includes PT Commerce Kapital 1.02% 94 Annual Report CIMB NIAGA 2017
  95. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report CIMB Group Profile (Parent Company) CIMB Group Holdings Berhad Level 13, Menara CIMB Jalan Stesen Sentral 2 Kuala Lumpur Sentral 50470 Kuala Lumpur, Malaysia Tel : 603 2261 8888 Fax : 603 2261 8899 Website : www.cimb.com Investor Relations : ir@cimb.com Vision To be the leading ASEAN company. Mission To provide universal banking services as a high performing, institutionalised and integrated company located in ASEAN and key markets beyond, and to champion the acceleration of ASEAN integration and the region’s links to the rest of the world. Profile CIMB Group is one of the leading universal banking institutions in the ASEAN region and is one of the world’s largest major players in sharia finance. CIMB Group is headquartered in Kuala Lumpur, Malaysia and offers a variety of products and services for consumer banking, commercial banking, investment banking, sharia banking, and asset management. Currently, the CIMB Group is in the top five position for banking in the ASEAN region with approximately 38,000 employees and approximately 13.5 million customers as of the end of 2017. CIMB Group Holdings Berhad has been listed on Bursa Malaysia since 1987 and is one of the largest companies with a market capitalization reaching RM60.3 billion. Total assets the end of 2017 reached RM508.2 billion, with shareholder funds posted in the amount of RM48.0 billion and total sharia assets in the amount of RM95.2 billion. The largest shareholders at the end of 2017 are Khazanah Nasional with a portion of 27.27%, Employees Provident Fund (EPF) with a portion of 14.40% Kumpulan Wang Persaraan (KWAP) with a portion 6.15% and public with a portion 52.18%. Board of Directors Board of Directors Position Dato’ Sri Nazir Razak Chairman/ Non-Independent Non-Executive Director Tengku Dato’ Sri Zafrul Tengku Abdul Aziz Group Head of Executive Officer/ Executive Director Datuk Mohd Nasir Ahmad Senior Independent Director Glenn Muhammad Surya Yusuf Independent Director Watanan Petersik Independent Director Robert Neil Coombe Independent Director Ahmad Zulqarnain Che On Non-Independent Non-Executive Director Teoh Su Yin Independent Director Dato’ Lee Kok Kwan Non-Independent Non-Executive Director Mohamed Ross Mohd Din Independent Director Annual Report CIMB NIAGA 2017 95
  96. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Profile CIMB Niaga Auto Finance (Subsidiary) PT CIMB Niaga Auto Finance Menara Sentraya lantai 28 Jalan Iskandarsyah Raya No 1A Kebayoran Baru, Jakarta Selatan 12160 Tel : (+62-21) 2788 1800 Fax : (+62-21) 2788 1900 E-mail : info@cnaf.co.id Call center : 0804-1-090909 Website : www.cnaf.co.id Vision To become a prominent finance company in Indonesia by creating additional value and providing the best service for our customers and business partners. Mission We are committed to become a prominent auto finance company that delivers best value to our stakeholders through excellent services to customers, strong mutual relationships with business partners, excellent people, and contributions to communities. In December 2015, the shareholders approved the merger of PT Kencana Internusa Artha Finance (KITAF) into CNAF through an Extraordinary General Meeting of Shareholders (EGMS) effective on January 1, 2016, upon receiving approval from the Financial Services Authority (OJK) and the Ministry of Law and Human Rights. This merger aimed to create a larger and stronger automotive financing company, as well as to be able to offer its customers more comprehensive products and services. In March 2016, the KPM business of CIMB Niaga was merged into CNAF in line with the parent company’s strategic initiative to reinforce its auto loan business line, expand its business network, and increase its customer base. In 2017, the Management of CNAF created a closer alliance with its parent company and managed to realign priorities toward a healthy and sustainable business growth supported by a banking group with large and strategic base of business in Indonesia Profile Management of PT CIMB Niaga Auto Finance PT CIMB Niaga Auto Finance (formerly known as PT Saseka Gelora Leasing) was established in 1981 with its main business initially focused on leasing services. In 1993, the company changed its name into PT Saseka Gelora Finance (SGF) along with its business expansion into the multifinance business, including consumer finance, factoring, and leasing. Board of Commissioners Wan Razly Abdullah : President Commissioner Budiman Tanjung : Commissioner Koei Hwei Lien : Commissioner Serena K. Ferdinandus : Independent Commissioner Hidayat D. Prawiradilaga : Independent Commissioner In 1996, PT Bank CIMB Niaga Tbk (formerly known as PT Bank Niaga Tbk) became a majority shareholder of the Company and the portion of shares owned by PT Bank CIMB Niaga Tbk continued to increase up to 96% in 2007. Aligned with PT Bank CIMB Niaga’s strategy to to expand its consumer finance business in Indonesia, the Company made a significant change on its business focus from leasing business into consumer financing, particularly automotive financing in October 2009. Board of Directors Ristiawan : President Director Ir. Purwadi Indra Martono: Director Drs. H. Harijanto : Director Ivan Kawito : Director In 2010, PT Bank CIMB Niaga Tbk increased its share ownership in SGF to 99.99% and the remaining 0.01% owned by PT Citra Niaga Management (NMC). In June 2010, PT Saseka Gelora Finance changed its name to PT CIMB Niaga Auto Finance (CNAF), followed by a change of its logo. 96 Annual Report CIMB NIAGA 2017
  97. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Subsidiary and Joint Ventures SUBSIDIARY Name PT CIMB Niaga Auto Finance Address Menara Sentraya . lantai 28. Jl. Iskandarsyah Raya No 1 A. Kebayoran Baru – Jakarta Selatan 12160. Telp: 021-27881800 ext. 920 Fax: 02127881900 Operational Status % of Ownership Active 99.93% Operational Status % of Ownership Line of Business Total Assets (Million Rp) 61,785,967 Line of Bausiness Financing Institution Total Assets (Million Rp) 3,961,691* *Total Assets as of 31 December 2017 (un-audited) JOINT VENTURES Name Address Bank Muamalat Indonesia Muamalat Tower. Lt. 18 Jl. Prof. Dr. Satrio. Kav. 18 Jakarta 12940 Active 0.13% Sharia Banking Sarana Aceh Ventura Jl. Tgk. Syech Muda Wali No. 39 Banda Aceh 23242 Active 1.46% Non Bank Financial Institution 17,800 Sarana Bali Ventura Jl. Diponegoro No. 150 Komplek IDT/ Ruko Genteng Biru Blok B 23-24 Denpasar Active 3.85% Venture Capital 50,643 Sarana Bhakti Ventura - Non Active 2.71% Venture Capital - Sarana Jambi Ventura Jl. Kapten Pattimura No. 119 Jambi 36129 Active 2.24% Venture Capital 29,569 Sarana Jateng Ventura Jl. Taman Sompok No. 18 Semarang 50249 Active 2.99% Venture Capital 59,338 Sarana Jatim Ventura Jl. Jemur Andayani No. 33 Surabaya 60237 Active 5.81% Venture Capital 160,362 Sarana Kalbar Ventura Jl. M. Sohor No. 9 AB Pontianak 78121 Active 2.45% Venture Capital 53,130 Sarana Lampung Ventura Jl. Diponegoro No. 69A Gulak Galik. Bandar Lampung Active 2.53% Venture Capital 59,973 Sarana Maluku Ventura Jl. Kakyali – Tanah Tinggi Ambon 97123 Active 2.73% Venture Capital 2,513 Sarana Papua Ventura Jl. Santosa. Tasangkapura No. 20 Jayapura. Papua 99223 Active 5.63% Venture Capital 8,025 Sarana Riau Ventura Komp. Perkantoran Grand Sudirman Blok A-3 Jl. Datuk Setia Maharaja (d/h Parit Indah) Pekanbaru – Riau Active 1.36% Venture Capital 31,088 Sarana Sulsel Ventura Jl. Faisal Raya. No. 14 Makassar Active 4.64% Venture Capital 42,048 Sarana Sulut Ventura Kompleks Pasar Segar Blok RC-17 Paal Dua Jl. Yos Sudarso Manado Active 2.85% Venture Capital 15,007 Sarana Sumbar Ventura Gedung Rangkiang Ventura Jl. Khatib Sulaiman No. 9 Kav. 5 s/d 7 Padang. Sumatera Barat Active 3.51% Venture Capital 125,250 Sarana Sumsel Ventura Jl. Angkatan 45 F-27 Pakjo PalembangSumsel Freeze* 3.58% Venture Capital - Sarana Surakarta Ventura Jl. M. Saleh Werdisastro No. 1 Surakarta 57133 Active 1.85% Venture Capital 58,304 Sarana Yogya Ventura Jl. Yos Sudarso 25 Kotabaru Yogyakarta 55224 Active 3.95% Venture Capital 50,424 Others (<100.000 shares) in accordance with the Audited Financial Statements - Active 0.05% – 1.56% Financing Institution - * Frozen on 4 January 2017, Letter of Announcement OJK No.Peng-1/NB.2/017 in accordance of Discontinuation of Financing Company’s Activity Annual Report CIMB NIAGA 2017 97
  98. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Area of Operations or Network Scheme West Kalimantan DI Aceh Central Kalimantan North Sumatera North Kalimantan East Kalimantan Riau Batam North Sulawesi Centra Jakarta West Sumatera Yogyakarta Central Java South Kalimantan South Sumatera South Sulaw West Java Lampung Banten Bali East Java West Nusa Tenggara Sumatera : 69 DKI Jakarta: 139 West Java & Banten: 103 Central Java: 63 61 Conventional Offices 8Sharia Offices 136 Conventional Offices 3Sharia Offices 97Conventional Offices 6Sharia Offices 61Conventional Offices 2Sharia Offices DI Yogyakarta: 14 Jawa Timur: 77 Bali & Nusa Tenggara: 18 Kalimantan: 20 13 Conventional Offices 1Sharia Office 75Conventional Offices 2Sharia Offices 16Conventional Offices 2Sharia Offices 18Conventional Offices 2Sharia Offices Sulawesi: 11 Ambon: 2 Papua: 6 10 Conventional Offices 1Sharia Office 2Conventional Offices 6Conventional Offices 98 Annual Report CIMB NIAGA 2017 East N
  99. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Conventional Branch Offices Maluku Consolidated Financial Report ATMs 495 4 ,500 Sharia Branch Offices Cash Deposit & Recycle Machines Mobile Cash Outlets Multi Function Devices Papua al Sulawesi 774 27 wesi 174 20 Nusa Tenggara Annual Report CIMB NIAGA 2017 Phone Banking Preferred Phone 14041 1 500 800 99
  100. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Board of Commissioners Profiles Glenn M . S. Yusuf Vice President Commissioner Dato’ Sri Nazir Razak President Commissioner Malaysian Citizen Nationality Indonesian Citizen 51 years Age 62 years Malaysia Domicile • Master of Philosophy (M.Phil), University of Cambridge (1989) • Bachelor of Science (Honours), University of Bristol (1988) Educational Background Jakarta • Post Graduate in Business Management from the Asian Institute of Management, Makati, Philippines (1981) • Bachelor of Arts in Economics, University of the Philippines, Manila, Philippines (1979) History of Positions Has served as the President Commissioner of CIMB Niaga at the EGMS, on 26 January 2012, effective 1 May 2012, and reappointed at the EGMS on 15 April 2016. • Member of the Investment Panel of the Employees’ Provident Fund (EPF) (2003 –2017) • Chairman of the Investment Panel Risk Committee EPF (2003 –2017) • Group CEO CIMB Group Sdn Bhd (2006 - 2014) • CEO CIMB Investment Bank Berhad (1999 - 2006) • Deputy CEO CIMB Investment Bank Berhad (1996 - 1999) • Executive Director CIMB Securities Sdn Bhd (1993 - 1996) • Head Privatization Unit CIMB Investment Bank Berhad (1989 1993) • • • • • • • • • Chairman CIMB Group Holdings Berhad Deputy Chairman CIMB Bank Berhad Board Member Khazanah Nasional Berhad Director CIMB Foundation Founding Member Endeavor Malaysia Director Satin Rose Holdings Limited Director Zheng Group Limited Director David Linley Holdings Limited Director Zak Investment Limited • Financing, Investment - The Federation of Chinese Associations Malaysia in Kuala Lumpur • Financial, Investment - China Investment Corporation in Beijing •31st ASEAN Summit - ASEAN Summit in Manila • CAPS Philanthropy Conference 2017 - Centre for Asian Philanthropy and Society in Hong Kong Has no affiliation with other members of the Board of Commissioners nor with the Board of Directors; however he has an affiliation with the Majority Shareholder or Controlling Shareholders. 100 Legal Basis of Appointment Work Experience Concurrent Positions 2017 Training and Education* Affiliations Has served as a Commissioner of CIMB Niaga since 2010 and was appointed as the Vice President Commissioner of CIMB Niaga at the EGMS on 26 January 2012, effective 18 June 2012, with the most recent re-appointment being at the EGMS on 15 April 2016. • President Commissioner of PT Polyprima Karyareksa (2004 - 2010) • President Director/CEO of PT London Sumatera Indonesia Tbk (2003 - 2007) • Head of the Assistance Team of the Finance Ministry for Financial Sector Restructuring, Finance Department of the Republic of Indonesia (2001 - 2002) • Head of the Indonesian Bank restructuring Agency (BPPN) (1998 - 2000) • Director General of Financial Institutions of the Finance Department of the Republic of Indonesia (April – June 1998) • President Director of PT (Persero) Danareksa (1995 - 2001) • Director of PT Bahana Pembinaan Usaha Indonesia (1994 - 1995) • Director of Finance of PT Bank Niaga Tbk (1991 - 1994) • Independent Director CIMB Group Holdings Berhad • Independent Commissioner of PT Surya Citra Media Tbk Risk Posture Workshop – CIMB Group in Jakarta Has no affiliation with other members of the Board Commissioners nor with the Board of Directors, however he has an affiliation with the Majority Shareholder or Controlling Shareholders. Annual Report CIMB NIAGA 2017
  101. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Pri Notowidigdo Independent Commissioner Zulkifli M . Ali Independent Commissioner Malaysian Citizen Nationality Indonesian Citizen 67 years Age 70 years Malaysia Domicile • MBA from Dalhousie University, Halifax, Nova Scotia, Canada (1985) • MSc from University of British Columbia, Vancouver, Canada (1973) Educational Background Jakarta Bachelor in Political Science & Psychology with Honours from Carleton University, Ottawa, Ontario, Canada (1974) History of Positions Has served as an Independent Commissioner of CIMB Niaga at the EGMS on 18 July 2008, with the most re-appointment being at the EGMS on 15 April 2016 In relation to the re-appointment as an Independent Commissioner for more than 2 (two) periods, he stated that he has remained independent at the AGMS dated 15 April 2016 Legal Basis of Appointment • Independent Commissioner of PT Bank Lippo Tbk (2005-2008) • Director of Corporate Planning/Corporate Structure, Public Bank Group of Malaysia (1993 - 2005) • Investment Advisor in Enterprise Malaysia-Canada (1990 - 1993) • Group Administration and Controller at Austral Enterprise Berhad (1988 - 1990) • Corporate Planning and Development Manager, Island & Peninsular Berhad (1985 - 1988) • Lecturer, as well as Vice Dean at the University of Science of Malaysia, Penang (19976 - 1983) Work Experience Has no concurrent positions as a member of the Board of Commissioners, as a member of the Board of Directors, as a member of a Committee, nor other positions • BaRa’s Monthly Sharing Session: Unsecured Credit Retail Risk Management - BaRa in Jakarta •1st Directors Regional Sharing Session in Conjunction with the Joint Audit Committee with CIMB Bank Thai PCL - CIMB Group in Bangkok • Budget Meeting & Leadership Conference 2017 - CIMB Niaga in Jakarta • National Anti-Fraud Conference - Association of Certified Fraud Examiners (ACFE) Indonesia in Yogyakarta Has no affiliation with other members of the Board of Commissioners, the Board of Directors, nor with the Majority Shareholder or Controlling Shareholders. Annual Report CIMB NIAGA 2017 Concurrent Positions 2017 Training and Education* Affiliations Has served as an Independent Commissioner of CIMB Niaga at the AGMS on 28 March 2013, effective 26 November 2013, with the most recent re-appointment being at the AGMS on 15 April 2016. • Member of the National Committee on Governance (NCG) • Chairman & CEO Amrop Indonesia • Country Advisor, Melbourne Business School (MBS); AdvisorHuman Resources Development in International Monetary Fund (IMF) Jakarta (2015 - 2017) • Member of the Nomination and Remuneration Committee of Bank Muamalat, Jakarta (2009 - 2013) • Business Advisor, Financial Services, Zuellig Group (2006 – 2010) • Member of the Nomination and Remuneration Committee of the Semen Gresik Grorup (2006 - 2010) • President Director, TASA International (1994 -1996) • Partner, KPMG (1990-1994) • Manager, Price Waterhouse dan Planner & Project Officer, Indonesia Desk, Bilateral Program, Canadian International Development Agency (CIDA), Hull, Quebec, Canada (1984 - 1987) • President Director PT Profesindo Reksa Indonesia • Partner Advisor at Arghajata Strategic Consulting, Jakarta • Digital Leadership Series: Conversational Commerce, Chatbot and its Potential for Banking Industry - INSEAD in Jakarta • Diskusi Panel “Intervensi Pemegang Saham Pengendali dalam Pelaksanaan GCG” - Komite Nasional Kebijakan Governance in Jakarta •1st Directors Regional Sharing Session in Conjunction with the Joint Audit Committee with CIMB Bank Thai PCL - CIMB Group in Bangkok • Training and Directorship Certification Level Advance Lembaga Komisaris dan Direktur Indonesia in Jakarta Has no affiliation with other members of the Board of Commissioners, the Board of Directors, nor with the Majority Shareholder or Controlling Shareholders. 101
  102. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management BOARD OF COMMISSIONERS PROFILES Jeffrey Kairupan Independent Commissioner Armida S . Alisjahbana Independent Commissioner Indonesian Citizen Nationality Indonesian Citizen 57 years Age 60 years Bandung Domicile • Doctorate (PhD) in Economics, University of Washington, USA (1994) • Master of Arts (MA) in Economics, Northwestern University, USA (1987) • Bachelor Degree from the Faculty of Economics, University of Indonesia (1985) Educational Background Jakarta • MBA Business and Public Management, George Washington University, Washington DC, USA (2004) • Bachelor Degree in Economics from the University of Indonesia, Jakarta (1986) History of Positions Has served as an Independent Commissioner of CIMB Niaga at the AGMS on 15 April 2016, effective 14 September 2016. • Independent Commissioner of PT Asuransi Jiwa Bringin Jiwa Sejahtera (March - June 2016) • Minister/Head of Bappenas in the Ministry of National Development Planning/BAPPENAS (2009 - 2014) Legal Basis of Appointment Work Experience Has served as an Independent Commissioner of CIMB Niaga at the AGMS on 15 April 2016, effective 14 September 2016 • Expert Staff of the Board of Governors (2014 – 2014) • Executive Director of the International Department (2013 – 2014) • Head of Research Center for Education and Central Banking Studies (2012 – 2013) • Head of the BI Regional Office, Denpasar (2009 – 2012) • Head of BI Manado (2006 – 2009) • Head of Balance of Payments Bureau (2005 – 2006) • Economic Researcher in various areas such as Money Market Development, Macroeconomics Study, Policy Analysis & Planning and Staff to Governors (1987 – 2005) • Member of DKI Masterplan Economic Development team 1985 – 2005 at Hasfarm Dian Konsultan (1985 – 1986) • Guest lecturer for Faculty of Economics at various universities in the country and overseas (1994 – 2014) • Professor for Economy and Business, University of Concurrent Positions Padjadjaran • Director, Center for Sustainable Development Goals Studies, Universitas Padjadjaran • Member of Akademi Ilmu Pengetahuan Indonesia (AIPI) • Member of Governing Board, Economic Research Institute For Asean and East Asia (ERIA) • Director PT Tehillah Indonesia Synergi (PMA) • Chairman, Yayasan Imamat Rajani • Member of Bali Blessings Foundation • Speaker on First International Economic Forum on Asia - ERIA (Economic Research Institute for ASEAN and East Asia) & Ministry of Foreign Affairs Japan in Tokyo •1st Directors Regional Sharing Session in Conjunction with the Joint Audit Committee with CIMB Bank Thai PCL – CIMB Group in Bangkok • Khazanah Megatrends Forum - Khazanah Nasional Berhad in Kuala Lumpur • Budget Meeting & Leadership Conference 2017 – CIMB Niaga in Jakarta • Workshop Internal Capital Adequacy Assessment Process (ICAAP) - CIMB Niaga in Jakarta • Seminar Internasional - OJK in Jakarta • Seminar Internasional – Navigating Financial Stability in an Evolving Global Economic System - OJK in Bali •1st Directors Regional Sharing Session in Conjunction with the Join Audit Committee with CIMB Bank Thai PCL - CIMB Group in Bangkok Has no affiliation with other members of the Board of Commissioners, the Board of Directors, nor with the Majority Shareholder or Controlling Shareholders. 102 2017 Training and Education* Affiliations Has no affiliation with other members of the Board of Commissioners, the Board of Directors, nor with the Majority Shareholder or Controlling Shareholders. Annual Report CIMB NIAGA 2017
  103. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Ahmad Zulqarnain Onn ** Commissioner David Richard Thomas Commissioner American Citizen Nationality 58 years Age 45 years Malaysia Domicile Malaysia Bachelor of Art, Whitman College, Washington State, USA (1982) Educational Background Malaysian Citizen Bachelor of Arts in Economics, Harvard University, USA (1991 - 1996) History of Positions Has served as a Commissioner of CIMB Niaga in March 2014 and was re-appointed at the AGMS on 15 April 2016 Legal Basis of Appointment Has served as a Commissioner of CIMB Niaga at the AGMS on 27 March 2014, with the most recent re-appointment being at the AGMS on 15 April 2016. • Managing Director, Chief Risk Officer Asia Pacific, The Royal Bank of Scotland (2008 – 2012) • Senior Vice President, Chief Credit Officer Asia Pacific, Bank of America (2001 – 2007) • Senior Vice President, Credit Products Head, South Asia, Bank of America (1999 – 2001) • Vice President, Corporate Banking Head, Thailand, Bank of America (1997 – 1999) • Vice President, Country Credit Officer, Taiwan, Bank of America (1995 – 1997) • Vice President, Credit Products Head, China & Hong Kong (1993 – 1995) • Vice President, Credit Products Manager, Bank of America (1990 – 1993) • Assistant Vice President, Bank of America (1984 – 1990) • Management Trainee, Wells Fargo Bank (1982 – 1983) Work Experience • Managing Director/Chief Executive Danajamin Nasional Berhad (2009 - 2014) • Executive Director, Bolton Berhad (2005 – 2006) • Director, Symphony House Berhad (2002 – 2005) • Investment Banking Team, CIMB Group (2001 - 2002) • Corporate Debt Restructuring Committee (CDRC) (2001 – 2002) • Corporate Planning Team, Pengurusan Danaharta Nasional Berhad (Danaharta) (1998 – 2001) • Equity Research Analyst UBS Warburg UBS’s Global Graduate Training Programme (1996 - 1998) • • • • Group Chief Risk Officer CIMB Group Holdings Berhad Commissioner of PT Synergy Dharma Nayaga Director of GK1World (non-profit) Director of Kuala Lumpur International School (non-profit) Concurrent Positions • Executive Director, Invesment/Head Strategic Management Unit Khazanah Nasional Berhad • Non-Independent Non-Executive Director CIMB Bank Berhad • Director Felda Investment Corporation Sdn Bhd • Director FIC Supplies Sdn Bhd • 2018 Risk Posture Workshop with Combined Board - CIMB Group in Kuala Lumpur • Masterclass Chartered Banker Executive Conversion Programme - Asean Institute of Chartered Bankers (AICB) in Kuala Lumpur • Accelerated Universal Banking Program - CIMB-Nanyang Technological University in Singapore • T23 Workshop - CIMB Investor Relations/McKinsey & Co in Singapore 2017 Training and Education* • 2017 World Economic Forum di Davos, Switzerland •3rd Annual IDB Member Countries Sovereign Investment Forum - Islamic Development Bank Group & Ministry of Finance of the Republic of Indonesia in Bali, Indonesia • Roundtable with Indonesian & Malaysia Business Leaders Ministry of International Trade & Industry Malaysia in Jakarta • Khazanah Megatrend Forum (Moderator for Emiliana Simon - Thomas’s session), Science Director, Greater Good Science Center - Khazanah Nasional Berhad in Kuala Lumpur Has no affiliation with other members of the Board of Commissioners nor the Board of Directors, however he has an affiliation with the Majority Shareholder or Controlling Shareholders. Annual Report CIMB NIAGA 2017 Affiliations Has no affiliation with other members of the Board Commissioners nor the Board of Directors, however he has an affiliation with the Majority Shareholder or Controlling Shareholders. 103
  104. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management BOARD OF COMMISSIONERS PROFILES Tengku Dato ’ Sri Zafrul Tengku Abdul Aziz Commissioner Malaysian Citizen Nationality 44 years Age Malaysia Domicile • Master of Arts (MA) in Finance and Management, University of Exeter, United Kingdom (1998 - 1999) • Bachelor of Science (Hons) in Economics and Accounting from University of Bristol, United Kingdom (1993 - 1996) Educational Background History of Positions Appointed as Commissioner of CIMB Niaga at the EGMS on 24 August 2017 and effective on 16 March 2018 Legal Basis of Appointment • Chief Executive Officer Maybank Investment Bank Berhad & Maybank Kim Eng Holdings (2010 - 2013) • Group Director K&N Kenanga Holdings Berhad (2009 - 2010) • Chief Executive Officer Tune Money Sdn Bhd (2007 - 2008) • Director, Head of Investment Banking, Malaysia Citigroup Malaysia (2006 - 2007) • Chief Executive Officer and Group Managing Director Avenue Securities Sdn Bhd/Avenue Capital Resources Bhd (2003 2006) Work Experience • Group Chief Executive Officer/Executive Director CIMB Group Holdings Berhad • Executive Director CIMB Group Sdn Bhd • Non-Executive Director Urban Valley Sdn Bhd • Non-Executive Director Malaysian Industrial Development Authority (MIDA) • Non-Executive Director Yayasan Enactus Malaysia • Non-Executive Director Pr1ma Corporation Malaysia • Chief Executive Officer/ Executive Director CIMB Bank Berhad • Council Member Association of Banks in Malaysia (ABM) Concurrent Positions • The Year Ahead Asia Summit 2017 - Bloomberg in Jakarta • Khazanah Megatrends Forum - Khazanah Nasional Berhad in Malaysia • MTBC-TMBC Business Forum 2017, Kuala Lumpur Business Club in Bangkok • Invest Malaysia Conference - Bursa Malaysia in Malaysia • Global Banking CEO Roundtable 2017 - McKinsey in Italy • IORA Business Summit - Indian Ocean Rim Association in Jakarta 2017 Training and Education* Has no affiliation with other members of the Board of Commissioners nor the Board of Directors, however he is affiliated with the Majority Shareholder or Controlling Shareholders. Affiliations * Refer to Corporate Governance section for full information of Training and Education of Commissioners ** Effective resigned as Commissioner since EGMS 24 August 2017 104 Annual Report CIMB NIAGA 2017
  105. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Board of Directors Profiles Wan Razly Abdullah Director of Strategy and Finance Tigor M . Siahaan President Director Indonesian Citizen Nationality Malaysian Citizen 46 years Age 46 years Jakarta Domicile Jakarta • Alumni from IMD BPSE program (Breakthrough Program for Senior Executives) in Lausanne, Switzerland (2007) • Bachelor Degree in Finance and Accounting (double major) from University of Virginia, Charlottesville, USA (1995) Educational Background • Member of Institute of Chartered Accountants in England and Wales (1998) • Degree in Law and Accounting from University of Manchester, England (1995) History of Positions Has served as the President Director of Bank CIMB Niaga based on the decision of the AGMS on 10 April 2015 and effective 1 June 2015. • Chief Country Officer Citi Indonesia (2011 – 2015) • Country Head – Institutional Clients Group Citi Indonesia (2008 – 2011) • Head of Corporate and Investment Banking Citi Indonesia (2004 – 2008) • Country Risk Manager Citi Indonesia (2003 – 2004) • Vice President – Institutional Remedial Management Group at Head Office Citi New York (2000 – 2003) • Management Associate CITI Indonesia (1995 – 2000) Has no concurrent positions as a member of the Board of Commissioners, as a member of the Board of Directors, as a member of a Committee, nor other positions • • • • • BMC Offsite Training in Bandung Digital Leadership Series in Jakarta CIMBX Strategic Workshop in Jakarta YPO Extraordinary Leadership in Action in Jakarta China Internet Finance Academy by McKinsey in China Has no affiliation with other members of the Board of Directors, the Board of Commissioners, nor the Majority Shareholder or Controlling Shareholder. Annual Report CIMB NIAGA 2017 Legal Basis of Appointment Serves as the Director of Strategy & Finance of CIMB Niaga based on the decision of the EGMS on 27 August 2009, effective 18 August 2009, with the most recent re-appointment being at the AGMS on 15 April 2016. Work Experience • Director CIMB Investment Bank Berhad, Kuala Lumpur (2004 – 2009) • Director Synergy Drive Berhad, Kuala Lumpur (2006 – 2007) • Head of Strategic Business Development Maybank Investment Bank Kuala Lumpur (2002 – 2004) • Auditor in Northern Trust Company, London (1999 – 2002) • Auditor in PricewaterhouseCoopers, London (1995 – 1998) Concurrent Positions 2017 Training and Education* Affiliations President Commissioner of PT CIMB Niaga Auto Finance (Subsidiary) • BMC Offsite Training in Bandung • The Conference On The Emerging Technologies That Matter in Singapore • Digital Leadership Series in Jakarta Has no affiliation with other members of the Board of Directors, the Board of Commissioners, nor the Majority Shareholder or Controlling Shareholder. 105
  106. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management BOARD OF DIRECTORS PROFILES Megawati Sutanto Director of Credit Rita Mas ’Oen Director of Operations & Information Technology Indonesian Citizen Nationality Indonesian Citizen 56 years Age 55 years Jakarta Domicile Jakarta Educational Background • Master Degree in Business Administration from Pepperdine University, USA (1988) • Bachelor Degree from University of Southern California, USA (1985) Bachelor of Science in Computer Science from Arizona State University, Arizona, USA (1984) History of Positions Legal Basis of Appointment Serves as the Director of Credit of CIMB Niaga based on the decision of the EGMS on 15 December 2010, effective 3 March 2011, with the most recent re-appointment being at the AGMS on 15 April 2016. • Director Operations & IT, PT Bank Internasional Indonesia Tbk (2007 - 2009) • Chief Operations Officer and Board of Commissioner, PT Wahana Ottomitra Multiartha Tbk (2005 – 2009), • Director PT Kustodian Sentral Efek Indonesia (1997 – 1998) • Citigroup Indonesia with latest position as Director, Senior Country Operations Officer (1985 – 2005) Work Experience • Head of Corporate Banking PT Bank Danamon Tbk (2007 – 2010) • Deputy Director PT Bank DBS Indonesia (2003 – 2006) • Head Credit Wholesale Banking, Standard Chartered Bank (2000 – 2003) • General Manager of Corporate Banking Credit & Marketing, PT Bank Dagang Nasional Indonesia (1997 – 1998) • Deputy Head Domestic Corporate, Hongkong Bank (1995 – 1997) Has no concurrent positions as a member of the Board of Commissioners, as a member of the Board of Directors, as a member of a Committee, nor other positions Concurrent Positions Has served as the Director of Operations & Information Technology of CIMB Niaga since March 2012, with the most recent re-appointment being at the AGMS on 15 April 2016. Previously served as the Director of Human Resources of CIMB Niaga based on the decision of the EGMS on 27 August 2009, effective 16 November 2009. • BMC Offsite Training in Bandung • Digital Leadership Series in Jakarta • Credit Forum : Multifinance in Jakarta Has no affiliation with other members of the Board of Directors, the Board of Commissioners, nor the Majority Shareholder or Controlling Shareholder. 106 2017 Training and Education* Affiliations Has no concurrent positions as a member of the Board of Commissioners, as a member of the Board of Directors, as a member of a Committee, nor other positions • BMC Offsite Training in Bandung • Linkage Clinic 2017 in Jakarta • Credit Forum : Multifinance in Jakarta Has no affiliation with other members of the Board of Directors, the Board of Commissioners, nor the Majority Shareholder or Controlling Shareholder. Annual Report CIMB NIAGA 2017
  107. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Fransiska Oei Director of Compliance , Corporate Affairs & Legal Vera Handajani Director of Risk Management Indonesian Citizen Nationality Indonesian Citizen 46 years Age 60 years Jakarta Domicile Jakarta • MBA Business from Kellogg – Hong Kong University Science and Technology, Hong Kong/USA (2013) • Bachelor Degree in Management Economy from University of Trisakti, Jakarta (1994) Educational Background • Business Law Course from Warnborough College, Oxford, England (1982) • Bachelor Degree in Law from University of Trisakti, Jakarta (1981) History of Positions Serves as the Director of Risk Management of CIMB Niaga based on the decision of the EGMS on 26 July 2013, effective 26 November 2013,with the most recent re-appointment being at the AGMS on 15 April 2016. Legal Basis of Appointment Appointed as the Director of Compliance, Corporate Secretary & Legal of CIMB Niaga at the AGMS dated 15 April 2016, effective 27 July 2016 • Head of Operational Risk Greater China and Markets Asia Pacific Royal Bank of Scotland, Hong Kong (2012 – 2013) • Head of Financial Institutions Credit & Trading Credit Risk Management, Greater China & South Korea in Royal Bank of Scotland, Hong Kong (2010 – 2012) • Vice President, Regional Risk Asia (based in Hong Kong) ABN AMRO Bank - Credit Risk Management and Asset Restructuring & Recovery for Indonesia, APAC and Middle East (1999 - 2007) • Served in various positions in several countries, such as Hong Kong, Singapore, and Indonesia from 1995 Work Experience • Legal Director, Compliance and Corporate Secretary PT Bank Danamon Indonesia Tbk (2009 – 2016) • Legal Director, Compliance and Corporate Secretary PT Bank Internasional Indonesia Tbk (2005 – 2009) • Senior Advisor Legal & Compliance, PT Bank International Indonesia Tbk (2004 – 2005) • Board of Commissioner PT Bank Mandiri Tbk (2004 – 2005) • Founder & Senior Partner, LBAF Law Firm (2002 – 2004) • Legal Director, Compliance and other, PT Bank International Indonesia Tbk (2000 – 2001) • Chief of Staff, Legal & Compliance Director Citibank NA (1998 – 2000) Has no concurrent positions as a member of the Board of Commissioners, as a member of the Board of Directors, as a member of a Committee, nor other positions Concurrent Positions • BMC Offsite Training in Bandung • Refocusing on Credit Management, Credit Risk Model, Pricing and Being Prepared for Upcoming Regulation Training in Jakarta • Lean Six Sigma Training in Jakarta • Basel III - Net Stable Funding Ratio Training in Jakarta 2017 Training and Education* Has no affiliation with other members of the Board of Directors, the Board of Commissioners, nor the Majority Shareholder or Controlling Shareholder. Affiliations Annual Report CIMB NIAGA 2017 Has no concurrent positions as a member of the Board of Commissioners, as a member of the Board of Directors, as a member of a Committee, nor other positions • BMC Offsite Training in Bandung • Common Report Standard - Seminar in Jakarta • Indonesia - Korea Financial Cooperation Forum Challenges and Areas of Cooperation in the financial Industries of Indonesia & Korea in Jakarta Has no affiliation with other members of the Board of Directors, the Board of Commissioners, nor the Majority Shareholder or Controlling Shareholder. 107
  108. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management BOARD OF DIRECTORS PROFILES Pandji P . Djajanegara Director of Sharia Banking Hedy Lapian Director of Human Resources Indonesian Citizen Nationality Indonesian Citizen 59 years Age 52 years Jakarta Domicile Jakarta • MBA in Finance from the University of Pittsburgh, USA (1985) • Bachelor Degree in Economics from Parahyangan University, Bandung (1983) Educational Background • MBA, Erasmus Universiteit, Rotterdam, Netherlands (1991) • Bachelor Degree in Economics, University of Trisakti (1989) History of Positions Serves as the Director of Human Resources of CIMB Niaga based on the decision of the AGMS on 15 April 2016, effective 16 August 2016 Legal Basis of Appointment • Independent Commissioner, PT Asuransi Tokio Marine Indonesia (2015 – 2016) • Managing Director, Chief Risk Officer PT Bank Maybank Indonesia Tbk (d/h PT Bank Internasional Indonesia Tbk) (2010 – 2014) • Commercial Banking Director Barclays Indonesia (2009 – 2010) • Country Head of Corporate Coverage Indonesia, ABN Amro Jakarta (2007 – 2008) • Director & CFO PT AIG Lippo Life (2001 – 2006) • Corporate Banking Director PT Bank Maybank Indonesia Tbk (d/h PT Bank Internasional Indonesia Tbk) (2000 – 2001) • Corporate Banking Director American Express Bank (1994 – 2000) Work Experience Has no concurrent positions as a member of the Board of Commissioners, as a member of the Board of Directors, as a member of a Committee, nor other positions • • • • BMC Offsite Training in Bandung Digital Leadership Series in Jakarta Promoting The Right Person in Jakarta Personal Branding and Effective Communication Skills for Executive in Jakarta Has no affiliation with other members of the Board of Directors, the Board of Commissioners, nor the Majority Shareholder or Controlling Shareholder. 108 Concurrent Positions 2017 Training and Education* Affiliations Serves as the Director of the Sharia Business Unit based on the decision of the AGMS on 15 April 2016, effective 28 September 2016 • • • • Chief of Syariah Banking CIMB Niaga (2015 - 2016) Chief of Commercial Banking CIMB Niaga (2014-2015) Chief of Corporate Banking CIMB Niaga (2011-2014) Head of Credit Restructuring & Settlement CIMB Niaga (2009-2010) • Has been with CIMB Niaga since 1992 and started his career by participating in the Bank Niaga Executive Training Program Has no concurrent positions as a member of the Board of Commissioners, as a member of the Board of Directors, as a member of a Committee, nor other positions • • • • BMC Offsite Training in Bandung Digital Leadership Series in Jakarta BLS - Syariah Acceptance Criteria in Jakarta Refreshment Sertifikat Manajemen Risiko in Jakarta Has no affiliation with other members of the Board of Directors, the Board of Commissioners, nor the Majority Shareholder or Controlling Shareholder. Annual Report CIMB NIAGA 2017
  109. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report John Simon Director of Treasury & Capital Market Lani Darmawan Director of Consumer Banking Indonesian Citizen Nationality Indonesian Citizen 56 years Age 46 years Jakarta Domicile Jakarta Bachelor Degree in Dentistry, University of Trisakti (1985) Educational Background • Master of Business Administration from Cleveland State University, Ohio, USA (1996) • Bachelor of Commerce from University of Toronto, Canada (1995) History of Positions Serves as the Consumer Banking Director CIMB Niaga based on AGMS 15 April 2016 decision which went into effect on 3 May 2016 • Retail Banking Director PT Bank Maybank Indonesia (2012 – 2015) • EVP Head of Network PT Bank Permata Tbk (2010 – 2012) • Consumer Banking Country Head (Executive Officer) Standard Chartered Indonesia (2007 – 2010) • Consumer Banking Country Head Standard Chartered Bank Indonesia (2004 - 2007) • Consumer Banking Group Head LippoBank (2000 - 2004) • Vice President in Citibank Indonesia (2000) • Deputy General Manager in PT Bank Central Asia Tbk (1990 – 1999) Has no concurrent positions as a member of the Board of Commissioners, as a member of the Board of Directors, as a member of a Committee, nor other positions • BMC Offsite Training in Bandung • Digital Leadership Series in Jakarta Has no affiliation with other members of the Board of Directors, the Board of Commissioners, nor the Majority Shareholder or Controlling Shareholder. Annual Report CIMB NIAGA 2017 Legal Basis of Appointment Serves as the Treasury & Capital Director CIMB Niaga based on AGMS 27 March 2014 decision which went into effect on 29 August 2014 Work Experience • Head of Trading & Structuring CIMB Niaga (2007 – 2014) • Head of Treasury Department in RGM Group Indonesia (2005 – 2007) • Interbank FX & Derivatives Trader, Citibank Indonesia (2003 – 2005) • Relationship Manager/ Product Manager Citibank N.A. Indonesia (2000 - 2003) • Treasury Manager Unit Officer Citibank N.A. Indonesia (1997 - 1999) Concurrent Positions 2017 Training and Education* Affiliations Has no concurrent positions as a member of the Board of Commissioners, as a member of the Board of Directors, as a member of a Committee, nor other positions • BMC Offsite Training in Bandung • Workshop Sertifikasi Treasury Dealer Program Khusus (Fast Track) in Jakarta • Refreshment Sertifikasi Manajemen Risiko in Jakarta • Bloomberg The Year Ahead Asia in Jakarta • GWB Post AMS 2017 in Malaysia Has no affiliation with other members of the Board of Directors, the Board of Commissioners, nor the Majority Shareholder or Controlling Shareholder. 109
  110. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management BOARD OF DIRECTORS PROFILES Rahardja Alimhamzah Director of Business Banking Indonesian Citizen Nationality 51 years Age Jakarta Domicile • Master Degree of Finance & Accounting, University of Indonesia (1994) • Bachelor Degree in Industrial Engineering, University of New South Wales, Australia (1989) Educational Background History of Positions Serves as the Business Banking Director CIMB Niaga based on EGMS 24 August 2017 and went into effect after the EGMS. Legal Basis of Appointment • Senior Partner PT Sinergi Kapital Asia (2015 – 2016) • Corporate Banking – Managing Director, Head of Institutional Banking Group PT Bank DBS Indonesia (2014) • Corporate Banking – Managing Director, Global Banking, PT Bank Internasional Indonesia Tbk (2009 – 2014) • Corporate Banking – Director, Head of Corporate & Investment Banking PT Bank Rabobank International Indonesia, Jakarta (2003 – 2009) • Corporate Banking Unit  – Vice President (Executive Officer) Citibank N.A., Jakarta (2000 – 2003) • Remedial Management - Vice President (Executive Officer) Citibank N.A., Jakarta (1998 – 2000) • Asian Multinational Unit - Asst. Vice President (Executive Officer) Citibank N.A., Jakarta (1997 – 1998) • Manager - Corporate Banking Unit American Express Bank, Jakarta Branch (1995 – 1997) • Manager - Financial Institution American Express Bank, Jakarta Branch (1994 – 1995) • Asst. Manager - Financial Institutions Standard Chartered Bank (1991 – 1994) • Management Trainee Bank Summa (1990 – 1991) Work Experience Has no concurrent positions as a member of the Board of Commissioners,as a member of the Board of Directors,as a member of a Committee, nor other positions • • • • BMC Offsite Training in Bandung Digital Leadership Series in Jakarta Credit Forum : Multifinance in Jakarta Panel Discussion : Intervention of Controlling Shareholders on GCG Implementation in Jakarta • Refreshment on Risk Management Certificate in Jakarta Has no affiliation with other members of the Board of Directors, the Board of Commissioners, nor the Majority Shareholder or Controlling Shareholder. Concurrent Positions 2017 Training and Education* Affiliations * Refer to Corporate Governance section for full information of Training and Education of Board of Directors 110 Annual Report CIMB NIAGA 2017
  111. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Sharia Supervisory Board 's Profiles Prof. Dr. Fathurrahman Djamil, MA Member Prof. Dr. M. Quraish Shihab, MA Chairman Indonesian Citizen Nationality Indonesian Citizen 74 years Age 58 years Jakarta Domicile South Tangerang • Doctorate in Tafsir Al-Quran, Universitas Al-Azhar Cairo, Egypt (1982) • Master in Tafsir and Hadits, University of Al-Azhar Cairo, Egypt (1969) • Bachelor Degree in Tafsir and Hadits, University of Al-Azhar Cairo, Egypt (1967) Educational Background • Doctorate in Islamic Law Theory, UIN Syarif Hidayatullah (1994) • Master in Sharia, UIN Syarif Hidayatullah (1987) • Bachelor Degree in Sharia, UIN Syarif Hidayatullah (1982) • Baccalaureate in Sharia, UIN Syarif Hidayatullah (1981) History of Positions Has served as the Chairman of the Sharia Supervisory Board of CIMB Niaga since 2009, with the most recent re-appointment being at the AGMS on 15 April 2016. • Council Of International Muslim Elders (2015 - present) • Director of Center of Quranic Studies, Jakarta (2003 present) • Member of Pentashih Al-Quran, Department of Religious Affairs of the Republic of Indonesia (1989 - present) • Post Graduate Professor at Universitas Islam Negeri (UIN) Syarif Hidayatullah (1992 - 2013) • Member of MPR-RI (1982 - 2002) • Indonesia Ambassador to the Arab Republic of Egypt, Djibouti & Somalia (1999 - 2002) • Minister of Religious Affairs of the Republic of Indonesia (1998 - 1999) • Member of the Sharia Board of Bank Muamalat Indonesia (1992 - 1999) • Chairman of the Indonesian Ulema Council (Headquarter) (1985 - 1998) • Rectorate of UIN Syarif Hidayatullah (1992 - 1998) Has no concurrent positions as a member of the Board of Commissioners,as a member of the Board of Directors,as a member of a Committee, nor other positions None Has no affiliation with other members of the Board of Directors, the Board of Commissioners, nor the Majority Shareholder or Controlling Shareholder. Annual Report CIMB NIAGA 2017 Legal Basis of Appointment Has served as a member of the Sharia Supervisory Board of CIMB Niaga since 2009 with the most recent re-appointment being at the AGMS on 15 April 2016. Work Experience • Member of Sharia Supervisory Board of LB Salam (2007 – 2012) • Dean of Islamic Studies Faculty at Muhammadiyah University of Jakarta (2000 – 2004) • Vice Rector for Academic Affairs at Syarif Hidayatullah State Islamic Institute of Jakarta (1997 – 2000) • Vice Dean for Student Affairs at Sharia Faculty, IAIN Syarif Hidayatullah Jakarta (1994 – 1996) • Lecturer on Islamic Legal Procedure at Law Faculty of Muhammadiyah University of Jakarta (1990 – 1995) • Head of Muamalat Department Sharia Faculty, IAIN Syarif Hidayatullah Jakarta (1987 – 1989) • Lecturer on Islamic Legal Philosophy at Law Faculty of Muhammadiyah University of Jakarta (1985 – 2000) • Lecturer on Islamic Court in Indonesia at Sharia Faculty of Syarif Hidayatullah State Islamic Institute (1982 – 1987) • Secretary on Islamic Court at Sharia Faculty, Syarif Hidayatullah State Islamic Institute of Jakarta (1982 – 1987) Concurrent Positions • Member of Sharia Supervisory Board of Adira Finance Syariah • Member of Sharia Supervisory Board of CIMB Niaga Autofinance • Chairman of Sharia Supervisory Board of Bank BCA Syariah • Member of Sharia Supervisory Board of AIA Sharia Branch 2017 Training and Education Affiliations Workshop DPS Sharia Banking, DSN-MUI Has no affiliation with other members of the Board of Directors, the Board of Commissioners, nor the Majority Shareholder or Controlling Shareholder. 111
  112. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management SHARIA SUPERVISORY BOARD ’S PROFILES Dr. Yulizar Djamaludin Sanrego M.Ec. Member Nationality Indonesian Citizen Age 45 years Domicile Bogor Educational Background • Doctorate in Islamic Economics, University Islam Negeri (UIN) Syarif Hidayatullah (2010) • Master Degree Islamic Economics & Finance, International Islamic University Malaysia (2005) • Bachelor Degree in Islamic Economics, University Djuanda Ciawi (1999) • Head Department of Islamic Economics – Tazkia Islamic Business School, Bogor Indonesia (2005 – 2007) • Lecturer, International Class, Faculty of Economic, Islamic State University UIN) Syarif Hidayatullah, Jakarta - Indonesia (2005 – 2006) • Lecturer, Shariah Economics & Banking Institute (SEBI) Jakarta - Indonesia (2005 – 2006) • Graduate Research Assistance & Graduate Teaching Assistance to Prof. Dr. Dato Jamil Osman (Ex Deputy Rector of International Islamic University Malaysia, IIUM) (2003 – 2005) • Vice Editor in Chief, ISEFID Review Vol.3 No.3, Journal of Islamic Economic Forum for Indonesian Development (ISEFID) (2004) • Lecturer Faculty of Islamic Studies (Mua’malat/Islamic Economy). University of Djuanda, Bogor – Indonesia (2001) • Assistant Lecturer Faculty of Economic, University of Djuanda. Bogor - Indonesia (1999 – 2000) • Assistant Lecturer in Arabic Language Faculty of Islamic Studies Mua’malat/Islamic Economy). University of Djuanda, Bogor – Indonesia (1996 – 1997) History of Positions Legal Basis of Appointment Has served as a member of the Sharia Supervisory Board of CIMB Niaga since 2013, based on the AGMS on 28 March 2013, with the most recent re-appointment being at the AGMS on 15 April 2016 Work Experience • Lecturer, Post Graduate Program MBS IPB (2012 – 2013) • Lecturer, Post Graduate – Sekolah Tinggi Ilmu Ekonomi Ahmad Dahlan, Jakarta (2009) • Lecturer, Post Graduate State Islamic University (UIN) Sunan Gunung Djati, Bandung - Indonesia (2006 – 2009) • Vice Chairman, Academic & Student Affairs – Tazkia Islamic Business School, Bogor Indonesia (2006 – 2008) • Invited Researcher (Fellow Researcher) at Center for Central Banking Education and Studies, Central Bank of INDONESIA (PPSK – BI) (2006 – 2008) Concurrent Positions • Member of Sharia Supervisory Board of BPRS BTB • Member of Sharia Supervisory Board of PBMT Ventura • Member of Sharia Supervisory Board of LPEI Exim 2017 Training and Education None Affiliations Has no affiliation with members of the Board of Directors, the Board of Commissioners, nor the Majority Shareholder or Controlling Shareholder. Information on Management Changes After the End of the Fiscal Year For Tengku Dato’ Sri Zafrul Tengku Abdul Aziz, appointed Commissioner CIMB Niaga at the EGMS 25 August 2017, fit and proper test has been approved by OJK and effectively began serving on 16 March 2018. 112 Annual Report CIMB NIAGA 2017
  113. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Employees & Competency Development Statistics Number of Employees by Organisation Level Organisation Level 2017 2016 Senior Management 184 177 Middle Management 1,378 1,385 Junior Management 7,201 7,276 Non Management 4,019 4,347 12,782 13,185 2017 2016 1,030 1,086 Diploma 1 46 47 Diploma 2 19 21 Diploma 3 2,033 2,211 Total Number Employees by Education Level Education Level Up to High School Diploma 4 6 8 S1 9,156 9,334 S2 490 476 S3 2 2 12,782 13,185 Total Number of Employees by Employment Status Status Permanent Employee Contract Employee Total 2017 2016 11,475 11,862 1,307 1,323 12,782 13,185 Employee Competency Development Programs 2017 2016 Managerial Leadership & Personal Development Training (number of participant/training program) 2,147 4,900 Credit Management 1,834 4,691 Risk Management Certification Program 1,666 14,247 Sales 4,996 10,696 Service 21,625 8,260 Operations & IT 17,921 6,697 Others 51,214 38,466 101,403 87,957 Total Training & Competency Development Cost Training Costs (Rp million) 2017 2016 94,744 93,136 Domestic Seminars & Courses 4,697 6,553 Overseas Seminars & Courses 303 373 Training Center 16,332 19,865 Operational Training 51,825 49,100 Training Implementation Corporate Culture Total Annual Report CIMB NIAGA 2017 927 329 168,871 169,415 113
  114. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management EMPLOYEES & COMPETENCY DEVELOPMENT STATISTICS Training based on Type, Objective and Participant/ Level Type (number of participant/training program) Objective Senior Management Middle Management Junior & Non Management 2017 2017 2017 2016 Managerial Leadership & Personal Development Develop leadership, managerial skill as well employee’s potential 99 2016 151 417 2016 751 1,631 3,998 Credit Management Improve credit competency on credit value chain and develop integrated credit process 71 158 308 1,005 1,455 3,528 Risk Management Certification Program Develop employee’s skill in managing risk and improve the compliance 71 198 452 1,779 1,143 12,270 Sales Improve employee’s competency and skill on sales aspect 75 167 722 1,216 4,199 9,313 Service Develop competency and skill on services and customer experience 153 2 1,465 117 20,007 8,141 Operations & IT Improve competency and skill on operational business and develop capability on information technology 167 71 1,847 852 15,907 5,774 Other Develop competency and skill based on business needs in order to achieve Company’s goal 619 587 5,341 4,140 45,254 33,739 Total   1,255 1,334 10,552 9,860 89,596 76,763 TRAINING AND DEVELOPMENT FOR THE BOARD OF COMMISSIONERS, BOARD OF DIRECTORS, COMMITTEES, CORPORATE SECRETARY AND INTERNAL AUDIT Information on the education and training for the Board of Commissioners, Board of Directors, Committees, Corporate Secretary and Internal Audit Unit is included in the discussion in the Corporate Governance Report. 114 Annual Report CIMB NIAGA 2017
  115. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Shareholder Composition TOP 20 LARGEST SHAREHOLDERS No . Name Number of Shares 22,991,336,581 % 1 CIMB GROUP SDN BHD 2 PT COMMERCE KAPITAL 255,399,748 91.48% 1.02% 3 CITIBANK NEW YORK S/A GOVERNMENT OF NORWAY 16 196,211,400 0.78% 4 BANK CIMB NIAGA TBK PT 194,407,492 0.77% 5 CITIBANK NEW YORK S/A GOVERNMENT OF NORWAY 15 136,997,900 0.55% 6 PT AIA FINL - UL EQUITY 121,095,600 0.48% 7 UBS AG SINGAPORE NON-TREATY OMNIBUS 91,297,330 0.36% 8 THE NT TST CO S/A HONESTY LLC 60,000,000 0.24% 9 PHILLIP SECURITIES PTE LTD 42,780,960 0.17% 10 KINDARTO KOHAR 42,250,000 0.17% 11 CIMB SECURITIES (SINGAPORE) PTE LTD 32,970,539 0.13% 12 REKSA DANA ASHMORE DANA EKUITAS NUSANTARA 31,052,000 0.12% 13 ASURANSI JIWA MANULIFE INDONESIA 28,372,600 0.11% 14 HSBC-FUND SERVICES A/C 006 HSBC (MALAYSIA) TRUSTEE BHD A/C AFFIN HWANG SELECT A 28,172,800 0.11% 15 PT ELANG MAHKOTA TEKNOLOGI TBK 25,000,000 0.10% 16 OCBC SECURITIES PTE LTD -CLIENT A/C 24,413,035 0.10% 17 HPAM ULTIMA EKUITAS 1 21,450,000 0.09% 18 CLEARSTREAM BANKING S.A. LUXEMBOURG 19,990,436 0.08% 19 LINDRAWATI WIDJOJO 19,128,543 0.08% 20 PT AIA FINL - INV 17,866,100 0.07% 751,413,779 2.99% 25,131,606,843 100.00% Others Total SHAREHOLDERS WITH MORE THAN 5% SHARE During 2017, there were no institutional shareholders with shares above 5% with CIMB Niaga shares other than CIMB Group Sdn Bhd, which is the controlling shareholder of the Bank. However, CIMB Niaga still guarantees the rights of the shareholders as stipulated in Article 11 Paragraph 3. of the Articles of Association, that shareholders whether individually or jointly representing at least 1/20 of the total number of shares with valid voting rights, may propose agenda items to the GMS, including in this case nominations to the Board of Directors and Board of Commissioners of the Bank. No Description 7.50% 1.02% CIMB Group Sdn Bhd PT Commerce Kapital Other public shareholders <5% 91.48% As of 31 December 2017 Number of Shares Nominal Amount % 1 CIMB Group Sdn Bhd 22,991,336,581 1,149,566,829,050 91.48% 2 PT Commerce Kapital 255,399,748 12,769,987,400 1.02% 3 Other public shareholders <5% 1,884,870,514 449,920,508,900 7.50% 25,131,606,843 1,612,257,325,350 100.00% Total Paid-up Capital Annual Report CIMB NIAGA 2017 115
  116. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management SHAREHOLDER COMPOSITION COMMISSIONER AND DIRECTOR SHAREHOLDINGS All members of the Board of Commissioners and the Board of Directors are required to report their dealings in banking and /or CIMB Group shares within 2 business days. As of 31 December 2017, the Special Register of Shareholding information on the Board of Commissioners and Board of Directors is detailed as below: Commissioner Shareholdings Name Dato’ Sri Nazir Razak CIMB Niaga Shares CIMB Group Shares Other Bank/ Company Shares Financial Institution Non Bank Shares - 7,152,0291) 43,625,712 - Glenn Muhammad Surya Yusuf - - - - Pri Notowidigdo - - - 180 (PT Profesindo Reksa Indonesia) Zulkifli M. Ali - - - - David Richard Thomas - 165,352 - - Armida Salsiah Alisjahbana - - - - Jeffrey Kairupan - - - 1,000 (Tehillah Indonesia Synergi) - - - - 60,031 766,632 - - Ahmad Zulqarnain Onn2) Tengku Dato’ Sri Zafrul Tengku Abdul Aziz3) 1) Shares granted from CIMB Group Holdings Berhad under the exercise of Special Interim Dividend-In-Specie and registered under the name of CIMB Securities (Singapore) Pte Ltd A/C Client – Trust. 2) Resigned as Commissioner based on EGMS 24 August 2017. 3) Appointed as Commissioner on 24 August 2017 and effective on 16 March 2018. Director Shareholdings Name Tigor M. Siahaan CIMB Niaga Shares CIMB Group Shares Other Bank/ Company Shares Financial Institutions Non Bank Shares 6,250,956 - - - 9,9971) 97,059 - - Rita Mas’Oen 27,9591) 238,071 - - Megawati Sutanto 1) 28,149 207,908 - - Vera Handajani 16,8841) 163,999 - - 7,2251) 117,717 - - Lani Darmawan - 46,902 - - Fransiska Oei - 30,000 1,234,730 - Hedy Lapian - - - - 325 39,402 - - - - - - Wan Razly Abdullah John Simon Pandji P. Djajanegara Rahardja Alimhamzah2) 1) Shares granted from CIMB Group Holdings Berhad under the exercise of Special Interim Dividend-In-Specie and registered under the name of CIMB Securities (Singapore) Pte Ltd A/C Client – Trust. 2) Effective as Director based on EGMS 24 August 2017. Management-traded CIMB Niaga Shares Name Transaction Period Share-traded Quantity Share Quantity after Trading Tigor M. Siahaan January 2017 4,853,600 6,250,956 Shareholder Quantity Share Quantity % Type of Shareholders with <5% Shares Type Individual (cumulative) 11,112 266,125,612 1.04% Institution (cumulative) 852 1,874,144,650 7.48% 116 Annual Report CIMB NIAGA 2017
  117. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Number of Shareholders & Percentages Based on Classification No Classification Shareholders Number of Shares % 1 Insurance 39 211,442,441 0.84% 2 Commercial Bank 13 14,367 0.00% 3 Cooperative 13 1,348,613 0.00% 4 Pension Fund 43 16,106,874 0.06% 5 Social Institution 35 2,761,905 0.01% 6 Limited Company 234 201,761,459 0.79% 7 Individual 10,991 257,878,561 1.01% 8 Mutual Fund 62 166,195,688 0.66% 9 Others 62 76,804,410 0.30% 10 Foreign Company 351 23,937,729,406 95.24% 11 Foreign Individual 121 8,247,051 0.03% 12 Owner Unlisted 1 251,316,068 1.00% 11,965 25,131,606,843 100.00% Total Development of Capital Structure and Number of Outstanding Shares in the Last Five Years During the period 2013 to 2017, CIMB Niaga did not issue new shares, thus the composition of capital as of 31 December 2017 remains unchanged, as detailed below : Description Authorized Capital A Class Nominal Rp5,000 Share Quantity Nominal (Rp) 50,886,460,336 2,900,000,000,000 71,853,936 359,269,680,000 B Class Nominal Rp50 50,814,606,400 2,540,730,320,000 Issued/Paid Capital 25,131,606,843 1,612,257,325,350 A Class Nominal Rp5,000 71,853,936 359,269,680,000 B Class Nominal Rp50 25,059,752,907 1,252,987,645,350 Share Not Yet Issued/Paid 25,754,853,493 1,287,742,674,650 A Class Nominal Rp5,000 B Class Nominal Rp50 Annual Report CIMB NIAGA 2017 - - 25,754,853,493 1,287,742,674,650 117
  118. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management History of Shares Issued and Listing During 2017 , CIMB Niaga did not conduct a private placement. The history of the listing and issuance of CIMB Niaga shares up to the end of the fiscal year is detailed below: Year New Shares Issued Share Quantity Description Paid Capital Quantity Stock Exchange Listing Date Shares Share Quantity 1989 5,000,000 IPO 29-11-1989 5,000,000 5,000,000,000 1991 1,170,953 Share dividend 19-02-1991 6,170,953 6,170,953,000 1992 5,252,500 Limited Public Offering with preemptive Rights Issue (PUT I) 23-12-1992 11,423,453 11,423,453,000 1993 46,353,964 Company Listing 01-03-1993 57,777,417 57,777,417,000 1995 57,777,417 Bonus shares from Agio 26-12-1995 115,554,834 115,554,834,000 1996 42,020,000 Convertible Bond 15-02-1996 157,574,834 157,574,834,000 1996 31,514,487 Limited Public Offering with preemptive Rights Issue (PUT II) 15-11-1996 189,089,321 189,089,321,000 1997 A Class (@Rp500) 378,178,642 Nominal Amount Resolution (Rp1,000 to Rp500/share) 08-09-1997 378,178,642 189,089,321,000 1997 A Class (@Rp500) 340,360,709 Bonus shares from Agio 16-09-1997 718,539,351 359,269,675,500 1999 B Class (@Rp5) 71,135,395,749 Limited Public Offering with preemptive Rights Issue (PUT III) 09-08-1999 A Class 718,539,351 B Class 71,135,395,749 2001 2004 2004 2004 2005 2008 2010 B Class (@Rp5) 6,392,132,084 Limited Public Offering without preemptive Rights Issue (excluding 782,460,672 B Class share which were not listed) 21-3-2001 A Class (@Rp500) 9 B Class (@Rp5) 7 Limited Public Offering without preemptive Rights Issue 12-5-2004 A Class (@Rp5,000) B Class (@Rp50) Merger of 10 times nominal value (reverse stock split) 21-5- 2004 B Class (@Rp50) 3,949,757,610 Limited Public Offering with preemptive Rights Issue (PUT IV) 31-8-2005 B Class (@Rp50) 417,809,500 ESOP Implementation 20-8-2004 691,538,316 Warrant Series 1 31-8-2005 B Class (@Rp50) 11,051,151,514 Conversion of 3,915,733,039 PT Bank Lippo Tbk shares in merger 1-11-2008 B Class (@Rp50) 1,196,743,183 Limited Public Offering with preemptive Rights Issue (PUT V) (excluding 11,967,431 B Class shares which were not listed) 30-12-2010 A Class 718,539,351 B Class 77,527,527,833 A Class 718,539,360 B Class 77,527,527,840 A Class 71,853,936 B Class 7,752,752,784 A Class 71,853,936 B Class 11,702,510,394 A Class 71,853,936 B Class 12,811,858,210 A Class 71,853,936 B Class 23,863,009,724 A Class 71,853,936 B Class 25,059,752,907 359,269,675,500 355,676,978,745 359,269,675,500 387,637,639,165 359,269,675,500 387,637,639,200 359,269,680,000 387,637,639,200 359,269,680,000 585,125,519,700 359,269,680,000 640,592,910,500 359,269,680,000 1,193,150,486,200 359,269,680,000 1,252,987,645,350 Total number of issued shares up to 31 December 2017 is detailed below: Stock type Total Stock Exchange Number of A Class listed-shares 71,853,936 Indonesia Stock Exchange Number of B Class listed-shares 24,808,436,839 Indonesia Stock Exchange Number of B Class not-listed-shares 118 251,316,068 Not Listed Annual Report CIMB NIAGA 2017
  119. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Chronology of Other Securities Listings Information on chronology of CIMB Niaga other securities issued and listed are as follow : Bonds and Loans Publication Date Due Date Tenor (years) Coupon Currency Nominal (Rp & Other Currencies) Bonds Rating 2016 2017 Shelf Registration Bond II Phase II Year 2017 Series A 23-Aug-17 3-Sep-18 1 6.75% Rp 802,000,000,000 N/A AAA (Pefindo) Shelf Registration Bond II Phase III Year 2017 Series A 2-Nov-17 12-Nov-18 1 6.20% Rp 500,000,000,000 N/A AAA (Pefindo) Shelf Registration Bond I Phase II Year 2013 Series C 20-Nov-13 20-Nov-18 5 9.75% Rp 850,000,000,000 AAA (Pefindo)/ AAA (Fitch) AAA (Pefindo)/ AAA (Fitch) Shelf Registration Bond II Phase I Year 2016 Series B 3-Nov-16 3-Nov-19 3 8.00% Rp 386,000,000,000 AAA (Pefindo) AAA (Pefindo) Shelf Registration Bond II Phase II Year 2017 Series B 23-Aug-17 23-Aug-20 3 7.70% Rp 376,000,000,000 N/A AAA (Pefindo) Shelf Registration Bond II Phase III Year 2017 Series B 2-Nov-17 2-Nov-20 3 7.50% Rp 657,000,000,000 N/A AAA (Pefindo) Bank CIMB Niaga Subordinated Bond II Year 2010 23-Dec-10 23-Dec-20 10 10.85% Rp 1,600,000,000,000 AA (Fitch) AA (Fitch) Shelf Registration Bond II Phase I Year 2016 Series C 3-Nov-16 3-Nov-21 5 8.25% Rp 182,000,000,000 AAA (Pefindo) AAA (Pefindo) Shelf Registration Bond II Phase II Year 2017 Series C 23-Aug-17 23-Aug-22 5 8.15% Rp 822,000,000,000 N/A AAA (Pefindo) Shelf Registration Bond II Phase III Year 2017 Series C 2-Nov-17 2-Nov-22 5 7.75% Rp 843,000,000,000 N/A AAA (Pefindo) 8.52% Rp 7,018,000,000,000 Total outstanding Bonds Matured Shelf Registration Bond II Phase I Year 2016 Series A 3-Nov-16 13-Nov-17 1 7.25% Rp 432,000,000,000 AAA (Pefindo) AAA (Pefindo) Shelf Registration Bond I Phase I Year 2012 Series B 30-Oct-12 30-Oct-17 5 7.75% Rp 1,400,000,000,000 AAA (Pefindo)/ AAA (Fitch) AAA (Pefindo)/ AAA (Fitch) Bank CIMB Niaga Subordinated Bond I Year 2010 8-Jul-10 8-Jul-17 7 11.30% Rp 1,380,000,000,000 AA (Fitch) AA (Fitch) Bank CIMB Niaga Bond I Year 2011 Series B 23-Dec-11 23-Dec-16 5 8.30% Rp 1,320,000,000,000 AAA (Pefindo) N/A Shelf Registration Bond I Phase II Year 2013 Series B 20-Nov-13 20-Nov-16 3 9.15% Rp 315,000,000,000 AAA (Pefindo) N/A Shelf Registration Bond I Phase II Year 2013 Series A 20-Nov-13 20-Nov-15 2 8.75% Rp 285,000,000,000 AAA (Pefindo) N/A Shelf Registration Bond I Phase I Year 2012 Series A 30-Oct-12 30-Oct-15 3 7.35% Rp 600,000,000,000 AAA (Pefindo)/ AAA (Fitch) N/A Bank CIMB Niaga Bond I Year 2011 Series A 23-Dec-11 23-Dec-14 3 7.38% Rp 180.000.000.000 AAA (Pefindo) N/A Annual Report CIMB NIAGA 2017 119
  120. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management List of Business Partnerships CIMB Niaga has developed partnerships with various business partners , domestic and overseas. Through these partnerships, the Bank aims to achieve its established targets as set out in the Bank Business Plan. Among the various forms of partnerships undertaken by the Bank to provide the best financial products and services, as well as best optional transaction access to its customers, are: • Partnership in Sunlife and Sompoo bancassurance products, using the Bank’s distribution network and customer base as a target market; • Partnership in card and network services, such as ATM Bersama, VISA, and Mastercard, in order to expand Bank’s network on card-based products; • Partnership with the software licensee for Silverlake applications in support of the Bank’s digital network; • Partnership with remittance businesses, such as MoneyGram International and Speedsend CIMB Malaysia; • Other forms of partnerships undertaken by the Bank in the interests of business expansion and sustainable performance improvement. Capital Market Supporting Institutions and Professionals Public Accountant PUBLIC ACCOUNTING OFFICE “TANUDIREDJA, WIBISANA, RINTIS & REKAN” (Affiliated with PriceWaterhouseCoopers in Indonesia) Plaza 89 Jl. HR. Rasuna Said Kav. X-7 No.6 Jakarta 12940 – Indonesia Telp. : (62 21) 521 2901 Fax. : (62 21) 529 05555 Website: www.pwc.com/id SHARE REGISTRAR PT Sirca Datapro Perdana Wisma Sirca Jl. Johar No. 18 - Menteng Jakarta Pusat - Indonesia Telp. : (62 21) 3140032, 3905320, 3900645 Fax. : (62 21) 3900671, 3900652 RATING AGENCY PT Pemeringkat Efek Indonesia (Pefindo) Panin Tower - Senayan City, 17th Floor Jl. Asia Afrika Lot 19 Jakarta 12170 – Indonesia Telp. : (62 21) 727 82380 : (62 21) 727 82370 Fax. 120 PT FITCH RATINGS INDONESIA DBS Bank Tower, lantai 24, suite 2403 Jl. Prof. Dr. Satrio, Kav. 3-5, Jakarta 12940 – Indonesia Telp. : (62 21) 298 86800 Fax. : (62 21) 29886820 Website : www.fitchratings.co.id CUSTODIAN PT Kustodian Sentral Efek Indonesia Gedung Bursa Efek Indonesia, Tower I, 5th Floor Jl. Jendral Sudirman Kav. 52– 53, Jakarta 12190 Telp. +62 21 5299 1099 Fax. +62 21 5299 1199 Website: www.ksei.co.id TRUSTEE PT Bank Permata Tbk WTC II, 28th Floor Jl. Jend. Sudirman Kav 29-31, Jakarta 12920 Telp. : +62 21 523 7788 Fax. : +62 21 523 7253 Website : www.permatabank.com NOTARY Kantor Notaris Ashoya Ratam, SH, MKn Jl. Suryo No. 54, Kebayoran Baru Jakarta Selatan 12180 – Indonesia Telp. : (62 21) 29236060 Fax. : (62 21) 29236070 Annual Report CIMB NIAGA 2017
  121. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Periodic Services of Capital Market Supporting Institutions & Professionals in 2017 Supporting Professionals Service Commission (fee) in million Rp (including tax) The Bank’s annual audit fees of Rp7,220 Assignment Period Public Accountant To audit Consolidated Financial Statements for Fiscal Year 2017 Annually for the book of 2017 Legal Consultant No Periodic services None None Appraiser No Periodic services None None Notary No Periodic services None None Data Access and Corporate Information Corporate Secretary Graha CIMB Niaga, 16th Floor Jl. Jend. Sudirman Kav. 58 Jakarta 12190 - Indonesia Tel. : (62-21) 250 5252, 250 5353 Fax. : (62-21) 252 6749 Email : corporate.secretary@cimbniaga.co.id Investor Relations Menara Sentraya, 31th Floor Jl. Iskandarsyah Raya I A Jakarta 12160 - Indonesia Tel. : (62-21) 270 0555 Email : investor.relations@cimbniaga.co.id Information on the Bank Website CIMB Niaga’s website, https://www.cimbniaga.com/ can be accessed easily by the public. Information on the website includes: • Shareholder information up to individual end owner; • Content of the Code of Conduct; • Information on the General Meeting of Shareholders (GMS) including agenda items discussed in the GMS, minutes of the meeting of the GMS, date of GMS announcement, date of GMS summons, date of GMS, as well as the date the summary of the minutes of the GMS is published; • Profiles of the Board of Commissioners and Board of Directors; • Charters of the Board of Commissioners, Board of Directors, Committees, and Internal Audit; • Separate annual financial statements (last 5 years); • Information on banking products and services. Education and Training for the Board of Commissioners, Board of Directors, Committees, Corporate Secretary and Internal Audit Information on the education and training for the Board of Commissioners, Board of Directors, Committees, Corporate Secretary and Internal Audit Unit are included in the discussion in the Corporate Governance Report. Annual Report CIMB NIAGA 2017 121
  122. LIFE ’S GREATEST BLESSING IS A FAMILY FULL OF LOVE Tenun Sumba The traditional woven textile of Sumba is easy to recognize: it always features a pattern of animal figures, such as horses, chickens, cockatoos, turtles or alligators, reflecting a desire to be close and harmonious with family and nature.
  124. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Management Discussion and Analysis Table of Contents 126 Macro Analysis and Banking Industry 130 Business Segment Review 130 Corporate Banking 134 Treasury and Capital Market 138 Transaction Banking 144 Commercial Banking 148 MSME Banking 154 Consumer Banking 166 Sharia Banking 174 Financial Performance Review 175Overview 177 Statements of Financial Position 177Assets 184Liabilities 188Equity 189 Statements of Profit and Loss and Other Comprehensive Income 197 Statements of Cash Flow 198 Financial Ratios 200 Commitments and Contingencies 200 Subsidiary Performance 201 Prime Lending Rate 203 Electronic Network Transactions 206 Other Material Financial Information 206Solvability 208 Collectibility of Loans 209 Capital Structure 210 Investment Property 210 Material Commitments for Capital Expenditure 210 Capital Expenditure 2017 211 Comparison of Target and Realization 2017 211 Projection 2018 211 Material Information and Facts Subsequent to Reporting Date 212 Significant Changes in the Bank and the Group in 2017 212 Information on Dividend Distribution 212 Employee and /or Management Share Ownership 124 Annual Report CIMB NIAGA 2017
  125. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report 213 Realization of Proceeds from Public Offering 214 Material Information on Investment , Expansion, Divestment, 214 Information Containing Material Transactions with Conflict of 214 Spot and Derivative Transactions and Hedging Facilities 215 Significant Agreements 217 Other Important Transactions in Significant Amounts 217 Financial Information That Has Been Reported and Contains 217 Adoption of Foreign Account Tax Compliance Act (FATCA) & 218 Regulatory Changes with Significant Impacts on the Bank and 221 Changes in Accounting Standards 224 Taxpayer Compliance 224 Business Continuity Information Acquisition, and Debt/Capital Restructuring Interests and/or Transactions with Affiliated Parties Extraordinary and Rare Events Common Reporting Standard (CRS) the Impact on Financial Statements 226 Business Prospect 2018 230 Marketing 234 Risk Management 234 Risk Management Focus in 2017 236 Risk Management Implementation 237 Governance & Organization 238 Risk Appetite 239 Risk Management Process 240 Risk Management Infrastructure 242 Risk Culture 243 Three Lines of Defense 243 Anti Fraud Management 245 ICAAP (Internal Capital Adequacy Assessment Process) 247 Sharia (UUS) Risk Management 248 Bank and Consolidated Risk Profile 248 Integrated Risk Management 249 Implementation of Basel II and Basel III 250 Basel II Pillar 3: Capital Disclosure, Risk Exposure and Risk Management Annual Report CIMB NIAGA 2017 125
  126. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Management Discussion and Analysis Macro Analysis and Banking Industry The world economy was a relatively stronger in 2017 . Where in the US show that their economic recovery is continuing and the Eurozone posted better-than-expected economic performance. In Asia, the Chinese economy also delivered betterthan-expected growth, while India’s economy remains steady and Countries in the ASEAN region continue to show relatively strong performances compared with many other countries in the world. As a whole, the Asia Pacific region continue to perform as the world’s engine of growth. Asia Pacific is expected to remain so in 2018. Gross Domestic Product 4.9% 5.0% 5.1% 15 16 17 Indonesia’s GDP has been in a stable growth at 5% per year for the last 3 years 126 GLOBAL ECONOMY By the end of 2017, the world economy had still not given a conclusive signal that would continue to rebound, although 2017 was a relatively stronger year than 2016. In the US, the strengthening of domestic consumption and the labor market suggest that the US economic recovery is continuing. Along with it, from end 2015 until end 2017, the Federal Reserve has raised the Fed Funds Rate five times to 1.50%. The Eurozone also posted better-than-expected economic performance. Economic growth in the Eurozone during 2017, driven mainly by Germany, France and Italy, saw increased public consumption, credit growth, and productivity, which strengthened the Euro. In response to such economic improvements, European Central Bank (ECB) plans to reduce its stimulus by halving the repurchase of bonds starting 2018. Annual Report CIMB NIAGA 2017
  127. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report In Asia , the economy of China delivered better-thanexpected growth, albeit only slightly. India’s economy remains steady. Countries in the ASEAN region also continue to show relatively strong performances compared with many other countries in the world. As a whole the Asia Pacific region continue to perform as the world’s engine of growth. Asia Pacific is expected to remain so in 2018. THE INDONESIAN ECONOMY Indonesia in 2018: A 1 trillion dollar economy. Indonesia ended 2017 with a new status, as a country with a nominal Gross Domestic Product over USD 1 trillion. There are only 16 out of 180 countries in the world that have output above USD 1 trillion. The combined total GDP of the sixteen countries is around USD 60 trillion, or roughly 75% of the world’s output. Combined with its vast land mass (the world’s fifteenth largest) and its sizeable population (the fourth most populous country in the world), Indonesia has become a country with significant geo-economic and geopolitical weight. The dynamics in the real sector in 2017 indicates a slightly better momentum than in 2016. In 2017, GDP grew by 5.1%, driven primarily by consumption and underpinned by higher investment. The rate of growth of public consumption in 2017 remained steady at nearly 5%, no different from the growth rates of public consumption in 2015 and 2016. The growth of investment was mainly driven by infrastructure project and investment on machinery. Investment grew by almost 5.8%, much faster than in 2016. The net export component of GDP rebounded in 2017 against 2016, thanks partly to a rebound in world commodity prices. However, since the ratio of net exports to GDP is small, its contribution margin to GDP is not significant. Notwithstanding, the rebound in export and import activities point to a broader recovery process. The strengthening of commodity prices in the first half of 2017 contributed positively to Indonesian trade surplus, which reached USD 11.8 billion. Government consumption, which in the early part of 2017 contributed to growth, appeared to have lost its momentum. Annual Report CIMB NIAGA 2017 CHAIRAL TANJUNG President Director of PT Trans Media Corpora Trans Media Corpora started cooperation with CIMB Niaga in 2017. However, as a group, CT Corp had established a long-term cooperative relationship with CIMB Niaga through our various business units. CIMB Niaga is one of the best of the reputable banks in terms of services in Indonesia. CIMB Niaga can understand our various needs as a business group engaging in a variety of industry sectors. In addition to the media sector, we also have interests in the property and entertainment sectors. We see that CIMB Niaga has a strong commitment to always be there to assist in the development of our business even during the challenging market conditions over the past couple of years. CIMB Niaga has provided financial solutions suitable to the needs of our company. We hope that CIMB Niaga will continue to grow in the future, as well as expand quality of services and deliver innovative financial solutions for all customers. Hopefully CIMB Niaga can continuously grow together with us in the future. 127
  128. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management MACRO ANALYSIS AND BANKING INDUSTRY At the sectoral level , there were four economic sectors that grew more rapidly than average GDP in 2017: Construction sector (with a share of 10.3% of GDP), Transportation and Warehousing (4.2%), Information and Communication (5%) and Finance and Insurance (4.2%). Business Services (1.8%) grew by nearly 8% yoy in 2017. In total, the five economic sectors combined to contribute 25% to GDP and were the main drivers of the economy in 2017. The general price level (or inflation) in 2017 provided indications that the economy was slightly stronger in 2017 compared to 2016. The year-average inflation in 2017 was 3.8%, on the back of adjustments in administered prices (ie, electricity prices, fuel and vehicle registration). Core inflation remained benign. In the months of August and December 2017 core inflation fell to below the 3% yoy threshold, the lowest reading since this data began, with base year 2000. By comparison, in August 2016 core inflation remained at 3.32% yoy. Throughout 2017, inflation was within the Bank Indonesia target range of 4% (± 1%), allowing Bank Indonesia to lower its benchmark 7-Day Reverse Repo Rate to 4.25% by the end of 2017. In total, since early 2015 until the end of 2017 Bank Indonesia has lowered the 7-Day Reverse Repo rate by 200 bps. The Rupiah was relatively stable in 2017, marking 2017 as the second year in which the Rupiah exchange rate has been stable, mainly supported by the low current account deficit, the decline of the dollar index (DXY) and the yield of US Treasury, as well as the relative improvement in commodity prices compared to 2016. Interest rate yields on Indonesian bonds and Indonesia’s sovereign rating increase to investment grade helped boost foreign capital in especially the Indonesian bond market. The sovereign investment grade rating for Indonesia, among 128 other effects, led to a decline in 5-year credit default swap (CDS) below the 100 index in September - the lowest level since the data was first collected in 2004. Total foreign ownership in government bonds by the end of 2017 reached 40% of the total number of tradable Rupiah denominated bonds. The net foreign inflow into Indonesia’s bond market pushed Indonesia’s 10-year bond yield to 6.2% 6.3% by end of December 2017. This, coupled with Indonesia’s trade balance surplus in 2017, which reached USD 11.8 billion, caused foreign exchange reserves to reach USD 129 billion - the highest in the history of Indonesia. Indonesia’s economy in 2018 is expected to grow slightly better in line with expectations of a continuing global economic recovery. Indonesia’s economy is forecast to grow by 5.2%; average annual inflation is forecast at 3.5%, and the average annual Rupiah exchange is expected to be around 13,450 per US$. A projection of economic indicators can be seen in the following table. Table of Economic Indicators Indicator Economic Growth GDP Inflation Rupiah exchange rate Unit 2017 2018 (%, yoy) 5.1 5.2 (%, year-average) 3.8 3.5 13,360 13,450 4.74 4.75 (Rp/US$; year average) SPN interest rate 3 months (%, year average) Yield of 10-year bonds (%, year-average) 7.33 6.50 Interest rate of 7DRRR (%) 4.25 4.25 (% of GDP) -2.5 -2.2 Fiscal deficit Source: CEIC, Bloomberg, CIMB-Niaga Research Annual Report CIMB NIAGA 2017
  129. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report REVIEW OF THE BANKING INDUSTRY The relationship between the banking intermediation function and economic growth is established through the relationship between loan growth and investment growth in GDP . In 2017, bank loans grew at 8.2%, only slightly above the 7.8% growth in 2016. Deposit growth was recorded at 10.9% in 2017, driven primarily by time deposits (growing 9.6%), and CASA (growing 9.5%). Loans growth in 2017 was driven, among other reasons, by construction investments via governmentsponsored infrastructure projects. Alongside the broader economic recovery, investment in machinery and motor vehicles began to rise again in 2017. The growth of bank lending in 2017, however, still originated from state-owned banks. The development of credit, assets and deposits in the past five years is depicted in the below chart. The growth of third party funds in 2017, reached 10.9%, which was well above the loan growth. Hence, banking industry’s Loan-to-Deposit Ratio (LDR) was in the range of 89%. Other health indicators of the banking system indicated stability with industry-wide CAR recorded at 23% and NPL stable at 3%. 20% By loan components, consumer loans posted the highest growth of 10.2% in 2017, followed by 6.3% growth in investment loans. Annual Report CIMB NIAGA 2017 The banking industry’s return on assets (ROA) in 2017 improved slightly to 2.47%, against 2.23% in 2016. Graph of Assets, Credit and Deposits of Commercial Banks Credit (RHS) Asset (RHS) 25% DPK (RHS) Growth (LHS) 8,000 6,000 15% 4,000 10% 2,000 5% 0% 2013 2014 2015 2016 Agt 2017 0 Source: OJK 129
  130. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Business Segment Review CORPORATE BANKING In 2017 , Corporate Banking continued to grow in the face of tight competition and a challenging economic situation, reflected in a net profit of Rp1.8 trillion. 7.7% Corporate Banking’s loan increased by 7.7% yoy to Rp69.6 trillion 11.6% CASA of Corporate Banking increased by 11.6% yoy to Rp17.7 trillion 130 CIMB Niaga’s Corporate Banking business segment provides working capital loans, investment loans, and financial services and products, as well as Cash Management, Trade Finance and other services for corporate customers and also for bank and non-bank financial institutions. The Corporate Banking business segment coordinates with Transaction Banking and Financial Institutions & Non-Bank Financial Institutions units to deliver innovative products and services to meet customer needs. STRATEGIES AND POLICIES Corporate Banking stays focused on serving corporate customers in promising and prospective industry sectors. For 2017, Corporate Banking had set out its strategies and policies, as follows: 1. Continuing the previous year’s initiative of focus on developing a customer base of market leaders. 2.Offering an integrated endto-end working capital loan solution aimed at gaining cash flow to increase revenue from cross-sell. Annual Report CIMB NIAGA 2017
  131. Supporting Business Review Corporate Governance Report Corporate Social Responsibility 3 .Being active in conducting loan syndications by well managing loan risk, in order to increase revenue. 4. Human resources development through a series of certification training programs. 5.Infrastructure improvement to drive growth in Corporate Banking. 6. Maintaining loan quality management. 7. Increasing the portion of sharia financing. PERFORMANCE IN 2017 In 2017, Corporate Banking continued to grow in the face of tight market competition and a challenging economic situation, as reflected in a 150.8% increase in profit before tax to Rp1.8 trillion, compared with Rp0.7 trillion in 2016. The significant growth in profit before tax in 2017 was supported by the 12.7% increase in net interest income to Rp2.2 trillion, compared with Rp2.0 trillion in 2016, and the improvement in loan quality Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report as reflected in the decline of the non-performing loan ratio. Loans and Syndicated Loans In 2017, Corporate Banking (including Treasury) recorded continuing loan growth. Syndicated loans amounted to Rp45.9 trillion in 2017, with CIMB Niaga contributing 15%. Among some of the more significant loan facilities were those given to PT Agro Multi Persada Tbk., PT Plaza Indonesia Realty, PT Parabandung Propertindo, PT Ti-Phone Mobile Indonesia Tbk., PT Kereta Api Indonesia, PT Waskita Karya Tbk. The composition of working capital loans accounted for 53.1% of total Corporate Banking loans in 2017, while investment loans reached 46.9%. Loan growth in the Corporate Banking segment in 2017 was supported by the consistent implementation of a 131
  132. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management CORPORATE BANKING number of strategic initiatives , such as market and economic sector diversification, focus on customer segmentation, and strengthening of synergies with CIMB Group entities. Corporate Banking Loans (Rp trillions) 60.1 64.6 69.6 36.9 30.0 28.7 Working Capital Loans Investment Loans 34.6 31.4 15 32.7 16 17 Loan Quality CIMB Niaga consistently focuses on improving loan quality by disbursing loans to industry sectors and market leader customers with proven track records and good prospects in 2017. In addition, CIMB Niaga also implemented a number of strategic initiatives to improve loan quality, through restructuring loans and closer monitoring of the loan portfolios. Through these strategic initiatives, CIMB Niaga succeeded to decrease the non-performing loan ratio in the Corporate Banking segment to 2.5% in 2017, down from 3.1% the previous year. CIMB Niaga will continue to apply the principles of prudential banking and risk management principles in disbursing its loans. NPL Gross Ratio (%) 4.5% 132 As a result of this strategy, total customer deposits at Corporate Banking (including Treasury) in 2017 amounted to Rp36.5 trillion, up 8.6% from Rp33.6 trillion in 2016. Customer deposits growth was driven by the 11.6% growth in CASA compared with previous year. CASA in the Corporate Banking segment amounted to Rp17.7 trillion, an increase of Rp1.8 trillion compared to the Rp15.9 trillion in the previous year. Meanwhile, the CASA ratio at the end of 2017 was at 48.5%, representing an improvement from 47.2% in 2016. All this is in line with CIMB Niaga’s customer deposit strategy to focus on increasing CASA amounts. Customer Deposits (Rp trillions) 30.3 33.6 12.7 15.9 17.6 17.7 15 36.5 17.7 CASA Time Deposits 18.8 16 17 3.1% 2.5% 15 Customer Deposits In 2017, CIMB Niaga implemented a customer deposits strategy that focused on increasing the amounts of CASA from corporate customers and bank and nonbank financial institutions. Increased CASA means that the customer deposits will be more sustainable in the long term, and allows CIMB Niaga to offer more competitive rates to its customers. 16 Corporate Banking improved coordination with related units such as Transaction Banking, Corporate Funding, Financial Institutions and Non-Bank Financial Institutions in order to encourage higher account balances in customer current accounts. 17 Annual Report CIMB NIAGA 2017
  133. Supporting Business Review Corporate Governance Report Corporate Social Responsibility HUMAN RESOURCES MANAGEMENT Human Resources (HR) is also an important element that supports business growth. CIMB Niaga manages its human resources by mobilizing all existing resources and capabilities to respond to challenges and adapt to the competitive banking industry. In coordination with related units, Corporate Banking seeks to enhance the knowledge and competencies of its human resources through structured training programs focusing on improving loans competences, building industry-specific knowledge with due consideration to compliance and risk, and reducing employee turnover to maintain efficiency and continuously revitalize human resources. In addition, specific development programs meet business needs both in managerial competences and leadership, including through professional hires to fill key positions at all levels in the Corporate Banking organization. PLANS, FOCUS AND STRATEGY FOR 2018 Corporate Banking’s plan, focus and strategy in 2018 to achieve business opportunities and growth while anticipating risk include: 1. Increasing the portion of loans to state owned enterprise (SOE) customers in anticipation of increased government funding for infrastructure projects. 2. Expanding the sharia customer base in order to increase sharia financing portfolios. 3. Increasing fee-based income through activities in syndicated loans. 4.Expanding customer portfolios through crossselling with Cash Management, Investment Banking, Trade Finance, and Treasury products. 5.Developing human resources through training programs. 6. Improving asset quality through a more exacting debtor selection process. Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report BOARD OF DIRECTORS PT Plaza Indonesia Realty Tbk Plaza Indonesia Realty is a real estate developer with a vision of developing high-quality and prestigious properties in premium locations. Personally, I have known CIMB Niaga since the time of Plaza Indonesia Realty’s establishment in 1983. Since 2010, the Company has partnered with CIMB Niaga, benefiting from their responsive, flexible, appropriate services as well as competitive banking products. In our opinion, CIMB Niaga’s products and services provide mutual benefits while suitably fulfilling the operational needs of our Company. Going forward, we envision further opportunities for partnership between the Company and CIMB Niaga to be explored towards an even better relationship. 133
  134. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Business Segment Review TREASURY AND CAPITAL MARKET As one of the pioneers of digital banking in Indonesia , CIMB Niaga creates digital banking service initiatives that have driven an increase in foreign exchange transaction volumes through electronic media. STRATEGIES AND POLICIES In 2017, CIMB Niaga’s Treasury and Capital Market segment implemented policies and strategies to drive sustainable business growth. These policies and strategies were implemented through the activities of each respective desk/business unit, using geographical mapping and revenue targets, and by close monitoring of its implementation in accordance with established work plans. 134 In trading activities, Treasury and Capital Market adopts the market making strategy that prioritizes the identification and fulfilment of changing customer needs (client flow), expansion of business networks to increase transactions volume and provide better pricing, and determine the proper time for an in-or-out position. Annual Report CIMB NIAGA 2017
  135. Supporting Business Review Corporate Governance Report Corporate Social Responsibility In sales activities , Treasury and Capital Market increases its transaction volume through electronic channels, the branch network, addition of new customers, and increasing client awareness of hedging transaction options in accordance with the spirit of risk management as governed under Bank Indonesia regulations. Others Corporate Data Consolidated Financial Report PERFORMANCE IN 2017 Implementing strategies and policies throughout 2017 brought positive impacts to the fixed income portfolio of CIMB Niaga’s Treasury and Capital Market, consisting of government and corporate bonds growing to Rp32.9 trillion, compared with Rp24.4 trillion in 2016. Treasury and Capital Market also has some of main activities that include the development of new structured products, expansion of the customer base of both corporate and retail customers, and cooperation with small-scale banks as counterparties in forex, bonds and derivative transactions. Annual Report CIMB NIAGA 2017 135
  136. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management TREASURY AND CAPITAL MARKET PRODUCT INFORMATION In 2017 , CIMB Niaga’s Treasury and Capital Market offered a range of products that create added value to customers. These products are as follows: 1. Market Link Deposit (MLD) is a structured product that combines derivative and deposit instruments. MLD offers yield enhancement and a 100% protection warranty on the principal amount. This product is also flexible and liquid (CIMB Niaga provides daily quotations on the disbursement rate). By its underlying assets, there are two types of MLD, namely interest-rate based and foreign currency-based MLD. 2. Swap Depo is a structured product that offers yield enhancement and a 100% protection warranty on the principal amount. This product combines deposits with FX swap derivative instruments. 3. Strike Currency is a structured product for derivative transactions using currency options based on strike prices. 4. Government Bonds and Corporate Bonds. CIMB Niaga provides daily price quotations to customers to assist in selling or purchasing bonds. In addition, Treasury and Capital Market also offer other products such as buying or selling foreign currencies through Today, Tom and Spot, as well as the “Call Spread” hedging product, which give customers alternative hedging products other than Forward Plain Vanilla transactions. A Call Spread transaction has its own advantages and disadvantages if compared to Forward transactions, one of which being lower expenses. 136 SERVICES AND NETWORKS Treasury and Capital Market operates a network of service locations in several major Indonesian cities, including Jakarta, Medan, Bandung, Semarang, Solo, Surabaya, Denpasar and Balikpapan, personally meeting the needs of customers for treasury products. In addition, electronic transaction services for foreign exchange and securities products are also available at most CIMB Niaga branches in Indonesia. These service points provide real time price quotations with a faster distribution process. Other than at branch offices, customers can also access online and real time foreign exchange services via BizChannel and CIMB Clicks, anytime and anywhere. UTILIZATION OF INFORMATION TECHNOLOGY As one of the pioneers of digital banking in Indonesia, CIMB Niaga initiates various digital banking services that have driven an increase in foreign exchange transaction volumes through electronic media. In addition, continuous improvements in these products and an increase in the use of electronic media continue to reduce operational risks and improve the customer experience by facilitating various types of banking transactions through electronic media. Treasury and Capital Market also uses information technology to get local and overseas information required for determining trading strategies. In addition, information technology is also utilized to inform Treasury and Capital Market products and pricing to all CIMB Niaga branches on a real time basis, to provide an even more competitive pricing option. Annual Report CIMB NIAGA 2017
  137. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report AWARDS In 2017 , CIMB Niaga achieved some awards in recognition of excellent performance, as following: 1. AsiaRisk Award 2017, House of the Year, Indonesia. 2. Triple A Investment Awards 2017 - Best Derivatives House of the Year, Indonesia. 3. Triple A Investment Awards 2017 - Best Structured Products House, Indonesia. PLANS FOR 2018 The Treasury and Capital Market business segment will continue to strive to meet the demands and needs of both corporate and retail customers and will make CIMB Niaga a one-stop banking solution for Treasury and Capital Markets. In 2018, Treasury and Capital Market have established plans to improve performance by adding instruments and channels for retail bond services, as well as the development of digital-based forex transaction services and automation, in line with the growth of FinTech based companies that require such products and services. VINCENT LIM CEO FKS Food and Agri The cooperation between FKS Food and Agri and CIMB Niaga started in 2001, when PT FKS became a customer of CIMB Niaga. The cooperation has continued successfully and developed well up to the present time, where FKS Multi Agro has become the leading company in its field in Indonesia. FKS Food and Agri uses various banking services, such as Foreign Exchange Transactions to support export-import activities, as well as hedging, Lending Facilities, Cash Management through the Biz Channel, Trade Finance, and other services. The quality of banking services provided by CIMB Niaga was adequate to continuously support the performance of our company. It is our hope to remain in a close relationship to continue supporting our company in the coming years. We are big and growing together with CIMB Niaga. Annual Report CIMB NIAGA 2017 137
  138. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Business Segment Review TRANSACTION BANKING In 2017 , Transaction Banking recorded continuing performance growth by following effective strategies and policies throughout 2017. This achievement was supported by CIMB Niaga business growth through product management within Cash Management, Trade Finance, Value Chain and Securities Services. 114% The number of transactions through BizChannel@CIMB increased by 114% 33% The financing volume of trade finance increased by 33% 138 CIMB Niaga Transaction Banking provides services for the corporate segment (both large corporations and MSME) and for the bank financial institutions (FI) and non-bank financial institutions (NBFI). Products and services in Transaction Banking include cash management, trade finance, supply chain, payment and bank settlement, custodial and fund administration services, trustee services and loan agency services. Such services are also strengthened by focusing on providing the best services to customers and supported by a solid digital banking platform. STRATEGIES AND POLICIES In 2017, Transaction Banking focused on continuing the existing strategy to make CIMB Niaga the operating bank and clearing house for our customers and their respective communities. Towards that objective. Annual Report CIMB NIAGA 2017
  139. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Transaction Banking engages the following business strategies : 1. Innovations in digital banking products, including partnerships with FinTech and product integration. 2. Cross selling to corporate and business (commercial and MSME) customers. 3.Community banking approach to expand the business into the retail SME segment. 4. Business process re-engineering to improve the efficiency of internal processes and service quality to customers. 5.Increasing growth of Trade Finance through acquisition of new customers in prospective industry sectors, and continued focus on the ASEAN corridor in optimizing CIMB Group networks. Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report Cash Management The Cash Management business, as the anchor product of CIMB Niaga Transaction Banking, continues to grow as indicated by the number of users and the number of transactions made through BizChannel@ CIMB. This internet banking platform for the nonretail segment has continuously increased from year to year, with growing numbers of customers actively making transactions and contributing to the growth of the Bank’s operating accounts. Cash Management also continues to deliver innovative products to meet customer expectations and to stay abreast of technological advancements, particularly in information technology. 139
  140. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management TRANSACTION BANKING In 2017 , to increase operating account growth, Cash Management focused the strategies of: 1.Digitalization, through product innovation and strategic partnerships with FinTech customers. 2.Cross Sell, building a cross selling culture to improve product holding and customer stickiness. 3.Customer Experience, through better efficiency and business process adjustment, in accordance with customer banking needs, and by aiming for higher customer loyalty. 4. Optimized Activity, through increased penetration of cross-border remittance services and pricing adjustments to maximize profits. 5.Risk & Compliance, implementing a risk and compliance culture at all levels of the organization. Trade Finance and Supply Chain CIMB Niaga provides Trade Finance products to facilitate customer export-import activities, encompassing traditional trade products such as L/C, Bank Guarantee, and trade working capital solutions such as Trust Receipt, Import and Export Financing, Risk Participation and Supply Chain Financing. In 2017, CIMB Niaga Trade Finance posted continuing business growth whereby the volume of loans under Trade Finance showed an increase. For domestic trade transactions, the Supply Chain solutions continued to support customers’ business growth, and to provide financing facilities to business players in supply chains (suppliers, distributors and retailers) with the incentive of less stringent loan terms if compared to other financing facilities in general. This was all supported by strong electronic banking platform in order to help monitor the status of invoices, payments and other transactions. 140 Securities Services One CIMB Niaga customer segment in a non-retail segment is NBFI (Non Bank Financial Institutions) where the anchor products other than cash management also include securities services such as custody service, fund administration, trustee and loan agency. The NBFI segment include customers in insurance, securities companies, asset managers and pension funds. CIMB Niaga serves as one of the leading banks which provides custody service and acts as a custodian bank. In addition, CIMB Niaga serves as one of the banks mandated by the government to manage investments from the tax amnesty program. In addition to the products above, CIMB Niaga also provides other services such as a payment bank and a settlement bank. As mandated by Indonesian Central Securities Depository (KSEI), CIMB Niaga is one of the banks in Indonesia designated as a cash settlement bank for all transactions made in the capital market. CIMB Niaga has rigorously upheld the trust from its customers for such mandate, as CIMB Niaga is still currently serving as settlement bank with the largest market share in Indonesia. The securities services continue to be developed as the anchor product of Transaction Banking for the purpose of increasing fee-based income and also assisting to increase the amount of third party funds from current accounts. Annual Report CIMB NIAGA 2017
  141. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Financial Institution Group (FIG) CIMB Niaga recognizes the importance of special skills, which may support the development of the Bank based on the diversity of industries under OJK regulations. Accordingly, CIMB Niaga established a special unit, the Financial Institution Group (FIG), to manage clients from the NBFI segment, which covers insurance companies, securities companies, pension funds, asset managers and multi-finance, and also customers in the Financial Institution (FI) segment. The focus of this unit is to improve the cross selling activities to optimize synergy within CIMB Group in order to maximize business opportunities by identifying new strong potential markets. Another focus is the individual development of human resources to enable them to contribute more to NBFI strategy development as by developing the positioning of CIMB Niaga as the better partner for banks and non-bank partners. FIG executed several strategies in 2017 with: 1. Cross Selling to strengthen linkage among products and optimization of synergy with CIMB Group at the regional level for access to new markets. 2. Strategic partnerships with customers to increase the client base. 3.Custody business expansion through a new customer acquisition strategy and deepening market share. 4. Utilization of CIMB Group channels in cooperation to increase intra ASEAN flow. HADEYANTI SYLVIANI Finance and Marketing Director of PT Rekadaya Elektrika We are satisfied with the Trade Finance products and services provided by CIMB Niaga. We have engaged CIMB Niaga to provide us with Trade - Commercial Credit Lines (Letter of Credit/ SKBDN/Sight/Usance UPAS/UPAU/ Trust Receipt and Bank (Guarantee). The products are innovative and are priced very competitively. CIMB Niaga has also done their best in supporting our business and daily trade transactions as well as offering the best business solutions for our needs. We have developed an excellent relationship since May 2017 and we look forward to continuing this beneficial partnership for the long term. Annual Report CIMB NIAGA 2017 141
  142. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management PERFORMANCE IN 2017 In 2017 , CIMB Niaga Transaction Banking recorded another year of consistent performance growth due to the various strategies and policies implemented throughout the year. This achievement was supported by CIMB Niaga business growth with regard to Cash Management, Trade Finance and Value Chain, and Securities Services products. PETER MOLLOY President Director of BP/AKR Fuels Retail PT Aneka Petroindo Raya (APR) is a Joint Venture between BPGL, the International Energy Company and PT AKR Corporindo Tbk. (AKR) to develop a leading fuel retail business in Indonesia that will operate under the brand names of BP/AKR Fuels Retail. Both parties intend to develop and offer a different consumer proposition to leverage BP’s and AKR’s capabilities and expertise across Indonesia’s growing fuel retail market. This Joint Venture expects to open its first retail site in Indonesia in 2018. In order to cover our financial business requirements, the JV requires the need for a bank that has a good track record and offers a variety of solutions in cash management. Following a rigorous “Request for Proposal” (RFP) process, the JV has chosen PT Bank CIMB Niaga Tbk. as the main cash management bank to service the business. In terms of Cash Management, the number of active users of BizChannel@CIMB registered an increase of 11%, and the number of BizChannel@CIMB transactions grew by 114%. The increasing number of active customers has contributed to growth of operating accounts whereby the average volume of Rupiah current accounts increased by 15% in 2017 compared to the prior year. In terms of trade finance and value chain, the financing volume of trade finance increased by 33% and from the result of community building initiatives, total value chain of current accounts rose by 77% in 2017 compared to the prior year. Business growth in both products is much faster than the total growth for all CIMB Niaga’s loans and funding, and such growth has increased the total contribution to CIMB Niaga’s total profit. This excellent performance is supported by the successful expansion and penetration into the business communities in various industry sectors. We look forward to commencing our partnership with PT CIMB Niaga Tbk. 142 Annual Report CIMB NIAGA 2017
  143. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Fee-based income from Securities Services increased by 12 % in 2017 as compared to the previous year, mostly generated by fee based income from custodial services, which increased by 27%. The amount of assets under custody increased by 39% in 2017 compared to 2016. SERVICES AND PROMOTIONS In the commitment to provide the best banking services to meet customer needs, CIMB Niaga Transaction Banking focuses on re-engineering service processes for customer convenience. Examples of these on boarding processes include a reduction in number of pages for current account and BizChannel@ CIMB opening documents, reduction in the turnaround time of registration and implementation of BizChannel@CIMB, and the automation of various back-end processes towards faster customer service and less operational risks. AWARDS In recognition of CIMB Niaga’s hard work based on the spirit of ‘Innovation from the Heart’ and a commitment to continually put customers and all other stakeholders as the focus of delivering the best products, services and processes, Transaction Banking received the following awards: 1.The Asset Triple A Treasury, Trade & Risk Management Awards 2017 as Best Transaction Bank in Indonesia. Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report 2.The Asset Triple A Treasury, Trade & Risk Management Awards 2017 as Best Cash Management Bank in Indonesia. 3.The Asset Triple A Treasury, Trade & Risk Management Awards 2017 as Best Supply Chain Solutions for Manufacturing Industry in Indonesia. 4.The Asset Triple A Treasury, Trade & Risk Management Awards 2017 as Best Supply Chain Solutions for Consumer Goods Industry in Indonesia. 5.The Asset Triple A Treasury, Trade & Risk Management Awards 2017 as Best e-Solutions Partner for e-Commerce industry in Indonesia. 6. Global Finance, Best Trade Finance Provider in Indonesia. PLANS FOR 2018 In 2018, CIMB Niaga Transaction Banking will continue with strategies implemented in 2017, with increased emphasis on: 1. Digital strategy, through innovation and product development according to customer needs. 2. Operating account, to grow CASA as a source of low-cost funding. 3. Trade finance, by growing the client base and maintaining asset quality. 4. Custody business, through a strategy of deepening market share. 5. Customer Experience, by continuously improving customer satisfaction to create customer loyalty. 143
  144. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Business Segment Review COMMERCIAL BANKING In 2017 , profit before tax of Commercial Banking increased to Rp399.7 billion. This achievement was supported by increased non-interest income of 210.4% to Rp225.4 billion, compared to Rp72.6 billion in the previous year. 6.9% Commercial Banking loans increased by 6.9% yoy to Rp31.9 trillion 18.9% CASA of Commercial Banking increased by 18.9% yoy to Rp9.4 trillion 144 In 2017, Commercial Banking loans continued to grow selectively in the midst of tight competition and challenging economic conditions. Loan growth was focused on locations with good GDP and in sectors with strong potential, such as manufacturing, construction and agriculture. Loan growth was supported by strengthening organizational functions such as Business Credit Teams to improve the quality of loan proposals (underwriting) and Client Services related to loan transactions and administration. Commercial Banking continued to innovate in strengthening the CIMB Niaga brand among top rated debtor groups, by offering fast and precise solutions, comprehensive and integrated services, easy transactions, and strong customer relationships. STRATEGIES AND POLICIES In 2017, Commercial Banking continued a recalibration process, which is a continuous process of innovation and improvement from 2016, through several initiatives implemented in 2 phases: Annual Report CIMB NIAGA 2017
  145. Supporting Business Review Corporate Governance Report Corporate Social Responsibility 1 . Phase 1 is the strengthening and balancing stage that focuses on: a. Improved loan processing. b. Loan growth with considering loan quality on new loan bookings. c. Strengthened loan monitoring & maintenance through Early Alert Tools & Stress Tests, Product & AQ, and Portfolio Management System. d.Reviewing focus and extent of Commercial Banking. 2.Phase 2 is the stabilizing and culture building phase that focuses on maintaining momentum on improving human capital performance and quality through the provision of continuous training and certification. Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report Implementation of the above strategies and policies resulted in several positive impacts including: 1. Operational risks improvement. 2. Improvement in asset quality. 3. Improvement in employee productivity. PERFORMANCE IN 2017 In 2017, profit before tax of Commercial Banking increased to Rp399.7 billion, compared to a loss amounting to Rp166.1 billion in the previous year. This increase was supported by an increase in non-interest income (NoII) of 210.4% to Rp225.4 billion from the previous year’s Rp72.6 billion. Commercial Banking’s net interest income increased by Rp22.7 billion, or 2.0%, from Rp1.16 trillion in 2016 to Rp1.18 trillion in 2017. Operational expenses were well-managed and declined by 3.0% to Rp195.3 billion in 2017 from Rp201.2 billion in 2016. 145
  146. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management COMMERCIAL BANKING Net Interest Margin (%) Net Interest Income (Rp billion) 1,234 1,156 1,179 Non Interest Income (Rp billion) 225 3.9% 3.5% 3.5% 91 15 16 17 15 Loan Disbursement Total commercial loans increased by Rp2.1 trillion, or 6.9%, to Rp31.9 trillion in 2017 from Rp29.8 trillion in 2016. This increase caused a higher contribution of Commercial Banking loans to total CIMB Niaga loans to rise to 17.2% in 2017 compared to 16.6% in 2016. Working capital loans of Commercial Banking increased by Rp2.6 trillion, or 14.6%, to Rp20.7 trillion compared to 2016’s Rp18.1 trillion. Meanwhile, investment loans decreased by Rp0.6 trillion, or 5.0%, to Rp11.2 trillion from Rp11.8 trillion in 2016. This is in line with the CIMB Niaga strategy and focus on working capital loans. 29.8 61.4 % 38.6% 15 31.9 60.6% 65.0% 39.4% 35.0% 16 17 15 16 17 Loan Quality In order to improve the quality of Commercial Banking loans, a recalibration process of several initiatives were undertaken: 1. Improved work processes, by establishing special units to support loan activities such as Commercial Centers, Client Services, Early Alerts, Portfolio Management and Asset Quality, where these units will focus on improving loan processes as well as integrated loan quality as a first line of defense. 2.Re-mapping focus and footprint, by identifying areas with growth potential and focusing on the largest industries in each region. In 2017, the gross non-performing loans ratio stood at 8.2%. Other efforts by CIMB Niaga to improve loan quality included regular and continuous identification to avoid potential losses, and intensified cooperation with recovery unit to obtain the best solution. Loan (Rp trillion) 31.3 16 73 Working Capital Loans Investment Loans Customer Deposits In 2017, total customer deposits from Commercial Banking increased by 2.1% to Rp19.3 trillion from the same position in 2016 of Rp18.9 trillion. Meanwhile, LDR increased significantly by 165.3% in 2017 compared to 158.4% in 2016. 17 * including account transfers 146 Annual Report CIMB NIAGA 2017
  147. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report From total customer deposits , time deposits declined by Rp1.0 trillion, or 9.5%, to Rp9.9 trillion from Rp10.9 trillion in 2016, while CASA increased by 18.9%, or Rp1.5 trillion, to Rp9.4 trillion compared to Rp7.9 trillion in 2016. With the increase in CASA, Commercial Banking could offer more competitive pricing. Customer Deposits (Rp trillion) 23.5 18.9 15 16 19.3 BUDI TIRTAWISATA CEO Panorama Group 17 PLANS FOR 2018 Commercial Banking has formulated strategies and policies to be implemented in 2018. In order to respond to challenges and opportunities, Commercial Banking will: 1. Focus on areas and industries that have strong potential growth. 2. Increase cross-selling in line with customer needs 3. Increase TAT (turn around time) and speed of loan processing. 4. Strengthen integrated first line of defense to maintain asset quality. I have had a personal account at Bank Niaga (at that time) since 1986, and since 2008, our business in tourism & hospitality established cooperation with CIMB Niaga for financing several of our hotel development projects. In the past few years we have experienced excellent service improvement from all CIMB Niaga’s officers starting from the junior, middle, up to the senior management/Board of Directors level. CIMB Niaga also has created conducive environment by paying attention and communicating well with us as customers. CIMB Niaga has become the bank with comprehensive understanding of our business and this is very positive. We hope that CIMB Niaga continues to thrive by asserting employee professionalism as a major asset which is supported by the implementation of revolutionary technology. Annual Report CIMB NIAGA 2017 147
  148. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Business Segment Review MSME BANKING In 2017 , MSME Banking implemented initiatives to support established strategies through Lending Programs tailored to customers’ needs. MSME Loans (Rp trillion) 32.8 8.3 33.6 7.7 8.3 0.6 1.9 27.3 24.6 22.6 15 35.0 16 Mikro Linkage Mikro Laju SME 17 10.7% STRATEGIES AND POLICIES Micro-Small-Medium Enterprises (MSME) Banking implemented a number of strategies and policies in 2017, including expanding loan disbursement while maintaining prudence in providing loans, and increasing customer deposits, especially in CASA. In addition, an internal recalibration was undertaken in order to improve work efficiency and service quality for customers, all the while facing tight business competition. In 2017, MSME Banking implemented initiatives in support of its strategies through a lending program tailored to customer needs and in support of MSME business development. In terms of customer deposits, MSME Banking grew its portfolio by increasing its CASA. One strategy was to offer product bundling with each loan facility, so as to create an attractive product package that meets customer needs. SME loans increased by 10.7% yoy to Rp27.3 trillion 148 Annual Report CIMB NIAGA 2017
  149. Supporting Business Review Corporate Governance Report Corporate Social Responsibility MSME Banking also continued to strengthen a high-quality and high-potential customer base by collaborating with other units through referral and cross-selling programs . Along with the Government’s program to develop the Micro, Small and Medium Enterprise (MSME) sector, since 2013, CIMB Niaga has continuously provided innovative MSME banking products and services. CIMB Niaga applies 2 (two) strategic approaches in this business: the direct approach and indirect approach, each of which are followed by the two sub-segments of MSME Banking, namely SME Banking and Micro Linkage. Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report In order to strengthen the monitoring of loan quality, MSME Banking has established the Early Detection and Asset Quality Management team, which provides portfolio-wide and comprehensive loan quality monitoring, from detection of debtors’ condition using predictive tools, through the monitoring of arrears, to settlement of non-performing loans. 149
  150. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management MSME BANKING Customer Deposits (Rp trillion) PERFORMANCE IN 2017 In terms of assets, MSME Banking succeeded in a loans growth of 4.3% to Rp35.0 trillion in 2017, from Rp33.6 trillion in the previous year. Increased loan risk was anticipated through this loan expansion with prudent lending considerations. As such, the ratio of non-performing loans decreased to 3.5% in 2017, compared to 3.6% in 2016. NPL Gross Ratio (%) 3.6% 34.4 34.3 15 16 37.5 17 3.5% 2.8% In 2017, MSME Banking recorded Rp1.4 trillion in profit before tax, relatively the same level as in 2016. Profit Before Tax (Rp billion) 15 16 CASA (Rp trillion) 20.2 15 20.9 16 22.6 15 16 17 In 2017, CIMB Niaga completed the Mikro Laju recalibration, so going forward, CIMB Niaga will focus more on SME Banking and Micro Linkage business units. 1. SME Banking The SME Banking unit serves small and medium scale businesses and entrepreneurs across Indonesia. Several initiatives have been undertaken by this unit, which primarily aim to enhance business growth and accelerate the loan process while applying and maintaining prudent principles in loan distribution. 17 150 1,372 1,098 17 Meanwhile, total customer deposits increased to Rp37.5 trillion. This increment was contributed by 10.9% growth in time deposits from Rp13.4 trillion in 2016 to Rp14.9 trillion in 2017, and an 8.3% growth in CASA to Rp22.6 trillion. One of the drivers of this significant customer deposits growth was the increase in financing disbursed through the MSME special financing, which required business partners to open an account in CIMB Niaga. 1,374 MSME loan programs include a loan program for additional loan facilities for existing CIMB Niaga debtors with good track records, to be used for further business development by those debtors, as Annual Report CIMB NIAGA 2017
  151. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report well as loan facilities disbursed to new customers in the SME sector . In addition, SME Banking engaged in continuous improvement of loan processes so as to achieve a higher level of customer satisfaction. The SME Banking unit also continued to intensify implementation of loan processes with the established Risk Acceptance Criteria, now known as the Retail Lending Program (RLP), as a response to changes in a business environment that is increasingly competitive and growing rapidly. The system is capable of providing financing analysis based on validated historical data, resulting in faster loan processes while maintaining the loan quality. I NYOMAN PARMA, SE President Director KETUT VIRGOYASA, SE Director BPR Suryajaya Kubutambahan In 2017, SME Banking recorded a loan increase of 10.7% to Rp27.3 trillion, from Rp24.6 trillion in 2016. This increase was the result of numerous initiatives undertaken by CIMB Niaga to improve performance. Meanwhile, customer deposits in 2017 grew by 13.0%, from Rp31.9 trillion to Rp36.1 trillion. Of total customer deposits, CASA funds were recorded at Rp21.8 trillion, or increasing by 8.6% from Rp20.0 trillion in 2016. Time deposits were recorded at Rp14.3 trillion, or up by 20.5% from Rp11.9 trillion in 2016. The growth in customer deposits is also a result of the support and cooperation with the Sales and Distribution (SnD) unit under Consumer Banking as the unit responsible for customer deposits acquisition, as well as implementation of cross-selling activities performed by SnD and SME. The customer deposits increase in SME Banking was also supported by the implementation of the supply chain concept with regard to distributors and suppliers of SME debtors. Annual Report CIMB NIAGA 2017 We have developed a relationship with CIMB Niaga for 14 years, since 2004. The products and services we use include Demand Deposits, term Deposits, and Financing Facilities. The quality of services provided by CIMB Niaga has been very satisfying, and our requests have always been swiftly responded to. We hope that in the future CIMB Niaga will be able to improve its services to customers even further, particularly for BPRs, as well as providing more competitive interest rates. 151
  152. Performance Highlights Management Reports HERU CAHYONO Batik Omah Laweyan The cooperation with CIMB Niaga has been going on for 13 years ever since I opened a savings account with CIMB Niaga for the first time on 16 July 2004 . Further, to make things easier for me in the operations of Batik Omah Laweyan Store, I have also installed Bank CIMB Niaga’s ATM and EDC facilities at my store. On several occasions, when I needed explanation about some new issues related to banking, or about facilities available for me at CIMB Niaga, I have always been satisfied with the quality of services from Bank officers who have responded promptly and in a friendly manner. For the future, I hope CIMB Niaga will be even more accessible for customers, not only those in the modern business segment, but also those in the general public who want trusted services in lending and deposit-taking. 152 Company Profile Management Discussion and Analysis Risk Management 2. Micro Linkage Micro Linkage is a MSME Banking sub-segment that applies an indirect approach, i.e., establishes strategic partnerships, using linkage cooperation patterns, in the form of executing, channelling and joint financing. Strategic partners who cooperate with Micro Linkage are “Koperasi Unit Desa”, plantations that apply the nucleus system, regional development banks (BPD), People’s Credit Banks (BPR), and other agencies that can potentially increase the scale of SME lending. The aim of this strategy is to better identify and quantify the market potential of SMEs in accordance with the diversity of their business and at the same time take advantage of the presence of strategic partners who can help the growth of the SME business segment. Each strategic partner is instrumental in the process of distribution of funds and collection, which ensures that the quality of the assets will be maintained. One example of this business model is financing for palm oil farmers. The distribution of financing to farmers is conducted by Micro Linkage with cooperatives whose members are farmers and with plantation companies (core companies) as partners. Through cooperatives, farmers receive loans from CIMB Niaga to be used for the launch and maintenance of oil palm plantations, where the harvest would later be purchased by plantation companies. Meanwhile, SME Banking is a strategic partner of financial institutions including regional development banks (BPD), People’s Credit Banks (BPR) and cooperatives. On the other hand, the end-users, financed by CIMB Niaga, are customers from BPD and BPR, as well as members of cooperatives. These partners are appointed as marketing, collection, and security agents for CIMB Niaga. Business development in Micro Linkage is supported by 21 branches (including desks) throughout Indonesia, with some 80 employees in total. Annual Report CIMB NIAGA 2017
  153. Supporting Business Review Corporate Governance Report Corporate Social Responsibility In 2017 , Micro Linkage disbursed loans of Rp2.5 trillion, with the total of its loan portfolio reaching Rp7.7 trillion at the end of 2017. To overcome the challenges of declining loans in connection with the limited economic growth, the Micro Linkage unit intensified its monitoring program and deepened its analysis of loan quality through more effective communication with strategic partners. PLANS FOR 2018 MSME Banking has developed a number of strategies and policies as set out in the Bank Business Plan to achieve sustainable growth. In 2018, MSME Banking will undertake strategic steps by continuing to increase loan growth while maintaining prudent principles. To support the growth of businesses in the MSME sector, the Lending Program will be continued and expanded, as well as adjusted to market needs. The Lending Program is also expected to accelerate the debtor analysis and evaluation process, so as to improve loan services to customers. To maintain loan quality, MSME Banking will build its infrastructure to strengthen Asset Quality Management, focusing on loan monitoring as a preventive action should there be any indication of asset deterioration. Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report In terms of customer deposits, MSME Banking will continue to focus on CASA for portfolio growth. The bundling program strategy with loans will continue as it has proven effectively in expanding the customer base and increasing CASA amounts. MSME Banking will also strengthen the potential and quality of its customer base through collaboration with other units in referral and cross-selling programs, and the optimizing and upgrading of value chain and trade finance products. Features in value chain products will continue to be developed, both in terms of product and control. Process improvements will be pursued intensively to increase work efficiency and service quality, by accelerating loan time processing through the simplification of loan documents and processing procedures. MSME Banking will also continue to improve the efficiency of operational costs through cost control management and smart spending policies. All of these strategies are expected to foster and accelerate the loan process but still maintain loan quality and meet targets set by the management. 153
  154. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Business Segment Review CONSUMER BANKING Strategies and policies were applied in Consumer Banking in order to build sustainable business growth , providing services to customers to raise CASA, increase fee based income, improve customer experience, as well as create efficiency, generate investment in electronic channels, and focus on the sharia segment. 12.0% Mortgages increased by 12.0% yoy to Rp27.0 trillion 92% 92% of customers’ financial transactions via branchless banking 154 STRATEGIES AND POLICIES CIMB Niaga puts customers as the main priority in providing the best banking services and offering banking products to help customers meet their financial needs. In 2017, Consumer Banking focused on improving performance and customer experience. Strategies and policies were applied in Consumer Banking in order to build sustainable business growth and provide those services to customers to raise CASA, increase fee based income, and improve customer experience through measuring customer satisfaction. Steps were also taken to create efficiency, generate investment in electronic channels, and focus on the sharia segment. CIMB Niaga fully realizes that the productivity improvements which impact on revenue growth must be must be accompanied by a high level of customer satisfaction in order to maintain, and improve, services in the future. In 2017, the Consumer Banking segment focused on continuous internal improvements in terms of service processes. Working closely with Annual Report CIMB NIAGA 2017
  155. Supporting Business Review Corporate Governance Report Corporate Social Responsibility several consultants , CIMB Niaga measured the level of customer satisfaction through several research methodologies ranging from mystery shopping to providing in-depth questionnaires to customers related to CIMB Niaga’s services. CIMB Niaga strives to improve efficiency without compromising service quality for its customers. This matter is realized in part through optimizing the number of branches and simultaneously increasing investments in other sectors, especially through investment in electronic channels. This strategy was approached through observing and adapting to customer behavior trends, which tend to reflect the desire to have easier transaction processes in real time through mobile banking and internet banking. Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report Another strategic policy in Consumer Banking is focus on Syariah First from CASA, mortgages, credit cards, and other sharia banking products. This strategy was able to increase the pre-tax profit of Sharia Consumer Banking by 125.4% compared to the previous year. In 2017, CIMB Niaga succeeded in registering 49,855 Hajj pilgrimage accounts, a significant increase compared to the 17,609 accounts in 2016. Sharia home financing also experienced rapid growth, increasing 103.1% compared to the previous year. PERFORMANCE IN 2017 Consumer Loans Segment In 2017, Consumer Banking (including subsidiary) recorded a 6.7% decline in loans, or a decline of Rp3.5 trillion to Rp48.6 trillion compared to Rp52.1 trillion in 2016. The decrease was primarily due to a 41.1% 155
  156. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management CONSUMER BANKING decline in auto loans , or a decline of Rp6.1 trillion to Rp8.7 trillion, compared to Rp14.8 trillion in 2016. Other consumer credit sectors experienced higher growth such as mortgages and personal loans (KTA). Meanwhile, the non-performing loans ratio improved to 2.5% from 2.7% in 2016. Loans (Rp trillion) NPL Gross % 2.7% 2.5% 53.3 52.1 15 16 48.6 2.1% 15 Description (Rp billion) 16 17 17 Growth (%) 2015 2016 2017 Mortgages 23,465 24,110 26,996 Auto Loans 18,750 14,807 8,721 (21.0) (41.1) Credit Cards 6,368 8,244 8,149 29.5 (1.1) Personal Loans 2,630 3,347 3,582 27.3 Multipurpose and others 2,074 1,622 1,191 (21.8) (26.6) 53,287 52,130 48,639 (2.2) (6.7) Total Customer Deposits In 2017, total customer deposits of Consumer Banking grew by 2.3%, or Rp2.2 trillion to Rp96.0 trillion compared to Rp93.8 trillion in 2016. The increase in customer deposits was mainly driven by growth in CASA by 5.3%, aligned with Banks focus to grow CASA. Customer deposits were mainly contributed from savings products by 5.0%, or Rp2.3 trillion to Rp47.3 trillion from Rp45.1 trillion in 2016, followed by the growth of demand deposits to Rp2.4 trillion compared to Rp2.1 trillion in the previous year. This customer deposits growth was achieved through the innovations of various saving products, and crossselling products to customers. 156 2015-2016 2016-2017 2.7 12.0 7.0 Customer Deposits (Rp trillion) 90.3 15 93.8 96.0 16 17 Annual Report CIMB NIAGA 2017
  157. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Consumer Banking Income In 2017 , Consumer Banking (including subsidiary) recorded a decline in profit before tax of Rp2.1 trillion, decreasing by 15.4%, or Rp379 billion compared to Rp2.5 trillion in 2016. Net Interest Income (NII) of Consumer Banking increased by 1.6% to Rp5.35 trillion from Rp5.27 trillion in 2016. CIMB Niaga, including Consumer Banking, is more selective in determining the loan quality, and took proactive steps to maintain portfolio strength. 5,352 5,269 BERNARD SALEH Professional Photographer 4,583 2,461 2,082 1,830 15 Net Interest Income (Rp billion) 16 17 Profit Before Tax (Rp billion) CONSUMER BANKING’S OPERATIONAL PERFORMANCE BY SEGMENTS Mortgage Loans In the midst of tight competition, CIMB Niaga is now recognized as one of the five largest mortgage loan providers in Indonesia. This position was attained through strategies and initiatives focused on introducing innovations to gain more customers. Within mortgages, CIMB Niaga offered innovative and competitive products to fulfill customer needs. One of these products is KPR Xtra Manfaat, which has the benefit that a savings balance can decrease the loan interest instalment portion and so facilitate a larger portion of principal to be paid, allowing customers to finish the loan period in a shorter time. As an additional interesting feature, KPR Xtra Manfaat can be linked to up to 9 saving accounts. Conversely, CIMB Niaga also offered new features for KPR Sharia with a MMQ akad (contract), popularly known as KPR iB Flexi, which facilitates home purchase through indent, with lower down payment over a longer period of time. Annual Report CIMB NIAGA 2017 I have been a customer of CIMB Niaga since 2012. At that time, I needed to open bank accounts for my employees who lived all across Jakarta. After researching, I found out that CIMB Niaga’s Digital Lounge allows me to conduct account openings with straightforward documents, and moreover, the operating hours of the Digital Lounge are quite flexible and open at most of the malls across Jakarta. This is super easy for my employees to go and open their accounts. Go Mobile and CIMB Clicks are my go to channel for all of my banking transactions, mostly for salary payments, bill payments or transfers. I like the new Go Mobile, the interface of the new Go Mobile is very user friendly. In the future, I hope CIMB Clicks got upgraded just like Go Mobile. All the best to CIMB Niaga. 157
  158. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management PERBANKAN KONSUMER CIMB Niaga also complements its mortgage products with a variety of attractive and competitive pricing options . One of the options is the Smart Rate Pricing scheme that allows customers to have clear reference in the determination of the floating interest rate from the earliest loan stage y using the 7 Day Reverse Repo Rate as reference, which can be accessed directly through the Bank Indonesia website. HENDRI WANADRI CEO CV Mandiri Anugerah Sejahtera In 2012, I established a mutually beneficial cooperation and I picked CIMB Niaga as the bank partner. In addition to being one of the largest banks in Indonesia, CIMB Niaga also offers products that are tailored to my needs such as savings, time deposit, credit card, insurance and digital services through Go Mobile and CIMB Clicks. The quality of services provided by CIMB Niaga is always personal, prompt, and makes us feel special. Especially since the introduction of Digital Lounge, banking access has become very convenient and is not restricted by time. I hope CIMB Niaga does not become too content with its excellent quality and keeps innovating to improve its services to customers. 158 In enhancing the brand awareness of mortgage loans, CIMB Niaga organizes a variety of promotional activities, through CIMB Niaga promotional events or in collaboration with leading and long-time developer partners. Such events feature the exhibition of house products and flagship mortgage services with low interest rates. Several exclusive promotions with leading developers have also been launched to provide more benefits for CIMB Niaga’s mortgage customers. In addition throughout 2017, CIMB Niaga continued to harmonize relationships with developers, maintaining interest rates in order to remain competitive, and increasing the speed of mortgage processing and extending loan tenure to 25 years, to attract first-time mortgage customers. In 2017, CIMB Niaga successfully booked a mortgage portfolio growth of 12.0% to Rp27.0 trillion, from Rp24.1 trillion in 2016. The ratio of non-performing loans was still at 2.5%, equal to 2016. In addition, CIMB Niaga achieved excellent growth of sharia home financing by 103.1%, reaching Rp5.4 trillion, compared to Rp2.7 trillion in 2016. CIMB Niaga’s mortgage businesses also earned an award from an independent party, by receiving an award from Housing Estate Awards 2017 for being ”Most Innovative Bank on Mortgage Products”. Annual Report CIMB NIAGA 2017
  159. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report In the future , property businesses prospects are expected to provide a significant contribution to the growth of the national economy. CIMB Niaga will strive to expand its market share of mortgage loans and home financing, through targeted joint promotional events with the developers. CIMB Niaga will also continue to demonstrate its commitment to increase competitiveness by prioritizing service quality, process speed and mortgage product innovatives in accordance with customer expectations and needs. In 2017, the Personal Loan business achieved a growth of 7.0% to Rp3.6 trillion compared to Rp3.3 trillion in 2016. Auto Loans Auto Loans are the second largest contributor to CIMB Niaga’s Consumer Banking loan portfolio after mortgage loans. CIMB Niaga distributes auto loans to customers, both directly and indirectly. Direct auto loans are made through branches, while indirect auto loans are conducted through subsidiary, PT CIMB Niaga Auto Finance (CNAF) and through jointfinancing payment schemes with other multifinance companies. Wealth Management & Bancassurance CIMB Niaga offers a variety of wealth management products, including treasury products consisting of foreign exchange, strike currency, market-linked deposits, swap depo and bonds, mutual fund products, and insurance. These products are designed to meet the needs of those customers who plan, develop and protect their assets to ensure a better financial condition in the future. Meanwhile, Bancassurance is one of CIMB Niaga’s mutual benefit businesses, offering both loss insurance and life insurance products achieved through partnerships with insurance companies, such as Sun Life Financial Indonesia, AIA Financial, Sompo Insurance Indonesia and several other insurance companies. The insurance products offered include Mortgage Loan Insurance, Auto Loan Insurance, and other similar products issued by CIMB Niaga. Bancassurance also supports CIMB Niaga’s One Stop Banking system. In 2017, the Auto Loan portfolio stood at Rp8.7 trillion (including subsidiary) with a non-performing loan ratio at 1.3%. CIMB Niaga will continue to improve the speed of loan processing, focusing on expanding customer acquisition programs and improving service quality, accelerating the expansion of market reach to various regions throughout Indonesia, continuing to strengthen relationships with dealers and showroom partners, and cross-selling to internal customers. Personal Loans In the Personal Loan segment, CIMB Niaga implemented a loan disbursement strategy by offering through CIMB Niaga branch offices and through companies using payroll payments through CIMB Niaga. In addition, CIMB Niaga also relies on the speed of loan processing and the application of risk- based pricing as a key strategy to increase market share and improve performance. Annual Report CIMB NIAGA 2017 CIMB Niaga continues to implement cross-selling initiatives which have proven to be very effective in improving the performance of Personal Loans. Through cross-selling, CIMB Niaga provides loan facilities to customers with good track records, so that the loan quality is well maintained. In 2017, CIMB Niaga succeeded in increasing the productivity of Wealth Management sales and insurance products. Sales volume of insurance products in branches increased by 27.1% compared to 2016. In addition, the increase in sales of Wealth Management products can also be seen from the increased sales of mutual funds by 108.6% and market link deposits 37.5% higher than in 2016. This increase in sales productivity is supported by a cross- 159
  160. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management CONSUMER BANKING selling Wealth Management product strategy and comprehensive training for frontliner sales staff in branches . Wealth Management’s business performance and sustainable insurance growth was inseparable from CIMB Niaga’s active role in educating the public on the importance of investment and portfolio diversification to optimize both protection and investment returns. Throughout 2017, CIMB Niaga conducted customergathering events related to Wealth Management and insurance product socialization and marketing. Credit Cards and Debit Cards CIMB Niaga is committed to provide convenience for customers in carrying out their daily activities with the Bank’s many credit card and debit card products. In 2017, CIMB Niaga conducted credit card management and development in the Classic, Gold, Sharia Gold, Platinum, Ultimate, Infinite, World and Corporate categories to reach different customer segments with their varying needs and preferences. In line with CIMB Niaga commitment, in 2017 CIMB Niaga’s credit card products were awarded “Best Credit Card Product of The Year” by The Asian Banker, and ”Best Cross Border Program” by MasterCard International. In 2017, CIMB Niaga recorded as the largest sharia card issuers in Indonesia. CIMB Niaga was also listed as one of the largest credit card issuers in Indonesia with a market share of 14.1%, increasing from 13.0% in 2016. The number of credit cards grew by 7.8% to 2.4 million cards, with total sales volume increasing by 9.4% to Rp27.7 trillion from 2016. The non-performing loans ratio improved to 2.3% from 2.7% in 2016. Throughout 2017, CIMB Niaga Debit Card products remained a customer favorite as payment tool for daily transaction needs. The ease of access of the ATM networks in the country and abroad and promotional 160 programs as well as attractive offers from merchant partners were also a major attraction for customers. In addition, several promotional programs were conducted by collaborating with Hypermart, Lottemart, Century and Cinema XXI and with many other merchants. All of these programs provided benefits for CIMB Niaga Debit Card users. The results from the promotional programs recorded that the total number of CIMB Niaga Debit Cards in circulation was 4.4 million cards at the end of 2017, up by 31.5% from the 3.4 million cards in 2016. CIMB Niaga will continue to improve the capabilities of CIMB Niaga Debit Cards to anticipate fast growth in online shopping trends of upper middle class consumers. CIMB Niaga Debit Cards are equipped with OTP or One-Time Password capability so it can be used for online shopping transactions. The credit card and debit card business segments have high growth potential, based on the fact that household expenditure is still a major driver of the Indonesian economy, in addition to the demographic bonus marked by an increasing number of citizens at a productive age. In order to implement macro prudential policies, Bank Indonesia issued several regulations governing the ownership of credit cards as well as the obligation for users to use PIN (Personal Identification Number) for credit card transactions. However, these regulations are not expected to reduce public interest or affect the growth of the credit card business. CIMB Niaga Preferred & Private Banking In 2017, CIMB Niaga Preferred & Private Banking implemented strategies that focused on investment products and portfolio allocation models, putting forward segmentation programs in order to drive business growth. CIMB Niaga also developed the capability of identifying and approaching potential Annual Report CIMB NIAGA 2017
  161. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report individual customers from the upper middle class segment through existing service channels . facilities, which can be adapted to the needs of customers to fund their children’s school fees. CIMB Niaga provides special banking services for individual customers who have assets above a certain amount in the Preferred & Private Banking segment. CIMB Niaga Preferred & Private Banking targets the business growth opportunities from the rapidly growing middle and upper middle class population in Indonesia in recent years. In addition, existing conventional savings were also enhanced with a sharia option to complement the dual banking product concept offered for CIMB Niaga Consumer Banking products. CIMB Niaga also launched Sharia Installment Savings, which offers a gift of “Waqaf” (endowment). For this product, CIMB Niaga collaborates with 7 “Waqaf” institutions, making it easier for customers who want to do “Waqaf” while saving, using their preferred “Waqaf” types. These products are able to diversify and complement the existing products to meet the needs of a diverse range of individual customers. At the same time, CIMB Niaga Preferred & Private Banking continues to pay full attention to the development and quality of Human Resources (HR). This is important as customer relationships are built on a personal approach, in accordance with the needs and lifestyle preferences of middle and upper class customers. The development of quality Human Resources is carried out through routine training and materials that can be directly applied by Relationship Managers regarding product knowledge and risk management, as well as through professional certification as necessary. Savings Products In 2017, Consumer Banking savings increased by 5.0%, or Rp2.3 trillion to Rp47.3 trillion from Rp45.1 trillion in 2016. This growth indicates that CIMB Niaga has implemented strategies and policies for saving product improvement through increased transactions as well as efforts to encourage saving habits among customers, by promoting product features tailored to customer needs and through attractive promotional programs. Savings growth also continued to be encouraged through cross-selling efforts. CIMB Niaga, once again, introduced several new savings products, including several repackaged products in order to support the growth of savings. These products included additional features such as Free Inpatient Treatment, Life Insurance and Medical Check-Ups for CIMB Niaga XTRA Savings. Education Savings is also equipped with planned disbursement Annual Report CIMB NIAGA 2017 Non-Branch Channel The Non-Branch Channel Strategy in 2017 focused on increasing average balances of individual savings customers, encouraging debit card use to increase individual transaction numbers and deliver a positive impact on CIMB Niaga’s rewards income, and acquiring new customers with large savings accounts through telesales activity. With focus on developing the Non-Branch Channel in the employee segment, CIMB Niaga actively offers deposit, loan and payroll products. Through this, Consumer Banking was able to deliver a positive and significant impact on the overall performance of CIMB Niaga. In 2017, Non-Branch Channel Consumer Banking managed to increase its personal loan portfolio by 7% with a new personal loan portfolio of Rp2.5 trillion and managed to acquire 454,642 new credit cards. The achievements were also accompanied by the successful acquisition of more than 492,296 new savings customers, which accounted for 46% of the total growth of new savings accounts at CIMB Niaga. CIMB Niaga has made a commitment to continuously develop its Non-Branch Channel in the framework of the banking inclusion programs encouraged by Bank 161
  162. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management CONSUMER BANKING Indonesia and the Financial Services Authority . This effort aims to achieve being at the forefront in providing digital banking services. The development of the Non-Branch Channel services will also be increasingly relied upon as an alternative to acquire new customers and expand the customer base. Branch Network In 2017, CIMB Niaga continued to optimize its branch network through placement of the spread of the branch network, and by transferring banking transactions to branchless banking channels. CIMB Niaga also prioritized customer service improvement by rejuvenating several branches, through renovation or relocation into better premises or to more strategic areas. By the end of 2017, CIMB Niaga had an office network of 542 conventional and sharia branches, with 4,500 ATMs and 774 CDM and CRM units operating throughout Indonesia. The optimization of the branch network will continue in 2018, and CIMB Niaga will also continue to increase branch outreach to customers through opening branches in strategic locations in residential areas, offices and shopping centers, as well as serving customers who live far from CIMB Niaga branches via locating Mobile Cash at locations such as schools, factories, or public events. Service Quality Improving customer service quality is a main priority and an integral part of Consumer Banking policy. CIMB Niaga continues to maintain and offer superior customer experience quality, in line with CIMB Niaga dedication to ensure all customers are always satisfied with the services provided. CIMB Niaga has its own special unit to handle and manage customer experiences, called Customer Care Unit (Unit CC). As a work unit, Unit CC works wholeheartedly to ensure every service point is able to deliver customer-centric services, socializing the digital platform as the transaction option of choice, initiating 162 improvements to meet customer expectations, and readily handling customer complaints. CIMB Niaga involves all business units in improving and increasing the abilities at every service point. CIMB Niaga also pays attention to human interactions, processes, products, and infrastructure. In this effort, discussions are routinely conducted and are also attended by members of the Board of Directors, who monitor customer service enhancements. Throughout 2017, CIMB Niaga conducted a number of activities in order to realize the Customer Experience focus. One of these was to continue the internal campaign of “Serving with the Heart”. The campaign is aimed at all employees - frontline, middle-office and back-office - and highlights motivational programs from the Directors to inspire staff, such as Leaders’ Quotes. A collection of inspirational stories (WOW stories) is one of program that motivates employees to consistently provide satisfactory banking services. Implementation of the project is also done as an effort to focus on improvements from customer feedback. Customer Complaints Management In 2017, CIMB Niaga sought to optimize digital banking services and provided a range of services featuring the convenience, security and flexibility of transactions for customers. Promoting a customer-centric culture focuses on customer experience and continuously imbues all employees with the aim of improving service quality to impact on customer satisfaction and loyalty. CIMB Niaga regularly measures the level of customer satisfaction to assess the effectiveness of the work done. The Customer Feedback System recorded satisfaction levels above 95% in 2017 for services provided by Customer Service Officers and Branch Tellers. Survey results of e-channel services in 2017 showed that 80% of customers expressed satisfaction with Annual Report CIMB NIAGA 2017
  163. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report the service quality provided . The average amount of financial complaints received by customers in 2017 was 6,500 per month with a complaint rate below 3 bps (base point - per 10,000 financial transactions). In addition, efforts to improve the quality of service were made with various breakthrough services for customers, such as the ease of opening an account online, e-statement registration, replacement requests for lost cards and change of address through 24-hour Phone Banking. Other branchless banking concepts call to simplify retail customer transactions and include internet banking CIMB Clicks, mobile banking Go Mobile, “Rekening Ponsel”, Phone Banking 14041, Preferred Phone Banking, OctoPay, and ATM services. CIMB Niaga continues to maintain its performance by becoming one of the leading banks in Indonesia which promotes the concept of branchless banking, as evidenced by the increasing number of branchless banking service transactions each year. Various initiatives in CIMB Niaga’s customer complaints management were recognized in 2017 through several awards such as: 1.2nd rank “WOW Service Excellence National Award“ MarkPlus Inc, Indonesia 2.3rd rank “Service Excellence” ISMS Trisakti Indonesia. In 2017 from a total of 267 million customer financial transactions, approximately 245 million transactions or 92%, were branchless banking transactions, while the remainder were transactions conducted conventionally in branches. CIMB Niaga is a pioneer in the development of e-channel banking by launching “Rekening Ponsel” product. Gradually, e-channel based branchless banking transactions are developed to support Bank Indonesia’s financial inclusion program in its effort to expand access to banking and financial services for all of society, including non-banking customers. In the case of customer complaint management, Customer Care at CIMB Niaga handled customer complaints through various channels such as branches, phone banking, social media, CIMB Niaga website, mass media and regulators. Each customer complaint is followed up through the comprehensive customer complaint monitoring system, to ensure the speed and quality of settlement. In 2017, the Customer Care Unit recorded that 94% of customer complaints were settled under the Service Level Agreement, or an increase of 4% compared to 2016. Branchless Banking One of CIMB Niaga’s fundamental steps in the banking industry was to create a branch of the future called CIMB Niaga Digital Lounge, which assembles state-of-the-art technology to provide a fast banking experience for retail customers. Each of CIMB Niaga’s Digital Lounges is managed by a Digital Banking Manager, who provides solutions for individual banking customers. The Digital Lounge continues to be a key CIMB Niaga effort to support the strategy of developing Digital Consumer Banking, with the opening 2 new Digital Lounges in big cities Bogor and Surabaya, bringing the total to 22 Digital Lounges. Annual Report CIMB NIAGA 2017 With a mobile wallet technology in place, users can enjoy a variety of CIMB Niaga’s services through their own mobile phones, even without having a bank account. The number of “Rekening Ponsel” users by the end of 2017 grew by 41.9% to 3.1 million from 2.2 million users in 2016. The number of CIMB Clicks users increased by 20.8% to around 1.5 million compared to 1.2 million in the previous year. Total transactions of CIMB Clicks, both financial and nonfinancial transactions, reached 258 million transactions compared to 199 million transactions in 2016, with transactions volume increasing by 22.2% to Rp99.1 trillion from Rp81.1 trillion in 2016. The Go Mobile product recorded significant growth in 2017, with an increase in the number of users up by 31.5% to approximately 1.8 million from 1.4 million users in 2016. The average monthly transaction volume amounted to Rp1.1 trillion and transaction volume in 2017 rose by 4.4% to Rp13.8 trillion from Rp13.2 trillion in 2016. 163
  164. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management CONSUMER BANKING Branchless Banking once again made history in 2017 by re-launching the Go Mobile app in November 2017 . In addition to a more modern look, Go Mobile’s banking applications can now be accessed using fingerprints. The transactions are now much easier and safer with the feature of the one phone-one user ID. There are many promotions that customers can follow by using promo codes. After finishing any transaction, customers can directly share transaction proof via SMS, LINE or Whatsapp without leaving the Go Mobile page.   Various initiatives in digital banking products conducted by CIMB Niaga have been recognized in 2017 through several awards such as: 1. Infobank Banking Service Excellence Awards 2017 for “Best SMS Banking Performance”, “Third Best Performance for Digital Store”, “Second Best Performance for Overall Account Opening Services Via Web/Application” 2. Indonesia Digital Innovation Award 2017, Category: Bank BUKU 4 – Warta Ekonomi. POS as a tool to receive transactions by CIMB Niaga grew by 30.5% in 2017, which encouraged the growth of card-based transactions. As one of the major acquiring banks, CIMB Niaga is also appointed by Bank Indonesia as a participant in the pilot project of the National Payment Gateway, where only 7 banks are deemed to have the experience and technical knowhow, as well as operational development capabilities. Thus CIMB Niaga is recognized by regulators as one of the leading banks in terms of electronic banking services. 164 PLANS FOR 2018 In order to boost the performance of Consumer Banking, CIMB Niaga will continue to implement a sustainable strategy policy with awareness of national economic conditions. In principle, CIMB Niaga, through Consumer Banking is enthusiastic about continuing to contribute towards the development and enhancement of transactional ease in assisting communities in financial issues that, at the same time, foster CIMB Niaga’s performance. The Consumer Banking business plan in 2018 will remain focused on customer experience as well as collecting customer deposits from savings products that improve CASA. Various initiatives and programs through direct promotion, product bundling and partnerships will be conducted to increase the number of CASA accounts. The development of both the features and the capabilities of branchless banking, as one channel to support CASA growth, will continue by using branchless banking to perform digital cross-selling. In all, this is expected to provide added value, simplicity and a better customer experience. In the mortgage business, CIMB Niaga will continue to expand its market share of mortgage loans, through cooperation of joint promotional and joint events in areas of potential with real estate developers. CIMB Niaga will also continue to demonstrate its commitment to enhance competitiveness by prioritizing service quality, process speed and innovative housing financing products in line with the expectations and needs of its customers. Annual Report CIMB NIAGA 2017
  165. Supporting Business Review Corporate Governance Report Corporate Social Responsibility In the auto loan business segment , CIMB Niaga will continue to improve credit processing speed, focusing on customer acquisition programs and improving service quality. This includes accelerating marketing across various regions throughout Indonesia, as well as continuing to strengthen relationships with dealers and showroom partners, and cross-selling to internal customers. In credit cards, CIMB Niaga consistently strives to innovate with interesting products and credit card programs for all customer segments from regular, business, special, to premium including sharia-based cards. CIMB Niaga will also strive to deliver interesting offers for merchants who cooperate with CIMB Niaga. In wealth management, CIMB Niaga will remain focused on delivering products designed to meet the needs of Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report customers who want to plan, develop and protect their assets to ensure a better financial condition in the future. The optimization of the branch network will continue in 2018, and CIMB Niaga will also continue to increase branch outreach to customers through opening branches in strategic locations in residential areas, offices and shopping centers, as well as moving Mobile Cash to areas around schools, factories and public events in order to serve customers who are far from CIMB Niaga branches. In total, improving customer service quality remains a main priority and an integral part of Consumer Banking policy. CIMB Niaga continues to maintain and offer a superior customer experience in line with CIMB Niaga dedication to ensure all customers are always satisfied with the services provided. 165
  166. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Business Segment Review SHARIA BANKING In the course of the year 2017 , CIMB Niaga Sharia focused on a more prudent policy in managing its businesses. Total financing portfolio increased by 63.6% while the NPF ratio decreased from 1.15% in 2016 to 0.91% in 2017. 85.0% Total Assets of Sharia Banking increased by 85.0% yoy to Rp23.6 trillion 87.3% SHARIA BANKING PROFILE The sharia banking business of CIMB Niaga is undertaken by CIMB Niaga Syariah as the Sharia Business Unit under CIMB Niaga’s organization structure. CIMB Niaga Syariah offers a comprehensive range of products and services to serve customers’ financial needs across all segments. In developing the sharia banking business, providing the best services to the society, and in line with the Group’s vision to “becoming a leading ASEAN company”, CIMB Niaga Syariah is directed toward four pronged objectives: 1. To be a leading sharia banking player in Indonesia with unparalleled service culture, processes and human capital, offering strong universal banking propositions domestically, as well as being a role model for the dual banking system in Indonesia. 2. To make Indonesia the basis for sharia banking business development as part of PT Bank CIMB Niaga’s vision. Customer Deposits of Sharia Banking increased by 87.3% yoy to Rp19.9 trillion 166 Annual Report CIMB NIAGA 2017
  167. Supporting Business Review Corporate Governance Report Corporate Social Responsibility 3 .To champion the business development and acceleration of the ASEAN integration agenda towards being a leading sharia bank, being the anchor for Indonesian banking development through continuous innovations, quality services and best practices. 4. To be a leading sharia bank providing the best digital banking services in the industry. OBJECTIVES, STRATEGIES, AND POLICIES ON SHARIA BANKING DEVELOPMENT Short Term Our short-term targets, strategy and policies are formulated to strengthen work culture as the groundwork to support sustainable business growth by means of the following: Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report 1. Implementing the Dual Banking Leverage Model (DBLM) across business units and support functions. 2. Increasing sharia banking’s share of the Banking book across business segments by implementing a solid and integrated KPI with attractive rewards. 3. Undertaking sharia banking education and training on a continuous and regular basis. 4. Improving understanding of Syariah First on a bankwide basis. 5. Accelerating new product launches and new feature developments to improve customer experience. 6. Improving efficiencies through a better synergy with other units in CIMB Niaga and its affiliates. 167
  168. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management SHARIA BANKING Medium Term In the medium term , CIMB Niaga Syariah focuses on becoming one of Indonesia’s leading sharia banking players by means of the following: 1. Increasing its business size to 15% that of CIMB Niaga. 2. Continuously developing human resources with sharia banking being one of the core competences for all staffs. 3.Improving effectiveness of the Dual Banking Leverage Model implementation across all lines. 4. Exploring more diverse and stable funding sources to support CIMB Niaga Syariah’s growth plan. 5. Increasing cross-sell of sharia products across all business units. 6. Establishing a solid foundation to support its spinoff plan from CIMB Niaga. Long Term In the long-term, CIMB Niaga Syariah focuses on its spin-off preparation from CIMB Niaga to become a separated entity as regulated by OJK by means of the following: 1. Prepare a solid sharia banking framework based on Strategic Business Unit (SBU) as the key pillar. 2. Develop a sharia business platform through the DBLM implementation with each SBU functioning to coordinate its daily operations with CIMB Niaga Syariah in order to achieve the desired level of efficiency and to improve risk management quality. 3. Increase its share of the book at CIMB Niaga to 20% by 2023. 168 ASSET GROWTH In 2017, CIMB Niaga Syariah recorded asset growth of 85.0% yoy, representing an increase of Rp10.9 trillion to Rp23.6 trillion, from Rp12.8 trillion in 2016. Asset growth was largely attributed to the 63.6% increase in the financing portfolio, making up 70.6% of total assets. This performance has further strengthened CIMB Niaga Syariah’s foothold as one of the leading sharia business units in Indonesia. FINANCING The total financing portfolio by end of 2017 grew 63.6%, from Rp10.2 trillion in 2016 to Rp16.7 trillion in 2017. The highest growth stemmed from the Corporate segment which increased 77.1% or Rp2.6 trillion yoy. The next highest growth contributor was the Consumer segment, which rose by 48.9% or Rp2.4 trillion compared to 2016. The Commercial and MSME segment also recorded significant increase, with the Commercial segment increasing 88.8%, or Rp1.1 trillion yoy meanwhile the MSME segment showed an increase of 57.0% or Rp445 billion yoy. Sharia Financing by Segment Sharia Financing Rp billion 2015 2016 2017 Growth (%) 2015-2016 2016-2017 Corporate 1,643 3,360 5,949 104.5% 77.1% Commercial 1,135 1,218 2,299 7.3% 88.8% 754 781 1,226 3.6% 57.0% MSME Consumer 3,752 4,847 7,221 29.2% 48.9% Total 7,284 10,206 16,695 40.1% 63.6% Annual Report CIMB NIAGA 2017
  169. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report CUSTOMER DEPOSITS In 2017 , the total customer deposits increased by 87.3% to Rp19.9 trillion compared to 2016’s total of Rp10.6 trillion. This growth mostly resulted from growth of funds from time deposits by 147.3% yoy. The increase in customer deposits was driven by growth in all segments. The largest volume growth was the Corporate segment that recorded an increase of Rp3.8 trillion, or 351.8% yoy, followed by the Consumer segment deposits that increased 54.5%, or Rp3.6 trillion yoy. The MSME funding also increased of Rp1.7 trillion or 88.4% yoy. Meanwhile, the Commercial segment was relatively stable with an increase of Rp204 billion or 18.8% yoy. Sharia Customer Deposits by Segment Sharia Customer Deposit Rp billion 2015 2016 2017 Growth (%) 2015-2016 2016-2017 Corporate 543 1,083 4,893 99.4% 351.8% Commercial 634 1,088 1,292 71.5% 18.8% MSME 1,907 1,933 3,641 1.3% 88.4% Consumer 4,500 6,525 10,082 45.0% 54.5% Total 7,585 10,629 19,908 40.1% 87.3% NON PERFORMING FINANCING AND CONTINUOUS IMPROVEMENT In the course of 2017, CIMB Niaga Syariah focused on a more prudent policy in managing its businesses. While total financing volume recorded a significant increase of 63.6%, the gross Non-Performing Financing (NPF) ratio declined from 1.15% in 2016 to 0.91% in 2017. In maintaining its assets quality, CIMB Niaga Syariah has strengthened cooperation with the Asset Restructuring and Recovery (ARR) team by managing non-performing financing (NPF) portfolios and marginal accounts. IBU ESTHER REFINA SIAHAAN Finance Director PT Gapura Angkasa As the leading airport service company, PT Gapura Angkasa (Gapura) commits to provide the best services to customers as well as to stakeholders in an effort to improve Company performance. The success of Gapura this year was largely contributed by customer trust, as well as enormous support from the stakeholders, particularly CIMB Niaga Syariah for providing financing facilities for our operational equipment procurement. Sharia-based corporate financing is provided through the Ijarah Mutahiya Bi Tamlik contract (Corporate Leasing iB), and is recorded as OffBalance Sheet financing during the financing tenor. We are positive that this scheme will be able to be one of the financing alternatives for others, due to its uniqueness that is exclusively provided by sharia-based banking. We choose CIMB Niaga as our main banking partner for their capabilities to provide a one-stop solution for various financing needs. Hopefully, the cooperation and partnership that has been going well between the two institutions could continue and further improved in the future. Thank you Annual Report CIMB NIAGA 2017 169
  170. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management SHARIA BANKING In addition to managing business growth with a more prudent policy , CIMB Niaga Syariah also focused on business process improvements. These, among other means, included the development of Syariah Acceptance Criteria (SAC) tools to simplify business review process according to sharia principles. This tool is also used to assist reviewing process of all products and scheme to sharia principles. Overall, SAC tool greatly improves business processes and further enables business units to conduct a self-review of sharia compliance with products offered to customers. This improvement is effective in accelerating and facilitating sharia business operations, as well as to improve overall business adherence to sharia principles. Another improvement was the implementation of effective and efficient cost management, applied as part of the daily work culture. This has, among other means, been executed through the rationalization and collocation of 11 branches. CIMB Niaga Syariah has also optimized its Office Channelling for sharia product distribution. In addition, efficiency improvement was also made from the support optimization of information systems technology. CIMB Niaga Syariah consistently strives to improve the product and service quality in order to build and enhance the customer experience, all towards sustaining customer loyalty. Service improvements are conducted in accordance with brand promise “Forward” for operational activities, touch points, and product benefits. CIMB Niaga Syariah also created continuous added value in order to strengthen and enhance the customers’ heart share in the long run. OFFICES AND DISTRIBUTION NETWORK To facilitate customer access to its sharia products and services, CIMB Niaga Syariah optimized its branch distribution network, including sharia main branches and office channelling at conventional branches (OC). By the end of 2017, CIMB Niaga Syariah had 24 main branches, 1 cash office, 2 payment points and 460 OCs. In addition, customer access is also supported through CIMB Niaga’s branchless banking services, including ATM, MFD, CDM, CIMB Clicks, Go Mobile, Preferred Phone Banking, Digital Lounge, and Rekening Ponsel choices. All these facilities demonstrate CIMB Niaga Syariah’s commitment to provide ease and convenience to customers in performing financial transactions. These all have provided CIMB Niaga Syariah with the best digital sharia banking facilities in the industry. HUMAN RESOURCES DEVELOPMENT In support of building up sharia banking awareness in society, CIMB Niaga Syariah is committed to developing quality human resources in CIMB Niaga as catalyst or development agent. This commitment is demonstrated through undertaking sharia banking education and training to all CIMB Niaga employees. During 2017, CIMB Niaga Syariah has developed sharia banking training modules and programs as well as certifications through e-learning. By the end of 2017, CIMB Niaga Syariah had 22 sharia banking training programs for business units and support units in CIMB Niaga, 32 development programs for CIMB Niaga Syariah staff, and 18 business learning sessions attended by 2,399 participants. CIMB Niaga Syariah also arranged a Sharia Banking certification program for 17,411 CIMB Niaga staff. SHARIA BANKING INCOME 2017 CIMB Niaga Syariah recorded a Profit Before Tax of Rp489.7 billion in 2017, increased by 60.3% or Rp184.2 billion, compared to Rp305.4 billion in 2016. The increased Profit Before Tax resulted from a combination of higher Operating Income and effective cost management. 170 Annual Report CIMB NIAGA 2017
  171. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report AWARDS A variety of performance achievements in the course of 2017 has given positive results to CIMB Niaga Syariah ’s corporate image as reflected in the following awards: 1. Islamic Finance Award (KARIM Award 2017) as “The Most Expanding Financing UUS with Assets > Rp1.5 Trillion. 2.Infobank Sharia Finance Awards 2017 with an “Excellent” ranking in the UUS Commercial Banks with Assets > Rp5 Trillion. 3. Baznas Award 2017. 4. Indonesia Sharia Finance Awards (ISFA) 2017 from Warta Ekonomi as “The Best Digital Sharia Unit Bank”. 5. Silaknas IAEI 2017 “Best Syariah Bank in UUS Category. 6. Indonesia Banking Awards 2017 “The Best Sharia Business Unit”. 7. Anugerah Syariah Republika 2017 as “Sharia Bank with Best Performance and Innovations”. Continuing from prior years, DBLM implementation in 2017 was carried out to maintain and further improve all units support of sharia business growth. In the long term, CIMB Niaga Syariah leverages the DBLM as part of the corporate work culture. Therefore, the successful implementation of the DBLM requires both adequate quality and quantity of human resources in sharia banking. COMPLIANCE AND IMPLEMENTATION OF SHARIA GOVERNANCE FRAMEWORK CIMB Niaga Syariah has consistently supervised the implementation of sharia principles through the Sharia Supervisory Board (DPS), as executed by the Syariah Advisory Group as its lengthened arm. The DPS is actively involved in overseeing sharia compliance through reviews in order to ensure adherence to the fatwa regulations from the National Sharia Board. Apart from the Syariah Advisory Group, these controlling activities are also supported by a Risk Control Unit. The Syariah Advisory Board assists the DPS in performing reviews related to adherence to sharia principles and provides input on product and transaction related issues, whereas the Risk Control Unit supports DPS in performing reviews related to sharia compliance within the Bank. Furthermore, CIMB Niaga Syariah has Common Sharia Compliance Policy and Standard Operating Procedures (SOP) that set guidelines for operating units, to ensure adherence to sharia principles. REALIZATION AND METHOD OF PROFIT SHARING In accordance to sharia principles, the distribution of profit sharing to third-party funding customers is calculated based on a predetermined and agreed nisbah (profit sharing portion) at the time of signing the fund placement agreement. To uphold the transparency and measurability principles, CIMB Niaga Syariah uses the calculation formula and policies set out in the internal profit sharing standard operating procedure. On a monthly basis, CIMB Niaga Syariah issues an internal memo regarding the Bank’s income, calculated in a percentage, to be used as the basis for profit sharing distribution. The memo also contains the information on the nisbah for the following month. The profit sharing realization for 2017 of CIMB Niaga Syariah is as follows: GYD Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 IDR 8.771% 9.907% 8.812% 8.820% 9.089% 9.292% 9.470% 9.199% 9.112% 8.809% 8.260% 8.634% USD 4.725% 5.326% 5.637% 4.839% 3.896% 5.667% 4.783% 4.961% 4.764% 4.444% 3.799% 4.899% Annual Report CIMB NIAGA 2017 171
  172. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management SHARIA BANKING 2018 PLANS , FOCUS AND STRATEGY CIMB Niaga Syariah is confident of sharia banking industry growth in the future. Considering that sharia banking in Indonesia is barely breaking into the “growth phase”, CIMB Niaga Syariah believes that with adequate resources, incentives and support, the sharia banking industry will grow even more rapidly in the upcoming years. With such optimism, for 2018 CIMB Niaga will emphasize an optimistic business growth projection, controlled by prudent banking policy in managing its businesses. As a sharia-compliant financial intermediary, CIMB Niaga Syariah will focus on strengthening risk management, adhering to the applicable regulations and implementing good corporate governance principles. Funding acquisition activities will be focused to ensure that the ever-challenging financing growth will be properly supported with adequate funding. CIMB Niaga Syariah will explore wider alternative funding sources, yet the main focus is still to acquire low-cost funds, CASA deposits. CASA acquisition activities will include, but will not be limited to, the development of new products and strengthening CASA promotion activities. Optimization of branchless banking services is also expected to strengthen CIMB Niaga Syariah’s foothold as the leading digital banking provider within the sharia banking industry. This strategy is also expected to improve CIMB Niaga Syariah’s operational efficiency. 172 CIMB Niaga Syariah is also committed to improve hajj service and facilities. In 2018, CIMB Niaga Syariah is planning to broaden the hajj service more extensively by intensifying partnership with BPKH (Badan Pengelola Keuangan Haji - Hajj Fund Management Agency) as well as other related organizations. To achieve better business liquidity, CIMB Niaga Syariah will explore different funding sources and instruments, especially to cover long-term funding requirements. This action is conducted to strengthen long term business growth as well as mitigate the liquidity risk. CIMB Niaga Syariah is also inspired to further strengthen credit risk management by implementing the Dual Banking Leverage Model within the credit risk management unit. Financing will be diversified to prudently selected customers according to CIMB Niaga’s overall risk appetite. To accelerate business growth and generate steady income, financing growth will be heavily supported by disbursement to non-retail segments which will be prioritized toward government projects. Nevertheless, CIMB Niaga Syariah also aspires to be the leader in the retail financing business, to be supported by new product development in the mentioned target. To strengthen sharia business growth, CIMB Niaga Syariah will also ensure sharia products and services are aligned to those of conventional, to further promote sharia products better to the general public Annual Report CIMB NIAGA 2017
  173. Supporting Business Review Corporate Governance Report Corporate Social Responsibility and increase public exposure to and understanding of sharia banking products . Non-margin income generation activities will also be further enhanced. Cross-selling activities for sharia products will be promoted across all units and be considered as part of the daily working culture. CIMB Niaga Syariah will also explore the treasury and trade finance business further by providing new related products, including preparing the business process to ensure proper risk management. Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report The implementation of strategies stated above will be closely-affected by support and involvement from all units and parties in CIMB Niaga. Learning from Syariah First implementation in the previous year, all units in CIMB Niaga are encouraged to continue living the spirit of Syariah First and bring this within the day-to-day working culture. With the finalization of DBLM policy, hopefully the “Syariah First” spirit can be implemented even better across all units in CIMB Niaga. 173
  174. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Financial Performance Review In 2017 , CIMB Niaga recorded a net profit increase of 43.0% to Rp3.0 trillion, from 2016’s Rp2.1 trillion. CIMB Niaga also succeeded in maintaining its position as the 5th largest bank in terms of assets. Net Profit (Rp trillion) 3.0 2.1 0.4 15 16 17 43.0% yoy Total Assets (Rp trillion) 266.3 241.6 238.8 15 16 17 10.2% yoy 174 CIMB Niaga was able to show improvement in its financial performance in 2017, supported by national economic growth. CIMB Niaga recorded a 10.2% growth in assets, reaching Rp266.3 trillion, supported by a 2.8% loan growth, reaching Rp185.1 trillion, with Third Party Funds of Rp189.3 trillion showing an increase of 4.8%. In addition, net profit grew by 43.0% reaching Rp3.0 trillion, mainly due to the increase in lending activities. These achievements show that CIMB Niaga is able to consistently improve and maintain its performance in the midst of challenges in the local and global economies. The following is a more detailed explanation, analysis and overview of CIMB Niaga’s 2017 financial performance. The financial information is taken from the consolidated financial statements of PT Bank CIMB Niaga Tbk and Subsidiary as of 31 December 2017 and for the year then ended, which were prepared by Bank CIMB Niaga’s management in accordance with Financial Accounting Standards in Indonesia and which were audited by KAP Tanudiredja, Annual Report CIMB NIAGA 2017
  175. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Wibisana , Rintis & Rekan, a member firm of the PwC global network (signing partner is Angelique Dewi Daryanto, SE, CPA), independent auditor, in accordance with Auditing Standards established by the Indonesian Institute of Public Accountants, with unqualified audit opinion, as described in independent auditors’ report dated 26 February 2018. OVERVIEW Along with improvement of Indonesia’s economy with a GDP growth of 5.07%, CIMB Niaga recorded an asset growth of 10.2% reaching Rp266.3 trillion in 2017 compared to its 2016 position of Rp241.6 trillion. This asset growth was in line with the achievement of loan growth by 2.8% to Rp185.1 trillion, compared to the previous year’s position of Rp180.2 trillion and also in line with marketable securities and government bonds growth by 36.8%, or Rp10.3 trillion compared to 2016. Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report To support the loan disbursement throughout 2017, CIMB Niaga was able to collect third party funds of Rp189.3 trillion, a growth of 4.8% compared to 2016’s position of Rp180.6 trillion. The increase in third party funds was supported by current accounts and saving accounts (CASA) growth of 8.4% to Rp99.5 trillion, equivalent to 52.6% CASA ratio of total DPK, compared to a 50.8% CASA ratio in 2016. In addition to third party funds, CIMB Niaga also diversified the sources of its financing through the issuance of debt securities (Rp5.4 trillion), subordinated loans (Rp1.6 trillion), and deposits from other banks (Rp6.9 trillion). In line with loan growth, CIMB Niaga was able to record an increase of net interest income by 2.6%, reaching Rp12.4 trillion in 2017. Net profit margin (NIM) was relatively stable and decreased 4 bps to 5.60% in 2017, compared to the 2016 NIM of 5.64%. Supported by an 175
  176. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management FINANCIAL PERFORMANCE REVIEW increase in net interest income and the improvement in asset quality , resulting in a decline in the allowance for impairment losses on financial and non-financial assets, CIMB Niaga successfully recorded an increase of net profit by 43.0% to Rp3.0 trillion in 2017, compared to 2016’s position of Rp2.1 trillion. CIMB Niaga will continue to focus on improving the quality of services corresponding to customer needs. In line with the above, CIMB Niaga also made alignments on several segmentation. Global Condition Affecting the Bank’s Performance In 2017, CIMB Niaga recorded a net profit increase of 43.0% reaching Rp3.0 trillion, compared to Rp2.1 trillion in 2016. The increase was also in line with Indonesia’s economic growth which recorded a 5.07% GDP growth, higher than the 2016 growth of 5.02%. Indonesia’s improved economic growth was supported by purchasing power due to the lower reference interest rate during 2017, meanwhile the inflation rate in 2017 was recorded at 3.81%, higher that the 3.53% in 2016. The Bank Indonesia (BI) reference rate, the 7 Day Reverse Repo Rate, decreased by 1.50% in 2016 and 0.50% in 2017. In 2017, the 7 Day Reverse Repo Rate decreased two times, from 4.75% to 4.50% on August 2017 and to 4.25% on September 2017. This was directly influenced by stronger and more evenly spread global economic growth compared to 2016 in both developed and developing countries. The non-performing loan (NPL) ratio in Indonesia’s banking industry improved by 34 bps to 2.59% from the 2016 position of 2.93%. 176 In the midst of these conditions, in 2017 CIMB Niaga succeeded in maintaining its position as the fifth largest bank in terms of assets. To support its business growth, CIMB Niaga has undertaken a number of initiatives and will continue development to support the next stage of growth. Expansion of Electronic Network Coverage CIMB Niaga continues to provide its best services to more than 7 million customers, supported by 542 branches and a networks of 4,500 ATMs, 683 CDMs and 174 MFDs, with a total of 12,782 employees across Indonesia. In 2017, CIMB Niaga maintained 22 Digital Lounges to serve its customers in strategic locations. In addition, CIMB Niaga also operated 20 mobile cash units to reach a wider service area. 2017 Strategies CIMB Niaga will continue the implementation of a medium-term strategy with focus on the key skills of the five pillars, these are focus on main expertise, CASA enhancement, discipline in cost management, capital management, cultural risk balance, and effective utilization of information technology. In terms of lending, CIMB Niaga will emphasize the quality of loans, based on CIMB Niaga’s risk appetite as outlined in its business strategy. CIMB Niaga will also focus on continuing to develop its digital footprint and digital capabilities as a service to its customers who need transaction speed and convenience. In addition, CIMB Niaga will continue special initiatives such as improving Customer Experience (CX), Service Level Agreement (SLA) in customer service, branch optimization, and continuous product innovation tailored to customer needs. Annual Report CIMB NIAGA 2017
  177. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report STATEMENTS OF FINANCIAL POSITION Statements of Financial Position Rp billion Cash and Cash Equivalent - Net Marketable Securities and Government Bonds – Net Loans – Gross Allowance for Impairment Losses Loans – Net 2015 2016 2017 27,077 22,656 32,307 Growth (%) 2015-2016 (16.3) 2016-2017 42.6 26,046 28,071 38,414 7.8 36.8 177,537 180,164 185,135 1.5 2.8 (7,420) 170,117 (8,129) 172,035 (7,317) 9.6 177,818 1.1 100.8 (10.0) 3.4 Fixed Assets – Net 3,362 6,752 6,660 Other Assets – Net 12,247 12,058 11,106 (1.5) (7.9) 238,849 241,572 266,305 1.1 10.2 Current Accounts 40,444 44,598 49,281 10.3 10.5 Savings Accounts 43,123 47,211 50,214 9.5 6.4 Time Deposits 94,966 88,762 89,822 (6.5) 1.2 178,533 180,571 189,317 1.1 4.8 Deposits from Other Banks 5,654 4,557 6,884 (19.4) 51.1 Marketable Securities Issued and Subordinated Loans 9,443 6,387 16,379 (32.4) 156.4 Borrowings 6,685 5,436 5,810 (18.7) 6.9 Other Liabilities 9,855 10,413 10,964 Total Liabilities 210,170 207,364 28,679 34,208 238,849 241,572 Total Assets Total Customer Deposits Total Equity Total Liabilities and Equity ASSETS At the end of 2017, CIMB Niaga recorded asset growth of 10.2%, representing a total of Rp266.3 trillion compared to 2016’s Rp241.6 trillion. The 2017 assets growth was mainly due to marketable securities and government bonds growth by 36.8% or Rp10.3 trillion compared to 2016. In addition, asset growth was supported by cash and cash equivalents growth by 42.6% or Rp9.7 trillion compared to 2016, and loans growth by 2.8%, or Rp5.0 trillion compared to 2016. The asset growth strengthened CIMB Niaga’s position as Indonesia’s fifth largest bank. Annual Report CIMB NIAGA 2017 (1.4) 5.7 5.3 229,354 (1.3) 10.6 36,951 19.3 8.0 266,305 1.1 10.2 Cash and Cash Equivalent CIMB Niaga recorded a 42.6% increase in net cash and cash equivalent to Rp32.3 trillion in 2017, mainly due to a 247.2% increase in placements with Bank Indonesia. This account balance amounting to Rp12.5 trillion, increased by Rp8.9 trillion compared to Rp3.6 trillion in 2016. The placements with Bank Indonesia growth was mainly due to Bank Indonesia’s Deposit Facility (FASBI) growth by Rp7.1 trillion compared to 2016. Current Accounts at Bank Indonesia decreased 13.5% from 2016 to become Rp11.5 trillion in 2017. However, CIMB Niaga’s Demand Deposits at Bank Indonesia remain in compliance with the Statutory Reserve Requirement (GWM) as amended by Bank Indonesia PBI No.19/6/PBI/2017 dated 18 April 2017, whereby the minimum primary Statutory Reserve Requirement is 6.5%. 177
  178. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management FINANCIAL PERFORMANCE REVIEW Cash and Cash Equivalent (Rp trillion) 27.1 22.7 32.3 0.8 0.7 12.5 5.2 2.3 14.6 4.3 0.8 3.6 1.6 3.6 13.3 11.5 3.4 15 3.9 16 Placements with Other Banks Placements with Bank Indonesia Current Accounts at Other Banks Current Accounts at Bank Indonesia Cash 17 Marketable Securities and Government Bonds – Net Rp billion Marketable Securities Government Bonds 2015 9,344 13,443 (4.9) 24,971 13.3 175 543 - 210.3 26,046 28,071 38,414 7.8 25.0 37.3 (100.0) 36.8 16.1 18.2 25.0 4.7 Trading Available-for-sale Held-to-maturity 14.2 4.6 8.0 6.1 13.9 6.9 6.3 7.7 7.2 17 > 5 years > 1 - 5 years > 3 - 12 months > 1 - 3 months 1 month 6.8 4.4 16 3.7 0.4 0.7 15 178 43.9 Government Bonds by Maturity Period (Rp trillion) 3.0 15 2016-2017 Based on maturity period, the structure of the government bonds portfolio of CIMB Niaga was dominated by government bonds with a maturity period of more than 1 year ≤ 5 years, reaching 55.8% of total government bonds. The government bonds with a maturity period more than five years contributed 18.6% of the total government bonds of CIMB Niaga, equivalent to Rp4.7 trillion. 3.1 5.2 Growth (%) 2015-2016 18,184 Government Bonds (Rp trillion) 18.2 2017 9,821 Out of the total of Rp25.0 trillion in government bonds in 2017, composition for held-to-maturity government bonds reached 30.6%, while available-for-sale and trading reached 56.9% and 12.5%, respectively. The available-for-sale bonds also recorded a high growth at 77.5%, increasing to Rp14.2 trillion in 2017. 16.1 2016 16,050 Securities Purchased under Resale Agreements Total Marketable Securities and Government Bonds – Net Investor confidence in Indonesia’s economic growth has improved and was seen in Indonesia’s sovereign debt rating improving to investment grade, based on Standard & Poor’s rating, and this followed other international rating agencies that had previously positioned Indonesia within the investment grade category, making Indonesia’s bond market more attractive. In line with these conditions, CIMB Niaga also increased its investment in government bonds in 2017 to Rp25.0 trillion, or increased by Rp6.8 trillion compared to Rp18.2 trillion in the previous year. 4.3 0.8 0.2 3.7 1.9 0.8 16 17 Annual Report CIMB NIAGA 2017
  179. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report On the other hand , CIMB Niaga’s investments in marketable securities was still dominated by available-for-sale securities in 2017. Available-for-sale securities recorded at Rp11.2 trillion in 2017 while held-to-maturity securities amounted to Rp1.3 trillion, while trading securities amounted to Rp959.0 billion. Available-for-sale securities grew by 41.7% from 2016’s figure of Rp7.9 trillion. Marketable Securities - Gross Rp billion 2015 2016 Growth (%) 2017 2015-2016 1,258 962 1,307 Available-for-sale 7,776 7,916 11,215 825 502 959 (39.2) 91.0 9,859 9,380 13,481 (4.9) 43.7 Trading Total There were no securities under resale agreements in 2017, compared to the 2016 position of Rp543.0 billion. Loans CIMB Niaga recorded loans amounting to Rp185.1 trillion, or increasing by 2.8% compared to 2016 at Rp180.2 trillion, in line with the improvement of Indonesia’s economic growth in 2017. In addition, the moderate loans increase was aligned with CIMB Niaga’s strategy to more selective in determining the loan quality by tightening underwriting standard. CIMB Niaga also conducted loan expansion by creating innovative new products which are more competitive, offering loans with more competitive interest rates, and executing other loan marketing strategies. 1.8 35.9 41.7 Loans by Currencies During 2017, CIMB Niaga’s loans were still dominated by loans denominated in Rupiah, with Rupiah and foreign currency composition at 85.6% and 14.4%, respectively. This was relatively unchanged compared to the loans composition in 2016, with a ratio of loans denominated in Rupiah to foreign currencies was recorded at 86.1% and 13.9%. Loan Composition by Currency (%) 14.3% 13.9% 14.4% 85.7% 86.1% 85.6% 15 Loans Breakdown by Currencies and Average Interest Rate Rp trillion (23.5) 2016-2017 Held-to-maturity 16 Foreign Currencies Rupiah 17 2015 2016 2017 152.1 155.1 158.4 Average interest rate (%) 12.6 11.7 10.9 Foreign Currencies 25.4 25.1 26.7 4.6 4.6 4.4 177.5 180.2 185.1 Rupiah Average interest rate (%) Total Loans - Gross Annual Report CIMB NIAGA 2017 179
  180. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management FINANCIAL PERFORMANCE REVIEW The declining of average interest rate of loans denominated in Rupiah to 10 .9% in 2017 enabled CIMB Niaga to provide more competitive interest rates in line with the Bank Indonesia reference rate. As of 31 December 2017, the BI 7 Day Reverse Repo Rate was recorded at 4.25% with the deposit facility rate at 3.5% and the lending facility rate at 5.0%, compared to the year end 2016 at 4.75%, 4.0% and 5.5%, respectively. Loans by Geographical Area Rp trillion Loans by Geographical Area Based on geographic distribution, the largest loan disbursements of CIMB Niaga’s loans in 2017 were concentrated on Java at 86.4%, with DKI Jakarta having the largest contribution at 65.5%, followed by East Java by 9.2%. Growth (%) 2015 2016 2017 108.4 116.2 121.1 7.2 4.2 East Java 18.8 18.2 17.0 (3.2) (6.6) Sumatera 14.6 14.5 15.5 (0.7) 6.9 Central Java Jakarta 2015-2016 2016-2017 12.4 10.5 12.8 (15.3) 21.9 West Java 9.5 8.2 8.9 (13.7) 8.5 East Indonesia 6.9 5.9 6.0 (14.5) 1.7 Others 6.9 6.7 3.8 (2.9) 177.5 180.2 185.1 Total Loans Composition by Geographical Area (%) 3.2% 2.0% 4.8% 6.9% 8.4% 65.5% 9.2% Loans by Utilization Type Rp trillion Jakarta East Java Sumatera Central Java West Java East Indonesia Others (43.3) 1.5 2.8 Loans by Utilization Type The composition of CIMB Niaga loans in 2017 was well diversified, with working capital loans comprising the largest portion (53.0%), followed by consumption loans (24.7%) and investment loans (22.3%). Working capital loans grew by 15.3% to Rp98.2 trillion in 2017 compared to Rp85.2 trillion in 2016 supported by Indonesia’s economic growth. Growth (%) 2015 2016 2017 Working Capital 87.9 85.2 98.2 (3.1) 15.3 Investment 44.9 48.5 41.3 8.0 (14.8) Consumption 44.7 46.5 45.6 4.0 (1.9) 177.5 180.2 185.1 1.5 2.8 Total 180 2015-2016 2016-2017 Annual Report CIMB NIAGA 2017
  181. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Loans by Economic Sectors There are five types of economic sectors that consistently contribute above 10 .0%. These are manufacturing; trading, restaurants, hotels & administration; business services; housing; and consumption. The five sectors still comprised the largest of CIMB Niaga’s loans composition by economic sectors in 2017 with contributions of 21.1%, 21.0%, 14.3%, 13.7% and 10.4%, respectively. Others Corporate Data Consolidated Financial Report Loan Composition by Economic Sectors (%) 10.9% 21.1% 8.6% Manufacturing Trading, Restaurants, Hotels & Administration Business Services Housing Consumption Agriculture Others 10.4% 21.0% 13.7% 14.3% Loans by Economic Sector Rp trillion Growth (%) 2015 2016 2017 Manufacturing 34.3 36.7 39.0 7.0 Trading, restaurants, hotels, and administration 35.6 36.4 38.8 2.2 6.6 Business services 26.7 29.1 26.5 9.0 (8.9) Housing 23.6 23.3 25.4 (1.3) 9.0 Consumption 20.0 21.9 19.3 Agriculture 15.9 13.3 15.9 (16.4) 19.5 Others 21.4 19.5 20.2 (8.9) 3.6 177.5 180.2 185.1 1.5 2.8 Total 2015-2016 9.5 2016-2017 6.3 (11.9) Loans by Segment Corporate banking represented 37.6% of CIMB Niaga’s loans, growing by 7.7% to Rp69.6 trillion in 2017, compared to Rp64.6 trillion in 2016. Followed by consumer banking which contributed by 26.3% to the CIMB Niaga’s loans or decreased by 6.7% to Rp48.6 trillion, compared to 2016’s position of Rp52.1 trillion. Commercial and MSME banking increased by 6.9% and 4.3%, respectively compared to 2016, to become Rp31.9 trillion and Rp35.0 trillion. Loan Composition by Segment (%) 33.9% 26.3% 28.9% 30.0% 2015 18.5% 35.9% 37.6% 2016 17.6% Annual Report CIMB NIAGA 2017 18.6% Corporate Banking Commercial Banking MSME Banking Consumer Banking 2017 16.6% 18.9% 17.2% 181
  182. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management FINANCIAL PERFORMANCE REVIEW Non-Performing Loans Total non-performing loans (NPL) decreased by Rp0.1 trillion to Rp6.8 trillion in 2017 compared to Rp6.9 trillion in 2016. This resulted in the gross NPL ratio of CIMB Niaga decreasing from 3.89% in 2016 to 3.75% in 2017. Loan Composition by BI Collectability (%) 4.7% Overall, NPLs at CIMB Niaga improved in 2017. The NPL ratios of consumer banking, MSME banking, and corporate banking decreased in 2017 to 2.5%, 3.5%, and 2.5%, respectively. Commercial banking NPLs increased to 8.2% in 2017. NPL Ratio (%) 3.74% 0.5% 2.5% 0.7% 2.1% 3.89% 3.75% 2.7% 2.5% 3.6% 3.5% 2.8% Pass Special Mention Sub-standard Doubtful Loss Total Consumer Banking 8.2% 7.6% MSME Banking Commercial Banking 6.0% Corporate Banking 4.5% 3.1% 91.7% 2.5% By economic sectors, total NPLs from the trading, restaurants, hotels and administration sectors contributed the highest composition of NPL at 46.1% in 2017, followed by the manufacturing sector at 12.3% in 2017. NPL Composition by Economic Sectors 2015 Rp billion 2016 % Rp billion 2017 % Rp billion Growth (%) % 2015-2016 2016-2017 Trading, restaurants, hotels and administration 1,608.2 24.2 2,132.0 30.8 3,152.3 46.1 32.6 47.9 Manufacturing 1,347.1 20.3 1,494.8 21.6 841.4 12.3 11.0 (43.7) Business services (54.8) 1,439.7 21.7 1,524.1 22.0 688.6 10.1 5.9 Housing 531.7 8.0 577.7 8.4 651.4 9.5 8.7 12.8 Consumption 270.2 4.1 490.5 7.1 403.2 5.9 81.5 (17.8) 9.9 37.4 Agriculture 196.0 3.0 215.4 3.1 295.9 4.3 Social services 387.6 5.8 158.4 2.3 170.8 2.5 (59.1) 7.8 Construction 354.4 5.3 61.1 0.9 166.2 2.4 (82.8) 172.0 Transportation, warehouse and communication 252.1 3.8 216.3 3.1 147.9 2.2 (14.2) (31.6) Electricity, gas and water Mining Total 182 14.7 0.2 5.5 0.1 3.8 0.1 (62.6) (30.9) 233.8 3.5 40.2 0.6 310.5 4.5 (82.8) 672.4 6,635.5 100.0 6,916.0 100.0 6,832.0 100.0 4.2 (1.2) Annual Report CIMB NIAGA 2017
  183. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Movements in Allowance for Impairment Losses (Rp billion) Impaired Loans In 2017, impaired loans declined by 0.1% to Rp9.4 trillion. This has resulted in a lower impaired loan ratio of 5.1% in 2017, down from 5.2% in 2016. Balance Dec 16 8,129 Additional provision 3,963 Loan recovery 398 Written-off (5,927) Others* Allowance for impairment losses during 2017 amounting to Rp7.3 trillion, or decreasing by 10.0%, compared to Rp8.1 trillion in 2016. 754 Balance Dec 17 7,317 * Including differences of exchange rate Asset Quality Committee The assessment for impairment losses is performed on an individual basis (individual assessment) and collective basis (collective assessment). Non Significant Loan OS<15 billion Significant Loan OS>15 billion Objective Proof of Impairment Objective Proof of Impairment Yes Asset Quality Committee Agreement Yes Loan Individual Assessment No Loan Collective Assessment No Collective Assessment is performed by evaluating the impairment of the loan groups based on the projected contractual cash flows, the levels of historical loss of each loan group, and the time lapsed from the point a detrimental incident occurs in a loan group to the point of objective evidence identification. Individual assessment is based on projected recoverable amounts from individual. Evaluation of Individual Assessment is carried out on a monthly basis and is decided by the Asset Quality Committee. Annual Report CIMB NIAGA 2017 Asset Quality Committee consists of: 1. Chairman: Credit Director 2. Vice Chairman: Head of Loan Work Out (LWO) 3. Secretary: Head of Credit Committee Secretariat & Delegation Authority Holder Management, Financial Accounting & Standards Group Head 4.Members: Director of Strategy and Finance, Director of Business Banking, Director of Corporate Banking, Director of Sharia Banking and each with an appointed alternate from at least one level below the Board of Directors. 183
  184. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management FINANCIAL PERFORMANCE REVIEW The roles and responsibilities of the Asset Quality Committee are to evaluate the quality of CIMB Niaga ’s assets in line with CIMB Niaga’s overall risk appetite, including stipulating the names of debtors classified by Individual Assessment and determining the allowance for impairment losses to be established by CIMB Niaga. The function of an effective Asset Quality Committee are to improve asset quality and to reduce the growth of non-performing assets. Fixed Assets CIMB Niaga’s fixed assets were recorded at Rp6.7 trillion in 2017. The fixed assets decreased by 1.4% compared to Rp6.8 trillion in 2016, mainly due to an increase in accumulated depreciation. As of 31 December 2017, CIMB Niaga’s fixed assets consist of buildings and motor vehicles, which were insured with PT Lippo General Insurance Tbk with total coverage of Rp3.7 trillion and USD129 million. During 2017, there were no fixed assets pledged by CIMB Niaga as loan collateral. Liabilities Rp trillion Customer Deposits Other Assets CIMB Niaga’s other assets decreased by 7.9% to Rp11.1 trillion in 2017, compared to Rp12.1 trillion in 2016. The decrease was mainly due to the decrease in acceptance receivables and derivative receivables by 6.7% and 40.0% to Rp4.2 trillion and Rp0.3 trillion compared to Rp4.5 trillion and Rp0.5 trillion in 2016. LIABILITIES CIMB Niaga diversified sources of its financing with customer deposits, deposits from other banks, borrowings and corporate bond issuance, besides focusing on low-cost funds such as demand deposits and savings accounts. In 2017, the third party funds of CIMB Niaga were well managed, as indicated by the increase of CASA ratio to 52.6% from 50.8% in 2016. In 2017, CIMB Niaga issued corporate bonds amounting to Rp4.0 trillion to support business expansion as a diversification of its sustainable financing resources. 2015 2016 2017 Growth (%) 2015-2016 178.5 180.6 189.3 Deposits from Other Banks 5.7 4.6 6.9 (19.4) 51.1 Marketable Securities Issued 6.5 3.4 14.8 (47.7) 335.3 Subordinated Loans 3.0 3.0 1.6 Borrowings 6.7 5.4 5.8 Other Liabilities 9.9 10.4 11.0 5.7 5.3 210.2 207.4 229.4 (1.3) 10.6 Total 1.1 2016-2017 (18.7) 4.8 (46.7) 6.9 Customer Deposits CIMB Niaga recorded an increase in customer deposits amounting to Rp8.7 trillion in 2017, or a 4.8% increase compared to 2016. The increase was mainly due to the increase in low-cost funds derived from current accounts and savings accounts, which grew by 10.5% and 6.4% to Rp49.3 trillion and Rp50.2 trillion, respectively, compared Rp44.6 trillion and Rp47.2 trillion in 2016. Meanwhile, funds derived from time deposits also increased by 1.2% to Rp89.8 trillion in 2017, compared to 2016. Under such conditions, the CASA ratio increased to 52.6% in 2017 from 50.8% in 2016. 184 Annual Report CIMB NIAGA 2017
  185. Supporting Business Review Corporate Governance Report Customer Deposits Rp trillion Corporate Social Responsibility Others Corporate Data 2015 2016 2017 Current Accounts 40 .4 44.6 Saving Accounts 43.1 47.2 Time Deposits 95.0 178.5 Total Customer Deposits The increase in demand deposits is also supported by the BizChannel facility offered by CIMB Niaga. The BizChannel enables customers to manage funds and to make transactions easily and securely. The savings account increase is also an integral part of CIMB Niaga’s success in launching its savings products and promotional campaigns to generate public interest. The time deposits growth was also supported by direct to customer promotions such as by providing an online time deposit facility that allows customers to open time deposit accounts simply by accessing CIMB Clicks without having to visit the branches. Time Deposits by Contractual Period (Rp trillion) 89.8 88.8 95.0 13.6 17.3 8.2 9.3 15.8 13.4 39.0 40.1 10.2 15 2016-2017 49.3 10.3 10.5 50.2 9.5 6.4 88.8 89.8 (6.5) 1.2 180.6 189.3 1.1 4.8 Based on the contractual period, in 2017, the largest composition of time deposits was in the category of > 1 - ≤3 months at 44.6%, followed by > 12 months at 17.1%, > 3 - ≤6 months stood at 15.0%, time deposits group of ≤1 month at 12.9%, and > 6 - ≤12 months at 10.4%. Based on currencies, the composition of customer deposits is dominated by customer deposits denominated in Rupiah. The contribution of customer deposits in Rupiah was 79.0% or equivalent to Rp149.6 trillion in 2017, followed by foreign currencies was recorded at 21.0% in 2017 or equivalent to Rp39.7 trillion. In comparison, customer deposits in Rupiah and foreign currencies in 2016 amounted to Rp146.8 trillion and Rp33.8 trillion, respectively. Customer Deposits by Currencies (%) > 12 months > 6 - 12 months > 3 - 6 months > 1 - 3 months 1 month 28.8 28.3 Growth (%) 2015-2016 15.4 15.6 7.0 Consolidated Financial Report 18.7% 18.2% 21.0% Foreign Currencies Rupiah 11.6 16 17 79.0% 81.3% 81.8% 15 16 17 Average annual interest rate from customer deposits are as follows: 2015 Average Interest Rate (%) 2016 2017 Rupiah Foreign Currencies Rupiah Foreign Currencies Rupiah Foreign Currencies Current Accounts 3.05 0.87 2.95 0.47 2.84 0.54 Saving Accounts 3.46 0.46 3.18 0.25 2.91 0.23 Time Deposits 8.69 1.59 7.27 0.98 6.19 1.20 Annual Report CIMB NIAGA 2017 185
  186. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management FINANCIAL PERFORMANCE REVIEW Customer Deposits by Segment (%) 19.8% 50.7% Consumer Banking Corporate Banking Commercial Banking MSME Banking 10.2% 19.3% Based on business segment, consumer banking accounted for the largest proportion of customer deposits at 50.7% in 2017. Customer Deposits by Segment Rp trillion Growth (%) 2015 2016 2017 2015-2016 2016-2017 Corporate Banking 30.3 33.6 36.5 10.9 8.6 Commercial Banking 23.5 18.9 19.3 (19.6) 2.1 MSME Banking 34.4 34.3 37.5 (0.3) 9.3 Consumer Banking 90.3 93.8 96.0 3.9 2.3 178.5 180.6 189.3 1.1 4.8 Total The growth of customer deposits was noted in almost all business segments, whereby the highest percentage growth was recorded by MSME banking, which grew by 9.3% to Rp37.5 trillion in 2017. This was followed by corporate banking, consumer banking and commercial banking, increasing by 8.6%, 2.3% and 2.1%, resepctively in 2017. Deposits from Other Banks Deposits from other banks include demand deposits, saving accounts, interbank call money and time deposits. In 2017, CIMB Niaga recorded deposits from other banks amounting to Rp6.9 trillion, higher than 2016’s position of Rp4.6 trillion. Out of the total Rp6.9 trillion, the portion of demand deposits and saving accounts accounted for 28.9%, with interbank call money and time deposits accounting for 71.1%. Deposits from Other Banks Rp trillion Growth (%) 2015 2016 2017 Demand deposits and saving accounts 2.3 1.9 2.0 (17.4) 5.3 Interbank call money and time deposits 3.4 2.7 4.9 (20.6) 81.5 Total 5.7 4.6 6.9 (19.4) 51.1 2015-2016 2016-2017 Marketable Securities Issued and Subordinated Loans In 2017, the composition of marketable securities issued and subordinated loans was as follows: Marketable Securities Issued and Subordinated Loans Rp billion Growth (%) 2015 2016 2017 Marketable Securities Issued 4,477 3,238 5,404 Subordinated Loans 2,970 2,980 1,597 Securities Sold Under Repurchase Agreements 1,996 169 9,378 (91.5) 55.5x Total 9,443 6,387 16,379 (32.4) 156.4 186 2015-2016 (27.7) 0.3 2016-2017 66.9 (46.4) Annual Report CIMB NIAGA 2017
  187. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Marketable Securities Issued CIMB Niaga issued Shelf Registration Bond II Bank CIMB Niaga Phase II Year 2017 and Shelf Registration Bond II CIMB Niaga Phase III Year 2017 amounting to each Rp2 .0 trillion, respectively. Based on the issuance of these two bonds, the total securities issued in the end of 2017 amounted to Rp5.4 trillion, increasing by 66.9% compared to Rp3.2 trillion in 2016. The following is the summary of bonds issued by CIMB Niaga in 2017: Name Nominal Value (billion) Shelf Registration Bond II Bank CIMB Niaga Phase II Year 2017 Shelf Registration Bond II Bank CIMB Niaga Phase III Year 2017 Coupon Issuance Date Maturity Date Series A (Rp802.0 billion) 6.75% 23 August 2017 3 September 2018 Series B (Rp376.0 billion) 7.70% 23 August 2017 23 August 2020 Series C (Rp822.0 billion) 8.15% 23 August 2017 23 August 2022 Series A (Rp500.0 billion) 6.20% 2 November 2017 12 November 2018 Series B (Rp657.0 billion) 7.50% 2 November 2017 2 November 2020 Series C (Rp843.0 billion) 7.75% 2 November 2017 2 November 2022 Subordinated Loans Outstanding subordinated loans of CIMB Niaga in 2017 came from the issuance of Subordinated Bonds II Bank CIMB Niaga Year 2010 amounting to Rp1.6 trillion. In the previous year, outstanding subordinated loans reached Rp3.0 trillion, which included outstanding Subordinated Bonds I Bank CIMB Niaga Year 2010 amounting to Rp1.4 trillion, which had not yet been due in 2016. Securities Sold Under Repurchase Agreements As of 31 December 2017, securities sold under repurchase agreements were recorded at Rp9.4 trillion, increasing by 55.5 times, compared to 2016. This increase mostly came from securities sold under repurchase agreements with Bank Indonesia as counterparty with nominal value by Rp7.0 trillion. Borrowings In 2017, CIMB Niaga’s borrowings amounting to Rp5.8 trillion, increasing by 6.9% from Rp5.4 trillion in 2016. Borrowings Rp trillion Growth (%) 2015 2016 2017 IDR 4.1 4.4 2.6 Foreign Currency (USD) 2.6 1.0 3.2 (61.5) 220.0 Total 6.7 5.4 5.8 (18.7) 6.9 2015-2016 7.3 2016-2017 (40.9) In 2017, borrowings in Rupiah decreased by 40.9% compared to 2016, due to the payment of matured borrowing. The decrease mostly came from borrowings from PT Bank Pan Indonesia Tbk which decreased to Rp528.1 billion, compared to Rp1.4 trillion in 2016. Borrowings from PT Bank Mandiri (Persero) Tbk also decreased to Rp275.7 billion from Rp1.1 trillion in 2016. Annual Report CIMB NIAGA 2017 187
  188. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management FINANCIAL PERFORMANCE REVIEW As of 31 December 2017 , there was an increase in borrowings denominated in United States Dollars by 220.0% compared to the previous year. The largest increase were from Wachovia Bank, Bank of New York, NY and Standard Chartered Bank amounting to Rp1.2 trillion, Rp0.6 trillion and Rp0.5 trillion, respectively. Other Liabilities CIMB Niaga’s other liabilities in 2017 increased to Rp11.0 trillion, compared to Rp10.4 trillion in 2016. The increase was mainly due to accrued expenses amounting to Rp2.2 trillion as of 31 December 2017, which increased compared to Rp1.9 trillion in the previous year. Accrued expenses mainly consist of expenses from third parties, unearned commissions and deposit accrued interest. EQUITY CIMB Niaga has been able to steadily record an increase in equity over the last three years. CIMB Niaga’s equity increased by 8.0% to Rp37.0 trillion in 2017 compared to Rp34.2 trillion in 2016. The strengthening Equity Rp billion of CIMB Niaga’s equity was mainly supported by a 12.5% increase in retained earnings to Rp25.1 trillion, compared to Rp22.3 trillion in the previous year. Retained earnings contributed the largest portion to CIMB Niaga’s equity of 67.8% in 2017. Meanwhile, the total issued and paid-up capital and additional paid-in capital were unchanged, standing at Rp1.6 trillion and Rp7.0 trillion, respectively. On 25 July 2017, CIMB Niaga obtained approval from Financial Services Authority (OJK) through letter No.S63/PB.33/2017, to buy back CIMB Niaga’s shares (share buyback) to a maximum 2% of total shares issued and fully paid to be used as the Management Employee Stock Ownership Program (MESOP). The MESOP will be effective in 2018. As of 31 December 2017, the Bank performed a share buyback of 194,407,492 shares with an average price per share of Rp1,249.45 (full amount) with total buyback cost of Rp242.9 billion (including commission fees and taxes), recorded as treasury shock under CIMB Niaga’s equity. Growth (%) 2015 2016 2017 Share Capital 1,612 1,612 1,612 - - Additional paid-in capital 7,033 7,033 7,033 - - Treasury shares - - - na Revaluation of fixed assets - 3,078 3,078 na - 352 352 352 (601) (166) 26 General and Statutory Reserves Unrealized gain/(loss) on securities available for sale Other equity Retained earnings Non-controlling interest Total 188 (243) 2015-2016 (72.4) 2016-2017 115.7 21 21 21 - - 20,261 22,277 25,071 10.0 12.5 1 1 1 - - 28,679 34,208 36,951 19.3 8.0 Annual Report CIMB NIAGA 2017
  189. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report STATEMENTS OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME CIMB Niaga was able to record a net profit increase of 43 .0%, to Rp3.0 trillion in 2017. Better interest and sharia expenses management, better asset quality and sustainable operational cost efficiency were the driving factors for CIMB Niaga’s profitability improvement in 2017. Statements of Profit or Loss and Other Comprehensive Income Rp billion Interest and sharia income Interest and sharia expenses Net interest income - net Other fees and commissions Foreign exchange losses Others Total other operating income Gains from trading financial instruments Gains from sale of marketable securities 2015 2016 2017 Growth (%) 2015-2016 2016-2017 22,319 21,325 20,403 (4.5) (4.3) (10,933) (9,231) (8,000) (15.6) (13.3) 11,386 12,094 12,403 6.2 1,718 2,113 2,135 23.0 (395) (8) 2.6 1.0 (51) (98.0) 537.5 (26.8) 77.4 381 279 495 1,704 2,384 2,579 501 397 330 (20.8) (16.9) 56.3 39.9 8.2 145 284 444 95.9 Total income other than interest 2,350 3,065 3,353 30.4 9.4 Total income other than interest (BAU)* 2,350 2,789 3,353 18.7 20.2 (18.0) Impairment losses on financial and non-financial assets (5,361) (4,973) (4,080) (7.2) Personnel expenses (4,156) (3,647) (3,948) (12.2) General and administrative expenses (3,212) (3,513) (3,367) Promotion expenses 9.4 8.3 (4.2) (315) (273) (254) (13.3) (7.0) Total other operating expenses (7,683) (7,433) (7,569) (3.3) 1.8 Total other operating expenses (BAU)** (7,112) (7,433) (7,569) 4.5 1.8 2,753 4,107 98 48 2,851 Net operating income - net Non-operating income/(expenses) – net Income before income tax Income tax expense Net income Income before income tax (BAU) Income tax expense (BAU) Net income (BAU) Other comprehensive income after tax Total comprehensive income 692 (122) 570 (142) (769) 297.8 49.2 (180.3) (51.0) 4,155 400.2 45.7 (1,177) 441.5 53.1 2,978 386.4 43.0 428 2,082 1,141 2,575 4,155 125.7 61.4 (285) (700) (1,177) 145.6 68.1 856 1,875 2,978 119.0 58.8 (196) 3,446 8 232 5,528 2,986 (1,858.2) (99.8) 2,282.8 (46.0) * Excluding income from strategic partners **Excluding MSS personnel expense Interest and Sharia Income CIMB Niaga’s interest and sharia income came mostly from interest income from loans and earnings from sharia financing at 88.9% in 2017. This is an integral part of CIMB Niaga’s core business as a provider of financing in the Indonesian banking industry. In addition, interest income from marketable securities and government bonds accounted for 9.9% of total interest and sharia income in 2017. Annual Report CIMB NIAGA 2017 189
  190. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management FINANCIAL PERFORMANCE REVIEW Interest and Sharia Income Composition (%) 9.9% 1.0% 0.2% interest income was mainly due to the significant decline in loan interest rate. The average loan interest rate in Rupiah in 2017 was 10.9%, which was lower than the 11.7% in 2016. The average loan interest rate in foreign currencies also declined to 4.4% from 4.6% in the previous year. 88.9% Loans Marketable Securities and Government Bonds Placements with other banks and Bank Indonesia Others The decline in loan interest rates of CIMB Niaga was in line with the decline in the BI reference rate. During 2017, the 7 Day Reverse Repo Rate decreased two times, with a total decrease of 50 bps to 4.25% by the end of 2017. During 2016, the 12-month BI rate also decreased by 150 bps to 6.0% at the end of 2016. Cumulatively, total interest and sharia income reached Rp20.4 trillion in 2017, decreasing by 4.3% compared to Rp21.3 trillion in 2016. The decrease was mainly due to the decreased loan interest income by Rp949 billion, or 5.0% compared to 2016. The decline in loan Interest and Sharia Income Rp billion Loans Marketable Securities and Government Bonds Placements and demand deposits with other banks and Bank Indonesia 2016 2017 20,016 19,091 18,142 (4.6) (5.0) 2,037 2,009 2,027 (1.4) 0.9 265 222 199 (16.2) (10.4) 1 3 35 200.0 12x 22,319 21,325 20,403 Interest income from placements and demand deposits with BI and other banks also decreased by 10.4%, or to Rp199 billion compared to 2016, in line with the decline in the average rate of placement with BI and other banks by 1.1% to 4.0% in 2017. Interest and Sharia Expenses The 2017 interest and sharia expense decreased by Rp1.2 trillion, or 13.3% to Rp8.0 trillion, compared to Rp9.2 trillion in 2016. 190 Growth (%) 2015 Others Total Despite the fact that CIMB Niaga managed to increase its loans by 2.8% compared to the previous year, the decrease in the loan interest rate resulted in the decrease of interest and sharia income. 2015-2016 (4.5) 2016-2017 (4.3) The decline was mainly due to the decrease of interest expense on customer deposits-time deposits amounting to Rp1.1 trillion or 20.3%, compared to 2016. The decline in interest expense of time deposits was due to the average interest rate of Rupiah time deposits, which decreased by 1.1%, from 7.3% in 2016 to 6.2% in 2017. This decrease aligned with the decrease in reference rate - 7 Day Reverse Repo Rate. The interest expense from demand deposits increased by 10.7% or Rp0.1 trillion, in line with the increase of total demand deposits by 10.5% in 2017 compared to 2016. Annual Report CIMB NIAGA 2017
  191. Supporting Business Review Corporate Governance Report Interest and Sharia Expenses Rp billion Customer deposits : Corporate Social Responsibility Others Corporate Data 2015 2016 2017 Consolidated Financial Report Growth (%) 2015-2016 2016-2017 (16.8) (13.4) 9,467 7,876 6,819 Current accounts 960 970 1,074 1.0 10.7 Savings accounts 1,262 1,272 1,254 0.8 (1.4) Time deposits 7,245 5,634 4,491 (22.2) (20.3) Borrowings and subordinated bonds 929 890 636 (4.2) (28.5) Marketable securities issued 478 353 333 (26.2) (5.7) Others Total 59 112 212 10,933 9,231 8,000 Interest and Sharia Expenses Composition - Customer Deposits (%) 15.7% Time Deposits Savings Accounts Demand Deposits 18.4% 65.9% Meanwhile, the 2017 interest expense from borrowings and subordinated bonds decreased by Rp0.3 trillion or 28.5% to Rp0.6 trillion, compared to Rp0.9 trillion in the previous year. The decrease was mainly due to the repayment of borrowings of Subordinated Bonds I Bank CIMB Niaga Year 2010 amounting to Rp1.4 trillion and which matured in 2017. 89.8 89.3 (15.6) (13.3) Net Interest Income Better management of interest and sharia expenses, by diversifying low-cost funding sources from saving accounts and demand deposits had a positive impact on CIMB Niaga’s net interest income performance. Supported by lower interest and sharia expenses, CIMB Niaga recorded a net interest income of Rp12.4 trillion, increasing by 2.6% compared to Rp12.1 trillion in 2016. Supported by the average productive asset growth being higher than net interest income growth, resulted NIM of CIMB Niaga was relatively stable at 5.60% in 2017, compared to 5.64% in 2016. Net Interest Income (Rp billion) and NIM (%) 5.21 5.39 11,386 5.64 5.63 12,094 5.60 5.32 12,403 15 Annual Report CIMB NIAGA 2017 16 Net Interest Income NIM CIMB Niaga NIM Industry 17 191
  192. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management FINANCIAL PERFORMANCE REVIEW Non-Interest Income In addition to generating income from its core business activities , CIMB Niaga also recorded non-interest income. Non-interest income reached Rp3.4 trillion in 2017, increasing by 9.4%, compared to Rp3.1 trillion in 2016. This increase was mainly due to the higher other income by 77.4% or Rp0.2 trillion compared to the previous year. Other income mainly consisted of income from loan recovery. Non-Interest Income Rp billion Other fees and commissions Gains from sale of marketable securities and gains from trading financial instruments Foreign exchange losses Growth (%) 2015 2016 2017 1,718 2,113 2,135 23.0 1.0 646 681 774 5.4 13.7 (8) 2016-2017 (51) (98.0) 537.5 381 279 495 (26.8) 77.4 Total (Actual) 2,350 3,065 3,353 30.4 9.4 Total (BAU)* 2,350 2,789 3,353 18.7 20.2 Others (395) 2015-2016 * Excluding income from strategic partner Income from other fees and commissions accounted for the largest contribution to non-interest income amounting to 63.7%. The higher fees and commissions mostly come from bancassurance income increased by Rp65 billion or 8.4% compared to 2016. This was followed by the increase in income from merchant commissions by Rp24 billion or 342.9% compared to 2016, and the increase from custodial service fees increased by Rp21 billion or 52.5% compared to the previous year. Meanwhile, customer administration service fees decreased by Rp104 billion or 19.8% compared to 2016. Income from Other Fees and Commissions Rp billion Growth (%) 2015 2016 2017 Bancassurance income 486 770 835 58.4 Customer administration services fees 452 524 420 15.9 Credit card interchange fee income 243 291 304 19.8 4.5 Export-import documents fees 169 148 146 (12.4) (1.4) Agency fees 113 138 135 22.1 (2.2) Clearing and transfer services 130 106 106 (18.5) Custodial services fees 37 40 61 8.1 52.5 Annual fee 37 58 56 56.8 (3.4) Merchant commissions 13 7 31 (46.2) 342.9 Others 38 31 41 (18.4) 32.3 Total (actual) 1,718 2,113 2,135 23.0 1.0 Total (BAU)* 1,718 1,837 2,135 6.9 16.2 2015-2016 2016-2017 8.4 (19.8) - * Excluding income from strategic partner CIMB Niaga’s fee income ratio in 2017 was 21.3%, increasing by 0.9% compared to 20.4% in 2016. 192 Annual Report CIMB NIAGA 2017
  193. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Allowance for Impairment Losses (CKPN) on Financial and Non-Financial Assets Through periodic monitoring of asset quality to align with CIMB Niaga’s strategy to reduce low quality assets, and improving the accuracy of CKPN calculation, CIMB Niaga’s allowance for impairment losses in 2017 decreased by Rp893 billion or 18.0% to Rp4.1 trillion compared to Rp5.0 trillion in 2016. Others Corporate Data Consolidated Financial Report The loan loss coverage (LLC) ratio decreased by 10.5% to 107.2% compared to 117.7% in the previous year. Allowance for Impairment Losses (Rp billion) 4,973 5,361 4,080 11 399 117 5,350 The decrease in CKPN was mainly due to a lower allowance for loan impairment losses by Rp611 billion or 13.4%. Meanwhile, the allowance for impairment losses on others also decreased by Rp282 billion, mainly due to a decrease in foreclosed assets at CKPN. 4,574 15 Others Loans 3,963 17 16 Other Operating Expenses Other operating expenses increased by 1.8% to Rp7.6 trillion in 2017 compared to Rp7.4 trillion in the previous year. Despite the cumulative increase, CIMB Niaga was able to improve efficiency by reducing general and administrative expenses by 4.2% to Rp3.4 trillion in 2017. Promotion expenses also decreased by 7.0% to Rp254 billion in 2017. Other Operating Expenses Rp billion Growth (%) 2015 2016 2017 Personnel expenses 4,156 3,647 3,948 General and administrative expenses 3,212 3,513 3,367 315 273 254 (13.3) (7.0) Total (Actual) 7,683 7,433 7,569 (3.3) 1.8 Total (BAU) 7,112 7,433 7,569 4.5 1.8 Promotion expenses 2015-2016 (12.2) 9.4 2016-2017 8.3 (4.2) * Excluding MSS personnel expense The largest contribution for the decrease in general and administrative expenses were from efficiency in third party expenses amounting to Rp83 billion, efficiency in rental, depreciation and maintenance by Rp65 billion and efficiency in communication and transportation expenses by Rp62 billion. General and Administrative Expenses (Rp billion) 3,212 534 372 955 991 829 900 3,367 587 Others Communication and Transportation Rental, Depreciation and Maintenance Third Party Expenses Insurance Expenses Office Furniture 929 835 573 602 519 375 108 373 113 377 120 15 Annual Report CIMB NIAGA 2017 3,513 16 17 193
  194. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management FINANCIAL PERFORMANCE REVIEW Personnel expenses increased by Rp301 billion or 8 .3%, compared to the previous year due to increases in salaries, wages, and employee benefits, amounting to Rp188 billion, or 5.5% compared to 2016. Personnel Expenses (Rp billion) 4,156 90 167 3,647 169 193 74 175 3,899 3,948 3,398 Others Training and Education Salaries, Wages and Employee Benefits 3,586 571* 15 16 *) MSS 17 The cost to income ratio was well managed and decreased to 47.7% in 2017 compared to 48.5% in 2016. Aligned with strategy, CIMB Niaga will continue to maintain efficiency in all units, by increasing the effectiveness of spending to reduce operating expenses. Cost Efficiency Program For the purpose of ensuring the sustainability of the cost efficiency programs, CIMB Niaga has continued the smart spending culture initiative begun in 2014. Under the smart spending culture, CIMB Niaga focuses on costs that are classified as good costs and eliminates bad costs. CIMB Niaga has created and implemented cost efficiency innovations across all business lines. CIMB Niaga conducts prudent cost management at all times in Operating Expenses (Opex) and Capital Expenditure (Capex), whereby the management is monitored by the EFI Champion Team. This special team represents CIMB Niaga’s commitment to implementing responsible cost efficiency, the team performs assessments and provides input regarding the feasibility of expenses incurred in each business process within CIMB Niaga. The following chart is the organizational structure of the EFI Champion Team lead by the Director of Finance and Strategy. Chairman Director of Finance and Strategy Vice Chairman 1 Chief of Corporate Strategic Initiatives Vice Chairman 2 Head of Operational Accounting Strategy Head of Strategy Analyst/Admin Cost Team Champion Outsourcing Champion Rental Building Champion Promotion Champion Alternate Channel Champion Training Champion Repair Maintenance Champion Tax Champion CNAF Champion Travel & Transportation Champion Communication & IT Related Champion Office Stationary, Supplies & Utilities Champion Insurance Champion Operational & Employee Activities Champion Legal Professional Fee Champion Rental Car Operation Support and EDC Champion Personnel Expense Champion Operational Risk 194 Annual Report CIMB NIAGA 2017
  195. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Income Before Income Tax , Income Tax and Net Income Supported by an increase in net interest income of 2.6%, an increase in non-interest income of 9.4%, a decline in the allowance for impairment losses of 18.0%, and efficiency in operating expenses which increased only 1.8%, CIMB Niaga recorded income before income tax amounting to Rp4.2 trillion in 2017. This achievement was 45.7% higher than the 2016 position at Rp2.9 trillion. This supported an increase in CIMB Niaga’s net profit of 43.0% to Rp3.0 trillion in 2017. The consolidated income tax of CIMB Niaga increased by 53.1% to Rp1.2 trillion. A number of initiatives were undertaken to achieve operating cost efficiency in 2017, including a policy of using office drivers and online transportation, enhancing branch capacity and productivity, digital media promotions, meetings through conference calls, maximizing the use of owned building facilities for training venues, being selective in employee activity events, renewing contracts related to IT costs with more competitive pricing, and evaluating the costs of contractual employees. Non-Operating Income/(Expense) – Net CIMB Niaga’s non-operating income decreased by Rp50.0 billion or 51.0% to Rp48 billion compared to 2016. The decrease was mainly related to the 2016 gain from the divestment of associated ownership in CIMB Sun Life, amounting to Rp31 billion. In line with the increase in net income, earnings per share (EPS) also increased by Rp35.67 to Rp118.50 per share from Rp82.83 per share in 2016. Other Comprehensive Income Total comprehensive income decreased by Rp2.5 trillion to Rp3.0 trillion in 2017, lower than in 2016, as CIMB Niaga recorded higher comprehensive income in 2016, due to the revaluation of fixed assets amounting to Rp3.2 trillion. Comprehensive Income Rp billion 2015 Net Income 428 2016 Growth (%) 2017 2,082 2015-2016 2016-2017 386.4 43.0 2,978 Other Comprehensive Income (196) 3,446 8 Total Comprehensive Income 232 5,528 2,986 (1,858.2) (99.8) 2.282.8 (46.0) Segment Profitability The principal operations of CIMB Niaga are managed in Indonesia. CIMB Niaga’s business segments are mainly seperated in 6 (six) main geographical areas, except for subsidiary, which are Jakarta, West Java, Central Java, East Java, East Indonesia, and Sumatera. Information concerning the geographical segments is presented in the table below (Rp million): 2017 Descriptions Net interest income Jakarta West Java Central Java East Java East Indonesia Sumatera Subsidiary Total 8.614.214 644.167 618.677 815.364 361.587 783.415 565.955 12.403.379 (2.813.333) (167.605) (188.170) (273.803) (220.245) (203.264) (213.385) (4.079.805) 1.822.884 73.982 50.039 64.634 29.334 65.458 28.486 2.134.817 968.659 20.755 14.195 16.357 13.258 19.643 164.764 1.217.631 Impairment losses on financial and non-financial assets - net Other fees and commissions Other operating income Personnel expenses (2.900.494) (169.325) (172.693) (190.996) (106.373) (187.030) (221.301) (3.948.212) General and administrative (2.709.441) (131.871) (107.608) (141.997) (77.283) (141.690) (133.378) (3.443.268) Annual Report CIMB NIAGA 2017 195
  196. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management FINANCIAL PERFORMANCE REVIEW 2017 Descriptions Other operating expenses Net operating income /(expense) Jakarta (72.553) 2.909.936 West Java Central Java (279) 269.824 (172) 214.268 East Indonesia East Java (5.499) 284.060 Sumatera Subsidiary (47) (38.133) (61.288) 231 298.399 129.853 Total (177.971) 4.106.571 Non-operating (expense)/ income - net Income/(loss) before income tax Income tax expense Net income/(loss) Non-controlling interest 20.960 24 335 6.549 2.930.896 269.848 214.603 290.609 (1.117.198) 1.813.698 (159) 72 738 20.002 48.449 299.137 149.855 4.155.020 - - - - - (60.084) (1.177.282) 269.848 214.603 290.609 72 299.137 89.771 2.977.738 - - - - - - (63) (63) Total asset 187.333.422 16.786.110 13.473.190 21.191.211 7.138.907 16.420.914 3.961.691 266.305.445 Total liabilities 151.599.937 16.892.788 12.948.364 21.606.279 7.533.524 16.045.904 2.727.653 229.354.449 2016 Descriptions Net interest income Jakarta West Java Central Java East Indonesia East Java Sumatera Subsidiary Total 8.149.420 665.846 648.166 853.974 348.640 766.616 661.368 12.094.030 (3.066.111) (136.195) (423.654) (402.962) (216.301) (322.925) (404.803) (4.972.951) 1.673.007 84.486 53.393 71.345 31.590 64.914 134.625 2.113.360 789.115 18.479 16.808 3.803 8.429 9.102 106.318 Impairment losses on financial and non-financial assets - net Other fees and commissions Other operating income 952.054 Personnel expenses (2.564.851) (172.667) (164.989) (194.521) (110.665) (181.540) (257.686) (3.646.919) General and administrative (2.910.986) (151.556) (117.041) (156.916) (89.380) (157.742) (175.914) (3.759.535) (12.902) (9.037) (427) (309) (639) (345) (2.786) Other operating expenses Net operating income/(expense) 2.056.692 299.356 12.256 174.414 (28.326) 178.080 61.122 (26.445) 2.753.594 Non-operating (expense)/ income - net Income/(loss) before income tax Income tax expense Net income/(loss) Non-controlling interest 47.008 748 1.074 226 369 786 46.903 97.114 2.103.700 300.104 13.330 174.640 (27.957) 178.866 108.025 2.850.708 (703.456) 1.400.244 - - - 300.104 13.330 174.640 (30) (27.957) 178.866 (65.535) 42.490 (768.991) 2.081.717 - - - - - - Total asset 163.690.670 16.733.490 11.910.598 19.505.068 6.932.249 16.082.738 6.716.915 241.571.728 (30) Total liabilities 132.549.885 16.745.891 11.392.604 18.839.291 6.947.097 15.318.611 5.570.727 207.364.106 2015 Descriptions Net interest income Jakarta West Java Central Java East Indonesia East Java Sumatera Subsidiary Total 7.627.870 654.423 638.072 873.095 367.751 796.238 428.911 11.386.360 (4.052.683) (306.262) (260.095) (174.481) (101.267) (286.658) (162.011) (5.343.457) 1.197.047 80.580 64.121 79.324 34.301 67.105 195.618 1.718.096 371.187 21.398 22.502 9.208 6.564 14.037 168.726 Impairment losses on financial and non-financial assets - net Other fees and commissions Other operating income 613.622 Personnel expenses (3.044.995) (179.145) (168.611) (195.488) (100.825) (181.875) (285.157) (4.156.096) General and administrative (2.608.259) (154.721) (120.831) (156.182) (94.197) (166.909) (219.507) (3.520.606) (1.957) (692) (176) (2.853) (141) (437) Other operating expenses Net operating income/(expense) (511.790) 115.581 174.982 432.623 112.186 241.501 - (6.256) 126.580 691.663 (54.898) (121.659) Non-operating (expense)/ income - net 1.733 357 206 175 Income/(loss) before income tax (580.800) 115.359 176.715 432.980 112.392 241.676 71.682 570.004 Income tax expense (172.470) - - - - - 30.351 (142.119) Net income/(loss) (753.270) 115.359 176.715 432.980 112.392 241.676 102.033 427.885 (54) - - - - - - Non-controlling interest (69.010) (222) (54) Total asset 160.336.525 16.209.177 12.005.726 19.849.852 7.339.280 15.380.702 7.727.990 238.849.252 Total liabilities 133.739.942 16.404.241 11.711.427 19.456.601 7.271.574 14.963.059 6.623.021 210.169.865 196 Annual Report CIMB NIAGA 2017
  197. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report DU PONT ANALYSIS Asset Turnover Net Operating Income 0 .87% 1.15% 15 16 15 17 5.82% 16 15 17 Other Operating Income 8.34% + 6.46% 16 16 17 - 1.50% X 17 Operating Expenses 3.26% 3.09% 6.46% 1.50% 6.20% 0.29% 0.18% 15 6.31% 1.62% 1.17% ROE SF Operating Income 2.98% 8.34% Leverage 15 16 15 17 16 17 8.26% 7.11% 15 16 Allowance for impairment losses Taxes 7.45% - 17 - 0.46% 2.27% 2.07% 1,61% 0.32% 0.06% 15 16 15 17 16 17 STATEMENTS OF CASH FLOW Cash Flow Rp billion Net Cash Flow from Operating Activities 2015 2016 2017 Growth (%) 2015-2016 2016-2017 6,755 3,291 20,129 Net Cash Flow for Investing Activities (2,271) (4,071) (8,946) Net Cash Flow for Financing Activities (4,862) (3,734) (88) (23.2) (97.6) (201) 155 (120.1) (177.1) (855.6) (338.6) Exchange Rate Differences on Cash and Cash Equivalent Increase/(Decrease) in Cash and Cash Equivalent 1,002 (4,715) 11,250 Cash and Cash Equivalent at Beginning of Year 27,507 624 28,131 23,416 Cash and Cash Equivalent at End of Year 28,131 23,416 34,666 (51.3) 511.6 79.3 119.7 2.3 (16.8) (16.8) 48.0 Cash Flow from Operating Activities CIMB Niaga recorded a source of cash from its operating activities in 2017 amounting to Rp20.1 trillion, or an increase of Rp16.8 trillion compared to the previous year’s position by Rp3.3 trillion. Cash flow from operating activities in 2017 mainly came from CIMB Niaga’s profit before changes in assets and liabilities, amounting to Rp9.7 trillion, an increase in securities sold under repurchase agreements amounting to Rp9.2 trillion and net increase of customer deposits amounting to Rp8.7 trillion. The cash inflow was used to support loan distribution activities amounting to Rp12.6 trillion. Annual Report CIMB NIAGA 2017 197
  198. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management FINANCIAL PERFORMANCE REVIEW Cash Flow for Investing Activities Cash was used for investment activities in 2017 amounting to Rp8 .9 trillion, mainly for purchase of marketable securities and government bonds- availablefor-sale and held-to-maturity amounting to Rp8.5 trillion, or higher than 2016’s position amounting to Rp3.3 trillion. activities mainly came from securities issued of Rp4.0 trillion and additional borrowings amounting to Rp3.4 trillion in 2017. FINANCIAL RATIOS CIMB Niaga conducts its business activities in conformity with prudent principles and adheres to Bank Indonesia and Financial Services Authority regulations, as well as to other prevailing regulations, and constantly conducts good corporate governance. CIMB Niaga is able to meet the financial ratios set by the regulators in the midst of ongoing loan expansion efforts to capitalize on the momentum of the slightly accellerating economic growth. Cash Flow for Financing Activities Cash was used for financing activities during 2017 amounting to Rp88 billion, mainly due to interest payments of Rp3.4 trillion, repayment of subordinated loans maturing in 2017 amounting to Rp1.4 trillion and payment of interest on bonds and securities issued amounting to Rp2.4 trillion. Cash inflow from financing CIMB Niaga Ratio Industry Net Interest Margin Ratio - % Net Interest Margin of CIMB Niaga relatively stable at 5.6%. In the midst of declining NIM’s trend on industry, CIMB Niaga managed to stabilize Bank’s NIM ratio which supported by increment on CASA portion 5.64 5.39 5.63 5.21 15 5.60 The Net Interest Margin of the banking industry decreased by 31 bps to 5.32%, compared to the same period in the previous year. 5.32 16 17 CASA Ratio - % CASA Ratio increased 171 bps in 2017 to 52.55%, compared to 50.84% in 2016. The increase was supported by Demand Deposits and Saving Accounts increasing by 10.5% and 6.4%, respectively. 54.01 46.81 15 55.33 55.48 50.84 52.55 16 CASA Ratio in the banking industry increased by 15 bps to 55.48% in 2017. 17 Non Performing Loan - Gross Ratio- % NPL Ratio of CIMB Niaga decreased to 3.75%, compared to 3.89% in 2016. The decrease was supported by CIMB Niaga’s ability to improve the quality of loans provided to its customers. 3.74 2.49 15 198 3.89 3.75 2.93 2.59 16 NPL Ratio of the banking industry decreased by 34 bps in 2017 to 2.59% compared to 2.93% in 2016. 17 Annual Report CIMB NIAGA 2017
  199. Supporting Business Review Corporate Governance Report Corporate Social Responsibility CIMB Niaga Others Corporate Data Ratio Consolidated Financial Report Industry Loan to Deposit Ratio - % Loan to Deposit Ratio in 2017 decreased by 2.14% to 96.24% compared to 2016. 97.98 98.38 96.24 92.11 90.70 90.04 15 16 Loan to Deposit Ratio in the banking industry decreased by 66 bps to 90.04%. 17 Capital Adequacy Ratio - % Capital Adequacy Ratio of CIMB Niaga increased by 64 bps to 18.60% in 2017, showing that CIMB Niaga maintained capital reserves greater than the minimum CAR required by regulators. 21.39 16.28 15 22.93 23.18 17.96 18.60 16 Capital Adequacy Ratio in the banking industry increased by 25 bps to 23.18% in 2017 compared to 22.93% in 2016. 17 Return on Assets Ratio- % Return on Assets Ratio of CIMB Niaga increased by 50 bps to 1.70% in 2017 compared to 2016. This is in line with the increase in CIMB Niaga’s profit. 2.45 2.32 Return on Assets Ratio in the banking industry increased by 22 bps to 2.45%, compared to 2.23% in 2016. 2.23 0.24 15 1.20 16 1.70 17 Industry CIMB Niaga In addition to those financial ratios, CIMB Niaga continues to comply with the ratios required by regulators. In 2015, 2016 and 2017, CIMB Niaga did not breach or exceed the stipulated Legal Lending Limit (LLL) requirements to related parties or non-related parties. Related statutory reserves and NOP are depicted in the following table: Compliance Description (%) 2015 2016 2017 a. GWM in Rupiah 7.74 6.76 6.74 b. GWM in Foreign Currencies 8.18 8.33 8.05 Net Open Position (NOP) in total 1.19 1.66 0.80 Statutory Reserve Requirement (GWM) Annual Report CIMB NIAGA 2017 199
  200. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management FINANCIAL PERFORMANCE REVIEW COMMITMENTS AND CONTINGENCIES Total commitments and contingencies with loan risk as of 31 December 2017 amounted to Rp66 .0 trillion, decreasing by Rp2.1 trillion, or 3.2% compared to Rp68.1 trillion in 2016. The decrease mainly came from a decrease in commitment liabilities in unused loan facilities amounting to Rp5.5 trillion, reaching Rp59.0 trillion as of 31 December 2017. Contingencies receivables decreased by 58.8% to Rp1.0 trillion compared to 2016, which was due to the decrease in guarantees received. Commitments and Contingencies Rp billion Growth (%) 2015 2016 2017 Commitment Liabilities (59,883) (66,569) (62,086) 11.2 (6.7) Unused loan facility (58,374) (64,427) (58,955) 10.4 (8.5) (1,444) (2,072) (2,714) 43.5 31.0 (65) (70) (417) 7.7 495.7 (59,883) (66,569) (62,086) 11.2 (6.7) 10.7 (58.8) (0.4) (98.5) 2015-2016 2016-2017 COMMITMENTS Outstanding irrevocable letters of credit Others Commitments – net CONTINGENCIES Contingencies Receivables 2,261 2,503 1,031 Guarantees received 1,183 1,178 18 Interest receivables on non-performing assets 1,078 1,325 1,013 22.9 (23.5) Contingencies Payables (4,007) (4,029) (4,892) 0.5 21.4 Guarantees issued (4,007) (4,029) (4,892) 0.5 21.4 Contingencies – net Commitments and Contingencies – Net (1,746) (1,526) (3,861) (12.6) (61,629) (68,095) (65,947) 10.5 153.0 (3.2) SUBSIDIARY PERFORMANCE CIMB Niaga Auto Finance (CNAF) is a subsidiary of CIMB Niaga engaged in the financing of four wheelers and two wheelers. In order to improve synergy in the CIMB Niaga Group, CNAF was effectively merged with PT Kencana Internusa Artha Finance (KITAF) in 2016, in which CNAF is the surviving entity. The percentage of CIMB Niaga’s share ownership in CNAF became 99.9%. The remaining ownership of CNAF shares is owned by PT Niaga Manajemen Citra at 0.1%. In 2017, CNAF recorded profit before tax amounting to Rp0.19 trillion, growing by 58.3%, compared to Rp0.12 trillion in 2016. CNAF disbursed new financing loans of Rp1.5 trillion, decreasing by 71.7% from Rp5.3 trillion in 2016. The decline in loan disbursement was due to CNAF’s strategy to more selective in financing to get good loan quality. NPLs were recorded at 1.1% in 2017 while in 2016 they were1.6%. 200 Annual Report CIMB NIAGA 2017
  201. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data New Financing (Rp trillion) Consolidated Financial Report Loan (Rp trillion) 9.1 16.2 13.0 5.3 7.8 1.5 15 16 17 15 16 17 In 2017, CNAF maintained a total of 49 branches with a total of 1,065 employees. CNAF has established a close cooperation with CIMB Niaga. This partnership further provides customers with various CIMB Niaga facilities such as ATMs, internet banking, and full use of the CIMB Niaga network as a customer payment channel. In addition, CNAF has worked with 923 dealers through Indonesia. According to PT Fitch Ratings Indonesia, CNAF is ranked “AA + idn”. Prime Lending Rate The Financial Services Authority (OJK) requires all Commercial Banks engaged in conventional business activities in Indonesia to report and publish the Prime Lending Rate (SBDK) in Rupiah currency. This is in accordance with the enactment of OJK Regulation No. 32/POJK.03/2016 concerning Transparency and Publication of Bank Reports. The provisions of such regulation regarding transparency of bank product information and the use of customers’ personal data are regulated in further detail based on OJK Circular Letter No. 34/SEOJK.03/2017 in line with the transfer of functions, duties and authority of regulating and supervising financial services from Bank Indonesia to the OJK. Annual Report CIMB NIAGA 2017 Implementation of information transparency requirements regarding Prime Lending Rate is one of the efforts to provide clarity to customers and to enable customers to weigh the benefits, costs and credit risk offered by CIMB Niaga. In addition, Prime Lending Rate seeks to improve good governance and encourage healthy competition in the banking industry, by building better market discipline. The Prime Lending Rate is also required as an indicator of applicable loan interest rates for customers applying for loans at CIMB Niaga. In such case, CIMB Niaga always renews its Prime Lending Rate in accordance with the changes in the BI rate. In general, the Prime Lending Rate is calculated based on 3 (three) components, 201
  202. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management PRIME LENDING RATES namely Cost of Funds for Credit (HPDK) arising from activities in customer deposits, operating expenses incurred for customer deposits, and lending activities and profit margin established by the Bank in lending activities. The calculation of Prime Lending Rates per segment does not take into account the risk premium of the debtor, which depends on the assessment of the risk of each debtor. Accordingly the level of the loan interest rate charged to any particular debtor is not necessarily similar to Prime Lending Rate. CIMB Niaga is required to report the calculation of Prime Lending Rates to the OJK on a monthly basis and periodically publish it in media with a wider scope. The calculations of Prime Lending Rates refer to corporate loans, retail loans, micro loans, and consumer loans (mortgages and non-mortgages). Bank Indonesia, however, allows the categorization of corporate loans, retail loans and consumer loans (mortgages and non-mortgages) to be made based on internal criteria adopted by banks. In determining the Prime Lending Rate, CIMB Niaga, at all times, also considers the development of regulatory requirements. OJK Letter No. S-18/D.03/2016, regarding Maximum Interest Rate, provides guidance to gradually lower loan interest rates to single digit. Pertaining to this, CIMB Niaga is committed to lowering its loan interest rate on a gradual basis, as evidenced in the comparison of Prime Lending Rate in 2017 with the average Prime Lending Rate in 2016 as follows: Prime Lending Rate Based on Loan Segment End of Period Loan Corporate Retail Consumer Loan Micro Mortgage Non-mortgage 2017 31 March 2017 10.00% 10.75% 18.25% 10.00% 30 June 2017 10.00% 10.75% 18.25% 10.00% 10.25% 10.25% 30 September 2017 9.75% 10.50% 18.00% 9.75% 10.00% 31 December 2017 9.50% 10.15% n.a 9.50% 9.75% 10.50% 11.25% 18.75% 10.50% 10.50% Average in 2016 2016 CIMB Niaga categorizes loans for the calculation of Prime Lending Rate based on the following business segments: 1. Corporate loans, which are granted to Corporate Banking customers and High-End customers; 2. Retail loans, which include loans provided to the Small-Medium Enterprise customers and Special Lending; 3. Micro loans; 4. Consumer loans of mortgages and non-mortgages (Auto Loan), excluding loan disbursement through credit card and unsecured loan (KTA). The information regarding applicable Prime Lending Rate can be accessed at any time in the publications at each office and/or on the CIMB Niaga website (www.cimbniaga.com). 202 Annual Report CIMB NIAGA 2017
  203. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Electronic Network Transactions ATM and MFD By the end of 2017 , the number of CIMB Niaga ATM and MFD machines totalled 4,674 units with the network throughout Indonesia. The number of ATM and MFD machines increased by 620 units compared to the 4,054 units in 2016. In line with the additional number of devices, the number of transactions on ATM machines increased by 21.1 million transactions, or by 24.0% to 109.1 million transactions in 2017, compared to 88.0 million transactions in 2016. In total, the volume of ATM transactions also increased to Rp88.2 trillion compared to Rp83.4 trillion in the previous year. ATM and MFD 109.1 88.0 83.5 83.0 15 CDM In 2017, CIMB Niaga’s CDM machines totalled 774 units, an increase of 5 units compared to the 769 units in 2016. CDM 16.4 15.6 14.7 Total ATM and MFD (thousand); Total Transactions (million) Volume of Transactions (Rp trillion) 4.7 4.1 3.6 88.2 83.4 16 17 The number of transactions through CDM machines increased by 1.6 million transactions or by 16.7% to 11.3 million transactions compared to 9.7 million transactions in 2016. The growing number of transactions also drove up the volume of transactions, increasing by Rp840 billion or 5.4% to Rp16.4 trillion during 2017. The growing number of CDM machine transactions was due to the increase in remittance transactions. 11.3 9.7 8.3 Total CDM (thousand) Total Transactions (million) Volume of Transactions (Rp trillion) 0.8 0.7 15 0.8 16 Annual Report CIMB NIAGA 2017 17 203
  204. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management ELECTRONIC NETWORK TRANSACTIONS CIMB CLICKS CIMB Clicks , as a leading Internet banking service offered by CIMB Niaga, maintained 1.5 million users by the end of 2017. This number increased by 20.8% compared to 1.2 million users in 2016. The number of transactions made by customers through CIMB Clicks reached 15.8 million in 2017, an increase of 13.6% over the previous year. The increase in the number of transactions resulted in CIMB Clicks recording a volume transaction of Rp99.1 trillion, revealing a growth of 22.2% in 2017. CIMB Clicks 99.1 81.1 66.7 15.8 13.9 12.3 1.5 1.2 1.0 15 16 Total Users (million) Total Transactions (million) Volume of Transactions (Rp trillion) 17 Outstanding features of CIMB Clicks include ease in paying various bills, online shopping payments and an online service of opening savings accounts. Since 2016, CIMB Clicks has implemented a Virtual Card Number (VCN) which allows easy online transactions on all websites that accept MasterCard payments to enable customers to shop in comfort and at ease by using their saving accounts, without having to possess their own credit card account. VCN provides a simple means for customers not having a credit card to make purchases through online merchants who might otherwise require settlement only through a credit card transaction. GO MOBILE Another outstanding service featured by CIMB Niaga is Go Mobile. During 2017, CIMB Niaga’s mobile banking service maintained 1.8 million users, an increase of 31.5%, compared to 1.4 million users in 2016. Go Mobile 13.8 13.2 9.8 10.6 9.8 4.4 1.8 1.4 1.0 15 Total Users (million) Total Transactions (million) Volume of Transactions (Rp trillion) 16 17 The number of transactions made by customers through Go Mobile reached 10.6 million in 2017, increasing by 9.0% compared to 2016. The increase in the number of transactions was in line with the growing volume of transactions total of Rp13.8 trillion, increasing by 4.4% in 2017. 204 Annual Report CIMB NIAGA 2017
  205. Supporting Business Review Corporate Governance Report Corporate Social Responsibility REKENING PONSEL Rekening Ponsel maintained 3 .1 million users, a significant increase of 41.9%, in 2017, compared to 2.2 million users in 2016. Others Corporate Data BIZCHANNEL@CIMB During 2017, BizChannel@CIMB successfully maintained 30,194 users, or increased by 10.8% compared to 27,256 users in the previous year. Rekening Ponsel 28.6 69.3 13.8 11.5 4,4 5.9 2.8 1.4 15 2.9 2.2 Consolidated Financial Report 3.1 16 Total Users (million) Total Transactions (million) Volume of Transactions (Rp trillion) 17 Furthermore, the number of transactions made by customers through Rekening Ponsel reached 28.6 million transactions in 2017, increasing by 107.4% compared to the previous year. The increase in the number of transactions was in line with the growing volume of transactions by 108.0% to Rp5.9 trillion in 2017. Annual Report CIMB NIAGA 2017 25.1 21.5 15 32.4 27.3 16 30.2 17 Total Transactions (million) Total Users (thousand) The number of transactions made by customers through BizChannel@CIMB reached 69.3 million in 2017, increasing significantly by 113.5% compared to 2016. 205
  206. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Other Material Financial Information SOLVABILITY CIMB Niaga maintains a good level of liquidity and solvability . This is represented by CIMB Niaga’s ability to meet all of its maturing liabilities in a timely manner, both payment of principal and interest. The ability of CIMB Niaga to meet both short-term and long term liabilities is also excellent as reflected in the reports from external rating agencies. Pefindo gave a corporate rating of idAAA, while Fitch gave National Ratings for Long Term and Short Term of AAA and F1 + respectively, while for Foreign Currency Ratings, the Bank received a BBB and F3 for Long Term and Short Term respectively. In addition, Moody’s gave a rating of Baa3/P-3 for Bank Deposits and Baa3 and Ba2, for the Baseline Credit Assessment and Adjusted Baseline Credit Assessment respectively. The outlook given by the three agencies above is stable. Liquidity and asset-liability management is under the coordination of the Asset Liability Committee (ALCO), which holds monthly meetings involving business units, treasury, credit, and other relevant units to ensure the achievement of the expected liquidity position. CIMB Niaga’s liquidity management focuses on the adjustment of cash inflow and outflow. The gap in cash flow is anticipated by managing first tier liquid assets such as maintenance of reserve requirements and highly liquid short term marketable securities. Second tier liquid assets are managed through short term placements with other banks, available-forsale marketable securities, and government bonds. Liquidity management is also performed by managing the structure of funding by implementing proper thresholds on depositor concentrations. A detailed discussion of CIMB Niaga’s liquidity management has been summarized under the subcharter of liquidity risk management. 206 Stress Testing CIMB Niaga conducts stress testing to evaluate capital resilience in facing plausible extreme external events and identifies steps to be taken to mitigate risk and protect capital. In relation to liquidity risk, stress tests can be used to assess the adequacy of liquidity and current reserves also procedure on prevention and recovery which stated within document Contingency Funding Plan. The scope of the implementation of stress testing covers the main types of risks: credit risk (including the wholesale and retail segments), market risk and liquidity risk. Stress tests are based on simulations of three scenarios - baseline, moderate and worst, with reference to current conditions, as well as global historical issues and domestic issues for instance; the slow down on economic growth in several developed countries and China, overseas geopolitical conditions and their impact on the Indonesian economy such as the decline of exports, Rupiah depreciation, inflation and interest rate hikes. In 2017, CIMB Niaga conducted 2 (two) stress tests, in which both stress tests show that the Capital Adequacy Ratio (CAR) of CIMB Niaga remains above regulatory requirements (taking into account the capital buffer), which is 11.65%, 12.53% and 13.4% respectively in 2017, 2018 and 2019. Changes in the CAR are mainly due to the increase in provisions in line with the projected decline of asset quality. The projected decline of asset quality also resulted in a projected increase in the Risk Weighted Asset (RWA) Credit of CIMB Niaga. The results of the liquidity stress test show that CIMB Niaga can survive for the next 1 month (30 days) from an increase of cash outflows especially from deposits and a decrease of cash inflows in stressful situations Annual Report CIMB NIAGA 2017
  207. Supporting Business Review Corporate Governance Report Corporate Social Responsibility without external liquidity assistance by liquidating instruments such as : Placements with Bank Indonesia (FASBI/SBI/Time Deposit), government bonds and corporate bonds with reference to PBI No. 19/03/ DPNP/2017 and PADG No. 10/06/PADG/2017 regarding the Provision of Short Term Liquidity Credit Facility (PLJP). Contingency Funding Plan When the Bank enters a liquidity crisis condition, an operational guideline is needed to manage the crisis; thus, it is expected that with this particular handling, the crisis can be well handled and regain public trust on the Bank. This is regulated in the Contingency Funding Plan procedure. In SEBI 11/25/PBI/2009 followed with SEOJK No. 34/SEOJK.03/2016 and POJK No. 18/POJK.03/2016 regarding Risk Management Implementation for Commercial Banks stated that active involvement and role from management to Board of Commissioners is required. Therefore, the procedure of the Contingency Funding Plan has been approved by the both the Board of Directors and Board of Commissioners. In this procedure, there are 15 Early Warning Signal Indicators have been established, which include Internal, Macro and Market Liquidity indicators as defined and assumed to be early signals of a liquidity crisis. These indicators have thresholds that should not be breached. These indicators are monitored daily by the Risk Management Unit and reported to management. If there is any breach on an indicator threshold, then the Funding Crisis Declaration Assessment (FCDA) Team will assess whether the situation will lead to a crisis or not. The FCDA Team might conduct discussions even though at that time tno indicator had been breached. Information that is deemed to lead to crisis conditions can be used as a basis to discuss assessments on liquidity conditions. The results of assessments will be validated by the ALCO Chairman. If the Chairman of ALCO agrees with the FCDA team’s assessments that the breaches of the indicators will lead into a crisis condition, then the result will be Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report submitted to the President Director for final decision making. If the President Director considers the results of the analysis valid, the President Director will declare that the Bank is entering a liquidity crisis and the Bank will activate a crisis management committee called the Funding Crisis Management Team (FCMT). This committee consists of all Directors and several support units and is chaired directly by the President Director. Under these conditions of crisis, the FCMT is given the authority to undertake crisis management measures, both in terms of operational and communications to improve existing conditions. The Bank has conducted several trial crisis simulations in accordance with the guidance provided by the Contingency Funding Plan, by simulating FCMT responses in handling crisis conditions and the implementation of a FCMT decision to cope with the crisis by the relevant work units. The latest trial crisis simulations, or CFP Testing, were conducted on December 13, 2016 and December 19, 2017. This CFP testing tested the readiness of all related units including the Board of Directors if CIMB Niaga had actually entered a crisis condition. The results to be achieved from the CFP testing, among others, include the readiness of existing units and the implementation by the work unit on the decision steps established by the FCMT. In addition, this CFP testing aimed to evaluate if there are any shortcomings within the existing procedures. Those areas deemed to be fixed or added to shall be included in the annual review of procedures, as also specified in the regulatory provisions. In accordance with procedures, the CFP testing will be conducted once a year, in which the scope of involvement of units within the Bank will be extended. CIMB Niaga has conducted 5 (five) CFP tests since 2013 with average attendance of the Board of Directors above 80%. In addition, CIMB Niaga also has an extensive Recovery Plan Document (RPD) covering the following areas: Liquidity, Capital, Profitability and Asset Quality as approved by Management and Shareholders and as 207
  208. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management OTHER MATERIAL FINANCIAL INFORMATION required by regulators at the end of 2017 . In the RPD, steps and processes are conducted more widely than the Contingency Funding Plan, considering the areas to be maintained are not only liquidity. Similar to other documents, this RPD will also be reviewed annually to update and keep it in line with existing conditions. The review covers the steps that CIMB Niaga will take to improve conditions related to 4 aspects. In those 4 aspects monitored, there are monitoring indicators to be continuously used as triggers for activating the corrective measures and guidance’s as stated in the RDP. Other Debt Paying Ratios Liquidity Ratio The liquidity ratio is used to identify CIMB Niaga’s ability to meet its liabilities. In this context, the method to measure healthy liquidity is loan to deposit ratio (LDR). As of December 31, 2017, CIMB Niaga recorded consolidated LDR at 96.24%. The consolidated Liquidity Coverage Ratio (LCR), at 129.40%, exceeded the required minimum limit by regulators of 80% and internal CIMB Niaga of 90% in 2017. Accordingly, the Bank has met the criteria of “highly liquid” in terms of a minimum composite Bank Soundness Level. Solvability Ratio A method adopted in measuring solvability is the capital ratio. On a consolidated basis, Bank CIMB Niaga’s CAR in 2017 was 18.60%, increasing from 17.96% in 2016. CIMB Niaga still maintains capital reserves greater than the minimum CAR ratio required by the regulator at 11.65%. COLLECTIBILITY OF LOANS CIMB Niaga classifies the collectability of loans provided to customers based on the number of outstanding days. The loan aging analysis - gross for 2015-2017 are as follows: Collectibility of Loans Rp billion Non past due 2015 2016 2017 172,113 161,829 165,588 Past due 1-90 days 6,791 5,133 3,583 Past due >90 days 8,917 9,443 9,439 Total overdue loans 15,708 14,576 13,022 Total loans - gross * 177,537 180,164 185,135 8.8% 8.1% 7.0% % Total overdue loans - gross * including leasing and consumer financing In 2017, total overdue loans-gross of CIMB Niaga amounted to Rp13.0 trillion, or 7.0% of total credit. The figure has improved, compared to 8.1% in 2016. CIMB Niaga continuously strives in controlling the loan risk; thus the collectability of loans can be maintained. Meanwhile, loan quality can also be identified from the NPL ratio, whereby the NPL ratio of CIMB Niaga in 2015, 2016 and 2017 were at 3.74%, 3.89%, and 3.75% respectively. The NPL ratio of CIMB Niaga decreased in 2017 compared to 2016. CIMB Niaga continues to mitigate credit risk. CIMB Niaga also prepared adequate provisions to manage potential losses from non-performing loans. Through its Asset Quality Committee, CIMB Niaga has determined the amount of the provision to be made in accordance with business needs and prevailing regulations. 208 Annual Report CIMB NIAGA 2017
  209. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report CAPITAL STRUCTURE Detail of Capital Structure CIMB Niaga is committed to managing a strong and healthy capital structure , so as to provide maximum support for sustainable business growth. As of the end of 2017, CIMB Niaga’s liabilities and equity to finance its assets were 86.1% and 13.9%, respectively. According to OJK regulation No.11/POJK.03/2016 dated January 29, 2016 concerning the Minimum Capital Adequacy for Commercial Banks, the capital consists of: 1. Core capital (Tier 1) which includes common equity and additional common equity 2. Supplementary capital (Tier 2) The components of CIMB Niaga capital is still dominated by core capital. In addition to core capital, CIMB Niaga has issued capital instruments in the form of subordinated bonds. A description related to capital structure is available under the section on Risk Management and - Capital Structure in this Annual Report. Capital Adequacy Ratio (CAR) Rp billion Core Capital Supplementary Capital Changes (%) 2015 2016 2017 27,614 32,421 35,527 17.4 2015-2016 2016-2017 9.6 4,039 2,992 2,649 (25.9) 31,653 35,413 38,176 11.9 7.8 Total RWA with Credit and Operational Risks 192,573 195,595 202,539 1.6 3.6 Total RWA with Credit, Market and Operational Risks 194,398 197,207 205,239 1.4 4.1 Capital Adequacy Ratio for Credit and Operational Risks 16.44% 18.11% 18.85% 1.67 0.74 Capital Adequacy Ratio for Credit, Market and Operational Risks 16.28% 17.96% 18.60% 1.68 0.64 Capital Adequacy Ratio -Tier 1 14.20% 16.44% 17.31% 2.24 0.87 Capital Adequacy Ratio -Tier 2 2.08% 1.52% 1.29% (0.56) (0.23) Total Capital Management Policy of Capital Structure Bank capital adequacy is calculated by using CAR (Capital Adequacy Ratio) indicators, which reflect the ability to address the risk of losses that may be incurred by banks. The higher the CAR level indicates the Bank’s better capability of addressing the risk of credit/productive assets. In 2017, CIMB Niaga recorded a minimum capital adequacy ratio or CAR by 18.60% compared to 17.96% in 2016. The increase was due to the significant increase in the current year’s earnings compared to Annual Report CIMB NIAGA 2017 (11.5) the previous year. CIMB Niaga always maintains its capital adequacy in order to constantly remain above the minimum CAR required by the regulator. CIMB Niaga has consolidated its Internal Capital Adequacy Assessment Process (ICAAP) to establish the adequacy of capital in accordance with the risk profile and strategy to maintain the capital. The selfassessment result of CIMB Niaga risk profile in 2017 was Low to Moderate (2). In accordance with POJK No. 34/POJK.03/2016 and SE OJK No.26/SEOJK.03/2016, the required CAR was calculated by considering the 209
  210. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management OTHER MATERIAL FINANCIAL INFORMATION risk profile rating of Low to Moderate (2) and Basel 3 Capital Buffer in 2017 which was at 11.65%. The CAR ratios of CIMB Niaga in 2016 and 2017 were 17.96% and 18.60%, respectively, indicating that CIMB Niaga maintained its capital reserve above the minimum CAR ratio required by regulators. Basis for Management Policy of Capital Structure Management has prepared the basis for establishing the policy of capital structure by considering economic outlook, business growth potential, risk appetite, stress testing results and targeted CAR ratio. Under such a capital scheme, CIMB Niaga will be able to survive the economic cycle, to benefit from growth and strategic opportunities, to maximize shareholder returns, to manage the business within the risk appetite, and to comply with prevailing regulations. CIMB Niaga’s capital needs are planned, discussed and monitored regularly at the Capital Management Committee meetings, supported by data analysis. Value of Capital Expenditure Rp billion INVESTMENT PROPERTY Until the end of 2017, there were no property assets of CIMB Niaga used for investment purposes. MATERIAL COMMITMENTS FOR CAPITAL EXPENDITURE Until the end of 2017, CIMB Niaga had no material commitments related to capital expenditure. CAPITAL EXPENDITURE 2017 Type, Purpose, and Value of Capital Expenditure In 2017, the total capital expenditure of CIMB Niaga amounted to Rp579 billion compared to Rp1.7 trillion in 2016, with the development of systems and infrastructure amounting to Rp1.2 trillion. The decline in system and infrastructure development investment was mainly due to the completion of the replacement of the Core Banking System on 18 January 2016 which was subsequently reclassified as intangible assets. CIMB Niaga’s capital expenditure is established to meet the needs of operational activities. The details of capital expenditure are as follows: 2015 2016 2017 Estimates in 2018 Land and building 296 82 47 187 Office equipment, machine, furniture and construction in progress 416 384 454 475 IT system and infrastructure development 140 1,236 78 330 Motor vehicle Total - 3 - 852 1,705 579 7 999 In the future, CIMB Niaga will continue to focus on development of Branchless Banking and Digital Banking services to expand its service network to both domestic customers and regional customers, and will continue to create customer-oriented innovations as per the latest market demands and developments. In financing its capital expenditure program, CIMB Niaga utilizes the proceeds from its business and prioritizes the capital expenditure denominated in Rupiah. Management believes that volatile foreign exchange rates would have no significant impact on commitments for capital expenditure. 210 Annual Report CIMB NIAGA 2017
  211. Supporting Business Review Corporate Governance Report Corporate Social Responsibility COMPARISON OF TARGET AND REALIZATION 2017 Comparison of target and realization in 2017 are as follows : Component Loan Growth Target 2017 Realization 2017 7%-9% 2.8% Asset Quality/NPL 3%-3.5% 3.75% Loan to Deposit Ratio 95%-98% 96.2% Customer Deposits Growth 10%-12% 4.8% CASA Ratio 50%-52% 52.6% Net Interest Margin ±5% 5.6% Profit before Income Tax Growth 20%-30% 45.7% Capital Adequacy Ratio 16%-18% 18.6% In 2017, CIMB Niaga continued the growth from previous year performance. CIMB Niaga successfully seized its opportunities and closed 2017 with key performance achievements detailed below: 1. CIMB Niaga successfully recorded positive loan growth of 2.8% yoy. 2. Customer deposits grew by 4.8% yoy, reaching Rp189.3 trillion in 2017, but were still below the established target. This was due to intense competition among banks to obtain customer deposits, triggered by competitive interest rates resulting in steadily declining interest rates. The increase in deposits from customers was supported by CASA growth of 8.4% yoy. 3. NIM at 5.6%. This was primarily due to lower cost of customer deposits due to the adjustment of deposit interest rate based on BI 7 Day Reverse Repo Rate of 50 bps during 2017. 4. CASA at Rp99.5 trillion, whereby CASA ratio was 52.6% of total customer deposits in 2017, compared to 50.8% in 2016. 5. CIMB Niaga succeeded in maintaining the loan to deposit ratio (LDR) at 96.2%. Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report 6. In line with the increase in profitability and loan position, CIMB Niaga also continued to maintain strong capital, achieving CAR by 18.6% in 2017, above the established target. PROJECTION 2018 CIMB Niaga’s projection for key financial ratios and certain accounts based on historical figures, projected macroeconomic conditions and CIMB Niaga’s strategies in 2018 are as follows: 1. Loans growth by 5%-8%. 2. Customer deposits growth by 5%-8% with CASA ratio at 52%-55%. 3. Quality of assets to be maintained with the NPL ratio within the range of 3.5%-3.7%. 4. Loan to deposit ratio to be within the range of 95%98%. 5. Net interest margin to be within the range of 5.3%5.5%. 6. Profit before tax to increase to within the range of 12%-20%. 7. Capital Adequacy Ratio (CAR) to be within the range of 17%-18%. MATERIAL INFORMATION AND FACTS SUBSEQUENT TO REPORTING DATE CIMB Niaga obtained approval from OJK through letter No.S-63/PB.33/2017, to buy back shares of CIMB Niaga (share buyback) amounting to a maximum 2% from total shares issued and fully paid. As of February 22, 2018, where by the buyback period ended, CIMB Niaga performed a buyback of 208,216,392 shares with an average price per share of Rp1,253 (full amount) and total acquisition cost of the buyback amounting to Rp261.9 billion. According to the Extraordinary General Meeting of Shareholders dated August 24, 2017, all shares obtained through the buyback process will be used in the Management Employee Stock Ownership Program 211
  212. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management OTHER MATERIAL FINANCIAL INFORMATION (MESOP). The MESOP has been reported to PT Bursa Efek Indonesia through Letter No.020/FO/KP/2018, disclosing that the MESOP will be effective in 2018, starting after 30 days after the last share buyback period. SIGNIFICANT CHANGES IN THE BANK AND THE GROUP IN 2017 There were no significant changes noted in CIMB Niaga and the group as of 31 December 2017, which may have an impact on the financial position of CIMB Niaga. INFORMATION ON DIVIDEND DISTRIBUTION CIMB Niaga’s dividend policy is disclosed in Dividend Policy section in Good Corporate Governance Section of this Annual Report. Based on the 2017 Annual General Meeting of Shareholders (AGMS) on 25 April 2017, the shareholders agreed to record all net income for 2016 of Rp2.1 trillion as retained earnings. Based on the Annual General Meeting of Shareholders dated 15 April 2016, the shareholders agreed to record all net income for 2015 at Rp428 billion as retained earnings. As such, for the last two consecutive years, no dividends have been paid as all Bank’s net profit were used to fund Bank’s operational activities. EMPLOYEE AND/OR MANAGEMENT SHARE OWNERSHIP Equity Ownership Plan (EOP) The EOP was introduced in March 2011 by the CIMB Group whereby the CIMB Group will grant ordinary shares of the CIMB Group to selected employees of Bank CIMB Niaga (Senior Vice President (SVP) and Executive Vice President (EVP) and Board of Directors) with a re-charge to Bank CIMB Niaga. Under the EOP, earmarked portions of variable remuneration of selected employees will be utilized to purchase ordinary shares of the CIMB Group from the market. The purchased shares will be released progressively to eligible employees at various dates after the purchase date, subject to continued employment. A related company will act on behalf of the CIMB Group to administer the EOP and to hold the shares in trust up to the pre-determined transfer date. The eligibility of participation in the EOP is at the discretion of the Group Compensation Review Committee of the CIMB Group. In the case of termination of employment other than retirement, disability or death, the employee will not receive any unreleased shares. Below are the details of EOP granted by the CIMB Group: EOP Granted Date Amount Paid by Bank to the Entity Established by CIMB Group Total Shares Average Price per Share (full amount) RM 25 March 2013 43,374 1,220,675 7.74 25 March 2014 32,084 1,250,297 7.15 Tranche Effective Date 1 April 2013 31 March 2014 Percentage 33.33% 1 April 2014 33.33% 1 April 2015 33.33% 1 January 2015 25.09% 31 December 2014 24.97% 31 March 2015 18.85% 31 December 2015 24.97% 31 March 2016 6.12% 25 March 2015 212 13,997 651,688 5.97 1 April 2015 Vesting Period 31 December 2016 84.87% 31 March 2016 7.56% 31 March 2017 7.57% 31 December 2017 Annual Report CIMB NIAGA 2017
  213. Supporting Business Review EOP Granted Date 4 March 2015 1 January 2016 25 March 2016 1 July 2016 25 March 2017 Corporate Governance Report Amount Paid by Bank to the Entity Established by CIMB Group 4 ,043 900 22,575 1,000 29,813 Corporate Social Responsibility Total Shares Average Price per Share (full amount) RM 216,400 5.28 62,900 1,587,881 70,300 1,824,198 4.33 4.17 4.26 5.28 Others Corporate Data Consolidated Financial Report Tranche Effective Date 1 June 2015 1 January 2016 1 April 2016 1 July 2016 1 April 2017 Percentage Vesting Period 40.00% 1 Juni 2016 30.00% 1 June 2017 30.00% 1 June 2018 40.00% 6 January 2017 30.00% 6 January 2018 30.00% 6 January 2019 33.33% 31 March 2017 33.33% 31 March 2018 33.33% 31 December 2018 40.00% 1 June 2017 30.00% 1 June 2018 30.00% 1 June 2019 33.33% 31 March 2018 33.33% 31 March 2019 33.33% 31 December 2019 The movement of entitlements shares granted is as follows (in Rp million): 2015 Beginning Balance Granted Exercised (*) Ending Balance (*) 2016 2017 1,405,020 1,260,156 1,940,076 868,088 1,721,081 1,824,198 (1,012,952) (1,041,161) (791,039) 1,260,156 1,940,076 2,973,235 Vested REALIZATION OF PROCEEDS FROM PUBLIC OFFERING In 2017, CIMB Niaga issued its Public Offering of Shelf Registration Bond II with details as follows: Instrument Shelf Registration Bond II, Bank CIMB Niaga, Phase II Year 2017 Shelf Registration Bond II, Bank CIMB Niaga, Phase III Year 2017 Series Total Principal of Bonds Period Series A Rp802 billion 1 year Series B Rp376 billion 3 years Series C Rp822 billion 5 years Series A Rp500 billion 1 years Series B Rp657 billion 3 years Series C Rp843 billion 5 years Total Public Offering of Shelf Registration Bond II Bank CIMB Niaga, Phase II, Year 2017 and Shelf Registration Bond II Bank CIMB Niaga, Phase III, Year 2017, net issuance costs amounting to Rp1,994,238,165,872 and Rp1,994,571,571,109 respectively. Payment of bond coupons will be made on a quarterly basis. The proceeds from the offering will be fully utilized for the financing of credit expansion in order to support CIMB Niaga’s business growth. Annual Report CIMB NIAGA 2017 213
  214. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management OTHER MATERIAL FINANCIAL INFORMATION The realization of the proceeds was reported to the OJK through Letter No . 003/DIR/I/2018 dated 10 January 2018. Type of Public Offering Effective Date Realization of Proceeds from Public Offering Realization of Proceeds Based on Prospectus Realization of Proceeds in 2017 Total Proceeds Issuance Expenses Net Loan Expansion (100%) Loan Expansion (100%) Period Remaining Amount of Proceeds from Public Offering Shelf Registration Bond II CIMB Niaga Phase II Year 2017 23 Aug 17 Dec 17 Rp2,000 billion Rp5.8 billion Rp1,994 billion Rp1,994 billion Rp1,994 billion Rp0 Shelf Registration Bond II CIMB Niaga Phase III Year 2017 2 Nov 17 Dec 17 Rp2,000 billion Rp5.4 billion Rp1,995 billion Rp1,995 billion Rp1,995 billion Rp0 MATERIAL INFORMATION ON INVESTMENT, EXPANSION, DIVESTMENT, ACQUISITION, AND DEBT/CAPITAL RESTRUCTURING In 2017, CIMB Niaga made no material transactions related to investment, expansion, divestment, acquisition, and debt/capital restructuring. INFORMATION CONTAINING MATERIAL TRANSACTIONS WITH CONFLICT OF INTERESTS AND/OR TRANSACTIONS WITH AFFILIATED PARTIES During 2017, there were no material transactions conducted by CIMB Niaga which could be classified as transactions with a conflict of interest. However, in 2017, CIMB Niaga entered into transactions with related parties since the entities were under common control and/or management in their business activities. The terms and conditions were fairly and mutually agreed upon in all transactions with related parties, and were conducted on an arm’s length basis in accordance with prevailing regulations. The details of transactions with related parties are available in Note no. 49 of the Audited Financial Statements section of this Annual Report. SPOT AND DERIVATIVE TRANSACTIONS AND HEDGING FACILITIES During 2017, CIMB Niaga’s spot and derivative transactions and hedging facilities are as follows: Derivative Receivables and Payables Rp billion 2015 2016 2017 Derivative receivables (fair value) 595.6 484.6 Non-hedging related 595.4 Hedging instrument in fair value hedges related Growth (%) 2015-2016 2016-2017 280.3 (18.6) (42.2) 474.7 280.3 (20.3) 0.2 9.9 - Derivative payables (fair value) 888.7 362.9 110.8 (59.2) (69.5) Non-hedging related 885.0 362.9 110.8 (59.0) (69.5) Hedging instrument in fair value hedges related 3.7 - - (100.0) 5.995.1 (40.9) (100.0) na CIMB Niaga’s hedging facility is made on interest rate swap transactions. CIMB Niaga’s derivative receivables are at 80.8%, mostly derived from interest rate swap transactions. In 2017, the decrease of 50.5%, to Rp226.5 billion, in derivative receivables was primarily due to lower interest rate swap transactions. 214 Annual Report CIMB NIAGA 2017
  215. Supporting Business Review Corporate Governance Report Derivative Receivables Rp million Interest rate swaps Corporate Social Responsibility Others Corporate Data 2015 2016 2017 570 ,015 457,504 Foreign currency options Consolidated Financial Report Growth (%) 2015-2016 2016-2017 226,493 (19.7) (50.5) 27 6 13,956 (77.8) nm Foreign currency swaps 10,311 18,264 35,856 77.1 96.3 Foreign currency forwards 14,778 8,658 2,064 (41.4) (76.2) Interest rate future Foreign currency spots Total - - 1,714 nm nm 423 170 210 (59.8) 23.5 595,554 484,602 280,293 (18.6) (42.2) CIMB Niaga’s derivative liabilities are at 62.1%, mostly representing interest rate swap transactions. In 2017, the decrease in derivative liabilities was primarily due to a 78.7% reduction in interest rate swap transactions, to Rp68.8 billion. Derivative Payables Rp million Interest rate swaps Foreign currency options Foreign currency swaps Foreign currency forwards 2016 2017 858,113 322,575 68,808 (62.4) 265 674 19,595 154.3 27,834 29,566 14,563 6.2 (50.7) 2,246 7,881 5,717 250.9 (27.5) - 1,958 2,088 nm 246 263 52 6.9 888,704 362,917 110,823 Interest rate future Foreign currency spots Total Growth (%) 2015 2015-2016 (59.2) 2016-2017 (78.7) 29x 6.6 (80.2) (69.5) SIGNIFICANT AGREEMENTS CIMB Niaga also works in cooperation with other parties (including business partners) in conducting its business activities. The following are significant ongoing agreements/engagements with third parties recorded in 2017: 1.Transfer Agreement on ATM Network Services Subscription Agreement dated 7 January 2002 with PT Artajasa Pembayaran Elektronis (Artajasa); 2. Agreement with PT Bursa Berjangka Jakarta (BBJ) dated 14 December 2000 in relation to the pooling of funds from brokers and members of BBJ or other valid funds as approved by the Commodity Futures Trading Regulatory Agency (Bappebti); 3. Agreement for the Development and Administration of Internet Banking Services dated 1 November 2006 with PT Pacific Communications Network (Pacomnet) with the objective of providing applications for internet banking transactions. On 2 July 2002 the Bank also entered into an agreement with the same party (Pacomnet) to implement SMS Annual Report CIMB NIAGA 2017 Mobile Banking with the development of banking services through GSM mobile; 4.Agreement pertaining to credit card and ATM through VISA International Service Association Program Security Agreement Letter of Credit dated 9 October 2001 with Visa International Service Association (VISA); 5. Master Card Membership License Agreement with Mastercard International Incorporated dated 9 July 1996; 6.Master Service Agreement with PT Silverlake Informatikatama dated 15 November 1996 with the last amendment dated 18 November 2009 for the purpose of software licensing for various applications; 215
  216. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management OTHER MATERIAL FINANCIAL INFORMATION 7 . Agreement with Silverlake Axis MSC Sdn Bhd for the transition of Core Banking System (1P) dated 19 September 2014; 8. On 7 April 2008, CIMB Niaga entered into an office space lease agreement with PT Niaga Manajemen Citra for the building located at Griya Niaga Building 2, Jl. Wahid Hasyim Block B.4 No.3, Bintaro Jaya Sector VII Tangerang for 29 (twenty nine) years. On 30 October 1997, CIMB Niaga entered into an office space lease agreement with PT Niaga Manajemen Citra for the building located at Griya Niaga Building 1, Jl. Wahid Hasyim Block B.4 No. 3, Bintaro Jaya Sector VII Tangerang for 15 (fifteen) years until 29 October 2012 and has been extended until 31 December 2017. On 15 January 2018, CIMB Niaga has signed an extension of the lease agreement with PT Niaga Manajemen Citra with lease term until 31 December 2022; 9. CIMB Niaga entered into a cooperation agreement with PT Infomedia Nusantara for the operation of call center services or information service centers for CIMB Niaga customers concerning CIMB Niaga service information. This cooperation agreement is valid until 30 June 2013 and has been renewed until 30 November 2016. On 28 November 2017, CIMB Niaga entered into a cooperation agreement with PT Infomedia Nusantara to provide contact center services for customers related to CIMB Niaga banking transactions and products. This cooperation agreement is valid until 30 November 2017 for the Gajah Mada location and 30 July 2017 for the Kedoya location (despite the fact that the agreement is signed before or after the signing date). Up to present the cooperation agreement is still in the renewal stage; 216 10. On 30 December 2014, CIMB Niaga entered into a lease agreement with PT Star Pacific Tbk for the building located at CIMB Niaga Tower, Jl. Boulevard Diponegoro No. 101, Kelapa Dua Sub-district, Curug District, Tangerang with a rental period up to 28 February 2020. The total rental fees vary from Rp80,000/m2 to Rp220,000/m2 (full amount) payable every 3 (three) months and paid in advance. Bank CIMB Niaga and PT Star Pacific Tbk also agree that the rental fees will remain unchanged during the lease term; 11. In March 2016, CIMB Niaga entered into a bancassurance agreement with PT Sunlife Financial Indonesia to market Sunlife insurance products through CIMB Niaga’s distribution network. This cooperation agreement is valid until 12 April 2033; 12.In December 2016, CIMB Niaga entered into a bancassurance agreement with PT CIMB Niaga Auto Finance, PT Sompo Insurance Indonesia and Sompo Japan Nipponkoa Insurance Inc. to market Sompo’s insurance products through CIMB Niaga’s distribution network. This cooperation agreement is valid until 31 December 2035. Annual Report CIMB NIAGA 2017
  217. Supporting Business Review Corporate Governance Report Corporate Social Responsibility OTHER IMPORTANT TRANSACTIONS IN SIGNIFICANT AMOUNTS During 2017 , CIMB Niaga made no transactions in significant amounts. FINANCIAL INFORMATION THAT HAS BEEN REPORTED AND CONTAINS EXTRAORDINARY AND RARE EVENTS During 2017, there was no financial information containing extraordinary and rare events. ADOPTION OF FOREIGN ACCOUNT TAX COMPLIANCE ACT (FATCA) & COMMON REPORTING STANDARD (CRS) FATCA is a regulation issued by the US Department of Treasury and Internal Revenue Service (“IRS”) to prevent tax evasion by US citizens or companies through funds or businesses that are kept outside of the territory of the United States. Others Corporate Data Consolidated Financial Report The Common Reporting Standard (CRS) is an automatic financial information exchange standard for tax purposes including commentaries compiled by the Organization for Economic Cooperation and Development (OECD) together with the Group of Twenty or G20 nations. The Government of Indonesia also signed the International Automatic Exchange of Information (AEOI) Agreement with the issuance of PERPU No.1 year 2017 on Financial Information Access for Tax Purpose. CIMB Niaga is committed to taking part in its compliance with FATCA & CRS provisions. Currently CIMB Niaga has registered for FATCA membership in the IRS as a financial institution that will adopt the FATCA provisions and has registered to the Directorate General of Taxes for CRS reporting. Compliance with FATCA & CRS is required under the Customer Due Diligence process at CIMB Niaga to identify potential customers/clients that meet the FATCA/CRS reporting criteria as well as other requirements. OJK Circular No. S-7/PB.1/2014 The Bank, as a financial institution is required to report tax information from foreigners. A 30% Withholding Tax penalty is charged on funds transferred to outside the US by non-compliant financial institutions. Procedures for Participating Companies 1. Registered as a participating foreign financial institution $ $ $ $ 3. Prepare additional procedures for customers to fill out declaration forms Annual Report CIMB NIAGA 2017 2. Prepare addtional procedures to identify customers or potential customers 4. Report to the OJK on a regular basis 217
  218. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management OTHER MATERIAL FINANCIAL INFORMATION REGULATORY CHANGES WITH SIGNIFICANT IMPACTS ON THE BANK AND THE IMPACT ON FINANCIAL STATEMENTS Regulatory Stipulations (including Bank Indonesia regulations, OJK and Ministry of Finance Significant Changes from Previous Regulation or Subject of New Regulation 1. Bank Indonesia Regulation No. 19/6/PBI 2017 and Members of the Board of Governors Bank Indonesia Regulation No. 19/4/ PADG/2017 concerning Statutory Reserves of Commercial Banks in Rupiah and Foreign Currency for Conventional Commercial Banks Primary Statutory Reserves Fulfillment on a daily basis and on average are: • Statutory reserves that must be met daily by 5%; and • Statutory Reserves that must be met on an average of 1.5% over a certain period. In order to improve the effectiveness of monetary policy transmission as well as a further step of the Monetary Policy Operational Framework Reformulation. The Bank has and shall comply with pertaining regulations, including adjusting the policies and procedures 2. Financial Services Authority Regulation No. 12/POJK.01/2017 and Financial Services Authority Circular Letter No. 32/SEOJK.03/2017 on the Implementation of Anti Money Laundering and CounterTerrorism Financing Program in Financial Services Sector • Active supervision of the Board of Commissioners regarding AML and CTF. Stipulations concerning Closure of business relations or rejection of transactions. More detailed stipulations regarding Beneficial Owner. The existence of globalization in the financial services sector, which is accompanied by the increasingly complex financial services products either in terms of products, services and the use of information technology, has the potential to increase the risk of utilizing the financial services industry as a means of Money Laundering and/or Financing of Terrorism, with its increasingly diverse and advanced modes of operation. The Bank has and shall comply with pertaining regulations, including adjusting the policies and procedures Financial Services Authority Regulation No. 18/POJK.03/2017 and Financial Services Authority Circular Letter No. 50/SEOJK.03/2017 regarding Reporting and Requesting Debtor Information through Financial Information Service System (SLIK) • Additional Data and/or Information in the SLIK report. Changes in the reporting system of Debtor Information System (SID) owned by BI into the SLIK system owned by OJK. Fully operated starting from 1 January 2018 replaces SID’s role. In accordance with the provisions of legislation, the Financial Services Authority has the authority to govern and develop an expanded inter-bank information system by enclosing other institutions in the financial services field. The Bank has and shall comply with pertaining regulations, including adjusting the policies and procedures No. 3. 218 • • • • Reason for Changes Impact on CIMB Niaga Annual Report CIMB NIAGA 2017
  219. Supporting Business Review No . Corporate Governance Report Regulatory Stipulations (including Bank Indonesia regulations, OJK and Ministry of Finance Corporate Social Responsibility Significant Changes from Previous Regulation or Subject of New Regulation Others Corporate Data Reason for Changes Consolidated Financial Report Impact on CIMB Niaga 4. Government Regulation in Lieu of Law No. 1 year 2017 and Minister of Finance Regulation No. 73/PMK.03/2017 concerning Access to Financial Information for Tax Purposes 1. Bank must submit report of financial information including balance/value of financial account, requirements applies as follows: a) For Individual Financial Accounts, balance or value more than 1 (one) or more financial accounts with minimum amounts of Rp1,000,000,000.00 (one billion rupiah) or with equivalent foreign currency; or b) For Entity Financial Accounts, has no limit balance or value. 2. Exclusions of Financial Accounts that must be reported is one or more old Financial accounts owned by entity, with aggregate balance or value no more than USD250,000.00 (two hundred and fifty thousand US Dollar) on 30 June 2017, 31 December 2018, and 31 December of each subsequent calendar year. Indonesia has committed to international agreements in the field of taxation, which are obliged to fulfill the commitment of participation in the implementation of Automatic Exchange of Financial Account Information The Bank has and shall comply with pertaining regulations, including adjusting the policies and procedures 5. Bank Indonesia Regulation No. 19/8/PBI 2017 and Members of the Board of Governors Bank Indonesia Regulation No. 19/10/ PADG/2017 on the National Payment Gate (NPG) • To build endurance, conduct integrated and sustainable development, as well as improve the competitiveness of national payment systems, required a necessary arrangement of infrastructure, institutional, instrument, and system mechanism of national payments that capable to process order for all retail domestic payment transactions in an interconnection and interoperability manner The Bank has and shall comply with pertaining regulations, including adjusting the policies and procedures • • Annual Report CIMB NIAGA 2017 Ensure that every domestic payment transaction are required to be processed through an NPG, Ensure that the ATM/debit card issued by the Bank has included a national logo, and Ensure that all ATM cardholders and/or Debit cardholders must have at least 1 (one) ATM card and/ or debit card with a national logo. 219
  220. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management OTHER MATERIAL FINANCIAL INFORMATION No . Regulatory Stipulations (including Bank Indonesia regulations, OJK and Ministry of Finance Significant Changes from Previous Regulation or Subject of New Regulation Banks are required to maintain NSFR ratios; Banks are required to monitor NSFR, as well as submit and publish the NSFR report. The Bank has and shall comply with pertaining regulations, including adjusting the policies and procedures The existence of an agreement between Bank Indonesia and Bank Negara Malaysia is to encourage the use of local currency for the transaction settlement of bilateral trade transactions between Indonesia and Malaysia. The Bank has been appointed as one of the Indonesia ACCD Banks that conducting MYR vs.IDR transactions Differences in Net Claim Calculation for Derivative Transactions Starting position in January 2018, Net Claims used in the calculation of Exposure at Default (EAD) variable on CVA Risk Weighted Assets calculation using net invoice as referred to this SEOJK There is an obligation to apply guidelines for calculating the net claims for derivative transactions using a standardized approach, which shall be established by the Bank as a G20 member. The Bank has and shall comply with pertaining regulations, including adjusting the policies and procedures Facilitate licensing services to banks through 1 (one) work unit in BI (Ministry of Financial System Surveillance – DSSK) Accelerate the processing of licenses requested by the bank to BI; Support the harmonization of approval/rejection process by BI and OJK against Bank requests. BI considers it is necessary to provide an integrated licensing service to improve aspects of service, governance, effectiveness, and efficiency in providing services to commercial banks. The Bank has and shall comply with pertaining regulation if the Bank will take strategic and fundamental steps Financial Services Authority • Regulation No. 50/POJK.03/2017 regarding Obligation of • Fulfillment of Net Stable Funding Ratio (NSFR) for Commercial Banks 7. Bank Indonesia Regulation No. 19/11/PBI 2017 and Members of Board of Governors Regulation No. 19/12/PADG/2017 on the Settlement of Bilateral Trade Transactions between Indonesia and Malaysia Using Rupiah and Ringgit through Bank Bank Indonesia together with Bank Negara Malaysia nominate Indonesia Appointed Cross Currency Dealer (ACCD) Bank to perform certain financial activities and transactions, for the benefit of the implementation of Local Currency Settlement (LCS). 8. OJK Circular Letter No. 48/ SEOJK.03/2017 concerning Liability Guidelines for Calculation of Net Claims for Derivative Transactions in the Calculation of ATMR for Credit Risk by Using the Standard Approach (SA-CCR) • Bank Indonesia Regulation No. 19/13/PBI/2017 concerning Integrated Licensing Services in relation to Commercial Bank Operations with Bank Indonesia • 9. • • 220 Impact on CIMB Niaga The Bank’s tendency relies on unstable financing, derived from short-term corporate funding sources. 6. • Reason for Changes Annual Report CIMB NIAGA 2017
  221. Supporting Business Review No . 10. Corporate Governance Report Regulatory Stipulations (including Bank Indonesia regulations, OJK and Ministry of Finance Regulation of the Financial Services Authority No. 14/ POJK.03/2017 concerning the Recovery Plan for Systemic Banks Corporate Social Responsibility Significant Changes from Previous Regulation or Subject of New Regulation The Systemic Bank has the following obligations: a. Prepare and submit a Recovery Plan to OJK (for first submission shall be done no later than December 29, 2017); b. Hold debt or investment instrument that has capital characteristics. With the following conditions : 1) For a Bank that has been stipulated as a Systemic Bank prior to the validity of this OJK Regulation, the fulfillment shall be done no later than December 31, 2018; 2) For the establishment of a Systemic Bank accepted upon or after the OJK Regulation is prevails, the fulfillment shall be no later than 18 (eighteen) months since the Recovery Plan is received in full by OJK. c. Conduct implementation, evaluation and stress testing, and updating Recovery Plan. The Bank required to have guidelines on the Recovery Plan. • Others Corporate Data Reason for Changes One of the efforts to prevent and handle the financial system crisis, as referred to in the Law of PPKSK is to prevent and handle the Systemically Important Bank problem, which is an important part of the financial system. Therefore, the Systemic Bank should be able to determine the plan to be undertaken if the Systemic Bank experiences financial stress condition that may jeopardize business continuity Consolidated Financial Report Impact on CIMB Niaga The Bank as a Systemic Bank, has submitted the first submission of Recovery Plan to OJK on 19 December 2017 for the first time. And for the following periods by concurring the mechanisms and conditions as stipulated in pertaining OJK Regulation CHANGES IN ACCOUNTING STANDARDS The changes in accounting standards adopted by CIMB Niaga in 2017 and the explanation of their impact on CIMB Niaga are as follows: No 1 2 Accounting Standards SFAS 1 (revised 2015) “Presentation of Financial Statements IFAS 31 (revised 2015) “Interpretation of Scope of SFAS 13 : Property Investment” Adopted IFRS/IAS IAS 1 “Presentation of Financial Statements” - Summary of Changes Impact on the Bank and its Subsidiary Materiality requirement, flexibility of systematic order of notes to financial statements, and identification of significant accounting policies. Impacts only in terms of financial statements presentation and disclosures. Interpretation of building characteristics which is part of definition of property investment in SF AS 13 “Property Investment”. No significant impacts on the Bank and Subsidiary. SFAS is effective 1 January 2017. Early implementation is permitted. Building in terms of property investment definition refers to physical structure related to building which has wall, floor, and roof. Annual Report CIMB NIAGA 2017 221
  222. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management OTHER MATERIAL FINANCIAL INFORMATION No 3 4 5 6 7 222 Accounting Standards Adopted IFRS /IAS IFAS 32: “Definition and Hierarchy of Financial Accounting Standards” - SFAS 3 (revised 2016) : “Interim Financial Report” SFAS 24 (revised “Employee Benefits” 2016) : SFAS 24 (revised 2016) : “Employee Benefits” SFAS 60 (revised 2016) “Financial Instruments : Disclosure” : Summary of Changes Impact on the Bank and its Subsidiary • Provide an interpretation of the definition and hierarchy of Financial Accounting Standards (SAK) in SFAS 1: Presentation of Financial Statements paragraph 07 and SFAS 25: Accounting Policies, Changes in Accounting Estimates, and Errors in paragraph 05. • ISAK 32 provides arrangements for entities when capital market regulations conflict with specific PSAKs or ISAKs. Only impacts on the presentation and disclosure of financial statements. “Annual Improvements to IFRSs 2012–2014 Cycle” effective 1 January 2016 Clarify that interim disclosure must be included on interim financial report or by cross references from interim financial report such as management letter or risk profile report which is available for interim financial report users at the same time. • If the financial statements user can not access the information available at cross-reference at the same time and requirements then the entity interim financial statement is considered incomplete. Impacts only in terms of financial statements presentation and disclosures. IAS 19 : “Defined Benefit Plans : Employee Contributions” The high quality of corporate bond markets valued by currency denominations and not based on the bond origin country. No significant impacts on the Bank and Subsidiaries. “Annual Improvements to IFRSs 2012–2014 Cycle” effective 1 January 2016 • Clarify that the changes between disposal methods considered as initial continuous plan and not recognized as new disposal plan. •This adjustment also clarifies the changes of disposal method not impacting on the changes of classification date as asset or disposal group. No significant impact on the Bank and Subsidiary. IFRS 7 : “Financial Instruments : Disclosure” Entity must assess the characteristics of contract benefits to determine whether the entity has continuous involvement in financial assets • This PSAK is effective January 1, 2017, or early adoption is permitted in cases where, prior to January 1, 2017, the entity opted to adopt certain accounting treatments issued by the regulator that is inconsistent with the existing SFAS/IFAS. This SFAS is effective on or after 1 January 2017. Early implementation is permitted. This SFAS is effective on or after 1 January 2017. Early implementation is permitted. This SFAS is effective on or after 1 January 2016. Early implementation is permitted. Impacts only in terms of financial statements presentation and disclosures. This SFAS is effective on or after 1 January 2017. Early implementation is permitted. Annual Report CIMB NIAGA 2017
  223. Supporting Business Review No 8 9 Corporate Governance Report Accounting Standards Corporate Social Responsibility Adopted IFRS /IAS SFAS 101 (revised 2016): “Presentation of sharia Financial Statement” - SFAS 102 (revised 2016): “Accounting for Murabahah” - Others Corporate Data Summary of Changes • Consolidated Financial Report Impact on the Bank and its Subsidiary Presenting sharia insurance financial statement illustration which reflects the revision of SFAS 108. • The allowance for future policy benefits is presented in financial statements as liability. • Combining “Statement of Changes in Tabarru Funds” with “Statement of Tabarru Fund Underwriting Surplus Deficit”, as a result both are presented on “Statements of Tabarru Funds Surplus Deficit” Impacts only in terms of financial statements presentation and disclosures. Changes in the definition of fair value adjusted to PSAK 68: Fair Value Measurement No significant impact on the Bank and its Subsidiary. This SFAS is effective 1 January 2017 prospectively. This amendment is effective January 1, 2017 retrospectively. 10 SFAS 103 (revised 2016) “Accounting for Salam” : - Revising fair value definition into: “the price to be received to dispose an asset or the price that would be paid to transfer a liability in the final transaction between market participants at the measurement date” No significant impact on the Bank and Subsidiary. 11 SFAS 104 (revised 2016) “Accounting for Istishna” : - Revising fair value definition into: “the price to be received to dispose an asset or the price that would be paid to transfer a liability in the final transaction between market participants at the measurement date” No significant impact on the Bank and Subsidiary. 12 SFAS 107 (revised 2016) “Accounting for Ijarah” : - Revising fair value definition into: “the price to be received to dispose of an asset or the price that would be paid to transfer a liability in the final transaction between market participants at the measurement date” No significant impact on the Bank and Subsidiary. 13 SFAS 108 (revised 2016): “Accounting for sharia Insurance Transactions” - • No significant impact on the Bank and Subsidiary. The sharia insurance contract to be classified as short term and long term. • The classifications have an impact on the participation contribution income recognition and allowances. • For short term sharia insurance contract, the participant contribution is recognized as tabarru fund income during insurance contract period. • For long term sharia insurance contract, the participant contribution is recognized as tabarru fund income at payment maturity date. Such changes in PSAK and ISAK have no significant impact on the amounts reported in the consolidated financial statements for current year 2017 or prior year 2016. Annual Report CIMB NIAGA 2017 223
  224. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management OTHER MATERIAL FINANCIAL INFORMATION TAXPAYER COMPLIANCE CIMB Niaga always complies with the laws and regulations of the Government of the Republic of Indonesia as its commitment to participate in the development of the nation through State Tax Revenue . In 2017, the taxes paid to the State were as follows: Description Total (Rp million) Corporate Income Tax 1,177,282 Employee Income Tax 407,336 BUSINESS CONTINUITY INFORMATION Aspects That Have a Significant Effect on Business Continuity As at the end of 2017, the Bank did not possess any condition that had the potential to have a significant negative effect on business continuity. Economic growth in 2018 is expected to be better, supported by the success of the government tax amnesty program, the sustainability of infrastructure projects and stable commodity prices. Optimism is beginning to show that Indonesia is moving in the right direction. Therefore, CIMB Niaga is optimistic with credit growth that will be improved from the previous year. However, CIMB Niaga will continue to monitor the growth of its loan portfolio by simulating various economic conditions that may impact credit quality. CIMB Niaga applies prudential principles by upgrading its credit approval policy standards to obtain quality credit growth and actively monitor such credit considered problematic. 224 Changes in government regulations also affect the potentials of activities and businesses at CIMB Niaga. Government regulations calling on banking companies to lower lending rates to single digits and limit Net Interest Margin (NIM) earned, prompted CIMB Niaga to maintain interest rates in order to stay competitive so that Third Party Funds continue to grow at stable NIM levels. CIMB Niaga continues to implement strategies that focus on the collection of CASA so that NIM can achieve the set targets by continuing to observe changes in the benchmark interest rate. Management Assessment To Achieve Potentials That Significantly Affects Business Continuity Periodically, in the preparation of the strategic plan, CIMB Niaga evaluates and assesses the Bank’s ability to achieve its targets and to maintain business continuity. Up to date of publication of the 2017 Annual Report, CIMB Niaga did not have any findings on material uncertainty, which may cause significant doubt on the Bank’s ability to sustain its business. Various efforts have been made by the Bank in managing any potentially significant impact on business sustainability by preparing and issuing the consolidated financial statements based on the latest and continuing Financial Accounting Standards. Based on the achievement of performance during 2017 and the Bank’s history, Management is confident in the business continuity of CIMB Niaga. This determination is based on the financial ratios and Bank financial health that are in good condition and able to support business continuity into the future. Annual Report CIMB NIAGA 2017
  225. Supporting Business Review Corporate Governance Report Corporate Social Responsibility In terms of infrastructure , Management believes that CIMB Niaga has a good infrastructure to support business continuity. If there is a lack of supporting infrastructure, CIMB Niaga will meet the shortfall without disrupting its financial condition. Meanwhile, from the market side, along with the economic development both global and national, Management believes that the Bank is able to face various challenges and seize the opportunities that exist. Competent Human Resources, adequate business infrastructure, and an internationally owned business network serves as a basis of Management confidence in CIMB Niaga’s business growth in the future. Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report Assumption Used by Management in Assessment In conducting assessments related to the Bank’s business continuity, CIMB Niaga Management considers several factors including financial performance, liquidity and solvency levels, significant engagements and agreements, as well as on-going lawsuits. 225
  226. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Business Prospect 2018 MACRO-ECONOMIC DEVELOPMENTS 2018 In 2018 , Bank Indonesia forecasts a number of global risks despite the continuing optimism of the global economic recovery. Some of these global risks are arising from the normalization of monetary policies in some developed countries and geopolitical factors on the Korean peninsula and in the Middle East. Other challenges are expected to occur in 2018, such as volatility in asset markets, commodity prices that have not fully recovered, as well as the volume of world trade that is estimated to remain relatively low. However, relatively low interest rates in developed countries are still expected to make emerging markets, including Indonesia, an attractive investment destination. The measurable effects of monetary policy in Europe and Japan are expected to offset the strengthening of the US dollar which in turn will help stabilize the currencies of emerging market countries. In the end, gradually rising in commodity prices will help commodity-producing countries, including Indonesia. Bank Indonesia predicts domestic economic growth in 2018 will improve due to proportionate distributed investment, continuing fiscal stimulus from the government, and rising in exports as the global economic continues to recover. The rapid incoming of net foreign capital has triggered the decrement on bonds market yield to 6.2% - 6.3% at the end of December 2017. The Indonesia’s trade balance surplus condition in 2017, which has reached USD 11.8 billion, has resulted an increase on the amount of foreign exchange reserves to USD 129 billion -- the highest in Indonesia’s history. 226 Indonesia’s economic condition in 2018 is projected to experience a slight growth which in line with expectation on global economic recovery. Indonesia’s economy is projected to grow by 5.2%. The average annual inflation rate is expected to be more stable at 3.5%, and the average annual Rupiah exchange rate is expected to remain stable at around 13,200 per 1 USD. For the purpose of improving Bank’s business growth in a sustainable manner, the Bank will focus on the growth of SME and consumer banking, and selective growth of Corporate and Commercial segments, with the assets growth specifically annual credit growth, ranging from 7-9% yoy. Loans will be distributed wisely in order to maintain asset quality and improve the NPL ratio. Any efforts to increase third party funds will be made by expand the Bank’s network and improve the capabilities of Branchless Banking services in order to boost up the number of customers and announce any new products. Such initiatives are expected to increase the growth of third party funds by 7-9% yoy with CASA ratio will be around 52% -55%. As for capital adequacy, Bank will maintain its CAR in range of 17-18%. Annual Report CIMB NIAGA 2017
  227. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report DESCRIPTION OF CORPORATE STRATEGIC MEASURES 2018 In 2018 , in order to improve Bank’s sustainable business growth, Bank will implement a medium-term growth strategy with five main pillars which consistent with the previous devised medium-term strategy. 01 Playing to Our Strengths 02 Expanding CASA Franchise Strategic Focus 2017 03 Discipline in Cost Management 04 05 Leverage Information Technology Preservation of Capital and Balanced Risk Culture 1. Playing to our Strengths In developing its future business, the Bank will focus on well-known target markets such as growth in SME and Consumer banking, including sharia banking, and will continuously innovate to become a leader in digital banking. Alignment among business units will continue to support growth, specifically growth in accordance with the target market of the Bank. The Bank will continue to prioritize and develop the concept of branchless banking to improve overall customer experience. Continuously optimize ATM, CDM, EDC, and SST to improve customer service experience. As of the end of 2017, the percentage of consumer transactions through branchless banking services such as CIMB Clicks, Go Mobile, ATM, CDM and Mobile Accounts has reached over 92% of total financial transactions. Annual Report CIMB NIAGA 2017 227
  228. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management BUSINESS PROSPECT 2018 The digital network of CIMB Niaga will continue to grow , it can be seen from the increased number of ATMs from 3,865 ATMs in 2016 to 4,500 ATMs in 2017, the increased number of CDM & CRM from 769 in 2016 to 774 in 2017, and tens of thousands of EDC distributed throughout Indonesia. These numbers will continue to increase in the following year. The number of branchless banking users also grew rapidly, with CIMB Clicks users grew by 21% yoy in 2017, while Go Mobile users grew by 32% yoy in 2017, Mobile Accounts also significantly grew by 42% yoy in 2017. The Bank diversified its revenues cycle with increase its non-interest income by improving Transaction Banking (Trade Finance and Cash Management) services, seek out opportunities for financing through Value Chains, and Cross Selling the products or services that tailored for customer needs. 228 One of the aspects of the Bank’s main focuses was to improve the customer experience for every single customer, by continuing the innovation for both its products and services in order to satisfy the needs of its customers. 2. Expanding CASA Franchise In terms of Third Party Funds, the Bank will focus on the collection of Current Account and Savings Account (CASA). The Bank has taken various initiatives and conducted programs through direct promotion, product bundling and partnership to increase the number of CASA. The features and capabilities of branchless banking, as one of the channels to support CASA growth, will continue to be developed, one of which is by using branchless banking to conduct digital cross selling to create expected added value, to facilitate customers and to provide a better customer experience for its users. The Bank’s focus on CASA is reflected in the Bank’s achievements in 2017, whereby Current Account grew by 10.5% yoy and Savings grew by 6.4% yoy. Such growth contributed to the increase in CASA Ratio from 50.8% in 2016 to 52.6% in 2017. In the future, the Bank will continue to focus on CASA as the key component of its funding so as to allow CASA Ratio to continue to increase. 3. Improvements in Efficiency and Discipline in Cost Management The cost efficiency program still continues in a sustainable and comprehensive manner across all lines within the Bank. The program is to create a well-developed cost culture in the Bank that will serve as the key factor in order to achieve various aspects of efficiency. On the other hand, Bank continuously invest on aspects that are turning the wheels of the business to develop and continuously seek out opportunities for automation process, however the Bank will be disciplined in managing operational costs that considered as inefficient. Annual Report CIMB NIAGA 2017
  229. Supporting Business Review Corporate Governance Report Corporate Social Responsibility A number of initiatives taken by the Bank in order to conduct the cost efficiency program include : cost reviews related to rental expenses and optimization of working space by maximizing its own building for office space in order to reduce rental fees, closure on less productive branch offices which in line with the aspiration on developing the digital banking network, merging branch offices where the proximity is close, reducing paper consumption by using electronic media, optimizing carpooling, reducing the use of operational cars by using online transportation applications, evaluating business trips, and merging product promotions and events and etc. To adopt discipline in cost management, the Bank has implemented an internal automation system throughout the CIMB Niaga network across Indonesia. This will enhance management control capabilities over detailed expenses and deliver more efficiency and effectiveness into the future. Such matters are important as the Bank intends to maintain the Cost to Income Ratio below 50%. By consistently implementing the efficiency and cost management program, the Bank expects that the growth of costs will be manageable so as to maintain the satisfactory achievements of 2017 as evidenced by the decrease of Cost to Income Ratio (CIR) from 48.5% in 2016 to 47.7% in 2017. Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report 4. Balance in Risk, Compliance Culture and Capital Adequacy The Bank will gradually make a shift in its loan portfolio, where previously focused on investment loans to balance the composition with working capital loans. The direction of the Bank is expected to result in a portfolio with better asset quality, greater fee income, and increased CASA through operational transaction accounts. In addition to maintain its capital adequacy, the Bank implemented RAROC to manage its loan portfolio. The Bank is also strengthening its risk platform by established Risk Control Units (RCU) in most business units as a means to enhance the existing Risk Culture. 5. Strengthening the Utilization of Technology and Information After successfully implementing cutting edge technologies for the new core banking system (1P), the Bank is seeking out opportunities to maximize the use of information technology. The use of information technology not only plays an important role in supporting the Bank’s business to become a leader in digital banking, but also creates automated systems for those processes that are still manually performed so as to allow employees to better focus on those business aspects that enhance the customer experience. 229
  230. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Marketing MARKETING STRATEGY AND BANK POSITION IN THE BANKING INDUSTRY . To deal with increasingly tight business competition and respond all challenges of changing markets, the Bank is required to continuously make innovations to improve services to its customers in accordance with the target markets. One main area is improving customer identification and customer deepening. Through these processes, the Bank is better able to understand customer needs and preferences, as well as the current state of business competition, and the business organization’s sensitivity to the current market challenges. Above efforts are done to encourage an effective and efficient marketing strategy so as the Bank to develop their business. The Bank remains consistent on implementation of established mid-term strategy, by focusing on the areas of Bank’s experts as a basis of Bank’s strengths, as well as prioritizing on financing in well-known sectors which in accordance with the Bank’s risk appetite. In addition to the funding sector, the Bank will continue to focus on increase of Low Cost Funding (CASA) as the main structure of Third Party Funds. In 2017, the Bank retained its position as the 5th largest bank in Indonesia in terms of assets. In expanding its business, the Bank focused on financing on Consumer segment, SME, and Tier 1 customers to support growth in Corporate Banking as the top priority. The growth of loan portfolios for the consumer segment is shown from the growth of Housing Loans (KPR), credit cards, and personal loans. As part of marketing strategy, analyses based on geographic coverage has been conducted to a number of potential areas in Indonesia. The program to increase brand awareness of CIMB Niaga Housing Loan (KPR) is conducted through a series of exhibitions, promotions and customer or 230 developer/property agent gatherings. As for credit card growth, the Bank continues to improve its brand image through promotions and partnerships tailored to the target market of credit card users of CIMB Niaga. Growth in the consumer segment was accomplished not only through acquiring new customers but also with cross product penetration as part of a deepening customer strategy. The growth of the loan portfolio for SMEs was focused on working capital growth by leveraging the customer base of the corporate segment, creating financing through the value chain scheme. In terms of collect the funds, Bank’s achievement on low cost funding (CASA) acquisition will be continued in the future through constant empowerment and continuously innovation on branchless banking services, as well as programs to accumulate savings through promotion events, partnerships with leading Companies for cross-selling opportunities and point redemption on partner debit card campaign, as well as many other innovative programs. As for the accumulation of demand deposits, the Bank prioritizes on BizChannel@CIMB E-Banking facilities which intended for Corporate and SME customers to facilitate their financial transactions and strives to make the Bank as the main operating account for its customers. Other initiatives on CASA collection are also achieved through customer deepening and cross selling. The Bank is focusing on CASA collection to generate a higher composition of CASA against total of third party funds. This give a capability for the Bank to compete in the industry by provide more competitive credit prices to its customers. With this strategy, the Bank believes that it will attract good quality customers so that credit distribution able to grow along with the quality of the assets that are maintained. Annual Report CIMB NIAGA 2017
  231. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report MARKET PENETRATION Market penetration is conducted by acquiring new customer base , customer deepening, financing and funding through the value chain, improving customer service to increase customer satisfaction, Launch innovative product and collaborating with merchant partners through attractive promotional and program schemes. INTEGRATION, SYNERGY AND ALLIANCE The synergy between business units also continuously developed to explore any opportunities through customer deepening from different business segments among existing customer bases, such as cross selling and value chain between business units within the Bank by offer products and services that can be expected to increase product holding per customer. The Bank will continue to emphasize the development and enhancement of digital banking in transactions, feature and capability as well as continue to increase the number of users. Some of advantages in developing digital banking are unlimited service speed regardless location and working hours which making it easier for its users, cost efficiency and corporate branding to reach a broader range through digital banking media. Cooperation and coordination among business units is an important aspect in driving product or service sales, as well as expanding customer networks. Coordination between business units such as the Transaction Banking Unit helps on connecting the chain between principals, distributors, suppliers for both financing and funding services. Meanwhile, cross product penetration is also conducted for retail products one of it is through CIMB@Work which offers products for Mortgage, Auto, Credit Card and Payroll for employees from Corporate segment. The Cross Selling Initiative was done for each customer in accordance to increase his/her product holding which is expected to increase customer engagement with the Bank. Synergy with subsidiary company PT CIMB Niaga Auto Finance (CNAF) was done in relation to consumer financing, where auto financing will focus on CNAF. Cooperation with CIMB Group also continues to improve linkages between products and optimizes regional synergies as an access to new markets. PRODUCT DEVELOPMENT The Bank also continues to create added value through various product innovations and banking services to provide the best service for our customers, and continuously innovate products, services and bundling product that tailored to the needs of consumers in a constant changing marketplace. In addition, both conventional and sharia-based services are thoroughly developed, through physical and digital channels. The continuous development of the features and capabilities of digital banking services for both retail and non-retail segments is expected to support the Bank’s aspiration to become a leader in digital banking and to support CASA enhancement strategy. Product innovation either for lending, fund-raising and digital banking development will continue to be developed to meet the needs of customers on speediness transactions and also offer a better customer experience. Annual Report CIMB NIAGA 2017 SERVICE EXCELLENCE The Bank is committed to continuously improving the level of service to its customers in order to enhance customer satisfaction. One concrete step taken by the Bank is by investing and continuous innovations on digital banking technology, as well as service improvement and branchless banking include ATMs and CDMs. All the efforts were part of Bank’s commitment to be one of the front runners in digital banking services. 231
  232. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management MARKETING MARKETING EXPENSES In terms of marketing expenses , the Bank will continue its efforts in cost efficiency, one of which is by smart spending. Some of the initiatives taken are as follows: 1. Focus on digital and social media. 2. Bankwide events and sponsorships. 3. Integrated programs in advertising such as: a. MASA 2.0 b. Xtra Xpo c. Seasonal campaign In addition, in terms of media of communication, several important initiatives have been taken including using digital and social media in an integrated way so as to reduce costs per contact. In 2017, CIMB Niaga social media is a communication channel that actively plays an important role in delivering CIMB Niaga’s information, services and products as well as in responding to customer complaints. As for traditional media, the optimization of total number and location of billboards is on-going. In implementing the strategies mentioned above, CIMB Niaga incurred Rp254 billion in marketing expenses in 2017. This expense declined 7.0% compared to the Rp273 billion in 2016. However according to BBRM research conducted by Niesen Indonesia, the brand performance of CIMB Niaga managed to gain a higher Top Of Mind (TOM) score from 2% in 2016 to 4% in2017. In 2018, CIMB Niaga continues to improve and optimize the use of digital channels for promotional activities. 232 PROMOTION Promotion plays a very important role for the Bank in executing its communication strategies so as to allow customers to obtain relevant information about its products and services. In its communication, at all times the Bank conveys information via integrated marketing communication. Integrated marketing communication campaigns, both in the form of products and services, are broadcast and disseminated above the line (ATL) through traditional media such as television, radio, out of home media channels, as well as digital media such as Youtube ads, Facebook ads and Google Display Network. Ground activation such as corporate event sales marketing and the opening of booths on certain occasions also represents one of the below the line (BTL) communication methods. The Bank also optimizes the use of its own media such as ATM channels, posters, websites and all social media accounts. Further, it is considered crucial for the Bank to educate its employees so that all CIMB Niaga staff have understanding concerning the products and services campaigns. Internal strategies are executed by using integrated email blasts, desktop wallpaper, and internal magazines that are distributed to all branches in Indonesia. Annual Report CIMB NIAGA 2017
  233. Supporting Business Review Corporate Governance Report Corporate Social Responsibility From early 2017 , CIMB Niaga started to communicate its newest brand promise, FORWARD, which is the transformation of the previous promise brand “Innovation from the Heart”. Through the FORWARD brand promise, CIMB Niaga expects to become an entity considered an enabler in realizing the hopes and dreams of the people of Indonesia. FORWARD is expected to be a positive brand campaign in all segments of the community such as entrepreneur world, young people in reaching their aspirations, young families who want to provide the best for their children, as well as those who are well established and intend to enjoy the best facilities from CIMB Niaga. In harmony with the spirit of FORWARD brand promise, in mid-2017, CIMB Niaga initiated the social movement which is #KejarMimpi aimed at inviting the young generation of Indonesia to continue achieving their dreams with energy. Various activities of Kejar Mimpi are conducted in cooperation with Corporate Social Responsibility (CSR) and Community Segment. In collaboration with CSR, such movement represents CIMB Niaga’s actual efforts to build the country by supporting and helping to realize the dreams of Indonesians through activities such as school and university visits throughout Indonesia to share Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report knowledge, scholarship programs both local and overseas, program of one million books, and the Let’s Save and Share program. Furthermore, the Kejar Mimpi movement also gave birth to a great idea in the form of the Dream House development in Bajawa, East Nusa Tenggara, which aims to be a center of learning and art, so that people can learn, socialize and have their own community. Collaboration of the Kejar Mimpi movement with the Community Segment Group is conducted in the form of Leaders Camp held at universities in Indonesia. Leaders Camp activity aims to build positive character in the youth through the development of soft skills, character, mindset, critical thinking learning and willingness to take real action to build the nation. All corporate communications activities are currently managed and controlled by sub-directorate of Marketing, Brand & Communication. MARKET SHARE In 2017, CIMB Niaga’s market share in terms of assets was at 3.7%, Third Party Funds at 3.6%, Low Cost Funding (CASA) at 3.4%, while Credits distributed reached 4.0%. With these achievements, CIMB Niaga strengthened its position as the fifth largest bank in terms of Assets in Indonesia. 233
  234. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Risk Management Throughout 2017 , the focus of CIMB Niaga was on developing risk management infrastructure and improving the risk awareness culture to establish effective and efficient risk management processes. This foundation supports the Bank’s objectives of maximizing shareholder value, managing capital in a comprehensive manner, and ensuring profitability and sustainable business growth. RISK MANAGEMENT FOCUS IN 2017 Throughout 2017, focus of CIMB Niaga risk management development was on: a. Developing risk management infrastructure, such as: -­­Developing and enhancing the “front to back” credit risk infrastructure, from the Loan Origination System, the credit scoring/ rating system, to the system used to calculate Risk Weighted Assets by using standardized and Internal Rating Based (IRB) approaches. 234 ­-­­ Developing and enhancing a comprehensive ALM system, supporting the calculation of the LCR (Liquidity Coverage Ratio) and Net Stable Funding Ratio (NSFR) on a daily basis. ­-­­­Establishing the Significant Change Assessment Process (SCAP) Policy and Procedure as governance related to the mitigation of operational risks given changes in those internal processes that have a significant impact on the Bank’s operational activities. Annual Report CIMB NIAGA 2017
  235. Supporting Business Review Corporate Governance Report Corporate Social Responsibility ­-­­­Implementing system support for the integrated risk profile reporting process as connected to all Financial Institution members of the CIMB Indonesia Financial Conglomerate. b.Strengthening the risk management culture through: ­- Monitoring commitment to make improvements on existing issues through the Operational Risk Management Committee mechanism, a Key Performance Indicator in the business support line. - Outsourcing the Whistleblowing Process, aiming to improve transparency and independence of disclosure, and create openness from staff related to indications of fraud. Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report - Establishing the Bankwide Risk-Based KRI as periodically monitored by the Operational Risk Management Committee with risk limits set in a more conservative manner. The trend showed significant improvements throughout 2017. - Introducing the concept of Self-Raise Ratio (SRR) as one risk awareness indicator for each unit. -Organizing Basel Training for senior management as well as other Basel related training, such as Modelling, Scorecards, and LCR. - Organizing e-Learning related to operational risk awareness as mandatory for all employees as well as other training related to risk management. 235
  236. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT c . Improve capitalization optimization by: - Providing input to business/finance for RWA ­ optimization. - Implementing and developing the RAROC ­ (Risk Adjusted Return on Capital) Calculator, an estimation tool to calculate revenues compared to the risk taken based on internal credit rating to assist the business units. - Optimizing the calculation of Risk Weighted ­ Assets (RWA) by enhancing the application to calculate the Credit Risk RWA with the Credit Risk Standardized Approach (CRISTA) as well as improving the quality of data input. d. Strengthening the benchmarking of Risk Appetite, enabling Risk Appetite and Risk Posture to become instruments for senior management to monitor risk management processes. One example of this is through the operationalization of the Appetite Sector through the RAC (Risk Acceptance Criteria) Sector and Champion Sector. e.Strengthening data governance to improve data quality and data integrity is crucial in risk management. f. Improving the risk management process, by: - Conducting reviews and updates on credit ­ related policies such as the Counterparty Credit Policy, Commercial Credit Policy, and policies for the SME loan program. -Conducting ­ reviews and methodology adjustments for liquidity risk, in line with the Basel III stipulations. -­ Completing end-to-end credit review processes (Tanggul Project). -­ Improving Stress Testing Policy. -­ Increasing market risk management practice. 236 g. Improving quality of risk management in the Sharia Business Unit (UUS) by enhancing the quality of UUS portfolio profiling, making adjustments to the policies and procedures, risk monitoring processes through risk profiles that have been adjusted to the business characteristics of sharia banking, as well as improving the quality of Human Resources (HR). h. Improving the quality of risk management in the Subsidiaries and Affiliates, particularly related to integrated risk management in the CIMB Indonesia Financial Conglomerate. RISK MANAGEMENT IMPLEMENTATION The Risk Management process is an essential part of operational activities and decision-making processes in the achievement of business objectives. Risk management is conducted actively with the aim of maximizing shareholder value, managing capital in a comprehensive manner, and ensuring profitability and sustainable business growth. In order to achieve an optimum rate of return, the Bank implements the Enterprise Wide Risk Management (EWRM) framework to manage risk in an integrated manner by aligning risk appetites with business strategies. This framework allows the Board of Directors and Senior Management to anticipate and manage existing risks and risks that may emerge in the future, by taking into account the Bank’s risk profile, which may be affected by changes in the Bank’s business strategy, changes in regulations, and to the business environment. In addition, CIMB Niaga prepares risk mitigation measures to ensure that risk exposure is balanced within the established risk appetite. The level of risk will be monitored periodically, and the overall risk management process is executed based on the application of Good Corporate Governance principles. Annual Report CIMB NIAGA 2017
  237. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Enterprise Wide Risk Management Framework Governance & Organization Risk Appetite Risk Management Process Business Planning Risk Identification Risk Policies, Procedures and Methodologies Measure and Assess Manage and Control People Monitor and Report Technology and Data Risk Management Infrastructure Risk Culture GOVERNANCE & ORGANIZATION In risk management, the corporate governance structure is required to improve the four eyes mechanism and transparency in the whole risk management process, allowing an effective and consistent EWRM implementation. The Board of Directors is responsible for the Bank’s risk management activities, determining the strategic direction, risk appetite, and the relevant framework for the Bank. In order to ensure the effectiveness of EWRM Framework implementation, the Board of Directors is assisted by risk committees and control functions. The risk management process is evaluated by the Risk Management Committee (RMC), which is responsible for the overall risk management framework implementation. The Committee is chaired by the President Director and is composed of the entire Board of Directors and several executive officers. The RMC is responsible directly to the Board of Directors and indirectly to the Board of Commissioners through the Risk Oversight Committee (KIPER), which also works together with the Audit Committee and the Nomination and Remuneration Committee. In addition to the RMC, there are certain executive Committees which discuss risks in detail, including: the Asset Liability Committee (ALCO) to manage liquidity risk and interest rates in the banking book, the Operational Risk Committee (ORC) to manage operational risk, the Credit Policy Committee (CPC) to discuss policies related to credit, and the Capital Management Committee (CMC) to manage capital risks. Annual Report CIMB NIAGA 2017 237
  238. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT Executive Committee Governance Board of Directors Board of Commissioners CGC Executive Committee RMC ALCO ITSC CPC ORC CMC Nomination Renumeration Committee Audit Committee Business Committee BDC PPC MARCOM Credit Co CIC Executive Committees : Business Committees: RMC :Risk Management Committee ALCO:Assets and Liabilities Committee ITSC :IT Steering Committee CPC :Credit Policy Committee ORC :Operational Risk Committee CMC :Capital Management Committee BDC DC DGC Risk Oversight Committee Joint Co: CGC :Corporate :Business Development Governance Committee Committee PPC :Personnel Policy Committee MARCOM :Marketing & Communication Committee Credit Committees :includes NPL Committee, Asset Quality Committee CIC :Capital Investment Committee :Disciplinary Committee DC DGC :Data Governance Committee RISK APPETITE Risk appetite is one of the main components of EWRM, defined as the type and amount of risk that is able and willing to be accepted by the Bank in pursuit of its strategic and business objectives. Risk appetite is set in conjunction with the Bank’s annual planning process to appropriately align with the strategy, business growth aspirations, capital and liquidity positions, and the capabilities and strength of the Bank’s risk management. CIMB Niaga will always strive to ensure that the system, capability, and risk control are sufficient and effective to support the risk appetite through accurate risk identification and measurement. There are 4 (four) dimensional measurements in the Bank risk appetite, namely: solvency and capital, earnings diversification and volatility, liquidity, and franchise. The aim is to enable the Bank to maximize its long-term performance and to ensure asset integrity 238 and earnings quality, as well as to protect the franchise value of the Bank. Within each dimension, the risk limits are defined as specific boundaries concerning capital, asset quality, liquidity, funding capacity, and regulation. In 2017, the Bank updated several matrices/parameters in order to improve the Bank’s key financial parameter/ ratio monitoring. In addition, since 2015, the Bank has established the Red-Amber-Green (RAG) threshold for each RAS matrix/parameter. The RAG is applied to RAS reporting, in which the status of each indicator can be highlighted to the management, allowing improvement steps to be taken in a timely way. The RAS parameters and the Red-Amber-Green (RAG) threshold are reviewed periodically. Annual Report CIMB NIAGA 2017
  239. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report RISK MANAGEMENT PROCESS The appropriate risk management process will be able to manage inherent risks of the Bank ’s activities which aim to provide maximum sustainable added value to all Bank activities. The risk management process can be described as follows: BUSINESS PLANNING Risk is a crucial part to be considered on business planning process, including risk appetite setting, risk posture and new products and activities planning. It is conducted to assist ensuring the Bank operates aligned with the risk appetite as determined by the Board of Directors. • RISK IDENTIFICATION RISK MEASUREMENT AND ASSESSMENT Risk identification process is conducted by analyzing risk characteristics in each Bank product and business activity. • 2 (two) approaches to identify risks are: risk profile assessment (methodology standard required by regulators) and Risk Assessment (Bank internal process). • Risk identification is conducted by considering both financial and non-financial impacts such as reputation and regulatory compliance. • There are 9 (nine) types of major risks managed by the Bank namely credit, market, liquidity, operational, strategic, compliance, legal, reputation and interest rate risk on banking book. • In addition, CIMB Niaga also manages other risks such as capital risk, intragroup transaction, rate of return and investment. • Risk measurement is conducted through determining risk rating, risk scoring, sensitivity analysis, stress testing and capital requirement calculations using methodologies which refer to industry best practices and guideline set by regulators. • Periodically, the Bank reviews assumptions, data sources, methodologies and procedures in risk measurement, and the alignment between the Bank’s risk appetite and limit setting, changes in the business environment and market conditions and regulations. • • RISK MANAGEMENT AND CONTROL RISK MONITORING AND REPORTING Annual Report CIMB NIAGA 2017 • • • • The Bank determines and manages which risks will be accepted, treated, transferred or avoided. Risk control aims to reduce risk to a manageable level. In determining risk mitigation options, the Bank considers: benefit and cost alignment, value and perception from all stakeholders as well as evaluation whether the risk mitigation chosen could lead to new risk. Risk control strategies or mitigation options are conducted through limit setting, action triggers and early warning indicators. The Bank has an internal control system as part of oversight mechanism. The internal control system is evaluated and assessed by Internal Audit (SKAI) and/or independent external parties. Risk monitoring and reporting aims to evaluate risk exposures and improve reporting processes. Risk monitoring results can be used to further analyze risk management strategies. The Bank monitoring process is supported by an adequate reporting system which at least includes report or information regarding the following matters: - The overall risk exposure that includes the exposure for each risk and activity type. ­- Compliance to policies, procedures and limit setting. ­- Actual results of risk management compared with the objectives and targets. 239
  240. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT Organizational Structure of Risk Management Unit (SKMR) President Director Risk Management Diretcor Head of Operational Risk Management Head of Risk Analytics & Infrastructure Market Risk Management Head ALM Risk Head Retail Credit Risk Management Head Head of Basel Head of Credit Assurance Testing RISK MANAGEMENT INFRASTRUCTURE The main purposes of an effective risk management infrastructure are to: • Provide an integrated organization-wide view of risks. • Reduce inefficiencies and inherent risks such as human error. • Drive consistent risk treatment across all units. • Create “risk aware” thinking and decision making at every level. • Enable appropriate risk information flow upward, downward, and across all units. Policies, Procedures, and Methodologies The Bank’s policies, procedures, and methodologies include all operational activities in order to provide clear direction and guidance to employees in performing their activities, particularly related to risk management. These policies and procedures were established by considering the risks and work efficiency for employees. An adequate risk management policy is the basis for the Bank to manage risks. Procedures serve as the guidelines for daily risk taking activities. In establishing the procedures and risk limits, the Bank has to take into consideration the risk appetite based on the experience it has in managing risk, the capital condition of the Bank, and reporting systems in the event of a breach. The methodology provides specific guidance, rules, and criteria that must be fulfilled to comply with policy. Taxonomy Policies and Procedures Contains corporate identity, corporate governance structure, and corporate policy manual. Manual Frameworks Policy are part of the Corporate Policy Manual. Contains “acceptance criteria”, limits and principles, matters that should and should not be executed related to products & activities and delegation of authority policy which is based on the Company Basic Policy and applicable external regulations. Contains operating procedures (from beginning to end) for product/specific activity, control mechanisms, person in charge and agreed service standards. Written guidelines that describe a complete and detailed product/specific activity. Policies may be consolidated with applicable, approved SOPs into one document which is intended to facilitate the implementation of an activity. 240 Bank’s Principle Policy Level 1 Product Policy and Activities Level 2 Standard Operating Procedures (SOP) Level 3 Operational Instructions Level 4 Annual Report CIMB NIAGA 2017
  241. Supporting Business Review Corporate Governance Report Corporate Social Responsibility People In relation to the implementation of EWRM , SKMR acts as an independent unit responsible for establishing a comprehensive process of identifying, measuring, monitoring and controlling risks, as well as reporting risk levels. In addition, SKMR also performs the coordination and socialization function of all risk management processes in the Bank. Therefore, it is important to engage talent with appropriate skills and expertise to ensure proper implementation of the EWRM framework. The Bank develops employee recruitment, employee development, and training systems, as well as remuneration that encourage employees to manage risk properly. Performance measurement and compensation are aligned with the strategic plan and risk appetite. The Bank establishes clear qualifications for employees at every position level related to risk management implementation and places qualified executives and staff in Risk Management Units, in accordance with the Bank’s size and business complexity. CIMB Niaga seeks to provide opportunities for employees to improve their knowledge of risk management, among others by holding lunch and learning sessions, where each unit in SKMR presents their methodology, processes, and ongoing projects to other units in the SKMR, as well as other related units, such as Strategy and Finance Directorate, Internal Audit Unit, and Credit Directorate. In addition, employees participate in internal and external training (including mandatory training required by regulators) related to their respective fields. Employees are also encouraged to regularly conduct BLS (Business Learning Session), in which employees who recently attended training conduct sharing sessions with their colleagues. The Bank also provides job rotation opportunities to employees, which aim to enrich the employees’ knowledge and to expand the employees’ exposure to other areas. Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report Technology and Data The risk management information system is part of the Bank’s management information system, which is continuously developed according to Bank needs. This information system is required as a supporting tool for a proper and accountable decision-making process in order to manage risks in an effective and efficient manner. The Bank has a risk management information system that ensures: a. an accurate, informative, and timely measurement of risk exposures, both overall or composite risk exposures and exposure by risk type that are inherent in the Bank’s operations, as well as risk exposures for each of the Bank’s functional activities; b. compliance to policies, procedures, and risk limits; c.Availability of comparison between the result (realization) of risk management and targets set by the Bank, in accordance with risk management policies and strategy. The information system should be able to generate reports that are used for continuous risk monitoring to quickly detect and correct the policy or procedure deviation in order to reduce risk occurrences. SKMR is developing centralized data management, particularly data required for risk analysis. All data from various sources needed for risk analysis are consolidated in a risk data mart. The process of obtaining data from multiple data sources to the datamart, up to generating reports that are used for risk monitoring is conducted automatically. As a result, risk monitoring can be performed in an effective and efficient manner. Consolidated data in the risk data mart can also be used for model development. With the data readily available in the risk data mart, the SKMR is able to develop models faster and become aligned with the pace of business changes. More accurate models can be used for portfolio management, ultimately improving the Bank’s asset quality. 241
  242. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT RISK CULTURE CIMB Niaga recognizes that a strong risk management culture is the main foundation in supporting the Bank to achieve its objectives and targets . Risk culture is an integral part of the business process and operational activities, as well as decision-making. The risk culture reflects the shared awareness, attitudes, and behavior of all employees toward risks in the Bank. In order to establish a strong risk culture, both the Board of Directors and employees are constantly required to focus on and consider risk within all activities, and encourage the paradigm and behavior that enables an effective risk management process. Some of the key elements to create a good risk culture in CIMB Niaga are: 1.Tone from the top related to leadership and strategy in terms of ethics and values as well as communicating the Bank mission and goals in synergy and a sustainable manner. 2.People and Communication by focusing on enhancing competence through evenly distributed information and knowledge sharing. 3.Accountability and Reinforcement, assignment of roles and responsibilities accompanied by appropriate performance assessments, including rewards for good performance. 4. Risk Management and Infrastructure, to establish effective risk management processes and controls that support Bank strategy. 242 One substantial indication of the Bank’s efforts to establish a risk culture is the inclusion of Risk Management as one Key Performance Indicator (KPI) for business and support units. Various activities to improve the risk and fraud awareness culture are consistently being conducted, such as continuous Anti Fraud and Operational Awareness training and socialization. Risk awareness culture is also based on the three lines of defense philosophy that connects all risk management activities from identification, assessment, control, and reporting to senior management, Board of Directors and Board of Commissioners. The Board of Commissioners and Board of Directors are responsible for developing an organizational culture that is risk aware and developing a commitment to manage operational risk in accordance with Bank business strategies. Overall, the Board of Directors is responsible for ensuring proper oversight of the Bank risks. The Board of Commissioners and Board of Directors have established the risk appetite and risk tolerance levels to be consistent and in line with the Bank’s business objectives and the expected risk profile. Annual Report CIMB NIAGA 2017
  243. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report THREE LINES OF DEFENSE CIMB Niaga implements a risk management process that involves all levels of the organization from the Board of Directors , senior management, to all employees in the Bank. The Board of Commissioners and Board of Directors are responsible to develop a “risk aware” organization culture and encourage commitment in risk management aligned with Bank business strategy. Through the Three Lines of Defense philosophy, risks are managed starting from the activity of risk taking. This is to ensure clear responsibility for risks taken across organizational units and risk management as business unit enablers. In practice, the Bank maintains Three Lines of Defense philosophy, namely: Is independent in ensuring risk management framework and risk management 3 Line rd 2nd Line is carried out effectively through periodic reports to the Board of Directors. Audit Unit Risk Management Unit Compliance Unit Anti Fraud Unit Establishing standards and policies to manage risk. Risk Management is responsible for developing and maintaining policies and application to management. In facing daily risk, the units are required to manage 1st Line Line Management: Risk Taking Units (Business & Support Units) risk and ensure compliance with regulations, standards, policies and procedures. Their function includes identifying, measuring, monitoring, controlling and reporting risks and takes steps needed to mitigate the risk. ANTI FRAUD MANAGEMENT In accordance with Bank Indonesia Circular Letter No.13/28/DPNP in 2011, regarding Anti-Fraud Strategy Implementation for Commercial Banks, CIMB Niaga has established a special Anti Fraud Management (AFM) unit to conduct bankwide antifraud strategy implementation. The Bank’s anti fraud strategy is includes a fraud control system applied by using tools which are the interpretation of 4 (four) interrelated anti-fraud pillars, namely: Prevention Detection Investigation Monitoring 1. Prevention: the fraud control system contains preventive actions in order to reduce the potential for fraud. 2. Detection: the fraud control system contains means of fraud identification and detection in Bank business activities. 3. Investigation: the fraud control system contains information gathering (investigation), reporting system, and imposition of sanctions for fraud in Bank business activities. Annual Report CIMB NIAGA 2017 243
  244. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT 4 .Monitoring: the fraud control system contains measures to monitor, evaluate, and follow-up as corrective measures on incidents of fraud in Bank business activities. CIMB Niaga is committed to prevent fraudulent practice and take immediate action on potential fraud incidents to mitigate both financial and nonfinancial losses, such as negative publicity and loss of public trust in the Bank. CIMB Niaga requires all members of the Board of Commissioners and Board of Directors, and employees to act honestly with integrity and high professionalism, and to actively participate in measures to protect and safeguard the Bank’s assets and customer funds, while complying with the applicable internal and external regulations. Zero Tolerance for Fraud In carrying out the anti- fraud management program, CIMB Niaga is committed to zero tolerance against actions and perpetrators of fraud. In addition, the Bank also recognizes that developing an anti-fraud culture is an important step, in which fraud risks awareness and clear and strict sanctions are expected to foster the values and integrity expected by the Bank. One of the programs to develop an anti-fraud culture and fraud awareness for employees is by providing education to all employees through mandatory training programs for both new and existing employees implemented on an on-going basis, leader coordination meetings, sharing sessions, anti fraud campaigns, email blasts and internal bulletins, to provide constant reminders to employees to maintain Bank’s values and high integrity, as well as to carry out duties in accordance with the policies and procedures in an effort to mitigate risk of fraud. The Anti-Fraud Campaign is a program for internal employees to create bonds between employees and the Bank, and 244 is expected to improve employees’ sense of belonging toward the Bank and joint efforts to combat fraud. CIMB Niaga realizes the potential of fraud from both internal and external parties using familiar or unfamiliar methods to steal the Bank’s or customers’ assets via Bank infrastructure. Through discipline in carrying out policies and procedures, preventive measures and early detection can be followed up to prevent the Bank or customer losses in the future. To increase awareness, CIMB Niaga also conducts policy socialization to all employees, detailing that the consequences for employees proven to have committed fraud are strict, such as Termination of Employment (PHK) and being reported to the Financial Services Authority (OJK) and police (if necessary). Another important step required to implement the antifraud strategy is by improving supervisory oversight, namely by implementing “Know Your Employee”, that is, inherent supervision from supervisor to the subordinates to ensure the implementation of policies and procedures is consistent, disciplined and under control. CIMB Niaga implements a compliance culture in which each individual is encouraged to be disciplined and consistently adhere to policies and procedures to mitigate the risk of fraud inherent in each activity, as well as minimizing opportunities that could potentially lead to fraud. Monitoring and oversight as well as a consistent compliance culture can avoid allowing any opportunity of fraud where superiors are aware of significant changes in behavior and lifestyle of their employees. Another aspect of “Know Your Employee” is the precautionary principle in recruitment and Annual Report CIMB NIAGA 2017
  245. Supporting Business Review Corporate Governance Report Corporate Social Responsibility selection process , through background checking in order to validate and to ensure candidates have high integrity and good backgrounds. To encourage the adoption of a speak- up culture, where each individual can report fraud-indicated violations, CIMB Niaga has a whistleblowing mechanism that is part of the detection pillar, as a reporting tool while maintaining the confidentiality of the complainant and the person who is being reported. Detection conducted through regular audits and ‘surprise’ audits, surveillance systems through audits based on data analysis, monitoring of suspicious transactions and suspicious customer profiles in the context of antimoney laundering and terrorism financing prevention (AML-TFP), establishing transaction limits, as well as leveraging the existing infrastructure to detect fraud at an early stage. With an effective detection function, indications of fraud can be revealed faster, thus mitigation action to contain the risks can be expedited. Meanwhile through investigation functions, the Bank is able to explore and identify the causes and modus operandi of fraud perpetrators to determine the financial and non-financial follow-up measures to be taken. CIMB Niaga also conducts monitoring, evaluation, and follow-up as fraud corrective action in order to prevent similar cases from reoccurring and submitting comprehensive reports to management and regulators. Others Corporate Data Consolidated Financial Report Commissioners. As part of management oversight, the Board of Directors and the Board of Commissioners conduct periodic reviews on the implementation of anti-fraud strategy, as well as take strategic measures required to mitigate risk of fraud for sound and reliable Bank performance sustainability. ICAAP (INTERNAL CAPITAL ADEQUACY ASSESSMENT PROCESS) In line with OJK Regulation No. 34/POJK.03/2016 regarding the Minimum Capital Requirement for Commercial Banks, the Bank must have an appropriate process in place to ensure capital adequacy according to a bank’s risk profile and the establishment of a strategy to maintain capital level, referred to the ICAAP (Internal Capital Adequacy Assessment Process). This is an internal process that ensures a bank has adequate capital resources in the long term to cover all risks considered material. The ICAAP process is conducted through the measurement implementation based on best practices, regulation, and policies to assess, fulfill, monitor, and maintain an adequate level of capital, in accordance with the risk profile, connection to the Bank’s strategic focus and business plans, and macroeconomic conditions. In this process, the Bank’s capital adequacy is assessed by considering not only Pillar 1 risks but also other-than-Pillar 1 risks, allowing for a more comprehensive risk identification process. ICAAP is jointly conducted between SKMR and the Strategy and Finance Directorate. Proper implementation of the CIMB Niaga anti-fraud program involves and is the responsibility of each individual in the Bank, from employees up to senior management, the Board of Directors, and the Board of Annual Report CIMB NIAGA 2017 245
  246. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT As part of ICAAP implementation , CIMB Niaga strives to strengthen the link between the establishment of strategies, capital adequacy assessment and risk levels, as illustrated in the following diagram: 1 Strategy 6 Capital Management & Planning 2 5 3 Risk Posture Stress Test Annual Budget 4 Risk Appetite As part of the process of defining the Bank’s strategy, the Board of Commissioners set risk posture as the direction for the business units on the acceptable level of risk, taking into account external and internal conditions as well as the Bank’s capabilities and limitations. The risk posture provides a qualitative direction in the early stage of the annual planning on risk level and risk posture for the coming year. The risk posture thus serves as a process that bridges the acceptable level of risk with the strategy-setting process as reflected in the annual budget setting. Furthermore, CIMB Niaga formulates the Risk Appetite in accordance with a pre-approved strategy. The Bank’s risk appetite not only considers growth, income and commercial aspirations, but also the capital and liquidity position, as well as the capabilities and strengths of risk management, including risk systems, processes and people. In addition, the Risk appetite is very dynamic and evolves in response to changes in commercial priorities, risk management capabilities, and external conditions. The Risk Appetite is monitored regularly by the Red Amber Green (RAG) indicator, which serves as an early warning signal for the Bank’s business strategies realization. 246 CIMB Niaga carries out stress tests on the budget to assess and evaluate the Bank’s resistance level against extreme but plausible economic scenario. Stress testing is performed on a regular basis, minimum twice a year or more frequently as needed. Conducting stress tests also provides a better understanding for the Bank in evaluating how its portfolio may be negatively affected by macro economic changes, enabling the Bank to prepare appropriate actions to overcome the situation. This process also allows the Bank to assess the adequacy of liquidity reserves and the ability to meet its minimum capital adequacy ratio to support business growth and absorb shocks arising from various scenarios. Subsequently, the Bank is able to plan and manage its capital better. The result of the stress test subsequently becomes a consideration in capital management and the planning process that aims to maintain an efficient capital structure. The processes of capital management include capital planning, capital target setting, capital raising, capital buffer management and contingency capital planning. Annual Report CIMB NIAGA 2017
  247. Supporting Business Review Corporate Governance Report Corporate Social Responsibility The Bank ’s capital is measured and monitored on an ongoing basis to ensure that capital is at an adequate level to meet regulatory minimum requirements, as well as to support risk taking activities in daily business operations, while considering the Bank’s growth and expansion plans. CIMB Niaga refers to regulations, particularly regarding to Pillar 1 risk, in calculating capital adequacy for credit risk, market risk, and operational risk. Actions taken by the Bank to perform oversight on capital adequacy are to: • Determine the capital trigger ratio or a minimum limit of the capital adequacy (KPMM) ratio in which the Bank starts to activate the capital contingency plan. • Establish annual internal capital targets taking into account minimum capital requirements, business growth plans, corporate actions, significant events, and capital reserve to ensure that Bank capital is maintained at a safe and optimal level. • Perform a periodic capital rolling forecast and compare to actual capital, for the short, medium, and long term period, to be able to conduct comprehensive capital supervision and proper planning of capital strategy. Since 2016, CIMB Niaga has implemented a risk-based performance assessment, in which the profitability of each business unit is measured by considering the risks taken and the amount of capital used. Implementation of a risk-based performance assessment will assist the Bank in conducting comparative performance reviews between different business units. In 2018, the Bank will still focus on developing and refining the methodology used for the risk-based performance assessment. Others Corporate Data Consolidated Financial Report SHARIA (UUS) RISK MANAGEMENT The Sharia Business Unit (UUS) is operated by applying the Dual Banking Leverage Model (DBLM), including the application of risk management. The Bank established the risk management infrastructure and implements governance in line with the DBLM concept, as well as being in accordance with applicable sharia principles. In terms of organizational structure, the Risk Management Unit (SKMR) of UUS is part of conventional Risk Management Unit (SKMR). Within the Risk Management Unit, a dedicated unit is appointed as coordinator to implement risk management in UUS. Risk management policy for UUS is prepared as part of the Bank’s risk management policy. Meanwhile, UUS risk management procedure is prepared in line with UUS needs and operational complexity level. The identification and risk assessment processes are performed by periodically applying methodologies that is appropriate for the sharia-banking concept through UUS risk profile measurement. Risk measurement conducted includes in those areas that specifically apply to sharia banking, such as rate of return risk and investment risk. Risk monitoring is conducted by the Risk Management Committee at the level of the Board of Directors, where the Sharia Banking Director is also a member of the Committee. Risk monitoring results are also reported to the Board of Commissioners through the Risk Oversight Committee (KIPER). In terms of risk management compliance to sharia principles, the Sharia Business Unit has the Sharia Supervisory Board (DPS), which provides approvals regarding sharia principle compliance for policies, procedures, systems and products, and contracts as well as conducts monitoring via sampling on sharia banking transactions. For sharia principle approvals, the DPS is supported by certain units to carry out its operational functions, namely the Sharia Advisory Group, whose main task is to provide advice to the DPS regarding the fulfillment Annual Report CIMB NIAGA 2017 247
  248. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT of sharia principles on policies , procedures, products, systems, and contracts. Sampling supervision on banking transactions is performed by Sharia Risk Control Unit (RCU) Group, which has primary responsibility to assist the DPS in performing the sharia compliance review on transactions and product implementation as well as the preparation of DPS Monitoring Reports for regulators. The RCU established in the UUS supported the Bank’s management decision to establish an RCU in all directorates as part of the first line of defense. UUS RCU is responsible to ensure all activities comply with relevant regulations and that operational risks are well managed. In terms of the implementation, active coordination is conducted with Compliance Directorate, Risk Management Directorate, Anti-Fraud Management Unit, and other units related to policies and procedures, as well as other RCU units to support risk culture awareness and compliance culture in UUS. In order to improve risk management implementation in UUS, the SKMR also presents a UUS risk profile in the DPS meetings. In addition, the Bank strives to improve sharia banking concept understanding of its employees through continuous socialization and training. BANK AND CONSOLIDATED RISK PROFILE In accordance to OJK regulation No. 18/POJK.03/2016 regarding the Implementation of Risk Management for Commercial Banks and OJK Regulation No. 38/POJK.03/2017 regarding the Implementation of Consolidated Risk Management for Banks that Conduct Control of a Subsidiary, CIMB Niaga performs assessment on its risk profile to be reported to regulators on a quarterly basis. Risk profile assessments are conducted based on regulation, in which the parameters used to assess risks use not only historical data but also forward looking by considering Bank business strategy and macro-economic conditions. 248 INTEGRATED RISK MANAGEMENT In line with the issuance of OJK Regulation No. 17/ POJK.03/2014 regarding the Implementation of Integrated Risk Management for Financial Conglomerations, CIMB Niaga has been assigned as the Principle Entity to coordinate on integrated risk management processes with its Subsidiary (CIMB Niaga Auto Finance (CNAF)) and Affiliated Companies (CIMB Securities Indonesia and CIMB Principal Asset Management) incorporated in the CIMB Indonesia Financial Conglomerate (FC). This is also one of the Risk Management Unit strategic initiatives and is a key focus for Bank management. It is considered important due to the exposure from risks arising from subsidiary and affiliated companies that may affect the Bank’s business operational continuity, either directly or indirectly. Risk management process integration is carried out by taking into account the differences in business characteristics of the Affiliated companies, the Subsidiary and CIMB Niaga. The risk management integration process includes mentoring and aligning risk management practices in terms of risk governance, risk management policies and procedures, risk management reporting, and improvement of risk awareness culture. In an integrated manner, CIMB Niaga manages nine (9) types of risks: credit, market, liquidity, operational, strategic, reputation, legal, compliance, and intragroup transaction. Monitoring of risk management is carried out by Risk Management Units of each entity to be reported to the Principle Entity’s Risk Management Unit. The monitoring and evaluation process of risk exposure of Subsidiary and Affiliated Companies is conducted by the Integrated Risk Management Committee (IRMC) and reported to the Principle Entity, through Principle Entity’s Risk Management Committee (RMC). The IRMC consists of director representatives from each entity within the conglomerate. In the monitoring and evaluation process, the Committee mainly focuses on the Subsidiary and Affiliated Companies risk exposure for the improvement of risk management processes in the future. Annual Report CIMB NIAGA 2017
  249. Supporting Business Review Corporate Governance Report Corporate Social Responsibility In 2017 , CIMB Niaga developed a technology-based information system, namely the CIMB Integrated Reporting System (CIRS) to provide data and information in integrated risk profile assessment process that is connected with the Subsidiary and Affiliated Companies in the CIMB Indonesia Financial Conglomerate. This system is expected to reduce manual process and potential human error, subsequently improving data and information accuracy as well as the timeliness of reporting process. Others Corporate Data Consolidated Financial Report Based on December 2017 position, CIMB Niaga has conducted an integrated risk profile self-assessment with the conclusion that the financial conglomerate’s risk profile is at a low to moderate level and has an adequate quality of risk management in accordance with the business complexities. IMPLEMENTATION OF BASEL II AND BASEL III Since 2015, CIMB Niaga has fundamentally strengthened its risk management function by implementing Basel II and III projects, consisting of five (5) work streams: Credit Risk, Operational Risk, Market Risk, Asset Liability Management, and Internal Capital Adequacy Assessment Process (ICAAP). The implementation of the work streams is expected to be completed in 2018. 2016 - 2018 Credit Ratio Operasional Risk ALM Risk • Credit Model (Non Retail): Specialized Lending Slotting Criteria, Bank and Corporate Risk Rating Model. • Credit Model (Retail) A-Score, B-Score, PD, LGD and EAD: Credit Card, Auto Loan, Personal Loan, Mortgage and SME Retail. •Calculation of RWA (Risk Weighted Assets) Internal Rating Based (IRB). •Development of CRISTA system for RWA standardised approach. ORM systems development: (Completed in 2016) • CIM: Control Issue Matrix • RCSA: Risk Control Self-assessment • KRI: Key Risk Indicators • LED: Loss Event Database • LCR Calculation: Liquidity Coverage Ratio • NSFR calculation: Net Stable Funding Ratio • Stress Tests Implementation of these initiatives is expected to generate comprehensive Bank risk management tools aligned with the risk profile. In addition, portfolio management is actively applied to assess portfolios and evaluate the Bank’s capital adequacy for the implementation of business strategies that are oriented to and based on risk management. In line with the Basel III initiative by OJK for capital requirements and liquidity management, currently CIMB Niaga has implemented a system to support a LCR (Liquidity Coverage Ratio) calculation and report in order to fulfill regulatory requirements and to be used as indicator of Bank liquidity risk in conducting its business. Annual Report CIMB NIAGA 2017 249
  250. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT The Bank develops ratings and scoring models to manage its loan portfolios , including groups of Corporate assets, Specialized Lending, Credit Cards, Mortgages, Personal Loan, Auto Loan and SME Retail. The ratings may provide added value to Bank decisionmaking processes. Development of the rating and scoring model is based on the Internal Rating Based (IRB) criteria approach and best practices. capital component concentrated on core capital or Common Equity Tier 1 (CET1), with CET1 consolidated ratio as per December 2017 at 17.32% and the total Capital Adequacy ratio (CAR) at 18.61% A. Objective of Capital Management The Bank’s objective is to maintain a strong capital position with and at the same time maintain optimal use of capital. The primary objectives of Bank capital management are to: 1.Provide sufficient capital for business development, both organic and inorganic, in accordance with the business appetite. This will be done through the application of capital management as follows: a. short, medium and long-term capital planning while taking into account business strategy. b. maintain a balanced business appetite within the perspective of capital consumption and capital generation that can be provided by the business. 2. Ensure the Bank has adequate capital to cope with risks even under stressed conditions. This can be done through the application of capital management as follows: a. Comply with capital regulations on every occasion. b.Have adequate capital reserves above the minimum requirements. c. Perform regulatory and internal stress tests. d. Conduct CAR forecasting and controls for the short, medium and long-term. e.Build a contingency plan for capital increase. B. Capital Structure CIMB Niaga maintains a strong capital position to support business growth and maintain and build investor, depositor, and customer and market confidence. In managing the Bank’s capital, it In managing operational risk, CIMB Niaga uses the Standardized Approach and the Basic Indicator Approach (PID) for capital calculation reporting. Internally, the Bank has several tools such as Control Issue Management (CIM), Risk Control SelfAssessment (RCSA), Key Risk Indicator (KRI), and Loss Event Database (LED) to measure potential risk and manage risks properly, allowing risks to be mitigated effectively. Up to 2017, CIMB Niaga had completed several important initiatives related to market risk, ICAAP, operational risk tools and several credit risk assessment models. For credit risk, the Bank Risk Rating and Specialised Lending have been applied in the Bank’s business processes since 2016. In 2018 CIMB Niaga will focus on completing several credit risk models such as mortgages and SME Retail. System parameter calculations for credit risk and calculation for Credit RWA (Risk Weighted Assets) Basel II Internal Rating Based (IRB) are still in the development process and targeted to be completed in the first quarter of 2018. As for Credit risk standardized approach, the Bank will develop a counterparty RWA credit risk calculation in the CRISTA (Credit Risk Standardized Approach) system to fulfill regulatory requirements. BASEL II PILLAR 3: CAPITAL DISCLOSURE, RISK EXPOSURE AND RISK MANAGEMENT I. Capital Disclosure CIMB Niaga’s capital management focuses on maintaining a healthy capital structure to boost business growth and optimize return on capital to shareholders. This is apparent from the 250 Annual Report CIMB NIAGA 2017
  251. Supporting Business Review Corporate Governance Report Corporate Social Responsibility considers factors such as optimal capital return to shareholders , and striking a balance between profit, gearing ratio, and the security provided by a healthy capital position. In general, capital components are dominated by permanent and loss absorbent components, where core capital is still the largest constituent of the Bank’s capital. In addition to core capital, the Bank has also issued capital instruments in the form of subordinated bonds with the following details: Subordinated Bonds II, Year 2010 On 23 December 2010, CIMB Niaga issued Subordinated Bonds II, Year 2010, amounting to Rp1.6 trillion with a tenor of 10 years, maturing on 23 December 2020 with a fixed interest rate of 10.85%. Issuance of these bonds was approved by Bank Indonesia through its letter No. 12/196/ DPB3/TPB-3/Confidential, dated 29 December 2010 and obtained an effective statement from the Chairman of Bapepam-LK through Letter no. S-11156/BL/2010 dated 15 December 2010. In connection with the issuance of the subordinated bonds, the Bank obtained an “AA idn” rating from Fitch Ratings Indonesia. The subordinated bonds issued by the Bank have met the criteria as complementary capital and accompanied by an option to buy (call option) feature. C. Capital Adequacy As a banking entity in Indonesia, CIMB Niaga strives to constantly meet the regulatory requirements, including the application of Basel to manage CAR adequacy. Management is vigilant about the Bank’s capital adequacy by maintaining the CAR above the minimum requirements specified by OJK for budgeting and capital provisioning to overcome risks from operational activities in the future. Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report In line with Basel II capital, the Bank has put into effect the Internal Capital Adequacy Assessment Process (ICAAP), a method to evaluate capital adequacy in accordance with risk profile. The Bank actively monitors and projects its capital position in the next 3 years by involving several measures : • Set capital targets by considering stress conditions of the Bank and its Subsidiary, both Bank-only and consolidated, which anticipates possible future regulatory changes and shareholder expectations. • Estimate capital requirements for a material risks based risk appetite. • Determine the requirements for capital issuance and the maturity profile of capital instruments. This is part of enhancing the effectiveness of the Bank’s risk management practices, in accordance with OJK Circular Letter No. 26/ SEOJK.03/2016 dated 14 July 2016 on the Capital Adequacy Ratio (CAR) and in accordance with the Risk Profile and Capital Equivalency Maintained Assets (CEMA). In December 2017, the Bank’s risk profile self-assessment was rated 2 (two) or Low to Moderate, with a Capital Adequacy Ratio (CAR) at 18.23% for the Bank individually and 18.61% on a consolidated basis. This ratio is in accordance with the target range established by OJK, from 9% to 10% of Risk Weighted Assets (RWA) for a bank with risk profile rating of 2 (two). 251
  252. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT 252 In the capital framework , the OJK and Bank Indonesia have issued regulations on capital in line with Basel III, effective as of 1 January 2016. The adoption of the Basel III framework on capital based on the OJK and Bank Indonesia regulation contains 3 (three) additional capital buffers that should be provided in stages in the form of core capital (CET 1) from 2016 to 2019 as follows : • Capital Conservation Buffer: additional capital that serves as a buffer for capital in the event of losses during a crisis. As a Bank that is classified as BUKU IV, the Bank will need to gradually prepare the buffer in stages with the of RWA as follows: i. 1 January 2016: 0.625% ii. 1 January 2017: 1.25% iii. 1 January 2018: 1.875% iv. 1 January 2019: 2.5% • Countercyclical Buffer, additional capital that serves as a buffer for anticipated losses in the event of excessive credit growth which would potentially disrupt the stability of the financial system. The range of the countercyclical buffer is between 0% - 2.5% of the RWA. In accordance with Bank Indonesia Regulation No.17/22/PBI/2015, the initial implementation of the buffer was established at 0% from 1 January 2016. Bank Indonesia through press release, dated 19 May 2017 stipulated that the Countercyclical Buffer is still at 0%. Furthermore, BI will evaluate the magnitude and timing of the Countercyclical Buffer at least once every six (6) months. • Capital Surcharge Buffer for Domestic Systemically Important Bank (D-SIB), the additional capital that serves to reduce negative impacts of the financial system and economy in the event of Bank failure, which has a systemic impact through an escalation of the Bank’s ability to absorb losses. Based on POJK No. 34-POJK.03-2016, the Bank must set aside capital for the D-SIB buffer of between 1% - 2.5%, depending on decision of OJK. In December 2017, the Bank’s capital level met the additional 3 (three) capital buffers as provision requirements. For 2018, the Bank is ready to comply with the capital requirements stipulated by the regulators. In managing credit risk related to capital, in accordance with OJK Letter of No. 42/ SEOJK.03/2016 regarding guidelines to calculate Risk Weighted Asset (RWA) for Credit Risk using Standardized Approach that came into effect on 28 September 2016, the Bank has fulfilled this provision with the availability of the Credit Risk Standardized Approach (CRISTA) application, which has been adjusted to the requirements of the OJK Circular Letter. Based on standardized approach, the calculation of RWA is generally carried out with reference to risk weights in accordance with Bank Indonesia and rating agencies set by Financial Services Authority (OJK). Currently, the Bank uses the ratings issued by external rating agencies, such as Pemeringkat Efek Indonesia (Pefindo), Fitch Ratings Indonesia, Fitch Ratings, Moody’s Indonesia, Moody’s, and Standard & Poor’s. However, in order to improve the quality of the loan disbursement process and referring to the regulator roadmap for the implementation of Basel II internal model approach, the Risk Management Work Unit (SKMR) is developing an internal rating model for the retail and corporate segments that will be applied internally, including the necessary infrastructure. As well as for credit risk, determination of capital management, CAR with market risk, was Annual Report CIMB NIAGA 2017
  253. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data both bank-only and consolidated for a Bank with a risk rating of 2 (low-to-moderate). performed by using the Standardized Approach, which includes the calculation of interest rate risk and exchange rate risk. Meanwhile, CIMB Niaga measures its capital adequacy for operational risk using the Basic Indicator Approach (PID). Under this method, the Bank allocates a minimum capital requirement for operational risk based on historical data that is equal to the average of the sum of annual positive gross income over the last 3 years multiplied by an applicable constant of 15%. The Bank also allocates operational risk reserve provision for operational losses. The Bank’s CAR for 2017 was rated satisfactory, above the requirements set by Bank Indonesia. The capital growth trend based on the Bank Business Plan (RBB) also demonstrates the ability to support the Bank’s business expansion in the future. In December 2017, the core capital ratio to risk-weighted assets was 17.02% for Bank only and 17.32% for consolidated ratio. While overall, the consolidated CAR in December 2017 reached 18.60% and Bank only CAR was 18.23%. These are in accordance with OJK Letter No. 34/POJK.03/2016 where a minimum of 9% - 10% of Risk Weighted Assets, Consolidated Financial Report The Bank’s capital adequacy in reference to regulation concerning the minimum core capital of 6% over a period of 5 years can be described as follows: 15.58% 15.41% 13.17% 13 13.33% 16.28% 16.44% 17.96% 17.31% 18.60% 14.20% 14 15 Core Capital 17 16 KPMM Similarly, if associated with incentives for Statutory Reserves (GWM) and Loan to Deposit Ratio (LDR), the Bank’s CAR complies with the minimum 14% required by Bank Indonesia for a Bank with LDR above target with the target of 92%. Bank performance is therefore in accordance with the Bank Indonesia regulation as stated in PBI No. 18/14/PBI/2016 on the Fourth Amendment to PBI No. 15/15/ PBI/2013 which came into effect on 24 August 2016. Below are the Bank’s CAR components on a consolidated basis, as of December 2017 : Description Individual (in million rupiah) Consolidated (in million rupiah) Capital Tier 1 34,285,916 35,527,330 Common Equity Tier 1 34,285,916 35,527,330 2,441,759 2,642,037 Capital Tier 2 Total Capital 36,727,675 38,169,367 201,444,293 205,118,272 CAR 18.23% 18.61% Capital Tier 1 to RWA 17.02% 17.32% Common Equity Tier 1 to RWA 17.02% 17.32% 1.21% 1.29% Total RWA Tier 2 Ratio Annual Report CIMB NIAGA 2017 253
  254. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT CIMB Niaga has good access to capital sources , as well as the support of the parent company, which has a vision to advance the Bank into the future. Since 2012, the Bank has not paid dividends so that the dividend payout ratio is 0%. The dividend payout plan and capital increase for the Subsidiary is established by maintaining the CAR level at the optimum level, in accordance with the minimum requirements set by regulators and by considering the Bank’s future business strategy. In addition, referring to POJK Regulation No. 26/POJK.03/2015, the Bank has reported the integrated minimum capital requirement for financial conglomerates. As of December 2017, the integrated minimum capital adequacy ratio for the CIMB Indonesia financial conglomerate was 161%, which was above the minimum requirement at 100%. D. Capital Governance Management possesses excellent competence in managing the capital, whereby the Board of Directors and Board of Commissioners perceive capital planning as an essential factor in achieving strategic objectives. This is reflected by the Bank’s performance and the performance of its Subsidiary, through an observation on the quality of risk management on an ongoing basis, regular assessment by Internal Audit, policy regarding dividends, as well as management commitment to uphold strategy and objectives stated in the Bank Business Plan (RBB). CIMB Niaga has working units involved in addressing Capital Management including Asset Liability Management (ALM), Financial and Controller Planning Group (FCPG), Treasury & Capital Markets, Risk Management, and Strategy & Finance, all of which, collectively or separately, report to the Capital Management Committee. The objective of the Capital Management Committee is to: 1.Set, achieve, and maintain a safe and optimal capital target, and an efficient capital structure for the Bank. 2. Ensure the diversification of capital sources. 3.Allocate the capital efficiently among operational entities and business units in alignment with the Bank’s business strategy and relevant capital return. E. Quantitative Disclosures Table 1. Disclosure of Basel III Capital Framework Chapter 1: Capital Components No. Component Common Equity Tier 1 capital: instruments and reserves 1. Common shares (including stock surplus) 2. Retained earnings 3. Accumulated other comprehensive income (and other reserves) 4. Directly issued capital subject to phase out from CET1 (only applicable to non-joint stock companies) Total (in million Rupiah)   No. Ref. from Consolitdated Balance Sheet 1)   8,459,817 c 25,325,034 d 3,455,244 e N/A   5. Common share capital issued by subsidiaries and held by third parties (amount allowed in group CET1) 6. Common Equity Tier 1 capital before regulatory adjustments Common Equity Tier 1 capital: regulatory adjustments     7. Prudential valuation adjustments -   8. Goodwill (net of related tax liability) 9. Other intangibles other than mortgage-servicing rights (net of related tax liability) 10. Deferred tax assets that rely on future profitability excluding those arising from temporary differences (net of related tax liability) -   37,240,095   -   1,281,805 a N/A   11. Cash-flow hedge reserve N/A   12. Shortfall of provisions to expected losses N/A   13. Securitization gain on sale (as set out in paragraph 562 of Basel II framework) -   254 Annual Report CIMB NIAGA 2017
  255. Supporting Business Review Corporate Governance Report No . Corporate Social Responsibility Others Corporate Data Component Consolidated Financial Report Total (in million Rupiah) No. Ref. from Consolitdated Balance Sheet 1) 14. Gains and losses due to changes in own credit risk on fair valued liabilities -   15. Defined-benefit pension fund net assets N/A   N/A   -   16. Investments in own shares (if not already netted off paid-in capital on reported balance sheet) 17. Reciprocal cross-holdings in common equity 18. Investments in the capital of Banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions, where the Bank does not own more than 10% of the issued share capital (amount above 10% threshold) N/A   19. Significant investments in the common stock of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions (amount above 10% threshold) N/A   -   N/A   20. Mortgage servicing rights (amount above 10% threshold) 21. Deferred tax assets arising from temporary differences (amount above 10% threshold, net of related tax liability) 22. Amounts exceeding the 15% threshold N/A   23. of which: significant investments in the common stock of financials N/A   24. of which: mortgage servicing rights N/A   25. of which: deferred tax assets arising from temporary differences N/A   26. National specific regulatory adjustments N/A   -   26b. PPA on non-productive assets 253,047   26c. Deferred Tax Assets 177,849 f 0   26e. Shortfall in capital of affiliates engaged in insurance -   26f. Securitization exposure -   26g. Others -   -   26a. Difference between PPA and CKPN 26d. Investments 27. Regulatory adjustments applied to Common Equity Tier 1 due to insufficient Additional Tier 1 and Tier 2 to cover deductions 28. Total regulatory adjustments to Common equity Tier 1 29. Common Equity Tier 1 capital (CET1)   30. 1,712,702   35,527,394   -     Additional Tier 1 capital: instruments Directly issued qualifying Additional Tier 1 instruments plus related stock surplus 31. of which: classified as equity under applicable accounting standards -   32. of which: classified as liabilities under applicable accounting standards -   N/A   33. Directly issued capital instruments subject to phase out from Additional Tier 1 34. Additional Tier 1 instruments (and CET1 instruments not included in row 5) issued by subsidiaries and held by third parties (amount allowed in group AT1) 35. of which: instruments issued by subsidiaries subject to phase out 36.   Additional Tier 1 capital before regulatory adjustments -   N/A   - Additional Tier 1 capital: regulatory adjustments 37. Investments in own Additional Tier 1 instruments 38. Reciprocal cross-holdings in Additional Tier 1 instruments 39.     N/A   -   Investments in the capital of Banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions, where the Bank does not own more than 10% of the issued common share capital of the entity (amount above 10% threshold) N/A   40. Significant investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation (net of eligible short positions) N/A   41. National specific regulatory adjustments -   41a. Placement of funds in AT1 instruments in other banks   42. Regulatory adjustments applied to Additional Tier 1 due to insufficient Tier 2 to cover deductions -   43. Total regulatory adjustments to Additional Tier 1 capital -   44. Additional Tier 1 capital (AT1) 45. Tier 1 capital (T1 = CET 1 + AT 1)   -   35,527,394   Tier 2 capital: instruments and provisions 46. Directly issued qualifying Tier 2 instruments plus related stock surplus 47. Directly issued capital instruments subject to phase out from Tier 2 Annual Report CIMB NIAGA 2017   636,772 N/A b   255
  256. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT No . Component 48. Tier 2 instruments (and CET1 and AT1 instruments not included in rows 5 or 34) issued by Subsidiary and held by third parties (amount allowed in group Tier 2) Total (in million Rupiah) - No. Ref. from Consolitdated Balance Sheet 1)   49. of which: instruments issued by subsidiaries subject to phase out N/A   50. Provisions 2,012,239 a Tier 2 capital before regulatory adjustments 2,649,010 51.   Tier 2 capital: regulatory adjustments 52. Investments in own Tier 2 instruments 53. Reciprocal cross-holdings in Tier 2 instruments 54.     N/A   -   Investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions, where the bank does not own more than 10% of the issued common share capital of the entity (amount above the 10% threshold) N/A   55. Significant investments in the capital banking, financial and insurance entities that are outside the scope of regulatory consolidation (net of eligible short positions) N/A   56. National specific regulatory adjustments -   56a. Sinking fund 56b. Placement of funds in Tier 2 instruments in other banks 57. Total regulatory adjustments to Tier 2 capital   -   -   58. Tier 2 capital (T2) 2,649,010   59. Total capital (TC = T1 + T2) 38,176,404   60. Total risk weighted assets 205,238,857   Capital ratios and buffers     61. Common Equity Tier 1 (as a percentage of risk weighted assets) 17.31%   62. Tier 1 (as a percentage of risk weighted assets) 17.31%   63. Total capital (as a percentage of risk weighted assets) 18.60%   64. Institution specific buffer requirements (minimum CET1 requirement plus capital conservation buffer plus countercyclical buffer requirements plus G-SIB buffer requirement, expressed as a percentage of risk weighted assets) 10.36%   65. of which: capital conservation buffer requirement 1.250%   66. of which: bank specific countercyclical buffer requirement 0.00%   67. of which: G-SIB buffer requirement 0.50% 68. Common Equity Tier 1 available to meet buffers (as a percentage of risk weighted assets) National minimum (if different from Basel 3)     69. National Common Equity Tier 1 minimum ratio (if different from Basel 3 minimum) N/A   70. National Tier 1 minimum ratio (if different from Basel 3 minimum) N/A   National total capital minimum ratio (if different from Basel 3 minimum) N/A 71.       Amounts below the thresholds for deduction (before risk weighting) 72. Non-significant investments in the capital of other financials N/A   73. Significant investments in the common stock of financials N/A   74. Mortgage servicing rights (net of related tax liability) N/A   75. Deferred tax assets arising from temporary differences (net of related tax liability) N/A       Applicable caps on the inclusion of provisions in Tier 2 Provisions eligible for inclusion in Tier 2 in respect of exposures subject to standardized approach (prior to application of cap) N/A   77. Cap on inclusion of provisions in Tier 2 under standardized approach N/A   78. Provisions eligible for inclusion in Tier 2 in respect of exposures subject to internal ratings-based approach (prior to application of cap) N/A   79. Cap for inclusion of provisions in Tier 2 under internal ratings-based approach N/A   76.   Capital instruments subject to phase-out arrangements (only applicable between 1 Jan 2018 and 1 Jan 2022)   80. Current cap on CET1 instruments subject to phase out arrangements N/A   81. Amount excluded from CET1 due to cap (excess over cap after redemptions and maturities) N/A   82. Current cap on AT1 instruments subject to phase out arrangements N/A   83. Amount excluded from AT1 due to cap (excess over cap after redemptions and maturities) N/A   84. Current cap on T2 instruments subject to phase out arrangements N/A   85. Amount excluded from T2 due to cap (excess over cap after redemptions and maturities) N/A   256 Annual Report CIMB NIAGA 2017
  257. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Table 1 . Disclosure of BASEL III Capital Framework Chapter 2: Capital Reconciliation No. POST Published Balance Consolidated Balance Sheets with consolidated coverage based on prudential provisions     31 December 2017 31 December 2017   Assets 1. Cash 2. Placements with Bank Indonesia 3. Interbank placements 4. Spot and derivative claims 5. Securities   a. Measured at fair value through profit and loss       3,895,997 3,895,997 24,013,512 24,013,512 4,407,164 4,407,164 280,293 280,293 - - 4,085,041 4,085,041 b. Available for sale 25,423,068 25,423,068   c. Held-to-maturity 8,943,987 8,943,987   d. Loans and receivables - - 6. Securities sold under repurchase agreements (repo) - - 7. Claims on securities bought under reverse repo 8. Acceptance claims 9. Loans     - - 4,184,965 4,184,965 a. Measured at fair value through profit and loss - - b. Available for sale - -   c. Held-to-maturity - -   d. Loans and receivables 168,421,270 168,421,270 16,694,536 16,694,536 4,464 4,464 10. Sharia financing 11. Equity Investment 12. Impairment on financial assets -/-   a. Securities (38,556) (38,556)   b. Loans (7,308,040) (7,308,040)   c. Others (458,260) (458,260) 13.   14.   15. Intangible assets Accumulated amortisation or intangible asset -/Fixed assets and equipment Accumulated depreciation or property, plant and equipment -/Non productive asset 2,558,339 2,558,339 (1,018,074) (1,018,074) 7,627,294 7,627,294 (2,507,386) (2,507,386) - - 8,164 8,164   a. Abandoned properties   b. Foreclosed assets 393,577 393,577   c. Suspense account 226,052 226,052   d. Interbranch receivables - -    i. Conducting operational activities in Indonesia - -  ii. Conducting operational activities outside Indonesia - 16.   Impairment on non financial assets -/- - - 17. Leasing 19,607 19,607 18. Deferred tax assets 177,849 177,849 Annual Report CIMB NIAGA 2017 257
  258. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT No . POST Published Balance Consolidated Balance Sheets with consolidated coverage based on prudential provisions     31 December 2017 31 December 2017 6,270,582 6,270,582 19. Other assets Total Assets   266,305,445 Liabilities and Shareholders’ Equity 266,305,445           LIABILITIES 1. Current accounts 47,442,259 47,442,259 2. Savings accounts 45,456,923 45,456,923 3. Time deposits 76,510,056 76,510,056 4. Revenue sharing investments 19,907,958 19,907,958 5. Liabilities to Bank Indonesia 6. Interbank liabilities 7. Spot and derivative liabilities 110,823 110,823 8. Liabilities on securities sold under repurchase agreement 9,378,703 9,378,703 9. Acceptance liabilities 4,184,965 4,184,965 10. Issued securities 6,228,613 5,403,613 11. 1 1 6,884,335 6,884,335 Borrowings   a. Subordinated loans 1,596,772 1,596,772   b. Other Borrowings 4,984,722 5,809,722 172,033 172,033 38,137 38,137 - 12. Security deposits 13. Interbranch liabilities   a. Conducting operational activities in Indonesia   b. Conducting operational activities outside Indonesia - 14. Deferred tax liabilities - - 15. Other liabilities 6,458,149 6,458,149 16. Profit sharing investment Total Liabilities   17. - - 229,354,449 229,354,449 EQUITY Issued and fully paid in capital   a. Capital 2,900,000 2,900,000   b. Unpaid capital -/- (1,287,743) (1,287,743)   c. Treasury Stock -/- (242,902) (242,902) 18. Addition paid-in capital   a. Agio 7,033,450 7,033,450     b. Disagio -/- - - c. Donated capital - -   d. Funds for paid up capital - -   e. Others 57,011 57,011 19. Other comprehensive gain/(loss)   a. Translation adjustment from foreign currency   b. Gain/(loss) on value changes of financial assets categorized as available for sale   c. Effective portion of cash flow hedge 258 - - 25,822 25,822 - - Annual Report CIMB NIAGA 2017
  259. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report No . POST Published Balance Consolidated Balance Sheets with consolidated coverage based on prudential provisions     31 December 2017 31 December 2017 3,077,883 3,077,883   d. Gains on fixed asset revaluation   e. Portion of other comprehensive income from associates   f. Gains/(loss) on defined benefit actuarial program   g. Income tax of other comprehensive income - -   h. Others - - 20. Difference in quasi-reorganisation - - 21. Difference in restructuring of entity under common control - - 22. Other equity - - 351,538 351,538 - - 23. (249,141) Reserves   a. General reserves   b. Appropriated reserves 24. Transaction with non-controlling interest 25. Gain/(Loss)   a. Previous years   b. Current year (35,723) 22,342,245 Total Equities Attributable to Owners 26. (249,141) 22,342,245 2,977,675 2,977,675 36,950,115 36,950,115 881 881 266,305,445 266,305,445 Non-controlling interest Total Liabilities and Equity (35,723) Table 1. Capital Disclosures Under the Basel III Framework Chapter 3: Detailed Features of Capital Instruments Detail Features of Capital Instruments Disclosure No. Question 1. Issuer 2. Identification Number 3. Applicable Law Instrument treatment based on CAR: 4. During the transition period 5. After Transition 6. Is the instrument eligible for Solo/Group or Group and Solo 7. Type of instrument 8. Amount recognized in CAR 9. Par value of instrument 10. Accounting classification Annual Report CIMB NIAGA 2017 Subordinate II Shares Answer Answer PT Bank CIMB Niaga Tbk PT Bank CIMB Niaga Tbk BNGA02SB BNGA Indonesian law Indonesian law N/A N/A Tier 2 CET 1 Group and Solo Group and Solo Subordinate Loan Common shares 636,772 8,459,817 1,600,000 Class A: Rp5,000 (full amount) per share Class B: Rp50 (full amount) per share Liabilitas - Amortised Cost Equity 259
  260. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT Detail Features of Capital Instruments Disclosure No . Question 11. Issue date 12. No due date (perpetual) or with due date 13. Due date 14. Execution of a call option on the approval of the Bank Commissioners 15. 16. Subordinate II Shares Answer Answer 23/12/2010 Effective Registration:: - Initial Public Offering: 02/10/1989 - Limited Public Offering I: 26/09/1992 - Limited Public Offering II: 29/10/1996 - Limited Public Offering III: 04/08/1999 - Limited Public Offering IV: 25/08/2005 - Limited Public Offering V: 03/11/2010 With due date No due date 23/12/2020 N/A No N/A Call option date, amount of withdrawal and other requirements of call option (if any) N/A N/A Subsequent call option Coupon/dividend N/A N/A   Coupon/dividend     17. Fixed or floating Fixed Floating 18. The coupon rate or other reference index 10.85% N/A 19. Whether or not dividend stopper 20. Fully discretionary, partial or mandatory 21. Is there any step up feature or other incentive? No No 22. Non-cumulative or cumulative Cumulative Noncumulative 23. Convertible or non-convertible Non-convertible Non-convertible No No Mandatory Mandatory 24. If convertible, what is the trigger point N/A N/A 25. If convertible, whether full or partial N/A N/A 26. If convertible, what is the conversion rate N/A N/A 27. If convertible, mandatory or optional N/A N/A 28. If convertible, what is the instrument conversion type N/A N/A 29. If convertible, mention the issuer of the instrument it converts into N/A N/A 30. Write-down feature No No 31. If write-down; what is the trigger N/A N/A 32. If write-down; whether full or partial N/A N/A 33. If write-down, is it permanent or temporary N/A N/A 34. If temporary write-down, explain documentation mechanism N/A N/A 35. Hierarchy of instruments at the time of liquidation 36. Are there features that are non-compliant? No No 37. If yes, explain for non-compliant features N/A N/A 260 Subordinate I is pari passu without any preference to the rights of all other subordinated creditors, but lower than the preferential creditor, privileged creditors and unsecured creditors which are not holders of subordinated bonds This instrument is a paid-up capital and is subordinated to other capital components. Available to absorb losses incurred prior to or upon liquidation. Annual Report CIMB NIAGA 2017
  261. Supporting Business Review Corporate Governance Report Corporate Social Responsibility II . Disclosure of Risk Exposure and Risk Management DISCLOSURE OF RECOVERY PLAN FOR SYSTEMIC BANKS A. Objective of Recovery Plan In line with the mission of the Government of the Republic of Indonesia on the prevention and handling of a financial system crisis (Law of the Republic of Indonesia No. 9 of 2016) and in order to support the national economy, a Recovery Plan that has been prepared by the Bank focusing on achieving and maintaining financial system stability. The Recovery Plan is the Bank’s commitment to: 1.Support financial system stability in facing a financial crisis threats due to several financial stress conditions. 2. Prevent and handle systemically important Bank problems and issues, in which the Bank has determined steps to be taken during financial stress condition that may be detrimental to the Bank’s business continuity. The Recovery Plan has been adjusted with Bank conditions and refers to OJK Regulation No. 14/ POJK.03/2017 regarding Recovery Plan for Systemic Banks, as follows: 1. General Business Overview through line business identification and bank critical functions. 2.Bank’s interdependent financial identification and operations with parent company, affiliated companies and subsidiaries as well as critical systems in order to run the business. 3. Identify of financial stress conditions that may be faced by the bank both market-wide and idiosyncratic. 4. Conduct stress testing against financial scenarios identified and may occurred in order to promote bank resilience testing in financial stress conditions. Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report 5. Stipulation of financial indicators which become a limitation of the Recovery Plan determination. 6. Determination of recovery action to be executed in handling of any financial crisis, as outlined in the recovery options. 7.Arrangement of framework and governance in recovery plan management, both in terms of maintenance, execution, updating, as well as the communication process of the Recovery Plan. B. Recovery Plan Framework i. General Business Overview The General Business Overview is conducted through business lines of the Bank. The internal assessment process is carried out in order to establish business lines considered core and non-core as well as critical and non-critical. CIMB Niaga conducts internal assessments to determine the business lines considered critical and non-critical to identify roles of each business line in the banking industry, so that the bank can determine business lines to be maintained when financial stress occurred. ii.Financial and Operational Interdependency Identification The Bank conducts assessments of financial and operational interdependencies with the parent company, affiliated companies and subsidiaries, as well as systems considered critical in order to assess potential impacts due to financial stress conditions against its interdependence. 261
  262. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT iii .Scenario Test (Financial Stress) and Stress Testing Identification CIMB Niaga identifies stress scenarios and potential financial stress conditions caused by market-wide or idiosyncratic factors that may have a detrimental effect on the Bank’s business continuity. Market-wide financial stress is caused by macroeconomic factors and experienced by the entire market, while idiosyncratic financial stress is caused by an event that experienced only by the Bank. The Bank also conducts periodic stress testing in order to test Bank resilience of possible stress scenarios that may affect key financial indicators. iv. Determination of Recovery Plan Indicators In determining the limit of the Recovery Plan’s activation, the Bank has determined indicators of financial ratios. In the determination and stipulation of the Recovery Plan indicators, the Bank has classified the following four (4) indicator types: a.Capital b.Liquidity c.Profitability d. Asset Quality. 262 v. Recovery Options The Bank has established recovery options in order to maintain Bank business continuity in facing financial distress. The options will be executed if recovery plan indicators have been exceeded; however, some actions will have been conducted prior to Recovery Plan activation as prevention. The established recovery options have been adjusted to Bank conditions and have been selected based on credibility and feasibility. vi.Governance CIMB Niaga has established Recovery Plan governance, in which the Capital Management & Recovery Plan Committee (CMRPC) as an executive committee that has been appointed to supervise the Recovery Plan. The Committee has also appointed an organization that will oversee the Recovery Plan activation during current recovery period, assisted by other committees, such as the Crisis Management Committee (CMC) and the Funding Crisis Management Team (FCMT), as well as other supporting units. In carrying out its duties, the CMRPC is supervised by the Board Management Committee (BMC) and the Board of Commissioners. Reporting of the recovery plan indicators is conducted on a monthly basis and is reported to the Risk Management Committee (RMC). The framework and governance of the Recovery Plan have been well documented, including steps of recovery plan activation and internal-external communication processes when the Bank is in the recovery phase. Annual Report CIMB NIAGA 2017
  263. Supporting Business Review Corporate Governance Report Corporate Social Responsibility vii .Communication The communication process for the Recovery Plan will be in line with the Bank’s Communications and Disclosure Plan, in which the Crisis Communication Management Team (CCMT) are the parties that have been appointed by the Bank for internal and external communication with stakeholders in the recovery phase. In the communication process, CCMT’s task is to choose strategy communication as well as communication flow. Others Corporate Data Consolidated Financial Report C. Recovery Plan Governance CIMB Niaga has appointed CMRPC as a executive committee that supervises Recovery Plan management. Recovery Plan management is also supervised by the Board of Directors and Board of Commissioners. Document updating is conducted periodically in order to adjust business conditions experienced by Bank. In recovery plan document management, the CMRPC is assisted by the Board of Directors and Senior Management. Recovery Plan Indicator Monitoring Board of Commissioners Board of Directors Capital Management & Recovery Plan Committee Crisis Management Committee (Operational) Funding Crisis Management Team (Liquidity) Business and Support Unit Monthly Indicator Report Risk Management Committee Capital Annual Report CIMB NIAGA 2017 Liquidity Rentability Asset Quality 263
  264. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT A . Credit Risk Disclosure of Credit Risk Exposure and Credit Risk Management Credit risk is due to failure of debtors and/or other parties in fullfiling their obligations to the Bank. Most of these risks arise from lending activities conducted by the Bank. In addition, credit risk may appear from a variety of financial instruments such as securities, acceptances, inter-bank transactions, trade finance transactions, exchange rate and derivative transactions, as well as commitments and contingencies. The Bank still faces considerable challenges primarily due to the slowing down of macroeconomic growth that impacted loan growth and customer payment ability. In terms of asset quality, the ratio of Non Performing Loans (NPL) is stable compared to the previous year. As one of the mitigation measures of credit risk, the Bank has prepared sufficient provisions to cover potential credit losses. The Bank through the Credit Quality Committee has determined the amount of provisions allocated according to needs and relevant conditions. With respect to the current below par macro economic conditions that may affect credit growth and customers loan repayment capability, the Bank is conducting remedial measures and refinement to improve the quality of assets as divided into 3 (three) areas, namely: (a) management of problematic loans, (b) acquisition of credit and monitoring of existing debtors, and (c) Credit Risk Management Information System. Governance CIMB Niaga already has a credit risk management organization on all fronts, in order to build and maintain the Bank’s lending activities to be in accordance with prudential banking principles, applicable regulations, and the Bank’s appetite. The Board of Commissioners and the Board of 264 Directors conduct active monitoring through periodic evaluations of credit risk management. To support this, the Bank has created committees at the level of the Board of Commissioners and Board of Directors. The Board of Commissioners is assisted by the Risk Oversight Committee (KIPER) working side by side with the Audit Committee and Nomination and Remuneration Committee. At the Board of Directors level, the management and control of the Bank’s risk including credit risk is the responsibility of the Risk Management Committee (RMC). In addition, the Bank also has the Credit Policy Committee (CTF), which specifically conducts discussions, reviews and approval of credit policies. Both Committees are chaired by the President Director. At the transactional level, the Bank delegates the authority on credit approval to the Credit Committee and in the form of the Joint Delegated Authority or Single Limit Holder, based on the recommendation from Credit Reviewers and the considerations of the Business Unit and other units such as Legal and Compliance. The Credit Committee consists of the Board of Directors and Senior Management with the level of authority tailored to the level of risk and decision-making competence. In this regard, the Bank seeks to establish systems that not only consider the return factor, but also the level of risk which must be in accordance with the Bank’s capacity avoidance of conflict of interest. The Bank also has an Asset Quality Committee (chaired by the Director of Credit) responsible for approving or guiding the handling or settlement of non-performing loans. Meanwhile, the NPL Credit Committee (chaired by the Director of Finance & Strategy) gives approval for measures to be taken and the amount of credit reserves that should be allocated to non-performing loans. Annual Report CIMB NIAGA 2017
  265. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Corporate governance is supported by credit risk management organization tools at all levels in order to build and maintain the Bank ’s credit activity. The Risk Management Director is responsible for managing risk, including credit risk, at the portfolio level related to the management/ administration of credit policies and credit risk limit exposure on the portfolio. In managing credit risk, the Risk Management Director along with Credit Director are responsible for managing risk at the transactional level, collaborating in developing credit policies and strategies, portfolio limits, credit model and its validation. CIMB Niaga has the Risk Management Unit (SKMR) that manages the risk portfolio Bank-wide. SKMR’s task is to facilitate Board of Commissioners and Board of Directors in active monitoring on credit risk, by (i) coordinating the establishment of Risk Management Strategy, Risk Management Policy, Risk Appetite and Risk Limits related to credit risk, (ii) monitoring the implementation of Strategy, Policies, Appetite, and Limits related to credit risk, (iii) development and refinement of the Risk Management Framework related to credit risk and, (iv) conduct credit model development and validation. SKMR is under the Directorate of Risk Management that is independent from Business Units. Other work units that are involved in the loan process, namely: • Working Units in credit risk management : a. Business Units, both retail and non-retail, handle credit application by enclosing a feasibility analysis of prospective customers; b.The Consumer Credit Risk Unit performs analysis, review, approval, and book keeping processes for retail (consumption) credit, while the Consumer Collection and Recovery Unit perform the handling of nonperforming loans. The units are under the Directorate of Consumer Banking, but their Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report functions are limited by policy, risk strategy, and credit model established by the SKMR. c. For non-retail credit, the initiation process is carried out by the Business Unit, which is then reviewed and validated by the Business Credit Team (under the Business Unit). Subsequently, the decision (approval or non-approval) of the Credit Breaker originates from the Credit Directorate and/ or Business Unit. d. Approver can be in the form of a Committee, Joint Delegated Authority, or Single Limit Holder consisting of the Board of Directors and/or Senior Management, or other appointed Bank Executives Officers who responsible for making the transactional credit approval based on their authority, aligned to their risk level and decision maker competence. Decisions are taken properly by taking into account the precautionary principle, risk appetite, and efforts to avoid conflict of interest; e.The Credit Administration Unit (under the Credit Directorate) is in charge of the execution of credit disbursements after the approval from the Credit Committee and has undergone binding agreement assisted by the Legal Unit. In the process of credit disbursement, the Credit Administration Unit must ensure the prerequisite loan documents are in order; f.Post-Mortem Unit (under the Credit Directorate) coordinates the monitoring of existing clients in order to detect early deterioration signals; g. Non-Performing Loan Resolution Unit (under the Credit Directorate) is in charge of executing steps needed in the handling of non-performing loans, such as collection efforts, restructuring, and litigation. 265
  266. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT 266 Policies , Procedures, and Establishment of Limits CIMB Niaga credit policies are guidelines for the credit process, such as those in the Credit Manual, and the Sharia Financing Manual, including which of its operational procedures will be outlined in more detail as a guide for the Bank in approving loans and complying with the prudential principle. The Risk Management Unit (SKMR) also contains the Credit Policy Unit and Operations Policy in collaboration with business units for periodic reviews on credit and operational policies and procedures. To ensure credit risk exposure is in accordance with risk appetite, the Bank assigns limits among other credit decision-making authority limits tailored to decision-making competence and risk level. In addition, the Bank has set policies and methodologies to maintain a credit risk aligned with the Legal Lending Limit (LLL) pursuant to regulatory policies, and to set the maximum limit of exposure per industry sector in an effort to monitor and manage concentration credit portfolio in detail as follows: • Legal Lending Limit (LLL) is a limit mechanism or maximum percentage for funds allowed against Bank’s capital based on regulatory requirement. • The Sector Limit is the mechanism to determine the maximum limit of credit exposure in a particular sector by considering the appetite and the size of the sector’s GDP contribution in Indonesia. Furthermore, the Bank’s credit exposures in each sector will be monitored periodically to ensure that they do not exceed the specified limit. • Risk Posture is a direction in determining the level of credit risk based on Bank’s segmentation. Its monitoring includes respective limitations regarding composition of the portfolios of each business unit. • The Exposure Limit Review (ELR) is the process of reviewing the maximum exposure limits of the Bank towards each retail portfolio. ELR review and approval process is conducted regularly every year or 2 years. Furthermore, credit exposures for each retail portfolio are monitored periodically to ensure that they do not exceed the approved limits. Risk Management Process • Credit Risk Assessment Credit Risk is assessed based on credit worthiness or client’s asset quality. For funding/ loan portfolio, the current criteria used by the Bank in determining credit worthiness are: Client a. payment promptness status (delinquency), which is one of the considerations in determining client collectibility status; b. Watch List status as an outcome from early detection (Early Recognition Watch-List/ ERWL) before a client is categorized as impaired. A description of ERWL is defined under risk supervision and control part below. c.Internal ratings: currently the Bank has implemented and continues to develop a system called ICRES (Internal Credit Rating System) for the application of internal rating models of corporate and some commercial clients, as well as the CRDE (Centralized Retail Decision Engine) system for internal scoring model application for retail customers, as an effort to improve the quality of the risk measurement process for both new and existing clients. Annual Report CIMB NIAGA 2017
  267. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Furthermore , the credit worthiness and the quality of credit risk mitigation are the basis for determining the adequacy of provisioning/ credit provision. Credit provisioning is required in order to protect the Bank’s capital in the event of non-performing loans. Credit risk is to be realized as a loss if a credit problem cannot be resolved, and as a consequence the Bank must perform a write off, in whole or in part. In relation to capital, credit risk assessment is carried out by RWA Credit in which the Bank uses the standardized approach based on OJK Letter No. 42/SEOJK.03/2016 regarding guidelines to calculate Risk Weighted Assets (RWA) for credit risk using the Standard Approach. Monitoring and Control of Credit Risk a. Transactional Level - Annual Review, a review mechanism for loans is completed at least once a year to determine whether the credit worthiness of customers remains the same as when the loan was first granted; - Early Recognition Watch List (ERWL), the identification of a client’s potential credit risk based on criteria such as: business prospects, financial conditions as well as other factors that influence the client’s payment ability. The outcome of ERWL is the Watch-List status (High-MediumLow) on each client’s credit worthiness. Currently, ERWL is conducted quarterly on all corporate clients, in addition to some commercial clients and SMEs. Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report - Thematic Portfolio Review, review process of debtors exposed to thematic risk; in this case the volatility of macroeconomic indicators such as commodity prices (for example: oil and gas) and exchange rates (wrong way risk). The control of the transactional monitoring mechanisms comprises: (i) account planning adjustments and credit terms, (ii) early restructuring proposals, (iii) follow-up request to the client, according to the capacity of the Bank, (iv) adjustment of required provision/ credit provision amount. b. Portfolio Level - Risk Appetite Statement Monitoring (credit risk), bank-wide monitoring of key credit risk indicators in order to ensure the required appetite. - Risk Profile (Credit Risk), an overview of the risk conditions based on the required indicators from the regulator (Inherent and Risk Management Quality). - Risk Report (Credit Risk), a report containing loan portfolio monitoring and analysis which include (i) a general overview on the composition, concentration levels, and the quality of the assets/loan portfolio, (ii) trend movement, and (iii) specific areas that require Board of Directors’ attention. The Risk Report is submitted to the Risk Management Committee on a monthly basis in order to facilitate Bank-wide credit risk management by the Board of Directors. 267
  268. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT 268 - BMPK Limit Monitoring , Sector Limit Monitoring and Risk Posture Tracking, as explained in the previous section, in order to monitor the suitability of the conditions and movement of the loan portfolio towards the established limits. - Asset Quality and Provision Forecast, in order to predict the level and amount of asset quality and credit provision based on historical data. - Stress Test (Credit Risk), conducted at least 2 (two) times a year to estimate credit risk exposure, as well as the potential for deteriorating credit quality under various stress conditions or scenarios. The stress tests are conducted both in a quantitative and qualitative manner to (a) identify decisions and actions to be taken by the Bank in order to avoid or minimize negative impacts on the Bank in the event of stress conditions, and (b) to ensure that Bank capital is adequate in the stress scenario. Internal Control CIMB Niaga has a credit risk management internal control system that includes regular monitoring by the Board of Commissioners and Board of Directors, and a control culture that involves all lines of business. The Bank has a system to identify and assess credit risk, as well as a control system with clear separation of functions in managing risks. The Bank’s accounting system is in accordance with applicable regulations, information and effective communication systems for the management of credit risk. Credit risk exposure monitoring is conducted periodically and immediate corrective action is taken so that credit risk can be preserved in accordance with the Bank’s risk tolerance limits. Should there be a deviation the Bank will take the necessary steps to restore the risk to an acceptable level, involving senior management or appropriate executive committees in accordance with the scale of irregularities. In general, the purpose of the various loan portfolio monitoring methodologies above is to capture signs of deterioration as early as possible so that measures can be taken such as, adjustment of strategies, policies, appetite, credit risk exposure limits, as well as ensuring the adequacy of reserves and Bank capital to control credit risk. Credit risk control system reviews are performed by SKMR and SKAI in agreement with Risk Management Policy. Internal inspections are periodically carried out by Internal Audit and followed up by the related units. In addition, to improve the risk management process, the Bank has established an anti-fraud unit which among other matters aims to increase risk awareness of the Bank’s business risks. Annual Report CIMB NIAGA 2017
  269. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Definition of Matured Claims Matured Claims are claims that are overdue for more than 90 (ninety) days, either principal payment and or interest payments. The criteria used by CIMB Niaga in determining the objective evidence of impairment are as follows: - Significant financial difficulties experienced by the issuer or borrower. - Default or delinquency in interest or principal payments. - Observable data indicating a measurable decrease in the estimated future cash flow of a group of financial assets since initial recognition of the asset in question, although the decrease cannot be identified as individually in asset groups, including the deterioration of payment status of borrowers in the group. Annual Report CIMB NIAGA 2017 Consolidated Financial Report - The loss of an active market from the financial assets due to financial difficulties. Definition of Impairment A claim that has dropped in value/impaired is determined based on the financial asset or group of financial assets, and only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (loss event), and after the impact is estimated, the future cash flow of the financial asset or group of financial assets can be reliably estimated. Others Corporate Data Approach Used for Impairment Provision The approach used by the Bank for the formulation of Provision for Impairment Losses (CKPN), better known by the term “allowance for losses on earning assets and non-productive assets“, is conducted in accordance with the provisions set by regulators, by reserving for a loss of a certain minimum value on all productive and non-productive assets. Provision for impairment losses (CKPN) calculation can be divided into two approaches: • Individual Assessment: calculated, based on the discounted cash flow and fair value of collateral. • Collective Assessment: calculated based on the Probability of Default (PD), Loss Given Default (LGD), Exposure at Default (EAD), and Loss Identification Period (LIP). The Bank uses the migration analysis method and roll rate analysis in determining the PD. As for the LGD, the Bank uses the collateral shortfall and regularly carries out backtesting with an expected cash recovery approach. 269
  270. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT Quantitative Credit Risk Disclosure Table 2 .1.a. Disclosure of Net Claims by Area - Bank Only Position 31 December 2017 No. Disclosure of Net Claims by Area *) Portfolio Category Eastern Indonesia (1) (2) (3) Jabodetabek West Java (4) (5) Central Java East Java (6) Sumatera (7) (8) 1 Claims on Sovereigns - 50,733,172 - - - - 2 Claims on Public Sector Entities - 9,676,069 - - - 8,575 3 Claims on Multilateral Development Banks and International Institutions - - - - - - 4 Claims on Banks 1,139,900 6,529,422 115,664 486,186 78,760 773,287 5 Claims Secured by Residential Property 1,145,417 14,351,554 1,210,375 886,213 1,268,665 1,505,732 6 Claims Secured by Commercial Real Estate 281,465 6,326,815 97,261 578,416 540,950 1,086,509 7 Claims on Employees/Retirees 8 Claims on Micro, Small Business and Retail Portfolio - - - - - - 682,179 17,378,474 575,988 254,918 246,709 1,475,601 9 Claims on Corporates 4,102,043 83,688,157 5,145,035 10,173,929 13,346,026 10,613,653 10 Past due Loans 241,258 2,729,564 231,402 460,776 189,702 603,122 11 Other Assets 517,405 11,296,336 552,683 641,170 565,288 502,854   Total 8,109,667 202,709,562 7,928,408 13,481,608 16,236,100 16,569,334 *)The value of Net Claims presented in the table refers Circular Letter OJK No. 42/SEOJK.03/2016 regarding the Guidelines for Risk-Weighted Assets for Credit Risk under Standardized Approach Calculation. Table 2.1.b. Disclosure of Net Claims by Area - Consolidated Position 31 December 2017 No. Portfolio Category (1) (2) Disclosure of Net Claims by Area *) Eastern Indonesia Jabodetabek West Java Central Java East Java (3) (4) (5) (6) (7) Sumatera (8) 1 Claims on Sovereigns - 50,733,172 - - - - 2 Claims on Public Sector Entities - 9,676,069 - - - 8,575 3 Claims on Multilateral Development Banks and International Institutions - - - - - - 4 Claims on Banks 1,139,900 6,574,417 115,664 486,186 78,760 773,287 5 Claims Secured by Residential Property 1,145,417 14,351,554 1,210,375 886,213 1,268,665 1,505,732 6 Claims Secured by Commercial Real Estate 281,465 6,326,815 97,261 578,416 540,950 1,086,509 7 Claims on Employees/Retirees - - - - - - 8 Claims on Micro, Small Business and Retail Portfolio 682,179 19,838,163 575,988 254,918 246,709 1,475,601 9 Claims on Corporates 4,102,043 83,734,537 5,145,035 10,173,929 13,346,026 10,613,653 10 Past due Loans 241,258 2,782,104 231,402 460,776 189,702 603,122 11 Other Assets 517,405 11,634,832 552,683 641,170 565,288 502,854 8,109,667 205,651,662 7,928,408 13,481,608 16,236,100 16,569,334   Total *)The value of Net Claims presented in the table refers Circular Letter OJK No. 42/SEOJK.03/2016 regarding the Guidelines for Risk-Weighted Assets for Credit Risk under Standardized Approach Calculation. 270 Annual Report CIMB NIAGA 2017
  271. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report (in million Rupiah) Position 31 December 2016 Disclosure of Net Claims by Area *) Others (9) Total Eastern Indonesia (10) (11) Jabodetabek West Java (12) (13) Central Java East Java (14) (15) Sumatera Others (16) Total (17) (18) - 50,733,172 - 34,306,135 - - - - - 34,306,135 - 9,684,644 - 6,125,102 - - - 71 - 6,125,173 - - - - - - - - - - - 9,123,220 915,138 4,236,722 133,213 434,029 148,140 630,940 - 6,498,182 - 20,367,955 1,464,438 13,776,630 1,366,821 1,014,868 1,328,392 2,435,972 - 21,387,122 - 8,911,414 52,495 412,779 - 31,329 - 7,894 - 504,496 - - - - - - - - - - - 20,613,870 722,332 19,174,789 866,922 300,950 254,347 721,026 - 22,040,364 - 127,068,843 3,986,148 81,886,888 5,036,997 10,307,620 14,723,833 11,315,993 - 127,257,480 - 4,455,823 357,106 2,826,773 176,790 269,540 245,174 469,542 - 4,344,926 - 14,075,737 449,309 11,133,091 486,145 612,983 520,289 491,115 - 13,692,932 - 265,034,678 7,946,965 173,878,909 8,066,889 12,971,319 17,220,176 16,072,552 - 236,156,809 (in million Rupiah) Position 31 December 2016 Disclosure of Net Claims by Area *) Others Total Eastern Indonesia (9) (10) (11) Jabodetabek West Java Central Java East Java Sumatera Others (12) (13) (14) (15) (16) (17) Total (18) - 50,733,172 - 34,306,135 - - - - - 34,306,135 - 9,684,644 - 6,125,102 - - - 71 - 6,125,173 - - - - - - - - - - - 9,168,215 915,138 4,324,005 133,213 434,029 148,140 630,940 - 6,585,465 - 20,367,955 1,464,438 13,776,630 1,366,821 1,014,868 1,328,392 2,435,972 - 21,387,122 - 8,911,414 52,495 412,779 - 31,329 - 7,894 - 504,496 - - - - - - - - - - - 23,073,559 722,332 23,869,483 866,922 300,950 254,347 721,026 - 26,735,058 - 127,115,222 3,986,148 81,968,988 5,036,997 10,307,620 14,723,833 11,315,993 - 127,339,579 - 4,508,364 357,106 2,943,098 176,790 269,540 245,174 469,542 - 4,461,250 - 14,414,233 449,309 11,526,923 486,145 612,983 520,289 491,115 - 14,086,764 - 267,976,778 7,946,965 179,253,143 8,066,889 12,971,319 17,220,176 16,072,552 - 241,531,043 Annual Report CIMB NIAGA 2017 271
  272. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT Table 2 .2.a. Disclosure of Net Claims by Remaining Contract Term - Bank Only Position 31 December 2017 No. Portfolio Category (1) (2) 1 Claims on Sovereigns 2 Claims on Public Sector Entities 3 Claims on Multilateral Development Banks and International Institutions 4 Claims on Banks 5 Claims Secured by Residential Property 6 Claims Secured by Commercial Real Estate 7 Claims on Employees/Retirees 8 Claims on Micro, Small Business and Retail Portfolio 9 Claims on Corporates 10 Past due Loans 11 Other Assets   Total Disclosure of Net Claims by Remaining Contract Term *) < 1 year 1 year-3 years 3 year-5 years > 5 years Non Contractual (3) (4) (5) (6) (7) 34,563,621 8,103,306 3,803,528 4,262,717 - 4,615,253 3,495,168 779,691 794,532 - - - - - - 5,126,144 1,080,717 1,589,781 1,326,578 - 114,285 1,070,163 2,151,362 17,032,145 - 164,793 1,291,161 3,971,189 3,484,271 - - - - - - 6,159,606 7,793,145 3,551,516 3,109,602 - 80,280,811 11,012,650 14,471,175 21,304,207 - 1,955,263 599,137 736,170 1,165,253 - - - - - 14,075,737 132,979,776 34,445,447 31,054,413 52,479,305 14,075,737 *)The value of Net Claims presented in the table refers Circular Letter OJK No. 42/SEOJK.03/2016 regarding the Guidelines for Risk-Weighted Assets for Credit Risk under Standardized Approach Calculation. Table 2.2.b. Disclosure of Net Claims by Remaining Contract Term - Consolidated Position 31 December 2017 No. Portfolio Category (1) (2) 1 Claims on Sovereigns 2 Claims on Public Sector Entities 3 Claims on Multilateral Development Banks and International Institutions 4 Claims on Banks 5 Claims Secured by Residential Property 6 Claims Secured by Commercial Real Estate 7 Claims on Employees/Retirees 8 Claims on Micro, Small Business and Retail Portfolio 9 Claims on Corporates 10 Past due Loans 11 Other Assets   Total Disclosure of Net Claims by Remaining Contract Term *) < 1 year 1 year-3 years 3 year-5 years > 5 years Non Contractual (3) (4) (5) (6) (7) 34,563,621 8,103,306 3,803,528 4,262,717 - 4,615,253 3,495,168 779,691 794,532 - - - - - - 5,171,139 1,080,717 1,589,781 1,326,578 - 114,285 1,070,163 2,151,362 17,032,145 - 164,793 1,291,161 3,971,189 3,484,271 - - - - - - 6,375,388 9,221,535 4,356,458 3,120,177 - 80,283,249 11,035,349 14,481,481 21,304,207 10,936 1,962,712 626,123 754,276 1,165,253 - - - - - 14,414,233 133,250,440 35,923,522 31,887,766 52,489,881 14,425,169 *)The value of Net Claims presented in the table refers Circular Letter OJK No. 42/SEOJK.03/2016 regarding the Guidelines for Risk-Weighted Assets for Credit Risk under Standardized Approach Calculation. 272 Annual Report CIMB NIAGA 2017
  273. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report (in million Rupiah) Position 31 December 2016 Disclosure of Net Claims by Remaining Contract Term *) Total < 1 year 1 year-3 years 3 year-5 years > 5 years Non Contractual (8) (9) (10) (11) (11) (13) 50,733,172 23,842,295 3,102,996 2,016,897 5,343,947 9,684,644 4,160,574 652,292 302,389 - - - - Total (14) - 34,306,135 1,009,919 - 6,125,173 - - - 9,123,220 3,055,019 1,069,786 1,177,146 1,196,231 - 6,498,182 20,367,955 215,716 1,238,747 2,758,579 17,174,080 - 21,387,122 8,911,414 18,127 84,040 289,638 112,690 - 504,496 - - - - - - - 20,613,870 6,742,265 8,549,346 5,008,461 1,740,291 - 22,040,364 127,068,843 70,579,667 14,595,508 16,926,635 25,155,669 - 127,257,480 4,455,823 1,719,338 604,286 328,502 1,692,799 - 4,344,926 14,075,737 - - - - 13,692,932 13,692,932 265,034,678 110,333,002 29,897,001 28,808,248 53,425,626 13,692,932 236,156,809 (in million Rupiah) Position 31 December 2016 Disclosure of Net Claims by Remaining Contract Term *) Total < 1 year 1 year-3 years 3 year-5 years > 5 years Non Contractual (8) (9) (10) (11) (11) (13) 50,733,172 23,842,295 3,102,996 2,016,897 5,343,947 9,684,644 4,160,574 652,292 302,389 - - - - Total (14) - 34,306,135 1,009,919 - 6,125,173 - - - 9,168,215 3,142,303 1,069,786 1,177,146 1,196,231 - 6,585,465 20,367,955 215,716 1,238,747 2,758,579 17,174,080 - 21,387,122 8,911,414 18,127 84,040 289,638 112,690 - 504,496 - - - - - - - 23,073,559 7,015,140 10,447,655 7,506,329 1,765,933 - 26,735,058 127,115,222 70,580,888 14,616,313 16,934,728 25,155,669 51,981 127,339,579 4,508,364 1,731,281 640,552 396,618 1,692,799 - 4,461,250 14,414,233 - - - - 14,086,764 14,086,764 267,976,778 110,706,324 31,852,381 31,382,325 53,451,268 14,138,746 241,531,043 Annual Report CIMB NIAGA 2017 273
  274. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT Table 2 .3.a. Disclosure of Net Claims by Economic Sector - Bank Only No. Economic Sector *) Claims on Sovereigns Claims on Public Sector Entities Claims on Multilateral Development Banks and International Institutions Claims on Banks (2) (3) (4) (5) (6) (1) Position 31 December 2017 1 Agriculture. Hunting and Forestry - - - - 2 Fishery - - - - 3 Mining and Excavation - 77,701 - - 4 Manufacturing - - - - 5 Electricity, Gas and Water - - - - 6 Construction - 3,297,624 - - 7 Wholesale and Retail Trading - 3,004,565 - - 8 Hotel, Food & Beverage - - - - 9 Transportation, Warehousing and Communications - 469,501 - - 10 Financial Intermediary - 354,359 - 2,926,337 11 Real estate, Rental and Business Services - 24,823 - - 12 Public Administration, Defense and Compulsory Social Security - - - - 13 Education Services - - - - 14 Health Care and Social Work Activities - - - - 15 Public service, Socio-Culture, Entertainment and Other Personal Services - - - - 16 Domestic Service - - - - 17 International Institution and Other Extra International Institution - - - - 18 Activities with no Specific Limitation - - - - 19 Non Business Field - - - - 20 Others 50,733,172 2,456,072 - 6,196,883 50,733,172 9,684,644 - 9,123,220 Total Position 31 December 2016 1 Agriculture. Hunting and Forestry - - - - 2 Fishery - - - - 3 Mining and Excavation - - - - 4 Manufacturing - - - - 5 Electricity, Gas and Water - - - - 6 Construction - 1,040,750 - - 7 Wholesale and Retail Trading - 2,633,020 - - 8 Hotel, Food & Beverage - - - - 9 Transportation, Warehousing and Communications - 464,516 - - 10 Financial Intermediary - 307,485 - 2,518,586 11 Real estate, Rental and Business Services - 202,841 - - 12 Public Administration, Defense and Compulsory Social Security - - - - 13 Education Services - - - - 14 Health Care and Social Work Activities - - - - 15 Public service, Socio-Culture, Entertainment and Other Personal Services - - - - 16 Domestic Service - - - - 17 International Institution and Other Extra International Institution - - - - 18 Activities with no Specific Limitation - - - - 19 Non Business Field - - - - 20 Others 34,306,135 1,476,561 - 3,979,596 Total 34,306,135 6,125,173 - 6,498,182 *)The classification of economic sector refers to the sectors listed in the Commercial Banks Monthly Report (LBU), with additional other sectors for economic sectors of claims that cannot be classified into existing sectors. 274 Annual Report CIMB NIAGA 2017
  275. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report (in million Rupiah) Claims Secured by Residential Property Claims Secured by Commercial Real Estate Claims on Employees/ Retirees Claims on Micro, Small Business and Retail Portfolio Claims on Corporates Past due Loans Other Assets (7) (8) (9) (10) (11) (12) (13) - 792,014 - 2,487 14,162,858 163,409 - - 6,288 - - 644,524 - - - 1,067 - 676 1,297,807 189,813 - - 1,621,191 - 50,138 36,818,585 574,667 - - - - 1,154 1,080,457 2,577 - - 95,223 - 10,659 3,323,335 172,285 - - 867,020 - 229,505 24,457,649 1,041,532 - - 2,022,897 - 5,290 5,183,219 775,309 - - 15,777 - 17,519 3,601,148 79,300 - - 68,189 - 15,744 9,313,654 96,123 - - 3,257,702 - 325,059 9,893,073 316,694 - - - - - - - - - 31,220 - 2,587 31,232 - - - 62,551 - 2,190 404,967 281 - - 67,298 3,620,777 1,012,570 116,320 - - 2,977 - - 25,446 1,326 - - - - - - - - 20,367,955 - - 16,169,363 3,890,721 926,187 - - - - - - - - - - - - 160,722 11,927,598 - 14,075,737 20,367,955 8,911,414 - 20,613,870 127,068,843 4,455,823 14,075,737 - 885 - 72,943 12,577,807 145,507 - - - - 88,833 401,343 458 - - - - 1,466 1,213,109 12,699 - - 31,279 - 121,069 35,446,954 678,969 - - - - 1,416 507,563 2,884 - - 291,321 - 16,095 3,466,318 64,731 - - 9,750 - 528,798 24,142,093 1,243,088 - - 159,389 - 24,761 7,151,746 285,333 - - 2,926 - 29,497 3,523,068 121,929 - - 629 - 28,834 10,167,599 183,398 - - 4,900 - 1,043,802 13,035,825 580,367 - - - - - - - - - - - 3,924 92,494 - - - 3,201 - 11,034 431,737 930 - - 101 5,319,049 1,668,186 77,656 - - 116 - 6,970 14,629 462 - - - - - - - - - - - - 9,168 - - 21,387,122 - - 14,567,384 2,405,948 946,514 - - - - 174,488 11,001,892 - 13,692,932 21,387,122 504,496 - 22,040,364 127,257,480 4,344,926 13,692,932 Annual Report CIMB NIAGA 2017 - 275
  276. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT Table 2 .3.b. Disclosure of Net Claims by Economic Sector - Consolidated No. Economic Sector *) Claims on Sovereigns Claims on Public Sector Entities Claims on Multilateral Development Banks and International Institutions Claims on Banks (2) (3) (4) (5) (6) (1) Position 31 December 2017 1 Agriculture, Hunting and Forestry - - - - 2 Fishery - - - - 3 Mining and Excavation - 77,701 - - 4 Manufacturing - - - - 5 Electricity, Gas and Water - - - - 6 Construction - 3,297,624 - - 7 Wholesale and Retail Trading - 3,004,565 - - 8 Hotel, Food & Beverage - - - - 9 Transportation, Warehousing and Communications - 469,501 - - 10 Financial Intermediary - 354,359 - 2,926,337 11 Real estate, Rental and Business Services - 24,823 - - 12 Public Administration, Defense and Compulsory Social Security - - - - 13 Education Services - - - - 14 Health Care and Social Work Activities - - - - 15 Public service, Socio-Culture, Entertainment and Other Personal Services - - - - 16 Domestic Service - - - - 17 International Institution and Other Extra International Institution - - - - 18 Activities with no Specific Limitation - - - - 19 Non Business Field - - - - 20 Others 50,733,172 2,456,072 - 6,241,877 50,733,172 9,684,644 - 9,168,215 Total Position 31 December 2016 1 Agriculture, Hunting and Forestry - - - - 2 Fishery - - - - 3 Mining and Excavation - - - - 4 Manufacturing - - - - 5 Electricity, Gas and Water - - - - 6 Construction - 1,040,750 - - 7 Wholesale and Retail Trading - 2,633,020 - - 8 Hotel, Food & Beverage - - - - 9 Transportation, Warehousing and Communications - 464,516 - - 10 Financial Intermediary - 307,485 - 2,518,586 11 Real estate, Rental and Business Services - 202,841 - - 12 Public Administration, Defense and Compulsory Social Security - - - - 13 Education Services - - - - 14 Health Care and Social Work Activities - - - - 15 Public service, Socio-Culture, Entertainment and Other Personal Services - - - - 16 Domestic Service - - - - 17 International Institution and Other Extra International Institution - - - - 18 Activities with no Specific Limitation - - - - 19 Non Business Field - - - - 20 Others 34,306,135 1,476,561 - 4,066,880 Total 34,306,135 6,125,173 - 6,585,465 *)The classification of economic sector refers to the sectors listed in the Commercial Banks Monthly Report (LBU), with additional other sectors for economic sectors of claims that cannot be classified into existing sectors. 276 Annual Report CIMB NIAGA 2017
  277. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report (in million Rupiah) Claims Secured by Residential Property Claims Secured by Commercial Real Estate Claims on Employees/ Retirees Claims on Micro, Small Business and Retail Portfolio Claims on Corporates Past due Loans Other Assets (7) (8) (9) (10) (11) (12) (13) - 792,014 - 4,879 14,162,858 163,409 - - 6,288 - - 644,524 - - - 1,067 - 4,583 1,297,807 189,813 - - 1,621,191 - 59,140 36,818,585 574,667 - - - - 1,154 1,080,457 2,577 - - 95,223 - 23,280 3,323,335 172,464 - - 867,020 - 278,972 24,460,702 1,041,927 - - 2,022,897 - 6,497 5,183,219 775,309 - - 15,777 - 30,235 3,601,148 79,742 - - 68,189 - 16,700 9,313,654 96,123 - - 3,257,702 - 330,621 9,893,073 316,847 - - - - 402 - 1 - - 31,220 - 3,212 31,232 - - - 62,551 - 34,129 409,562 734 - - 67,298 - 3,621,660 1,012,570 116,320 - - 2,977 - 7,196 25,446 1,735 - - - - - - - - 20,367,955 - - 18,490,179 3,918,516 976,696 - - - - - - - - - - - 160,722 11,938,534 - 14,414,233 20,367,955 8,911,414 - 23,073,559 127,115,222 4,508,364 14,414,233 - 885 - 75,906 12,577,807 145,677 - - - - 88,833 401,343 458 - - - - 5,191 1,213,109 12,777 - - 31,279 - 134,208 35,446,954 678,969 - - - - 1,416 507,563 2,884 - - 291,321 - 36,994 3,466,318 64,747 - - 9,750 - 614,628 24,144,391 1,243,937 - - 159,389 - 26,136 7,151,746 285,333 - - 2,926 - 50,635 3,524,254 122,140 - - 629 - 30,066 10,167,599 183,398 - - 4,900 - 1,052,427 13,035,825 580,367 - - - - 1,311 - - - - - - 4,857 92,494 - - - 3,201 - 58,372 435,508 1,066 - - 101 - 5,320,100 1,668,186 77,656 - - 116 - 18,706 14,629 658 - - - - - - - - - - - - 9,168 - - 21,387,122 - - 19,040,783 2,428,812 1,061,183 - - - - 174,488 11,053,874 - 14,086,764 21,387,122 504,496 - 26,735,058 127,339,579 4,461,250 14,086,764 Annual Report CIMB NIAGA 2017 277
  278. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT Table 2 .4.a. Disclosure of Claims and Allowance by Region - Bank Only Position 31 December 2017 No. Description (1) (2) 1 Loans 2 Impaired Loans Area Jabodetabek West Java Central Java East Java Eastern Indonesia (3) (4) (5) (6) (7) 203,334,953 7,749,632 13,586,053 16,106,344 Sumatera (8) 8,256,863 16,312,297 a. Non Past Due 1,808,599 133,620 97,118 23,916 156 192,490 b. Past Due 4,217,425 217,813 860,623 588,400 450,718 792,972 3 Allowance for Impairment Losses - Individual 2,663,297 46,456 327,808 290,257 202,836 232,228 4 Allowance for Impairment Losses - Collective 702,358 139,698 130,566 79,878 2,603,615 139,219 5 Write off 4,824,031 124,982 325,113 75,729 129,415 160,938 Table 2.4.b. Disclosure of Claims and Allowance by Region - Consolidated Position 31 December 2017 No. Description (1) (2) 1 Loans 2 Impaired Loans Area Jabodetabek West Java Central Java East Java Eastern Indonesia (3) (4) (5) (6) (7) 206,559,737 7,749,632 13,586,053 16,106,344 Sumatera (8) 8,256,863 16,312,297 a. Non Past Due 1,808,599 133,620 97,118 23,916 156 192,490 b. Past Due 4,217,425 217,813 860,623 588,400 450,718 792,972 3 Allowance for Impairment Losses - Individual 2,663,297 46,456 327,808 290,257 202,836 232,228 4 Allowance for Impairment Losses - Collective 702,358 139,698 130,566 79,878 2,603,615 139,219 5 Write off 4,824,031 124,982 325,113 75,729 129,415 160,938 278 Annual Report CIMB NIAGA 2017
  279. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report (in million Rupiah) Position 31 December 2016 Area Others Total Jabodetabek West Java Central Java East Java Eastern Indonesia Sumatera Others (9) (10) (11) (12) (13) (14) (15) (16) (17) - 265,346,141 176,313,850 7,794,378 13,119,157 17,140,772 8,053,109 15,797,170 - 238,218,436 - 2,255,899 3,917,874 110,545 337,152 201,410 272,438 380,263 - 5,219,682 - 7,127,951 2,378,779 241,702 267,273 648,429 254,425 305,020 - 4,095,628 - 3,762,882 2,634,278 54,607 232,379 417,032 154,904 212,220 - 3,705,420 - 3,795,334 3,891,869 163,200 135,459 158,085 96,127 176,689 - 4,621,429 - 5,640,208 3,117,854 225,005 110,364 35,204 72,116 148,282 - 3,708,825 Total (18) (in million Rupiah) Position 31 December 2016 Area Others Total Jabodetabek West Java Central Java East Java Eastern Indonesia Sumatera Others (9) (10) (11) (12) (13) (14) (15) (16) (17) 268,570,925 182,175,914 - 7,794,378 13,119,157 17,140,772 8,053,109 15,797,170 Total (18) - 244,080,499 - 2,255,899 3,917,874 110,545 337,152 201,410 272,438 380,263 - 5,219,682 54,746 7,182,697 2,378,779 241,702 267,273 648,429 254,425 305,020 128,084 4,223,712 - 3,762,882 2,634,278 54,607 232,379 417,032 154,904 212,220 - 3,705,420 355,483 4,150,817 3,891,869 163,200 135,459 158,085 96,127 176,689 487,830 5,109,259 286,716 5,926,924 3,117,854 225,005 110,364 35,204 72,116 148,282 - 3,708,825 Annual Report CIMB NIAGA 2017 279
  280. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT Table 2 .5.a. Disclosure of Claims and Allowance by Economic Sector - Bank Only (in million Rupiah) Impaired Loans No. Economic Sector *) Claim **) (2) (3) (1) Allowance for Impairment Losses - Collective Write off (8) Current Past Due Allowance for Impairment Losses - Individual (4) (5) (6) (7) 129,747 258,770 152,066 144,703 Position 31 December 2017 1 Agriculture, Hunting and Forestry 2 Fishery 15,229,770 - 654,350 3 Mining and Excavation 4 Manufacturing - 2,219,509 754,023 403,355 671,246 9,774 - 39,057,359 59,003 1,045,211 418,990 290,409 - 5 Electricity, Gas and Water 1,029,348 - 3,835 - 5,876 - 6 Construction 6,970,279 17,940 116,770 23,161 139,837 - 30,290,161 211,689 3,536,839 1,595,237 817,018 7 Wholesale and Retail Trading 8 Hotel, Food & Beverage 8,680,313 9 Transportation, Warehousing and Communications 4,333,009 10 Financial Intermediary 12,514,633 11 Real estate, Rental and Business Services 13,897,112 12 Public Administration, Defense and Compulsory Social Security 13 Education Services 14 Health Care and Social Work Activities 15 Public service, Socio-Culture, Entertainment and Other Personal Services 16 Domestic Service 17 International Institution and Other Extra International Institution 18 Activities with no Specific Limitation 19 Non Business Field 20 Others Total - 576,517 117,960 343,273 45,434 - 298,646 1,304,419 512,316 452,723 - - - - 63,460 - 452,587 - 5,422,957 - 163,294 - 645,288 - 29,248 - - - 42,282,746 - - - 82,219,298 208,334 177,498 46,593 1,244,272 5,640,208 265,346,141 2,255,899 7,127,951 3,762,882 3,795,334 5,640,208 12,821,581 107,603 135,739 81,492 201,339 - 530,044 - - - - - Position 31 December 2016 1 Agriculture, Hunting and Forestry 2 Fishery 3 Mining and Excavation 4 Manufacturing 5 Electricity, Gas and Water 6 Construction 1,474,465 343,426 1,546 259,715 25,409 - 36,879,334 1,263,470 1,313,981 1,526,776 363,300 - 459,380 36,928 4,220 21,449 6,957 - 4,879,996 15,674 81,357 11,770 50,966 - 7 Wholesale and Retail Trading 28,437,136 1,025,126 1,136,204 598,080 934,310 - 8 Hotel, Food & Beverage 8,162,786 - - - - - 9 Transportation, Warehousing and Communications 4,768,659 186,328 82,242 118,002 690,895 - 10 Financial Intermediary 13,483,621 - - - - - 11 Real estate, Rental and Business Services 15,731,094 1,930,258 1,101,928 1,096,555 545,904 - 12 Public Administration, Defense and Compulsory Social Security - - - - - - 13 Education Services 14 Health Care and Social Work Activities 15 Public service, Socio-Culture, Entertainment and Other Personal Services 16 Domestic Service 17 International Institution and Other Extra International Institution 18 Activities with no Specific Limitation 19 Non Business Field 20 Others Total 95,269 - - - - - 448,598 - - - - - 7,253,251 9,335 151,526 - 230,223 - 22,794 - - - - - - - - - - - 8,515 - - - - - 40,282,155 - - - - - 62,479,759 301,534 86,885 (8,419) 1,572,126 3,708,825 238,218,436 5,219,682 4,095,628 3,705,420 4,621,429 3,708,825 *) Classification of economic sector refers to the economic sectors listed in the Commercial Bank Monthly Report (LBU), with additional other sectors for economic sectors of claims that cannot be classified into existing sectors. **)Gross claims (before allowance for impairment losses). 280 Annual Report CIMB NIAGA 2017
  281. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Table 2 .5.b. Disclosure of Claims and Allowance by Economic Sector - Consolidated Impaired Loans No. Economic Sector *) Claim **) (2) (3) (1) (in million Rupiah) Allowance for Impairment Losses - Individual Allowance for Impairment Losses - Collective Write off (8) Current Past Due (4) (5) (6) (7) 129,747 258,770 152,066 144,703 Position 31 December 2017 1 Agriculture, Hunting and Forestry 2 Fishery 15,232,429 - 654,350 3 Mining and Excavation 4 Manufacturing - 2,223,851 754,023 403,355 671,246 9,774 - 39,067,364 59,003 1,045,211 418,990 290,409 - 5 Electricity, Gas and Water 1,029,348 - 3,835 - 5,876 - 6 Construction 6,984,486 17,940 116,770 23,161 139,837 - 30,348,588 211,689 3,536,839 1,595,237 817,018 7 Wholesale and Retail Trading 8 Hotel, Food & Beverage 8,681,654 9 Transportation, Warehousing and 4,347,583 - 576,517 117,960 343,273 45,434 - 298,646 1,304,419 512,316 452,723 - Communications 10 Financial Intermediary 12,515,695 11 Real estate, Rental and Business Services 13,903,447 12 Public Administration, Defense and - 447 - Compulsory Social Security 13 Education Services 14 Health Care and Social Work Activities 15 Public service, Socio-Culture, Entertainment 16 Domestic Service 17 International Institution and Other Extra 18 Activities with no Specific Limitation 19 Non Business Field 64,154 - 493,133 - 5,423,938 - 163,294 - 645,288 - and Other Personal Services 37,655 - - - International Institution 20 Others Total 44,940,407 - - - 82,622,396 208,334 232,244 1,599,755 5,926,924 268,570,925 2,255,899 7,182,697 3,762,882 46,593 4,150,817 5,926,924 12,824,988 107,603 135,739 81,492 201,339 - 530,044 - - - - - Position 31 December 2016 1 Agriculture, Hunting and Forestry 2 Fishery 3 Mining and Excavation 4 Manufacturing 5 Electricity, Gas and Water 6 Construction 1,478,612 343,426 1,546 259,715 25,409 - 36,893,687 1,263,470 1,313,981 1,526,776 363,300 - 459,380 36,928 4,220 21,449 6,957 - 4,902,844 15,674 81,357 11,770 50,966 - 7 Wholesale and Retail Trading 28,534,047 1,025,126 1,136,204 598,080 934,310 - 8 Hotel, Food & Beverage 8,164,287 - - - - - 9 Transportation, Warehousing and 4,793,149 186,328 82,242 118,002 690,895 - Communications 10 Financial Intermediary 13,484,966 - - - - - 11 Real estate, Rental and Business Services 15,740,517 1,930,258 1,101,928 1,096,555 545,904 - 12 Public Administration, Defense and 1,432 - - - - - Compulsory Social Security 13 Education Services 14 Health Care and Social Work Activities 15 Public service, Socio-Culture, Entertainment 96,288 - - - - - 504,220 - - - - - 7,254,399 9,335 151,526 - 230,223 - and Other Personal Services 16 Domestic Service 17 International Institution and Other Extra 18 Activities with no Specific Limitation 19 Non Business Field 35,810 - - - - - - - - - - - International Institution 20 Others Total 8,515 - - - - - 45,306,626 - - - - - 63,066,688 301,534 214,969 (8,419) 2,059,956 3,708,825 244,080,499 5,219,682 4,223,712 3,705,420 5,109,259 3,708,825 *) Classification of economic sector refers to the economic sectors listed in the Commercial Bank Monthly Report (LBU), with additional other sectors for economic sectors of claims that cannot be classified into existing sectors. **)Gross claims (before allowance for impairment losses). Annual Report CIMB NIAGA 2017 281
  282. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT Table 2 .6.a. Disclosure of Detailed Movements in Allowance for Impairment Losses - Bank Only   Position 31 December 2017 No. Allowance for Impairment Losses Individual Description (1) (2) 1 (3) Beginning Balance - Allowance for Impairment Losses 2 Additional/reversal on allowance for impairment losses during the year   2a. Additional allowance for impairment losses during the year   2b. Reversal allowance for impairment losses during the year 3 Allowance for impairment losses used for write off 4 Other additional (reversal) of allowance* Allowance for Impairment Losses Individual (5) 4,621,429 (6) 3,718,291 2,213,119 - 1,510,639 2,355,029 - - - (3,308,498) 33,391 971,764 3,762,882 3,795,334 Allowance for Impairment Losses Collective 3,824,784 2,355,781 (2,331,710) Ending Balance Allowance for Impairment Losses Allowance for Impairment Losses Collective (4) 3,705,420 (in million Rupiah) Position 31 December 2016 (2,433,055) (41,338) 3,705,420 (1,275,770) (34,211) 4,621,429 * Include differences of exchange rate Table 2.6.b. Disclosure of Detailed Movements in Allowance for Impairment Losses - Consolidated (in million Rupiah) Position 31 December 2017 No. (1) 1 (2) (3) Beginning Balance - Allowance for Impairment Losses 2 Additional/reversal on allowance for impairment losses during the year   2a. Additional allowance for impairment losses during the year   2b. Reversal allowance for impairment losses during the year 3 Allowance for impairment losses used for write off 4 Allowance for Impairment Losses Individual Description Allowance for Impairment Losses Individual (5) 5,109,259 (6) 4,104,503 2,617,922 - 1,724,024 2,355,029 - - - (3,595,214) 33,391 912,748 3,762,882 4,150,817 Allowance for Impairment Losses Collective 3,824,784 2,355,781 (2,331,710) Other additional (reversal) of allowance* Allowance for Impairment Losses Collective (4) 3,705,420 Ending Balance Allowance for Impairment Losses Position 31 December 2016 (2,433,055) (41,338) 3,705,420 (1,275,770) (337,396) 5,109,259 * Include differences of exchange rate 2.  CREDIT RISK DISCLOSURE WITH THE STANDARDIZED APPROACH CIMB Niaga has a Credit Risk Standardized Approach (CRISTA) application for calculating credit risk weighted asset in accordance with OJK Letter No. 42/SEOJK.03/2016, dated 28 September 2016, regarding Guidelines to Calculate Risk Weighted Assets (RWA) for Credit Risk using the Standardized Approach, to take effect from September 2016. 282 Rating Utilization Policy for Credit Risk RWA Calculation In accordance with the methodologies to measure credit risk using the standardized approach, the calculation of Risk Weighted Assets (RWA) in general is based on the result of ratings issued by external rating agencies. Based on the regulation (OJK), credit exposures included in the calculation of Risk Weighted Assets (RWA) for standard loans are: • Exposures in balance sheet asset and liabilities as well as contingencies in administrative account transactions, but excluding trading book positions calculated in RWA market risk and including those taken into account as a reduction of capital. • Exposures that cause credit risk due to failure of the counterparty. • Exposures of sales and purchases of financial instruments that may lead to credit risk as a result of settlement failure. • Exposures of Securities. • Exposures of the Sharia Business Unit (UUS). Annual Report CIMB NIAGA 2017
  283. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Credit RWA calculations performed using the standardized approach conform to regulator provisions . Portfolio Category Using External Rating Based on the standardized approach, RWA calculation for some portfolio categories is based on external ratings and risk weights are partly determined in accordance with regulator provisions; however, many do not have a rating (unrated) such that the weighting becomes more conservative. Rating Agencies Commissioned CIMB Niaga uses the latest ratings from rating agencies. Based on Circular OJK Letter No. 37/ SEOJK.03/2016 dated 8 September 2016 on Rating and Rating Agencies Acknowledged by the Financial Services Authority, as well as recognized ratings on the OJK website as of 31 December 2017, the acknowledged rating agencies are Fitch Ratings, Moody’s Investor Service, Standard & Poor’s, PT Fitch Ratings Indonesia, and PT Pemeringkat Efek Indonesia. Disclosure of Counterparty Credit Risk Counterparty credit risk arising from transactions affected by fair value or market value movements, affected by movement of particular market variables, which generate an exchange of cash flows or financial instruments, and is bilateral in nature. Exposures included in this risk category are Over the Counter (OTC) derivative transactions and repo or reverse repo transactions, both on the Trading Book and Banking Book. Potential Future Exposures (PFE) are the potential gains of a transaction agreement/transaction contract during the remaining life of the contract (such as spots, forwards, derivatives, etc) that are determined based on a certain percentage of the principal amount of the agreement/transaction contract. PFE is calculated by using a certain percentage based on the underlying instrument and the remaining term based on guidelines of regulators. Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report CIMB Niaga applies a transaction limit, which requires that the transaction agreement with counterparties can be conducted through a master agreement that has been internationally recognized, such as the ISDA (International Swaps and Derivatives Association). In order to reduce credit risk exposure, the Bank requires that a particular client or counterparty provides additional collateral in the form of cash or other similar instruments through a CSA (Credit Support Annex) scheme. CIMB Niaga has established an internal policy governing the methodology used in determining the credit limit associated with counterparty credit risk. The methodology used by the Bank relies on the level of the Bank’s capital, as well as a number of multiplier factors such as country risk rating that is taken from the International Country Risk Guide, risk rating of the related counterparty, risk appetite that has been set by management, as well as risk weight that is a derivative factor from a Loss Given Default (LGD) of a country or the related counterparty. The policies set the credit limits for the counterparties are part of risk management policy as a whole. Counterparty credit risk mitigation instruments received by the Bank refer to regulation, particularly in the form of margin collateral in the form of cash. Related to counterparty credit risk, from 1 January 2018, calculation must refer to OJK Letter No. 48/SEOJK.03/2017, dated 15 September 2017, regarding Guidelines for Net Claims calculation on Derivative Transactions in the Calculation Risk Weighted Assets for Credit Risk calculation using Standardized Approach. 283
  284. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT Disclosure of Quantitative Counterparty Credit Risk Table 3 .1.a. Disclosure of Net Claims by Portfolio Category and Rating Category - Bank Only Rating Agency    No.   Portfolio Category (1) Long Term Rating Standard and Poor’s AAA AA+ up to AA- Fitch Rating AAA Moody’s Aaa PT Fitch Ratings Indonesia PT Pemeringkat Efek Indonesia (2) (3) A+ up to A- BBB+ up to BBB- BB+ up to BB- AA+ up to AA- A+ up to A- BBB+ up to BBB- BB+ up to BB- Aa1 up to Aa3 A1 up to A3 Baa1 up to Baa3 Ba1 up to Ba3 AAA (idn) AA+(idn) up to AA-(idn) A+(idn) up to A-(idn) BBB+(idn) up to BBB-(idn) BB+(idn) up to BB-(idn) idAAA idAA+ up to idAA- idA+ up to id A- id BBB+ up to id BBB- id BB+ up to id BB- (4) (5) (6) (7) (8) 1 Claims on Sovereigns   266,629 2 Claims on Public Sector Entities   1,720,181 3 Claims on Multilateral Development Banks and International Institutions   4 Claims on Banks   5 Claims Secured by Residential Property   6 Claims Secured by Commercial Real Estate   7 Claims on Employees/Retirees   8 Claims on Micro, Small Business and Retail Portfolio   9 Claims on Corporates   10 Past due Loans   Other Assets   Total   11   26,197,138 208,690 488,433 846,060 685,215 38,405 2,133 - 4,018,516 380,650 431,478 6,851,386 1,274,556 469,882 26,687,705 - *)The value of Net Claims presented in the table refers Circular Letter OJK No. 42/SEOJK.03/2016 regarding the Guidelines for Risk-Weighted Assets for Credit Risk under Standardized Approach Calculation. Rating Agency    No.   Portfolio Category (1) (2) Long Term Rating Standard and Poor’s AAA AA+ up to AA- Fitch Rating AAA Moody’s Aaa PT Fitch Ratings Indonesia PT Pemeringkat Efek Indonesia (3) A+ up to A- BBB+ up to BBB- BB+ up to BB- AA+ up to AA- A+ up to A- BBB+ up to BBB- BB+ up to BB- Aa1 up to Aa3 A1 up to A3 Baa1 up to Baa3 Ba1 up to Ba3 AAA (idn) AA+(idn) up to AA-(idn) A+(idn) up to A-(idn) BBB+(idn) up to BBB-(idn) BB+(idn) up to BB-(idn) idAAA idAA+ up to idAA- idA+ up to id A- id BBB+ up to id BBB- id BB+ up to id BB- (6) (7) (8) (4) (5) 1 Claims on Sovereigns 262,953 - - 16,845,686 - - 2 Claims on Public Sector Entities 762,891 285,252 - 392,434 - - 3 Claims on Multilateral Development Banks and International Institutions - - - - - - 4 Claims on Banks 730,833 633,883 66,637 - - 5 Claims Secured by Residential Property   6 Claims Secured by Commercial Real Estate   7 Claims on Employees/Retirees   8 Claims on Micro, Small Business and Retail Portfolio   9 Claims on Corporates 10 Past due Loans 11   2,794,923 480,690 216,702 - -   Other Assets Total 1,262   4,551,601 1,399,826 283,339 17,238,120 - 1,262 *)The value of Net Claims presented in the table refers Circular Letter OJK No. 42/SEOJK.03/2016 regarding the Guidelines for Risk-Weighted Assets for Credit Risk under Standardized Approach Calculation. 284 Annual Report CIMB NIAGA 2017
  285. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report (in million Rupiah) Position 31 December 2017  Net Claims *) Short Term Rating B+ up to B- Below B- A-1 A-2 A-3 Below A-3 B+ up to B- Below B- F1+ up to F1 F2 F3 Below F3 B1 up to B3 Below B3 P-1 P-2 P-3 Below P-3 B+(idn) up to B-(idn) Below B-(idn) F1+(idn) up to F1 (idn) F2 (idn) F3 (idn) Below F3 (idn) id B+ up to id B- Below idB- idA1 idA2 idA3 up to id A4 Below idA4 (9) (10) (11) (12) (13) (14) Unrated (15) - - - - - - (16) 24,269,404 50,733,172 7,267,340 9,684,644 - - 7,551,406 9,123,220 20,367,955 20,367,955 8,911,414 8,911,414 - - Total - - 20,613,870 20,613,870 122,238,198 127,068,843 4,455,823 4,455,823 14,075,737 14,075,737 229,751,149 265,034,678 (in million Rupiah) Position 31 December 2016  Net Claims *) Short Term Rating B+ up to B- Below B- A-1 A-2 B+ up to B- Below B- F1+ up to F1 F2 F3 Below F3 B1 up to B3 Below B3 P-1 P-2 P-3 Below P-3 B+(idn) up to B-(idn) Below B-(idn) F1+(idn) up to F1 (idn) F2 (idn) F3 (idn) Below F3 (idn) id B+ up to id B- Below idB- idA1 idA2 idA3 up to id A4 Below idA4 (9) (10) (13) (14) (11) A-3 (12) Below A-3 Unrated Total (15) (16) - - - - - - 17,197,496 34,306,135 - - - - - - 4,684,596 6,125,173 - - - - - - - - - - - - - - - - Annual Report CIMB NIAGA 2017 - - - - - - - - - - 5,066,829 6,498,182 21,387,122 21,387,122 504,496 504,496 - - 22,040,364 22,040,364 123,765,164 127,257,480 4,344,926 4,344,926 13,692,932 13,692,932 212,683,924 236,156,809 285
  286. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT Table 3 .1.b. Disclosure of Net Claims by Portfolio Category and Rating Category – Consolidated     Rating Agency  No. Portfolio Category (1) Long Term Rating Standard and Poor’s AAA AA+ up to AA- Fitch Rating AAA Moody’s Aaa PT Fitch Ratings Indonesia PT Pemeringkat Efek Indonesia (2) (3) A+ up to A- BBB+ up to BBB- BB+ up to BB- AA+ up to AA- A+ up to A- BBB+ up to BBB- BB+ up to BB- Aa1 up to Aa3 A1 up to A3 Baa1 up to Baa3 Ba1 up to Ba3 AAA (idn) AA+(idn) up to AA-(idn) A+(idn) up to A-(idn) BBB+(idn) up to BBB-(idn) BB+(idn) up to BB-(idn) idAAA idAA+ up to idAA- idA+ up to id A- id BBB+ up to id BBB- id BB+ up to id BB- (4) (5) (6) (7) (8) 1 Claims on Sovereigns   266,629 2 Claims on Public Sector Entities   1,720,181 3 Claims on Multilateral Development Banks and International Institutions   4 Claims on Banks   5 Claims Secured by Residential Property   6 Claims Secured by Commercial Real Estate   7 Claims on Employees/Retirees   8 Claims on Micro, Small Business and Retail Portfolio   9 Claims on Corporates   10 Past due Loans   Other Assets   Total   11   26,197,138 208,690 488,433 846,060 685,215 38,405 2,133 - 4,018,516 380,650 431,478 6,851,386 1,274,556 469,882 26,687,705 - *)The value of Net Claims presented in the table refers Circular Letter OJK No. 42/SEOJK.03/2016 regarding the Guidelines for Risk-Weighted Assets for Credit Risk under Standardized Approach Calculation.     Rating Agency  No. Portfolio Category (1) Long Term Rating Standard and Poor’s AAA AA+ up to AA- A+ up to A- BBB+ up to BBB- BB+ up to BB- Fitch Rating AAA AA+ up to AA- A+ up to A- BBB+ up to BBB- BB+ up to BB- Moody’s Aaa Aa1 up to Aa3 A1 up to A3 Baa1 up to Baa3 Ba1 up to Ba3 PT Fitch Ratings Indonesia AAA (idn) AA+(idn) up to AA-(idn) A+(idn) up to A-(idn) BBB+(idn) up to BBB-(idn) BB+(idn) up to BB-(idn) PT Pemeringkat Efek Indonesia idAAA idAA+ up to idAA- idA+ up to id A- id BBB+ up to id BBB- id BB+ up to id BB- (4) (5) (6) (7) (8) (2) (3) 1 Claims on Sovereigns   262,953 - - 16,845,686 - 2 Claims on Public Sector Entities   762,891 285,252 - 392,434 - 3 Claims on Multilateral Development Banks and International Institutions   - - - - - 4 Claims on Banks   730,833 633,883 66,637 - - 5 Claims Secured by Residential Property   6 Claims Secured by Commercial Real Estate   7 Claims on Employees/Retirees   8 Claims on Micro, Small Business and Retail Portfolio   9 Claims on Corporates   2,794,923 480,690 216,702 - - 10 Past due Loans   Other Assets   Total   4,551,601 1,399,826 283,339 17,238,120 - 11   *)The value of Net Claims presented in the table refers Circular Letter OJK No. 42/SEOJK.03/2016 regarding the Guidelines for Risk-Weighted Assets for Credit Risk under Standardized Approach Calculation. 286 Annual Report CIMB NIAGA 2017
  287. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report (in million Rupiah) Position 31 December 2017  Net Claims *) Short Term Rating B+ up to B- Below B- A-1 A-2 A-3 Below A-3 B+ up to B- Below B- F1+ up to F1 F2 F3 Below F3 B1 up to B3 Below B3 P-1 P-2 P-3 Below P-3 B+(idn) up to B-(idn) Below B-(idn) F1+(idn) up to F1 (idn) F2 (idn) F3 (idn) Below F3 (idn) id B+ up to id B- Below idB- idA1 idA2 idA3 up to id A4 Below idA4 (9) (10) (11) (12) (13) (14) Unrated (15) - - - - - - (16) 24,269,404 50,733,172 7,267,340 9,684,644 - - 7,596,401 9,168,215 20,367,955 20,367,955 8,911,414 8,911,414 - - Total - - 23,073,559 23,073,559 122,284,578 127,115,222 4,508,364 4,508,364 14,414,233 14,414,233 232,693,249 267,976,778 (in million Rupiah) Position 31 December 2016  Net Claims *) Short Term Rating B+ up to B- Below B- A-1 A-2 A-3 B+ up to B- Below B- F1+ up to F1 F2 F3 Below A-3 Below F3 B1 up to B3 Below B3 P-1 P-2 P-3 Below P-3 B+(idn) up to B-(idn) Below B-(idn) F1+(idn) up to F1 (idn) F2 (idn) F3 (idn) Below F3 (idn) id B+ up to id B- Below idB- idA1 idA2 idA3 up to id A4 Below idA4 (9) (10) (11) (12) (13) (14) Unrated Total (15) (16) - - - - - - 17,197,496 34,306,135 - - - - - - 4,684,596 6,125,173 - - - - - - - - - - - - - - - - Annual Report CIMB NIAGA 2017 - - - - - - - - - - 5,154,112 6,585,465 21,387,122 21,387,122 504,496 504,496 - - 26,735,058 26,735,058 123,847,264 127,339,579 4,461,250 4,461,250 14,086,764 14,086,764 218,058,158 241,531,043 287
  288. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT Table 3 .2.a.1 Disclosure of Counterparty Credit Risk: Over the Counter Derivative Transaction - Bank Only Position 31 December 2017 No. Notional Amount Underlying Variable 1 Interest Rate 2 Exchange Rate 3 Others   Total Derivative Receivables >5 Years Derivative Liabilities Net Claims before Credit Risk Mitigation Credit Risk Mitigation ≤ 1 Year >1 Year - ≤5 Years 7,253,276 15,052,589 - 456,875 254,683 532,138 - 16,276,981 139,199 - 28,453 36,130 198,183 - - - - - - - - 23,530,257 15,191,788 - 485,328 290,813 730,320 - Table 3.2.a.2 Disclosure of Counterparty Credit Risk: Over the Counter Derivative Transaction - Consolidated Position 31 December 2017 No. Notional Amount Underlying Variable 1 Interest Rate 2 Exchange Rate 3 4 ≤ 1 Year >1 Year - ≤5 Years Derivative Receivables >5 Years Derivative Liabilities Net Claims before Credit Risk Mitigation Credit Risk Mitigation 7,253,276 15,052,589 - 456,875 254,683 532,138 - 16,276,981 139,199 - 28,453 36,130 198,183 - Shares - - - - - - - Gold - - - - - - - 5 Metals excluding Gold - - - - - - - 6 Others - - - - - - -   Total 23,530,257 15,191,788 - 485,328 290,813 730,320 - Table 3.2.b.1: Disclosure of Counterparty Credit Risk: Repo Transaction - Bank Only As of December 31, 2017, there was no counterparty credit risk exposure (repo transactions) for the Bank as individual entity. Table 3.2.b.2: Disclosure of Counterparty Credit Risk: Repo Transaction - Consolidated As of December 31, 2017, there was no counterparty credit risk exposure (repo transactions) Bank-only or on a consolidated basis with its Subsidiary. 288 Annual Report CIMB NIAGA 2017
  289. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report (in million Rupiah) Position 31 December 2016 Net Claims after Credit Risk Mitigation Notional Amount Derivative Receivables >5 Years Derivative Liabilities Net Claims before Credit Risk Mitigation Credit Risk Mitigation Net Claims after Credit Risk Mitigation ≤ 1 Year >1 Year - ≤5 Years 532,138 3,703,033 12,961,432 - 159,697 23,468 224,504 - 198,183 5,333,223 - - 27,331 38,611 80,663 - 80,663 - - - - 507,643 483,680 507,643 - 507,643 730,320 9,036,256 12,961,432 - 694,671 545,760 812,811 - 812,811 224,504 (in million Rupiah) Position 31 December 2016 Net Claims after Credit Risk Mitigation Notional Amount Derivative Receivables Net Claims before Credit Risk Mitigation Credit Risk Mitigation Net Claims after Credit Risk Mitigation >1 Year - ≤5 Years 532,138 3,703,033 12,961,432 - 159,697 23,468 224,504 - 224,504 198,183 5,333,223 - - 27,331 38,611 80,663 - 80,663 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 507,643 483,680 507,643 - 507,643 730,320 9,036,256 12,961,432 - 694,671 545,760 812,811 - 812,811 Annual Report CIMB NIAGA 2017 >5 Years Derivative Liabilities ≤ 1 Year 289
  290. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT Table 3 .2.c.1: Counter Party Credit Risk Disclosure: Reverse Repo Transactions - Bank Only (in million Rupiah) Position 31 December 2017 No. Position 31 December 2016 Portfolio Category Net Claims Value of Credit Risk Mitigation (CRM) Net Claims after CRM Risk Weighted Assets after CRM (2) (3) (4) (5) (6) (1) 1 Claims on Sovereigns 2 Claims on Public Sector Entities Net Claims Value of Credit Risk Mitigation (CRM) Net Claims after CRM Risk Weighted Assets after CRM (7) (8) (9) (10) N/A - - - 542,956 - - - - - - - - - - - 3 Claims on Multilateral Development Banks and International Institutions - - - - - - - - 4 Claims on Banks - - - - - - - - 5 Claims on Micro, Small Business and Retail Portfolio - - - - - - - - 6 Claims on Corporates - - - - - - - - Total - - - - 542,956 - - -   Table 3.2.c.2: Counter Party Credit Risk Disclosure: Reverse Repo Transactions - Consolidated Position 31 December 2017 No. Portfolio Category Net Claims Value of Credit Risk Mitigation (CRM) Net Claims after CRM Risk Weighted Assets after CRM (2) (3) (4) (5) (6) (1) 1 Claims on Sovereigns 2 (in million Rupiah) Position 31 December 2016 Net Claims Value of Credit Risk Mitigation (CRM) Net Claims after CRM Risk Weighted Assets after CRM (7) (8) (9) (10) N/A - - - 542,956 - - - Claims on Public Sector Entities - - - - - - - - 3 Claims on Multilateral Development Banks and International Institutions - - - - - - - - 4 Claims on Banks - - - - - - - - 5 Claims on Micro, Small Business and Retail Portfolio - - - - - - - - 6 Claims on Corporates - - - - - - - - Total - - - - 542,956 - - -   290 Annual Report CIMB NIAGA 2017
  291. Supporting Business Review Corporate Governance Report Corporate Social Responsibility 3 . DISCLOSURE OF CREDIT RISK MITIGATION USING THE STANDARD APPROACH In accordance with SEOJK No. 42/SEOJK.03/2016 on Risk Weighted Assets for Credit Risk Calculation Guidelines by Using the Standard Approach, the Bank acknowledges collateral, warranties, underwriting, or credit insurance as credit risk mitigation techniques (MRK). Some of the MRK techniques used by the Bank in accordance with the SEOJK are as follows: a. MRK Technique - Collateral b. MRK Technique - Warranty c.MRK Technique - Underwriting or Credit Insurance. Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report Types of eligible financial collateral acknowledged by the Bank in MRK Techniques – Collateral, refers to applicable regulations. Although not included in the calculation of MRK, the Bank also accepts other types of collateral such as land and buildings, vehicles, machinery, and other collateral. CIMB Niaga has clearly governed the collateral management in Commercial Credit Policy. Its policy set collateral coverage requirement, parties who conduct the assessment and collateral checking, rules and procedures of internal and external assessment, and assessment of frequency based on type of collateral. 291
  292. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT Disclosure of Net Claims Based on Risk Weight After Considering the Impact of Credit Risk Mitigation Table 4 .1.a Disclosure of Net Claims Based on the Risk Weight After considering the Impact of Credit Risk Mitigation - Bank Only Position 31 December 2017 No. Portfolio Category (1) (2) A 0% 20% 35% 40% 45% 50% 75% 100% 150% Others Risk Weighted Asset (RWA) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) Net Claims after Taking into Account the Impact of Credit Risk Mitigation Balance Sheet Exposure   1 Claims on Sovereigns 50,733,172 - - - - - - - - - - 2 Claims on Public Sector Entities - 1,928,871 - - - 7,717,006 - - - - 4,244,277 3 Claims on Multilateral Development Banks and International Institutions - - - - - - - - - - - 4 Claims on Banks 61,506 5,941,403 - - - 2,712,256 - - - - 2,544,408 5 Claims Secured by Residential Property 654 - 20,367,300 - - - - - - - 7,128,555 6 Claims Secured by Commercial Real Estate 3,276 - - - - - - 8,908,138 - - 8,908,138 7 Claims on Employees/ Retirees 8 Claims on Micro, Small Business and Retail Portfolio 9 Claims on Corporates 10 Past due Loans 11 Other Assets Total Balance Sheet Exposure - - - - - - - - - - - 86,665 1,943 - - - - 20,325,205 - - - 15,244,293 4,312,855 4,323,002 - - - 431,478 - 111,013,875 - - 112,094,214 2,699 6,553 - - - - - 820,420 3,626,151 - 6,260,958 3,889,241 - - - - - - 9,799,257 387,239 - 10,380,116 59,090,068 12,201,773 20,367,300 - - 10,860,739 20,325,205 130,541,690 4,013,391 - 166,804,960 B Exposure on Liabilities Commitments/Contingencies in Administrative Account Transactions 1 Claims on Sovereigns - - - - - - - - - - - 2 Claims on Public Sector Entities - - - - - - - - - - - 3 Claims on Multilateral Development Banks and International Institutions - - - - - - - - - - - 4 Claims on Banks 894 23 - - - 8,133 - - - - 4,071 5 Claims Secured by Residential Property - - - - - - - - - - - 6 Claims Secured by Commercial Real Estate - - - - - - - - - - - 7 Claims on Employees/ Retirees - - - - - - - - - - - 8 Claims on Micro, Small Business and Retail Portfolio 3,688 - - - - - 35,647 - - - 26,735 9 Claims on Corporates 99,340 125,000 - - - - - 6,631,466 - - 6,656,466 10 Past due Loans - - - - - - - - - - - 103,922 125,023 - - - 8,133 35,647 6,631,466 - - 6,687,272 Total Administrative Account Exposure C Counterparty Credit Risk 1 Claims on Sovereigns - - - - - - - - - - - 2 Claims on Public Sector Entities - - - - - 38,767 - - - - 19,384 3 Claims on Multilateral Development Banks and International Institutions - - - - - - - - - - - 4 Claims on Banks - 391,242 - - - 7,762 - - - - 82,129 5 Claims on Micro,. Small Business and Retail Portfolio - - - - - - 160,722 - - - 120,541 6 Claims on Corporates - - - - - - - 131,827 - - 131,827 7 Weighted Exposure from Credit Valuation Adjustment (CVA risk weighted assets) - - - - - - - - - - 169,079 Total Exposure Counterparty Credit Risk - 391,242 - - - 46,529 160,722 131,827 - - 522,961 292 Annual Report CIMB NIAGA 2017
  293. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report (in million Rupiah) Position 31 December 2016 Capital Expenses (RWA x 8%) 0% 20% 35% 40% 45% 50% 75% 100% 150% (14) (15) (16) (17) (18) (19) (20) (21) (22) (23) Lainnya Risk Weighted Asset (RWA) Capital Expenses (RWA x 8%) (24) (25) (26) Net Claims after Taking into Account the Impact of Credit Risk Mitigation - 34,306,135 - - - - - - - - - - - 339,542 - 1,048,143 - - - 5,041,047 - - - - 2,730,152 218,412 - - - - - - - - - - - - - 203,553 57,421 3,810,534 - - - 2,253,778 - - - - 1,888,996 151,120 570,284 61,741 - 21,325,381 - - - - - - - 7,463,883 597,111 712,651 - - - - - - - 504,496 - - 504,496 40,360 - - - - - - - - - - - - - 1,219,543 88,861 3,456 - - - - 21,710,776 - - - 16,283,773 1,302,702 8,967,537 3,733,351 3,466,003 - - - 277,328 - 113,484,864 - - 114,316,729 9,145,338 500,877 1,946 7,546 - - - - - 838,825 3,496,609 - 6,085,247 486,820 830,409 3,261,444 - - - - - - 9,964,508 466,981 - 10,664,979 853,198 13,344,397 41,510,899 8,335,683 21,325,381 - - 7,572,153 21,710,776 124,792,693 3,963,589 - 159,938,255 12,795,060 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 326 - 511 - - - 27,199 - - - - 13,702 1,096 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2,139 5,723 - - - - - 57,060 - - - 42,795 3,424 532,517 323,747 - - - - - - 5,718,585 - - 5,718,585 457,487 - - - - - - - - - - - - - 534,982 329,470 511 - - - 27,199 57,060 5,718,585 - - 5,775,082 462,007 - - - - - - - - - - - - - 1,551 - - - - - 35,983 - - - - 17,992 1,439 - - - - - - - - - - - - - 6,570 - 341,821 - - - 6,917 - - - - 71,823 5,746 9,643 - - - - - - 174,488 - - - 130,866 10,469 10,546 - - - - - - - 253,601 - - 253,601 20,288 - 341,821 - - - 42,901 174,488 253,601 - - 474,281 37,943 13,526 41,837 Annual Report CIMB NIAGA 2017 293
  294. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT Table 4 .1.b Disclosure of Net Claims Based on the Risk Weight After considering the Impact of Credit Risk Mitigation – Consolidated Position 31 December 2017 No. Portfolio Category (1) (2) 0% 20% 35% 40% 45% 50% 75% 100% 150% Others Risk Weighted Asset (RWA) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) Position 31 December A Balance Sheet Exposure   1 Claims on Sovereigns 50,733,172 - - - - - - - - - - 2 Claims on Public Sector Entities - 1,928,871 - - - 7,717,006 - - - - 4,244,277 3 Claims on Multilateral Development Banks and International Institutions - - - - - - - - - - - 4 Claims on Banks 61,506 5,986,398 - - - 2,712,256 - - - - 2,553,407 5 Claims Secured by Residential Property 654 - 20,367,300 - - - - - - - 7,128,555 6 Claims Secured by Commercial Real Estate 3,276 - - - - - - 8,908,138 - - 8,908,138 7 Claims on Employees/ Retirees - - - - - - - - - - - 8 Claims on Micro, Small Business and Retail Portfolio 86,665 1,943 - - - - 22,784,894 - - - 17,089,059 4,312,855 4,323,002 - - - 431,478 - 111,060,255 - - 112,140,594 2,699 6,553 - - - - - 820,420 3,678,692 - 6,339,769 3,895,997 - - - - - - 10,121,000 397,236 - 10,716,854 59,096,824 12,246,767 20,367,300 - - 10,860,739 22,784,894 130,909,813 4,075,928 - 169,120,655 9 Claims on Corporates 10 Past due Loans 11 Other Assets   Total Balance Sheet Exposure B Exposure on Liabilities Commitments/Contingencies in Administrative Account Transactions 1 Claims on Sovereigns - - - - - - - - - - - 2 Claims on Public Sector Entities - - - - - - - - - - - 3 Claims on Multilateral Development Banks and International Institutions - - - - - - - - - - - 4 Claims on Banks 894 23 - - - 8,133 - - - - 4,071 5 Claims Secured by Residential Property - - - - - - - - - - - 6 Claims Secured by Commercial Real Estate - - - - - - - - - - - 7 Claims on Employees/ Retirees 8 Claims on Micro, Small Business and Retail Portfolio 9 Claims on Corporates 10 Past due Loans   Total Administrative Account Exposure - - - - - - - - - - - 3,688 - - - - - 35,647 - - - 26,735 99,340 125,000 - - - - - 6,631,466 - - 6,656,466 - - - - - - - - - - - 103,922 125,023 - - - 8,133 35,647 6,631,466 - - 6,687,272 C Counterparty Credit Risk 1 Claims on Sovereigns - - - - - - - - - - - 2 Claims on Public Sector Entities - - - - - 38,767 - - - - 19,384 3 Claims on Multilateral Development Banks and International Institutions - - - - - - - - - - - 4 Claims on Banks - 391,242 - - - 7,762 - - - - 82,129 5 Claims on Micro,. Small Business and Retail Portfolio - - - - - - 160,722 - - - 120,541 6 Claims on Corporates - - - - - - - 131,827 - - 131,827 7 Weighted Exposure from Credit Valuation Adjustment (CVA risk weighted assets) - - - - - - - - - - 169,079 Total Exposure Counterparty Credit Risk - 391,242 - - - 46,529 160,722 131,827 - - 522,961   294 Annual Report CIMB NIAGA 2017
  295. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report (in million Rupiah) Position 31 December 2016 Capital Expenses (RWA x 8%) 0% 20% 35% 40% 45% 50% 75% 100% 150% (14) (15) (16) (17) (18) (19) (20) (21) (22) (23) Others Risk Weighted Asset (RWA) Capital Expenses (RWA x 8%) (24) (25) (26) Net Claims after Taking into Account the Impact of Credit Risk Mitigation - 34,306,135 - - - - - - - - - - - 339,542 - 1,048,143 - - - 5,041,047 - - - - 2,730,152 218,412 - - - - - - - - - - - - - 204,273 57,421 3,897,817 - - - 2,253,778 - - - - 1,906,452 152,516 570,284 61,741 - 21,325,381 - - - - - - - 7,463,883 597,111 712,651 - - - - - - - 504,496 - - 504,496 40,360 - - - - - - - - - - - - - 1,367,125 88,861 3,456 - - - - 26,405,470 - - - 19,804,794 1,584,383 8,971,248 3,733,351 3,466,003 - - - 277,328 - 113,566,964 - - 114,398,829 9,151,906 507,182 1,946 7,546 - - - - - 838,825 3,612,933 - 6,259,734 500,779 857,348 3,261,730 - - - - - - 10,336,038 488,996 - 11,069,532 885,563 13,529,652 41,511,186 8,422,966 21,325,381 - - 7,572,153 26,405,470 125,246,323 4,101,929 - 164,137,872 13,131,030 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 326 - 511 - - - 27,199 - - - - 13,702 1,096 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2,139 5,723 - - - - - 57,060 - - - 42,795 3,424 532,517 323,747 - - - - - - 5,718,585 - - 5,718,585 457,487 - - - - - - - - - - - - - 534,982 329,470 511 - - - 27,199 57,060 5,718,585 - - 5,775,082 462,007 - - - - - - - - - - - - - 1,551 - - - - - 35,983 - - - - 17,992 1,439 - - - - - - - - - - - - - 6,570 - 341,821 - - - 6,917 - - - - 71,823 5,746 9,643 - - - - - - 174,488 - - - 130,866 10,469 10,546 - - - - - - - 253,601 - - 253,601 20,288 - 341,821 - - - 42,901 174,488 253,601 - - 474,281 37,943 13,526 41,837 Annual Report CIMB NIAGA 2017 295
  296. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT Disclosure of Net Claims and Credit Risk Mitigation Techniques Table 4 .2.a Disclosure of Net Claims and Credit Risk Mitigation Techniques - Bank Only Position 31 December 2017 No. Portfolio Category (1) (2) A Balance Sheet Exposure 1 Claims on Sovereigns 2 Claims on Public Sector Entities 3 Claims on Multilateral Development Banks and International Institutions 4 Claims on Banks 5 Claims Secured by Residential Property 6 Claims Secured by Commercial Real Estate 7 Claims on Employees/Retirees 8 Claims on Micro, Small Business and Retail Portfolio 9 Claims on Corporates 10 Past due Loans 11 Other Assets   Total Balance Sheet Exposure Part Guaranteed with Net Claims (3)   Collateral Warranty Credit Insurance Others (4) (5) (6) (7)         50,733,172 - - - - 9,645,877 - - - - - - - - - 8,715,165 61,506 - 136,164 - 20,367,955 654 - - - 8,911,414 3,276 - - - - - - - - 20,413,813 86,665 - 1,943 - 120,081,210 4,312,855 - 48,836 - 4,455,823 2,699 - 6,553 - 14,075,737 - - - - 257,400,166 4,467,655 - 193,496 -       B Exposure on Liabilities Commitments/Contingencies in Administrative Account Transactions 1 Claims on Sovereigns - - - - - 2 Claims on Public Sector Entities - - - - - 3 Claims on Multilateral Development Banks and International Institutions - - - - - 4 Claims on Banks 9,051 894 - - - 5 Claims Secured by Residential Property - - - - - 6 Claims Secured by Commercial Real Estate - - - - - 7 Claims on Employees/Retirees - - - - - 8 Claims on Micro, Small Business and Retail Portfolio 39,335 3,688 - - - 6,855,806 99,340 - - - - - - - - 6,904,192 103,922 - - - 9 Claims on Corporates 10 Past due Loans   Total Administrative Account Exposure           C Counterparty Credit Risk 1 Claims on Sovereigns 2 Claims on Public Sector Entities 3 Claims on Multilateral Development Banks and International Institutions 4 Claims on Banks 399,004 5 Claims on Micro,. Small Business and Retail Portfolio 160,722 6 Claims on Corporates 131,827 - - - - 7 Weighted Exposure from Credit Valuation Adjustment (CVA risk weighted assets) - - - - - 730,320 - - - - 265,034,678 4,571,577 - 193,496 -   Total Exposure Counterparty Credit Risk Total (A+B+C) - - - - - 38,767 - - - - - - - - - - - - - - - - - *)The value of Net Claims presented in the table refers Circular Letter OJK No. 42/SEOJK.03/2016 regarding the Guidelines for Risk-Weighted Assets for Credit Risk under Standardized Approach Calculation. 296 Annual Report CIMB NIAGA 2017
  297. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report (in million Rupiah) Position 31 December 2016 Part not Guaranteed Net Claims (8) = (3)[(4)+(5)+(6)+(7)] (9)     Part Guaranteed with Collateral Warranty Credit Insurance Others (10) (11) (12) (13)       Part not Guaranteed (14) = (9)[(10)+(11)+(12)+(13)     50,733,172 34,306,135 - - - - 34,306,135 9,645,877 6,089,190 - - - - 6,089,190 - - - - - - - 8,517,495 6,121,733 57,421 - 174,656 - 5,889,656 20,367,300 21,387,122 61,741 - - - 21,325,381 8,908,138 504,496 - - - - 504,496 - - - - - - - 20,325,205 21,803,093 88,861 - 3,456 - 21,710,776 115,719,519 120,961,546 3,733,351 113,713 137,303 - 116,977,180 4,446,572 4,344,926 1,946 - 7,546 - 4,335,433 14,075,737 13,692,932 - - - - 13,692,932 3,943,321 113,713 322,961 -       252,739,015   229,211,173     224,831,179   - - - - - - - - - - - - - - - - - - - - - 8,157 27,710 - - - - 27,710 - - - - - - - - - - - - - - - - - - - - - 35,647 62,783 5,723 - - - 57,060 6,756,466 6,042,332 323,747 - - - 5,718,585 - - - - - - - 6,800,269 6,132,825 329,470 - - - 5,803,355         -   -   - - - -   - 38,767 35,983 - - - - 35,983 - - - - - - - 399,004 348,739 - - - - 348,739 160,722 174,488 - - - - 174,488 131,827 253,601 - - - - 253,601 730,320 812,811 - - - - 812,811 260,269,605 236,156,809 4,272,791 113,713 322,961 - 231,447,345 Annual Report CIMB NIAGA 2017 297
  298. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT Table 4 .2.b Disclosure of Net Claims and Credit Risk Mitigation Techniques – Consolidated Position 31 December 2017 No. Portfolio Category (1) (2) A Balance Sheet Exposure 1 Claims on Sovereigns 2 Claims on Public Sector Entities 3 Claims on Multilateral Development Banks and International Institutions 4 Claims on Banks 5 Claims Secured by Residential Property 6 Claims Secured by Commercial Real Estate 7 Claims on Employees/Retirees 8 Claims on Micro, Small Business and Retail Portfolio 9 Claims on Corporates 10 Past due Loans 11 Other Assets   Total Balance Sheet Exposure Part Guaranteed with Net Claims (3)   Collateral Warranty Credit Insurance Others (4) (5) (6) (7)         50,733,172 - - - - 9,645,877 - - - - - - - - - 8,760,160 61,506 - 136,164 - 20,367,955 654 - - - 8,911,414 3,276 - - - - - - - - 22,873,502 86,665 - 1,943 - 120,127,589 4,312,855 - 48,836 - 4,508,364 2,699 - 6,553 - 14,414,233 - - - - 260,342,266 4,467,655 - 193,496 -     B Exposure on Liabilities Commitments/Contingencies in Administrative Account Transactions 1 Claims on Sovereigns - - - - - 2 Claims on Public Sector Entities - - - - - 3 Claims on Multilateral Development Banks and International Institutions - - - - - 4 Claims on Banks 9,051 894 - - - 5 Claims Secured by Residential Property - - - - - 6 Claims Secured by Commercial Real Estate - - - - - 7 Claims on Employees/Retirees - - - - - 8 Claims on Micro, Small Business and Retail Portfolio 39,335 3,688 - - - 9 Claims on Corporates 6,855,806 99,340 - - - - - - - - 6,904,192 103,922 - - - 10   Past due Loans Total Administrative Account Exposure           C Counterparty Credit Risk 1 Claims on Sovereigns 2 Claims on Public Sector Entities 3 Claims on Multilateral Development Banks and International Institutions 4 Claims on Banks 399,004 5 Claims on Micro,. Small Business and Retail Portfolio 160,722 6 Claims on Corporates 131,827 - - - - 7 Weighted Exposure from Credit Valuation Adjustment (CVA risk weighted assets) - - - - - 730,320 - - - - 267,976,778 4,571,577 - 193,496 -   Total Eksposure Counterparty Credit Risk Total (A+B+C) - - - - - 38,767 - - - - - - - - - - - - - - - - - *)The value of Net Claims presented in the table refers Circular Letter OJK No. 42/SEOJK.03/2016 regarding the Guidelines for Risk-Weighted Assets for Credit Risk under Standardized Approach Calculation. 298 Annual Report CIMB NIAGA 2017
  299. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report (in million Rupiah) Position 31 December 2016 Part not Guaranteed Net Claims (8) = (3)[(4)+(5)+(6)+(7)] (9)     Part Guaranteed with Collateral Warranty Credit Insurance Others (10) (11) (12) (13)       Part not Guaranteed (14) = (9)[(10)+(11)+(12)+(13)     50,733,172 34,306,135 - - - - 34,306,135 9,645,877 6,089,190 - - - - 6,089,190 - - - - - - - 8,562,489 6,209,016 57,421 - 174,656 - 5,976,939 20,367,300 21,387,122 61,741 - - - 21,325,381 8,908,138 504,496 - - - - 504,496 - - - - - - - 22,784,894 26,497,787 88,861 - 3,456 - 26,405,470 115,765,899 121,043,646 3,733,351 113,713 137,303 - 117,059,280 4,499,112 4,461,250 1,946 - 7,546 - 4,451,758 14,414,233 14,086,764 - - - - 14,086,764 3,943,321 113,713 322,961 -       255,681,115   234,585,407     230,205,413   - - - - - - - - - - - - - - - - - - - - - 8,157 27,710 - - - - 27,710 - - - - - - - - - - - - - - - - - - - - - 35,647 62,783 5,723 - - - 57,060 6,756,466 6,042,332 323,747 - - - 5,718,585 - - - - - - - 6,800,269 6,132,825 329,470 - - - 5,803,355         -   -   - - - -   - 38,767 35,983 - - - - 35,983 - - - - - - - 399,004 348,739 - - - - 348,739 160,722 174,488 - - - - 174,488 131,827 253,601 - - - - 253,601 730,320 812,811 - - - - 812,811 263,211,705 241,531,043 4,272,791 113,713 322,961 - 236,821,579 Annual Report CIMB NIAGA 2017 299
  300. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT Disclosure of Asset Securitization As of 31 December 2017 , CIMB Niaga had no securitization portfolio. Quantitative Disclosure of Asset Securitization Tabel 5.1.a. Disclosure of Asset Securitization Transactions - Bank Only As of 31 December 2017, CIMB Niaga had no securitization transactions for Bank-only position. Tabel 5.1.b. Disclosure of Asset Securitization Transactions – Consolidated with Subsidiaries As of 31 December 2017, CIMB Niaga recorded no securitization transaction for consolidated position with Subsidiaries. Tabel 5.2.a. Disclosure of the Summary of Activities of Securitization Transactions where the Bank acts as the Initial Creditor - Bank Only As of 31 December 2017, CIMB Niaga had no securitization transactions in the case the Bank acts as inital lender for a Bank-only position. Tabel 5.2.b. Disclosure of the Summary of Activities of Securitization Transactions where the Bank acts as the Initial Creditor – Consolidated with Subsidiaries As of 31 December 2017, CIMB Niaga recorded no securitization transactions where the Bank acts as initial creditor for a consolidated position. 300 Annual Report CIMB NIAGA 2017
  301. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Calculation of RWA Credit Risk Standard Approach - Bank Only Table 6 .1.1 Disclosure of Balance Sheet Asset Exposures (in million Rupiah) Position 31 December 2016 No Portfolio Category (1) (2) 1 Claims on Sovereigns 2 Claims on Public Sector entities 3 Claims on Multilateral Development Banks and International Institutions 4 Claims on Banks 5 Claims secured by residential property 6 Claims secured by commercial real estate 7 Claims on employees/retirees 8 Claims on Micro, Small Business and Retail Portfolio 9 Claims on Corporates 10 Past due Loans 11 Other Assets Total Net Claims RWA before Recognizing CRM (3) (4) Position 31 December 2016 RWA after Recognizing CRM (5) Net Claims RWA before Recognizing CRM (6) (7) RWA after Recognizing CRM (8) 50,733,172 - - 34,306,135 - - 9,645,877 4,244,277 4,244,277 6,089,190 2,730,152 2,730,152 - - - - - - 8,715,165 2,614,719 2,544,408 6,121,733 1,969,501 1,888,996 20,367,955 7,128,784 7,128,555 21,387,122 7,485,493 7,463,883 8,911,414 8,911,414 8,908,138 504,496 504,496 504,496 - - - - - - 20,413,813 15,310,360 15,244,293 21,803,093 16,352,320 16,283,773 120,081,210 116,446,138 112,094,214 120,961,546 118,232,705 114,316,729 4,455,823 6,273,525 6,260,958 4,344,926 6,097,976 6,085,247 14,075,737 10,380,116 10,380,116 13,692,932 10,664,979 10,664,979 257,400,166 171,309,333 166,804,960 229,211,173 164,037,621 159,938,255 Table 6.1.2 Disclosure of Off Balance Sheet Commitment/Contingency Exposure (in million Rupiah) Position 31 December 2017 No Portfolio Category (1) (2) RWA before Recognizing CRM Net Claims (3) Position 31 December 2016 RWA after Recognizing CRM (4) RWA before Recognizing CRM Net Claims (5) (6) RWA after Recognizing CRM (7) (8) 1 Claims on Sovereigns - - - - - - 2 Claims on Public Sector Entities - - - - - - 3 Claims on Multilateral Development Banks and International Institutions - - - - - - 4 Claims on Banks 9,051 4,518 4,071 27,710 13,702 13,702 5 Claims secured by residential property - - - - - - 6 Claims secured by commercial real estate - - - - - - 7 Claims on employees/retirees 8 Claims on Micro, Small Business and Retail Portfolio 9 Claims on Corporates 10 Past due Loans Total Annual Report CIMB NIAGA 2017 - - - - - - 39,335 29,501 26,735 62,783 47,087 42,795 6,855,806 6,755,806 6,656,466 6,042,332 6,042,332 5,718,585 - - - - - - 6,904,192 6,789,825 6,687,272 6,132,825 6,103,121 5,775,082 301
  302. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT Table 6 .1.3 Disclosure of Counterparty Credit Risk Exposures (in million Rupiah) Position 31 December 2017 No Portfolio Category Net Claims (1) (2) (3) 1 Claims on Sovereigns 2 Claims on Public Sector entities 3 Claims on Multilateral Development Banks and International Institutions Position 31 December 2016 RWA before RWA after Recognizing Recognizing CRM CRM (4) RWA before RWA after Recognizing Recognizing CRM CRM Net Claims (5) (6) (7) (8) - - - - - - 38,767 19,384 19,384 35,983 17,992 17,992 - - - - - - 4 Claims on Banks 399,004 82,129 82,129 348,739 71,823 71,823 5 Claims on Micro, Small Business and Retail Portfolio 160,722 120,541 120,541 174,488 130,866 130,866 6 Claims on Corporates 131,827 131,827 131,827 253,601 253,601 253,601 7   CVA risk weighted exposures Total      730,320 522,961     522,961 812,811   474,281 474,281 Table 6.1.4 Disclosure of Settlement Risk Exposures As of 31 December 2017, the Bank recorded no settlement risk exposure for the Bank-only position. Table 6.1.5 Disclosure of Securitization Risk Exposures As of 31 December 2017, the Bank recorded no securitization exposure for the Bank-only position. Table 6.1.6 Disclosure of Total Credit Risk (in million Rupiah)   Position 31 December 2017 (1) (2) (3) 174,015,193 166,187,618 - - Total Credit RWA Total Capital Deduction Factor Position 31 December 2016 Calculation of RWA Credit Risk Standard Approach - Consolidated Table 6.2.1 Disclosure of Balance Sheet Asset Exposures (in million Rupiah) Position 31 December 2017 No (1) Portfolio Category (2) 1 Claims on Sovereigns 2 Claims on Public Sector entities 3 Claims on Multilateral Development Banks and International Institutions 4 Claims on Banks 5 Claims secured by residential property 6 Claims secured by commercial real estate 302 Net Claims RWA before Recognizing CRM (3) (4) Position 31 December 2016 RWA after Recognizing CRM (5) Net Claims RWA before Recognizing CRM (6) (7) RWA after Recognizing CRM (8) 50,733,172 0 0 34,306,135 - - 9,645,877 4,244,277 4,244,277 6,089,190 2,730,152 2,730,152 0 0 0 - - - 8,760,160 2,623,718 2,553,407 6,209,016 1,986,957 1,906,452 20,367,955 7,128,784 7,128,555 21,387,122 7,485,493 7,463,883 8,911,414 8,911,414 8,908,138 504,496 504,496 504,496 Annual Report CIMB NIAGA 2017
  303. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Position 31 December 2017 No Portfolio Category 7 Claims on employees /retirees 8 Claims on Micro, Small Business and Retail Portfolio 9 Claims on Corporates 10 Past due Loans 11 Other Assets Total RWA before Recognizing CRM Net Claims Consolidated Financial Report Position 31 December 2016 RWA after Recognizing CRM RWA before Recognizing CRM Net Claims RWA after Recognizing CRM - - - - - - 22,873,502 17,155,127 17,089,059 26,497,787 19,873,341 19,804,794 120,127,589 116,492,517 112,140,594 121,043,646 118,314,805 114,398,829 4,508,364 6,352,336 6,339,769 4,461,250 6,272,463 6,259,734 14,414,233 10,716,854 10,716,854 14,086,764 11,069,532 11,069,532 260,342,266 173,625,028 169,120,655 234,585,407 168,237,238 164,137,872 Table 6.2.2 Disclosure of Off Balance Sheet Commitment/Contingency Exposure (in million Rupiah) Position 31 December 2017 No Portfolio Category (1) RWA before Recognizing CRM Net Claims (2) (3) Position 31 December 2016 RWA after Recognizing CRM (4) RWA before Recognizing CRM Net Claims (5) (6) RWA after Recognizing CRM (7) (8) 1 Claims on Sovereigns - - - - - - 2 Claims on Public Sector Entities - - - - - - 3 Claims on Multilateral Development Banks and International Institutions - - - - - - 4 Claims on Banks 9,051 4,518 4,071 27,710 13,702 13,702 5 Claims secured by residential property - - - - - - 6 Claims secured by commercial real estate - - - - - - 7 Claims on employees/retirees 8 Claims on Micro, Small Business and Retail Portfolio 9 Claims on Corporates 10 Past due Loans Total - - - - - - 39,335 29,501 26,735 62,783 47,087 42,795 6,855,806 6,755,806 6,656,466 6,042,332 6,042,332 5,718,585 - - - - - - 6,904,192 6,789,825 6,687,272 6,132,825 6,103,121 5,775,082 Table 6.2.3 Disclosure of Counterparty Credit Risk Exposures (in million Rupiah) Position 31 December 2017 No Portfolio Category Net Claims (2) (3) (1) 1 Claims on Sovereigns Position 31 December 2016 RWA before Recognizing CRM RWA after Recognizing CRM Net Claims (4) (5) (6) RWA before Recognizing CRM RWA after Recognizing CRM (7) (8) - - - - - - 38,767 19,384 19,384 35,983 17,992 17,992 - - - - - - 2 Claims on Public Sector entities 3 Claims on Multilateral Development Banks and International Institutions 4 Claims on Banks 399,004 82,129 82,129 348,739 71,823 71,823 5 Claims on Micro, Small Business and Retail Portfolio 160,722 120,541 120,541 174,488 130,866 130,866 6 Claims on Corporates 131,827 131,827 131,827 253,601 253,601 253,601 7 CVA risk weighted exposures 812,811 474,281 474,281 Total Annual Report CIMB NIAGA 2017 169,079 730,320 522,961 522,961 303
  304. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT Table 6 .2.4 Disclosure of Settlement Risk Exposures As of 31 December 2017, the Bank recorded no settlement risk exposure for a consolidated position. Table 6.2.5 Disclosure of Securitization Exposure As of 31 December 2017, the Bank recorded no securitization exposure for a consolidated position. Table 6.2.6 Disclosure of Total Credit Risk (in million Rupiah)   Position 31 December 2017 (1) Total Credit RWA Total Capital Deduction Factor Position 31 December 2016 (2) (3) 176,330,888 170,387,235 - - B. MARKET RISK Market risk is the loss due to movements in market variables, such as interest rates, exchange rates, and option prices, which could adversely impact CIMB Niaga. implemented in a proper and consistent manner, as well as ensuring the adequacy of the systems, processes, and resources required in market risk management that includes identification, measurement, monitoring & control, and reporting. Market risks are found in the Bank’s functional activities, such as foreign exchange trading, securities, derivatives, money market instruments and others. Market risk includes interest rate risk, exchange rate risk, and option risk in the trading book and the banking book. Interest rate risk can also arise from differences in the exposure of assets and liabilities of the Bank and interest rate movements, which will affect income and the economic value of Bank capital. 2nd Line of Defence – Risk Management Conducted by Risk Management Directorate Market Risk Management Group (MRM), is an independent unit that is responsible for managing and controlling daily market risks and policy operations. Governance To create robust and effective market risk governance, the Bank has strategically implemented three lines of defense in managing market risk. 1st Line of Defence – Business Unit (BU) Operating under the Directorate of Treasury or appointed Trading Origination Function (TOF). BU is the risk prevention unit that is responsible for ensuring that the application of policies is 304 3rd Line of Defence – Internal Audit Internal Audit is responsible to independently conduct reviews on the adequacy and effectiveness of risk management, as well as internal control of market risk management. The Risk Management Committee (RMC) is an executive committee responsible for managing the Bank’s overall risk and establishing the acceptable framework, strategy, and risk appetite. MRM’s main duties and responsibilities are to: 1. Develop, document, implement, review (at least twice a year), and request approval for policies. Annual Report CIMB NIAGA 2017
  305. Supporting Business Review Corporate Governance Report Corporate Social Responsibility 2 . Review, provide feedback and recommendations on the limit structure submitted by BU a minimum of once a year. 3.Monitor the limits utilization and conduct escalations on limit excess in accordance with established procedures. Develop and, provide feedback and 4. recommendations on market risk measurement methodology to assist BU in managing market risk. 5. Analyze and submit market risk reports to Bank senior management, including reports on risk exposure, capital adequacy, and stress testing. 6. Provide input to related committees on new product proposals that could affect the Bank’s risk profile. Meanwhile, interest rate risk in the banking book is managed by the Asset Liability Management (ALM) Risk unit. Risk management is then stipulated in the form of policies, procedures, risk limits, and other decision results related to the management of market risk. The Bank’s market risk limit and appetite are evaluated periodically in accordance with changes in the Bank’s business environment. The overall market risk controlling factors are reported to the Risk Oversight Committee (KIPER), as part of the active oversight of the Board of Commissioners. Policies, Procedures and Limit Setting Market risk management policy and limit are defined by the RMC. These policies and limits are reviewed periodically to adjust to the treasury business development in particular, and market developments and internal and external regulation in general. Periodically, the Risk Management Unit updates market risk policies to be aligned with external regulations, internal policies, and Treasury business strategies. Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report For effective risk limit control, the Bank has established a comprehensive limit structure, in accordance with the complexity of action taken, taking into account the Bank’s business objectives and risk tolerance. Market risk limits applied by the Bank include Value at Risk (VaR), sensitivity (DV01, base DV01, CR01, Vega, NOP), trigger loss, and notional size for a particular portfolio. Meanwhile, the determination of limits related to the interest rate risk in the banking book includes the EVE limit. Risk Management Process In conformity with Bank Indonesia regulations, the Bank is required to undertake a series of processes to identify, measure, monitor, and control risks arising from the Bank’s activities. The Risk Management Unit plays a role in conducting the process continuously through infrastructure development so that market risk management can be conducted well, in accordance with the maximum limit of risk that the Bank is willing to tolerate. Management of market risk includes: a.Market risk management for trading book portfolios. b. Management of interest rate risk in the banking book. Market risk identification processing is performed through the analysis of new products (particularly treasury products) through the approval process for the product, which is a key means of control for the Bank to identify the inherent market risk to be considered and mitigated before and after the product is launched. To support strong market risks identification process, the Bank has a specific policy for the risk management of products and activities that govern the proposal, review, and approval process for the Bank’s new products and activities. 305
  306. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT The framework for market risk management processes is as follows : Board of Commissioners (KIPER) and BOD (RMC) Active supervision Risk Identification Identification of risk associated with Bank strategy as well as new products to be launched and fund placement decisions/investment Risk Measurement -Risk quantification related to Bank policy on review, analysis, control and reporting. - The methodology utilized in measuring risk (VaR, sensitivity risk, stress test) Market Risk Management Framework Risk Reporting Risk reporting and escalation of information to facilitate business and risk decision-making Control and Risk Oversight Continuous risk monitoring on market risk profile within the risk tolerance limits and business activities in accordance with relevant policies Policies, Methodologies, Systems and Internal Control A. MARKET RISK MANAGEMENT FOR THE TRADING BOOK PORTFOLIO Periodically, the Market Risk Management Unit monitors limit compliance to the exchange rate risk and interest rate risk, where limit breaches will be reported to the relevant unit and the Board of Directors to be followed up. The Bank’s market risk management process is also supported by an adequate market risk management information system to provide comprehensive and integrated market risk reports. Reporting and monitoring of market risk is conducted periodically by the Market Risk Management Unit as an independent unit. This is also supported by competent human resources in risk management responsibilities, both in terms of quantity and quality. In managing market risk for the trading book portfolio, the Bank uses internal sensitivity analysis, which is the change in the portfolio’s value due to the movement of one independent market variable, such as DV01 and DV01 of for instrument portfolios related to interest rates, net open position for foreign exchange, and Vega for option portfolios. In addition to the sensitivity analysis, the Bank uses 306 the Value at Risk (VaR) calculation in assessing the market risk. Portfolios included in the Value at Risk (VaR) assessment include securities, foreign exchange, and derivatives. The VaR calculation method used is a historical simulation, reviewed periodically with the assumption that the value of an asset yield in the past may be used to predict the potential risks in the future. The historical simulation VaR method does not require assumptions regarding the distribution of asset yield. The valuation method on fair value measurement of an instrument is performed using the available market price (mark to market) or using theoretical price calculations in illiquid market conditions (mark to model). CIMB Niaga uses the VaR calculations to internally evaluate market risk on a daily basis with a VaR assessment with a confidence level of 99.7% (ninety nine point seven percent). The calculation of market risk for Minimum Capital Adequacy Ratio (KPMM) purposes uses the standard method, which includes the calculation of interest rate risk and exchange rate risk. Annual Report CIMB NIAGA 2017
  307. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Market risks are required to be calculated in capital charges for the standardized approach are : 1. Financial instrument positions in the trading book that are exposed to interest rate risk. 2. Foreign exchange positions in the trading book and banking book that are exposed to foreign exchange risk. 3. Option positions with underlying interest rates and/or foreign exchange in the trading book. Financial instruments in the trading book which are exposed to interest rate risk as intended for minimum capital requirement calculation using the standardized method, includes all positions in the securities’ portfolio, as well as other derivatives, such as FX Forward, FX Swap, IRS/CCS, and IR Futures. The same also applies with the calculation of minimum capital for option risk, where the Bank calculates all option positions in the trading book portfolio with both the underlying interest rate and foreign currency, in accordance with the standard method. For exchange rate risk, the Bank calculates all on and off balance sheet positions, both in the trading book and in the banking book portfolio. The market risk monitoring process is carried out in several stages, namely front- end control and limit establishment. For front-end control, the dealer serves as the primary observer of market risk arising from trading activitiesas well as managing the Bank’s assets and liabilities. The dealer must maintain an open trading position throughout the day by monitoring the limits that have been set by the Management. The MRM monitors trading limit breaches on daily basis. Limit setting serves to limit the concentration of risk exposure to a particular position, type of risk, type of instrument and/or the market. Limits are established based on the Bank’s risk tolerance by taking into account the profit targets from trading activities. Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report The strategy adopted by the Bank in market risk management process is conservative. This is conducted through hedging, squaring position, back-to-back, and other strategies for the offsetting of a transaction/position that has market risk exposure and can be used for risk transfer processes. The Bank only enter deals that align with its risk appetite and business strategy. B. MANAGEMENT OF INTEREST RATE RISK IN THE BANKING BOOK. The Bank measures interest rate risk in the banking book, arising from differences in interest rate changes and cash flow (repricing risk), interest rate correlation changes from a yield curve with different positions that affect the Bank’s activity (basis risk), interest rate correlation changes on maturity range (yield curve risk), and interest rates regarding options embedded in banking book products (option risk). The Bank measures interest rate exposure, both from the revenue and the economic perspective, using several potential interest rate scenarios, including stress conditions. The measurement approaches that can be used to analyze interest rate risk exposure are repricing gap analysis, PVBP, static simulation of Economic Value of Equity (EVE). In calculating the EVE, the Bank applies a methodology of cash flow behavior for products that have no maturity, and has also taken into account the prepayment cash flow assumption/ projection of the loan products that is required by regulators. The scenario used in the static simulation of Economic Value of Equity (EVE) is a parallel interest rate shift up/down. Capital adequacy calculation scenarios related to changes in interest rate used is 400 bps for Rupiah portfolios, and 200 bps for USD portfolios. 307
  308. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT Backtesting Backtesting is performed by historically comparing the VaR calculation and actual losses by using the Model Verification Based on Failure Test , namely by calculating a number of observations in which the value of losses exceeds the VaR for an observed portfolio a certain observation period. This model is a more historical and non-parametric calculation. If the acceptable error level is breached, it is possible that its VaR model is inaccurate. In addition, backtesting results are reported periodically to the RMC. Model validation used in risk assessment is conducted at regular intervals of at least once a year, or in the event of a modification in the model, due to structural and significant market changes, or portfolio composition changes, which may cause the model to not measure all material market risk factors, or the model has become irrelevant. Stress Testing The Bank periodically conducts stress testing to estimate its potential losses during abnormal market conditions in order to observe Treasury performance sensitivity to changes in risk factors and to identify significant impacts on the Bank’s portfolios. In the stress testing exercise, a risk measurement system must be flexible enough to facilitate a variety of scenarios, including the largest historical market moves in the past. The assumptions used in stress testing must be carefully developed to examine the Treasury’s portfolio trend. Stress testing is performed quantitatively, through the identification of various possible crisis scenarios that could adversely impact the Bank. In addition, stress testing is also conducted qualitatively to identify Board of Directors or the management actions and decisions, in order to 308 anticipate worst case scenarios and avoid adverse impact on the fulfillment of the Capital Adequacy Ratio. Stress testing is conducted on the entire trading book portfolio that is exposed to interest rate risk and trading book and banking book portfolios that are exposed to exchange rate risks, by considering the market risk and liquidity aspects with the assumption of market disturbance. Internal Control The Bank periodically reviews the adequacy of the policies and procedures. The assessment of policy adequacy and its implementation is conducted by an independent party, namely Internal Audit (IAU), who also informs the management and the Audit Committee for further actions. Information related to market risk exposures is consolidated and reported by the unit in charge of finance and accounting. Internal Audit conducts reviews on the market risk management on a regular basis at least once a year through the internal audit process. The reviews cover the activities of the Market Risk Management Unit and operational units that are related to the market risk management. The review includes: •Adequacy of market risk management documentation (including internal models). • Approval process of significant changes in market risk management. • Integrity of market risk management information system. •Market Risk Management (MRM) Unit organization, including the duties and responsibilities, independence, and adequacy of human resources. • Integration of market risk measurement into the daily risk management process. • Scope of products and/or financial instruments exposed to market risks using internal models. Annual Report CIMB NIAGA 2017
  309. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report • Verification of the consistency, accuracy, independence and reliability of data sources used in internal models. • Accuracy and completeness of data for risk measurement. • Internal approval process for the utilization of models/assessment techniques (valuation). • Accuracy of valuation results. • Accuracy and adequacy of various volatility and correlation assumptions. • Verification of the internal validation process and backtesting procedures. Internal Audit is required to document all reviews performed. In addition, pursuant to regulations concerning the implementation of the Bank’s internal audit function, Internal Audit is required to submit internal audit implementation reports. Market Risk Quantitative Disclosures Table 7.1 Disclosure of Market Risk by Using Standardized Methods (in million Rupiah) Position 31 December 2017 No. (1) 1 Capital Charges (3) (2) Consolidated Bank Only RWA Capital Charges RWA Capital Charges (4) (5) (6) (7) Interest Rate Risk     2 Bank Only Risk Type Position 31 December 2016 Consolidated RWA Capital Charges (8) (9) RWA (10) 998,203 a. Specific Risk 15,215 190,182 15,215 190,182 b. General Risk 148,181 1,852,261 148,181 1,852,261 72,529 906,614 72,529 906,614 23,582 294,774 23,582 294,774 44,949 561,862 44,949 561,862 Exchange Rate Risk 7,327 91,589 998,203 7,327 91,589 3 Equity Risk *) - - - - - - - - 4 Commodity Risk *) - - - - - - - - 29,044 363,051 29,044 363,051 4,169 52,111 4,169 52,111 216,021 2,700,267 216,021 2,700,267 128,974 1,612,176 128,974 1,612,176 5 Option Risk       Total *) For banks with subsidiaries exposure to market risk Table 7.2 Disclosure of Interest Rate Risk Exposure in the Banking Book (IRRBB) (in million Rupiah) Currency Interest Rate Shock Scenarios IDR Up 400bps 207,258 34,353,933 0.60% IDR Down 400bps (180,115) 34,353,933 -0.52%     USD Up 200bps 366,429 34,353,933 1.07% USD Down 200bps (380,442) 34,353,933 -1.11% Economic Value Capital Percentage of EVE against Capital C.LIQUIDITY RISK Liquidity risk is caused by the inability of the Bank to meet its maturing obligations from cash flow funding sources and/or from high-quality liquid assets that can be pledged, without disrupting Bank activity and financial condition. Annual Report CIMB NIAGA 2017 309
  310. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT Governance Active Supervision of the Board of Commissioners and Board of Directors The Board of Commissioners and Board of Directors conduct active supervision in line with the Bank ’s liquidity risk management policy. The Board of Commissioners is responsible for maintaining liquidity risk management effectiveness and evaluating implementation by the Board of Directors in accordance with Bank policies and strategies, and provide notification on liquidity risk management policy and other related policies and procedures. At the Board of Commissioners level, liquidity risk management reporting is delivered to the Board of Commissioners on a regular basis through the Risk Oversight Committee (KIPER). As stipulated in Liquidity Risk Management Policy, the Board of Commissioners plays an active leadership role with approval responsibility for the process, including oversight of the emergency funding Contingency Plan and Early Warning System (EWS). The Board of Directors through the Asset & Liability Committee (ALCO), consisting of the Directors and executive officers, manages liquidity risk in accordance with risk limits acceptable to the Bank. Appropriate risk limits are established through an assessment of internal risk tolerance based on established regulations and taking into account the Bank’s business strategy, market conditions, financial conditions, and funding capacity. It is then stipulated in the form of liquidity risk management policies and procedures to ensure that current and future funding requirements can be met both in normal and crisis conditions. In addition, ALCO is also responsible for validating the Bank’s liquidity risk management policy, risk level tolerance approvals, and other important procedures related to liquidity risk management that regulate or affect the Bank’s risk profile. The 310 liquidity risk profile is reported to ALCO, senior management and regulators periodically and on an ad-hoc basis, if necessary. ALCO provides recommendations and makes decisions to ensure that liquidity risk is managed properly in normal and crisis conditions. Active surveillance is in line with the established Bank provisions and in accordance with SEBI 16/11/ DPNP/2009 and SEOJK No. 34/SEOJK.03/2016 on the Bank’s Liquidity Risk Management. Decisions taken by ALCO in the management of assets and liabilities are applicable to all units. The Board of Directors ensures the liquidity risk structure has clear lines of authority and responsibility at all levels of management to maintain an on-going awareness of Bank liquidity performance and overall liquidity risk profile. The ALM (Asset Liability Management) Unit monitors liquidity risk together with other relevant units and reports to the Asset & Liability Committee (ALCO). Policies, Procedures, and Limit Setting CIMB Niaga has adequate policies and procedures for liquidity risk management. Policies developed by the Risk Management Unit together with other related units include, among others: liquidity risk management policy, escalation procedures, contingency plan for emergency funding, liquidity risk reporting, normal business conditions assumptions, and liquidity risk reporting behavioral cash flow model. These policies and procedures guide the Bank in managing liquidity risk and must be approved by the management committees according to the level. This is a reflection of the active surveillance and involvement in the liquidity risk management. Annual Report CIMB NIAGA 2017
  311. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Aligned with with liquidity risk policy , a three-level structure risk policy is designed to facilitate the effective application of a comprehensive liquidity risk management framework to distinguish different types of policies, risk limits and procedures or technical guidelines for liquidity risk management. Policy and procedure sufficiency reviews are conducted periodically and approved by management according to the approval level. Document policy must be approved up to the Board of Commissioners, while technical guidance documents are approved by the Board of Directors. Assessment on the adequacy of the policy and its Consolidated Financial Report implementation is conducted by an independent party, namely Internal Audit. Results of the assessment are submitted to management and the Audit Committee for further action. The Bank establishes liquidity risk limits and parameters in accordance with the level of risk appetite based on liquidity gap analysis under normal and stress conditions, as well as through liquidity ratio analysis. Funding Strategy In liquidity management, CIMB Niaga strives to meet its financing needs in a sustainable manner by applying strategies that support continuity and stability in fund management. Hence, the Bank always strives to improve stability and sustainability funding. The Bank focuses on CASA through the Retail and SME segments to maintain stability and cost of funding. Within the past year, there was an increasing trend in CASA which is expected to improve. FCY Deposit by Segment IDR Deposit by Segment 100% 100% Retail SME Wholesale 50% Retail SME Wholesale 50% IDR Deposit by Product Dec-17 Nov-17 Oct-17 Sep-17 Aug-17 Jul-17 Jun-17 May-17 Apr-17 Mar-17 Feb-17 Dec-16 Dec-17 Nov-17 Oct-17 Sep-17 Aug-17 Jul-17 Jun-17 May-17 Apr-17 Mar-17 Feb-17 Jan-17 FCY Deposit by Product 100% 100% TD SA CA 50% Annual Report CIMB NIAGA 2017 Dec-17 Nov-17 Oct-17 Sep-17 Aug-17 Jul-17 Jun-17 May-17 Feb-17 Jan-17 Dec-16 Dec-17 Nov-17 Oct-17 Sep-17 Aug-17 Jul-17 Jun-17 May-17 Apr-17 Mar-17 Feb-17 Jan-17 0% Dec-16 0% TD SA CA 50% Mar-17 Dec-16 Jan-17 0% 0% Apr-17 Others Corporate Data 311
  312. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT The growth of stable and low-cost deposits continues to be pursued by improving the features of deposit products , so customers are expected to use existing funding products as a needs for features service that provided and not simply to expect economic incentives Risk Management Process Related to the risk management process, the Bank has successfully implemented system infrastructure that can perform liquidity gap calculations from detailed data sources, covering all balance sheet positions and administrative accounts. Risk Identification and Assessment The identification and assessment process of liquidity risk is conducted through the following method : • Liquidity Gap Analysis under Normal and Stress (Crisis) Business Conditions Liquidity risk is monitored and managed on a cash flow projection (liquidity gap) basis as the primary assessment. The Bank must assess and project cash flows arising from maturity profiles as well as the behavior of assets, liabilities, offbalance sheet commitments, and its derivatives in several gap periods. 312 The liquidity risk assessment tools are available under both normal and stressed business conditions. The Bank should be able to cover cash outflows through cash inflows during the upcoming 30 day period. Normal conditions analysis is defined where cash outflow and cash inflow are running normally, where everything operates based on general or behavioral habits, in business-asusual situations, deposits growth continues to increase and interbank transaction is exercised at fair interest rates. While stressed or crisis conditions occur where there is an unexpected cash outflow event, such as a significant increase in funds withdrawal from customer accounts and cancellation of cash inflow from debtor loan repayments that require the Bank to sell liquid assets to cover the mismatch. The adequacy of the liquid asset components to meet cash flow mismatch will define Banks’s benchmark in normal conditions. • Liquidity Ratios Liquidity ratio is an integral part of liquidity risk management tools in to cash flow mismatch positions/liquidity gaps. The liquidity ratios monitored include liquidity gaps for local currency and foreign currency, loan to deposit ratio (LDR), funding concentration ratio, liquid assets adequacy ratio, and Basel III liquidity ratio, which includes the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR). • Risk Monitoring CIMB Niaga has Early Warning System (EWS), which informs and alerts management earlier in case deterioration of conditions that could negatively impact Bank’s liquidity position. EWS is an assessment methodology that can be used to detect a liquidity problem, and to evaluate bank’s financing needs and strategies in times of a liquidity crisis. Basically, the EWS provides indications and reports on a daily basis, such as macro indicator movements, banking and financial systems indicators, bank’s internal indicators, and reported indicators based on events that can provide signals of the bank’s financial strength and stability. The indicators are selected based on their impact on the financial system by using empirical studies. The purpose of the EWS is to assist management in determining preventive steps to ensure that bank’s liquidity is at expected level considering liquidity can not be build in a short amount of time. In addition, the EWS Annual Report CIMB NIAGA 2017
  313. Supporting Business Review Corporate Governance Report Corporate Social Responsibility helps to prevent the Bank from falling into a bad liquidity crisis that could affect Bank ability to access existing funding sources , as well as assisting management in determining remedial strategies to maximize the liquidity of assets and the stability of liabilities. In terms of liquidity risk reporting, the Bank must ensure the deployment of adequate management information systems to meet a variety of reporting requirements. Analysis on the Adequacy of the Bank’s Managed liquidity in Stress Testing Scenarios Banks conducts stress testing to evaluate liquidity resilience in facing of an extreme event scenario caused by idiosyncratic scenarios as well as events occurring in the overall/systemic market (marketwide). The stress test scenario is generally an extraordinary, yet plausible occurrence. Associated with liquidity risk, for the Bank, stress testing estimates the resilience of liquidity, as well as identifying measures to be taken to mitigate the possibility of such stress conditions. The Bank conducts stress testing based on actual scenarios, comprehensive models, and measurable calculation systems. For liquidity risk, the prepared scenarios include both idiosyncratic and systemic (marketwide) scenarios. This will have an impact on the stress mitigation measures. An idiosyncratic stress scenario is when only the Bank itself is experiencing liquidity difficulties, but the overall market is relatively normal. While under systemic or marketwide stress conditions, the industry and the market experience pressure in terms of liquidity. Simulations are conducted on a regular and as-needed basis in order to ensure that the liquidity conditions being managed are always within the required limits. Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report Basically, the prepared liquidity scenarios are: increased outflow from the Bank beyond the normal limits, decreased inflow due to counterparty counter production and eroding of the market price on the liquid assets owned. In the process, the Bank uses assumptions in the calculation of stress testing. The assumptions used are regularly reviewed and approved by management through ALCO meetings. The simulation results are further discussed in the ALCO forum. In the event of belowthe-limit results, improvement measures will be decided, to be undertaken by Business Units. Emergency Contingency Funding Plan The Emergency Contingency Funding Plan (CFP) is one component of the Bank’s liquidity risk management policy, which is a compilation of policies, procedures and action plans that are treated as procedural and operational guidelines in the event of a crisis or stress condition. It is intended to avoid, minimize, or manage a potential or actual liquidity crisis. The CFP policies are reviewed annually. The existing Early Warning Signal monitoring indicators are part of the existing Emergency Contingency Funding Plan. EWS is monitored on a daily basis and acts trigger for the implementation of the Emergency Contingency Funding Plan. In the event of a crisis, the Bank must activate the CFP procedure and become self-sufficient during that period. The Bank has been testing the CFP to ensure the established procedures can be run in a real crisis situations. As one form of curtailing liquidity risk, the Bank has established a Funding Crisis Management Team (FCMT). FCMT members consist of all Directors with senior management with the expectation that the FCMT’s decisions can be implemented quickly across all divisions. 313
  314. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT decisions in the event of a crisis . CFP testing is conducted at least once a year. The Bank regularly conducts trials on the CFP policy with the expectation that all relevant parties will be able to make quick, accurate and appropriate There are three (3) main phases of Bank liquidity crisis management, as follows : Phase 1 Crisis Identification, escalation and crisis declaration Phase 2 Crisis Management Strategy Team (FCMT) Phase 3 Decreasing Crisis Status and return to Normal Business Situation Risk Reporting CIMB Niaga prepares liquidity gap reports on a daily basis by using contractual and behavioral cash flows on balance sheet, observed daily liquidity ratios, as well as monitoring Early Warning System (EWS) on a daily basis. ALM Risk must notify of any significant trend in those ratios to senior management. These indicators consist of internal and external indicators. EWS indicators are part of the contingency funding plan procedure which must be approved by the Board of Commissioners. ALM Risk also reviews and continuously improves indicators in the Early Warning Signal (EWS), enabling the monitored indicators to actually provide information on the indications of a crisis. Liquidity Coverage Ratio (LCR) Reporting The Liquidity Coverage Ratio (LCR) currently conducted on a monthly basis as required in POJK No. 42/POJK.03/2015 on the Obligation to Liquidity Coverage Ratio fullfilment. Also referring to POJK No. 32/POJK.03/2016 on the Transparency and Publication of Bank Reports, in which banks are required to convey information concerning their liquidity ratio to the public. The Bank regularly submits the LCR figures to the OJK through the online reporting and to the public through the Bank’s official website on a quarterly basis. LCR figures are always kept above the limits set by the regulator, and follow the established guidelines criteria. In addition, the liquidity gap report, MAT, limit and ratification report (if any) are reported to ALCO if it is surpassed and must be reported within 24 hours. CIMB Niaga has implemented and applied the automated calculation system since February 2017. With its implementation, the Bank is expected to identify liquidity ratios quickly that must be monitored and must maintain consistency. 314 Annual Report CIMB NIAGA 2017
  315. Supporting Business Review Corporate Governance Report Corporate Social Responsibility With the development of this system , CIMB Niaga is able to conduct an intensive monitoring process on liquidity risk. The existing system is able to generate daily calculations as required by the regulators. LCR Ratio 30,000 25,000 250.12% Others Corporate Data Consolidated Financial Report Risk Control The Bank has set an appropriate liquidity risk tolerance that reflects the Bank’s level of liquidity risk acceptable by management. The level of risk tolerance also acts as control mechanism for liquidity risk exposure and susceptibility, and liquidity risk tolerance must be approved by the ALCO and notified to the Board of Directors. 217.57% 126.33% 158.02% 117.81% 150.29% 125.45% 138.65% 143.73% Nov-17 132.91% Apr-17 15,000 Mar-17 159.18% Oct-17 20,000 129.29% 10,000 Dec-17 Sep-17 Aug-17 Jul-17 Jun-17 Feb-17 Jan-17 0 May-17 5,000 Net Stable Funding Ratio (NSFR) Reporting In addition to LCR, in the implementation of BASEL III concerning the monitoring of liquidity risk, the Bank is also expected to monitor Net Stable Funding Ratio (NSFR) adequacy, where in POJK No. 50/POJK.03/2017, the criteria for grouping components of the balance sheet included in the NSFR calculation, as well as the weights imposed, have been established. It is stipulated that NSFR implementation will come into effect in 2018, but banks with certain criteria are required to conduct the calculation test and report to the OJK. CIMB Niaga readiness in reporting NSFR figures is conducted by preparing a calculation automation system that is expected to generate accurate and fast NSFR figures. The system has been under development since 2016 and had begun to generate calculations by the end of 2017. This demonstrates that Bank CIMB Niaga pays close attention to adequately managing liquidity risk. Annual Report CIMB NIAGA 2017 Escalation on liquidity risk tolerance limits is adjusted to its tolerance level, and stages of escalation at each level of tolerance are different. Liquidity risk tolerance, expressed quantitatively in the Bank’s limit system referred to as Regulatory Limits, Limit, Management Action Trigger (MAT) and Alert. Tolerances, defined internally are Limit, Management Action Trigger and Alert. Regulatory Limits as specified by regulators are boundaries that should not be exceeded. Therefore, internal tolerance limits are prepared as a warning before regulator limits are reached. The internal tolerance limits are prepared as those limits that must be maintained at all times as a control position for either the cumulative net cash flow mismatch or liquidity gap (using behavioral cash flow), as well as other liquidity ratio components of liquidity ratio such as Total Liquid Assets against Total Assets, Net Interbank Ratio, deposit concentration and a few liquidity ratio components. In determining internal tolerance for liquidity risk, the Bank considers several factors, namely the historical position mismatch and the use of tolerance limit, funding capacity, diversification of funds, market conditions and liquidity stress analysis. 315
  316. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT Compliance with liquidity tolerance limits and the most recent condition must be reported to the ALCO at least on a monthly basis . When a liquidity tolerance limit is exceeded, the Bank will undertake the necessary corrective actions to maintain the limit with the approval of senior management as set out in escalation procedures and liquidity risk reporting. All exceeded limits, as well as the corrective actions have been well documented. Liquidity gap monitoring serves as a preventive measure to control the risks arising from a daily cash flow mismatch. The internal tolerance limit is reviewed at least once a year to ensure compliance and alignment with the Bank appetite, funding capacity, changes in the market conditions and business strategies over time. 316 Regulatory Limit: Limits are specified by regulator on the components of liquidity ratio that are not to be exceeded. Limit: Limits that are set internally on some liquidity monitoring components to be specified in Risk Appetite. MAT: •Serves as a hard trigger, to ensure that management’s risk profile does not exceed the Bank’s maximum acceptable risk. •When MAT is exceeded, corrective action must be taken to restore the position. Alert: Serves as a soft trigger to remind management that the risk profile is at a high level. Liquid Assets The Bank manages the components of both shortterm and long-term liquid assets. Short-term liquid assets are liquidity reserves that are managed by the Bank to support operational needs, while long-term liquid assets are the components that can be redeemed at any time and can be accepted by the market as liquid assets, in the event the Bank needs significant liquidity, particularly in the event of an unexpected situation. Limitations on the management of liquid assets are adjusted to the criteria and the character of the deposit. The sufficiency of liquid assets is monitored by the liquidity ratios that are regulatory in nature and which recognize internal needs. With the enactment of the LCR, the Bank monitors the adequacy of liquid assets for potential cash outflows over the next 30 days. The Bank also adjusts the liquidity instrument criteria to be managed. This is in line with the applicable regulations. The management of liquidity composition between Level 1 and Level 2 is always maintained by monitoring the adequacy and benefits provided with the constraints of fulfilling LCR figures above the set limits. Statutory Reserves (GWM) CIMB Niaga has fulfilled its main Statutory Reserve requirement (GWM) in accordance with regulator requirements to maintain a certain minimum deposit reserve requirement at the Central Bank based on the percentage of third party funds held by the Bank. The Bank has also comply with the secondary statutory reserves requirement to have a minimum amount of liquid assets as prescribed by regulators. Annual Report CIMB NIAGA 2017
  317. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Internal Control Bank periodically updates its liquidity risk policies and limits . The limit is updated to accommodate changes in liquidity conditions in the financial markets. Reviews of policies and procedures carried out on an annual basis and approved by the management in accordance with the level of policy or procedure. An independent party assesses the adequacy of policies. This requirement is fulfilled by Internal Audit, while reports are submitted to management and the Audit Committee for further action. The following is a brief illustration of the CIMB Niaga liquidity risk management framework •ALCO •KIPER Active supervision by Policies, Procedures Boards of Directors and Limits and Commissioners Liquidity Risk Management Process •Liquidity Gap NBC (daily) and Stress (weekly) • CFP EWS Annual Report CIMB NIAGA 2017 Monitoring, Reporting and Controlling of Risk Management Identification and Measurement of Risks • Liquidity Risk Policies and Procedures •Risk Appetite Statement • Early Warning Signal • Full Balance Sheet Liquidity Gap •Analysis of normal conditions and stress •Liquidity Ratios 317
  318. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT Quantitative Liquidity Risk Disclosures Table 8 .1.a. Rupiah Maturity Profile Disclosure - Bank Only Position 31 December 2017 No. Account (1) (2) Balance (3) BALANCE SHEET     A       1. Cash     2. Placement with Bank Indonesia     3. Placement with Other Banks     4. Marketable Securities     5. Loans     6. Other Assets     7. Others   Total Asset       Liabilities I Asset Maturity *)   B.     1. Third Party Fund     2. Obligations to Bank Indonesia     3.         > 1 up to 3 Months > 3 up to 6 Months (4) (5) (6)       (7)     > 6 up to 12 Months       3,428,215 3,428,215 - - - 16,564,125 16,564,125 - - - 299,199 299,199 - - - 34,507,915 817,768 3,848,825 3,311,792 4,873,463 155,588,252 25,256,276 15,006,157 12,066,020 13,951,653 4,337,700 3,147,909 11,484,013   506,809 49,513,492     593,470 - 226,209,419   < 1 Month 19,448,452     27,753 - 15,884,621     18,852,869       149,769,814 121,295,062 14,586,199 3,192,157 5,758,204 - - - - - Obligations to Other Banks 5,973,971 5,183,709 267,506 1,442,427 - 4. Marketable securities issued 14,782,316 4,965,571 - 1,829,804 -   5. Borrowings 1,285,001 1 825,000 - 460,000   6. Other Liabilities 9,127,981 3,810,185 843,605 3,218,838 4,962     7. Others - - - - -   Total Liabilities 180,939,083 135,254,528 16,522,310 9,683,226 6,223,166       Difference of Assets and Liabilities     II         ADMINISTRATIVE ACCOUNT A.   Administrative Account Receivables     45,270,336     (85,741,036)     2,926,142     6,201,395   12,629,703                           1. Commitment - - - -     2. Contingency 951,455 951,455 - - -   Total Administrative Account Receivables 951,455 951,455 - - -         B.   Administrative Account Liabilities -                         1. Commitment 49,187,164 6,229,902 8,483,917 7,110,865     2. Contingency 3,966,555 1,350,246 762,286 821,070 859,180   Total Administrative Account Payable 53,153,719 7,580,148 9,246,203 7,931,935 13,809,869       Difference of Receivables and Liabilities in the Administrative Account             Difference [(IA-IB)+(IIA-IIB)]       Cumulative Difference         12,950,689   (52,202,264) (6,628,693) (9,246,203) (7,931,935) (13,809,869) (6,931,928) (92,369,729) (6,320,061) (1,730,540) (1,180,166) (92,369,729) (98,689,790) (100,420,330) (101,600,496)     *) According to regulatory requirement 318 Annual Report CIMB NIAGA 2017
  319. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report (in million Rupiah) Position 31 December 2016 Maturity *) Balance > 12 Months (8) (9)       < 1 Month > 1 up to 3 Months > 3 up to 6 Months > 6 up to 12 Months (10) (11) (12) (13)             (14)     > 12 Months       - 2,798,702 2,798,702 - - - - - 11,551,692 11,551,692 - - - - - 95,712 95,712 - - - - 21,656,067 25,761,498 1,009,104 1,575,595 3,958,896 3,421,699 15,796,204 89,308,146 149,733,649 11,509,476 6,099,929 7,880,941 8,741,120 115,502,183 2,875,099 693,842 540,931 156,159 61,759 4,454,298 11,484,013 12,124,399 122,509,985 206,519,950 29,839,785 8,369,366 12,380,768 12,318,978 143,611,053 4,938,192 146,860,140 107,551,127 22,163,009 6,138,247 5,002,992 6,004,765 - - - - - - - 4,180,266 3,290,505 5,634 811,917 36,400 35,810 3,407,338 - - - - 3,407,338 (919,671) 7,986,941 188,267 12,124,399 - 50,001 50,001 - - - - 1,250,391 9,443,038 3,453,205 458,631 1,549,889 15,504 3,965,809 - - - - - - - 13,255,853 163,940,783 114,344,838 22,627,274 8,500,053 5,054,896 13,413,722 109,254,132 42,579,167 (84,505,053) (14,257,908) 3,880,715 7,264,082 130,197,331 - - - - - - - - 915,199 915,199 - - - - - 915,199 915,199 - - - - 14,411,791 54,258,717 9,911,834 4,914,640 8,922,910 10,251,307 20,258,026 173,773 3,253,233 455,738 612,800 978,050 715,827 490,818 14,585,564 57,511,950 10,367,572 5,527,440 9,900,960 10,967,134 20,748,844 (14,585,564) (56,596,751) (9,452,373) (5,527,440) (9,900,960) (10,967,134) (20,748,844) 94,668,568 (14,017,584) (93,957,426) (19,785,348) (6,020,245) (3,703,052) 109,448,487 (93,957,426) (113,742,774) (119,763,019) (123,466,071) (6,931,928) Annual Report CIMB NIAGA 2017 (14,017,584) 319
  320. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT Table 8 .1.b. Rupiah Maturity Profile Disclosure - Consolidated Position 31 December 2017 No. Account (1) (2) (3) BALANCE SHEET     A       1. Cash     2. Placement with Bank Indonesia     3. Placement with Other Banks     4. Marketable Securities     5. Loans     6. Other Assets     7. Others   Total Asset         B. Liabilities     1. Third Party Fund     2. Obligations to Bank Indonesia     3. Obligations to Other Banks     4. Marketable securities issued     5. Borrowings     6. Other Liabilities     7. Others   Total Liabilities I Asset < 1 Month > 1 up to 3 Months > 3 up to 6 Months (4) (5) (6)       (7)     > 6 up to 12 Months       3,434,971 3,434,971 - - - 16,564,125 16,057,681 506,444 - - 344,194 344,194 - - - 34,507,915 817,768 3,848,825 3,311,792 4,873,463 158,429,544 25,210,557 15,418,880 13,195,563 13,703,442 4,584,962 10,843,855 228,709,566 3,395,171 - 593,470 - 49,260,342 506,809 - 20,367,619 27,753 - 17,014,164 18,604,658         Difference of Assets and Liabilities     II Maturity *) Balance   - - - - - 149,631,781 121,157,029 14,586,199 3,192,157 5,758,204 - - - - - 5,973,971 5,183,709 267,506 1,442,427 - 14,782,316 4,965,571 - 1,829,804 - 2,551,854 8,319 829,158 - 563,517 9,692,810 3,981,362 843,605 3,608,219 4,962 182,632,732 135,295,990 16,526,468 10,072,607 6,326,683 46,076,834 (86,035,648) 3,841,151 6,941,557 12,277,975 -       ADMINISTRATIVE ACCOUNT   A. Administrative Account Receivables     1. Commitment - - - -     2. Contingency 951,455 951,455 - - -   Total Administrative Account Receivables 951,455 951,455 - - -     12,950,689     B.   Administrative Account Liabilities     1. Commitment 49,187,164 6,229,902 8,483,917 7,110,865     2. Contingency 3,966,555 1,350,246 762,286 821,070 859,180   Total Administrative Account Payable 53,153,719 7,580,148 9,246,203 7,931,935 13,809,869 (52,202,264) (6,628,693) (9,246,203) (7,931,935) (13,809,869) (6,125,430) (92,664,341) (5,405,052) (990,378) (1,531,894) (92,664,341) (98,069,393) (99,059,771) (100,591,665)       Difference of Receivables and Liabilities in the Administrative Account             Difference [(IA-IB)+(IIA-IIB)]       Cumulative Difference       *) According to regulatory requirement 320 Annual Report CIMB NIAGA 2017
  321. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report (in million Rupiah) Position 31 December 2016 Maturity *) Balance > 12 Months (8) (9)       < 1 Month > 1 up to 3 Months > 3 up to 6 Months > 6 up to 12 Months (10) (11) (12) (13)             (14)     > 12 Months       - 2,798,988 2,798,988 - - - - - 11,551,692 11,551,692 - - - - - 182,995 182,995 - - - - 21,656,067 25,761,498 1,009,104 1,575,595 3,958,896 3,421,699 15,796,204 90,901,102 155,091,208 9,681,763 6,778,019 10,066,507 8,741,121 119,823,798 3,148,121 693,842 540,931 156,159 61,759 4,727,320 10,843,855 11,513,317 188,267 123,462,783 211,627,018 28,372,663 9,047,456 14,566,334 12,318,979 147,321,586 11,513,317 - 146,770,644 107,461,631 22,163,009 6,138,247 5,002,992 6,004,765 4,938,192 - - - - - - - 4,180,266 3,290,505 5,634 811,917 36,400 35,810 (919,671) 3,407,338 - - - - 3,407,338 7,986,941 3,921,184 50,808 13,775 121,091 403,963 3,331,547 1,150,860 9,917,904 3,647,526 458,631 1,796,445 15,504 3,999,798 1,254,662 - - - - - - 14,410,984 168,197,336 114,450,470 22,641,049 8,867,700 5,458,859 16,779,258 109,051,799 43,429,682 (86,077,807) (13,593,593) 5,698,634 6,860,120 130,542,328 - - - - - - - - 915,199 915,199 - - - - - 915,199 915,199 - - - - 14,411,791 54,258,717 9,911,834 4,914,640 8,922,910 10,251,307 20,258,026 173,773 3,253,233 455,738 612,800 978,050 715,827 490,818 14,585,564 57,511,950 10,367,572 5,527,440 9,900,960 10,967,134 20,748,844 (14,585,564) (56,596,751) (9,452,373) (5,527,440) (9,900,960) (10,967,134) (20,748,844) 94,466,235 (13,167,069) (95,530,180) (19,121,033) (4,202,326) (4,107,014) 109,793,484 (95,530,180) (114,651,213) (118,853,539) (122,960,553) (6,125,430) Annual Report CIMB NIAGA 2017 (13,167,069) 321
  322. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT Table 8 .2.a. Foreign Currency Maturity Profile Disclosure - Bank Only Position 31 December 2017 No. Account (1) (2) I Balance (3) BALANCE SHEET     A       1. Cash     2.         Asset Maturity *) < 1 Month > 1 up to 3 Months > 3 up to 6 Months (4) (5) (6)       (7)     > 6 up to 12 Months       461,026 461,026 - - - Placement with Bank Indonesia 3,053,517 3,053,517 - - - 3. Placement with Other Banks 8,458,840 8,458,840 - - -   4. Marketable Securities   5. Loans     6. Other Assets     7. Others   Total Asset         B. Liabilities     1. Third Party Fund     2. Obligations to Bank Indonesia     3. Obligations to Other Banks     4. Marketable securities issued     5.     6.     7. Others   Total Liabilities       Difference of Assets and Liabilities     II 3,944,181 176,787 625,651 763 130,021 26,705,869 9,244,954 4,985,423 1,207,619 2,476,268 2,886,145 607,288 1,192,086 872,023 92,397 - - - - - 45,509,578 22,002,412 6,803,160 2,080,405 2,698,686 39,685,415 28,406,325 4,267,750 2,229,520 2,021,008 - - - - - 910,364 910,364 - - - - - - - - Borrowings 3,257,869 2,715,180 542,689 - - Other Liabilities 2,868,069 529,361 1,211,248 1,001,759 87,536     - - - 46,721,717 32,561,230 (1,212,139) (10,558,818) 6,021,687 3,231,279 2,108,544     781,473 (1,150,874) 590,142   ADMINISTRATIVE ACCOUNT   A. Administrative Account Receivables     1. Commitment - - - - -     2. Contingency 79,985 79,985 - - -   Total Administrative Account Receivables 79,985 79,985 - - -     3,440,816     B.   Administrative Account Liabilities     1. Commitment 12,898,571 1,014,739 3,210,649 2,455,616     2. Contingency 925,742 371,712 340,198 154,921 53,249   Total Administrative Account Payable 13,824,313 1,386,451 3,550,847 2,610,537 3,494,065       Difference of Receivables and Liabilities in the Administrative Account (13,744,328) (1,306,466) (3,550,847) (2,610,537) (3,494,065)       Difference [(IA-IB)+(IIA-IIB)] (14,956,467) (11,865,284) (2,769,374) (3,761,411) (2,903,923)       Cumulative Difference (11,865,284) (14,634,658) (18,396,069) (21,299,992)             *) According to regulatory requirement 322 Annual Report CIMB NIAGA 2017
  323. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report (in million Rupiah) Position 31 December 2016 Maturity *) Balance > 12 Months (8) (9)       < 1 Month > 1 up to 3 Months > 3 up to 6 Months > 6 up to 12 Months (10) (11) (12) (13)             (14)     > 12 Months       - 462,741 462,741 - - - - - 2,785,854 2,785,854 - - - - - 4,885,580 4,885,580 - - - - 3,010,959 2,345,730 45,789 100,645 - - 2,199,296 8,791,605 25,072,831 2,526,522 2,354,619 3,386,510 1,584,661 15,220,519 122,351 3,206,652 616,919 992,147 1,413,159 73,977 110,450 - - - - - - - 11,924,915 38,759,388 11,323,405 3,447,411 4,799,669 1,658,638 17,530,265 2,760,812 33,800,490 25,968,900 1,729,770 761,216 1,017,187 4,323,417 - - - - - - - - 377,207 377,207 - - - - - - - - - - - - 1,514,889 616,733 898,156 - - - 38,165 3,474,184 605,258 990,064 1,669,427 129,593 79,842 2,798,977 39,166,770 27,568,098 3,617,990 2,430,643 1,146,780 4,403,259 2,369,026 511,858 13,127,006 - - 9,125,938 (407,382) (16,244,693) (170,579) - - - - - - - - 1,588,120 1,588,120 - - - - - 1,588,120 1,588,120 - - - - 2,776,751 12,310,357 2,617,724 2,400,316 2,334,892 2,862,205 2,095,220 5,662 776,236 157,473 162,946 196,050 201,392 58,375 2,782,413 13,086,593 2,775,197 2,563,262 2,530,942 3,063,597 2,153,595 (2,782,413) (11,498,473) (1,187,077) (2,563,262) (2,530,942) (3,063,597) (2,153,595) 6,343,525 (11,905,855) (17,431,770) (2,733,841) (161,916) (2,551,739) 10,973,411 (17,431,770) (20,165,611) (20,327,527) (22,879,266) (11,905,855) (14,956,467) Annual Report CIMB NIAGA 2017 323
  324. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT Table 8 .2.b. Foreign Currency Maturity Profile Disclosure - Consolidated Position 31 December 2017 No. Account (1) (2) I Maturity *) Balance < 1 Month > 1 up to 3 Months > 3 up to 6 Months (4) (5) (6) (3) BALANCE SHEET     A       1. Cash     2.         Asset       (7)     > 6 up to 12 Months       461,026 461,026 - - - Placement with Bank Indonesia 3,053,517 3,053,517 - - - 3. Placement with Other Banks 8,458,840 8,458,840 - - -   4. Marketable Securities   5. Loans     6. Other Assets     7. Others   Total Asset         B. Liabilities     1. Third Party Fund     2. Obligations to Bank Indonesia     3. Obligations to Other Banks     4. Marketable securities issued     5.     6.     7. Others   Total Liabilities       Difference of Assets and Liabilities     II 3,944,181 176,787 625,651 763 130,021 26,705,869 9,244,954 4,985,423 1,207,619 2,476,268 2,886,145 607,288 1,192,086 872,023 92,397 - - - - - 45,509,578 22,002,412 6,803,160 2,080,405 2,698,686 39,685,415 28,406,325 4,267,750 2,229,520 2,021,008 - - - - - 910,364 910,364 - - - - - - - - Borrowings 3,257,869 2,715,180 542,689 - - Other Liabilities 2,868,069 529,361 1,211,248 1,001,759 87,536     - - - 46,721,717 32,561,230 (1,212,139) (10,558,818) - - 6,021,687 3,231,279 2,108,544     781,473 (1,150,874) 590,142   ADMINISTRATIVE ACCOUNT   A. Administrative Account Receivables     1. Commitment - - - - -     2. Contingency 79,985 79,985 - - -   Total Administrative Account Receivables 79,985 79,985 - - -     3,440,816     B.   Administrative Account Liabilities     1. Commitment 12,898,571 1,014,739 3,210,649 2,455,616     2. Contingency 925,742 371,712 340,198 154,921 53,249   Total Administrative Account Payable 13,824,313 1,386,451 3,550,847 2,610,537 3,494,065       Difference of Receivables and Liabilities in the Administrative Account (13,744,328) (1,306,466) (3,550,847) (2,610,537) (3,494,065)       Difference [(IA-IB)+(IIA-IIB)] (14,956,467) (11,865,284) (2,769,374) (3,761,411) (2,903,923)       Cumulative Difference (11,865,284) (14,634,658) (18,396,069) (21,299,992)             *) According to regulatory requirement Table 8.3. Liquidity Coverage Ratio (LCR) Disclosure LCR (%)     1 Quarter/2017 st (2) 3rd Quarter/2017 4th Quarter/2017 (3) (4) Bank only 1,8934 1,3335 144.55% 137.22% Consolidated 1,8185 1,319 143.01% 136.54% 324 (1) 2 Quarter/2017 nd Annual Report CIMB NIAGA 2017
  325. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report (in million Rupiah) Position 31 December 2016 Maturity *) Balance > 12 Months (8) (9)       < 1 Month > 1 up to 3 Months > 3 up to 6 Months > 6 up to 12 Months (10) (11) (12) (13)             (14)     > 12 Months       - 462,741 462,741 - - - - - 2,785,854 2,785,854 - - - - - 4,885,580 4,885,580 - - - - 3,010,959 2,345,730 45,789 100,645 - - 2,199,296 8,791,605 25,072,831 2,526,522 2,354,619 3,386,510 1,584,661 15,220,519 122,351 3,206,652 616,919 992,147 1,413,159 73,977 110,450 - - - - - - - 11,924,915 38,759,388 11,323,405 3,447,411 4,799,669 1,658,638 17,530,265 2,760,812 33,800,490 25,968,900 1,729,770 761,216 1,017,187 4,323,417 - - - - - - - - 377,207 377,207 - - - - - - - - - - - - 1,514,889 616,733 898,156 - - - 38,165 3,474,184 605,258 990,064 1,669,427 129,593 79,842 27,568,098 3,617,990 2,430,643 1,146,780 4,403,259 2,369,026 511,858 13,127,006 - - 2,798,977 39,166,770 9,125,938 (407,382) (16,244,693) (170,579) - - - - - - - - 1,588,120 1,588,120 - - - - - 1,588,120 1,588,120 - - - - 2,776,751 12,310,357 2,617,724 2,400,316 2,334,892 2,862,205 2,095,220 5,662 776,236 157,473 162,946 196,050 201,392 58,375 2,782,413 13,086,593 2,775,197 2,563,262 2,530,942 3,063,597 2,153,595 (2,782,413) (11,498,473) (1,187,077) (2,563,262) (2,530,942) (3,063,597) (2,153,595) 6,343,525 (11,905,855) (17,431,770) (2,733,841) (161,916) (2,551,739) 10,973,411 (17,431,770) (20,165,611) (20,327,527) (22,879,266) (11,905,855) (14,956,467) Annual Report CIMB NIAGA 2017 325
  326. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT D . OPERATIONAL RISK With the globalization of financial services, financial products continue to grow more complex and diverse in the market that become more competitive, and the development of rules and regulations by the regulators, financial institutions are faced with the challenge of managing unexpected loss. The risks of human error, failure of information technology, and processes of daily operations, as well as fraud and illegal acts must be minimized to maintain the Bank’s operational and functional activities. Operation Risk Tool START RCSA KRI LED • Assess Key Risk • Assess Key Control • Assess Residual Risk •Determine KRI Atribute & Threshold • Determine KRI Owner • Regular Update the KRI Value • Root Cause Analysis •Completeness of Required Information Any breach of Amber/Red Threshold? Any control weakness indentified Yes/ No END Any mitigating action Yes/ No END Yes/ No END CIM Approval for Recording Monitor & Closing RCSA KRI LED CIM : Risk Control Self Assesment : Key Risk Indicator : Loss Event Database : Control Issue Management END CIMB Niaga understands that the main factor for proper operational risk management is by fostering discipline and risk management culture in the Bank’s organization comprehensively. The active role of every employee is to support an effective and efficient operational risk management program and to accomplish the ORM Mission Statement. The ORM Mission Statement of Bank CIMB Niaga is: “To foster a risk management culture and implement best practices based on international standards with the assistance of the system as a 326 continuous effort in managing operational risks, and to protect the interests of the stakeholders and shareholders of CIMB Niaga from operational risk losses.” To support this, the operational risk management process must be carried out effectively. The Bank uses operational risk instruments such as Risk Control Self- Assessment, Key Risk Indicator, Loss Event Data Management, Control Issue Management, New Product Approval, and Significant Change Assessment Process’ to detect operational risks as early as possible. Annual Report CIMB NIAGA 2017
  327. Supporting Business Review Corporate Governance Report Corporate Social Responsibility CIMB Niaga already has the Operational Risk Management Unit and Anti-Fraud Management Unit as the second line of defense , and function of Checks and Balances as the third line of defense, or Internal Audit for managing operational risk. Governance The Board of Commissioners and the Board of Directors perform active supervision of operational risk management, through the evaluation of the Risk Committee at the level of the Board of Directors and Board of Commissioners. Overall, the Board of Directors is responsible for ensuring proper supervision of the Bank’s operational risks. The Board of Directors sets the risk appetite and risk tolerance levels consistently and in line with the Bank’s overall business objectives and expected risk profile. The Board of Directors has full responsibility for the establishment and supervision of the Bank’s operational risk management framework to ensure that operational risks are properly managed. With the assistance of the Risk Control Unit, independent work unit in each line of defence, each business manager is responsible for managing operational risk and compliance in his/her respective area. The responsibilities include maintaining internal controls, in accordance with the scale and nature of operations, identifying and assessing risks, designing controls, and monitoring the effectiveness of the controls. The operational risk management framework assists them to fulfill their responsibilities by setting the standards for risk assessment methodology and providing tools for systematic reporting of operational risks and better operational risk mitigation processes. Policies, Procedures and Limit Setting CIMB Niaga has established bank-wide policies for operational risk management. For daily operational implementation techniques, the Bank has also established procedures that govern the flow of operational activities, duties and responsibilities, authority limits and boundaries, lines of reporting Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report and escalation, markers, checks, as well as approval. The policies and procedures are periodically reviewed and updated to develop and strengthen the corporate risk culture and good corporate governance. In managing operational risk, the Bank adheres to the following principles: • The Bank has a risk appetite that is in accordance with applicable laws and regulations. • The Bank will only conduct activities on products, services, and locations with adequate control of infrastructure and adequate level of expertise together with a true understanding, in order to carry out operational risk management. • The Bank will only approve new products and transactions, products, and markets where the Bank has the expertise and capability to perform effective and proactive risk management eg; the ability to identify, measure, manage, monitor, and report on risks encountered, as well as other risks associated with the products and transactions. Each new product and service must be developed in a comprehensive manner and must be approved by the Committee at the Board of Directors’ Level. • The Bank evaluates and continuously improves its policies and procedures to support operations and risk management in all types of Bank products and activities. • The Bank requires each operational unit and activity to follow full business continuity procedures and to have access to disaster recovery facilities. • The Bank provides adequate levels of resources and systems to address current business activities and future plans. • Risk-taking authority is only granted to staff with adequate skills and expertise, in accordance with the level of risk. 327
  328. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT • The Bank separates duties and functions based on “Four Eyes Principle“ concept to ensure objectivity and avoid conflicts of interests. Risk Management Process The operational risk management process begins with identification, measurement, control, and management, as well as follow-up and reporting of operational risks that are inherent to the Bank’s main products, activities, processes, and systems. 1. Risk Identification • Identify and define events that have an impact on the achievement of a specific objective of Bank’s business and support functions. • Conduct reviews on various sources of risk. • Establish a comprehensive list of possible scenarios for operational risk exposures. • Sort different types of operational risks according to their categories. 2. Risk Assessment • Determine the possibilities or opportunities for risk events in the future. • Evaluate the impact of the current risk events. • Determine the level of risk, whether acceptable or unacceptable. 3. Risk Control and Management • Prepare the plan for risk mitigation • Review all possibilities that could be a source of operational risk mitigation • Re-evaluate the risks if necessary and perform priority adjustments. 4. Follow Up and Risk Reporting • Follow up on the results achieved during implementation. • Monitor the operational risk exposure and the operational risk mitigation implementation processes. • Report operational risk exposures to senior management, the committees, and the regulators. Operational Risk Management Process at CIMB Niaga IDENTIFICATION - What risk do we face? • Significant Change MONITORING - How do we track risks?? Risk Cycle methodology Con Assessment Process l Mon tro • New Product Approval • Standardized rating ess Processes, System ify Ass t n I itor de • Risk Assessment - Products, ANALYZE - How big is the risk? MITIGATE - How do we fix the issue?? • Operational Risk Committee framework • Corrective mitigation plan • Control Effectiveness Testing • Risk Acceptance • Key Risk Indicators vs Thresholds • Internal Audit Report 328 Annual Report CIMB NIAGA 2017
  329. Supporting Business Review Corporate Governance Report Corporate Social Responsibility The following are the principles of the operational risk management information system : 1.CIMB Niaga uses an information system that meets the needs of effective operational risk management. The current system and technology are in accordance with the nature and volume of transactions, and the needs of the Bank. 2.Communication systems enable deliverable of information effectively, which includes information on operational risk management policies and procedures, operational loss exposures, and operational performance. 3. The management information system supports operational risk management processes, including the process of identification, measurement, monitoring, and risk control as well as the decision making process by the management. 4.The Board of Directors and management must allocate resources (financial and personnel) optimally to support the operation, development, and maintenance of the system. In using 5. information technology, the management of the Bank must use a rigorous, comprehensive, prudent, and accurate analysis process to identify and quantify risks and to ensure that risk control is implemented to manage risk exposure. 6. In conducting the development, procurement, and using information technology, the Bank is required to take controlled measures to generate a system protecting data confidentiality and integrity, as well as supporting the achievement of the Bank’s objectives, including to: Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report • Establish and implement the procedures and methodology for the development and procurement of Information technology consistently. •Have strong project management in development of the system. •Conduct adequate testing during the development and procurement of a system, including pilot testing with the user of the unit, to ensure the accuracy and functioning of the system according to the needs of the users and the suitability of one system with other systems. • Compile documentation of the developed system and its maintenance. • Introduce a change in management for an application system. •Implement an adequate information technology security system. 7. The Bank must have a system support and operational capacity that can accommodate all business activities, including: • Provide accurate and timely input • Identify errors • Perform a process and completion of all transactions in an efficient, accurate, and timely manner. •Ensure confidentiality, accuracy, and security of transactions. •Perform reconciliation in an efficient manner. • Allow monitoring of risk exposure. 8. The management information system must be able to provide complete, accurate and timely reports and information on operational risk exposure for the decision making process by the Board of Directors. 329
  330. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT For the operational risk management information system , the Bank already has and utilizes the SHARP application, in support of comprehensive operational risk management, which is automated in accordance with regulation and best practice in banking. Controls Controls Issue Management (CIM) Risk Adequate Effective Issue Rating Action Date Owner Loss Event Database (LED) Control 1 Risk 1 Risk 2 Control 2 Controls Issue Control 3 Controls Issue Event Management • Loss Data •Regulatory Breach •Escalation Controls Issue Risk & Control Self Assessment Material Risk Assessment Control Effectiveness Testing Design and Test Control Issue Management Regulator or External Party Raised Issues In the process of improving operational risk awareness and culture, the Bank has conducted periodic socialization to all existing units, either through workshops, training, sharing sessions, or through articles in the internal Bank magazine, and through email blasts. Through comprehensive and integrated operational risk management, each employee is responsible for minimizing the occurrence of risk in his/her daily operational activities, by implementing a built-in control mechanism and ensuring compliance with the policies and procedures that are applicable in each activity. With the new training concept, that was introduced through ‘Learning on the Go’ via employees’ cellular phones, expected increasing the efficiency of the training to improve the risk awareness culture. 330 Root Cause Analysis Internal Audit Issues Internal Control In the implementation of an effective internal control system, there is a clear separation of duties and responsibilities in order not to cause a conflict of interests. Any potential conflicts of interests must be identified, minimized, and monitored independently, by defining the reporting path and a clear separation of a business unit from the work unit performing the control function. Internal control systems in support of operational risk management include: • Conformity of the internal control system with the type and level of risk inherent to the business activities of Bank CIMB Niaga. Annual Report CIMB NIAGA 2017
  331. Supporting Business Review Corporate Governance Report Corporate Social Responsibility • Establishment of authority and responsibilities for the monitoring of compliance, procedures, and limits. • Establishment of clear reporting lines and a clear separation of functions of business/ supporting units to the units that implementing the control functions. • Organizational structure that clearly illustrates the Bank’s business activities. • Adequacy of procedures to ensure the Bank’s compliance with the prevailing laws and regulations. • Effective, independent, and objective review of the assessment procedures of the Bank’s operational activities. • Periodic and continuous verification and reviews of the management of the Bank’s weaknesses to rectify the deviations that occur. Others Corporate Data Consolidated Financial Report An effective internal control system requires the establishment of an appropriate control structure, by describing the control activities at each business level. This includes reviews by top management; appropriate control activities for each of the different sections or divisions; supervision of compliance with limit exposures and followup of non-compliance; systems of approval and authorization; and verification and reconciliation of systems. In the implementation of an effective internal control system, there is a clear separation of duties and responsibilities, as well as the appointment of non-conflicting employees. Any potential conflict of interests must be identified, minimized, and independently monitored. Operational Risk Quantitative Disclosures Table 9.1.a. Quantitative Operational Risk Disclosures - Bank Only (in million Rupiah) Position 31 December 2017 No. Applied Approach (1) 1   Gross Income (Last 3 years average)*) (2) (3) Capital Charges (4) Position 31 December 2016 RWA Gross Income (Last 3 years average)*) Capital Charges (4) RWA (5) (3) Basic Indicator Approach (BIA) 14,251,055 1,987,953 24,849,418 12,684,188 1,902,628 23,782,852 (5) Total 14,251,055 1,987,953 24,849,418 12,684,188 1,902,628 23,782,852 *) For Bank that uses Basic Indicator Approach to calculate Operational Risk Table9.1.b. Quantitative Operational Risk Disclosures - Consolidated (in million Rupiah) Position 31 December 2017 No. Applied Approach (1) 1   Gross Income (Last 3 years average)*) (2) (3) Capital Charges (4) Position 31 December 2016 RWA Gross Income (Last 3 years average)*) Capital Charges (4) RWA (5) (3) Basic Indicator Approach (BIA) 14,882,650 2,096,616 26,207,702 13,444,055 2,016,608 25,207,603 (5) Total 14,882,650 2,096,616 26,207,702 13,444,055 2,016,608 25,207,603 *) For Bank that uses Basic Indicator Approach to calculate Operational Risk Annual Report CIMB NIAGA 2017 331
  332. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT E . LEGAL RISK Legal risk is arising from lawsuits and/or weakness of judicial aspect. In addition, this risk can arise due to the absence of underlying legislation or weakness of the engagement, such as the nonfulfillment of the legitimate terms of a contract, or an agreement containing a weak clause and/or the failure to fulfill the agreed terms and conditions. Governance CIMB Niaga implements legal risk governance by establishing the risk appetite where management has high legal risk awareness, and the Bank always applies adequate legal risk mitigation for all business activities. In principle, legal risk management is the responsibility of the Board of Commissioners and the Board of Directors, and all employees in the Bank. This is in line with corporate policy, governance and codes of ethics/code of conduct, which define the values adhered to by the Bank and set the standards of conduct for the Board of Commissioners and the Board of Directors and employees of the Bank. Furthermore, the Board of Directors may assign legal risk management to be executed by the legal organization under the Designated Legal Director with the structure, duties and competencies in providing support/legal assistance on the entire business segmentation, including legal policies. The unit that performs the legal managerial functions is the Legal Risk Management Group. 332 In addition, legal risk profile reports are submitted periodically to the Board of Directors and Board of Commissioners. Based on the reported results, the Board of Commissioners and Board of Directors evaluate and take those corrective actions necessary to improve the quality of the Bank’s legal risk management. Policies, Procedures and Limit Setting The Bank already has policies and procedures to manage legal risks, namely guidelines that provide legal advice for Bank actions in accordance with the applicable regulations, both internal and external. Policies on legal risk management are communicated to employees via e-manual system and e-mail blasts. The Bank also attempts to increase employee legal awareness through programs such as legal training. In addition, the Bank ensures the sufficiency and quality of legal opinions, advisory, HR competence in legal organizations to mitigate legal risks. Risk Management Process The Bank ensures adequacy in the process of identifying, measuring, monitoring, and controlling risks, as well as risk management information systems to avoid possible litigation or lawsuits. Identification, measurement, monitoring, and control process (to prevent/or minimize) of legal risks handled by legal unit. The legal risk management process is conducted starting with the process of establishing a banking product, preparing the policy and/or prior to a transaction, up to the settlement of legal issues that occur, including performing a post-mortem review of the legal aspects of a product or a transaction, as well as the professional handling of the legal handling process and reserving funds for the cost of potential loss (if required). Internal Control The legal organizational unit performs the functions of Legal Quality Assurance, Risk Management Unit, and Internal Audit Unit, and conducts comprehensive internal control in the risk management process through a periodic review process. F. STRATEGIC RISK The Bank’s business growth in the future is closely related to the strategic decision-making of the Bank. Therefore, the Bank always strives to improve the quality of strategic risk management, so that risks that may emerge from inaccuracies in strategic decision making and implementation, as well as failures to anticipate changes in the business environment, can be minimized or avoided. Annual Report CIMB NIAGA 2017
  333. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Governance The Board of Commissioners and the Board of Directors conduct active regulatory and supervisory functions in accordance with their authority and responsibility to determine the direction , strategy, and business focus of the Bank. The Board of Commissioners and the Board of Directors as well as senior management also ensure that risk management processes are in accordance with the Bank’s risk management framework and business plans. Each year, the Bank’s business strategy and focus are stated in the Bank Business Plan (RBB), which is formulated by the Board of Directors, approved by the Board of Commissioners, and reported to the Financial Services Authority (OJK). The entire strategy is developed in line with the Bank’s vision, mission and corporate culture, which translated into financial and non-financial parameters, as the guidelines for all employees to perform their roles and responsibilities. The Board of Directors provides general directives to all units related to the focus of each unit. The Board of Directors and senior management periodically conduct the performance evaluation of the Bank’s strategy implementation every month, through the Performance Management Meeting (PMM). At the Board of Commissioners’ level, performance evaluations are also conducted on a regular basis to ensure that business decisions taken by the Board of Directors have a positive impact on the Bank, in line with the strategy and effectiveness, to provide added value for the shareholders. Strategic risks are managed by the Strategy Unit, which is under the coordination of the Strategy and Finance Director, who is responsible for submitting the Bank’s performance to the Board of Commissioners, the Board of Directors, and regulators. Others Corporate Data Consolidated Financial Report Policies, Procedures and Limit Setting The Bank formulates general policies as a strategic guide and the focus of Bank business. As an initiative in the risk identification process, and to respond to changes in the business environment, both externally and internally, the Bank performs regular analysis of the banking industry in terms of macro and micro economic factors that could affect the Bank’s revenues and business continuity, across all lines of business. The general policies or strategic directives formulated by the Bank are divided into shortterm and medium-term perspectives. One form of implementation is to formulate the Bank Business Plan (RBB), which includes business activities plan of the Bank for the short term (one year) and medium term (three years), including plans to improve business performance, plans for new products and activities, network development plans, as well as strategies in accordance with the set target and timelines, while complying with prudential principles and good risk management practices. Monitoring progress of the Bank’s RBB realization is conducted periodically every 3 (three) months; furthermore, the Bank regularly monitors its financial performance on a monthly basis through the PMM. This enables the Bank to quickly identify and respond to changes in the business environment, both externally and internally, in accordance with developments in the industry. The Bank’s vision is “Becoming a Leading Bank in ASEAN” with the mission of “Providing integrated universal banking services in Indonesia, be an outstanding company in the ASEAN region and other main regions, and assist in the acceleration of ASEAN integration with other regions” To accomplish the vision and mission, the Bank has implemented medium-term strategy pillars that have become the main reference in conducting its Annual Report CIMB NIAGA 2017 333
  334. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT business . They are: Focus on the business lines that are the strengths of the Bank, strengthen the funding structure by focusing on CASA, show discipline in cost management, maintain the level of capital and balance in the risk management culture, and develop and leverage of information technology. In addition, to strengthen its business, the Bank will continue to augment synergy, and consolidation with its affiliates and subsidiaries. Risk Management Process The Bank continuously ensures the adequacy of strategic risk identification, measurement, monitoring, and control processes, by analyzing the realization of the business plan as well as the business environment. One of the identification processes is through a review of factors that affect the performance of business units, products, activities, and subsidiaries. The strategic risk measurement process is carried out using several parameters such as analyzing the conformity between the current strategy with the business environment, the Bank’s position among competitors, and the realization of the established Bank Business Plan (RBB). The Bank constantly monitors the achievements of its business plans and performance through key financial indicators such as total loans, total third party funds (including CASA portion of total third party funds), ROA, ROE, CAR, LDR, NPL, NIM, BOPO and other major ratios. Information related to strategic risk profile measurement results is also conducted quarterly and submitted to the regulators. 334 Internal Control Strategic risk management control includes regular monitoring of the Bank’s performance that impacts revenue and strategic risk management culture involving all of the Bank’s lines of business. The Board of Commissioners and the Board of Directors adopt and maintain strong internal control and ensure that the management implements and communicates these internal controls throughout the organization. The Bank also seeks to increase strategic risks management by determining the measurement of success of a strategy based on measurable and trackable figures through various employee performance indicators. G. COMPLIANCE RISK The main objective of compliance risk management is to minimize any possible negative impact on the Bank’s behavior that violates the prevailing rules and regulations. The Bank’s compliance risk management is based on the following compliance principles: a. Compliance starts from the top b. Compliance is a shared responsibility c. Prevailing laws and regulations fulfillment d. Competence and integrity e. Stakeholder- oriented f. Dedication to the Bank. g. Problem solving- orientated. Based on the above compliance principles, compliance risk management is carried out as follows: Governance The Bank is committed to compliance principles implementation and establishment of a compliance culture, as stated in the Compliance Charter, which was formulated and approved by the Board of Directors and the Board of Commissioners. The Compliance Charter contains the Bank’s commitment to implement ethical and compliance standards towards laws and regulations, as well as compliance risk management. The Board of Commissioners and the Board of Directors perform active oversight on compliance risk management to ensure effective compliance risk management implementation in supporting compliance culture. CIMB Niaga appointed a Compliance Director supported by the Compliance Management Unit (SKK) as an independent unit that carries out compliance functions and is directly responsible Annual Report CIMB NIAGA 2017
  335. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report to the Compliance Director . The Board of Commissioners and the Board of Directors periodically receive Bank compliance reports and provide necessary direction to achieve the Bank’s compliance culture. CIMB Niaga also submits periodic compliance status and activity reports to the regulators. Based on the assessment results, risk monitoring is conducted periodically to ensure that the specified risk control measures will be able to minimize the impact of compliance risk. The compliance risk profile is reported to the Board of Directors, the Board of Commissioners, and the regulators periodically. Policies, Procedures and Limit Setting Compliance risk management strategy is determined based on the Bank’s commitment to comply with regulation and sound banking standard practices to provide added value for all stakeholders. Managers in each unit are directly responsible for compliance implementation in their respective units, including ensuring corrective measures for non-compliance and supervision of the corrective action implementation. Internal Control Internal control for compliance risk management is supported by adequate compliance policies and procedures, active socialization and training on external regulations, conducting compliance tests on new policies, procedures, and products and activities, including monitoring the commitment to regulators. Other independent units, such as the Risk Management Unit and the Internal Audit Unit (IAU), also review compliance risk management. In order to support all units to implement compliance, Compliance Management conducted compliance programs during 2017, such as the compliance matrix, discussed further in a specific section regarding Compliance Management. H. REPUTATION RISK Reputation risk is due to the declining level of stakeholder confidence as a result from negative perception of the bank. Risk Management Process The CIMB Niaga compliance risk management process is conducted in order to minimize the impact of compliance risk. Compliance risk identification is conducted proactively, for example through regulatory changes gap analysis (external factors) up to periodic self-assessment (or as required) of the business activities and operational development towards the regulation (internal factors). Compliance risk profile measurement is conducted through Bank-wide and individual unit self-assessment using internal methodology and complies with the minimum regulatory requirements conducted independently by the Compliance Management Unit. Annual Report CIMB NIAGA 2017 Governance The Board of Commissioners and the Board of Directors actively supervise the Bank’s management of reputation risk through the monitoring on the level of risk, reputation risk mitigation process as well as reputation risk governance. As one form of Board of Directors active supervision on the management of reputation risk, CIMB Niaga has created the Marketing and Communications Committee, a committee at the level of Board of Directors, chaired by the Consumer Banking Director. This committee is responsible for providing direction to the Bank’s brand management including strategy, value proposition and positioning. In addition, the Bank’s CX Steering Committee regularly supervises issues in customer experience, mainly in the handling of customer complaints. Reputation risk is also one of the issues addressed by the Operational Risk Committee (ORC). 335
  336. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT To facilitate effective reputation risk management , the Bank established units such as Corporate Affairs, Marketing, Brand and Communications, Media Relations, and Customer Experience. Overall, the Bank continues to strive to instill the importance of reputation risk management to all employees through the dissemination socialization of the Bank’s vision and mission and internalize Bank values. Risk Management Process In managing and identifying reputational risks, the Bank is supported by organizational units, such as the Marketing, Brand, and Communications Unit that reports substantial issues, particularly issues with a significant effect on the Bank’s reputation, position, and branding. In regards to customer complaints, CIMB Niaga provides various customer complaint channels, such as face-to-face in branches, phone banking, and the Bank’s social media accounts. The measurement of reputation risk can be observed from the amount and materiality of customer complaints, complaint handling satisfaction, as well as negative reporting that may affect the reputation of the Bank. The OMPK (Automation Monitoring of Complaint Handling) System is used to record Bank-wide customer complaints, in which every complaint recorded can be directly forwarded to the appropriate unit to be addressed and resolved. In regards to monitoring and controlling reputation risk, Customer Experience Unit is responsible for supervising the total number of complaints from customers via various channels, including complaints submitted through regulators and the complaint handling success rate through use of customer surveys. Feedback submitted by customers is then followed up to improve the quality of the Bank’s services. This unit also ensures that customer complaint handling and management has been carried out properly and in accordance with provisions of regulators. Policies, Procedures and Limit Setting Policies and mechanism to improve service quality to customers and other stakeholders to control reputation risk are well embedded within each unit in the Bank. The management emphasizes that all businesses and supporting units, as the first line of defense, are responsible for maintaining the Bank’s reputation. Moreover, the Bank also has regulation and supporting procedures in place for handling customer complaints and its escalation processes. Furthermore, the Bank constantly improves reputation risk governance that includes the evaluation of risk level taken (risk appetite), and risk tolerance through monitoring of outstanding issues, the perception of stakeholders, and the publication of print media, both newspaper and articles containing complaints and customer feedback. Similarly, evaluation is conducted through Phone Banking and corporate social media accounts, such as Facebook CIMB Niaga, twitter @CIMBNiaga, and Instagram cimb_niaga. In the process of improving this service, Bank’s social media accounts are currently operating 24 hours a day. This is conducted to answer customer inquiries that have now begun to migrate to social media. 336 Annual Report CIMB NIAGA 2017
  337. Supporting Business Review Corporate Governance Report Corporate Social Responsibility In addition , the Bank through the Media Relations Unit is constantly vigilant of news reports and customer complaints submitted via the media and responds swiftly, accurately and accountable. The Corporate Affairs Unit also facilitates coordination with external parties. The Bank collaborates with business partners to conduct thorough reviews on both the legal as well as the business aspects of the complaints. Furthermore, in order to provide the best and most suitable services to customers, for complex products, the Bank conducts analysis of product conformity and suitability with client risk profiles, as well as informing them of the risk and return aspects in a transparent manner. Others Corporate Data Consolidated Financial Report Internal Control Bank has an internal control system for reputation risk management, encompassing periodic reviews of negative publicity or substantial complaints, which might impact the Bank’s reputation, and reputation risk management culture that involves all lines of business. The Bank has a system to identify and assess reputation risk, as well as control activities monitored by the Risk Management Unit. The Bank utilizes information systems and effective communication in the risk management process. Control of risk is conducted by taking immediate corrective measures, allowing reputation risk to be maintained in accordance with the Bank’s risk tolerance limits. In times of crisis, should a case or events arise and that could potentially harm the reputation of the Bank, it sets up a preventive measure by preparing the Standby Statement and Frequently Asked Questions (FAQ) to respond to media or customer inquiries related to the issue. This measure is to anticipate possible emergence of and mitigate negative perceptions that may harm to the Bank before becoming a major issue in the media. CIMB Niaga also undertakes reputation risk management through Public Relations, Corporate Social Responsibility (CSR), fast response to customer complaints, and consistent Good Corporate Governance. Annual Report CIMB NIAGA 2017 337
  339. IN YOUTH WE LEARN ABOUT LIFE , IN AGE WE UNDERSTAND Batik Grompol In the Javanese language, ‘grompol’ or ‘grombol’ means ‘get together’ or ‘unite’. For youths, wearing batik Grompol may symbolize one of the important life attribute, namely ‘togetherness’.
  340. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Supporting Business Review Table of Contents 342 Human Resources 342 HR Focus and Strategic Plan in 2017 350 Career Development and Talent Management 340 Annual Report CIMB NIAGA 2017
  341. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report 360 Operations and Information Technology 360Operations 362 Information Technology Annual Report CIMB NIAGA 2017 341
  342. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Supporting Business Review HUMAN RESOURCES Human Resources (HR) is one of the main pillars of the Bank’s focus to support the realisation of CIMB Niaga’s strategy. 200% E-Learning number of participants increased 200% CIMB Niaga’s Human Resource strategy and management are constantly and continuously aligned with market changes, particularly in the banking industry, to ensure that the Bank adapts and adjusts rapidly, dynamically with high agility while keeping professionalism and integrity intact. HR FOCUS AND STRATEGIC PLAN IN 2017 In order to realize CIMB Niaga’s strategy and respond to challenges in the industry, the development strategy of CIMB 342 Niaga’s Human Resources in 2017 was focused on 4 main priorities: 1. HR Automation 2. Grow Our Own Talent 3.Sustainable Process Improvement across all HR Pillars and Organizational Effectiveness 4. Implementation of Corporate Core Values and and Nurturing Risk & Compliance Culture HR Automation The rapid development of technology has become the catalyst for the development of systems in Human Resources in Annual Report CIMB NIAGA 2017
  343. Supporting Business Review Corporate Governance Report Corporate Social Responsibility CIMB Niaga . Automation for HR operational services has led to a more efficient, effective and better turnaround time which improve service quality. The initiatives carried out throughout 2017 include: 1.Enhancement of Employee Learning System (Learning Content Management System) CIMB Niaga has enhanced an e-learning system for employees that can be accessed through computers via intranet networks to reach a wider range of learners. The employee learning system is equipped with online features for registration activities, approval, evaluation and training certificates and thus improve the efficiency and effectiveness of employee learning activities. Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report 2. Development of Recruitment System (E-Recruitment) E-recruitment is a system to monitor status and calculate the time required (turn-around time) at each stage of the recruitment process. Through the availability of the e-recruitment system, the recruitment process is expected to become more practical, transparent and accountable. 3. Development of Self-Service System The HR self-service system was developed to expedite employment needs such as benefit claims, employee resignation and other matters. With the development of the self-service system, it became easier for employees to request and access information related to employment. 343
  344. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management HUMAN RESOURCES Grow Our Own Talent CIMB Niaga understands that the Bank ’s ability to recognize and manage talents strategically can deliver a sustainable competitive advantage. Attracting high quality talent in the market is becoming more difficult due to market competition and as such the need to build talent internally is critical. To ensure the availability of leadership talent regeneration, CIMB Niaga has implemented future leader development programs through The Complete Banker (TCB) program and specific Development Program (DP). During 2017, 503 fresh graduates joined CIMB Niaga through these development programs. In addition, CIMB Niaga has also identified key positions and implemented succession planning framework in a structured and integrated manner through the HR Committee. By 2017, 155 key positions have been identified as well as their successors. Furthermore, CIMB Niaga also develops career path models for each organizational unit that can be used as guidance for employees in planning their careers more effectively. Through the career path models, employees can recognize the competencies required to achieve a certain position and how to achieve it. Sustainable Process Improvement across all HR Pillars and Organizational Effectiveness The Human Resources Directorate of CIMB Niaga believes that continuous process development and improvement is the key to making the Bank relevant amidst continuous market changes. The process improvement initiatives in 2017 were focused on risk management practices and increased control over operational processes. 344 Several initiatives undertaken were, established talent database management, established outsource database management, updating HR risk indicators, raising risk awareness through self-identify operational risks in HR processes and activities, as well as updating HR policies and procedures to align with current regulations and make them consolidated and easier to comprehend. In addition, CIMB Niaga evaluates organization effectiveness in a sustainable manner to ensure the organization architecture supports the realization of the Bank’s strategy as well as to keep it relevant in responding to the market changes. Therefore, in 2017 CIMB Niaga conducted a structured and comprehensive review of several business unit organizations with the scope of organization layers, span of control, job evaluations, duplication function analysis, productivity levels, portfolio analysis and updating of job descriptions. Implementation of Corporate Core Values and Nurturing Risk & Compliance Culture In adapting to social behavioural changes both internally and externally, CIMB Niaga emphasizes the importance of internalizing its corporate core values as the foundation of workplace behaviour. The 5 Core Values of the Bank as reflected in CHESI (Customer Centric, High Performance, Enabling People, Strength in Diversity and Integrity) are manifested through the 3 (three) critical behaviours that must be performed consistently by every employee. The 3 (three) critical behaviors are; Go the extra-mile to delight customers; Respect each other, engage openly and work together; Recognise each other’s efforts and always back each other up, proclaimed in the program A Better CIMB (ABC). Annual Report CIMB NIAGA 2017
  345. Supporting Business Review Corporate Governance Report Corporate Social Responsibility CIMB Niaga believes that the 3 (three) critical behaviours will support the Bank’s acceleration in facing social behavioural changes, providing excellent service to customers and increasing synergy among individuals, units or functions. In 2017, the process of internalizing corporate core values is done through a number of activities, including: 1.Board of Directors Symbolic Act initiatives to discuss and listen to employees’ aspirations directly, building better communication and collaboration. During 2017, 72 sessions were conducted. 2. Established and expanded Informal Leaders and Business Sponsors in various units to actively serve as role models in implementing 3 Critical Behaviours on a daily basis. During 2017, 627 Informal Leaders and 70 Business Sponsors have been identified. 3.Cultural Campaigns, thematic activities related to corporate culture implementation, such as Culture Day, passing on ABC Torch of Recognition from Directors to top employees to express management appreciation, presenting thank-you cards to employees with positive contributions, environment awareness movement such as Care with our Home program, as well as other activities to nurture greater internalization of corporate core values. CIMB Niaga continuously strives to improve risk and compliance culture through various initiatives, such as, launched the new Code of Ethics & Conduct, whistleblowing campaigns, zero tolerance to fraud campaigns, and internal and external risk management certification for all employees through in-class sessions and digital learning. Others Corporate Data Consolidated Financial Report SATRIA AJI MUFATRA The Complete Bankers IX MSME Business & Product Development CIMB Niaga never stops bringing positive changes in my life. Graduating from CIMB Niaga Overseas Scholarship Program, I joined The Complete Banker (TCB) program which is the right choice for those who keen to pursue their career in banking industry as it challenges young talents to strive for the best while instilling unique values. This program also provides opportunities to express my passion which empowers me to contribute to other external social events and activities. Recruitment System CIMB Niaga emphasizes the principle of transparency, fairness and equality in every recruitment process. In attracting the best talents, CIMB Niaga requires human resources with high quality, integrity and competence, and meet the Bank’s needs. To that end, CIMB Niaga has implemented constructive and strategic recruitment strategy and system to ensure only the best talents join the Bank. One of the best Annual Report CIMB NIAGA 2017 345
  346. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management SUMBER DAYA MANUSIA ways to do this is through background checking of the prospective employees , including educational history, employment history, financial condition history (SID & AML), social media and health conditions. To attract the best talents, the Bank recruits talented individuals both internally and externally. AISHA STEPHANIE MUNAF The Complete Banker VI Corporate Strategic Initiatives Specialist I have always wanted to work in a dynamic entity which allows me to learn broad ranges of skill and joining The Complete Banker (TCB) program has been the right choice as it enables me to learn end-to-end Banking skills. This program also enables me to take part in the Bank critical initiatives and build network across functional units, ASEAN region and top Management. For me, TCB program succeeds in nurturing young talents to become solid and well-rounded professional Bankers and future leaders. 346 A. Internal (from within the Bank) Fulfilling talent internally is done through employee movement as governed by the 2+3+3 policy, which provides opportunities for employees to work in other units to expand their experience and career development aligned with required conditions and qualifications. B. External (from outside the Bank) Meanwhile, fulfilling talent externally is done through various methods, including: 1.Using various channels, such as campus recruitment, job portals, social media, job fair and others 2.Developing external talent mapping and strengthening market intelligence for key positions 3.Providing external scholarship programs to underprivileged students who excel, followed by providing career development opportunities at CIMB Niaga after they graduate 4. Providing an entry level development program for fresh graduates to prepare future leaders of the Bank or to pursue a particular specialization. Several development programs that have been conducted include: The Complete Banker (TCB), Relationship Manager Development Program, Small Medium Enterprise Development Program, Transaction Banking and Commercial Banking Development Program and Teller Development Program Annual Report CIMB NIAGA 2017
  347. Supporting Business Review Corporate Governance Report Corporate Social Responsibility 5 .Collaborating with a number of Indonesia’s leading universities such as UI and SBM ITB in order to provide the opportunity for best students to participate in the selection process of entry level positions at CIMB Niaga CIMB Niaga also opens employment 6. opportunities to people with disabilities, who qualify for certain positions in an effort to contribute back to the community. Currently, CIMB Niaga has hired 58 individuals with special needs for telesales and phone banking officer positions, an increase of 7 individuals from 2016 and the Bank is committed to continuously increase the involvement of people with disabilities 7.Developing various communication tools to strengthen the Bank’s image and employee value proposition in attracting talent in the marketplace 8. Referral or recommendation from employees Competency Development CIMB Niaga ensures that every employee has equal opportunity to excel and develop their potential, skill and opportunities. Therefore, the development of human resource competency in CIMB Niaga is conducted using an integrated approach designed to cater employee’s needs, as well as organizations and business objective. Moreover, human resources development programs in CIMB Niaga are as follows: 1.Integrated education and training program designed to develop personal, managerial and leadership competencies as well as specific functional and technical competencies required to support business objectives, such as selling skills, customer service excellence, digital banking, transaction banking, sharia, credit, risk management and compliance 2.Integrated leadership development programs through assessment, performance monitoring, certification and sustainable development in order to support employee’s career development starting from entry level to middle management and senior leadership levels Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report 3. Integrated development program for young talents to grow future leadership competencies through The Complete Banker program and Development Program. In 2017, CIMB Niaga recruited 503 young talents to be developed. 4. Leadership discussion program involving senior CIMB Niaga leaders to share their experience through Leadership Café Program or Learn from The Master on a regular basis 5. Pioneering the development of digital ecosystems and capabilities to respond to changing customer and market demands through the Digital Leadership Series program and establishing a special unit to support digital initiatives and innovations. 6.Continuously synchronize the ABC and risk & compliance culture in each employee’s competency development program, so that employees are ready to face rapid changes in the global market while still uphold the corporate core values Furthermore, development of employee’s competencies are conducted not only through internal and external training programs but also conducted through overseas learning and assignment programs. CIMB Niaga also conducts employee exchange programs to provide opportunities for employees to gain experience through assignments in various countries where there is a CIMB Group representation, called the Global Employee Mobility (GEM) program. Education and Training CIMB Niaga competency development is done through comprehensive education and training by means of in-house or external programs. Education and training programs are designed under several considerations such as effectiveness, efficiency, impact and learning objectives. Throughout 2017, 12,779 employees (including development program participants) have participated in training and education programs with an average of 46 hours of training per employee. 347
  348. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management HUMAN RESOURCES Several education and training methods that were implemented include Academy , Coaching and Mentoring, as well as Online Learning (E-Learning). and training certification. By doing so, e-Learning method is increasingly in demand due to wider coverage and greater interaction. 1.Academy The employee’s capability and competence development program is done through an academy approach which integrates series of activities that begins with recruiting, training, performance monitoring, as well as recognizing best achievements. By the end of 2017, CIMB Niaga had launched numerous academies covering almost all of the Bank’s business, such as Service Academy, Sales Academy, Micro Small & Medium Enterprise Academy, Syariah Academy, Leadership & Culture Academy, Business Banking Academy, Treasury Academy, Enablers Academy, Risk Management Academy and Credit Academy. To support and develop the right competencies through the academy approach, CIMB Niaga has engaged 556 internal trainers throughout 2017. Throughout 2017, 12,307 employees (including development program participants) have participated in e-Learning programs, where employees can be enrolled into several training programs. The number of e-Learning participants increased by 200% from 25,533 participants in 2016 to 76,486 participants in 2017. Information on the number of participants are as follows: Online Learning Program (by number of participants/learning program) Bancassurance (ISB) 3. Online Learning (E-Learning) As an attempt to provide wider access to learning opportunities, the Bank provides training and education program via online, or e-Learning, using the Learning Content Management System (LCMS) system. In 2017, the Bank initiated an enhancement of the LCMS system’s capabilities by improving the concurrent user capacity and adding online features for training approval, training evaluation, 2016 485 1,805 Country Induction Program 4,106 81 E-Certification Syariah 1,642 573 Online Refreshment Test Frontliner (ORTF)-Batch 1 3,091 3,213 Online Refreshment Test Frontliner (ORTF)-Batch 2 2,983 3,056 Sales Performance Target (SPT) 2. Coaching and Mentoring CIMB Niaga actively promotes coaching and mentoring culture through sharing sessions. This session is done by employees and leaders, with the objective of providing guidance, and learning opportunity for employees. This method has a major impact on employee’s personal development, fostering self-confidence, optimism and working spirit. During 2017, 684 leaders and employees were actively involved in coaching and mentoring sessions. 2017 Service for Us Structured Product 766 785 1,556 229 549 1,298 Anti Money Laundering (AML) Mandatory 12,196 - Basic Syariah Banking - Mandatory 12,207 - 78 - Business Continuity Management (BCM) - Mandatory 12,081 - Customer Experience (Intro to CX) Mandatory 12,063 - Branch/CBO/LODS Operations Program IT Security Awareness* Kode Etik dan Perilaku Kepegawaian (KEPK) - Mandatory 500 - 12,183 - Compliance (CAP) - 741 Credit Policy Certification (CPC) - 712 Intro to Collection - 213 Loan Underwriting - 66 Operation Risk Management (ORM) Mandatory - 12,368 Policy (CP & PBG) - 265 Transaction Banking Total - 128 76.486 25.533 * this e-learning program continuous in 2018 348 Annual Report CIMB NIAGA 2017
  349. Supporting Business Review Corporate Governance Report Corporate Social Responsibility In addition , in 2017 CIMB Niaga has also initiated the development of a digital learning content using mobile application-based platform called Learning on the Go (LoG). Compared to e-Learning, this platform presents learning materials in various forms of gamification or animation with an interactive and engaging audio visual, that can be accessed online through mobile devices or laptop/PC. Through this digital learning platform, employees are expected to have a fun and meaningful learning experience, as well as increasing training and education programs accessibilities which enable employees to learn anytime, anywhere. Competency and education training program details conducted by CIMB Niaga in 2017 are as follows: Training Type (by number of participants/training type) 2017 2016 Managerial Leadership & Personal Development 2,147 4,900 Credit Management 1,834 4,691 Risk Management Certification Program 1,666 14,247 Sales 4,996 10,696 21,625 8,260 Service Operations & IT 17,921 6,697 Other 51,214 38,466 Total 101,403 87,957 2017 2016 Training Man-days (in days) Managerial Leadership & Personal Development 33,197 32,273 Credit Management 2,758 6,671 Risk Management Certification Program 2,595 5,198 Sales 6,432 11,238 Service 15,389 10,093 Operations & IT 10,677 10,520 Other 20,992 28,032 Total 92,040 104,025 Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report FIRMANSYAH SHIDIQ WARDHANA The Complete Banker XII Syariah (Islamic) Banking Directorate Being part of The Complete Banker (TCB) Program is a career journey that I am grateful for as it has succeeded to unleash my potentials through various opportunities to learn and work together with the banking’ experts, involve in essential business activities, liaise with external clients ranging from private to government sectors, and also work closely with CIMB’s counterparts across ASEAN Region. This program also grants me various experience, for example involve in CIMB ASEAN Stock Challenge 2.0, Digital Leadership Series FinTech and many other events. In a nutshell, TCB is one of the most recommended top-notch Management Trainee programs in creating well-rounded young bankers across region 349
  350. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management HUMAN RESOURCES Training Type (by number of participants/ training type) Training Objectives Senior Management Middle Management Junior & Non Management 2017 2017 2017 2016 2016 2016 Managerial Leadership & Personal Development Develop leadership skill, managerial skill and selfemployment potential 99 151 417 751 1,631 3,998 Credit Management Increase credit competency in credit value chain and build integrated credit process 71 158 308 1,005 1,455 3,528 Risk Management Certification Program Develop employee skill in managing risks and improving compliance in all job roles 71 198 452 1,779 1,143 12,270 Sales Increase employee competency and skill in sales aspect 75 167 722 1,216 4,199 9,313 Service Develop competency and skill in providing excellent services and experience to customers 153 2 1,465 117 20,007 8,141 Operations & IT Improve employee competency and skill in conducting business operational activities and developing the Bank’s information technology capabilities 167 71 1,847 852 15,907 5,774 Other Develop competency and technical skill of employees in accordance with the business needs to achieve the Bank’s targets 619 587 5,341 4,140 45,254 33,739 Total   1,255 1,334 10,552 9,860 89,596 76,763 HR Competency Development Budget Allocation In 2017, CIMB Niaga allocated IDR 168.81 billion, 4.6% of employee’s personnel costs, for the development of CIMB Niaga human resources competency. Below are details of budget allocation during 2017 and 2016: Development Fee (in IDR billion) Trainining Implementation External Seminar & Course (Domestic) External Seminars & Courses (Overseas) 2017 2016 94,744 93,192 4,697 6,553 303 373 Training Center 16,322 19,865 Training Operational 51,825 49,100 Corporate Culture Total 927 329 168,818 169,412 Based on the table above, the competency development budget allocation has decreased compared to 2016. Although the cost decreased, the learning participant coverage has increased by 15.3% as CIMB Niaga has optimized the e-Learning platform, facilities and infrastructure of the Bank. CAREER DEVELOPMENT AND TALENT MANAGEMENT Talent Management Implementation An excellent talent management implementation is one of the key strategies in achieving competitive advantage, realizing strategic goals and anticipating future business needs. CIMB Niaga adopted a comprehensive approach in implementing talent management, starting with identification, assessment, development, and monitoring, as well as retaining talented employees. The implementation of talent management is also integrated with the Bank’s Business Plan, as talented employees are important assets for CIMB Niaga. The talent management program provides opportunities for talented employees to sustainably develop and improve both their professional and personal quality with CIMB Niaga. In 2017, CIMB Niaga has identified key positions and implemented succession planning framework in a structured and integrated manner through the HR Committee. The Human Resources Committee’s 350 Annual Report CIMB NIAGA 2017
  351. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report function is to ensure that the best talents are developed in accordance with both the individual ’s and the Bank’s needs. This is done through mapping the employee’s strengths and development areas which is then used to define employee performance improvement strategies and employee career development. Throughout 2017, 155 key positions at different levels of management have been identified. Development of Future Leaders As one of the main focuses of Human Resources in 2017 is to grow our own talent, CIMB Niaga has consistently conducted various future leader programs to ensure the availability and readiness of future leaders in the Bank. Through the future leader development programs, CIMB Niaga ensures the transfer of leadership within the Bank can be well implemented. The Complete Banker The Complete Banker (TCB) is one of CIMB Niaga’s excellent management trainee programs aimed to build leadership bench-strength, create professional bankers with competence, integrity and character that is aligned with the Bank’s values. The program runs for 24 months and is designed to equip the participants with general banking knowledge and skills, as well as opportunities for assignment in various business functions/units and involvement in strategic projects to enhance and develop their strategic thinking, innovation, problem-solving, teamwork and leadership. The TCB program is also designed to be integrated with career development plans, talent management, succession plans and retention programs. JESSICA SUHANDA The Complete Banker XIII ALM Risk Group | Risk Management Joining The Complete Banker (TCB) program empowers me to step out of my comfort zone, learn about the whole banking system and gain broad based experience through On the Job Training and Projects. This program also challenges me to be adaptable and confident through exposure and collaboration with diverse teams. In my opinion, the Management support towards our learning and development truly contributes to this program success. With a wide range of abilities and skills acquired, TCB graduates are expected to become Universal Bankers and have a promising career ladder and ready to take senior management positions within the next 7-10 years. Annual Report CIMB NIAGA 2017 351
  352. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management HUMAN RESOURCES Since the program first launched in 2010 , CIMB Niaga has recruited 286 top university graduates from Indonesia and overseas. Participants who have passed the program are then placed in selected positions in both business and support units. Up to 2017, TCB graduates have occupied the following positions: TCB 2010-2017 Assistant Vice President 2017 2016 6 - Senior Manager 48 17 Manager 92 76 5 43 Asisstant Manager Still in Education Total 60 68 211 204 In addition, the Bank also focuses on building specialist competencies for front liners through the Teller Development Program (Teller DP). Human Resource Profile As of December 31, 2017, the number of CIMB Niaga employees reached 12,782, while in 2016 was 13,185. The number of CIMB Niaga employees is in line with Bank’s operational needs in both quantity and quality. The HR profile in 2017 and its comparison with 2016 is reflected in the following tables: 1. Total Employees by Directorate and Sub Directorate Directorate/Sub Directorate * excluding those who resigned and/or failed 2017 Anti Fraud Management Business Banking Periodically, CIMB Niaga also conducts regular meetings attended by senior leaders of HR and related units to discuss the development of TCB in both career and personal aspects. The purpose of the meeting is to ensure the development strategy runs appropriately in preparing young talents to pursue a career path to the top management position of the Bank. Development Program The other CIMB Niaga’s management trainee program is the Development Program which aims to fulfill specific competency requirements in certain fields or units. In 2017, CIMB Niaga recruited 479 young talents to support business growth and sales capabilities in branches through the Relationship Manager Development Program (RMDP) which focuses on increasing current and savings account (CASA) and Mortgages portfolio; Small Medium Enterprise Development Program (SMEDP) which focuses on increasing loan portfolio for the SME segment; Transaction Banking and Commercial Banking Development Program which focuses on improving commercial loans and transaction banking products portfolio. 352 Business Banking Office & RCU 2016 16 15 1,294 1,631 12 - Commercial Banking 235 251 Corporate Banking 135 138 Corporate Client Solutions Micro, Small & Medium Enterprise Compliance, Corporate Affairs & Legal Consumer Banking Corporate Strategic Initiatives Credit 11 12 901 1,230 79 64 7,840 7,689 8 8 354 417 Human Resources 208 247 Internal Audit 118 130 1,789 1,878 Operations & IT Risk Management 128 128 Strategy & Finance 413 411 98 88 351 392 Syariah Banking Transaction Banking Treasury & Capital Market Total 86 87 12,782 13,185 Annual Report CIMB NIAGA 2017
  353. Supporting Business Review Corporate Governance Report Corporate Social Responsibility 2 . Total Employees by Level of Organization Level of Organization Senior Management 2017 184 Others Corporate Data Consolidated Financial Report 6. Total Employees by Age 2016 177 Age (Year) 2017 < 25 2016 934 991 Middle Management 1,378 1,385 > 25 - 30 2,985 3,032 Junior Management 7,201 7,276 > 30 - 35 2,771 3,088 Non Management Grand Total 4,019 4,347 12,782 13,185 > 35 - 40 2,401 2,327 > 40 3,691 3,747 12,782 13,185 2017 2016 Grand Total 3. Total Employees by Level of Education Level of Education Up to High School 2017 2016 1,030 1,086 D1 (Diploma 1) 46 47 7. Total Employees by Gender Gender Male 6,024 Female 6.349 6,758 6.836 12.782 13.185 2017 2016 D2 (Diploma 2) 19 21 D3 (Diploma 3) 2,033 2,211 D4 (Diploma 4) 6 8 9,156 9,334 490 476 2 2 Employee Joining 1.995 1.962 13,185 Employee Leaving 2.398 2.354 S1 (Undergraduate) S2 (Graduate) S3 (Post Graduate) Grand Total 12,782 4. Total Employees by Employment Status Status Permanent Employee Contract Employee Grand Total 2017 2016 11,475 11,862 1,307 1,323 12,782 13,185 5. Total Employees by Years of Service Years of Service 2017 2016 ≤1 1,396 1,413 >1-5 4,680 4,949 > 5 - 10 2,465 2,442 > 10 - 15 1,538 1,511 > 15 2,703 2,870 12,782 13,185 Grand Total Grand Total 8. Total Employee Turnover Turnover Equality and Job Opportunities CIMB Niaga is committed to provide employment opportunities for the best candidates to join and build their career based on principles of equality without discriminating against gender, ethnicity, race and religion in accordance with internal and external regulations. Each employee is given an opportunity to contribute in improving the Bank’s performance without discrimination. The manifestation of the principle of equality is implemented throughout recruitment, selection and job placement process including matters related to wages, welfare, social security, work environment, training, and others. One of CIMB Niaga’s concrete actions is providing opportunities for the best candidates with disabilities to work and grow with the Bank. In the case of equality, CIMB Niaga in cooperation with third parties provide employment opportunities for the special needs community as reflected in the information below: Type of Disability Amount Job Title Location Blind 48 Telesales Funding Officer CIMB Niaga Gajah Mada Hearing-impaired 10 PBO Social Media CIMB Niaga Gajah Mada Annual Report CIMB NIAGA 2017 353
  354. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management HUMAN RESOURCES Another example of equality principle in providing health insurance facilities to employee is the implementation of health facilities of female employees that can now be used to cover family members starting in 2017 . In addition, gender composition of CIMB Niaga employees is proof that the Bank upholds principles of equality and job opportunity. Gender Male Female Grand Total 2017 6,024 2016 6,349 6,758 6,836 12,782 13,185 HR Information System CIMB Niaga implements an integrated Information System to support HR administration, management, planning and analysis. The focuses of HR application system development in 2017 are automation & digitalization of internal processes, efficiency & control improvement, as well as information quality improvement. Several initiatives that have been and will continue to be developed includes the development of online systems for several key processes, such as automation of resignation process, outsource management database, employee letter self service request, talent management database, recruitment tracking system and mobile application related to personnel administration. Risk & Compliance Culture CIMB Niaga implemented a number of measures and initiatives to build risk and compliance culture, including: 1.Continuous intensive communication through various media emphasizing the importance of risk and compliance culture 2. Launched the new Code of Ethics and Conduct, followed by annual attestation for each employee 3.Implemented Demerit Framework in Annual Performance Review which focuses on Audit and Compliance areas 4.Developed risk-based remuneration policy in accordance with OJK regulations 5.Built Anti Fraud Culture & Awareness to all employees through training program, campaign, e-mail blast, internal bulletin, workshop and sharing session 6.Imposed strict sanctions for cases related to integrity in the form of termination, reporting the case to relevant stakeholders 7. Encouraged implementation of applicable policies and procedures in a disciplined and consistent manner 8.Collaborated with independent third parties in implementing the Whistleblowing Policy for better independence and transparency 9. Implemented Know Your Employee policy through: a. Improving consistent supervisory function of direct supervisors to subordinates b.Implementing prudential principles in the process of selection and recruitment by conducting background checking of each prospective employee through validation of educational history, employment history, financial condition history (SID & AML), which is performed internally and/or through third party services c. Early detection of suspicious transactions in employee accounts d. Annually conducting employee data updates Employee Turnover Rate Employee turnover rate in 2017 increased 1.2% compared to 2016, in line with increased productivity and high competitiveness in the banking industry. The 2017 employee turnover rate, as well as the comparison with 2016 can be seen in the following table: Turnover Rate Voluntary Attrition Turnover Rate 354 2017 2016 1,305 1,184 10.1% 8.9% Annual Report CIMB NIAGA 2017
  355. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Human Resource Welfare Performance Evaluation Employee performance evaluation is one of the factors in determining the remuneration and promotion . CIMB Niaga employee performance evaluation is based on Key Performance Indicator (KPI), which covers both achievements and competencies that aligned with the Bank’s vision, mission and values. To ensure that performance appraisals are done fairly and objectively, the details activities are listed below : 1. Starting from self-assessment by the employee 2. Preliminary assessment by supervisors 3. Performance validation with related unit 4.Face-to-face performance discussion process between supervisor and employees (1-on-1 discussion) CIMB Niaga also implements Demerit Framework for Audit and Compliance areas as part of improving the risk and compliance culture. If the employee is unable to fulfill the predefined Demerit Framework indicator then their performance will be affected. The implementation of Demerit Framework aims to prioritize risk and compliance within employee’s respective units so that the Bank can avoid risks and sanctions from regulators. Remuneration Remuneration is an important consideration in attracting, motivating, and retaining the best employees. To support the Bank’s strategy and to encourage sustainable high performance culture, CIMB Niaga implements remuneration based on performance (meritocracy) and risk (Risk Based Remuneration) with reference to employee performance and OJK regulation. In addition, CIMB Niaga has communicated the Wage Structure & Wage Scale (SUSU) in accordance with the prevailing regulations. The realization of the remuneration strategy in 2017 includes reviewing the Risk-Based Remuneration policy, implementing the employee benefit system and Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report enhancing the quality of the employee benefit program as well as its policies and procedures. In addition, the review of the implementation of incentive schemes is carried out on a regular basis with regards to the risk principles and Bank’s financial ability in order to encourage synergy between corporate strategy and business strategy. Assessment of remuneration system and employee welfare shall be conducted periodically and continuously, by taking into account the following matters: 1. The Bank’s financial performance Competence and employee performance 2. (meritocracy) 3. Market remuneration practices (market competitiveness) 4. Principle of eligibility and propriety according to position/level 5. Internal equity 6. Level of risk on related position CIMB Niaga is committed to implementing competitive, fair and risk-based remuneration system as well as ensuring that no employee receives compensation under the minimum terms set by the government. Retention and Promotion CIMB Niaga implements employee retention strategies that focus on self-development both in technical and leadership competencies, enlargement of responsibilities, cross-unit assignments and involvement in key projects and other placements that are effectively structured based on the position, performance and employee competence. In addition, another approach that the Bank carries out to appreciate outstanding employees is career promotion. In determining career promotion, there are several considerations: 1.Employee ability to carry greater tasks and responsibilities. 355
  356. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management HUMAN RESOURCES 2 . Consistency of employee performance in recent years. 3. Open position for the employee to be promoted into (vacancy driven), either because of vacant position or due to job enlargement. In order to support the promotion and employee career path, the Bank prepares an integrated development program in accordance with the talent management framework. Retirement Preparation Program CIMB Niaga also pays attention to the welfare of employees approaching retirement period. To help employee prepare for retirement period, the Bank provides Pre Retirement Training program for employees and their spouses, which aims to provide information on the rights, obligations and procedures to process retirement benefits as well as postretirement entrepreneurship insights. Throughout 2017, the Bank has organized 3 classes of Pre Retirement Training programs attended by 96 participants. Industrial Relations Commitment to Increased Productivity CIMB Niaga commits to build and maintain harmonious industrial relationship between Bank and its employees to ensure that all rights and obligations of all related parties are in accordance with prevailing laws and regulations. CIMB Niaga engages the Labor Union as Bank’s partner in building and maintaining harmonious industrial relations to which it is done through regular ongoing communication. In May 2017, CIMB Niaga and the Labor Union have agreed on the Collective Labor Agreement for period 2017-2019. Activities in Industrial Networking 2017 CIMB Niaga together with the Labor Union regularly conducts formal and informal meetings in an effort 356 to build and maintain sustainable communication. Throughout 2017, CIMB Niaga and the Labor Union conducted 9 (nine) formal meetings. This series of meetings is expected to create harmonious industrial relations for a healthy and constructive work environment. To date, there are 4 Labor Unions (SP) in CIMB Niaga as follows: 1.Serikat Pekerja Bank CIMB Niaga Indonesia (SPBCNI) 2. Serikat Pekerja Ikatan Karyawan CIMB Niaga (IKCN) 3.Serikat Kerja Karyawan Bank CIMB Niaga (SKKBCN), and 4. Serikat Pekerja Ikatan Komunitas Niaga (IKN). Each of the four Labour Union has members spread throughout both the Head Office and the CIMB Niaga branch offices across Indonesia. Internal Communication CIMB Niaga recognizes that internal communication plays a very important and strategic role in supporting the success of the Bank’s programs, activities and management policies. Internal communications also have an important function in communicating and socializing the risk and compliance culture awareness, the CIMB Niaga’s core values through A Better CIMB (ABC) program, as well as the renewal of internal and external regulations. Internal communication in CIMB Niaga is conducted based on transparent, accountable, actual, accurate, simple, and easy to understand principles; thus it is expected that valid information can reach all employees effectively and efficiently. CIMB Niaga organizes internal communication consistently which is supported by technology utilization through innovative information delivery via email blast in e-newsletter format, CIMBNET, SMS blast, computer wallpaper, Standing Digital Media and Digital Media Service TV Channel. Annual Report CIMB NIAGA 2017
  357. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Realization of Internal Communication Programs Realization of internal communications program throughout 2017 includes : 1. HR Info Media provided by the CIMB Niaga Human Resource Directorate to convey employee-related information, such as, regulations, achievements, activities, holiday announcements, mass leave, and many more. 2. CEO Message An information delivery medium from the CEO to convey need-to-know information including the Bank’s programs and strategies, greetings to employees on religious holidays, and many more. Other Internal Communication Programs In 2017, CIMB Niaga conducted other internal communications as follows: Channel Objectives CEO Hotline: Aspiration via SMS to CEO Hotline on Human Resources, Business and others. A communication medium between employees and Bank Leaders for the Bank's progress, compliance and improvement of service quality and human resources. CIMBNET: News updates on Bank internal and CIMB Group about management policy, Blog of President Commissioner, as well as latest product information that can be read in detail through CIMB Niaga Net portal. Delivering actual and factual information to employees using an intranet network. GALLERY: Delivering news of Bank activities, corporate social events, external award recognitions, news from branches, business unit (product, promo) or Information Technology, and many more. Deliver actual and factual information to employees using e-Newsletter. Portrait: is the name of the printed CIMB Niaga Quarterly Magazine with circulation of 3,500 copies distributed to employees, Board of Directors, Board of Commissioners, Senior Officials, as well as CIMB Group with the motto of communication media and internal education. Improved quality of CIMB Niaga News in terms of information, grammar and layout design that can be easily understood and interesting to read by employees. Deliver information about all activities, policies and aspirations to be understood throughout the ranks of CIMB Niaga through periodical magazines. Senior Management Walkabout: Road show by management to various areas or regions throughout Indonesia where the Bank is located, by capturing important moments such as Safari Ramadhan, Halal Bi Halal and Christmas Echoes, as well as other important events. Deliver the Bank's current information and achievable performance, as well as listen to the aspirations of employees directly. Management of Informal Employee Activities CIMB Niaga provides an informal employee organization outside office hours called CIMB Niaga Club (CNC). Through CNC, employees can channel their hobbies and creativity in sports, arts, social, and spiritual fields. The various activities aim to create a work-life balance in order to increase employee spirit and productivity in supporting the Bank to achieve its best performance. Annual Report CIMB NIAGA 2017 The motto of CIMB Niaga Club is the spirit of togetherness, kinship, sportsmanship and competition to always be the best. This is manifested in various activities such as: 1.Spiritual activities such as retreat (Easter celebration), which is conducted in each area. 2.Ramadhan Spritual Quotient Training (RSQT) during Ramadhan months, which is held simultaneously throughout Indonesia. 3. Routine Blood Donation activities that are centered in the locations of CIMB Niaga Main Offices and throughout Indonesia. 357
  358. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management HUMAN RESOURCES This activity organized by CNC not only provides a medium for employees to channel their hobbies and talents , but also raise the Bank reputation through various achievements at regional and national levels. Some of the accomplishments achieved by CNC in 2017 include: 1.CIMB Niaga’s Basketball Team became the Semifinalist at the first OJK Cup National Basketball Championship held by Otoritas Jasa Keuangan. 2. CIMB Niaga Futsal Team won first place in Hasamitra Cup 2017 Tournament in South Sulawesi. 3.Won first place at the Banker Performance Competition for Dance Group category and second runner up for the Vocal Group category held by Indonesia Banking Expo 2017 HR Focus and Strategic Plan in 2018 Facing the technological era as well as the fourth industrial revolution, Human Resource (HR) has become the key of the Bank’s success in facing this challenge. This condition creates increasing demand for talented employees in the banking industry, financial services and other business sectors. To address these challenges, there are four main initiatives which became the Bank’s strategy in 2018 with the theme Realizing the Potential which covers the following: Employer Branding In an effort to attract talented employees in the market, the Bank focuses on enhancing the Bank image through strategic programs, including collaborating with leading universities and organizing open competitions such as the ASEAN Stock Challenge, financial literacy education program, and Corporate Social Responsibility program. The Bank will also continue to actively participate in providing educational access through scholarship programs for talented employees and outstanding students, such as CIMB Niaga Scholarship, CIMB Niaga Postgraduate Scholarship for internal employees, Khazanah Asia Scholarship Program and CIMB ASEAN Scholarship. 358 In addition, the Bank will also continue to develop and implement the Workplace Wellness program whereby the Bank provides work time flexibility for employees with special needs. Digitalizing HR In order to support the digital banking strategy, the Bank will continue developing automation and system digitalization as well as improving business processes to boost effectiveness, efficiency and quality of personnel service. Several key initiatives that will be implemented includes launching Learning On the Go (LoG) program, HR Helpdesk digitalization into HR Bot, Digital Recruitment System implementation, as well as adding self-service functionality and capabilities in Human Resource Information System. Talent Based Rewards & Development Review In order to grow talents internally, talent management will focus on measuring and developing employees to ensure their readiness for future positions. In addition, as more millennials join the Bank and to accommodate the unique needs of each individual employee, the Bank will conduct assessments of employee benefits with a focus on lifestyle. On the other hand, the Bank will also start a talent mobility program to prepare the Bank’s Human Resources (HR) in the face of the technological era and the upcoming fourth industrial revolution. Culture Building to Ignite the Pride In 2018, the Bank will continue to focus on building risk and compliance culture, as well as internalizing corporate core values through A Better CIMB (ABC) program by preparing more intensive, measurable and structured programs. Several programs and initiatives that will be conducted are thematic cultural campaigns such as Care with our Home, ABC Healthy Lifestyle and Bring ZAC (Zealous About Compliance) to Life. In addition, the Bank will also focus on creating a learning culture as a form of employee and corporate commitment to personal development. Annual Report CIMB NIAGA 2017
  359. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Human Resource Development Strategy 2017 - 2020 CIMB Niaga believes that optimum business growth can be achieved by alignment and sustainable long-term development of the Bank ’s business activities, including the HR unit. Therefore, CIMB Niaga Human Resources has prepared a long term strategy of Human Resource management for 2017 – 2020 with the following achievement stages: Vision 2020 2019 2018 2017 Consolidation & Process Improvement • Grow our talent • Building the right HR Platform • Culture Building Fan the Flame Annual Report CIMB NIAGA 2017 Realizing the Potential •Employer Branding • Digitalizing HR • Talent based rewards & development review • Culture Building Ignite the Pride Sustainability & Growth • Employer of Choice •Corporate University • Culture Building - Sustain the Passion HR 2.0 •Regional Employer Branding • ASEAN Talent & Leadership Factory • Culture to Build a sustainable CIMB Niaga • Efficient & effective HR services & solutions 359
  360. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Supporting Business Review OPERATIONS AND INFORMATION TECHNOLOGY CIMB Niaga through the Directorate of Operations and Information Technology conduct management and development of targeted and effective IT in providing services in accordance with expectations , standards and customer needs. CIMB Niaga is focusing on maximizing service with an emphasis on branchless banking, customer experience, and digital sales enablement as well as capability enhancement of the mobile banking system. OPERATIONS Operational Policy On an on-going basis, CIMB Niaga creates innovations and operational improvements in order to provide a memorable banking experience for all of its customers. CIMB Niaga, through its Operations Sub Directorate manages and develops business operations by implementing strategic policies and initiatives, which are integrated to provide the best and highest quality services for customers. 360 The Operations Sub Directorate has the duty to support the Bank’s Business Plan by ensuring continuous support to business units in meeting the expectations of the stakeholders, and is responsible for continuously improving processes and innovations to optimize productivity and quality of work. The Operations Sub Directorate is also responsible for the control of operational costs to achieve efficiency and adequate operational control function. Annual Report CIMB NIAGA 2017
  361. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Through the Operations Sub Directorate , CIMB Niaga ensures that customer transactions are executed in accordance with the applicable Service Level Agreement, that supervision of the reconciliation process occurs at the end of each day, and that policies and procedures are updated for risk management and mitigation. In addition, continuous improvement by the Operations Sub-Directorate is performed at all times to create a more efficient, clear, and comprehensive business model. Each employee of Operations Sub Directorate should also realize the importance of Do It Right The First Time. In terms of human resources, every leader has been consistently equipped with better coaching skills, monitoring skills and awareness of the needs to prepare their successor/replacement. CIMB Niaga is also aware of the importance of discipline during the escalation of problems and the appropriate resolution of significant problems. Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report Operational Strategy The Operations Sub Directorate has identified the necessary changes required in the work procedures and has continuously reviewed the impact of 1P implementation on processes and cost efficiencies, which will deliver greater contributions to employee productivity within the Operations Sub Directorate. On an on-going basis, the Operations Sub Directorate continues to practice the principles of prudence and strong control in day-to-day operational processes, and at the same time, providing enhancing positive Customer Experience. The Operations Sub Directorate conducts business support activities, by means of which the Bank may achieve more efficient and effective work management, and facilitate the creation and innovation of new products, business processes, and better services. Other strategies implemented by the Operations 361
  362. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management OPERATIONS AND INFORMATION TECHNOLOGY Sub Directorate were in supporting the business performance of CIMB Niaga as well as operational cost control were as follows : 1.Optimizing workspace and the need for new employees. 2. Reviewing each recurring, regular expense. 3. Identifying cost cutting opportunities for branch operations. 4. Conducting regular reviews to create more effective and efficient business processes. Operational Work Program Throughout 2017, the Operations Sub Directorate conducted several work programs, namely the implementation of SKN Generation II and RTGS-S4 Generation II. Here, the Operations Sub Directorate actively follows the Focus Groups organized by Bank Indonesia to ensure SKN implementation in CIMB Niaga proceeds smoothly and successfully. The Operations Sub Directorate also supports the work program of Risk Management through the establishment of the Risk Control Unit. Other work programs of the Operations Sub Directorate in 2017 were as follows: 1. Implementation of a centralized online reconciliation system as a tool to support reconciliation. 2. Lending Document Storage implementation and Loan Operations in a centralized area. 3. Optimization and Monitoring of Available Cash at the end of the day. 4. Implementation and Socialization related to basic control process. 5.Re-organization of Operation Executives at Regional Offices. 6. Implementation of the Operations Staff Development Program for the purpose of preparing successors for the Operations Division through the Operation Development Program (ODP). Awards Awards received by CIMB Niaga in the field of Operations in 2017 are as follows: 1. Straight Through Processing (STP) Award from Standard Chartered Bank for the STP Rate achievement of 98%. 362 2. Straight Through Processing (STP) Award from the Bank of New York Mellon for the STP Rate achievement of 95%. 3. Straight Through Processing (STP) Award from JP Morgan for the STP Rate achievement of 98.7%. 2018 Plan In 2018, in order to address business challenges and provide operational performance support for CIMB Niaga in an effective and efficient manner through the implementation of the following plans and work focus: 1. Centralized service centres and storage of loan guarantee documents, operational transaction processing centres, and customer call-back processes. 2. Alignment of organizational structure with business units, through the acquisition of business unit divisions performing daily operational activities. 3. Implementation of document storage tools that better accommodate daily operational needs. 4.Implementation of Bank Indonesia initiatives related to Instant Clearing and Post Dated Transfer properly and correctly. 5. Improvement on the electronic Business Continuity Management (BCM) process as well as adding simulations that involve management in order to improve the overall awareness from managerial to staff levels. INFORMATION TECHNOLOGY The role of Information Technology and Information Systems (IT) is to provide increased operational efficiency and service quality in the banking industry. Realizing this, CIMB Niaga utilizes IT to provide the best service and minimize operational business risks faced by the Bank. Further, continuous IT development will enable CIMB Niaga’s risk management system to be conducted in a highly effective manner. CIMB Niaga is at the forefront of digital banking initiatives. This initiative is based on the notion that competition can only be won with the speed, precision, comfort and security that customers experience when transacting, as well as delivering high corporate value to the eyes of all stakeholders. CIMB Niaga through the Directorate of Operations and Information Technology conducts management and development of targeted Annual Report CIMB NIAGA 2017
  363. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report and effective IT in providing services in accordance with expectations , standards and customer needs, CIMB Niaga has become a successful digital banking leader in Indonesia. IT development at CIMB Niaga serves as a business enabler, by utilizing technology in an efficient, timely and cost effective manner to deliver high-quality, reliable, and secure banking products and services. The objectives of CIMB Niaga’s IT development include: 1. Strategically supporting the management of the Bank. 2. Providing and developing efficient and effective business processes while maintaining consistency with the Bank’s objectives. 3.Ensuring robust and comprehensive IT risk management processes. 4.Ensuring the provision of high-quality services based on reliable and innovative information technology. 5. Supporting and at the same time serving as a driving factor for the Bank’s business development. Vision and Mission of Operations and Information Technology Directorate 1. Vision : Establish and transform the Directorate of Operations and Information Technology to become a business supporter, with quality principles and effective, efficient, reliable, and secure services. 2. Mission : a.Supporting faster and better transformation initiatives. b. Supporting the Digital Banking and Branchless Banking solutions. c. Reviewing policies and procedures on an ongoing basis. d. Continuing to simplify the processing time to support rapid business growth. e. Improving staff capability in order to strengthen risk awareness and culture of prudence. Annual Report CIMB NIAGA 2017 ASHISH MISHRA SVP & GM Kony was founded in 2007 and has over 1,300 employees worldwide. Kony’s journey with CIMB Niaga started in November 2016 to partner and enable CIMB Niaga’s Go-Mobile Digital Banking program and vision. Powered by the versatile and secure Kony AppPlatform, the CIMB Go-Mobile app enables the Bank to realize their mobile-only branchless banking Digital vision, which went live to the public in November 2017. Team CIMB Niaga ensured we built a strong partnership between CIMB Niaga and Kony team based on mutual trust and support with all of its stakeholders. By being extremely helpful and welcoming of any constructive feedback for the improvement and attainment of set objectives. Kony would be eager to continue to partner with CIMB Niaga on their digital journey to expand the customer base as well as enhance the customer experience. Dealing directly with a global company like Kony will provide long-term benefits and much higher rate of return on investment for the Bank. 363
  364. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management OPERATIONS AND INFORMATION TECHNOLOGY f . Centralizing processes to improve control and efficiency. g. Effecting strong cost management for business growth. h. Supporting & Strengthening control, customer experience, asset quality, and efficiency. 2017 Work Plan and Achievement The main work program performed by CIMB Niaga in the IT sector in 2017 was the renewal of digital channels in order to provide more satisfaction to customers. The renewal was conducted for all CIMB Niaga customer segments. 2017 Focus and Strategic Policies in Information Technology Development In 2017, CIMB Niaga continued its IT focus and strategic policy development from the previous year with the implementation of digital information system aimed at improving customer service through: process simplification, single customer view, acceleration, automation, and better operational standardization in conventional and sharia banking. Supported by core banking efforts prepared in the previous year, the limitation of product development/modification encountered has been overcame and CIMB Niaga is ready to grow faster and able to accommodate growth and business competition. For corporate customers, the launch of BizLite, an internet banking application, was a complement to the BizChannel services that had been previously enjoyed. With more concise and appropriate features for small companies, customers are able to perform the following with ease: 1. Transfer, both domestically and internationally. 2. Cheque management. 3. Online foreign exchange transactions. 4. Online Time Deposit. 5. Payment of invoices and taxes. In expanding its digital banking services, CIMB Niaga is focusing on maximizing service with an emphasis on branchless banking, customer experience, and digital sales enablement as well as capability enhancements of the mobile banking system. Other services that can be offered as a new customer experience is the initial deposit of the online Hajj Travel Expenses (BPIH) and the development of a second generation State Revenue Module (MPN). In terms of risk management, CIMB Niaga through the Information Technology Sub-Directorate pays attention to reporting automation to the regulators, as well as the implementation of projects that are related to BASEL II and III, among others, Legal Binding Currency and BASEL Integrated Risk Reporting System. 364 As for individual customers, the New Go Mobile is a new mobile banking service that provides easy access at anytime and anywhere for customers through smart phones. This has strengthened the digital banking product offering of CIMB Niaga. A number of new features are being offered to facilitate and provide convenience for transactions performed by the customers, among others: 1. 1 device 1 phone number, making the app safer, as it can only be accessed through the registered phone number and device. 2. Fingerprint login, allowing easier and faster access to the application. 3.The customers can directly share proof of transaction from applications, such as WhatsApp, SMS, as well as email. 4. Downloadable account statement. 5. Use of promotional codes to participate in various exciting deals on the Go Mobile application. Annual Report CIMB NIAGA 2017
  365. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Likewise for the Sharia Banking Business Unit , the Dual Banking Leverage Model (DBLM) concept was implemented well in 2017 due to the readiness of the core banking system that had been prepared as part of the long-term IT strategy, allowing better support for the development of sharia products. In addition to accelerating and improving services, CIMB Niaga also updated and upgraded the IT infrastructure at the Head Office and Branch Offices, by upgrading network equipment, hardware, and software used by the frontliners, back office, and units at the Head Office to ensure conformity and readiness to address digital banking initiatives. In 2017, CIMB Niaga’s IT work unit consistently provided quality IT services with an emphasis on the following initiatives, work programs and achievements: 1. Implementation of the Post 1Platform (1P) phase 2 project to complement the new Core Banking (1P) with adjustment on requirements and enhancement to consistently provide optimal and high-quality IT services with emphasis on system reliability and integrity. 2. Expansion of digital banking services with emphases on branchless banking, customer experience, digital sales enablement and enhancement on the capabilities of the mobile banking system. 3. Enhanced system and infrastructure capabilities to support dynamic business growth and needs, through Data Center renewals to anticipate business requirements for the next 15 years. 4. Supporting the Finance work unit in continuing to improve data governance, enhancing data integration capabilities from multiple source systems, improving the quality and integrity of data through data management in the Data Warehouse. Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report 5. Continuing the Bank’s initiative to make adjustments to national or international banking regulations, policies or regulations, including preparing the system as a preparation for debit card migration under the National Standard for Indonesia Chip Card Specification (NSICCS), the implementation of a credit risk system that is in line with the implementation of the IRB Basel II, and liquidity risk calculation system in accordance with the Basel III framework, as well as the development of the second generation National Clearing System. 6. Improvement and implementation of a comprehensive and consistent project governance cycle to ensure that the project has run through the review process so that it is consistent with the organization’s business strategy and ensures its implementation activities do not violate the provisions of the organization. 7.To support developments and enhancements mentioned in the above, CIMB Niaga has prioritized and guarded its IT Security. 2017 has been a year full of challenges for IT Security Unit, cyber attacks, specifically ransomware, has been put in the highlight and CIMB Niaga has managed to safeguard our customer data against these attacks. In on-going basis, IT has been active in preventing and anticipating other cyber attacks. Aligned with the bank’s plan and strategy in safeguarding the bank’s data, with continuous enhancement of IT Security readiness level which refers to the security method implemented by Center of Internet Security (CIS). In order to monitor thoroughly, our Security Operations Center (SOC) taskforce will safeguard CIMB Niaga’s IT Security and will be ready to prevent and anticipate cyber attacks. Through its digital channels, CIMB Niaga educates customers in overcoming social engineering attacks, with hope that the customers will also actively involved in safeguarding their own sensitive data, such as user ID, password and PIN. 365
  366. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management OPERATIONS AND INFORMATION TECHNOLOGY Product Development Support IT development is always strategically tailored to the business direction and prioritizes revenue generators while observing regulations of the financial authorities for both conventional and sharia banking . In 2017, CIMB Niaga launched several IT-based products and services to support efficiency and effectiveness of operational activities and services to all customers. The IT-based services are in line with our 1P Satu Kita project, which includes: 1. CASA (Current Account & Saving Account). 2.Loans. 3. Customer Information File (CIF). 4. Other supporting systems, among others, ATM/ Switching support system, systems used for Branch services (Branch Delivery System & e-Touch Point/ eTP), systems for e-channel based services, and Product Management System. Meanwhile, IT achievement in product support is the implementation of products or services that are related to the payment system, including: 1. BizChannel@CIMB for Business– Internet Banking Services for Small Medium Enterprise customers. 2. New Go Mobile. 3. Contactless Card (Paywave). 4. Mobile EDC (mPOS). 366 5. 6. 7. 8. Virtual Card Number. E2Pay (Online Payment Switching Gateway). Internet Payment Gateway. Rekpon Payment (Cellular phone Account). CIMB Niaga also continues to develop the Digital Sales Enablement initiative as part of the Digital Channel aimed at utilizing Telesales and Call Centers in several retail banking services. In addition, CIMB Niaga develops and implements the Internal Credit Rating System (ICRES) to meet the needs for analysis, monitoring and reporting on rating processes. Information Technology Governance In addition to focus on business operations, IT development and management in CIMB Niaga are also aimed at compliance to the prevailing rules and regulations, in this case, information technology governance. CIMB Niaga implements IT Governance at all business processes of the Bank. IT Governance in CIMB Niaga is continuously improved in terms of Policy and Procedure by adopting the Regulation of the Financial Services Authority and Bank Indonesia, Government Regulations, as well as International Best Practice, along with mitigating new risks and threats based on technological developments. Annual Report CIMB NIAGA 2017
  367. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report CIMB Niaga ’s IT Sub Directorate serves as the business enabler with IT scope of work that reaches across all business elements of the Bank in providing an effective, efficient, and safe operational system. IT management always ensures the IT function is in the right direction while complying to the prevailing rules and regulations; therefore, the following IT Governance Framework is required: Level 1 Policy of the Bank Level 2 IT Specific Policy 1. 2. 3. 4. 5. IT Strategy & Organization IT System Development IT Operations Network Communication IT Information Security Level 3 SOP | Standard Level 4 Working Instruction | ACM | Guideline Co m SE BI Policy of the Bank pl 6. IT Continuity y 7. End User Computing 8. Digital Banking 9. Use of IT Service Providers 10.Process, Risk & IT Control • Standard Operating Procedure (SOP) •Standard • Working Instruction •Guideline MANUAL FRAMEWORK CIMB Niaga also implements project governance for the development of new products or modifying the existing products. All projects are required to produce and follow the Project Management Cycle. CIMB Niaga also continuously implements and develops independent monitoring in IT Sub Directorate lines. The Self Assessment Review Program has been performed since 2011 and has been developed and conducted from initially 5 IT divisions to 51 IT Divisions and has become a culture, allowing independent control and on-going awareness of risk. Operations & Information Technology Human Resources IT development that is consistent with business needs is also supported by the competency and quality of Human Resources (HR) in the field of IT. Internal HR of the IT Directorate has technical competencies in IT services, namely core banking, e-banking/digital banking, branch delivery system, and many others. Annual Report CIMB NIAGA 2017 Through education and training, IT Human Resources are able to adapt and to improve their knowledge and skills. Training is organized internally, externally, or inclusive programs on the development projects of new systems and applications. In 2017, CIMB Niaga organized HR education and training in the fields of Operations and Information Technology by providing several basic training modules. The basic training module for the Operations Sub-Directorate employees is called the Branch Operations Program (BOP) and the basic training module for Information Technology Sub-Directorate employees is called the Fundamental IT (FIT) Program. The BOP consists of the Induction programs (Anti Money Laundering, Operational Risk, and others), Graphonomy, Product Funding, Product Lending, and Product Trade & Treasury, as well as Payment & Legal. While the FIT consists of the Induction programs (Anti Money Laundering, Operational Risk, and others), IT Project Life Cycle, Basic IT (System Security, Networking, and others), and Problem Solving & Service Excellence. 367
  368. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management OPERATIONS AND INFORMATION TECHNOLOGY Qualified young employees are developed through the Operations Development Program (ODP), which prepared them to participate, grow and develop together. Whereas to enhance and develop managerial leadership skills, the Bank provides special programs related to leadership based on the matrix. 2018 IT Development Plan CIMB Niaga targets the strengthening of IT systems in 2018 to improve the competitiveness of the Bank in the banking industry by implementing the following policies and work programs: 1. Continue the initiative to improve Data Recovery capabilities and Data Center renewal to anticipate long-term business needs. 2. Implement transformation initiatives to improve productivity and system security, such as the automation of system testing, technology refresh, and Data Loss Prevention (DLP). 3. Support the business unit’s initiatives to enhance the Mobile Banking System capabilities by adding features that can provide Unique Customer Experiences. 368 4.Improve the branchless banking service with new Internet Banking platforms, that provide customers a comfortable and secure feeling during transactions. 5.Provide flexibility to corporate customers to conduct transaction anytime and anywhere through the mobile application system. 6. Apply the prudence principle in system testing activities with automation processes. 7. Provide support to business units in providing the best lending services to corporate customers through the implementation of Corporate Loan Management System, which is expected to develop loan portfolios, mitigate errors, as well as reduce transaction processing time. 8. With the business units and the Risk Management Directorate, continue the implementation of BASEL II and III to conform to the national and international banking regulations, policies, or provisions. 9.Support the business units in implementing the new Wealth Management systems that will improve sales productivity, online transaction processing, and efficient operational processes. Annual Report CIMB NIAGA 2017
  369. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Information Technology Strategic Plan 2016 – 2018 2016 2017 1P Kita Satu Project 1. Completion of the system development stage. 2. Alignment between requirement and development. 3. Trial run or Operational Readiness Test. 4. Updating of related systems and procedures. 5. Training on New Core Banking system for all users. 1. Digital Sales Enablement to support Digital Banking initiative. 2. Risk Platform Enhancement in accordance with banking regulations. 3. Support for the implementation of Corporate Loan Management System, Wealth Management System and Budgeting System. 4. IT Cost Optimization. Annual Report CIMB NIAGA 2017 2018 1. Upgrade the Core Banking servers to achieve optimal capability. 2. Increasing storage capacity to keep up with Technology Development. 3. Utilization of testing automation to speed up software development. 4. Strengthening IT Security capabilities to be more proactive. 5. Digital Enterprise Workflow Initiatives. 369
  371. THE MOST IMPORTANT INGREDIENTS FOR SUCCESS ARE ENERGY , PASSION, AND DREAMS Songket Palembang It is hand-woven in silk or cotton, and intricately patterned with gold or silver threads to create a shimmering effect. Once worn only for special traditional events, its unique beauty now graces a wide variety of modern fashion and accessories.
  372. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Corporate Governance Report Table of Contents 374 Corporate Governance Implementation 375 Objectives of Corporate Governance 376 Guidelines and Policies of Corporate Governance 376 Basic Policy of Corporate Governance 376 Corporate Governance Principles 378 Corporate Governance Roadmap 379 CIMB Niaga Governance Focus in 2017 381 Corporate Governance Structure 383 General Meeting of Shareholders 396 Board of Commissioners 414 Independent Commissioners 416 Board of Directors 427 Diversity Composition Policy of Boards of Commissioners and Directors 430 Corporate Governance Self-Assessment Results in 2017 434 Performance Assessment of the Boards of Commissioners and Directors 436 Remuneration Policy 444 Policy , Frequency, and Attendance Rates of Board of Commissioners Meetings, Board of Directors Meetings, and Joint Meetings of Board of Commissioners with the Board of Directors 460 Information on Major Shareholders and Controllers 461 Affiliations Between Boards of Commissioners and Directors, and the Controlling Shareholders 462 Board of Commissioners Committees 485 Board of Directors Committees 496 Corporate Secretary 501 Compliance Management 505 Internal Audit Unit (IAU) 510 Anti-Money Laundering and Countering the Financing of Terrorism Program (AML and CFT) 372 Annual Report CIMB NIAGA 2017
  373. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report 514 Public Accountant /External Auditor 515 Transparency of the Bank’s Financial and Non-Financial Condition 515 CIMB Niaga Share and Bond Buyback 516 Dividend Policy 516 Funds for Social and Political Activities 517 Provision of Funds to Related Parties 517 Customer Protection Policy 518 Anti Corruption Policy 518 Protection of Creditors’ Rights 518 Submission of the 2017 Sustainability Report 519 Risk Management 521 Internal Control System 523 Legal Issues/Litigation of the Bank and its Subsidiaries 527 Access to Corporate Information and Data 531 Employee Code of Conduct & Ethics 532 Disciplinary Policy and Determination of Sanctions for Violations 533 Corporate Culture 534 Goods and Services Procurement Policy 534 Conflict Management Policy (Including Insider Trading) 535 Internal Fraud 536 Whistleblowing System 538 Implementation of Corporate Governance Guidelines for Public Companies 543 ASEAN Corporate Governance Scorecards Index 552 Integrated Governance Implementation Report 565 Corporate Governance Report of Sharia Business Unit 573 Bad Corporate Governance Practices 573 Statement on Implementation of Good Corporate Governance Principles 573 Statement on the Effectiveness of Internal Control System and Risk Management Annual Report CIMB NIAGA 2017 373
  374. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Corporate Governance Report Corporate Governance refers to the four pillars of governance , namely governance commitment, governance structure, governance process, and governance outcome, as the manifestation of CIMB Niaga responsibility to interested parties, namely customers, employees, stakeholders, and the community. CORPORATE GOVERNANCE IMPLEMENTATION CIMB Niaga realizes that, as a Bank with an intermediary role in the national economy and as one of the main pillars of the financial industry with a strategic role in national development, Good Corporate Governance is more than a necessity, and has become the main foundation in running the business to maximize benefits and added value for the stakeholders, as well as maintain long-term business continuity. In its journey of more than 60 years, CIMB Niaga has consistently applied the principles of good corporate 374 governance to create added value and maintain a high level of confidence for its stakeholders in order to achieve its vision and business sustainability. Corporate Governance refers to the four pillars of governance, namely governance commitment, governance structure, governance process, and governance outcome, as the manifestation of CIMB Niaga responsibility to interested parties, namely customers, employees, stakeholders, and the community. In addition, CIMB Niaga conducts on-going corporate social Annual Report CIMB NIAGA 2017
  375. Supporting Business Review Corporate Governance Report Corporate Social Responsibility responsibility programs as an integral part of the Bank ’s operational activities. Through these programs, CIMB Niaga strives to create strong synergies and relationships with the communities and environment where it operates, enabling CIMB Niaga to provide added value for its stakeholders. OBJECTIVES OF CORPORATE GOVERNANCE For CIMB Niaga, consistent implementation of governance principles through the 4 (four) governance pillars will benefit CIMB Niaga as follows: 1. Create a foundation for long-term Bank growth. 2. Strengthen the Bank’s image. 3. Increase Bank competitiveness. 4. Increase investor confidence in the Bank. 5. Increase the share value of the Bank. Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report CIMB Niaga is aware that a company’s sustainability is not only measured by its financial performance and profitability, but also through its internal performance, including ethics and Good Corporate Governance. In the future, in line with one of the core values of the Company, namely Customer Centric, CIMB Niaga is determined to continue to grow and develop into the best bank in Indonesia. To achieve this, the Bank always prioritizes its customers in each of their business activities by providing innovative solutions through products, processes, and services, while remaining committed to implementing corporate social responsibility programs that are sustainable and in synergy with the Bank’s business strategy, ultimately achieving business growth and optimum performance. 375
  376. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management CORPORATE GOVERNANCE REPORT GUIDELINES AND POLICIES OF CORPORATE GOVERNANCE The commitment of CIMB Niaga to implement good corporate governance principles refers to a number of applicable provisions , as follows : 1. Law No. 8 year 1995 on the Capital Market dated 10 November 1995; 2.Law No. 40 year 2007 on Limited Liability Companies dated 16 August 2007; 3.Regulation of the Financial Services Authority (POJK) No. 55/POJK.03/2016, dated 7 December 2016 and Circular of the Financial Services Authority (SE OJK) No. 13/SEOJK.03/2017, dated 17 March 2017 on the Implementation of Good Corporate Governance for Commercial Banks; 4.POJK No.21/POJK.04/2015, dated 16 November 2015 on the Implementation of Corporate Governance Guidelines for Public Companies and SE OJK No. 32/SEOJK.04/2015, dated 17 November 2015 on the Guidelines of Corporate Governance for Public Companies; 5. POJK No. 18/POJK.03/2014, dated 18 November 2014 and SE OJK No. 15/SEOJK.03/2015, dated 25 May 2015 on the Implementation of Integrated Corporate Governance for Financial Conglomerations; 6. POJK No. 29/POJK.04/2016, dated 29 July 2016 on Annual Report of Issuers or Public Companies; 7. Indonesian Corporate Governance Roadmap; 8. ASEAN Corporate Governance (CG) Scorecard; 9.The Company’s Articles of Association and Resolutions of the General Meetings of the Shareholders; 10.Corporate Regulations (Corporate Policy Manual, Employment Guidelines, Code of Conduct, Standard Operating Procedures) 376 CIMB Niaga periodically reviews and evaluates the completeness of and update the internal provisions issued by the Bank, to ensure that the provisions are always relevant and in accordance with the conditions and strategies of the Bank, applicable regulations, and prevailing best practices. BASIC POLICY OF CORPORATE GOVERNANCE The Corporate Governance Guidelines of CIMB Niaga is established in the Corporate Policy Manual, version 01 year 2016, which serves as the highest policy in CIMB Niaga. As determined in the Corporate Policy Manual, Corporate Governance is implemented on the basis of Transparency, Accountability, Responsibility, Independence, and Fairness and Equality (TARIF). In addition, the Corporate Policy Manual is supported by other governance-related policies, such as the Code of Conduct, the Charters, the Whistleblowing Policy, the Conflicts of Management Policy, as well as other operational policies. These policies represent the Bank’s fundamentals and demonstrate CIMB Niaga’s commitment to sustainable implementation of governance principles. CORPORATE GOVERNANCE PRINCIPLES The implementation of governance principles at CIMB Niaga can be described as follows: 1.Transparency a. CIMB Niaga discloses information in a proper, adequate, and timely manner. b.Disclosure of information by CIMB Niaga is accessible by all stakeholders in accordance with their rights. c. Disclosure of information by CIMB Niaga are in observance to the Bank’s confidentiality principles, based on the applicable laws and regulations. d.The policy of CIMB Niaga is written and communicated to the stakeholders in accordance with their respective rights and the prevailing regulations. Annual Report CIMB NIAGA 2017
  377. Supporting Business Review Corporate Governance Report Corporate Social Responsibility 2 .Accountability a. The Board of Commissioners and the Board of Directors have clear duties and authority and responsibilities. b.Members of the Board of Commissioners and Board of Directors have adequate competence, in accordance with their duties and responsibilities, as well as displaying an understanding of their roles in good corporate governance. c.Each member of the Board of Directors and subordinates have clear duties and responsibilities that are consistent with the vision, mission, and core values of CIMB Niaga. d. The Board of Commissioners and the Board of Directors are responsible for their performance to the shareholders through the Annual General Meeting of Shareholders. e.CIMB Niaga conducts periodic performance assessments of the Board of Commissioners, Committees under the Board of Commissioners, and the Board of Directors. Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report 3.Responsibility a. CIMB Niaga conducts its business activities by constantly adhering to the banking prudential principles and to the prevailing laws and regulations. b. CIMB Niaga cares about the environment and the community and always conducts its social responsibilities fairly. 4.Independency a.In conducting its business activities, CIMB Niaga does not accept any interference from the Controlling Shareholders or other stakeholders. b. CIMB Niaga always avoids conflicts of interest. c. Decision-making is conducted in an objective manner and for the interests of the Bank. 5. Fairness and Equality a. CIMB Niaga always strives to take into account the interests of all stakeholders based on the principle of fairness and equality. b.Access to information by CIMB Niaga is carried out in accordance with the principle of disclosure by always displaying fairness and equality to all stakeholders. 377
  378. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Corporate Governance Roadmap CIMB Niaga is committed to continuously improve its Corporate Governance , not only based on prevailing Indonesian standards, but also on prevailing international best practices, including based on the ASEAN Corporate Governance Scorecard. CIMB Niaga’s Corporate Governance has been executed in a structured manner through the following stages: 2017 2016 •Enhancement of the GCG Guidelines as outlined in the Corporate Policy Manual. •Enhancement of the Conflicts of Management Policy, which also governs, among others Insider Trading. •Conducted performance assessments of the Board of Commissioners, Board of Directors, and Committees at the level of the Board of Commissioners. 2013 Alignment and refinement of the GCG practices of the Bank with the Indonesian Corporate Governance Roadmap issued by the Regulators and the principles of ASEAN CG Scorecard, among others CIMB Niaga shall ensure to have minimum 1 (one) female Independent Commissioner as a member of its Board of Commissioners. •Establishment of a GCG unit responsible for, and focusing on improvement of GCG at the Bank. •Appointment of PT Deloitte Indonesia as an independent party to manage the whistleblowing services to be accessable by the public. This appointment was made to enhance the management of whistleblowing transparency and professionalism at the Bank. •Renewal of the Board of Commissioners and Board of Directors Charters. •CIMB Niaga provided opportunities for people with disabilities to work as employees of the Bank. This is one of CIMB Niaga’s CSR programs that is implemented continuously. 2015 2014 •Comprehensive implementation of ASEAN CG Scorecard principles, leading to CIMB Niaga being selected as one of the two listed companies in Indonesia that received “Top 50 Public Listed Company at ASEAN level based on ASEAN CG Scorecard” in 2015. •Disclosure of the GMS Agenda along with its explanation. •Disclosure of profiles of candidates for members of the Board of Commissioners and Board of Directors. •Publication of the AGM resolutions on the same day as the AGM implementation. •Uploading of the video of the AGM result on the Bank’s website on the same day as the AGM implementation. •Development of the Bank’s GCG practices in line with the latest OJK provisions and the manifestation of GCG in the Corporate Culture “A Better CIMB Niaga/ABC”. •Issued the AGM Summons 28 days prior to holding the AGM. •Implementation of Integrated Corporate Governance and Integrated Risk Management by establishing the Integrated Corporate Governance Committee and Integrated Risk Management Committee. 2010-2011 2008 1989 1974 1955 Became a Foreign Exchange Bank. Became a Public Company. Bank Rebranding & Merger. Establishment of GCG infrastructure and implementation (preparation of the GCG Charter, Board of Commissioners Charter, Board of Directors Charter, Committee Charters, Code of Conduct) as well as recognition from the IICG, IICD,and ARA. The Bank was incorporated. 378 Annual Report CIMB NIAGA 2017
  379. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report CIMB Niaga Governance Focus in 2017 The various initiatives implemented or developed by CIMB Niaga in 2017 to further enhance and optimize the implementation of Good Corporate Governance principles , among others, are detailed below: 1. Enhancement of Transparency, including: a. Issued the 2016 Financial Statements (audited) in less than 60 (sixty) days from the date of the report. Published the GMS Announcement 14 b. (fourteen) days prior to the date of the GMS Summons and issued the GMS Summons 28 (twenty eight) days prior to the date of the GMS. c. Published the Summary of GMS Resolutions on the same date as the GMS. 2. Provided opportunities for people with disabilities to be able to work and become independent by recruiting them as phone banking and telesales employees of CIMB Niaga. 3. Performed a variety of initiatives to mitigate and control the Bank’s operational risks as well as potential losses that may arise, as follows : a.Issued the IT Generic Self-Assessment as the guidelines for each work unit in order to self-assess their respective IT and data risks, enabling them to take immediate measures to mitigate risks as well as ensuring transparency of IT risks that are inherent in each work unit. b.Launched the Operational Risk Management System (SHARP) that could be utilized by all work units to manage and document operational risks in a single database, ultimately increasing transparency in the management and documentation of operational and compliance risks. Annual Report CIMB NIAGA 2017 4.Automated and digitalized human resource related processes, such as the e-learning system, recruitment tracking system, self-service system for resignation processes, and benefit claims. In addition to improving service to employees, automation and digitalization enhanced accountability and transparency processes. 5. Conducted the “Care with Our Home” programs and campaigns to create a better space and work environment for all employees by implementing the 5Rs (Ringkas, Rapi, Resik, Rawat dan Rajin) (Brief, Tidy, Clean, Careful, and Diligent). 6. Reviewed and adjusted the Bank’s organizational structure in order to meet the Bank’s needs and complexity while optimizing process and decision making as well as minimizing risks and improving control functions. Adjustments conducted were as follows: a.Established a Risk Control Unit (RCU) in several work units. The RCU is responsible for evaluating the risks of changes in significant processes, including ensuring the transparency of process changes that occur in each work unit. Allowing an immediate mitigation/minimization of operationals risk in each work unit. In 2017, improvement of duties and responsibilities, and clear Key Performance Indicators were made to ensure that the objectives of RCU establishment could be achieved. b. Established a GCG work unit that would focus on improving the implementation of Good Corporate Governance principles by the Bank. c. Adjusted work unit functions in Transaction Banking to refine work process and improve control, such as centralized Commercial Wholesale Funding and IT operations on Securities Services to the Directorate of Operations and IT, while Transaction Banking is being responsible for the Corporate Card Business. 379
  380. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management CORPORATE GOVERNANCE REPORT 7 . Appointed PT Deloitte Indonesia as an independent party to manage whistleblowing services to be accessable by the public. This appointment was made to enhance the management of whistleblowing transparency and professionalism at the Bank. 8.Launched the Regulatory Commitment System/ ReCom, an automation system to improve compliance of the Bank on its obligations to the regulators, subsequently minimizing the Bank’s compliance risk. 9. Developed the AML Solution system to further improve the KYC/AML processes at CIMB Niaga. The development of the system could minimize the Bank’s risk of being used as a means of money laundering, and other risks that may arise, such as operational risk, legal risk, compliance risk, and reputation risk. 10.Made improvements to the work processes for customer convenience and the Bank’s overall performance, such as : a. Improvement of the secondary Mortgage credit process so as to increase the Bank’s Mortgage portfolio. b.Simplification of the Haj account opening process, ultimately resulting in an increase in Haj account openings at the Bank c.Digitalization of phone banking, enabling the Bank to improve the quality of service to customers. d. Updating loan origination system for consumer loans (Credit Card and KTA/Unsecured Loans), allowing the Bank to be able to process consumer credit through digital banking and reduce the time required for credit process. 380 11.Updated several governance related documents, such as the Board of Commissioners Charter, the Board of Directors Charter, the Code of Conduct, the AML Policy, to be in line with the latest regulations and good governance standards. Developed the Learning Content Management 12. System to support and further improve employee training and development programs. With this system, employees would be able to follow the training more conveniently through E-Learning method, such as the AML E-learning module, the Code of Ethics E-learning module, etc. With this system, the level of training participants has increased significantly and is expected to reduce the compliance risk and operational risk of the Bank. 13.CIMB Niaga is aware of the importance of synergy. The synergy of CIMB Niaga is not only between business units or products, but also between business units and corporate social responsibility programs. The synergy is implemented through one of CIMB Niaga’s CSR programs, namely Ayo Menabung dan Berbagi, in which the program successfully supported the Bank’s business growth, in particular the increase of new savings accounts. Annual Report CIMB NIAGA 2017
  381. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Corporate Governance Structure Pursuant to the prevailing laws and regulations , the governance structure of CIMB Niaga is arranged with the objective to establish clarity in the division of duties and responsibilities, the mechanisms and flow of decisionmaking, and reporting within the organs of the Bank. The following is the corporate governance structure at CIMB Niaga: General Meeting of Shareholders Main Organs Supporting Organs Board of Commissioners Board of Directors Committees at the Board of Commissioners Level Executive Committees Special Committees Corporate Secretary Business Unit/Work Units Independent Units Infrastructure Annual Report CIMB NIAGA 2017 Corporate Regulations, Code of Conduct, Policies and Procedures 381
  382. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management CORPORATE GOVERNANCE STRUCTURE Corporate governance is conducted in a systematic and continuous manner so that the corporate governance principles have become the main terms of reference in business activities in CIMB Niaga . Corporate governance is realized through the interaction of all of the Bank’s organs in the governance structure of CIMB Niaga, with the main organ consisting of the General Meeting of Shareholders (GMS), the Board of Commissioners and the Board of Directors, where the GMS holds the highest position. To maximize the functions of the main organs in the governance structure of CIMB Niaga, implementation is assisted by the supporting organs, consisting of Committees at the Board of Commissioners level, the Corporate Secretary, Committees at the Board of Directors level, and Internal Audit. Committees at the Board of Commissioners level are established to assist and enhance the oversight function of the Board of Commissioners. The following are the committees at the Board of Commissioners level: 1. Audit Committee 2. Risk Oversight Committee 3. Nomination and Remuneration Committee 4. Integrated Corporate Governance Committee. 382 The Board of Directors and the management of the Bank are responsible for managing and controlling governance at CIMB Niaga, assisted by the Corporate Secretary, Committees at the Board of Directors level and Internal Audit. The following are Committees at the Board of Directors level, consisting of Executive Committees and Special Committees: 1. Executive Committees: a. Asset & Liability Committee (ALCO) b. Credit Policy Committee (CPC) c.Information Technology Steering Committee (ITSC) d. Risk Management Committee (RMC) e.Operational Risk Management Committee (ORC) f.Capital Management & Recovery Plan Committee (CMRP). 2. Special Committees: a. Business Development Committee (BDC) b. Capital Investment Committee (CIC) c. Marketing & Communication Committee (MARCOM) d. Personnel Policy Committee (PPC) e. Disciplinary Committee (DC) f. Credit Committee (CC) g. Data Governance Committee (DGC). Annual Report CIMB NIAGA 2017
  383. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report General Meeting of Shareholders The General Meeting of Shareholders (GMS) is the highest organ in CIMB Niaga’s corporate governance structure which functions as a forum for shareholders to make decisions. In the GMS, decisions are made based on the interests of the Bank, and are conducted properly and transparently. The GMS has the authority that is not granted to the Board of Directors and the Board of Commissioners as stipulated in the Articles of Association and applicable laws and regulations. Based on the Articles of Association, the GMS consists of the Annual General Meeting of Shareholders (AGMS), which is held once a year and Extraordinary General Meeting of Shareholders (EGMS), which may be held at any time if required. Both the AGMS and the EGMS have the highest authority in the Bank’s governance structure. The legal basis for the GMS of CIMB Niaga refers to: 1. Law No. 40 Year 2007 concerning Limited Liability Companies. 2.Regulation of the Financial Services Authority (POJK) No. 32/POJK.04/2014 dated 8 December 2014 concerning the Plan and Implementation of General Meeting of Shareholders for Public Company and POJK No. 10/POJK.04/2017 dated 14 March 2017 concerning Amendment to POJK No. 32/POJK.04/2014 3. The Articles of Association. RIGHTS, AUTHORITIES AND RESPONSIBILITIES OF SHAREHOLDERS The rights, authorities and responsibilities of shareholders are arranged in detail in CIMB Niaga’s Articles of Association, which are accessible through the website (www.cimbniaga.com). The Bank encourages all shareholders including institutional shareholders to attend the GMS held by CIMB Niaga. 1. Attend the GMS and give 1 (one) vote. 2. Opportunity to propose the GMS agenda. 3. Opportunity to grant power to other parties if the shareholders are unable to attend the GMS. 4. Study the material of the GMS at the latest 28 days before the GMS is held, to enable the shareholder to vote during the process of proposing resolutions. 5. Opportunity to raise questions in every agenda discussion and every agenda decision of the GMS. 6.Opportunity to vote in agreement or in disagreement with, or abstain from any proposed decision in the GMS agenda. 7. Receive the same treatment from the Bank. Moreover, shareholders also have the authority, among others: to appoint and dismiss members of the Board of Commissioners and the Board of Directors, evaluate the performance of the Board of Commissioners and the Board of Directors, approve amendments to and ratification of the Articles of Association, approve the annual report, approve the remuneration of the Board of Commissioners and the Board of Directors, as well as allocation of the Bank’s profit, including dividend distribution. MECHANISM OF ORGANIZING THE GSM In 2017, CIMB Niaga held 1 (one) AGMS and 2 (two) EGMS, one of which was held simultaneously with the AGMS in 2017. The mechanism of the AGMS and EGMS for the year of 2017 was conducted in accordance with the provisions in the Articles of Association and POJK No. 32/POJK.04/2014 concerning the Plan and the Implementation of the General Meeting of Shareholders for Public Companies, and POJK No. 10/POJK.04/2017 dated March 14, 2017 concerning Amendment to POJK No. 32/POJK.04/2014. CIMB Niaga’s shares consist of Class A shares and Class B shares. Both Class A and Class B shareholders have the same rights. Each share has rights to 1 (one) vote. Rights possessed by shareholders, among others, are as follows: Annual Report CIMB NIAGA 2017 383
  384. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management GENERAL MEETING OF SHAREHOLDERS The GMS (Annual and Extraordinary) on 25 April 2017 CIMB Niaga held the AGMS, which continued with an EGMS, on 25 April 2017. The process of organizing both the AGMS and EGMS on 25 April 2017 was as follows: Date & Time 25 April 2017 at 14.18 until 15.30 local time (AGMS) 15.35 until 15.50 local time (EGMS) Location Locations that are easily accessible to shareholders: Financial Hall Graha CIMB Niaga 2nd Floor Jl Jenderal Sudirman Kav.58 South Jakarta 12190. Quorum The AGMS was attended by shareholders and/or their proxies representing 23,802,538,103 shares or 94.71% of the total shares of class A and class B with voting rights issued by the Bank totaling 25,131,606,843. The EGMS was attended by shareholders and/or their proxies representing 23,855,188,228 shares or 94.92% of the total shares of class A and class B with voting rights issued by the Bank totaling 25,131,606,843. AGMS and EGMS Chairman Dato’ Sri Nazir Razak, President Commissioner as AGMS and EGMS Chairman. Attendance of Board of Commissioners including President Commissioner Dato’ Sri Nazir Razak as President Commissioner, and all Board of Commissioners Members and Sharia Supervisory Board were present (except Ahmad Zulqarnain Che Onn, Prof. Dr. Muhammad Quraish Shihab, MA and Dr. Yulizar Djamaluddin Sanrego Nazar, who were unable to attend). Attendance of Audit Committee, including Chairman Roy Edu Tirtadji as Chairman of Audit Committee was present. Jeffrey Kairupan as Member of Audit Committee was present. Mawar I.R. Napitupulu as Member (Independent Party) of Audit Committee was present. Yap Tjay Soen as Member (Independent Party) of Audit Committee was present. Attendance of Nomination and Remuneration Committee Chairman Pri Notowidigdo as Chairman of Nomination and Remuneration Committee was present. Attendance of Risk Oversight Committee Chairman Zulkifli M. Ali as Chairman of Risk Oversight Committee was present. Attendance of Board of Directors including President Director Tigor M. Siahaan as President Director and all Board of Directors members were present. Attendance of Compliance Director Fransiska Oei as Compliance Director was present. Independent Party to calculate quorum and votes for AGMS and EGMS resolutions Notary Ashoya Ratam, SH, MKn as Public Notary PT Sirca Datapro Perdana as Share Registrar Total number of shareholders making inquiries and/or giving opinions at the AGMS and EGMS 2 (two) shareholders raised questions at the AGMS, comprising 1 (one) shareholder on the second Agenda and 1 (one) shareholder on the fourth Agenda of the AGMS, as well as 1 (one) shareholder raised a question on the sole Agenda of the EGMS. Procedures for AGMS and EGMS resolutions The resolutions were made amicably. However, should the meeting fail to reach a consensus; the resolutions of AGMS and EGMS are made based on the results of voting, where the entire agenda of the AGMS and EGMS is conducted privately by using voting cards. Specifically for the appointment of the Board of Commissioners, Board of Directors and Sharia Supervisory Board is conducted by individual voting. The stages of the AGMS and EGMS implementation on 25 April 2017 were as follows: Description Notice of AGMS and EGMS to the Regulator 384 Implementation Provision Notice of AGMS and EGMS to the Financial Services Authority (OJK) and Indonesia Stock Exchange (IDX) (e-Reporting) dated 3 March 2017 Notice of the date and the agenda of the GMS, which is disclosed clearly and in detail must be submitted no later than 5 (five) working days prior to the date of the announcement of the GMS to the public. Annual Report CIMB NIAGA 2017
  385. Supporting Business Review Corporate Governance Report Description Announcement of AGMS and EGMS Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Implementation Provision •Announced in Bisnis Indonesia and The Jakarta Post newspapers on 10 March 2017. • Proof of announcement submitted to OJK (hardcopy and e-Reporting via SPE OJK) and IDX (e-Reporting via IDXNet) on the same day •Uploaded on the website of the Bank: www.cimbniaga.com on the same day • Announcement was made 16 days before the AGM and EGMS summons Presented in 1 (one) Indonesian language national newspaper, IDX’s website and Bank’s official website no later than 14 (fourteen) days prior to the GMS summon. Recording Date of Shareholders List entitled to attend the GMS •1 (one) working day prior to the GMS Summons, specifically on 24 March 2017 Summons along with explanations of AGMS and EGMS events •Announced in Bisnis Indonesia and The Jakarta Post newspaper on 27 March 2017. • Proof of summons announcement submitted to OJK (hardcopy and e-Reporting via SPE OJK) and IDX (e-Reporting via IDXNet) on the same day • Uploaded on the website of the Bank: www. cimbniaga.com on the same day • Announcement was made 28 days before the AGM and EGMS Proof of announcement shall be submitted to OJK no later than 2 (two) working days after the announcement of the GMS and submitted to the IDX on the same day as the date of announcement. Presented in 1 (one) Indonesian language national newspaper, IDX’s website and Bank’s official website no later than 21 (twenty one) days prior to the GMS summons. Proof of summons announcement shall be submitted to OJK no later than 2 (two) working days after the announcement of the GMS and submitted to the IDX on the same day as the date of announcement. Implementation of AGMS and EGMS 25 April 2017 Summary of Minutes (Results) of AGMS and EGMS Publications in Newspapers •Announced in Bisnis Indonesia and The Jakarta Post newspaper on 26 April 2017. • The publication of the summary of minutes (results) in the newspaper was announced 1 working day after the AGMS and EGMS The summary of GMS results shall be announce no later than 2 (two) working days after the GMS was held. Publication on the Bank’s website • Brief of resolutions and resumes of AGMS and EGMS made by Notary were uploaded on the Bank’s website at www.cimbniaga.com dated 25 April 2017. • Publication of resume on the Bank’s website was uploaded on the same day as the AGMS and EGMS Based on the ASEAN CG Scorecard, the Bank should publish the brief of resolutions and resumes of the GMS through the Bank’s website 1 (one) day after the holding of the GMS Report to Regulators and submission of the proof of publication on the summary of minutes of the AGMS and EGMS •Report on the resolution and proof of publication on the summary of minutes of the AGMS and EGMS to OJK (hardcopy and e-Reporting via SPE OJK) and IDX (e-Reporting via IDXNet) on 26 April 2017 • Report submitted 1 working day after the AGMS and EGMS Report on the results of the GMS shall be submitted to OJK and IDX no later than 2 (two) working days after the holding of the GMS and supplemented by a resume of the GMS Resolution issued by a Notary. • Deed of Minutes of the AGMS and EGMS was submitted to OJK on 17 May 2017 • Deed of Minutes submitted 14 working days after the AGMS and EGMS. Deed of Minutes of the GMS to be submitted to OJK no later than 14 (fourteen) working days after holding the GMS. Minutes of AGMS and EGMS VOTE COUNTING PROCESS Disclosure of vote counting and voting procedures for the AGMS and EGMS on 25 April 2017 is explained in Rules of Meeting (AGMS and EGMS) distributed to shareholders and read out by the Corporate Secretary prior to the commencement of the AGMS. Disclosure of the vote count and the complete voting procedure is set out in the Rules of Meeting, which was announced/ uploaded on the Bank’s website in conjunction with summon of the AGMS and EGMS. Annual Report CIMB NIAGA 2017 Proof of publication on the summary of minutes of GMS is submitted to the OJK no later than 2 (two) working days after the announcement of the GMS and submitted to the IDX on the same day as the publication date. INDEPENDENT PARTY TO CALCULATE VOTES CIMB Niaga has appointed independent parties namely Notary Ashoya Ratam, SH, MKn as Public Notary and PT Sirca Datapro Perdana as the Share Registrar in conducting calculations and/or vote validation. 385
  386. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management GENERAL MEETING OF SHAREHOLDERS RESOLUTION AND REALIZATION OF THE AGMS AND EGMS ON APRIL 25 , 2017 Agenda 1 Approval of the Company’s Annual Report and Ratification of the Company’s Financial Statements for the year ended 31 December 2016 1. To approve the Annual Report of 2016 and to ratify the Company’s 2016 Consolidated Financial Statements for financial year 2016, which was audited by Public Accounting Firm Tanudiredja, Wibisana, Rintis & Rekan (a member firm of PricewaterhouseCoopers Global in Indonesia) as stipulated in the report dated 17 February 2017 with the opinion “The Consolidated Financial Statements present fairly, in all material respects, the consolidated financial position of PT Bank CIMB Niaga Tbk and Subsidiaries as of 31 December 2016, the consolidated performance and their cash flows for the year end at the above mentioned date is in accordance with the Financial Accounting Standards in Indonesia”; 2. Ratify the annual Supervisory Report of the Board of Commissioners and the Sharia Supervisory Board of the Company for the financial year 2016; and 3. Acquit and discharge (“volledig acquit et décharge”) the members of the Board of Directors and the Board of Commissioners including the Sharia Supervisory Board of the Company for the management and supervision performed in the financial year 2016, provided that the management and supervision are reflected in the Company’s annual report for the year ended 31 December 2016. Realization Realized in 2017 Votes Calculation Agree Against Abstain/No Votes1) 23,799,927,057 shares or 99.989% 3,978 shares or 0.001% 2,607,068 shares or 0.010% Total Majority Votes and Agree Votes = 23,802,534,125 shares or 99.999% Agenda 2 Determination on the use of the Company’s profit for Financial Year Ended on 31 December 2016 Realization To approve the appropriation of the Net Profit of the Company for the financial year 2016 in the total amount of Rp2,081,687,000,000 with the following description: 1. No distribution of dividend for the financial year 2016; 2. Company does not set aside any amount of its net profit for the financial year 2016 as statutory reserves fund, since the amount of statutory reserves fund of the Company have complied with the minimum required amount of statutory reserve fund in accordance with Article 70 of Law No. 40 Year 2007 concerning Limited Liability Companies. Realized in 2017 Therefore, the total Company’s Net Profit for the financial year 2016 will be used to finance the business activities of the Company. Votes Calculation Agree Against Abstain/No Votes1) 23,799,000,943 shares or 99.985% 3,060,285 shares or 0.013% 476,875 shares or 0.002% Total Majority Votes and Agree Votes = 23,799,477,818 shares or 99.987% Agenda 3 Appointment of Public Accounting Firm for Financial Year 2017 and The Decision on its Honorarium and other Requirements related to the Appointment 1. To approve the appointment of Angelique Dewi Daryanto, S.E, CPA as Public Accountant and Public Accounting Firm “Tanudiredja, Wibisana, Rintis & Rekan” (a member firm of PricewaterhouseCoopers Global in Indonesia) as a Public Accounting Firm registered in the Financial Services Authority, or other Public Accountant from the same Public Accounting Firm in the event that the respective Accountant is unable to conduct the audit on Company’s Financial Statement for financial year 2017. 2. Delegation of the AGMS to the Board of Commissioners to appoint another Public Accounting Firm, if there is an objection from the OJK to the appointment of Public Accounting Firm “Tanudiredja, Wibisana, Rintis & Rekan” or the said Public Accounting Firm performed a partnership restructuring to become a different Public Accounting Firm; 3. To approve the proposed honorarium of the Public Accounting Firm for financial year 2017, as follows: a. The Company’s annual audit fee of Rp7,220,000,000; b. The Audit fee of Subsidiary (PT CIMB Niaga Auto Finance) amounting to Rp1,080,000,000; 4. Authorized the Board of Directors of the Company to perform matters deemed necessary in connection with the appointment of the Public Accountant, including but not limited to the process of conducting the AGMS and the signing of the appointment letter for Public Accountant and Public Accounting Firm. Realization Realized in 2017 Votes Calculation Agree Against Abstain/No Votes1) 23,602,194,276 shares or 99.158% 199,202,813 shares or 0.837% 1,141,014 shares or 0.005% Total Majority Votes and Agree Votes = 23,603,335,290 shares or 99.163% 386 Annual Report CIMB NIAGA 2017
  387. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Agenda 4 Determination on the Salary /Honorarium and Allowances for members of Board of Commissioners, Board of Directors, and Sharia Supervisory Board of the Company 1. To approve and determine the amount of salary or honorarium and/or other allowances for the Board of Commissioners and the Sharia Supervisory Board for financial year 2017: a. for all members of the Board of Commissioners, a maximum of Rp19,300,000,000 (gross) per year; b. for all members of the Sharia Supervisory Board, a maximum of Rp1,800,000,000 (gross) per year; c. to delegate the authority to the President Commissioner to determine the amount of salary or honorarium and other allowances for each member of the Board of Commissioners and Sharia Supervisory Board of the Company for the financial year 2017; 2. To approve the amount of tantieme/bonus including Holiday Allowance to all members of the Board of Directors for financial year 2016 maximum Rp67,386,431,863 (gross) per year; 3. To approve the delegation of authority to the Board of Commissioners of the Company to determine the amount of salary or honorarium, bonus/tantieme and other allowances for the Board of Directors and each member of the Board of Directors of the Company for the financial year 2017 provided that the Board of Commissioners shall observe the advice or opinion of the Nomination and Remuneration Committee. Realization Realized in 2017 Votes Calculation Agree Against Abstain/No Votes1) 23,786,057,258 shares or 99.931% 15,563,899 shares or 0.065% 916,946 shares or 0,004% Total Majority Votes and Agree Votes = 23,786,974,204 shares or 99.934% - - Agenda 5 Accountability for the realization of the use of proceeds from the Public Offering of Shelf-Registration Bonds II of Bank CIMB Niaga Phase I Year 2016 (“PUB II 2016”) Reaffirmation of the Independent Director in compliance with Stock Exchange Regulation No. I-A concerning Listing of Shares (Stock) and Equity-Type Securities other than Shares issued by the Listed Company Realization 1. In accordance with POJK No. 30/POJK.04/2015, the AGMS reports on the accountability for the use of proceeds from the Public Offering of Shelf-Registration Bonds II of Bank CIMB Niaga Phase I Year 2016 (“PUB II 2016”). In line with the report that has been submitted to the OJK of Capital Market and the Stock Exchange that up to 31 December 2016 all funds obtained from PUB II 2016 amounting to Rp1,000,000,000,000 entirely have been used for credit expansion in accordance with the plan for the use of funds as disclosed in the Prospectus of PUB II 2016. 2. The Company reaffirms that all of the Directors of the Company have no affiliation relationship with the Controlling Shareholders nor with members of the Board of Commissioners and other members of the Board of Directors, have no concurrent positions other than at controlled subsidiary companies; and no-one has been an insider person at an institution or capital market support organization, whose services are used by the Company. However, to comply with the provisions of Stock Exchange Regulation No. I-A concerning the Listing of Shares (Stock) and Equity-Type Securities in addition to Shares Issued by a Listed Company, it is informed that the elected and appointed Independent Director is Fransiska Oei, the Compliance Director. No decision is made as it is reporting The agenda, realization and decision of the EGMS in 2017 are as follows: Agenda Buyback of the Company’s shares (share buyback) at maximum of 2% of Paid-up Capital Realization 1. To approve the share buyback of the public shareholders and Khazanah Nasional Berhad at a maximum of 2% of paid up capital to be used as a stock-based loyalty program for management and employees (MESOP) with the objective to improve productivity and performance of management and employees, as well as to generate a sense of ownership to the Company. 2. To approve the authorization for the Board of Directors to exercise the share buyback maximum 18 months after the approval of this EGMS and after obtaining approval from the authorities, and at a price deemed satisfactory by the Company but not exceeding the maximum amount of Rp500,000,000,000, including broker dealer commissions and other related costs. 3. In the event that the repurchase of such shares is unenforceable, including due to the objection from the authorities, then this decision shall be void without requiring GMS approval. This decision was changed with the resolution of EGMS on August 24, 2017 Votes Calculation Agree Against Abstain/No Votes1) 23,854,235,635 shares or 99.996% 3,978 shares or 0.001% 948,621 shares or 0.003% Total Majority Votes and Agree Votes = 22,855,184,256 shares or 99.999% 1) In accordance with Article 13 paragraph 13.4 Article of Association of the Company: Abstain or invalid votes is considered not exist and is not counted in determining the number of votes casted at the Meeting, provided that shareholders who do not cast the vote oblige to comply and respect the resolution passed made in relevant agenda of the Meeting. Annual Report CIMB NIAGA 2017 387
  388. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management GENERAL MEETING OF SHAREHOLDERS EGMS on 24 August 2017 In 2017 , CIMB Niaga held its second EGMS on 24 August 2017. The process of organizing the EGMS on 24 August 2017 was as follows: Date & Time 24 August 2017 at 14.15 until 15.25 (local time) Location Locations that are easily accessible to shareholders: Sasando Room Graha CIMB Niaga M floor Jl Jenderal Sudirman Kav.58 South Jakarta 12190. Quorum The EGMS was attended by shareholders and/or their proxies representing 23,683,336,462 shares or 94.24% of the total shares of class A and class B with voting rights issued by the Bank totaling 25,131,606,843. EGMS Chairman Dato’ Sri Nazir Razak, President Commissioner as EGMS Chairman. Attendance of Board of Commissioners including President Commissioner Dato’ Sri Nazir Razak as President Commissioner, and all members of Board of Commissioners and Sharia Supervisory Board were present (except Faturrahman Djamil as a member of the Sharia Supervisory Board who was unable to attend). Attendance of Audit Committee including Chairman Roy Edu Tirtadji as Chairman of Audit Committee was present. Jeffrey Kairupan as Member of Audit Committee was present. Mawar I.R. Napitupulu as Member (Independent Party) of Audit Committee was present. Yap Tjay Soen as Member (Independent Party) of Audit Committee was present. Attendance of Nomination and Remuneration Committee Chairman Pri Notowidigdo as Chairman of Remuneration and Nomination Committee was present. Attendance of Risk Oversight Committee Chairman Zulkifli M. Ali as Chairman of Risk Oversight Committee was present. Attendance of Board of Directors including President Director Tigor M. Siahaan as President Director and all Board of Directors members were present. Attendance of Compliance Director Fransiska Oei as Compliance Director was present. Independent Party to calculate quorum and votes for AGMS and EGMS resolutions Notary Ashoya Ratam, SH, MKn as Public Notary PT Sirca Datapro Perdana as Share Registrar Total number of shareholders making inquiries and/or giving opinions at the AGMS and EGMS 1 (one) shareholder raised a question at the EGMS on the third Agenda. Procedures for EGMS resolutions The decision-making mechanism other than the first agenda of the EGMS is conducted by deliberations to consensus, but in order to increase the independence and confidentiality of shareholders in the process of giving voting rights in accordance with the OJK recommendations related to corporate governance, then the decision-making is conducted in private. 388 Annual Report CIMB NIAGA 2017
  389. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report The implementation stages of the EGMS on 24 August 2017 were as follows : Description Implementation Provision Notice of EGMS to the Regulator Notice of EGMS to the Financial Services Authority (OJK) and the Indonesia Stock Exchange (IDX) (e-Reporting) dated 4 July 2017 Notice of the date and the agenda of the GMS, which is disclosed clearly and in detail must be submitted no later than 5 (five) working days prior to the date of the announcement of the GMS to the public. EGMS Announcement • Announced in Investor Daily on July 11, 2017. • Proof of announcement submitted to OJK (hardcopy and e-Reporting via SPE OJK) and IDX (e-Reporting via IDXNet) on the same day • Uploaded on the website of the Bank: www. cimbniaga.com on the same day • Announcement was made 14 days before the EGMS summon Presented in 1 (one) Indonesia language national newspaper, IDX’s website and Bank official website no later than 14 (fourteen) days prior to the GMS summon. Information Disclosure •Announced the changes in Information disclosure in relation to the changes in the implementation of the share buyback plan by the Company in Suara Pembaruan dated 18 July 2017 • Re-announcing EGMS on the same day. Presented at the same time as the GMS announcement Recording Date of Shareholders List entitled to attend the GMS •1 (one) working day prior to the GMS summons, specifically on 25 July 2017. Summons along with explanation of EGMS events • Announced in Investor Daily on 26 July 2017. • Proof of summons announcement submitted to OJK (hardcopy and e-Reporting via SPE OJK) and IDX (e-Reporting via IDXNet) on the same day • Uploaded on the website of the Bank: www. cimbniaga.com on the same day • Summons was conducted 28 days prior to the EGMS Implementation of EGMS Result Summary EGMS Proof of announcement shall be submitted to OJK by no later than 2 (two) working days after the announcement of the GMS, and submitted to the IDX on the same day as the announcement date Presented in 1 (one) Indonesia language newspaper, IDX’s website and Bank official website no later than 21 (twenty one) days prior to the GMS. Proof of summons announcement submitted to OJK by no later than 2 (two) working days after the announcement of the GMS, and submitted to the IDX on the same day as the announcement date. 24 August 2017 The summary of GMS results shall be announced no later than 2 (two) working days after the GMS is held. Publications in Newspapers • Announced in Investor Daily newspaper on 25 August 2017 • The publication of the summary of minutes (results) in the newspaper was announced 1 working day after the EGMS Publication on the Bank’s official Website • Brief of resolutions and resumes of the EGMS prepared by Notary were uploaded on the Bank’s official website: www.cimbniaga.com on 24 August 2017. • Publication of the resume on the Bank’s official website was uploaded on the same day as the EGMS Report to the Regulators • Report on the resolution and proof publication on the summary of minutes of EGMS to OJK (hardcopy and e-Reporting via SPE OJK) and IDX (e-Reporting via IDXNet) on 25 August 2017 • Report submitted 1 working day after the EGMS Report on the results of the GMS shall be submitted to OJK and IDX no later than 2 (two) working days after the GMS in held, supplemented by a resume of a GMS decision issued by a Notary. • Deed of Minutes of the EGMS was submitted to OJK on 14 September 2017 • Deed of Minutes submitted 14 working days after the EGMS. Deed of Minutes of the GMS to be submitted to OJK no later than 14 (fourteen) working days after the holding of the GMS. Minutes of EGMS Annual Report CIMB NIAGA 2017 Proof of publication of the summary of minutes of GMS is submitted to OJK no later than 2 (two) working days after the announcement of the GMS and submitted to the IDX’s on the same day as the announcement date. 389
  390. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management GENERAL MEETING OF SHAREHOLDERS VOTE COUNTING PROCESS Disclosure of vote counting and voting procedures for the EGMS dated 24 August 2017 is explained in Rules of Meeting distributed to shareholders and read out by the Corporate Secretary prior to the commencement of the EGMS . Full disclosure of the vote counting and voting procedures is set out in the Meeting Rules, which was announced/uploaded on the Bank’s official website in conjunction with the EGMS summons. INDEPENDENT PARTY TO CALCULATE VOTES CIMB Niaga has appointed independent parties namely Notary Ashoya Ratam, SH, MKn as Public Notary and PT Sirca Datapro Perdana as the Share Registrar in conducting calculations and/or vote validation. Resolution and Realization of the EGMS on 24 August 2017 Agenda 1 Approval of changes to the composition of the Board of Commissioners and Board of Directors of the Company 1. To approve the resignation of Ahmad Zulqarnain Onn from his position as Commissioner of the Company effective as of the close of this Meeting, accompanied by acknowledgment and appreciation for his contribution and dedication during his tenure as a Commissioner of the Company; The release and discharge for his supervisory action that has been carried out since his last release and discharge up to the effective date of his resignation shall be sought for approval at the 2017 AGMS meeting to be held in 2018. Realization Realized in 2017 2. To approve the appointment of Tengku Dato ‘Sri Zafrul Tengku Abdul Aziz as Commissioner of the Company, with effective term of office starting from the approval of the OJK on the fit and proper test (“Effective Date”) up to the close of the 4th AGMS after the Effective Date, without prejudice to the right of the GMS to terminate at any time in accordance with the provisions of Article 119 of Law No. 40 Year 2007 regarding Limited Liability Company (“UUPT”). In the event that the OJK does not give consent, or the requirements stipulated by the OJK for the appointment are not met, then the appointment becomes null and void without any GMS’s approval required. 3. To approve the appointment of Rahardja Alimhamzah as Director of the Company, with effective term of office starting from the close of the Meeting (“Effective Date”) up to the close of the 4th AGMS after the effective date, without prejudice to the right of the GMS to terminate at any time pursuant to Article 105 UUPT. Thus the composition of the Board of Commissioners (since the effective appointment of Tengku Dato ‘Sri Zafrul Tengku Abdul Aziz), namely obtaining OJK approval and the composition of the Board of Directors of the Company (since the effective appointment of Rahardja Alimhamzah) is as follows: Board of Commissioners: - Dato’ Sri Nazir Razak, President Commissioner - Glenn Muhammad Surya Yusuf, Vice President Commissioner - Zulkifli M. Ali, Independent Commissioner - Pri Notowidigdo, Independent Commissioner - Armida Salsiah Alisjahbana, Independent Commissioner - Jeffrey Kairupan, Independent Commissioner - David Richard Thomas, Commissioner - Tengku Dato’ Sri Zafrul Tengku Abdul Aziz, Commissioner Board of Directors: - Tigor M. Siahaan, President Director - Wan Razly Abdullah, Director - Rita Mas’oen, Director - Megawati Sutanto, Director - Vera Handajani, Director - John Simon, Director - Lani Darmawan, Director - Pandji P.Djajanegara, Director - Hedy Lapian, Director - Fransiska Oei, Director Kepatuhan (Independent) - Rahardja Alimhamzah, Director Votes Calculation Resignation of Ahmad Zulqarnain Onn as Commissioner of the Company Agree Against Abstain/No Votes1) 23,567,104,718 shares or 99.51% 1,769,278 shares or 0.0075% 114,462,466 shares or 0.48% Total Majority Votes: 23,681,567,184 shares or 99.992% (Agree) 390 Annual Report CIMB NIAGA 2017
  391. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Votes Calculation Appointment of Tengku Dato ’ Sri Zafrul Tengku Abdul Aziz as Commissioner of the Company Agree Against Abstain/No Votes1) 23,669,600,003 shares or 99.94% 1,769,278 shares or 0.0075% 11,967,181 shares or 0.05% Total Majority Votes: 23,681,567,184 shares or 99.992% (Agree) Votes Calculation Appointment of Rahardja Alimhamzah as Director of the Company Agree Against 23,649,051,303 shares or 99.86% 1,769,278 shares or 0.0075% Abstain/No Votes1) 32,515,881 shares or 0.14% Total Majority Votes: 23,681,567,184 shares or 99.992% (Agree) Agenda 2 Approval of the amendment to the Articles of Association of the Company Realization 1. To approve amendment of a number of articles of the Company’s Articles of Association and subsequently restatement all the Company’s Articles of Association. 2. To approve the granting of authorities to the Board of Directors of the Company, with the right of substitution to restate the resolution concerning the amendment and restatement of all provisions of Articles of Association of the Company in the Notarial Deed and report it to the competent authorities, and with due regard to the foregoing to act all necessary matters including additions and/or adjustments with due regard to the provisions of laws and regulations. Realized in 2017 Votes Calculation Agree Against Abstain/No Votes1) 23,661,379,108 shares or 99.91% 18,892,478 shares or 0.08% 3,064,876 shares or 0.01% Total Majority Votes and Agree Votes = 23,664,443,894 shares or 99.92% (Agree) Agenda 3 Revision to the Approval of Share Buyback Plan Realization 1. To approve the changes on share buyback plan and the implementation of stock-based loyalty program for management and employees (MESOP) which has been approved in the EGMS dated 25 April 2017. 2. To approve the share buyback from public shareholders up to a maximum of 2% of the Paid-up Capital or a maximum of 503,000,000 (five hundred and three million) shares, at a maximum cost of Rp500,000,000,000 (five hundred billion Rupiah) which includes broker-dealer commissions and other costs incurred in connection with the purchase, to be used as a stock-based loyalty program for management and employees in the Employee and Management Ownership Program in the form of: (i) Shares Grant, and (ii) Management Employee Stock Ownership Plan (“ MESOP “). 3. To grant authority to the Board of Directors of the Company to exercise share buyback pursuant to prevailing regulations including Capital Market regulations within 12 months from the close of the Meeting. 4. To grant authority to the Board of Directors of the Company to determine the eligibility criteria with the terms and conditions of the stock-based loyalty program. 5. In the event that the share buyback may not be executed by any reason, including not obtaining approval from authorities, this decision shall be void without the need for approval from the GMS. On December 31, 2017, the Bank conducted share buyback of the Company’s shares amounting to 194,407,492 (one hundred ninety four million four hundred and seven thousand four hundred and ninety two) shares to be used as MESOP. The implementation process of share buyback will be continued in 2018 by taking into account the deadline according to the EGMS decision and the implementation of MESOP will be done after the completion of the buyback process. Votes Calculation Agree Against Abstain/No Votes1) 23,682,776,608 shares or 99.9976% 474,878 shares or 0.0020% 84,976 shares or 0.0004% Total Majority Votes and Agree Votes = 23,682,861,584 shares or 99.998% (Agree) 1) In accordance with Article 13 paragraph 13.4 Article of Association of the Company: Abstain or invalid votes is considered not exist and is not counted in determining the number of votes casted at the Meeting, provided that shareholders who do not cast the vote oblige to comply and respect the resolution passed made in relevant agenda of the Meeting. Annual Report CIMB NIAGA 2017 391
  392. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management GENERAL MEETING OF SHAREHOLDERS RESOLUTIONS AND REALIZATION OF THE RESULT OF THE PREVIOUS ANNUAL GMS The resolutions and realization of the previous Annual GMS are as follows : Agenda 1 Approval on Company’s Annual Report and Ratification of the Company’s Financial Statement for the year ended 31 December 2015 Realization To approve and duly accept the Annual Report of the Company for the financial year of 2015, including Supervisory Report of the Board of Commissioners and the Sharia Supervisory Board and to ratify the consolidated Financial Statements of the Company and its subsidiaries for financial year 2015, which was audited by Public Accounting Firm Tanudiredja, Wibisana, Rintis & Rekan (a member firm of PricewaterhouseCoopers Global in Indonesia) with the opinion that “The Consolidated Financial Statements present fairly, in all material respects, the consolidated financial position of PT Bank CIMB Niaga Tbk and its Subsidiaries ended on the 31 December 2015, the consolidated performance and their cash flows for the year end at the above mentioned date is in accordance with the Financial Accounting Standards in Indonesia” as stated in its report dated 24 February 2016; Realized in 2016 By the approval of the Annual Report for the financial year of 2015, and the ratification of the consolidated financial year of 2015, therefore in accordance with the provisions of Article ii paragraph 11.6 of the Articles of Association of the Company, the Meeting also gives a complete acquittal and discharge to all members of the Board of Directors of the Company (including member of the Board of Commissioners that have resigned within the financial year 2015) for all management actions during the financial year 2015, and all members of Board of Commissioners of the Company for all supervisory actions during the financial year 2015, as far as such actions were reflected in the Company’s Annual Report and Consolidated Financial Statements for the financial year 2015, except for the act of fraud, embezzlement and other criminal acts. Votes Calculation Agree Against Abstain 24,618,723,016 shares or 100% Nil Nil Agenda 2 The determination of the Company’s use of profits for the financial year ended 31 December 2015 Realization To approve the appropriation of the Company’s Net Profit for the financial year 2015 in the total amount approximately Rp427,831,000,000 (four hundred twenty seven billion eight hundred thirty one million Rupiah) with the following details: Realized in 2016 The Company does not set aside the compulsory reserves from the net profit for financial year 2015, as the Company’s compulsory reserve has complied with the minimum compulsory reserve requirement in accordance with Article 70 Law No.40 of 2007 on Limited Liability Companies. No dividend is distributed for the financial year 2015. Therefore, the Company’s net profit for the financial year 2015 will be recorded as retained earnings, and will be used to strengthen the Company’s capital in order to finance the Company’s business activities. Votes Calculation 392 Agree Against Abstain 24,618,723,016 shares or 100% Nil Nil Annual Report CIMB NIAGA 2017
  393. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Agenda 3 The appointment of the Company ’s Public Accounting Firm for the fiscal year 2016 and the determination of honorarium, as well as other terms concerning such appointment To approve the reappointment of the Public Accounting Firm “TANUDIREDJA, WIBISANA, RINTIS & Rekan” (a member firm of PricewaterhouseCoopers Global in Indonesia) as the Public Accountant to audit the Consolidated Financial Statements of the Company for the financial year 2016, and approved the delegation of authority to the Board of Commissioners of the Company to determine the amount of honorarium and other reasonable appointment requirements for such Public Accounting Firm. Realization Realized in 2016 Approved the delegation of authority to the Board of Commissioners of the Company to appoint another Public Accounting Firm to audit the Company’s Consolidated Financial Statements for the financial year 2016, in the event of objections from the Financial Services Authority (“OJK”) to the appointment of the Public Accounting Firm “TANUDIREDJA, WIBISANA, RINTIS & Rekan “; or the Public Accounting Firm “TANUDIREDJA, WIBISANA, RINTIS & Rekan” perform partnership restructuring to become a different Public Accounting Firm With respect to the delegation of such authority, provisions applied that the other appointed Public Accounting Firm must be one of the four big public accounting firms in Indonesia; the honorarium and other appointment requirements must be set competitively and reasonably; and not be contrary to applicable laws and regulations. Votes Calculation Agree Against Abstain 24,618,723,016 shares or 100% Nil Nil Agenda 4 Changes to the Board’s structure including the Sharia Supervisory Board of the Company 1. To ratify the resignation of Mr. Lo Nyen Khing from his position as Vice President Director of the Company effective since 31 July 2015, and Mr. Harjanto Tanuwidjaja from his position as Director of the Company effective since 1 December 2015 with acknowledgments and high appreciation for their contribution and dedication during their tenure as the Vice President Director and Director of the Company. Realization Realized in 2016 2. To approve the appointment of the Board of the Company, namely: Section A a. Board of Commissioners: - Dato ‘Sri Nazir Razak as President Commissioner - Mr. Glenn Muhammad Surya Yusuf, as Vice President Commissioner - Mr. Zulkifli M. Ali, as Commissioner, also Independent Commissioner - Mr. Pri Notowidigdo, as Commissioner, also Independent Commissioner - Ms. Armida Salsiah Alisjahbana, as Commissioner, also Independent Commissioner - Mr. Jeffrey Kairupan, as Commissioner, also Independent Commissioner Section B b. Board of Directors: - Mr. Wan Razly Abdullah, as Director - Ms. Rita Mas’oen, as Director - Ms. Megawati Sutanto, as Director - Ms. Vera Handajani, as Director - Ms. Lani Darmawan, as Director - Mr. Pandji Pratama Djajanegara, as Director - Mr. Rahardja Alimhamzah, as Director - Ms. Hedy Maria Helena Lapian, as Director - Ms. Fransiska Oei Lan, as Director, also Director of Compliance Section C c. Sharia Supervisory Board - Mr. M. Quraish Shihab, as Chairman - Mr. Fathurrahman Djamil, as member - Mr. Yulizar Djamaluddin Sanrego, as member The appointment shall be effective as of the date specified in the OJK approval letter and/or fulfillment of the requirements stipulated in the letter of the OJK, except for the reappointment of the members of the Board of Commissioners, Board of Directors and Sharia Supervisory Board previously served, will be effective after the close of the Meeting (“Effective Date”) up to the close of the 4th Annual General Meeting of Shareholders after the Effective Date, provided that if the OJK does not approve the appointment or the conditions stipulated by the OJK are not met, then such appointment becomes null and void without the need for GMS approval. Annual Report CIMB NIAGA 2017 393
  394. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management GENERAL MEETING OF SHAREHOLDERS Votes Calculation Section A Appointment Agree Against Abstain Mohamed Nazir Bin Abdul Razak (Also called Dato’ Sri Nazir Razak) as President Commissioner 24,618,708,738 shares or 99.999942% (after deducting abstentions) 400 shares or 0.0000016% 13,878 shares Glenn Muhammad Surya Yusuf as Vice President Commissioner 24,618,708,738 shares or 99.999942% (after deducting abstentions) 400 shares or 0.0000016% 13,878 shares Zulkifli Bin Mohd Ali as Commissioner and also Independent Commissioner 24,618,708,738 shares or 99.999942% (after deducting abstentions) 400 shares or 0.0000016% 13,878 shares Pri Notowidigdo as Commissioner and also Independent Commissioner 24,618,709,138 shares or 100% (after deducting abstentions) Nil 13,878 shares Armida Salsiah Alisjahbana as Commissioner and also Independent Commissioner 24,618,709,138 shares or 100% (after deducting abstentions) Nil 13,878 shares Jeffrey Kairupan as Commissioner and also Independent Commissioner 24,618,709,138 shares or 100% (after deducting abstentions) Nil 13,878 shares Votes Calculation Section B Appointment Agree Against Abstain Wan Razly Abdullah Bin Wan Ali as Director 24,615,781,838 shares or 100% (after deducting abstentions) Nil 2,941,178 shares Rita Mas’Oen as Director 24,615,761,838 shares or 99,987972% (after deducting abstentions) 20,000 shares or 0.000081% 2,941,178 shares Megawati Sutanto as Director 24,615,781,838 shares or 100% (after deducting abstentions) Nil 2,941,178 saham Vera Handajani as Director 24,615,795,716 shares or 100% (after deducting abstentions) Nil 2,927,300 shares Lani Darmawan as Director 24,615,761,838 shares or 100% (after deducting abstentions) Nil 2,961,178 shares Pandji Pratama Djajanegara as Director 24,615,781,838 shares or 100% (after deducting abstentions) Nil 2,941,178 shares Rahardja Alimhamzah as Director 24,615,781,838 shares or 100% (after deducting abstentions) Nil 2,941,178 shares Hedy Maria Helena Lapian as Director 24,615,781,838 shares or 100% (after deducting abstentions) Nil 2,941,178 shares Fransiska Oei Lan as Director 24,615,795,716 shares or 100% (after deducting abstentions) Nil 2,927,300 shares Votes Calculation Section B 394 Appointment Agree Against Abstain M. Quraish Shihab as Chairman 24,615,795,716 share or 100% (after deducting abstentions) Nil 2,927,300 shares Fathurrahman Djamil as Member 24,615,781,838 shares or 100% (after deducting abstentions) Nil 2,941,178 shares Yulizar Djamaluddin Sanrego as Member 24,615,71,838 shares or 100% (after deducting abstentions) Nil 2,961,178 shares Annual Report CIMB NIAGA 2017
  395. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Agenda 5 Determination of salaries /honorarium and other allowances for the Board of Commissioners, Board of Directors and Sharia Supervisory Board of the Company To approve the amount of salary/honorarium and allowances of the Board of Commissioners and Board of Directors, as well as the Sharia Supervisory Board for the financial year 2016 as follows: Realization Realized in 2016 The amount of salary/honorarium and allowances for all members of the Board of Commissioners, which is a maximum of Rp20,765,983,144, -gross per year; Approved the delegation of authority to the Board of Commissioners to determine the: i. salary/honorarium and allowances for all members of the Sharia Supervisory Board for the financial year 2016; ii. salary/honorarium and other allowances, as well as the amount of bonus/tantieme budgeted for all members of the Board of Directors for the financial year 2016; Provided that the Board of Commissioners considers the advice/opinion given by the Nomination and Remuneration Committee. Votes Calculation Agree Against Abstain 24,618,723,016 shares or 100% Nil Nil Agenda 6 Approval of Amendment to Company’s Articles of Association To approve the amendment of provision of Article 15 paragraph 15.5 of The Articles of Association of the Company to become: 2 (two) members of the Board of Directors jointly, are entitled and authorized to represent the Board of Directors and therefore act for and on behalf of, and legally represent the Company. Realization Realized in 2016 To approve the delegation of authorities to the Board of Directors of the Company, with the right of substitution, to restate the resolution regarding the amendment of the provisions of the Articles of Association of the Company in notarial deed and notify it to the applicable authorities and in relation to the matters to carry out necessary actions in accordance with the provisions of applicable legislation. Votes Calculation Agree Against Abstain 24,618,723,016 shares or 100% Nil Nil Agenda 7 Integrated Financial Conglomeration Report & Report of Dismissal and Appointment of Committee Members at the Board of Commissioners Level In accordance with Financial Services Regulation (“POJK”) No.17/POJK.03/2014 and POJK No.18/POJK.03/2014, the Company reported on the establishment of Integrated Financial Conglomeration from CIMB Indonesia. The CIMB Group, as the ultimate shareholder of the Financial Conglomeration in a single group or business group in Indonesia, has appointed the Company as the Main Entity, and established Financial Services Institutions as members of the Conglomeration. Realization No decision was made, only reporting The Company reported the termination of the term of office of Committee members at the Board of Commissioners level and also reports the appointment of members of the Committee at the Board of Commissioners level effective the close of the Meeting until the close of the fourth Annual General Meeting of Shareholders. Annual Report CIMB NIAGA 2017 395
  396. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Board of Commissioners CIMB Niaga ’s Board of Commissioners is a corporate governance organ that performs oversight on the Bank’s management activities to ensure that the Bank conducts its business in accordance with its established objectives. The Board of Commissioners oversees and advises on the implementation of the duties and responsibilities of the Board of Directors and other functions set forth in the Articles of Association and the rules and regulations. In the conduct of its duties and responsibilities, the Board of Commissioners must act in an independent manner. LEGAL REFERENCES The legal basis for the appointment of the Board of Commissioners of CIMB Niaga refers to several regulations, including: 1. Law No. 40 year 2007 on Limited Liability Companies. 2. Law No. 7 year 1992 on Banking as amended by Law No. 10 year 1998 3. The Articles of Association 4.Regulation of Bank Indonesia (PBI) No. 11/1/ PBI/2009, dated 27 January 2009, concerning Commercial Banks 5. PBI No. 13/27/PBI/2011, dated 28 December 2011, concerning amendment to PBI No. 11/1/PBI/2009, concerning Commercial Banks 6. Regulation of Financial Services Authority (POJK) No. 33/POJK.04/2014, dated 8 December 2014, regarding the Board of Directors and Board of Commissioners of Issuers or Listed Companies 7. POJK No. 27/POJK.03/2016, dated 22 July 2016, regarding Fit and Proper Test for Main Party of Financial Services Institution 8. Circular of Financial Services Authority (SEOJK) No. 39/SEOJK.03/2016, dated 13 September 2016 regarding Fit and Proper Test for Candidate Ultimate Shareholders, Candidate Members of the Board of Directors and Candidate Members of the Board of Commissioners of the Bank 9. POJK No. 18/POJK.03/2016, dated 16 March 2016, concerning Implementation of Risk Management for Commercial Banks 10.POJK No. 37/POJK.03/2017, dated 12 July 2017, concerning the Hiring of Expatriates and Knowledge Transfer Program in the Banking Sector 11.Deed No. 35, dated 24 August 2017, regarding Resolution of the Extraordinary General Meetings of the Shareholders of PT Bank CIMB Niaga Tbk. 396 BOC STRUCTURE AND COMPOSITION CIMB Niaga has complied with all prevailing regulations as stipulated in the Board of Commissioners Charter, namely: 1. The total of members of the Board of Commissioners of CIMB Niaga is at least 3 (three) persons and not more than the number of members of the Board of Directors. 2. The Board of Commissioners of CIMB Niaga is chaired by a President Commissioner, namely Dato’ Sri Nazir Razak. 3.One or more may be appointed Vice President Commissioner. The position of Vice President Commissioner is held by Glenn Muhammad Surya Yusuf. 4.At least 1 (one) member of the Board of Commissioners is be domiciled in Indonesia: CIMB Niaga has 4 (four) members of the Board of Commissioners domiciled in Indonesia. 5. 4 (four) of 8 (eight) persons, or 50% (fifty percent) of the members of the Board of Commissioners, are Independent Commissioners. 6. 4 (four) of 8 (eight) persons, or 50% (fifty percent) of the members of the Board of Commissioners, are Indonesian Citizens. 7. The replacement and/or appointment of members of the Board of Commissioners of CIMB Niaga has considered the recommendations of the Nomination and Remuneration Committee and obtained the approval of the GMS and OJK. 8. All Commissioners of CIMB Niaga have no family relationship up to the second degree with other members of the Board of Commissioners and/or Board of Directors. 9. All members of the Board of Commissioners of the Bank have passed the Fit and Proper Test, including 1 (one) Commissioner, namely Tengku Dato’ Sri Zafrul Tengku Abdul Aziz, who passed the Fit and Proper Test and effectively began serving on 16 March 2018. In line with the principles of the ASEAN Corporate Governance Scorecard, the composition of the Board of Commissioners is as follows: 1.1 (one) female member of the Board of Commissioners, Armida Salsiah Alisjahbana, who is an Independent Commissioner. (ASEAN CG principle: minimum 1 (one) female Independent Commissioner). 2. In terms of expertise, the majority of members of the Board of Commissioners have working experience in banking. Annual Report CIMB NIAGA 2017
  397. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report In 2017 , the members of the Board of Commissioners of CIMB Niaga were as follows: No. Name Position 1 Dato’ Sri Nazir Razak President Commissioner 2 Glenn Muhammad Surya Yusuf Vice President Commissioner 3 Pri Notowidigdo Independent Commissioner 4 Zulkifli M. Ali Independent Commissioner 5 David Richard Thomas Commissioner 6 Armida Salsiah Alisjahbana Independent Commissioner 7 Jeffrey Kairupan Independent Commissioner 8 Ahmad Zulqarnain Onn*) Commissioner 9 Tengku Dato’ Sri Zafrul Tengku Abdul Aziz**) Commissioner *) Resigned from BOC effective since the Extraordinary GMS 24 August 2017 **) Appointed in the Extraordinary GMS 24 August 2017 and effective began as Commissioner on 16 March 2018 BOC DUTIES, RESPONSIBILITIES AND AUTHORITY In performing its functions, the Board of Commissioners must act and be responsible collegially, assisted by the Audit Committee, the Risk Oversight Committee, the Nomination and Remuneration Committee and the Integrated Corporate Governance Committee in their respective areas. The duties, responsibilities and authority of the Board of Commissioners are applicable to each member of the Board of Commissioners. 1. Each member of the Board of Commissioners must not act individually, but on the basis of a mutual decision of the Board of Commissioners. 2. The Board of Commissioners must perform its duties and responsibilities in good faith, with full responsibility, and have prudent principles and independence. 3.The Board of Commissioners must ensure the implementation of Good Corporate Governance in each business activity of the Bank and at all organizational levels through: a. the implementation of the duties and responsibilities of the Board of Commissioners and the Board of Directors. b. completeness and execution of the duties of the Committees and working units exercising the Bank’s internal control functions. c. execution of compliance function, internal audit and external audit. d. implementation of risk management, including internal control system. e.provision of funds to related parties and provision of large funds. f. the Bank’s strategic plan. Annual Report CIMB NIAGA 2017 g. transparency of the Bank’s financial and nonfinancial condition. h.Approval and regular review of the Bank’s vision, mission and values. 4. The Board of Commissioners has the responsibility to oversee management policy, general management process and is responsible for such oversight and gives advice to the Board of Directors. 5.In conducting the oversight duties as referred to in number (3) and (4) above, the Board of Commissioners must direct, monitor and evaluate the implementation of the Bank’s strategic policy pursuant to the regulations. 6. In the event that there is only a single member of the Board of Commissioners, all duties and authority granted to the President Commissioner or other members of the Board of Commissioners in the Articles of Association will automatically apply to him/her. 7. The Board of Commissioners is prohibited from engaging in decision-making of Bank operations, except for: a.provision of funds to related parties as stipulated in the Financial Services Authority (OJK) regulation concerning the Legal Lending Limit for Commercial Banks. b.other matters specified in the Articles of Association or in the prevailing rules and regulations. 8. Decision making by the Board of Commissioners as referred to in number (7) above is part of the oversight duties of the Board of Commissioners so as not to negate the Board of Directors’ responsibility for management of the Bank. 397
  398. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management BOARD OF COMMISSIONERS 9 .The Board of Commissioners approves and monitors the implementation of strategy, the Business Plan, and Bank policies in accordance with prevailing regulations, including the establishment and implementation of the strategies of AntiFraud, Anti Money Laundering and CounterTerrorism Financing (AML - CFT), Whistleblowing, Integrated Corporate Governance, Related Party Transaction, Minimum Lending Limit (BMPK), and other Bank strategies in accordance with prevailing regulations. 10. Through the Nomination and Remuneration Committee, the Board of Commissioners exercises supervision of the selection and assessment of candidate members of the Board of Directors and Board of Commissioners without interference. 11.The Board of Commissioners must ensure that the Board of Directors has followed up on audit findings and recommendations from the Bank’s internal audit unit, external auditor, monitoring results from the OJK and/or other authorities. 12.The Board of Commissioners must notify the OJK no later than 7 (seven) working days upon finding any: a. violation of laws and regulations in finance and banking. b.circumstances or projected circumstances that may compromise the sustainability of the Bank’s business. 13.In order to support the effectiveness of its duties and responsibilities, the Board of Commissioners must establish the following: a. Audit Committee. b. Risk Oversight Committee. c. Nomination and Remuneration Committee. 14.The Board of Commissioners must supervise the established Committees, as referred to in point (13) above, so they perform their duties effectively, and must evaluate and/or assess the performance of such committees at the end of each fiscal year. 15.The Board of Commissioners must exercise active oversight of compliance function by: a. Evaluating the conduct of the Bank’s compliance at a minimum of 2 (twice) a year. b. Providing suggestions in order to improve the quality of the Bank’s compliance. 398 16.Based on Point (15), the Board of Commissioners makes recommendations for improving the quality of compliance function to the President Director. 17.The Board of Commissioners is responsible for ensuring the implementation of Risk Management in accordance with the Bank’s characteristics, complexity and risk profile by: a. approving risk management policy including risk management strategy and framework which is determined based on the Bank’s risk appetite and risk tolerance. b. evaluating risk management policies and risk management strategy at least once a year, or more frequently, in the event of significant changes in factors affecting the Bank’s business activities. 18.Every member of the Board of Commissioners must be jointly responsible for any loss due to errors or negligence of members of the Board of Commissioners in performing their duties. 19.The members of the Board of Commissioners must not be liable for losses of the Bank as referred to in Point (18) if it is proven that: a. the loss is not due to any errors or negligence. b.the Board of Commissioners has performed oversight in good faith, with full responsibility and prudent principles for the interests of, and in accordance with the Bank’s objectives. c. there is no direct or indirect conflicts of interests in management activities resulting in a loss. d. the Board of Commissioners has taken action to prevent such loss from being incurred and remaining incurred. A member of the Board of Commissioners, 20. appointed by the Board of Commissioners must lead the General Meetings of the Shareholders (GMS). 21.In the event that all members of the Board of Commissioners are absent or unavailable for any reason, which does not have to be proven to third parties, the GMS should be led by the President Director. 22.In performing its duties, the Board of Commissioners reserves the right to seek the assistance of experts for a limited period of time. Annual Report CIMB NIAGA 2017
  399. Supporting Business Review Corporate Governance Report Corporate Social Responsibility 23 .The Board of Commissioners, based on decision of a Board of Commissioners meeting is authorized to temporarily dismiss members of the Board of Directors by stating the reasons. In the event that a member of the Board of Directors is temporarily dismissed, the Board of Commissioners must convene the GMS within 90 (ninety) days after the date of such dismissal, to revoke or enforce the decision of such dismissal. 24.The Board of Commissioners may undertake Bank management action under certain circumstances and for a certain period of time. In such case, all provisions concerning the rights, authority and responsibilities of the Board of Directors to the Bank and third parties will apply. 25.The Board of Commissioners is, at all times within office hours, entitled to enter the building, the yards, or other premises used or controlled by the Bank, and is entitled to inspect all records, letters and other evidence, to examine and check the condition of the cash and others, as well as to acknowledge any action taken by the Board of Directors. 26.The Board of Commissioners is entitled to an explanation of all matters relating to the operations of the Bank and its subsidiaries and matters relating to the Bank’s ethics. 27.The Board of Commissioners must ensure that the Board of Directors maintains and implements the Financial Literacy and Financial Inclusion plans. 28.The Board of Commissioners must prepare the succession plan of the Chief Executive Officer (CEO)/President Director and key management for the Bank’s continuous succession of future leadership. ROLES AND RESPONSIBILITIES OF THE PRESIDENT COMMISSIONER In addition to the duties and responsibilities mentioned above, the President Commissioner has additional duties and responsibilities as follows: 1.Coordinate the implementation of duties and responsibilities of the Board of Commissioners; 2.Propose to hold meetings of the Board of Commissioners, including the agenda of the meetings; 3.Summon and lead meetings of the Board of Commissioners; Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report 4. Submit the oversight report for approval of the Annual GMS on the execution of duties and oversight of the Board of Commissioners; 5.Ensure that the responsibilities of the Board of Commissioners have been carried out in accordance with the proper procedure; 6.Ensure that Board of Commissioners meetings make effective decisions based on correct and complete information, ensuring that: a. all strategic and important issues are taken into consideration by the Board of Commissioners. b.existing issues are carefully and thoroughly discussed. c. all members of the Board of Commissioners are given the opportunities to contribute effectively. each Commissioner receives relevant d. information in a timely manner, including a brief explanation on issues to be discussed at the Board of Commissioners meeting. e. the meetings of the Board of Commissioners make clear decisions and are recorded in the minutes. 7. Ensure that the Board of Commissioners behaves in accordance with the Charter of the Board of Commissioners. 8. Lead efforts to meet the development needs of the Board of Commissioners. 9. Carry out other responsibilities assigned by the Board of Commissioners, from time to time. 10.Conduct a final evaluation by taking into account the recommendations of the Nomination and Remuneration Committee on the collective evaluation of the Board of Commissioners and the Committees and individual evaluations of members of the Board of Commissioners and members of the Committees. BOC FOCUS OF SUPERVISION IN 2017 The Board of Commissioners must always perform its oversight duties to ensure the implementation of Good Corporate Governance in all activities in the Bank. The supervisory focus and work plan of the Board of Commissioners are prepared as a mutually agreed guideline and serve as the basis for the agenda of Board of Commissioners meetings and joint Board of Commissioners-Board of Directors meetings. Primary attention is given to achieving business targets with due regard to risk management and prudent principles, and compliance with all prevailing regulations. Through its committees, the Board of 399
  400. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management BOARD OF COMMISSIONERS Commissioners has provided recommendations and feedback on various business aspects and support of the Bank . In addition, members of the Board of Commissioners conduct face-to-face meetings with employees in the provinces during routine events held by the Bank. The Board of Commissioners established the focus on oversight, covering several important aspects in 2017, including: 1.The BOC analysed and provided input, and together with the Board of Directors approved the Bank Business Plan (RBB) including review and approval of RBB revision to be submitted to the OJK in accordance with the timeline stipulated by the OJK which was in November for the following year’s RBB and in June for the revised RBB for the current year. The Board of Commissioners also monitored, analysed and provided input on the Bank’s strategic plan including the development of high-margin business, diversification of sources of income, the growth of low-cost funds, sales and service transformation, increased efficiency, and human resource development. 2. Periodically the Board of Commissioners reviewed the financial performance of the Bank, in each BOC Meeting and/or Committee Meeting and also invited Business Units to submit their respective performances. 3.In line with prevailing regulations, Board of Commissioners active oversight on risk management became its focus, including selfassessment of Bank Rating using Risk Based-Bank Rating (RBBR). During 2017, through the Risk Oversight Committee, the Board of Commissioners monitored risk management, asset quality, Bank’s soundness status, and stress test results. The Board of Commissioners reviewed the Bank’s required risk management policies including the contingency plan policy, and evaluated the conformity of risk management policies with the implementation of such policies. 4. The Board of Commissioners ensured that the Board of Directors had followed up on audit findings and recommendations of the Internal Audit Unit, including improvements to the findings of external auditors and regulators. 400 5. In relation to liquidity both in Rupiah and US Dollars, the Board of Commissioners regularly received the Board of Directors report to get a clear picture of the funding and liquidity structure and Bank’s funding strategy. 6.The Board of Commissioners conducted the renewal of the Board of Commissioners Charter, reviewed the Good Corporate Governance (GCG) Assessment Report and related party transactions to comply with prevailing regulations. 7. The Board of Commissioners received updated reports on Bank’s investments and its achievements in connection with the operations and information technology implemented in 2017. 8. The Board of Commissioners monitored operational risks in the Bank covering non-performing loans (NPLs), impaired loans, and fraud. 9. The Board of Commissioners conducted assessment and approval of the Recovery Plan to be submitted to the OJK prior to 30 December 2017. The Recovery Plan will also be submitted for Shareholders’ approval at the Annual GMS on 24 April 2018. The Board of Commissioners approved the 10. review and recommendations of the Nomination and Remuneration Committee in nominating the members of the Board of Commissioners, Board of Directors, Sharia Supervisory Board and independent parties who will become members of the Audit Committee, Risk Oversight Committee, Nomination and Remuneration Committee and Integrated Corporate Governance Committee. It also included changes related to remuneration and compensation policies for the Board of Commissioners, Board of Directors and Sharia Supervisory Board. 11. Related to Human Resources, the Board of Commissioners, through the Nomination and Remuneration Committee, monitored Human Resources (HR) policies and HR management functions that posed a significant risk to the Bank, as well as supervision in risk management implementation related to outsourcing. 12.Through the Audit Committee and Risk Oversight Committee, the Board of Commissioners evaluated the implementation of the Bank’s compliance function and provided advice, including recommendations to perform a comprehensive review of existing products and new products to be launched. Annual Report CIMB NIAGA 2017
  401. Supporting Business Review Corporate Governance Report Corporate Social Responsibility 13 .The Board of Commissioners conducted oversight and implementation of Integrated Corporate Governance (TKT) in the financial conglomeration of CIMB Indonesia through the Integrated Corporate Governance Committee, by evaluating the implementation of TKT through the assessment of the adequacy of internal control and the implementation of integrated compliance function. 14. In order to support the effectiveness of the execution of the duties and responsibilities of the Board of Commissioners, in each meeting the Board of Commissioners received reports from each Committee, namely the Audit Committee, Risk Oversight Committee, Nomination and Remuneration Committee and Integrated Governance Committee. BOC CHARTER AND WORK GUIDELINES The Board of Commissioners maintains the Board of Commissioners Charter which is always updated and adjusted with the prevailing laws and regulations in Indonesia. This Charter becomes binding work guidelines and procedures for each member of the Board of Commissioners so that the Board of Commissioners can perform its monitoring in an efficient, effective, transparent, independent and accountable manner. The Board of Commissioners Charter was last updated on 19 December 2017 and has been uploaded to the Bank website www.cimbniaga.com. The Board of Commissioners Charter sets forth the following matters: 1. Structure and membership 2. Requirements and Appointment 3. Duties and Responsibilities 4. Conflict of Interests 5.Transparency 6. Ethics and Work Hours 7.Meetings 8. Term of office 9.Resignation 10.Performance Assessment and Accountability The basis for the preparation of the Board of Commissioners Charter is as follows: 1. The Articles of Association 2. Law No. 40, Year 2007 regarding Limited Liability Companies 3. POJK No. 55/POJK.03/2016 on the Implementation of Good Corporate Governance for Commercial Banks Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report 4. SEOJK No. 13/SEOJK.03/2017 on the Implementation of Good Corporate Governance for Commercial Banks 5. POJK No. 32/POJK.04/2015 on the Implementation of Corporate Governance Guidelines for Listed Companies 6.SEOJK No. 32/SEOJK.04/2015 on Corporate Governance Guidelines for Listed Companies 7. POJK No. 33/POJK.04/2014 regarding the Board of Directors and Board of Commissioners of Issuers or Listed Companies 8.Indonesia GCG General Guidelines from the National Committee on Governance Policy (KNKG) 9. ASEAN Corporate Governance Scorecard CRITERIA OF BOC APPOINTMENT The criteria for appointment of members of the Board of Commissioners of CIMB Niaga are based on, among other things, POJK No. 33/POJK.04/2014 on the Board of Directors and Board of Commissioners of Issuers or Listed Companies, POJK No. 27/POJK.03/2016 on Fit and Proper Test for Main Party of Financial Service Institution, SEOJK No. 39/SEOJK.03/2016 on Fit and Proper Test for Candidates Ultimate Shareholders, Candidates Members of Board of Directors, and Candidates Members of the Board of Commissioners of the Bank. Criteria that must be met by candidate members of the Board of Commissioners of CIMB Niaga, are as follows: 1.Have integrity as required in the prevailing regulations to: a. have good morals b.commit to comply with prevailing laws and regulations including Bank rules and regulations and also support the OJK policy c. commit to the development of sound banking operations d. Not be included in the list of those failing the Fit and Proper Test e. be capable of taking legal action 2. Have competencies as required in the prevailing regulations, having: a. sufficient knowledge of the banking industry and relevant to his/her position 401
  402. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management BOARD OF COMMISSIONERS b . experience in banking and/or finance c. knowledge of the duties and responsibilities of the Primary Legal Entity, as well as an understanding of the main business activities and main risks of the Financial Services Institutions in the Bank’s financial conglomerate d.knowledge pertaining to the Indonesian economy, culture and language, for foreign Commissioner candidates 3. Have a good financial reputation, at least within 5 (five) years before appointment and during the term of office, including : a. has no bad credit and/or does not serve as an Ultimate Shareholder, a member of the Board of Commissioners or a member of the Board of Directors of a legal entity having bad credit b. has not been declared bankrupt c. has not been a member of a Board of Directors and/or a member of a Board of Commissioners who has been found guilty of causing a company to be declared bankrupt; d. has not been convicted committing a crime that is detrimental to state finances and/or related to the financial sector e. has not been a member of a Board of Directors and/or member of a Board of Commissioners who during his term of office: i. Has not held an Annual General Meeting of Shareholders. ii.Has caused a company that obtains a license, approval or registration from the Financial Services Authority fail to meet the requirements to submit annual report and/ or financial report to OJK. iii.Have been rejected by the GMS regarding his/her accountability as a member of a Board of Directors and/or Board of Commissioners or has failed to give an accountability report to the GMS as a member of a Board of Directors and/or Board of Commissioners. 402 BOC APPOINTMENT PROCEDURES Candidate members of the Board of Commissioners who have received recommendation from the Bank’s Nomination and Remuneration Committee, are proposed to, and appointed by the Annual GMS of CIMB Niaga. Candidate members of the Board of Commissioners shall be subject to a fit and proper test by the Financial Services Authority through a request made by the Bank. Candidate members of the Board of Commissioners who have not been approved by the Financial Services Authority are prohibited from performing duties as members of the Board of Commissioners of the Bank, regardless of the fact that they have been approved and appointed by the GMS. INDEPENDENCE OF BOC The Board of Commissioners of CIMB Niaga at all times upholds the principle of independence in performing its duties, prioritizes the interests of the Bank above its own interests and cannot be influenced by any party in conducting its duties. This is set forth in the BOC Charter as follows: 1. The Board of Commissioners and their families and their affiliated parties shall not borrow money from the Bank. 2.The Board of Commissioners shall not utilize information obtained from the Bank to make decisions for personal, family and an affiliated party’s interests. 3.The Board of Commissioners shall not accept personal income or income from the Bank other than remuneration and other facilities as set forth in the Bank’s policy approved by the GMS. 4. The Board of Commissioners shall prioritize the interests of the Bank by adopting professionalism and integrity principles, and shall work and behave to a high standard. 5. The Board of Commissioners shall not retain and duplicate documents and control the Bank’s assets for personal gain. Annual Report CIMB NIAGA 2017
  403. Supporting Business Review Corporate Governance Report Corporate Social Responsibility 6 .Unless stipulated in the prevailing laws and regulations and Articles of Association, the Board of Commissioners shall not be entitled to represent the Bank despite being authorized by the Board of Directors, except when the Board of Directors is not functioning, then the Board of Commissioners shall take over the role of the Board of Directors. 7. All members of the Board of Commissioners shall not accept, give or offer anything from/to state officials and business partners. BOC DEVELOPMENT PROGRAM CIMB Niaga continues to promote the Board of Commissioners development activities through the induction program for new members and training programs for existing members in order to support its duties to achieve sustainable growth and effective management as set forth in the Board of Commissioners Charter. INDUCTION PROGRAM FOR NEW COMMISSIONER As stipulated in the Board of Commissioners Charter, the newly appointed members of the Board of Commissioners must join the induction program which aims to provide knowledge to new Commissioners in order to gain an understanding of the Bank, so as to perform his/her duties effectively and efficiently. Others Corporate Data Consolidated Financial Report In 2017, the induction program was conducted for 1 (one) new Commissioner, namely Tengku Dato’ Sri Zafrul Tengku Abdul Aziz. BOC TRAINING PROGRAM 2017 Risk Management Certification In accordance with the Employment Regulation (P2K) on Employee Learning and PBI No.11/19/ PBI/2009, dated 4 June 2009 and its amendment in PBI No. 12/7/PBI/2010, dated 19 April 2010 regarding Risk Management Certification for Management and Officers of Commercial Banks, The Board of Directors and Board of Commissioners are required to participate in risk management certification and refreshment program in accordance with the said regulations. All members of the Board of Commissioners possess Risk Management Certification and/or Refreshment in accordance with prevailing regulations. Training and Competence Development Program All members of the Board of Commissioners are committed to improve their competence to support the Board of Commissioners’ supervisory function. The commitment is reflected in the trainings followed by each of member of Board of Commissioners as follows: The orientation program for new commissioners in the form of documents prepared by the Corporate Affairs unit, includes: a. Vision and Mission b. Code of Ethics c. Organizational Structure d. Articles of Association e. Good Corporate Governance Guidelines f. Board of Commissioners Charter and Committee Charters g.Regulations related to the Banking and Capital Markets. h. Annual Report i. Business Plan Annual Report CIMB NIAGA 2017 403
  404. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management BOARD OF COMMISSIONERS BOC Training 2017 Name Dato ’ Sri Nazir Razak Organizer Date & Venue SCSS Type of Training/Seminar/Workshop/Knowledge Sharing Bursatra 2-3 January 2017 Kuala Lumpur RISK CIMB 5-6 January 2017 Kuala Lumpur The Federation of Chinese Associations Malaysia 1 April 2017 Kuala Lumpur Leadership, Banking Astro Management 3 April 17 Kuala Lumpur Companies Act 2016 SSM 1 June 2017 Kuala Lumpur Financial, Investment China Investment Corporation 5 June 2017 Beijing Youth Forum ICLIF 30 June 2017 Kuala Lumpur Bank Negara Meeting BNM 1 July 2017 Kuala Lumpur Accounting, Auditing ICGN Annual Conference Committee Meetings 11 July 2017 Kuala Lumpur CIMB Risk Workshop CIMB 10 August 2017 Kuala Lumpur Board Offsite of CIMBGH CIMB 18 September 2017 Kuala Lumpur Environmental, Social and Governance (ESG) Talk CIMB 18 September 2017 Kuala Lumpur ASEAN Summit 13-14 October 2017 Manila CIMB 17-18 October 2017 Kuala Lumpur IAP 24-25 November 2017 Shanghai Bloomberg 6 December 17 Jakarta Khazanah 10-11 December 2017 Kuala Lumpur Centre for Asian Philanthropy and Society 15 December 17 Hongkong Financing, Investment 31st ASEAN Summit AMS International Advisory Panel Bloomberg The Year Ahead Asia Khazanah Board Strategy Retreat Meeting CAPS Philanthropy Conference 2017 Glenn M. S. Yusuf 2018 Risk Posture Workshop CIMB Group 10 August 2017 (TP Room Jakarta) Zulkifli M. Ali Mid-Year Budget Meeting CIMB Niaga 19-20 May 2017 Gunung Geulis BARa’s Monthly Sharing Session: Unsecured Credit Retail Risk Management BARa 28 July 2017 Financial Hall, 2nd Floor 1st Directors Regional Sharing Session in Conjunction with the Joint Audit Committee with CIMB Bank Thai PCL CIMB Group 17-18 August 2017 Bangkok Budget Meeting & Leadership Conference 2017 National Anti-Fraud Conference Pri Notowidigdo Digital Leadership Series: Conversational Commerce, Chatbot and its Potential for Banking Industry Town Hall Panel Discussion of Intervention of Controlling Shareholders in GCG Implementation 1st Directors Regional Sharing Session in Conjunction with the Joint Audit Committee with CIMB Bank Thai PCL Training and Directorship Certification Level Advance Budget Meeting & Leadership Conference 2017 404 CIMB Niaga 19-21 October 2017 Association of Certified Fraud Examiners (ACFE) Indonesia 6-7 November 2017 Yogyakarta INSEAD 6 February 2017 Jakarta CIMB Niaga 6 March 2017 Jakarta Komite Nasional Kebijakan Governance 28 September 2017 Financial Club Lantai 27 CIMB Group 17-18 August 2017 Bangkok Lembaga Komisaris dan Direktur Indonesia 13-14 September 2017 CIMB Niaga 19-21 October 2017 Annual Report CIMB NIAGA 2017
  405. Supporting Business Review Name Jeffrey Kairupan Corporate Governance Report Corporate Social Responsibility Type of Training /Seminar/Workshop/Knowledge Sharing Organizer Date & Venue CIMB Niaga 1 February 2017 Jakarta Workshop re. Internal Capital Adequacy Assessment Process (ICAAP) CIMB Niaga 16 February 2017 Jakarta Business Learning Session (BLS) – Internal Audit CIMB Niaga 24 February 2017 Karawaci Accountability Program – Ayo Menabung dan Berbagi CIMB Niaga 21-22 March 2017 OJK 4 – 5 May 2017 CIMB Niaga 19-20 May 2017 Gunung Geulis OJK 13-14 July 2017 Bali Accountability Program – Ayo Menabung dan Berbagi CIMB Niaga 28 July 2017 Pangkal Pinang Accountability Program – Ayo Menabung dan Berbagi CIMB Niaga 15 August 2017 Tarakan 1st Directors Regional Sharing Session in Conjunction with the Joint Audit Committee with CIMB Bank Thai PCL CIMB Group 17-18 August 2017 Bangkok Accountability Program – Ayo Menabung dan Berbagi CIMB Niaga 26 August 2017 Pontianak Budget Meeting & Leadership Conference 2017 CIMB Niaga 19-21 October 2017 Accountability Program – Ayo Menabung dan Berbagi CIMB Niaga 28 October 2017 Batam Lembaga Pengembangan Perbankan Indonesia (LPPI) 7 March 2017 Jakarta ERIA (Economic Research Institute for ASEAN and East Asia) & Ministry of Foreign Affairs Japan 12-14 April 2017 Tokyo ADB Indonesia Resident Mission 14 June 2017 Jakarta CSIS dan JICA 26 July 2017 Jakarta CIMB Group 17-18 August 2017 Bangkok Speaker at WIEF Roundtable WIEF (World Islamic Economic Forum) 28 September 2017 Jakarta Khazanah Megatrends Forum Khazanah Nasional Berhad 3 October 2017 Kuala Lumpur Kemenko Perekonomian Deputi Bidang Koordinasi Ek. Makro dan Keuangan. 11 October 2017 Bandung Mid-Year Budget Meeting International Seminar – Navigating Financial Stability in an Evolving Global Economic System Giving lecture at Sekolah Staf dan Pimpinan Bank (SESPIBANK) Batch 66 Speaker at First International Economic Forum on Asia Speaker at “Seminar and Country Launch of ADB History Book: “Banking on the Future of Asia and Pacific” Invitation to be one of the panelists in Seminar on 50th Anniversary of ASEAN: “Development of ASEAN from Japanese Perspective” 1st Directors Regional Sharing Session in Conjunction with the Joint Audit Committee with CIMB Bank Thai PCL Speaker at Coordination Meeting of Economic Outlook 2018 David R. Thomas Consolidated Financial Report Accountability Program – Ayo Menabung dan Berbagi International Seminar Armida S. Alisjahbana Others Corporate Data Budget Meeting & Leadership Conference 2017 CIMB Niaga 19-21 October 2017 2018 Risk Posture Workshop with Combined Board CIMB Group 10 August 2017 KL Board Sharing Session & Special Joint Audit Committee Meeting CIMB Group 17-18 August 2017 Thailand Asean Institute of Chartered Bankers (AICB) 12 September 2017 KL CIMB-Nanyang Technological University 1 November 2017 Singapore CIMB Investor Relations/ McKinsey & Co 14-15 December 2017 Singapore Masterclass Chartered Banker Executive Conversion Programme Accelerated Universal Banking Program T23 Workshop Ahmad Zulqarnain Onn*) 2017 World Economic Forum McKinsey Executive Leadership Programme 20th Annual Asian Investment Conference Annual Report CIMB NIAGA 2017 17 - 20 January Davos, Switzerland McKinsey 27 February – 2 March 2017 New York, USA 27 – 28 March 2017 Hong Kong 405
  406. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management BOARD OF COMMISSIONERS Name Type of Training /Seminar/Workshop/Knowledge Sharing 3rd Annual IDB Member Countries Sovereign Investment Forum 2017 World Economic Forum on ASEAN Talk by Dominic Borton (Megatrends and Long Term Capitalism) Roundtable with Indonesian & Malaysia Business Leaders McKinsey Executive Leadership Programme Khazanah Megatrend Forum (Moderator for Emiliana Simon - Thomas’s session) Science Director, Greater Good Science Center The World Economic Forum 10 -12 May 2017 Phnom Penh, Cambodia Khazanah Research & Investment Strategy 26 May 2017 Kuala Lumpur, Malaysia Ministry of International Trade & Industry Malaysia 12 June 2017 Jakarta, Indonesia McKinsey 19 - 21 June 2017 New York, USA Khazanah Nasional Berhad 2 October 2017 Kuala Lumpur, Malaysia Khazanah Nasional Berhad 4 October 2017 10th Iskandar Malaysia CEO Forum Khazanah Nasional Berhad 9 October 2017 Senior Planning Group Year-End-Retreat Khazanah Nasional Berhad 26 October 2017 CIMB 17 - 18 November 2017 Khazanah Year-End Board Retreat Khazanah Nasional Berhad 10 - 11 December 2017 9th Annual Malaysia Corporate Day CIMB 5 January 2017 Kuala Lumpur Stock Exchange of Thailand 16 January 2017 Bangkok iM4U 4 March 2017 Kuala Lumpur IORA Business Summit Indian Ocean Rim Association (IORA) 6 March 2017 Jakarta SAY Ignite Convention Selangor Youth (SAY) 1 April 2017 Kuala Lumpur Thai Corporate Day iM4U Reach Out Convention ASEAN Central Governors and FI CEOs Dialogue ASEAN 6 April 2017 at Cebu Tsinghua University 11 May 2017 Beijing Kuala Lumpur Business Club (KLBC) 16 May 2017 Kuala Lumpur CIMB Foundation 25 May 2017 Kuala Lumpur Tsinghua University 13 July 2017 Kuala Lumpur Bursa Malaysia 25 July 2017 Kuala Lumpur Royal Malaysian Navy (TLDM) 2 August 2017 Kuala Lumpur CIMB 10 August 2017 Kuala Lumpur CIMB Foundation 13 August 2017 Kuala Lumpur CIMB 16 August 2017 Kuala Lumpur University Pertahanan Malaysia Roundtable Leadership Talk TLDM/Universiti Pertahanan Malaysia 6 September 2017 Kuala Lumpur PBCSF Tsinghua University Belt & Road eMBA Program – Lecture Tsinghua University 9 September 2017 Beijing Kuala Lumpur Business Club 14 September 2017 Bangkok Khazanah Nasional Berhad 1 October 2017 Kuala Lumpur Asian Institute of Finance 4 October 2017 Kuala Lumpur PBCSF Tsinghua University Belt & Road eMBA Program – Orientation KLBC Diplomat Dialogue Series Be $MART session with RMS PBCSF Tsinghua University Belt & Road eMBA Program – Lecture Invest Malaysia Conference TLDM Seminar 2018 Risk Posture Workshop Be $MART session with Tunku Ali All I Need to Know Lecture MTBC-TMBC Business Forum 2017 Khazanah Megatrends Forum 9th International Conference on Financial Crime and Terrorism Financing 406 Date & Venue 10 – 12 April 2017 Bali, Indonesia Trending Innovation, Distruption and Entrepreneruship (TIDE) 2017 CIMB Group’s Annual Management Summit Tengku Dato’ Sri Zafrul Tengku Abdul Aziz**) Organizer Islamic Development Bank Group & Ministry of Finance of the Republic of Indonesia Annual Report CIMB NIAGA 2017
  407. Supporting Business Review Name Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Type of Training /Seminar/Workshop/Knowledge Sharing Organizer Date & Venue 2017 Global Banking CEO Roundtable McKinsey 6 October 2017 Italy Risk Management Certificate Training for OJK CIMB 16 October 2017 Kuala Lumpur Management Dialogue Series CIMB 17 October 2017 Kuala Lumpur CIMB Group Annual Management Summit CIMB 17 November 2017 Kuala Lumpur International Advisory Panel Meeting CIMB 24 November 2017 Shanghai Bloomberg 6 December 2017 Bank Negara Malaysia 8 December 2017 Kuala Lumpur The Year Ahead Asia Summit 2017 Payment System Forum & Exhibition 2017 *) Resigned effective since the Extraordinary GMS, 24 August 2017 **) Appointed in the Extraordinary GMS 24 August 2017 and effective serves as Commissioner on 16 March 2018 DISCLOSURE OF CONCURRENT POSITIONS In accordance with the Board of Commissioners Charter, the members of the Board of Commissioners of CIMB Niaga may only concurrently serve as: a. members of the Board of Commissioners, Board of Directors, or Executive Officers at 1 (one) nonfinancial institution/company. b. members of the Board of Commissioners, Board of Directors, or Executive Officers performing supervisory functions in 1 (one) non-bank subsidiary controlled by the Bank. c. members of a Committee to a maximum of 5 (five) Committees in the Bank or Public Company in which the person also serves as the Board of Directors or Board of Commissioners. The following is excluded from the concurrent position mentioned above if: a. a non-independent Commissioner performs the functional duties from the Shareholder of the Bank which formed as legal entity in its business group. b. the member of the Board of Commissioners holds positions in nonprofit organizations or institutions. as long as he/she does not neglect his/her duties and responsibilities as a member of the Board of Commissioners of the Bank. All members of the Board of Commissioners of CIMB Niaga have no concurrent positions in the subsidiaries of CIMB Niaga. Concurrent positions of Board of Commissioners in 2017 were as follows: Name Dato’ Sri Nazir Razak Annual Report CIMB NIAGA 2017 Position in CIMB Niaga President Commissioner Position in Other Organization Company/Organization Chairman CIMB Group Holdings Berhad Deputy Chairman CIMB Bank Berhad Board Member Khazanah Nasional Berhad Director CIMB Foundation Member Kuala Lumpur Business Club Trustee PRIDE Foundation Honorary Member CPA Australia 407
  408. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management BOARD OF COMMISSIONERS Name Glenn Muhammad Surya Yusuf Pri Notowidigdo Zulkifli M . Ali David R. Thomas Armida Salsiah Alisjahbana Jeffrey Kairupan Ahmad Zulqarnain Onn*) 408 Position in CIMB Niaga Vice President Commissioner Independent Commissioner Position in Other Organization Company/Organization Trustee Rahah Foundation Trustee Asia Business Council Advisory Council Asean Business Club Malaysia Member Securities Commission – Capital Market Advisory Council Founding member Endeavor Malaysia Advisory Board Center of Asian Philanthropy & Society Director Satin Rose Holdings Limited (Director) International Advisory Board Blavatnik School of Government Honorary President Malaysia - China Chamber of Commerce (MCCC) Chairman World Economic Forum’s (WEF) ASEAN Regional Business Council Director Zheng Group Limited Director David Linley Holdings Limited Director Zak Investments Limited Independent Director CIMB Group Holdings Berhad Independent Commissioner PT Surya Citra Media President Director PT Profesindo Reksa Indonesia Partner Advisor Arghajata Strategic Consulting, Jakarta Independent Commissioner - - Commissioner Group Chief Risk Officer CIMB Group Holdings Berhad Director International School of Kuala Lumpur (non for profit) Independent Commissioner Independent Commissioner Commissioner Director GK1Word (non for Profit) BOC PT Synergy Dharma Nayaga Lecturer and Professor Fakultas Ekonomi dan Bisnis, Universitas Padjadjaran, Bandung Director Center for Sustainable Development Goals Studies, Universitas Padjadjaran, Bandung Member Akademi Ilmu Pengetahuan Indonesia (AIPI) Member of Governing Board Economic Research Institute For Asean and East Asia (ERIA), Jakarta Indonesia Direktur PT Tehillah Indonesia Synergi (PMA) Chairman of Executive Board Yayasan Imamat Rajani Member of Governing Board Bali Blessings Foundation Executive Director, Investment/Head Strategic Management Unit Khazanah National Berhad Non-Executive Director CIMB Bank Berhad Director Felda Investment Corporation Sdn Bhd Director FIC Supplies Sdn Bhd Annual Report CIMB NIAGA 2017
  409. Supporting Business Review Name Tengku Dato ’ Sri Zafrul Tengku Abdul Aziz**) Corporate Governance Report Position in CIMB Niaga Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Position in Other Organization Company/Organization GCEO/ED CIMB Group Holdings Berhad Commissioner Executive CIMB Group Sdn Bhd NED Urban Valley Sdn Bhd NED Malaysian Industrial Development Authority (MIDA) NED Yayasan Enactus Malaysia Board Member Pr1ma Corporation Malaysia CEO/ED CIMB Bank Berhad Council Member Association of Banks in Malaysia (ABM) *) Resigned effective since the Extraordinary GMS, 24 August 2017 **)Appointed in the Extraordinary GMS, 24 August 2017 and effective serves as Commissioner on 16 March 2018 BOC CONFLICT OF INTERESTS As stated in the Charter of the Board of Commissioners, all members of the Board of Commissioners should avoid potential conflict of interests or always keep themselves away from potential conflicts of interests under any circumstances. In the event of a conflict of interests, members of the Board of Commissioners are prohibited from taking action that could harm or reduce the Bank’s profits and must disclose the potential conflict of interests in any decision made. The procedures that the Board of Commissioners must undertake in the event of a conflict of interests are as follows: a. a BOC member is required to report in writing to the Board of Commissioners on all matters which have the potential to create and/or contain a conflict of interests that have significant financial and reputational impact to the Bank, Board of Commissioners and Board of Directors. b. a BOC member is not allowed to participate in the evaluation process of any activity having a conflict of interests. c. a BOC member can participate in meetings, but is not allowed to participate in decision making. During 2017, all members of the Board of Commissioners had no conflict of interests or potential conflict of interests with CIMB Niaga. Annual Report CIMB NIAGA 2017 BOC TERM OF OFFICE 1. The term of office of members of the Board of Commissioners is effective as of the date specified in the GMS appointing them, until the close of the 4th Annual GM after the effective date of appointment without prejudice to the right of the General Meeting of Shareholders to terminate them at any time in accordance with the Articles of Association and prevailing regulations. 2.The appointment of members of the Board of Commissioners is effective upon approval from the OJK or the completion of the requirements stipulated in the OJK approval letter relating to the fit and proper test, and other relevant authorities, and approved by the shareholders through the GMS. 3. The term of office of the Independent Commissioner is a maximum of 2 (two) consecutive periods unless otherwise stipulated by the prevailing laws and regulations. 4. The term of office of the member of the Board of Commissioners will end if: a. his/her term of office ends in accordance with the provisions in the Articles of Association. b. he/she resigns in accordance with the prevailing regulations. c.he/she no longer meets the regulatory requirements. d. he/she passes away. e. he/she is dismissed based on the resolutions of the GMS. f. he/she is declared bankrupt or placed under supervision based on a court decision. g. he/she is involved in financial crime. 409
  410. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management BOARD OF COMMISSIONERS 5 . Members of the Board of Commissioners who have finished their term of office may be re-appointed according to the prevailing regulations. Term of Office Name Position GMS Appointment Dato’ Sri Nazir Razak President Commissioner Glenn Muhammad Surya Yusuf BI/OJK Approval Reappointment Valid Until Extraordinary GMS 26 January 2012 No. 14/40/GBI/DPIP/Rahasia dated 1 May 2012 Annual GMS 15 April 2016 Annual GMS 2020 Vice President Commissioner Extraordinary GMS 26 January 2012 No. 14/57/GBI/DPIP/Rahasia, dated 18 June 2012 Annual GMS 15 April 2016 Annual GMS 2020 Pri Notowidigdo (Independent) Commissioner Annual GMS 28 March 2013 No. 15/114/GBI/DPIP/Rahasia dated 26 November 2013 Annual GMS 15 April 2016 Annual GMS 2020 Zulkifli M. Ali (Independent) Commissioner Extraordinary GMS 18 July 2008 No. 10/156/GBI/DPIP/Rahasia dated 14 October 2008 Annual GMS 15 April 2016 Annual GMS 2020 David R. Thomas Commissioner Annual GMS 27 March 2014 No. SR-159/D.03/2014 dated 15 September 2014 - Annual GMS 2018 Armida Salsiah Alisjahbana (Independent) Commissioner Annual GMS 15 April 2016 No. SR-184/D.03/2016 dated 14 September 2016 - Annual GMS 2020 Jeffrey Kairupan (Independent) Commissioner Annual GMS 15 April 2016 No. SR-183/D.03/2016 dated 14 September 2016 - Annual GMS 2020 Ahmad Zulqarnain Onn*) Commissioner Annual GMS 27 March 2014 No. SR-160/D.03/2014 dated 15 September 2014 - Annual GMS 2018 Tengku Dato’ Sri Zafrul Tengku Abdul Aziz**) Commissioner Extraordinary GMS 24 August 2017 No. 42/PB.12/2018 dated 16 March 2018 - Annual GMS 2021 *) Resigned effective since the Extraordinary GMS, 24 August 2017 **) Appointed in the Extraordinary GMS, 24 August 2017 and effective serves as Commissioner on 16 March 2018 BOC SEGREGATION OF DUTIES Some members of the Board of Commissioners, based on their respective competencies, also serve as chairman and or members of Committees established to assist the implementation of the duties and responsibilities of the Board of Commissioners in their respective areas. Committee Committee Membership of BOC Members Audit Committee 1. Zulkifli M. Ali (chairman cum member) 2. Jeffrey Kairupan (member) Risk Oversight Committee 1. Zulkifli M. Ali (chairman cum member) 2. Glenn M.S. Yusuf (member) 3. David Richard Thomas (member) Nomination and Remuneration Committee 1. Pri Notowidigdo (chairman cum member) 2. Armaida S. Alisjahbana (member) Integrated Corporate Governance Committee 1. Jeffrey Kairupan (chairman cum member) 2. Armaida S. Alisjahbana (member) BOC RECOMMENDATIONS The oversight and advice of the Board of Commissioners is submitted either through the Audit Committee, Risk Oversight Committee, the Nomination and Remuneration Committee, and the Integrated Corporate Governance Committee, and is discussed during the Board of Commissioners meeting. In 2017, a number of important recommendations issued by the Board of Commissioners are as follows: 410 1. The Board of Commissioners provided input and approved the corporate plan throughout 2017 including: Annual GMS, Extraordinary GMS, share buyback for MSOP, Issuance of Bonds (Trance II and Trance 3 of 2017). 2. The Board of Commissioners gave approval for the Bank Business Plan (RBB) Realization Report and 2017 Revised RBB Supervision Report. Annual Report CIMB NIAGA 2017
  411. Supporting Business Review Corporate Governance Report Corporate Social Responsibility 3 . The Board of Commissioners provided feedback on the Bank’s financial targets, including Net Interest Margin, Non Performing Loans and watch list accounts, Loan to Deposit Ratio, Asset Quality, Productivity and market competition. The Board of Commissioners supported the Bank’s strategy to continue growing its business with high margins, namely Corporate Banking, Commercial Banking, SME and Syariah Banking, while maintaining asset quality at a good level in all business lines. 4. The Board of Commissioners provided input related to the increase of low-cost funds (CASA) and the Bank’s fee income through the development of Bank services for the ease of transactions and services through Transaction Banking, Value Chain, as well as enhancement of Sharia Banking business services through dual banking leverage, and through the development of branchless banking such as optimization of ATM, CDM & SST, the development of new platforms for CIMB Clicks (internet banking) and upgrading of GoMobile services (mobile banking), agent banking and tablet banking, including programs to improve turn- around time to improve customer experience during transactions. 5. The Board of Commissioners provided input related to efficiency improvements made under cost efficiency programs, IT transformation programs, and productivity both for front liners and back office, granting authority in the approval process that has had an impact on the accelerated speed of customer service. 6.The Board of Commissioners periodically has discussion on the macroeconomic and industrial conditions, and the new banking regulatory requirements, as well as the impact on the Bank’s business and its action plan. 7. Based on the report of the Audit Committee, the Board of Commissioners gave recommendations to the Board of Directors, including: a. A review of the financial statements covering financial statements, accounting treatment and its conformity with generally accepted accounting principles, as well as the financial performance and the adequacy of the financial statements publication and reporting to the authorities. Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report b. A review of the progress of the follow-up on audit findings from the external audit, regulator and Bank Negara Malaysia. c.Independent opinion in the event of any disagreement between management and the Public Accountant for the services provided. d. Appointment of the Public Accounting Firm based on independence, scope of assignment and fees. e.Review of the implementation of audits by internal auditors and monitoring of the follow-up by the Board of Directors on the findings from internal auditors. f. Review complaints relating to accounting and financial reporting processes. g.Implementation and strategies and detection of fraud, including the implementation of whistleblowing. 8.Based on the report of the Risk Oversight Committee, the Board of Commissioners makes recommendations to the Board of Directors that are related to: a. Risk management, asset quality, Bank’s soundness level and stress test results. b. Policies/frameworks established by the Board of Directors in relation to Risk Management including the Internal Capital Adequacy Assessment Process which includes the establishment of risk appetite and the implementation of stress tests. c.Financial reports and discussion of ongoing strategic initiatives/projects, particularly the implication of risks to the Bank including the Bank’s Budget Plan for 2018, as well as the business strategies and business plans of each unit in order to ensure compliance with risk policies and risk appetite. d. The risk aspects of new products and activities including evaluation of the product’s Post Implementation Review (PIR) framework, review of strategies to improve CASA and Commission Fee Income from risk perspective, mainly linked to its impact on Bank liquidity and financing. e. Strategy of handling and completion of impaired accounts and NPLs, as well as the recovery plan/ strategy. 411
  412. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management BOARD OF COMMISSIONERS f . Recommendations for monitoring customer and regulator complaints directed or forwarded to the Board of Commissioners for immediate review of risks. g.Monitoring of significant audit findings from the perspective of operational risk management including the results of investigations performed. h. The implementation of the Basel project, the IFRS9 project, and update of information technology development particularly the 1P project that has been running. 9.Through the Nomination and Remuneration Committee, the Board of Commissioners recommends to the Board of Directors, including: a. Recommendation of nomination policy in the selection and or replacement of members of the Board of Commissioners to be submitted for approval in the Extraordinary GMS on 24 August 2017. b. Recommendations related to the remuneration policy for the Board of Commissioners, Sharia Board and Board of Directors to be submitted to the Annual GMS on 25 April 2017 and the remuneration policy framework for Executive Officers and employees as a whole which has been approved by the Board of Directors. c. Changes related to remuneration for the Board of Commissioners and Independent Parties who are members of the Committees of the Board of Commissioners, Sharia Board and Board of Directors level. d.Manpower policies and HR management functions that contain significant risks to the Bank including future Bank growth. Recommendations on the framework of e. distribution of bonuses to the Board of Directors in a balanced and fair manner by considering objectivity performance achievement. f. Input on the evaluation of Key Performance Indicator (KPI) of Board of Directors members based on the achievement of each KPI component. g.Input on the performance evaluation and assessments of the Board of Commissioners, individually or collectively, conducted at least once a year using the self- assessment method or other methods. 412 Through the Integrated Corporate Governance 10. Committee, the Board of Commissioners provides recommendations such as: a. Supervision of the implementation of Corporate Governance in each member of the CIMB Indonesia Conglomerate in relation to Integrated Internal Audit, Risk Management and Compliance. b. Assurance on the compliance with the regulations of the Indonesia Stock Exchange regarding 7.5% public ownership in the Main Entity which was completed in August 2017. c.Assurance that the implementation of CIMB Indonesia’s Integrated Corporate Governance has been reported to the authorities in accordance with prevailing regulations. 11. In accordance with the Articles of Association, the Board of Commissioners approves the proposed actions on debts under special mention, restructuring and write-offs of credits above certain limits stipulated in the Bank’s policies. In addition, the Board of Commissioners provides credit approval to the Bank’s related parties to comply with prevailing regulatory requirements. BOC LOAN POLICY As stated in the Charter of the Board of Commissioners, the Board of Commissioners and their families and other affiliated parties must not borrow money from the Bank. PERFORMANCE EVALUATION OF BOC COMMITTEES Evaluation Procedure Performance evaluation procedures for Board of Commissioners Committees are conducted annually under a self-assessment methodology that includes assessing the performance of each Board of Commissioners Committee as an institution and an assessment of each Board of Commissioners member as an individual. The final evaluation will be conducted by the President Commissioner based on the recommendations from the Nomination and Remuneration Committee. Annual Report CIMB NIAGA 2017
  413. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Performance evaluation conducted minimum once a year . Criteria and Basis of Performance Evaluation The criteria and considerations for the performance of the Board of Commissioners Committee are as follows: • Collective Assessment This is an assessment made by each Board of Commissioners Committee member on the collective performance of the Board of Commissioners Committee. The assessment includes the structure of the Committee, strategic thinking, oversight and governance, and the effectiveness of the Committee in addressing issues/matters within the Bank, as well as in providing recommendations to the Bank. Others Corporate Data Consolidated Financial Report • Individual Assessment This is an assessment performed by each Board of Commissioners Committee member on his/her own performance (self-assessment) covering strategic thinking, knowledge of the banking industry, and individual contributions in performing the functions as a Board of Commissioners member. Parties Performing Board of Commissioners Committee Performance Evaluation Performance evaluation for Board of Commissioners Committee is undertaken by each member of Board of Commissioner Committee and discussed by the Remuneration and Nomination Committee to then seek approval from the President Commissioner. Board of Commissioners Committees Evaluation Performance Results 2017 The average results of the assessment of each individual member of Board of Commissioners Committee in 2017 are 4.2 (very satisfied). In details, the self-assessment results for the Board of Commissioners Committees are as follows: Audit Committee Risk Oversight Committee Nomination and Remuneration Committee Integrated Corporate Governance Committee 3.9 4.2 4.8 3.9 Value range chart as follows: Range of Values Description ≥ 4.7 Extraordinary Annual Report CIMB NIAGA 2017 4.0 - 4.6 Very Satisfactory 3.7 - 3.9 Exceeding Expectations 3.0 - 3.6 According to Expectations < 3.0 Needs Improvement 413
  414. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Independent Commissioners NUMBER AND CRITERIA OF INDEPENDENT COMMISSIONERS In 2017 , there were 4 (four) Independent Commissioners in CIMB Niaga out of a total 8 (eight) members of the Board of Commissioners, thus contributing 50% of the total members of the Board of Commissioners, it is in accordance with OJK provisions. All Independent Commissioners of CIMB Niaga are selected based on the criteria of Independent Commissioners in Bank Indonesia Circular Letter No. 15/15/DPNP, dated 29 April 2013 regarding Good Corporate Governance of Commercial Banks and POJK No. 33/POJK.04/2014, dated 8 December 2014 regarding the Board of Directors and Board of Commissioners of the Issuer or Public Company, Article 21 paragraph 2, and also set forth in the Charter of the Board of Commissioners as follows: 1. Not be a person who is employed or has the authorities and responsibilities to plan, direct, control or supervise the activities of the Bank including former members of the Board of Directors or Executive Officer of the Bank or parties with a relationship with the Bank, which may affect his/her ability to act independently during the last 1 (one) year, except for re-appointment as Independent Commissioner of the Bank for the following period. 414 The provisions referred to above shall not apply to former Directors or Executive Officers performing supervisory functions. 2.Have no financial relationship, management relationship, share ownership relationship, family relationship with other members of the Board of Commissioners, Board of Directors and/or Ultimate Shareholders 3. Not have, directly or indirectly, any shares in the Bank. 4. Not be affiliated with the Bank, members of the Board of Commissioners, members of the Board of Directors, or with the Ultimate Shareholders of the Bank. 5. Have no direct or indirect business relationship with the business activities of the Bank. 6. Meet the requirements of Independent Commissioners as governed in the prevailing regulations 7.If the Independent Commissioner is serving in the Audit Committee, then the Independent Commissioner may only be re-appointed to the Audit Committee for 1 (one) term of the upcoming Audit Committee period. 8.An Independent Commissioner who serves as Chairman of a Committee may only concurrently serve as Chairman of the Committee in another Committee, at the maximum. Annual Report CIMB NIAGA 2017
  415. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Independence Declaration of Each Independent Commissioner Zulkifli M . Ali Pri Notowidigdo Armida Salsiah Alisjahbana Jeffrey Kairupan Not a person who working or having the authorities and responsibilities to plan, lead, control or supervise the Bank’s activities within the last 6 (six) months. √ √ √ √ Independence Matter Not owning shares directly or indirectly in the Bank. √ √ √ √ Not affiliated with the Bank, BOC/BOD members or Ultimate Shareholders of the Bank. √ √ √ √ Not having financial relationship, management relationship, shareholding relationship, family relationship with other members of BOC, BOD and/or Ultimate Shareholder of the Bank √ √ √ √ Not having direct or indirect business relationship related to the Bank’s business activities. √ √ √ √ As an Independent Commissioner who has served for more than two periods, Mr. Zulkifli M. Ali has declared his independence statement at the Annual GMS of 15 April 2016 as follows: “In relation to my re-appointment as Independent Commissioner of the Bank which has exceeded 2 (two) terms of office, in accordance with OJK Regulation No. 33/POJK.04/2014, I hereby declare that I remain independent, and that I: Annual Report CIMB NIAGA 2017 1. Have no shares directly or indirectly in the Bank; 2. Have no affiliation with the Bank, members of the Board of Commissioners, the Board of Directors, or the Ultimate Shareholders of the Bank; 3.Have no financial relationship, management relationship, shareholding relationship and/or family relationship with members of the Board of Commissioners, Board of Directors, or the Ultimate Shareholders of the Bank; 4. Have no direct or indirect business relationship relating to the Bank’s business activities.“ 415
  416. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Board of Directors The Board of Directors is the organ in the Good Corporate Governance (GCG) implementation and who responsible for the management of the Bank, for the interests and objective of the Bank, as well as acting for and on behalf of the Bank in and out of the court. The members of the Board of Directors of CIMB Niaga work within their respective areas of duty to collectively achieve effective management for optimum results. In the implementation of their duties, the Board of Directors of CIMB Niaga always embraces professionalism, objectivity, strategic thinking, and prioritises the interests of the Bank, as an effort to enhance added value for the stakeholders and to ensure business sustainability. LEGAL REFERENCES The legal references for the appointment of the Board of Directors of CIMB Niaga refers to several provisions: 1. Law No. 40 year 2007 on Limited Liability Companies. 2. Law No. 7 year 1992 on Banking as amended by Law No. 10 year 1998. 3. Articles of Association. 4.Regulation of Bank Indonesia (PBI) No. 11/1/ PBI/2009 dated 27 January 2009 on Commercial Banks. 5. PBI No. 13/27/PBI/2011 dated 28 December 2011 on the Amendment to PBI No. 11/1/PBI/2009 on Commercial Banks. 6. Regulation of Financial Services Authority (POJK) No. 33/POJK.04/2014 dated 8 December 2014 regarding the Board of Directors and Board of Commissioners of the Issuers or Public Companies. 7. POJK No. 27/POJK.03/2016 dated 22 July 2016 on Fit and Proper Test for the Main Party of Financial Service Institutions. 8. Circular of OJK (SEOJK) No. 39/SEOJK.03/2016 dated 13 September 2016 on Fit and Proper Test for Candidate of Ultimate Shareholders, Candidates of Members of the Board of Directors, and Candidates of Members of the Board of Commissioners of the Bank. 9. POJK No. 55/POJK.03/2016 dated 7 December 2016 on the Implementation of Corporate Governance for Commercial Banks. 10.POJK No. 18/POJK.03/2016 dated 16 March 2016 on the Implementation of Risk Management for Commercial Banks. 416 11.POJK No. 37/POJK.03/2017 dated 12 July 2017 on Employing Foreign Workers and Transfer of Knowledge Program in the Banking Sector. 12.POJK No. 46/POJK.03/2017 dated 12 July 2017 on the Implementation of the Compliance Function of Commercial Banks. 13.Deed of Meeting Resolution No. 35 dated 24 August 2017 on the Resolutions of the Extraordinary General Meetings of the Shareholders of PT Bank CIMB Niaga Tbk. COMPOSITION OF THE BOARD OF DIRECTORS As set forth in the Board of Directors Charter, CIMB Niaga has complied with all applicable regulations, namely: 1. The number of members of the Board of Directors of CIMB Niaga is more than 3 (three) persons, namely 11 (eleven) persons. 2. The number of members of the Board of Directors of CIMB Niaga is more than the total number of members of the Board of Commissioners of CIMB Niaga. 3. All members of the Board of Directors of CIMB Niaga are domiciled in Jakarta, Indonesia. 4. The majority of members of the Board of Directors are Indonesian citizens, namely 10 (ten) out of 11 (eleven) members. 5. The Board of Directors is led by a President Director who is independent from the ultimate shareholders, other members of the Board of Directors, and members of the Board of Commissioners of CIMB Niaga. 6. The majority of members of the Board of Directors have at least 5 (five) years of experience in operations as Executive Officers and have no concurrent position in other banks, companies, or institutions. 7. The replacement and/or appointment of members of the Board of Directors of CIMB Niaga has considered the recommendations of the Remuneration and Nomination Committee and obtained approval from the General Meetings of the Shareholders (GMS) and Financial Services Authority (OJK). 8. All members of the Board of Directors of CIMB Niaga have no family relationship up to the second degree with other members of the Board of Directors and/or the Board of Commissioners or Ultimate Shareholders. Annual Report CIMB NIAGA 2017
  417. Supporting Business Review Corporate Governance Report Corporate Social Responsibility 9 . All members of the Board of Directors of CIMB Niaga have passed the Fit and Proper Test. As fulfillment of Regulation of the Indonesia Stock Exchange No. I-A on Listing of Shares and Equity Securities in addition to Shares Issued by the Company, CIMB Niaga also has 1 (one) Independent Director, namely Fransiska Oei. In order to achieve decision-making effectiveness, the number of Directors has been based on the need to achieve the Bank’s goals and objectives and is adjusted to the Bank’s conditions including the characteristics, capacity, and size of the Bank. The following is the composition of the Board of Directors of CIMB Niaga in 2017: No. Name Position 1 Tigor M. Siahaan President Director 2 Wan Razly Abdullah Director 3 Rita Mas’Oen Director 4 Megawati Sutanto Director 5 Vera Handajani Director 6 John Simon Director 7 Lani Darmawan Director 8 Fransiska Oei Director (Independent Director) 9 Hedy Lapian Director 10 Pandji P. Djajanegara Director 11 Rahardja Alimhamzah*) Director *) Effective as a Director from the close of the EGMS 24 August 2017 Others Corporate Data Consolidated Financial Report 6. Transparency 7. Work Ethics 8. Meetings 9. Term of Office 10. Resignation 11. Performance Assessment and Accountability The references of the Board of Directors Charter are: 1. Articles of Association 2. Law No. 40 year 2007 on Limited Liabilities Companies 3. POJK No. 55/POJK.03/2016 on the Implementation of Corporate Governance for Commercial Banks 4. SEOJK No. 13/SEOJK.03/2017 on the Implementation of Corporate Governance for Commercial Banks 5. POJK No. 32/POJK.04/2015 on the Implementation of Corporate Governance Guidelines of Public Companies. 6.SEOJK No. 32/SEOJK.04/2015 on Corporate Governance Guidelines for Public Companies 7.POJK No. 33/POJK.04/2014 on the Board of Directors and Board of Commissioners of Issuers or Public Companies 8. General Guidelines of Indonesian Good Corporate Governance from the National Committee on Governance Policy (KNKG) 9. ASEAN Corporate Governance Scorecard DUTIES, RESPONSIBILITIES, AND AUTHORITIES OF THE BOARD OF DIRECTORS The Board of Directors is fully responsible in performing its duties to manage the Bank for the interests of the Bank to achieve its goals and objectives. CHARTER OF THE BOARD OF DIRECTORS The Board of Directors of CIMB Niaga refers to a Guidelines and Procedures Manual or Charter, which is constantly updated and refined referring to the prevailing rules and regulations in Indonesia, which are binding for each member of the Board of Directors. The latest Board of Directors Charter was updated on 3 October 2017 and has been uploaded to the Bank’s website www.cimbniaga.com. The main duties of the Board of Directors, are including to lead and manage the Bank in accordance with its objectives; control, maintain, and administer the Bank’s assets for the Bank’s interests; develop an internal control structure at all management levels; and follow up on the Bank’s internal audit findings in accordance with the policies or directives issued by the Board of Commissioners. The Charter of the Board of Directors includes: 1. Accountability 2. Structure and Membership 3. Requirement and Appointment 4. Duties and Responsibilities 5. Conflicts of Interest The authorities of the Board of Directors include representing the Bank both internally and externally, binding the Bank with other parties, and carrying out immediate actions, both on management and ownership, with certain restrictions, as described in the Articles of Association. Annual Report CIMB NIAGA 2017 417
  418. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management BOARD OF DIRECTORS Details of duties , responsibilities, and authorities of the Board of Directors are stipulated in the Articles of Association and the Board of Directors Charter, which have been uploaded on the CIMB Niaga’s website, www.cimbniaga.com. SCOPE OF WORK AND RESPONSIBILITIES OF EACH MEMBER OF THE BOARD OF DIRECTORS Tigor M. Siahaan – President Director Determine the Bank’s long-term strategy, and strategy of marketing and development of products/services in all business segments based on market demand. In addition, providing oversight and guidance on policies in operations support and banking services, information technology, systems and procedures, legal aspects, financial aspects, and human resources, as well as ensuring the implementation of compliance across all banking operations and comprehensive implementation of the Bank’s risk management policies to ensure that the Bank has high ethical standards, adheres to good corporate governance principles and prudential banking practices. Wan Razly Abdullah – Director of Strategy & Finance Develop and monitor the implementation of business strategies and initiatives as well as budget to achieve the Bank’s vision and mission. Manage the Bank’s financial performance by focusing on the productivity and efficiency of the Bank’s resources. Develop and manage the Bank’s information management systems and performance to be reported to the regulators as well as communicating it to the stakeholders. Develop capital and investment strategies to optimise the Bank’s profitability as well as Total Shareholders’ Return, ROA, and ROE. Implement effective monitoring and planning of financial management, as well as ensuring adherence to accounting practices in accordance with all applicable rules and standards. Rita Mas’Oen – Director of Operations & Information Technology Determine the long-term strategy and steer the Directorate of Operations & IT to create effectiveness and efficiency improvements in the management of banking operational transactions with high standards, to be reliable, as well as ensuring smooth communication from the users as required. 418 Megawati Sutanto – Director of Credit Provide strategic directives in all credit management aspects, determine the Credit Underwriting Standards in line with best practices, review credit proposals and continuously improve the quality of the process of credit review and approval in order to improve the effectiveness and efficiency in the established credit chain, and maintain the quality of the credit portfolio, as well as ensuring that all business activities have complied with the prevailing policies and procedures. Vera Handajani – Director of Risk Management Provide strategic direction in terms of the Bank’s risk management by considering the principle of prudence, and implement all aspects of the Bank’s risk management policies in a comprehensive manner. Responsible to educate and direct the focus of risk management to reach all the established targets. Follow-up on, implement, and execute all directives from the regulators regarding the Bank’s risk management. John Simon – Director of Treasury & Capital Market Provide strategic directions in Treasury & Capital Market marketing and development of products and services to increase the Bank’s profitability growth through money markets and capital market activities. Manage the funds, liquidity, and liability of the Company to ensure that the Bank operates in a prudent manner. Lani Darmawan – Director of Consumer Banking Develop strategies and provide guidance in services and product sales of Consumer Banking at all branches in Indonesia as well as optimizing the market potential through the development of innovative and competitive Consumer Banking products to achieve the determined Bank profitability level with due regard to prudential principles, implementation of risk management policies at all aspects of the Bank’s in a comprehensive manner, and to create effective and efficient banking business processes. Annual Report CIMB NIAGA 2017
  419. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Fransiska Oei – Director of Compliance, Corporate Secretary & Legal Develop compliance strategies, including matters related to compliance policies and principles, as well as ensuring that the Bank’s internal regulations (policies, systems, procedures) are in line with all relevant external regulations (Bank Indonesia, OJK and other financial institutions/authorities). In addition, be responsible for the management of the Bank’s legal risks, follow the development of the Capital Market, in particular the prevailing regulations in the Capital Market and provide services to the public on necessary information, particularly in regard to the condition of the Bank as a Public Company, including maintaining its reputation and acting as a liaison officer or contact person between the Bank, the Government and the community, as well as carrying out Corporate Social Responsibility activities. Banking segments. Be responsible for achieving the funding and lending targets as well as increasing cross selling within the segment; determine the direction of competitive products; develop services with operational support to suit the demands and development of the banking industry. Hedy Lapian – Director of Human Resources Provide strategic direction of the management and development of the Bank’s human resources to improve the productivity and quality of human resources in supporting the achievement of the Bank’s objectives, while ensuring and maintaining compliance with the applicable employment regulations, and corporate culture. The criteria that must be met by candidate members of the Board of Directors of CIMB Niaga are : 1.Show integrity as required by the applicable regulations including : a. Has good morals and ethics b. Has commitment to comply with the applicable laws and regulations including the provisions and regulations of the Bank, as well as supporting the OJK’s policies c. Has commitment to the development of sound Bank operations d. Is not included in the Fit and Proper Test Fail List e. Proficient in performing legal action 2. Possess the competencies as required by the applicable regulations, as follows: a.Has sufficient and relevant knowledge of banking and its operations b. Has experience and expertise in banking and/or finance c. Has knowledge on the duties and responsibilities of the Main Entity as well as understanding of the main business activities and main risks of the Financial Services Institutions in the Bank’s financial conglomerate Pandji P. Djajanegara – Director of Sharia Banking Provide innovative strategic direction of the implementation of Sharia Banking operations by ensuring the availability of policies and working procedures, development, marketing, and selling of products, as well as managing the functions of Sharia Banking including managing daily operations, business development, customer relationships, and managing systems and work processes to ensure the achievement of profit and business growth that is in line with Bank’s objectives and Sharia Banking principles. Rahardja Alimhamzah – Director of Business Banking Together with the President Director, establish the Bank’s long-term strategy and assist in carrying out the duties of the President Director in formulating the strategies of marketing as well as development of products and services in the Corporate, Commercial and Micro, Small, and Medium Enterprise (MSME) Annual Report CIMB NIAGA 2017 CRITERIA FOR THE APPOINTMENT OF MEMBERS OF THE BOARD OF DIRECTORS The criteria for the appointment of members of the Board of Directors of CIMB Niaga are based on POJK No. 33/POJK.04/2014 on the Board of Directors and Board of Commissioners of Issuers or Public Companies, POJK No. 27/POJK.03/2016 on Fit and Proper Test for Candidates of Ultimate Shareholders, Candidates of members of the Board of Directors, and Candidates of Members of the Board of Directors of the Bank. 419
  420. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management BOARD OF DIRECTORS d . Has the ability to undertake strategic management for the development of a sound Bank e.Has good personal skills, such as strong leadership, good reputation, and a strong networking, particularly in the financial industry and the ability to build good relationships with the Regulator 3. Has a good financial reputation, namely within at least 5 (five) years prior to the appointment and during the term of office, must comply with the following : a. Does not have bad credit nor be a Ultimate Shareholder, or member of the Board of Commissioners or member of the Board of Directors of a legal entity having bad credit b. Has not been declared bankrupt c. Has not been a member of a Board of Directors and/or a member of a Board of Commissioners who has been found guilty of causing a company to be declared bankrupt; d. Has not been punished for committing a crime that is detrimental to state finances and/or related to the financial sector e.Has not been a member of the Board of Directors and/or any member of the Board of Commissioners during the term of office, who: i. Has failed to organize the Annual General Meeting of Shareholders; ii. Has caused a company that has obtained a license, approval, or registration from the Financial Services Authority, did not fulfill the obligation to submit the annual report and/or financial statements to the OJK; iii.His/her accountability as a member of the Board of Directors and/or member of the Board of Commissioners has been disapproved by the General Meeting of Shareholders or has failed to provide accountability as a member of the Board of Directors and/or member of the Board of Commissioners to the General Meeting of Shareholders 420 4. The majority of the members of the Board of Directors must have at least 5 (five) years experience in banking operations 5. Does not serve as a member of the Board of Commissioners, Board of Directors, or as Executive Officer of another company, except as governed by the applicable regulations 6. Domiciled in Indonesia 7. Majority of the members of the Board of Directors do not have any family relationship up to the second degree with other members of the Board of Directors and/or members of the Board of Commissioners or the ultimate shareholders of the Bank APPOINTMENT PROCEDURES OF MEMBERS OF THE BOARD OF DIRECTORS Candidate members of the Board of Directors who have received recommendation from the Bank’s Nomination and Remuneration Committee, are proposed to and appointed by the GMS of CIMB Niaga. Candidate members of the Board of Directors are subject to the fit and proper test by the OJK through a proposal submitted by the Bank. Candidate members of the Board of Directors who have not been approved by the OJK is prohibited from performing duties as members of the Board of Directors of the Bank, even though he/she has been approved and appointed by the GMS. IMPLEMENTATION OF DUTIES AND RESPONSIBILITIES OF THE BOARD OF DIRECTORS IN 2017 In addition to the implementation of the 2017 GMS resolutions, the implementation of duties and responsibilities of the Board of Directors in 2017 were as follows: 1.Conducted syndicated loans while managing credit risk, as well as performing infrastructure improvement to encourage the growth of Corporate Banking customers Annual Report CIMB NIAGA 2017
  421. Supporting Business Review Corporate Governance Report Corporate Social Responsibility 2 .Continued the recalibration of the commercial banking sector which consist of innovation and improvement processes that was on-going from the previous year, in two phases, namely the Strengthening and Balancing phase and the Stabilizing and Culture Building phase 3. Continued the ‘1Platform Kita Satu’ program that encourages CIMB Niaga to be the leader in digital banking services. 4.Launched the Indie Accounts teenage savings products as well as strengthening the digital existence of CIMB Niaga with the launch of the new Go Mobile, complemented with the latest features that enhance the security and ease of transactions. 5.Performed thematic portfolio reviews in order to detect risks potential due to macroeconomic indicator volatilities as well as its settlement steps 6. Recruited visually impaired people as Telesales Funding and hearing impaired people as Phone Banking Social Media, as well as provided Information Technology Trainings for people with disabilities. BOARD OF DIRECTORS DEVELOPMENT PROGRAM In order to support the implementation of duties of the Board of Directors to achieve the Bank’s sustainable growth and effective management, CIMB Niaga encourages activities that will enhance the competence of the Board of Directors through the orientation program for new Directors and training programs for existing Directors. Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report ORIENTATION PROGRAM FOR NEW DIRECTORS The orientation program for new Directors is stipulated in the Board of Directors Charter, which is uploaded on the Bank’s website. The orientation program aims to provide input for new Directors in order to gain an understanding of the Bank so as enabling the new Directors to perform their duties effectively and efficiently. The orientation program material is in the form of documents prepared by the Corporate Affairs work unit, covering: a. Vision and Mission b. Code of Ethics c. Organization Structure d. Articles of Association e. The Corporate Policy Manual (GCG Guidelines) f. The Board of Directors Charter and The Committees under the Board of Directors Charters g. Prevailing regulations on Banking and Capital Market h. Annual Report i. Business Plan In 2017, the orientation program was conducted for 1 (one) new Director, namely Rahardja Alimhamzah. BOARD OF DIRECTORS TRAINING PROGRAMS IN 2017 Risk Management Certification Pursuant to the Regulation of Employment (P2K) on the Implementation of Employee Learning and PBI No. 11/19/PBI/2009 dated 4 June 2009 and its amendments namely PBI No. 12/7/PBI/2010 dated 19 April 2010 on 421
  422. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management BOARD OF DIRECTORS Risk Management Certification for Management and Officers of Commercial Banks , the Board of Directors and the Board of Commissioners are required to participate in the competency/certification test program, in accordance with the regulatory provisions, namely Risk Management & Refreshment. All members of the Board of Directors have the Risk Management and/or Refreshment Certification in accordance with the applicable regulations. Competency Trainings and Development Programs Competency Trainings and Development Programs All members of the Board of Directors of CIMB Niaga are committed and required to improve their competence to support the implementation of the daily tasks. This commitment is reflected in the trainings attended by each member of the Board of Directors as described in the following table. Board of Directors Training Programs in 2017 Name Tigor M. Siahaan Wan Razly Abdullah Rita Mas’oen   Megawati Sutanto   Vera Handajani       John Simon Lani Darmawan 422 Type of Training/Seminar/Workshop/Sharing Date and Location 1. Digital Leadership Series 6 February 2017, Graha CIMB Niaga, Jakarta 2. BMC Offsite Training 21 August 2017, CIMB Niaga Icon, Bintaro 3. CIMBX Strategic Workshop 9-10 March 2017, Hotel Intercontinental, Bandung 4. YPO Extraordinary Leadership in Action 23 March 2017, Jakarta 5. GMC Offsite 9 June 2017, Jakarta 6. CIMB Board Offsite 26 – 27 July 2017, Kuala Lumpur 7. International Advisory Panel 18 – 19 September 2017, Kuala Lumpur 8. Khazanah Megatrends Forum 2017 25 November 2017, Shanghai 9. China Internet Finance Academy by McKinsey 21-24 November 2017, China 1. Digital Leadership Series 6 February 2017 at Graha CIMB Niaga, Jakarta 2. The Conference On The Emerging Technologies That Matter 14-15 February 2017, Singapore 3. BMC Offsite Training 9-10 March 2017 at Hotel Intercontinental, Bandung 4. Refreshment Sertifikat Manajemen Risiko 30 November 2017 at i Graha CIMB Niaga, Jakarta 1. Digital Leadership Series 6 February 2017 at Graha CIMB Niaga, Jakarta 2. BMC Offsite Training 9-10 March 2017 at Hotel Intercontinental, Bandung 3. Credit Forum: Multifinance 8 June 2017 at Graha CIMB Niaga, Jakarta 1. BMC Offsite Training 9-10 March 2017 at Hotel Intercontinental, Bandung 2. Linkage Clinic 2017 4 – 5 May 2017 in Jakarta 3. Credit Forum: Multifinance 8 June 2017 at Graha CIMB Niaga, Jakarta 1. BMC Offsite Training 9-10 March 2017 at Hotel Intercontinental, Bandung 2. Refocusing on Credit Risk Management, Credit Risk Model, Pricing, and Being Prepared for Upcoming Regulation 23 March 2017 at Four Season Hotel Jakarta 3. AML Sharing Session & Refreshment 24 March 2017 at Graha CIMB Niaga, Jakarta 4. Traded Credit Risk 12 April 2017 at Graha CIMB Niaga, Jakarta 5. Lean Six Sigma 22 May 2017 at Graha CIMB Niaga, Jakarta 6. Managing Risk in Unsecured Retail Credit 27 July 2017 at Graha CIMB Niaga, Jakarta 7. Cyber Security 14 September 2017 at Plaza Bapindo, Jakarta 8. Basel III - Net Stable Funding Ratio 4 December 2017 at Graha CIMB Niaga, Jakarta 1. CIMB Niaga Economic Forum 2017 26 January 2017 at Hotel Ritz-Carlton, Pacific Place, Jakarta 2. Workshop Sertifikasi Treasury Dealer Program Khusus (Fast Track) 4 February 2017 in Jakarta 3. BMC Offsite Training 9-10 March 2017 at Hotel Intercontinental, Bandung 4. Insurance Clients Gathering CIMB Niaga 13 March 2017 at Hotel Ritz-Carlton, Pacific Place, Jakarta 5. Wholesale Banking Retreat 7 – 9 July 2017 in Labuan, Malaysia 6. Refreshment Sertifikasi Manajemen Risiko 30 November 2017 at Graha CIMB Niaga, Jakarta 7. Bloomberg The Year Ahead Asia 6 December 2017 in Jakarta 8. GWB Post AMS 2017 8-9 December 2017 at The Chateau Spa & Organic Wellness Resort, Bukit Tinggi 1. Digital Leadership Series 6 February 2017 at Graha CIMB Niaga, Jakarta 2. BMC Offsite Training 9-10 March 2017 at Hotel Intercontinental, Bandung Annual Report CIMB NIAGA 2017
  423. Supporting Business Review Corporate Governance Report Name Fransiska Oei     Hedy Lapian     Pandji Djajanegara     Rahardja Alimhamzah*)     Corporate Social Responsibility Type of Training/Seminar/Workshop/Sharing Others Corporate Data Consolidated Financial Report Date and Location 1. Cyber Security Threats 9 February 2017 at Energy Building, Jakarta 2. BMC Offsite Training 9-10 March 2017 at Hotel Intercontinental, Bandung 3. Indonesia-Korea Financial Cooperation Forum ‘Challenges and Areas of Cooperation in the Financial Industries of Indonesia & Korea’ 12 April 2017 at Hotel Fairmont, Jakarta 4. International Seminar on Changing Consumer Behavior through Financial Literacy, Financial Inclusion and Consumer Protection 4 May 2017 at Hotel Westin, Nusa Dua - Bali 5. Arah Kebijakan dan Pengembangan Sistem Pembayaran di Indonesia 24 May 2017 at Hotel Pullman, Jakarta 6. Common Report Standard - Seminar 15 June 2017 at Graha CIMB Niaga, Jakarta 7. Workshop Implementasi GCG Berbasis ASEAN CG Scorecard 28 September 2017 at The Dharmawangsa, Jakarta 8. Seminar Role of The Boards in Creating and Sustaining Corporate Governance Culture 27 November 2017 at Hotel Pullman, Jakarta 9. Arah Kebijakan APU dan PPT serta Perlindungan Konsumen di Sektor Perbankan 7 December 2017 at Hotel Le Meridien, Jakarta 1. Digital Leadership Series 6 February 2017 at Graha CIMB Niaga, Jakarta 2. BMC Offsite Training 9-10 March 2017 at Hotel Intercontinental, Bandung 3. Personal Branding and Effective Communication Skills for Executive 26 April 2017 at Graha CIMB Niaga, Jakarta 4. Promoting The Right Person 28 April 2017 at Graha CIMB Niaga, Jakarta 1. Digital Leadership Series 6 February 2017 at Graha CIMB Niaga, Jakarta 2. BMC Offsite Training 9-10 March 2017 at Hotel Intercontinental, Bandung 3. BLS - Syariah Acceptance Criteria 9 May 2017 in Jakarta 4. Refreshment Sertifikat Manajemen Risiko 30 November 2017 at Graha CIMB Niaga, Jakarta 1. Digital Leadership Series 6 February 2017 at Graha CIMB Niaga, Jakarta 2. BMC Offsite Training 9-10 March 2017 at Hotel Intercontinental, Bandung 3. Credit Forum: Multifinance 8 June 2017 at Graha CIMB Niaga, Jakarta 4. Diskusi Panel: Intervensi Pemegeng Saham Pengendali Dalam Pelaksanaan GCG 9 Agust 2017 at Graha CIMB Niaga, Jakarta 5. Refreshment Sertifikat Manajemen Risiko 30 November 2017 at Graha CIMB Niaga, Jakarta *) Effective as a Director from the close of the EGMS 24 August 2017 INDEPENDENCE OF THE BOARD OF DIRECTORS All members of the Board of Directors have no financial, management, stock ownership, or family relationship with fellow members of the Board of Directors, members of the Board of Commissioners and/or the Ultimate Shareholders. Therefore, all members of the Board of Directors are declared to be independent. The Board of Directors must also adhere to the principle of independence and prioritize the interests of the Bank above his/her own interests, as well as work and behave with high integrity as stipulated in the Charter of the Board of Directors as follows: 1. Members of the Board of Directors are prohibited from utilizing the Bank and/or information obtained from the Bank for personal, family and/ or other parties’ interests that may harm and/or reduce the profits and reputation of the Bank or its subsidiaries. Annual Report CIMB NIAGA 2017 2. Members of the Board of Directors are prohibited from taking and/or receiving personal benefits from the Bank other than remuneration and other facilities stipulated by the GMS and/or internal policies. 3. Members of the Board of Directors are prohibited from using individual and/or professional advisors as consultants unless they meet the following requirements: a. The project is specific; b.Based on a clear contract, which at least covers the scope of work, responsibilities, and timeframe of work, as well as fees; c. The Consultant is an Independent Party and has the qualifications to work on specific projects. 423
  424. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management BOARD OF DIRECTORS CONCURRENT POSITIONS OF THE BOARD OF DIRECTORS Pursuant to the provisions of POJK No . 55/POJK.03/2016 on the Implementation of Good Corporate Governance for Commercial Banks, every member of the Board of Directors is prohibited from serving concurrently as a member of the Board of Commissioners, Board of Directors or executive officers of banks, companies, and/or other institutions except those permitted in the regulations. Members of the Board of Directors of CIMB Niaga have no concurrent positions other than those permitted under the applicable regulations. In the event the Board of Directors being responsible for the supervision of the Bank’s subsidiary, it may perform the functional duties of being a member of the Board of Commissioners of a non-bank subsidiary company controlled by the Bank, as long as the consequences of the position do not result in the neglect of the execution of duties and responsibilities as a member of the Board of Directors. No Name of Director Position in Other CIMB Niaga Position at CIMB Niaga 1 Tigor M. Siahaan President Director None 2 Wan Razly Abdullah Director President Commissioner 3 Rita Mas’Oen Director None 4 Megawati Sutanto Director None 5 Vera Handajani Director None 6 John Simon Director None 7 Lani Darmawan Director None 8 Fransiska Oei Director None 9 Hedy Lapian Director None 10 Pandji P. Djajanegara Director None 11 Rahardja Alimhamzah Director None *) Companies/Entities/ Organizations PT CIMB Niaga Auto Finance *) Effective as a Director from the close of the EGMS 24 August 2017 Wan Razly Abdullah serves as the President Commissioner of PT CIMB Niaga Auto Finance in the framework of supervising the Bank’s controlled subsidiary. BOARD OF DIRECTORS CONFLICT OF INTEREST As stated in the Board of Directors Charter, all members of the Board of Directors must avoid any potential conflict of interest at all times and under any circumstances. In the event of a conflict of interest, members of the Board of Directors are prohibited from taking action that may harm or reduce the Bank’s profits and must disclose any potential conflict of interest in all decision making. A member of the Board of Directors is not authorized to represent the Bank in the event of: a. A case in the Court of Law between the Bank and the involved member of the Board of Directors; 424 b. The involved member of the Board of Directors having a conflict of interest with the Bank. The procedures that members of the Board of Directors have to go through in the event of a conflict of interest are as follows: each member of the Board of Directors who personally, in any way, either directly or indirectly, has an interest in a proposed transaction, contract or agreement, in which the Bank becomes one of the parties, must state the nature of the interest in the meeting of the Board of Directors and must not be entitled to vote in matters relating to the proposed transaction or contract, unless the Board of Directors determines otherwise. Annual Report CIMB NIAGA 2017
  425. Supporting Business Review Corporate Governance Report Corporate Social Responsibility During 2017 , no member of the Board of Directors had a conflict of interest or potential conflict of interest with CIMB Niaga. TERM OF OFFICE OF THE BOARD OF DIRECTORS 1. The term of office of a member of the Board of Directors is effective as of the date specified in the GMS appointing him/her until the close of the 4th AGM after the effective date of the appointment without prejudice to the rights of the GMS to dismiss them at any time in accordance with Articles of Association and the applicable provisions. 2. The appointment of members of the Board of Directors is effective upon approval of the OJK or the fulfillment of the requirements stipulated in the OJK’s approval letter in respect of the fit and proper test and other relevant authorities, and approved by the shareholders through the GMS. 3.The Board of Commissioners may temporarily dismiss members of the Board of Directors by stating the reasons for such dismissal. The temporary dismissal must be notified in writing to the members of the Board of Directors concerned, Others Corporate Data Consolidated Financial Report and is followed up in accordance with applicable regulations. 4.In the event of a vacancy of the Independent Director’s position, the Bank must fill the vacant position at the latest by the date of the nearest GMS or be appointed based on the Board of Directors meeting with the approval of the Board of Commissioners within 6 (six) months of the vacancy. 5. The term of office of members of the Board of Directors ends in the event of: a. The term of office ends in accordance with the Articles of Association; b.Resignation in accordance with applicable provisions; c.No longer meets the requirements of the legislation; d. Passing away; e. Dismissed, based on GMS decision. 6.Members of the Board of Directors who have completed the term of office may be re-appointed by observing the applicable provisions. All members of the Board of Directors have passed the Fit and Proper test held by Bank Indonesia or OJK and have been appointed by the GMS as shown in the table below. Name Tigor M. Siahaan Wan Razly Abdullah Rita Mas’Oen Megawati Sutanto Vera Handajani Position President Director Term of Office Appointment GMS AGM dated 10 April 2015 BI/OJK Approval No. SR84/D.03/2015, dated 19 May, 2015 Re-appointment Term of Office - AGM 2019 Director of Strategy and Finance EGM dated 27 August 2009 No. 11/106/GBI/DPIP/ Condidential, dated 18 August 2009 AGM dated 15 April 2016 AGM 2020 Director of Operations & Information Technology EGM dated 27 August 2009 11/150/GBI/DPIP/ Confidential, dated 16 November 2009 AGM dated 15 April 2016 AGM 2020 EGM dated 15 December 2010 No. 13/23/GBI/DPIP/ Confidential, dated 3 March 2011 AGM dated 15 April 2016 AGM 2020 EGM dated 26 July 2013 No. 15/113/GBI/DPIP/ Condidential, dated 26 November 2013 AGM dated 15 April 2016 AGM 2020 No. SR143/D.03/2014, Dated 29 August 2014 - AGM 2018 Director of Credit Director of Risk Management John Simon Director of Treasury & Capital Market AGM dated 27 March 2014 Lani Darmawan Director of Consumer Banking AGM dated 15 April 2016 No. SR-75/D.03/2016 Dated 3 May 2016 - AGM 2020 Director of Compliance, Corporate Secretary & Legal AGM dated 15 April 2016 No. SR138/D.03/2016 Dated 27 July 2016 - AGM 2020 Fransiska Oei Annual Report CIMB NIAGA 2017 425
  426. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management BOARD OF DIRECTORS Name Position Term of Office Appointment GMS BI /OJK Approval Re-appointment Term of Office Hedy Lapian Director of Human Resources AGM dated 15 April 2016 No. SR154/D.03/2016 Dated 15 August, 2016 - AGM 2020 Pandji P. Djajanegara Director of Sharia Banking AGM dated 15 April 2016 No. SR-27/ PB.13/2016 Dated 4 October, 2016 - AGM 2020 EGM dated 24 August 2017 No. SR-84/PB.12/2017 Dated 31 May, 2017 - AGM 2021 Rahardja Alimhamzah* Director * Has effectively served as a member of the Board of Directors from the close of the EGM dated 24 August 2017 POLICY ON THE PROVISION OF LOANS TO THE BOARD OF DIRECTORS Loans to the Board of Directors are conducted under the normal pricing and terms policy, as conducted with non-related parties with the Bank. Loans to the Board of Directors must be calculated as per the Legal Lending Limit for CIMB Niaga in accordance with PBI No. 8/13/PBI/2006. The criteria and basis for the Executive Committee assessment based on each Term of References are as follows: 1. Number of meetings held 2. Attendance of the Board of Directors 3. SLA of Minutes of the Meeting 4. Action on Matters arising Performance Assessment Results of Committees in 2017 CRITERIA AND BASIS OF ASSESSMENT OF EXECUTIVE COMMITTEES In overall, the implementation of Committee meetings is considered effective. This can be measured by the participation of the Board of Directors in committee meetings during 2017, including decisions taken during the meeting discussions can be used as a reference. ExCo Committee Score Risk Management Committee (RMC) 430 Asset & Liability Committee (ALCO) 427 Information Technology Steering Committee (ITSC) 470 Operational Risk Management Committee (ORC) 470 Credit Policy Committee (CPC) 418 Capital Management Committee (CMC) 443 Performance Rating A. Excellent : >470 - 500 B. Good : 400 - <470 C. Fair : 300 - <400 D. Poor : 200 - <300 E. Very Poor : <200 426 Annual Report CIMB NIAGA 2017
  427. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Policy on the Diversity Composition of the Board of Commissioners and the Board of Directors CIMB Niaga has members of the Board of Commissioners and Board of Directors , which in addition to having a majority of banking backgrounds, also have various competencies and experiences in order to maintain competitive advantage and improve the Bank’s performance. The diversity composition of the Board of Commissioners and the Board of Directors is crucial in ensuring a robust decision-making process and effective bank management, in accordance with the needs of the Bank, as well as in line with the main strategy, vision and mission of CIMB Niaga. Diversity policies in the composition of the Board of Commissioners and the Board of Directors of the Bank, include: 1. Have at least 1 (one) female member in the composition of the Board of Commissioners and the Board of Directors 2. Have educational background and expertise such as accounting, finance, law and business. 3. Have at least 1 (one) Foreign Citizen member of the Board of Commissioners to enrich the knowledge and experience of the Board of Commissioners on the development of banking industry both inside and outside Indonesia. In addition, diversity in the composition of members of the Board of Commissioners and the Board of Directors includes, among others, work experience, independence, age, and gender. The diversity policy of the Board of Commissioners and the Board of Directors is aligned with the main strategy, as well as the Bank’s vision and mission, as follows: Diversity of the Board of Commissioners Nationality Consisting of: 1. 4 (four) members of the Board of Commissioners are Indonesian citizens 2. 3 (three) members of the Board of Commissioners are Malaysian citizens 3. 1 (one) member of the Board of Commissioners is an American citizen Education The level of education of members of the Board of Commissioners covers the Bachelor and Post Graduate levels within various fields of education such as economics, management, as well as political science & psychology. Work Experience Diverse work experience, includes: Minister/Chairman of Bappenas, Chairman of the Investment Panel Risk Committee, ASEAN Regional Strategy Group and ASEAN Regional Business Council, International Advisory Board of the Blavatnik School of Government, Oxford University, Expert Staff of the Board of Governors of Bank Indonesia, and other key positions at Bank Indonesia. Members of the Board of Commissioners and/or Board of Directors of national and multinational financial and non-financial institutions. Lecturers and Deans of prominent higher education institution both at home and overseas, Chief Risk Officer of multinational banks. Independency All members of the Board of Commissioners have no affiliations with fellow members of the Board of Directors or Board of Directors. There are 4 (four) Independent Commissioners. Age The age diversity of members of the Board of Commissioners is in a fairly productive and mature age, namely 70 years old – 45 years old. Gender There is 1 (one) female member of the Board of Commissioners. Diversity of the Board of Directors Nationality Consisting of: 1. 10 (ten) members of the Board of Directors are Indonesian citizens 2. 1 (one) member of the Board of Directors is a Malaysian citizen Education Levels of education include Bachelor and Post-Graduate levels within various fields of education such as economics, finance, law, commerce, business, computer science, accounting, and others. Work Experience Diverse work experience, includes: 1. Members of the Board of Directors of national and multinational financial and non-financial institutions 2. Various key positions in the national or foreign banks, such as the Head of Strategic Business Development, Senior Country Operations Officers, Head of Corporate Banking, Head of Operational Risk, Head of Trading & Structuring, Head of Treasury, Head of Network, Chief of Sharia Banking, and others. 3. Independent Commissioner of an insurance company 4. Founder and Senior Partner of Law Firms 5.Auditor All members of the Board of Directors have experience in the field of banking. Independency All members of the Board of Directors have no affiliations with fellow members of the Board of Directors, Board of Commissioners, and Shareholders of the Bank. Age The diversity of age of members of the Board of Directors is in a fairly productive and mature age, namely 46 years old – 60 years old. Gender There are 6 (six) female members of the Board of Directors, out of 11 (eleven) total members of the Board of Directors. Annual Report CIMB NIAGA 2017 427
  428. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management POLICY ON THE DIVERSITY COMPOSITION OF THE BOARD OF COMMISSIONERS AND THE BOARD OF DIRECTORS Age of BOD Age of BOC 12 .5% 36% 60 - 69 Year 50 - 59 Year 40 - 49 Year 50 - 59 Year 40 - 49 Year 64% 37.5% 50% Gender of BOD Gender of BOC 12.5% 45% Female Male Male Female 87.5% 55% Citizenship of BOC and BOD Education of BOC and BOD 16 14 14 12 12 10 10 8 8 6 6 4 4 2 2 0 428 Citizenship Indonesia Malaysia USA 0 Education S1 S2 S3 Annual Report CIMB NIAGA 2017
  429. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Skills of BOC and BOD 1 1 6 1 1 1 1 1 Consolidated Financial Report Independency of the Board of Commissioners 50 % 3 1 Others Corporate Data 2 Economic Management Accounting Computer Medical Law Social Political Business Risk Management Investment Bank 50% Non-Independen Commissioner 50% Independen Commissioner 50% The current composition of the Board of Commissioners and Board of Directors of CIMB Niaga complies with the above diversity policy and is in line with CIMB Niaga’s core strategy, vision, and mission. Annual Report CIMB NIAGA 2017 429
  430. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Corporate Governance Self-Assessment Results in 2017 ASSESSMENT CRITERIA In accordance with POJK No .13/SEOJK.03/2017 concerning the Implementation of Good Corporate Governance for Commercial Banks, the Bank conducts self-assessments on the implementation of Good Corporate Governance principles (Transparency, Accountability, Responsibility, Independence, Fairness) to reach Corporate Governance Rating which is a factor in determining the Bank’s Health Level in accordance with POJK No. 4/POJK.03/2016. This assessment is conducted on 3 aspects of the Governance system, which are the structure, process and outcome of the Governance over the 11 Assessment Factors of Corporate Governance Implementation as follows: 1. Conduct of duties and responsibilities of the Board of Directors; 2. Conduct of duties and responsibilities of the Board of Commissioners; Completeness and implementation of the 3. Committee’s duties; 4. Management of conflict of interest; 5. Implementation of Compliance function; 6. Implementation of Internal Audit function; 7. Implementation of External Audit function; 8.Implementation of Risk Management including Internal Control System; 9. Provision of funds to related parties and large funds; 10. Transparency of the Bank’s financial and nonfinancial conditions, reports on the Bank’s Good Corporate Governance and internal reporting; and 11.Bank’s strategic plan. ASSESSOR CIMB Niaga conducted its self-assessments on Good Corporate Governance in 2017 by involving the Boards of Commissioners and Directors, Independent Parties, Executive Officers and independent units in the Bank to produce a comprehensive and structured assessment concerning the effectiveness of the Governance system and the quality of Governance results. The selfassessment also included Good Corporate Governance in the Subsidiaries in accordance with the relevant regulations. The following is the self-assessment result of CIMB Niaga’s Good Corporate Governance in December 2017. Assessment Result and Score SELF ASSESSMENT OF CORPORATE GOVERNANCE IMPLEMENTATION Entity Rating Rating Definition BANK (Individually) 2 GOOD CIMB Niaga Auto Finance (CNAF) 2 GOOD CONSOLIDATED 2 GOOD RECOMMENDATION AND FOLLOW UP OF GCG ASSESSMENT RESULTS 2017 CIMB Niaga’s Good Corporate Governance rating on an individual and consolidated basis is 2 (Good), which reflects that the Management of CIMB Niaga and Subsidiaries has generally implemented Good Corporate Governance, compliance with the Governance principles is adequate, regardless of the deficiencies which are still noted in the implementation of the Good Corporate Governance principles. In general, these deficiencies are not very significant and can be resolved under normal actions by the management of the Bank and Subsidiaries. 430 CIMB Niaga continues its commitment in and strives to undertake corrective measures aimed at supporting the Bank’s sustainability. CIMB Niaga also performs alignment with its Subsidiaries both in terms of strategic plan and risk management, as stipulated in the financial conglomeration regulations. GOVERNANCE STRUCTURE The structure and infrastructure of Good Corporate Governance at CIMB Niaga are already in compliance. The changes in the Bank’s management during this period has been complied with regulations and reported to the authorities. In addition to complying with the minimum requirements concerning the Annual Report CIMB NIAGA 2017
  431. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report establishment of Committees at the Board of Commissioners and Board of Directors level , CIMB Niaga also established Transactional Committees to support the implementation of the duties and responsibilities of the Board of Directors in managing the Bank’s operational activities. The Bank’s internal policies are based on a risk-based framework and are tailored to the business complexity and organization levels within the Bank. The Bank also continues to follow up any recommendations for improvements on the Governance structure and infrastructure. EXTERNAL ASSESSMENT GOVERNANCE PROCESS The Good Corporate Governance process is implemented based on Good Corporate Governance and Prudent principles aimed at achieving sustainable management and at meeting the interests of stakeholders. The Bank’s initiatives in this period include the development of compliance and risk culture by increasing awareness of compliance and risk mitigation aspects, strengthening and complementing the internal control function in each risk taking unit to minimize weaknesses that could adversely affect the Bank’s Good Corporate Governance performance and results. In addition, with the rapid development of information technology, CIMB Niaga also continues to improve the quality of information systems and technology to provide optimal, safe and reliable financial services to customers and to provide timely and accurate information to stakeholders. One of the efforts made by CIMB Niaga is to refer to the ASEAN Corporate Governance Scorecard as a guideline for the implementation of GCG principles, and to make improvements as deemed necessary. GOVERNANCE OUTCOME CIMB Niaga adheres to the key prudential ratios in accordance with regulations. The Bank submits its financial report and non-financial information to regulators in accordance with provisions. In addition, the Bank also discloses the financial and non-financial conditions, product and service information as disclosed on the Bank’s website. CIMB Niaga performance achievements during 2017 are as disclosed under the section of management achievements including other activities as well (such as financial literacy, corporate social responsibility, awards in conventional banking and sharia). Annual Report CIMB NIAGA 2017 ASEAN Corporate Governance Scorecard CIMB Niaga’s commitment to GCG is not merely meeting the requirements only, but more than that, CIMB Niaga strives to improve the implementation of GCG principles by understanding the values within every GCG principle so that the implementation of GCG principles by CIMB Niaga aims to achieve good corporate governance and ultimately to add value for all stakeholders of CIMB Niaga. In addition to the self-assessment of GCG implementation as stipulated in OJK Circular Letter No. 15/SEOJK.03/2015 on Integrated Governance for Financial Conglomerations and No. 13/SEOJK.03/2017 on Good Corporate Governance for Commercial Banks as stated earlier, CIMB Niaga is also assessed by the Indonesian Institute for Corporate Directorship (IICD), RSM and the Financial Services Authority (OJK) based on the principles of ASEAN Corporate Governance Scorecard, also conducts self-assessments for establishing targets and action plans for improvements to be made by the Bank. In an assessment conducted by IICD in 2017, the Bank received an award as “Best Overall BigCap” at the “The 9th IICD Corporate Governance Conference and Awards”. 431
  432. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management CORPORATE GOVERNANCE SELF-ASSESSMENT RESULTS IN 2017 RECOMMENDATION OF ASEAN CORPORATE GOVERNANCE SCORECARD FROM EXTERNAL PARTIES Practices Exceeding the Minimum Expectations CIMB Niaga discloses a number of good corporate governance practices that exceed minimum standards , including: 1. The Bank released the AGMS Summons (accompanied by the schedule, detailed agenda, and explanation of all agenda of the AGMS), no later than 28 days prior to the date of the AGMS 2. The Bank adopts an internationally recognized reporting framework for sustainability (namely the GRI, Integrated Reporting, SASB) 3. The audited Financial Statements was issued within 60 days after the end of the financial year 4. The Bank has 1 (one) female Independent Commissioners 5. The Bank has a policy and disclosed measurable objectives for the diversity of the composition of the Board of Commissioners and the Board of Directors as well as reports on the progress of its implementation in achieving the objectives 6. The Nomination Committee performs the identification process on the quality of the Board of Directors that has been aligned to the strategy of the Bank 7. The Bank has a separate board level Risk Committee Areas for Improvement Recommendations Follow up of Recommendations A. Rights of Shareholders 1. The right to participate effectively in and vote in the GMS and to be informed on the Rules of the GMS, including voting procedures. The Bank has published the Rules of the GMS through the Bank’s website, 28 days prior to holding the GMS or in conjunction with the publication of the GMS Summons. The Rules of the GMS was also distributed to shareholders and conveyed by the Corporate Secretary prior to the start of the GMS. B. Equal treatment for Shareholders The expected minimum standards have been implemented with no specific improvement required - C. Role of Stakeholders The expected minimum standards have been implemented, with no specific improvement required - D. Disclosure and Transparency 432 1. Transparency on ownership structure 1. The Bank has disclosed the share ownership of the Bank by each member of the Board of Commissioners and the Board of Directors in the Bank’s Annual Report. To improve disclosure, the Bank will also disclose the Bank’s share ownership by the Bank’s senior officers. 2. Where the same Public Accounting Firm is engaged for both Financial Statements audits and non-audit services. 2. The Bank always discloses the information on Public Accounting Firm assigned and the costs incurred for each assignment by the Bank, both for audit or non-audit services. Annual Report CIMB NIAGA 2017
  433. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Areas for Improvement Recommendations Follow up of Recommendations E . Management Responsibility Improvements can be performed on the following areas: 1. Management Structure & Composition 1. The Bank continuously complies with the structure and composition of the Board of Commissioners and the Board of Directors as required by the applicable regulations and in accordance with good governance practices. 2. Remuneration Committee/Compensation Committee 2. The Bank already established the Nomination and Remuneration Committee. The implementation of duties and responsibilities, including the holding of meetings by the Nomination and Remuneration Committee has been disclosed in the Bank’s Annual Report. 3. Audit Committee 3. The Bank will refine the Audit Committee Charter, in accordance with the recommendations of the ASEAN Corporate Governance Scorecard 4. Board Meetings and attendance 4. The Bank has and disclosed the policies on: a. Minimum attendance quorum of Board of Commissioners and Board of Directors Meetings is at 2/3 of the total members of the Board of Commissioners or Board of Directors. a. The Board of Commissioners or the Board of Directors shall attend the Board of Commissioners Meeting or the Board of Directors Meetings at a minimum of 75% in a year. 5.Appointment and Commissioners 6. Remuneration Issues Re-appointment of Directors and 5. Pursuant to the Articles of Association, each member of the Board of Commissioners and Board of Directors has a term of office of 4 years and can be reappointed. 6.The Bank has disclosed the remuneration structure of Commissioners, Independent Commissioners, and Directors in the Bank’s Annual Report. Specific Items Needing Attention The Bank does not have bad governance practices, and there are no issues that need special attention or followups from the Board of Directors. Annual Report CIMB NIAGA 2017 433
  434. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Performance Assessment of the Boards of Commissioners and Directors PERFORMANCE ASSESSMENT PROCEDURE FOR BOARDS OF COMMISSIONERS The Board of Commissioners performance assessment is performed through the self-assessment approach , covering collective assessment on the performance of the Board of Commissioners as well as individual assessment on each Commissioner. The final evaluation of the assessment will be performed by the President Commissioner based on the recommendation of the Nomination and Remuneration Committee. Performance assessment shall be held at least once in a year. PERFORMANCE ASSESSMENT CRITERIA FOR BOARD OF COMMISSIONERS Criteria used in performance evaluation of the Board of Commissioners and on Board of Commissioners Committees are as follows: • Collective Assessment Assessments are conducted by each Commissioner on the overall performance of the Board of Commissioners. 434 Assessment criteria are: 1.Structure of the Board of Commissioners covering the adequacy and diversity of competencies and experience in supporting the functions of the Board of Commissioners, as well as the effectiveness of meeting arrangements (frequency, time, duration); Strategic thinking that includes an 2. understanding of the Bank vision, mission, strategy, and business plan; 3. Supervision and governance covering Board of Directors’ performance, risk management issues, and addressing the potential/existence of conflict of interest; 4. The effectiveness of the Board of Commissioners in discussing Bank issues as well as providing recommendations to the Board of Directors. • Individual Assessment Assessment are conducted by each Commissioner on his/her own performance (self-assessment) covering: 1. Strategic thinking; 2. Knowledge on the banking industry; and 3.Individual contribution in performing his/ her function as a member of Board of Commissioners. Performance assessment for the Board of Commissioners conducted by each member of the Board of Commissioners and discussed by the Nomination and Remuneration Committee, before submitted for President Commissioner’s approval. PARTIES PERFORMING BOARD OF COMMISSIONERS PERFORMANCE ASSESSMENT Performance assessment is performed by each Commissioner through the self-assessment method. PERFORMANCE ASSESSMENT OF BOARD OF COMMISSIONERS RESULTS IN 2017 In 2017, the Board of Commissioners performed its oversight function well to ensure the achievement of Bank’s performance and meeting the expectations of the shareholders. The Board of Commissioners’ self-assessment results (collective assessment) in 2017 was 4.1 (Very Satisfactory). The “Strategic Thinking” and “Effectiveness of Discussion and Recommendation” were the criteria with the highest score, namely an average of 4.2 (Very Satisfactory), while “Supervision and Governance” was the criteria with the lowest score, namely 3.9 (Exceeding Expectations), the average assessment result on each individual member of the Board of Commissioners (individual assessment) was 4.3 (Very Satisfactory). Annual Report CIMB NIAGA 2017
  435. Supporting Business Review Corporate Governance Report Corporate Social Responsibility PERFORMANCE ASSESSMENT OF BOARD OF DIRECTORS (INCLUDING PRESIDENT DIRECTOR) The Board of Directors performance assessment, including of the President Director, is conducted to monitor the implementation of strategy and performance achievement every year, in which CIMB Niaga applies the Balanced Scorecard approach in interpreting the strategic objectives in Key Performance Indicators (KPI), which jointly agreed by the Board of Directors, received recommendation from Nomination and Remuneration Committee and approved by the Board of Commissioners. The KPI are subsequently conveyed to all employees to ensure consistency with the Bank’s objectives and strategies. The Board of Directors KPI Framework is prepared in accordance with the Bank’s strategic objectives to achieve performance targets in 2017 that are in line with the long-term aspirations and targets. Others Corporate Data Consolidated Financial Report Performance targets are set in the KPI of each Director in accordance with his/her duties and responsibilities, covering collegial and individual responsibilities which include financial and non-financial targets. The result of assessment and evaluation of performance of the Board of Directors based on the KPI achievement of each Director at the end of the year is submitted to the Nomination and Remuneration Committee for their review and recommendation prior to being given to the Board of Commissioners for approval. The result of assessment and evaluation is a Performance Appraisal to measure achievement of targets that set out in the KPI. This will affect the overall performance assessment of the directorate of each Director. Performance assessment shall be held at least once in a year. PARTIES PERFORMING BOARD OF DIRECTORS PERFORMANCE ASSESSMENT Parties involved in assessment of the Board of Directors are the President Director, the Nomination & Remuneration Committee, and the Board of Commissioners. Components of Board of Directors Performance Assessment in 2017 Directorate Treasury and Capital Market Credit * Risk Management Operational and Information Technology Compliance, Corporate Affairs & Legal Strategy & Financial Human Resources Shared Target Sharia Banking 1 Perbankan Konsumer (Retail) Performance Parameter Business Banking * (Corporate and MSME) No. Business Enabler President Director Business Unit - 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 2 Financial 55% 40% 40% 40% 40% 20% 10% 20% 15% 20% 15% 3 Customer 10% 10% 10% 10% 10% 10% 20% 10% 20% 10% 15% 4 T18 Initiatives/ Key Focus Areas 10% 5% 5% 5% 5% 25% 25% 25% 20% 25% 25% 5 Risk & Compliance 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% 6 Learning & Growth 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% *Notes: • Business Banking oversees Corporate Banking, Commercial Banking and MSME Banking. • Credit oversees Asset Restructuring & Recovery and Credit Underwriting for the business segment. Annual Report CIMB NIAGA 2017 435
  436. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Remuneration Policy CIMB Niaga ’s risk based remuneration policy No A.06.02 has been effective since October 2017. PURPOSE AND BACKGROUND CIMB Niaga’s remuneration policy for the Board of Commissioners, Board of Directors and employees, both mandatory and supplementary in nature, has been drawn up according to the prevailing rules and regulations. The remuneration policy serves as one of the important aspects in attracting, motivating, and retaining the best employees in providing qualified human resources. The formulation of this remuneration policy is an integral part of the Bank’s financial capabilities and is always implemented based on competitive, fair and risk-based principles in line with the directions and policies of the OJK. In formulating the remuneration policy, the Bank does not engage with external consultant, but to maintain competitiveness of the Bank’s remuneration policy, it continuously conducts benchmarking through surveys conducted by independent parties. RISK-BASED REMUNERATION POLICY The Bank’s risk based remuneration policy is applicable to all employee in every level and function, and have been adjusted as per POJK No. 45/POJK.03/2015 dated December 23, 2015 and SEOJK No. 40/SEOJK.03/2016 dated September 26, 2016 regarding the Implementation of Good Corporate Governance for the Provision of Remuneration for Commercial Banks, which includes : • The prudent principle in providing risk-based remuneration. • Variable remuneration is provided in accordance with regulatory requirements related to remuneration for commercial banks In implementing benefits program, CIMB Niaga continuously improve its remuneration strategy, include reviewing the remuneration policy based on performance, risk and enablement. The main risk profile in remuneration policy is cordially being adjusted to the Bank’s annual risk profile which taking consideration of market condition, industry growth and Bank financial capability. Therefore, the main risk profile will impacted the implementation of variable remuneration. 436 PERFORMANCE EVALUATION IN RELATION WITH REMUNERATION AND RISK Performance evaluation is realized through Key Performance Indicator (KPI), where KPI is set based on target of the Bank, related unit, individual and aligned with the Bank vision, mission and strategy with consideration of risk and compliance aspects. The Bank periodically evaluates and reviews performance as consideration for remuneration. REMUNERATION POLICY REVIEW AND INDEPENDENCY CIMB Niaga periodically reviews the remuneration system and the welfare of employees, with consideration of the following factors : • The Bank’s financial capability competency and performance •Employee’s (meritocracy) • Market remuneration practices (market competitiveness) • Eligibility and fairness principles • Internal equity • Position’s risk • The Bank’s long-term strategy CIMB Niaga is committed to implement a competitive, fair, balanced and risk-based remuneration system and always ensures that no employee receives compensation below the requirements stipulated by the government. CIMB Niaga also continuously reviews and updates the remuneration policies to be relevant with the industry growth and business strategies and includes compliance aspect based on the prevailing banking regulations. To ensure impartiality in managing employee remuneration, including employees in control unit, the Bank ensures decisions on performance evaluation and remuneration are supervised and reviewed up to Nomination and Remuneration Committee (NRC). Annual Report CIMB NIAGA 2017
  437. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report a .Material Risk Taker (MRT) can be determined by using qualitative methods that consider the position’s scale of responsibilities which affects main risk profile of the Bank. b.MRT can also be categorized quantitatively by comparing variable remuneration scales between MRT and non-MRT employees by considering performance and the level of risk of certain positions. As an example of Good Corporate Governance in relation to remuneration, the Bank has renewed and communicated the Remuneration Structure and Remuneration Scale (SUSU) in accordance with Ministerial Decision No. 1, year 2017 on Remuneration Structure and Scale. In addition, the Bank has adopted a remuneration policy with due observance to POJK No. 45/POJK.03/2015 and SEOJK No. 40/SEOJK.03/2016 on the Implementation of Good Corporate Governance in Remuneration for Commercial Banks as follows. All Directors and/or employee who fulfil those definitions are determined as MRT, whereby the Bank currently has 14 individuals categorized as MRT. DETERMINATION OF MATERIAL RISK TAKER (MRT) Determination of Material Risk Taker (MRT) can be categorized as follows : Board of Commisioners Remuneration Board of Commissioners Remuneration of Board of Commissioners GMS GMS decided Board of Commissioners Proposed to GMS Implemented by the Board of Directors Nomination & Remuneration Committee The Nomination and Remuneration Committee submit recommendations and proposals to the Board of Commissioners The formulation of the structure, policy, and remuneration of each Commissioner is conducted with respect to the duties, authority, performance, and responsibility of the Board of Commissioners, and the prevailing remuneration in the banking industry (peers group), and Bank’s financial ability. Procedures for determining the Board of Commissioners remuneration: • Nomination and Remuneration Committee discuss the Board of Commissioners’ remuneration with respect to information on the market range and standard of remuneration in the banking industry (peers group) and Bank’s financial ability Annual Report CIMB NIAGA 2017 437
  438. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management REMUNERATION POLICY • Nomination and Remuneration Committee submit remuneration recommendation which to be discussed in the Board of Commissioners meeting • Board of Commissioners analyses the recommendation from Nomination and Remuneration Committee and propose the remuneration for the Board of Commissioners to the GMS. • The GMS determines the remuneration for the Board of Commissioners, to be then accordingly implemented by the Board of Directors. BOARD OF COMMISSIONERS’ REMUNERATION STRUCTURE The Board of Commissioners remuneration structure consists of honorarium, meeting allowance, transportation allowance, holiday allowances and year-end allowance, as well as other facilities such as health and communication allowances, and club membership. Based on the 2017 AGMS decision, detailed information on remuneration and facilities policy for members of the CIMB Niaga Board of Commissioners are as follows: A. Remuneration Package and Other Facilities Received Amount Received in 1 Year by Non-Independent Commissioner Types of Remuneration and Other Facilities Remuneration (salary, routine allowances, tantiem, and other nonnatura facilities) 2016 2017 Person Rp (Million) Person Rp (Million) 4 7,297 4 6,847 - - - 1) Other natura facilities that : a. Could be Owned - b. Could Not be owned - - - - Total 4 7,297 4 6,847 Amount Received in 1 Year by Independent Commissioner Types of Remuneration and Other Facilities Remuneration (salary, routine allowances, tantiem, and other nonnatura facilities) 2016 2017 Person Rp (Million) Person Rp (Million) 6 8,772 4 8,938 - - - 2) Other natura facilities that : a. Could be Owned - b. Could Not be owned - - - - Total 6 8,772 4 8,938 Remuneration per Person Non-independent Commissioner Independent Commissioner 2016 2017 2016 2017 Above Rp5 billion - - - - Above Rp2 billion to Rp5 billion 1 1 2 4 Above Rp1 billion to Rp2 billion 3 3 2 - Above Rp500 million to Rp1 billion - - 2 - Up to Rp500 million - - - - Notes : 1) Including the remuneration of 1 (one) Commissioner who no longer active as of AGMS on 24th August 2017. 2) Including remuneration of 2 (two) Independent Commissioner who no longer active as of AGMS on 15th April 2016. All Board of Commissioners (including Independent Commissioner) of CIMB Niaga do not receive any share or bonus. 438 Annual Report CIMB NIAGA 2017
  439. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report B . Variable Remuneration for the Board of Commissioners Amount Received in 1 Year by Non-Independent Commissioner Variable Remuneration 2016 2017 Person Rp (Million) Person Rp (Million) Nil Nil Nil Nil Total Amount Received in 1 Year by Independent Commissioner Variable Remuneration 2016 Rp (Million) Person Rp (Million) Nil Nil Nil Nil Total Board of Directors Remuneration Remuneration of Board of Directors 2017 Person Board of Commissioners propose to the GMS 5 2 Board of Commissioners 1 GMS 3 4 GMS authorised the Board of Commissioners with regard to the recommendation of the Nomination & Remuneration Committee Nomination & Remuneration Committee The Nomination and Remuneration Committee submit recommendations and proposals to the Board of Commissioners The formulation of the structure, policy and remuneration amount of remuneration of each Director is conducted with respect to the duties, powers and responsibilities of the Board of Directors, the prevailing remuneration in the banking industry (peer groups), the Bank performance, individual performance of each Director, and the Bank’s financial capability. Procedures for determining Board of Directors remuneration: • The Nomination and Remuneration Committee discusses the Board of Directors remuneration by considering the information on the remuneration market range and standards with similar industries (peer group), the Bank performance, the individual performance and risk of each Director with the achievement of predefined KPIs, as well as Bank’s financial ability. Annual Report CIMB NIAGA 2017 • Afterwards, the Nomination and Remuneration Committee gives remuneration recommendations which to be discussed in Board of Commissioners Meeting. •The Board of Commissioners study the recommendation from the Nomination & Remuneration Committee and suggests the remuneration to the GMS. • The GMS determines the remuneration for the Board of Directors by granting authority to the Board of Commissioners to set Board of Directors’ remuneration with regards to the recommendations submitted by the Nomination & Remuneration Committee, to be accordingly implemented by the Board of Directors. 439
  440. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management REMUNERATION POLICY INDICATORS FOR DETERMINING BOARD OF DIRECTORS REMUNERATION The determination of Board of Directors ’ remuneration is based on the Bank’s performance covering the Bank’s financial performance, level of health, and risk management practices in accordance with regulatory requirements. Furthermore, the remuneration is also determined by considering national economic conditions. Further details on the performance indicators are outlined in the Performance Assessment of the Board of Commissioners and Board of Directors in this Annual Report. BOARD OF DIRECTORS REMUNERATION STRUCTURE The Board of Directors’ remuneration structure consists of salary, bonus, transportation allowance, housing allowance, holiday allowance and year-end allowance as well as other facilities such as health and communication facilities, and club memberships. Based on the 2017 AGMS decision, detailed information on remuneration and facilities policy for members of the CIMB Niaga’s Board of Directors are as follows: A. Remuneration Package and Other Facilities Received Amount Received in 1 Year by Board of Directors Types of Remuneration and Other Facilities Remuneration (salary, routine allowances, tantiem, and other non-natura facilities) 2016 2017 Person Rp (Million) Person Rp (Million) 13 72,286 11 66,183 - - - 3) Other natura facilities that : a. Could be Owned - b. Could Not be owned Total - - - - 133) 72,286 11 66,183 Total Directors Remuneration per Person 2016 2017 Above Rp5 billion 8 9 Above Rp2 billion to Rp5 billion 5 2 Above Rp1 billion to Rp2 billion - - Above Rp500 million to Rp1 billion - - Up to Rp500 million - - B. Variable Remuneration for the Board of Directors Amount Received in 1 Year by Board of Directors Variable Remuneration Total 3) 440 2016 2017 Person Rp (Million) Person Rp (Million) 133) 48,580 11 54,266 Including the remuneration for 3 (three) Directors who were no longer active as of close of the AGMS on 15 April 2016. Annual Report CIMB NIAGA 2017
  441. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Sharia Supervisory Board Remuneration Board of Commissioners Remuneration of Sharia Supervisory Board GMS GMS decides Board of Commissioners propose to GMS Board of Directors implement accordingly Nomination & Remuneration Committee The Nomination and Remuneration Committee submit recommendations and proposals to Board of Commissioners The formulation of the structure, policy and remuneration amount of remuneration of each Sharia Supervisory Board is conducted with respect to the duties, powers, performance and responsibilities of the Sharia Supervisory Board, the prevailing remuneration in the banking industry (peer groups), the Bank’s financial capability. Procedures for determining Sharia Supervisory Board remuneration : • The Nomination and Remuneration Committee discusses the Sharia Supervisory Board remuneration by considering the information of the information on the remuneration market range and standards with similar industries (peer groups) and the Bank’s financial capability. • Afterwards, the Nomination and Remuneration Committee gives recommendation for further discussion in a Board of Commissioners Meeting. • The Board of Commissioners study the recommendation from the Nomination & Remuneration Committee and suggests the remuneration to the GMS. • The GMS determines the remuneration for the Sharia Supervisory Board, to be then accordingly implemented by the Board of Directors. SHARIA SUPERVISORY BOARD REMUNERATION STRUCTURE The Sharia Supervisory Board remuneration structure consists of honorarium, meeting allowance, holiday and year-end allowance. Detailed information in regards to remuneration and facilities policy for members of the CIMB Niaga Sharia Supervisory Board is as follows: A. Remuneration Package and Other Facilities Received Amount Received in 1 Year by Sharia Supervisory Board Types of Remuneration and Other Facilities 2016 2017 Person Rp (Juta) Person Rp (Juta) 3 1,569 3 1,603 a. Could be Owned - - b. Could Not be owned - - Total 3 1,569 3 1,603 Remuneration (salary, routine allowances, tantiem, and other non-natura facilities) Other natura facilities that : Annual Report CIMB NIAGA 2017 441
  442. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management REMUNERATION POLICY Sharia Supervisory Board Remuneration per Person 2016 2017 Above Rp5 billion - - Above Rp2 billion to Rp5 billion - - Above Rp1 billion to Rp2 billion - - Above Rp500 million to Rp1 billion 1 1 Up to Rp500 million 2 2 B . Variable Remuneration for the Sharia Supervisory Board Amount Received in 1 Year by Sharia Supervisory Board Variable Remuneration 2016 Total 2017 Person Rp (Million) Person Rp (Million) Nil Nil Nil Nil EMPLOYEE AND MANAGEMENT SHARE OWNERSHIP PROGRAM During 2017, CIMB Niaga has no employee and/or management share ownership program. Number of Share Owned (shares) Description/Name Number of Stock Option Distributed (shares) Exercised (shares) Option Price (Rp) Period 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 BOD Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil BOC Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Executives Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Total Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Highest and Lowest Salary Ratio Ratio Ratio of the highest and lowest Employee’s Salary 2016 2017 104.6 : 1 112.31 : 1 Ratio of the highest and lowest Director’s Salary 4.0 : 1 4.28 : 1 Ratio of the highest and lowest Commissioner’s Salary 1.50 : 1 1.50 : 1 Ratio of the highest Director’s and the Highest of Employee’s Salary 3.60 : 1 3.80 : 1 Variable Remuneration for Employees Amount Received in 1 Year by Employees Variable Remuneration Total 442 2016 2017 Personnel Rp (Million) Personnel Rp (Million) 10,223 247,314 9,489 266,776 Annual Report CIMB NIAGA 2017
  443. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Fixed and Variable Remuneration for Parties in the Material Risk Takers (MRT) Category A. Fixed Remuneration 2016 2017 1. Cash Nil Nil 2. Shares/share-based instruments issued by the Bank Nil Nil 2016 2017 B. Variable Remuneration Tidak Ditangguhkan Ditangguhkan Tidak Ditangguhkan Ditangguhkan 1. Cash Nil Nil Nil Nil 2. Shares/share-based instruments issued by the Bank Nil Nil Nil Nil Quantitative Information for Parties in the MRT Category 2016 2016 Total Deduction during Reporting Types of Variable Remuneration Total Deduction during Reporting Deferred Amount Explicit Adjustment (A) Implicit Adjustment (B) Total (A+B) Deferred Amount Explicit Adjustment (A) Implicit Adjustment (B) Total (A+B) 1. Cash (in million Rupiah) Nil Nil Nil Nihil Nihil Nihil Nihil Nihil 2.Shares/ share-based instruments issued by the Bank (in number of shares and in nominal of millions, conversion value of the share) Nil Nil Nil Nil Nil Nil Nil Nil Total Nil Nil Nil Nil Nil Nil Nil Nil Total Severance Granted to Employees Affected by Termination and Total Amount Paid Nominal Amount of Severance paid per person in 1 (One) Year Number of Employees 2016 2017 Above Rp1 billion 30 0 From Rp500 million to Rp1 billion 78 1 Up to Rp500 million 472 299 Annual Report CIMB NIAGA 2017 443
  444. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Policy , Frequency, and Attendance Rates of the Board of Commissioners Meetings, the Board of Directors Meetings, and Joint Meetings of the Board of Commissioners with the Board of Directors THE BOARD OF COMMISSIONERS MEETINGS AND JOINT MEETINGS OF THE BOARD OF COMMISSIONERS WITH THE BOARD OF DIRECTORS (“MEETING”) 1. The Board of Commissioners must hold regular meetings at least once a month or whenever deemed necessary. 2. Joint meetings of the Board of Commissioners inviting the Board of Directors have to be held at least 1 (one) time every 3 (three) months or whenever deemed necessary. 3. Members of the Board of Commissioners must attend at least 75% (seventy five percent) of the meetings per year with physical attendance required at least 6 (six) times per year. 4. Meetings are valid and entitled to take binding decisions if attended/represented by at least 2/3 (two thirds) of the total number of members of the Board of Commissioners. 5.Material of Board of Commissioners Meetings shall be submitted to all members of the Board of Commissioners 5 (five) working days prior to the date of the Meeting. 6.In the event of a member of the Board of Commissioners being unable to physically attend a Meeting, then he or she may attend through teleconferencing/telepresence. 7.The minutes of the Board of Commissioners meetings must mention the physical presence or telepresence of each member of the Board of Commissioners. 8. The Board of Commissioners Meetings for 2017 was scheduled at the end of 2016 and uploaded on the Bank’s website. 9.The minutes of the meetings of the Board of Commissioners must be signed by the members of the Board of Commissioners in attendance and distributed to all members of the Board of Commissioners. 10.The minutes of the joint meetings of the Board of Commissioners inviting the Board of Directors must be signed by the Board of Commissioners in attendance and also distributed to the Board of Directors. 11. The schedule of the Board of Commissioners Meetings and Joint Meetings between the Board of Commissioners and Board of Directors in 2017 had been drawn up at the end of 2016 and approved in the Board of Commissioners Meeting on 19 December 2016. Meeting Frequency and Attendance of the Board of Commissioners for 2017 Meetings The Board of Commissioners Attendance Rate The Board of Commissioners Inviting The Board of Directors Attendance Rate Dato’ Sri Nazir Razak 7/7 100% 5/5 100% Glenn M. Surya Yusuf 7/7 100% 5/5 100% Zulkifli M. Ali 7/7 100% 5/5 100% Pri Notowidigdo 7/7 100% 5/5 100% Jeffrey Kairupan 7/7 100% 5/5 100% Armida S. Alisjahbana 7/7 100% 5/5 100% Name David R. Thomas 6/7 85% 4/5 80% Tengku Dato’ Sri Zafrul Tengku Abdul Aziz*) 3/3 100% 1/1 100% *) Attended the meeting as Invitee after appointed at EGMS on 24 August 2017 and effective as a Commissioner on 16 March 2018 Meeting Agenda of the Board of Commissioners in 2017 At each Meeting of the Board of Commissioners, there is a regular agenda, namely: 1. Ratification of the Minutes of the previous Board of Commissioners Meeting; 2. Discussion of unresolved issues from the previous Board of Commissioners Meeting; 3. Summary of the previous month’s credit proposal; 4. Financial Performance Report; 444 Annual Report CIMB NIAGA 2017
  445. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report 5 . Report of the Committees under the Board of Commissioners: the Audit Committee, Risk Oversight Committee, and Nomination and Remuneration Committee In addition to the regular agenda, the following agenda was discussed : No Date Agenda Meeting Participant 1. 27 February 2017 Approval & Updates 1. Financial Performance as of January 2017 (including Strategy of BUKU IV). 2. Annual General Meeting of Shareholders. 1. 2. 3. 4. 5. 6. 7. Dato’ Sri Nazir Razak Glenn M. Surya Yusuf Zulkifli M. Ali Pri Notowidigdo Jeffrey Kairupan Armida S. Alisjahbana David R. Thomas 2. 30 March 2017 Approval & Updates 1. Financial Performance as of February 2017 2. Update on BUKU IV a. Strategy of BUKU IV b. Socialization Plan of BUKU IV 3. CNAF Update 4. Update on Human Resources 5. Update on Microfinance Asset Sales 1. 2. 3. 4. 5. 6. 7. Dato’ Sri Nazir Razak Glenn M. Surya Yusuf Zulkifli M. Ali Pri Notowidigdo Jeffrey Kairupan Armida S. Alisjahbana David R. Thomas 3. 31 May 2017 Approval & Updates 1. Financial Performance as of April 2017 2. Revised Bank Business Plan (RBB) 3. Update on Asset Quality Q1 2017 4. Risk Appetite Statement (RAS) as of April 30, 2017 1. 2. 3. 4. 5. 6. 7. Dato’ Sri Nazir Razak Glenn M. Surya Yusuf Zulkifli M. Ali Pri Notowidigdo Jeffrey Kairupan Armida S. Alisjahbana David R. Thomas 4. 22 June 2017 Approval & Updates 1. Revised RBB 2017 (approval) 2. Financial Performance as of May 2017 3. Update on Extraordinary General Meeting of Shareholders 4. Risk Appetite Statement as of May 31, 2017 5. Update on Credit Policy 1. 2. 3. 4. 5. 6. 7. Dato’ Sri Nazir Razak Glenn M. Surya Yusuf Zulkifli M. Ali Pri Notowidigdo Jeffrey Kairupan Armida S. Alisjahbana David R. Thomas 5. 29 September 2017 Approval & Updates a. Financial performance as of August 2017 b. Update on 1P Benefit c. Risk Appetite Statement as of August 31, 2017 d. Update on Mortgage 1. 2. 3. 4. 5. 6. 7. Dato’ Sri Nazir Razak Glenn M. Surya Yusuf Zulkifli M. Ali Pri Notowidigdo Jeffrey Kairupan Armida S. Alisjahbana David R. Thomas Invitee: 1. Tengku Dato’ Sri Zafrul Tengku Abdul Aziz 6. 27 October 2017 Approval & Updates a. Financial performance as of September 2017 b. Project approval to enter New Business c. Realization of RBB Q3 2017 d. Target in 2018 e. Update on Recovery Plan f. Update on Asset Quality Q3 2017 g. Update on Sharia Business 1. 2. 3. 4. 5. 6. 7. Dato’ Sri Nazir Razak Glenn M. Surya Yusuf Zulkifli M. Ali Pri Notowidigdo Jeffrey Kairupan Armida S. Alisjahbana David R. Thomas Invitee: 1. Tengku Dato’ Sri Zafrul Tengku Abdul Aziz 7. 19 December 2017 Approval & Updates a. Financial Statements as of November 2017 b. Update on 1P Business Strategy c. Update on Project One Credit Card System d. Update on mortgages e. Risk Appetite Statement as of November 2017 f. Review of the Board of Commissioners Charter 1. 2. 3. 4. 5. 6. Dato’ Sri Nazir Razak Glenn M. Surya Yusuf Zulkifli M. Ali Pri Notowidigdo Jeffrey Kairupan Armida S. Alisjahbana Invitee: 1. Tengku Dato’ Sri Zafrul Tengku Abdul Aziz Annual Report CIMB NIAGA 2017 445
  446. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management POLICY , FREQUENCY, AND ATTENDANCE RATES OF THE BOARD OF COMMISSIONERS MEETINGS, THE BOARD OF DIRECTORS MEETINGS, AND JOINT MEETINGS OF THE BOARD OF COMMISSIONERS WITH THE BOARD OF DIRECTORS Agenda of the Joint Meetings of the Board of Commissioners inviting the Board of Directors in 2017 No Date 1. 27 January 2017 The Board of Commissioners Attend The Board of Directors Attend 1. Dato’ Sri Nazir Razak 1. Tigor M. Siahaan 2. Glenn M. Surya Yusuf 2. Wan Razly Abdullah 3. Zulkifli M. Ali 3. Rita Mas’Oen 4. Pri Notowidigdo 4. Megawati Sutanto 5. Jeffrey Kairupan 5. Vera Handajani 6. Armida S. Alisjahbana 6. John Simon 7. David R. Thomas 7. Lani Darmawan Agenda 1. Message from the President Commissioner 2. Approval & Updates a. Update on the Bank Business Plan (RBB): - Realization of RBB for Q IV, 2016 and RBB Supervision Report for Semester II, 2016 - Update on RBB 2017 b. Update on Asset Quality Q IV, 2016 c. Business Update – CNAF d. Project Information Technology 2017 Priority Update e. Update on Composite Risk Result of Bank Negara Malaysia (BNM) 8. Fransiska Oei 9. Hedy Lapian 10. Pandji P. Djajanegara 2. 25 April 2017 1. Dato’ Sri Nazir Razak 1. Tigor M. Siahaan 2. Glenn M. Surya Yusuf 2. Wan Razly Abdullah 3. Zulkifli M. Ali 3. Rita Mas’Oen 4. Pri Notowidigdo 4. Megawati Sutanto 5. Jeffrey Kairupan 5. Vera Handajani 6. Armida S. Alisjahbana 6. John Simon 7. David R. Thomas 7. Lani Darmawan 1. Message from the President Commissioner 2. Approval and & Updates: a. Realization of RBB for Q1, 2017 b. Update Internal Audit for Q1, 2017 8. Fransiska Oei 9. Hedy Lapian 10. Pandji P. Djajanegara 3. 24 July 2017 1. Dato’ Sri Nazir Razak 1. Tigor M. Siahaan 2. Glenn M. Surya Yusuf 2. Wan Razly Abdullah 3. Zulkifli M. Ali 3. Rita Mas’Oen 4. Pri Notowidigdo 4. Megawati Sutanto 5. Jeffrey Kairupan 5. Vera Handajani 6. Armida S. Alisjahbana 6. John Simon 7. David R. Thomas 7. Lani Darmawan 1. Message from the President Commissioner 2. Approval & Updates a. Realization and Supervision Report of RBB H1, 2017 b. Consumer Banking Update c. Risk Appetite Statement as of June 2017 d. Operational Risk Management - Risk Event Escalation 8. Fransiska Oei 9. Hedy Lapian 10. Pandji P. Djajanegara 4. 24 August 2017 1. Dato’ Sri Nazir Razak 1. Tigor M. Siahaan 2. Glenn M. Surya Yusuf 2. Wan Razly Abdullah 3. Zulkifli M. Ali 3. Rita Mas’Oen 4. Pri Notowidigdo 4. Megawati Sutanto 5. Jeffrey Kairupan 5. Vera Handajani 6. Armida S. Alisjahbana 6. John Simon 7. David R. Thomas 7. Lani Darmawan 1. Message from the President Commissioner 2. Approval & Updates a. Update on Internal Audit b. Digital Road Map c. Risk Appetite Statement as of July 2017 d. Risk Posture 2018 8. Fransiska Oei 9. Hedy Lapian 10. Pandji P. Djajanegara 446 Annual Report CIMB NIAGA 2017
  447. Supporting Business Review No Date 5 . 29 November 2017 Corporate Governance Report The Board of Commissioners Attend Corporate Social Responsibility Others Corporate Data The Board of Directors Attend 1. Dato’ Sri Nazir Razak 1. Tigor M. Siahaan 2. Glenn M. Surya Yusuf 2. Wan Razly Abdullah 3. Zulkifli M. Ali 3. Megawati Sutanto 4. Pri Notowidigdo 4. Vera Handajani 5. Jeffrey Kairupan 5. John Simon 6. Armida S. Alisjahbana 6. Lani Darmawan Invitee: 1. Tengku Dato’ Sri Zafrul Tengku Abdul Aziz 7. Fransiska Oei Consolidated Financial Report Agenda 1. Message from the President Commissioner 2. Approval & Updates a. RBB 2018 b. Recovery Plan c. Risk Appetite Statement as of October 2017. d. Data Analytics – Internal Audit 8. Hedy Lapian 9. Pandji P. Djajanegara 10. Rahardja Alimhamzah Board of Directors Meetings 1. Meetings of the Board of Directors must be held at least once a month or whenever deemed necessary. 2. Meetings of the Board of Directors with the Board of Commissioners must be held at least once every 3 (three) months or whenever deemed necessary. 3. Members of the Board of Directors must physically attend at least 75% (seventy five percent) of the meetings per year. 4. The Meeting is valid and entitled to take a valid and binding decision if attended/represented by at least 2/3 (two thirds) of the total members of the Board of Directors. 5. In the event of a member of the Board of Directors being unable to physically attend a Meeting, then he or she may attend a through teleconferencing/ telepresence. 6. The minutes of the Board of Directors meetings must mention the physical presence or telepresence of each member of the Board of Directors. 6. The Board of Directors meetings for 2017 were scheduled at the end of 2016 and uploaded on the Bank’s website. 8. The schedule of the Board Directors Meeting and Joint Meetings of the Board of Directors and Board of Commissioners in 2017 had been drawn up at the end of 2016 and approved in the Board of Directors Meeting on 20 December 2016. Annual Report CIMB NIAGA 2017 Meeting Frequency and Attendance of Directors for 2017 Name Attendance at the 39 Meetings of the Board of Directors Attendance Figures Attendance Rates Tigor M. Siahaan 38 97% Wan Razly Abdullah 39 100% Rita Mas’Oen 36 92% Megawati Sutanto 34 87% Vera Handajani 36 92% John Simon 33 84% Lani Darmawan 35 90% Fransiska Oei 38 97% Hedy Lapian 34 87% Pandji Djajanegara 36 92% Rahardja Alimhamzah*) 15 93% *) attendance calculated after effectively serving as a member of the Board of Directors since the EGMS on 24 August 2017, where, since 24 August 2017, Board of Directors Meetings were held 16 (sixteen) times 447
  448. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management POLICY , FREQUENCY, AND ATTENDANCE RATES OF THE BOARD OF COMMISSIONERS MEETINGS, THE BOARD OF DIRECTORS MEETINGS, AND JOINT MEETINGS OF THE BOARD OF COMMISSIONERS WITH THE BOARD OF DIRECTORS The agenda of the 2017 Board of Directors Meetings The meetings were held in the Kalimantan Meeting Room on 14th floor of Graha CIMB Niaga, Jl. Jend. Sudirman Kav 24, Jakarta, Indonesia No Meeting Date 1 10 January 2017 Meeting Participant 1. Tigor M. Siahaan 2. Wan Razly Abdullah 3. Rita Mas’Oen 4. Vera Handajani Agenda 1. Consolidated Financial Performance - December 2016 5. John Simon 6. Lani Darmawan 7. Fransiska Oei 8. Pandji Djajanegara 2 17 January 2017 1. Tigor M. Siahaan 2. Wan Razly Abdullah 3. Rita Mas’Oen 4. Megawati Sutanto 5. Vera Handajani 6. John Simon 7. Lani Darmawan 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Confirmation of the Minutes of the previous Board of Directors Meeting Matters Arising from the previous Board of Directors Meetings Bank Business Plan Realization (RBB) Q IV 2016 RBB 2017 BNM Audit 2016 December 2016 - Stress Test Risk Profile Q4, 2016 & RBBR H2 2016 (Bank Only, Consolidated & UUS) Negotiation of Collective Labor Agreement (PKB) Commercial & Wholesale Funding CIMB Niaga Economic Forum 2017 8. Fransiska Oei 9. Hedy Lapian 10. Pandji Djajanegara 3 23 January 2017 1. Tigor M. Siahaan 2. Wan Razly Abdullah 1. Year-end findings December 31, 2016 2. IT Enablement Roadmap 3. Rita Mas’Oen 4. Megawati Sutanto 5. Vera Handajani 6. John Simon 7. Lani Darmawan 8. Fransiska Oei 9. Hedy Lapian 10. Pandji P. Djajanegara 4 24 January 2017 1. Tigor M. Siahaan 2. Wan Razly Abdullah 3. Rita Mas’Oen 4. Megawati Sutanto 5. Vera Handajani 6. John Simon 7. Lani Darmawan 1. Revised RBB 2017 8. Fransiska Oei 9. Hedy Lapian 10. Pandji Djajanegara 448 Annual Report CIMB NIAGA 2017
  449. Supporting Business Review No Meeting Date 5 31 January 2017 Corporate Governance Report Corporate Social Responsibility Meeting Participant 1 . Tigor M. Siahaan 2. Wan Razly Abdullah 3. Vera Handajani 4. Fransiska Oei Others Corporate Data Consolidated Financial Report Agenda 1. 2. 3. 4. 5. 6. Confirmation of the Minutes of the previous Board of Directors Meeting Matters arising from the previous Board of Directors Meetings Auto Business Alignment Plan Strategic Partner for a Reliable CIMB Niaga ATM & CDM Service Special Project Highway Unwinding Interest Concept 1. 2. 3. 4. 5. 6. Confirmation of the Minutes of the previous Board of Directors Meeting Matters arising from the previous Board of Directors Meetings AGMS 2017 Timeline, Agenda & Budget January 17 Consolidated Financial Performance Cirebon Initiatives Update T18 Approval for OC Presentation material on T18 and Kaiju 5. Hedy Lapian 6. Pandji P. Djajanegara 7. Rita Mas’Oen 8. Lani Darmawan 6 7 February 2017 1. Tigor M. Siahaan 2. Wan Razly Abdullah 3. Rita Mas’Oen 4. Megawati Sutanto 5. Vera Handajani 6. John Simon 7. Lani Darmawan 8. Fransiska Oei 9. Hedy Lapian 10. Pandji P. Djajanegara 7 21 February 2017 1. Tigor M. Siahaan 2. Wan Razly Abdullah 3. Rita Mas’Oen 4. Megawati Sutanto 5. Vera Handajani 6. Fransiska Oei 1. Confirmation of the Minutes of the previous Board of Directors Meeting and Minutes of the Joint Meeting of the Board of Directors inviting the Board of Commissioners dated January 27, 2017 2. Internal Audit Report, January 2017 3. Approval of PWC Reappointment as Auditor for 2017 Financial Statements 4. Sector Appetite, 2017 5. Uber & Grab update 6. Loan Utilization alert 7. Hedy Lapian 8. Pandji Djajanegara 8 7 March 2017 1. Tigor M. Siahaan 2. Wan Razly Abdullah 3. Rita Mas’Oen 4. Megawati Sutanto 5. Vera Handajani 6. John Simon 7. Lani Darmawan 8. Fransiska Oei 9. Hedy Lapian 1. 2. 3. 4. 5. 6. 7. 8. 9. Confirmation of the Minutes of the previous Board of Directors Meeting Matters arising from the previous Board of Directors Meetings Update on Microfinance Asset Sales Online account opening Creating a great onboarding experience for new hires. Process Improvements on project implementation Update & follow up on Bank Indonesia Regulation: Cheque Consolidated Financial Performance as of February 2017 HR Update a. Learning budget utilization 2016-2017 b. Mass Leave Policy c. Annual Cycle update d. 2017 KPI Framework 10. BMC Off-Site Training 10. Pandji Djajanegara Annual Report CIMB NIAGA 2017 449
  450. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management POLICY , FREQUENCY, AND ATTENDANCE RATES OF THE BOARD OF COMMISSIONERS MEETINGS, THE BOARD OF DIRECTORS MEETINGS, AND JOINT MEETINGS OF THE BOARD OF COMMISSIONERS WITH THE BOARD OF DIRECTORS No Meeting Date 9 21 March 2017 Meeting Participant 1. Tigor M. Siahaan 2. Wan Razly Abdullah 3. Rita Mas’Oen 4. Vera Handajani Agenda 1. 2. 3. 4. 5. 5. Lani Darmawan 10 4 April 2017 6. Fransiska Oei 7. Hedy Lapian 8. Pandji Djajanegara 1. Tigor M. Siahaan 2. Wan Razly Abdullah 3. Rita Mas’Oen 4. Megawati Sutanto 5. Vera Handajani 6. John Simon 7. Lani Darmawan 8. Fransiska Oei 9. Hedy Lapian Confirmation of the Minutes of the previous Board of Directors Meeting Matters arising from the previous Board Meetings Internal Audit Summary Variety of Charges (TMM) & Variety of Debts (MMU) Finance Update: a. Mid-Year Budget Meeting b. Benchmarking Top 10 Banks December 2016 c. Update on Tax Cases 1. Confirmation of the Minutes of the previous Board of Directors Meeting 2. Branch Operation Services during the Jakarta Governor Election on April 19, 2017 3. Demerit Framework and Workplace Wellness @CIMB 4. Internal Audit of CIMB Niaga Q1, 2017 performance ; review and 2017 initiatives: Foundation for 2018 - 2020 Road Map 5. RBB Realization in Q I, 2017 6. T18 In-Country Project Progress update and approval of membership 10. Pandji Djajanegara 11 18 April 2017 1. Tigor M. Siahaan 2. Wan Razly Abdullah 3. Rita Mas’Oen 4. Megawati Sutanto 5. Vera Handajani 6. John Simon 7. Lani Darmawan 8. Fransiska Oei 9. Hedy Lapian 1. Confirmation of the Minutes of the previous Board of Directors Meeting 2. Branch Operation Services during the Jakarta Governor Election on April 19, 2017 3. Demerit Framework and Workplace Wellness @CIMB 4. Internal Audit of CIMB Niaga Q1, 2017 performance review and 2017 initiatives: Foundation for 2018-2020 Road Map 5. RBB Realization in Q I, 2017 6. T18 In-Country Project Progress update and approval of membership 7. IDR NCD and Shelf Registration Bond (PUB) II, Phase II Issuance 8. Annual General Shareholder Meeting (AGM) Extraordinary General Shareholder Meeting (EGM) ; Press Conference BUKU IV 10. Pandji Djajanegara 12 2 May 2017 1. Tigor M. Siahaan 2. Wan Razly Abdullah 3. Megawati Sutanto 4. Vera Handajani 5. John Simon 6. Lani Darmawan 1. 2. 3. 4. 5. 6. Confirmation of the Minutes of the previous Board of Directors Meeting Manual MIS Report Management Be the 1st Sharia Ambassador - Survey Result Strategic Risk Framework - GMC Update Final tax assessment Consolidated financial performance as of April 2017 1. 2. 3. 4. Confirmation of the Minutes of the previous Board of Directors Meeting Financial Information Service System (SILK) Benchmarking Top 10 Banks Revised RBB 2017 7. Fransiska Oei 8. Hedy Lapian 9. Pandji Djajanegara 13 16 May 2017 1. Tigor M. Siahaan 2. Wan Razly Abdullah 3. Rita Mas’Oen 4. Megawati Sutanto 5. Vera Handajani 6. John Simon 7. Lani Darmawan 8. Fransiska Oei 9. Pandji P. Djajanegara 450 Annual Report CIMB NIAGA 2017
  451. Supporting Business Review No Meeting Date 14 23 May 2017 Corporate Governance Report Corporate Social Responsibility Meeting Participant 1 . Tigor M. Siahaan 2. Wan Razly Abdullah 3. Rita Mas’Oen 4. Megawati Sutanto 5. Vera Handajani 6. John Simon Others Corporate Data Consolidated Financial Report Agenda Government Regulation in Lieu of Law No 1/2017 - Access to Financial Information for Tax Interests 7. Lani Darmawan 8. Fransiska Oei 9. Pandji Djajanegara 15 30 May 2017 1. Tigor M. Siahaan 2. Wan Razly Abdullah 3. Rita Mas’Oen 4. Megawati Sutanto 5. John Simon 1.Others 6. Lani Darmawan 7. Fransiska Oei 8. Pandji Djajanegara 16 6 June 2017 1. Tigor M. Siahaan 2. Wan Razly Abdullah 3. Rita Mas’Oen 4. Megawati Sutanto 5. Vera Handajani 1. 2. 3. 4. 5. Confirmation of the Minutes of the previous Board of Directors Meeting The Use of External (Public Appraisers) and Internal Appraisal Revised RBB 2017 Update Delegation of Authority (DoA) 2017 Consolidated financial performance as of May 17 6. John Simon 7. Fransiska Oei 8. Hedy Lapian 9. Pandji Djajanegara 17 13 June 2017 1. Tigor M. Siahaan 2. Wan Razly Abdullah 3. Rita Mas’Oen 4. Vera Handajani 1. Internal Audit Summary as of May 2017 2. Request for approval of branch readiness for Lebaran Holiday 1438H 5. John Simon 6. Fransiska Oei 7. Hedy Lapian 8. Pandji P. Djajanegara 18 20 June 2017 1. Tigor M. Siahaan 3. Rita Mas’Oen 1. 2. 3. 4. 4. Megawati Sutanto 5. 2. Wan Razly Abdullah 5. John Simon 6. Lani Darmawan 7. Fransiska Oei 8. Hedy Lapian 9. Pandji Djajanegara Annual Report CIMB NIAGA 2017 6. 7. 8. 9. Confirmation of the Minutes of the previous Board of Directors Meeting Extraordinary General Meeting of Shareholders Compliance with Periodic Monitoring Review, 2017 Socialization of SEBI No.18/23/DSta concerning monitoring of foreign exchange activities of banks and customers Sharia Banking update: a. UUS Spin-off Roadmap and Capital Addition Proposal b. Use of Religious Courts as a forum for settlement of disputes of Sharia Financial Institutions Recovery Plan ATM installation & monitoring process improvement Mobile Office Apps Others a. Revised RBB 2017 b. Payment System Project 451
  452. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management POLICY , FREQUENCY, AND ATTENDANCE RATES OF THE BOARD OF COMMISSIONERS MEETINGS, THE BOARD OF DIRECTORS MEETINGS, AND JOINT MEETINGS OF THE BOARD OF COMMISSIONERS WITH THE BOARD OF DIRECTORS No Meeting Date 19 11 July 2017 Meeting Participant 1. Wan Razly Abdullah 2. Rita Mas’Oen 3. Megawati Sutanto 4. Vera Handajani 5. John Simon 6. Lani Darmawan Agenda 1. Update on Microfinance Asset Sales 7. Fransiska Oei 8. Hedy Lapian 9. Pandji Djajanegara 20 20 July 2017 1. Tigor M. Siahaan 2. Wan Razly Abdullah 3. Rita Mas’Oen 4. Megawati Sutanto 5. Vera Handajani 6. John Simon 1. 2. 3. 4. 5. 6. 7. 8. Confirmation of the Minutes of the previous Board of Directors Meeting Risk Profile Q2, 2017 & RBBR H1,2017 Forecast & 3 Year Target Internal Audit of CIMB Niaga Q2,, 2017 Performance Review Realization of RBB of Q2, 2017 ‘Shelter Our Home’ in Kuala Lumpur Update on Microfinance Asset Sales Halal Bi Halal CIMB Niaga 1438H 1. 2. 3. 4. 5. Confirmation of the Minutes of the previous Board of Directors Meeting Senior Bond Issuance PUB II Phase II, 2017 Integrated Risk Profile of CIMB Indonesia as of June 2017 Integrated Capital Adequacy Assessment of CIMB Indonesia Framework for tagging and recognizing cross selling between Business & Consumer Banking Product Codes Management Strategic Risk Framework Approval on T18 In-Country project benefit & timeline Talent Management Framework 7. Lani Darmawan 8. Fransiska Oei 9. Hedy Lapian 10. Pandji P. Djajanegara 21 1 August 2017 1. Tigor M. Siahaan 2. Wan Razly Abdullah 3. Rita Mas’Oen 4. Megawati Sutanto 5. Vera Handajani 6. John Simon 7. Lani Darmawan 6. 7. 8. 9. 8. Fransiska Oei 9. Hedy Lapian 10. Pandji P. Djajanegara 22 8 August 2017 1. Tigor M. Siahaan 2. Wan Razly Abdullah 1. July 2017 Consolidated Financial Statements 2. Material Drafts for BNM 3. Update the process and approval of micro finance asset sales 3. Rita Mas’Oen 4. Megawati Sutanto 5. Vera Handajani 6. Lani Darmawan 7. Fransiska Oei 8. Hedy Lapian 9. Pandji P. Djajanegara 452 Annual Report CIMB NIAGA 2017
  453. Supporting Business Review No Meeting Date 23 15 August 2017 Corporate Governance Report Corporate Social Responsibility Meeting Participant 1 . Tigor M. Siahaan 2. Wan Razly Abdullah 3. Rita Mas’Oen 4. Megawati Sutanto 5. Vera Handajani 6. Lani Darmawan 7. Fransiska Oei Others Corporate Data Consolidated Financial Report Agenda 1. Confirmation of the Minutes of the previous Board of Directors Meeting 2. Internal Audit Update: a. Mid-Year Review of 2017 Audit Plan b. Independent Review results of Internal Audit Function c. Result of Risk Culture Survey 3. Benchmarking Top 10 Banks 4. CIMB Niaga Information Security Framework 5. Media Relation update a. Media Relations b. Event & Sponsorship 6. Update and approval of Microfinance Asset Sale 8. Hedy Lapian 9. Pandji P. Djajanegara 10. John Simon 24 29 August 2017 1. Tigor M. Siahaan 2. Wan Razly Abdullah 3. Rita Mas’Oen 4. Megawati Sutanto 5. Vera Handajani 6. John Simon 7. Lani Darmawan 1. 2. 3. 4. 5. 6. 7. Confirmation of the Minutes of the previous Board of Directors Meeting CIMB Niaga Group - wide Stress Test result, June 30, 2017 Strategy in Managing NPL Target for 2018 Share Buyback & Loyalty programs (Shares Grant and MESOP) Bond Issuance Proposal: IDR Shelf Registration Bond (PUB) II Phase III, 2017 National Customer Day 8. Fransiska Oei 9. Hedy Lapian 10. Pandji Djajanegara 11Alimhamzah 25 5 September 2017 1. Tigor M. Siahaan 2. Wan Razly Abdullah 3. Rita Mas’Oen 4. Megawati Sutanto 5. Vera Handajani 6. John Simon 1. Confirmation of the Minutes of the previous Board of Directors Meeting 2. Consolidated Financial Performance - August 2017 7. Lani Darmawan 8 Fransiska Oei 9. Hedy Lapian 10. Rahardja Alimhamzah 26 11 September 2017 1. Tigor M. Siahaan 1. Budget Meeting and Leadership Conference 2. Wan Razly Abdullah 3. Rita Mas’Oen 4. Megawati Sutanto 5. Vera Handajani 6. John Simon 7. Lani Darmawan 8. Fransiska Oei 9. Hedy Lapian 10. Rahardja Alimhamzah Annual Report CIMB NIAGA 2017 453
  454. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management POLICY , FREQUENCY, AND ATTENDANCE RATES OF THE BOARD OF COMMISSIONERS MEETINGS, THE BOARD OF DIRECTORS MEETINGS, AND JOINT MEETINGS OF THE BOARD OF COMMISSIONERS WITH THE BOARD OF DIRECTORS No Meeting Date 27 19 September 2017 Meeting Participant 1. Tigor M. Siahaan 2. Wan Razly Abdullah 3. Rita Mas’Oen 4. Megawati Sutanto 5. Vera Handajani 6. John Simon Agenda 1. Confirmation of the Minutes of the previous Board of Directors Meeting 2. Cognos upgrade 3. 2018 Target 4. Branch re-structuring 5. Business Banking Loan Approval & Disbursement Data YTD, 2017 6. Sharia Banking Competitive Benchmarking - June 2017 7. Redefining the learning experience for bankers. Learning on The Go (LoG) 7. Lani Darmawan 8. Fransiska Oei 9. Hedy Lapian 10. Rahardja Alimhamzah 28 26 September 2017 1. Tigor M. Siahaan 2. Wan Razly Abdullah 3. Rita Mas’Oen 4. Vera Handajani 5. John Simon 1. 1P Project Benefit/Revenue Tracking 2. The Color Run, CIMB Niaga 6. Lani Darmawan 7. Fransiska Oei 8. Hedy Lapian 9. Pandji Djajanegara 10. Rahardja Alimhamzah 29 3 October 2017 1. Tigor M. Siahaan 2. Wan Razly Abdullah 3. Rita Mas’Oen 4. Megawati Sutanto 5. Vera Handajani 1. 2. 3. 4. Confirmation of the Minutes of the previous Board of Directors Meeting Proposal of BoD Charter amendment Consolidated financial performance, September 2017 Sharia Banking Budget for 2018 1. 2. 3. 4. 5. 6. 7. 8. 9. Confirmation of the Minutes of the previous Board of Directors Meeting Audit Plan of PT Bank CIMB Niaga Internal Audit of CIMB Niaga Q3, 2017 performance review Risk Profile Q3, 2017 Bank Only, Consolidated & Syariah Business Unit Realization of RBB for Q 3, 2017 RBB 2018 Target 2018 CIMB Niaga Peduli OPeRA Leadership Award, 2017; ABC Torch of Recognition 6. John Simon 7. Lani Darmawan 8. Fransiska Oei 9. Hedy Lapian 10. Pandji P. Djajanegara 11. Rahardja Alimhamzah 30 17 October 2017 1. Tigor M. Siahaan 2. Wan Razly Abdullah 3. Rita Mas’Oen 4. Megawati Sutanto 5. Vera Handajani 6. John Simon 7. Fransiska Oei 8. Lani Darmawan 9. Hedy Lapian 10. Pandji P. Djajanegara 11. Rahardja Alimhamzah 454 Annual Report CIMB NIAGA 2017
  455. Supporting Business Review No Meeting Date 31 24 October 2017 Corporate Governance Report Corporate Social Responsibility Meeting Participant 1 . Tigor M. Siahaan 2. Wan Razly Abdullah 3. Rita Mas’Oen 4. Megawati Sutanto 5. Vera Handajani 6. Lani Darmawan 7. Fransiska Oei Others Corporate Data Consolidated Financial Report Agenda Project approval to enter New Business 8. Hedy Lapian 9. Pandji P. Djajanegara 10. Rahardja Alimhamzah 32 31 October 2017 1. Tigor M. Siahaan 2. Wan Razly Abdullah 3. Rita Mas’Oen 4. Megawati Sutanto 5. Vera Handajani 6. Lani Darmawan 1. 2. 3. 4. 5. 6. Confirmation of the Minutes of the previous Board of Directors Meeting Hitting the ground running, Post- Belitung Oct 2017 Opening account forms for cross sell Foundation software Trade Finance Business update Namaste Festival, 2017 1. 2. 3. 4. 5. 6. 7. 8. Confirmation of the Minutes of the previous Board of Directors Meeting Islamic Bonds Issuance Proposal Signature verification, non- retail lending Non-Individual Account Stakeholder data update Consolidated F financial P performance, - October 2017 Benchmarking Top, 10 Sep 2017 Financial Information Service System (SliK) CIMB Niaga Indonesia Open Aquatic Championship 7. Fransiska Oei 8. Hedy Lapian 9. Pandji Djajanegara 10. Rahardja Alimhamzah 33 7 November 2017 1. Tigor M. Siahaan 2. Wan Razly Abdullah 3. Rita Mas’Oen 4. Megawati Sutanto 5. Vera Handajani 6. John Simon 7. Lani Darmawan 8. Fransiska Oei 9. Hedy Lapian 10. Pandji P. Djajanegara 34 14 November 2017 1. Tigor M. Siahaan 2. Wan Razly Abdullah 3. Rita Mas’Oen 4. Megawati Sutanto 5. Vera Handajani 6. Lani Darmawan 1. RBB 2018 7. Fransiska Oei 8. Hedy Lapian 9. Pandji Djajanegara 10. Rahardja Alimhamzah Annual Report CIMB NIAGA 2017 455
  456. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management POLICY , FREQUENCY, AND ATTENDANCE RATES OF THE BOARD OF COMMISSIONERS MEETINGS, THE BOARD OF DIRECTORS MEETINGS, AND JOINT MEETINGS OF THE BOARD OF COMMISSIONERS WITH THE BOARD OF DIRECTORS No Meeting Date 35 21 November 2017 Meeting Participant 1. Tigor M. Siahaan 2. Wan Razly Abdullah 3. Rita Mas’Oen 4. Megawati Sutanto 5. Vera Handajani 6. John Simon Agenda 1. Confirmation of the Minutes of the previous Board of Directors Meeting 2. Proposal of revised 2017 Audit Plan, data analytics and October 2017 Internal Audit Summary. 3. Periodic review of the Internal Capital Adequacy Assessment Process (ICAAP) Policy 4. Protocol Communication for data sharing between CIMB Niaga and CIMB Group 5. RBB 2018 and 2018 Products & Network 7. Lani Darmawan 8. Fransiska Oei 9. Pandji P. Djajanegara 10. Rahardja Alimhamzah 36 28 November 2017 1. Tigor M. Siahaan 2. Wan Razly Abdullah 3. Megawati Sutanto 4. Vera Handajani 5. John Simon 1. Recovery Plan 6. Fransiska Oei 7. Hedy Lapian 8. Pandji P. Djajanegara 9. Rahardja Alimhamzah 37 5 December 2017 1. Tigor M. Siahaan 2. Wan Razly Abdullah 3. Megawati Sutanto 4. Vera Handajani 5. John Simon 1. 2. 3. 4. 5. 6. 7. Confirmation of the Minutes of the previous Board of Directors Meeting 1P as a transformation tool Updates on information security Unsecured Lending Business 1 Credit Card System 2018 Audit Plan November 2017 Consolidated Financial Performance Purchase proposal of office space at Sentraya Tower 6. Lani Darmawan 7. Hedy Lapian 8. Pandji P. Djajanegara 9. Rahardja Alimhamzah 38 12 December 2017 1. Tigor M. Siahaan 2. Wan Razly Abdullah 3. Rita Mas’Oen 4. Megawati Sutanto 5. Vera Handajani 6. John Simon 7. Lani Darmawan 1. Interim Audit Findings and early warnings for the year-end audit 2. Corporate Mobile Phone CUG 8. Fransiska Oei 9. Hedy Lapian 10. Pandji Djajanegara 11. Rahardja Alimhamzah 456 Annual Report CIMB NIAGA 2017
  457. Supporting Business Review No Meeting Date 39 19 December 2017 Corporate Governance Report Corporate Social Responsibility Meeting Participant 1 . Tigor M. Siahaan 2. Wan Razly Abdullah 3. Rita Mas’Oen 4. Megawati Sutanto 5. Vera Handajani 6. John Simon 7. Lani Darmawan Others Corporate Data Consolidated Financial Report Agenda 1. 2. 3. 4. 5. 6. 7. 8. Confirmation of the Minutes of the previous Board of Directors Meeting Lease of Mount Geulis, 2018-2023 Bankwide cleaning initiative, ‘Care with Our Home’ Business Continuity Management (BCM), 2017 activities update 2017 Christmas & Year-End Activities Formal Tax Audit Findings, Year 2013 EXCO Parameters amendment Contingency Funding Plan testing 8. Fransiska Oei 9. Hedy Lapian 10. Pandji Djajanegara 11. Rahardja Alimhamzah Joint Meeting of the Board of Directors inviting the Board of Commissioners Name Attendance at the 5 Joint Meetings of the Board of Directors inviting the Board of Commissioners Attendance Figures Attendance Rates Tigor M. Siahaan 5/5 100% Wan Razly Abdullah 5/5 100% Rita Mas’Oen 4/5 80% Megawati Sutanto 5/5 100% Vera Handajani 5/5 100% John Simon 5/5 100% Lani Darmawan 5/5 100% Fransiska Oei 5/5 100% Hedy Lapian 5/5 100% Pandji Djajanegara 5/5 100% Rahardja Alimhamzah*) 1/1 100% *) attendance calculated after effectively serving as a member of the Board of Directors since the EGMS on 24 August 2017, where, since 24 August, the Board of Directors joint meeting with the Board of Commissioners was held 1 (one) time Annual Report CIMB NIAGA 2017 457
  458. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management POLICY , FREQUENCY, AND ATTENDANCE RATES OF THE BOARD OF COMMISSIONERS MEETINGS, THE BOARD OF DIRECTORS MEETINGS, AND JOINT MEETINGS OF THE BOARD OF COMMISSIONERS WITH THE BOARD OF DIRECTORS Agenda of the Joint Meetings of the Board of Directors inviting the Board of Commissioners in 2017 The meetings were held in the Kalimantan meeting room on 14th floor, Graha CIMB Niaga, Jl. Jend. Sudirman Kav 58, Jakarta, Indonesia No Meeting Date 1 27 January 2017 The Board of Directors in Attendance The Board of Commissioners in Attendance 1. Tigor M. Siahaan 1. Dato’ Sri Nazir Razak 2. Wan Razly Abdullah 2. Glenn M. Surya Yusuf 3. Rita Mas’Oen 3. Zulkifli M. Ali 4. Megawati Sutanto 4. Pri Notowidigdo 5. Vera Handajani 5. Jeffrey Kairupan 6. John Simon 6. Armida S. Alisjahbana 7. Lani Darmawan 7. David R. Thomas Agenda 1. Message from the President Director 2. Financial performance report for December 2016               8. Fransiska Oei 9. Hedy Lapian 10. Pandji P. Djajanegara 2 25 April 2017 1. Tigor M. Siahaan 1. Dato’ Sri Nazir Razak 2. Wan Razly Abdullah 2. Glenn M. Surya Yusuf 3. Rita Mas’Oen 3. Zulkifli M. Ali 4. Megawati Sutanto 4. Pri Notowidigdo 5. Vera Handajani 5. Jeffrey Kairupan 6. John Simon 6. Armida S. Alisjahbana 7. Lani Darmawan 7. David R. Thomas 1. Message from the President Director 2. Financial performance report for March 2017                 8. Fransiska Oei 9. Hedy Lapian 10.Pandji P. Djajanegara 3 24 July 2017 1. Tigor M. Siahaan 1. Dato’ Sri Nazir Razak 2. Wan Razly Abdullah 2. Glenn M. Surya Yusuf 3. Rita Mas’Oen 3. Zulkifli M. Ali 4. Megawati Sutanto 4. Pri Notowidigdo 5. Vera Handajani 4. Jeffrey Kairupan 6. John Simon 6. Armida S. Alisjahbana 7. Lani Darmawan 7. David R. Thomas 1. Message from the President Director 2. Financial performance report for June 2017                 8. Fransiska Oei 9. Hedy Lapian 10.Pandji P. Djajanegara 458 Annual Report CIMB NIAGA 2017
  459. Supporting Business Review No Meeting Date 4 24 August 2017 Corporate Governance Report The Board of Directors in Attendance Corporate Social Responsibility The Board of Commissioners in Attendance 1 . Tigor M. Siahaan 1. Dato’ Sri Nazir Razak 2. Wan Razly Abdullah 2. Glenn M. Surya Yusuf 3. Rita Mas’Oen 3. Zulkifli M. Ali 4. Megawati Sutanto 4. Pri Notowidigdo 5. Vera Handajani 4. Jeffrey Kairupan 6. John Simon 6. Armida S. Alisjahbana 7. Lani Darmawan 7. David R. Thomas Others Corporate Data Consolidated Financial Report Agenda 1. Message from the President Director (CEO) 2. Financial performance report for July 2017                 8. Fransiska Oei 9. Hedy Lapian 10.Pandji P. Djajanegara 5 29 November 2017 1. Tigor M. Siahaan 1. Dato’ Sri Nazir Razak 2. Wan Razly Abdullah 2. Glenn M. Surya Yusuf 3. Megawati Sutanto 3. Zulkifli M. Ali 4. Vera Handajani 4. Pri Notowidigdo 5. John Simon 4. Jeffrey Kairupan 6. Lani Darmawan 6. Armida S. Alisjahbana 7. Fransiska Oei Invitee: 1. Tengku Dato’ Sri Zafrul Tengku Abdul Aziz 1. Message from the President Director 2. Financial performance report for October 2017              8. Hedy Lapian 9. Pandji P. Djajanegara 10.Rahardja Alimhamzah Annual Report CIMB NIAGA 2017 459
  460. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Information on Major Shareholders and Controllers Khazanah Nasional Berhad Employees Provident Fund 27 .27% Public 14.40% 6.15% 52.18% CIMB Group Holdings Berhad 100.0% Publik Public CIMB Group Sdn Bhd 7.5% 92.5%* PT Bank CIMB Niaga Tbk 99.9% PT CIMB Niaga Auto Finance Per December 2017 *Includes PT Commerce Kapital 1.02% 460 Annual Report CIMB NIAGA 2017
  461. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Affiliations Between the Boards of Commissioners and Directors , and the Controlling Shareholders The Board of Commissioners and the Board of Directors of CIMB Niaga always maintain their independence and have no conflict of interest that may interfere with their ability to perform the duties in a professional and objective manner. All members of the Board of Commissioners and Board of Directors of CIMB Niaga have no affiliation, either in terms of family or financial relationship with (other) members of the Board of Commissioners and/or Board of Directors, and the Controlling Shareholders. Board of Commissioners Family Relationship with No. Name Board of Commissioners Board of Directors Financial Relations with Controlling Shareholders Board of Commissioners Board of Directors Controlling Shareholders Yes No Yes No Yes No Yes No Yes No Yes No BOARD OF COMMISSIONERS 1. Dato’ Sri Nazir Razak - √ - √ - √ - √ - √ Glenn Muhammad Surya Yusuf - √ - √ - √ - √ - √ √ √ - 2. 3. Pri Notowidigdo - √ - √ - √ - √ - √ - √ 4. Zulkifli M. Ali - √ - √ - √ - √ - √ - √ 5. Armida Salsiah Alisjahbana - √ - √ - √ - √ - √ - √ 6. Jeffrey Kairupan - √ - √ - √ - √ - √ - √ 7. David Richard Thomas - √ - √ - √ - √ - √ √ - 8. Ahmad Zulqarnain Onn*) - √ - √ - √ - √ - √ √ - 9. Tengku Dato’ Sri Zafrul Tengku Abdul Aziz**) - √ - √ - √ - √ - √ √ - *) Resigned effective since the Extraordinary GMS, 24 August 2017 **) Appointed in the Extraordinary GMS, 24 August 2017 and effective serves as Commissioner on 16 March 2018 Board of Directors Family Relationship with No. Name Board of Commissioners Board of Directors Financial Relations with Controlling Shareholders Board of Commissioners Board of Directors Controlling Shareholders Yes No Yes No Yes No Yes No Yes No Yes No BOARD OF DIRECTORS 1. Tigor M. Siahaan - √ - √ - √ - √ - √ - √ 2. Wan Razly Abdullah - √ - √ - √ - √ - √ - √ 3. Rita Mas ‘Oen - √ - √ - √ - √ - √ - √ 4. Megawati Sutanto - √ - √ - √ - √ - √ - √ 5. Vera Handajani - √ - √ - √ - √ - √ - √ 6. John Simon - √ - √ - √ - √ - √ - √ 7. Lani Darmawan - √ - √ - √ - √ - √ - √ 8. Fransiska Oei - √ - √ - √ - √ - √ - √ 9. Hedy Lapian - √ - √ - √ - √ - √ - √ 10. Pandji P. Djajanegara - √ - √ - √ - √ - √ - √ 11. Rahardja Alimhamzah*) - √ - √ - √ - √ - √ - √ *) Effectively served as a Director since the EGMS dated 24 August 2017 Annual Report CIMB NIAGA 2017 461
  462. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Board of Commissioners Committees AUDIT COMMITTEE The Audit Committee was established to assist the Board of Commissioners in performing its oversight function particularly on the implementation and reporting of financial reports , adequacy of risk management and internal control, effectively and independently. The Audit Committee also monitors CIMB Niaga’s compliances with the applicable laws and regulations. Legal References The establishment of the Audit Committee of CIMB Niaga is based on the following regulations: 1. Regulation of Financial Services Authority (POJK) No. 55/POJK.04/2015 dated 23 December 2015 on the Establishment and Work Guidelines of the Audit Committee. 2. POJK No. 33/POJK.04/2014 dated 8 December 2014 on the Boards of Commissioners and Directors of Issuer or Public Company. 3. POJK No. 55/POJK.03/2016 dated 7 December 2016 on the Implementation of Corporate Governance for Commercial Banks. 4. Circular of Financial Services Authority (SEOJK) No. 13/SEOJK.03/2017 dated 17 March 2017 on the Implementation of Good Corporate Governance for Commercial Banks. 5. POJK No. 46/POJK.03/2017 dated 12 July 2017 on the Implementation of the Compliance Function of Commercial Banks. 6. Circular of Bank Indonesia (SEBI) No. 13/28/DPNP dated 9 December 2011 on the Implementation of the Anti Fraud Strategy for Commercial Banks. 7. Articles of Association of CIMB Niaga. Audit Committee Charter The CIMB Niaga’s Audit Committee established the Charter or Guidelines that govern the membership, structure, authorities, duties and responsibilities, meetings, activities, and standard operating procedures of the Audit Committee in conducting its functions. The Audit Committee charter was last updated on 21 March 2016 and is uploaded to the Bank’s website. Furthermore, the Audit Committee charter shall be periodically reviewed in order to ensure its compliance with the latest applicable regulations and Bank’s needs. Structure and Membership The membership and composition, as well as the independence of members of the Audit Committee has comply with the provisions of the competent authority. The CIMB Niaga Audit Committee for the period of 2017 consisted of 1 (one) Chairman who is an Independent Commissioner, 1 (one) member who is an Independent Commissioner and 2 (two) members who are non-commissioner members as Independent Parties with the requisite competence and qualifications in banking accounting and finance. Members of the Audit Committee were appointed based on Nomination and Remuneration Committee Recommendation of PT Bank CIMB Niaga Tbk No. 006/NOMREM/KP/III/2016 dated 23 March 2016, as approved by Board of Commissioners Circular Decision Letter No. 007/DEKOM/KP/IV/2016 dated 6 April 2016. The appointment was effective at the close of the 2016 AGMS up to the close of the 2020 AGMS. Audit Committee Membership Composition in 2017 No Name Position in Bank Position in the Committee Period Position 1 Zulkifli M. Ali Independent Commissioner Chairman 2016 - 2020 2 Jeffrey Kairupan Independent Commissioner Member 2016 - 2020 3 Mawar I. R. Napitupulu Independent Party Member 2016 - 2020 4 Yap Tjay Soen Independent Party Member 2016 - 2020 462 Annual Report CIMB NIAGA 2017
  463. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Qualifications and Profiles of the Audit Committee Members Member Profile Career Background Appointed as Chairman of the Audit Committee at the AGMS on 15 April 2016 and concurrently serves as Chairman of the Risk Oversight Committee . He also serves as an Independent Commissioner. Education Listed in the Board of Commissioners Profiles. Complete profile is listed in the Board of Commissioners Profiles. Zulkifli M. Ali Chairman Appointed as member of the Audit Committee at the AGMS on 15 April 2016. He also serves as an Independent Commissioner. Listed in the Board of Commissioners Profiles. Complete profile is listed in the Board of Commissioners. Jeffrey Kairupan Member Indonesian citizen, 55 years old. Appointed as member of Audit Committee since March 2013 and re-appointed in AGMS on 15 April 2016. Mawar I.R. Napitupulu Member Currently, Mawar I.R. Napitupulu serves as Senior Managing Partner in the Public Accounting Firm of Amir Abadi Jusuf, Aryanto, Mawar & Associates (RSM Indonesia), Chairwoman of the Professional Honorary Committee Indonesian Institute of Certified Public Accountants, and Lecturer at Faculty of Economics, University of Indonesia. Indonesian citizen, 64 years old. Appointed as member of the Audit Committee since AGMS on 15 April 2016. Yap Tjay Soen Member Bachelor Degree in Accounting from the Faculty of Economics University of Indonesia in 1986 and MBA Degree in Finance from the Katholieke Universiteit Leuven, Belgium in 1990. Previously, Yap Tjay Soen served as Managing Director and Chief Financial Officer at PT Bank Negara Indonesia Tbk from 2008 to March 17, 2015. President Director and Group CEO of PT Tuban Petrochemical Industries (20022007), Vice President Director of Bank International Indonesia (1999-2001), Chief Operating Officer of Asia Food & Properties Singapore (1998-1999), Astra International (1989-1988), Vice President of Citibank Indonesia (1980-1988). Annual Report CIMB NIAGA 2017 Bachelor Degree in Mechanical Engineering from McGill University in 1976 and a Master of Business Administration in 1980 from McGill University, Montreal Canada. 463
  464. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management BOARD OF COMMISSIONERS COMMITTEES Training for Independent Party of Audit Committee in 2017 Name Mawar Napitupulu Type of Training /Seminar/Workshop/ Knowledge Sharing Organizer Date and Place Seminar - “The Active Role of Public Accountants in Increasing State Revenue” Indonesian Institute of Public Accountants (IAPI) 27 July 2017 Jakarta Workshop of Capital Market Accountant Forum (FAPM) Indonesian Institute of Public Accountants (IAPI) 9 August 2017 Jakarta Training on Accounting and Audit Aspects in Preparation of Financial Statements of Financing Institutions Indonesian Institute of Public Accountants (IAPI) 24 November 2017 Jakarta Mandatory Guidance and Supervision Workshop of Public Accountants - PPPK Ministry of Finance PPPK 28 November 2017 Jakarta Banking Workshop on Accounting Aspect of Financial Instruments in Bank Financial Statements and Audit Aspects Indonesian Institute of Public Accountants (IAPI) and OJK Term of Office The term of office of Audit Committee members shall not be longer than the term of office of the Board of Commissioners in accordance with POJK No. 55/ POJK.04/2015, the Audit Committee Charter and can only be re-elected for one more term. The term of office of members of the Audit Committee that are appointed within a Board of Commissioners term of office will automatically end together with such Board of Commissioners term of office. Independence of Audit Committee All members of the Audit Committee have met all the established criteria of independency and are able to carry out their duties independently, and uphold the interests of the Bank without the influence by any party. This can be observed from the Audit Committee membership, which consists of 1 (one) Chairman who is an Independent Commissioner, 1 (one) Member who is an Independent Commissioner and 2 (two) non-Commissioner members as Independent Parties. Duties, Responsibilities and Authorities In conducting its functions, the Audit Committee has the following duties and responsibilities: 1. To review financial information to be issued by the Bank to the public and/or authorities, including: financial reports, projections, and other reports related to the Bank’s financial information. 2.To review the compliance to the regulations relevant with the Bank’s activities. 464 Training Objectives 5 December 2017 Jakarta 3. To provide an independent opinion in the event of a disagreement between management and the Public Accountant regarding the services provided. 4.To provide recommendation to the Board of Commissioners regarding the appointment of the Public Accountant Firm by taking into account the independency, scope of the assignment and fees; to discuss the nature and scope of the proposed audit plan; to review the adequacy of audit by taking into account all crucial risks; and to ensure coordination should more than one Public Accountant Firm are assigned. 5. To review the audit implementation by Internal Audit. 6. To examine the planning, execution, and oversee of the follow-up implementation by the Board of Directors on internal and external audit findings. 7. To review and report to the Board of Commissioners on complaints relating to the Bank’s accounting and financial reporting, including allegations of improper decisions by Board of Directors meetings or any deviation from carrying out a Board of Directors meeting decision. If necessary, the Audit Committee may conduct an examination, either by the Audit Committee itself or by assigning a third party. The report shall be submitted to the Board of Commissioners no later than two (2) business days after the completion of the report. 8. To review and provide advice to the Board of Commissioners related to any potential conflicts of interest of the Bank. Annual Report CIMB NIAGA 2017
  465. Supporting Business Review Corporate Governance Report Corporate Social Responsibility 9 . To assist the Board of Commissioners in conducting active supervision on the Compliance Function by: a. Evaluating the implementation of the Compliance Function are in compliance with Bank’s internal regulations and prevailing laws and regulations relating to the activities of the Bank at least 2 (two) times in one (1) year. b. Providing suggestions to enhance the quality of the Bank’s Compliance Function. 10.To assist the Board of Commissioners in conducting active supervision on the implementation of Anti-Fraud strategy by reviewing the Anti-Fraud Implementation Strategy Report submitted by the Anti-Fraud Management. To provide recommendations to the Board of 11. Commissioners on the appointment, dismissal, and performance assessment of the Chief Audit Executive. 12. To maintain the confidentiality of the Bank’s documents, data, and information. Others Corporate Data Consolidated Financial Report Duties Implementation in 2017 The activities and recommendations generated by the Audit Committee during 2017 are as follows: 1. Review the accountability and transparency of Bank’s financial statements 2. Review the implementation of the 1Platform project 3.Review the robustness of the compliance and internal control structure of the Bank 4. Review the effectiveness of fraud investigation, detection, and prevention 5. Review the Digital Banking road map 6. Review the implementation of IFRS 9 Audit Committee Reporting The Audit Committee reported their activities and recommendations to the Board of Commissioners on a regular basis. Audit Committee Meeting and Meeting Attendance The Audit Committee Charter stipulates that the Audit Committee shall hold meeting at least once every 3 (three) months and the members must physically attend in person at least two (2) times a year. Meetings can only be held if attended by at least 51% (fifty one percent) of total members, including the Independent Commissioner and Independent Parties. During 2017, the Audit Committee held 12 (twelve) meetings, which included the ratification of minutes of the previous meetings, discussion of matters from previous meetings requiring follow-up, and other substantive matters requiring Audit Committee attention. Attendance of Audit Committee Meetings for January - December 2017 Attendance at the Audit Committee meeting Physical Presence Attendance through teleconference or telepresence Attendance Rates Zulkifli M. Ali 12 12 - 100% Jeffrey Kairupan 11 11 - 92% Mawar IR Napitupulu 11 11 - 92% Yap Tjay Soen 12 12 - 100% Name Annual Report CIMB NIAGA 2017 465
  466. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management BOARD OF COMMISSIONERS COMMITTEES Meetings throughout 2017 discussed the following agenda : 1. Meeting with the Finance Director and executive officers to: a. Review the financial reports including: financial statement presentation, accounting treatment, and compliance with generally accepted accounting principles/practices. b.Review the Bank’s financial performance and the adequacy of the published financial statements and reporting to the authorities. c. Discuss recommendations as well as progress of follow-ups on the external auditor’s audit findings. 2. Meeting with the Chief Audit Executive to: a. Discuss the audit plan, audit scope, audit findings, follow-up of audit findings, and the adequacy of the internal control systems, b. Performance of Internal Audit. 3. Meeting with the Compliance Director to: a. Discuss the recommendations as well as progress of follow-ups to the audit recommendations from Financial Services Authority, Bank Indonesia and Bank Negara Malaysia. b. Discuss the possibility of compliance risk in the area of human resources and penalties from the Bank Indonesia. In addition, discuss lessons learned from on-going cases. c. Discussing new rules and regulations and their impacts on Bank 466 4. Meeting with the Anti-Fraud Management (AFM) to discuss: a. Fraud Prevention Program, such as the AntiFraud Campaign, Anti-Fraud Awareness Training to staff, Anti-Fraud Awareness dissemination of information to the customers, as well as E-learning and certification of Policy and Procedure for CIMB Preferred and CIMB Private Banking. b.Investigation on 2017 fraud cases as well as monitoring of sanctions imposed to the perpetrators of fraud. c.Detection of fraud through the ACL (Audit Command Language) fraud detection system. d. Thematic review on several Bank’s operational processes. 5. Meeting with the Public Accountant to discuss the audit plan, audit scope, audit findings, audit recommendations, and management letter submitted. 6. Meeting with related Directors and work units to ensure the adequacy of internal control systems in the management of Non-Performing Assets, Non-Performing Loans (NPL) in the Corporate and Commercial Banking units, as well as the status of key projects in 2017. In addition to those meetings, the Audit Committee periodically has provided activity reports and recommendations to the Board of Commissioners. Annual Report CIMB NIAGA 2017
  467. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Work Plan for 2018 The Audit Committee has established 2018 work plan with emphasis on : 1. Conduct a study of the accountability and transparency of the financial statements 2. Assess the robustness of the Bank’s compliance and internal control structure 3. Conduct a study on the effectiveness of prevention, detection and investigation of fraud 4. Conduct a study of the Digital Banking road map 5. Conduct a study on Anti Money Laundering Act The composition, structure and terms of membership, duties and responsibilities, authority, the full implementation of the meeting and reporting are contained in the Audit Committee Charter uploaded on the Bank’s website. Zulkifli M. Ali Chairman Jeffrey Kairupan Member Annual Report CIMB NIAGA 2017 Mawar I.R. Napitupulu Member (Independent Party) Yap Tjay Soen Member (Independent Party) 467
  468. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management BOARD OF COMMISSIONERS COMMITTEES NOMINATION AND REMUNERATION COMMITTEE The Nomination and Remuneration Committee (NRC) was established by the Board of Commissioners to assist the Board of Commissioners in performing supervisory responsibilities for the implementation of the nomination and remuneration policies for the Board of Commissioners, Board of Directors, Sharia Supervisory Board (DPS), Committee members at the level of Board of Commissioners and all Bank employees based on the prevailing requirements. Legal References The establishment of the NRC is based on the following regulations: 1. POJK No. 55/POJK.03/2016 dated 7 December 2016 on the Implementation of Corporate Governance for Commercial Banks. 2. PBI No. 11/33/PBI/2009 dated 7 December 2009 on the Implementation of Good Corporate Governance for Sharia Commercial Banks and Sharia Business Units. 3. POJK No. 34/POJK.04/2014 dated 8 December 2014 on the Nomination and Remuneration Committee of Issuers or Public Companies. 4. POJK No. 45/POJK.03/2015 dated 23 December 2015 on the Implementation of Good Corporate Governance in the Provision of Remuneration for Commercial Banks. 5. POJK No. 9/POJK.03/2016 dated 26 January 2016 on Prudential Principles for Commercial Banks in Performing Transfer of Selected Work to Other Parties. 6. POJK No. 59/POJK.03/2017 regarding the Implementation of Good Corporate Governance in the remuneration of Sharia Commercial Banks and Sharia Business Units. 7.SEOJK No. 13/SEOJK.03/2017 dated 17 March 2017 on the Implementation of Good Corporate Governance for Commercial Banks. 8. SEOJK No. 40/SEOJK.03/2016 dated 26 September 2016 on the the Implementation of Corporate Governance in the remuneration for Commercial Banks. Nomination and Remuneration Committee Charter The NRC has established NRC Charter which has adapted with POJK No. 34/POJK.04/2014. The most NRC Charter was last updated on 26 February 2016 and is uploaded on the Bank’s website. Furthermore, the NRC Charter shall be periodically reviewed in order to ensure its compliance with the latest applicable regulations. Structure and Membership Membership, composition, as well as the independence of members of the NRC comply with the prevailing regulations. In 2017, NRC of CIMB Niaga consisted of 2 (two) Independent Commissioners and 1 (one) Bank’s Executive Officer in charge of Human Resources. Members of the Nomination and Remuneration Committee were appointed based on Recommendation of the Nomination and Remuneration Committee No. 006/NOMREM/KP/III/2016 dated 23 March 2016, as approved by Board of Commissioners Circular Decision Letter No. 007/DEKOM/KP/IV/2016 dated 6 April 2016. The appointment was effective from the close of the 2016 AGMS until the close of 2020 AGM. Nomination and Remuneration Committee Membership Composition in 2017 No Name Position in Bank Position in Committee Term of Office 1 Pri Notowidigdo Independent Commissioner Chairman 2016 - 2020 2 Armida S. Alisjahbana Independent Commissioner Member 2016 - 2020 3 Ahmad Zulqarnain Onn*) Commissioner Member 2016 - 2017 4. Joni Raini Executive overseeing Human Resources Dept Member/Secretary 2016 - 2020 *) Term of office as NRC member ended from the close of the EGMS on 24 August 2017 468 Annual Report CIMB NIAGA 2017
  469. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Qualifications & Profiles of Nomination and Remuneration Committee Members Member Profile Career Background Education Appointed as Chairman of the Nomination and Remuneration Committee since March 2013 and reappointed in AGMS on 15 April 2016. He also serves as an Independent Commissioner. Complete profile is available Commissioners Profiles. in the Board Listed in the Board of Commissioners Profiles. of Pri Notowidigdo Chairman Appointed as a member of the Nomination and Remuneration Committee since Annual GMS on 15 April 2016. Listed in the Board of Commissioners Profiles. She also serves as an Independent Commissioner. Complete profile is available Commissioners Profiles. in the Board of Armida S. Alisjahbana Member Appointed as a member of the Nomination and Remuneration Committee since November 2014 and reappointed in AGMS on 15 April 2016. Listed in the Board of Commissioners Profiles. He also serves as a Commissioner. Complete profile is available Commissioners Profiles. in the Board of Ahmad Zulqarnain Onn*) Member Appointed as member cum secretary of Nomination and Remuneration Committee since 2015 and re-appointed in AGMS on 15 April 2016. Listed in the Senior Executive Profiles. Complete profile is available in the Senior Executive Profiles. Joni Raini Member cum Secretary of Committee *) Term of office as Nomrem Committee member ended from the close of the EGMS 24 August 2017 Training for Members of NRC (excluding Commissioner/Independent Commissioners) in 2017 During 2017, Joni Raini attended several training related to Leadership, Risk & Governance, including Digital Leadership, Unsecured Retail Credit Risk Management organized by BARa, Business Acumen for Compensation Professional held by the Singapore National Employers Federation (SNEF) and also participated in internal coordination meetings and workshops within the Human Resources directorate. In addition, Joni Raini also won the Promising Young Banker in Indonesia Award for the period of 2014-2016 awarded by The Asian Banker. Annual Report CIMB NIAGA 2017 469
  470. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management BOARD OF COMMISSIONERS COMMITTEES Term of Office The term of office of NRC members shall not be longer than the term of office of the Board of Commissioners in accordance with POJK No . 34/POJK.04/2014 and the NRC Charter and may be re-elected. The term of office for members of NRC that are appointed within a Board of Commissioners term of office will automatically end together with such Board of Commissioners term of office. Independence of Nomination and Remuneration Committee All members of the NRC have met all the established independence requirements and are able to carry out their duties independently and uphold the interests of the Bank without the interference by any party. This can be observed by the majority of NRC members who are Independent Commissioners. Duties, Responsibilities and Authorities The NRC performs its duties and responsibilities professionally and independently, without interference from any party which is not in accordance with the applicable rules and regulations. The NRC has the roles and responsibilities to provide recommendations to the Board of Commissioners as follows: 1. Related to the nomination policy to: a. Prepare and provide recommendations on the system and procedures for the appointment and/or replacement of members of the Board of Commissioners, and Board of Directors, as well as Sharia Supervisory Board to the Board of Commissioners to be submitted to the GMS. b. Provide recommendation on the candidates of the members of Board of Commissioners and/ or Board of Directors, and/or Sharia Supervisory Board to the Board of Commissioners to be submitted to GMS. c.Evaluate the performance and establish a development programs for the Board of Commissioners and Board of Directors as well as Sharia Supervisory Board. d.Provide recommendations on Independent Parties who will be nominated as members of the Audit Committee, Risk Oversight Committee and Integrated Governance Committee. 470 2. Related to the remuneration policy to: a. Evaluate the remuneration policy; b.Evaluate the alignment of the remuneration policy with its implementation; c.Provide recommendations to the Board of Commissioners on: •The structure, policies and amount of remuneration for the Board of Commissioners, Sharia Supervisory Board, Board of Directors and members of the Board of Commissioners committee; and policy framework for •Remuneration Executive Officers and employees in total which has been approved by the Board of Directors. 3. The NRC shall ensure that the remuneration policy is taking into account: a. Financial performance and reserve requirements as governed under the prevailing rules and regulations; b. Individual work performance; c. Fairness with peer group; d. Consideration of the Bank’s long term goals and strategies; 4. In the event that a member of the NRC has conflict of interest with the recommended proposal, such proposal must disclose the conflict of interest and the considerations underlying such proposal. Duties Implementation in 2017 During 2017, NRC conducted activities and provided recommendations as follows: 1.Provided an evaluation of the Bank’s financial performance and identify areas of concern to Management for improvements in 2017. 2.Provided evaluation and input on BOD Key Performance Indicator (KPI) assessment, whereby the NRC provides input so that the assessment is more easily designed for better comprehension. 3. Provided input for conducting the Bank’s overall training and academic programs. Annual Report CIMB NIAGA 2017
  471. Supporting Business Review Corporate Governance Report Corporate Social Responsibility 4 . Provided assessment and input to the performance of BOC and members of the Committee by highlighting the matters with room for improvements in the future. 5.Provided input and recommendation on bonus payments and salary increases and promotion for employees in 2017 related to performance achievement (KPI) in 2016. 6.Provided reviews and recommendations on BOD and BOC remuneration schemes for 2017 to maintain fairness and competitiveness to create positive impact on the Bank’s overall performance 7. Conducted further discussion and provided input and directions related to the implementation of POJK Risk-Based Remuneration which include among others: relevant bank officers, payment mechanisms and other general rules regarding the implementation of Risk-Based Remuneration and timeline for the enactment of such regulation in the Bank 8. Provided guidance and feedback on the BOD 2017 KPI framework and the key points for BOD to review 9.Provided feedback on the current recruitment process in the Bank, regarding the importance of database recruitment and analytics to improve the overall recruitment quality and process. Conducted discussion and recommendation of 10. wellness program in the Workplace concerning the importance of flexibility in the retention efforts and increasing level of employee engagement to the Bank. Provided evaluation and guidance on the 11. preparation of the Code of Ethics & Conduct as part of Building Risk & Compliance Culture at CIMB Niaga, where the NRC underscores the need to involve stakeholders, particularly employees in the future and the importance of intensive communication as the key to success to achieve Bank’s corporate risk culture effectiveness. Others Corporate Data Consolidated Financial Report 12.Provided guidance and recommendation on the plan of Employee and Management stock programs (grants and options). 13.Provided direction and feedback regarding talent management framework that will be adopted within the Bank, so as to disseminate and implement them well. 14. Conducted discussion and provide recommendation in the nomination of members of the Board of Commissioners by considering the expertise, competence, background and experience of the candidates submitted by the Shareholders to be further discussed in the GMS. 15.Provided regular evaluation and direction to achieve the performance of the BOD (KPI) and provide encouragement for units whose achievements are below the target so as to allow them to make more efforts to ensure performance improvements at the end of the year. 16.Provided input and recommendations regarding the implementation of government regulations on transparency of remuneration structures and remuneration scale within the Bank. Provided inputs to support the ABC Working 17. Culture and Learning on the Go, by underlining the importance of efforts made to ensure alignment and success of the work culture and the benefits of innovation in the learning process/education within the Bank. 18.Provided guidelines for the Year End Performance Evaluation process, including performance moderation process, so that they are carefully monitored to enable the timely completion of performance evaluation 2017 19.Provided input and direction to KPI Framework proposal in 2018, by encouraging that KPI process is well conducted, in accordance with 2018 timelines and that any changes or updates should be reported to the NRC as appropriate. Nomination and Remuneration Reporting The NRC reports its activities and recommendations to the Board of Commissioners on a regular basis. Annual Report CIMB NIAGA 2017 471
  472. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management BOARD OF COMMISSIONERS COMMITTEES Nomination and Remuneration Committee Meeting and Meeting Attendance In accordance with the Charter , the NRC shall convene at least 10 (ten) meetings a year. Meetings can only be held when attended by at least 51% (fifty one percent) of the total members, including Independent Commissioners and an HR Executive Officer. During 2017, the NRC held 12 (twelve) meetings, with the following attendance: Attendance of NRC Meetings for January - December 2017 Name Attendance at the Nomination & Remuneration Committee meeting Physical Attendance 12 12 - Pri Notowidigdo Attendance in teleconferencing technology or telepresence Attendance Rates 100% Ahmad Zulqarnain Onn 6 3 3 50% Armida S. Alisjahbana 12 11 1 100% Joni Raini 12 12 - 100% *) *) Term of office as NRC member ended from the close of the EGMS on 24 August 2017 The composition, structure and terms of membership, duties and responsibilities, authority, organization of meeting and reporting are completely set forth in the Charter of the Nomination and Remuneration Committee uploaded on the Bank’s website. Remuneration of NRC Members A. Remuneration Package and Other Facilities Received Amount Received in 1 Year by Members of the Nomination and Remuneration Committee Types of Remuneration and Other Facilities Remuneration (salary, routine allowances, tantiem, and other non-natura facilities) Other natura facilities (housing, transportation, health insurance, and others) that: 2016 2017 Person Rp (Million) Person Rp (Million) 3*) 5.490 3 5.435 - - - - a. Could be owned - - - - b. Could Not be owned - - - - Total 3 5.490 3 5.435 *) include Commissioners whose term of office as NRC member ended from the close of the EGMS on 24 August 2017. Remuneration per Person Number of Nomination and Remuneration Committee Members - Above Rp5 billion 2016 2017 Above Rp5 billion - - Above Rp2 billion to Rp5 billion 1 2 Above Rp1 billion to Rp2 billion 2 1 Above Rp500 million to Rp1 billion - - Up to Rp500 million - - 472 Annual Report CIMB NIAGA 2017
  473. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report B . Variable Remuneration for the Members of the Nomination and Remuneration Committee Amount Received in 1 Year by Members of the Nomination & Remuneration Committee Variable Remuneration 2016 2017 Person Rp (Million) Person Rp (Million) nil nil nil nil Total BOD Succession Plan As set forth in the Bank Policy, the succession policiy of the Board of Directors and/or Senior Management is as follows: 1. The Board of Commissioners, assisted by the NRC, ensures that the Bank has a talent management system managed by Human Resources Directorate as a tool to identify executive officers who have the potential to maintain the continuity of leadership in the future, to maintain business sustainability, and promote the Bank’s long-term objectives. 2. The Human Resources Directorate together with the NRC identifies the internal talents within the Bank but does not exclude the potential talents of professionals for the purpose of planning the succession of the Board of Directors, including the President Director and/or Senior Management. 3. As for the internal talents within the Bank, the Human Resources Directorate performs evaluation to provide opportunities for further self-development for these talents, either in the form of mandatory training or career development opportunities. 4. The talents who are identified as potential replacement for members of the Board of Directors shall be evaluated and identified and must meet the requirements of the candidates of the Board of Directors of the Bank. Pri Notowidigdo Chairman Ahmad Zulqarnain Onn*) Member Armida S. Alisjahbana Member Joni Raini Member Concurrently as Secretary *) Term of office as NRC member ended from the close of the EGMS on 24 August 2017 Annual Report CIMB NIAGA 2017 473
  474. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management BOARD OF COMMISSIONERS COMMITTEES RISK OVERSIGHT COMMITTEE The Risk Oversight Committee reports to the Board of Commissioners to support the effective implementation of the duties and responsibilities of the Board of Commissioners in relation to Risk Management at the Bank . Legal References The establishment of the Risk Oversight Committee is based on the following rules: 1.POJK No. 55/POJK.03/2016 dated 7 December 2016 on the Implementation of Good Corporate Governance for Commercial Banks. 2.SEOJK No. 13/SEOJK.03/2017 dated 17 March 2017 on the Implementation of Good Corporate Governance for Commercial Banks. 3.The Articles of Association on the duties and authorities of the Board of Commissioners. Risk Oversight Committee Charter The Risk Oversight Committee established a Charter or Guidelines governing the membership, structure, authority, duties and responsibilities, meetings, activities and working procedures of the Risk Oversight Committee in performing its functions. The Risk Oversight Committee Charter was last updated on 21 April 2017 and has been uploaded to the CIMB Niaga’s website. Furthermore, the Risk Oversight Committee Charter shall be reviewed periodically in order to ensure its compliance with the prevailing regulations and Bank’s needs. Structure and Membership Membership and composition, as well as the independence of members of the Risk Oversight Committee has comply with prevailing regulators provisions. In 2017, the Risk Oversight Committee consisted of 1 (one) Chairman who is an Independent Commissioner, 2 (two) members who are Commissioners and 2 (two) non-Commissioners as Independent Parties with competence and qualification in finance and risk management. Members of the Risk Oversight Committee were appointed based on the Recommendation of the Nomination and Remuneration Committee No. 006/NOMREM/KP/III/2016 dated 23 March 2016 as approved by Board of Commissioners Circular Decision Letter No. 007/DEKOM/KP/IV/2016 dated 6 April 2016. The appointment was effective since the close of the 2016 AGMS until the close of the 2020 AGMS. Risk Oversight Committee Membership Composition in 2017 No Name Committee Position in Bank Position in Committee Term of Office Independent Commissioner Chairman 2016 - 2020 Vice President Commissioner Member 2016 - 2020 Commissioner Member 2016 - 2020 Firmanzah Independent Party Member 2016 - 2020 Sri Indrastuti (Tuti) S. Hadiputranto Independent Party Member 2016 - 2020 1 Zulkifli M. Ali 2 Glenn M. S. Yusuf 3 David Richard Thomas 4 5 474 Annual Report CIMB NIAGA 2017
  475. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Qualifications & Profiles of Risk Oversight Committee Members Member Profile Career Background Education Appointed as Chairman of the Risk Oversight Committee since March 2013 and concurrently as Chairman of the Audit Committee. He was re-appointed as Chairman of Risk Oversight Committee and Audit Committee in AGMS on 15 April 2016. He also serves as an Independent Commissioner. Listed in the Board of Commissioners Profiles. Complete profile is available in the Board of Commissioners Profiles. Zulkifli M. Ali Chairman Appointed as a member of the Risk Oversight Committee since March 2013 and re-appointed in AGMS on 15 April 2016. He also serves as Vice President Commissioner. Listed in the Board of Commissioners Profiles. Complete profile is available in the Board of Commissioners Profiles. Glenn M. S. Yusuf Member Appointed as a member of the Risk Oversight Committee since November 2014 and re-appointed in AGMS on 15 April 2016. He also serves as a Commissioner. Listed in the Board of Commissioners Profiles. Complete profile is available in the Board of Commissioners Profiles. David Richard Thomas Member Indonesian citizen, 41 years old. Appointed as Member of Risk Oversight Committee of CIMB Niaga since April 2016. Currently he is serving as the Rector of Paramadina University, Professor of Faculty of Economics and Business University of Indonesia, and Index Committee of Infrastructure Stock at PT Sarana Multi Infrastruktur Indonesia (Persero). Firmanzah Member Indonesian citizen, 74 years old. Appointed as Member of Risk Oversight Committee of CIMB Niaga since July 2016. She is one of the founding partners of Hadiputranto, Hadinoto & Partners, the largest Law Firm in Indonesia, a member of the Baker & McKenzie International Law Firm. He holds a PhD in Strategic & International Management from the University of Pau et Pays de l’Adour, France. Master of Philosophy from University of Science and Technology of Lille 1, France. MBA degree from University of Pierre Mendes-Grenoble II, France and Master of Management and Bachelor of Economics from University of Indonesia. She obtained a Law Degree from the University of Indonesia in 1970, a Master of Law from the University of Washington in 1981. She specializes in areas related to corporations, mergers and acquisitions, debt restructuring in companies/banks in Indonesia. Sri Indrastuti (Tuti) S. Hadiputranto Member She served as a member of the Board of Commissioners of the Indonesia Stock Exchange (“IDX”) for the period of 2001-2004. More than a decade, she has been a member of various IDX’s Committees with the last position as the Member of Discipline Committee. She has been consistently named as the top ranking in leading legal directories, such as Chambers Asia, Asia Pacific Legal 500, IFLR1000 and AsiaLaw Profiles, and in 2016 was selected as one of The Most Inspiring Woman in Indonesia by Forbes Indonesia. Annual Report CIMB NIAGA 2017 475
  476. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management BOARD OF COMMISSIONERS COMMITTEES Training for Independent Party Members of Risk Oversight Committee in 2017 Name Firmanzah Sri Indrastuti S . Hadiputranto Type of Training/Seminar/Workshop/Knowledge Sharing Date & Venue KPK Leaders Meeting Series with Anticorruption Partners “KPK Hearing” (Speaker) KPK 2 February 2017 Jakarta Indonesia Economy Outlook 2017 (Speaker) PLN 13 January 2017 Jakarta Social & Ecological Market Economy Workshop (Speaker) Paramadina University - Konrad Adenauer Stiftung 26 July 2017 Manado SOE Law Forums (Speaker) hukumonline.com 25 August 2017 Bali Judging Process of Indonesia Heroes Nomination (Jury) MNC Group 24 October 2017 Jakarta Indonesian Economic Talks (Speaker) Warta Ekonomi 17 November 2017 Jakarta National Meeting I of FEB Association of Perguruan Tinggi Muhammadiyah (Speaker) Asosiasi FEB Perguruan Tinggi Muhammadiyah 22 November 2017 Surabaya Seminar of Establishment of Collaborative Solution: Innovation in the Public Sector (Speaker) BPJS Ketenagakerjaan 23 November 2017 Jakarta Kami Indonesia Movement (Speaker) Kami Indonesia 16 December 2017 Yogyakarta Seminar of Astra Motor Centre (Speaker) Astra Centre Semarang 18 December 2017 Semarang The Role of Advocate Organizations in Generating Competent, Integrity & Professional Advocates (Speaker) Association of Capital Market Legal Consultants (HKHPM) 8 February 2017 Jakarta Fair Business Competition in Legal Services in Indonesia Association of Capital Market Legal Consultants (HKHPM) 21 August 2017 Jakarta Term of Office The term of office of a member of Risk Oversight Committee shall not be longer than the term of office the Board of Commissioners as stipulated in the Articles of Association and may be re-elected. The term of office of Committee members appointed within the term of office of the Board shall end with the term of office of such Board of Commissioners. Independence of Risk Oversight Committee All members of the Risk Oversight Committee have met all independence requirements and are able to carry out their duties independently, and uphold the interests of the Bank without the influence by any party. This is can be observed from the Risk Oversight Committee membership which consists of 1 (one) Chairman who is an Independent Commissioner, 1 (one) member who is an Independent Commissioner and 2 (two) non-Commissioner members as Independent Parties. 476 Organizer Duties, Responsibilities and Authorities The Risk Oversight Committee performs its duties and responsibilities professionally and independently without any intervention from any party that does not comply with the prevailing laws and regulations. In general, the main duties and responsibilities of the Risk Oversight Committee are to provide recommendations to the Board of Commissioners in order to support the effective implementation of duties and responsibilities of the Board of Commissioners relating to risk management, such as to: 1.Evaluate the conformity of risk management policies and the implementation of Bank policies; and 2. Monitor and evaluate the implementation of the duties of the Risk Management Committee and the Risk Management Unit. Annual Report CIMB NIAGA 2017
  477. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Duties Implementation in 2017 During 2017 , the Risk Oversight Committee has conducted activities in accordance with the Committee’s Work Plan, which are made annually in reference to the duties and responsibilities of the Risk Oversight Committee as set out in the Risk Oversight Committee Charter. Report on execution of duties of Risk Oversight Committee in 2017 comprise the activities and recommendations made among others: 1. Re-assessment and submission of recommendations to the Board of Commissioners on: a.policies/frameworks and the implementation by the Board of Directors in relation to risk management, and b.establishment of risk appetite, such as risk appetite statement, risk posture and sector appetite. 2. Evaluation of the duties of the Risk Management Committee and the Risk Management Unit and the evaluation of the consistency between risk management policies and their corresponding implementation through the discussion of: a.Risk Management Strategies and policies for various kinds of risk, not just Credit Risk, Operational Risk, Liquidity Risk and Market Risk but also Legal Risk, Strategic Risk, Compliance Risk, Reputational Risk and Information Technology Reputation. b. Risk Management related to capital, such as Internal Capital Adequacy Assessment Process and the conduct of stress tests. c. Internal reports that include monitoring results on macro-economic conditions, the Bank’s financial performance and risk indicators in order to ensure compliance with the Bank’s risk appetite. d. Mandatory reports to be submitted to Bank’s supervisory consisting of Risk Profile Report, the Bank Rating Report and other reports in order to ensure compliance with the delivery of information to bank supervisory on the Bank’s risk conditions. Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report 3. Monitoring of the Bank’s credit risk through the discussion of: a. Status and projection asset quality of each loan segment in order to ensure that each business units has taken the necessary measures to maintain and improve the quality of the Bank’s assets so as to align with the predetermined risk appetite. b. Thematic review of loan portfolios by sector highly correlated with economic fluctuations in 2017. c. Business plan, strategy and account planning for Prominent Groups. d.Implementation status as an initiative to improve the credit process. 4. Evaluation of the Bank’s strategic steps through the discussion of: a.Budget plan, business strategy and Bank Business Plan of 2017 in accordance with the Bank’s risk appetite. b. Recent reports on the implementation of the Basel and IFRS 9 project. 5.Monitoring of significant audit findings from the perspective of operational risk management including investigation report and follow-up on the mitigation and improvement. Risk Oversight Committee Reporting The Risk Oversight Committee reports activities and recommendations to the Board of Commissioners on a regular basis. Risk Oversight Committee Meeting and Meeting Attendance The Risk Oversight Committee Charter governs that the Risk Oversight Committee shall convene at least 1 (one) meeting per month and shall be physically attended at least 2 (twice) a year. Meetings can only be held when attended by at least 51% (fifty one percent) of the total members, including an Independent Commissioner and an Independent Party. 477
  478. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management BOARD OF COMMISSIONERS COMMITTEES During 2017 , the Risk Oversight Committee held 12 (twelve) meetings with member attendance as follows: Attendance of Risk Oversight Committee Meetings for January - December 2017 Attendance in Risk Oversight Committee Meetings Physical Attendance Attendance through teleconference or telepresence Attendance Rates Zulkifli M. Ali 12 12 - 100% Glenn M. S. Yusuf 12 12 - 100% David Richard Thomas 10 3 7 84% Firmanzah 11 11 11 92% Sri Indrastuti (Tuti) S. Hadiputranto 10 9 1 84% Name Information concerning the composition, structure and membership requirements, roles and responsibilities, authority, organization of meeting and reporting are completely set forth in Risk Oversight Committee Charter uploaded in the Bank’s website Zulkifli M. Ali Chairman Glenn M. S. Yusuf Member 478 David Richard Thomas Member Firmanzah Member (Independent Party) Sri Indrastuti (Tuti) S. Hadiputranto Member (Independent Party) Annual Report CIMB NIAGA 2017
  479. Supporting Business Review Corporate Governance Report Corporate Social Responsibility INTEGRATED GOVERNANCE COMMITTEE CIMB Niaga established the Integrated Corporate Governance Committee to assist the Board of Commissioners as the Board of Commissioners of Main Entity in overseeing Integrated Governance in the CIMB Indonesia financial conglomeration to ensure in accordance with the prevailing regulations and legislation . Legal Basis The establishment of the Integrated Governance Committee was based on the following regulations: 1. Financial Services Authority Letter (POJK) No. 18/ POJK.03/2014 dated 18 November 2014 on the Implementation of Integrated Governance for Financial Conglomerations. 2.Financial Services Authority Circular Letter (SEOJK) No. 15/SEOJK.03/2015 dated 25 May 2015 on Integrated Governance for Financial Conglomerations. 3. Integrated Governance Committee Charter. 4. Articles of Association. Others Corporate Data Consolidated Financial Report Integrated Governance Committee Charter The Integrated Governance Committee of CIMB Niaga has a Charter that governs the membership, structure, authority, duties and responsibilities, meetings, activities, and working procedures of the Integrated Governance Committee in performing its functions. The Integrated Governance Committee Charter has been effective since 21 August 2015 and has been uploaded to the Bank’s website and is periodically reviewed to comply with the prevailing regulations and Bank needs. Structure and Membership Membership and composition, as well as the independence of Integrated Governance Committee members has comply with the provisions of the competent authority. Members of the Integrated Corporate Governance Committee are appointed based on the Recommendation of the Nomination and Remuneration Committee of PT Bank CIMB Niaga Tbk No. 006/NOMREM/KP/III/2016 dated 23 March 2016, which was approved by the Circular Decision Letter of the Board of Commissioners No. 007/DEKOM/KP/ IV/2016, dated 6 April 2016 and the latest amendment, as recommended by the Nomination and Remuneration Committee in its meeting dated 22 June 2016, which obtained approval in the Board of Commissioners Meeting dated 24 June 2016. Integrated Governance Committee Composition in 2017 No. Nama Position in Bank Position in Committee 1 Jeffrey Kairupan Independent Commissioners CIMB Niaga Chairman 2 Armida S. Alisjahbana Independent Commissioners CIMB Niaga Member 3 Endang Kussulanjari S. Independent Party Member 4 Serena K. Ferdinandus Independent Commissioners CIMB Niaga Auto Finance Member 5 Albertus Banunaek President Commissioners CIMB Principal Asset Management Member 6 Inarno Djajadi *) President Commissioners CIMB Securities Indonesia Member 7 Yulizar D. Sanrego Sharia Supervisory Board CIMB Niaga Member 8 Vera Handajani Director of Risk Management CIMB Niaga Member 9 Fransiska Oei Director of Compliance CIMB Niaga Member 10 Antonius Pramana Gunadi Chief Audit Executive CIMB Niaga Member *) Resigned as President Commissioner of CIMB Securities Indonesia since 1 October 2017. Annual Report CIMB NIAGA 2017 479
  480. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management BOARD OF COMMISSIONERS COMMITTEES Qualifications & Profiles of Integrated Governance Committee Members Name Career Background Appointed as Chairman of the Integrated Governance Committee since AGMS 15 April 2016. Education Listed in the Board of Commissioners Profiles. Complete profile is available in the Board of Commissioners Profiles. Jeffrey Kairupan Chairman Appointed as Member of the Integrated Governance Committee since AGMS 15 April 2016. Listed in the Board of Commissioners Profiles. Complete profile is available in the Board of Commissioners Profiles. Armida S. Alisjahbana Member Indonesian citizen, 61 years old. Has served as a member of the Integrated Governance Committee since August 2016. Currently, she also serves as a Commissioner of PT Pefindo Biro Kredit She holds a Master of Arts from the University of Colorado Boulder, Colorado - USA and a Bachelor of Economics from the University of Gadjah Mada, Yogyakarta, Indonesia. Endang Kussulanjari S. Member Indonesian citizen, 57 years old. Has served as a member of the Integrated Governance Committee since March 2015. She holds Economic decre from University of Indonesia. She has also served as a member of the Risk Management Committee of PT Elnusa Tbk since 2016, Independent Commissioner and Head of the Audit Committee of PT Bank CIMB Niaga Auto Finance since 2012, member of the Audit Committee of PT Blue Bird Tbk since 2014, and Commissioner of PT Anpa International since 2012, and Chief Audit Executive (Head of Internal Audit & Risk Management Division) of PT Ithaca Resources since 2009. Serena K. Ferdinandus Member 480 Previously, she served as a member of the Audit Committee of PT Elnusa Tbk. (2015 - 2016), member of the Audit Committee of PT Chandra Asri Petrochemical Tbk (2009 - 2015) and PT Barito Pacific Tbk (2009-2013). She also held the position of Senior Vice President of Investment Banking Division at PT NC Securities (2002 - 2009), Vice President of Investment Banking Division and Direct Investment Division at PT Danareksa (Persero) and PT Danareksa Finance (1996-2001), and Manager of the Audit Division at Ernst & Young, Sarwoko & Sandjaja, Indonesia (1986 - 1995) and Ernst & Young, Dallas. Annual Report CIMB NIAGA 2017
  481. Supporting Business Review Corporate Governance Report Name Corporate Social Responsibility Others Corporate Data Career Background Indonesian citizen , 62 years old. Has served as a member of the Integrated Governance Committee since March 2015. He has also served as the President Commissioner (Independent) of PT CIMB Principal Asset Management since 2011. He is also the Founder/ CEO of AMConsult. Albertus Banunaek Member Consolidated Financial Report Education He holds Master of Law from University of Indonesia in 2006. The best graduate from National Resilience Institute of Republic of Indonesia (Lemhanas, KRAXXXV/2002) Previously, he served as the President Director of PT KAF Finance (19992003), Managing Director of PT CAF Finance (1997-1999), Chief Operating Officer of Ometraco Group (1992-1997), and held various positions in General Management, Consulting, Banking & Finance at PT Jayapari Steel Tbk., Business Advisory Indonesia, HSBC Bank, and BDNI Bank. He previously held positions mostly in finance, banking and in the capital market, with his last position as Vice Chairman of the Capital Market Committee at the Chamber of Commerce of Indonesia (1992-2012). He also served as the Secretary General (1997-2004), in the Asian Leasing Association and as Chairman (1999-2004) and Secretary General (19951999) in the Indonesian Leasing Association. He also joined the Indonesian Justice and Unity Party (PKPI). In 2002-2008 he held various positions as Deputy Treasurer, Treasurer with his most recent position being Coordinator IX for Eastern Indonesia (Bali, West Nusa Tenggara and East Nusa Tenggara). Indonesian citizen, 55 years old. Has served as a member of the Integrated Governance Committee since March 2015. He has also served as the President Commissioner/Independent Commissioner of PT CIMB Securities Indonesia since 2014 and as President Commissioner of PT Kliring Penjaminan Efek Indonesia since 2013. Inarno Djajadi *) Member He holds a degree in Economics from University of Gadjah Mada and obtained certification as investment manager in 1999 and underwriters in 2009. Prior to that, he also served as President Commissioner of PT Maybank Kim Eng Securities (2013-2014), and held position as Commissioner (2010 - 2013) and President Director (2003 - 2009) at PT Kliring Penjaminan Efek Indonesia. In addition, he also served as President Director of PT Madani Sekuritas and Director in various companies such as PT Widari Securities, PT Mitra Duta Sekuritas and PT Aspac Uppindo Sekuritas. Complete profile is available in the Sharia Supervisory Boards Profiles. Listed in the Sharia Supervisory Board Profiles. Complete profile is available in the Board of Directors Profile. Listed in the Board of Directors Profiles. Yulizar D. Sanrego Member Vera Handajani Member Annual Report CIMB NIAGA 2017 481
  482. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management BOARD OF COMMISSIONERS COMMITTEES Name Career Background Education Complete profile is available in the Board of Directors Profiles . Listed in the Board of Directors Profiles. Complete profile is available in Internal Audit Unit Report Listed in the senior Executives Profiles. Fransiska Oei Member Antonius Pramana Gunadi Member *) Resigned as the President Commissioner of CIMB Securities Indonesia on 1 October 2017. Training of Members (other than CIMB Niaga management) of the Integrated Governance Committee in 2017 Name Endang Kussulanjari Serena Ferdinandus Type of Training/Seminar/Workshop/Knowledge Sharing Organizer Date & Venue Risk Management Maintenance Program - Fraud Prevention in Banking: Case Study of Fraud Events & How to Identify Falsification of Documents & Graphonomy “ BSMR 29 April 2017 Jakarta 2017 IIA (The Institute of Internal Auditor) Indonesia National Conference The Institute of Internal Auditor 10-11 October 2017 Bandung APPI 5 December 2017 Jakarta ERMA dan MKS 6 December 2017 Yogyakarta National Seminar: Cooperation Opportunities of Financing Companies with Banking and Fintech Master Class Risk Governance Term of Office The term of office of the Integrated Governance Committee shall not be no longer than the term of office of the Board of Commissioners as regulated in the Articles of Association and may be re-appointed. The term of office of members of the Integrated Governance Committee, that are appointed during a Board of Commissioners term of office, will automatically end together with such Board of Commissioners term of office. This can be observed from the membership, which comprises : 1. An Independent Commissioner who serves as a Chairman in one of the committees in the Main Entity, as Chairman and member; 2. An Independent Commissioner who represents, and is appointed from FSI within the Financial Conglomerate, as a member; 3. An independent party, as a member. Independency of the Integrated Governance Committee All members of the Integrated Corporate Governance Committee have met all the established criteria of independency and are capable of performing their duties independently and upholding the interests of the Bank without interference from any parties. 482 Annual Report CIMB NIAGA 2017
  483. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Duties , Responsibilities and Authorities The Integrated Governance Committee has the following duties and responsibilities: 1.Evaluate Integrated Governance by assessing the adequacy of internal controls and the implementation of compliance in an integrated manner; 2.Provide recommendations to the Board of Commissioners of the Main Entity concerning improvements to the Integrated Governance Charter. Duties Implementation in 2017 During 2017, the Integrated Governance Committee focused on conducting evaluations on the following matters: 1. Reviewed the Integrated Risk Management Report. 2. Reviewed the Integrated Minimum Core Capital Adequacy Report. Others Corporate Data Consolidated Financial Report 3. Reviewed the Integrated Internal Audit Report. 4. Reviewed the Integrated Compliance Report. 5. Reviewed Self Assessment of the Implementation of Integrated Governance periodically Report as of June and December 2017. Integrated Governance Committee Reporting The Integrated Governance Committee reports its activities and recommendations to the Board of Commissioners on a regular basis. Committee Meetings and Attendance The Integrated Governance Committee Charter stipulates that it shall hold meeting at least 2 (two) times a year. Meetings can only be held if attended by at least 51% (fifty one percent) of the total members, including the Independent Commissioners and Independent Parties. During 2017, the Integrated Governance Committee held 2 (two) meetings on 8 February 2017 and 31 July 2017, which included the ratification of the minutes of previous meetings, discussion on issues that needed to be followed-up on from the previous meetings, and other matters that required attention with attendance levels as follows: Attendance of Integrated Governance Committee Meetings for January - December 2017 Name Attendance in Risk Oversight Committee Meetings Physical Attendance Attendance through teleconference or telepresence Jeffrey Kairupan 2 2 - Armida S. Alisjahbana 2 2 - Endang Kusulanjari S. 2 2 - Serena Ferdinandus 2 2 - Albertus Banunaek 1 1 - Inarno Djajadi *) 1 1 - Yulizar D. Sanrego - - - Vera Handajani 2 2 - Fransiska Oei 2 2 - Antonius Pramana Gunadi 1 1 - *) Resigned as the President Commissioner of CIMB Securities Indonesia on 1 October 2017. Annual Report CIMB NIAGA 2017 483
  484. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management BOARD OF COMMISSIONERS COMMITTEES During 2017 , the meeting agendas discussed by the Integrated Governance Committee were as follows: 1. Confirmation of previous minutes of the meeting. 2. Discussion on matters that required to be followed-up on, referring to the previous meetings to identify and update their status. 3. Integrated Risk Management Report. 4. Integrated Capital Adequacy Ratio Report. 5. Integrated Internal Audit Report. 6. Integrated Compliance Report. 7. Integrated Governance Implementation Assessment Report. 8.Others. Jeffrey Kairupan Chairman Armida S. Alisjahbana Member Endang Kussulanjari S. Member Serena K. Ferdinandus Member Albertus Banunaek Member Inarno Djajadi* Member Yulizar D. Sanrego Member Vera Handajani Member Fransiska Oei Member Restiana Linggadjaya Member *) Resigned as the President Commissioner of CIMB Securities Indonesia on 1 October 2017. 484 Annual Report CIMB NIAGA 2017
  485. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Board of Directors Committees EXECUTIVE COMMITTEE The Executive Committee is the committee at the Board of Directors level , established to support the conduct of the duties and responsibilities of the Board of Directors. In accordance with the regulations, the Bank is required to establish 3 (three) Executive Committees namely: Risk Management Committee, Asset & Liability Committee, and IT Steering Committee. However, as set forth in the BOD Charter, the BOD also has the authority to establish other Committees based on the Bank’s business needs. With the growing complexity of business and the importance of good governance, CIMB Niaga maintains 6 (six) Executive Committees: 1. Risk Management Committee (RMC) 2. Asset & Liability Committee (ALCO) 3. Information Technology Steering Committee (ITSC) 4. Operational Risk Management Committee (ORC) 5. Credit Policy Committee (CPC) 6. Capital Management & Recovery Plan Committee (CMRP) In addition, CIMB Niaga also maintains other Committees specifically established by the Director in charge (related to certain aspects under the responsibility of such Director) or a designated Director (hereinafter referred to as “Designated Director”), which include among others BDC, MarCom, PPC, CC, DC and DGC with the segregation of duties and responsibilities clearly defined in the Terms of Reference (TOR) of each Committee. The membership structure and description of the duties of the Executive Committee of CIMB Niaga are as follows: RISK MANAGEMENT COMMITTEE (RMC) Main Functions and Authorities RMC is the committee in charge of providing recommendations to the President Director in formulating and refining policies, evaluating the progress and conditions of the risk profile, and providing recommendations and remedial measures. Structure and Membership Chairman:President Director Deputy Chairman 1:Risk Management Director Deputy Chairman 2:Credit Director Annual Report CIMB NIAGA 2017 Members: - Operations & Information Technology Director - Compliance, Corporate Affairs and Legal Director - Strategy and Finance Director - Consumer Banking Director - Business Banking Director - Sharia Banking Director - Treasury and Capital Markets Director - Human Resources Director - Chief of Corporate Banking - Chief of MSME - Chief of Audit Executive - Chief of Corporate Strategic Initiatives Secretary: Market Risk Management Head Roles and Responsibilities 1.Develop and recommend risk management policies and frameworks, including the Bank’s risk management strategy and Risk Appetite Statement (RAS). 2.Conduct a review of risk exposures and implementation of risk management in the Company and its subsidiaries, periodically or incidentally, as a result of changes in the Bank’s external and internal conditions. 3.Approve the risk profile report, stress testing including the scenarios, and risk mitigation followup. 4.Approve specific risk management policies beyond the policies approved by other executive committees. 5. Review the adequacy of capital in the Bank and its subsidiaries. 6. Approve the Bankwide limit/Management Action Trigger (MAT); such as sector/industry limit, VaR limit, etc. 7. Evaluate and approve treasury market risk limits, exceeds market risk limits, and changes in market risk measurement processes. 8.Obtain decision reports made by other risk management committees which include: ALCO (Asset & Liabilities Committee), ORC (Operational Risk Committee) and CPC (Credit Policy Committee). 9.Be notified of the decision of the Business Development Committee (BDC) regarding new products and activities. 485
  486. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management BOARD OF DIRECTORS COMMITTEES Meeting , Quorum, and Decision Making 1. Meetings are held at least 10 (ten) times in one year 2. The quorum of the meeting is at a minimum of 5 (five) members, including 4 Directors and the Chairman or Vice Chairman of the Committee 3. The decision-making quorum is approved by more than 50% (fifty percent) of the Committee members present at the meeting, including 2 Directors, one of whom is the Chairman or Vice Chairman of the Committee Work Realization in 2017 1. Provided recommendations and approvals of policy frameworks and risk management frameworks, including integrated risk management policies, and transparency and capital risk management policies. 2. Approved market risk limits, operating limits for consumer products such as Pension Loan, and changes to In-house limits. 3. Approved the results of the parameters review and report of Risk Profile, Material Risk Assessment (MRA) and Risk Based Bank Rating (RBBR), Capital, Integrated Risk Management, Sector Appetite and ICAAP. 4.Evaluated the condition and development of the Bank portfolio, such as portfolio of plasma financing scheme, consumer portfolio asset quality, and watch list account. 5.Approved the score card model for mortgage exposure at default and CNAF LGD. 6.Approved the implementation plan for PSR methodology. 7. Approved the results of stress testing conducted bank wide. 8.Discussed matters arising from previous RMC meetings. Work Program in 2018 1.Approve and evaluate policies related to risk management. 2.Improve the role of the committees in the implementation of the best risk management strategy. 3. Improve meeting effectiveness by focusing on key risk issues. 4. Comply with the regulations of Bank Indonesia and the Financial Services Authority in risk management. 486 ASSET & LIABILITY COMMITTEE (ALCO) Main Functions and Authorities ALCO is support BOD in analysing and evaluating the management of assets and liabilities, as well as the related decision-making process through the formulation of policies, strategies and targets to manage the Bank’s assets and liabilities in an integrated manner. Structure and Membership President Director Chairman: Deputy Chairman 1:Strategy and Finance Director Deputy Chairman 2 : Treasury and Capital Market Director Members - Business Banking Director - Risk Management Director - Operations and IT Director - Credit Director - Consumer Banking Director - Sharia Banking Director - Human Resources Director - Compliance, Corporate Affair, and Legal Director Secretary : Asset and Liability Management Head Roles and Responsibilities 1. Review of Balance Sheet and Net Interest Income (NII) a. Review and analyse bank balance sheets by business, composition of assets and liabilities, currencies, growth, revenues and margins. b. Assess the variances arising from the plan and the actualization of the balance sheet and how it affects funding and lending, balance sheet ratios, and whether banks remain within the limits of the Risk Appetite. c.Assess NII and Net interest Margin (NIM) trends, as well as differences between actual conditions and projected outcomes. d. Assess the impacts on the NII under Base case conditions, and under Stressed Economic Scenarios. e. Review and ensure that the Fund Transfer Pricing (FTP) framework is appropriate and serves as a connector among business lines and prioritizes consistency in the Bank’s performance. f. Review and approve Pricing that requires regulatory approval as well as Pricing of new Annual Report CIMB NIAGA 2017
  487. Supporting Business Review Corporate Governance Report Corporate Social Responsibility and old products in line with the Bank ’s strategic and business objectives. 2. Contingency Funding Plans a. Review the Contingency Funding Plan (“CFP”) as an operational business plan and measure the capacity of the business plan to ensure that management actions to be taken are realistic; and b.Ensure that Early Warning Indicators are relevant to current conditions. 3. Asset Liability Management a. Review the Asset and Liability Management (ALM) framework and policies to ensure that the framework and policies are in accordance with the current and future size and operational complexity of CIMB Niaga. b.Uphold the consistent implementation of practices and policies in the Bank c. Approve Management Action Trigger (“MAT”)/ liquidity risk limits and interest rates within the Banking Book. d.Establish, supervise and review hedging strategies of bank entities under CIMB Niaga. e. Review and ensure that the Bank’s risk profile is within the limits specified in the MAT/liquidity risk limits and interest rate risk in the Banking Book, including reviewing internal stress tests as well as those established by the regulator for all currencies and all CIMB Niaga entities; f. Review and approve ALM risk parameter model and validation model; and g. Identify and assess funding and liquidity needs, and take appropriate steps for certain liquidity and funding conditions. Meeting, Quorum, and Decision Making 1. Meetings are held at once a month 2. The quorum of the meeting is at a minimum of 50% (fifty percent) of the Committee members and 1 (one) Director Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report 3. The decision-making quorum is approved by a minimum of 50% (fifty percent) of the Committee members present at the meeting 4.All members/representatives must attend a minimum of 75% (seventy five percent) of the meetings in one year Work Realization in 2017 1.Migrated to BUKU IV seamlessly and ensured no significant expenses were incurred, yet still complying with the maximum rate limit policy required by the regulator. 2. Encouraged loan portfolio growth in some key products such as Mortgage and SME. 3.Executed the contingency funding plan on December 19, 2017. 4. Ensured that the Bank’s liquidity level was always at an optimum level. 5.Monitored and revised the funding pricing strategies by actively taking into account the level of funding required, competition in the market, and the maximum level of funding pricing set by the regulator. 6.Maintained the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) above the regulatory requirements. 7. Issued Negotiable Certificate of Deposit (NCD) and bonds as alternative and diversified sources of funding. Work Program in 2018 1.Implement Interest Rate Risk in the Banking Book (IRRBB) in accordance with the regulatory requirements. 2. Adjust CASA FTP methodology with the calculation of run off of LCR and NSFR based on regulatory requirements. 3. Increase sales of Product Bundling/Cross selling as the next step in marketing loan products in addition to offering competitive interest rates. 4. Devise strategies to grow CASA funds without incurring any potential expenses. 5. Increase the Bank’s income through investment in the bond market while ensuring bank liquidity is maintained and still within the limits set by the risk management team. 6. Enhance Recovery Plan documents. 487
  488. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management BOARD OF DIRECTORS COMMITTEES Bonds Type Issuance Date Maturity Date Coupon Nominal Shelf Registered Bonds II , Phase II, Year 2017, Series A 23 August 2017 3 September 2018 6.75% IDR 802 bio Shelf Registered Bonds II, Phase II, Year 2017, Series B 23 August 2017 23 August 2020 7.70% IDR 376 bio Shelf Registered Bonds II, Phase II, Year 2017 Series C 23 August 2017 23 August 2022 8.15% IDR 822 bio Shelf Registered Bonds II, Phase III, Year 2017, Series A 2 November 2017 12 November 2018 6.20% IDR 500 bio Shelf Registered Bonds II, Phase III, Year 2017, Series B 2 November 2017 2 November 2020 7.50% IDR 657 bio Shelf Registered Bonds II, Phase III, Year 2017, Series C 2 November 2017 2 November 2022 7.75% IDR 843 bio Negotiable Certificate of Deposit (NCD) Type Issuance Date Maturity Date Coupon Nominal NCD III CIMB Niaga, Year 2017, Series A 18 May 2017 17 November 2017 7.20% IDR 576 Bio NCD III CIMB Niaga, Year 2017, Series B 18 May 2017 15 February 2018 7.35% IDR 214 Bio NCD III CIMB Niaga, Year 2017, Series C 18 May 2017 18 May 2018 7.45% IDR 710 Bio INFORMATION TECHNOLOGY STEERING COMMITTEE (ITSC) Main Functions and Authorities ITSC is the committee in charge of providing views and recommendations on the policy of IT system management and development in CIMB Niaga. Structure and Membership Directors who become members of ITSC must comprise at least 2/3 of the total number of Board of Directors, and an Executive Officer one level below the appointed Director. The membership of the Committee consists of: Chairman: President Director Deputy Chairman 1:Operations and Information Technology Director Deputy Chairman 2:Strategy and Finance Director Member - Risk Management Director - Consumer Banking Director - Treasury and Capital Markets Director - Credit Director - Sharia Banking Director - Business Banking Director - Human Resources Director - Compliance, Corporate Affairs & Legal Director - Head of Internal Audit Unit. Secretary: Head of Information Technology Unit 488 Roles and Responsibilities The roles and responsibilities of the ITSC are to provide recommendations related to: 1. IT Strategic Plan which is in line with the Bank’s strategic business plan. Things should be considered are as follows: a.road map to achieve IT requirements that support the Bank’s business strategy; b. resources needed; c. benefits gained when the IT Strategic Plan is implemented; and d. constraints that may arise in the execution of the IT Strategic Plan. 2. Formulation of major IT policies, standards and procedures, such as IT key policies and IT risk management policies. 3. Alignment between IT projects approved with the IT Strategic Plan. The IT Steering Committee also sets the priority status of a critical IT project with significant impact on the Bank’s operational activities. 4. Alignment between IT project implementation and agreed project plan (Project Charter). The IT Steering Committee also equips the recommendation with the results of analysis of key IT projects. The agenda is also part of the CIC (Capital Investment Committee) agenda. 5. Alignment between IT and management information system needs and the Bank’s business needs. Annual Report CIMB NIAGA 2017
  489. Supporting Business Review Corporate Governance Report Corporate Social Responsibility 6 . The effectiveness of steps taken to minimize the Bank’s investment risks in the IT sector so that the Bank’s investment in the IT sector contributes to the achievement of the Bank’s business objectives. 7. Monitoring of IT performance and the improvement efforts. 8. Efforts to resolve various IT-related issues that cannot be solved by the user’s business units and the provider of IT services in an effective, efficient, and timely manner. 9. Adequacy and allocation of resources owned by the Bank. Meeting, Quorum, and Decision Making 1. Meetings are held at least 4 (four) times in one year 2. The quorum of the meeting is attended by more than 2/3 (two thirds) of the members of the Board of Directors. 3. The decision-making quorum is approved by more than 2/3 (two thirds) of the Board of Directors members present at the meeting. Work Realization in 2017 1. Established the 2018 – 2020 IT Strategic Plan, Key Initiatives Alignment. 2.Performed regular monitoring of the status of IT strategic project development in the 2017 Corporate Operating Plan. 3. Established the implementation of IT policies such as 2017 Disaster Recovery Testing Plan. 4. Monitored the utilization of IT-related expenses in the Information Technology strategic projects in the 2017 Corporate Operating Plan. 5. Established efforts to improve IT services. 6. Established the IT Security Roadmap. 7. Evaluated and resolved IT issues. 8. Socialized OJK regulatory. Work Program in 2018 1. Recommendation of 2018 – 2020 IT Strategic Plan. 2. Recommendation of formulation of IT key policies, standards and procedures. 3. Recommendation for prioritizing IT projects and conformity with IT Strategic Plan. 4. Recommendation of implementation of IT projects. Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report 5.Recommendation of conformity of IT with management information system needs and the Bank’s business activities. 6. Recommendation of IT’s budget assessment and capital expenditure. 7. Monitoring of the efficiency of IT services. 8. Assessment of IT issues. 9.Recommendation of analysis of IT resources owned by the bank. OPERATIONAL RISK MANAGEMENT COMMITTEE (ORC) Main Functions and Authorities ORC has the roles and responsibilities to manage operational risk policies, to ensure an adequate level of operational risk to implement control. Structure and Membership Risk Management Director Chairman: Deputy Chairman 1:Operations and Information Technology Director Deputy Chairman 2:President Director Member - Credit Director - Compliance, Corporate Affairs and Legal Director - Treasury and Capital Market Director - Strategy and Finance Director - Consumer Banking Director - Human Resources Director - Sharia Banking Director - Business Banking Director - Chief of Audit Executive - Chief of Corporate Strategic Initiative - Chief of Micro Small Medium Enterprise - Chief of Corporate Banking - Chief of Commercial Banking Secretary: Head of Operational Risk Management Roles and Responsibilities 1. Accept the operational risk framework and policy to ensure that the framework is appropriate for the Bank’s current and future size and operational complexity. 2. Review the Bank’s significant operational risks and monitor management responses/actions in order to actively manage the Bank’s operational risks. 489
  490. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management BOARD OF DIRECTORS COMMITTEES 3 .Supervise the Bank’s overall operational risk control environment by: a. Reviewing risk reports from each directorate; b. Requesting and reviewing thematic reports. 4. Review and approve the Bank’s operational policies and the changes that are escaladed to the ORC as required. 5. Review other important or critical matters that ORC needs to decide upon. Meeting, Quorum, and Decision Making 1. Meetings are held at least 10 (ten) times in one year 2. The quorum of the meeting is attendance by more than 50% (fifty percent) of the members of the Committee, including 50% (fifty percent) of the Board of Directors members who are members of the Committee. 3. The decision-making quorum is approved by a minimum of 50% (fifty percent) of Committee members present at the meeting, including 50% (fifty percent) of the Board of Directors members on the Committee who are present at the meeting. Work Realization in 2017 1.Approved the refining of Operational Risk Management Framework, Policies and Procedures related to Event Management and Data of Operational Risk Loss, Risk & Control Self Assessment, Control Issue Management, Operational Risk Reserve and New Product Approval. 2. Reviewed the different authentication processes in the Personal Loan - Telesales Channel that may pose a compliance risk, and granted approval of the request from the unit to proceed with the authentication process that had been executed until the time the authentication process was implemented as required, at the same time requesting clarification from the OJK. ORC provided direction so that the results of clarification from the OJK were immediately obtained. 3. Monitored and assessed the achievement of the predetermined Risk Appetite. 4.Reviewed the results of 2016 Business Impact Analysis and Risk Assessment, 2017 BCM Work Plan, Implementation of BCM E-Learning in 2017, and approved the Business Continuity and Disaster Recovery Plan 2017 testing schedule. 490 5. Reviewed the Legal review results and Backtesting results of debtors in the High Watch List category to ensure that the review had been adequately performed to serve as a learning process for the Legal Business to minimize the impact of such operational risk. 6. Monitored corrective action on the monitoring of and compliance with documents to be obtained and exception reports related to loans. 7.Conducted review and discussion related to dormant accounts and corrective action on such dormant accounts including mitigation efforts to prevent potential fraud. 8. Reviewed and discussed the Follow Up Plans from the units having Above Average and High risk ratings and the deadlines to improve the rating to Moderate level, as well as discussions related to the establishment of specific Key Risk Indicators in each unit as one of the parameters to monitor operational risk. 9.Reviewed and discussed the process manuals related to Cash Back/Refund payments and improvement plans to mitigate operational risks. 10.Reviewed and discussed the results of End Point Security and Data Security Road Map surveys including mitigation efforts to protect sensitive data owned by the Bank and vendors. 11. Reviewed the updating of operational risk parameters for the Risk Appetite Statement. 12. Approved Significant Change and Assessment Process (SCAP) Policies and Procedures to ensure that risk assessment and mitigation/control processes had been conducted in such change process. 13.Conducted review and discussion related to the work plan to improve the Bank’s effort in data loss prevention. 14.Reviewed and discussed the trends of e-Channel fraud and its mitigation efforts. 15.Reviewed and discussed the implementation of Dukcapil, including the impact and mitigation efforts of risks that may arise. Annual Report CIMB NIAGA 2017
  491. Supporting Business Review Corporate Governance Report Corporate Social Responsibility 16 .Conducted study and discussion related to process and validation results upon implementation of operational risk management tools. 17.Reviewed the results of risk assessment submitted by each business unit/business support, both for conventional and Sharia Banking, including subsidiaries, and provided guidance and made decisions to improve the control environment, as well as the development of the required system, including monitoring its completion within the targeted timeline. Work Program in 2018 1. Review and approve operational risk management frameworks as well as other related policies and ensure that such frameworks and policies are properly implemented. 2.Monitor and assess the achievement of the predetermined Risk Appetite. 3.Monitor the Bank’s performance in managing operational risk by using various operational risk management tools (ORM Tools) including the established risk appetite. 4. Review the results of risk assessment submitted by each business unit/business support, both for conventional and Sharia banking, including subsidiaries and provide direction and decisions to improve the control environment and also the system development required. Improve monitoring, particularly of critical 5. operational risks, as well as thematic risks to ensure mitigation action has been taken to prevent recurring events in the future, as well as monitoring corrective action taken in accordance with predetermined timelines. 6. Evaluate the implementation of the operational risk management process by ensuring the effective implementation of the Three Lines of Defense. 7. Review and monitor project progress and initiatives that support operational risk management. Others Corporate Data Consolidated Financial Report CREDIT POLICY COMMITTEE (CPC) Main Functions and Authorities The CPC assists the Board of Directors in formulating credit policies, as well as providing advice on improvements related to credit policies. The CPC also serves to ensure compliance with GCG principles in credit policy for the benefit of the Bank and stakeholders. Structure and Membership President Director Chairman: Deputy Chairman 1:Credit Director Deputy Chairman 2:Risk Management Director Members - Consumer Banking Director - Compliance, Corporate Affairs and Legal Director - Strategy and Finance Director - Operations and Information Technology Director - Treasury and Capital Market Director - Human Resources Director - Sharia Banking Director - Business Banking Director Secretary: Wholesale and Commercial Credit Policy Head Roles and Responsibilities 1. Establish the direction of credit policy, including Risk Acceptance Criteria, credit approval and the process of credit approval, in line with the Bank’s risk appetite to drive credit growth with good quality yet still considering prudential banking practices. 2. Establish and ensure consistency of: a. the Bank’s compliance with credit management policies and prevailing regulations, particularly those that govern significant risk exposures; b.approval of the Bank’s credit management policies and strategies; and c. supervision on the implementation of credit policy. Meeting, Quorum, and Decision Making 1. Meetings are held at least 10 (ten) times in one year. 2. The quorum of the meeting is at more than 50% (fifty percent) of the members of the Committee, including a minimum of 50% (fifty percent) of the Board of Directors members. Annual Report CIMB NIAGA 2017 491
  492. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management BOARD OF DIRECTORS COMMITTEES 3 .The decision-making quorum is approval by more than 50% (fifty percent) of the members of the Committee present at the meeting, including a minimum of 50% (fifty percent) of the Board of Directors members. Work Program and Realization 2017 Credit Policy Enhancement: A. Commercial (Conventional & Sharia) Adjustment of the related Bank’s internal policies with external regulations (such as the OJK, Government Regulations) and management of risk appetite (RAC) which includes: 1. Main Policy of Commercial Credit and Main Policy of Sharia Financing (iB) 2. Asset Quality Categorization, particularly on the provision of credit in the disaster areas, credit for procurement and/or land improvements, collectability based on the payment record for micro loans and loan determination after restructuring 3. Availability of Business Trade License (SIUP) and Company Registration Certificate (TDP) 4. Requirements for the submission of audited financial statements 5. Establishment of the limit/capped amount for the bookkeeping of loans from the Champion Challenger Program 6. Anti Money laundering (AML) checking arrangement to Ultimate Beneficiary Owner (UBO) as the final controller and the supplier & buyer of the debtors related to trade finance transaction 7. Management of In House Credit Limit, Sector Appetite and Sector Limit 8. Regulation on the use of agents/introducers by the Bank in seeking commercial customers 9.The Bank’s cooperation with third parties related to the appointment of the Private Auction Center and the Public Accountant 10. Treasury Products, such as credit risk arrangement in Call Spread Transaction, Foreign Exchange Transaction with Cash Collateral (Credit Risk Factor), Delegation of Authority (DoA) for Bond Issuer Limit (as Fast Track) 492 Trade Finance Products, such as Trust 11. Receipt, Export Credit, Special Loan for Trade Transactions, Imports, Guarantees, Forfeiting and Trade Finance Products for Sharia (iB) 12.Value Chain Products, such as arrangements for Early Alert Signals-Parameters & Action Items, Interim Solutions, Internal Merchandise Appraisal for Inventory under Distribution Financing and Factoring Lending Model in the form of other bills 13.Sharia Financing, such as arrangements for Sharia Financing Agreement Standards and Risk Acceptance Criteria for Musyarakah Financing. B.Consumer: During 2017 there were some policy adjustments to Retail Products to the external policies issued by the regulator, government regulation and business strategies that correspond with the level of risk defined by the Bank. CAPITAL MANAGEMENT & RECOVERY PLAN COMMITTEE (CMRP) Main Functions and Authorities The CMRP direct and oversee the risks arising from capital management that focuses on the Bank either individually or consolidation, and to consider execution of recovery action and communication plan under conditions of possible breach or in the event of breach of Recovery Plan (RP) triggers. Structure and Membership The Committee consists of all members of the Board of Directors plus the Bank’s Executive Officers appointed by the Board of Directors. Structure of committee membership consists of: Chairman:President Director Vice Chairman 1: Director of Strategy & Finance Vice Chairman 2: Director of Risk Management Annual Report CIMB NIAGA 2017
  493. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Members : Committee members appointed based on the CMRP meeting as of December 5, 2017 consisting of: a) Voting Members: • President Director • Director of Strategy & Finance • Director of Capital Market & Treasury • Director of Risk Management • Director of Consumer Banking • Director of Business Banking • Director of Sharia Banking • Director of Credit • Director of Legal, Compliance and Corporate Affairs b) Non-voting Members: • Head of Finance/ALM Finance Group Head • Head of Wholesale Banking Credit/ALM Risk Group Head/Integrated Risk & BASEL PMO Head • Head of Funding & Gapping c) Invitee: Executive Officers – Corporate Strategy Initiatives Secretary: Head of Finance Purposes The Purpose of the CMRP is as follows: a. Establish, achieve, and maintain sound and optimal capital targets, and efficient capital structure for the Bank. b. Ensure the diversification of capital sources. c.Allocate capital efficiently among operational entities and business units, in line with the Bank’s long-term business strategy and relevant returns. d. Assess and select the most appropriate recovery action, as well as communication channels based on the events that caused the recovery conditions. Functions Functions related to capital management: a. Review market conditions and solutions/ instruments related to capital management, such as more optimal funding sources, and solutions to meet capital adequacy targets, etc. b.Establish and determine capital management policies, strategies and procedures that are appropriate with the Bank’s size, characteristics, Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report business complexity, and risk level, and ensure the Bank maintains adequate capital levels to anticipate Bank’s risks. c. Ensure the Bank’s strategic plan includes capital management strategies that reflect capital needs, anticipate capital expenditures, capital targets to be achieved, and expected capital resources. d. Ensure capital management strategies, policies and procedures are communicated and implemented. e. Review and approve the Internal Capital Target (ICT) ratio including the Trigger Ratio which is the minimum level of capital that triggers necessary follow-up measures. f. Review and approve targeted dividend payout ratio to ensure and balanced the capital adequacy and capital structure efficiency. Functions related to Recovery Plan (RP): A. Business-as-Usual Conditions (“BAU”): 1. Maintain and update RP framework, policies and processes which comprise analysis of core business lines, critical economic functions, interdependencies, RP stress tests, RP triggers, and recovery options, at least annually. 2.Resubmit the revised RP to the Board of Commissioners, Board of Director, shareholders, and regulators to obtain the relevant approval, if necessary approval is needed. 3.Receive the current level information of established Early Warning Indicators (EWI) and Recovery Indicators on a regular basis from business and support units. EWIs could serve as a sign for potential breach of recovery indicator. 4. Provide declaration and activation of “Recovery Stage” upon assessment of recovery indicators. 5. Determine if any technical reasons are prevalent which impacted RP triggers and provide management overlay on the formal activation of “Recovery Stage”. 493
  494. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management BOARD OF DIRECTORS COMMITTEES 6 . Provide direction, review and approval RP prior to submission to the regulators and parent company. 7. Determine the appropriate RP triggers. 8. Deliberate on the possible actions and strategies at disposal to Bank under “Recovery Stage” and shortlist preferred actions and strategies. 9. Approve budget related to RP activities. 10.Carry out a dry run on an annual basis to ensure governance and communication structures can be executed during the recovery phase. Validate the readiness of infrastructure to 11. support recovery options after “Recovery Stage” declaration. B. During activation of RP: 1.Receive notification from the management committee/business unit and support unit when the recovery indicator is exceeded and perform the “Recovery Stage” activation declaration. 2. When recovery indicator triggers are exceeded, the committee shall provide notification to the Board of Directors, Board of Commissioners, shareholders, and the relevant regulators. 3. Notify other relevant committees (case-by-case basis) such as Crisis Management Committee and Funding Crisis Management Team (FCMT) that recovery indicator triggers have been triggered and support may be required. 4. Deliberate and approve recovery options and strategies with assistance of the Management Committee(s). 5.Provides directions on the execution of RP based on the shortlisted recovery options prespecified in BAU phase. 6. Determine the involvement of business units and support units in support of “Recovery Phase”. 7. Activate RP communication strategies. 8.Activate Non-Credit Discretionary Powers to utilize unplanned recovery costs (unbudgeted). 494 Meeting, Quorum, and Decision Making 1. Meetings are held at least 4 (four) times in one year. 2. The quorum of the meeting is at a minimum of 50% (fifty percent) and 1 (one) of the Committee members. 3. The decision-making quorum is approval by 50% (fifty percent) of Committee members present at the meeting. Work Realization in 2017 a. The Committee determined the level of ICT and Trigger Ratio for 2017 and 2018. i. As a form of comprehensive capital monitoring, actual capital accomplishment against ICT is monitored by RMC on a monthly basis. ii. Minimum regulatory capital according to Bank’s Profile, new regulations affecting minimum capital such as capital buffer, stress test simulation, business growth projection, and significant events or transactions that occurred in 2017 has been included in determining ICT level. b.The Committee has endorsed corporate action plans for 2018 that had impact on the Bank’s capital utilization. c.The Committee has approved and provided direction related to Risk Weight Asset (RWA) Optimization project initiatives for 2017. d. The Committee has approved RWA Optimization & Adjustment Governance in 2017. e. New regulations issued in 2017 that have significant impact on the Bank’s capital was OJK Regulation No 14/POJK.03/2017, regarding the Bank’s Action Plan (Recovery Plan) which included the following impacts: i. Bank must have standard procedures for Recovery Plan. ii. Bank must submit the Recovery Plan to OJK by December 2017. iii. Bank must have debt or investment instruments with capital characteristics no later than December 2018. iv. Bank must disclose Bank’s Recovery Plan. v.Bank should conduct evaluation and stress testing on the Recovery Plan. Annual Report CIMB NIAGA 2017
  495. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report vi .Banks should develop an information management system to support the evaluation and testing of the Recovery Plan. f. The Committee has approved the designation of the CMC as the executive committee responsible for the Bank’s Recovery Plan and the change of the CMC name into Capital Management & Recovery Plan Committee (CMRPC). g. The Committee approved the RAROC ratio for each of CIMB Niaga’s business line. h. The Committee approved the Annual Integrated Planning Framework (AIPF) policy related to the annual Bank’s business plan. Work Program in 2018 a. Determine annual minimum limit of minimum Capital Adequacy Ratio (CAR) known as the Internal Capital Target (ICT) and Trigger Ratio which is the capital limit that triggers the follow-up measures for capital adequacy. b. Identify significant events/transactions to be performed by the Bank and identify their impact to the Bank’s capital. c. Identify new regulations issued by the regulators and their impact to the Bank’s capital. d. Determine the ratio of Risk Adjusted Return on Capital (RAROC) as one of business performance evaluation indicator. e. Determine/approve new policies related to capital. Attendance of Board of Directors in Executive Committee Meetings No Name RMC ORC ITSC ALCO CPC CMRP Attendance 1 Tigor M. SIahaan 11 11 6 36 13 3 2 Wan Razly Abdullah 11 11 4 31 13 4 3 Rita Mas‘Oen 12 9 6 1 12 1 4 Megawati Sutanto 12 9 3 0 12 1 5 Vera Handajani 13 11 6 12 14 3 6 John Simon 12 10 5 42 13 4 7 Lani Darmawan 13 10 5 24 11 3 8 Fransiska Oei 13 10 4 3 14 2 9 Hedy Lapian 12 10 1 27 12 3 10 Pandji Djajanegara 11 11 6 38 13 4 11 Rahardja Alimhamzah 5 04 3 11 4 3 Total Meetings 13 11 6 50 14 4 Total Minimum Meetings based on TOR 10 10 4 12 10 2 *: Invitee member TOR ITSC for ITSC I - IV. Annual Report CIMB NIAGA 2017 495
  496. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Corporate Secretary LEGAL REFERENCES The legal references for the appointment of Fransiska Oei as Corporate Secretary is based on Circular Decision Letter of the Board of Directors of PT Bank CIMB Niaga Tbk . No. 001/SIR/DIR/IX/2016 dated 21 September 2016 to comply with OJK Regulation No. 35/POJK.04/2014 dated 8 December 2014 and Indonesian Stock Exchange Regulation No. I-A dated 20 January 2014. The appointment was reported to the OJK (both OJK Supervising Agency and OJK Capital Market) on 23 September 2016 and was announced to the public through the IDXNet website (e-reporting) at the same day. PROFILE OF CORPORATE SECRETARY TERM OF OFFICE Fransiska Oei has served as Corporate Secretary since 26 September 2016 up to present. Fransiska Oei Corporate Secretary Appointed as Corporate Secretary of PT Bank CIMB Niaga Tbk and domiciled in Jakarta, Indonesia. The complete profile is listed in the BOD Profiles. Organizational Structure of Corporate Secretary Corporate Secretary Fransiska Oei Corporate Affairs ROLES AND RESPONSIBILITIES Roles and responsibilities of the Corporate Secretary of CIMB Niaga are as follows: 1.Keeping abreast of the prevailing rules and regulations in the Capital Market. 2. Providing input to the Board of Directors and Board of Commissioners to comply with Capital Market regulations issued by the Financial Services Authority (OJK), Indonesian Stock Exchange (IDX) and other Regulators pertaining to the Capital Market. 3. Organizing and documenting the General Meeting of Shareholders and Public Expose. 496 Community Development 4. Organizing and attending Board of Commissioners meetings, Board of Commissioners meetings attended by Board of Directors, Committees under Board of Commissioners meetings, as well as preparing and administering the minutes of the meetings. 5.Organizing and attending Board of Directors meetings, Board of Directors meeting attended by Board of Commissioners, Committees under Board of Directors meetings, as well as preparing and administering the minutes of the meetings. 6.Submitting reports related to Capital Market regulations, either regular or ad-hoc reports, to the OJK and IDX, in a timely manner. Annual Report CIMB NIAGA 2017
  497. Supporting Business Review Corporate Governance Report Corporate Social Responsibility 7 . Performing information disclosure to the public in accordance with prevailing rules and regulations. 8.Improving and aligning Corporate Governance implementation practices of the Bank with OJK principles and the ASEAN Corporate Governance Scorecard. 9. Preparing documents and assisting the Fit and Proper Test process for candidates of Board of Commissioners and/or Board of Directors members. Conducting an orientation program for new 10. members of the Board of Directors and/or Board of Commissioners in order to provide knowledge and understanding of the Bank. Others Corporate Data Consolidated Financial Report 11.Administering all original documents of the Bank such as licenses, deeds, certificates, minutes of meetings and internal policies. 12.Administering and distributing all incoming letters addressed to the Bank for follow-up. 13.Acting as liaison officer between the Bank and its shareholders, investors, authorities and other stakeholders. TRAINING OF CORPORATE SECRETARY IN 2017 In order to improve knowledge and understanding to support the implementation of its duties and responsibilities, during 2017, Corporate Secretary attended the following training programs/seminars/workshops: No. Type of Training/Seminar/Workshop/ Knowledge Sharing Organizer Date & Venue Ginting & Reksodipuro 9 Feb 2017 Energy Building - Jakarta Shyamli Rathore 9 – 10 March 2017 Hotel Intercontinental, Bandung 1. Cyber Security Threats 2. BMC Offsite Training 3. Indonesia-Korea Financial Cooperation Forum ‘Challenges and Areas of Cooperation in the Financial Industries of Indonesia & Korea’ Perbanas & Korea Federation of Banks (KFB) 12 April 2017 Hotel Fairmont, Jakarta 4. Future Policy and Development of Payment System in Indonesia Forum Komunikasi Direktur Kepatuhan Perbankan (FKDKP) 24 May 2017 Hotel Pullman, Jakarta 5. Common Report Standard - Seminar PwC Indonesia 15 June 2017 Graha CIMB Niaga, Jakarta 6. Workshop of ASEAN CG Scorecard-Based GCG Implementation OJK 28 Sept 2017 Hotel Dharmawangsa, Jakarta 7. Role of The Boards in Creating and Sustaining Corporate Governance Culture IICD 27 Nov 2017 Hotel Pullman, Jakarta 8. Future APU and PPT Policy and Consumer Protection in Banking Sector Forum Komunikasi Direktur Kepatuhan Perbankan (FKDKP) 7 Dec 2017 Hotel Le Meridien, Jakarta DUTIES IMPLEMENTATION OF CORPORATE SECRETARY IN 2017 In 2017, the Corporate Secretary performed the following duties and responsibilities in accordance with its mandated functions: 1.Kept abreast of developments in Capital Market, particularly the prevailing rules and regulations of the Capital Market, by ensuring compliance with new regulations issued by the OJK, IDX and other Regulators relating to the Capital Market and conveyed such information and providing input to the Board of Directors and Board of Commissioners, including: Annual Report CIMB NIAGA 2017 a.POJK No. 10/POJK.04/2017 on Amendment to POJK No. 32/POJK.04/2014 on the Plan and Organization of the General Meeting of Shareholder of Public Company. b. POJK No. 11/POJK.04/2017 regarding Report of Share Ownership or Any Changes in the Share Ownership of Public Company. c. POJK No. 13/POJK.03/2017 on Use of Service of Public Accountant and Public Accounting Firm in Financial Services Activities, in particular the Role of Audit Committee. 497
  498. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management CORPORATE SECRETARY 2 . Organized and documented the Annual GMS held concurrently with the Extraordinary GMS on 24 April 2017 and the second Extraordinary GMS on 25 August 2017, Public Expose on 12 July 2017 and ensured regular communication with investors through Analyst Meetings held on a quarterly basis, both by physical presence and by conference call. 3.Conducted Board of Commissioners meetings once a month, Board of Commissioners meetings attended by the Board of Directors once every 3 (three) months, Committees under Board of Commissioners meetings, as well as prepared and administered the minutes of the meetings. 4.Conducted and attended Board of Directors meetings once a week and Board of Directors meetings attended by Board of Commissioners once every 3 (three) months, prepared the minutes of the meetings, as well as organized and attended the Executive Committee meetings of Board of Directors. 5.Submitted regular and ad-hoc reports to the regulators based on prevailing rules and regulations. 6. Provided disclosure of information to the public in accordance with prevailing regulations. 7.Administered, distributed and prepared followups on incoming mail addressed to the Board of Directors and Board of Commissioners. In 2017 the Bank received 7301 letters, addressed to the Board of Directors and/or Board of Commissioners, from OJK Supervisory, OJK Capital Market, Bank Indonesia, PPATK, IDX, KSEI, Court, State Police, Directorate General of Taxes, and others. 8. Prepared documentation and assisted in the Fit and Proper Test process for 1 (one) Board of Directors candidate member and for 1 (one) Board of Commissioners candidate member. 9.Provided an orientation program for Board of Commissioners and Board of Directors candidate members. 10.Updated and adjusted Board of Commissioners and Board of Directors Charters in accordance with prevailing rules and regulations and good governance practices. 11.Established a Good Corporate Governance Unit to improve and ensure the implementation of good corporate governance at the Bank. DISCLOSURE OF INFORMATION IN 2017 In 2017, the Corporate Secretary conveyed information to the public through mass media, IDX and CIMB Niaga website in bahasa Indonesia and English, and submitted regular as well as ad-hoc reports to IDX and OJK as follows: Regular Report Type of Report Monthly Report of Securities Holder Register of BNGA Addressee Reporting Period Total IDX Monthly 12 Consolidated Financial Statements of the Bank and its Subsidiaries OJK & IDX Quarterly 4 Annual Report OJK & IDX Annually 1 Annual Rating Report OJK & IDX Annually 2 12 Report of Foreign Currency Debt OJK Monthly Financial Statements of Ultimate Shareholders OJK Semi-annually 2 Annual Report of Ultimate Shareholders OJK Annually 1 Report of Related Parties OJK Semi-annually 2 498 Annual Report CIMB NIAGA 2017
  499. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Ad-hoc Reports Date Jan – Feb 2017 Reporting Topics 53 disclosures on Specific Information of Shareholders 12 January 2017 Report on the Use of Fund from Public Offering 23 January 2017 Disclosure of Information: Confirmation on Fund for the 17th Interest Payment for Shelf-Registered Bonds I Bank CIMB Niaga Phase I, Year 2012 Series B 23 January 2017 Disclosure of Information: Confirmation on Fund for the 1st Interest Payment for Shelf-Registered Bonds II Bank CIMB Niaga Phase I, Year 2016 10 February 2017 Disclosure of Information: Confirmation on Fund for the 13th Interest Payment for Shelf-Registered Bonds I Bank CIMB Niaga Phase II, Year 2013, Series C 20 February 2017 Submission of Annual Financial Report 21 February 2017 Submission of Evidence of Publication of Annual Financial Statements 3 March 2017 Submission of Report of Plan to Organize Annual GMS 10 March 2017 Submission of Evidence of Publication of GMS Notification 10 March 2017 Submission of Evidence of Publication of Share Buyback Information 10 March 2017 Disclosure of Information: Share Buyback Plan of PT Bank CIMB Niaga Tbk ("the Company") 24 March 2017 Submission of agenda of Annual and Extraordinary GMS 27 March 2017 Submission of Publication of Summons for GMS 30 March 2017 Disclosure of Information: Confirmation on Fund for the 27th Interest Payment of Subordinated Bonds I of Bank CIMB Niaga, Year 2010 30 March 2017 Submission of Evidence of Announcement of the Correction of Name of Public Accountant Appointed during Annual GMS of PT Bank CIMB Niaga Tbk. 30 March 2017 Clarification of Stock Exchange Data Query 10 April 2017 Disclosure of Information: Confirmation on Fund for the 18th Interest Payment of Shelf-Registered Bonds of Bank CIMB Niaga Phase I, Year 2012, Series B 26 April 2017 Disclosure of Information: Confirmation on Fund for the 2nd Interest Payment of Shelf-Registered Bonds II Bank CIMB Niaga Phase I, Year 2016 26 April 2017 Submission of Evidence of Publication of Annual GMS Resolutions 27 April 2017 Submission of Resolutions of Annual and Extraordinary GMS 27 April 2017 Submission of Evidence of Publication of Interim Financial Statements 27 April 2017 Submission of Interim Financial Statements 9 May 2017 Disclosure of Information: Confirmation on Fund for the 14th Interest Payment of Shelf-Registered Bonds of I Bank CIMB Niaga Phase II, Year 2013, Series C 17 May 2017 Annual Public Expose Plan 19 May 2017 Annual Rating Report (FITCH) 29 May 2017 Announcement of Postponement of Annual Public Expose Plan 16 June 2017 Disclosure of Information: Confirmation on Fund for the 26th Subordinated Bonds II Bank CIMB Niaga, Year 2010, with Fixed Interest Rate 16 June 2017 Disclosure of Information: Confirmation on Fund for the Principal Payment and the 28th Interest Payment of Subordinated Bonds I Bank CIMB Niaga, Year 2010 20 June 2017 Annual Public Expose Plan 4 July 2017 Submission of Report on Extraordinary GMS Plan 7 July 2017 Submission of Annual Public Expose Materials 11 July 2017 Submission of Evidence of Publication of Extraordinary GMS Announcement 11 July 2017 Disclosure of Information: Announcement of Paid-off of Subordinated Bonds I Bank CIMB Niaga, Year 2010 Annual Report CIMB NIAGA 2017 499
  500. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management CORPORATE SECRETARY Date Reporting Topics 13 July 2017 Disclosure of Information : Confirmation on Fund for the 19th Interest Payment of Shelf-Registered Bonds of I Bank CIMB Niaga Phase I Year 2012 Series B 13 July 2017 Disclosure of Information: Confirmation on Fund for the 3rd Interest Payment of Shelf-Registered Bonds of II Bank CIMB Niaga Phase I, Year 2016 14 July 2017 Report of Result of Annual Public Expose 18 July 2017 Disclosure of Information: Report of Revision on the Implementation of Share Buyback Plan of PT Bank CIMB Niaga Tbk 18 July 2017 Submission of Evidence of Publication of Share Buyback Announcement 25 July 2017 Disclosure of Information: Resignation of Commissioner of PT Bank CIMB Niaga Tbk ("CIMB Niaga") 26 July 2017 Summons for Extraordinary GMS 26 July 2017 Submission of Evidence of Publication of Summons for Extraordinary GMS 31 July 2017 Submission of Interim Financial Statements 31 July 2017 Submission of Evidence of Publication of Interim Financial Statements 2 August 2017 Annual Rating Report (PEFINDO) 3 August 2017 Additional Information of Issuance of Shelf-Registered Bonds II Bank CIMB Niaga Phase II, Year 2017 7 August 2017 Disclosure of Information: Confirmation on Fund for the 15th Interest Payment of Shelf-Registered Bonds I Bank CIMB Niaga Phase II, Year 2013, Series C 28 August 2017 Disclosure of Information: Sales of Additional Securities for Public or Limited Sales of Shares with Material Amounts 25 August 2017 Submission of Evidence of Publication of Extraordinary GMS Resolution 28 August 2017 Resolution of Extraordinary GMS 19 September 2017 Disclosure of Information: Confirmation of Fund for the 27th Payment of Subordinated Bonds II Bank CIMB Niaga, Year 2010 with Fixed Interest Rate 29 September 2017 Disclosure of Information: Replacement of Share Registrar of PT Bank CIMB Niaga Tbk 16 October 2017 Disclosure of Information: Confirmation of Fund for the Principal Payment Series B and the 20th Interest Payment of Shelf-Registered Bonds I Bank CIMB Niaga Phase I, Year 2012 17 October 2017 Disclosure of Information: Additional Information Summary of Shelf-Registered Bonds II Bank CIMB Niaga Phase III, Year 2017 31 October 2017 Submission of Evidence of Publication of Interim Financial Statements 31 October 2017 Submission of Interim Financial Statements 3 November 2017 Disclosure of Information: Issuance of Shelf Registered Bonds II Bank CIMB Niaga Phase III, Year 2017 15 November 2017 Disclosure of Information: Confirmation of Fund for the Paid off of Shelf-Registered Bonds II Bank CIMB Niaga Phase I, Year 2016, Series A 20 November 2017 Disclosure of Information: Confirmation of Fund for the 1st Interest Payment of Shelf-Registered Bonds II Bank CIMB Niaga Phase II, Year 2017 4 December 2017 500 Disclosure of Information: Confirmation of Fund for the 28th Interest Payment of Shelf-Registered Bonds II Bank CIMB Niaga, Year 2010 with Fixed Interest Rate Annual Report CIMB NIAGA 2017
  501. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Compliance Management Profile of Head of Compliance Management Indonesian citizen , 49 years old. He has been serving as Head of Compliance Management of CIMB Niaga since October 2013. Previously he served as Division Head of Risk Management Group of Bank Niaga and worked at the Indonesian Bank Restructuring Agency and PT Pefindo. He holds a Bachelor degree from the Bandung Institute of Technology in 1992 and a Master of Management from Prasetya Mulya Business School, Jakarta in 1996. Liston Siahaan Head of Compliance Management Compliance Management Organizational Structure Compliance Director Head of Compliance Management Credit Compliance Advisory Non-Credit Compliance Advisory DUTIES AND RESPONSIBILITES OF COMPLIANCE MANAGEMENT a.Establishes compliance policies and conducts reviews and updates on a regular basis. b.Constructs compliance measures and programs in order to support the creation of a Compliance Culture in all Bank operations at every level of the organization. c.Identifies, measures, monitors, and controls Compliance Risk in accordance with risk Annual Report CIMB NIAGA 2017 Compliance Quality Assurance management for Commercial Banks and Sharia Business Units (SBU). d. Assesses and evaluates the effectiveness, adequacy, and suitability of CIMB Niaga’s policies, rules, systems, and procedures toward the requirements of regulators. In addition, also performs validation of compliance in working units. e.Reviews and provides recommendations for updating and refining the current policies, regulations, systems, and procedures to be in 501
  502. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management COMPLIANCE MANAGEMENT compliance with the provisions of the authorities , including the sharia principles for SBU. f. Performs the function of liaison officer of CIMB Niaga with regulators, particularly related to the compliance and regulatory audits. g. Reports on the compliance function and compliance status of CIMB Niaga to the Board of Directors through the Compliance Director. h. Advises on inquiries from working units relating to the regulation from authorities. i. Conducts training/socializations on regulations and other compliance programs. j. Performs other duties related to the Compliance Function. COMPLIANCE PRINCIPLES ACCORDANCE WITH OJK The Bank at all times takes compliance measures as part of compliance risk management of its business and operational activities in accordance with POJK No.46/POJK.03/2017 on the Compliance Function in Commercial Banks. Compliance risk management is important for the Bank as custodian of public funds and in the highly regulated banking industry, while also to be relevant with the development of public’s need and financial technology innovation. The Compliance Function serves as one of the factors Good Corporate Governance and the Bank is committed to comply with the rules and regulations, through compliance risk management that based on compliance principles, as follows: 1. Compliance starts from the top; 2. Compliance is everyone’s responsibility; 3. Compliance with laws and regulations; 4. Compliance is implemented with competence and integrity according to responsibilities; 5. Compliance is stakeholders oriented; 6. Compliance is dedicated to the Bank’s continuity; and 7. Compliance is problem solving oriented. 502 COMPLIANCE FUNCTION The Bank established an independent Compliance Unit (SKK) directly reporting to the Director in charge of the Compliance Function. SKK is responsible for the Compliance Function in order to support the establishment of a Compliance Culture. SKK is also responsible for ensuring that the policies, provisions, systems and procedures, and business activities undertaken by the Bank are in compliance with regulation. COMPLIANCE MANAGEMENT PLANS AND FRAMEWORK IN 2017 The 2017 Compliance Plan based on the Compliance Framework are as follows: Programs and Activities in Compliance a. Internalization i. Updating the banking regulation database and other related regulations. ii. Socialization and training related to banking regulations. Programs and Activities in Compliance b. Implementation i. Advisory, which includes providing recommendations/opinions and clarifications from SKK based on request for advice from other working units related to the fulfillment of compliance. ii. Compliance Testing, which includes compliance tests for plans of new product/activity and new policies/procedures and its amendments. c. Programs and Activities in Compliance Monitoring and Reporting i. Refinement of the framework and improvement of Risk Control Unit (RCU) competencies through discussion and training. ii.The RCU reports the Risk Control Self Assessment (RCSA) results to SKK. iii.SKK reviews the RCSA report, including to conduct validation on RCSA. iv.Monitoring CIMB Niaga’s commitment to regulators. v.Periodic compliance reports to Board of Directors, Board of Commissioners and regulators. Annual Report CIMB NIAGA 2017
  503. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report COMPLIANCE ACTIVITIES IN 2017 In order to support the building of a Compliance Culture , SKK undertook Compliance Program activities in 2017 as follows: (Risk Control Unit/Designated Compliance & Operational Risk Officer) as well as results from other independent units (such as Internal Audit, Risk Management) and examination results from authorities. The Bank has established RCUs as part of the 1st line of defense in each Directorate whose function is to self-assess the compliance risk and monitor fulfillment of compliance in such unit. a. Socialization of Regulations SKK socializes regulations, administrates and updates the banking regulatory database on the Bank’s internal web-based system, which is an e-manual. Socialization is conducted through face-to-face training and electronic-based communication tools. d. Validation of Compliance Implementation SKK also conducts evaluation/validation on compliance implementation in working units. Evaluation/validation is conducted to verify the working units are perform assessments on RCSA and whether is there are any compliance issues in the working unit. b. Compliance Test SKK conducts compliance tests on internal policies as well as new products and/or activities to comply with external regulations. SKK also provides opinions to working units based on prudential principles and in compliance with regulations from authorities. e. Monitoring by Regulators The Compliance Unit at the Bank is regularly audited by regulators (OJK and BNM) as well as by Internal Audit. In 2017 there were no regulatory audit findings related to the Compliance unit, while Internal Audit recommendations have been followed up by the Compliance Unit. c. Monitoring of Compliance Implementation SKK monitors compliance implementation in working units through self-assessment of RCSA/ CM (Risk Control Self-Assessment/Compliance Matrix) that conducted by each RCU/DCORO f. Compliance Report SKK submits compliance reports and compliance activities of the Bank to internal parties and regulators in accordance with the regulations. vi. Submit Integrated Compliance report of compliance implementation in CIMB Indonesia Financial Conglomerate. Compliance Activities 2017 Regulations Socialized by SKK 110 new regulations were disseminated Training by SKK 1,405 training participants Compliance Tests by SKK 297 policies and products were tested Annual Report CIMB NIAGA 2017 503
  504. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management COMPLIANCE MANAGEMENT FULFILLMENT OF COMPLIANCE REQUIREMENTS TO RELEVANT AUTHORITIES SKK monitors and maintains CIMB Niaga ’s compliance with the commitments made to regulators. Throughout 2017, CIMB Niaga fulfilled its commitments to regulators. To help monitor the fulfilment of commitments in the Bank, SKK has established a system/application called Regulatory Monitoring Commitment (RECOM). COMPLIANCE INDICATORS IN 2017 1. Capital Adequacy Ratio/CAR (credit risk, market and operational risk) was 18.23%, meeting the regulatory minimum requirements. 504 2. There was no breach or violations on Maximum Legal Lending Limit regulation. 3. Net Non Performing Loan (NPL) was 2.17% meeting the maximum 5% limit. 4. Minimum Statutory Reserve (GWM) of Rupiah for Daily and Average was 5.36% and 6.74% meeting the minimum requirements of 5% and 6.5%, respectively. 5.Minimum Statutory Reserve (GWM) of Foreign Currency was 8.76%, meeting the minimum limit requirement of 8%. 6. Liquidity Coverage Ratio was 129.29% meeting the minimum limit requirement of 100%. 7. Net Open Position (on and off balance sheet) was 0.80% meeting the maximum limit of 20%. 8.The regulatory audit commitments are met accordingly and in timely manner. Annual Report CIMB NIAGA 2017
  505. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Internal Audit Unit (IAU) Internal audit function at CIMB Niaga is performed by the Internal Audit Unit (IAU). The main duties of Internal Audit are to ensure that the Bank’s management and operations are in compliance with prevailing rules and regulations and support the Bank’s interests and objectives. Internal Audit is also responsible for ensuring the adequacy and proper implementation of internal control process. INTERNAL AUDIT CHARTER The IAU of CIMB Niaga follows the Internal Audit Charter as a guidance that sets forth the vision and mission, function and scope of work, responsibility,authority, accountability, independence, and code of conduct of IAU. The Internal Audit Charter is regularly reviewed and updated as required by the organization. The latest reviews and updates were done on 29 May 2017 and have been approved by the President Director and the Board of Commissioners. The Internal Audit Charter is developed to comply with OJK Regulation No. 56/POJK.04/2015 on the Establishment and Guidelines for the Establishment of Internal Audit Charter, OJK Regulation No. 18/ POJK.03/2014 dated 18 November 2014 concerning Integrated Governance for Financial Conglomerations and Bank Indonesia Regulation No.1/6/PBI/1999 dated 20 September 1999 on the Assignment of Compliance Director and Implementation of Internal Audit Standards for Commercial Banks. 3. Key financial, managerial and operational information is accurate, reliable and timely. 4. Employee actions are in accordance with prevailing policies, rules and regulations. 5. Resources are economically acquired and efficiently used and adequately protected. 6. Programs, plans and goals are well achieved. 7.The quality and continuous improvement have been embedded in CIMB Niaga control process. 8. Regulations which have significant impact on CIMB Niaga are properly acknowledged and addressed. 9. Opportunities to improve CIMB Niaga’s management, profitability and reputation are identified and disclosed during the audit. APPOINTMENT OF CHIEF AUDIT EXECUTIVE The Chief Audit Executive was appointed by the President Director with the approval of the Board of Commissioners effective as of 3 January 2017 based on Decision Letter No.024/HROB/HRS/XII/2016. The appointment of the Chief Audit Executive was reported to Bank Indonesia and the Financial Services Authority, respectively, in Letter No.008/DIR/XII/2016 dated 19 December 2016. As an independent control unit, IAU reports directly to the President Director and in a matrix to the Board of Commissioners through the Audit Committee. The President Director also has the authority to terminate the Chief Audit Executive if the individual is deemed unable to perform the duties in accordance with his/her responsibilities. The Internal Audit Charter governs the conduct and guidance of audits to ensure: 1. Risks have been properly identified and managed. 2. Interactions with various governance groups have been well managed. Annual Report CIMB NIAGA 2017 505
  506. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management INTERNAL AUDIT UNIT (IAU) HEAD OF INTERNAL AUDIT PROFILE (CHIEF AUDIT EXECUTIVE) Antonius Pramana Gunadi Chief Audit Executive Indonesian citizen, 43 years old. He joined CIMB Niaga in December 2016 and has been serving as Chief Audit Executive since 3 January 2017. He started his career as an Auditor at public accounting firm of Coopers & Lybrand, KPMG and Ernst & Young before entering the banking industry and becoming Head of Internal Audit at ABN Amro Bank Indonesia, Barclays Indonesia, Bank Internasional Indonesia. Prior to joining CIMB Niaga, he served as Audit Director at Citibank and was responsible for audit activities in Indonesia and a number of countries in Asia and EMEA. He holds a Bachelor degree in Accounting from Tarumanagara University and several international certifications such as the Certified Internal Auditor (CIA) and Certified Anti Money Laundering Specialist (CAMS). Training and workshops attended in 2017 were BMC Offsite Training, Digital Leadership Series, Meet & Great with Top Senior Leaders of CIMB Niaga, Public Speaking, Sharing Programs - Cyber Security and Risk Management Certification Refreshment. 506 IAU HUMAN RESOURCE AND PROFESSIONAL CERTIFICATION As of December 2017, the number of internal auditors in IAU was 118 auditors, including Chief Audit Executive. During 2017, IAU organized 85 training programs with a total of 10,138 training hours attended by 1,950 participants. IAU also sends auditors to perform joint audit with the Internal Audit Group at CIMB Group for the purpose of benchmarking and sharing knowledge of best audit practices implemented in each country. IAU also continuously improves the expertise and competency of auditors by engaging auditors in various training programs, seminars, and workshops both local and overseas. One of the efforts to improve auditor competency in terms of audit skills, risk management, and information security, is facilitating access for internal auditors to be able to participate in the international- online training. In addition, Internal Audit is also required to obtain Internal Audit professional certification such as Qualified Internal Auditor (QIA). Other professional certification programs that have been attended include Certified Internal Auditors (CIAs), Certified Risk Management Assurance (CRMA), Certified Information Systems Auditors (CISA) and Certified Ethical Hackers (CEH), with the following certifications: Total Auditor Certification International Certifitcation Certified Internal Auditor (CIA) 3 Certified Information System Auditor (CISA) 10 Certified Risk Management Professional (CRMP) 1 Certified Information System Security Professional (CISSP) 1 Certified in Risk Management Assurance (CRMA) 2 Certified in Risk and Information System Controls (CRISC) 3 Certified Forensic Auditor (CFrA) 1 Certified Ethical Hacker (CEH) 9 Certified Objective for Information and Related Technology  (COBIT5) 3  Certified Information System Manager  (CISM) 1  Certified Anti Money Laundering Specialist (CAMS) 2  Financial Risk Manager (FRM) 1  Quality Assurance Review (QAR) 2 Annual Report CIMB NIAGA 2017
  507. Supporting Business Review Corporate Governance Report Certification Corporate Social Responsibility Total Auditor 52 Risk Management Certifications Level I 51 Risk Management Certifications Level II 53 Risk Management Certifications Level III 6 Risk Management Certifications Level IV 2 Consolidated Financial Report IAU STRUCTURE AND COMPOSITION In accordance with Bank Indonesia Regulation No .1/6/ PBI/1999 dated 20 September 1999 on the Assignment of Compliance Director and Implementation of Internal Audit Standards for Commercial Bank and OJK Regulation No. 56/POJK.04/2015, the IAU in Bank’s organization structure is under the President Director. National Certification Qualified Internal Auditor (QIA) Others Corporate Data Audit Committee President Director Chief Audit Executive Wholesale & Risk Audit Credit Audit Operations & Syariah Audit IAU ROLES AND RESPONSIBILITIES The IAU has a role in providing independent and objective assurance consulting services that can add value and improve the Bank’s operations. IAU assists the Bank in achieving its objectives by evaluating and improving the effectiveness of risk management, internal control and governance processes. In accordance with the Internal Audit Charter, the duties and responsibilities of IAU of CIMB Niaga are as follows: 1. Develop an annual audit plan based on a riskbased methodology, and submit annual audit plans to the Board of Directors and to the Board of Commissioners through the Audit Committee for approval. 2.Implement an approved annual audit plan, including any specific tasks or projects requested by the Board of Directors or by the Board of Commissioners through the Audit Committee. 3. Ensure the availability of sufficient number of audit staff with sufficient knowledge, expertise, and experience and certified professionals to conduct the audit. Annual Report CIMB NIAGA 2017 IT Audit Head Office Audit Professional Practices 4. Conduct audit activities and assess the efficiency and effectiveness in finance, accounting, operations, human resources, marketing, information technology and other activities. 5. Prepare audit report and submit the report to the audited party with a copy to the President Director, Compliance Director and other relevant units and to the Board of Commissioners through the Audit Committee. 6.Periodically report to the Board of Directors and Board of Commissioners through the Audit Committee on the objectives, authorities, and responsibilities, and the performance of IAU activities in comparison with their planning. Reporting also includes significant risk exposure and control issues. 7. Prepare semester reports on the implementation of the key points of audit results to the Financial Services Authority, no later than 2 months after the end of the period. 8.Report specifically to the Financial Services Authority on the findings of Internal Audit that could significantly disrupt the business sustainability of CIMB Niaga. 507
  508. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management INTERNAL AUDIT UNIT (IAU) 9.Report to the Financial Services Authority on external audit results disclosing an opinion on the performance of Internal Audit Unit and compliance with SPFAIB and any room for improvements. 10.Follow up on audit findings and recommendations. All significant audit findings will remain “unfinished” until those findings are resolved. 11.Inform the status of corrective actions on audit findings and recommendations of audit results to the Board of Directors and to the Board of Commissioners through the Audit Committee. 12.Inform the Anti-Fraud Management unit of any fraud indication identified by the Internal Audit. 13.Create and maintain appropriate working papers in accordance with prevailing regulations. 14.Implement quality assurance and improvement programs (QAIP) covering all aspects of Internal Audit activities. The QAIP includes an Internal Audit compliance evaluation on the definition of Internal Audit and Standards, as well as an evaluation of whether the auditor adopts the code of conduct. QAIP also assesses the efficiency and effectiveness of Internal Audit activities and identifies opportunities for improvement. 15. Deliver quality assurance and improvement programs on Internal Audit activities. 16.As for Integrated Governance and the role of CIMB Niaga as the Legal Primary Entity with an already established Internal Audit Unit, the Integrated IAU duties are carried out by the existing Internal Audit with the following responsibilities to: a. Perform audits of financial service institutions on an individual entity basis, on a collective basis, or based on reports from IAU of a financial services institution. b. Monitor and evaluate the conduct of internal audit units in each member of CIMB Indonesia Financial Conglomerate, coordinate with internal audit units of the members of CIMB Indonesia Financial Conglomerate based on functions, and compile integrated IAU audit results from each member of the CIMB Indonesia Financial Conglomerate, c.Prepare and submit a performance report covering the roles and responsibilities of Integrated IAU to the Director assigned to oversee the financial services institutions in the 508 Financial Conglomerate, Compliance Director of the Legal Primary Entity, and the BOC of the Legal Primary Entity. PARTICIPATION IN THE INTERNAL AUDIT PROFESSIONAL ASSOCIATION In order to expand knowledge and develop professional competency of the Internal Auditors, IAU has organized auditor participation in the Internal Audit professional association, among others, the Association of Bank Internal Auditors (IAIB), Institute of Internal Auditors (IIA) – Indonesian chapter, Information Systems Audit and Control Association (ISACA), Indonesian Institute of Accountants (IAI), Bank Internal Auditors Association (IAIB). AUDIT ACTIVITY REPORT IN 2017 During 2017, IAU completed the audit assignments in accordance with its audit plan. In details, the IAU activities report in implementing the work plan based on strategic priorities is as follows: 1. Implementing Thematic Audits for a number of audit activities. 2. Re-assess the implementation of AML (Anti Money Laundering) and CFT (Counterfeit Transaction) practices in every line of business and support. 3.Establishing a “center of excellence” for AML and CFT-related expertise by sending out auditors to Certified Anti Money Laundering Specialist program so as to make them as IAU subject matter resources and specialists related to AML and CFT issues. 4. Continuing the role of IAU as a partner in postimplementation of the 1 Platform project. 5. Optimizing the role of data analytics to support the whole audit process and continuous auditing. 6. Implementing business monitoring by establishing continuous and sustainable communication with management, so that IAU always keeps abreast of developments and changes in business, process and issues encountered by management and aligns the audit focus with such changes and developments. Annual Report CIMB NIAGA 2017
  509. Supporting Business Review Corporate Governance Report Corporate Social Responsibility 7 . Continuing the role of IAU in providing consultative review to Business & Support. 8.Conducting validation of high-risk findings to ensure adequate and sustainable follow-ups of management corrective actions to ensure the prevention of recurring findings in the future. 9.Implementing diagnostic assessment skills, to assess the competencies of current auditors, based on the competence standards that auditors should keep up with and to develop auditor’s development plans Continuing to improve cooperation with every 10. business line and support in improving Bank performance through good governance, risk management and internal control through the role of IAU as Business Partner. 11.Conducting a thorough review of the whole IAU audit universe to ensure that the whole audit universe is subject to risk assessments and the audit plan. 12. Implementing Quality Assurance review by an independent external party. 13.Continuing to review the policies and procedures applicable in IAU to keep it updated and in accordance with applicable professional standards WORK PLAN IN 2018 For 2018, IAU has developed a work plan with the following strategic priorities to: 1. Implement Thematic Audits for a number of audit activities and make changes to the audit approach for S & D and SME branches Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report 2. Review the implementation of AML (Anti Money Laundering) and CFT (Counterfeit Transaction) practices in every business line and business support. 3.Conduct pre and post implementation review on E-Banking Projects for both new projects and upgraded projects 4. Optimize the role of data analytics to support the whole audit process and continuous auditing. 5. Continue to implement business monitoring so that IAU always keeps abreast of developments and changes in business, process, and issues encountered by management and aligns the audit focus with such changes and developments. 6. Continue the role of IAU in providing consultative reviews to business units and business supports. 7. Implement maturity diagnostic and development plan and improvement that will be conducted so as to allow IAU to achieve the expected level of maturity. 8. Conduct Quality Assurance review internally. 9.Continue to improve cooperation with every business unit line and business support to improve the Bank’s performance through good governance, risk management and internal control through the role of IAU as Business Partner. 10.Continue to review the policies and procedures applicable in Internal Audit to keep it updated and in accordance with applicable professional standards. In order to realise such work plan, IAU will continue to improve auditor competence, methodology development, and optimization and usage of audit tools 509
  510. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Anti-Money Laundering and Countering the Financing of Terrorism Program (AML and CFT) PROFIL OF ANTI-MONEY LAUNDERING AND COUNTERING THE FINANCING OF TERRORISM PROGRAM (AML AND CF) Entin Rostini Head of Anti Money Laundering (AML). Indonesian citizen, 53 years old. She has been serving as the Head of Anti Money Laundering (AML) since December 2016. She started her career and held various positions at Bank Internasional Indonesia, Compliance Head at Bank Chinatrust Indonesia and AML Head at Bank Danamon Indonesia. She holds a Bachelor degree in Economics majoring in Accounting from Padjadjaran University Bandung and Master of Finance from Gajah Mada University Yogyakarta in 2005. Entin Rostini Head of Anti Money Laundering (AML) Organizational Structure of Anti-Money Laundering and Countering the Financing of Terrorism (AML and CFT) Compliance Director Head of Anti Money Laundering (AML) Consultant AML Analyst AML Business Alignment & Awareness IMPLEMENTATION OF AML AND CFT PROGRAM 2017 CIMB Niaga engages in its business committed to preventing its products and services from being used as a tool for money laundering and financing of terrorism by implementing AML and CFT programs in accordance with prevailing rules and regulations and referring to international best practices. 510 AML System & Reporting AML Testing & Quality Assurance Pursuant to Law of Criminal Acts of Money Laundering No. 8 of 2010, the Law of the Prevention and Eradication of Criminal Acts of Terrorism Financing No. 9 of 2013, OJK Regulation No. 12/POJK.01/2017 dated 21 March 2017 and OJK Circular Letter No. 32/SEOJK.03/2017 dated 22 June 2017 and other related regulations, the Bank has maintained and implemented AML Annual Report CIMB NIAGA 2017
  511. Supporting Business Review Corporate Governance Report Corporate Social Responsibility and CFT programs , which were established and actively monitored by the Boards of Directors and Commissioners: 1. Agreement on regulations and procedure of AML/ CFT based on risk according to Bank’s business complexity, which covers related regulations: a.Customer Due Diligence (CDD) in order to Customer Identification and updating CDD data, including classification method to decide customer’s risk to money laundering and terrorism financing, Beneficial Owner identification and Customer data filtering against the AML Watchlist (AML Screening) database. b.Continuous monitoring and analysing to identify the conformity between customer’s transactions with customer’s CDD profiles, including business relationship closure and transaction refusal in oder to AML and CFT implementation. c. Money laundering and terrorism funding risk identification and scoring related to Bank’s product and services. d.Identification and Reporting of Suspicious Transactions (LTKM), Cash Transactions (LTKT), Cross-border Transactions (LTKL) and Integrated Service User System (SIPESAT) to PPATK (Indonesian Financial Transactions Reports and Analysis Center). e.New employee screening procedures and monitoring of employee transactions as part of implementing Know Your Employee (KYE) principles. f. Administration of CDD documents and other documents relating to AML and CFT. 2. Establishment of AML Unit responsible for the implementation of AML-CFT programs In performing its functions, AML Sub Directorate at Head Office, reports and responsible directly to the Compliance Director. The AML Sub Directorate consists of staffs that have adequate banking knowledge and experience regarding risk assessment and mitigation related to AML and CFT program implementation. The number of staffs at the Sub Directorate of AML has increased by 10 (ten) personnel from 2016 to 20 (twenty) personnel Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report as of 31 December 2017. In addition, given its large scale of business, the Bank established a AML Local team in each branch and particular business unit, currently totalling 3,200 employees. 3. Management Information System for AML and CFT Implementation In order to monitoring the profiles and transactions of customers, CIMB Niaga has already implemented an application system that could identify, analyse, monitor and provide reports on the characteristics of transactions made by customers, including identification of suspicious financial transactions. The application is capable of performing a thorough monitoring of all customer transactions in the Bank, including credit card, wealth management and custody. The application is equipped with parameters and thresholds, which are continuously evaluated in accordance with the evolving methods of money laundering and terrorism financing. The application also offers a feature for the screening process against watchlist and reporting of LTKM, LTKT and LTKL. The Bank also continuously makes enhancements to the application being used to add on various functions to improve system effectiveness and efficiency. 4. AML and CFT training for employees AML and CFT training is mandatory for all employees to attend on a regular basis. Training methods are conducted face-to-face, with materials being customized based on the category of participants, and also through e-learning. For AML Sub Directorate staff, they are given the opportunity to participate in training and certification of AML and CFT to improve their skills in analysing and mitigating the risk of money laundering and financing of terrorism. The number of employees of AML and CFT training participants in 2017 is totalling 15,354 employees. 5. Internal control to evaluate the adequacy and effectiveness of AML and CFT program To ensure that the implementation of AML and CFT program has been made in accordance with the established policies, the Bank implements selfassessment procedures at business units and other units to be validated by the AML Sub-Directorate, 511
  512. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management ANTI-MONEY LAUNDERING AND COUNTERING THE FINANCING OF TERRORISM PROGRAM (AML AND CFT) prior to being reported to the Compliance Director. In addition, IAU and external auditors (OJK, BI, PPATK and BNM) routinely perform audits of the implementation of the Bank’s AML and CFT programs. 6. Reporting and fulfillment of data requirement by regulators/law enforcement agencies a. The AML sub-directorate at the Head Office is responsible for reporting to PPATK regarding the implementation of AML and CFT. During 2017, the AML Sub-directorate engaged in the following reporting activities: i. Cash Financial Transaction Report (LTKT) ii. Report of Suspicious Transactions (LTKM) iii. Cross-border Transactions (LTKL) iv. Integrated Service User System (SIPESAT) Number of Reports 1,206,176 497,724 113,124 LTKT 1,145 LTKM LTKL SIPESAT and Proliferation Funding List of Weapons of Mass Destruction), PEP list and adverse news. In addition to having an internal watchlist, since 2017 the Bank has subscribed to the database watchlist from Thomson Reuters-Worldcheck. The Bank also performs re-screening of all existing customers for every renewal/addition to the watchlist. 8. Compliance test and AML and CFT advice During 2017 the Sub Directorate of AML conducts compliance tests on 43 new products and 53 draft policies and procedures from relevant business units, to ensure compliance with prevailing rules and regulations relating to AML and CFT. In addition, AML Sub Directorate provided 635 pieces of advice to business units and other units related to various questions and issues related to AML and CFT implementation. 9. AML and CFT Risk Assessment In 2017, the Bank developed a risk-based approach to assess customer risk rating and bank-wide AML risk rating for AML and CFT: a. Customer AML Risk Rating (CRR), which assesses the risks of AML and CFT attached to each customer by using indicators which among others include the identity/profile of the Customer, geographical/country factors as well as the business activities of the customer. b. AML Sub Directorate responded to data requests from PPATK and KPK in 2017 as follows: Institution Total Data Requests PPATK 153 KPK 120 7. Screening against watchlist The Bank performs screening for every opening of accounts and new business relationships against the watchlist issued by the authorities and against the watchlist commonly used in international best practice (e.g. OFAC List, UN List, DTTOT 512 Annual Report CIMB NIAGA 2017
  513. Supporting Business Review Corporate Governance Report Corporate Social Responsibility b . Bank AML Risk Rating (BARR), which is the risk assessment of AML as a bank wide level. In the first place identify the inherent indicators (e.g. high risk customers, high-risk products and services volume, cash transaction volume, cross border transaction volume, number of customers, third party fund volume) as well as the level of risk control and control of AML and CFT at the respective branch/business unit based on self-assessment results regularly validated by the Sub Directorate of AML. The risk rating results at the branch/business unit level will be consolidated to generate bankwide AML risk rating with due observance to several adjustment factors such as the followup on audit findings as well as administrative sanctions or penalty from regulators. Annual Report CIMB NIAGA 2017 Others Corporate Data Consolidated Financial Report c. Based on our self-assessment, Bank’s Compliance Risk Profile by end of semester 2/2017 is “Low Moderate”. The self-assessment is according OJK’s minimum requirement on Risk-based Bank Rating and internal methodology of Risk Control Self-Assessment/ RCSA using Bank AML Risk Rating (BARR) for the implementation of Anti-Money Laundering and Countering the Financing of Terrorist program (AML and CFT). 513
  514. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Public Accountant /External Auditor The appointment of a public accountant and the determination of fees must be based on the recomendation the Audit Committee with the approval of the GMS in accordance with the provisions of the OJK. Detailed information can be viewed in the GMS section of this Annual Report. and progress during the audits by the Public Accountant Firm. The Audit Committee also assists in ensuring that there are no potential obstacles during the audit process, evaluating audit quality, and assuring the audit implementation has been in accordance with the prevailing rules and standards. NAME OF PUBLIC ACCOUNTANT Angelique Dewi Daryanto, S.E., CPA NUMBER OF PERIODS OF THE BANK’S FINANCIAL STATEMENTS MAY BE AUDITED BY PUBLIC ACCOUNTANT AND PUBLIC ACCOUNTING FIRM In accordance with SEBI No. 3/32/DPNP on the Relationships between Banks, Public Accountants, and Bank Indonesia, the appointment of the same Public Accounting Firm may only be for an audit period of 5 (five) consecutive financial years, unless it meets certain conditions with the consent of the authorized authorities. In 2017, KAP Tanudiredja, Wibisana, Rintis & Associates (a member firm of PricewaterhouseCoopers Global Network) conducted the Bank audit for the third time. The appointment of KAP Tanudiredja, Wibisana, Rintis & Associates was approved by the Financial Services Authority (OJK) through Letter No. S-124/ PB.332/2016 dated 9 August 2016. NAME OF PUBLIC ACCOUNTING FIRM KAP Tanudiredja, Wibisana, Rintis & Associates. EFFECTIVENESS AND FREQUENCY OF COMMUNICATION BETWEEN THE EXTERNAL PUBLIC ACCOUNTANT AND THE BOARD OF DIRECTORS During the audit conducted by the Public Accountant, communication and cooperation between the Public Accountant and the Board of Directors are conducted regularly and thoroughly. MONITORING OF EXTERNAL AUDITOR In 2017, the Public Accounting Firm auditing the Bank’s consolidated financial statements was KAP Tanudiredja, Wibisana, Rintis & Associates (a member firm of PricewaterhouseCoopers Global Network). The appointment of KAP Tanudiredja, Wibisana, Rintis & Associates was conducted in accordance with the prevailing provisions. The appointment has been analyzed and supervised by the Audit Committee, including the matter of audit fee determination, that is based on fairness. The Audit Committee monitors the implementation of the external audit processes through regular meetings with the Public Accountant Firm to discuss all findings OTHER SERVICES PROVIDED BY THE ACCOUNTANT & PUBLIC ACCOUNTING FIRM FOR CIMB NIAGA OTHER THAN AUDIT SERVICES During 2017, no fees were paid to the Public Accounting Firm Tanudiredja, Wibisana, Rintis & Associates for non-audit services. 2017 AUDIT FEES Total audit fees in 2017 amounted to Rp8,299,494,000, including an annual audit fee of Rp7,220,094,000 and audits on the subsidiary CNAF amounting to Rp1,079,400,000. Below is the list of Public Accounting Firm that have conducted the Bank audit during the last 5 (five) years: Year of Examination 514 Public Accounting Firm Person in Charge 2017 KAP Tanudiredja, Wibisana, Rintis & Associates Angelique Dewi Daryanto, S.E., CPA 2016 KAP Tanudiredja, Wibisana, Rintis & Associates Drs. Muhammad Jusuf Wibisana, M.Ec., CPA 2015 KAP Tanudiredja, Wibisana, Rintis & Associates Drs. Muhammad Jusuf Wibisana, M.Ec., CPA 2014 KAP Tanudiredja, Wibisana & Associates Drs. Haryanto Sahari, CPA 2013 KAP Tanudiredja, Wibisana & Associates Drs. Haryanto Sahari, CPA Annual Report CIMB NIAGA 2017
  515. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Transparency of Bank Financial and NonFinancial Condition CIMB Niaga has fulfilled its obligation to govern transparency and publication of its financial and non-financial condition in accordance with the prevailing regulations , through the submission and publication of information in the print media and on the Bank’s website, as follows: 1. Monthly Financial Reports submitted to the regulators are also published on the Bank Indonesia and CIMB Niaga’s website. 2. Quarterly Financial Reports submitted to regulators, are also published in the print media and on the CIMB Niaga’s website. 3. Annual Report of CIMB Niaga, which is prepared and presented with due observance to the rules and regulations and submitted to regulators, rating agencies, banking development institutions, research institutions, financial magazines, and is published on the CIMB Niaga’s website. 4. Corporate Governance Information, including the Annual Corporate Governance Report, the Vision, Mission and Corporate Values, Composition and Profiles of the Board of Commissioners and Board of Directors, as well as internal policies related to corporate governance including the Articles of Association and Committee Charters are all published on the CIMB Niaga’s website. 5. Information on Bank’s Products and Services including the office network are published in the Annual Report and on the CIMB Niaga’s website to provide easy access for customers, investors, and public to Bank’s products and services 6. Information on Complaint Procedures, Information Security Policy, and Tips for Customers in using banking services are published on the CIMB Niaga’s website for the clarification of consumer protection regulations. 7. Further information to support disclosure of information, financial education, and services for public. CIMB Niaga's Share and Bond Buyback As at 25 July 2017, the Bank had received approval from OJK through letter No.S-63/PB.33/2017 to buyback the shares at maximum 2% from total issued and fully paid shares, which subsequently will be used as Management Employee Stock Ownership Program (MESOP) that will be effective in 2018. This share buyback plan has been approved by the shareholders through EGMS on 25 April 2017 and the EGMS on 24 August 2017. In accordance with the approval, as at 31 December 2017, the Bank has performed the buyback of 194,407,492 (one hundred ninety four million four hundred seven thousand and four hundred ninety two) shares with price per-share ranging between Rp1,191 (full amount) and up to Rp1,303 (full amount) (or an average price per-share of Rp1,249.45 (full amount)) and the total acquisition cost of the buyback amounting to Rp242,901,672,210 (two hundred forty two billion nine hundred one million six thousand seventy two and two hundred ten Rupiah) (including commission and tax). Throughout 2017, the Bank did not conduct any buyback of bonds issued by the Bank. Annual Report CIMB NIAGA 2017 515
  516. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Dividend Policy The Bank ’s Dividend Policy is set forth in Bank Business Plan (RBB) 2017, which has been submitted to OJK whereby the Bank allows for the distribution of dividends at a maximum of 40% of net profit of the Bank with the following conditions: (i) the Bank reaches its net income target before tax; and (ii) the Bank’s CAR net the dividend pay-out and other investment projects consuming significant amount of capital, in total, is not less than 17.5% in 2017. However, the dividend pay-out will take into account the Bank’s condition and capability and will also consider the capital requirements and going concern to maintain the Bank’s business sustainability. In 2017 and 2016, in accordance with resolution of the AGMS 2017, CIMB Niaga paid out no dividends. The Bank made no provision for the mandatory reserve from its net profit for fiscal year 2016, since the Bank’s total amount of mandatory reserve complies with the minimum mandatory reserve requirement pursuant to Article 70 of Law No. 40 Year 2007 regarding Limited Liability Companies. Accordingly, the total amount of CIMB Niaga net profit in 2016 will be utilized to finance the Bank’s business activities. Funds for Social and Political Activities In terms of social activities, CIMB Niaga believes that social activities have a positive impact on a broader audience for the long term. To that end, CIMB Niaga encourages employees to assist and support the social activities organized by the Bank as set forth in the Bank’s Code of Ethics & Conduct No. A.07.10 dated June 16, 2017. As a manifestation of its social responsibility, CIMB Niaga has made provisions from a portion of its profit to build its community and environment. The discussion relating to the Bank’s social responsibility is available under the section of “Corporate Social Responsibility” and Sustainability Report of 2017, which is an integral part of this Annual Report. 516 In terms of politics, the Bank gives freedom to all employees in expressing their aspirations in political activities. However, the Bank’s Code of Ethics & Conduct provides for certain restrictions regarding the involvement of the Bank and employees in political activities in order to avoid the occurrence of conflict of interest, including but not limited to providing funds for political purposes. This policy is implemented to maintain the independence and professionalism of the Bank and its employees. Annual Report CIMB NIAGA 2017
  517. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Provision of Funds to Related Parties The provision of funds to related parties (individuals or groups, including to Directors, Commissioners and Executive Officers of the Bank and other related parties) by the Bank is conducted at fair market prices and under normal commercial terms (arm’s length), as so performed with non-related parties. The Provision of Funds to Related Parties is performed with reference to PBI No. 8/13/PBI/2006 on Amendment to PBI No. 7/3/PBI/2005 on Legal Lending Limit (LLL) of Commercial Banks, in compliance with the Bank’s internal regulations, and subject to the prior approval of the Board of Commissioners. During 2017, there were no violations or breaches of the LLL in the provision of funds to parties related to CIMB Niaga. Customer Protection Policy For CIMB Niaga, customers are one of the stakeholders with an important role in improving the performance and sustainability of the Bank. Therefore, CIMB Niaga is committed to provide the best, including protection for its customers. This commitment is implemented through the Customer Resolution Unit (CRU), which focuses on handling customer complaints over the Bank’s products and services. The CRU continues to improve the quality of customer complaints handling, including through periodic evaluations to enable corrective actions and facilitates faster resolution of customer complaints. In line with the 27% growth in number of customers to 7.4 million in 2017, the number of financial transactions grew by 37% to 290.3 million. The percentage of customer complaints to number of transactions increased from 0.025% in 2016 to 0.033% in 2017. Nevertheless, the Bank has improved the quality of customer complaints handling, whereby the customer complaint resolution rate in accordance with the Service Level Agreement (SLA) improved from 90% in 2016 to 94% in 2017. In addition, CIMB Niaga is committed to improve the quality of products and services. Accordingly, initiatives were made such as improving the work process by the adoption of ‘lean six sigma’ method, providing flexibility and ease of transactions for customers through CIMB Niaga 14041 telephone banking service, as well as carrying out the internal campaign activities of ‘Service from the Heart’ aimed at nurturing a customer-centric culture among CIMB Niaga’s staff. CIMB Niaga is also active in the Banking Mediation Working Group in partnership with Bank Indonesia, the Financial Services Authority and other banks, to implement various customer education programs, in the form of seminars on banking and other activities. Annual Report CIMB NIAGA 2017 517
  518. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Anti Corruption Policy The Bank has regulated the Bank ’s Anti-Corruption policy as stipulated in the Bank Code of Ethics and Conduct. In addition to support the implementation of the Anti-Corruption Policy, CIMB Niaga also has the “Ayo Lapor” program, which is stipulated in the Whistleblowing System Policy in this Annual Report. Protection of Creditors’ Rights CIMB Niaga implements an honest and transparent information disclosure system as well as equal treatment to all creditors without any discrimination, in order to protect the rights of the creditors. With disclosure of information, all creditors and business partners are entitled to obtain relevant information according to their needs so that each party can make an objective decision on the basis of fair, reasonable and accurate considerations. In order to ensure the rights of creditors are properly implemented, these rights are stipulated in the agreements agreed upon by both parties. As part of the exercise of the creditor’s rights, the Bank performs its obligations as promised in a timely manner and seeks to avoid delays or omissions that could potentially result in loss of both parties. Submission of the 2017 Sustainability Report CIMB Niaga has prepared and subsequently published the 2017 Sustainability Report on the economic, environment and social performance of the Bank, including the implementation of the Bank’s CSR programs and activities. The Sustainability Report has been prepared in accordance with the standards from Global Reporting Initiative (GRI), core option. 518 Annual Report CIMB NIAGA 2017
  519. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Risk Management CIMB Niaga manages its risks in an integrated manner through the alignment of risk appetite with business strategy , in line with the Enterprise Wide Risk Management (EWRM) framework. EWRM is a comprehensive framework that covers risk management of the Bank’s various activities and business decisions. Moreover, EWRM is also used to identify the Bank’s capital requirements. One of the key components of the EWRM framework is strong Bank management governance that serves to improve the four eyes principle and transparency mechanism in all risk management processes. The Bank involves all levels within the organization ranging from Directors, senior management and all employees in the implementation of the risk management process through the three lines of defense. The Bank makes risk management an integral part of the Bank’s culture and decision-making processes. Discussion of risks plays a central and fundamental role in the business planning process, including the determination of risk appetite, risk posture and new products/activities, to ensure conformity between strategy, growth, operational plans, capital and risk. In this regard, the Bank optimizes the risk management function to support and influence business decisions related to pricing, resource allocation and other business decisions. As such, the Bank is expected to be able to maintain the trust of its customers, shareholders and other stakeholders. CIMB Niaga’s EWRM risk management process includes risk identification processes deemed significant in the Bank’s business activities; risk measurement and risk aggregation are performed with adequate methodology while management and control and risk reporting are conducted on an ongoing basis to evaluate and manage risk, as well as to ensure that risk exposure is in line with the Bank’s risk appetite. Annual Report CIMB NIAGA 2017 EWRM implementation is an on-going initiative and is supported by an adequate risk management infrastructure. This includes the preparation and updating of appropriate risk management policies and procedures to maintain the level of risk at the established limits and adequate human and technological resources. Implementation of EWRM is also supported by the Risk Management Business Unit which acts as an independent party. RISK IDENTIFICATION AND ASSESSMENT CIMB Niaga adopts 2 (two) approaches in the risk identification process which are risk profile and Comprehensive Risk Assessment (CRA). The methodology adopted in risk profile assessment refers to the regulatory requirements, while CRA represents an internal approach to a comprehensive and continuous risk identification process. In determining the types of material risks, in addition to considering the financial impacts, it also identifies the impact on non-financial aspects, such as reputation and compliance with regulatory requirements. TYPE OF RISKS The main risks managed by the Bank based on the CRA results include 9 (nine) types of risk, namely credit risk, market risk, liquidity risk, operational risk, strategic risk, compliance risk, legal risk, reputational risk and interest rate risk in banking book in line with type of risks that must be managed by the Bank in the process of risk profile assessment. Particularly for Sharia Business Unit (SBU), there are 2 (two) additional risk type, namely rate of return risk and investment risk, in accordance with POJK No. 65/POJK.03/2016, dated 23 December 2016, concerning the Implementation of Risk Management for Sharia Commercial Banks and Sharia Business Unitsand in accordance with the POJK No. 17/POJK.03/2014 dated 19 November 2014 regarding the Implementation of Integrated Risk Management for Financial Conglomerations, Bank also manages intragroup transactions risk. 519
  520. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management RISK MANAGEMENT CIMB Niaga measures and monitors these risks on a regular basis to ensure that all risk mitigation strategies of the Bank are properly implemented so that each of these risk mitigation measures is effective at managing the risk level at a level consistent with the Bank ’s risk appetite and risk tolerance. Risk assessment is conducted among other means through the determination of risk rating, risk scoring, sensitivity analysis of portfolio of interest-related instruments (DV01), NOP, LCR, EVE and stress testing, using methodologies that refers to best practices. As for operational risk, its risk management is conducted through various operational risk tools such as Loss Event Data (LED) Management, Key Risk Indicator (KRI), Risk and Control Self-Assessment (RSCA), review of new products and services, and Control Issue Management (CIM) to monitor corrective actions on the resulting control gap. The Bank periodically reviews the assumptions used, the data sources, methodologies and procedures adopted in the assessment of risks, changes in the business environment, market conditions and regulatory requirements. MANAGING RISK Managing Risk is following the EWRM concept that begins with the risk identification stage aimed at determining material risks associated with the products and activities and subsequently the assessment stage to enable the Bank to determine the level of risk being encountered. The Bank then determines which risks to be taken, avoided, transferred or managed by considering the impact of risk events occurring as well as the cost and benefits of the Bank’s products or activities. As part of risk management, CIMB Niaga is consistently ensuring that there is a process of regular reporting and Bank’s risk management system effectiveness review which is performed by the Risk Management Committee (RMC) and other Executive Committees at the Board of Directors level and by the Risk Oversight Committee (KIPER) at the Board of Commissioners level. The evaluation results for improvement of the Bank’s risk management process are followed up by the Risk Management Unit and other related units. The Bank at all times strives to apply risk management process based on prudent principles and good corporate governance. 520 Discussions on further risk management efforts are available in the Risk Management Report section of this Annual Report. RESULT OF RISK MANAGEMENT SYSTEM EFFECTIVENESS REVIEW The risk management process at the Bank is evaluated by RMC, which is in charge of the implementation of the overall risk management framework. The Committee is chaired by the President Director and consists of all members of the Board of Directors and several executive officers. In RMC meetings, in addition to the comprehensive discussion of the risk exposure report every month, also discuss other specific issues such as the risk appetite monitoring dashboard which serves as a traffic light associated with risk-taking activities undertaken by the Bank, implementation of ICAAP (Internal Capital Adequacy Assessment Process) to assess the Bank’s capital adequacy in relation to its risk profile, approval of policies, integrated risk management, approval of risk limits and approval of the models and methodologies adopted in the risk assessment process. In addition to RMC, there are several other Executive Committees related to risk management to discuss specific risks in greater detail such as the Asset Liability Committee (ALCO), the Operational Risk Committee (ORC) and the Credit Policy Committee (CPC). In 2017, CIMB Niaga’s risk management process in 2017 was deemed as effective. All decisions made by these Committees are well documented. In addition, evaluation of risk management strategy implementation is also conducted by Board of Commissioners through KIPER. A number of issues related to risk implementation require approval of the Board of Commissioners such as: approval of risk management policy, establishment of Risk Appetite Statement and guidelines regarding the level of risks that may be taken by business units in any given year. Annual Report CIMB NIAGA 2017
  521. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Internal Control System The Internal Control System supports the achievement of the Bank ’s performance objectives, to increase value for stakeholders, minimize the risk of loss and maintain compliance with prevailing laws and regulations. CIMB Niaga implements the Internal Control System as a fundamental component in monitoring Bank management, serving as a benchmark for sound and controlled of banking operations. assurance for the achievement of control objectives. The COSO Internal Control Framework consists of 5 (five) controlling components: a. Control Environment b. Risk Assessment and Risk Management c. Control Activities d. Information and Communication e.Monitoring. Implementation of the Bank Internal Control System refers to COSO (Committee of the Sponsoring Organizations of the Tread way Commission) Internal Control Integrated Framework in developing an internal control framework that ensures adequacy of operational and financial control, financial reporting, operational effectiveness and efficiency, and compliance with prevailing laws and regulations. Implementation of CIMB Niaga Internal Control System, as per COSO, is as follows: LEGAL REFERENCES CIMB Niaga Internal Control System was established by referring to the prevailing regulations, which among others, include: 1. POJK No. 18/POJK.03/2016 dated 16 March 2016 concerning Implementation of Risk Management for Commercial Banks. 2. SEOJK No. 34/SEOJK.03/2016 dated 1 September 2016 concerning Implementation of Risk Management for Commercial Banks. 3.SEBI No. 5/22/DPNP dated 29 September 2003 regarding Guidelines on Internal Control System Standards for Commercial Banks. INTERNAL CONTROL SYSTEM IMPLEMENTATION AND CONFORMITY WITH COSO - INTERNAL CONTROL FRAMEWORK CIMB Niaga’s internal controls are established based on two aspects operational control and financial control. Internal control over the Bank’s operational and Financial Reporting is conducted with reference to the international COSO Internal Control Integrated Framework. In COSO it is mentioned that internal control is a system or process performed by the Board of Commissioners, Board of Directors, Management and employees within a company, to provide adequate Annual Report CIMB NIAGA 2017 1. Control Environment The Board of Commissioners, through Committees, regularly conduct assessments of the control environment and conduct independent assessments communicated to the Board of Directors for follow-up. 2. Risk Assessment and Risk Management The Board of Directors has established procedures to anticipate identify and respond to events and constraints that may affect achievement of the objectives. The Board of Commissioners, through the Risk Oversight Committee, ensures that the Board of Directors has performed sound risk management. 3. Control Activities Policies and procedures for key business units and support units have been developed and approved by the Board of Directors, and periodically reviewed and updated by the Risk Management Unit. The Compliance Unit is responsible for disseminating the prevailing banking regulations, conducting compliance tests on new internal policies and proposals on new products or activities, implementing Anti Money Laundering (APU) and Terrorism Financing Prevention (PPT) programs, and monitoring compliance through designated officers at other business units verified by an Independent Work Unit located at the 2nd or 3rd Line of Defense. The Compliance Unit submits periodic compliance reports to the Board of Commissioners, Board of Directors and regulators. 521
  522. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management INTERNAL CONTROL SYSTEM Company executives regularly review the existence and effectiveness of controls , perform adequate division of tasks, conduct routine verification of data accuracy and maintain and test emergency response plans. 1. Board of Directors and all Bank Officers, providing direction, guidance and supervision; 2. Executive Committees; 3. Internal Audit; 4. All employees. 4. Information and Communication Data collection and information technology procedure generates reports on business activities, financial conditions, risk management and compliance with provisions that support the conduct of the duties of the Board of Directors and Board of Commissioners. The Board of Commissioners, assisted by the Audit Committee, is responsible for oversight in order to ensure the implementation of internal controls in general, including the policies of the Board of Directors establishing such internal controls. The internal control system is designed to properly manage and control risks and not to eliminate the risks. This internal control statement describes the key elements adopted to achieve the Bank’s internal control objectives which include: 1. Effective and efficient operations; 2. Accurate and reliable financial statements; 3. Compliance with applicable laws and regulations; 4. Security of Bank assets. 5.Monitoring The Board of Directors, Bank Officers and Internal Audit continuously monitor the effectiveness of the overall implementation of internal control. Major risk monitoring has been prioritized and serves as a part of daily activities, including regular evaluations. The Board of Directors and Officers of the Bank are committed to and have performed follow-up of the monitoring results that have been made and the recommendation of Internal Audit. Within the framework of the internal control system, CIMB Niaga adopts the Three Lines of Defense concept which is the most recent implementation of the control strategy under COSO Internal Control Framework monitoring system as disclosed under Risk Management section of this Annual Report. INTERNAL CONTROL ADEQUACY STATEMENTS The Board of Directors and the Board of Commissioners are committed to ensuring that Good Corporate Governance is well implemented as a basis for achieving objectives to maintain and enhance the Bank’s values. One critical element of Good Corporate Governance is ensuring that the internal control system is adequately performing. The Board of Directors is responsible for implementing a good internal control system to achieve the Bank’s objectives. The internal control system is a process performed by: 522 EVALUATION OF INTERNAL CONTROL EFFECTIVENESS In 2017, CIMB Niaga implemented internal control in accordance with the principles of control and the overall quality of the internal control system has been well maintained. Issues related to the adequacy of internal control have been reported to the Board of Directors and follow-up measures have been taken to minimize risks. Reports are also submitted to the Board of Commissioners through the Committees at the Board of Commissioners level. Annual Report CIMB NIAGA 2017
  523. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Legal Issues /Litigation of the Bank and its Subsidiaries LEGAL ISSUES In 2017, the Bank’s legal issues (excluding Sharia cases to be disclosed in the Sharia Business Unit Governance Report) consist of civil and criminal cases. In the civil cases the Bank’s role is as Defendant; whereas in the criminal cases the Bank’s role is as Reported Party. Civil Legal Issue Civil (Bank as Defendant) 2015 2016 2017 Total Cases 127 134 220 Resolved Cases (Final and Legally Binding Decisions) 14 13 82 Cases in Settlement Process (as of December) 113 121 138 Related to the civil cases, the Bank litigation pertained most commonly to: - Lawsuit from debtor or third parties on the collateral pledged in the Bank. - Lawsuit related to bank guarantee, changes of interest rate, request for cancellation of credit agreement, request for disbursement of term deposit, blocking of account or the customer account, notification of customer’s collectibility. - Lawsuit regarding tax dispute. - Lawsuit from the debtor on the Go Mobile application transaction, rejection of insurance claim, loss of customer’s fund. - Lawsuit from the customers employee in the Industrial Relations Court, where the customers employee account and saving are in the Bank. - Lawsuit on investment fraud by third parties in which the process of deposit conducted by the Bank. - Lawsuit on inheritance dispute against object of auctions and collateral in the Bank. Criminal Legal Issue Criminal (Bank as Defendant) 2015 2016 2017 Total Cases 5 6 8 Resolved Cases (Final and Legally Binding Decisions) 3 1 2 Cases in Settlement Process (as of December) 2 5 6 Related to the criminal cases, the litigation involving the Bank pertain most commonly to: - Reports from customers or third parties concerning allegations of banking crime. - Reports from customers or third parties related to alleged criminal act regarding counterfeit letters, alleged criminal act regarding fraud and a misappropriation, and alleged utilize land without permission from the righteous or its authorized attorney. Annual Report CIMB NIAGA 2017 523
  524. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management LEGAL ISSUES /LITIGATION OF THE BANK AND ITS SUBSIDIARIES LAWSUIT VALUE AND RISKS As of the end of 2017, a number of cases valued more than Rp10 billion and the risks of the Bank are as follows: 1. Lawsuit on Unlawful Act (No. 255/PDT.G/2008/PN.Jkt.Pst) Parties II (Plaintiff I) IIM (Plaintiff II) DPP (Plaintiff III) DPKS (Plaintiff IV) BGI (Defendant I) IS (Defendant II) RHIS (Defendant III) B (Defendant IV) ISB (Defendant V) RS (Defendant VI) HS (Defendant VII) S (Defendant VIII) KAP TTHR (Defendant IX) TI (Defendant X) JS (Defendant XI) KCRI now named as MI (Defendant XII) KKH ST (Defendant XIII) HT (Defendant XIV) FH (Defendant XV) APS (Defendant XVI) Bank (Defendant XVII) Subject The Plaintiffs motioned a lawsuit claiming that the Bank as the trustee agent in the issuance of the subordinated Bonds I has committed illegal act Value - Material Rp10,637,083,332 - Immaterial Rp400,000,000,000 Status On-going appeal process in the Supreme Court Risks Encountered by the Bank Indemnity at the amount of value of the lawsuit together with other Defendants 2. Tax Dispute (Reconsideration of Tax Court Decision No. 50358/PP/M.IB/16/2014) Parties DJP (Suppliant) Bank (Respondent) Subject The DGT filed a Review of Supreme Court’s decision concerning Tax Underpayment Assessment Letter (SKPKB) issued by the DGT for the Bank Value Material Rp54,822,422,481 Status At Reconsideration Risks Encountered by the Bank Indemnity for the value of the lawsuit 3. Tax Dispute ( Reconsideration of Tax Court Decision No. 57057/PP/M.IIIA/15/2014) Parties DJP (Suppliant) Bank (Respondent) Subject The DGT filed a Review of the Supreme Court’s decision regarding the Letter of Tax Underpayment Assessment (SKPKB) issued by the DGT for the Bank Value Material Rp204,760,659,708 Status At Reconsideration Risks Encountered by the Bank Indemnity for the value of the lawsuit 4. Cancellation of the Court’s Ruling on Original Certificate Holder (No. 631/PDT.G/2016/PN.Dps) Parties RR ES (Plaintiff) IPS (Defendant I) NW (Defendant II) Notary IGMMO (Defendant III) Bank (Defendant IV) Subject Cancellation of the State Court’s Ruling on the Lawsuit of Original Certificate Holder Value Material Rp23,600,000,000 Status In appeal process Risks Encountered by the Bank Loss of guarantee 524 Annual Report CIMB NIAGA 2017
  525. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report 5 . Lawsuit on Unlawful Act (No. 253/PDT.G/2016/PN.Jkt.Ut) Parties JMS (Plaintiff I) RVS (Plaintiff II) AJS (Plaintiff III) SGI (Defendant I) ENA (Defendant II) MCR (Defendant III) CCR (Defendant IV) SS (Defendant V) YPK(Defendant VI) RFW (Defendant VII) IY (Defendant VIII) BDI (Defendant IX) Bank (Defendant X) BBS (Defendant XI) BK (Co-Defendant I) DJAHU (Co-Defendant II) Subject Customer’s internal shareholder conflict (inheritance dispute) Value - Material Rp291,500,000,000 - Immaterial Rp300,000,000,000 Status In appeal process Risks Encountered by the Bank Loss of guarantee 6. Lawsuit on Unlawful Act (No. 176/PDT.G/2017/PN.DPK) Parties SA (Plaintiff I) SP (Plaintiff II) BUG (Plaintiff III) SBP (Plaintiff IV) SPP (Plaintiff V) BMI formerly BII (Defendant I) Bank (Defendant II) KD (Defendant III) KK RI (Defendant IV) EG (Co-Defendant I) MP (Co-Defendant II) Subject Granting of rights to shareholders to buyback shares Value - Material Rp2,100,000,000,000 - Immaterial Rp2,200,000,000,000 Status On-going at State Court Risks Encountered by the Bank Indemnity for the value of lawsuit together with other Defendants MATERIAL CASES INVOLVING INCUMBENT MEMBERS OF THE BOARDS OF DIRECTORS AND BOARDS OF COMMISSIONERS During 2017, there were no members of the Board of Directors and Board of Commissioners of the Bank involved in a case and/or civil and/or criminal disputes. Annual Report CIMB NIAGA 2017 525
  526. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management LEGAL ISSUES /LITIGATION OF THE BANK AND ITS SUBSIDIARIES MATERIAL CASES INVOLVING SUBSIDIARIES CIMB Niaga Auto Finance (CNAF) Legal cases of CNAF in 2017 consisted of civil and criminal cases. In the civil cases CNAF role are as Defendant whereas in the criminal cases CNAF role are as the Reported Party. Civil Civil Case (CNAF as Defendant) Legal Issue 2015 2016 2017 Total Cases 22 22 23 Resolved Cases (Final and Legally Binding Decisions) 14 7 12 Cases in Settlement Process (as of December) 9 15 11 Criminal Criminal Case (CNAF as Defendant) Legal Issue 2015 2016 2017 Total Cases 18 20 53 Resolved Cases (Final and Legally Binding Decisions) 9 1 14 Cases in Settlement Process (as of December) 9 19 39 MATERIAL CASES INVOLVING INCUMBENT MEMBERS OF CNAF BOARDS OF DIRECTORS AND BOARD OF COMMISSIONERS During 2017, there were no members of CNAF’s Board of Directors and Board of Commissioners involved in a case and/or civil and/or criminal disputes. IMPACT OF LEGAL ISSUES FOR THE BANK AND SUBSIDIARIES Litigation involving the Bank in 2017 did not materially affect the status, position and business continuity of the Bank and Subsidiaries. ADMINISTRATIVE SANCTION FROM RELEVANT AUTHORITIES During 2017, there were no material administrative sanctions affecting the business continuity of the Bank or administrative sanctions imposed on members of the Board of Directors and Board of Commissioners of Bank from authorities. 526 Annual Report CIMB NIAGA 2017
  527. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Access to Corporate Information and Data CIMB Niaga provides access to Bank ’s information and data both reports of financial and non-financial to public transparently through various media such as website (in two languages), mass media, mailing lists, newsletters, analyst meetings, IDX website and others. In this regard, the Bank maintains an Investor Relations that always builds a good image of the Bank through the development of relationships with investors/analysts in an interactive manner and also the delivery of information in a regular manner, particularly related to the Bank’s performance Access to Information and Bank’s Data is facilitated through: •Website www.cimbniaga.com • Call Center 14041; (021) 29978888 • Customer Care 14041@cimbniaga.co.id • Email Investor Relations investor.relations@cimbniaga.co.id • Analyst Meeting and Conference Call INVESTOR RELATIONS The main function of Investor Relations is to foster good relations and to interact with investors, capital markets, and shareholders, which include the: 1. Development of strategic communication mainly with investors, potential investors, analysts, fund managers, securities firms and the general capital market community. 2. Preparation of financial performance presentation materials for the purpose of analyst meetings. 3. Teleconference to ascertain transparency on Bank’s financial and non-financial information, and also the Bank’s strategy. 4.Communication of the Bank’s performance to external parties such as investors, fund managers, and potential investors. Annual Report CIMB NIAGA 2017 5. Maintain good relationships and act as mediator between the Bank and stakeholders by managing communication and correspondence with investors, fund manager, analysts, securities firms and rating agencies. 6. Maintain of the Bank’s confidential information or its customers in a proper manner and avoid make use of such confidential information for individual benefit or any other party. 7. Coordination of the preparation, publication, and distribution of Annual Reports to all stakeholders. 8. Provision of data and information related to the Bank’s performance through website in order to provide easier and broader access, where the information provided includes as follows : a.Monthly and quarterly publication reports, LCR information, quantitative risk exposure information, capital disclosure reports and financial statements of the legal primary entity in accordance with OJK requirements as a banking company in Indonesia. b. The publication of the consolidated quarterly and year-end audited financial statements in accordance with OJK requirements as a listed company. c. Annual Report which is a comprehensive report to the public and stakeholders concerning the performance achievement, business and other activities of CIMB Niaga. Investor Relations Activities A number of activities with investors and analysts were conducted by the Investor Relations Division during 2017: 1. Organization of Analyst Presentations conducted 4 (four) times a year. Communication with analysts through 19 2. (nineteen) meetings or teleconferences with more than 30 (thirty) companies. 3. Annual Rating Review for Fitch Indonesia, Pefindo, Moody’s and RAM. 4. Public Expose to provide a public exposure to media, analysts and investors related to the performance and strategy of the Bank. 527
  528. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management ACCESS TO CORPORATE INFORMATION AND DATA Social Media At present CIMB Niaga maintains 6 (six) social media accounts: 1. Facebook CIMB Niaga 2. Instagram CIMB Niaga 3. YouTube CIMB Niaga 4. Google+ CIMB Niaga 5. Twitter @CIMBNiaga 6. LinkedIn CIMB Niaga All of these accounts serve as media for delivering information of the Bank’s activities such as brands, product offers, tips, and other information. In addition, 3 (three) of these 6 (six) accounts also respond to fans/ follower inquiries regardless whether they are CIMB Niaga customers or not. In 2017 the Bank held various communication campaigns that rely on social media as the communication channel. Some of the large-scale communication activities carried out in 2017 include Brand Campaign communication (FORWARD), seasonal communication campaigns, MASA communications campaigns and feature of Facebook Leads Ads with the aim of increasing awareness about the Bank, improving the active participation of fans or followers and obtaining business leads to support business development. In addition, the Bank also utilizes social media to communicate major Bank’s events such as The Color Run presented by CIMB Niaga, Namaste Festival 2017, IndobuildTech, Indonesia Trade Expo and Xtra Xpo. FORWARD communication campaign is an activity specially designed to communicate CIMB Niaga’s latest brand promise, which is Forward. The activity is conducted by launching 4 (four) videos focusing on 4 (four) segments which are young people, young families, high-end segment and business segment. The seasonal communication campaign is an activity undertaken to celebrate the seasonal momentum in Indonesia such as Imlek, Ramadan, Independence Day, Christmas and New Year. With 528 each seasonal momentum, the Bank launches videos as communication materials uploaded on official Facebook and Instagram accounts. In 2017, CIMB Niaga also continued the MASA? communications campaign to introduce the advantages of Bank’s retail banking products. This campaign is specially designed in the form of video series featuring social media influencers and standup comedians in Indonesia. Each video conveys a message about the benefits of Bank’s retail products such as Savings, KPRs, Credit Cards and Branchless Banking of CIMB Niaga. In addition, CIMB Niaga also utilizes Facebook’s latest feature which is Facebook Leads Ads, in which the Bank can install online registration form through Facebook. CIMB Niaga is one of the companies that adopts this feature to campaign for its many products. Also in 2017, CIMB Niaga continued its initiatives and activities involving internal staff to become CIMB Niaga’s brand ambassadors on social media. To support this activity, the Bank utilized an application that serves as a library content for brand ambassador as well as a tool to measure the performance of each ambassador. In addition, the Bank also uses social media as a communication channel to convey information and to respond to questions related to the Bank’s activities. This is made for the purpose of assisting customers in obtaining clear information and assistance when encountered with issues during banking transactions. With these social media programs, the number of followers on Facebook CIMB Niaga at the end of December 2017 reached 1,138,743 people increasing by 27% compared to the end of 2016. As for the number of Twitter followers, the account of @CIMBNiaga has 64,927 followers increasing by 19% since the end of 2016. While for the number of Instagram followers, the account of @CIMB_Niaga reached 101,356 people increasing by 982% since the end of 2016. Annual Report CIMB NIAGA 2017
  529. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report The role of social media as the Bank ’s communication channel is increasingly intensified so as to allow them to eventually become an effective communication channel in conveying the Bank’s messages or receiving input from public. The Bank’s social media activities run 24 hours, 7 days a week with less than 5 minutes response time since the comment is made, making CIMB Niaga one of the best companies in banking industry in terms of social media response time. Press Release in 2017 No. Title Date JANUARY 1. CIMB Niaga Sharia Relies on a Number of Featured Products in 2017 17 2. Welcoming Imlek, CIMB Niaga Offers Competitive Interest Rate for Housing Loans 24 3. CIMB Niaga Economic Forum 2017: Anchoring Optimism and Seizing Opportunities 26 FEBRUARY 4. Reporting AMDB Program 2016, CIMB Niaga Continues to Conduct Financial Literacy 1 5. CIMB Niaga Integrates Customer Service 8 6. CIMB Niaga Reports Rp2.08 Trillion Consolidated Net Profit for Full Year 2016 20 7. Accelerating Housing Loans, CIMB Niaga Works in Cooperation with Ciputra Group 22 8. CIMB Niaga Offers Retail Government Islamic Bonds SR-009 28 MARCH 9. CIMB Niaga Supports Garuda Indonesia Travel Fair 2017 3 10. CIMB Niaga Director is Awarded as The Most Influential CIO 9 11. CIMB Niaga Enters into Joint Cash Management with Konimex Group 10 12. CIMB Niaga Sharia Records Asset Improvements in 2016 13 13. CIMB Niaga Improves Transactions through EDC and e-Commerce 20 14. CIMB Niaga Expands the Scope of AMDB 2017 22 15. Offering Transfer of Sharia Housing Financing, CIMB Niaga Enters into Cooperation with Daarul Qur’an 28 16. CIMB Niaga Offers Lower Interest Rate for Housing Loans 30 17. Launching Brand Promise “Forward”, CIMB Niaga Gets Closer with its Customers 18. CIMB Niaga Sharia Launches Kartu Debit Haji and Umrah 7 19. CIMB Niaga Sharia Enters into Cooperation with HIMPUH 12 20. Celebration of Multicolor is Decorating three ASEAN Countries when CIMB Group Organizes The Color Run ™ as Major Sponsor 21 21. Categorized as BUKU 4, CIMB Niaga: Because of You We Expand, We Expand for You 25 22. CIMB Niaga Reports Rp640 Billion Consolidated Net Profit in First Quarter of 2017 27 APRIL 5 MAY 23. Facilitating its Customers, Holcim Indonesia Joins CIMB Niaga to Launch Online Application Solusi RumahKu 10 24. Embracing the Youngsters, CIMB Niaga Launches Indie Savings Account 16 25. Indobuildtech Jakarta 2017 Triggers the Growth in Construction Sector, Supported by 16 Associations and CIMB Niaga 17 26. CIMB Niaga Hands over the Grand Prize of Mercedes-Benz C 200 for ‘Festival Xtra’ Program 6 27. CIMB Niaga Operates in Limited Hours during Lebaran Holiday 1438 H 21 Improving its Digital Services, CIMB Niaga Works in Cooperation with Dukcapil 22 JUNE 28. JULY 29. CIMB Niaga Offers Shelf-Registered Bonds II Bank CIMB Niaga Phase II Year 2017 12 30. Chief Economist CIMB Niaga: Three Steps of Gaining Stronger Economic Growth 17 31. CIMB Niaga Works in Cooperation with AMPHURI 24 32. Jay Subyakto First Movie: Banda The Dark Forgotten Trail, When the World Civilization Started from the Trading of Spices 26 Annual Report CIMB NIAGA 2017 529
  530. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management ACCESS TO CORPORATE INFORMATION AND DATA No . Title Date 33. CIMB Niaga Organizes XTRA XPO 29 34. CIMB Niaga Reports Rp1.4 Trillion Consolidated Net Profit in First Half of 2017 31 AUGUST 35. CIMB Niaga Launches Overseas Education Program 3 36. CIMB Niaga Receives Best Credit Card of The Year Award 4 37. CIMB Niaga Organizes First XTRA XPO in Surabaya 12 38. CIMB Niaga Celebrates Indonesia’s 72th Independence Day 17 39. CIMB Niaga Announces Changes in Composition of BOC and BOD 24 40. CIMB Niaga Donates Hewan Qurban 31 SEPTEMBER 41. CIMB Niaga Organizes Namaste Festival 2017 7 42. CIMB Niaga Adds the Number of its Digital Lounges in Surabaya 25 43. BPJS Ketenagakerjaan Works in Cooperation with CIMB Niaga for TKI Service and PERISAI 26 44. Consistently Implementing GCG, CIMB Niaga receives Annual Report Award 27 45. Celebrating 62nd anniversary, CIMB Niaga Appreciates 62 Child Customers 28 OCTOBER 46. Supporting Healthy Lifestyle, CIMB Niaga Organizes The Color Run 2017 presented by CIMB Niaga 1 47. CIMB Niaga Supports Trade Expo Indonesia 2017 11 48. CIMB Niaga and MM UI Renews the Bourse Game Laboratory 12 49. Improving its Customer Service, CIMB Niaga Adds Phone Banking Facility in Yogyakarta 30 50. CIMB Niaga Reports Rp2.2 Trillion Consolidated Net Profit for the First Nine Months of 2017 31 NOVEMBER 51. First Savings Account in Indonesia with Sticker Debit Card, Indie Account Creates MURI Record 9 52. CIMB Niaga Namaste Festival 2017 Encourages Healthy Lifestyle 10 53. CIMB Niaga Encourages Indonesia Youths to Develop Creative Industry 22 54. Improving Convenience during Transactions, CIMB Niaga Launches The New Go Mobile 29 55. Implementing GCG based on ASEAN Standards, CIMB Niaga Wins Corporate Governance Award 2017 30 DECEMBER 56. CIMB Niaga Indonesia Opens Aquatic Championship 2017 to Use GBK New Swimming Pool 4 57. Supporting the Literacy of Indonesian Children, CIMB Niaga Distributes 10 Thousand Books and Builds Library 11 58. Supporting BI to Test Cross Country Remittance, CIMB Niaga Relies on Mobile Wallet 15 59. New Year Holiday 2018, CIMB Niaga Focuses on Maximizing Customer Service 28 60. CIMB Niaga Finances Government Infrastructure Project amounting to Rp3.78 Trillion 29 530 Annual Report CIMB NIAGA 2017
  531. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Employee Code of Conduct & Ethics In the banking industry, trust is a fundamental and essential element. CIMB Niaga strives to uphold integrity at all times through the establishment and implementation of a standard guidelines in the Code of Ethics & Conduct. Code of Ethics & Conduct forms the foundation for employee behaviour and attitude to work professionally and ethically based on basic principles aligned with the Company’s vision, mission and core values as well as applicable internal and external regulations. The Code of Ethics & Conduct applies to all levels of the organization including Board of Commissioners, Board of Directors and all employees. OBJECTIVES OF CODE OF ETHICS & CONDUCT The Code of Ethics & Conduct has the following objectives: 1.As a guideline in the formulation of policies, procedures and management practices within the Bank. 2.To sets out the behaviour, conduct and responsibilities of employees and associated person working for and on behalf of the Bank in upholding corresponding conduct to achieve high standard of professionalism and ethics. 3.As a basic guideline of principles that guides decision making. 4. Outlines specific behavior and conduct that are required or prohibited in establishing relationship with various key stakeholders, such as colleagues, customers, regulators, business partners and the general public. 5.To ensure the consistency and uniformity of employee behaviour and conduct in daily operational activities. MAIN ELEMENTS OF CODE OF ETHICS & CONDUCT The Code of Ethics & Conduct describes 6 (six) ethical principles which consist of: Integrity, Confidentiality, Competence, Conflict of Interest, Fairness and Mutual Respect; whereby these principles are the foundation of employee’s professional interactions. Annual Report CIMB NIAGA 2017 In addition to the 6 (six) ethical principles, the Code also outlines set of standards that reflect exemplary conduct which regarded as an essential guide on how employee interact with all key stakeholders. The main elements of the Code of Ethics & Conduct includes: a. Anti bribery and corruption; b. Insider Trading; c. Fraudulent activates; d. Managing conflict of interest; e. Managing gratification; f. Outside financial interest and employment/external business interest; g. Whistleblowing policy; h. Confidentiality and Proprietary information; i. Use of the Bank’s assets; j. Use of social media; k. Personal dealings with customers; l. Handling customer complaints; m.Compliance and regulatory reporting; n. Money laundering activities; o. Anti-competitive conduct; p. Corporate social responsibility culture. STATEMENT OF CODE OF ETHICS & CONDUCT CIMB Niaga’s Code of Ethics & Conduct applies to all employees of the Bank, including the Board of Directors and Board of Commissioners. All employees are required to thoroughly read and understand the contents of the code and attest an annual commitment statement. The application and implementation of Code of Ethics & Conduct shall be the responsibility of all employees at every level of the organization, as well as one of the Bank’s commitments to implement Good Corporate Governance in achieving its vision and mission statements. SOCIALIZATION AND ENFORCEMENT OF CODE OF ETHICS & CONDUCT In order to nurture employees’ awareness and understanding with regards to the implementation of the Code of Ethics & Conduct, CIMB Niaga engages in regular socialization activities through a various available media. 531
  532. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management EMPLOYEE CODE OF CONDUCT & ETHICS Each year, all employees are obliged to attest a commitment statement of the Code of Ethics & Conduct. To further enhance employees’ understanding of the Code of Ethics & Conduct, the Bank has developed tutorial pack and e-Learning study materials along with evaluation test. In addition, CIMB Niaga’s Code of Ethics & Conduct is also uploaded to the Company’s internal portal (e-Manual) for wider accessibility. CIMB Niaga continuously monitors the implementation of the Code of Ethics & Conduct and imposes strict sanctions for employees who violate the code. CIMB Niaga provides reporting channels through: 1.Internally-managed communication channel by CIMB Niaga, through: • E-mail: ayo.lapor@cimbniaga.co.id • PO Box: PO Box AYO LAPOR JKS 12000 • SMS to: 087829652767 (0878 AYO LAPOR) 2. Communication channel managed by PT Deloitte Indonesia as the designated third-party to manage whistleblower reports, through: • Website: http://ayolapor.tipoffs.info • Email: ayolapor@tipoffs.info • Telephone: 14031 • SMS & WA: +62 822 11356363 • Faksimili: +62 21 2856 5231 • Surat: Ayo Lapor PO BOX 3331 JKP 10033 SANCTIONS AND VIOLATIONS OF CODE OF ETHICS & CONDUCT IN 2017 CIMB Niaga imposes sanctions for any employee who violates the prevailing regulations. During 2017, there are 301 (three hundred and one) employees subject to sanctions with a total of 318 (three hundred and eighteen) letter of sanction issued including Coaching, Letter of Reprimand, Warning Letter 1, Warning Letter 2, Warning Letter 3, and on to Termination of Employment. Total Violation of Code of Ethics & Conduct in 2017 108 69 38 46 45 11 Coaching 1 Reprimand Letter Warning Letter 1 Warning Letter 2 Warning Termination of Letter 3 Employment Rotation Disciplinary Policy and Determination of Sanctions for Violations Sanction imposition for employee violations is governed in the Disciplinary and Determination of Sanctions for Violations Policy. This policy regulates the roles and responsibilities of the Direct Supervisor and unit head, the duties and responsibilities of relevant unit in handling a violation, as well as the duties and responsibilities of the Disciplinary Committee in the determining relevant sanction to a violation. 532 Sanction given to the employees is according to the level of the violation, with start with reprimand letter, written warning letter, to termination of employment. To ensure objectivity, the determination of sanctions at every level of violation is decided by the Disciplinary Committee in accordance with applicable provisions. Annual Report CIMB NIAGA 2017
  533. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Corporate Culture In adapting to social behavioural changes both internally and externally , CIMB Niaga emphasizes the importance of internalizing its corporate core values as the foundation of workplace behaviour. CIMB Niaga’s core values known as “CHESI” stands for: 1.“Customer-Centric”, exist to serve our customers and sell products and services that our customers understand and value, 2.“High Performance”, work hard and work strategically for customers, staff and other stakeholders, 3.“Enabling People”, encourage our people to think big and look wide and ensure that they are appropriately empowered to deliver value, 4. “Strength in Diversity”, respect different cultures, value varied perspectives and recognise diversity as a source of strength, 5.“Integrity”, honest, respectful and professional in everything because integrity is the founding value of CIMB Niaga. The 5 Core Values of the Bank as reflected in CHESI are manifested through the 3 (three) critical behaviours that must be performed consistently by every employee. The 3 (three) Critical Behaviours are: • “Go the extra-mile to delight customers” • “Respect each other, engage openly and work together” • “Recognize each other’s efforts and always back each other up” Annual Report CIMB NIAGA 2017 CIMB Niaga believes that the 3 (three) critical behaviours will support the Bank’s acceleration in facing social behavioural changes, providing excellent service to customers and increasing synergy among individuals, units or functions. In 2017, the process of internalizing corporate core values is done through a number of activities, including: • Board of Directors symbolic act initiatives to discuss and listen to employees’ aspirations directly, building better communication and collaboration. • Established and expanded Informal Leaders and Business Sponsors in various units to actively serve as role models in implementing 3 Critical Behaviours on a daily basis. • Cultural Campaigns, thematic activities related to corporate culture implementation, such as “Culture Day”, passing on “ABC Torch of Recognition” from Directors to top employees to express management appreciation, presenting thank-you cards to employees with positive contributions, environment awareness movement such as “Care with our Home” program, as well as other activities to nurture greater internalization of corporate core values. In addition, CIMB Niaga continuously strives to improve risk and compliance culture through various initiatives, such as, launched the new Code of Ethics & Conduct, whistleblowing campaigns, zero tolerance to fraud campaigns, and internal and external risk management certification for all employees through in-class and digital learning. 533
  534. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Goods and Services Procurement Policy CIMB Niaga adopts a policy related to Procurement of Goods and Services which serves as the main reference for all procurement activities of goods and services conducted by business units within the Bank , both Conventional and Sharia Business Unit. This policy is one realization of the GCG process, namely transparency in the procurement process, whereby the process is made through a bidding process by considering a number of aspects, among others: • Adoption of the transparency principle and avoidance of conflict of interest; • Focus on the goal of obtaining the best quality of goods or services and optimal purchasing efficiency through quality and price comparison offered by vendors. The procurement process is managed by the Strategic Procurement and Administration Management (SPAPM) unit under the Directorate of Strategy & Finance, and involving units within the Bank including Legal, Finance, IAU and Bank Quality Assurance to ensure the GCG process is implemented to the highest standard. All procurement processes follow applicable procedures, including authority, limit approval, classification, and segregation of duties and responsibilities in the process of goods and services procurement within the Bank. ACTIVITIES RELATED TO CRITERIA AND SELECTION OF VENDORS Vendors involved in procurement of goods or services are vendors that have been registered through the vendor verification process prior to entering into business relationship with the Bank for the first time that the Bank intends to avail itself of the services of the vendors, and this will be regularly reviewed. The vendor verification process includes: 1.Ensuring the completeness of the vendor’s business license, in accordance with the prevailing regulations. 2. Conducting site visit at the business location of the vendor. 3. Performing cross check on references provided. 4. Screening vendors by referring to Bank Indonesia Black List and Anti Money Laundering application. Conflict of Interest Management Policy (Including Insider Trading) The Bank has a Conflict Management Policy, which aims to establish rules, identify, mitigate, and manage any potential conflicts of interest that may arise within the Bank resulting from the implementation of activities by the Bank’s business units who obtain information about the Bank, the Bank’s customers, or CIMB Group. 534 This policy regulates the trading procedure of securities of the Bank and CIMB Group and reaffirms the prohibition of Insider Trading in personal securities transactions by employees and the management (in this case the Board of Directors and members of the Board of Commissioners). Specifically for certain periods, this Policy also regulates the Blackout period in which all employees and management are prohibited from conducting transactions of the Bank’s Securities. Annual Report CIMB NIAGA 2017
  535. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Corresponding to this , if the employee and/ or management has conducted a transaction, a notification to the Bank’s Control Room (Corporate Affairs unit) is required no later than 2 (two) days after the transaction occurred. With this policy, the mitigation of using insider information for the personal benefit of employees and management (insiders) is expected. Any employee or management who will transact on the Bank’s or CIMB Group’s Securities (outside the Blackout period) is required to obtain prior written approval from the Bank’s Control Room (Corporate Affairs Unit) no later than 2 (two) business days prior to the transaction plan, and the Control Room of the CIMB Group by filling out an employee transaction request form. Internal Fraud The table below depicts the data on fraud cases committed by management, permanent and nonpermanent employees in relation to the Bank’s business processes and operations whose financial impacts are higher than Rp100,000,000. Such financial impact of these fraudulent activities exclude the funds that may have been subsequently recovered. CIMB Niaga has imposed appropriate sanctions on the personnel committed such fraud. The Anti-Fraud Policy of CIMB Niaga as set forth under the Risk Management section of this Annual Report is part of the Bank’s internal control system in building a culture of compliance and creating a risk awareness of the potential and consequences of fraud at all levels within the organization. The policy governs the framework, governance and implementation of the anti-fraud strategy, which represents controlling fraud by taking into account the characteristics and range of potential fraud activities and which is implemented through the fraud control system. Total Cases Committed by Management (BOC and BOD) Internal Fraud Case Permanent Employees Non-permanent Employees 2016 2017 2016 2017 2016 2017 Resolved - - 8 5 - - In the process of internal resolution - - 2 4 - - Unresolved/Under investigation - - - - - - Already in Legal Proceedings - - 4 2 - - Total Fraud - - 12 11 - - Note: The data represents fraud cases with financial impact higher than Rp100 million. Annual Report CIMB NIAGA 2017 535
  536. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Whistleblowing System As a manifestation of internal control efforts , CIMB Niaga has implemented the whistleblowing system policy in a comprehensive manner in every aspects of business activity. CIMB Niaga has prepared and implemented the whistleblowing system policies since 2011, gradually improving in terms of both the reporting mechanism and the dissemination of the reporting media. To make it more convenient and transparent for the whistleblower to report a violation or indication of fraud, CIMB Niaga on 4 December 2017 appointed PT Deloitte Indonesia as an independent third-party to manage the whistleblowing reports. The implementation mechanism and results of the whistleblowing system results during 2017 are described below. REPORTING CHANNELS Submission of a whistleblowing report may be conducted by any parties, both internal and external, to the Bank. CIMB Niaga provides the following 2 (two) communication channels for such reporting: 1. Internally-managed communication channel by CIMB Niaga, through: • E-mail: ayo.lapor@cimbniaga.co.id • PO Box: PO Box AYO LAPOR JKS 12000 • SMS to: 087829652767 (0878 AYO LAPOR) 2. Communication channel managed by PT Deloitte Indonesia as the designated third-party to manage whistleblower reports, through: • Website: http://ayolapor.tipoffs.info • E-mail: ayolapor@tipoffs.info • Telephone: 14031 • SMS & WA: +62 822 11356363 • Faximile: +62 21 2856 5231 • Mail: PO BOX Ayo Lapor 3331 JKP 10033 536 WHISTLEBLOWER PROTECTION The whistleblower is not required to include his or her identity or proof of violations reported. However, if the whistleblower has evidence as data, information, or an early indication about the violations, this can be included during the reporting. Each whistleblower must have a strong reason for reporting a violation or potential violation, and must act in good faith. The Bank guarantees the confidentiality of the reporter’s identity and protects the whistleblower at the time of reporting or when the report is followed-up by a unit in charge of the investigation, as stipulated in the Bank’s internal policies. To ensure confidentiality, for those reporters who include their identity, the name of the whistleblower is only disclosed to the designated whistleblowing officer. WHISTLEBLOWING HANDLING All reports will be analyzed by a whistleblowing officer. For reports with the identity of the whistleblower, should additional information be required, the whistleblowing officer will initiate a confidential contact with the whistleblower to request the required additional information. In the event the initial information is considered sufficient, the whistleblowing officer submits a report to the working unit in charge for investigation to determine the validity of the report. Subsequently, the whistleblower who submits his or her identity will obtain further information regarding the progress of the report, until the report has been followed-up completely. In the event the report provided is not relevant to the scope of the whistleblowing program, the whistleblowing officer will respond or notify that the incoming report will not be followed up, which will be accompanied by the submission of information to the whistleblower regarding the unit associated with the report. Annual Report CIMB NIAGA 2017
  537. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report The whistleblowing officer will administer the violation report . For the purpose of supervision and the whistleblowing investigation process, the whistleblowing report results are periodically submitted to the Director in charge of Risk Management and the President Director with a copy to the Director in charge of Compliance and the Director in charge of Human Resources. The identity of whistleblower during the process will be kept confidential throughout the follow-up and oversight process. WHISTLEBLOWING MANAGEMENT Based on the Bank’s internal policy, the party appointed to manage the whistleblower report is PT Deloitte Indonesia. WHISTLEBLOWING RESULTS AND FOLLOW-UPS During 2017, there were 98 whistleblowing reports received. All reports have been followed up and completed, with the following details: Whistleblowing Report Status Total WB Report Received 2017 98 A. WB Reports investigated 18 B. WB Reports not investigated (pre-CLOSED) 80 C. WB Reports investigated and concluded (Status CLOSED) 10 D. WB Reports under ongoing investigation (Status OPEN) 8 E. WB Reports PROVEN based on investigation 2 F. WB Reports PROVEN based on investigation which related to FRAUD 2 Annual Report CIMB NIAGA 2017 537
  538. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Corporate Governance Guidelines for Public Companies CIMB Niaga complies with the practice of good corporate governance pursuant to Regulation of the Financial Services Authority (POJK) No. 21/POJK.04/2015 on Corporate Governance Guidelines for Public Companies and Financial Services Authority Circular Letter (SEOJK) No. 32/SEOJK.04/2015 on Corporate Governance Guidelines for Public Companies. These regulations contain 5 (five) aspects, 8 (eight) principles, and 25 (twenty five) recommendations on corporate governance recommended by OJK. CIMB Niaga implements such aspects, principles and recommendations based on the “comply or explain” approach as follows: Aspect Principle Recommendation Relationship of The Public Company with the Shareholders in ensuring the Right of the Shareholders Principle 1 Improve the Implementation Value of the General Meeting of Shareholders (GMS) 1.1 The Public company has technical procedures for opened or closed voting that promote independency and interest of the shareholders. Implementation Comply As an effort to enhance independence, freedom, and confidentiality of shareholders in the voting process, CIMB Niaga adopted a policy of voting at the GMS in private by filling out the voting cards for each agenda. This policy is disclosed in the GMS Rules of Conduct. In the AGM and EGM held in 2017, the voting mechanism was conducted privately with ballot papers. An officer collected the ballot papers filled out by the shareholders, and an independent party, namely the Securities Administration Bureau, PT Sirca Datapro Perdana and Notary, Ashoya Ratam, SH. conducted the vote count. The GMS Rules of Conduct was uploaded on the Bank’s website 21 (twenty one) days prior to the GMS and distributed to the shareholders upon entering the GMS meeting room. 1.2 All members of the Board of Directors and the Board of Commissioners are present at the Annual GMS Explain All members of the Board of Directors and the Board of Commissioners of CIMB Niaga were present at the AGM and EGM dated 25 April 2017, except for 1 (one) Commissioner who was unable to attend due to health reasons. Members of the Board of Directors and Board of Commissioners present may represent the Bank to offer explanations to shareholders on any agenda of the AGM, and the AGM was implemented properly. 1.3 Summary of GMS minutes is available on the public company’s website at least for 1 (one) year. 538 Comply CIMB Niaga uploaded the summary of the minutes of the GMS immediately after the adjournment of the AGM and EGM on 25 April 2017. Summaries of the minutes of GMS from 2013 to 2017 are available on the CIMB Niaga’s website up to the present day, in both Indonesian and English version. Annual Report CIMB NIAGA 2017
  539. Supporting Business Review Aspect Corporate Governance Report Principle Principle 2 Improving Communication Quality of the Public Company with Shareholders or Investors Function and Role of the Board of Commissioners Principle 3 Strengthen the Membership and Composition of the Board of Commissioners Principle 4 Improve the Implementation and the Quality of the Duties and Responsibilities of the Board of Commissioners Annual Report CIMB NIAGA 2017 Corporate Social Responsibility Recommendation Others Corporate Data Consolidated Financial Report Implementation 2 .1 The Public Company has a communication policy with the shareholders or investors. Comply CIMB Niaga regulates its communication policy with the shareholders or investors (customers) in the CIMB Niaga Code of Ethics that has been uploaded to the CIMB Niaga’s website (www. cimbniaga.com). Communication is conducted by the Bank through holding of the GMS, Public Expose, Analyst Meetings, provide quarterly and annual Financial Statements, as well as conducting disclosure of information in an accurate and timely manner. CIMB Niaga also discloses the addresses of head office and branch offices, e-mail addresses and phone numbers on its website and in the Annual Report, Social Media access (Facebook, Twitter, Instagram), Call Center, as channels for the shareholders and investors to communicate with the Bank, easily. 2.2 The Public company discloses its communication policy with the shareholders or investors on the website Comply CIMB Niaga has uploaded its Code of Ethics to CIMB Niaga’s website (www.cimbniaga.com) for public access. 3.1 Determination of the number of Board of Commissioners members shall consider the condition of the Public Company Comply The number of members of the Board of Commissioners of CIMB Niaga is in accordance with the provisions and has considered the needs, condition, and capabilities of the Bank. As of December 2017, the number of Board of Commissioners members of CIMB Niaga was 8 (eight) people, of whom 50% were Independent Commissioners. The number of members of the Board of Commissioners does not exceed the number of members of the Board of Directors. 3.2 Determination of composition of the Board of Commissioners members considers the necessary of diversity, expertise, knowledge and experience. Comply The Board of Commissioners of CIMB Niaga has diverse backgrounds in terms of expertise, knowledge, experience, and citizenship with the objective to support the Bank’s business development. This is illustrated in the profiles of each member of the Board of Commissioners. 4.1 The Board of Commissioners has a self-assessment policy to evaluate its performance Comply The assessment policy of the Board of Commissioners and the Committees under the Board of Commissioners is stipulated in the Charter of the Nomination and Remuneration Committee, accessible through the CIMB Niaga’s website (www.cimbniaga.com). 4.2 The self-assessment policy of the performance of the Board of Commissioners is disclosed in the Annual Report of the Public Company Comply The Board of Commissioners assessment policy is set out in the Attachment to the Charter of the Nomination and Remuneration Committee, and the results of the Board of Commissioners’ assessment are disclosed in the Report on the Implementation of Duties of Board of Commissioners section in this Annual Report. 4.3 The Board of Commissioners has a policy with respect to the resignation of Board of Commissioners members if such member is involved in financial crime. Comply The CIMB Niaga’s Board of Commissioners Charter (point XI.4.) has stipulated that members of the Board of Commissioners who are involved in financial crimes and/or other criminal offenses are required to resign from their positions. 4.4 The Board of Commissioners or the Nomination and Remuneration Committee shall prepare the succession policy in the nomination process of the Board of Directors members. Comply The succession policy has been regulated in the Charter of the Nomination and Remuneration Committee and also disclosed in the Report on the Implementation of Duties of the Nomination and Remuneration Committee in this Annual Report. 539
  540. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management IMPLEMENTATION OF CORPORATE GOVERNANCE GUIDELINES FOR PUBLIC COMPANIES Aspect Function and Role of the Board of Directors Principle Principle 5 Strengthen the Membership and Composition of the Board of Directors Recommendation 5 .1 Determination of the number of Board of Directors members considers the condition of the Public Company and the effectiveness of decision-making Implementation Comply Without prejudice to the effectiveness of decision making by the Board of Directors, the determination of the number of members of the Board of Directors of CIMB Niaga shall consider: - The Bank’s financial condition and ability. - Organizational needs and the complexity of the Bank as the fifth largest Bank in Indonesia As of December 2017, the number of Board of Directors members was 11 (eleven) people. The number of members of the Board of Directors is more than the number of members of the Board of Commissioners. 5.2 Determination of composition of the Board of Directors members considers the necessary of diversity, expertise, knowledge, and experience required Comply The Board of Directors of CIMB Niaga has diverse backgrounds in terms of expertise, knowledge and experience. This is illustrated in the profile of each member of the Board of Directors. The diversity and the number of Directors are required to provide the best possible solution to Bank’s issues, according to the needs, size, and complexity of the Bank’s business. 5.3 Members of the Board of Directors who are responsible for accounting or finance have accounting expertise and/or knowledge Comply The Director of Strategy and Finance of CIMB Niaga, who responsible for accounting and finance, is Mr. Wan Razly Abdullah. He holds a degree in Law and Accounting from the University of Manchester, UK and has experience in several foreign companies as well as being a member of the Institute of Chartered Accountants of England and Wales. Mr Wan Razly Abdullah meets the criteria of having the accounting expertise and knowledge. Principle 6 Improve the Implementation of Quality of Duties and Responsibilities of the Board of Directors 6.1 The Board of Directors has a selfassessment policy to evaluate its own performance Explain In implementing the strategy and monitoring the performance of the Board of Directors (selfassessment), CIMB Niaga applies the Balanced Scorecard approach which is converted into Key Performance Indicators (KPI) using four Balanced Scorecard perspectives, namely Finance, Customer, Internal Process, and People. The success of the Board of Directors’ performance is showed by the sufficient Bank’s Sound Level which is indicated through the aspects of risk profile, Good Corporate Governance (GCG), profitability, and capital. 540 6.2 The self-assessment policy to evaluate the performance of the Board of Directors is disclosed in the Annual Report of the Public Company. Explain The performance assessment of the Board of Directors with the Balanced Scorecard approach converted into KPI has been disclosed in the Report of the Board of Directors Duties Implementation section of this Annual Report. 6.3 The Board of Directors has a policy related to resignation of the Board of Directors members if involved in financial crime. Comply The Board of Directors Charter of CIMB Niaga (point XI.4.) has stipulated that members of the Board of Directors involved in financial crimes and/ or other crimes are required to resign from their positions. Annual Report CIMB NIAGA 2017
  541. Supporting Business Review Aspect Stakeholders ’ Participation Corporate Governance Report Principle Principle 7 Improving Corporate Governance through the Participation of Stakeholders Corporate Social Responsibility Recommendation 7.1 The Public company has a policy to prevent insider trading Others Corporate Data Consolidated Financial Report Implementation Comply To prevent Insider Trading, CIMB Niaga already has a Conflict Management Policy that has been uploaded to the CIMB Niaga’s website (www. cimbniaga.com). This policy establishes the rules, identify, mitigate, and manage any potential conflicts of interest that may arise within the Bank as a result of activities conducted by the Bank’s business units that enable them to obtain information about the Bank, the Bank’s customers, or the CIMB Group. 7.2 The Public Company has an anticorruption and anti-fraud policy Comply CIMB Niaga has regulated the Bank’s anticorruption policies that are included in the CIMB Niaga Code of Conduct. CIMB Niaga has an anti-fraud strategy that is implemented in the form of a fraud control system, using tools that are an elaboration of the 4 (four) pillars namely; Prevention, Detection, Investigation, and Supervision. Further description on anti-corruption and antifraud policies are described in this Annual Report. 7.3 The Public Company has policies concerning selection and capability improvement of suppliers and vendors. Comply CIMB Niaga already has a Procurement of Goods and Services Policy (No. E.04.A.06) as well as Goods and Services Procurement Procedures (No. E.04.A.06.P.01) that are disclosed in the Procurement Policy section of this Annual Report. CIMB Niaga’s Code of Conduct also regulates the relationship with suppliers, vendors, and consultants (partners) that are in collaboration with the Bank, including objective evaluation, prohibition of acceptance of compensation from partners, compliance of the partners with the Bank’s code of conduct as well as consultation and lobbying with partners. Annual Report CIMB NIAGA 2017 7.4 The Public Company has a policy concerning the fulfillment of creditor’s rights. Explain CIMB Niaga shall apply and respect creditor’s rights through equal treatment of all creditors, exercising the rights and obligations in a timely manner, with no hidden corporate information. 7.5 The Public Company has a whistleblowing policy Comply CIMB Niaga already has a Whistleblowing Policy (No. E.08) which is disclosed in this Annual Report. under the same title. 7.6 The Public Company has a longterm incentive policy for the Board of Directors and employees. Comply In 2017, CIMB Niaga obtained the approval of the GMS to execute share buyback of a maximum of 2% of the Paid-in Capital to be used as a stockbased loyalty program which is a long-term incentive for management and employees in the form of Management and Employee Stock Option Program (MESOP). The effective implementation of MESOP will be in 2018. 541
  542. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management IMPLEMENTATION OF CORPORATE GOVERNANCE GUIDELINES FOR PUBLIC COMPANIES Aspect Disclosure of Information Principle Principle 8 Improve the Implementation of Information Disclosure Recommendation Implementation 8 .1 The Public Company benefits from the use of broader information technology other than its website as a means of information disclosure. Comply In addition to the website, CIMB Niaga also utilizes other information technologies such as phone banking, radio, print media, and social media platforms (such as Instagram, Facebook, Twitter, Youtube and Google+) as media channels for disclosure of information. More details of social media activities are disclosed in the Information Access and Corporate Data section of this Annual Report. 8.2 The Annual Report of the Public Company discloses share ownership of at least 5% (five percent), other than disclosure of ultimate shareholders of the Public Company through ultimate and controlling shareholders. 542 Comply CIMB Niaga has no shareholders that own 5% of shares other than ultimate shareholders (CIMB Group), as disclosed in the section of Shares and Other Securities Information in this Annual Report. Annual Report CIMB NIAGA 2017
  543. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report ASEAN Corporate Governance Scorecards Index No A  A.1  A.1.1  A.2    A.2.1 Principles and Recommendations Page Rights of Shareholders Basic Shareholder Rights Does the company pay (interim and final/annual) dividends in an equitable and timely manner; that is, all shareholders are treated equally and paid within 30 days after being (i) declared for interim dividends and (ii) approved by annual general meeting (AGM) for final dividends?  N/A Right to participate in decisions concerning fundamental corporate changes  Do shareholders have the right to participate in: Amendments to the company’s constitution?  383 A.2.2  The authorization of additional shares?  383  A.2.3 The transfer of all or substantially all assets, which in effect results in the sale of the company?  383  A.3 Right to participate effectively in and vote in general shareholder meeting and should be informed of the rules, including voting procedures that govern general shareholder meetings A.3.1  Do shareholders have the opportunity, evidenced by an agenda item, to approve remuneration (fees, allowances, benefit-in-kind and other emoluments) or any increases in remuneration for the non-executive directors/ commissioners?  383  A.3.2  Does the company provide non-controlling shareholders a right to nominate candidates for board of directors/ commissioners?  383  A.3.3  Does the company allows shareholders to elect directors/commissioners individually?  A.3.4 Does the company disclose the voting procedures used before the start of meeting?  385 & 390  A.3.5  Do the minutes of the most recent AGM record that the shareholders were given the opportunity to ask questions and the questions raised by shareholders and answers given recorded? 384 & 388   A.3.6 Does the company disclose the voting results including approving, dissenting, and abstaining votes for all resolutions/each agenda item for the most recent AGM?  A.3.7 Does the company disclose the list of board members who attended the most recent AGM?  384  A.3.8 Does the company disclose that all board members and the CEO (if he is not a board member) attended the most recent AGM? 384  A.3.9  Does the company allow voting in absentia?  384  A.3.10 Did the company vote by poll (as opposed to by show of hands) for all resolutions at the most recent AGM?  384  A.3.11 Does the company disclose that it has appointed an independent party (scrutineers/inspectors) to count and/or validate the votes at the AGM?  385  A.3.12 Does the company make publicly available by the next working day the result of the votes taken during the most recent AGM/EGM for all resolutions?  384-385 & 389  A.3.13 Does the company provide at least 21 days notice for all AGMs and EGMs?  384-385 & 389  A.3.14 Does the company provide the rationale and explanation for each agenda item which require shareholders’ approval in the notice of AGM/circulars and/or the accompanying statement?  384-385 & 389  A.3.15 Does the company give the opportunity for shareholder to place item/s on the agenda of AGM? A.4   A.4.1 In cases of mergers, acquisitions and/or takeovers requiring shareholders’ approval, does the board of directors/ commissioners of the company appoint an independent party to evaluate the fairness of the transaction price? The exercise of ownership rights by all shareholders, including institutional investors, should be facilitated  A.5.1 Does the company disclose its practices to encourage shareholders to engage the company beyond AGM? B.1  B.1.1   386-391  383 Markets for corporate control should be allowed to function in an efficient and transparent manner A.5  B  383-391 Equitable Treatment of Shareholders Shares and Voting Rights  Does the company’s ordinary or common shares have one vote for one share? Annual Report CIMB NIAGA 2017  214  383-395 & 527-530     383  543
  544. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management ASEAN CORPORATE GOVERNANCE SCORECARDS INDEX No  B.1.2  B.2 Page  383   Notice of AGM  B.2.1 Does each resolution in the most recent AGM deal with only one item, i.e., there is no bundling of several items into the same resolution?  B.2.2 Are the company’s notice of the most recent AGM/circulars fully translated into English and published on the same date as the local - language version?    383-395  384-385 & 389 Does the notice of AGM/circulars have the following details:  B.2.3 Are the profiles of directors/commissioners (at least age, academic qualification, date of appointment, experience, and directorships in other listed companies) in seeking election/re-election included?  384-385  B.2.4 Are the auditors seeking appointment/re-appointment clearly identified?  384-385  B.2.5  Were the proxy documents made easily available?  384-385  B.3 Insider trading and abusive self-dealing should be prohibited.  B.3.1 Does the company have policies and/or rules prohibiting directors/commissioners and employees to benefit from knowledge which is not generally available to the market?  534  B.3.2 Are the directors/commissioners required to report their dealings in company shares within 3 business days? 114   B.4 Related party transactions by directors and key executive  B.4.1 Does the company have a policy requiring directors/commissioners to disclose their interest in transactions and any other conflicts of interest?  409, 424, 531, 534  B.4.2 Does the company have a policy requiring a committee of independent directors/commissioners to review material RPTs to determine whether they are in the best interests of the company and shareholders?  397-399  B.4.3 Does the company have a policy requiring board members (directors/commissioners) to abstain from participating in the board discussion on a particular agenda when they are conflicted?  409-424  B.4.4 Does the company have policies on loans to directors and commissioners either forbidding this practice or ensuring that they are being conducted at arm’s length basis and at market rates?  B.5  412 & 426 Protecting minority shareholders from abusive actions  B.5.1 Does the company disclose that RPTs are conducted in such a way to ensure that they are fair and at arms’ length?  214 & 517  B.5.2 In case of related party transactions requiring shareholders’ approval, is the decision made by disinterested shareholders?  214 & 517 C  C.1     Role of Stakeholders The rights of stakeholders that are established by law or through mutual agreements are to be respected. 517, 518, 527, 590591 Does the company disclose a policy and practices that address : 517 & 606608   C.1.1 The existence and scope of the company’s efforts to address customers’ welfare?  C.1.2 Supplier/contractor selection procedures?  C.1.3 The company’s efforts to ensure that its value chain is environmentally friendly or is consistent with promoting sustainable development?  583-605  C.1.4 The company’s efforts to interact with the communities in which they operate?  583-605  C.1.5 The company’s anti-corruption programmes and procedures?  518, 531-532  C.1.6 How creditors’ rights are safeguarded?  C.1.7 Does the company have a separate report/section that discusses its efforts on environment/economy and social issues?  C.2 Where stakeholder interests are protected by law, stakeholders should have the opportunity to obtain effective redress for violation of their rights.  C.2.1 Does the company provide contact details via the company’s website or Annual Report which stakeholders (e.g. customers, suppliers, general public etc.) can use to voice their concerns and/or complaints for possible violation of their rights?  C.3  C.3.1 544 Principles and Recommendations Where the company has more than one class of shares, does the company publicise the voting rights attached to each class of shares (e.g. through the company website reports/the stock exchange/the regulator’s website)?  534 518   518, 583608  527, 76, 121 Mechanisms for employee participation should be permitted to develop. Does the company explicitly disclose the policies and practices on health, safety and welfare for its employees?  342-359 & 588-591 Annual Report CIMB NIAGA 2017
  545. Supporting Business Review Corporate Governance Report No Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Principles and Recommendations  C.3.2 Does the company explicitly disclose the policies and practices on training and development programmes for its employees?  C.3.3 Does the company have a reward/compensation policy that accounts for the performance of the company beyond short-term financial measures?  C.4 Stakeholders including individual employee and their representative bodies, should be able to freely communicate their concerns about illegal or unethical practices to the board and their rights should not be compromised for doing this Page  342-359 & 588-591  436-443  C.4.1 Does the company have a whistleblowing policy which includes procedures for complaints by employees and other stakeholders concerning alleged illegal and unethical behaviour and provide contact details via the company’s website or annual report  536-537  C.4.2 Does the company have a policy or procedures to protect an employee/person who reveals alleged illegal/unethical behaviour from retaliation?  536-537 D  D.1 Disclosure and Transparency   Transparent Ownership Structure    D.1.1 Does the information on shareholdings reveal the identity of beneficial owners, holding 5% shareholding or more?  94-95, 115117 & 460  D.1.2 Does the company disclose the direct and indirect (deemed) shareholdings of major and/or substantial shareholders?  94-95, 115117 & 460 D.1.3  Does the company disclose the direct and indirect (deemed) shareholdings of directors (commissioners)? 116   D.1.4 Does the company disclose the direct and indirect (deemed) shareholdings of senior management?  116  D.1.5 Does the company disclose details of the parent/holding company, subsidiaries, associates, joint ventures and special purpose enterprises/vehicles (SPEs)/(SPVs)?  97  D.2   Quality of Annual Report   Does the company’s annual report disclose the following items:  D.2.1 Corporate Objectives  D.2.2 Financial Performance indicators  D.2.3 Non-Financial Performance indicators  D.2.4 Dividend Policy  D.2.5 Biographical details (at least age, academic qualifications, date of first appointment, relevant experience, and any other directorships of listed companies) of all directors/commissioners  100-110  D.2.6 Attendance details of each director/commissioner in all directors/commissioners meetings held during the year  446-459  D.2.7 Total remuneration of each member of the board of directors/commissioners  436-443    D.2.8 D.3  Corporate Governance Confirmation Statement Does the Annual Report contain a statement confirming the company’s full compliance with the code of corporate governance and where there is non-compliance, identify and explain reasons for each such issue? Disclosure of Related Party Transactions (RPTs)  D.3.1 Does the company disclose its policy covering the review and approval of material RPTs?  D.3.2 Does the company disclose the name, relationship, nature and value for each material RPTs?  D.4  D.4.1  D.5   Directors and Commissioners dealings in the shares of the company Does the company disclose trading in the company’s shares by insiders? External Auditor and Auditor Report  9-16, 40-45, 130-173  212 & 516    573    214 & 397-399 214, Annual Financial Report page 5/1735/176     116 & 534   Where the same audit firm is engaged for both audit and non-audit services  D.5.1 Are the audit and non-audit fees disclosed?  D.5.2 Does the non-audit fee exceed the audit fees?  D.6 87   18-21, 172-199 Medium of Communications 121 & 514  514    Does the company use the following modes of communication?  D.6.1 Quarterly Reporting Annual Report CIMB NIAGA 2017 515 & 527530  545
  546. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management ASEAN CORPORATE GOVERNANCE SCORECARDS INDEX No Principles and Recommendations Page  D.6.2 Company Website  121, 515 & 527-530  D.6.3 Analyst’s briefing  527-530  D.6.4 Media briefings/press conferences 527-530   D.7   Timely filing/release of annual/financial reports  D.7.1 Are the audited annual financial report/statement released within 120 days from the financial year end?  D.7.2 Is the annual report released within 120 days from the financial year end?  D.7.3 Is the statement that the Annual Financial Report has been presented correctly and fairly, confirmed by the Board of Commissioners or the Board of Directors and/or related officials of the company.  D.8   Annual Financial Report page 2-4  70-71   Annual Financial Report page 2-4 Company Website   Does the company have a website disclosing up-to-date information on the following:    D.8.1 Financial statements/reports (latest quarterly)) 121 & 515   D.8.2 Materials provided in briefings to analysts and media 121 & 515  D.8.3 Downloadable Annual Report 121& 515   D.8.4 Notice of AGM and/or EGM  121, 384385 & 390  D.8.5 Minutes of AGM and/or EGM  121, 384385 & 390  D.8.6 Company’s constitution (company’s by-laws, memorandum and association) 121 & 515  D.9  D.9.1 E  E.1     Investor Relations Does the company disclose the contact details (e.g. telephone, fax, and email) of the officer/office responsible for investor relations? 121 & 527530 RESPONSIBILITIES OF THE BOARD   Board Duties and Responsibilities   Clearly defined board responsibilities and corporate governance policy   E.1.1 Does the company disclose its corporate governance policy/board charter? 401 & 417  E.1.2 Are the types of decisions requiring board of directors/commissioners’ approval disclosed? 397-399 & 417-419  E.1.3  Are the roles and responsibilities of the board of directors/commissioners clearly stated? 397-399 & 417-419   Corporate Vision/Mission  E.1.4  Does the company have an updated Vision and Mission statement?  E.1.5 Does the board of directors play a leading role in the process of developing and reviewing the company’s strategy at least annually?  417-421 & 447-457  E.1.6 Does the board of directors have a process to review, monitor and oversee the implementation of the corporate strategy?  417-421 & 447-457  E.2   87 Board Structure   Code of Ethics or Conduct   E.2.1 Are the details of the code of ethics or conduct disclosed? 531-532  E.2.2 Are all directors/commissioners, senior management and employees required to comply with the code/s?  531-532  E.2.3 Does the company have a process to implement and monitor compliance with the code/s of ethics or conduct? 531-532   Board Structure & Composition    E.2.4 Do independent directors/commissioners make up at least 50% of the board of directors/commissioners? 396, 415 & 427-429  E.2.5 Does the company have a term limit of nine years or less or 2 terms of five years1) each for its independent directors/commissioners? 414-415  E.2.6 Has the company set a limit of five board seats that an individual independent/non-executive director/ commissioner may hold simultaneously? 407-409  E.2.7 Does the company have any executive directors who serve on more than two boards of listed companies outside of the group? 424  The five years term must be required by legislation which pre-existed the introduction of the ASEAN Corporate Governance Scorecard in 2011 1) 546 Annual Report CIMB NIAGA 2017
  547. Supporting Business Review Corporate Governance Report No   Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Principles and Recommendations Page Nomination Committee (NC)  E.2.8 Does the company have a Nominating Committee? 468-473   E.2.9 Is the Nominating Committee comprised of a majority of independent directors/commissioners?  468-473  E.2.10 Is the chairman of the Nominating Committee an independent director/commissioner?  468-473  E.2.11  Does the company disclose the terms of reference/governance structure/charter of the Nominating Committee? 468-473  E.2.12 Is the meeting attendance of the Nominating Committee disclosed and if so, did the Nominating Committee meet at least twice during the year? 468-473   Remuneration Committee (RC)/Compensation Committee  E.2.13 Does the company have a Remuneration Committee?  468-473  E.2.14 Is the Remuneration Committee comprised of a majority of independent directors/commissioners? 468-473   E.2.15 Is the chairman of the Remuneration Committee an independent director/commissioner?  468-473  E.2.16 Does the company disclose the terms of reference/governance structure/charter of the Remuneration Committee? 468-473 E.2.17  Is the meeting attendance of the Remuneration Committee disclosed and, if so, did the Remuneration Committee meet at least twice during the year? 468-473   Audit Committee (AC)  E.2.18 Does the company have an Audit Committee? 462-467   E.2.19 Is the Audit Committee comprised entirely of non-executive directors/commissioners with a majority of independent directors/commissioners? 462-467   E.2.20 Is the chairman of the Audit Committee an independent director/commissioner? 462-467   E.2.21 Does the company disclose the terms of reference/governance structure/charter of the Audit Committee? 462-467   E.2.22 Does at least one of the independent directors/commissioners of the committee have accounting expertise (accounting qualification or experience)? 462-467   E.2.23 Is the meeting attendance of the Audit Committee disclosed and, if so, did the Audit Committee meet at least four times during the year? 462-467   E.2.24 Does the Audit Committee have primary responsibility for recommendation on the appointment, and removal of the external auditor? 462-467   E.3   Board Processes Board Meetings and Attendance E.3.1 Are the board of directors meeting scheduled before the start of financial year?  E.3.2 Does the board of directors/commissioners meet at least six times during the year?  E.3.3 Has each of the directors/commissioners attended at least 75% of all the board meetings held during the year?  E.3.4 Does the company require a minimum quorum of at least 2/3 for board decisions?  E.3.5 Did the non-executive directors/commissioners of the company meet separately at least once during the year without any executives present?    E.3.6 Access to Information Are board papers for board of directors/commissioners meetings provided to the board at least five business days in advance of the board meeting?  E.3.7 Does the company secretary play a significant role in supporting the board in discharging its responsibilities? E.3.8  Is the company secretary trained in legal, accountancy or company secretarial practices and has kept abreast on relevant developments?     Board Appointment and Re-Election 444 & 447 444-459 444-459 444 & 447 444-445    444  495-498 497    E.3.9 Does the company disclose the criteria used in selecting new directors/commissioners?  401-402 & 419-420  E.3.10 Did the company describe the process followed in appointing new directors/commissioners? 402 & 420  E.3.11 Are all directors/commissioners subject to re-election every 3 years; or 5 years for listed companies in countries whose legislation prescribes a term of 5 years2) each? 409-410 & 425 The five years term must be required by legislation which pre-existed the introduction of the ASEAN Corporate Governance Scorecard in 2011 2) Annual Report CIMB NIAGA 2017 547
  548. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management ASEAN CORPORATE GOVERNANCE SCORECARDS INDEX No   Principles and Recommendations Page Remuneration Matters    E.3.12 Does the company disclose its remuneration (fees, allowances, benefit-in-kind and other emoluments) policy/ practices (i.e. the use of short term and long term incentives and performance measures) for its executive directors and CEO?  436-443  E.3.13 Is there disclosure of the fee structure for non-executive directors/commissioners? 438-439   E.3.14 Do the shareholders or the Board of Directors approve the remuneration of the executive directors and/or the senior executives? 436-443  E.3.15 Does the company have measurable standards to align the performance-based remuneration of the executive directors and senior executive with long-term interests of the company, such as claw back provision and deferred bonuses? 436-443   Internal Audit    E.3.16 Does the company have a separate internal audit function?  E.3.17 Is the head of internal audit identified or, if outsourced, is the name of the external firm disclosed?  E.3.18 Does the appointment and removal of the internal auditor require the approval of the Audit Committee?    505-509 506  Risk Oversight 464-465   E.3.19  Does the company establish a sound internal control procedures/risk management framework and periodically review the effectiveness of that framework? 234-337, 519-520 & 521-522  E.3.20 Does the Annual Report/Annual CG Report disclose that the board of directors/commissioners has conducted a review of the company’s material controls (including operational, financial and compliance controls) and risk management systems? 519-520 & 521-522 E.3.21  Does the company disclose the key risks to which the company is materially exposed to (i.e. financial, operational including IT, environmental, social, economic)?  E.3.22 Does the Annual Report/Annual CG Report contain a statement from the board of directors/commissioners or Audit Committee commenting on the adequacy of the company’s internal controls/risk management systems?  E.4   Board Chairman   Do different persons assume the roles of chairman and CEO? Is the chairman an independent director/commissioner?  E.4.3 Is any of the directors a former CEO of the company in the past 2 years?  E.4.4 Are the roles and responsibilities of the chairman disclosed?    E.4.6  E.5   100 & 105   100 105-110 399 Lead Independent Director   If the Chairman is not independent, has the Board appointed a Lead/Senior Independent Director and has his/her role been defined? - Skills and Competencies   Does at least one non-executive director/commissioner have prior working experience in the major sector that the company is operating in?  100-110 Board Performance   Directors Development    E.5.1 Does the company have orientation programmes for new directors/commissioners? 403 & 421  E.5.2 Does the company have a policy that encourages directors/commissioners to attend on-going or continuous professional education programmes? 403-407 & 421-423   CEO/Executive Management Appointments and Performance    E.5.3 Does the company disclose the process on how the board of directors/commissioners plans for the succession of the CEO/Managing Director/President and key management? 473  E.5.4 Does the board of directors/commissioners conduct an annual performance assessment of the CEO/Managing Director/President?  435    E.5.5    E.5.6 548    E.4.2  E.4.5 573 People on the Board  E.4.1   519-520 Board Appraisal   Did the company conduct an annual performance assessment of the board of directors/commissioners and disclose the criteria and process followed for the assessment? Director Appraisal 435-436   Did the company conduct an annual performance assessment of the individual directors/commissioners and disclose the criteria and process followed for the assessment? 435-436 Annual Report CIMB NIAGA 2017
  549. Supporting Business Review Corporate Governance Report No    E.5.7 Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Principles and Recommendations Did the company conduct an annual performance assessment of the board committees and disclose the criteria and process followed for the assessment? Level 2 – BONUS ITEMS (B)A.  (B)A.1  (B)A.1.1 (B)B  (B)B.1  (B)B.1.1 (B)C  (B)C.1  (B)C.1.1 (B)D.  (B)D.1 Page Committee Appraisal 412-413 & 425   RIGHTS OF SHAREHOLDERS   Right to participate effectively in and vote in general shareholders meeting and should be informed of the rules, including voting procedures, that govern general shareholders meeting   Does the company practice secure electronic voting in absentia at the general meetings of shareholders? 383 EQUITABLE TREATMENT OF SHAREHOLDERS   Notice of AGM   Does the company release its notice of AGM (with detailed agendas and explanatory circulars), as announced to the Exchange, at least 28 days before the date of the meeting?  384-385   ROLE OF STAKEHOLDER     Does the company adopt an internationally recognized reporting framework for sustainability (i.e. GRI, Integrated Reporting, SASB)? 518, Sustainability Report DISCLOSURE AND TRANSPARENCY        (B)D.1.1 Are the audited annual financial report/statement released within 60 days from the financial year end? Annual Financial Report page 2-4  (B)D.1.2 Does the company disclose details of remuneration of the CEO? 439-440  (B)E. RESPONSIBILITIES OF THE BOARD    (B)E.1 Board Competencies and Diversity    (B)E.1.1 Does the company have at least one female independent director/commissioner? (B)E.1.2 Does the company have a policy and disclose measurable objectives for implementing its board diversity and report on progress in achieving its objectives? Board Structure Is the Nominating Committee comprise entirely of independent directors/commissioners?  (B)E.2.2 Does the Nominating Committee undertake the process of identifying the quality of directors aligned with the company’s strategic directions?  (B)E.3.1  (B)E.4  (B)E.4.1  (B)E.5  (B)E.5.1 427-429    (B)E.2 (B)E.2.1   (B)E.3 102, 396 & 427-429  468-473   420   Board Appointments and Re-Election Does the company use professional search firms or other external sources of candidates (such as director databases set up by director or shareholder bodies) when searching for candidates to the board of directors/ commissioners?  473     Board Appointments and Re-Election Do independent non-executive directors/commissioners make up more than 50% of the board of directors/ commissioners for a company with independent chairman?  414-415   Risk Oversight Does the board describe its governance process around IT issues including disruption, cyber security, disaster recovery, to ensure that all key risks are identified, managed and reported to the board? 360-369     (B)E.6 Board Performance (B)E.6.1  Does the company have a separate board level Risk Committee? LEVEL 2 – PENALTY ITEMS  474-478 & 485-486   RIGHTS OF SHAREHOLDERS    (P)A.1 Basic Shareholder Right   (P)A.1.1 Did the company fail or neglect to offer equal treatment for share repurchases to all shareholders? (P)A Annual Report CIMB NIAGA 2017 549
  550. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management ASEAN CORPORATE GOVERNANCE SCORECARDS INDEX No (P)A.2  (P)A.2.1 (P)A.3 Principles and Recommendations Page Shareholders, including institutional shareholders, should be allowed to consult with each other on issues concerning their basic shareholder rights as defined in the Principles, subject to exceptions to prevent abuse.   Is there evidence of barriers that prevent shareholders from communicating or consulting with other shareholders?   Right to participate effectively in and vote in general shareholders meeting and should be informed of the rules, including voting procedures, that govern general shareholders meeting  (P)A.3.1 Did the company include any additional and unannounced agenda item into the notice of AGM/EGM?  (P)A.3.2 Did the Chairman of the Board, Audit Committee Chairman and CEO attend the most recent AGM?  (P)A.4 Capital structures and arrangements that enable certain shareholders to obtain a degree of control disproportionate to their equity ownership should be disclosed    (P)A.4.1 Shareholders Agreement?    (P)A.4.2 Voting Cap?    (P)A.4.3 Multiple Voting Rights?    (P)A.5  (P)A.5.1 (P)B  (P)B.1  (P)B.1.1  P(B).2   Capital structures and arrangements that enable certain shareholders to obtain a degree of control disproportionate to their equity ownership should be disclosed. Is a pyramid ownership structure and/or cross holding structure apparent?   EQUITABLE TREATMENT OF SHAREHOLDERS   Insider trading and abusive self-dealing should be prohibited   Has there been any conviction of insider trading involving directors/commissioners, management and employees in the past three years? Protecting minority shareholders from abusive action  P(B).2.1 Has there been any cases of non compliance with the laws, rules and regulations pertaining to material related party transactions in the past three years?  P(B).2.2 Were there any RPTs that can be classified as financial assistance (i.e not conducted at arms length) to entities other than wholly-owned subsidiary companies?   ROLE OF STAKEHOLDERS   P(C)  (P)C.1  (P)C.1.1 The rights of stakeholders that are established by law or through mutual agreements are to be respected Have there been any violations of any laws pertaining to labour/employment/consumer/insolvency/commercial/ competition or environmental issues?    P(C).2 Where stakeholders participate in the corporate governance process, they should have access to relevant, sufficient and reliable information on a timely and regular basis    P(C)2.1 Has the company faced any sanctions by regulators for failure to make announcements within the requisite time period for material events?   DISCLOSURE AND TRANSPARENCY   Sanctions from regulator on financial reports    (P)D.1.1 Did the company receive a “qualified opinion” in its external audit report?    (P)D.1.2 Did the company receive an “adverse opinion” in its external audit report?    (P)D.1.3 Did the company receive a “disclaimer opinion” in its external audit report?    (P)D.1.4 Has the company in the past year revised its financial statements for reasons other than changes in accounting policies?   (P)D  (P)D.1 (P)E  (P)E.1 RESPONSIBILITIES OF THE BOARD Compliance with listing rules, regulations and applicable laws  (P)E.1.1 Is there any evidence that the company has not complied with any listing rules and regulations over the past year apart from disclosure rules?    (P)E.1.2 Have there been any instances where non-executive directors/commissioner have resigned and raised any issues of governance-related concerns?   550 Annual Report CIMB NIAGA 2017
  551. Supporting Business Review Corporate Governance Report No Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Principles and Recommendations  (P)E.2 Board Structure (P)E.2.1 Does the Company have any independent directors/commissioners who have served for more than nine years or two terms of five years1) each (which ever is higher) in the same capacity?  (P)E.2.2 Did the company fail to identify who are the independent director(s)/commissioner(s)?  (P)E.2.3 Does the company have any independent directors/non-executive/commissioners who serve on a total of more than five boards of publicly-listed companies?  (P)E.3  (P)E.3.1  (P)E.4 External Audit Page     Is any of the directors or senior management a former employee or partner of the current external auditor (in the past 2 years)? Board Structure and Composition    (P)E.4.1 Has the chairman been the company CEO in the last three years?    (P)E.4.2 Do independent non-executive directors/commissioners receive options, performance shares or bonuses?   The five years term must be required by legislation which pre-existed before the introduction of the ASEAN Corporate Governance Scorecard in 2011 1) Annual Report CIMB NIAGA 2017 551
  552. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Integrated Governance Implementation Report The Financial Services Authority issued POJK No .18/ POJK.03/2014, dated 18 November 2014 and SEOJK No. 15/SEOJK.03/2015, dated 25 May 2015 on the Implementation of Integrated Governance (TKT) for Financial Conglomerates. These provisions govern the establishment of the Financial Conglomerate, the appointment of the Main Entity in a financial conglomerate and the implementation of TKT in a comprehensive and effective manner. Good corporate governance in the business activities of a financial conglomerate will enhance the performance of the financial conglomerate and its compliance with the prevailing laws and regulations, as well as with the applicable ethical values in the financial services industry. In addition, integrated governance for a financial conglomerate is expected to boost the sustainable stability of the financial system, ultimately enhancing competitiveness in the financial services industry. WORK PROGRAM OF TKT IN 2018 1. Ensure the structure of TKT in the CIMB Indonesia Financial Conglomerate has complied with the principles and provisions of integrated governance, both at the level of the Board of Commissioners, the Board of Directors, Committees, Integrated Work Units as well as policies and procedures of each entity. 2. Disseminate information on the implementation of TKT and the results of self-assessment of the application of TKT to the stakeholders through the Annual Report. 3. CIMB Niaga as the Main Entity aligns or updates the policies and procedures related to the implementation of TKT with other entities in the Financial Conglomerate of CIMB Indonesia. 4. Disseminate the TKT principles in collaboration with the relevant work units. 5. Conduct self-assessment on the implementation of TKT in the Financial Conglomerate of CIMB Indonesia and report the findings to regulators and other respective parties. 6.Ensure that the management composition of each entity in the CIMB Indonesia Financial Conglomerate has complied with the prevailing regulations. 552 7. In relation to the strategic plan of the management, a review of the membership structure of the CIMB Indonesia Financial Conglomerate will be conducted. WORK REALIZATION OF TKT IN 2017 1. Conducted self-assessment on TKT implementation in the CIMB Indonesia Financial Conglomerate. 2. Submitted the following reports to the regulators: a. TKT Implementation Self-Assessment Report; b. TKT Implementation Annual Report; c. Integrated Risk Profile Report; d. Integrated Capital Report. 3. Made adjustments with members of the Financial Conglomerate in terms of reporting, preparing, and updating of internal policies and procedures related to the implementation of TKT in each Financial Services Institution, which includes the functions of Internal Audit, Risk Management, and Compliance. 4. In accordance with the directives of the OJK, CIMB Niaga, as the Main Entity, has established the CIMB Integrated Reporting System (CIRS), which can be accessed by each financial services institution in the CIMB Indonesia Financial Conglomerate. The automation of the system is expected to support the effectiveness of reporting in an integrated manner. 5. Held TKT Committee meetings 2 (two) times in 2017 on 8 February 2017 and 31 July 2017. During the meetings, the TKT Committee received and approved the Integrated Risk Profile of CIMB Indonesia Financial Conglomerate, Integrated Capital Adequacy, Integrated Internal Audit, Integrated Compliance and Self-assessment on the Implementation of Integrated Governance, which was followed up by submission to the OJK by the Main Entity. 6. Drew up improvement plans/mitigation plans for several significant issues that had been reported through the Self-assessment Report on the Implementation of the Integrated Governance of the CIMB Indonesia Financial Conglomerate to the OJK, including : a.Fulfillment of Independent Commissioner position in one of the entity members of the CIMB Indonesia Finance Conglomerate to serve Annual Report CIMB NIAGA 2017
  553. Supporting Business Review Corporate Governance Report Corporate Social Responsibility as a member of the TKT Committee , no later than September 2018. b.Fulfillment of the composition of shareownership in one of the entity of the CIMB Indonesia Financial Conglomerate, in which foreign ownership is only allowed for 85% of the paid- up capital, with 15% being owned by domestic parties. TKT IMPLEMENTATION ASSESSMENT REPORT TKT Implementation Assessment Method TKT implementation assessment is conducted every semester based on self-assessment method, with reference to the Circular Letter of OJK No.15/ SEOJK.03/2015 on the Implementation of Integrated Governance for Financial Conglomerate. The assessment is conducted on 3 (three) governance aspects, namely structure, process and outcome of the following 7 (seven) factors of TKT implementation assessment: 1. Implementation of duties and responsibilities of the Board of Directors of the Main Entity, 2. Implementation of duties and responsibilities of the Board of Commissioners of the Main Entity, 3. Duties and responsibilities of the TKT Committee, 4.Duties and responsibilities of the Integrated Compliance Unit ICU. Others Corporate Data Consolidated Financial Report 5.Duties and responsibilities of the Integrated Internal Audit Unit, 6. Implementation of Integrated Risk Management, 7. Preparation and implementation of the TKT Charter. Assessment of the implementation of TKT is conducted with due regard to the significance and materiality of factors in the TKT assessment and the impact of strengths and/or weaknesses in the Integrated Governance in the Financial Conglomerate. The TKT self-assessment process is performed by members of the TKT Committee and Integrated Risk Management Committee by evaluating the structure, process and outcome of TKT in each assessment factor. In addition, in the process of self-assessment of TKT implementation, CIMB Niaga as the Main Entity takes into consideration the data and other information obtained from other work units, such as Risk Management, Internal Audit, Corporate Affairs, Human Resources, Anti Fraud Management, as well as other work units in the subsidiaries and affiliated companies, to be used as a validation factor in the assessment of TKT implementation. TKT Implementation Assessment Results The following are the results of TKT implementation assessment in Semester I and II of 2017: Integrated Governance Implementation Self-Assessment Results Rating Rating Definition Integrated corporate governance by the financial conglomerate is rated good, in overall. This is reflected in the adequate adoption of the TKT principles. 2 (GOOD) However, there are still weaknesses in TKT implementation; in general, the weaknesses are not significant and can be resolved through routine measures by the Main Entity and/or Financial Institution members of the CIMB Indonesia Financial Conglomerate. Based on the above assessment results, Integrated Governance by the CIMB Indonesia Financial Conglomerate is considered generally well. This is reflected in the adequate fulfillment of the three TKT aspects, namely structure, process, and outcome. The adequate fulfillment of structure, as well as the effectiveness of TKT processes resulted in a satisfactory outcome for TKT implementation at the CIMB Indonesia Financial Conglomerate, which is reflected in its performance, transparency of financial reporting, and implementation of functions of the Integrated Compliance Unit, the Integrated Internal Audit Unit, and Integrated Risk Management Unit. However, there are still weaknesses in the implementation of TKT, which in generally are not significant and can be resolved through measures by the Main Entity and/or Financial Institution members of the CIMB Indonesia Financial Conglomerate. Annual Report CIMB NIAGA 2017 553
  554. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management INTEGRATED GOVERNANCE IMPLEMENTATION REPORT STRUCTURE OF FINANCIAL CONGLOMERATE CIMB Group Sdn Bhd , as the ultimate shareholder, appointed CIMB Niaga as the Main Entity on 13 February 2015 and determined the Financial Services Institutions as the members of the CIMB Indonesia Financial Conglomerate, thus the structure of the CIMB Indonesia Financial Conglomerate is as follows: Main Entity (ME) : PT Bank CIMB Niaga Tbk 1. PT CIMB Securities Indonesia (CSI) 2. PT CIMB Pricipal Asset Management (CPAM) 3. PT CIMB Niaga Auto Finance (CNAF) Members SHARE-OWNERSHIP STRUCTURE The Financial Institution’s share ownership structure in the financial conglomerate of CIMB Indonesia, there is only 1 (one) Financial Institution is directly owned by CIMB Niaga Bank, namely CNAF at 99.9%, while 2 (two) other Financial Institution members, namely CSI and CPAM are affiliate parties of Bank CIMB Niaga. The detail share ownership structure of the CIMB Indonesia Financial Conglomerate can be viewed in the following illustration. Financial Conglomerate Holding Entity CIMB Group Sdn Bhd Subsidiary Related Party CIMB-Principal Asset Mangement Bhd (MY) CIMB Securities International Pte. Ltd. (SG) CIMB Securities (Singapore) Pte. Ltd. (SG) PT Commerce Kapital Public MANAGEMENT STRUCTURE Based on POJK No.18/POJK.03/2014 on the Implementation of Governance for Financial Conglomerate, the following is the management structure of the CIMB Indonesia Financial Conglomerate: Entities TKT Committee Compliance Function Internal Audit Function Risk Management Function CIMB Niaga √ √ √ √ CIMB Auto Finanace (CNAF) √ √ √ √ CIMB Securities Indonesia (CSI) √ √ √ √ CIMB Principal Asset Management (CPAM) √ √ √ √ 554 Annual Report CIMB NIAGA 2017
  555. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Main Entity : PT Bank CIMB Niaga Tbk Board of Commissioners No. Name Position 1 Dato’ Sri Nazir Razak President Commissioner 2 Glenn Muhammad Surya Yusuf Vice President Commissioner 3 Pri Notowidigdo Independent Commissioner 4 Zulkifli M. Ali Independent Commissioner 5 David Richard Thomas Commissioner 6 Armida Salsiah Alisjahbana Independent Commissioner 7 Jeffrey Kairupan Independent Commissioner 8 Ahmad Zulqarnain Onn*) Commissioner 9 Tengku Dato’ Sri Zafrul Tengku Abdul Aziz**) Commissioner *) Resigned effective since the EGMS, 24 August 2017 **) Appointed in the EGMS on 24 August 2017 and effective serves as Commissioner on 16 March 2018 Duties and Responsibilities of the Board of Commissioners of the Main Entity Supervise the implementation of TKT by conducting the following: 1. Approve the TKT Charter prepared by the Board of Directors of the Main Entity; 2. Monitor corporate governance of each member of the CIMB Indonesia Conglomerate to be in accordance with the TKT Charter; 3.Monitor the implementation of duties and responsibilities of the Board of Directors of the Main Entity, as well as giving direction and advice to the Board of Directors of the Main Entity on the implementation of TKT Charter; 4.Evaluate the TKT Charter and its operating guidelines; Board of Directors No. 5.Provide direction for the improvement of TKT Charter and its operating guidelines; 6. Submit recommendations from the TKT Committee to the Board of Directors of the Main Entity on the implementation of TKT by members of the CIMB Indonesia Financial Conglomerate; 7.Establish the TKT Committee to support the effectiveness of the implementation of duties of the Board of Commissioners which will be governed in a separate section; 8. Organise meetings regularly at least once every semester. Name Position 1 Tigor M. Siahaan President Director 2 Wan Razly Abdullah Director 3 Rita Mas’Oen Director 4 Megawati Sutanto Director 5 Vera Handajani Director 6 John Simon Director 7 Lani Darmawan Director 8 Fransiska Oei Director 9 Hedy Lapian Director 10 Pandji P. Djajanegara Director 11 Rahardja Alimhamzah*) Director * Has effectively served as a member of the Board of Directors from the close of the EGM on 24 August 2017 Annual Report CIMB NIAGA 2017 555
  556. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management INTEGRATED GOVERNANCE IMPLEMENTATION REPORT Duties and Responsibilities of the Board of Directors of the Main Entity 1 . Ensure proper implementation of TKT in the CIMB Indonesia Financial Conglomerate; 2. Prepare the TKT Charter to be approved by the Board of Commissioners of the Main Entity; 3.Prepare the operating guidelines required to support the implementation of the TKT Charter, including, but not limited to: a. Integrated Risk Management Guidelines; b. Integrated Compliance Guidelines; c. Integrated Internal Audit Guidelines 4. Direct, monitor, and evaluate the implementation of the TKT Charter; 5. Follow up the direction and advice from the Board of Commissioners of the Main Entity in order to improve the TKT Charter and its implementation; 6. Ensure that the audit findings and recommendations from the Integrated Internal Audit and the External Audit, and the supervision results from the OJK and other authorities have been followed up by the Financial Institutions of the CIMB Indonesia Financial Conglomerate; 7. Report on the TKT Self-Assessment (semi-annually) and the TKT Annual Report; 8. Appoint a unit in the organisational of the Main Entity to be responsible for coordinating the implementation of TKT in the CIMB Indonesia Financial Conglomerate. Sharia Supervisory Board No. Name Position 1 M. Quraish Shihab Chairman 2 Fathurrahman Djamil Member 3 Yulizar Djamaluddin Sanrego Member Duties and Responsibilities of the Sharia Supervisory Board Ensure the implementation of TKT shall not conflict with sharia principles. Financial Institution Member: PT CIMB Securities Indonesia Board of Commissioners Position Name Description President Commissioner Inarno Djajadi Resigned effectively as of 31 October 2017 Commissioner Chan Swee Liang Carolina - Kong Sooi Lin - Malcolm Koo Chin Wei effective since 6 September 2017 Board of Directors Position Name President Director Harry M. Supoyo Deputy President Director Lim Kim Siah Director Yuga Nugraha R. Muhammad Irwan I Wayan Gemuh Kertaraharja Judi Sjahrial 556 Description effective since 16 November 2017 resigned effectively as of 1 January 2018 effective since 17 May 2017 Annual Report CIMB NIAGA 2017
  557. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Financial Institution Member : PT CIMB Principal Asset Management Board of Commissioners Position Name Description President Commissioner Albertus Banunaek - Commissioners Pedro Esteban Borda - Budiman Tanjung - Effendy Bin Shahul Hamid - Alejandro Elias Echegorri Rodriguez - Board of Directors Position Name Description President Director Ridwan Soetedja - Director Rudi Hermanto Sagala - Priyanto Soedarsono - Mauldy Rauf Makmur - Anggota LJK: PT CIMB Niaga Auto Finance Board of Commissioners Position President Commissioner Commissioners Name Description Wan Razly Abdullah - Budiman Tanjung - Koei Hwei Lien - Serena K. Ferdinandus - Hidayat Dardjat Prawiradilaga - Board of Directors Position Name Description President Director Ristiawan Efektif per 10 Oktober 2017 Director Ir. Purwadi Indra Martono - Drs. H. Harijanto - Ivan Kawito - Annual Report CIMB NIAGA 2017 557
  558. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management INTEGRATED GOVERNANCE IMPLEMENTATION REPORT Duties and Responsibilities of Members of CIMB Indonesia Financial Conglomerate Board of Commissioners Board of Directors Provide recommendation and approval on Governance Policy prepared by the Board of Directors and ensure that the Governance Policy has been prepared in accordance with TKT Charter ; 2. Supervise the implementation of TKT, with the duties and responsibilities as follows: a. Supervise Corporate Governance to be in accordance with the TKT Charter and Corporate Governance Policy; b. Follow up the recommendations from TKT Committee due to the implementation of TKT as well as for improvement of Governance Policy; c. Supervise the implementation of duties and responsibilities of the Board of Directors, provide the directions or recommendations to the Board of Directors on the implementation of Corporate Policy; d. Evaluate and approve the Governance Policy for improvement e. Establish the Governance Committee by considering the characteristic and scale of business; f. The Board of Commissioners discusses the recommendations from TKT Committee in the Board of Commissioners and Board of Directors meeting in order to provide direction and advice. The Board of Directors must ensure the implementation of TKT by the members of CIMB Indonesia Financial Conglomerate, with the responsibilities as follows: 1. Prepare the Governance Policy which aligned with the TKT Charter; 2.Prepare the necessary policies and procedures for the implementation of TKT which aligned with the procedures prepared by the Main Entity; 3. Provide sufficient resources; 4. Guide, monitor and evaluate the implementation of Governance Policy including reporting, and 5. Follow up the directions and advices from the Board of Commissioners in order to improve the Governance Policies, TKT and Governance implementation based on the recommendation from TKT Committee; 6. Report the assessment and implementation of Governance to the Main Entity in accordance with the procedure agreed. 1. INTEGRATED GOVERNANCE COMMITTEE (TKT COMMITTEE) The establishment of the TKT Committee is not only to comply with the prevailing laws and regulations, but to represent CIMB Niaga’s commitment to Good Corporate Governance in a professional and sustainable manner. The TKT Committee assists the effectiveness of implementation of duties of Board of Commissioners of the Main Entity in supervising the implementation of TKT in the CIMB Indonesia Financial Conglomerate. The duties and responsibilities of the TKT Committee are as follows: 558 1.Evaluate TKT implementation by assessing the adequacy of internal control and the implementation of integrated compliance. 2.Provide recommendations for the Board of Commissioners of the Main Entity for the improvement of TKT guidelines. The provisions concerning procedures of TKT Committee have been further stipulated in the TKT Charter. Detailed discussion on the TKT Committee is available in the TKT Committee Report section in this Annual Report. Annual Report CIMB NIAGA 2017
  559. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report INTEGRATED COMPLIANCE UNIT In accordance with the provision No . 18/POJK.03/2014 on Integrated Governance for Financial Conglomerations, CIMB Niaga’s Compliance Unit (SKK) also serves as the SKKT that oversees the implementation of the compliance function at CIMB Indonesia Financial Conglomerate, through intensive coordination with each subsidiary or affiliates. SKK CIMB Niaga is an independent working unit or separate from the operational unit (risk taking unit) of the EU. The following is the organizational structure of SKKT in the CIMB Indonesia Financial Conglomerate: Board of Commissioners HE Recommendation President Director Director Recommendation Director of Integrated Compliance Integrated Governance Committee Report Integrated Compliance Unit Coordination FSI IN CIMB NIAGA FINANCIAL CONGLOMERATE Duties and Responsibilities of the Integrated Compliance Unit: 1.Monitor and evaluate the implementation of Integrated Compliance of each CIMB Indonesia Financial Conglomerate member; 2.Coordinate with the Compliance Units of each CIMB Indonesia Financial Conglomerate member in accordance with its functions; 3.Compile the results of Integrated Compliance implementation of each CIMB Indonesia Financial Conglomerate member; 4.Prepare and submit the Integrated Compliance duties and responsibilities implementation report to the Director of Compliance of the Main Entity; 5. Establish policies that serve as the guidelines for the implementation of integrated compliance functions and submit them to other Financial Institutions that are members of the Financial Conglomerate. Annual Report CIMB NIAGA 2017 Realization of Integrated Compliance Unit Activities in 2017: 1.Each Compliance Unit in the CIMB Indonesia Financial Conglomerate prepared and submitted its compliance report to the Integrated Compliance Unit, regularly; 2.The Integrated Compliance Unit compiled and submitted: a. Integrated compliance reports on a quarterly basis to the Director of Compliance of the Main Entity; b. TKT implementation self-assessment reports of the CIMB Indonesia Financial Conglomerate to the TKT Committee and OJK per semester; c. Annual report of TKT implementation to the OJK and publish it on the Bank’s website. 559
  560. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management INTEGRATED GOVERNANCE IMPLEMENTATION REPORT 3 . Director of Compliance of the Main Entity semiannually submits the Integrated Compliance Report to the Board of Directors and the Board of Commissioners of the Main Entity; 4.Update internal policies and prepare several procedures to be used as a reference in the implementation of integrated compliance. 5. In accordance with the directives of the OJK on the integrated reporting system, the Integrated Compliance Unit participates in the development of the CIRS (CIMB Integrated Reporting System), which is an integrated reporting system of the CIMB Indonesia Financial Conglomerate. 6. Align and disseminate the compliance framework of the Main Entity to the Financial Institution members of the CIMB Niaga Financial Conglomerate. 7. Regularly conduct coordination meetings with each Compliance Unit of Financial Institution members of the CIMB Indonesia Financial Conglomerate to evaluate the implementation of compliance function in an integrated manner. 8. Monitor the follow-up to the audit findings from the regulator at each Financial Institution member of the CIMB Indonesia Financial Conglomerate. 560 INTEGRATED INTERNAL AUDIT UNIT (IIAU) Bank CIMB Niaga has established the IIAU, in which for Integrated Good Governance, the IIAU of the CIMB Indonesia Financial Conglomerate has prepared Integrated Internal Audit Policy and TKT Manual, as the references for the Internal Audit of the Main Entity and the Internal Audit of Financial Institution members of the CIMB Indonesia Financial Conglomerate, in implementing integrated monitoring and oversight to improve the quality of Integrated Internal Audit. Duties and responsibilities of the IIAU include: 1. Monitor and evaluate the implementation of the integrated audits of each CIMB Indonesia Financial Conglomerate member; 2. Coordinate with all internal audit units of CIMB Indonesia Financial Conglomerate members in accordance with their functions; 3.Compile the results of the Integrated Audit implementation of each CIMB Indonesia Financial Conglomerate member; 4. Develop and submit the Integrated Audit duties and responsibilities implementation report to the Director appointed to conduct the monitoring on the Financial Institutions in the Financial Conglomerate, Director of Compliance of the Main Entity, and the Board of Commissioners of the Main Entity. Annual Report CIMB NIAGA 2017
  561. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Organization Structure of Integrated Internal Audit Unit EU BoC Provide Recommendation Directors CEO Other Director Chief Audit Executive Provide Recommendation Integrated Audit Report Commitee of Integrated CG Integrated Audit Report Integrated of IA Unit IA Unit CNAF IA Unit CSI IA Unit CPAM In conducting its duties , the Integrated Internal Audit unit of the CIMB Indonesia Financial Conglomerate can conduct audit on Financial Institutions which are members of CIMB Indoensia Financial Conglomerate, both through joint audits or based on the report from the internal audit of respective Financial Institution. 5. Conducted meetings with all Head of Internal Audit unit of the Financial Institutions of the CIMB Indonesia Financial Conglomerate on a quarterly basis 6. Monitored the audit results of Internal Audit units of the Financial Institutions of CIMB Indonesia Financial Conglomerate on a monthly and bi-annual basis During 2017, the Integrated Internal Audit unit conducted monitoring and reporting of the implementation of Integrated Internal Audit to the Head of the Internal Audit of the Main Entity on a monthly basis, and to the Director appointed to conduct oversight of the Financial Institutions in the Financial Conglomerate, the Director of Compliance of the Main Entity, and the Board of Commissioners of the Main Entity bi-annually. Throughout 2017, the Integrated Internal Audit Unit has made various efforts to ensure implementation of Integrated Internal Audit was in accordance with the POJK, through the following initiatives: 1. Aligned the Audit Charter with the Internal Audit unit of CIMB Niaga Auto Finance (CNAF). 2. Aligned the audit plan, human resources plan, and the audit standards of the Internal Audit units of the subsidiary. 3. Conducted joint audits with the Internal Audit unit of CNAF. 4. Encouraged and assisted in the implementation of the audit management system (TeamMate) at the Internal Audit unit of CNAF in terms of automatic report issuance. INTEGRATED RISK MANAGEMENT Annual Report CIMB NIAGA 2017 Integrated Risk Management Committee (IRMC) In accordance with POJK No. 17/POJK.03/2014 on the Implementation of Integrated Risk Management for Financial Conglomerate, the Main Entity is required to establish Integrated Risk Management Committee and Integrated Risk Management unit for effective and comprehensive integrated risk management. Integrated risk management is conducted by considering the business characteristics and complexity of each member of the Financial Conglomerate. The monitoring and evaluation process of the Financial Conglomerate’s risk exposure is conducted through the Integrated Risk Management Committee and reported to the Risk Management Committee of the Main Entity. The Integrated Risk Management Committee consists of the Director of Risk Management and several related senior managements from the Main Entity, as well as the Director in charge of the risk management functions of each Financial Institution member of the Financial Conglomerate. 561
  562. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management INTEGRATED GOVERNANCE IMPLEMENTATION REPORT Composition of IRMC in 2017 is as follows : Name Position Position in the Committee Vera Handajani Director of Risk Management, CIMB Niaga Chairwoman Julius W. Tjhioe Head of Operational Risk Management, CIMB Niaga Deputy Chairman I Yulius Setiawan Head of Risk Analytics & Infrastructure, CIMB Niaga Deputy Chairman II Indra Martono Director of CIMB Niaga Auto Finance Member Lim Kim Siah Director of CIMB Sekuritas Indonesia Member Director of CIMB Principal Asset Management Member Market Risk Management Head, CIMB Niaga Member ALM Risk Head, CIMB Niaga Member Rudi H. Sagala Diva Mahdi Sandi Maruto Koei Hwei Lien Nanang N. Sumirat Retail Credit Risk Management Head, CIMB Niaga Member Integrated Risk Management & Basel PMO Head, CIMB Niaga Secretary Duties and responsibilities of the IRMC are : 1.Provide recommendations to the Board of Directors of the Main Entity for the development of the Integrated Risk Management policy and enhancement of the Integrated Risk Management policy based on evaluation results. 2.Review and coordinate the evaluation results on integrated risk management, including integrated risk profile and other reports generated from the integrated risk management information system. Arrangements for IRMC work guidance is further stipulated in the IRMC framework or Terms of Reference. In conducting its functions, the IRMC is supported by the Integrated Risk Management Working Unit to coordinate with risk management units in each Financial Institution member of the Financial Conglomerate. Realization of Integrated Risk Management Activities in 2017 were: 1.The Integrated Risk Management Working Unit coordinated the submission of Integrated Risk profile reports from each Financial Institution to the regulators on semi-annually. The reports were first submitted to the IRMC to obtain recommendations, prior to approval of the Risk Management Committee (RMC) of the Main Entity. 2.The Integrated Risk Management Working Unit with the Strategy & Finance unit submitted the Minimum Capital Adequacy report to the regulator, 562 on semi-annually. The report was first delivered to the Integrated Risk Management Committee to obtain recommendations prior to approval from the RMC of the Main Entity. 3. The Bank, as the Main Entity developed a technologybased information system to support the integrated risk and capital risk assessment process, which is connected to all Financial Institutions in the CIMB Indonesia Financial Conglomerate. 4. Coordination of integrated risk management implementation by the Main Entity to the Financial Institutions was conducted through periodic meetings with the Financial Institution’s Risk Management units. 5.Each Financial Institution submitted a report on significant events that could affect the overall risk profile of the Financial Conglomerate. The reports were submitted to the IRMC through its secretary, as stipulated in the Integrated Risk Management Procedures. INTEGRATED RISK MANAGEMENT WORKING UNIT In performing its duties, the IRMC is supported by the Integrated Risk Management Unit which coordinates with the risk management units of each Financial Institution of the CIMB Indonesia Financial Conglomerate. The authorities and responsibilities of the IRMC Unit include: 1. Provide input to the IRMC and Risk Management Committee of the Main Entity on the development and implementation of policies and procedures of Integrated Risk Management. Annual Report CIMB NIAGA 2017
  563. Supporting Business Review Corporate Governance Report Corporate Social Responsibility 2 . Provide information to the IRMC on matters that need to be followed up on, including exceptions or significant events in each Financial Institution that may have an impact on the overall Financial Conglomerate. Perform risk monitoring on the Financial 3. Conglomerate based on assessment of the risk profile results of each Financial Institution and the integrated risk profile. Others Corporate Data Consolidated Financial Report 4. Develop and review the accuracy of risk profile assessment methodology. 5. Develop and submit the integrated risk profile report periodically to the Director of Risk Management of the Main Entity, the IRMC and RMC of the Main Entity, before being submitted to the regulators. Organization Structure of Integrated Risk Management Working Unit EU Board of Commissioners President Director Other Director Directors Risk Management Recommendation Director Integrated Risk Profile Report Integrated Risk Management Committee Integrated Risk Profile Report Integrated Risk Management Unit Coordination Risk Management Unit of PT CNAF Risk Management Unit of PT CSI The Integrated Risk Management Working Unit monitors integrated risk management. The results of the monitoring process on risk exposure is reported and evaluated by the IRMC and submitted to the RMC of the Main Entity. In line with the efforts of the Integrated Risk Management Unit to comply with the regulations on integrated risk management, the following action was taken in 2017: 1. Conducted a review on risk management policies and procedures which serve as the guidelines and reference for integrated risk management. Annual Report CIMB NIAGA 2017 Risk Management Unit of PT CPAM 2. Conducted a review on the methodology used in the self-assessment process of risk profile of each entity. 3.Prepared and submitted integrated risk profile reports periodically to the IRMC and RMC of the Main Entity, to be further submitted to regulators. 4.Conveyed reports on significant events that occurred in each Financial Institution to the IRMC and RMC of the Main Entity. 563
  564. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management INTEGRATED GOVERNANCE IMPLEMENTATION REPORT Explanation regarding integrated risk management can be viewed in the Supporting Business Review Report - Risk Management section of this Annual Report . INTRA-GROUP TRANSACTION POLICY Intra-group transaction risk is one of the risks that must be managed in order to implement Integrated Risk Management. Intra-group transaction risk arises from the dependence of an entity either directly or indirectly on another entity in the Financial Conglomerate for the purpose of meeting written or unwritten agreements, which is followed by, or not followed by, a transfer of funds. Intra-group transaction risk may arise from: 1. Cross-ownership among the Financial Institutions within the Financial Conglomeration. 2. Short-term liquidity management centralization. 3. Collateral, loans, and commitments given or obtained by a Financial Institution from another Financial Institution within the Financial Conglomeration. 4. Exposure to the ultimate shareholders, including the exposure of loans and off-balance sheet items, such as guarantees and commitments. 5.Purchase or sale of assets to other Financial Institutions within the Financial Conglomeration. 6. Transfer of risk through reinsurance. 7. Transactions to transfer third party risk exposure among the Financial Institutions within the financial conglomeration. Intra-group transaction risks are identified, managed, and reported on a regular basis in conjunction with the reporting of integrated risk profile. Up to the end of 2017, the intra-group transactions risk profile rating was considered low, where the significance of intragroup transactions to the Financial Conglomerate’s total assets was still insignificant. Dependence among the Financial Institutions was 564 also considered very low or limited, as seen from the absence of centralised liquidity management, unbound intra-group support, operational transactions in which a company acts on behalf of another company in the Financial Conglomerate were very low, as well as intragroup purchases or sales being not material. In terms of the documentation and fairness of transactions, intragroup transaction agreements were adequate and all transactions were conducted on an arm’s length basis. In addition, exposure to the ultimate shareholder on total capital and exposure arising from the placement of client assets to another company within the Financial Conglomerate was also insignificant. In the intra-group transaction risk management process, the Main Entity has conducted identification, measurement, monitoring, and risk control on the composition and fairness of transactions between the Financial Institutions in the Financial Conglomerate. Periodically, the Strategy & Finance Unit and the Risk Management Unit monitor the intra-group transaction composition risk to ensure compliance with limits, such as Legal Lending Limit (LLL) and the principle of fairness of the transactions. In the framework of active supervision, the Board of Commissioners and and the Board of Directors receive periodic reports regarding intragroup transactions. Adequate policies and procedures for managing intragroup transactions have been established in each Financial Institution. In the Main Entity, these policies include the Risk Management Policy (Integrated), Legal Lending Limit (LLL) policies, and the Subsidiary Equity Participation Policy. The clarity of authorities and responsibilities has also been well regulated under the authority of the Director of Strategy and Finance. Independent review is conducted by the Internal Audit Unit in accordance with the scale and complexity of the intragroup transactions. Annual Report CIMB NIAGA 2017
  565. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Corporate Governance Report of Sharia Business Unit IMPLEMENTATION OF SHARIA CORPORATE GOVERNANCE POLICY The community ’s need for sharia financial products and services continues to grow annually. In response, CIMB Niaga has expanded the Sharia Business Unit (SBU) with improvement and additional service and operational quality. Simultaneous with this expansion is improving the Sharia Corporate Governance, which refers to Good Corporate Governance (GCG) and Sharia Compliance. CIMB Niaga’s Sharia Corporate Governance refers to Bank Indonesia Regulation (PBI) No.11/33/PBI/2009 dated 7 December 2009, and Bank Indonesia Circular Letter (SEBI) No.12/13/DPbS dated 30 April 2010 on the Implementation of Good Corporate Governance for Sharia Commercial Banks and Sharia Business Units, as well as OJK Circular Letter (SEOJK) No. 43/ SEOJK.03/2016 dated 28 September 2016 concerning Transparency and Publication of Conventional Bank’s Financial Report. Sharia Corporate Governance in CIMB Niaga is based on 5 (five) basic principles, namely: • Transparency: openness in presenting material and relevant information, as well as openness in the decision-making process. • Accountability: the clarity and accuracy of the presentation of information on the Bank’s management that runs effectively in accordance with objectives. • Accountability: bank management that is in line with the prevailing laws and regulations, as well as healthy SBU management principles. • Professionalism: having competence, being able to act objectively and free from influence/pressure from any party and have high commitment in developing the sharia business. • Fairness: fairness and equality in fulfilling the rights and interests of stakeholders based on the prevailing regulatory agreement. SELF ASSESSMENT OF SHARIA GCG A self-assessment of GCG is undertaken by the Bank to measure the effectiveness of GCG by CIMB Niaga Sharia during 1 (one) year as established by regulator. The self-assessment is regularly conducted by sending questionnaires to the members of the Sharia Supervisory Board, the Board of Directors and Executive Officers. The assessment covers the following: Aspects of Assessment Weight (W) % Rating (R) Value (W x R) Implementation of Duties and Responsibilities of SBU Director 35% 1.28 0.45 Implementation of Duties and Responsibilities of the Sharia Supervisory Board 20% 1.23 0.25 Implementation of Sharia Principles in Funding, Financing and Services 10% 2.40 0.24 Fund disbursement to Core Financing Customers and Deposits from Core Depositors 10% 1.85 0.18 Transparency of financial and non-financial conditions, GCG implementation report, and internal reporting 25% 1.59 0.40 Composite scores Composite Scores Composite score < 1.5 1.5 ≤ Composite score < 2.5 100% Composite Ranks Very Good Good 2.5 ≤ Composite score < 3.5 Fair 3.5 ≤ Composite score < 4.5 Poor 4.5 ≤ Composite score < 5 Annual Report CIMB NIAGA 2017 1.52 Very Poor 565
  566. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management CORPORATE GOVERNANCE REPORT OF SHARIA BUSINESS UNIT SHARIA SUPERVISORY BOARD (SSB) The Sharia Supervisory Board (SSB) is a key element in Sharia Corporate Governance in the Bank. The SSB has the authority to supervise, control, provide sharia opinions, approve and scrutinise all the SBU activities to ensure compliance with sharia principles. SSB members are appointed by the General Meeting of Shareholders on the recommendation of the National Sharia Council of the Indonesian Ulema Council (DSNMUI) and the fit and proper test approval from OJK. 3. Reputation, at least within the last 5 (five) years before being nominated: a. Not included on the Black List and OJK bad credit list b. Not being declared bankruptcy c. Not a shareholder, commissioner, or director of a company and/or a member of the board of a business entityfound guilty of causing a company and/or a business entity to be declared bankrupt. SSB Criteria Based on the SSB Charter of the Bank, members of SSB must meet the following requirements: 1. Integrity, at least including: a. Have good ethics and morals b.Have a commitment to comply with and implement with full professionalism of SSB Charter, as well as the provisions of applicable legislation c. Be committed to the development of healthy and strong sharia banking d. Is not included on the Disqualified List as set forth in the provisions on the fit and proper test stipulated by OJK 2. Competence, at least having the knowledge and experience in the field of sharia mu’amalah and knowledge in banking and/or finance in general Structure, Composition and Terms of SSB The number of SSB members shall be at least 2 (two) people and maximum of 3 (three) people. The SSB of the Bank has the ability to perform the mandated responsibilities and have sufficient understanding, as well as competence in order to be able to carry out its duties and responsibilities properly and encourage the improvement of CIMB Niaga Sharia’s performance. Members of SSB shall be appointed by the GMS for a period commencing from the close of the GMS or the date specified by the GMS and ending at the close of the 4th (fourth) AGMS after their appointment, without prejudice to the right of the GMS to dismiss SSB members before their term of office by mentioning the reason. Such termination shall be effective from the close of the GMS unless specified otherwise by the GMS. The composition of members and terms of SSB CIMB Niaga are as follows: No Name Position Term of Office Reappointment Term Period 1 M. Quraish Shihab Chairman concurrently Member AGMs on 23 April 2008 No. 11/260/DPbS dated 11/2/2009 GMS Appointment BI/OJK Approval AGMS 15 April 2016 AGMS 2019 2 Fathurrahman Djamil Member EGMS on 19 December 2008 No. 11/260/DPbS dated 11/2/2009 AGMS 15 April 2016 AGMS 2019 3 Yulizar Djamaludin Sanrego Member AGMS on 28 March 2013 No. 15/825/DPbS dated 10/6/2013 AGMS 15 April 2016 AGMS 2019 Duties and Responsibilities of the SSB Duties and responsibility of the SSB are to provide advice and suggestions to the Director in charge of SBU as well as to ensure activities comply with Sharia Principles. 566 Annual Report CIMB NIAGA 2017
  567. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report The scope of SSB supervision provided to the SBU includes to : 1.Assess and ensure compliance with sharia principles on operational guidelines and products issued by the Bank; 2.Oversee the Bank’s new product development process in order to conform with DSN-MUI fatwa; 3. Request a fatwa from the DSN-MUI for new Bank products not yet approved; 4. Perform periodic review of the fulfillment of sharia principles related to the mechanisms of funding and lending as well as Bank services, to be reported to the relevant authority; 5. Evaluate the accountability of the Board of Directors for implementation of risk management policies related to the fulfillment of Sharia Principles; and 6. Requests for data and information related with sharia from the Bank’s working units in charge with the operational duties related to sharia activities. 1. SSB Meeting at least once a month for discussion on compliance issues of sharia principles on product submission, operational guidance, financing model, financing proposal, and so forth. 2.Active in following activities and establish communication with external parties (OJK and DSN-MUI) for updating information and provisions related to the development of contracts, products and others. 3. Perform sharia compliance reviews on the Sharia Branch Offices (SBO) including Office Channeling (OC) and other Business Units periodically, and prepare six-monthly SSB Audit Reports to the Board of Directors, the Board of Commissioners and Financial Services Authority. 4. Hold workshops with related working unit at 2 (two) times in 1 (one) year. 5. Complete the 2017 GCG Sharia Self-Assessment Questioners. SSB Charter SSB has a Charter that is constantly updated with improvements and adjustments that refer to the rules and regulations applicable in Indonesia. This Charter is a binding guideline and work order for every SSB member so that SSB can perform its monitoring functions efficiently, effectively, transparently, independently and accountably. The SSB Charter regulates the following matters: 1. SSB Duties and Responsibilities 2. Membership of SSB 3. Mechanism and Work Plan 4. Attendance, Working Time and Leave 5. Code of Conduct 6. Remuneration and Facilities 7. Meeting and Minutes of Meeting 8. Assessment and Accountability of SSB Performance 9.SSB Duties and Responsibilities Task Support Working Unit, and 10.Reports REALIZATION OF SSB WORK PROGRAM IN 2017 From the planned work program, throughout 2017 SSB realized the following work program: 1.SSB conducted 24 (twenty four) meetings consisting of a.11 (eleven) regular meetings and 7 (seven) non-regular meetings to discuss new products, operational guidelines, financing models, financing proposals, and more, b. 4 (four) meetings in the Discussion of Sharia compliance review results with related units, and c. 2 (two) workshops with SBU employees. 2. Attended Pre-Ijtima ‘Sanawi and Ijtima’ Sanawi Workshop (Annual Meeting) of SSB year 2017 organized by DSN MUI and OJK. 3.Attended SSB Workshop on Sharia Financial Institutions in Sharia Banking and Sharia Financing in 2017. 4. Reviewed Sharia compliance through the sampling test of financing, funding and service transactions at 4 (four) SBO’s and 4 (four) OCs through onsite review and iB Commercial Financing Products with MMQ agreement and Section in charge of Marketing of Sharia Communication. SSB Work Program in 2017 In 2017, SSB CIMB Niaga developed various work programs and activities related to Sharia GCG at the Bank, including: Annual Report CIMB NIAGA 2017 567
  568. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management CORPORATE GOVERNANCE REPORT OF SHARIA BUSINESS UNIT 5 . Conducted Internal Workshop of CIMB Niaga Sharia at 2 (two) times in 1 (one) year with the theme: a. SOP Management of Sharia Non-compliance b. Improved Work Ethic with the spirit of Hayya ‘Ala al-Falaah. 6. Delivered the SSB Audit Report for period: a. Semester I in August 2017, b. Semester II in February 2018. 7.Contributed to Sharia GCG through GCG SelfAssessment 2017 in accordance with provisions of authorities. 8. Discussed and formulated the membership of the ICG Committee together with all SSB of affiliated companies in the CIMB Indonesia Financial Conglomerate. 9. To actively contribute in the Membership of the ICG Committee in accordance with the applicable provisions from authorities. Concurrent Positions of SSB Members Based on Bank of Indonesia Regulation No.11/10/PBI/2009 regarding Sharia Business Unit of Article 11, paragraph (3), an SSB member can hold concurrent positions as member of SSB at a maximum of 4 (four) other sharia financial institutions. Concurrent positions of the SSB members of CIMB Niaga Sharia fulfilled the requirements from OJK. Concurrent positions of the members of SSB outside CIMB Niaga Sharia are disclosed in the table below: Name Position in Other Companies Company M. Quraish Shihab (Chairman concurrently Member) None None Fathurrahman Djamil (Member) SSB Chairman Bank BCA Syariah SSB Member • AIA Syariah Branch, • CIMB Niaga Autofinance, • Adira Finance Syariah SSB Chairman None SSB Member • LPEI EKSIM • BPRS BTB • PBMT Ventura Yulizar Djamaludin Sanrego (Member) Frequency and Attendance of SSB Meetings 1. SSB conducted 24 (twenty four) meetings consisting of a. 11 (eleven) regular meetings and 7 (seven) non-regular meetings to discuss new products, operational guidelines, financing models, financing proposals, and more, b. 4 (four) meetings in the Discussion of Sharia compliance review results with related units, and c. 2 (two) workshops with SBU employees Attendance Report of Regular SSB Meeting No Name Frequency of SSB Meeting 2017 Total Attendance Rates 1 M. Quraish Shihab 11 46% 2 Fathurrahman Djamil 23 96% 3 Yulizar Djamaludin Sanrego 24 100% 568 24 Annual Report CIMB NIAGA 2017
  569. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Results of Regular Meetings The 2017 Regular SSB Meetings resulted in several agreements including on terms , policies/procedures, activities and products as follows: Opinion Number Material 001/DPS/KNP/II/2017 Internal Terms - Management Policy 002/DPS/KNP/II/2017 Revenue Sharing Report - Musyarakah Financing 003/DPS/KNP/III/2017 Accelerated Financing Terms of Payment 004/DPS/KNP/III/2017 Internal Provisions - Syariah Safekeeping SOP 005/DPS/KNP/III/2017 Internal Terms - Foreign Exchange Syariah SOP 006/DPS/KNP/III/2017 New Product - Personal Financing with Sharia Commodity Scheme 007/DPS/KNP/III/2017 The use of Al-Ijarah Al-Maushufah Fi Al-Dzimmah (IMFZ) Scheme on Financing of MMQ and IMBT 008/DPS/KNP/IV/2017 The use of Adjustment of Receivable Value on Murabahah Cap Scheme 009/DPS/KNP/IV/2017 New Products - Sharia Platinum Cash Back Card 010/DPS/KNP/IV/2017 Cover iB Flexi (Take Over) KPR Expenses in Financing Ceiling 011/DPS/KNP/IV/2017 Internal Terms - Revenue Sharing SOP 012/DPS/KNP/IV/2017 Internal Terms - iB Giro SOP 013/DPS/KNP/IV/2017 Internal Provisions - SOP of Property Assumption Financing Procedure (Sales) iB 014/DPS/KNP/V/2017 Internal Terms - SOP of Sharia Marketing Promotion and Communication Guide 015/DPS/KNP/V/2017 Internal Terms - SOP Standing Instruction 016/DPS/KNP/V/2017 Application of Payment On Demand Clause in Sharia Financing 017/DPS/KNP/VI/2017 Internal Provisions - SOP of Special Credit Factory Procedures for Financing Consumption of Property Collateral iB Assets 018/DPS/KNP/VI/2017 Determination of Profit Sharing from MMQ Assets for Lease 019/DPS/KNP/VII/2017 Internal Terms - BizLite Service SOP 020/DPS/KNP/VIII/2017 Internal Terms - FASBIS SOP 021/DPS/KNP/VIII/2017 Internal Terms - SBIS SOP 022/DPS/KNP/VIII/2017 Internal Terms - SIMA SOP 023/DPS/KNP/VIII/2017 Internal Provisions - SOP of Placement of Term Deposits of Sharia in Foreign Currency at Bank Indonesia 024/DPS/KNP/VIII/2017 Internal Terms - SOP of Reverse Repo of State Sharia Securities 025/DPS/KNP/VIII/2017 Internal Provisions - Operational Policies on Commercial and Consumer Financing (Dual Banking) Related to Reporting and Requesting Customer Information Through Financial Information Service System 026/DPS/KNP/VIII/2017 Internal Provisions - Third Party Fund Management Policy Regarding Account Opening By Refferal Method 027/DPS/KNP/VIII/2017 New Products - Supplier Financing iB 028/DPS/KNP/X/2017 Internal Provisions - SOP of ib Hajj reward Savings 029/DPS/KNP/X/2017 Internal Terms - SOP of Debit Card Implementation 030/DPS/KNP/XI/2017 Internal Terms - SOP of Intraday Shariah Liquidity Facility 031/DPS/KNP/XI/2017 New Product - Export LC iB, SKBDN iB, DP iB, DA iB 032/DPS/KNP/XII/2017 Revenue Realization Report of PRK iB – Musyarakah Non-Regular Meeting Results The 2017 SSB Non-Regular Meetings resulted in the following agreements on: Date Material 20 January 2017 IB Account Financing 14 February 2017 1. Asset Provisions on Financing of MMQ 2. Financing Restructuring of PT Kalpataru Investama. 21 February 2017 Terms and Asset Criteria on MMQ Financing (continued) 5 April 2017 1. Financing of MMQ Refinancing with Asset that is not on behalf of the Customer 2. Financing of MMQ Refinancing with Asset that is being leased by a third party 3. Adjustment of Installment Schedule on Murabahah Financing with Margin Cap Scheme 4. Giro Sharia Program. Annual Report CIMB NIAGA 2017 569
  570. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management CORPORATE GOVERNANCE REPORT OF SHARIA BUSINESS UNIT Date Material 30 August 2017 and 6 September 2017 1 . 2. 3. 4. 27 September 2017 Asset Position on Financing of MMQ Refinancing on Asset Condition, which is on Guarantee facility of existing customer at CIMB Niaga or other Financial Institution. 30 December 2017 Musyarakah Financing - Mechanism and Periodization of Revenue Realization Report on Sharia Account Financing (PRK iB). Sharia Banking Director SBU of CIMB Niaga is led by the Sharia Banking Director who takes full responsibility for the implementation of sharia business management based on the prudential principle and sharia principles. Sharia Banking Director is held by Pandji Pratama Djajanegara. The appointment of the Sharia Banking Director was approved by the OJK through Letter No.SR-27/ PB.13/2016, dated 4 October 2016. Criteria of Sharia Banking Director The criteria of Sharia Banking Director are based on among others, PBI No. 11/10/PBI/2009 concerning Sharia Business Unit, and PBI No. 14/6/PBI/2012 concerning the Fit and Proper Test of Sharia Banks and Sharia Business Units, as well as Bank Indonesia Circular Letter No. 14/25/DPbS regarding Fit and Proper Test for Sharia Bank and Sharia Business Unit. The criteria that must be met by candidates of Sharia Banking Director, among others, are as follows: 1. Have the integrity, competence and good financial reputation as required by applicable regulations 2. Be committed to the development of sound sharia banking operations; 3. Have knowledge and understanding in the field of sharia banking operations; 4.Have knowledge and expertise in banking operations, sharia banking, finance or sharia finance 5. Have the ability to conduct strategic management in the framework of developing a healthy and strong Sharia Business Unit. 570 Restructuring the Financing of PT Kalpataru Top Up Features on Sharia Mortgage Product - KPR iB Follow Up on Application Development of TD Clicks iB Employee Financing. The Term of Sharia Banking Director The term of office for Sharia Banking Director is the same as the term of other Directors of CIMB Niaga Bank, which is appointed by the GMS for the commencing period from the close of the GMS or other date stipulated by the GMS and ending at the close of the 4th (fourth) AGMS after the appointment, without prejudice to the right of the GMS to dismiss the Sharia Banking Director before his/her term expires by stating the reason. Such termination shall be effective from the close of the GMS unless specified otherwise by the GMS. Profile of Sharia Banking Director The full profile of the Director of Sharia Banking is listed on the Board of Directors Profiles in this Annual Report. Duties and Responsibilities of Sharia Banking Director - Managing and supervising based on the prudential and sharia principles. - Following-up on SSB recommendations. - Implementing the Financial Services Authority regulations related to SBU. Transparency of financial condition and non financial condition List of Consultants and Advisors Consultant Field Silverlake Information Technology Digital Mind System Information Technology Hitachi Ebwork Information Technology Sahassa Information Technology Nucleus Information Technology Annual Report CIMB NIAGA 2017
  571. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report The Number of Internal Fraud Cases & Resolution Efforts Based on the report of Internal Audit and Anti Fraud Management, during 2017 there was 1 (one) case of internal fraud with value more than Rp100,000,000 (one hundred million Rupiah). Fraud Committed By BOC/BOD Internal Fraud in 1 year Total Fraud Permanent Employee Non-Permanent Employee Previous Year Current Year Previous Year Current Year Previous Year Current Year - - - 1 - - Resolved - - - - - On-going Internal Settlement Process - - - 1 - - Pending - - - - - - Followed-up with Litigation - - - - - - Legal Issues (Civil and Criminal) and Settlement Efforts In 2017, SBU CIMB Niaga’s legal issue was only related to civil cases and there was no criminal case as in the table below: Civil Civil Case (Bank as Defendant) Legal Case Year 2015 Year 2016 Year 2017 Number of Cases 2 5 6 Completed Cases (Having a Permanent Legal Power) 1 1 2 Cases in Settlement Process 1 4 4 Criminal Criminal (Bank as Defendant) Legal Case Year 2015 Year 2016 Year 2017 Number of Cases 0 1 0 Completed Cases (Having a Permanent Legal Power) 0 0 0 Cases in Settlement Process 0 1 0 NON-HALAL INCOME AND THE USAGE There was no non-halal revenue in 2017. Annual Report CIMB NIAGA 2017 571
  572. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management CORPORATE GOVERNANCE REPORT OF SHARIA BUSINESS UNIT DISBURSEMENT OF FUNDS FOR SOCIAL ACTIVITIES During 2017 , the CIMB Niaga Sharia Business Unit, in collaboration with humanitarian social institutions, religious organizations and educational institutions, organized 290 (two hundred ninety) programs with a total disbursement of Rp6.7 Billion. The beneficiaries are grouped into 5 (five) sectors with the following details: Distribution Sector Number of Activities Economic Empowerment Education Health Infrastructure Donation (Rp) 1 30,000,000 114 3,401,783,382 31 1,170,650,903 40 879,010,000 Social 104 1,218,477,457 Total 290 6,699,921,742 Several excellent programs with institution partners are divided into five sectors of Fund Distribution, among others: Economic Empowerment - Program of providing venture capital for dhuafa family in cooperation with Zakat Indonesia Initiative (IZI) located in Jakarta Education - CIMB @Campus Program through 18 prestigious universities in Indonesia followed by 242 students in collaboration with CIMB Niaga CSR team - The development program of tahfidz dhuafa house in Central Kalimantan in cooperation with Yayasan Nurul Fikri - The development program of the Al Qur’an educational park in Aewoe village NTT in collaboration with the team of Marketing Communication Syariah Health - Rohingya’s health care assistance program in cooperation with PPPA Daarul Qur’an. - Spirit for Palestine health assistance program in cooperation with Dompet Peduli Ummat Daarut Tauhid. - Disaster response action program in Yogyakarta in cooperation with Badan Amil Zakat Nasional (BAZNAS) - Bank Niaga’s retirement healthcare program in partnership with Yayasan Ikatan Keluarga Purna Wira Bank Niaga Social - Several flood disaster response programs include: Kudus flood in cooperation with PPPA Daarul Qur’an, Pacitan flood in cooperation with Pos Keadilan Peduli Ummat (PKPU), and East Lombok flood in cooperation with Al-Azhar Peduli Ummat. - A special program for the distribution of wakaf Al Qur’an together with Bank Niaga Alumni Infrastructure - Musholla Development Program of Faculty of Economics and Islamic Business at Walisongo University in Semarang, construction of Jami Al Fajri Mosque in South Jakarta, and construction of Al Huda Mosque at Pasar Minggu, South Jakarta. - Improvement program for mosques and shelters in Jabodetabek area and Bandung in cooperation with SIndo Trijaya media. - Veteran house renovation program in Bandung in collaboration with Dompet Peduli Ummat Daarut Tauhid 572 Annual Report CIMB NIAGA 2017
  573. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Bad Corporate Governance Practices CIMB Niaga recognizes that Bad Corporate Governance practices will disrupt the Good Corporate Governance (GCG) system developed by CIMB Niaga. To support this, throughout 2017, CIMB Niaga did not engage in actions or develop policies relating to the practices shown in the following table: Description Case Being reported as a company that pollutes the environment Nil Significant legal issues faced by the Bank, subsidiaries, incumbent members of the Board of Directors and/or Board of Commissioners, not disclosed in the Annual Report Nil Non-compliance in the fulfilment of tax obligations Nil Incompatibility in the presentation of the annual report and financial statements with applicable regulations and Financial Accounting Standards Nil Labour and employee-related cases Nil No disclosure on the listed company’s operational segments Nil Discrepancy between the hardcopy and the softcopy of the Annual Report Nil Statement on Implementation of Good Corporate Governance Principles The management and employees of CIMB Niaga state that in conducting its business activities, has implemented Good Corporate Governance principles and there are no material breaches to the prevailing laws and regulations. Further, CIMB Niaga has also implemented Corporate Governance principles in accordance with ASEAN Corporate Governance Scorecard standards. Management and employees are committed to continuously improve Good Corporate Governance practices in a transparent, accountable, responsible, and independent manner, taking into account fair and equitable fairness and continuity in order to achieve CIMB Niaga’s business objectives. Statement on the Effectiveness of Internal Control System and Risk Management The internal control system performed by CIMB Niaga has been effectively and adequately implemented, reflected in the effectiveness of the implementation of internal control functions, including internal audit functions, risk management, compliance, financial and operational controls. Dato’ Sri Nazir Razak President Commissioner Annual Report CIMB NIAGA 2017 Tigor M. Siahaan President Director 573
  574. Tenun Flores The Isle of Flores is well known for its beautiful tenun ikat . This hand woven cloth garment with its unusual ornaments is more than just a dress. It is a symbol that reflects the way the people live, their beliefs and philosophy since ancient times.
  575. FAMILY IS WHERE LIFE BEGINS AND LOVE LASTS FOREVER
  576. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Corporate Social Responsibility Table of Contents 578 Corporate Social Responsibility 581 Vision and Mission of CSR CIMB Niaga 583 Corporate Social Responsibility In The Environment 588 Corporate Social Responsibility In Labor , Health, and Safety 592 Corporate Social Responsibility in Social and Community Development 606 Corporate Social Responsibility for Costumers 576 Annual Report CIMB NIAGA 2017
  577. Supporting Business Review Annual Report CIMB NIAGA 2017 Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report 577
  578. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Corporate Social Responsibility Through implementation of CSR , CIMB Niaga has contributed significantly to Sustainable Development. For more than six decades, the Bank has helped to achieve better social, economic and life quality conditions through the implementation of CSR. 578 Scholarship 1 Scholarship Program 100 awardee Social investment value Rp3 billion Ayo Menabung dan Berbagi 10 Cities in 14 Primary School, 14 Junior High School and 12 Senior High School 5,630 students Social investment value Rp1.28 billion Tour de Bank 5 cities 19 Primary School Rp555.6 Million Philanthropy and Donations 44 Donations Environment 10,000 seeds Bamboo Betung Rp927,916,099 100 heads of families have access to conserve and utilize bamboo seedling 420 farmers, that consist of 210 heads of families have potential to utilize bamboo Annual Report CIMB NIAGA 2017
  579. Supporting Business Review Corporate Governance Report Empowering the Disabled In 2017 , CIMB Niaga held empowerment and development programs aimed for the disabled. The programs consist of employment opportunities, education assistance, IT training, and financial literacy workshops. Annual Report CIMB NIAGA 2017 Corporate Social Responsibility Donations In 2017, CIMB Niaga donated Rp927,916,099 for social and religious activities, education, economy, health, and building places of worship. Others Corporate Data Consolidated Financial Report Customer Satisfaction Survey A survey conducted by ISMS Trisakti, placed CIMB Niaga in the Top 3 in 2017 compared with its top 5 position in 2016. WOW Service Excellence Award 2017 survey, conducted in 18 cities by MarkPlus Inc, ranked CIMB Niaga in the National Top 2 and First in Jabodetabek, Semarang, and Solo. 579
  580. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Corporate Social Responsibility Corporate Social Responsibility , or CSR, is realized as part of CIMB Niaga’s commitment and efforts to run its business operation responsibly, by taking the community and the environment into account. This means minimizing the negative impact due to business operational activities and providing value added of benefits to the Indonesian people in general, while also preserving the environment. Such commitment and efforts began from the awareness that in order to realize long-term success, Bank needs to pay attention to its stakeholders. In addition, CIMB Niaga is also aware of its role as a development agent who assists the Indonesian Government. Realizing the CSR, CIMB Niaga has concretely contributed to Sustainable Development. For more than six decades CIMB Niaga has helped improve the social, economic and life quality through the CSR. In realizing CSR effectively and efficiently, CIMB Niaga has taken the following measures: • Integrating CSR commitment into CIMB Niaga’s strategy so that CIMB Niaga is able to do its operations efficiently and responsibly. This is aimed to support Bank’s optimum business growth. • Forming a special unit in charge of CSR so that the planning, implementation, management, communication, monitoring, and evaluation run smoothly. • Manifesting the CSR Program as the “CIMB Niaga Peduli”, which is run with the spirit to grow and develop out of and for the community, and as an effort to work with the Government in building social and economic independence and increasing the people’s prosperity. 580 REGULATIONS AND POLICIES The implementation of the Bank’s CSR programs and activities is based on the rules and regulations which include among others: • Law No. 40 of 2007 on Limited Liability Companies, • Presidential Instruction No. 6 of 2007 concerning Real Sector Development Acceleration Policy and Empowerment of SMEs through CSR activities in Literacy and Financial Education for Public, • Bank Indonesia Regulation concerning banking education, • Financial Services Authority Regulation No. 1/POJK.07/2013 on Consumer Protection of Financial Service Sector. •Financial Services Authority Circular Letter No. 1/SEOJK.07/2014 on the Obligation of Financial Service Business Actor to Implement Financial Education • Financial Services Authority Regulation No. 76/POJK.07/2016 on Financial Literacy and Inclusion Improvement in Financial Service Sector for Consumer and/or People • Inclusive Financial National Strategy (SNKI) officiated by the Indonesian president on November 18, 2016 • Operational Policy and Guidelines (KDPO) of CIMB Niaga and • The Company’s Code of Conduct. CIMB Niaga also refers to ISO 26000: Guidance Standard on Social Responsibility, which comprises seven main issues, namely: 1) Organizational Governance, 2) Human Rights, 3) Manpower, 4) Environment, 5) Just Institutional Activity Practices, 6) Consumer Issues, and 7) Community Engagement and Development. Annual Report CIMB NIAGA 2017
  581. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Vision and Mission of CSR CIMB Niaga VISION “Creating Added Values for Stakeholders” “CIMB Niaga Peduli brings out the passion to grow and MISSION develop, from the community, with the community and for the community“ CIMB NIAGA PEDULI EDUCATION COMMUNITY DEVELOPMENT AND EMPOWERMENT ENVIRONMENT PHILANTHROPY CSR ORGANIZATION STRUCTURE Compliance, Corporate Affairs & Legal Director Head of Corporate Secretary Community Development Group Head Community Development Specialist Annual Report CIMB NIAGA 2017 Community Development Specialist 581
  582. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management CORPORATE SOCIAL RESPONSIBILITY IMPLEMENTATION OF POLICIES AND STRATEGIES In implementing CSR policy and strategy , CIMB Niaga synergies the internal environment between various business units and also the external environment, namely various stakeholders. The CSR policy and strategy are integrated into Bank’s strategy so as to create harmony in the process to realize Bank’s objectives. There are four pillars in CSR implementation, i.e.: education, community development and empowerment, environment and philanthropy. The four pillars are executed through social responsibility activities in the following areas: • corporate social responsibility in the environment • corporate responsibility labour, health and safety • corporate responsibility in social and community development • responsibility to customers In 2017, actual expenditures for CIMB Niaga CSR Program as of 31 December 2017 amounted to Rp30,901,400,564,-. 582 Annual Report CIMB NIAGA 2017
  583. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Corporate Social Responsibility in the Environment MANAGEMENT POLICY In accordance with the Sustainability principle , or in a broader context, the commitment in the environment focused on the efforts to preserve the environment for the next generations. Meanwhile, in the context of Company’s internal scope, CIMB Niaga focuses on realizing a healthy work environment through environmentally friendly policy and initiatives. This commitment is declared in the Green Office Policy that is included in the Smart Spending Policy. Such policy is in line with CIMB Niaga’s plan to become a part of Green Banking Industry in the future. CIMB Niaga is also aware of its role as a bank that provides loans/capital to customers and as a development agency who also participates in sustainable development, including environment conservation. This is why CIMB Niaga also focuses on environmentally friendly credit channelling. This goes with the Green Banking program declared by Bank Indonesia. Thus, Bank considers the environment aspect in channelling loans to customers, where one of the requirements for loan approval is the customers possessing the Environmental impact assessment (AMDAL). In addition, Bank conducts a checking process into the waste resulted from debtor’s business; this is a program developed by the Environment Ministry and is called PROPER (company performance rating in environmental management program). There are five levels of PROPER: Gold, Green, Blue, Red and Black. Gold PROPER is the best, where environmental management is above the required standards; while PROPER Red indicates that environmental management partially meets the required standards; PROPER Black is the lowest level, reflecting environment management that has not met the standards. CIMB Niaga’s checking assures that the PROPER performance of potential customer not in either Red or Black level. Annual Report CIMB NIAGA 2017 ACTIVITY PLAN AND TARGET In 2017, CIMB Niaga set the target of CSR application in the environment sector as follows: 1. Applying checking process into the waste from debtor’s business, or PROPER developed by the Ministry of Environment and Forestry. 2. Socializing the ‘green office’ concept and the importance of environmental friendly lifestyle 3. Conserving bamboo and building community based productive bamboo business. 4. Perform energy saving. ACTIVITIES CONDUCTED In 2017, CIMB Niaga implemented CSR programs and activities in the environment through programs that are designed based on the policy and plans, as follows: Taking The Environment into Account in Disbursing Credit to Customers In the procedures of providing and assessing credit to customer, CIMB Niaga considers environmental conservation. One of the examples is the customer being required to have the Environmental Analysis (AMDAL) document for approval of the credit provision by CIMB Niaga. Management of The Use of Eco Friendly Materials and Waste Paper Recycling In conducting its day-to-day operational activities, CIMB Niaga is committed in minimizing the use of paper and performing paper waste recycling with the help of third parties. The aim of the aforementioned activities is to reduce the increase of greenhouse gas emissions which is the main cause of global warming. By reducing paper usage and recycling paper waste, more trees are protected, so that the absorption of greenhouse gas emissions is increasing. 583
  584. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management CORPORATE SOCIAL RESPONSIBILITY IN THE ENVIRONMENT Following are the efforts made regarding paper minimization and waste paper recycling : 1. Optimization of Multi-Function Printer (MFP) tools for scanning and faxing so as not to print large number of documents (copy) and optimizing e-mail and internal company website to reduce the printing of brochure, news company magazine and other employees internal communication form. 2. Utilization of waste paper optimally. 3. Printing using the quality draft mode to save on printer toner usage. 4.Standardization of paper sizes used for daily operational activities in CIMB Niaga (photocopies, memos, and document printing) with HVS A4 70 gram paper; back and forth use of paper in printing or copying documents to reduce paper waste and facilitate the transport of waste by third parties that recycle the paper. 5. The use of e-statements and e-billing (paperless) in every reports provided to customers (Account Statement, Education Savings Report, Credit Card and others) to reduce paper usage and reduce emission levels due to the transport process. 584 Energy Saving Referring to the Green Office policy that is contained in Smart Spending Policy, CIMB Niaga expects active contribution of the employees in supporting the efforts of electricity savings in ways as follows: - Switching off electric equipment that is not used outside work hours - Activating energy-saving features of every electric equipment/computer used - Using fuel-efficient vehicles - Organizing teleconference or video conference for meetings of which the participants are located in distance, to save travel cost and fuels - Using energy-saving electrical installations (lamp type, zoning, lamp positioning installation and others) - Limiting the use of electricity where the maximum use of electricity for the purposes of overtime activities is permitted only up to 2 (two) hours after office hours; classify air conditioning as an expense during overtime Annual Report CIMB NIAGA 2017
  585. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Socialization of Green Office CIMB Niaga cooperates with PT Graha Niaga Tata Utama (GNTU) and the Environment Service of Kebayoran, Jakarta in socializing Green Office-Waste Management at Graha CIMB Niaga building. In the activity, the issues discussed are the utilization of open green space at CIMB Niaga building roof and garbage sorting into three categories, i.e. food waste, paper waste and plastic waste. It is expected that after joining the socialization program, the employees would actively participate in supporting the environmentally friendly office management so as to create healthy and comfortable work environment. Others Corporate Data Consolidated Financial Report Green Lifestyle Seminar CIMB Niaga held a seminar on the importance of Green Lifestyle culture by inviting representatives of the World Wild Life Fund for Nature (WWF) Indonesia and Greenaration Foundation as speakers. The aim of this seminar is to introduce eco-friendly lifestyle to CIMB Niaga employees. In line with sustainability concept, meeting the needs nowadays should not sacrifice that of the future generation. This is why the employees are expected to have awareness of the importance of preserving the environment. This can be realized through using environmentally friendly materials for daily needs, minimizing the use of paper, reducing plastic waste, and saving electricity and water. Saving and Planting CIMB Niaga seeks to instill the values of caring for the environment by planting the trees in a series of activities for AMDB programs in 2017 targeted to the students of Elementary School. The program is based on the philosophy “That saving money is similar to planting and caring for trees that initially begin from the seeds, which will later grow to become a shady tree”. Throughout 2017, tree planting was followed by 1,915 students in 14 primary schools in 10 cities in Indonesia. Annual Report CIMB NIAGA 2017 585
  586. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management CORPORATE SOCIAL RESPONSIBILITY IN THE ENVIRONMENT ‘Bambu Lestari CIMB Niaga-KEHATI’ Program and The Handover of Bamboo Processing Equipment in Desa Wogo, Ngada, East Nusa Tenggara In cooperation with Indonesian Biodiversity Foundation (KEHATI), the Environment and Forestry Ministry and Yayasan Bambu Lestari, CIMB Niaga held a 10,000 betung bamboo seed planting program and donated bamboo processing machine to Desa Wogo in Kabupaten Ngada, East Nusa Tenggara. CIMB Niaga also provided education on familial financial planning to Wogo villagers, especially the housewives. In the context of the environment, activity is aimed at preserving bamboo trees and expanding conservation areas that would maintain the ecosystem balance, prevent landslides and provide water supply. While in the context of economic and social affairs, it is expected that this activity will increase the people’s income from the business of bamboo-based products and build the community’s capacity in managing such bamboo trees. By conserving and utilizing bamboo, with the support of procurement of bamboo processing machine, the community would expectedly be able to process such bamboo into various products, such as household products. Consequently, the nature can be preserved and the community’s business will be sustainable. Quantitative Impact of Activities No Activity Quantitative Impact 1 Green Office Socialization 44 employees participated in the Green Office 2017 Socialization activity 2 Green Lifestyle Seminar 40 employees participated in the Green Lifestyle 2017 Socialization activity 3 The Bambu Lestari CIMB Niaga-KEHATI program and Handover of Bamboo Processing Equipment in Desa Wogo, Ngada, East Nusa Tenggara 10,000 betung bamboo (Dendrocalamus asper) seedlings with cocoon system that have been grown in seedling nursery in Desa Wogo, Golewa, Ngada, East Nusa Tenggara are ready to be planted, starting from 1.5 years of age, in farmers' field and critical land 100 heads of family have access to preserve and utilize bamboo seedlings in their land. As many as 210 heads of families or 420 bamboo farmers residing in the villages of Golewa subdistrict have potentials to use bamboo processing machine. 4 Energy Saving In 2017, utility consumption (electricity, PAM, fuel for genset) went down from Rp93 billion to Rp85 billion Mechanism of Environmental Issue Complaint CIMB Niaga provided Mechanism of Environment Issue Complaint, where customers and employee can file a complaint regarding environmental issue in Bank’s business operation. All complaints are registered at the Customer Care Unit’s complaint system. The registered complaint will be escalated to the respective unit to be addressed immediately. In 2017, CIMB Niaga did not receive any complaint related to the environment in Bank’s business operation. 586 Annual Report CIMB NIAGA 2017
  587. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Certification in Environmental Sector In 2017 , CIMB Niaga’s concern of the environment is appreciated as CIMB Niaga received the Green Office Competition Awards 2017 of Gold category. All tenants of PT Graha Niaga Tata Utama, totalling 57, participated in the competition which was organized by PT Graha Niaga Utama. The idea of the competition was raised from the common awareness of the importance to reduce energy and water consumption, to increase quality and cleanliness of work environment, as well as to improve environmental concerns. CIMB Niaga achieved the same title two years in a row. It is considered that CIMB Niaga’s team has shown a strong commitment in applying ‘green office’ concept and giving good influence in promoting ‘green office’ spirit. CIMB Niaga also received Indonesia Green Awards from The La Tofi School of CSR for the Indonesian Biodiversity Conservation Category, through CIMB Niaga’s ‘Ayo Menabung dan Berbagi’ program for Environment and Biodiversity. It is acknowledged that CIMB Niaga’s efforts in conserving the environment through education for the young regarding the importance of planting trees, i.e. the AMDB CIMB Niaga program. Annual Report CIMB NIAGA 2017 587
  588. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Corporate Social Responsibility in Labor , Health, and Safety PROGRAMS AND ACTIVITIES CIMB Niaga focuses in providing equality of job opportunities, providing remuneration and employee’s rights based on meritocracy and relevant regulations, implementing health and safety policies as well as handling complaint in fair and transparent way. MANAGEMENT POLICY CIMB Niaga policy in the area of labor practices and Health & Safety Environment (HSE) is the key priority of CIMB Niaga’s operating model which drives productivity and improves welfare of employees and all relevant stakeholders. Safe working environment and harmonious working relationship between CIMB Niaga and its employees serve as foundation and very essentials in achieving Bank’s vision, mission, and sustainable business plans. Equality and Job Opportunity CIMB Niaga commits in providing healthy and conducive industrial relationship between Bank and its employees as well as ensuring that all employees have the same rights and opportunities to access HSE at work. This commitment is realized by implementing work safety policy, include disease management, compensation due to work accidents and aids for employees who are experiencing disasters. CIMB Niaga also provides lactation rooms, health clinics and ambulance to rescue employees who have accidents at workplace. Year Male Employees Female Employees 2017 6,024 6,758 2016 6,349 6,836 2015 6,652 6,952 In 2017, CIMB Niaga has 12,782 employees across Indonesia with relatively balance composition of 6,024 male (47%) and 6,758 female (53%). 1. Employee Recruitment Composition Age (year) 2017 Male 2016 Female Male 2015 Female Male Female < 30 629 708 689 771 749 765 30-50 419 235 308 189 399 154 3 1 4 1 2 1 1,051 944 1,001 961 1,150 920 > 50 Total Similarly, composition of new recruits in 2017 is relatively balanced with 1,051 male (53%) and 944 female (47%). This shows that Bank upholds equality and job opportunity principle by not discriminating employees based on gender in recruiting. 588 Annual Report CIMB NIAGA 2017
  589. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report 2 . Employee Composition by Position Level in Organization 2017 Male 2016 Female Male 2015 Female Male Female Senior Management 120 64 62 115 62 118 Middle Management 829 549 535 850 545 907 Junior Management 3,411 3,790 5,535 3,741 3,616 3,791 Non-Management 1,664 2,355 1,849 2,498 1,331 2,527 In 2017, the number of CIMB Niaga employees on managerial positions are 4,360 male (50%) and 4,403 female (50%). Meanwhile, the number of CIMB Niaga employees in non-managerial positions are 1,664 male (41%) and 2,355 female (59%). This shows that CIMB Niaga provides equal career advancement opportunity for all employees. 3. Average Training Hours per Employee Level in Organization 2017 Male 2016 Female Male 2015 Female Male Female Senior Management 30 29 62 73 29 33 Middle Management 34 37 64 62 36 38 Junior Management 107 107 70 72 34 36 12 14 30 44 22 29 48 44 58 62 31 34 Non-Management Total of Average Training Hour CIMB Niaga also provides equal opportunity to all employees to develop their competence either in technical, functional, managerial or leadership areas through various education and training programs. The competence development programs are held in line with Bank and employee needs without discriminating against position, gender, ethnicity, religion, race, or social class. In 2017, CIMB Niaga conducted a variety of education and training programs, with average training hour of 46 hours per employee. ANTI-CORRUPTION TRAINING AND THE COMMUNICATION OF ANTI-CORRUPTION POLICIES AND PROCEDURES CIMB Niaga has established a special unit to perform the function of applying anti-fraud strategy within the scope of bank named “Anti-Fraud Management”, in accordance with Bank Indonesia Circular Letter No.13/28/DPNP 2011 concerning Implementation of Anti-Fraud Strategy for Commercial Banks. Annual Report CIMB NIAGA 2017   46 60 32 There are four pillars in the implementation of Bank fraud control system strategy, namely: • Prevention: Preventive measures to reduce the potentials of fraud • Detection: Steps to identify and detect fraud in Bank’s business activities • Investigation: Steps of investigation process, reporting systems, and imposition of sanctions on fraud in Bank’s business activities • Monitoring: Steps to monitor, evaluate, and follow up the corrective actions on fraud that occurred in Bank’s business activities In implementing the anti-fraud management program, Bank realizes the importance of building an anti-fraud culture. Therefore, CIMB Niaga continuously provides anti-fraud education to all employees through training programs, anti-fraud campaigns, and internal bulletin media. Such anti-fraud education consists of communication on corporate values, integrity, and the Company’s Anti-Corruption policies and procedures. 589
  590. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management CORPORATE SOCIAL RESPONSIBILITY IN LABOR , HEALTH, AND SAFETY REMUNERATION AND EMPLOYEE RIGHTS CIMB Niaga continues to provide remuneration based on meritocracy and prevailing rules and standards, without discriminating against gender, ethnicity, religion, race, and group. Differences are only noted due to performance, competence or work experience. In CIMB Niaga, employees are divided into two categories, permanent employees (Indefinite Employment Period Agreement) and contract employees (Specifically Defined Employment Period Agreement). The difference between permanent and contract employees, in terms of benefits, are only in Pension Fund, Severance, and Recognition for Terms of Service. CIMB Niaga remuneration package includes: 1.Salary 2.Health Facilities for Employees, Spouse and Children 3. Permanent Disability Insurance 4. Life Insurance 5. Accident Insurance 6.Employment Security (BPJS Ketenagakerjaan), including insurance for Work Accident, Death, Old Age and Pension 7. Health Security (BPJS Kesehatan) 8. Annual Leave and Other Leaves 9. Religious Holiday Allowance 10.Pension Fund 11.Severance 12.Work Location Allowance 13.Other Benefits, including recognition for term of service. To appreciate employee dedication and contribution, CIMB Niaga provides Total Rewards Statement for certain levels. The reward is provided in the form of statement which summarize all compensation, benefit, awards and development programs received by particular employees. In addition, the Bank also provides appreciation for employee who has served for 10, 15, 20, 25, 30, 35 years and so forth (multiple of 5 years). 590 Employee Complaint Handling Mechanism Each employee has the right to express complaints, dissatisfaction, or any objections on any employment matters. Employee complaint handling mechanism is as follows: • Communicate their concerns to Direct Supervisor. • If unsatisfied with the solution provided by their Direct Supervisor, they may communicate with Next Higher Authority by involving their Direct Supervisor. • If the employees have not received the solution, they may talk to Area or branch leader or authorized HR Unit in charge of such issue. • Area or branch leader or authorized HR Unit will discuss the issue separately. • Afterwards, Area or branch leader or authorized HR Unit will communicate the solutions based on previous discussion to the employee concerned. Occupational Health and Safety CIMB Niaga continuously put attention towards employee health and safety to fulfill employee rights and mitigate operational risk. To prove Company’s commitment, the employee health and safety statement is included in Collective Labour Agreement between CIMB Niaga and its employees. CIMB Niaga implements integrated health and safety management system and implemented in accordance with the prevailing regulations. Health and safety related policies implemented in working environment includes : 1. Smoking prohibition in the Company’s premises 2. Health Care Facilities 3. Facilities for Examination of Pregnancy, Childbirth and Miscarriage 4. Support for Family Planning (KB) 5. Facilities for Purchase of Prescription Glasses 6. Facilities for Periodic Health Check-ups Annual Report CIMB NIAGA 2017
  591. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Quantitative Impact CIMB Niaga ’s approach and initiatives in fulfilling equality and job opportunity, providing remuneration and rights, as well as employee complaint handling are deemed effective. This is proven by relatively stable voluntary attrition within the last three years. Voluntary Attrition 2017 Age (year) Male 2016 Female Male 2015 Female Male Female < 30 273 307 253 306 382 391 30-50 346 345 307 303 464 271 > 50 17 17 10 5 5 2 669 570 614 851 636 Total  10.1% 8.9% 664 10.4% Meanwhile, in terms of employee productivity, there has been an increase on profit before tax per employee ratio by 50.7% to Rp313.5 million per employee in 2017, from Rp208 million per employee in 2016. In terms of occupational health and safety, CIMB Niaga’s CSR has been implemented effectively. This is reflected in the stable work environment health standard, detailed below. Frequency Rate and Severity Rate Work Accident Type of Work Accident FR 2017 2016 2015 NA   NA   NA  2017 2016 2015  NA  NA   NA  Number of Occupational Diseases Type of Work Accident PAK Maintaining Work Environment Health Standard 2017 2016 2015 Light intensity  Standard & Benchmark  250 – 300 lux  Pass  NA   NA  Noise  55 – 75 dBA  Pass  NA   NA Annual Report CIMB NIAGA 2017 591
  592. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Corporate Social Responsibility in Social and Community Development MANAGEMENT POLICY The CSR policy in social and community development is organized with the aim to sustainably empower the community in order to improve the people ’s prosperity. Following this policy, CIMB Niaga implements the CSR, which would mitigate impacts of the operational activities and optimally provide benefits as regulated by the applicable regulations. Implementing the CSR, CIMB Niaga hopes to be able to provide common values which would benefit the Indonesian people in general. PROGRAMS AND ACTIVITIES CIMB Niaga’s plan of CSR implementation in social and public development is focused on the activities of Bank’s development and contribution in the areas of education, community development and empowerment as well as philanthropy. ACTIVITIES AND THEIR QUANTITATIVE IMPACTS Education CIMB Niaga Scholarship Program In 2017 CIMB Niaga continued seeking to improve education quality in Indonesia, by providing opportunities to 100 college students, to complete their education program at 9 partnering universities in Indonesia which include: 1. Katolik Atmajaya University, Jakarta 2. STIE Trisakti, Jakarta 3. Pelita Harapan University, Jakarta 4. STIKOM London School of Public Relation, Jakarta 5. Widyatama University, Bandung 6. Gadjah Mada University, Yogyakarta 7. Atmajaya University, Yogyakarta 8. University of Mataram 9. Institut Teknologi Nasional, Malang 592 Annual Report CIMB NIAGA 2017
  593. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report The total scholarship beneficiaries as of December 31 , 2017 are 905 students with details as follows: Recapitulation of CIMB Niaga Scholarship Distribution No. Program Name Beneficiaries 1 Beasiswa Unggulan CIMB Niaga (Undergraduate, Local) Since 2006, CIMB Niaga cooperates with the Ministry of Education and Culture of the Republic of Indonesia to organize the Beasiswa Unggulan Program, aiming at High School students to continue their education to the Undergraduate level in various universities in Indonesia. 309 2 CIMB Niaga Scholarship (Undergraduate, Local) The scholarship has been distributed since 2016 and is a form of synergy among CIMB Niaga’s business units. It is aimed at students in their 5th semester, to complete undergraduate program in various university partners in Indonesia. 3 CIMB Niaga Creative Industry Technology Scholarship (BUTIK) (Undergraduate, Local) Scholarships for entrepreneur students that aim to increase the entrepreneurship spirit to Indonesian students. This program is a collaboration of CIMB Niaga with the Ministry of Education and Culture of the Republic of Indonesia and was distributed from 2012 to 2015. 4 CIMB Niaga Scholarship (S1 Overseas) CIMB Niaga and CIMB Foundation offer high school/equivalent students the opportunity to pursue a degree in Malaysia. The scholarship program is made possible by the CIMB Foundation since 2008. 5 CIMB Niaga – ASEAN Scholarship (S1 Overseas) In partnership with CIMB Foundation, CIMB Niaga awards the full scholarship to high school students to pursue a degree at renowned universities worldwide. 6 Beasiswa Unggulan Guru CIMB Niaga (S2 Local) The scholarship is awarded in partnership with the Ministry of Education and Culture of the Republic of Indonesia and awarded to high achievement teachers to pursue a Masters at Universitas Sumatera Utara (USU). The scholarship was first awarded in 2015. 7 Khazanah Asia Scholarship (S2 Overseas) Since 2010, Khazanah Asia Foundation in partnership with CIMB Niaga awarded the scholarship to Indonesians wishing to pursue a master’s degree in Malaysia. 8 CIMB Niaga-Faculty of Economics, Universitas Indonesia Employee Scholarship The scholarship is awarded to high performing CIMB Niaga employees who wish to pursue an undergraduate, graduate, and postgraduate degree at the Faculty of Economics, Universitas Indonesia. 9 CIMB Niaga - Sampoerna Academy Scholarship The scholarship is awarded in partnership with the Putera Sampoerna Foundation and was first awarded in 2011. 10 CIMB Niaga - Koperasi Kasih Indonesia (KKI) Scholarship CIMB Niaga in partnership with Koperasi Kasih Indonesia awards the scholarship to the children of the cooperatives’ members to continue their studies at vocational schools. The scholarship was first awarded in 2013. 11 CIMB Niaga - Ikatan Koperasi Indonesia (IKOPIN) Scholarship In partnership with the Institut Koperasi Indonesia, the scholarship is awarded to D3 students focusing in Financial Management. The scholarship was first awarded in 2013. Total Annual Report CIMB NIAGA 2017 374 92 15 1 15 15 35 25 18 6 905 593
  594. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management CORPORATE SOCIAL RESPONSIBILITY IN SOCIAL AND COMMUNITY DEVELOPMENT Scholarship Monitoring CIMB Niaga conducts routine monitoring sessions of scholarship recipients studying at various universities across Indonesia . The program’s objectives are to maintain quality of the awardees and building stronger ties with CIMB Niaga. In addition, the sessions are ideal avenues to share information, network, and discuss academic and nonacademic activities undertaken by the scholarship awardees. In 2017, CIMB Niaga held scholarship monitoring sessions in several cities, including Jakarta, Serang, Medan, Malang, Manado, and Semarang. CIMB Niaga believes that the monitoring sessions are important to improve the quality of CIMB Niaga Scholarship Program. Financial Literacy Programs by BU Guru CIMB Niaga Recipients In 2017, BU Guru CIMB Niaga recipients have held Financial Literacy Programs to educate the public on the importance of financial literacy from an early age. The program also accentuates the banking industry’s role as a safe and convenient harbour to conduct financial transactions. The program has attracted some 3,857 participants, as follows: 594 Annual Report CIMB NIAGA 2017
  595. Supporting Business Review Corporate Governance Report Date Corporate Social Responsibility Others Corporate Data Location Consolidated Financial Report Number of Participants 12 May 2017 Rumah Belajar Felik 's (Jalan Bunga Melati No 2-AA Medan) 80 students 25 August 2017 SMK Darma Bakti 160 students 30 September 2017 Yayasan Perguruan Islam Ishlahiyah Binjai 100 college students 8 November 2017 SD Swasta Alhidayah Polonia Medan 181 students 11 November 2017 SD Swasta Alhidayah Polonia Medan 151 students 15 November 2017 Yayasan SMP/SMA PAB Percuit Sei Tuan Medan 1237 students 13 December 2017 Aula Kantor Camat Batang Kuis 715 housewifes 14 December 2017 Aula Kades Sugiharjo 155 housewifes and aged 17 December 2017 Pendopo desa Sidodadi 160 housewifes and aged 28 October 2017 Politeknik Unggul LP3M Medan 215 college students 23 September 2017 SDN 020620 Binjai 295 students and parents 16 December 2017 SDN 060834 Medan 180 students 18 December 2017 SDN 060834 Medan 228 students Total 3.857 Financial Banking Literacy and Education The Financial Banking Literacy and Education is a practical implementation of Bank Indonesia and Financial Services Authority’s (“OJK”) guidelines to educate the public on the banking industry. In compliance with the instructions, CIMB Niaga held the following programs: Ayo Menabung dan Berbagi, Tour de Bank, Mini Banking Laboratory, Bourse Game Laboratory, and activating the financial literacy program. Ayo Menabung dan Berbagi Program Ayo Menabung dan Berbagi (AMDB) is a banking financial literacy program for the public and especially for students of primary and secondary schools. The program’s main objective is to educate and encourage the public to save from an early age and share with the less financially-able towards a better education. Annual Report CIMB NIAGA 2017 In 2017, the AMDB program was held in Solo, Malang, Lhokseumawe, Pematangsiantar, Pangkalpinang, Tarakan, Manado, Sukabumi, Serang, and Tegal. Some 5,630 students from 14 primary, 14 middle, and 12 high schools took part in the program. The program teaches students on the importance of saving through engaging activities. 595
  596. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management CORPORATE SOCIAL RESPONSIBILITY IN SOCIAL AND COMMUNITY DEVELOPMENT Tour de Bank Program Tour de Bank is part of the AMDB Program to encourage primary school-aged students to visit CIMB Niaga ’s branches or supporting facilities. Students are encouraged to learn important facets of banks, such as how to use ATMs, cash deposit machines (CDM), safe deposit boxes (SDB), roles and duties of tellers, customer service, and other bank staffs, as well as banking products and services. Bourse Game Laboratory CIMB Niaga relaunched the Bourse Game Laboratory in October 10, 2017 at Universitas Indonesia’s Master in Management Campus (MM-FEB UI) in Salemba. The Bourse Game Laboratory is a forex trading simulator, first introduced in 2008. In 2017, CIMB Niaga made renovations to the classrooms, faculty lounge, and the laboratory itself. Following the upgrade, the Bourse Game laboratory is equipped with teleconferencing facilities and the upgrade the bourse game software. In 2017, Tour de Bank has partnered with 19 primary schools in Jakarta, Medan, Pontianak, Batam, and Semarang. 952 students who took part in the program acquired more knowledge of the banking industry through engaging activities. Activating the Financial Literacy Program Throughout 2017, CIMB Niaga also held Financial Literacy Programs in addition to the banking literacy programs outlined above. Mini Banking Laboratory The “laboratory” was founded in 1989 and serves for banking learning process. It is called the Finance and Banking Administration Studies program. Throughout 2017, the Laboratory was consulted by 80 students for learning about Bank Operations Practice, with speakers from University of Indonesia Vocational Faculty and CIMB Niaga Learning and Development. The Laboratory is aimed at: 1. Providing basic knowledge about the functions and duties of Customer Service and Teller, as well as their tasks and responsibilities. 2. Training students so that they have the skills to operate the applications that Customer Service and Teller use. 596 CIMB Niaga Banking Knowledge Sharing On Wednesday, April 5, 2017, CIMB Niaga received a 45 student visit from Pelita Harapan University (UPH), ITB School Business Management (SBM), Bina Nusantara University (BINUS), President University, and Prasetya Mulia at Menara Asia Karawaci and Dynaplast Tower. In the visit, CIMB Niaga shared its knowledge, experience, and innovations to grow and sustain its business in the banking industry. On May 9, 2017, CIMB Niaga received another 14 student delegation from the Universitas Indonesia’s Faculty of Economics and Business (FEB) at Graha CIMB Niaga. In the visit, the students were exposed Annual Report CIMB NIAGA 2017
  597. Supporting Business Review Corporate Governance Report Corporate Social Responsibility to CIMB Niaga ’s innovations in digital banking and treasury marketing. The delegation also had the opportunity to observe directly CIMB Niaga’s dealer floor. CIMB Niaga believes that visits and banking knowledge sharing sessions are effective means to improve the public, particularly students’, literacy of the financial and banking industry. Si Mobil Literasi Keuangan Program CIMB Niaga wholly supports the Financial Services Authority’s (OJK) efforts to educate the public on financial products and services through the Si Mobil LitErasi Keuangan (SIMOLEK) program. In 2017, CIMB Niaga has operated SIMOLEK in 6 cities, namely Medan, Batam, Padang, Pontianak, Serang, and Semarang with total 1,347 visitor. Others Corporate Data Consolidated Financial Report 2.Improve competence and skills by obtaining internationally-recognized financial professional certifications. 3. Obtain recognition from the National Professional Certification Board (BNSP) as official professionals in Indonesia. 4. Add value to marketing and self-branding Personal and Family Financial Planning Seminar On October 8, 2017, CIMB Niaga held a seminar on personal and family financial planning as part of OJK’s Finacial Inclusion Month and bamboo planting program. The seminar was held at Desa Wogo, NTT and attended by 30 bamboo farmers and housewives. Family Financial Planning included topics on the importance of savings for various needs, such as household expenses, education, investment, entertainment, and emergency needs. On November 21, 2017, CIMB Niaga and Thisable Foundation held a financial literacy workshop for 50 members of the deaf community. Using sign language, participants were trained in sound financial strategies to ensure that their income is sufficient for daily expenses and even saved for future needs. Certified Financial Planner (CFP) In partnership with the Institute of Applied Financial Planning Indonesia (IAFPI), CIMB Niaga offered the CFP Program for high performing sales staff to further support their profession as financial advisors. In 2017, 60 CIMB Niaga employees were trained for the following objectives: 1. Standardize professional ethics and conduct as financial planners. Annual Report CIMB NIAGA 2017 597
  598. Performance Highlights Management Reports Company Profile Participating in the Financial Inclusion Month in Padang CIMB Niaga took part in the Financial Inclusion Month organized by the Financial Services Authority (OJK) of West Sumatra on October 28, 2017 held at Universitas Negeri Padang (UNP). CIMB Niaga invited 100 students from SMP Maria and SMA Don Bosco to the event. Both schools are partners in the Program Tabungan Simpanan Pelajar (SIMPEL). Management Discussion and Analysis Risk Management General Training for Preschool/Early Childhood Teachers CIMB Niaga is highly committed towards improving children’s education in Indonesia. Partnership with Indonesia Heritage Foundation (IHF) in 2017, CIMB Niaga held holistic character-based training for 3,039 preschool/early childhood teachers. The training was held at 3 locations: Bekasi, Bogor, and Malang. Location Date Venue Participants Bekasi March 1517, 2017 Asrama Haji Bekasi 1,015 teachers Bogor March 2325, 2017 Graha Widya Wisuda Building, Bogor Agricultural University (IPB) 2,007 teachers Malang July 4, 2017 University of Muhammadiyah Malang Dome 17 teachers Funding for the General Training Program obtained was from CIMB Niaga’s donation of Rp152,157,568 to the IHF under the 2016 AMDB Program. Empowerment through Education Sejuta Buku Program CIMB Niaga’s Program Sejuta Buku (Million Books Program) supports quality education by donating books and encyclopedias to education institutions (schools, foundations, communities). The end goal is to foster reading interest from an early age and assist the Government improve overall education levels. In 2017, book drives in 10 cities brought in 10,000 books which were then distributed by the Gerakan Sedekah Buku Indonesia across the country. Education Supporting Facilities Donation In 2017, the Company has donated education supporting facilities to 40 AMDB partner schools. CIMB Niaga donated facilities such as sports equipment, laboratory apparati, library books, TVs, and projectors to enhance teaching effectiveness and efficiency. 598 Community Development and Empowerment CIMB Niaga is strongly committed towards a sustainable environment conservation and community development. CIMB Niaga is actively working to realizing the 10th goal of the Sustainable Development Goals, namely Reducing Inequalities. SDGs are the 17 global development goals issued by the United Nations and adopted by all countries of the world. CIMB Niaga believes that everyone has equal rights to attain their hopes and dreams, including those with disabilities. To that end, CIMB Niaga holds community development and empowerment programs aimed for the disabled. Annual Report CIMB NIAGA 2017
  599. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Empowering the Disabled Working with Mitra Netra Foundation and Thisable Foundation , CIMB employed 48 disabled persons as Telesales Funding - Non Branch Channel agents over a total pool of 120 agents throughout 2017. In addition, 10 of 45 Non-voice Phone Banking agents are members of the deaf community. CIMB Niaga expects that the program is able to assist disabled persons towards social and economic independence. IT Training Program for the Disabled CIMB Niaga partnered with the National Disabled Children Development Foundation (Yayasan Pembinaan Anak Cacat/YPAC Nasional) to organize a 3 month IT Training Program from October to December 2017. 20 disabled people took part in the training, 4 of whom have physical disabilities, 2 mental disabilities, and 14 deaf community. The training’s aim was to prepare its participants with the requisite soft skills for employment, from which they can further develop their IT skills for an independent future. The training modules consisted of advanced Microsoft Office and web design skills, along with knowledge concerning office performance and workplace accomplishments. WILMAR TUA HASUDUNGAN Wilmar, who is learning disabled, is an advanced trainee in the 3 month training course organized by CIMB Niaga and YPAC Nasional. For him, being accepted by CIMB Niaga Gajah Mada as a Tele Funding Sales agent is an achievement in its own right. It shows that learning disabled persons are able to perform at the same level as the non-disabled. “The instructors in YPAC Nasional and CIMB Niaga’s 3 month IT course are professionals. The 74 sessions @3 hours are excellent but a longer duration to improve participants’ IT skills would help tremendously. While there are practical IT sessions, more practice sessions in the future are much welcomed. We sit facing each other, but I find sitting straight ahead helps me understand the instructors’ better”. Annual Report CIMB NIAGA 2017 599
  600. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management CORPORATE SOCIAL RESPONSIBILITY IN SOCIAL AND COMMUNITY DEVELOPMENT Mobil Belajar CIMB Niaga Mobil Belajar (Mobile Learning) is an educational program by CIMB Niaga and Yayasan Cinta Anak Bangsa (YCAB) with a focus in Information Technology (IT). IT Learning and teaching in the Mobil Belajar CIMB Niaga has been going for six years (2011-2017). In 2017, the IT Training Program attracted 187 students from students in Cibinong, Bogor area. Philanthropy CIMB Niaga philanthropic actions in the form of donations or supportive activities have improved its stakeholders’ and public welfare. Donations are in the form of cash, goods, or social programs for communities near CIMB Niaga’s branches. DWI RIDWAN ALIWI Tabayun Shelter, Mobil Belajar CIMB Niaga Beneficiary “Mobil Belajar CIMB Niaga is a godsend for us, especially we the underprivileged. It never crossed my mind that I’ll ever use a laptop. With this program, I know how to type and use Excel formulas. I was hesitant at first, but now I’m confident enough typing with ten fingers. With Kak Rizal’s patient assistance, I now know how to do my assignments with a computer, how to type with 10 fingers, and use general formulas. I give two thumbs up and cheers to CIMB Niaga! I hope that this program is carried on forward so that my juniors can enjoy the same benefit as I did. Thank you to CIMB Niaga and Kak Rizal.” 600 CIMB Niaga gives donation priority to education, religion, health, arts and culture, economy, sports, and Information Technology (IT). Blood Donation and Health Talk CIMB Niaga in collaboration with CIMB Niaga Club (CNC) has given consistent support to the Indonesian Red Cross (Palang Merah Indonesia-PMI) by organizing Blood Drives in May and November 2017. The drives gathered 1,031 donors from the bank’s customers, employees, commissioners, and the public. The blood drives were accompanied with a Health Talk sponsored by LIPPO Insurance and RS Premier Bintaro & Jatinegara. In the Midyear Blood Drive, the Health Talk adopted two topics. The “Depression: Let’s Talk” topic raised awareness on the importance of rest and dangers of overworking whereas the “Breast Cancer Awareness” aimed on the importance of early detection of breast cancer. In the End of Year Blood Annual Report CIMB NIAGA 2017
  601. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Drive held simultaneously in 3 locations , the Health Talk featured “Healthy Life Style” to highlight the importance of healthy diet and lifestyles. VERONICA COLONDAM Founder and CEO YCAB Consistent That’s the right word to sum up our relationship with CIMB Niaga. In the last 6 years, YCAB Foundation and CIMB Niaga have used the Mobil Belajar to teach IT to underprivileged youths in Jakarta, Tangerang, and Bogor. In 2011, at a time when only few who saw computer skills as basic skill for the future, CIMB Niaga went ahead and gave free computer courses. Interestingly, the once peculiar idea of transforming a bus into a mobile computer lab made the program a comprehensive solution for youths with limited financial or transportation access. Disaster Relief Programs CIMB Niaga raised Rp150,000,000 through CIMB Niaga Peduli Gempa Aceh for the Indonesian Red Cross (PMI) to carry out disaster relief programs in Aceh following an earthquake in 2016. The funds were allocated for (1) WASH program (Water, Sanitation, and Hygiene Promotion), a clean water program for earthquake victims, and (2) Health Program, a mobile health service. In addition, CIMB Niaga also provided assistance for disaster victims in Ponorogo. On Saturday, April 1, 2017, Desa Banaran, Ponorogo was subjected to landslides which claimed 2 victims, injured 20, and led to 26 missing. More than 200 survivors lost their farms and homes. CIMB Niaga donated Rp10,000,000 worth of clothing, blankets, sarongs, and hygiene kits to 21 victims. Dwi Rizal, a resident of Tabayun Shelter in Bogor, has never used a computer before. Now, not only Dwi can type well, but he is also proficient with Excel formulas. We thank CIMB Niaga for its enduring trust in YCAB to educate underprivileged youths and being part of #ExtensionOfGoodness. We hope that this partnership will carry on and reach more children in other areas in the future. Annual Report CIMB NIAGA 2017 601
  602. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management CORPORATE SOCIAL RESPONSIBILITY IN SOCIAL AND COMMUNITY DEVELOPMENT Religious Holidays Program Ramadhan 1438 H In addition , Rumah Zakat’s Probolinggo chapter assisted CIMB Niaga to process and distribute meat from sacrificed animals to Banjarmasin. The sacrifice animals benefited 250 people. Some 350 cans of corned beef and 140 cans of corned mutton, all of which made from sacrifice animals, were distributed to Sungai Mai RT 12, Banjarmasin Utara, Banjarmasin. The ward was deemed to be in the low to middle economic standing. Christmas CIMB Niaga held a series of events to commemorate Ramadhan at its main and branch offices, among which was Ramadhan Donations to 9 foundations and 5 masjid development councils managed by CIMB Niaga employees. The donations were given during the Ramadhan Safari and handed by the Directors. Eid Adha 1438 H CIMB Niaga showed its spirit of goodwill and sharing during the 2017 Christmas celebrations. CIMB Niaga donated Rp10,000,000 each to 4 foundations, namely LKSA Putri Elim, Covindo, Global Edutama Adunai, and Naroman Maromak Jaya. The donation was symbolically presented during the End of Year and Christmas Eve Celebrations by CEO of CIMB Niaga. Moreover, on the spot donations during the event gathered an additional Rp13,125,000, all of which was donated to the four foundations. CIMB Niaga donated 7 cattle and 8 goats to sacrifice on Eid Adha. The animals were sacrificed at 8 locations, namely Graha CIMB Niaga Sudirman, Menara CIMB Niaga Karawaci, CIMB Niaga Gajah Mada Jakarta, CIMB Niaga Bandung, CIMB Niaga Surabaya, and CIMB Niaga Malang. CIMB Niaga distributed meat of the sacrificed animals through Human Initiative (Pos Keadilan Peduli Umat-PKPU) and Rumah Zakat. 602 Annual Report CIMB NIAGA 2017
  603. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Nursing Rooms To meet the needs of its nursing employees , CIMB Niaga has prepared nursing rooms at its offices. The nursing rooms are in line with Government Regulation Number 33 Year 2012 on Exclusive Breastfeeding. The rooms facilitate nursing employees and customers and features comfortable seats, bottle sterilizers, and refrigerator to store breastmilk. There are 11 nursing rooms spread across CIMB Niaga offices in Jakarta, Bintaro, Karawaci, Sentraya, Malang, Surabaya, Bandung, Semarang, and Yogyakarta. Others Corporate Data Consolidated Financial Report Rumah Kita Shelter “Rumah Kita” is a temporary shelter for Women Migrant Workers (Tenaga Kerja Wanita-TKW) currently facing legal actions. The program has been running since 2010 based on the initiatives of CIMB Group, CIMB Niaga, and Embassy of Indonesia in Malaysia. In 2017, there were 778 migrant workers protected at the Rumah Kita Shelter. Improvement of Social Facility and Infrastructure Improvement and provision of social facilities and infrastructure related to education have been included in the sub-section of Education for Empowerment: Provision of Educational Support Facilities. CIMB Niaga also provides wheelchair facilities for Cancer Stop Over House for Children (Rumah Singgah Anak Kanker) which is a stop over house for cancer patients who are undergoing treatment at Banjarmasin hospital, South Kalimantan. There is one wheelchair in this shelter which condition is not feasible to be used. CIMB Niaga provides 2 units of wheelchairs worth Rp4 million to Yayasan Rumahku-Rumah Singgah Anak Kanker in order to assist cancer patients for both in-house and hospital use. Annual Report CIMB NIAGA 2017 603
  604. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management CORPORATE SOCIAL RESPONSIBILITY IN SOCIAL AND COMMUNITY DEVELOPMENT Social Donation Distribution In 2017 , CIMB Niaga distributed Rp927,916,099 in donations for social and religious activities, education, economy, and building places of worship. No Description Amount 32 Eid al-Adha Donation to CIMB Niaga Malang 6,000,000 33 Eid al-Adha Donation to CIMB Niaga Surabaya 25,000,000 34 Eid al-Adha Donation to PKPU 22,000,000 35 Eid al-Adha Donation to Rumah Zakat 25,700,000 Amount 36 Wheelchair Donation to Rumahku Management Top Up for CIMB Niaga Peduli Gempa Aceh Donation 28,956,099 37 Donation to Alzheimer Indonesia 2 Donation for Cleft Lip and Cleft Palate Social Program 2,500,000 38 Christmas Donation to Covindo Foundation 10,000,000 3 Donation for As-Salam Mosque, Joglo, Renovation and Expansion 2,500,000 39 Christmas Donation to Naroman Maromak Jaya Foundation 10,000,000 4 Donation for Ponorogo Landslide Victims 10,000,000 40 Christmas Donation to LKSA Puteri "Elim 10,000,000 5 Donation for Eye Cancer Operation 10,000,000 41 Christmas Donation to GEA Foundation 10,000,000 6 Donation to Maryam Karim Foundation 10,000,000 42 Donation for YPAC Color Run 7 Donation for Al-Musyawaroh Musala Canopy Procurement 2,500,000 43 Donation for Disable Enterprise 44 Donation to YCAB 8 Donation to the Al Amanah Nusantara Foundation 5,000,000 Social Donations Breakdown No 1 Description 9 Donation to Pondok Ramadhan FEC 2,550,000 10 Donation to Yatim Mandiri Foundation 4,750,000 11 Donation for Iftar hosted by Lion Club 5,000,000 12 Donation for Safari Ramadhan (Jakarta) 10,000,000 13 Donation for Safari Ramadhan (Bandung) 10,000,000 14 Donation for Safari Ramadhan (Surabaya) 10,000,000 15 Donation for Safari Ramadhan (Bintaro) 10,000,000 16 Donation for Safari Ramadhan (Balikpapan) 10,000,000 17 Donation for Safari Ramadhan (Solo) 10,000,000 18 Donation for Safari Ramadhan (Medan) 10,000,000 19 Donation for Safari Ramadhan (Lampung) 10,000,000 20 Donation for Safari Ramadhan (Makassar) 10,000,000 21 Ramadan Donation (DKM Tower) 15,000,000 22 Ramadan Donation (DKM Tower) 15,000,000 23 Ramadan Donation (DKM Alam Sutera) 15,000,000 24 Ramadan Donation (DKM Karawaci) 15,000,000 25 Ramadan Donation (DKM Gajah Mada)) 15,000,000 26 Ramadan Donation - Belanja Bareng Yatim 34,000,000 27 Donation for Darussalam Musala Construction 28 Eid al-Adha Donation to DKM Masjid Niaga Rahmat 46,000,000 29 Eid al-Adha Donation to DKM Gajah Mada 25,000,000 30 Eid al-Adha Donation to DKM Karawaci 21,000,000 31 Eid al-Adha Donation to CNC Bandung 25,000,000 604 Total 4,000,000 5,000,000 150,000,000 40,000,000 207,960,000 927,916,099 2,500,000 Annual Report CIMB NIAGA 2017
  605. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Environment Environment-related CSR programs is discussed in a separate chapter under Corporate Social Responsibility in The Environment Total Expenses In 2017 , CIMB Niaga spent Rp9.17 billion for its CSR programs in social and community development. Overall, actual expenditures for CSR Programs of the Bank, along with the Sharia Business Unit and other units, amounted to Rp30.9 billion. The following table lists CIMB Niaga CSR Program expenditures in the last three years: No. Activity Pillars 2017 2016 2015 1 Education 12,160,278,470 7,166,282,929 7,159,607,198 2 Community Development and Empowerment 3,048,463,000 260,227,000 2,280,069,671 8,235,558,452 1,206,601,503 2,280,069,671 29,844,000 534,355,000 57,576,900 6,699,921,742 19,118,214,185 14,705,655,254 3 Philanthropy and Donations 4 Environment 5 Qardhul Hasan CIMB Niaga Syariah 6 CSR Program Communication Total Annual Report CIMB NIAGA 2017 727,334,900 324,317,375 168,530,000 30,901,400,564 28,609,997,992 24,639,229,632 605
  606. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Corporate Social Responsibility for Customers MANAGEMENT APPROACH CIMB Niaga strives at all times to build and maintain its reputation by strengthening its commitment for improved services and customer satisfaction . CIMB Niaga believes that quality services are key to maintaining customer loyalty and sustaining its business. Understanding what the customers need, and prioritizing excellent services, are the best ways with which to ensure long-term business growth. ACTIVITY PLANS AND TARGETS CIMB Niaga sets the targets of CSR implementation in terms of responsibility to the consumer with the implementation of activities to create a better customer experience, including providing access to comprehensive banking product information, or the resolution of customer complaints at >90% in accordance with established Service Level Agreement (SLA). CIMB Niaga is committed to align its business strategies with measures in consumer protection and quality improvement of products and services. Toward this end, a variety of initiatives have been taken to improve work processes through the adoption of lean six sigma method, provide convenience and alternative transaction channel fro customers through a 24-hour Contact Center, as well as implementation of an internal campaign, “Services from the Heart”, intended to nurture a customer-centric culture among staffs of CIMB Niaga. Customer Experience For CIMB Niaga, customers are our most prized asset. Thus, Customer Experience is a focus that continue to be developed in order to create an optimum level of customer satisfaction. Toward this end, CIMB Niaga continues to innovate and strive to become the best among banks. CIMB Niaga provides Customer Experience in various forms of service, including: optimizing the benefits offered by its products and services, clear information about the types of products and services, customer data confidentiality, state-of-the-art technology, secure access to products and services, and many others. Customer Complaint Mechanism 1 Complaints Acceptance 2 Investigation and Settlement 3 Notification The customer submits the complaint Call in Walk in Phone Banking Branch Monitoring Write in Sosial Mass Media Media Email Internal • Daily reminder to escalation unit • Monthly report to Management BI/ OJK The front liner input customer complaints documentation on the bank application and provides the reference number of the complaint Customer Resolution Unit (CRU) coordinates with the escalation unit for the settlement of customer complaints CRU gives notification of complaint settlement to Customer (email/SMS/mail) External • Quarterly Report to Bank of Indonesia/Financial Services Authority Investigation and settlement of customer complaints 606 Annual Report CIMB NIAGA 2017
  607. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report In order to create customer satisfaction on banking products and services , CIMB Niaga strives to ensure that the Customer Resolution Unit (CRU) fulfill its function optimally in resolving customer complaints in accordance with requirements of Bank Indonesia (BI) and the Financial Services Authority (OJK). The CRU have a customer complaint documentation system called the Automated Monitoring and Reporting of Complaints (OMPK), which integrates all customer complaint reports received through the various channels and media, including the print media and online media. Each complaint report documented is directly forwarded to the respective unit to be resolved. The customer will receive a reference number as a proof of receipt of the complaint and to facilitate monitoring by the customer of progress in the resolution of the complaint. The OMPK system allows the Bank to monitor the level of complaint resolution against established Service Level Agreement (SLA). As the customer base expanded by 27% to 7.4 million customers in 2017, the number of financial transactions likewise increased by 37% to 290.3 million transactions. The percentage of customer complaints to number of financial transactions grew from 0.025% in 2016 to 0.033% in 2017. Nevertheless, the Bank has consistently improved the quality of customer complaint resolution, as reflected in the improvement of customer complaint resolution as per SLA from 90% in 2016 to 94% in 2017. Customer Complaint Handling Performance 2017 2016 2015 Number of Financial Transaction Indicator  290.3 million 211.5 million 176 million Number of Customer Complaint  95 thousand 52 thousand 57 thousand  0.033% 0.025% 0.032% 94% 90%  84% Percentage of Customer Complaint to Financial Transaction Resolved According to SLA The Bank evaluates each customer’s complaint as well as corrective and preventive measures to prevent the same customer complaints from recurring. The Bank also reports the number of customer complaints to Bank Indonesia and the Financial Services Authority on a regular basis. As a public listed entity, CIMB Niaga is active in the Banking Mediation Working Group in cooperation with Bank Indonesia, the Financial Services Authority and other member banks, to conduct customer education programs through seminars on banking or other forms of activity. Annual Report CIMB NIAGA 2017 607
  608. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management CORPORATE SOCIAL RESPONSIBILITY FOR COSTUMERS Customer Satisfaction Survey In an effort to listen to the voice of customer , CIMB Niaga conducts continuous customer satisfaction surveys. Customer feedback is then followed up by various service quality improvement initiatives. In 2017, CIMB Niaga engaged the services of several independent survey agencies to measure the level of customer satisfaction on the Bank’s services. In the customer satisfaction survey conducted by ISMS Trisakti using the face-to-face interview method with banking customers in Jakarta and Bandung, CIMB Niaga was ranked in Top 3 position in 2017, up two notches from 2016. Meanwhile, in the WOW Service Excellence Award 2017 polling conducted by MarkPlus Inc. in 18 cities in Indonesia, CIMB Niaga was ranked in the Top 2 National position as well as Top 1 position in Jabodetabek, Semarang and Solo. Improved rankings from the two independent survey agencies are evidence that the service quality standard provided by CIMB Niaga continues to improve along the years. In addition, based on customer satisfaction measurement results in 2017 obtained through the Customer Feedback System, there were improvements in service satisfaction level to 99.6% for Customer Service and 99.4% for Teller services. Customer Satisfaction Rating under the Customer Feedback System Customer Feedback 2017 2016 2015 Customer Service 99.6% 95.5% 99.4% Teller 99.4% 99.3% 99.2% CSR AWARDS 2017 CIMB Niaga has been consistently recognized by various parties for its CSR programs’ commitment and contribution, as follows: No Award Organizer Venue/Date Title 1 Annual Global CSR Summit and Awards 2017 The Pinnacle Group International Langkawi, Malaysia/March 30 Excellence in Provision of Literacy & Education Award 2 Top CSR Award Business News Indonesia Jakarta/April 4 Nawacita V – Financial Literation for Students TOP Leader in CSR Commitment 3 Indonesia Green Awards The Latofi School of CSR Jakarta/May 3 Conservation 4 Social Business Innovation Award Warta Ekonomi Jakarta/August 18 Green Banking 5 Nusantara CSR Award The Latofi School of CSR Jakarta/September 6 1. Education Improvement Category – CIMB Niaga Scholarship Program 2. Community Economic Improvement, Young Entrepreneurs Category – BUTIK (Creative Industry Technology Scholarship) 6 608 Green Office Competition Award 2017 Graha Niaga Tata Utama (GNTU) Jakarta/November 16 First Place - Category A Annual Report CIMB NIAGA 2017
  609. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report 2018 CSR STRATEGY AND PLAN In its commitment to the implementation of CSR Program , CIMB Niaga plans to allocate in stages a CSR budget amounting to 1% of its Profit Before Tax (PBT), focusing on four pillars of CSR: education, community development and empowerment, philanthropy, and environment. 1.Education CIMB Niaga will focus continue to optimization the Scholarship Program and improve the quality of national education also improve the quality of the workforce in the future. In addition, CIMB Niaga will also hold Literacy Program and Banking Finance Education as directed by Bank Indonesia and Financial Services Authority (OJK), including Ayo Menabung dan Berbagi (AMDB) and Tour de Bank. These programs also will increase public financial inclusion. So, it can make the bank as a safe and comfortable place in financial transactions. 2. Community Development and Empowerment CIMB Niaga will focus organizing Community Link programs involving branch offices, customers and communities in developing and empowering communities in social, economic, education and environment. 3.Philanthropy In the field of philanthropy, CIMB Niaga will focus on strengthening and expanding the provision of beneficiaries in the form of donations for the needy community. 4.Environment CIMB Niaga will continue to strive for environmental preservation both within the scope of internal and external scope. Bank’s internal scope focuses on the implementation of the Green Office Policy included in the Smart Spending Policy to create a healthy working environment and become part of Green Banking Industry in the future. On an external scope, CIMB Niaga focuses on environmentally friendly credit distribution as well as conservation efforts of biodiversity in Ngada, East Nusa Tenggara and Lombok, West Nusa Tenggara that fokus on bamboo conservation based on community empowerment. Annual Report CIMB NIAGA 2017 609
  611. LIVE THE LIFE OF YOUR DREAMS AND ENJOY THE PRECIOUS MOMENT Batik Papua Batik Papua has unique and fascinating characteristics , particularly bird motif of cenderawasih that has a beautiful color combination. The motif is one of the most popular batik motifs in the land of Papua, because cendrawasih is known as the bird of paradise that symbolize happiness and convenience in every precious moment.
  612. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Other Corporate Data Table of Contents 614 Senior Executives Profiles 627 Office Network Addresses 612 Annual Report CIMB NIAGA 2017
  613. Supporting Business Review Annual Report CIMB NIAGA 2017 Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report 613
  614. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management Senior Executives Profiles Antonius Gunadi Chief Audit Executive Budiman Poedjirahardjo Chief of Corporate Strategic Initiatives Indonesian citizen , 43 years of age. Joined CIMB Niaga in December 2016 and has served as Chief Audit Executive since 3 January 2017. He began his career as an auditor at the public accounting firm of Coopers & Lybrand, KPMG, and Ernst & Young prior to entering the banking industry when he became Head of Internal Audit at ABN Amro Bank Indonesia, Barclays Indonesia, and Bank Internasional Indonesia. Prior to joining CIMB Niaga, he served as Audit Director at Citibank and was responsible for audit activities in Indonesia and several other countries in Asia and EMEA. He holds a Bachelor’s Degree in Accounting from University Tarumanagara and a number of international certifications, such as Certified Internal Auditor (CIA) and Certified Anti- Money Laundering Specialist (CAMS). Indonesian citizen, 52 years old. Joined CIMB Niaga in January 2010. Leading and building the Credit Card, Debit Card, and Merchant Acquiring Businesses. He then served as Head of Branch & Branchless Banking, expanding the distribution of branches and building the Digital Banking Platform for CIMB Niaga, He is currently the Chief of Corporate Strategic Initiatives at CIMB Niaga since 1 October, 2015. Prior to CIMB Niaga, he was the Head of Lending at Bank Permata (2008-2010), Director of Consumer Banking at ANZ Indonesia (20002008). He earned his MBA in Finance, Investment & Banking and Master of Science Degree in Manufacturing & Automation from the University of Wisconsin - Madison, Wisconsin, USA. Indonesian citizen, 48 years of age. Has served as Chief of Corporate Banking since February 2015. He has held various positions at ABN AMRO Bank Indonesia, Deutsche Securities Inc. New York, and Rabobank Indonesia. Rusly Johannes Chief of Corporate Banking Prior to joining CIMB Niaga, he served as Managing Director, Local Corporate Unit, Corporate and Investment Banking at Citibank Indonesia. He completed his MBA program from The Anderson School, UCLA and Bachelor of Business Administration program from The University of Texas (Austin). Indonesian citizen, 59 years of age. Has served as Chief of SME Banking at CIMB Niaga since November 2013. Previously, he held various key positions at Bank Permata, commencing in 1986 and most recently served as Head of SME at Bank Permata. He graduated from the University of Ryama, Medan. Sukarman Omar Chief of Micro and SME Banking Indonesian citizen, 45 years of age. Has served as Chief of Transaction Banking since August 2013. He had previously held several senior positions including JP Morgan Singapore, Deutsche Bank, London and Citibank branches in various countries. He holds a Master’s Degree which he earned from Stanford University, USA in 1994. Gregory Hendra Lembong Chief of Transaction Banking 614 Annual Report CIMB NIAGA 2017
  615. Supporting Business Review Adrian Panggabean Chief Economist , Treasury and Capital Market Agus Wicaksono Head of Corporate Client Solutions Corporate Governance Report Corporate Social Responsibility Indonesian citizen, 51 years of age. Chief Economist at Bank CIMB Niaga since October 2016. He spent half of his career overseas. Adrian began his career as a lecturer at the Faculty of Economics, University of Indonesia, and as a visiting professor in Public finance at KIMEP (Kazakhstan), He then served as Policy Advisor at UNDP (Indonesia), economist for Southeast Asia region at Nomura (Singapore), the Asian Development Bank (Philippines), and economic adviser at the Prime Minister’s Office, Brunei Darussalam. Upon his return to Indonesia, Dr. Panggabean pursued a career in the fund management industry and became CEO in several investment companies. He holds a Bachelor’s Degree in Economics from the University of Indonesia and Master’s Degree In Social Science and a Doctor of Philosophy Degree (PhD) from the University of Birmingham, England. Indonesian citizen, 43 years of age. Head of Corporate Client Solutions since April 2013. Previously served as President Director of PT Deutsche Securities Indonesia (2010-2013) (an affiliation of Deutsche Bank), Director of PT Standard Chartered Securities Indonesia from 2004 to 2010 (an affiliation of Standard Chartered Bank), Vice President of Investment Banking at PT Trimegah Securities Tbk (2000-2004), Chief Accountant at PT Dowell Anadrill Schlumberger (1999-2000) and Financial Analyst at PT Astra International Tbk (1997- 1999). He obtained a Bachelor’s Degree in Accounting from the Faculty of Economy of the University of Indonesia in 1997. Others Corporate Data Indonesian citizen, 45 years of age. Started his banking career and held senior positions at Deutsche Bank AG Jakarta, before finally joining Bank CIMB Niaga in November 2009. He holds a Bachelor’s Degree in Industrial Engineering from Bandung Institute of Technology. Amir Mirza Head of Cash Management Indonesian citizen, 47 years of age. Joined Bank CIMB Niaga in May 2016. Started his career, holding various senior positions at HSBC Bank, OCBC NISP, with his last position being at Maybank Indonesia as Executive Vice President of Transaction Banking. He holds a Master of Science in Business Administration Degree from the California State Polytechnic University, USA. Andrew Suhandinata Deputy Chief of Transaction Banking Indonesian citizen, 41 years of age. Serves as Head of Consumer Banking Operations at CIMB Niaga. He previously worked at Citibank for 6 years, Bank Barclays Indonesia for 2 years, Commonwealth Bank for 2.5 years, ICBC for 2.5 years, and Bank Ganesha as Director of IT and Operations for 1.5 years. Albert Suhandinata Head of Consumer Banking Operations Annual Report CIMB NIAGA 2017 He holds a Bachelor’s Degree in Finance from California State Polytechnic University, Pomona and an MBA from Loyola Marymount University Consolidated Financial Report Indonesian citizen, Head of Human Resources Business Partner & Employee Engagement at CIMB Niaga since September 2016. Ang Lennywaty Head of Talent Acquisition, Organization Development & Employee Relations Previous positions include Human Capital Business Partner Head at PT Bank Mega, Business Human Capital Head at PT Bank International Indonesia and Human Resources Business Partner at PT CIMB Niaga Tbk. In addition, she has experience in non-banking companies, such as PT Parastar Echorindo and PT Dexa Medica. She holds a Bachelor’s Degree in Psychology from the Maranatha Christian University, Indonesia 615
  616. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management SENIOR EXECUTIVES PROFILES Antonius Sukriswanto Head of Anti Fraud Management Indonesian citizen , 55 years of age. Head of Anti Fraud Management at CIMB Niaga since 2011. Has extensive experience in operations, audit, and operational risk management, and during the period 2008 - 2011 served as Head of Operational Risk Management at OCBC NISP, Barclays Indonesia, and Bank Ekonomi Rahardja (HSBC Group). Holds a degree in Political Science and International Relations from Gadjah Mada University Yogyakarta, INSEAD Senior Leadership Program Singapore - France, as well as following various training programs on banking and management. Indonesian citizen, 51 years of age. Has served as Head of Digital Banking, Branchless & Partnership at CIMB Niaga since October 2015. Specialist in the credit card business and has worked at several banks such as LippoBank, Bank Bukopin and Visa International. Previously, he served as Head of Cards & Merchant Business at CIMB Niaga from September 2012. Bambang Karsono Adi Head of Digital Banking, Branchless & Partnership Indonesian citizen, 54 years of age. Has served as Head of Mikro Linkage since October 2014. Previously served as Deputy Head of Mikro Laju, Area Manager of SME, ARR Group Head and Branch Manager at HighEnd Commercial Banking. Arief Danardono He holds a Bachelor’s Degree from the Economic Faculty at Diponegoro University and Master of Management Degree from Gajah Mada University. Head of Mikro Linkage He graduated from the Faculty of Economics, majoring in Marketing Management, University of Trisakti. Indonesian citizen, 51 years of age. Head of Consumer Collection and Recovery at CIMB Niaga since September 2017. Banyon Anantoseno Head of Consumer Collection and Recovery He previously held the position of Group Head of Unsecured Collection at CIMB Niaga, Executive Vice President of Card & Loan Processing, Fraud and Collection at Bank Mega, Senior Vice President of Micro Collection at Bank Danamon, Vice President of Collection of HSBC, and Assistant Vice President of Credit Operation at Citibank. He holds a Bachelor degree in Economics Management from Airlangga University, Surabaya. Indonesian citizen, 52 years of age. Has worked at Bank CIMB Niaga since 2006 as Head of Trading Desk and became Funding & Gapping Group Head in 2009. He began his banking career in several domestic and Japanese banks. Indonesian citizen, 47 years of age. Head of Up Country Branch Operations at CIMB Niaga. Previously, he served at Standard Chartered Bank for more than 15 years in Operations with his last position as Head of Core Banking, Lending & Liabilities Operations. He holds a Bachelor’s Degree in Computer Science from Embry Riddle Aeronautical University, Daytona Beach - Florida USA Aulia Mochtar Head of Money Market & Funding Treasury 616 He holds a Bachelor of Science from the University of Indonesia, Jakarta. Bayu Presetyanto Head of Up Country Branch Operations Annual Report CIMB NIAGA 2017
  617. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data An Indonesian citizen , with a career of more than 20 years in the banking industry. Currently, he has been serving as the Head of Retail Banking Product at CIMB Niaga since October 2015. Indonesian citizen, 48 years of age Head of SME1 at CIMB Niaga since September 2016. Previously, he was Area Manager of SME Jakarta-4 at CIMB Niaga. Previously, he served as the Head of Consumer Banking at PT Bank DBS Indonesia (2005-2009). Budiman Tanjung Head of Retail Banking Product He earned his Bachelor’s Degree in Business & Administration from the University of Bath, England in 1996. Consolidated Financial Report Dajani Head of SME I (Jakarta) Started her career in 1995 as an Account Officer at Bank Dagang Nasional Indonesia, Tanah Abang branch, Bank Mashill Utama,Glodok branch, and as Marketing Manager, Jakarta – Region to the Commercial Business Head of Jabodetabek1 at Bank OCBC NISP until December, 2014. She holds a Bachelor’s Degree in Science, - Physics from the Faculty of Science - University of Diponegoro, Semarang. Indonesian citizen, 51 years of age. Head of Commercial Banking for Central Java. Joined CIMB Niaga in 1989 through the Executive Education Program after earning a Bachelor’s Degree in Accounting from Parahyangan University Bandung. C. Ninik Martini Head of Central Java Commercial Banking She has attended Leadership Programs from INSEAD in Fontainebleau and Singapore, earned BSMR Commercial Loan/ Business Certification from Omega. Indonesian citizen, 45 years of age. Head of Structured Finance and Syndication at CIMB Niaga since December 2017. Has followed a career for more than 21 years in the corporate and investment banking sector in Asia, Europe, and the Middle East. Chialmi Dialdestoro Rosalim Head of Structured Finance and Syndication Annual Report CIMB NIAGA 2017 He began his career as Management Associate at Citigroup Indonesia in 1996. Held several key positions, including Citigroup Indonesia as Senior Remedial Officer in the Division of Institutional Remedial Management and as Head of Local Corporate Unit in the Corporate and Investment Banking division, as well as at Citigroup Switzerland as Senior Banker in the Global Corporate and Investment Banking division. Daniel Hutapea Indonesian citizen, 46 years of age. He has served as Head of Treasury Risk Analytics & RCU since 2017. Started his banking career as an Account Officer at Bank Niaga in 1997 and most recently worked as Relationship Manager of Financial Institutions from 2000 to 2008. Has served as Credit & Risk Analytics Head at CIMB Niaga since 2008. He obtained a Bachelor’s Degree in Accounting/ Economics from Padjajaran University, Bandung in 1995. Head of Treasury Risk Analytics & RCU In 2006, he joined the Samba Financial Group in London, United Kingdom with his last position being Co-Head of Corporate and Private Banking Group. In 2010, he joined the Qatar National Bank head office in Doha, Qatar as Global Relationship Manager in the Corporate and Investment Banking division with sector specialties covering Large Corporations, Oil and Gas, Telecommunication, Contracting, and Real Estate. He holds a Master’s Degree in Professional Accounting with Honors from The University of Texas at Austin and a Bachelor of Science in Accounting and Finance Degree with Honors from Oklahoma State University. 617
  618. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management SENIOR EXECUTIVES PROFILES Diah Rachma Paramaiswari Head of Syariah Consumer & Business Management Indonesian Citizen, 52 years of age. Has served as CIMB Niaga Head of Performance & Sales Management – S&D since 2009. Previously served as Head of Sales & Distribution II, being responsible for all branches in Sumatra and Java (2010 –2013). Project Manager for the 1Platform Pre Implementation (2013), Head of SMME Business Development (2014), Communication, Change Management & Business Case Stream Lead for the 1 Platform Implementation (2014 –2016), Head of Sharia Consumer & Product Development – Sharia Banking (2016 –present). She obtained her Bachelor’s Degree in Accountancy from University of Airlangga, Surabaya, Indonesia in 1988. Indonesian citizen, 53 years of age. Head of Anti-Money Laundering (AML) at CIMB Niaga since December 2016. Started her career, and served in different positions at Bank Internasional Indonesia, Compliance Head of Bank Chinatrust Indonesia, and AML Head of Bank Danamon Indonesia. Entin Rostini Head of Anti Money Laundering (AML) Indonesian citizen, 52 years of age. Head of Consumer Credit Risk since September 2017. Indonesian citizen, 53 years of age. Has served as Head of Commercial Banking I, and previously as Head of Business Products and Strategic Development since January 2013 and has held senior positions at ABN AMRO and ANZ Indonesia as Head of Business Banking. He previously served as Head of Consumer Finance at Maybank Indonesia, Member Relation Director at MasterCard International Inc., Indonesia, Wealth Director at PT AXA Financial Indonesia, and various positions at Bank Internasional Indonesia. Djojo Boentoro Head of Consumer Credit Risk He has more than 24 years of work experience in the banking industry. He obtained a Bachelor’s Degree in Civil Engineering from Parahyangan University, Bandung in 1989. Faisal Tambayong Head of Commercial Banking I – Jakarta, West Java, Eastern Indonesia Indonesian Citizen, 55 years of age. Has served as Head of SME III at CIMB Niaga since June 2014 and concurrently as Head of SME II since August 2016. He previously served as Sumatra SME Area Manager. Edianto Lim 618 He obtained his Law Degree from the University of Sebelas Maret, Solo, Indonesia and was enrolled in the Bank Niaga Executive Education Program in 1990. Indonesian citizen, 37 years of age. Head of Trading & Structuring at CIMB Niaga since October 2015. He has had experience in the field of Treasury since 2004. He holds a Bachelor of Science degree from the National University of Singapore. He obtained a Bachelor’s Degree from Dharma Agung University, Medan, Indonesia in 1986. Head of SME II & III She holds a Bachelor’s Degree in Economics, majoring in Accounting from Padjadjaran University in Bandung and Master of Finance Degree from the University of Gajah Mada in Yogyakarta. Ferdinand Renaldi Wawolumaya Head of Trading & Structuring Annual Report CIMB NIAGA 2017
  619. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Indonesian citizen , 50 years of age. Head of Securities Services at CIMB Niaga since September 2016. He started his career at CIMB Niaga in 1991, and joined IBRA prior to rejoining CIMB Niaga in 2003. Indonesian citizen. Head of Business Planning and Network Management - Consumer Banking at CIMB Niaga since July 2016. Started her career as Management Associate at Citibank Indonesia, and was subsequently rotated across various countries, holding various positions as Financial Planning and Analysis Head, Consumer Bank HR Generalist Head, and Chief of Staff. He holds a Bachelor’s Degree in Mathematics from the University of Gajah Mada and a Master’s Degree in Financial Management from one of the state universities in Indonesia. Furiyanto Helen Maris Head of Securities Services Head of Business Planning and Network Management - Consumer Banking Indonesian citizen, 51 years of age. Has served as Head of Commercial and Wholesale Funding at CIMB Niaga since January 2016, covering Jakarta, Sumatra, Kalimantan, West Java, Central Java, East Java, and Eastern Indonesia. Hanny Librata Henry Budiarto Head of Learning & Development Head of Commercial Business Credit Previously he worked at a variety of well-known organizations, such as Bank International Indonesia, PT Asuransi AIG Life, PT Kalbe Farma Tbk, and lastly as Head of Talent & Organization Development at HSBC Indonesia (2008 – 2010). He obtained a Bachelor’s Degree (Computer Science) from Bina Nusantara University in 1999, and attended the Accelerated Universal Banker program at Nanyang Technological University, Singapore Indonesian citizen. Joined Bank CIMB Niaga in September 2017. Prior to joining CIMB Niaga, he served as Group Head of Credit Control & Supervision at Bank Mandiri and Head of Credit Approval at Maybank Indonesia. Hartanto Kurniawan She holds a Bachelor’s Degree in Business and Master of Business in Finance Degree from the University of Technology, Sydney, Australia Indonesian citizen, 41 years of age. Has served as Head of Learning & Development since 2015. He joined CIMB Niaga in 2010 and has held various senior positions in Human Resources. Previously served as Head of Sales and Distribution II under Consumer Banking from June 2013 to December 2015. Head of Commercial and Wholesale Funding Consolidated Financial Report He started his career in the field of financial institution and banking in 1994. He has experience in Commercial Banking, Corporate Banking, and Loan Workout. He has also held various positions in several financial institutions/ banks, such as ORIX Indonesia Finance, Indonesian Bank Restructuring Agency, International Finance Corporation/ - World Bank, Bank Central Asia, and Bank Permata. Indonesian citizen, 49 years of age. Head of Commercial & MSME Banking Credit at CIMB Niaga since February 2017. Previously served in Bank LTBC Central Asia, Bank ANZ Indonesia, Bank Permata, Bank Danamon, and most recently at Bank OCBC NISP as Head of Corporate Banking Credit. He is a Bachelor of Science graduate, Faculty of Finance from the California State University of Fresno, United States. Henry Sawali Head of Commercial & MSME Banking Credit He holds a Master’s Degree in Management from PPM Management - Jakarta, and a Bachelor’s Degree in Mechanical Engineering from Brawijaya University - Malang, East Java. Annual Report CIMB NIAGA 2017 619
  620. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management SENIOR EXECUTIVES PROFILES Indonesian citizen . Currently serves as the Head of Wholesale Banking Operations & Shared Services Center. Joined CIMB Niaga in September 2011. Indonesian citizen, 39 years of age. Head of Risk and Control Unit,Consumer Banking at CIMB Niaga since 15 August 2016. Started her career, and held various positions at Ernst & Young, Standard Chartered Bank, PT Bank Barclays Indonesia, and PT Bank Permata Tbk. Humilo Felona Ronitua Head of Risk and Control Unit, Consumer Banking She holds a Bachelor’s Degree in Economics and Accounting (SE Ak) from the Faculty of Economics, University of Indonesia. Josephine Mercy Ari Priamsari Head of Wholesale Banking Operations & Shared Services Center Indonesian citizen, 57 years of age. He joined CIMB Niaga in October 2013 and has 27 years of professional experience. He held several key positions at various banks and financial institutions, such as Standard Chartered Bank, ABN AMRO Bank N.V., Sucorinvest Gani, and Bank OCBC NISP. Jeffrey Bob Karman Head of Corporate Business Credit Joni Raini Head of HR Business Partner, Rewards & Services 620 He earned his Bachelor of Science Degree, majoring in Business Administration - Finance from the University of San Francisco and a Master’s Degree in Management - International Management from Prasetya Mulya Management Institute. Indonesian citizen, 38 years of age. Has served as the Head of HR Business Partner, Reward & Services at CIMB Niaga since 2017, Head of HR Rewards, Performance & Services since 2014 and Head of Rewards & Performance since 2013. He also served as Talent & Leadership Development Group Head since 2011. Previously, he served as Head of Human Resources at Bank Barclays Indonesia and prior to that, he was Head of HR Management & Services and Head of Learning & Development at Bank UOB Buana. He obtained his Bachelor’s Degree in Economics from Tarumanagara University and a Master’s Degree from Pelita Harapan University, and an Executive MBA Degree from Peking University, China. She previously served as Head of Central Processing Center at Bank Internasional Indonesia from 2005 to 2011, and worked at Citigroup Indonesia from 1997 to 2005, with her last position as Head of Corporate Payment Operations. Indonesian citizen, 52 years of age. Has worked with CIMB Niaga since 2015 as Head of Operational Risk Management (ORM). Previously served at Citibank N.A. Indonesia as Head of ORM (2012 – 2014), Bank DBS Indonesia as Head of ORM (2007 – 2011) and Head of Internal Audit (1999 – 2007), as well as in several banks as Head of Internal Audit. Julius Wiantara Head of Operational Risk Management (ORM) Lena Head of LWO for Commercial Banking (Comba) & MSME He obtained his Bachelor of Economics Degree in 1992, majoring in Finance and Accounting, from Macquarie University, New South Wales, Australia. Indonesian citizen, 50 years of age. Has served as Head of LWO for Commercial Banking (Comba) & MSME (formerly ARR) of CIMB Niaga since July 2015. She started her career at Bank Permata (formerly Bank Bali), from 1991-2010, with her latest position as Head of Special Asset Management. Prior to joining CIMB Niaga, she was Head of Special Asset Management at Bank UOB Indonesia (2010-2015). She graduated with a Bachelor Degree from the University of Atma Jaya Yogyakarta in 1991. Annual Report CIMB NIAGA 2017
  621. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Indonesian citizen , 50 years of age. He has currently served as Head of Compliance Management at CIMB Niaga since October 2013. Indonesian citizen. Has served as Head of Corporate Banking Division I CIMB Niaga overseeing the Property, Regional Corporate and Multinational division since August 2014. Previously he served as Chief of the Division of Risk Management Group of Bank Niaga and worked at the National Bank Restructuring Agency (BPPN) and PT Pefindo. Liston Siahaan Head of Compliance Management He obtained his Bachelor’s Degree from Bandung Institute of Technology in 1992 and Master of Management Degree from Prasetya Mulya Business School, Jakarta Miranty Supardi Head of Corporate Banking I Previously he occupied senior positions in Bank Permata, Lippo Bank, and Citibank N.A. He has 10 years of experience working in the United States before coming back to Indonesia in 2008. He worked at the Boston Consulting Group for two years as a Consultant in the Jakarta Office, and 6 years in Sinarmas Land as Managing Director, and in GRAB as Two Wheel Head. Lukito Adisubrata Mulyawan Gani Head of Strategy and Investor Relations Indonesian citizen. CIMB Niaga in June joining CIMB Niaga, Chief Representative Bank N.V. Annual Report CIMB NIAGA 2017 She holds a Bachelor’s Degree in Business Administration from the University of Wisconsin Madison, USA and a Master’s Degree in Business Administration from Cornell University, USA. Indonesia citizen, 40 years of age. He has served as Head of Strategy and Investor Relations of CIMB Niaga since 2016. Head of Non Branch Channel Head of Commercial Banking Previously, she worked at Citibank New York and Hong Kong with her last position as Senior Vice President for the Corporate and Investment Banking division at Citibank Indonesia. Indonesian citizen, 42 years of age. Has served as Head of Non Branch Channel of CIMB Niaga since April 2011. He obtained a Bacchelor’s Degree from Tarumanagara University in 1997 Michael Gerald Jusanti Consolidated Financial Report Joined Bank 2016. Prior to he served as Officer at ING Started his banking career in 2003. He has experience in Commercial, Corporate and Investment Banking. He also served in various senior positions in a number of banks, such as ABN Amro NV, OCBC NISP, and Rabobank. Graduated with a Master’s Degree in Business Administration (MBA) from Eastern Illinois University, USA and Bachelor’s Degree in Business Administration (BBA) from Benedictine University, USA. He earned an MBA degree from Chicago Booth School of Business, University of Chicago, a MSc degree from DePaul University, and a Bachelor’s degree in Business Administration from the University of Wisconsin, USA. He holds several certifications in accounting and finance. Indonesian citizen, 45 years of age. Joined CIMB in 2011. Previously, was a senior partner in a consulting firm and started his career with Citibank. Graduated from the University of Indonesia, obtained an MBA Degree from the National University of Singapore and attended the Executive Leadership Program at INSEAD business school. Noviady Wahyudi Head of Segment, Decision Management and Customer Experience In charge of preferred banking, payroll, student and community segment. By also in charge of the analytics unit (Decision Management), he is expected to increase cross-selling and customer product ownership. He is also responsible for end-to-end customer experience, business process reengineering, and contact center. 621
  622. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management SENIOR EXECUTIVES PROFILES Ratri Setyorini Head of Business Banking Risk Control Unit Indonesian citizen . Has served as Head of the Business Banking Risk Control Unit since January 2017. Started her career as a Management Associate at Citibank in September 2001 with her last position, prior to joining Bank CIMB Niaga, as Head of Middle Office and Support of SME at Bank UOB Indonesia. Has experience working at Standard Chartered Bank Japan and also experience as guest auditor at various overseas branches of Standard Chartered Bank, such as Pakistan, Bangladesh, India, and Malaysia. Has more than 10 years’ experience in the field of Operational Risk, both for retail and non-retail banking. Indonesian citizen. Has served as Head of Operational Accounting at Bank CIMB Niaga since June 2017. Ria Yohanita Head of Operational Accounting She holds a Master’s Degree in E-Business Management from the International University of Japan (IUJ) and a Bachelor’s degree in Civil Engineering from Bandung Institute of Technology (ITB). She holds a Bachelor’s Degree in Commerce (B. Com) Finance & Financial Management Services and Master of Commerce (M. Com) Accounting & Finance from the University of New South Wales Sydney. Indonesian citizen. She has served as Head of Non Retail Credit Administration, Checking & Appraisal of CIMB Niaga since March 2015. She started her career at CIMB Niaga in 1990. Retno Hestiati Head of Non Retail Credit Administration, Checking & Appraisal 622 She holds a Bachelor’s Degree in Economics from the University of Padjadjaran Bandung and a Master’s degree in Management from Prasetya Mulya Business School, Jakarta. She has more than 12 years of experience in the banking industry, which started as Supervisor and Assistant Manager, Finance & Accounting Department at PT ANZ Panin Bank (2004 - 2009) and continued as Head of Project & Development, Finance & Accounting Department at PT Bank UOB Indonesia (2011-2011), Head of FTP Policy & Framework, Central Treasury Unit at PT Bank UOB Indonesia (2013 - 2016) before finally joining PT Bank CIMB Niaga as Risk Control Unit Head for the Strategy & Finance Directorate in 2016. Indonesian citizen. Joined CIMB Niaga in April 2016 as Head of Corporate Banking – SOE, Infrastructure & Energy. Previously, he worked at Standard Chartered Bank as the Director of Corporate & Institutional Client. Started his career at Societe Generale Leasing and VP of Business Development at GE Capital SE Asia in Singapore. Riboet Budiono Head of Corporate Banking – SOE, Infrastructure & Energy Annual Report CIMB NIAGA 2017
  623. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Indonesian citizen , Head of Sharia Business Banking since 2015, and has more than 25 years’ experience in the banking sector. Indonesian citizen. Serves as Head of Sales & Distribution Jakarta Region at CIMB Niaga. Started his career at LippoBank Los Angeles and has held several senior positions in Bank Permata, Lippo Bank, and Citibank N.A. Robby Mondong Head of Sales & Distribution Jakarta Region He earned his MBA Degree from Woodbury University, Burbank, California, USA in 1993, and obtained a BA from the National University, San Diego, California, USA in 1992 Consolidated Financial Report Rusdi Dahardin Head of Syariah Business Banking Started his career as an employee and participated in the Officer Development Program. Since then, he has held several positions, namely as an Account Officer, Branch Manager, and Area Commercial Banking Head in Sumatra, “he” has also served as a member of the Special Asset Management Team. From 2004 to 2008, the management of CIMB Group appointed Rusdi, as the Assistant General Manager of South East Asian Bank Ltd. Mauritius and from 2008 - 2013 in Kuala Lumpur, Malaysia as an Associate Director, Strategic Management Corporate Planning Management at the Group’s Islamic Banking Division - CIMB Group. He graduated from the University of North Sumatra, Accounting Department. Indonesian Citizen, 51 years of age. Head of Government Relations & CEO Special Staff since 1 December 2016. Previously, he served as the Head of Government Relations from 1 March 2016. Rudy Hutagalung Head of Government Relations & CEO Special Staff He has previously served as CIMB Niaga’s Corporate Secretary and also as Head of Corporate Affairs & Legal of CIMB Niaga since 1 October 2013 and Head of Legal and Litigation of CIMB Niaga (2012-2013). Prior to joining CIMB Niaga, he served as Relationship Director Corporate Banking, Clydesdale Bank London, United Kingdom (20102012), General Manager of Bank Mandiri Europe Limited, London, UK (2004-2010), and Business Analyst Head - Investor Relations Group Bank Mandiri, Jakarta (2001-2004). Indonesian citizen, 43 years of age. Joined CIMB Niaga in June 2011 as Corporate and High End Credam Head. She began her banking career at American Express Bank Ltd in 1997. She has also held various senior positions in Operational Risk, Credit Risk and Policy at PT Bank DBS. Santi Gloria Panggabean Head of Loan Operations & Document Safekeeping, OIT Risk Control Units & Strategic Risk Analytics She holds a Master’s Degree in Business Administration from the University of Notre Dame Australia and a Bachelor’s Degree in Management Economics from Satya Wacana Christian University. He started his career in banking [1992-1999] at BankExim with various assignments in Treasury, International Banking (New York Agency) and Corporate Banking of Bank Mandiri (1999-2001). He earned a Doctoral Degree (M&A) in Law from the American University, London, United Kingdom in 2009, a Master’s Degree in Business Law from the University of Minnesota, School of Law, USA in 1999, and a Law Degree from Gadjah Mada University, Yogyakarta in 1990. Annual Report CIMB NIAGA 2017 623
  624. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management SENIOR EXECUTIVES PROFILES Sari Kartika Head of MSME Business & Product Development Indonesian citizen, 35 years of age. Head of MSME Business and Product Development at CIMB Niaga, since February 2015. Indonesian citizen, 48 years of age. Has served as Head of Loan Workout for Corporate Banking at CIMB Niaga since July 2017. She previously worked at Bank Permata for 12 years in the Marketing, Product Development and Value Chain division. He has had experience in loan recovery since 2006 at Commonwealth Bank and lastly at HSBC as Head of Loan Management Unit since 2010. She holds a Bachelor’s Degree in Economics from the Catholic University of Widya Mandala, Surabaya. Suherman Onihana Head of Loan Workout for Corporate Banking Indonesian citizen, 48 years of age. He has served as Head of Global Sales & Marketing since 2015. Sjarif Gunawan Head of Treasury Sales and Marketing He previously served as Risk Advisory & Institutional Sales Group Head of CIMB Niaga from October 2011. He has had experience in the Treasury and Capital Market since 2001 at Standard Chartered Bank and Citibank and his last position was at OCBC NISP as Head of Risk Advisory Workgroup in 2009. He obtained a double degree in Bachelor of Banking and Finance/ Bachelor of Social Arts from Monash University, Australia in 1995. Indonesian citizen, 52 years of age. Head of Legal of CIMB Niaga since May 2016. Previously, he held various positions including Head of Legal at UOB Indonesia and General Legal Counsel at Bank Danamon Indonesia. He holds a Bachelor’s Degree in Law from Trisakti University and a Master’s Degree in Law from the University of Indonesia Surya Kirana Sulistijo Head of Legal/General Counsel Indonesian citizen, 44 years of age. Head of Marketing, Brand and Communications, CIMB Niaga since June 2014. Indonesian citizen, 49 years of age. Head of Wholesale Banking Credit at CIMB Niaga since November 2012. Previously, he worked in Bank BCA as Head of Structured and Project Finance and at HSBC Bank as Head of Credit Approval Unit. He holds a Bachelor of Science Degree from the Faculty of Industrial Engineering and Management, Oklahoma State University, USA. Started his career and held various positions at Unilever Indonesia, Head of Marketing of Permata Bank and Country Marketing Head at ANZ Indonesia. Slamet Sudijono Head of Marketing, Brand and Communications 624 He holds a Bachelor’s Degree in Mechanical Engineering from the Bandung Institute of Technology and Master of Industrial Engineering Degree from the KU Leuven, Belgium. Previously, during his 10 year career at Permata Bank and Bank Universal, he held several positions in Wholesale & Commercial Banking. He obtained a Bachelor’s Degree in Economics from Tarumanagara University in 1993. Tjahjadi Yapeter Head of Wholesale Banking Credit Annual Report CIMB NIAGA 2017
  625. Supporting Business Review Tjhiu Fen Head of Value Chain & Trade Product Corporate Governance Report Corporate Social Responsibility Indonesian citizen. Has served as Head of Value Chain & Trade Product at CIMB Niaga since September 2015. Her banking career has covers end to end business segments and serves various positions, including Informal SME Business Development Head at BTPN, SME & Commercial Business Development Head at Maybank (formerly, BII), Supply Chain Head at Bank Danamon, and Enterprise Marketing Head at Lippo Bank. She earned a Bachelor of Civil Engineering Degree from the University of North Sumatra. Others Corporate Data Indonesian citizen, Head of Trade & Cash Sales and Head Of FI & NBFI at CIMB Niaga. Prior to joining CIMB Niaga, she had 25 years of experience in the area of Transaction Banking and Marketing for both Corporate and Financial Institutions, with her last position as Country Head of The Bank of New York Mellon, Jakarta Representative Office. Vonny Irawan Head of Trade & Cash Sales Head of FI & NBFI* Indonesian citizen, Head of Sales & Distribution for Out Region since October 2015. Previously, he served as CIMB Niaga Head of Consumer Lending from January 2011. Previously, he served as Head of Retail Banking, Bank Permata from 2010 to 2011 and Head of Consumer Lending Business, Barclays Bank from 2009 to 2010. Tony Tardjo Head of Sales & Distribution for Out Region He earned his Bachelor of Science Degree in Electrical Engineering from Ohio State University, Columbus, Ohio, United States. Wagimin Head of Commercial Banking – (Jakarta, Sumatra, Jawa Timur) Indonesian citizen, 40 years of age. Has served as Head of Strategic Procurement, and Admin Property Management at CIMB Niaga since April 2016. Victor Indarto Head of Strategic Procurement & Admin Property Management He previously served in various companies, including HSBC Indonesia, later joined DBS Bank Head Office in Singapore. His last position was at Deutsche Bank AG Indonesia as Head of Corporate Real Estate & Services, and Corporate Services Business Partner. He is experienced in managing procurement and regional corporate real estate portfolios including Indonesia, Singapore, Vietnam, Philippines and Bahrain. Consolidated Financial Report She holds a Bachelor’s Degree in Computer Science and Master of Business Administration Degree from the University of Southern California, United States. Indonesian citizen, 50 years of age. Head of Commercial Banking, Sumatra, Jakarta and East Java since November 2014. Started his career at BCA, and held various positions at ABN AMRO/RBS (FI, Corporate Banking, Commercial Banking and Head of Global Trade & Advisory), Head of Middle Market, Standard Chartered and Head of Corporate Banking at Bank Ekonomi. He holds a Bachelor’s Degree in Industrial Engineering from the University of Indonesia. Indonesian citizen, 47 years of age. Head of Micro Finance at CIMB Niaga since August 2014. Previously, he served as Distribution Head at PT Bank BTPN Tbk and Regional Business Manager at PT Bank Danamon Indonesia Tbk. He holds a Bachelor’s Degree in Business Law, Faculty of Law, and a Master’s Degree, majoring in Marketing Management from Sriwijaya University, Palembang. Welli Irawan Head of Micro Finance He holds a Master of Science Degree from the National University of Singapore (NUS). Annual Report CIMB NIAGA 2017 625
  626. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management SENIOR EXECUTIVES PROFILES Wenny Ekawulan Handojo Head Of Finance Indonesian citizen . She served as Head of Operational Accounting at Bank CIMB Niaga from 2 January 2014 then as Head of Finance at Bank CIMB Niaga since 12 June 2017. In addition, since 2014 she also take the rule as a Director of at CIMB Niaga Pension Fund,which then appointed as President Director since June 2017. She also served as the President Commissioner of PT Niaga Manajemen Citra effective, November 2017. She has over 20 years of experience in the banking industry, which began from Financial Control at ABN AMRO Bank, NV (1998-2005) then as Head of Finance at Bank ANZ Indonesia (20052009), Head of Financial Reporting at PT Bank Barclays Indonesia (20092010) and as Head of Finance at PT Bank UOB Indonesia (2010-2013). Indonesian citizen. Has served as Head of Technology Infrastructure at CIMB Niaga since 2010, and currently is Head of Information Technology. Previously she held the positions of Head of Technology Infrastucture Management at PT Maybank Bank International Indonesia and Head of Country Technology at Citibank N.A. Yenny Siswanto Head of Information Technology She earned her Bachelor of Business Degree from one of the universities in Australia in 1995. She holds a Bachelor’s Degree in Economics and Accounting from the University of Tarumanagara Jakarta. Widodo Suryadi Head of Corporate Banking II 626 Indonesian citizen, 44 years of age. SEVP/ Head of Corporate Banking II at CIMB Niaga since September 2015. Previously he served as the EVP/Head of Wholesale Banking at Commonwealth Bank (2011-2015) and held various other positions at DBS, Rabobank, Citibank, and Arthur Andersen. He obtained a MBA degree from the Bandung Institute of Technology in 2009 and Bachelor of Business Administration Degree from the University of Wisconsin at Madison, USA, in 1996. Indonesian citizen, Yulius joined CIMB Niaga in March 2015 as Head of Risk Analytics & Infrastructure at the Directorate of Risk Management. Previously, he held senior positions as Wholesale Credit Audit and Analytics at Bank Danamon (2006 2015) and at BCA (1992 - 2006). Yulius Setiawan Head of Risk Analytics & Infrastructure He obtained an MBA from PSBA – Manila in 1997 and Bachelor’s Degree from Institut Pertanian Bogor in 1992. Annual Report CIMB NIAGA 2017
  627. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report Office Network Addresses HEAD OFFICE Graha CIMB Niaga Jl . Jend. Sudirman Kav. 58 Jakarta 12190 Telp. : (021) 250 5151 - 5252- 5353 Fax. : (021) 250 5205 Telex : 60876 nagaho ia, 60877 nagaho ia Web :www.cimbniaga.com E-mail: corporate.secretary@cimbniaga.co.id Telex : 60875, 60876, 60877 Swift :BNIDJA FUNCTIONAL OFFICE OF NON-OPERATIONAL KFNO Team Collection Personal Loan Gedung Graha Infomedia Mampang 4th Floor Jl. Mampang Prapatan RayaKav. 28 Mampang, Jakarta Selatan 12760 Telp. : (021) 29977333 KFNO Credit Card Collection Surabaya Jl. Stasiun Kota No.60 A-B, Surabaya 60161 Telp. :031-3542080 Fax. : 031 - 3564030/40 KFNO Team Collection dan Recovery Jl. Sultan Agung No.55 J, Kec. Gajah Mungkur, Semarang 50232 Telp. : 024 - 8412920 KFNO Ambasador - Personal Loan Rusun Hunian dan Non Hunian, Mal & Apartemen Ambasador No. R 12 A, Lantai Dasar Jl. Prof. Dr. Satrio RT. 08 RW. 03 Kel. Karet Kuningan, Kec. Setiabudi, Jakarta Selatan Telp. : (021) 5760010    Fax. : (021) 5760014 KFO Energy Building - Marketing Corporate Banking Group Energy Buildng 18th Floor Jl. Jend. Sudirman Kav.52-53 lot 11A, SCBD Jakarta Selatan 12190 Telp. : 021 - 2505252 KFNO Tebet - Asset Restructuring & Recovery (ARR) Jl. Prof. Dr. Supomo No. 47 Kel. Tebet Barat, Kec. Tebet Jakarta Selatan Telp. : (021) 8301016    Fax. : (021) 8309812 CENTRAL JAKARTA KFNO Tomang Tol - Call Center 3rd and 4th Floor Jl. Jalur Lambat Tol No. 8, Kel. Kedoya Selatan, Kec. Kebon Jeruk, Jakarta Barat Telp. :14041 Fax. : (021) 58358375, 58358376, 58358377, 58358378 KFNO Area Jawa Timur - Human Resources (HR) Jl. Panglima Sudirman No. 74, Surabaya 60271 Telp. : (031) 5355461 Fax. : (031) 5355467 KFNO Plaza 3 Pondok Indah - Credit Administration & Operation Micro Finance Plaza 3 Pondok Indah Jl. TB Simatupang Blok C 6-7, Kel. Pondok Pinang, Kec. Kebayoran Lama, Jakarta Selatan 12310 Telp. : (021) 75816241 Fax. : (021) 7505131 Annual Report CIMB NIAGA 2017 BRANCH OFFICE Cikini Jl. Cikini Raya No. 71A, Jakarta 10330 Telp : (021) 2301005 ext 100 Fax. : (021) 2301236 Gambir Jl. Kwitang No.17-18 Gambir Jakarta 10110 Telp : (021) 2300687/3906304 Fax. : (021) 2304961 Kebon Sirih Jl. Kebon Sirih No.33, Jakarta 10340 Telp. :(021)2301179 Fax. :(021)2300918 Menteng Jl. Hos Tjokroaminoto No.81, Jakarta Pusat 10310 Menara Merdeka Menara Merdeka GF Unit 01 Jl. Budi Kemuliaan I No.2, Kel. Gambir Kec. Gambir Jakarta 10110 Telp. : (021) 29573895 Fax. : (021) 29573897 Citywalk Jl. KH Mas Mansyur No. 24A Kav. 121 Jakarta Pusat 10220 Pejompongan Jl. Penjernihan No.1 No.1A/A dan 1A/B Kel. Bendungan Hilir Kec. Tanah Abang Jakarta Pusat 10210 Telp. : (021) 5714507 & 5714514 Sentral Senayan II Gedung Sentral Senayan II GF Unit No.201 D Jl. Asia Afrika No.8 Senayan Jakarta Pusat 10270 Telp. : (021) 29036707 s/d 29036709 Fax. : (021) 29036718 Plaza Sinar Mas Land Plaza Sinar Mas Land Tower 3 GF Jl. MH Thamrin No.51, Jakarta 10350 Telp. : (021) 3929489 Fax. : (021) 3929487 Wisma Keiai Wisma Keiai, Ground Floor Jl. Jend. Sudirman Kav. 3, Jakarta 10220 Telp. : (021) 51000091 - 3 Fax. : (021) 51000096 Grand Indonesia Grand Indonesia Shopping Town 5th Floor Jl. MH Thamrin No.1, Jakarta 10310 Plaza Indonesia Jl. MH Thamrin Kav 28-30 Unit L5 # E16A - E 17 (Plaza Indonesia Retail Extention) Jakarta 10350 Telp. : (021) 39838270 Fax. : (021) 2303622 Wahid Hasyim Jl. Wahid Hasyim No. 177 A-B Jakarta 10250 Telp. :(021)3921034 Fax. :(021)3921031 Metro Tanah Abang Banking Center Lantai 7 unit 20 Pusat Pertokoan PGMTA Jakarta 10240 Telp. : (021) 30039275 & 30039276 Pasar Tanah Abang Blok A Ps. Tanah Abang Blok A Basement 1 Los F No.87 Jl. Fachrudin, Jakarta Pusat 10250 Telp. : (021) 23571108 Fax. : (021) 23572298 Cempaka Putih 68 Jl. Letjend. Suprapto No. 68 Jakarta Pusat 10520 Telp. : (021) 4204111 Fax. : (021) 4203366 627
  628. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management OFFICE NETWORK ADDRESSES Cempaka Mas Rukan Graha Cempaka Mas No . BL A/20 Jl. Letjend. Suprapto, Jakarta 10620 Telp. : (021) 4215960 Fax. : (021) 42885277 Gajah Mada Jl. Gajah Mada No. 18, Jakarta 10130 Telp. : (021) 6385667 Fax. : (021) 63857612 Pecenongan Ruko Pecenongan Raya No. 17 E Jl. Pecenongan Raya No. 17-E RT 003/003 Kel. Kebon Kelapa Kec. Gambir Jakarta Pusat 10110 Telp. : (021) 3848150 ext. 106 Fax. : (021) 3848152 Hayam Wuruk Jl. Hayam Wuruk no.2 AA - DD dan 3 A-B Jakarta 10120 Telp. : (021) 2311638 Fax. : (021) 2310489 Suryopranoto Jl. Suryopranoto no.1 - 9 Komp. Delta Building Blok A No. 18 Jakarta Pusat 10160 Telp. : (021) 3802829 Fax. : (021) 3840642 Jayakarta Jl. Pangeran Jayakarta 117 Blok A6 - 7 Jakarta Pusat 10730 Telp. : (021) 6008387 Fax. : (021) 6599713 Gunung Sahari 78 Jl. Gunung Sahari Raya No. 78 Jakarta 10610 Telp. : (021) 4262630/4266464 Fax. : (021) 4263294 Pintu Air Jl. Pintu Air Raya no. 7 Blok A2 - 3 Jakarta Pusat 10710 Telp. : (021) 3518985 Fax. : (021) 3518986 Kemayoran Jl Angkasa No. 20 M Kemayoran Jakarta Pusat 10610 Telp. : (021) 4269537 Fax. : (021) 4207847 Pasar Baru Jl. Pasar Baru no. 88 Jakarta Pusat 10710 Telp. : (021) 3805609 Fax. : (021) 3458544 628 Senayan City Mall senayan city unit 6-04, 6th Floor Jl. asia afrika Roxy Mas Komp. Roxy Mas Blok B 1 No.4 Jl. Kh. Hasyim Ashari No.125, Jakarta Pusat 10150 Cideng Jl. Cideng Barat No.61 - 61A, Jakarta 10150 Telp. : (021) 3859633 Fax. : (021) 3859638 SOUTH JAKARTA Gatot Subroto Berita Satu Plaza (formerly Citra Graha) lt. Dasar Jl. Gatot Subroto Kav.35-36 Jakarta 12950 Telp. : (021) 5205670-90 Fax. : (021) 2522526 Bellagio The Bellagio Boutique Mall Kawasan Mega Kuningan Barat IX Lt. G No. OG-10 Setiabudi Jakarta 12950 Telp. : (021) 30066176 Fax. : (021) 30066174 Kuningan Plaza Kuningan Plaza South Tower Suite 101 Jl. HR Rasuna Said Kav. C11-14 Jakarta Selatan 12940 Telp. : (021) 2521669 Fax. : (021) 2521974 Kota Kasablanka Mall Kota Kasablanka LG 100 Jl Casablanca Raya Kav 88 Jakarta Selatan 12870 Telp. : (021) 29465146 Fax. : (021) 29465150 Tempo Scan Tempo Scan Tower 2nd Floor Jl. HR Rasuna Said Kav.3-4 Jakarta Selatan 12950 Telp. : (021) 5272801 Fax. : (021) 5272806 Setiabudi Setiabudi Building II 1st Floor room 101b Jl. HR Rasuna Said Kav. 62 Kuningan, Jakarta 12950 Telp. : (021) - 2523236 Fax. : (021) 2522376 Wisma Metropolitan Wisma Metropolitan II Jl. Jend. Sudirman Kav. 29-30 Jakarta 12920 Telp. : (021) 2510584-89 Fax. : (021) 2510583 Menara Satrio Menara Standard Chartered Unit GF 3-5 Jl. Prof Dr. Satrio Kav. 164 Karet Semanggi, Setiabudi Jakarta Selatan 12930 Telp. : (021) 2552055 Fax. : (021) 25532065 Mall Ambassador Ruko Mall Ambasador no.12 a Jl. Satrio Rt 08/03, Jakarta 12950 Telp. : (021) 57931047-9 Fax. : (021) 57931046 Universitas Atmajaya Kampus Atmajaya Lt. Dasar gedung Van Lith Jl. Jend. Sudirman No. 51 Jakarta 12930 Telp. : (021) 5708802/572 2224 Fax. : (021) 5722224 Ciputra World Mall Ciputra World Mall Ciputra World (Lotte Avenue Shopping) 2F Floor Jl. Prof. Dr. Satrio Kav. 11. Jakarta 12940 Telp. : (021)58358375 Ext. 4058 Graha CIMB Niaga Graha CIMB Niaga Jl. Jend. Sudirman Kav. 58 Jakarta Selatan 12190 Telp. : (021) 2505050 Fax. : (021) 2505458 Graha CIMB Niaga Graha CIMB Niaga Jl. Jend. Sudirman Kav. 58 Jakarta Selatan 12190 Mall Ratu Plaza Mall Ratu Plaza Jl. Jend. Sudirman Kav 9. Lt. Ground Unit G, Jakarta 12190 Telp. : (021)58358375 Ext.3990 Stock Exchange Building Gd. BEJ Tower 2 GF Suite G 03-04 Jl. Jend. Sudirman Kav.52-53 Jakarta 12190 Telp. : (021) 5151231 Fax. : (021) 5151235 Annual Report CIMB NIAGA 2017
  629. Supporting Business Review Corporate Governance Report BEJ Gd . BEJ Tower 2 GF Suite G 03-04 Jl. Jend. Sudirman Kav.52-53 Jakarta 12190 Pacific Place Mall Pacific Place 3rd Floor unit 3-21SCBD Jl. Jend Sudirman Kav.52-53 Jakarta 12920 Telp. : (021) 57973266/3447/3609 Fax. : (021) 57973849 Corporate Social Responsibility Others Corporate Data Arcadia Simatupang Perkantoran Hijau Arcadia Tower E Ground Floor Jl. TB Simatupang Kav. 88 Jakarta 12520 Telp. : (021) 78837663 Fax. : (021) 78837721 Palmerah Barat Jl. Palmerah Barat No.32 G Jakarta Barat 12210 Telp. : (021) 5362825 Fax. : (021) 5362822 Duta Mas Fatmawati Komp. Pertokoan Duta Mas Fatmawati Blok B1 No.3 Kemang Raya 1 Jl. Kemang Raya No. 1 Bangka Mampang Prapatan, Jakarta 12730 Telp. : (021) 7199272/7199279 Fax. : (021) 7199259 Bintaro Sektor I Jl. Bintaro Raya Blok E 15-16 Bintaro Jaya Sektor I, Jakarta 12320 Telp. : (021) 73880088 Fax. : (021) 73881688 Kemang Raya 47 Jl. Kemang Raya No. 47-D Jakarta 12730 Telp. : (021) 7199812/7199837 Fax. : (021) 7199732 Pondok Indah Icon Pondok Indah Office Park Gedung A Unit GF 01 & 101 Jl. Metro Pondok Indah Sektor 3 Pondok Indah - Jakarta Selatan 12310 Telp. : (021) 75904899 Fax. : (021) 75904898 Melawai Jl. Melawai Raya No. 50, Jakarta 12130 Telp. : (021) 2700250 Fax. : (021) 2700248 Metro Pondok Indah Jl. Metro Duta Niaga Pondok Indah Plaza I Blok II UA Kav. 67-69 Jakarta 12310 Telp. : (021) 7503541 ext 100 Fax. : (021) 7513915 Sentraya Menara Sentraya, Jl. Iskandarsyah II No.2, Kebayoran Baru, Jakarta 12160 Telp. : (021) 2700555 Fax. : (021) 2700207 Permata Hijau Jl. Komp.Permata Hijau Blok D No. 30 RT 15/RW 12, Jakarta Selatan 12210 Telp. : (021) 5302315 Fax. : (021) 5302314 Wolter Monginsidi Jl. Wolter Monginsidi No.88 J Jakarta Selatan 12000 Telp. : (021) 2702823-24 Fax. : (021) 7236369 Fatmawati 20 Jl. RS. Fatmawati No. 20 RT.001/03 Kel. Cipete Selatan Kec. Cilandak Jakarta Selatan 12410 Telp. : (021) 7656523 Fax. : (021) 7504812 Annual Report CIMB NIAGA 2017 Panglima Polim Jl. Panglima Polim Raya No.81, Kebayoran Baru Tebet Jl. Prof. Dr. Supomo SH No. 15 A Kec. Tebet Kel. Tebet Barat Jakarta Selatan 12810 Telp. : (021) 8301774 ext 1333 Fax. : (021) 8299032 Lapangan Roos Jl. Lapangan Ros Raya II No.8 Kec. Tebet Kel. Tebet Timur RT 005/RW 01, Jakarta Selatan 12820 Telp. : (021) 8293751-7 Fax. : (021) 8293758 Mugi Griya Gd. Mugi Griya Lantai Dasar R. 101 Jl. MT. Haryono Kav. 10 Jakarta Selatan 12810 Telp. : (021) 83792322-26 Fax. : (021) 83792320 Warung Buncit Jl. Mampang Prapatan No.101 Jakarta 12790 Telp. : (021) 7940250 Fax. : (021) 7989260 Consolidated Financial Report Graha Mampang Jl. Buncit Raya No. 100 Jakarta Selatan 12790 Telp. : (021) 7982170 Fax. : (021) 7970551 Pasar Minggu Jl. Pasar Minggu KM.19 No.98 C Jakarta Selatan 12510 Telp. : (021) 7946220 Fax. : (021) 7946218 Wisma Pondok Indah Wisma Pondok Indah I Lt. Dasar suite G01 Jl. Sultan Iskandar Muda Kav. V - TA Pondok Indah, Jakarta Selatan 12310 Telp. : (021) 7697101 Fax. : (021) 7697109 Sultan Iskandar Muda Jl. Sultan Iskandarmuda No.35 F Jakarta Selatan 12240 Telp. : (021) 72787656 Fax. : (021) 72787663 Pondok Indah Plaza 3 Pondok Indah Plaza 3 Komp. Pertokoan Pondok Indah Plaza 3 Blok C 6-7 Jl. Tb Simatupang Mall Gandaria City Mall Gandaria City, LG Floor, Unit L-52d Jl. Sultan Iskandar Muda Kebayoran Lama Utara Jakarta Selatan 12240 PIM 2 Mall Pondok Indah 2 GF unit No. G33D Jl. Metro Pondok Indah Jakarta 12310 Telp. : (021) 75920456 Fax. : (021) 75920460 WEST JAKARTA Wisma Slipi Gedung Wisma Slipi 1st Floor Jl. Letjend. S. Parman Kav.12 Jakarta Barat 11480 Telp. : (021) 5486103-06 Fax. : (021) 5486109 Jembatan Lima Jl. KH. M. Mansyur 79 - 79A Jakarta 11250 Telp. : (021) 63851871 Fax. : (021) 6348435 629
  630. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management OFFICE NETWORK ADDRESSES Kota Jl . Kopi No.12, Jakarta Barat 11230 Telp. : (021) 6900357/58 Fax. : (021) 6900211/12 Mangga Besar Jl. Mangga Besar Raya No. 84 Jakarta Barat 11180 Telp. : (021) 2601876 Fax. :(021)2601874 Lokasari Jl. Mangga Besar Raya 81 Komp. THR Lokasari Plaza Blok B 53 Jakarta Barat 11180 Telp. : (021) 2601694 Fax. :(021)2601726 Taman Palem Perumahan Taman Palem Lestari Blok D1 No.2 Kec. Cengkareng Kelurahan Cengkareng Barat Jakarta Barat 11730 Telp. : (021) 55962942/49 Fax. : (021) 55962949 City Resort Jl. Lingkar Luar Kamal Raya Komp. City Resort Residences Blok D No.2 Kel. Cengkareng Timur Kec. Cengkareng, Jakarta 11730 Telp. : (021) 56955601-04 Fax. : (021) 56955653 Pintu Kecil Jl. Pintu Kecil no. 28 - 29 Jakarta Barat 11230 Telp. : (021) 6909223 Fax. : (021) 6911212/2459 Sawah Besar Jl. S. Wiryopranoto no. 9 Jakarta Barat 11160 Telp. : (021) 6009422 Fax. : (021) 2601545 Lindeteves Trade Center Gedung Lindeteves Trade Center GF-2, Blok Ra 38&39, Jl. Hayam Wuruk no.127 Karang Anyar Jl. Karang Anyar no. 55 Blok A1 12A Jakarta Pusat 11740 Telp. : (021) 6261259 Fax. : (021) 6591917 Taman Sari Jl. Kebon Jeruk III No. 39 A Maphar Jakarta Barat 11150 Telp. : (021) 6266278 Fax. : (021) 6008606 630 Central Park Ruko Garden Shopping Arcade Blok C 9 AH. JL. S. Parman Kav.25 Jakarta 11470 Telp. : (021) 29208989 Fax. : (021) 29208990/91 BluGreen Gedung The Bluegreen, Jl. Lingkar Luar Barat Kav. 88 Puri Indah, Jakarta Barat 11740 Telp. : (021) 29071145 Fax. : (021) 29071147 Mall Taman Anggrek Mal Taman Anggrek GF LOT VII Jl. S. Parman Kav.21 Jakarta Barat 11470 Telp. : (021) 5639055 Fax. : (021) 5639077 Graha Kencana Ruko Graha Kencana Blok BF Jl. Pejuangan Raya no. 88 Kebon Jeruk, Jakarta Barat 11530 Telp. : (021) 5362001 Fax. : (021) 5332446 Tanjung Duren Jl. Tanjung Duren Raya no.129 Jakarta Barat 11470 Telp. : (021) 56968507 Fax. : (021) 56942893 Taman Duta Mas Taman Duta Mas Blok D9AJl Pangeran Tubagus Angke Kel. Jelambar Baru Kec. Grogol Petamburan Jakarta 11460 Telp. : (021) 56974428 Fax. : (021) 56974428 Central Park Mall Central Park Mall GF Unit L-218 Jl. S. Parman Kav. 28, Jakarta 11470 Telp. : (021) 56985338-40 Fax. : (021) 56985337 Daan Mogot Jl. Daan Mogot No.95 C Kec. Kebon Jeruk Kel. Duri Jakarta Barat 11510 Telp. : (021) 5664537 Fax. : (021) 5604070 Jelambar Jl. Jelambar Baru Raya No.6E Kec. Grogol Petamburan Kel. Jelambar Baru Jakarta Barat 11460 Telp. : (021) 5600532 Fax. : (021) 5600441 Green Ville Komp. Green Ville Blok AX No.16 Jakarta Barat 11510 Telp. : (021) 5644656 Fax. : (021) 5644657 Citra Garden 1 Perum Citra Garden I Blok I 1 No.15 Kalideres, Jakarta Barat 11840 Telp. : (021) 5417871 - 72 Fax. : (021) 6199827 Kebon Jeruk Intercon Komp. Intercon Plaza Blok F 12 - 12A Jl. Meruya Ilir, Jakarta Barat 11630 Telp. : (021) 5306725 Fax. : (021) 5845570 Puri Botanical Garden Puri Botanical Garden Blok H7 No.29 Jl. Joglo Raya Jakarta Barat 11640 Telp. : (021) 58906390 Fax. : (021) 58906391 Tomang Raya Gedung Rabana GF & 1st F Jl. Tomang Raya No.48 A Jakarta Barat 11430 Telp. : (021) 5669801 Fax. : (021) 5671588/95 Tomang Tol Jl. Taman Kedoya Baru No.8 Kedoya Selatan, Jakarta Barat 11520 Telp. : (021) 5819757 Fax. : (021) 5819743 Green Garden Komp. Ruko Green Garden Blok I-9 no.11, Kec. Kebon Jeruk Kel. Kedoya Utara, Jakarta Barat 11520 Telp. : (021) 581717 Fax. : (021) 5812866 Puri Indah Komp. Ruko Sentra Niaga Puri Indah Blok T1 No.26 - 27, Jakarta Barat 11610 Telp. : (021) 58357735 Fax. : (021) 58357502 Pasar Puri Ruko Pasar Puri Blok A No. 9 Jl. Puri Indah Raya, Jakarta 11610 Telp. : (021) 58304751 Fax. : (021) 5803359 NORTH JAKARTA Kelapa Gading TN Jl. Bulevard Raya Blok TN II No. 1-4 Kelapa Gading, Jakarta Utara14240 Telp. : (021) 4520212 Fax. : (021) 4532722/3 Annual Report CIMB NIAGA 2017
  631. Supporting Business Review Corporate Governance Report Mall Kelapa Gading Mal Kelapa Gading 1 Unit G-178 Kelapa Gading , Jakarta Utara 14240 Telp. : (021) 4529695 Fax. : (021) 4530691 Kelapa Gading LB Jl. Boulevard Raya LB 3 No. 34-36 Kelapa Gading 14240 Telp. : (021) 4500195 ext 100 Fax. : (021) 4502365 Bukit Gading Indah Jl. Bukit Gading Raya Blok G/28 Kelapa Gading Barat Jakarta Utara14240 Telp. : (021) 4516239 Fax. : (021) 4516227 Kelapa Gading Bulevard Barat Jl. Bulevard Barat Raya Blok LC 6 No. 41 Kelapa Gading Jakarta Utara 14240 Telp. : (021) 4516753 Fax. : (021) 4525165 Mal Artha Gading Jl. Artha Gading Selatan No. 1 Lantai UG, Kel. Kelapa Gading Barat Kec. Kelapa Gading Jakarta Utara 14240 Sunter Jl. Sunter Paradise Blok F 20 No. 1-2 Sunter, Jakarta Utara 14350 Telp. : (021) 6459984 Fax. : (021) 64711499 Griya Inti Sunter Perumahan Griya Inti Sentosa Blok A1 Kav. 21 Jl. Griya Utama Sunter No.14 Kel. Sunter Agung Kec. Tanjung Priok Jakarta Utara 14350 Telp. : (021) 6406144 Fax. : (021) 6406143 Tanjung Priok Jl. Enggano Blok C Kav.11-I Kel. Tanjung Priok Kec. Tanjung Priok Jakarta Utara 14320 Telp. : (021) 43925292-98 Fax. : (021) 43925299 Marunda Blok C 2 Unit Usaha Kawasan Marunda Jl. Lampung No. 1 Cilincing Kawasan Berikat Nusantara Marunda, Jakarta Utara 14120 Telp. : (021) 4416528 Fax. : (021) 4416530 Annual Report CIMB NIAGA 2017 Corporate Social Responsibility Jembatan Dua Kompleks Robinson-Jembatan Dua Jl. Jembatan Dua Raya Blok BJ - BL No.82, Jakarta Utara 14450 Telp. : (021) 6603993 Fax. : (021) 6610928 Permata Kota Kompleks Ruko Permata Kota Jl. Pangeran Tubagus Angke No.170, Blok A No.3 Jakarta Utara 14450 Telp. : (021) 66674602-606 Fax. : (021) 66674607 Gunung Sahari 42 Jl. Gunung Sahari Raya No. 42E Jakarta Pusat 14410 Telp. : (021) 6265460 Fax. : (021) 6260908 Ancol Jl. Lodan Raya no.1 AM, Ancol Barat Jakarta Barat 14430 Telp. : (021) 6900370-5 Fax. : (021) 69003705 Mangga Dua Rutex Ruko Textile Blok C6 no. 3 Jl. Arteri Mangga Dua Jakarta Utara 14430 Telp. : (021) 6011456 Fax. : (021) 6011452 Mangga Dua Pasar Pagi Ps. Pagi Lt. 3 Blok D No. 3 Jl. Mangga Dua Raya Jakarta Utara 14430 Telp. : (021) 6599395 Fax. : (021) 6599402 Muara Karang Jl. Muara Karang Raya No.35-37 Jakarta Utara 14450 Telp. : (021) 6610961 Fax. :(021)6610662 Pantai Indah Kapuk Rukan Exlusive Bukit Golf Mediterania Blok A No.30 Kec. Penjaringan, Kel. Kamal Muara Pantai Indah Kapuk Jakarta Utara 14460 Telp. : (021) 55966094 Fax. : (021) 5596 6134 Pluit Village Mega Mal Pluit Ruko No.24 Jl. Pluit Permai Kel. Penjaringan Kel. Pluit, Jakarta Utara 14450 Telp. : (021) 6683542 Fax. : (021) 66670151 Others Corporate Data Consolidated Financial Report PIK Avenue PIK Avenue Mall 3rd Floor Jl. Pantai Indah Kapuk Boulevard, Jakarta Utara Pluit Jl. Pluit Sakti Raya No.113-115 Jakarta Utara 14450 Telp. : (021) 6622081 Fax. : (021) 6631105 Mal Emporium Pluit Jl.Pluit Selatan Raya Kawasan CBD Pluit Blok S-6 Lantai UG Kel. Pluit Kec. Penjaringan Jakarta Utara 14440 Teluk Gong Komp. Duta Harapan Indah Jl. Kapuk Muara Blok D No. 3 Jakarta Utara 14460 Telp. : (021) 6602290 Fax. : (021) 6603682 EAST JAKARTA Jakarta Garden City Komp. Rukan The Avenue No.8-025, Perumahan Jakarta Garden City, Raya Cakung-Cilincing Km 05. Jakarta Timur Telp. : (021) - 29061782 Fax. : (021) - 29061786 Pasar Induk Kramat Jati Ruko Pasar Induk Kramat Jati Jl. Raya Bogor Uniko D2 No.17 & 18 Jakarta Timur 13510 Telp. : (021) 87788358 Fax. : (021) 87788345 Cibubur Indah Cibubur Indah Blok B No. 1 Jl. Raya Lapangan Tembak 21 Jakarta 13720 Telp. : (021) 8712009-11 Fax. : (021) 8711123 Kranggan Permai Jl. Alternatif Cibubur Ruko Kranggan Permai Blok RT-16 No.10 Kel. Jatisampurna Kec. Pondok Gede, Bekasi 13720 Telp. : (021) 84304757/52 Telp. : (021) 84594516 Kalimalang Jl. Tarum Barat Blok Q No. 2 Kalimalang Jakarta 13450 Telp. : (021) 8649361 - 4 Fax. : (021) 8656029 631
  632. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management OFFICE NETWORK ADDRESSES Jatinegara Komplek Bonagabe Blok A3-A4 Jl . Raya Jatinegara Timur No. 101 Jakarta Timur 13430 Telp. : (021) 8197555 Fax. : (021) 8515442 Otista Jl. Otto Iskandar Dinata No.102 Bandung 40181 Telp. : (022) 4204173 Fax. : (022) 4200924 Astana Anyar Jl. Astana Anyar No. 115 Kec. Astanaanyar Kel. Cibabat Bandung 40241 Telp. : (022) 6006043 Fax. : (022) 6011630 Kampung Melayu Jl. Gapura Pasar No. 14-16 Pasar Regional Jatinegara Jakarta Timur 13310 Telp. : (021) 8190562 Fax. : (021) 8198980 Kota Baru Parahyangan Ruko Bandoeng Tempo Doeloe Jl. Pitaniaga No.6 Tatar Pitaloka Kota Baru Parahyangan 40553 Telp. : (022) 6803725 Fax. : (022) 6803675 Pasar Induk Cipinang Komplek Pasar Beras Cipinang Blok HA.15-16 Cipinang Jakarta Timur 13230 Telp. : (021) 4723458 Fax. : (021) 4723330 Lingkar Selatan Jl. Peta No. 65, Bandung 40243 Telp. : (022) 5231940 Fax. : (022) 5231944 Matraman Jl. Matraman Raya No. 140 Jakarta Timur 13140 Telp. : (021) 8504838 Fax. : (021) 2800132 Rawamangun Pratama Gedung Pratama Jl. Pemuda No. 296 Rawamangun Jakarta 13220 Telp. : (021) 4707067 ext 103 Pulo Gadung Jl. Rawa Terate II Gd. Poliklinik PT GIEP Kawasan Industri Pulogadung, Jakarta Timur 13930 Telp. : (021) 4601534 Fax. : (021) 4601432 Rawamangun Arion Arion Mall Ruang G 15 Jl. Pemuda Kav. 3-4 Jakarta Timur 13220 Telp. : (021) 4713089 Fax. : (021) 4712283 WEST JAVA BANDUNG Asia Afrika Wisma CIMB Niaga Jl. Jend Gatot Subroto no.2 Bandung 40262 Telp. : (022) 7306622 Fax. : (022) 7307500 Ahmad Yani Jl. Terusan Jakarta B1 no. 77 H Komp. Lucky Plaza, Bandung 40292 Telp. : (022) 7102677 Fax. : (022) 7101278 632 Rajawali Jl. Rajawali Barat No.65 Kel. Maleber Kec. Andir, Bandung 40184 Telp. : (022) 6031533 Fax. : (022) 6031528 Kopo Bihbul Jl. Kopo Bihbul No. 94 Bandung 40228 Telp. : (022) 5416441 Fax. : (022) 5417967 Sumber Sari Jl. Soekarno Hatta No. 132 A Bandung 40222 Telp. : (022) 6070432 & 6070433 Setiabudi Jl. Setiabudi no.57, Kec. Sukasari Kel. Gegerkalong Bandung 40153 Telp. : (022) 2038302 Fax. : (022) 2038376 Buah Batu Jl. buah batu no.143 Pajajaran Jl. Pajajaran No. 85 Kel. Arjuna Kec. Cicendo, Bandung 40173 Telp. : (022) 6037717 & 6037718 Fax. : (022) 6036899 Lembang Jl. Raya Lembang No. 274 Lembang 40391 Telp. : (022) 2786516 Fax. :(022)2786201 Dago Jl. Ir. H. Juanda No. 165 Kel. Lebak Siliwangi Kec. Coblong, Bandung 40115 Telp. : (022) 4241511 Fax. : (022) 4209743 Merdeka Jl. Merdeka No.52, Bandung 40117 Telp. : (022) 4200261 Fax. : (022) 4200260 Riau Jl. RE Martadinata No. 134 Bandung 40113 Telp. : (022) 4241852 Fax. : (022) 4241855 Lembong Jl. Lembong No. 7, Bandung 40111 Telp. : (022) 4233360 Fax. : (022) 4239158 Moch Toha Jl. Moch. Toha No. 191 Bandung 40253 Telp. : (022) 5226167 Fax. : (022) 5226167 SUMEDANG Abdurachman Jl. Mayor Abdurachman No.63 Sumedang 45322 Telp. : (0261) 201024/201025 (0261) 201026 GARUT Ahmad Yani Jl. Jend. Ahmad Yani No. 29 Garut 44117 Telp. : (0262) 231091/231373/231374 Fax. : (0262) 231092 CIANJUR Raya Tagog Jl. Raya Tagog No. 256, Cimahi 40525 Telp. : (022) 6647700 Fax. : (022) 6647100 Borma Dakota Jl. Dakota Raya No.109 Kel. Sukaraja Kec. Cicendo, Bandung 40175 Telp. : (022) 86065485-6 Fax. : (022) 86065459 Cokroaminoto Jl. HOS Cokroaminoto No.102 Kel. Muka Kec. Cianjur, Cianjur 43215 Telp. : (0263) 261722 Fax. :(0263)263618 Annual Report CIMB NIAGA 2017
  633. Supporting Business Review Corporate Governance Report CIPANAS Jl . Raya Cipanas No.32 Ruko 4-5 Cipanas 43253 Telp. : (0263) 511650 Fax. : (0263) 515480 PURWAKARTA Veteran Jl. Vetaran No. 83 CIREBON Yos Sudarso Jl. Yos Sudarso No.26, Cirebon 45111 Telp. : (0231) 206991 Fax. : (0231) 201292 Balong Indah Plaza Balong Indah Plaza Jl. Pekiringan no.166, Cirebon 45111 Telp. : (0231) 234020 Fax. : (0231) 234022 Jatibarang Jl. Mayor Dasuki No. 24, Jatibarang Cirebon 45273 Telp. : (0234) 351460 Fax. : (0234) 351283 Kuningan Jl. Siliwangi No. 92 Kel. Purwawinangun, Kec. Kuningan Cirebon 45512 Telp. : (0232) 871878 Fax. : (0232) 871235 Losari Jl. Raya Losari Barat No. 136 Losari Cirebon 45192 Telp. : (0231) 831188 Fax. : (0231) 831021 Siliwangi Jl. Siliwangi No. 110, Cirebon 45123 Telp. : (0231) 206981 Fax. : (0231) 208036 SUKABUMI Martadinata JL. RE. Martadinata No. 72 Sukabumi 43112 Telp. : (0266) 242932 Fax. : (0266) 222050 Cibadak Jl. Suryakencana No.24-26 Sukabumi 43114 Telp. : (0266) 531525 Fax. : (0266) 531225 TASIKMALAYA Yudanegara Jl. Yudanegara No. 61 Tasikmalaya 46121 Telp. : (0265) 332056 Fax. : (0265) 334919 Annual Report CIMB NIAGA 2017 Corporate Social Responsibility Pasar Cikurubuk Jl. Residen Ardiwinangun Blok II/15 Komp. Ps Cikurubuk (d/h Jl. Pasar Baru II No.11 - 11A) Tasikmalaya 46181 Telp. : (0265) 311850 Fax. : (0265) 324990 HZ Mustofa Jl. HZ Mustofa No. 282 Tasikmalaya 46110 Telp. : (0265) 2354055 Fax. : (0265) 3354051 BOGOR Juanda Jl. Ir. H. Juanda No. 12, Bogor 16121 Telp. : (0251) 8325167 Fax. : (0251) 324730 Suryakencana Jl. Suryakencana No. 196 A Bogor 16131 Telp. : (0251) 8312121 Fax. : (0251) 8312312 Plaza Niaga Sentul Plaza niaga sentul 1 blok a no.1 Sentul City Padjajaran Jl. Pajajaran No. 33, Bogor 16128 Telp. : (0251) 8313456 Fax. : (0251) 8320845/8327292 Indah Plaza Pertokoan Bogor Indah Plaza Blok C No. 3 Jl. Baru Bogor 16162 Telp. : (0251) 8357921 Fax. : (0251) 8357923 V Point Ruko V Point Jl. Pajajaran No. 1 ZA & ZB Kec. Bogor Timur Kel. Sukasari Bogor 16142 Telp. : (0251) 8364040 Fax. : (0251) 8364025 Botani Square Botani Square Mall lt. GF, Jalan Raya Pajajaran, Tegallega, Bogor Tengah, Kota Bogor, Jawa Barat 16127 Cibinong - Mayor Oking Jl. Mayor Oking no.27 Blok A 4-6 Cibinong 16900 Telp. : (021) 8754006-7 Fax. : (021) 8753485 Cisalak Jl. Raya Jakarta Bogor Km 31 5 RT 01/06 Cisalak Pasar, Depok 16953 Telp. : (021) 87755936-38 Fax. : (021) 87735935 Others Corporate Data Consolidated Financial Report Cileungsi Jl. Raya Narogong Cileungsi Ruko Griya Kenari Mas Blok I No. 20-21, Cileungsi 16820 Telp. : (021) 8233785 Fax. : (021) 8231694 Citeureup Jl. Mayor Oking No. 19 - 20 Citeureup Bogor 16810 Telp. : (021) 8756055 Fax. : (021) 8753562 Cibubur Kota Wisata Kota Wisata Cibubur Boulevard Kota Wisata Komp. Ruko Sentra Eropa Type ruko Travalgar Square blok SE G No.1 & 2 Kel. Ciangsana Kec. Gunung Putri, Bogor 16968 Telp. : (0251) 8403615 Fax. : (0251) 8403620 DEPOK Cinere Jl. Raya Cinere No. 3 H - 3 I Kec. Limo Kab. Bogor Ds. Cinere, Depok 16514 Telp. : (021) 7543858 Fax. : (021) 7542467 Margonda Jl. Margonda raya no. 243 16423 FE Universitas Indonesia Fakultas Ekonomi Universitas Indonesia Depok 16424 Telp. : (021) 78890239-242 Fax. : (021) 78890243 BEKASI Juanda Jl.Ir. H. Juanda No. 137 Bekasi 17140 Telp. : (021) 88342515 Fax. : (021) 88342519 Ahmad Yani Jl. A. Yani Blok A-8 No. 15 Bekasi 17411 Telp. : (021) 88852401 - 3 Fax. : (021) 884 8681 Metropolitan Mall Mall Metropolitan 1st Floor No. 24 Jl Raya Kalimalang Bekasi 17144 Telp. : (021) 8848548-49 Fax. : (021) 8847955 Kemang Pratama Ruko Kemang Pratama Blok MM-21F Jl. Kemang Pratama Rawalumbu Bekasi 17116 Telp. : (021) 82425861/82431038/824 31758/82431668 Fax. : (021) 82432278 633
  634. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management OFFICE NETWORK ADDRESSES Cibubur Citra Grand Citra Grand Cibubur Blok R1 /06 Bogor 17435 Telp. : (021) 84598592 - 4 Fax. : (021) 84598616 Bekasi Barat Jl. KH. Noer Ali No.12-12A Kel. Kayuringin Jaya Bekasi Barat 17144 Telp. : (021) 88956668 Fax. : (021) 88956684 Lippo Cikarang Gd. Menara Pacific lantai dasar Jl. MH Thamrin Lippo Cikarang Bekasi 17550 Telp. : (021) 8972022 Fax. : (021) 8972495 Mega Mall Cikarang Ruko Mega Mall Blok B I Cibitung Center Kawasan Industri Cibitung Bekasi 17520 Telp. : (021) 8980403 Fax. : (021) 8980403 Cikarang Ruko Plaza Menteng Blok C No. 1 Jl. MH Thamrin Lippo Cikarang Kab. Bekasi Kec. Lemahabang Kel. Cibatu Bekasi 17550 Telp. : (021) 89902676 Fax. : (021) 89902668 Jababeka Jl. Niaga Raya Unit 2O & 2P Capitol Business Park Desa Pasir Sari Kec. Cikarang Selatan Kab. Bekasi Jawa Barat 17550 Telp. : (021) 89835892 - 3 Fax. : (021) 89835890 LG Cibitung Kawasan Industri MM2100 Jl. Jawa Blok G Ganda Mekar Cikarang Barat, Bekasi 17520 Telp. : (021) 8989190 Fax. : (021) 8989140 Cikarang Hankook Jl. Kenari Raya Blok G3 No.1 Delta Silicon 5, Lippo Cikarang 17550 Telp. : (021) 29577580/1 Fax. : (021) 29577582 Samsung Samsung Electronic Indonesia Jl. Jababeka Raya Blok F 29-33 Cikarang Bekasi 17520 Telp. : (021) 89837163 Fax. : (021) 8934273 634 Pondok Gede Ruko Pondok Gede Blok H 11-12 Jl Raya Pondok Gede No.1 Bekasi 17411 Telp. : (021) 8469515 Fax. : (021) 8469514 Jati Asih Jl. Raya Jati Asih No.27 Ruko 27F Bekasi 17424 Telp. : (021) 82424248 Fax. : (021) 82425062 Taman Harapan Indah Komp. Sentra Niaga Bulevar Hijau Blok SN No.6 Harapan Indah Kel. Pejuang Kec. Bekasi Barat Bekasi 17131 Telp. : (021) 88387036 Fax. : (021) 88387036 KARAWANG Sentra KIIC Sentra Kiic, Jl. Permata Raya, Lot C - A1, Karawang Barat 41361 Tuparev Jl. Tuparev No.150 Kel. Nagasari Kec. Karawang Kab. Karawang Jawa Barat 41312 Telp. : (0267) 412036 Fax. : (0267) 412037 BANTEN Cilegon City Square Ruko Cilegon City Square, Blok A Kav. No. 9 & 10, Kec. Cibeber, Kel. Kedaleman, Cilegon 42400 Telp. : (0254) - 383550 Fax. : (0254) 383551 Serang Hasanuddin JL. M. Hasanuddin No. 26 Kel. Kota Baru Serang, Banten 42112 Telp. : (0254) 201413 Fax. : (0254) 216526 TANGERANG Gading Serpong Jl. Gading Serpong Boulevard Ba 02 No.28&29 Gading Serpong Tangerang City Office Sudirman One Blok H 12, Jl Jend. Sudirman No 1 Tangerang 15117 Telp. : (021) 55782000 Fax. : (021) 55782001 Citra Raya Jl. Citra Boulevard Blok C1 No.09 R Ruko Citra Raya Tangerang 15710 Telp. : (021) 59402999 Fax. : (021) 59403666 LG Cirarab Jl. Tabri No.1 Desa Cirarab Bitung Tangerang 15820 Telp. : (021) 5979745 - 6 Fax. : (021) 5979747 Karawaci Gedung Menara CIMB Niaga Jl. Raya Diponegoro No.101 Lippo Village, Tangerang 15810 Telp. : (021) 5460301 Fax. : (021) 5460312 RS Siloam Gleneagles Jl. Siloam No.6, Lippo Village 16000 Tangerang 15811 Telp. : (021) 5469529 Fax. : (021) 5469530 Pinangsia Ruko Pinangsia Blok B 1 Jl. Imam Bonjol Karawaci Tangerang 15139 Telp. : (021) 5533331-2 Fax. : (021) 55778750 Universitas Pelita Harapan Dynaplast Tower GF Jl. MH. Thamrin Lippo Karawaci Tangerang 15811 Telp. : (021) 5461158-59 Fax. : (021) 5461227 Supermall Karawaci Supermall Karawaci FF Floor Jl. Boulevard Diponegoro 105 Curug Ds. Bencongan, Tangerang 15811 Sekolah Pelita Harapan Jl. Bulevar Palem Raya 2500 Lippo Village, Tangerang 15811 Telp. : (021) 5473521 Fax. : (021) 5473522 Cyber Park Jl. Bulevar Gajah Mada No.2056, Lippo Karawaci, Tangerang 15811 Telp. : (021) 55777786-7 Fax. : (021) 55777811 Daan Mogot Jl. Daan Mogot No. 58 Tangerang 15111 Telp. : (021) 5522830 Fax. : (021) 5521064 Annual Report CIMB NIAGA 2017
  635. Supporting Business Review Corporate Governance Report Taman Cibodas Duta Mas Plaza BlokA 33 Jl . Raya Gatot Subroto Km 4 Perum. Taman Cibodas Tangerang 15138 Telp. : (021) 5528486 Fax. : (021) 5527454 Kisamaun Jl. kisamaun No.40-42 Telp. :(021) 5524048/5524048/5521795 Fax. : (021) 5521744 Tangerang Selatan Bintaro Griya Niaga Griya Niaga II Jl. Wahid Hasyim Blok B-IV No.3 Bintaro Jaya Sektor VII Tangerang 15224 Telp. : (021) 29972456/400 Fax. : (021) 74862940 Ciledug Perum Pondok lestari Blok A I No.37 Jl. Raya Cileduk, Tangerang 15157 Telp. : (021) 5847507-8 Fax. : (021) 5847509 Bintaro Graha Raya Ruko Venice Arcade Blok JE No.01 Jl. Raya Graha Bintaro Kel. Pakujaya Kec. Serpong Utara, Tangerang 15324 Telp. : (021) 5397600 Fax. : (021) 5397699 Ciputat Jl. Dewi Sartika No.25A-25C Ciputat Tangerang 15411 Telp. : (021) 7491325 Fax. : (021) 7491324 Pamulang Permai Jl. Surya Kencana No.9, Pamulang Alam Sutera Icon Synergi Building (D/H Alam Sutera Office Tower) LG and UG Floor Jl. Jalur Sutera Barat Kav.17 Alam Sutera Serpong Tangerang 15325 Telp. : (021) 29972556-8 Fax. : (021) 29972557 Alam Sutera Ruko Jalur Alam Sutera Kav. 29d No.46 Kel. Pakulonan Kec. Serpong Kab. Tangerang 15326 Telp. : (021) 53140811-5 Fax. : (021) 53140816 ITC BSD ITC BSD Ruko ITC BSD No. 26 & 27 Jl. Pahlawan Seribu Kec. Serpong Kel. Lengkong Wetan, Tangerang 15322 Telp. : (021) 53161844 Fax. : (021) 53161948 Annual Report CIMB NIAGA 2017 Corporate Social Responsibility Others Corporate Data WTC Serpong Ruko WTC Matahari Serpong No.5879 Jl. Raya Serpong No.39 Serpong Tangerang 15326 Telp. : (021) 5374580 Fax. : (021) 5374630 Pasar Modern BSD Ruko Golden Madrid Blok C no.7 Bumi Serpong Damai, Tangerang 15318 Telp. : (021) 53160453 Fax. : (021) 53160454 RS Bethsaida Bethsaida Hospital Distric Tivoli No.1 Paramount Serpong Jl. Boulevard Gading Serpong Tangerang 15810 Telp. : (021) 29542634 Fax. : (021) 29542630 AEON Mall AEON Mall Lt. Dasar Unit G-52, Grand Boulevard BSD City, Tangerang CENTRAL JAVA SEMARANG Gajah Mada Jl. Gajah Mada No.184 Kec. Semarang Timur Kel. Pekunden Semarang 50139 Telp. : (024) 3569109 Fax. : (024) 3521916 Banyumanik Jl. Sukun No.52 Komp. Undip 2 RT 006/016 Kec. Banyumanik Kel. Srondol Wetan, Semarang 50263 Telp. : (024) 7478766 Fax. : (024) 7478770 Candi Jl. Sultan Agung No. 121 Semarang 50235 Telp. : (024) 8507366 Fax. : (024) 8507367 Ungaran Jl. Gatot Subroto No. 106 D Semarang 50517 Telp. : (024) 6922211 Fax. : (024) 6925253 Cendrawasih Jl. Cendrawasih Kompleks Pertokoan Jurnatan B No.1, Semarang 50137 Telp. : (024) 3540034 Fax. : (024) 3541691 Consolidated Financial Report Gang Besen Jl. Gang Besen 95 C, Semarang 50137 Telp. : (024) 3565509 Fax. : (024) 3565507 Gayam Sari Jl. Brigjen Sudiarto Kav. 5-6 Ruko Gayam Sari, Semarang 50167 Telp. : (024) 6724007 Fax. : (024) 6724008 Sudirman Jl. Jend. Sudirman 134 Kel. Kupang Kec. Ambarawa 50612 Telp. : (0298) 592455 Fax. : (0298) 592455 Pemuda 102 Jl. Pemuda 102-104, Semarang 50133 Telp. : (024) 3518900 Fax. : (024) 3540184 Gatot Subroto Kawasan Industri Candi Jl Gatot Subroto Blok F1/VIII Semarang 50181 Telp. : (024) 76633170 Fax. : (024) 7611085 Hasanudin Komplek Permata Hijau Bb.3 Pondok Hasanudin Kel. Kuningan Kec. Semarang Utara, Semarang 50171 Telp. : (024) 3510171 Fax. : (024) 3510418 Kaligawe Jl. Raya Kaligawe Km 4 No. B11 Semarang 50111 Telp. : (024) 6581169 Fax. : (024) 6585231 Mataram Jl. M.T. Haryono 627 Kel. Sarirejo Semarang 50124 Telp. : (024) 8319911 Fax. : (024) 8317557 Siliwangi Jl. Jend. Sudirman 35 Kel. Krobokan Kec Semarang Barat Semarang 50141 Telp. : (024) 7606114 Fax. : (024) 7626147 RS Telogorejo Jl. Achmad Dahlan Blok A6/11 Komp Rs Telogorejo Kel. Pekunden Kec. Semarang Tengah (Kerjasama Rs) 50136 Telp. : (024) 8412401 Fax. : (024) 8412402 Dargo Indah Plaza Dargo Indah Plaza Blok D No. 126 Jl. Dr. Cipto, Semarang 50125 Telp. : (024) 3561441 Fax. : (024) 3561441 635
  636. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management OFFICE NETWORK ADDRESSES Ken Saras RS Ken Saras GF Jl . Raya Soekarno Hatta Km 30 Samban-Bawen Kab. Semarang Jawa Tengah 50552 BOYOLALI Pandanaran Jl. Pandanaran No.84, Boyolali 57313 Telp. : (0276) 325454 Fax. : (0276) 321346 Kudus Agil Kusumadya Jl. Agil Kusumadya No. 5 A Kudus 59343 Telp. : (0291) 432962 Fax. : (0291) 432967 Ahmad Yani Jl. A. Yani No. 31, Kudus 59317 Telp. : (0291) 432323 Fax. : (0291) 432326 PATI Sudirman Jl. Jend. Sudirman 89 Kel. Patilor Kec. Pati Pati 59117 Telp. : (0295) 382155 Fax. : (0295) 382200 DEMAK Bintoro Ruko Bintoro No. 13 Kel. Bintoro Kec. Demak 59511 (SIP: surat ijin Penempatan) Telp. : (0291) 686519 Fax. : (0291) 686520 MAGELANG Rejotumoto Jl. Tidar Rejotumoto No. 16 Magelang 56151 Telp. : (0293) 364391/364160 Metro Square Komp. Pertokoan Metro Square Ruko F No.18 Muntilan Jl. Pemuda Ruko No. A II/4 Ds. Tamanagung Kec. Muntilan Kab. Magelang Jawa Tengah (SIP) 56414 Telp. :(0293)587451 Fax. : (0293) 587451 PURWOREJO Kutoarjo Jl. Diponegoro 141 C Kel. Kutoarjo Kec. Kutoarjo Kab. Purworejo Jawa Tengah 54212 Telp. : (0275) 642109 Fax. : (0275) 642457 636 Achmad Dahlan Jl. KH Achmad Dahlan No.66 RT 01 RW 12 Kel. Purworejo Kec. Purworejo Purworejo 54111 Telp. : (0275) 322213 Fax. : (0275) 325305 PURWOKERTO Sudirman 417 Jl. Jend. Sudirman No. 417 Purwokerto 53116 Telp. : (0281) 642660 Fax. : (0281) 642651/52 TEMANGGUNG Sudirman 605 Jl. Jend. Sudirman 605 Purwokerto 53114 Telp. : (0281) 631862 Fax. : (0281) 631896 Diponegoro Jl. Diponegoro Ruko No. 6 Kel. Temanggung1 Kec. Temanggung Temanggung 56212 Telp. :(0293)493487 Fax. : (0293) 493487 KLATEN Pemuda Jl. Pemuda No. 234 Kab. Klaten Kec. Klaten Tengah Ds. Tonggalan Klaten 57411 Telp. : (0272) 324968 Fax. : (0272) 327907 TEGAL Sudirman Jl. Jend. Sudirman No. 2 Kel. Pekauman Kec. Tegal Barat Tegal 52113 Telp. : (0283) 343800/343801-343805 SLAWI Jl. Mayjen Sutoyo 14 Kel. Kagog Kec. Slawi Wetan, Slawi 52411 Telp. : (0283) 492941 Fax. : (0283) 321584 BANJARAN Jl. Raya Banjaran 39 Banjaran Kec. Adiwerna, Tegal 52100 Telp. : (0283) 442202 Fax. : (0283) 442202 PEMALANG Comal Jl. A. Yani Blok A2 Kel. Purwoharjo Comal, Pemalang 52363 Telp. : (0285) 577444 Fax. : (0285) 577444 Sudirman Jl. Jendral Sudirman No 115 Kel. Mulyoharjo Kec. Pemalang Kab. Pemalang, Jawa Tengah 52313 Telp. : (0284) 324165 Fax. : (0284) 324165 CILACAP Cilacap - Sudirman JL. Jend Sudirman No. 20 Kel. Sidanegara Kec. Cilacap Tengah Cilacap 53223 Telp. : (0282) 531029 Fax. : (0282) 531033 PEKALONGAN Hayam Wuruk Jl. Hayam Wuruk No. 3 Pekalongan 51119 Telp. : (0285) 421140 Fax. : (0285) 423753 Banjarsari Jl. Sultan Agung No. 36 Kel. Sugihwaras, Pekalongan 51125 Telp. : (0285) 424361 Fax. : (0285) 424361 KEBUMEN Pahlawan Jl. Pahlawan No.120 Kab. Kebumen Kel. Kebumen Kec. Kebumen Kebumen 54311 Telp. : (0287) 382034 - 36 Fax. : (0287) 382037 Gombong Jl. Yos Sudarso No.182 Kompleks Pasar Wonokriyo Blok A No.27 Kel. Wonokriyo Kec. Gombong 54412 Telp. : (0287) 471701 Fax. : (0287) 472727 JEPARA Diponegoro Jl. Diponegoro No. 91, Jepara 59211 Telp. : (0291) 594031 Fax. : (0291) 592300 WONOSOBO Ahmad Yani Jl. A. Yani, Wonosobo 56318 Telp. :(0286)321693 Fax. : (0286) 321844 Annual Report CIMB NIAGA 2017
  637. Supporting Business Review Corporate Governance Report PURBALINGGA Sudirman Jl . Jend. Sudirman No.37 Purbalingga Kec. Purbalingga Kel. Purbalingga Kulon, Purbalingga 53312 Telp. : (0281) 6597194 Fax. : (0281) 891945 SALATIGA Sudirman Jl. Jend. Sudirman 93, Salatiga 50711 Telp. : (0298) 322142 Fax. : (0298) 322143 Diponegoro Jl. Diponegoro 52-60 Kel. Salatiga Kec. Sidorejo, Salatiga 50711 Telp. : (0298) 312840 Fax. : (0298) 312840 SRAGEN Sukowati Jl. Raya Sukowati No. 229 Pasar Kota Sragen (hak pakai) 57211 Telp. : (0271) 891780 Fax. : (0271) 891780 SOLO Mesen Square Ruko Messen Square No.3-4 Jl. Urip Sumohardjo Kel. Purwodiningkatan Kec. Jebres Solo 57128 Telp. : (0271) 669463 Fax. : (0271) 669462 Pasar Klewer Kompleks Ruko Ps. Klewer Blok EE No. 38-43 Kel. Gajahan Kec. Pasar Kliwon, Solo 57113 (sip) Telp. : (0271) 642224 Fax. : (0271) 643330 Palur Jl. Raya Palur KM 7 No. 8A Kel. Ngringo Kec. Jaten Karanganyar, Solo 57771 Telp. : (0271) 821080 Fax. : (0271) 826398 Solo Baru Jl. Raya Solo Baru AB No. 4 Kel. Langen Harjo. Kec. GrogolSukoharjo, Jawa Tengah 57552 Telp. : (0271) 620690 Fax. : (0271) 620691 Slamet Riyadi 8 Jl. Slamet Riyadi No. 8 Solo 57111 Telp. : (0271) 647955 Fax. : (0271) 647391 Corporate Social Responsibility Others Corporate Data Manahan Jl. L.U. Adisutipto No. 21 Kel. Manahan Kec. Banjarsari Solo 57139 Telp. : (0271) 712555 Fax. : (0271) 711565 Pierre Tendean Jl. Piere Tendean 56, Solo 57135 Telp. : (0271) 739239 Fax. : (0271) 739239 Paragon Mall Solo Paragon FF Floor Jl. Yosodipuro No.133 Jawa Tengah 57131 Slamet Riyadi 136 Jl. Slamet Riyadi 136, Solo 57131 Telp. : (0271) 645554 Fax. : (0271) 632111 Delanggu Jl. Raya Delanggu No.39 Kel. Gatak Kec. Delanggu Solo 57471 Telp. : (0272) 551222 Fax. : (0272) 555428 Kartasura Jl. Ruko Kartasura Blok B 3-4 Kartasura 57168 Telp. : (0271) 780858 Fax. : (0271) 780952 Pasar Legi Jl. S. Parman Pasar Legi Kios A 1-5 Solo (sip) 57133 Telp. : (0271) 644445 Fax. : (0271) 644456 Purwosari Jl. Slamet Riyadi 145 Kel. Sondakani Kec. Laweyan, Solo 57147 Telp. : (0271) 728587 Fax. : (0271) 728588 ATMI ATMI Jl. Mojo No. 1 Karangasem Laweyan, Solo 57142 Telp. : (0271) 735535 Fax. : (0271) 735535 DI YOGYAKARTA YOGYAKARTA Sudirman 50 Jl. Jend. Sudirman No. 50 Yogyakarta 55233 Telp. : (0274) 565152 Fax. : (0274) 565151 Gejayan Jl. Gejayan No. 26a, Yogyakarta 55221 Telp. : (0274) 557620 Fax. : (0274) 557621 Annual Report CIMB NIAGA 2017 Consolidated Financial Report Katamso Jl. Brigjen Katamso No. 136a, Yogyakarta 55121 Telp. : (0274) 375160 Fax. : (0274) 410065 Parang Tritis Jl. Parangtritis 115 D Kel. Mergangsang Kec. Brontokusuman, Yogyakarta 55153 Telp. : (0274) 381086 Fax. : (0274) 370331 UAJ Babarsari Jl. Babarsari 44 Yogyakarta (kerjasama) 55281 Telp. : (0274) 561031 Fax. : (0274) 561031 Karangwaru Jl. Magelang 116 Karangwaru Kel.Karangwaru Kec.Tegalrejo Yogyakarta 55241 Telp. : (0274) 540716 Fax. : (0274) 540716 Kusumanegara Jl. Kusumanegarano 66 Kel. Warungboto Kec. Umbulharjo Yogyakarta 55165 Telp. : (0274) 389303 Fax. : (0274) 377404 Mataram Jl. Mataram No. 54 Kec. Danurejan Kel. Suryatmajan, Yogyakarta 55213 Telp. : (0274) 589635 Fax. : (0274) 589637 Sudirman 13 Jl. Jend. Sudirman 13 RS Panti Rapih RS Panti Rapih Jl. Cik Ditiro No. 30 Yogyakarta 55223 Telp. : (0274) 563333) Ext 251 Universitas Sanata Pahingan Kampus Univ. Sanata Dharma Pahingan, Yogyakarta 55282 Telp. : (0274) 883037 SLEMAN Sleman Jln Affandi (Gejayan) Mrican Tromol Pos 29 Kel. Catur Tunggal Kec. Depok-Sleman, Yogyakarta 55002 Telp. : (0274) 554074 Fax. : (0274) 554074 UAJ Mrican Universitas Atmajaya Jl Demangan Baru No.29 A 637
  638. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management OFFICE NETWORK ADDRESSES EAST JAVA SURABAYA Andayani Jl . Jemur Andayani No. 53-A Surabaya 60237 Telp. : (031) 8438093 Fax. : (031) 8434669 Gateway Ruko Gateway B-9 Sawotratap Jl. Suparman Waru, Sidoarjo 61256 Telp. : (031) 8542908 Fax. : (031) 8554102 Jemursari Jl. Jemursari No. 161 RT/RW 006/002 Kel. Kendangsari Kec. Tenggilis Mejoyo, Surabaya 60237 Telp. : (031) 8476249 Fax. : (031) 8478386 Universitas Kristen Petra Jl. Siwalankerto 121-131 Surabaya 60234 Telp. : (031) 8439040/8494830 Rungkut Jl. Rungkut Madya No. 57 Kel. Rungkut Kidul Kec. Gunung Anyar, Surabaya 60293 Telp. : (031) 8704648 Fax. : (031) 8711120 City of Tomorrow City of Tomorrow Blok GE 20 Jl. A. Yani Surabaya 60234 Telp. : (031) 829384/58251385-7 Fax. : (031) 8293283 Wadung Asri Komplek Ruko Sentra Tropodo No. A-18 Jl. Raya Tropodo 115 Kec. Waru Kel. Tropodo Sidoarjo 61256 Telp. : (031) 8686349-8686363 Fax. : (031) 8686362 Darmo Jl. Raya Darmo No. 26 Surabaya 60264 Telp. : (031) 5683060 Fax. : (031) 5674354 Diponegoro Jl. Raya Diponegoro 70 Telp. : 031 5662633 Fax. : 031 5662610 638 Sukomanunggal Jl. Raya Sukomanunggal Jaya V Blok B1 Ruko Satelit Town Square Surabaya Kel. Sukomanunggal Kec. Sukomanunggal Surabaya 60188 Telp. : (031) 7329161 Fax. : (031) 7349920 Grand City Grand City LG Floor Jl. Gubeng Pojok Dalam No. 1, Surabaya 60272 Pakuwon Pakuwon Mall Unit B1 – 03 Basement, Jalan Puncak Indah Lontar no. 2, Surabaya Dharmahusada Jl. Dharmahusada No. 142 Surabaya Kel Mojo Kec Gubeng, Surabaya 60282 Telp. : (031) 5949468 Fax. : (031) 5949480 Mulyosari Jl. Raya Mulyosari No. 166 Surabaya 60112 Telp. : (031) 5934815 Fax. : (031) 5945092 Universitas Airlangga Kampus UNAIR Jl. Prof. Moestopo No. 47 Kel. Gubeng Kec. Gubeng Airlangga, Surabaya 60285 Telp. : (031) 5042647 Fax. : (031) 5042647 Pakuwon City Pakuwon Town Square (PATOS) Blok AA 02-002 Pakuwon City Kel. Kejawan Putih Tambak Kec. Mulyorejo, Surabaya 60112 Telp. : (031) 5963587 Fax. : (031) 5997539 Kapas Krampung Jl. Kapas Krampung No. 71-A Kel. Rangkah Kec. Tambak Sari Surabaya 60135 Telp. : (031) 5968266 Fax. : (031) 60009216 Pucang Anom Jl. Pucang Anom No. 27 Kel. Kertajaya Kec. Gubeng Surabaya 60282 Telp. : (031) 5026123 Fax. : (031) 5025791 Manyar Kertoardjo Jl. Manyar Kertoarjo V No. 75-77 Kel. Mojo Kec. Gubeng Surabaya 60285 Telp. : (031) 5941470 Fax. : (031) 5947750 Manyar Mega Indah Pertokoan Manyar Mega Indah Jl. Ngagel Jaya Selatan G-3 Surabaya 60283 Telp. : (031) 5026660 Fax. : (031) 5030281 Klampis Jl. Klampis Jaya No. 27E Kel. Klampis Ngasem Kec. Sukolilo, Surabaya 60117 Telp. : (031) 5950407 - 10 Fax. : (031) 5996533 Pasar Atom Pasar Atom tahap IV G.07-08 Surabaya 60161 Telp. : (031) 3531715/22 Fax. : (031) 3534403 Kembang Jepun Jl. Kembang Jepun No.129 Pecindilan Jl. Pecindilan No.44C Kel. Kapasari Kec. Genteng, Surabaya 60273 Telp. : (031) 3763201-2/3711583 Fax. : (031) 3712905 Perak Jl. Perak Barat 121 Kec. Krembangan Kel. Perak Barat, Surabaya 60177 Telp. : (031) 3577880 Fax. : (031) 3577885 Kenjeran Jl. Raya Kenjeran No.610b Kel. Dukuh Sutorejo Kec. Mulyorejo Surabaya 60121 Telp. : (031) 3810328 Fax. : (031) 3810322 Terminal Peti Kemas Jl Tanjung Mutiara No 1 Gedung Lama Terminal Petikemas Kel. Perak Barat Kec. Krembangan Surabaya, Jawa Timur 60177 Telp. : (031) 3282145 Fax. : (031) 3282145 Sudirman Jl. Jend. Sudirman No. 59-61 Surabaya 60271 Telp. : (031) 5320050 Fax. : (031) 5325510 Gubeng Jl. Raya Gubeng No. 50 Kel. Gubeng Kec. Gubeng, Surabaya 60281 Telp. : (031) 5318875 Fax. : (031) 5319233 Annual Report CIMB NIAGA 2017
  639. Supporting Business Review Corporate Governance Report Tunjungan Jl . Tunjungan No. 47 Kec. Genteng Kel. Genteng RT/RW 01/X Surabaya 60275 Telp. : (031) 5343537 Fax. : (031) 5315430 Sungkono Jl. Mayen Sungkono No 93 Surabaya 60187 Telp. : (031) 5671055 Fax. : (031) 5671732 Krian Jl. Kauman No 44 Krian Sidoarjo 61262 Telp. : (031) 8971987 Fax. : (031) 8972758 Pakuwon Trade Center Komplek Pertokoan Super Mall 2nd Floor Blok T1 No. 12 Surabaya Kel. Babatan Kec.Wiyung, Surabaya 60227 Telp. : (031) 7390562 Fax. : (031) 7390561 Wiyung Jl. Raya Menganti No.18 Komplek Pertokoan Taman Indah Blok A No.18 Kel. Wiyung Kec. Wiyung, Surabaya 60228 Telp. : (031) 7674272 Fax. : (031) 7671329 HR Muhammad Ruko Apartement Baverly Blok A - 1 Jl. Hr Muhammad 49 - 55 Kel. Putat Gede Kec. Sukomanunggal Surabaya 60189 Tidar Jl. Tidar 23-25 Surabaya 60251 Telp. : (031) 5321025 Fax. : (031) 5311286 Sidoarjo Ahmad Yani Jl. A. Yani No. 40 C Kel. Sidokumpul Kec. Sidoarjo, Sidoarjo 61212 Telp. : (031) 8961157 Fax. : (031) 8961327 MALANG Merdeka JL. Merdeka Timur No.4 Kel. Kidul Dalam Kec. Klojen Malang 65119 Telp. : (0341) 365914 Fax. : (0341) 365913 Kyai Tamin Jl. Kyai Tamin No. 115-117 Malang Kel Sukoharjo Kec. Klojen 65118 Telp. : (0341) 365920 Fax. :(0341)326897 Annual Report CIMB NIAGA 2017 Corporate Social Responsibility Dampit Ruko Jl. Jenggolo No.4 Dampit Kel. Dampit Kec. Dampit, Malang 65181 Telp. : (0341) 898686 Fax. : (0341) 895152 Kepanjen Jl. A. Yani No.6 Kel. Kepanjen Kec. Kepanjen Kepanjen 65163 Telp. : (0341) 397177 Fax. : (0341) 397178 Batu Jl. Diponegoro No. 48 Kel. Sisir Kec. Batu Malang 65314 Telp. : (0341) 594424 Fax. :(0341)594472 Basuki Rachmad Jl. Basuki Rachmad No. 26-28 Kel. Kauman Kec. Klojen Malang 65119 Telp. : (0341) 363100 Fax. : (0341) 327616 Ahmad Yani Jl. A. Yani No. 18-E Kec. Blimbing Kel. Blimbing Malang 65125 Telp. : (0341) 411891 Fax. : (0341) 411890 Galunggung Jl. Galunggung No. 58 Kec. Klojen Kel. Gadingkasri Malang 65116 Telp. : (0341) 581505 Fax. : (0341) 581506 Soekarno Hatta Ruko Soekarno Hatta Jl. Sukarno Hatta No. 2-2A Kec. Lowokwaru Kel. Jatimulyo Malang 65142 Telp. : (0341) 404411 Fax. : (0341) 404410 RS Saiful Anwar Rumah Sakit Dr. Saiful Anwar (RSAA) Jl. Jaksa Agung Suprapto No. 2 Kec. Klojen Kel. Rampal Celaket Malang 65111 Telp. : (0341) 359960 Fax. : (0341) 359960 Universitas Kanjuruhan Universitas Kanjuruhan Malang Jl. S. Supriadi No. 48 Malang 65148 Telp. : (0341) 831533/831535 ITN Jl Bendungan Sigura-gura No. 2 Malang, 65145 Others Corporate Data Consolidated Financial Report GRESIK Kartini Jl. R.A. Kartini No. 236 Kav. 2 & 3 Kel. Sidomoro Kec. Kebomas Gresik 61122 Telp. : (031) 3981910 Fax. : (031) 3984172 Usman Sadar Jl. Usman Sadar No. 25 Kel. Karangturi Kec. Gresik Kab. Gresik, Jawa Timur 61114 Telp. : (031) 3982103 Fax. : (031) 3982605 LAMONGAN Lamongrejo Jl. Lamongrejo No. 68 Lamongan Kel. Sidokumpul Kec. Lamongan 62213 Telp. : (0322) 314281 Fax. : (0322) 322581 JEMBER Diponegoro Jl. Diponegoro No. 36, Jember 68111 Telp. : (0331) 482366 Fax. : (0331) 482011 Gajah Mada Jl. Gajah Mada No. 288, Jember 68131 Telp. : (0331) 487311 Fax. : (0331) 484264 KEDIRI Diponegoro Jl. Diponegoro No. 16 Kel. Balowerti Kec. Kota, Kediri 64121 Telp. : (0354) 671777 Fax. : (0354) 683995 Brawijaya Jl. Brawijaya 27, Kediri 64123 Telp. : (0354) 684290 Fax. : (0354) 684295 Pare Jl. W.R. Supratman No. 11 Kel. Pare Kec. Pare 64211 Telp. : (0354) 394777 Fax. : (0354) 391299 MADIUN Pahlawan Jl. Pahlawan No. 56, Madiun 63121 Telp. : (0351) 454061 Fax. : (0351) 463291 BOJONEGORO Sudirman Jl. Gajahmada No. 99 Bojonegoro 62115 Telp. : (0353) 887591 Fax. : (0353) 2898001 639
  640. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management OFFICE NETWORK ADDRESSES BONDOWOSO Bondowoso Jl . Panglima Besar Sudirman 46 Kel. Dabasah Kec. Kota Bondowoso 68211 Telp. : (0332) 424224 Fax. : (0331) 422224 TULUNGAGUNG Sudirman Jl. Panglima Sudirman No.79 Kel. Kepatihan Kec. Tulungagung Tulungagung 66219 Telp. : (0355) 334666 Fax. : (0355) 337499 BANYUWANGI Sudirman Jl. PB Sudirman 23-25 Banyuwangi 68416 Telp : (0333) 411522 Fax. : (0333) 411528 MAGETAN Sudirman Jl. Sudirman No.26 Kel. Kebon Agung Kec. Magetan, Magetan 63317 Telp. : (0351) 895383 Fax. : (0351) 895383 Genteng Komplek Ps Genteng blok B-1 Jl. Gajah Mada Kel. Genteng Kulon Kec. Genteng, Banyuwangi 68465 Telp. : (0333) 842056 Fax. : (0333) 842058 NGANJUK Ahmad Yani Jl. Ahmad Yani 159 Kel. Payaman Kec. Nganjuk 64418 Telp. : (0358) 323088 Fax. : (0358) 325205 SITUBONDO Situbondo Jl. Sepudi No 15 A, Situbondo 68322 Telp. : (0338) 679113 Fax. : (0338) 679115 NGAWI Sultan Agung Jl. Raya Sultan Agung No.98 Kel. Ketanggi Kec. Ngawi, Ngawi 63211 Telp. : (0351) 749913 Fax. : (0351) 749913 JOMBANG Ahmad Yani Jl. A. Yani no. 36 Kec. Jombang Kel. Jombang, Jombang 61400 Telp. : (0321) 875396 Fax. : (0321) 875320 MOJOKERTO Mojopahit Jl. Mojopahit No. 256 Kel. Mentian Kec.Prajurit Kulon, Mojokerto 61323 Telp. : (0321) 326265 Fax. : (0321) 326391 PROBOLINGGO Sutomo Jl. Dr. Sutomo Plaza Blok B no 9-10 Probolinggo 67211 Telp. : (0335) 428633 Fax. : (0335) 428698 PASURUAN Pasar Besar Jl. Raya Pasar Besar Blok A -1 Kel. Mayangan Kec. Purworejo Pasuruan 67112 Telp. : (0343) 427574 Fax. : (0343) 426043 LUMAJANG Sudirman Jl. Panglima Sudirman Pasar Plaza Ruko Blok A - 11 Kel. Tompokersan Kec. Lumajang 67311 Telp. : (0334) 893377 Fax. : (0334) 893399 640 PONOROGO Gajah Mada Jl. Gajah Mada No 11 Kel. Kepatihan Kec. Ponorogo, Ponorogo 63416 Telp. : (0352) 481761 Fax. : (0352) 488548 TUBAN Basuki Rahmat Jl. Basuki Rahmat No.116 Kelurahan Sidomulyo Kecamatan Tuban, Tuban 62312 Telp. : (0356) 333243-45 Fax. : (0356) 320200 BLITAR Merdeka Jl. Merdeka No. 111 Kel. Kepanjenkidul Kec. Kepanjenkidul Blitar 66112 Telp. : (0342) 809028 Fax. : (0342) 807464 BALI DENPASAR Thamrin Jl. MH. Thamrin No 77 Denpasar 80119 Telp. : (0361) 436047 Fax. : (0361) 436048 Dewi Sartika Jl. Dewi Sartika Blok I F-G Komp. Duta Plaza Kel/Desa Dauh Puri Klod Kec. Denpasar Barat, Denpasar 80114 Telp. : (0361) 224389 Fax. : (0361) 238243 Kuta Graha Jl. By Pass Ngurah Rai No 88 Kuta 80361 Telp. : (0361) 761788 Fax. : (0361) 761789 Kerobokan KCP Kerobokan Jl. Raya Kerobokan 108 Nusa Dua Komplek Pertokoan Tragia Blok E III No 29 Nusa Dua, Bali 80363 Telp. : (0361) 772793 Fax. : (0361) 772058 Sanur Komplek Pertokoan Sanur Raya Jl By Pass Ngurah Rai 29-30 Kel. Sanur Kec. Denpasar Selatan Sanur 80228 Telp. : (0361) 285250 Fax. : (0361) 285251 Mall Galeria Mal Bali Galeria Lantai 2A 08 Jl. By Pass Ngurah Rai Simp. Dewa Ruci, Denpasar 80361 Melati Jl. Melati No. 29 Denpasar Kel. Dangin Puri Kaja Kec. Denpasar Utara, Denpasar 80233 Telp. : (0361) 232929 Fax. : (0361) 263510 Gatot Subroto Jl. Gatot Subroto No.330 Kel. Tonja, Kec. Denpasar Timur, Denpasar Telp. : (0361) 430345 Fax. : (0361) 430345 Singaraja Jl. Ahmad Yani No.55 Singaraja Kel. Kaliuntu Kec. Buleleng Singaraja 81116 Telp. : (0362) 26515 Fax. : (0362) 31808 Teuku Umar Rukan Telkom Jl. Teuku Umar No. 4-5 Kel. Dauh Puri Klod Kec. Denpasar Barat, Denpasar 80114 Telp. : (0361) 236779 Fax. : (0361) 236950 Annual Report CIMB NIAGA 2017
  641. Supporting Business Review Corporate Governance Report Ubud Jl Raya Ubud , Ubud, Gianyar 80571 Telp. : (0361) 976493/4 Fax. : (0361) 976492 Banda Aceh Peunayong Jl. Sri Ratu Safiatuddin No.33-35-37 Kel. Peunayong Kec. Kuta Alam Banda Aceh Aceh 23122 Telp. : (0651) 635937 Fax. : (0651) 32022 NORTH SUMATERA MEDAN Bukit Barisan Jl. Pos (d/h Bukit Barisan) No. 07 Medan 20111 Telp. : (061) 4155445 Fax. : (061) 4530142 M Yamin Jl. Prof.HM.Yamin SH 80 Medan 20231 Telp. : (061) 4531338 Fax. : (061) 4532530 Gajah Mada Jl. Gajah Mada No.11, Medan 20153 Telp. : (061) 4151100 Fax. : (061) 4524664 Marelan Jl. Marelan Raya No. 8 Pasar IV Kec. Medan Marelan Kel. Rengas Pulau, Marelan 20255 Telp. : (061) 6857080 Fax. : (061) 6857076 Gatot Subroto Jl. Gatot Subroto 187-Ab Medan 20112 Iskandar Muda Jl. Iskandar Muda 127, Medan 20154 Telp. : (061) 4521822 Fax. : (061) 4525618 Sutomo Ujung Jl. Sutomo Ujung 247-249 Kel. Durian Kec. Medan Timur, Medan 20235 Telp. : (061) 6613020 Fax. : (061) 6611622 Yos Sudarso Jl. Yos Sudarso 225-J Kel. Pulo Brayan Kota Kec. Medan Barat, Medan 20116 Telp. : (061) 6613542 Fax. : (061) 6614697 Annual Report CIMB NIAGA 2017 Corporate Social Responsibility Centre Point Centre Point UG Floor Jl. Jawa No.8 Medan 20231 Icon Gedung Wisma Global Jl. Listrik/Jl. Imam Bonjol/Jl.Mayjend Sutoyo Siswomiharjo, Medan 20112 Telp. : (061) 88880299 Fax. : (061) 80501658 Polonia Hotel Polonia Jl. Sudirman 14, Medan 20152 Telp. : (061) 4538189 Fax. : (061) 4156201 Juanda Jl. Ir. H. Juanda No. 29A, Kec. Medan Polonia, Kel. Sukadamai Medan 20152 Telp. : (061) 4528550 Fax. : (061) 4528551 Pemuda Jl. Pemuda No.14-AB, Medan 20117 Telp. : (061) 4156622 Fax. : (061) 4524827 AR Hakim Jl. Ar. Hakim 70-72, Medan 20216 Telp. : (061) 7362955 Fax. : (061) 7361544 Sujono Jl. Letda Sujono Dalam No. 102 Kec. Percut Sei Tuan Kel. Medan Estate, Medan 20371 Telp. : (061) 7342096 Fax. : (061) 7359301 Simpang Limun Jl. Sisimangaraja no.17 Kel. Sitirejo I Medan 20219 Telp. : (061) 7867313 Fax. : (061) 7867939 Bandung Jl. Bandung 42-44, Medan 20212 Telp. : (061) 4565336 Fax. : (061) 4563337 Asia Jl. Asia No. 95 E Kel. Sei Rengas II Kec. Medan Area Medan Sumatera Utara 20214 Telp. : (061) 7352508 Fax. : (061) 7352513 KS Tubun Jl. Aip II Ks. Tubun 1-3, Medan 20111 Others Corporate Data Consolidated Financial Report Tanjung Morawa Jl. Pahlawan 60 Tanjung Morawa Medan 20362 Telp. : (061) 7944536 Fax. : (061) 7944538 Pematang Siantar Merdeka Jl. Merdeka 5 Pematang, Siantar 21117 Telp. : (0622) 21227 Fax. : (0622) 24632 Megaland Jl. Sangnawaluh (formerly Jl Asahan) No 28 Ruko Kompleks Megaland Blok A Kab. Simalungun Kec. Siantar Timur Kel. Pahlawan Pematang Siantar Sumatera Utara 21132 Telp. : (0622) 23000 Fax. : (0622) 433760 Perdagangan Jl. SM Raja 608 Perdagangan I Kab. Simalungun Kec. Bandar Kel. Perdagangan I Pematang Siantar 21184 Telp. : (0622) 96891 Fax. : (0622) 96891 Tebing Tinggi Sudirman Jl. Sudirman 175-BC Tebing Tinggi 20611 Telp. : (0621) 21800 Fax. : (0621) 22113 WEST SUMATERA PADANG Sudirman Jl. Jend. Sudirman No.16. Kel. Sawahan Kec. Padang Timur Padang - Sumatera Barat 25112 Telp. : (0751) 32533 Fax. : (0751) 34022 Pondok Jl. Pondok No.82 G Kel. Imam Bonjol Kec. Padang Selatan, Padang 25211 Telp. : (0751) 37569 - 70 Fax. : (0751) 31884 M Yamin Jl. Moh. Yamin No.148, Kel. Olo Kec. Padang Barat, Padang 25112 SMP Santa Maria Jln Gereja No 39 kelurahan Belakang Tangsi Kec Padang Barat Kota Padang 25118 Telp. : (0751) 893170 Fax. : (0751) 893171 641
  642. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management OFFICE NETWORK ADDRESSES BUKITTINGGI Ahmad Yani Jl . A. Yani No. 118B Bukittinggi Kel. Benteng Pasar Atas Kec. Guguak Panjang Bukit Tinggi 26113 Telp. : (0752) 628600 Fax. : (0752) 628606 Labuhan Batu Rantau Prapat - Ahmad Yani Jl. Ahmad Yani No.61 - 63 Labuhan Batu Sumatera Utara 21412 Telp. : (0624) 327706 Fax. : (0624) 327706 Binjai Sudirman Jl. Jend Sudirman No.348-350 Jambi Sutomo Jl. Dr. Sutomo No.31 Jambi 36113 Telp. : (0741) 32900 Fax. : (0741) 22582 Jelutung Jl. Hayam Wuruk No. 29 – 30 Jambi 36136 Telp. : (0741) 33366 Fax. : (0741) 33777 Sipin Jl. Kol. Abun Jani no.4 Sipin Ujung Kel. Simpang IV Sipin Kec. Telanaipura, Jambi 36124 Telp. : (0741) 668089 Fax. : (0741) 63679 RIAU ISLANDS BATAM Sei Panas Komp. Executive Center Blok I No. 1 ABC Jl. Laksamana Bintan Sei Panas Batam 29432 Telp. : (0778) 426777 Fax. : (0778) 454373 Batu Aji Jl. Komplek Cipta Agung No. 5 (Batu Aji), Batam 29433 Telp. : (0778) 363111 Fax. : (0778) 363150 Batamindo Plaza Batamindo 1st Floor No. A1-3. Jl. Rasamala 20 Muka Kuning Sei Beduk, Batam 29433 Telp. : (0770) 612334/612335/612356 Fax. : (0770) 612367 642 Nagoya Kompleks Lumbung Rezeki Blok G 6 7 8 Jl. Sultan A. Rahman Batam 29422 Telp. : (0778) 457208 Fax. : (0778) 426075 Adhya Building Adhya Building Batam Komp. Ruko Permata Niaga, Batam 29462 Telp. :(0778) 7418432/7418435/7418436 Fax. : (0778) 7418437 Kabil Komplek Ruko Citranusa Niaga Blok A1 No.12 Kec. Nongsa Kel. Batu Besar Batam 29432 Telp. : (0788) 8070024 Fax. : (0788) 8070025 Botania Komp. Pertokoan Botania Blok A2 No.1 Kel. Berlian Kec. Batam Kota Riau 29464 Telp. : (0778) 7495501-03/04 Fax. : (0778) 7495502 Penuin Centre Penuin Centre Blok F No.11 TANJUNG PINANG Merdeka Jl. Merdeka no 11 Kel. Tanjungpinang Kota Kec. Tanjungpinang Kota Tanjung Pinang 29111 Telp. : (0771) 27947 Fax. : (0771) 27950 Bintan Center Jl. DI Panjaitan Km.9 Bintan Center Kel. Batu IX Kec. Tanjung Pinang Timur, Tanjung Pinang 29125 Telp. : (0771) 442866 Fax. : (0771) 442255 Kijang Jl. Hang Lekir (Hang Jebat) RT/RW 001/01 Kp. Pisang Kijang Kelurahan Kijang Kota Kecamatan Bintan Timur Kijang 29151 Telp. : (0771) 61692 Fax. : (0771) 61261 RIAU Dumai Sultan Syarif Qasim Jl. Sultan Syarif Qasim no.177 Kec. Dumai TimurKel. Bintan Dumai 28811 Telp. : (0765) 439696 Fax. : (0765) 439698 PEKANBARU Duri Jl. Hangtuah No. 692 Kec. Mandau Kel. Air Jamban Duri 28884 Telp. : (0761) 5594760 Fax. : (0765) 594750 Sudirman Jl. Jend. Sudirman 163-165 Tuanku Tambusai Jl. Tuanku Tambusai 320-H Kec. Tampan Kel. Labuh Baru Pekanbaru 28291 Telp. : (0761) 566862 Fax. : (0761) 566864 Riau Ruko Jl. Riau No.20b Panam Komp. Metropolitan Blok C No.116 Jl. HR Subrantas Panam Pekanbaru 28294 Telp. : (0761) 5887700/5887711/5880 00/563094/563095 Fax. : (0761) 5887722 KEPULAUAN BANGKA BELITUNG Pangkal Pinang Masjid Jamik Jl. Masjid Jamik Kel. Masjid Jamik Kec. Rangkui Pangkal Pinang Bangka 33132 SOUTH SUMATERA PALEMBANG Sudirman Jl. Jend. Sudirman No. 132 B Kec. Ilri Timur I Kel. 20 Ilir I Palembang 30129 Telp. : (0711) 377770 Fax. : (0711) 377755 Alang-alang Lebar Jl. Palembang - Betung Km 12 Kel. Alang-Alang Lebar Kec. SukaramiPalembang 30154 Telp. : 0711-3271604 Fax. : 0711-3271605 Sukamto Jl. R. Sukamto No.47/2385 Kel. 20 Ilir II Kec. Kemuning Kota Palembang 30127 Telp. : (0711) 350550 Fax. : (0711) 967693 Annual Report CIMB NIAGA 2017
  643. Supporting Business Review Corporate Governance Report LAMPUNG Lampung Selatan Malahayati Jl . Laks. Malahayati No. 34-40 Lampung 35224 Telp. :(0721) 485773 Fax. : (0721) 483296 Tanjung Karang Jl. Palembang II No.16 - 18 Bandar Lampung 35111 Telp. : (0721) 261994 Fax. : (0721) 263442 Raden Intan Jl. Raden Intan No. 140 A Bandar Lampung 35118 Telp. : (0721) 259877 Fax. : (0721) 259787 CENTRAL KALIMANTAN Corporate Social Responsibility Samarinda KH Khalid Jl. KH. Khalid No. 32, Samarinda 75111 Telp. : (0541) 732723 Fax. : (0541) 735239 Simpang Merak Komplek Ruko Simpang Merak Jl. S. Parman Blok C-24 Samarinda 75117 Telp. : (0541) 202844 Fax. : (0541) 202845 Bung Tomo Jl. Bung Tomo RT 13 Tenggarong Jl. Jend. Sudirman no.66 RT IV Kel. Melayu Kec. Tenggarong Samarinda 75512 Telp. : (0541) 664111 Fax. : (0541) 664109 Palangkaraya Murjani Jl. Dr. Murjani No.9, RT 1, RW 7, Kel. Pahandut, Kec. Pahandut, Palangkaraya, 73112 Bontang Ahmad Yani Jl. A. Yani No 5 Kel. Api-Api Kec. Bontang Utara, Bontang 75312 EAST KALIMANTAN SOUTH KALIMANTAN Balikpapan Ahmad Yani Jl. Jend. Ahmad Yani No. 83 Kel. Gunung Sari Ilir Kec. Balikpapan Tengah Balikpapan 76121 Telp. : (0542) 733037 Fax. : (0542) 733122 Ruko Baru Komp. Balikpapan Baru Blok B2 No.2 Jl. MT. Haryono Komp. Bpp. Baru Kel. Damai Kec. Balikpapan Selatan Balikpapan 76114 Telp. : (0542) 7214101 Fax. : (0542) 7214093 MT Haryono Ruko Jl. MT Haryono 10 I - 10 J, Kel. Damai, Kec Balikpapan Selatan, Balikpapan 76114 Telp. : (0542) 426756 Kebon Sayur Jl. Letjend Suprapto No 12 Kebun Sayur, Balikpapan Telp. : (0542) 742243 Fax. : (0542) 736745 Permai Komp. Balikpapan Permai Blok G1 No.1 Kelurahan Damai Kecamatan Balikpapan Selatan Balikpapan 76113 Telp. :(0542)877377 Fax. : (0542) 426834 Annual Report CIMB NIAGA 2017 Others Corporate Data BANJARMASIN Pangeran Samudera Jl. Pangeran Samudera No.26 Banjarmasin 70111 Telp. : (0511) 4367508 Fax. : (0511) 4367929 Ahmad Yani 56 Jl. A. Yani Km. 2 5 No 56 Banjarmasin Kalimantan Selatan 70233 Telp. : (0511) 3257501 Fax. : (0511) 3257990 Ahmad Yani Mitramas KCP Banjarbaru Jl. A. Yani Km 35, Rt 005 Rw 001 Kel. Guntung Paikat, Kec. Banjarbaru Selatan Banjarbaru WEST KALIMANTAN PONTIANAK Tanjungpura Jl. Tanjungpura Pontianak 78117 Telp. : (0561) 730101 Fax. : (0561) 730222 Ahmad Yani Komp. Ruko A. Yani Sentra Bisnis Blok A No. 3A Jl Jend. A Yani Pontianak.Kel. Parit Tokaya Kec. Pontianak Selatan Pontianak 78121 Telp. : (0561) 761212 Fax. : (0561) 761209 Consolidated Financial Report Ketapang MT Haryono Jl. Letnan Jendral M.T. Haryono No.138 A Kel. Tengah Kab. Ketapang Kecamatan Delta Pawan Kalimantan Barat 78812 NORTH KALIMANTAN Tarakan Karang Anyar Jl. Mulawarman 32-34, Kel. Karang Anyar, Kec. Tarakan Barat, Tarakan, Kalimantan Utara 77111 Telp. : (0551) 33555/33444 Fax. : (0551) 33398 SOUTHEAST SULAWESI Kendari Mandonga Jl. Drs. Hj. Abdullah Silondae Kel. Mandonga Kec. Mandonga Kendari, Sulawesi Tenggara 93111 Telp. : (0401) 3128848 Fax. : (0401) 3129162/3122239 NORTH SULAWESI Manado Walanda Maramis Jl. Walanda Maramis No.137 Mega Mas Jl. Pierre Tendean Kawasan Ruko Mega Mas Blok 1c No.5-6, Manado 95111 Telp. : (0431) 8880760-65 Fax. : (0431) 8880772 Sam Ratulangi Jl. Sam Ratulangi No. 205 SOUTH SULAWESI Makassar Ahmad Yani Jl. Ahmad Yani No. 33 Makassar 90174 Telp. : (0411) 318718/310741 - 2 Perintis Kemerdekaan Jl. Perintis Kemerdekaan KM 3 Kel. Tamanlan Rea Kec. Tamanlan Rea 90245 Telp. : (0411) 580225 Fax. : (0411) 580725 Bandang Jl. Bandang No. 10-12 Makassar 90155 Telp. : (0411) 326013 Fax. : (0411) 325969 643
  644. Performance Highlights Management Reports Company Profile Management Discussion and Analysis Risk Management OFFICE NETWORK ADDRESSES Sam Ratulangi Jl . Dr. Sam Ratulangi No.110 Makassar 90125 Telp. : (0411) 835255 Fax. : (0411) 835256 Gedung Kenari Gedung Kenari Petak IV Jl. Veteran Selatan No. 1 Kec. Makasar Kel. Maricaya 90131 Telp. : (0411) 436960/436961 Panakukang Jl. Raya Boulevard Ruko Rubby No.2 Panakukang Makassar 90231 Telp. : (0411) 456284-5 Fax. : (0411) 456286 MALUKU Tembagapura II Family Shoping Mile 68 Tembagapura Timika - Papua 99930 Telp. : (0901) 352333 Fax. : (0901) 352352 WEST NUSA TENGGARA/NTB MATARAM Pejanggik Ruko Jl. Pejanggik Kec. Cakranegara Kel. Cakra Barat Mataram Lombok Nusa Tenggara Barat 83239 Telp. : (0370) 632444 Fax. : (0370) 647543 Selong Jl. TGKH Zainudin Abdul Majid. Ruko Bin Ali No.15 Kel. Pancor Kec. Selong Kab. Lombok Timur Nusa Tenggara Barat 83611 Telp. : (0376) 2927122 Fax. : (0376) 2927123 Ambon Sam Ratulangi Jl. Sam Ratulangi No.89 Kel. Honipopu Kec. Sirimau Ambon 96127 Telp. : (0911) 355171 Fax. : (0911) 353239 EAST NUSA TENGGARA/NTT Pasar Mardika Jl. Mutiara No.53 Kel. Rijali Kec. Sirimau Ambon 97123 Telp. : (0911) 355167 Fax. :(0911)342088 Lalamentik Jl. Wj Lalamentik Telp. : (0380) 8555015 Fax. : (0380) 831099 PAPUA Jayapura Pasifik Permai Komp. Jayapura Pasifik Permai D9 - 10 Kel. Bhayangkara Kec. Jayapura Utara Jayapura 99112 Telp. : (0967) 535234 Fax. : (0967) 535045 MIMIKA Kuala Kencana Kuala Kencana Center Suite 103 Timika Papua 99920 Telp. : (0901) 301234 Fax. : (0901) 301233 Budi Utomo Jl. Budi Utomo No.99B, RT 9, Kel. Inauga, Kec. Wania, Mimika 99910 Telp. : (0901) 323684/323685 Ridge Camp Ridge Camp Mile 74 Tembagapura Timika - Papua 99930 Telp. : (0901) 412006 Fax. : (0901) 412872 Tembagapura I Single Shoping Mile 68 Tembagapura Timika - Papua 99930 Telp. : (0901) 351234 - 5/351286 644 KUPANG Sudirman Jl. Ruko Sudirman I/88 B, Jl. Jend Sudirman BRANCHES OF SHARIA HEAD OFFICE Menara Sudirman Gd. Menara Sudirman, Jl. Jend. Sudirman Kav. 60 Jakarta Selatan Telp. : (021) 52920901 Fax. : (021) 52920943 JAKARTA Kemenag Jakarta Timur Jl. Terusan I Gusti Ngurah Rai Pondok Kopi, Jakarta Timur Telp. : (021) 213 85691 Sentraya Menara Sentraya Jl. Iskandarsyah II No.2 TANGERANG Serpong Jl. Gading Serpong Boulevard Ba 02 No.28 & 29 Gading Serpong, Tangerang, Banten BOGOR Juanda KCS bogor Jl. Ir. H. Juanda No. 12 Bogor 16121 SURABAYA Adityawarman Jl. Adityawarman No.53, Surabaya Telp. : (031) 5682068 Fax. : (031) 5682131 MALANG Soekarno Hatta Jl. Soekarno Hatta No.2-2A, Kel. Jatimulyo, Kec. Lowokwaru, Malang Telp. : 0341 - 353081 Fax. : 0341 -353085 BANDUNG Lembong Jl. lembong no.7 Kemenag Kota Office of the Ministry of Religious Affairs Kota Bandung Jl Soekarno Hatta No.498 Batununggal, Bandung Kidul, Kota Bandung, Jawa Barat 40266 Telp. : 022 – 7505925 Kemenag Kabupaten Jl. Adipati Agung No 42 Baleendah Kabupaten Bandung CIREBON Tuparev Jl. Tuparev no 41A Kec. Kedawung, Kel.Sutawinagun Cirebon 45153 Telp. : 0231 - 221228 Fax. : 0231 - 223287 SEMARANG Pemuda 21B Jl. Pemuda No. 21b Semarang 50139 Telp. : (024) 8449272 Fax. : (024) 8449270 SOLO Ir. Sutami Jl. Ir. Sutami No.82, Kel. Pucang Sawit, Kec. Jebres Solo 57126 Telp. : 0271 - 663454 Fax. : 0271 - 732176 YOGYAKARTA Sudirman Jl. Jend. Sudirman No.50 MEDAN Iskandar Muda Jl. Iskandar Muda No.121 Medan 20152 Telp. : (061) 4553344 Fax. : (061) 4533522 Annual Report CIMB NIAGA 2017
  645. Supporting Business Review Corporate Governance Report LAMPUNG Hasanudin Jl . Hasanudin No.90E Bandar Lampung Telp. : (0721) 261994 Fax. : (0721) 488088 PALEMBANG Letkol Iskandar Jl Letkol Iskandar 24 IlI, Palembang Telp. : 0711 363038 Fax. : 0711 371649 MAKASSAR Achmad Yani Jl. Achmad Yani 13 C - D, Makassar Telp. : (0411) 862012 Fax. : (0411) 860757 LHOKSEUMAWE Suka Ramai Jl. Suka Ramai No.24, Lhokseumawe Telp. : (0645) 40573/42911 Fax. : (0645) 43942 PEKANBARU Sudirman Jl. Jend. Sudirman No. 255 Cd, Pekanbaru 28112 Telp. : 0761 - 29565 Fax. : 0761 - 29868 SAMARINDA Juanda Jl. Ir. H. Juanda No.216 C, Samarinda PADANG Sudirman Jl. Jend. Sudirman No.16, Padang Telp. : 0751 - 893205 Fax. : 0751 - 893210 JAMBI Hayam Wuruk Jl. Hayam Wuruk No. 29 – 30 Jambi 36136 0741 - 26189 0741-33377 BANJARMASIN Ahmad Yani Jl. A Yani Km 2,5 No 56 Telp : 05113257501 Fax. : 05113257990 WEST NUSA TENGGARA/NTB Pejanggik Ruko Jl. Pejanggik Cakaranegara Mataram Telp. : 0370 - 632444 Fax. : 0370 - 647543/646876 Corporate Social Responsibility Others Corporate Data BALI Thamrin Jl. MH Thamrin No.77, Denpasar Telp. : 0361 - 436047 Fax. : 0361 - 436048 BATAM Batam - Mahkota Raya Ruko Mahkota Raya Blok C No. 12B & 15, Batam Center – Batam Telp. : 0778 - 8072050 Fax. : 0778 - 8072057 KAS MOBIL KAS MOBIL - JAKARTA CENTRAL Jl. Kebon Sirih no.33, Jakarta 10340 Kas Mobil - East Gd. CIMB Niaga Cempaka Putih Lt 4 Jl Letjend Suprapto No 68 Jakarta Pusat Telp (021) 4204111 Kas Mobil - Downtown KC Gajah Mada, Jl. Gajah Mada No. 18, Jakarta 10130 KAS MOBIL - SOUTH KC Warung Buncit, Jl. Mampang Prapatan No.101, Jakarta 12790 KAS MOBIL - WEST KC Tomang Tol, Jl. Taman Kedoya Baru No.8, Kedoya Selatan, Jakarta Barat 11520 KAS MOBIL - JABAR KC Bandung Dago, Jl. Ir. H. Juanda No. 165, Kel. Lebak Siliwangi Kec. Coblong, Bandung 40115 Consolidated Financial Report KAS MOBIL - SURABAYA 2 Jl. Raya Darmo No. 26, Surabaya 60264 KAS MOBIL - MALANG 1 KC Malang Basuki Rahmat Mln 035, Jl. Basuki Rachmad No. 26-28, Malang 65119 KAS MOBIL - MALANG 2 KC Malang Basuki Rahmat Mln 035, Jl. Basuki Rachmad No. 26-28, Malang 65119 KAS MOBIL - DENPASAR KC Denpasar - Thamrin, Jl. Mh. Thamrin No 77, Denpasar 80119 KAS MOBIL - MEDAN KC Gatot Subroto, Jl. Gatot Subroto 187-Ab, Medan 20112 KAS MOBIL - BATAM Komp. Executive Center Blok I No. 1 Abc Jl. Laksamana Bintan, Sei Panas, Batam 29432 KAS MOBIL - SAMARINDA Jl. Kh. Khalid No.32, Samarinda 75111 KAS MOBIL - MAKASSAR KC Jl. Ahmad Yani No. 33, Makassar 90174 KAS MOBIL - PALEMBANG Jl. Jend. Sudirman No. 132 B, Kec. Ilri Timur I, Kel. 20 Ilir I, Palembang 30129 KAS MOBIL - CIREBON KC Cirebon Yos Sudarso, Jl. Yos Sudarso No.26, Cirebon 45111 KAS MOBIL - TANGERANG Jl. Daan Mogot No. 58, Tangerang 15111 KAS MOBIL - SEMARANG KC Semarang Pemuda, Jl. Pemuda 102-104, Semarang 50133 KAS MOBIL - YOGYAKARTA KC Yogya Sudirman 50, Jl. Jend. Sudirman No. 50, Yogyakarta 55233 KAS MOBIL - SURABAYA Jl. Raya Darmo No. 26, Surabaya 60264 Annual Report CIMB NIAGA 2017 645
  646. Performance Highlights 646 Management Reports Company Profile Management Discussion and Analysis Risk Management Annual Report CIMB NIAGA 2017
  647. Supporting Business Review Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY LAPORAN KEUANGAN KONSOLIDASIAN/ CONSOLIDATED FINANCIAL STATEMENTS 31 DESEMBER 2017, 2016, DAN 2015 SERTA UNTUK TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015/ 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 Annual Report CIMB NIAGA 2017 647
  648. Performance Highlights 648 Management Reports Company Profile Management Discussion and Analysis Risk Management Annual Report CIMB NIAGA 2017
  649. Supporting Business Review Annual Report CIMB NIAGA 2017 Corporate Governance Report Corporate Social Responsibility Others Corporate Data Consolidated Financial Report 649
  650. Performance Highlights 650 Management Reports Company Profile Management Discussion and Analysis Risk Management Annual Report CIMB NIAGA 2017
  651. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY LAPORAN POSISI KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) ASET Catatan/ Notes CONSOLIDATED STATEMENTS OF FINANCIAL POSITION 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2017 2016 2015 ASSETS Kas 2e,2f,2i,4 3,895,997 3,261,730 4,240,006 Cash Giro pada Bank Indonesia 2e,2f,2j,5 11,522,696 13,345,736 14,605,403 Current accounts with Bank Indonesia 3,574,267 1,624,152 2,348,027 3,574,267 1,624,152 2,348,027 Current accounts with other banks Less: Allowance for impairment losses 13,323,713 4,436,233 5,898,585 (9,514) 13,314,199 (11,928) 4,424,305 (14,917) 5,883,668 13,480,610 9,380,140 9,859,144 2e,2f,2h,2l,8 (38,556) 13,442,054 (35,913) 9,344,227 (37,521) 9,821,623 Obligasi Pemerintah 2e,2f,2l,9 24,971,486 18,184,132 16,049,893 Government Bonds Efek-efek yang dibeli dengan janji dijual kembali 2f,2m,10 542,956 174,552 Securities purchased under resale agreements Derivative receivables Giro pada bank lain Dikurangi: Cadangan kerugian penurunan nilai Penempatan pada bank lain dan Bank Indonesia Dikurangi: Cadangan kerugian penurunan nilai Efek-efek Dikurangi: Cadangan kerugian penurunan nilai 2e,2f,2h,2j,6 2e,2f,2h,2k,7 - Tagihan derivatif 2e,2f,2n,11 280,293 484,602 595,554 Kredit yang diberikan Pihak berelasi Pihak ketiga 2f,2ah,12,49 2e,2f,2o,12 267,700 181,138,022 181,405,722 214,746 173,372,945 173,587,691 144,370 170,588,608 170,732,978 (6,984,706) 174,421,016 (7,664,256) 165,923,435 (7,050,246) 163,682,732 3,710,084 6,493,921 6,623,851 (323,334) 3,386,750 (433,997) 6,059,924 (347,745) 6,276,106 19,607 82,427 179,927 (8,671) 10,936 (30,446) 51,981 (22,244) 157,683 Dikurangi: Cadangan kerugian penurunan nilai Piutang pembiayaan konsumen Dikurangi: Cadangan kerugian penurunan nilai Piutang sewa pembiayaan Dikurangi: Cadangan kerugian penurunan nilai 2e,2f,2h,2o,2ah,12,49 2f,2h,2p,13 2f,2h,2q,14 Placement with other banks and Bank Indonesia Less: Allowance for impairment losses Marketable securities Less: Allowance for impairment losses Loans Related parties Third parties Less: Allowance for impairment losses Consumer financing receivables Less: Allowance for impairment losses Financing lease receivables Less: Allowance for impairment losses Halaman – 1/1– Page Catatan atas laporan keuangan konsolidasian merupakan bagian yang tidak terpisahkan dari laporan keuangan konsolidasian. Annual Report CIMB NIAGA 2017 The accompanying notes form an integral part of these consolidated financial statements. 651
  652. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY LAPORAN POSISI KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) ASET (lanjutan) Tagihan akseptasi Dikurangi: Cadangan kerugian penurunan nilai Penyertaan Dikurangi: Cadangan kerugian penurunan nilai Aset tetap Dikurangi: Akumulasi penyusutan Aset tidak berwujud Dikurangi: Akumulasi penyusutan Aset yang diambil alih Dikurangi: Cadangan kerugian penurunan nilai Uang muka pajak Pendapatan bunga yang masih akan diterima Beban dibayar dimuka Aset pajak tangguhan - bersih Aset lain-lain Dikurangi: Cadangan kerugian penurunan nilai JUMLAH ASET Catatan/ Notes CONSOLIDATED STATEMENTS OF FINANCIAL POSITION 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2017 2016 2015 4,184,965 4,488,511 4,251,849 4,184,965 4,488,511 4,251,849 4,464 4,464 13,938 (805) 3,659 (890) 3,574 (890) 13,048 2t,17 7,627,294 (2,507,386) 5,119,908 7,504,192 (2,234,845) 5,269,347 4,465,175 (2,441,890) 2,023,285 Fixed assets Less: Accumulated depreciation 2u,18 2,558,339 (1,018,074) 1,540,265 2,285,292 (802,995) 1,482,297 1,946,980 (608,414) 1,338,566 Intangible assets Less: Accumulated depreciation 502,420 683,610 934,677 (108,843) 393,577 (198,188) 485,422 (16,223) 918,454 Foreclosed assets Less: Allowance for impairment losses 1,814,214 1,191,635 1,325,541 177,849 1,639,927 1,320,932 1,324,270 296,499 1,178,558 1,383,890 1,322,808 504,578 Prepaid taxes Accrued interest income Prepaid expenses Deferred tax assets - net 2,173,408 2,452,830 2,518,470 (439,270) 1,734,138 266,305,445 (439,061) 2,013,769 241,571,728 (439,501) 2,078,969 238,849,252 Other assets Less: Allowance for impairment losses 2e,2f,2h,2r,15 2f,2h,2s,16 2h,2v,19 2ae,31a 2e,2f,20 2w,2ah,21,49 2ae,31d 2f,2h,2v,2w,2ah,22,49 ASSETS (continued) Acceptance receivables Less: Allowance for impairment losses Investments Less: Allowance for impairment losses TOTAL ASSETS Halaman – 1/2– Page Catatan atas laporan keuangan konsolidasian merupakan bagian yang tidak terpisahkan dari laporan keuangan konsolidasian. 652 The accompanying notes form an integral part of these consolidated financial statements. Annual Report CIMB NIAGA 2017
  653. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY LAPORAN POSISI KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, AND 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) CONSOLIDATED STATEMENTS OF FINANCIAL POSITION 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) Catatan/ Notes 2017 2016 2f,2x,23 1,946,166 1,954,804 786,132 2e,2ah,24,49 2e,2f,2y,24 Tabungan Pihak berelasi Pihak ketiga 27,278 49,253,745 49,281,023 48,861 44,549,119 44,597,980 485,809 39,957,794 40,443,603 2e,2ah,25,49 2e,2f,2y,25 Deposito berjangka Pihak berelasi Pihak ketiga 63,137 50,151,135 50,214,272 66,270 47,144,354 47,210,624 59,123 43,063,990 43,123,113 2e,2ah,26,49 2e,2f,2y,26 73,431 89,748,470 89,821,901 88,768 88,673,762 88,762,530 155,132 94,811,229 94,966,361 189,317,196 180,571,134 178,533,077 2e,2f,2y,2ah,27,49 1,987,651 1,863,474 2,300,760 2e,2f,2y,28 4,896,684 6,884,335 2,693,999 4,557,473 3,353,650 5,654,410 2f,2m,10 2e,2f,2n,2ah,11,49 2e,2f,2r,15 2f,2z,29 2e,2f,2ah,2aa,30,49 2ae,31b 9,378,703 110,823 4,184,965 5,403,613 5,809,723 169,634 362,917 4,077,182 3,237,704 5,436,073 1,996,167 888,704 4,190,087 4,476,921 6,684,630 215,466 230,036 445,502 100,681 223,216 323,897 152,655 152,655 2,228,145 758,521 2,986,666 1,881,462 792,278 2,673,740 1,812,654 898,148 2,710,802 1,289,985 1,596,772 229,354,449 1,019,982 2,979,566 207,364,106 1,126,506 2,969,774 210,169,865 LIABILITAS DAN EKUITAS LIABILITAS Liabilitas segera Simpanan dari nasabah Giro Pihak berelasi Pihak ketiga Jumlah simpanan dari nasabah Simpanan dari bank Lain Giro dan tabungan Inter-bank call money dan deposito berjangka Efek-efek yang dijual dengan janji dibeli kembali Liabilitas derivatif Liabilitas akseptasi Efek-efek yang diterbitkan Pinjaman yang diterima Utang Pajak - Pajak penghasilan badan - Pajak lain-lain Beban yang masih harus dibayar dan liabilitas lain-lain - Beban yang masih harus dibayar - Liabilitas lain-lain Liabilitas imbalan kerja Pinjaman subordinasi JUMLAH LIABILITAS 2f,32a 2f,32b 2af,45 2f,2aa,33 2015 LIABILITIES AND EQUITY LIABILITIES Obligations due immediately Deposits from customers Demand deposits Related parties Third parties Saving deposits Related parties Third parties Time deposits Related parties Third parties Total deposits from customers Deposits from other banks Demand and saving deposits Inter-bank call money and time deposits Securities sold under repurchase agreement Derivative payables Acceptance payables Marketable securities issued Borrowings Taxes payable Corporate income Taxes Other taxes Accruals and other liabilities Accruals Other liabilities - Employee benefit obligations Subordinated loans TOTAL LIABILITIES Halaman – 1/3– Page Catatan atas laporan keuangan konsolidasian merupakan bagian yang tidak terpisahkan dari laporan keuangan konsolidasian. Annual Report CIMB NIAGA 2017 The accompanying notes form an integral part of these consolidated financial statements. 653
  654. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY LAPORAN POSISI KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) Catatan/ Notes EKUITAS Ekuitas diatribusikan kepada pemilik entitas induk Modal saham biasa Modal dasar 71.853.936 saham biasa kelas A, dengan nilai nominal Rp 5.000 (nilai penuh) per saham dan 50.814.606.400 saham biasa kelas B, dengan nilai nominal Rp 50 (nilai penuh) per saham Modal ditempatkan dan disetor penuh 71.853.936 lembar saham biasa kelas A dan 25.059.752.907 lembar saham biasa kelas B pada tanggal 31 Desember 2017, 2016, dan 2015 Tambahan modal disetor Transaksi dengan kepentingan nonpengendali Saham treasuri Cadangan kompensasi berbasis saham Selisih penilaian kembali aset tetap Keuntungan/(kerugian) yang belum direalisasi atas efek-efek dan obligasi pemerintah dalam kelompok tersedia untuk dijual Cadangan umum dan wajib Saldo laba Kepentingan nonpengendali Jumlah ekuitas JUMLAH LIABILITAS DAN EKUITAS 34 2c,34 2ai, 34 2t,17 2l 35 2c,50 CONSOLIDATED STATEMENTS OF FINANCIAL POSITION 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2017 2016 2015 1,612,257 7,033,450 (35,723) (242,902) 57,011 3,077,883 1,612,257 7,033,450 (35,723) 57,011 3,077,883 1,612,257 7,033,450 (35,723) 57,011 - 25,822 351,538 25,070,779 36,950,115 881 36,950,996 (166,991) 351,538 22,277,379 34,206,804 818 34,207,622 (600,600) 351,538 20,260,666 28,678,599 788 28,679,387 266,305,445 241,571,728 238,849,252 EQUITY Equity attributable to owners of the parent Share capital Authorized capital 71,853,936 class A ordinary shares with par value of Rp 5,000 (full amount) per share, and 50,814,606,400 class B ordinary shares with par value of Rp 50 (full amount) per share Issued and fully paid 71,853,936 class A ordinary shares and 25,059,752,907 class B ordinary shares as at 31 December 2017, 2016, and 2015 Additional paid in capital Transactions with non-controlling interest Treasury shares Share-based compensation reserve Reserve on revaluation of fixed assets Unrealised gains/(losses) on available-for-sale marketable securities and government bonds General and statutory reserve Retained earnings Non-controlling interest Total equity TOTAL LIABILITIES AND EQUITY Halaman – 1/4– Page Catatan atas laporan keuangan konsolidasian merupakan bagian yang tidak terpisahkan dari laporan keuangan konsolidasian. 654 The accompanying notes form an integral part of these consolidated financial statements. Annual Report CIMB NIAGA 2017
  655. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY LAPORAN LABA RUGI DAN PENGHASILAN KOMPREHENSIF LAIN KONSOLIDASIAN UNTUK TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) PENDAPATAN DAN BEBAN OPERASIONAL Pendapatan bunga dan syariah Beban bunga dan syariah Pedapatan bunga dan syariah - bersih Pendapatan operasional lainnya : Provisi dan komisi lainnya Kerugian transaksi mata uang asing Lain-lain Jumlah pendapatan operasional lainnya Kerugian penurunan nilai atas aset keuangan dan nonkeuangan - bersih Keuntungan dari instrumen keuangan yang diperdagangkan - bersih Keuntungan dari penjualan efek-efek Beban operasional lainnya : Beban tenaga kerja Beban umum dan administrasi Lain-lain Jumlah beban operasional lainnya LABA OPERASIONAL BERSIH PENDAPATAN/(BEBAN) BUKAN OPERASIONAL Pendapatan/(beban) bukan operasional - bersih Catatan/ Notes LABA BERSIH 2017 2016 2015 INCOME AND EXPENSES FROM OPERATIONS 2ab,2ah,36,49 2ab,2ah,37,49 20,403,384 (8,000,005) 12,403,379 21,324,648 (9,230,618) 12,094,030 22,318,759 (10,932,399) 11,386,360 2ac,38 2e 2,134,817 (51,022) 494,632 2,113,360 (7,499) 278,600 1,718,096 (395,277) 363,330 2,578,427 2,384,461 1,686,149 (4,079,805) (4,972,951) (5,343,457) 396,888 284,065 500,407 145,162 (3,646,919) (3,759,535) (26,445) (7,432,899) 2,753,594 (4,156,096) (3,520,606) (6,256) (7,682,958) 691,663 Impairment losses on financial and non-financial assets - net Gains from trading financial instruments - net Gains from sale of marketable securities Other operating expenses : Personnel expenses General and administrative expenses Others Total other operating expenses NET OPERATING INCOME 2h,39 2n,2l,40 2l,41 330,460 443,561 2ad,42 2ad,43 (3,948,212) (3,443,268) (177,971) (7,569,451) 4,106,571 44 LABA SEBELUM PAJAK PENGHASILAN BEBAN PAJAK PENGHASILAN CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2ae,31c Interest and sharia income Interest and sharia expense Net interest and sharia income Other operating income : Other fees and commissions Foreign exchange losses Others Total other operating income 48,449 97,114 (121,659) INCOME/(EXPENSE) FROM NON OPERATIONS Non operating income/(expense) - net 4,155,020 2,850,708 570,004 INCOME BEFORE INCOME TAX (1,177,282) (768,991) (142,119) INCOME TAX EXPENSE 2,977,738 2,081,717 427,885 NET INCOME Halaman –2/1– Page Catatan atas laporan keuangan konsolidasian merupakan bagian yang tidak terpisahkan dari laporan keuangan konsolidasian. Annual Report CIMB NIAGA 2017 The accompanying notes form an integral part of these consolidated financial statements. 655
  656. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY LAPORAN LABA RUGI DAN PENGHASILAN KOMPREHENSIF LAIN KONSOLIDASIAN UNTUK TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) Catatan/ Notes Laba bersih CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2017 2,977,738 2016 2015 2,081,717 427,885 Net income 144 Other comprehensive income: Items that will not be reclassified to profit or loss Remeasurement of post employment benefits obligation actuarial (loss)/gain Penghasilan komprehensif lain: Pos-pos yang tidak akan direklasifikasi ke laba rugi Pengukuran kembali atas program imbalan pasti (kerugian)/keuntungan aktuarial Selisih penilaian kembali aset tetap 2ae,45 (245,700) (86,632) 2t,17 (245,700) 3,173,528 3,086,896 144 31d 61,425 (73,987) (36) (184,275) 3,012,909 108 Pajak penghasilan terkait pos-pos yang tidak akan direklasifikasi ke laba rugi Pos-pos yang akan direklasifikasi ke laba rugi Keuntungan/(kerugian) yang belum direalisai atas perubahan nilai wajar dari efek-efek dan obligasi pemerintah dalam kelompok tersedia untuk dijual Dikurangi : Penyesuaian reklasifikasi atas keuntungan/(kerugian) yang termasuk dalam laba rugi Pajak penghasilan terkait pos-pos yang akan direklasifikasi ke laba rugi Income tax relating to item that will not be 2l,8,9 31d PENGHASILAN KOMPREHENSIF LAIN SETELAH PAJAK JUMLAH PENGHASILAN KOMPREHENSIF Laba bersih yang dapat diatribusikan kepada: Pemilik entitas induk Kepentingan nonpengendali Jumlah penghasilan komprehensif yang dapat diatribusikan kepada: Pemilik entitas induk Kepentingan nonpengendali LABA PER SAHAM (dalam nilai penuh Rupiah per saham) Dasar Dilusian Reserve on revaluation of fixed assets 50b 50b 2ag,47 275,461 173,378 (225,386) (18,377) 257,084 404,768 578,146 (36,348) (261,734) (64,271) 192,813 (144,537) 433,609 65,434 (196,300) 8,538 2,986,276 3,446,518 5,528,235 (196,192) 231,693 2,977,675 63 2,977,738 2,081,687 30 2,081,717 427,831 54 427,885 2,986,213 63 2,986,276 118.50 118.50 5,528,205 30 5,528,235 82.83 82.83 231,639 54 231,693 17.02 17.02 reclassified to profit or loss Item that will be reclassified subsequently to profit or loss Unrealised gains/(losses) from changes in fair value of available-for-sale marketable securities and government bonds Less : Reclassification adjustment on gains/(losses) which already included in profit or loss Income tax relating to item that will be reclassified to profit or loss OTHER COMPREHENSIVE INCOME NET OF TAX TOTAL COMPREHENSIVE INCOME Net income attributable to: Equity holders of the parent Non-controlling interest Total comprehensive income attributable to: Equity holders of the parent Non-controlling interest EARNINGS PER SHARE (expressed in Rupiah full amount per share) Basic Diluted Halaman –2/2– Page Catatan atas laporan keuangan konsolidasian merupakan bagian yang tidak terpisahkan dari laporan keuangan konsolidasian. 656 The accompanying notes form an integral part of these consolidated financial statements. Annual Report CIMB NIAGA 2017
  657. Annual Report CIMB NIAGA 2017 657 2l ,2ae,8,9,31d,45,50 Catatan/ Notes - 1,612,257 - 1,612,257 7,033,450 - 7,033,450 (35,723) - (35,723) 57,011 - 57,011 Catatan atas laporan keuangan konsolidasian merupakan bagian yang tidak terpisahkan dari laporan keuangan konsolidasian. (196,300) (196,300) (600,600) - (404,300) 351,538 - 351,538 (35,723) - (35,723) 57,011 - 57,011 Cadangan kompensasi berbasis saham/ Share based compensation reserve 3,077,883 3,077,883 3,077,883 - - Selisih penilaian kembali aset tetap/ Reserve on revaluation of fixed assets 351,538 - 351,538 Cadangan umum dan wajib/ General and statutory reserve Halaman – 3/1– Page 433,609 433,609 (166,991) - (600,600) (Kerugian)/keuntungan yang belum direalisasi atas efek-efek dan obligasi pemerintah dalam kelompok tersedia untuk dijual setelah pajak/ Unrealised (losses)/gains on available-for-sale marketable securities and government bonds net of tax Diatribusikan kepada pemilik entitas induk/Attributable to equity holders of the parent Transaksi dengan kepentingan non pengendali/ Transaction with noncontrolling interest 7,033,450 - 7,033,450 Tambahan modal disetor/ Additional paid in capital 1,612,257 Modal saham/ Share capital 2l,2ae,8,9,31d,45,50 1,612,257 Modal saham/ Share capital 3,446,518 5,528,205 34,206,804 2,081,687 28,678,599 30 818 - 30 788 Kepentingan nonpengendali/ Noncontrolling interest 54 788 - 54 734 Kepentingan nonpengendali/ Noncontrolling interest 3,446,518 5,528,235 34,207,622 2,081,717 28,679,387 Jumlah ekuitas/ Total equity (196,192) 231,693 28,679,387 427,885 28,447,694 Jumlah ekuitas/ Total equity *) - Balance as at 31 December 2016 Other comprehensive income *) - Balance as at 1 January 2016 Total comprehensive income for the year: Net income - Balance as at 31 December 2015 Other comprehensive income Balance as at 1 January 2015 Total comprehensive income for the current year: Net income - CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) The accompanying notes form an integral part of these consolidated financial statements. Amounts included in retained earnings for the year ended 31 December 2017, 2016, and 2015 are the *) remeasurement of post employment benefits obligation net of tax (64,974) 2,016,713 22,277,379 2,081,687 20,260,666 Jumlah/ Total (196,192) 231,639 28,678,599 427,831 28,446,960 Jumlah/ Total Saldo laba/ Retained earnings 108 427,939 20,260,666 427,831 19,832,727 Diatribusikan kepada pemilik entitas induk/Attributable to equity holders of the parent Kerugian yang belum direalisasi atas efekefek dan obligasi Transaksi pemerintah dalam dengan kelompok tersedia kepentingan untuk dijual setelah Cadangan non pajak/ kompensasi Cadangan pengendali/ Unrealised losses on berbasis umum dan Transaction available-for-sale saham/ wajib/ with nonmarketable securities Share based General and controlling compensation and government bonds statutory Saldo laba/ interest net of tax reserve reserve Retained earnings *) Jumlah yang termasuk di dalam saldo laba untuk tahun yang berakhir 31 Desember 2017, 2016, dan 2015 merupakan pengukuran kembali atas program imbalan pasti setelah pajak Saldo 31 Desember 2016 - Penghasilan komprehensif lain *) Saldo 1 Januari 2016 Jumlah laba komprehensif tahun berjalan: - Laba bersih Saldo 31 Desember 2015 - Penghasilan komprehensif lain *) Saldo 1 Januari 2015 Jumlah laba komprehensif tahun berjalan - Laba bersih Catatan/ Notes Tambahan modal disetor/ Additional paid in capital LAPORAN PERUBAHAN EKUITAS KONSOLIDASIAN UNTUK TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK/AND SUBSIDIARY
  658. 658 Annual Report CIMB NIAGA 2017 2ai ,34 2l,2ae,8,9,31d,45,50 1,612,257 - 1,612,257 Modal saham/ Share capital 7,033,450 - 7,033,450 (35,723) - (35,723) Transaksi dengan kepentingan non pengendali/ Transaction with noncontrolling interest 57,011 - 57,011 Cadangan kompensasi berbasis saham/ Share based compensation reserve 3,077,883 - 3,077,883 Selisih penilaian kembali aset tetap/ Reserve on revaluation of fixed assets Catatan atas laporan keuangan konsolidasian merupakan bagian yang tidak terpisahkan dari laporan keuangan konsolidasian. (242,902) (242,902) - - Saham Treasuri/ Treasury Shares Halaman – 3/2– Page 192,813 192,813 25,822 - (166,991) Keuntungan/(kerugian) yang belum direalisasi atas efek-efek dan obligasi pemerintah dalam kelompok tersedia untuk dijual setelah pajak/ Unrealised gains/(losses) on available-for-sale marketable securities and government bonds net of tax (184,275) 2,793,400 25,070,779 2,977,675 22,277,379 Saldo laba/ Retained earnings 8,538 2,986,213 (242,902) 36,950,115 2,977,675 34,206,804 Jumlah/ Total 63 881 - 63 818 Kepentingan nonpengendali/ Noncontrolling interest 8,538 2,986,276 (242,902) 36,950,996 2,977,738 34,207,622 Jumlah ekuitas/ Total equity Treasury shares Balance as at 31 December 2017 Other comprehensive income *) - Balance as at 1 January 2017 Total comprehensive income for the year: Net income - CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) The accompanying notes form an integral part of these consolidated financial statements. Amounts included in retained earnings for the year ended 31 December 2017, 2016, and 2015 are the *) remeasurement of post employment benefits obligation net of tax 351,538 - 351,538 Cadangan umum dan wajib/ General and statutory reserve Diatribusikan kepada pemilik entitas induk/Attributable to equity holders of the parent *) Jumlah yang termasuk di dalam saldo laba untuk tahun yang berakhir 31 Desember 2017, 2016, dan 2015 merupakan pengukuran kembali atas program imbalan pasti setelah pajak - Saham treasuri Saldo 31 Desember 2017 - Penghasilan komprehensif lain *) Saldo 1 Januari 2017 Jumlah laba komprehensif tahun berjalan: - Laba bersih Catatan/ Notes Tambahan modal disetor/ Additional paid in capital LAPORAN PERUBAHAN EKUITAS KONSOLIDASIAN UNTUK TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK/AND SUBSIDIARY
  659. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY LAPORAN ARUS KAS KONSOLIDASIAN UNTUK TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) Catatan/ Notes 2017 2016 2015 Arus kas dari aktivitas operasi Cash flow from operating activities Pendapatan bunga, provisi, dan komisi yang diterima Bunga, provisi, dan komisi yang dibayar Penghasilan operasional lainnya Keuntungan/(kerugian) transaksi mata uang asing dan derivatif - bersih Beban operasional lainnya Pendapatan/(beban) bukan operasional - bersih Arus kas sebelum perubahan dalam aset dan liabilitas operasi Perubahan dalam aset dan liabilitas: Penurunan/(kenaikan) aset: Efek-efek dan Obligasi Pemerintah untuk tujuan diperdagangkan Efek-efek yang dibeli dengan janji dijual kembali Kredit yang diberikan Tagihan akseptasi Piutang pembiayaan konsumen Kenaikan/(penurunan) liabilitas: Simpanan nasabah Simpanan dari bank lain Efek-efek yang dijual dengan janji dibeli kembali Liabilitas akseptasi Hutang pajak Pajak penghasilan yang dibayar selama tahun berjalan Kas bersih yang diperoleh dari aktivitas operasi 22,474,578 (7,063,587) 494,632 23,297,874 (8,071,720) 278,600 24,055,270 (9,413,172) 363,330 66,269 (6,291,563) 47,611 178,063 (5,983,512) (1,391) (299,650) (7,990,369) (159,381) 9,727,940 9,697,914 6,556,028 (172,211) 542,956 (12,605,896) 303,546 2,846,657 2,217,159 (368,404) (6,739,180) (236,662) 227,430 (3,564,608) (174,552) (5,427,105) 867,757 472,433 8,746,062 2,326,862 9,209,069 107,783 (19,477) 2,038,057 (1,096,937) (1,826,533) (112,905) 38,281 3,809,843 3,587,854 1,996,167 (923,140) (173,374) (883,991) (546,888) (272,129) 20,129,300 3,291,332 6,755,174 31c Receipts of interest, fees, and commissions income Payments of interest, fees, and commissions Other operating income Foreign exchange and derivatives gain/(losses) - net Other operating expense Non operating income/(expense) - net Cash flow before changes in operating assets and liabilities Changes in assets and liabilities : Decrease/(increase) in assets : Trading marketable securities and Government Bonds Securities purchased under resale agreements Loans Acceptance receivables Consumer financing receivables Increase/(decrease) in liabilities : Deposits from customers Deposits from other banks Securities sold under repurchase agreement Acceptance payables Taxes payable Income tax paid during the year Net cash provided by operating activities Halaman – 4/1– Page Catatan atas laporan keuangan konsolidasian merupakan bagian yang tidak terpisahkan dari laporan keuangan konsolidasian. Annual Report CIMB NIAGA 2017 The accompanying notes form an integral part of these consolidated financial statements. 659
  660. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY LAPORAN ARUS KAS KONSOLIDASIAN UNTUK TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) Arus kas dari aktivitas investasi Hasil penjualan aset tetap Pelepasan atas penyertaan jangka panjang Kenaikan efek-efek dan obligasi pemerintah - tersedia untuk dijual dan yang dimiliki hingga jatuh tempo Pembelian aset tetap Pembelian aset tidak berwujud Kas bersih yang digunakan untuk aktivitas investasi CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) Catatan/ Notes 2017 2016 2015 Cash flow from investing activities 17 1,402 3,601 4,262 16 - 9,474 - 17 18 (8,469,152) (205,233) (273,139) (3,317,473) (426,020) (341,008) (970,099) (514,243) (791,016) (8,946,122) (4,071,426) (2,271,096) Proceeds from sale of fixed assets Disposal in long term investments Increase in available-for-sale and held-to-maturity marketable securities and government bonds Acquisition of fixed assets Acquisition of intangible assets Net cash used in investing activities Cash flow from financing activities Arus kas dari aktivitas pendanaan Saham treasuri Efek-efek yang diterbitkan Pembayaran pokok dan bunga dari obligasi dan efek-efek yang diterbitkan Penambahan atas pinjaman yang diterima Pembayaran atas bunga dan pinjaman yang diterima Pembayaran atas pinjaman subordinasi Kas bersih yang digunakan untuk aktivitas pendanaan (242,902) 4,000,000 1,000,000 (2,421,563) (2,917,036) (2,125,555) 3,397,046 (3,440,400) (1,380,000) 1,027,144 (2,843,763) - 736,908 (3,473,489) - (87,819) (3,733,655) (4,862,136) Addition of borrowings Payment of interest and borrowings Payment of subordinated loans Net cash used in by financing activities 154,962 (200,952) 1,001,560 Effects on exchange rate differences in cash and cash equivalent Kenaikan/(penurunan) bersih kas dan setara kas 11,250,321 (4,714,701) 623,502 Net increase/(decrease) in cash and cash equivalent Kas dan setara kas pada awal tahun 23,416,115 28,130,816 27,507,314 Cash and cash equivalent at beginning of the year Kas dan setara kas pada akhir tahun 34,666,436 23,416,115 28,130,816 Cash and cash equivalent at end of the year 3,895,997 11,522,696 3,574,267 3,261,730 13,345,736 1,624,152 4,240,006 14,605,403 2,348,027 13,323,713 4,436,233 5,898,585 2,349,763 34,666,436 748,264 23,416,115 1,038,795 28,130,816 Pengaruh perubahan kurs mata uang pada kas dan setara kas Kas dan setara kas terdiri dari: Kas Giro pada Bank Indonesia Giro pada bank lain Penempatan pada bank lain - jangka waktu jatuh tempo tiga bulan atau kurang sejak tanggal perolehan Sertifikat Bank Indonesia dan Sertifikat Bank Dalam Negeri - jangka waktu jatuh tempo tiga bulan atau kurang sejak tanggal perolehan Jumlah kas dan setara kas 2e,4,5,6,7,8 Informasi tambahan arus kas: Aktivitas yang tidak mempengaruhi arus kas - - - - Treasury shares Marketable securities issued Payment of principal and interest from bonds and marketable securities issued Cash and cash equivalent consist of: Cash Current accounts with Bank Indonesia Current accounts with other banks Placements with other banks - mature within three months or less since acquisition date Bank Indonesia Certificates and Local Bank Certificates - mature within three months or less since acquisition date Total cash and cash equivalents Supplemental cash flows information: Activities not affecting cash flows Halaman – 4/2– Page Catatan atas laporan keuangan konsolidasian merupakan bagian yang tidak terpisahkan dari laporan keuangan konsolidasian. 660 The accompanying notes form an integral part of these consolidated financial statements. Annual Report CIMB NIAGA 2017
  661. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 1. INFORMASI UMUM a. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 1. Pendirian dan informasi umum GENERAL INFORMATION a. Establishment and general information PT Bank CIMB Niaga Tbk (“Bank CIMB Niaga” atau “Bank”) didirikan menurut hukum yang berlaku di Indonesia, berdasarkan Akta Pendirian Perusahaan No. 90 yang dibuat di hadapan Raden Meester Soewandi, Notaris di Jakarta tanggal 26 September 1955 dan diubah dengan akta dari notaris yang sama No. 9 tanggal 4 November 1955. Akta-akta pendirian ini disahkan oleh Menteri Kehakiman Republik Indonesia (sekarang Menteri Hukum dan Hak Asasi Manusia) dengan surat keputusan No. J.A.5/110/15 tanggal 1 Desember 1955 dan diumumkan dalam Berita Negara Republik Indonesia No. 71 tanggal 4 September 1956, Tambahan Berita Negara No. 729/1956. PT Bank CIMB Niaga Tbk (“Bank CIMB Niaga" or the “Bank”) was established in accordance with laws applicable in Indonesia by Notarial Deed No. 90 made by Raden Meester Soewandi, Notary in Jakarta dated 26 September 1955, which was amended by deed No. 9 of the same notary dated 4 November 1955. These deeds were approved by the Minister of Justice of the Republic of Indonesia (currently Minister of Law and Human Rights) through decision letter No. J.A.5/110/15 dated1 December 1955 and was published in Supplement No. 729/1956 to the State Gazette of the Republic of Indonesia No. 71 dated 4 September 1956. Setelah pendiriannya, Anggaran Dasar Bank CIMB Niaga telah mengalami beberapa kali perubahan, diantaranya perubahan yang penting adalah: After its establishment, Bank CIMB Niaga’s Articles of Association have been amended from time to time, where such significant amendments are as follows:  Berdasarkan Akta No. 1 tanggal 2 Mei 2008, yang dibuat di hadapan Dr. Amrul Partomuan Pohan, S.H., LLM, Notaris di Jakarta, mengenai penyesuaian Anggaran Dasar PT Bank Niaga Tbk sesuai Undang-Undang No. 40 Tahun 2007 tentang Perseroan Terbatas, dimana perubahan tersebut disetujui oleh Menteri Hukum dan Hak Asasi Manusia Republik Indonesia No. AHU24544.AH.01.02 tahun 2008 tanggal 12 Mei 2008;  Pursuant to Notarial Deed No. 1 dated 2 May 2008, made by Dr. Amrul Partomuan Pohan, S.H., LLM, Notary in Jakarta, regarding the amendment of PT Bank Niaga Tbk’s Articles of Association in respect of Law No. 40 Year 2007 on Limited Liability Company, which amendment was approved by the Minister of Law and Human Rights of the Republic of Indonesia in its letter No. AHU-24544.AH.01.02 year 2008 dated 12 May 2008;  Berdasarkan Akta No. 38 tanggal 28 Mei 2008, yang dibuat di hadapan Dr. Amrul Partomuan Pohan, S.H., LLM, mengenai perubahan nama dari sebelumnya PT Bank Niaga Tbk menjadi PT Bank CIMB Niaga Tbk, dimana perubahan nama tersebut disetujui oleh Menteri Hukum dan Hak Asasi Manusia Republik Indonesia melalui suratnya No. AHU-32968.AH.01.02 Tahun 2008 tanggal 13 Juni 2008 dan surat keputusan Gubernur Bank Indonesia (”BI”) No.10/56/KEP.GBI/2008 tanggal 22 Juli 2008; dan  Pursuant to Notarial Deed No. 38 dated 28 May 2008, made by Notary Dr. Amrul Partomuan Pohan, S.H., LLM, regarding the change of name from PT Bank Niaga Tbk into PT Bank CIMB Niaga Tbk, which amendment was approved by the Minister of Law and Human Rights of the Republic of Indonesia by its letter No. AHU32968.AH.01.02 Year 2008 dated 13 June 2008 and decision letter of the Governor of Bank Indonesia (“BI”) No.10/56/KEP.GBI/2008 dated 22 July 2008; and Halaman – 5/1– Page Annual Report CIMB NIAGA 2017 661
  662. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 1. INFORMASI UMUM (lanjutan) a. 1. Pendirian dan informasi umum (lanjutan)  NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) GENERAL INFORMATION (continued) a. Berdasarkan Akta No. 22 tanggal 21 April 2014, yang dibuat di hadapan Notaris Himawan Sutanto, S.H., mengenai perubahan Pasal 3 ayat 2, Pasal 14 ayat 2, Pasal 14 ayat 4, Pasal 17 ayat 3, dan Pasal 17 ayat 5, dimana perubahan tersebut disetujui oleh Menteri Hukum dan Hak Asasi Manusia Republik Indonesia No. AHU02085.40.20.2014 tahun 2014 tanggal 29 April 2014. Establishment and general information (continued)  Pursuant to Notarial Deed No. 22 dated 21 April 2014, made by Notary Himawan Sutanto, S.H., regarding the changes of Article 3 paragraph 2, Article 14 paragraph 2, Article 14 paragraph 4, Article 17 paragraph 3, and Article 17 paragraph 5, which amendment was approved by the Minister of Law and Human Rights of the Republic of Indonesia in its letter No. AHU02085.40.20.2014 year 2014 dated 29 April 2014. Berdasarkan pasal 3 Anggaran Dasar Bank CIMB Niaga, ruang lingkup kegiatan Bank CIMB Niaga adalah melakukan usaha di bidang perbankan sesuai dengan undang-undang dan peraturan yang berlaku, dan melakukan kegiatan perbankan lainnya berdasarkan prinsip Syariah. Bank CIMB Niaga mulai melakukan kegiatan perbankan berdasarkan prinsip Syariah pada tanggal 27 September 2004. According to Article 3 of its Articles of Association, Bank CIMB Niaga’s scope of activities is to conduct general banking services in accordance with the prevailing laws and regulations, and to engage in other banking activities based on Sharia principles. Bank CIMB Niaga had started its banking activities based on the Sharia principles on 27 September 2004. Bank CIMB Niaga memperoleh izin usaha sebagai bank umum, bank devisa, dan bank yang melakukan kegiatan berdasarkan prinsip Syariah masing-masing berdasarkan surat keputusan Menteri Keuangan Republik Indonesia No. 249544/U.M.II tanggal 11 November 1955, surat keputusan Direksi Bank Indonesia (BI) No. 7/116/Kep/Dir/UD tanggal 22 November 1974, dan surat keputusan Gubernur BI No. 6/71/KEP.GBI/2004 tanggal 16 September 2004. Bank CIMB Niaga had obtained the license to operate as a commercial bank, a foreign exchange bank, and a bank engaged in activities based on Sharia principles based on the decision letter of the Minister of Finance of the Republic of Indonesia No. 249544/U.M.II dated 11 November 1955, the decision letter of the Directors of BI No. 7/116/Kep/Dir/UD dated 22 November 1974, and the decision letter of the Governor of Bank Indonesia (BI) No. 6/71/KEP.GBI/2004 dated 16 September 2004. Sejak berdirinya, Bank CIMB Niaga telah mengalami 4 (empat) kali penggabungan usaha, yaitu:  Tanggal 22 Oktober 1973 dengan PT Bank Agung;  Tanggal 30 November 1978 dengan PT Bank Tabungan Bandung;  Tanggal 17 Oktober 1983 dengan PT Bank Amerta; dan  Tanggal 1 November 2008 dengan PT Bank Lippo Tbk (lihat Catatan 1b). Since establishment, Bank CIMB Niaga had 4 (four) mergers, on:  22 October 1973 with PT Bank Agung;  30 November 1978 with PT Bank Tabungan Bandung;  17 October 1983 with PT Bank Amerta; and  1 November 2008 with PT Bank Lippo Tbk (refer to Note 1b). Halaman – 5/2– Page 662 Annual Report CIMB NIAGA 2017
  663. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 1. INFORMASI UMUM (lanjutan) a. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 1. Pendirian dan informasi umum (lanjutan) GENERAL INFORMATION (continued) a. Kantor Pusat Bank CIMB Niaga berlokasi di Jl. Jend. Sudirman Kav. 58, Jakarta. Pada tanggal 31 Desember 2017 kantor cabang, kantor cabang pembantu, kantor pembayaran, unit cabang Syariah domestik, dan kantor layanan Syariah Bank CIMB Niaga tersebar di 28 (dua puluh delapan) propinsi di seluruh Indonesia (2016 dan 2015: 28 propinsi). Pada tanggal 31 Desember 2017, 2016, dan 2015 jumlah jaringan cabang-cabang dan kantor-kantor pembantu Bank CIMB Niaga adalah (tidak diaudit): 2017 Kantor cabang domestik Kantor cabang pembantu domestik Kantor pembayaran domestik Kantor cabang Syariah domestik Kantor kas Syariah Kantor pembayaran Syariah domestik Kantor layanan Syariah Automated Teller Machine (ATM) termasuk AT M Syariah b. Establishment and general information (continued) Bank CIMB Niaga’s head office is located at Jl. Jend. Sudirman Kav. 58, Jakarta. As at 31 December 2017 Bank CIMB Niaga’s domestic branches, supporting branches, payment points, Sharia unit branches, and Sharia service offices are located in 28 (twenty eight) provinces throughout Indonesia (2016 and 2015: 28 provinces). As at 31 December 2017, 2016, and 2015 the number of Bank CIMB Niaga’s branches and representative offices are as follows (unaudited): 2015 2016 136 345 14 24 1 2 460 138 421 25 30 524 156 586 34 30 616 4,500 3,865 3,364 Penggabungan usaha dengan PT Bank Lippo Tbk b. Domestic branches Domestic support branches Domestic payments points Domestic Sharia unit branches Sharia cash branches Sharia Domestic payments points Sharia service offices Automated Teller Machine (ATM) including Sharia ATM Merger with PT Bank Lippo Tbk Pada tanggal 28 Oktober 2008 (sebelum tanggal efektif penggabungan), CIMB Group Sdn. Bhd. dan Santubong Ventures Sdn. Bhd. melakukan pembelian atas saham Santubong Investment BV. pada PT Bank Lippo Tbk (“Bank Lippo”), masing-masing sebanyak 51,00% dan 36,03%. Hal ini sesuai dengan Rancangan Penggabungan Usaha Bank CIMB Niaga dan Bank Lippo. On 28 October 2008 (before the effective date of merger), CIMB Group Sdn. Bhd. and Santubong Ventures Sdn. Bhd. acquired shares owned by Santubong Investment BV. of PT Bank Lippo Tbk (“Bank Lippo”) being 51.00% and 36.03%, respectively. This is in accordance with the Merger Plan of Bank CIMB Niaga and Bank Lippo. Sehubungan dengan diperolehnya persetujuan dari BI atas rencana penggabungan Bank Lippo ke dalam Bank CIMB Niaga melalui Surat Keputusan Gubernur BI No. 10/66/KEP.GBI/2008 tanggal 15 Oktober 2008 tentang “Pemberian Izin Penggabungan Usaha PT Bank Lippo Tbk ke dalam PT Bank CIMB Niaga Tbk”, serta dengan diterimanya Surat Menteri Hukum dan Hak Asasi Manusia Republik Indonesia No. AHUAH.01.10-22669 tanggal 22 Oktober 2008 perihal “Penerimaan Pemberitahuan Penggabungan Perseroan PT Bank CIMB Niaga Tbk”, penggabungan usaha menjadi efektif pada tanggal 1 November 2008. Pernyataan penggabungan usaha ini memperoleh surat pemberitahuan efektif dari Bapepam-LK melalui surat No. S-4217/BL/2008 tanggal 30 Juni 2008. Upon receiving approval from BI on the merger plan of Bank Lippo into Bank CIMB Niaga through Decision Letter of the Governor of BI No.10/66/KEP.GBI/2008 dated 15 October 2008 regarding “Approval of Merger of PT Bank Lippo Tbk into PT Bank CIMB Niaga Tbk”, and Letter of Minister of Law and Human Rights of Republic of Indonesia No. AHU-AH.01.10-22669 dated 22 October 2008 regarding “Acceptance of Notification on Merger of PT Bank CIMB Niaga Tbk”, the merger was effective on 1 November 2008. Statement of this merger has received effective notice from BapepamLK through its letter No. S-4217/BL/2008 dated 30 June 2008. Halaman – 5/3– Page Annual Report CIMB NIAGA 2017 663
  664. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 1. INFORMASI UMUM (lanjutan) b. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 1. Penggabungan usaha dengan PT Bank Lippo Tbk (lanjutan) GENERAL INFORMATION (continued) b. Merger with PT Bank Lippo Tbk (continued) Tanggal efektif penggabungan usaha dengan Bank Lippo ditetapkan pada tanggal 1 November 2008 berdasarkan Akta No. 9 tanggal 16 Oktober 2008 yang dibuat di hadapan Notaris Dr. Amrul Partomuan Pohan, S.H., LLM, Notaris di Jakarta. Akta ini merupakan perubahan dari akta sebelumnya yaitu Akta No. 37 tanggal 18 Juli 2008 yang dibuat di hadapan Notaris Dr. Amrul Partomuan Pohan, S.H., LLM, Notaris di Jakarta. The effective date of the merger with Bank Lippo was 1 November 2008 based on Notarial Deed No. 9 dated 16 October 2008 made by Notary Dr. Amrul Partomuan Pohan, S.H., LLM, Notary in Jakarta. This deed represented the amendment from Notarial Deed No. 37 dated 18 July 2008 made by Notary Dr. Amrul Partomuan Pohan, S.H., LLM, Notary in Jakarta. Susunan pemegang saham sebelum dan pada tanggal penggabungan usaha adalah: The shareholders composition before and at the merger date was effective is as follows: Pemegang saham Bank Pemegang saham Bank CIMB Niaga pada CIMB Niaga sebelum tanggal penggabungan penggabungan usaha/ usaha/Bank CIMB Pemegang saham Bank Lippo Bank CIMB Niaga’s shareholders before the Niaga’s shareholders at sebelum penggabungan usaha/ merger Bank Lippo’s shareholders before merger the merger date Jumlah saham Jumlah saham setelah sebelum Jumlah konversi/ konversi/ Jumlah saham/ Number of Number of saham/ Number of shares after shares before Number of shares % conversion conversion % shares % Saham biasa kelas A - Masyarakat (kepemilikan dibawah 5%) Saham biasa kelas B - CIMB Group Sdn Bhd - Santubong Ventures Sdn Bhd - Greatville Pte Ltd - Lainnya (kepemilikan dibawah 5%) Saham biasa kelas C - Menteri Keuangan Republik Indonesia - 71,853,936 0.56 85,698,000 2.19 7,779,138,350 60.47 1,997,023,850 51.00 5,636,087,273 13,415,225,623 - - 1,410,943,106 218,263,688 36.03 5.57 3,982,024,793 615,993,242 3,982,024,793 615,993,242 5,012,710,185 38.97 137,426,109 3.51 629,710,532 5,642,420,717 Class B ordinary share CIMB Group Sdn Bhd Santubong Ventures 16.65 Sdn Bhd 2.58 Greatville Pte Ltd Others (ownership interest 23.59 below 5%) 187,335,676 0.78 Class C ordinary share Minister of Finance of the Republic of Indonesia 100.00 11,051,151,516 23,914,853,987 100.00 - - - 66,378,286 12,863,702,471 100.00 3,915,733,039 1.70 187,335,676 71,853,936 Class A ordinary share Public (ownership interest 0.30 below 5%) 56.10 Halaman – 5/4– Page 664 Annual Report CIMB NIAGA 2017
  665. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 1. 1. INFORMASI UMUM (lanjutan) c. Penawaran umum saham dan obligasi Bank CIMB Niaga serta Surat Hutang Jangka Menengah CIMB Niaga Auto Finance GENERAL INFORMATION (continued) c. Public offering of Bank CIMB Niaga’s shares and bonds and CIMB Niaga Auto Finance Medium Term Notes Penawaran umum saham Public offering of shares Penawaran Umum Perdana dan Terbatas yang telah dilakukan oleh Bank CIMB Niaga adalah: The details of Bank CIMB Niaga’s Initial and Limited Public Offerings are as follows: Jumlah saham yang ditawarkan (nilai penuh)/ Number of offered shares (full amount) Nilai nominal per saham (nilai penuh)/ Par value per share (full amount) Harga penawaran per saham (nilai penuh)/ Offering price per share (full amount) Pernyataan efektif/ Effective registration Tanggal pencatatan/ Registration date Penawaran Umum Perdana 2 Oktober/ October 1989 29 November/ November 1989 5,000,000 1,000 12,500 Initial Public Offering Penawaran Umum Terbatas I 26 September/ September 1992 23 Desember/ December 1992 5,252,500 1,000 5,000 Limited Public Offering I Penawaran Umum Terbatas II 29 Oktober/ October 1996 15 November/ November 1996 31,514,487 1,000 3,300 Limited Public Offering II Penawaran Umum Terbatas III 4 Agustus/ August 1999 9 Agustus/ August 1999 71,135,395,749 5 124 Limited Public Offering III Penawaran Umum Terbatas IV 25 Agustus/ August 2005 31 Agustus/August dan/and 9 September /September 2005 3,949,757,610 50 330 Limited Public Offering IV Penawaran Umum Terbatas V 3 November/ November 2010 30 Desember/ December 2010 1,196,743,183 50 1,250 Limited Public Offering V Penawaran umum obligasi subordinasi Public offering of subordinated bonds Bank CIMB Niaga Bank CIMB Niaga Instrumen/ Instrument Obligasi Subordinasi I Bank CIMB Niaga Tahun 2010 dengan Tingkat Suku Bunga Tetap/Bank CIMB Niaga Subordinated Bonds I Year 2010 with Fixed Interest Rate Obligasi Subordinasi II Bank CIMB Niaga Tahun 2010 dengan Tingkat Suku Bunga Tetap/Bank CIMB Niaga Subordinated Bonds II Year 2010 with Fixed Interest Rate Pernyataan efektif/ Effective registration 29 Juni/June 2010 Persetujuan/ Approval Badan Pengawas Pasar Modal dan Lembaga Keuangan, melalui suratnya No. S/5092/BL/2010/Capital Market and Financial Institution Supervisory Board in his letter No. S/5092/BL/2010 15 Desember/ Badan Pengawas Pasar December 2010 Modal dan Lembaga Keuangan, melalui suratnya No. S/11156/BL/2010/Capital Market and Financial Institution Supervisory Board in his letter No. S/11156/BL/2010 Jumlah pokok obligasi subordinasi/ The nominal value of the subordinated bonds Jangka waktu/ Tenor 1,380,000 7 tahun/years 8 Juli/July 2017 11.30% Ekspansi kredit dalam rangka pengembangan usaha dengan proporsi sebesar 93% untuk pembiayaan kredit kepemilikan kendaraan (termasuk pembiayaan kredit melalui perusahaan multifinance) dan sebesar 7% untuk pembiayaan kredit mikro/Expand credit in order to develop the business with proportion of 93% for credit financing vehicle ownership (include credit financing through multifinance) and the 7% is for microfinance. PT Bank Permata Tbk - Tidak mempunyai hubungan afiliasi dengan Bank/ PT Bank Permata Tbk – Does not have any affiliation with the Bank. 1,600,000 10 tahun/years 23 Desember/ December 2020 10.85% Ekspansi kredit dalam rangka pengembangan usaha/Expand the credit in order to develop the business. PT Bank Permata Tbk - Tidak mempunyai hubungan afiliasi dengan Bank/ PT Bank Permata Tbk – Does not have any affiliation with the Bank. Tanggal jatuh tempo/ Maturity date Tingkat bunga/ Interest rate Tujuan/Purpose Wali Amanat - Keterkaitan usaha/ Trustee - Business linkages Halaman – 5/5– Page Annual Report CIMB NIAGA 2017 665
  666. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 1. 1. INFORMASI UMUM (lanjutan) c. Penawaran umum saham dan obligasi Bank CIMB Niaga serta Surat Hutang Jangka Menengah CIMB Niaga Auto Finance (lanjutan) GENERAL INFORMATION (continued) c. Penawaran umum obligasi Instrumen/ Instrument Pernyataan efektif/ Effective registration Obligasi Berkelanjutan I Bank CIMB Niaga Tahap I Tahun 2012 dengan Tingkat Suku Bunga Tetap/The Continuous Bonds I of Bank CIMB Niaga Phase I Year 2012 with Fixed Interest Rate 22 Oktober/ October 2012 Obligasi Berkelanjutan I Bank CIMB Niaga Tahap II Tahun 2013 dengan Tingkat Suku Bunga Tetap/The Continuous Bonds I of Bank CIMB Niaga Phase II Year 2013 with Fixed Interest Rate 14 November/ November 2013 Obligasi Berkelanjutan II Bank CIMB Niaga Tahap I Tahun 2016 dengan Tingkat suku Bunga Tetap/The Continuous Bonds II of Bank CIMB Niaga Phase I Year 2016 with Fixed Interest Rate Obligasi Berkelanjutan II Bank CIMB Niaga Tahap II Tahun 2017/The Continuous Bonds II of Bank CIMB Niaga Phase II Year 2017 26 Oktober/ October 2016 15 Agustus/ August 2017 Public offering of bonds Persetujuan/ Approval Badan Pengawas Pasar Modal dan Lembaga Keuangan, melalui suratnya No. S12326/BL/2012/Capit al Market and Financial Institution Supervisory Board in his letter No. S12326/BL/2012 Otoritas Jasa Keuangan (OJK)/Financial Service Authority (FSA) Otoritas Jasa Keuangan (OJK)/Financial Service Authority (FSA) Otoritas Jasa Keuangan (OJK)/Financial Service Authority (FSA) Jumlah pokok obligasi subordinasi/ The nominal value of the subordinated bonds Jangka waktu/ Tenor 2,000,000 Seri/Series A : 600,000 Seri/Series A : 3 tahun/years Seri/Series B : 1,400,000 Seri/Series B : 5 tahun/years 1,450,000 Seri/Series A : 285,000 Seri/Series A : 2 tahun/years Seri/Series B : 315,000 Seri/Series B : 3 tahun/years Seri/Series C : 850,000 Seri/Series C : 5 Seri/Series C : 20 Seri/Series C tahun/years November/ : 9.75% November 2018 1,000,000 Seri/Series A : 432,000 Seri/Series A : 1 tahun/years Seri/Series B : 386,000 Seri/Series B : 3 tahun/years Seri/Series C : 182,000 Seri/Series C : 5 tahun/years 2,000,000 Seri/Series A : 802,000 Seri/Series A : 1 tahun/years Seri/Series B : 376,000 Seri/Series C : 822,000 Obligasi Berkelanjutan II Bank CIMB Niaga Tahap III Tahun 2017/ The Continuous Bonds II of Bank CIMB Niaga Phase III Year 2017 26 Oktober / October 2017 Public offering of Bank CIMB Niaga’s shares and bonds and CIMB Niaga Auto Finance Medium Term Notes (continued) Otoritas Jasa Keuangan (OJK)/Financial Service Authority (FSA) Tanggal jatuh tempo/ Maturity date Tujuan/Purpose Wali Amanat - Keterkaitan usaha/ Trustee - Business linkages Ekspansi kredit dalam Seri/Series A : 30 Seri/Series A : rangka pengembangan Oktober/ October usaha/ Expand credit in 7.35% 2015 order to develop the Seri/Series B : business. Seri/Series B :30 7.75% Oktober/ October 2017 PT Bank Permata Tbk - Tidak mempunyai hubungan afiliasi dengan Bank/ PT Bank Permata Tbk – Does not have any affiliation with the Bank. Ekspansi kredit dalam Seri/Series A : 20 Seri/Series A : rangka pengembangan November/ usaha/Expand the 8.75% November 2015 credit in order to develop the business. Seri/Series B : 20 Seri/Series B : November/ 9.15% November 2016 PT Bank Permata Tbk - Tidak mempunyai hubungan afiliasi dengan Bank/ PT Bank Permata Tbk – Does not have any affiliation with the Bank. Ekspansi kredit dalam Seri/Series A : 13 Seri/Series A : rangka pengembangan 7.25% November/ usaha/Expand the November 2017 credit in order to develop the business. Seri/Series B : Seri/Series B : 8.00% 3 November/ November 2019 Seri/Series C : 3 November/ November 2021 PT Bank Permata Tbk - Tidak mempunyai hubungan afiliasi dengan Bank/ PT Bank Permata Tbk – Does not have any affiliation with the Bank. Seri/Series C : 8.25% Ekspansi kredit dalam Seri/Series A : 3 Seri/Series A : rangka pengembangan September/ usaha/Expand the 7.25% credit in order to September 2017 develop the business. Seri/Series B : 3 Seri/Series B : Seri/Series B : 7.70% tahun/years 23 Agustus/ August 2020 PT Bank Permata Tbk - Tidak mempunyai hubungan afiliasi dengan Bank/ PT Bank Permata Tbk – Does not have any affiliation with the Bank. Seri/Series C : Seri/Series C Seri/Series C : 5 tahun/years 23 Agustus/ August : 8.15% 2022 2,000,000 Seri/Series A: 500,000 Seri/Series A: 1 Tahun/year Seri/Series A: 12 November/ November 2018 Seri/Series B: 657,000 Seri/Series B: 3 Tahun/years Seri/Series B: 2 November/ November 2020 Seri/Series C: 5 Tahun/years Seri/Series C: 2 November/ November 2022 Seri/Series C: 843,000 Tingkat bunga/ Interest rate Seri/ Series Ekspansi kredit dalam A : 6.20% rangka pengembangan usaha/ Expand the credit in order to Seri/ Series develop the business. B : 7.50% PT Bank Permata Tbk - Tidak mempunyai hubungan afiliasi dengan Bank/ PT Bank Permata Tbk – Does not have Any affiliation with the Bank. Seri/ Series C : 7.75% Halaman – 5/6– Page 666 Annual Report CIMB NIAGA 2017
  667. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 1. 1. INFORMASI UMUM (lanjutan) c. Penawaran umum saham dan obligasi Bank CIMB Niaga serta Surat Hutang Jangka Menengah CIMB Niaga Auto Finance (lanjutan) GENERAL INFORMATION (continued) c. Public offering of Bank CIMB Niaga’s shares and bonds and CIMB Niaga Auto Finance Medium Term Notes (continued) Penawaran umum obligasi (lanjutan) Public offering of bonds (continued) Obligasi di atas mensyaratkan Bank CIMB Niaga antara lain untuk tidak melakukan pengeluaran obligasi atau instrumen surat hutang jangka menengah dan jangka panjang lainnya yang sejenis dengan obligasi yang mempunyai kedudukan lebih tinggi dan pembayarannya didahulukan dari obligasi subordinasi, sebagaimana tertulis dalam prospektus. Bank CIMB Niaga telah memenuhi pembatasanpembatasan yang diwajibkan dalam perjanjian obligasi. The above bonds requires Bank CIMB Niaga not to issue bonds or medium term notes and long term notes equivalent with the above bonds with higher priority of payment than the subordinated bonds, as written in prospectus. Bank CIMB Niaga has fulfilled the debt covenants requirement outlined in bond agreements. Sehubungan dengan penerbitan obligasi tersebut, PT Bank CIMB Niaga memperoleh peringkat “idAAA” dari PT Pefindo. In connection with the bond offering, PT Bank CIMB Niaga obtained a rating of “idAAA” from PT Pefindo. Entitas Anak: PT CIMB Niaga Auto Finance (CNAF) Subsidiary: PT CIMB Niaga Auto Finance (CNAF) Pernyataan efektif/ Effective registration Persetujuan/ Approval Surat Hutang Jangka Menengah (MTN) I CIMB Niaga Auto Finance Tahun 2013 dengan Tingkat Suku Bunga Tetap/CIMB Niaga Auto Finance Medium Term Notes (MTN) I Year 2013 with Fixed Interest Rate 15 Februari/ February 2013 Tidak dibutuhkan/Not required Surat Hutang Jangka Menengah (MTN) II CIMB Niaga Auto Finance Tahun 2013 dengan Tingkat Suku Bunga Tetap/CIMB Niaga Auto Finance Medium Term Notes (MTN) II Year 2013 with Fixed Interest Rate 16 April/April 2013 Tidak dibutuhkan/Not required Instrumen/ Instrument Jumlah pokok obligasi subordinasi/ The nominal value of the subordinated bonds Tingkat bunga/ Interest rate Wali Amanat - Keterkaitan usaha/ Trustee - Business linkages Jangka waktu/ Tenor Tanggal jatuh tempo/ Maturity date 200,000 3 tahun/ years 15 Februari/ February 2016 8.50% Pembiayaan kendaraan roda dua dan roda empat, baik dalam kondisi baru atau bekas, dan pembiayaan sewa guna/Financing two wheelers and four wheelers, either new or used, and for finance lease business. PT Bank Mega Tbk - Tidak mempunyai hubungan afiliasi dengan Bank/ PT Bank Mega Tbk – Does not have any affiliation with the Bank. 400,000 3 tahun/ years 16 April/ April 2016 8.20% Pembiayaan kendaraan roda dua dan roda empat, baik dalam kondisi baru atau bekas, dan pembiayaan sewa guna/Financing two wheelers and four wheelers, either new or used, and for finance lease business. PT Bank Mega Tbk - Tidak mempunyai hubungan afiliasi dengan Bank/ PT Bank Mega Tbk – Does not have any affiliation with the Bank. Sehubungan dengan penerbitan Surat Hutang Jangka Menengah (MTN) tersebut, CNAF memperoleh peringkat “AA+(idn)” dari PT Fitch Indonesia. Tujuan/ Purpose In connection with the Medium Term Notes (MTN), CNAF obtained a rating of “AA+(idn)” from PT Fitch Indonesia. Halaman – 5/7– Page Annual Report CIMB NIAGA 2017 667
  668. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 1. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) INFORMASI UMUM (lanjutan) c. d. 1. Penawaran umum saham dan obligasi Bank CIMB Niaga serta Surat Hutang Jangka Menengah CIMB Niaga Auto Finance (lanjutan) GENERAL INFORMATION (continued) c. Public offering of Bank CIMB Niaga’s shares and bonds and CIMB Niaga Auto Finance Medium Term Notes (continued) Penawaran umum obligasi (lanjutan) Public offering of bonds (continued) MTN di atas (MTN I dan II) mensyaratkan CNAF antara lain untuk mempertahankan nilai jaminan sekurang-kurangnya 50% dari nilai pokok MTN dan tidak memberikan pinjaman kepada pihak afiliasi dengan jumlah total melebihi 25% dari ekuitas CNAF. CNAF telah memenuhi pembatasan-pembatasan yang diwajibkan dalam perjanjian obligasi. The MTN above (MTN I and II) required the company to amongst others, maintain the ratio of collateral of at least 50% of the MTN nominal amount and not giving loans to affiliated companies with total amount exceeding 25% of the company’s equity. CNAF has fulfilled the debt covenants requirement outlined in bond agreements. Entitas Anak d. Bank CIMB Niaga mempunyai kepemilikan langsung pada Entitas anak berikut ini: Subsidiary Bank CIMB Niaga has direct ownership in the following Subsidiary: Tahun beroperasi komersial/ Year commercial operations Nama perusahaan/ Kegiatan usaha/ Kedudukan/ Company's name Business activity Domicile 2017 2016 2015 commenced Pembiayaan/Financing Jakarta 99.93% 99.93% 99.94% 1993 Pembiayaan/Financing Jakarta - *) - *) 99.90% 1995 Entitas Anak/Subsidiary • PT CIMB Niaga Auto Finance • PT Kencana Internusa Artha Finance (KIT AF) *) Persentase kepemilikan/ Percentage of ownership Jumlah aset/Total assets 2017 2016 3,961,691 6,690,482 - *) 2015 - *) 1,082,839 Lihat catatan di bawah mengenai penggabungan usaha CNAF dan KITAF See notes below related to CNAF and KITAF merger *) Berikut adalah perubahan kepemilikan langsung Bank CIMB Niaga pada Entitas anak: Below is the changes of Bank CIMB Niaga’s direct ownership in the subsidiary: Tahun/ Year Peristiwa/Event 1992 Kepemilikan awal Bank CIMB Niaga atas CNAF/the initial ownership of Bank CIMB Niaga in CNAF. 20122014 Peningkatan penyertaan modal pada CNAF/Increased investment on CNAF. Jumlah saham pada tanggal laporan posisi keuangan/ Total shares as at statements of financial position date Persentase/ Percentage Persetujuan/Approval 90,000 99.94% - 11,992,800 99.94% Disetujui OJK pada setiap penambahan modal/Approved by FSA at each capital increase. Halaman – 5/8– Page 668 7,479,761 Annual Report CIMB NIAGA 2017
  669. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 1. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) INFORMASI UMUM (lanjutan) d. 1. Entitas Anak (lanjutan) GENERAL INFORMATION (continued) d. Berikut adalah perubahan kepemilikan langsung Bank CIMB Niaga pada Entitas anak: (lanjutan) Tahun/ Year 2016 Peristiwa/Event Penggabungan Usaha PT CIMB Niaga Auto Finance (CNAF) dengan PT Kencana Internusa Artha Finance (KITAF)/ Merger between PT CIMB Niaga Auto Finance (CNAF) and PT Kencana Internusa Artha Finance (KITAF) Subsidiary (continued) Below is the changes of Bank CIMB Niaga’s direct ownership in the subsidiary: (continued) Jumlah saham pada tanggal laporan posisi keuangan/ Total shares as at statements of financial position date Persentase/ Percentage Persetujuan/Approval 13,990,779 99.93% - Penggabungan Usaha PT CIMB Niaga Auto Finance (CNAF) dengan PT Kencana Internusa Artha Finance (KITAF) Merger between PT CIMB Niaga Auto Finance (CNAF) and PT Kencana Internusa Artha Finance (KITAF) Pada tanggal 1 Januari 2016, CNAF telah efektif melakukan penggabungan usaha (merger) dengan KITAF, dimana CNAF merupakan perusahaan yang menerima penggabungan (surviving entity). Merger dilakukan untuk meningkatkan sinergi grup Bank CIMB Niaga. As at 1 January 2016, CNAF have effectively merged with KITAF, where CNAF is the surviving entity. Merger was performed to improve the synergy of Bank CIMB Niaga group. Penggabungan usaha tersebut telah mendapatkan persetujuan dari Otoritas Jasa Keuangan (OJK) melalui surat No.S-101/D.05/2015 tanggal 19 November 2015 dan disetujui oleh pemegang saham melalui Akta Pernyataan Keputusan Rapat Umum Pemegang Saham Luar Biasa dari notaris Ashoya Ratam, SH, MKn. No. 50 tanggal 23 Desember 2015. Pemberitahuan penggabungan usaha tersebut telah diterima dan dicatat oleh Menteri Hukum dan Hak Asasi Manusia Republik Indonesia melalui surat No.AHU-AH.01.10-0107406 tanggal 23 Desember 2015. Penggabungan usaha efektif mulai tanggal 1 Januari 2016. The merger has received approval from Financial Services Authority (FSA) through its letter No.S-101/D.05/2015 dated 19 November 2015 and approved by shareholders through Statements Deed of Decision of Extraordinary General Shareholders Meeting from notary Ashoya Ratam, SH, MKn. No. 50 dated 23 December 2015. The merger information has been received and recorded by the Minister of Law and Human Rights of the Republic of Indonesia through its letter No. AHU-AH.01.10-0107406 dated 23 December 2015. The merger is effective on 1 January 2016. Komposisi jumlah kepemilikan saham Perusahaan pada tanggal penggabungan usaha adalah 13.990.779 dengan persentase kepemilikan 99,93%. The composition of number of shares of the Company on merger date is 13,990,779 with percentage of ownership 99.93%. Halaman – 5/9– Page Annual Report CIMB NIAGA 2017 669
  670. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 1. 1. INFORMASI UMUM (lanjutan) e. Dewan Komisaris, Direksi, Komite Audit, Komite Pemantau Risiko, Komite Nominasi dan Remunerasi, Dewan Pengawas Syariah, Satuan Kerja Audit Internal, dan Sekretaris Perusahaan GENERAL INFORMATION (continued) e. Pada tanggal 31 Desember 2017, 2016, dan 2015, susunan Dewan Komisaris dan Direksi Bank CIMB Niaga adalah: Board of Commissioners, Board of Directors, Audit Committee, Risk Monitoring Committee, Nomination and Remuneration Committee, Sharia Supervisory Board, Internal Audit Unit, and Corporate Secretary As at 31 December 2017, 2016, and 2015, the members of Bank CIMB Niaga’s Board of Commissioners and Directors were as follows: 2017 Dewan Komisaris: Presiden Komisaris Wakil Presiden Komisaris Komisaris Independen Komisaris Independen Komisaris Independen Komisaris Independen Komisaris Komisaris Komisaris Direksi: Presiden Direktur Direktur Strategi dan Keuangan Direktur Operasional dan Teknologi Informasi Direktur Kredit Direktur Manajemen Risiko Direktur Tresuri dan Pasar Modal Direktur Perbankan Consumer Direktur Unit Usaha Syariah Direktur Sumber Daya Manusia Direktur Kepatuhan, Corporate Secretary, dan Hukum Direktur Perbankan Bisnis Bpk/Mr. Dato’ Sri Nazir Razak Bpk/Mr. Glenn Muhammad Surya Yusuf Bpk/Mr. Zulkifli M. Ali Bpk/Mr. Primoehadi Notowidigdo Ibu/Mrs. Armida Salsiah Alisjahbana Bpk/Mr. Jeffrey Kairupan Bpk/Mr. David Richard Thomas Bpk/Mr. Ahmad Zulqarnain Onn a) Bpk/Mr. Tengku Zafrul bin Tengku Abdul Aziz b) Board of Commissioners: President Commissioner Vice President Commissioner Independent Commissioner Independent Commissioner Independent Commissioner Independent Commissioner Commissioner Commissioner Commissioner Bpk/Mr. John Simon Ibu/Mrs. Lani Darmawan Bpk/Mr. Pandji Pratama Djajanegara Board of Directors: President Director Strategy and Finance Director Operation and Information Technology Director Credit Director Risk Management Director Treasury and Capital Market Director Consumer Banking Director Sharia Business Director Ibu/Mrs. Hedy Maria Helena Lapian Human Resources Director Bpk/Mr. Tigor M. Siahaan Bpk/Mr. Wan Razly Abdullah Ibu/Mrs. Rita Mas’Oen Ibu/Mrs. Megawati Sutanto Ibu/Mrs. Vera Handajani Ibu/Mrs. Fransiska Oei Bpk/Mr. Rahardja Alimhamzahc) a) Mengundurkan diri efekif sejak 24 Agustus 2017 Compliance, Corporate Secretary, and Legal Director Business Banking Director Resigned effective since 24 August 2017 a) b) Efektif menjabat sebagai Komisaris setelah mendapat hasil penilaian kemampuan Will be effective after obtaining the result of fit and proper test b) dan kepatuhan c) Efektif pada tanggal 24 Agustus 2017 Effective on 24 August 2017 c) Halaman – 5/10– Page 670 Annual Report CIMB NIAGA 2017
  671. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 1. 1. INFORMASI UMUM (lanjutan) e. Dewan Komisaris, Direksi, Komite Audit, Komite Pemantau Risiko, Komite Nominasi dan Remunerasi, Dewan Pengawas Syariah, Satuan Kerja Audit Internal, dan Sekretaris Perusahaan (lanjutan) GENERAL INFORMATION (continued) e. Pada tanggal 31 Desember 2017, 2016, dan 2015, susunan Dewan Komisaris dan Direksi Bank CIMB Niaga adalah (lanjutan): Board of Commissioners, Board of Directors, Audit Committee, Risk Monitoring Committee, Nomination and Remuneration Committee, Sharia Supervisory Board, Internal Audit Unit, and Corporate Secretary (continued) As at 31 December 2017, 2016, and 2015, the members of Bank CIMB Niaga’s Board of Commissioners and Directors were as follows (continued): 2016 Dewan Komisaris: Presiden Komisaris Wakil Presiden Komisaris Komisaris Independen Komisaris Independen Komisaris Independen Komisaris Independen Komisaris Komisaris Direksi: Presiden Direktur Direktur Keuangan dan Perencanaan Direktur Operasional dan Teknologi Informasi Direktur Kredit Direktur Manajemen Risiko Direktur Tresuri dan Pasar Modal Direktur Perbankan Consumer Direktur Unit Usaha Syariah Direktur Sumber Daya Manusia Direktur Kepatuhan, Corporate Secretary, dan Hukum d) e) f) g) h) Bpk/Mr. Dato’ Sri Nazir Razak Bpk/Mr. Glenn Muhammad Surya Yusuf Bpk/Mr. Zulkifli M. Ali Bpk/Mr. Primoehadi Notowidigdo Ibu/Mrs. Armida Salsiah Alisjahbana d) Bpk/Mr. Jeffrey Kairupan d) Bpk/Mr. David Richard Thomas Bpk/Mr. Ahmad Zulqarnain Onn Board of Commissioners: President Commissioner Vice President Commissioner Independent Commissioner Independent Commissioner Independent Commissioner Independent Commissioner Commissioner Commissioner Bpk/Mr. John Simon Ibu/Mrs. Lani Darmawan e) Bpk/Mr. Pandji Pratama Djajanegara f) Board of Directors: President Director Strategy and Finance Director Operation and Information Technology Director Credit Director Risk Management Director Treasury and Capital Market Director Consumer Banking Director Sharia Business Director Ibu/Mrs. Hedy Maria Helena Lapian g) Human Resources Director Bpk/Mr. Tigor M. Siahaan Bpk/Mr. Wan Razly Abdullah Ibu/Mrs. Rita Mas’Oen Ibu/Mrs. Megawati Sutanto Ibu/Mrs. Vera Handajani Ibu/Mrs. Fransiska Oei h) Efektif 14 September 2016 Efektif pada tanggal 3 Mei 2016 Efektif 4 Oktober 2016 Efektif pada tanggal 15 Agustus 2016 Efektif pada tanggal 27 Juli 2016 Compliance, Corporate Secretary, and Legal Director Effective on 14 September 2016 d) Effective on 3 May 2016 e) Effective on 4 October 2016 f) Effective on 15 August 2016 g) Effective on 27 July 2016 h) Halaman – 5/11– Page Annual Report CIMB NIAGA 2017 671
  672. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 1. 1. INFORMASI UMUM (lanjutan) e. Dewan Komisaris, Direksi, Komite Audit, Komite Pemantau Risiko, Komite Nominasi dan Remunerasi, Dewan Pengawas Syariah, Satuan Kerja Audit Internal, dan Sekretaris Perusahaan (lanjutan) GENERAL INFORMATION (continued) e. Pada tanggal 31 Desember 2017, 2016, dan 2015, susunan Dewan Komisaris dan Direksi Bank CIMB Niaga adalah (lanjutan): 2015 Dewan Komisaris: Presiden Komisaris Wakil Presiden Komisaris Komisaris Independen Komisaris Independen Komisaris Independen Komisaris Independen Komisaris Komisaris Direksi: Presiden Direktur Wakil Presiden Direktur merangkap Direktur Small Medium Micro Enterprise Wakil Presiden Direktur merangkap Direktur Perbankan Korporasi Direktur Kepatuhan, Corporate Affairs, dan Hukum Direktur Keuangan dan Perencanaan Direktur Operasional dan Teknologi Informasi Direktur Perbankan Consumer Direktur Kredit Direktur Sumber Daya Manusia Direktur Manajemen Risiko Direktur Tresuri dan Pasar Modal Board of Commissioners, Board of Directors, Audit Committee, Risk Monitoring Committee, Nomination and Remuneration Committee, Sharia Supervisory Board, Internal Audit Unit, and Corporate Secretary (continued) As at 31 December 2017, 2016, and 2015, the members of Bank CIMB Niaga’s Board of Commissioners and Directors were as follows (continued): Bpk/Mr. Dato’ Sri Nazir Razak Bpk/Mr. Glenn Muhammad Surya Yusuf Ibu/Mrs. Sri Hartina Urip Simeon i) Bpk/Mr. Roy Edu Tirtadji i) Bpk/Mr. Zulkifli M. Ali Bpk/Mr. Primoehadi Notowidigdo Bpk/Mr. Ahmad Zulqarnain Onn Bpk/Mr. David Richard Thomas Bpk/Mr. Tigor M. Siahaan j) Bpk/Mr. Daniel James Rompas k) Bpk/Mr. Lo Nyen Khing l) Ibu/Mrs.Lydia Wulan Tumbelaka i) Bpk/Mr. Wan Razly Abdullah Ibu/Mrs. Rita Mas’Oen Bpk/Mr. Samir Gupta i) Ibu/Mrs. Megawati Sutanto Bpk/Mr. Harjanto Tanuwidjaja m) Ibu/Mrs. Vera Handajani Bpk/Mr. John Simon i) Masa jabatannya berakhir pada penutupan RUPS Board of Commissioners: President Commissioner Vice President Commissioner Independent Commissioner Independent Commissioner Independent Commissioner Independent Commissioner Commissioner Commissioner Board of Directors: President Director Vice President Director also as Small Medium Micro Enterprise Director Vice President Director also as Corporate Banking Director Compliance, Corporate Affairs, and Legal Director Strategy and Finance Director Operation and Information Technology Director Consumer Banking Director Credit Director Human Resources Director Risk Management Director Treasury and Capital Market Director Terms of the office ended at the closing of Annual i) Tahunan tanggal 15 April 2016 Shareholders General Meeting on 15 April 2016 j) Efektif pada tanggal 1 Juni 2015 Effective on 1 June 2015 j) k) Mengundurkan diri efektif sejak tanggal 15 April 2016 Resigned effective since 15 April 2016 k) l) Mengundurkan diri efektif sejak tanggal 31 Juli 2015 Resigned effective since 31 July 2015 l) m) Mengundurkan diri efektif sejak tanggal 1 Desember Resigned effective since 1 December 2015 m) 2015 Halaman – 5/12– Page 672 Annual Report CIMB NIAGA 2017
  673. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 1. 1. INFORMASI UMUM (lanjutan) e. Dewan Komisaris, Direksi, Komite Audit, Komite Pemantau Risiko, Komite Nominasi dan Remunerasi, Dewan Pengawas Syariah, Satuan Kerja Audit Internal, dan Sekretaris Perusahaan (lanjutan) GENERAL INFORMATION (continued) e. Pada tanggal 31 Desember 2017, 2016, dan 2015, susunan Komite Audit Bank CIMB Niaga adalah: Board of Commissioners, Board of Directors, Audit Committee, Risk Monitoring Committee, Nomination and Remuneration Committee, Sharia Supervisory Board, Internal Audit Unit, and Corporate Secretary (continued) As at 31 December 2017, 2016, and 2015, the members of Bank CIMB Niaga’s Audit Committee were as follows: Ketua, merangkap anggota Anggota Anggota Anggota 2017 dan/and 2016 Bpk/Mr. Zulkifli M. Ali * n) Bpk/Mr. Jeffery Kairupan * n) Ibu/Mrs. Mawar I.R. Napitupulu Bpk/Mr. Yap Tjay Soen n) Ketua, merangkap anggota Anggota Anggota Anggota Anggota Anggota Bpk/Mr. Roy Edu Tirtadji o) Ibu/Mrs. Sri Hartina Urip Simeon o) Ibu/Mrs. Mawar I.R. Napitupulu o) Bpk/Mr. Shariq Mukhtar o) Bpk/Mr. Darminto o) Bpk/Mr. Sumantri Slamet o) 2015 * Komisaris Independen Chairman, concurrently as member Member Member Member Chairman, concurrently as member Member Member Member Member Member Independent Commissioner * n) Efektif pada tanggal 15 April 2016 Effective on 15 April 2016 n) o) Mengundurkan diri efektif sejak tanggal 15 April 2016 Resigned effective since 15 April 2016 o) Pembentukan Komite Audit Bank CIMB Niaga sesuai dengan Peraturan Otoritas Jasa Keuangan (POJK) No.55/POJK.03/2016 tanggal 7 Desember 2016 tentang Penerapan Tata Kelola Bagi Bank Umum dan POJK No.55/POJK.04/2015 tanggal 29 Desember 2015 tentang Pembentukan dan Pedoman Pelaksanaan Kerja Komite Audit. Establishment of Bank CIMB Niaga’s Audit Committee is in compliance with the requirements of FSA Regulation No.55/POJK.03/2016 dated 7 December 2016 regarding Governance Implementationin Commercial Bank and FSA Regulation No.055/POJK.04/2015 dated 29 December 2015 regarding Establisment and Guideline for Implementation Duty of Audit Committee. Pada tanggal 31 Desember 2017, 2016, dan 2015 susunan Komite Pemantau Risiko Bank CIMB Niaga adalah: As at 31 December 2017, 2016, and 2015 the members of Bank CIMB Niaga’s Risk Monitoring Committee were as follows: Ketua, merangkap anggota Anggota Anggota Anggota Anggota Anggota 2017 Bpk/Mr. Zulkifli M. Ali* Bpk/Mr. Glenn Muhammad Surya Yusuf Bpk/Mr. David Richard Thomas Bpk/Mr. Firmanzah Ibu/Mrs. Sri Indrastuti S. Hadiputranto Bpk/Mr. Yap Tjay Soen p) Chairman, concurrently as member Member Member Member Member Member Ketua, merangkap anggota Anggota Anggota Anggota Anggota 2016 Bpk/Mr. Zulkifli M. Ali* Bpk/Mr. Glenn Muhammad Surya Yusuf Bpk/Mr. David Richard Thomas Bpk/Mr. Firmanzah q) Ibu/Mrs. Sri Indrastuti S. Hadiputranto r) Chairman, concurrently as member Member Member Member Member Halaman – 5/13– Page Annual Report CIMB NIAGA 2017 673
  674. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 1. 1. INFORMASI UMUM (lanjutan) e. Dewan Komisaris, Direksi, Komite Audit, Komite Pemantau Risiko, Komite Nominasi dan Remunerasi, Dewan Pengawas Syariah, Satuan Kerja Audit Internal, dan Sekretaris Perusahaan (lanjutan) GENERAL INFORMATION (continued) e. Pada tanggal 31 Desember 2017, 2016, dan 2015 susunan Komite Pemantau Risiko Bank CIMB Niaga adalah (lanjutan): Ketua, merangkap anggota Anggota Anggota Anggota Anggota Anggota * Board of Commissioners, Board of Directors, Audit Committee, Risk Monitoring Committee, Nomination and Remuneration Committee, Sharia Supervisory Board, Internal Audit Unit, and Corporate Secretary (continued) As at 31 December 2017, 2016, and 2015 the members of Bank CIMB Niaga’s Risk Monitoring Committee were as follows (continued): 2015 Bpk/Mr. Zulkifli M. Ali* Bpk/Mr. Glenn Muhammad Surya Yusuf Bpk/Mr. David Richard Thomas Bpk/Mr. Ananda Barata s) Bpk/Mr. Binhadi s) Bpk/Mr. Shariq Mukhtar s) Komisaris Independen Chairman, concurrently as member Member Member Member Member Member Independent Commissioner p) Efektif sejak 24 Agustus 2017 q) Efektif pada tanggal 15 April 2016 Effective on 15 April 2016 q) r) Efektif pada tanggal 1 Juli 2016 Effective on 1 July 2016 r) s) Mengundurkan diri efektif sejak 15 April 2016 Resigned effective since 15 April 2016 s) Pada tanggal 31 Desember 2017, 2016, dan 2015 susunan Komite Nominasi dan Remunerasi Bank CIMB Niaga adalah: As at 31 December 2017, 2016, and 2015 the members of Bank CIMB Niaga’s Nomination and Remuneration were as follows: Ketua, merangkap anggota Anggota Anggota Anggota 2017 Bpk/Mr. Primoehadi Notowidigdo* Ibu/Mrs. Armida Salsiah Alisjahbana* Bpk/Mr. Ahmad Zulqarnain Onn t) Bpk/Mr. Joni Raini Chairman, concurrently as member Member Member Member Ketua, merangkap anggota Anggota Anggota Anggota 2016 Bpk/Mr. Primoehadi Notowidigdo* Ibu/Mrs. Armida Salsiah Alisjahbana * u) Bpk/Mr. Ahmad Zulqarnain Onn Bpk/Mr. Joni Raini Chairman, concurrently as member Member Member Member Ketua, merangkap anggota Anggota Anggota Anggota Anggota Anggota 2015 Bpk/Mr. Primoehadi Notowidigdo* Bpk/Mr. Zulkifli M. Ali * v) Bpk/Mr. Ahmad Zulqarnain Onn Bpk/Mr. Ananda Barata v) Bpk/Mr. Sumantri Slamet v) Bpk/Mr. Joni Raini * Komisaris Independen Chairman, concurrently as member Member Member Member Member Member Independent Commissioner * t) Mengundurkan diri efektif sejak 24 Agustus 2017 Resigned effective since 24 August 2017 t) u) Efektif pada tanggal 15 April 2016 Effective on 15 April 2016 u) v) Mengundurkan diri efektif sejak tanggal 15 April 2016 Resigned effetive since 15 April 2016 v) Halaman – 5/14– Page 674 * Effective since 24 August 2017 p) Annual Report CIMB NIAGA 2017
  675. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 1. 1. INFORMASI UMUM (lanjutan) e. Dewan Komisaris, Direksi, Komite Audit, Komite Pemantau Risiko, Komite Nominasi dan Remunerasi, Dewan Pengawas Syariah, Satuan Kerja Audit Internal, dan Sekretaris Perusahaan (lanjutan) GENERAL INFORMATION (continued) e. Pada tanggal 31 Desember 2017, 2016, dan 2015 susunan Dewan Pengawas Syariah Bank CIMB Niaga adalah: Ketua Anggota Anggota 2. Board of Commissioners, Board of Directors, Audit Committee, Risk Monitoring Committee, Nomination and Remuneration Committee, Sharia Supervisory Board, Internal Audit Unit, and Corporate Secretary (continued) As at 31 December 2017, 2016, and 2015 the members of Bank CIMB Niaga’s Sharia Supervisory Board were as follows: 2017, 2016, dan/and 2015 Bpk/Mr. Prof. Dr. M. Quraish Shihab, MA Bpk/Mr. Prof. Dr. Fathurrahman Djamil, MA Bpk/Mr. Dr. Yulizar Djamaluddin Sanrego Nz, M.Ec Chairman Member Member Pada tanggal 31 Desember 2017 Kepala Satuan Kerja Audit Internal Bank CIMB Niaga adalah Bpk Antonius Pramana Gunadi. Pada tanggal 31 Desember 2016 dan 2015 Kepala Satuan Kerja Audit Internal Bank CIMB Niaga adalah Ibu Restiana Linggadjaya. As at 31 December 2017, the Chief of Bank CIMB Niaga’s Internal Audit Unit was Mr. Antonius Pramana Gunadi. As at 31 December 2016 and 2015 the Chief of Bank CIMB Niaga’s Internal Audit Unit was Mrs. Restiana Linggadjaya. Pada tanggal 31 Desember 2017 dan 2016, Sekretaris Perusahaan CIMB Niaga adalah Ibu Fransiska Oei. Pada tanggal 31 Desember 2015 Sekretaris Perusahaan CIMB Niaga adalah Bpk Rudy Hutagalung. As at 31 December 2017 and 2016, the Bank CIMB Niaga’s Corporate Secretary was Mrs. Fransiska Oei. As at 31 December 2015 the Bank CIMB Niaga’s Corporate Secretary was Mr, Rudy Hutagalung. Pada tanggal 31 Desember 2017, karyawan Bank CIMB Niaga berjumlah 12.782 (2016: 13.185; 2015: 13.577 ) (tidak audit). As at 31 December 2017, the number of employees of Bank CIMB Niaga was 12,782 (2016: 13,185; 2015: 13,577) (unaudited). KEBIJAKAN AKUNTANSI 2. ACCOUNTING POLICIES Laporan keuangan konsolidasian PT Bank CIMB Niaga Tbk dan Entitas Anak diselesaikan dan diotorisasi untuk terbit oleh Direksi pada tanggal 26 Februari 2018. The consolidated financial statements of PT Bank CIMB Niaga Tbk and Subsidiary were completed and authorised for issuance by the Board of Directors on 26 February 2018. Kebijakan akuntansi utama yang diterapkan dalam penyusunan laporan keuangan konsolidasian adalah seperti dijabarkan di bawah ini: The principal accounting policies adopted in preparing the consolidated financial statements are set out below: a. a. Dasar penyusunan laporan keuangan konsolidasian Laporan keuangan konsolidasian pada tanggal 31 Desember 2017, 2016, dan 2015 disusun sesuai dengan Standar Akuntansi Keuangan di Indonesia yang dikeluarkan oleh Ikatan Akuntan Indonesia. Basis of preparation of the consolidated financial statements The consolidated financial statements as at 31 December 2017, 2016, and 2015 were prepared in accordance with Indonesian Financial Accounting Standards issued by the Indonesian Institute of Accountants. Halaman – 5/15– Page Annual Report CIMB NIAGA 2017 675
  676. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2. 2. KEBIJAKAN AKUNTANSI (lanjutan) a. Dasar penyusunan laporan keuangan konsolidasian (lanjutan) ACCOUNTING POLICIES (continued) b. Basis of preparation of the consolidated financial statements (continued) Laporan keuangan konsolidasian juga disusun sesuai dengan Keputusan Ketua Bapepam-LK (efektif 1 Januari 2013, OJK telah mengambil alih fungsi dari Bapepam-LK) No. KEP-347/BL/2012 tanggal 25 Juni 2012 yang merupakan perubahan terakhir atas Keputusan Ketua Bapepam-LK No. KEP 554/BL/2010 tanggal 30 Desember 2010 dan Keputusan Ketua Bapepam-LK No. KEP-06/PM/2000 tanggal 13 Maret 2000 yaitu Peraturan No. VIII.G.7 tentang “Pedoman Penyajian Laporan Keuangan”. The consolidated financial statements have been also prepared in accordance with the Decree of BapepamLK (effective 1 January 2013, FSA takes over the function of Bapepam-LK) No. KEP-347/BL/2012 dated 25 June 2012 which is the latest change of the Decree of the Bapepam-LK No. KEP 554/BL/2010 dated 30 December 2010 and the Decree of the Bapepam-LK No. KEP-06/PM/2000 dated 13 March 2000 on Regulation No. VIII.G.7 regarding “Financial Statements Presentation Guidelines”. Laporan keuangan konsolidasian disusun berdasarkan harga perolehan kecuali untuk aset keuangan yang diklasifikasikan dalam kelompok tersedia untuk dijual, aset dan liabilitas keuangan yang diukur pada nilai wajar melalui laba rugi, instrumen derivatif yang diukur berdasarkan nilai wajar, dan aset tetap berupa tanah dan bangunan yang diukur berdasarkan nilai wajar sesuai model revaluasi. Nilai tercatat dari aset dan liabilitas yang merupakan item yang dilindung nilai dalam lindung atas nilai wajar, yang seharusnya disajikan sebesar harga perolehan disesuaikan dengan perubahan nilai wajar yang yang dapat diatribusikan dengan risiko yang dilindungnilaikan. Laporan keuangan konsolidasian disusun berdasarkan akuntansi berbasis akrual, kecuali laporan arus kas konsolidasian. The consolidated financial statements have been prepared under the historical cost convention, except for financial assets classified as available-for-sale, financial assets and liabilities held at fair value through profit and loss, all derivative contracts which have been measured at fair value, and fixed assets of lands and buildings which have been measured at fair value in accordance with revaluation model. The carrying values of recognised assets and liabilities that are hedged items in fair value hedges, and otherwise carried at cost, are adjusted to record changes in fair value attributable to the risks that are being hedged. The consolidated financial statements are prepared under the accrual basis of accounting, except for the consolidated statement of cash flows. Laporan arus kas konsolidasian disusun menggunakan metode langsung dan arus kas dikelompokkan atas dasar kegiatan operasi, investasi, dan pendanaan. Untuk tujuan laporan arus kas konsolidasian, kas dan setara kas mencakup kas, giro pada BI, giro pada bank lain, dan investasi jangka pendek lancar lainnya dengan jangka waktu 3 (tiga) bulan atau kurang sejak tanggal perolehan. The consolidated statement of cash flows is prepared based on the direct method by classifying cash flows on the basis of operating, investing, and financing activities. For the purpose of the consolidated statements of cash flows, cash and cash equivalents include cash, current accounts with BI, current accounts with other banks, and other short term highly liquid investments with original maturities of 3 (three) months or less from the acquisition date. Seluruh angka dalam laporan keuangan konsolidasian ini, kecuali dinyatakan secara khusus, dibulatkan menjadi dan disajikan dalam jutaan Rupiah yang terdekat. Figures in the consolidated financial statements are rounded to and stated in millions of Rupiah, unless otherwise stated. Halaman – 5/16– Page 676 Annual Report CIMB NIAGA 2017
  677. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2. 2. KEBIJAKAN AKUNTANSI (lanjutan) a. Dasar penyusunan laporan keuangan konsolidasian (lanjutan) ACCOUNTING POLICIES (continued) a. Basis of preparation of the consolidated financial statements (continued) Penyusunan laporan keuangan sesuai dengan Standar Akuntansi Keuangan di Indonesia mengharuskan penggunaan estimasi dan asumsi. Hal tersebut juga mengharuskan manajemen untuk membuat pertimbangan dalam proses penerapan kebijakan akuntansi Bank CIMB Niaga dan Entitas Anak. Area yang kompleks atau memerlukan tingkat pertimbangan yang lebih tinggi atau area dimana asumsi dan estimasi dapat berdampak signifikan terhadap laporan keuangan konsolidasian diungkapkan di Catatan 4. b. Perubahan kebijakan akuntansi yang signifikan The preparation of financial statements in conformity with Indonesian Financial Accounting Standards requires the use of certain critical accounting estimates and assumptions. It also requires management to exercise its judgement in the process of applying the Bank CIMB Niaga and Subsidiary’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 4. b. Change in significant accounting policies Kecuali dinyatakan di bawah ini, kebijakan akuntansi telah diterapkan secara konsisten dengan laporan keuangan konsolidasian pada tanggal dan untuk tahun yang berakhir 31 Desember 2017 yang telah sesuai dengan Standar Akuntansi Keuangan di Indonesia. Except as described below, the accounting policies applied are consistent with those of the consolidated financial statements as at and for the years ended 31 December 2017 which conform to the Indonesian Financial Accounting Standards. Perubahan kebijakan akuntansi terkait aset tetap di tahun 2016 dapat dilihat di Catatan 2t. Perubahan ini terkait dengan perubahan kebijakan akuntansi dari metode biaya menjadi metode revaluasi dan diterapkan secara prospektif. Change in accounting policy of fixed asset’s in 2016 disclosed in Note 2t. The change relates with change of accounting policy from cost method to become revaluation method, and was applied prospectively. Dewan Standar Akuntansi Keuangan Ikatan Akuntan Indonesia (“DSAK-IAI”) telah melakukan revisi atas beberapa standar akuntansi yang berlaku efektif pada tanggal 1 Januari 2017, sebagai berikut: Financial Accounting Standard Board of Indonesia Institute of Accounting (“DSAK-IAI”) has issued revision of the following accounting standards which are effective as at 1 January 2017, as follows: - PSAK 1 (revisi 2015): Penyajian Laporan Keuangan; - ISAK 31 (revisi 2015): Interpretasi atas Ruang Lingkup PSAK 13: Properti Investasi; - ISAK 32: Definisi dan hierarki standard akuntansi keuangan; - PSAK 3 (revisi 2016): Laporan Keuangan Interim; - SFAS 1 (revised 2015): Presentation of Financial Statement; IFAS 31 (revised 2015): Interpertation of Scope SFAS 13: Investment Property; ISFAS 32: Interpretation on definition and hierarchy of financial accounting standards SFAS 3 (revised 2016): Interim Financial Reporting; Halaman – 5/17– Page Annual Report CIMB NIAGA 2017 677
  678. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2. 2. KEBIJAKAN AKUNTANSI (lanjutan) b. c. Perubahan kebijakan akuntansi yang signifikan (lanjutan) ACCOUNTING POLICIES (continued) b. Change in (continued) significant accounting policies - PSAK 24 (revisi 2016): Imbalan Kerja; - PSAK 58 (revisi 2016): Aset Tidak Lancar yang Dimiliki untuk Dijual dan Operasi yang Dihentikan; - PSAK 60 (revisi 2016): Instrumen Keuangan: Pengungkapan; - PSAK 101 (revisi 2016) “Penyajian Laporan Keuangan Syariah”; - PSAK 102 (revisi 2016): Akuntansi Murabahah; - PSAK 103 (revisi 2016) “Akuntansi Salam”; - PSAK 104 (revisi 2016) “Akuntansi Istishna”; - PSAK 107 (revisi 2016) “Akuntansi Ijarah”; dan - PSAK 108 (revisi 2016) “Akuntansi Transaksi Asuransi Syariah”. - SFAS 24 (revised 2016): Employee Benefits; - SFAS 58 (revised 2016): Non-Current Assets Held for Sale and Discontinued Operations; - SFAS 60 (revised 2016): Financial Instruments: Disclosures; - SFAS 101 (revised 2016) “Presentation of Syariah Financial Statement”; - SFAS 102 (revised 2016): Murabahah Accounting; - SFAS 103 (revised 2016) “Salam Accounting”; - SFAS 104 (revised 2016) “Istishna Accounting”; - SFAS 107 (revised 2016) “Ijarah Accounting”; and - SFAS 108 (revised 2016) “Accounting for Syariah Insurance Transactions”. PSAK dan ISAK tersebut di atas tidak memiliki dampak yang signifikan terhadap jumlah yang dilaporkan pada tahun berjalan atau tahun-tahun sebelumnya. All the above SFAS and IFAS had no significant effect on the amounts reported for current year or prior years. Prinsip konsolidasi (PSAK 4) c. Principles of consolidation (SFAS 4) Laporan keuangan konsolidasian meliputi laporan keuangan Bank CIMB Niaga dan Entitas Anak. The consolidated financial statements include the financial statements of Bank CIMB Niaga and Subsidiary. Bank mengendalikan suatu entitas ketika Bank terekspos terhadap, atau memiliki hak atas, pengembalian variabel dari keterlibatannya terhadap entitas dan memiliki kemampuan untuk mempengaruhi pengembalian tersebut melalui kekuasaannya atas entitas tersebut. The Bank controls an entity when the Bank is exposed to, or has right to, variable returns from its involvement with the entity and has the ability to affect those return through its power over the entity. Dampak signifikan dari seluruh transaksi dan saldo antara perusahaan-perusahaan yang dikonsolidasikan telah dieliminasi dalam penyajian laporan keuangan konsolidasian. The significant effects of all transactions and balances between the consolidated companies have been eliminated in preparing the consolidated financial statements. Kebijakan akuntansi penting yang dipakai dalam penyajian laporan keuangan konsolidasian telah diterapkan secara konsisten oleh Bank CIMB Niaga dan Entitas Anak, kecuali dinyatakan secara khusus. The significant accounting policies adopted in preparing the consolidated financial statements have been consistently applied by Bank CIMB Niaga and Subsidiary, unless otherwise stated. Halaman – 5/18– Page 678 Annual Report CIMB NIAGA 2017
  679. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2. 2. KEBIJAKAN AKUNTANSI (lanjutan) c. d. Prinsip konsolidasi (PSAK 4) (lanjutan) ACCOUNTING POLICIES (continued) c. Principles of consolidation (SFAS 4) (continued) Kepentingan nonpengendali atas hasil usaha dan ekuitas Entitas Anak disajikan terpisah pada masingmasing laporan laba rugi dan penghasilan komprehensif lain konsolidasian serta laporan posisi keuangan konsolidasian. Non-controlling interests in the results and equity of the Subsidiary are shown separately in the consolidated statement of profit or loss and other comprehensive income and consolidated statement of financial positions, respectively. Bila pengendalian atas suatu entitas diperoleh dalam periode berjalan, hasil usaha entitas tersebut dicatat sebagai laba/rugi sejak tanggal pengendalian dimulai. Bila pengendalian berakhir dalam periode berjalan, hasil usaha entitas tersebut dimasukkan ke dalam laporan keuangan konsolidasian untuk periode dimana pengendalian masih berlangsung. Where control of an entity is obtained during a current period, its results are recorded as profit/loss from the date on which control commences. When control ceases during a current period, its results are included in the consolidated financial statements for the part of the period during which control existed. Kebijakan Akuntansi Entitas Anak (PSAK 4) d. Accounting Policies for Subsidiary (SFAS 4) Entitas Anak adalah seluruh entitas (termasuk entitas terstruktur) dimana Bank memiliki pengendalian. Bank mengendalikan entitas lain ketika Bank terekspos atas, atau memiliki hak untuk, pengembalian yang bervariasi dari keterlibatannya dengan entitas dan memiliki kemampuan untuk mempengaruhi pengembalian tersebut melalui kekuasaannya atas entitas tersebut. Entitas Anak dikonsolidasikan secara penuh sejak tanggal dimana pengendalian dialihkan kepada Bank. Entitas Anak tidak dikonsolidasikan lagi sejak tanggal dimana Bank kehilangan pengendalian. Subsidiary is all entities (including structured entities) overwhich the Bank has control. The Bank controls an entity when the Bank is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiary is fully consolidated from the date on which control is transferred to the Bank. They are deconsolidated from the date on which that control ceases. Bank CIMB Niaga menggunakan metode akuisisi untuk mencatat kombinasi bisnis. Imbalan yang dialihkan untuk akuisisi suatu Entitas Anak adalah sebesar nilai wajar aset yang dialihkan, liabilitas yang diakui dan kepentingan ekuitas yang diterbitkan oleh Bank CIMB Niaga. Imbalan yang dialihkan termasuk nilai wajar aset atau liabilitas yang timbul dari kesepakatan imbalan kontinjensi. Bank CIMB Niaga uses the acquisition method of accounting to account for business combinations. The consideration transferred for the acquisition of a Subsidiary is the fair value of the assets transferred, the liabilities incurred and the equity interests issued by Bank CIMB Niaga. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Biaya terkait akuisisi dibebankan ketika terjadi. Aset teridentifikasi yang diperoleh dan liabilitas serta liabilitas kontinjensi yang diambil alih dalam suatu kombinasi bisnis diukur pada awalnya sebesar nilai wajar pada tanggal akuisisi. Acquisition related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Halaman – 5/19– Page Annual Report CIMB NIAGA 2017 679
  680. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2. 2. KEBIJAKAN AKUNTANSI (lanjutan) d. e. Kebijakan Akuntansi Entitas Anak (PSAK 4) (lanjutan) ACCOUNTING POLICIES (continued) d. Accounting Policies for Subsidiary (SFAS 4) (continued) Untuk setiap akuisisi, Bank CIMB Niaga mengakui kepentingan nonpengendali pada pihak yang diakuisisi baik sebesar nilai wajar atau sebesar bagian proporsional kepentingan nonpengendali atas aset neto pihak yang diakuisisi. On an acquisition by acquisition basis, Bank CIMB Niaga recognises any non-controlling interest in the acquiree either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s net assets. Selisih lebih imbalan yang dialihkan, jumlah kepentingan nonpengendali pada pihak yang diakuisisi serta nilai wajar pada tanggal akuisisi kepentingan ekuitas sebelumnya dimiliki pihak pengakuisisi atas nilai wajar aset teridentifikasi yang diakuisisi dicatat sebagai goodwill. Jika jumlah ini lebih rendah dari nilai wajar aset neto entitas yang diakuisisi dalam kasus pembelian dengan diskon, selisihnya diakui langsung sebagai laba/rugi. The excess of the consideration transferred the amount of any non-controlling interest in the acquiree and the acquisition date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets acquired is recorded as goodwill. If this is less than the fair value of the net assets of the subsidiary acquired in the case of a bargain purchase, the difference is recognised directly in profit/loss. Transaksi dengan kepentingan nonpengendali yang tidak mengakibatkan hilangnya pengendalian merupakan transaksi ekuitas. Selisih antara nilai wajar imbalan yang dibayar dan bagian yang diakuisisi atas nilai tercatat aset neto entitas anak dicatat pada ekuitas. Keuntungan atau kerugian pelepasan kepentingan nonpengendali juga dicatat pada ekuitas. Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions. The difference between the fair value of any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals to non-controlling interests are also recorded in equity. Penjabaran mata uang asing (PSAK 10 dan 52) e. Foreign currency translation (SFAS 10 and 52) Mata uang fungsional Functional currency Laporan keuangan konsolidasian Bank dan Entitas Anak disajikan dalam Rupiah yang merupakan mata uang fungsional Bank. Consolidated financial statements of the Bank and Subsidiary are presented in Rupiah which is the functional currency of the Bank. Mata uang pelaporan Reporting currency Laporan keuangan konsolidasian disajikan dalam mata uang Rupiah, yang merupakan mata uang pelaporan Bank CIMB Niaga dan Entitas Anak. The consolidated financial statements are presented in Rupiah, which is the reporting currency of Bank CIMB Niaga and Subsidiary. Transaksi dan saldo Transactions and balances Transaksi dalam mata uang asing dijabarkan ke dalam mata uang Rupiah dengan menggunakan kurs yang berlaku pada tanggal transaksi. Transactions denominated into a foreign currency are converted into Rupiah at the exchange rate prevailing at the date of the transaction. Halaman – 5/20– Page 680 Annual Report CIMB NIAGA 2017
  681. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2. 2. KEBIJAKAN AKUNTANSI (lanjutan) e. ACCOUNTING POLICIES (continued) Penjabaran mata uang asing (PSAK 10 dan 52) (lanjutan) e. Foreign currency translation (SFAS 10 and 52) (continued) Transaksi dan saldo (lanjutan) Transactions and balances (continued) Aset dan liabilitas moneter dalam mata uang asing dijabarkan ke dalam Rupiah menggunakan kurs penutupan pada tanggal pelaporan dengan menggunakan kurs spot Reuters pada pukul 16.00 WIB untuk tanggal 31 Desember 2017, 2016, dan 2015. Aset dan liabilitas nonmoneter dalam mata uang asing yang diukur berdasarkan biaya perolehan diamortisasi dijabarkan ke dalam Rupiah dengan kurs pada tanggal pengakuan awal. Aset dan liabilitas nonmoneter yang diukur berdasarkan nilai wajar dijabarkan ke dalam Rupiah dengan kurs pada tanggal nilai wajar ditentukan. Monetary assets and liabilities denominated in foreign currency are translated into Rupiah with the closing rate as at the reporting date using the Reuters spot rates at 4.00 p.m. WIB (Western Indonesian Time) on 31 December 2017, 2016, and 2015. Non-monetary assets and liabilities measured at historical cost denominated in a foreign currency are translated into Rupiah with the exchange rate as at the date of initial recognition. Non-monetary assets and liabilities in a foreign currency that are measured at fair value are translated into Rupiah using the exchange rates at the date when the fair value was determined. Keuntungan atau kerugian selisih kurs yang timbul dari transaksi dalam mata uang asing dan dari penjabaran aset dan liabilitas moneter dalam mata uang asing, diakui sebagai laba/rugi, kecuali apabila ditangguhkan pada pendapatan komprehensif lainnya sebagai lindung nilai arus kas yang memenuhi syarat. Exchange gains or losses arising on transactions in foreign currency and on the translation of foreign currency monetary assets and liabilities are recognised as profit/loss, except when deferred in other comprehensive income as qualifying cash flow hedges. Selisih penjabaran mata uang asing atas efek utang dan aset moneter keuangan lainnya yang diukur berdasarkan nilai wajar dicatat sebagai bagian dari keuntungan dan kerugian selisih kurs. Translation differences on debt securities and other monetary financial assets measured at fair value are included in foreign exchange gains and losses. Berikut ini adalah kurs mata uang asing utama yang digunakan untuk penjabaran pada tanggal 31 Desember 2017, 2016, dan 2015 : Below are the major exchange rates used for translation as at 31 December 2017, 2016, and 2015: 2017 Pound Sterling Euro Franc Swiss Dolar Amerika Serikat Dolar Kanada Dolar Australia Dolar Singapura Dolar Selandia Baru Dolar Hongkong Yen Jepang 2016 18,326 16,236 13,901 13,568 10,822 10,594 10,155 9,651 1,736 121 16,555 14,176 13,209 13,473 9,986 9,723 9,312 9,363 1,737 115 2015 20,439 15,057 13,919 13,785 9,924 10,084 9,759 9,445 1,779 115 Pound Sterling Euro Swiss Franc United States Dollar Canadian Dollar Australian Dollar Singapore Dollar New Zealand Dollar Hongkong Dollar Japanese Yen Halaman – 5/21– Page Annual Report CIMB NIAGA 2017 681
  682. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2. 2. KEBIJAKAN AKUNTANSI (lanjutan) f. Aset dan liabilitas keuangan (PSAK 50 dan 55) (i) ACCOUNTING POLICIES (continued) f. Aset keuangan Financial assets and liabilities (SFAS 50 and 55) (i) Financial assets Bank dan Entitas Anak mengklasifikasikan aset keuangannya dalam kategori (A) aset keuangan yang diukur pada nilai wajar melalui laba rugi, (B) kredit yang diberikan dan piutang, (C) aset keuangan dimiliki hingga jatuh tempo, dan (D) aset keuangan tersedia untuk dijual. Klasifikasi ini tergantung dari tujuan perolehan aset keuangan tersebut. Manajemen menentukan klasifikasi aset keuangan tersebut pada saat awal pengakuannya. Bank and Subsidiary classifies its financial assets in the following categories of (A) financial assets at fair value through profit and loss, (B) loans and receivables, (C) held-to-maturity financial assets, and (D) available-for-sale financial assets. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition. (A) Aset keuangan yang diukur pada nilai wajar melalui laba rugi (A) Financial assets at fair value through profit or loss Kategori ini terdiri dari dua subkategori: aset keuangan yang diklasifikasikan dalam kelompok diperdagangkan dan aset keuangan yang pada saat pengakuan awal telah ditetapkan untuk diukur pada nilai wajar melalui laba/rugi. This category comprises two sub-categories: financial assets classified as held for trading and financial assets designated as at fair value through profit/loss upon initial recognition. Aset keuangan diklasifikasikan dalam kelompok diperdagangkan jika diperoleh atau dimiliki terutama untuk tujuan dijual atau dibeli kembali dalam waktu dekat atau jika merupakan bagian dari portofolio instrumen keuangan tertentu yang dikelola bersama dan terdapat bukti mengenai pola ambil untung dalam jangka pendek (short term profit taking) yang terkini. Derivatif juga dikategorikan dalam kelompok diperdagangkan, kecuali derivatif yang ditetapkan dan efektif sebagai instrumen lindung nilai. Aset keuangan yang diklasifikasikan dalam kelompok diperdagangkan terdiri dari efek-efek, Obligasi Pemerintah, dan tagihan derivatif. A financial asset is classified as held for trading if it is acquired or incurred principally for the purpose of selling or repurchasing it in the near term or if it is part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of short term profit taking. Derivatives are also categorised as held for trading unless they are designated and effective as hedging instruments. Financial assets held for trading consist of marketable securities, Government Bonds, and derivative receivables. Halaman – 5/22– Page 682 Annual Report CIMB NIAGA 2017
  683. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2. 2. KEBIJAKAN AKUNTANSI (lanjutan) f. Aset dan liabilitas keuangan (PSAK 50 dan 55) (lanjutan) (i) ACCOUNTING POLICIES (continued) f. Aset keuangan (lanjutan) Financial assets and liabilities (SFAS 50 and 55) (continued) (i) Financial assets (continued) (A) Aset keuangan yang diukur pada nilai wajar melalui laba rugi (lanjutan) (A) Financial assets at fair value through profit or loss (continued) Instrumen keuangan yang dikelompokkan ke dalam kategori ini diakui pada nilai wajarnya pada saat pengakuan awal; biaya transaksi (jika ada) diakui secara langsung sebagai laba/rugi. Keuntungan dan kerugian yang timbul dari perubahan nilai wajar dan penjualan instrumen keuangan diakui sebagai laba/rugi dan dicatat masing-masing sebagai “Keuntungan/(kerugian) dari perubahan nilai wajar instrumen keuangan” dan “Keuntungan/(kerugian) dari penjualan instrumen keuangan”. Pendapatan bunga dari instrumen keuangan dalam kelompok diperdagangkan dicatat sebagai “Pendapatan bunga”. Financial instruments included in this category are recognised initially at fair value; transaction costs (if any) are recognised directly as profit/loss. Gains and losses arising from changes in fair value and sales of these financial instruments are recognised directly as profit/loss and are reported respectively as “Gains/(losses) from changes in fair value of financial instruments” and “Gains/(losses) from sale of financial instruments”. Interest income on financial instruments held for trading are included in “Interest income”. (B) Kredit yang diberikan dan piutang (B) Loans and receivables Kredit yang diberikan dan piutang adalah aset keuangan nonderivatif dengan pembayaran tetap atau telah ditentukan dan tidak mempunyai kuotasi di pasar aktif, kecuali: Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market, other than: a) a) those that intends to be sold immediately or in the short term, which are classified as held for trading, and those that the entity upon initial recognition designates as at fair value through profit/loss; b) those that upon initial recognition designates as available-for-sale; or those for which the holder may not recover substantially all of its initial investment, other than because of loans and receivables deterioration. b) c) yang dimaksudkan untuk dijual dalam waktu dekat, yang diklasifikasikan dalam kelompok diperdagangkan, serta yang pada saat pengakuan awal ditetapkan sebagai diukur pada nilai wajar melalui laba/rugi; yang pada saat pengakuan awal ditetapkan dalam kelompok tersedia untuk dijual; atau dalam hal mungkin tidak akan diperoleh kembali investasi awal secara substansial kecuali yang disebabkan oleh penurunan kualitas kredit yang diberikan dan piutang. Lihat Catatan 2o untuk kebijakan akuntansi mengenai kredit yang diberikan. c) Refer to Note 2o for the accounting policy regarding loan. Halaman – 5/23– Page Annual Report CIMB NIAGA 2017 683
  684. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2. 2. KEBIJAKAN AKUNTANSI (lanjutan) f. Aset dan liabilitas keuangan (PSAK 50 dan 55) (lanjutan) (i) ACCOUNTING POLICIES (continued) f. Aset keuangan (lanjutan) Financial assets and liabilities (SFAS 50 and 55) (continued) (i) (B) Kredit yang diberikan dan piutang (lanjutan) Financial assets (continued) (B) Loans and receivables (continued) Pada saat pengakuan awal, kredit yang diberikan dan piutang diakui pada nilai wajarnya ditambah biaya transaksi (jika ada) dan selanjutnya diukur pada biaya perolehan diamortisasi dengan menggunakan metode suku bunga efektif dikurangi cadangan kerugian penurunan nilai. Pendapatan dari aset keuangan dalam kelompok kredit yang diberikan dan piutang dicatat sebagai laba/rugi dan dilaporkan sebagai “Pendapatan bunga”. Loans and receivables are initially recognised at fair value plus transaction costs (if any) and subsequently measured at amortised cost using the effective interest rate method less allowance for impairment losses. Income on financial assets classified as loans and receivables is recorded as profit/loss and is reported as “Interest income”. Dalam hal terjadi penurunan nilai, kerugian penurunan nilai dilaporkan sebagai pengurang dari nilai tercatat dari aset keuangan dalam kelompok kredit yang diberikan dan piutang, dan diakui pada laba/rugi sebagai “Pembentukan cadangan kerugian penurunan nilai atas aset keuangan”. In the case of impairment, the impairment loss is reported as a deduction from the carrying value of the financial assets classified as loan and receivables recognised as profit/loss and is reported as “Allowance for impairment losses on financial assets”. (C) Aset keuangan dimiliki hingga jatuh tempo (C) Held-to-maturity financial assets Aset keuangan dalam kelompok dimiliki hingga jatuh tempo adalah aset keuangan nonderivatif dengan pembayaran tetap atau telah ditentukan dan jatuh temponya telah ditetapkan, serta Bank CIMB Niaga mempunyai intensi positif dan kemampuan untuk memiliki aset keuangan tersebut hingga jatuh tempo, kecuali: Held-to-maturity financial assets are nonderivative financial assets with fixed or determinable payments and fixed maturities that Bank CIMB Niaga has the positive intention and ability to hold to maturity, other than: a) investasi yang pada saat pengakuan awal ditetapkan sebagai aset keuangan yang diukur pada nilai wajar melalui laba/rugi; b) investasi yang ditetapkan oleh Bank CIMB Niaga dalam kelompok tersedia untuk dijual; dan c) investasi yang memiliki definisi kredit yang diberikan dan piutang. a) those that Bank CIMB Niaga upon initial recognition designates as at fair value through profit/loss; b) those that Bank CIMB Niaga designates as available-for-sale; and c) those that meet the definition of loans and receivables. Halaman – 5/24– Page 684 Annual Report CIMB NIAGA 2017
  685. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2. 2. KEBIJAKAN AKUNTANSI (lanjutan) f. Aset dan liabilitas keuangan (PSAK 50 dan 55) (lanjutan) (i) ACCOUNTING POLICIES (continued) f. Aset keuangan (lanjutan) Financial assets and liabilities (SFAS 50 and 55) (continued) (i) (C) Aset keuangan dimiliki hingga jatuh tempo Financial assets (continued) (C) Held-to-maturity financial assets Pada saat pengakuan awal, aset keuangan dimiliki hingga jatuh tempo diakui pada nilai wajarnya ditambah biaya transaksi (jika ada) dan selanjutnya diukur pada biaya perolehan diamortisasi dengan menggunakan suku bunga efektif dikurangi cadangan kerugian penurunan nilai. These are initially recognised at fair value including transaction costs (if any) and subsequently measured at amortised cost, using the effective interest method less allowance for impairment losses. Pendapatan bunga dari investasi dimiliki hingga jatuh tempo dicatat sebagai laba/rugi dan dilaporkan sebagai “Pendapatan bunga”. Ketika penurunan nilai terjadi, kerugian penurunan nilai diakui sebagai pengurang dari nilai tercatat investasi dan diakui di dalam laporan keuangan konsolidasian sebagai “Pembentukan cadangan kerugian penurunan nilai atas aset keuangan”. Interest income on held-to-maturity investments is recorded as profit/loss and reported as ”Interest income”. In the case of an impairment, the impairment loss is reported as a deduction from the carrying value of the investment and recognised in the consolidated financial statement as ”Allowance for impairment losses on financial assets”. (D) Aset keuangan tersedia untuk dijual (D) Available-for-sale financial assets Aset keuangan dalam kelompok tersedia untuk dijual adalah aset keuangan nonderivatif yang ditetapkan untuk dimiliki untuk periode tertentu dimana akan dijual dalam rangka pemenuhan likuiditas atau perubahan suku bunga, valuta asing atau yang tidak diklasifikasikan sebagai kredit yang diberikan atau piutang, aset keuangan yang diklasifikasikan dalam kelompok dimiliki hingga jatuh tempo atau aset keuangan yang diukur pada nilai wajar melalui laba/rugi. Available-for-sale financial assets are nonderivative financial assets that are intended to be held for indefinite period of time, which may be sold in response to needs for liquidity or changes in interest rates, exchange rates or that are not classified as loans and receivables, held-to-maturity financial assets or financial assets at fair value through profit/loss. Halaman – 5/25– Page Annual Report CIMB NIAGA 2017 685
  686. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2. 2. KEBIJAKAN AKUNTANSI (lanjutan) f. Aset dan liabilitas keuangan (PSAK 50 dan 55) (lanjutan) (i) ACCOUNTING POLICIES (continued) f. Aset keuangan (lanjutan) (i) (D) Aset keuangan tersedia untuk dijual Financial assets (continued) (D) Available-for-sale financial assets Pada saat pengakuan awalnya, aset keuangan tersedia untuk dijual diakui pada nilai wajarnya ditambah biaya transaksi (jika ada) dan selanjutnya diukur pada nilai wajarnya dimana keuntungan atau kerugian diakui sebagai pendapatan komprehensif lainnya, kecuali untuk kerugian penurunan nilai dan laba rugi selisih kurs, hingga aset keuangan dihentikan pengakuannya. Jika aset keuangan tersedia untuk dijual mengalami penurunan nilai, akumulasi laba atau rugi yang sebelumnya diakui di pendapatan komprehensif lainnya, diakui sebagai laba/rugi. Pendapatan bunga dihitung menggunakan metode suku bunga efektif dan keuntungan atau kerugian yang timbul akibat perubahan nilai tukar dari aset moneter yang diklasifikasikan sebagai kelompok tersedia untuk dijual diakui sebagai laba/rugi. (ii) Financial assets and liabilities (SFAS 50 and 55) (continued) Available-for-sale financial assets are initially recognised at fair value, plus transaction costs (if any), and measured subsequently at fair value with gains or losses being recognised as other comprehensive income, except for impairment losses and foreign exchange gains and losses, until the financial assets is derecognised. If an available-forsale financial asset is determined to be impaired, the cumulative gain or loss previously recognised in other comprehensive income is recognised in the profit/loss. Interest income is calculated using the effective interest method and foreign currency gains or losses on monetary assets classified as available-for-sale are recognised as profit/loss. Pengakuan Recognition Bank CIMB Niaga menggunakan akuntansi tanggal transaksi untuk mencatat transaksi aset keuangan yang lazim. Aset keuangan yang dialihkan kepada pihak ketiga tetapi tidak memenuhi syarat penghentian pengakuan (jika ada) disajikan di dalam laporan posisi keuangan konsolidasian sebagai "Aset yang dijaminkan", jika pihak penerima memiliki hak untuk menjual atau mentransfer kembali. Bank CIMB Niaga uses trade date accounting for regular way contracts when recording financial asset transactions. Financial assets that are transferred to a third party but not qualify for derecognition (if any) are presented in the consolidated statement of financial position as “Pledged assets”, if the transferee has the right to sell or repledge them. Liabilitas keuangan (ii) Financial liabilities Bank CIMB Niaga dan Entitas Anak mengklasifikasikan liabilitas keuangan dalam kategori (A) liabilitas keuangan yang diukur pada nilai wajar melalui laba rugi dan (B) liabilitas keuangan yang diukur dengan biaya perolehan diamortisasi. Bank CIMB Niaga and Subsidiary classified its financial liabilities in the category of (A) financial liabilities at fair value through profit or loss and (B) financial liabilities measured at amortised cost. Halaman – 5/26– Page 686 Annual Report CIMB NIAGA 2017
  687. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2. 2. KEBIJAKAN AKUNTANSI (lanjutan) f. Aset dan liabilitas keuangan (PSAK 50 dan 55) (lanjutan) (ii) ACCOUNTING POLICIES (continued) f. Liabilitas keuangan (lanjutan) Financial assets and liabilities (SFAS 50 and 55) (continued) (ii) Financial liabilities (continued) (A) Liabilitas keuangan yang diukur pada nilai wajar melalui laba/rugi (A) Financial liabilities at fair value through profit/loss Kategori ini terdiri dari dua subkategori: liabilitas keuangan diklasifikasikan sebagai diperdagangkan dan liabilitas keuangan yang pada saat pengakuan awal telah ditetapkan oleh Bank CIMB Niaga untuk diukur pada nilai wajar melalui laba/rugi. This category comprises two sub-categories: financial liabilities classified as held for trading and financial liabilities designated by Bank CIMB Niaga as at fair value through profit/loss upon initial recognition. Pada saat pengakuan awal dan selanjutnya dicatat pada nilai wajar. At the initial and subsequent recognition, is recorded at its fair value. Liabilitas keuangan diklasifikasikan sebagai diperdagangkan jika diperoleh terutama untuk tujuan dijual atau dibeli kembali dalam waktu dekat, atau jika merupakan bagian dari portofolio instrumen keuangan tertentu yang dikelola bersama dan terdapat bukti mengenai pola ambil untung dalam jangka pendek yang terkini. Derivatif diklasifikasikan sebagai instrumen diperdagangkan kecuali ditetapkan dan efektif sebagai instrumen lindung nilai. A financial liability is classified as held for trading if it is acquired or incurred principally for the purpose of selling or repurchasing it in the near term, or if it is part of a portfolio of identified financial instruments that are managed together and there is evidence of a recent actual pattern of short term profit taking. Derivatives are also categorised as held for trading instrument unless they are designated and effective as hedging instruments. Keuntungan dan kerugian yang timbul dari perubahan nilai wajar liabilitas keuangan yang diklasifikasikan sebagai diperdagangkan dicatat pada laba/rugi dan dilaporkan sebagai “Keuntungan/(kerugian) dari perubahan nilai wajar instrumen keuangan”. Beban bunga dari liabilitas keuangan yang diklasifikasikan sebagai diperdagangkan dicatat di dalam “Beban bunga”. Gains and losses arising from changes in fair value of financial liabilities classified as held for trading are recorded as profit/loss and are reported as “Gains/(losses) from changes in fair value of financial instruments”. Interest expenses on financial liabilities held for trading are included in “Interest expenses”. Jika Bank CIMB Niaga pada pengakuan awal telah menetapkan instrumen hutang tertentu sebagai nilai wajar melalui laba/rugi, maka selanjutnya, penetapan ini tidak dapat diubah. Berdasarkan PSAK 55 (Revisi 2014), penggunaan nilai wajar diterapkan pada instrumen hutang yang terdiri dari kontrak utama dan derivatif melekat, jika tidak dapat dipisahkan. If Bank CIMB Niaga designated certain debt securities upon initial recognition as fair value through profit/loss, then this designation cannot be changed subsequently. According to SFAS 55 (Revised 2014), the use of fair value is applied on the debt instrument which consists of host contract and embedded derivatives, if can not be separated. Halaman – 5/27– Page Annual Report CIMB NIAGA 2017 687
  688. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2. 2. KEBIJAKAN AKUNTANSI (lanjutan) f. Aset dan liabilitas keuangan (PSAK 50 dan 55) (lanjutan) (ii) ACCOUNTING POLICIES (continued) f. Liabilitas keuangan (lanjutan) (ii) Financial liabilities (continued) (A) Liabilitas keuangan yang diukur pada nilai wajar melalui laba/rugi (lanjutan) (A) Financial liabilities at fair value through profit/loss (continued) Perubahan nilai wajar terkait dengan liabilitas keuangan yang ditetapkan untuk diukur pada nilai wajar melalui laba/rugi diakui di dalam “Keuntungan/(kerugian) dari perubahan nilai wajar instrumen keuangan”. Fair value changes relating to financial liabilities designated at fair value through profit/loss are recognised in “Gains/(losses) from changes in fair value of financial instruments”. (B) Liabilitas keuangan yang diukur dengan biaya perolehan diamortisasi (iii) Financial assets and liabilities (SFAS 50 and 55) (continued) (B) Financial liabilities at amortised cost Liabilitas keuangan yang tidak diklasifikasikan sebagai liabilitas keuangan yang diukur pada nilai wajar melalui laba/rugi dikategorikan dan diukur dengan biaya perolehan diamortisasi. Financial liabilities that are not classified as fair value through profit/loss fall into this category and are measured at amortised cost. Pada saat pengakuan awal, liabilitas keuangan yang diukur dengan biaya perolehan diamortisasi, diukur pada nilai wajar dikurangi biaya transaksi (jika ada). Financial liabilities at amortised cost are initially measured at fair value less transaction costs (if any). Setelah pengakuan awal, Bank CIMB Niaga dan Entitas Anak mengukur seluruh liabilitas keuangan yang diukur dengan biaya perolehan diamortisasi dengan menggunakan metode suku bunga efektif. After initial recognition, Bank CIMB Niaga and Subsidiary measures all financial liabilities at amortised cost using effective interest rates method. (iii) Determination of fair value Penentuan nilai wajar Nilai wajar adalah harga yang akan diterima untuk menjual suatu aset atau harga yang akan dibayar untuk mengalihkan suatu liabilitas dalam transaksi teratur (orderly transaction) antara pelaku pasar (market participants) pada tanggal pengukuran di pasar utama atau, jika tidak terdapat pasar utama, di pasar yang paling menguntungkan dimana Bank memiliki akses pada tanggal tersebut. Nilai wajar liabilitas mencerminkan risiko wanprestasinya. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal market or, in its absence, the most advantageous market to which the Bank has access at that date. The fair value of a liability reflects its nonperformance risk. Halaman – 5/28– Page 688 Annual Report CIMB NIAGA 2017
  689. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2. 2. KEBIJAKAN AKUNTANSI (lanjutan) f. Aset dan liabilitas keuangan (PSAK 50 dan 55) (lanjutan) (iii) ACCOUNTING POLICIES (continued) f. Penentuan nilai wajar (lanjutan) Financial assets and liabilities (SFAS 50 and 55) (continued) (iii) Determination of fair value (continued) Jika tersedia, Bank mengukur nilai wajar instrumen keuangan dengan menggunakan harga kuotasian di pasar aktif untuk instrumen tersebut. When available, the Bank measures the fair value of a financial instrument using the quoted price in an active market for that instrument. Instrumen keuangan dianggap memiliki kuotasi di pasar aktif, jika harga kuotasi tersedia sewaktu-waktu dan dapat diperoleh secara rutin dari bursa, pedagang efek (dealer), perantara efek (broker), kelompok industri, badan pengawas (pricing service atau regulatory agency), dan harga tersebut mencerminkan transaksi pasar yang aktual dan rutin dalam suatu transaksi yang wajar. Jika kriteria di atas tidak terpenuhi, maka pasar aktif dinyatakan tidak tersedia. Indikasi-indikasi dari pasar tidak aktif adalah terdapat selisih yang besar antara harga penawaran dan permintaan atau kenaikan signifikan dalam selisih harga penawaran dan permintaan dan hanya terdapat beberapa transaksi terkini. A financial instrument is considered has quoted in an active market, if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s length basis. If the above criteria are not met, the market is regarded as being inactive. Indications that a market is inactive are when there is a wide bidoffer spread or significant increase in the bidoffer spread or there are few recent transactions. Nilai wajar untuk instrumen keuangan yang diperdagangkan di pasar aktif ditentukan berdasarkan nilai pasar yang berlaku pada tanggal laporan posisi keuangan. Termasuk di dalamnya adalah nilai pasar dari IDMA (Interdealer Market Association) atau harga yang diberikan oleh broker (quoted price) dari Bloomberg dan Reuters pada tanggal laporan posisi keuangan. The fair value of financial instruments traded in active markets is determined based on quoted market prices at the statement of financial position date. This includes IDMA’s (Interdealer Market Association) quoted market prices or broker’s quoted price from Bloomberg and Reuters on the statement of financial position date. Nilai wajar untuk semua instrumen keuangan lainnya ditentukan dengan menggunakan teknik penilaian. Dengan teknik ini, nilai wajar merupakan suatu estimasi yang dihasilkan dari data yang dapat diobservasi dari instrumen keuangan yang sama, menggunakan modelmodel untuk mendapatkan estimasi nilai kini dari arus kas masa depan yang diharapkan atau teknik penilaian lainnya menggunakan input yang tersedia pada tanggal laporan posisi keuangan konsolidasian. For all other financial instruments, fair value is determined using valuation techniques. In these techniques, fair values are estimated from observable data in respect of similar financial instruments, using models to estimate the present value of expected future cash flows or other valuation techniques, using inputs existing at the dates of the consolidated statement of financial position. Halaman – 5/29– Page Annual Report CIMB NIAGA 2017 689
  690. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2. 2. KEBIJAKAN AKUNTANSI (lanjutan) f. Aset dan liabilitas keuangan (PSAK 50 dan 55) (lanjutan) (iii) ACCOUNTING POLICIES (continued) f. Penentuan nilai wajar (lanjutan) Financial assets and liabilities (SFAS 50 and 55) (continued) (iii) Determination of fair value (continued) Bank menggunakan beberapa teknik penilaian yang digunakan secara umum untuk menentukan nilai wajar dari instrumen keuangan dengan tingkat kompleksitas yang rendah, seperti opsi mata uang, swap suku bunga dan swap mata uang. Input yang digunakan dalam teknik penilaian untuk instrumen keuangan di atas adalah data pasar yang dapat diobservasi. Bank uses widely recognised valuation models for determining fair values of non-standardised financial instruments of lower complexity, such as currency options, interest rate swaps, and currency swaps. For these financial instruments, inputs into models are observable market data. Untuk instrumen yang lebih kompleks, Bank CIMB Niaga menggunakan model penilaian internal, yang pada umumnya berdasarkan teknik dan metode penilaian yang umumnya diakui sebagai standar industri. Model penilaian terutama digunakan untuk menilai kontrak derivatif yang ditransaksikan melalui pasar over the counter (OTC) dan instrumen hutang lainnya yang pasarnya tidak aktif. Input dari model ini tidak berasal dari data yang dapat diobservasi di pasar. For more complex instruments, Bank CIMB Niaga uses internally developed models, which are usually based on valuation methods and techniques generally recognised as standard within the industry. Valuation models are used primarily to value derivatives contract transacted in the over the counter (OTC) market and other debt instruments for which markets were or have become illiquid. The inputs to these models may not be observable market data. Untuk instrumen keuangan yang tidak mempunyai harga pasar, estimasi atas nilai wajar ditetapkan dengan mengacu pada nilai wajar instrumen lain yang secara substansi memiliki karakteristik yang sama atau dihitung berdasarkan ekspektasi arus kas yang didiskonto dengan tingkat suku bunga pasar yang relevan. For financial instruments with no quoted market price, a reasonable estimate of the fair value is determined by reference to the current market value of another instrument which substantially have the same characteristic or calculated based on expected cash flows discounted by relevant market rates. Nilai wajar atas over the counter (OTC) instrumen ditentukan menggunakan teknik penilaian yang diterima secara umum di dalam pasar keuangan, seperti present value dan option pricing models. Nilai wajar dari forward mata uang asing ditentukan dengan nilai tukar forward saat ini. Structured interest rate derivatives ditentukan menggunakan option pricing models (sebagai contoh, the BlackScholes model). The fair value of over the counter (OTC) instrument is determined using valuation methods that are commonly accepted in the financial markets, such as present value and option pricing models. The fair value of foreign exchange forwards is generally based on current forward exchange rates. Structured interest rate derivatives are measured using appropriate option pricing models (for example, the Black-Scholes model). Halaman – 5/30– Page 690 Annual Report CIMB NIAGA 2017
  691. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2. 2. KEBIJAKAN AKUNTANSI (lanjutan) f. Aset dan liabilitas keuangan (PSAK 50 dan 55) (lanjutan) (iii) (iv) ACCOUNTING POLICIES (continued) f. Penentuan nilai wajar (lanjutan) Financial assets and liabilities (SFAS 50 and 55) (continued) (iii) Determination of fair value (continued) Pada saat nilai wajar dari unlisted equity instruments tidak dapat ditentukan dengan handal, instrumen tersebut dinilai sebesar biaya perolehan dikurangi penurunan nilai. Nilai wajar atas kredit yang diberikan dan piutang, serta liabilitas kepada bank dan nasabah ditentukan menggunakan nilai kini berdasarkan arus kas kontraktual dengan mempertimbangkan kualitas kredit, likuiditas, dan biaya. In cases when the fair value of unlisted equity instruments cannot be determined reliably, the instruments are carried at cost less impairment. The fair value for loans and receivables as well as liabilities to banks and customers are determined using a present value model on the basis of contractually agreed cash flows, taking into account credit quality, liquidity, and costs. Bukti terbaik dari nilai wajar pada saat pengakuan awal adalah harga transaksinya (yaitu nilai wajar pembayaran yang diserahkan atau diterima), kecuali nilai wajar dari instrumen tersebut dapat dibuktikan dengan perbandingan transaksi untuk instrumen yang sama di pasar terkini yang dapat diobservasi (yaitu yang tanpa modifikasi atau re-packaging) atau berdasarkan teknik penilaian dimana variabelnya hanya data dari pasar yang dapat diobservasi. The best evidence of fair value at initial recognition is the transaction price (that is, the fair value of the consideration given or received), unless the fair value of that instrument is evidenced by comparison with other observable current market transactions in the same instrument (that is, without modification or repackaging) or based on a valuation technique whose variables include only data from observable markets. Untuk instrumen keuangan yang diukur menggunakan nilai wajar, Bank menggunakan hirarki nilai wajar yang mencerminkan signifikasi input yang digunakan dalam melakukan pengukuran (tingkat 1, 2, dan 3) seperti dijelaskan pada Catatan 52e. For financial instruments that measured at fair value, the Bank use the fair value hierarchy which reflect the significance of input used in the measurement (level 1, 2, and 3) as explained in Notes 52e. Penghentian pengakuan (iv) Derecognition Penghentian pengakuan aset keuangan dilakukan ketika hak kontraktual atas arus kas yang berasal dari aset keuangan tersebut berakhir, atau ketika aset keuangan tersebut telah ditransfer dan secara substansial seluruh risiko dan manfaat atas kepemilikan aset tersebut telah ditransfer (jika, secara substansial seluruh risiko dan manfaat tidak ditransfer, maka Bank CIMB Niaga melakukan evaluasi untuk memastikan keterlibatan berkelanjutan atas kendali yang masih dimiliki tidak mencegah penghentian pengakuan). Liabilitas keuangan dihentikan pengakuannya ketika liabilitas telah dilepaskan atau dibatalkan atau kadaluwarsa. Financial assets are derecognised when the contractual rights to receive the cash flows from these financial assets have ceased to exists or the financial assets have been transferred and substantially all the risks and rewards of ownership of the assets are also transferred (that is, if substantially all the risks and rewards have not been transferred, then Bank CIMB Niaga tests control to ensure that continuing involvement on the basis of any retained powers of control does not prevent derecognition). Financial liabilities are derecognised when they have been redeemed, or cancelled, or otherwise extinguished. Halaman – 5/31– Page Annual Report CIMB NIAGA 2017 691
  692. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2. 2. KEBIJAKAN AKUNTANSI (lanjutan) g. ACCOUNTING POLICIES (continued) Klasifikasi dan reklasifikasi instrumen keuangan (PSAK 55) g. Classification and reclassification of financial instruments (SFAS 55) Klasifikasi aset dan liabilitas keuangan Classification of financial assets and liabilities Bank CIMB Niaga dan Entitas Anak mengklasifikasikan instrumen keuangan ke dalam klasifikasi tertentu yang mencerminkan sifat dari informasi dan mempertimbangkan karakteristik dari instrumen keuangan tersebut. Klasifikasi ini dapat dilihat pada tabel berikut: Bank CIMB Niaga and Entitas Anak classifies the financial instruments into classes that reflects the nature of information and take into account the characteristic of those financial instruments. The classification can be seen in the table below: Kategori yang didefinisikan oleh PSAK 55 (Revisi 2014)/ Category as defined by SFAS 55 (Revised 2014) Aset keuangan yang diukur pada nilai wajar melalui laba/rugi/Financial assets at fair value through profit/loss Golongan (ditentukan oleh Bank CIMB Niaga dan Entitas Anak)/ Class (as determined by Bank CIMB Niaga and Subsidiary) Sub golongan/Sub-classes Efek-efek/Marketable securities Obligasi Pemerintah/Government Bonds Aset keuangan dalam kelompok diperdagangkan/Financial assets held for trading Tagihan derivatif - Tidak terkait lindung nilai/Derivative receivables – Non-hedging related Giro pada Bank Indonesia/Current accounts with Bank Indonesia Giro pada bank lain/Current accounts with other banks Penempatan pada bank lain dan Bank Indonesia/Placements with other banks and Bank Indonesia Kredit yang diberikan/Loans Kredit yang diberikan dan piutang/Loans and receivables Efek-efek yang dibeli dengan janji dijual kembali/Securities purchased under resale agreements Piutang pembiayaan konsumen/Consumer financing receivables Piutang sewa pembiayaan/Financial lease receivables Tagihan akseptasi/Acceptance receivables Aset keuangan/ Financial assets Pendapatan yang masih harus diterima/Accrued income Aset keuangan dimiliki hingga jatuh tempo/Held-to-maturity financial assets Aset keuangan tersedia untuk dijual/Available-for-sale financial assets Derivatif lindung nilai/Hedging derivatives Aset lain-lain/Other assets Efek-efek/Marketable securities Obligasi Pemerintah/Government Bonds Efek-efek/Marketable securities Obligasi Pemerintah/Government Bonds Penyertaan/Investments Lindung nilai atas nilai wajar/Hedging instruments in fair value hedges Lindung nilai atas arus kas/Hedging instruments in cash flow hedges Tagihan derivatif - Terkait lindung nilai atas nilai wajar/Derivative receivables Hedging instruments in fair value hedges related Tagihan derivatif - Terkait lindung nilai atas arus kas/Derivative receivables Hedging instruments in cash flow hedges related Halaman – 5/32– Page 692 Annual Report CIMB NIAGA 2017
  693. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2. 2. KEBIJAKAN AKUNTANSI (lanjutan) g. Klasifikasi dan reklasifikasi instrumen keuangan (PSAK 55) (lanjutan) ACCOUNTING POLICIES (continued) g. Klasifikasi aset dan liabilitas keuangan (lanjutan) Kategori yang didefinisikan oleh PSAK 55 (Revisi 2014)/ Category as defined by SFAS 55 (Revised 2014) Liabilitas keuangan yang diukur pada nilai wajar melalui laba/rugi/Financial liabilities at fair value through profit/loss Classification and reclassification of financial instruments (SFAS 55) (continued) Classification of financial assets and liabilities (continued) Golongan (ditentukan oleh Bank CIMB Niaga dan Entitas Anak)/ Class (as determined by Bank CIMB Niaga and Subsidiary) Sub golongan/Sub-classes Liabilitas keuangan dalam kelompok diperdagangkan (Liabilitas derivatif - bukan lindung nilai)/Financial liabilities held for trading (Derivative payables – non-hedging) Pinjaman subordinasi – Porsi perubahan nilai wajar dari liabilitas yang dilindung nilai yang diatribusikan risiko yang dilindung nilai/Subordinated loan – Portion of changes in fair value of the hedged liability that are attributable to the hedge risk Liabilitas segera/Obligations due immediately Simpanan dari nasabah/Deposits from customers Liabilitas keuangan/ Financial liabilities Liabilitas keuangan yang diukur dengan biaya perolehan diamortisasi/Financial liabilities at amortised cost Simpanan dari bank lain/Deposits from other banks Efek-efek yang dijual dengan janji dibeli kembali/Securities sold under repurchase agreement Liabilitas akseptasi/Acceptance payables Efek-efek yang diterbitkan/Marketable securities issued Pinjaman yang diterima/Borrowings Beban yang masih harus dibayar dan liabilitas lain-lain/Accrued expenses and other liabilities Pinjaman subordinasi/Subordinated loans Derivatif lindung nilai/Hedging derivatives Komitmen dan kontijensi instrumen keuangan/ Commitment and contingency financial instruments Lindung nilai atas nilai wajar/Hedging instruments in fair value hedges Liabilitas derivatif - Terkait lindung nilai atas nilai wajar/Derivative payables Hedging instruments in fair value hedges related Lindung nilai atas arus kas/Hedging instruments in cash flow hedges Liabilitas derivatif - Terkait lindung nilai atas arus kas/Derivative payables Hedging instruments in cash flow hedges related Fasilitas kredit yang diberikan yang belum digunakan/Unused loan facilities granted Irrevocable letters of credit yang masih berjalan/Outstanding irrevocable letters of credit Reklasifikasi aset keuangan Reclassification of financial assets Aset keuangan yang tidak lagi dimiliki untuk tujuan penjualan atau pembelian kembali aset keuangan dalam waktu dekat (jika aset keuangan tidak disyaratkan untuk diklasifikasikasi sebagai diperdagangkan pada saat pengakuan awal) dapat direklasifikasikan ke pinjaman yang diberikan dan piutang jika memenuhi definisi pinjaman yang diberikan dan piutang serta entitas memiliki intensi dan kemampuan memiliki aset keuangan untuk masa mendatang yang dapat diperkirakan atau hingga jatuh tempo. Financial assets that are no longer held for the purpose of selling or repurchasing in the near term (and have not been required to be classified as held for trading at initial recognition) could be reclassified as loans and receivables if they meet the definition of loans and receivables and the entity has the intention and ability to hold the financial assets for foreseable future or until maturity date. Halaman – 5/33– Page Annual Report CIMB NIAGA 2017 693
  694. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2. 2. KEBIJAKAN AKUNTANSI (lanjutan) g. Klasifikasi dan reklasifikasi instrumen keuangan (PSAK 55) (lanjutan) ACCOUNTING POLICIES (continued) g. Classification and reclassification of financial instruments (SFAS 55) (continued) Reklasifikasi aset keuangan (lanjutan) Reclassification of financial assets (continued) Bank CIMB Niaga dan Entitas Anak tidak boleh mengklasifikasikan aset keuangan sebagai investasi dimiliki hingga jatuh tempo, jika dalam tahun berjalan atau dalam kurun waktu dua tahun sebelumnya, telah menjual atau mereklasifikasi investasi dimiliki hingga jatuh tempo dalam jumlah yang lebih dari jumlah yang tidak signifikan sebelum jatuh tempo (lebih dari jumlah yang tidak signifikan dibandingkan dengan jumlah nilai investasi dimiliki hingga jatuh tempo), kecuali penjualan atau reklasifikasi tersebut: Bank CIMB Niaga and Subsidiary shall not classify any financial assets as held-to-maturity if the entity has, during the current financial year or during the two preceding financial years, sold or reclassified more than an insignificant amount of held-to-maturity investments before maturity (more than insignificant in relation to the total amount of held-to-maturity investments) other than sales or reclassifications that: (i) dilakukan ketika aset keuangan sudah mendekati jatuh tempo atau tanggal pembelian kembali dimana perubahan suku bunga tidak akan berpengaruh secara signifikan terhadap nilai wajar aset keuangan tersebut; (ii) terjadi setelah Bank CIMB Niaga dan Entitas Anak telah memperoleh secara substansial seluruh jumlah pokok aset keuangan tersebut sesuai jadwal pembayaran atau Bank CIMB Niaga dan Entitas Anak telah memperoleh pelunasan dipercepat; atau (iii) terkait dengan kejadian tertentu yang berada diluar kendali Bank CIMB Niaga dan Entitas Anak, tidak berulang, dan tidak dapat diantisipasi secara wajar oleh Bank CIMB Niaga dan Entitas Anak. (i) Reklasifikasi aset keuangan dari kelompok dimiliki hingga jatuh tempo ke kelompok tersedia untuk dijual dicatat sebesar nilai wajarnya. Keuntungan atau kerugian yang belum direalisasi tetap dilaporkan dalam komponen ekuitas sampai aset keuangan tersebut dihentikan pengakuannya, dan pada saat itu, keuntungan atau kerugian kumulatif yang sebelumnya diakui dalam ekuitas harus diakui sebagai laba/rugi. Reclassification of financial assets from held-tomaturity classification to available-for-sale is recorded at fair value. The unrealised gains or losses are recorded in the equity section and shall be recognised directly in equity section until the financial assets is derecognised, at which time the cumulative gain or loss previously recognised in equity shall be recognised as profit/loss. Reklasifikasi aset keuangan dari kelompok tersedia untuk dijual ke kelompok dimiliki hingga jatuh tempo dicatat pada nilai tercatat. Akumulasi keuntungan atau kerugian yang belum direalisasi yang telah diakui pada pendapatan komprehensif lainnya harus diamortisasi ke laba rugi menggunakan suku bunga efektif sampai dengan tanggal jatuh tempo instrumen tersebut. Perbedaan antara biaya perolehan diamortisasi yang baru pada saat reklasifikasi dan jumlah nominal pada saat jatuh tempo juga diamortisasi selama sisa umur aset keuangan menggunakan suku bunga efektif serupa dengan amortisasi yang dilakukan terhadap premi atau diskonto. Reclassification of financial assets from available-forsale to held-to-maturity classification is recorded at carrying amount. The cumulative of unrealised gains or losses that has been recognised in other comprehensive income is amortised to profit or loss using effective interest rate up to the maturity date of that instrument. Difference between the new amortised cost as at reclassification date and nominal amount as at maturity date is also amortised over the remaining life until maturity using the effective interest rate, similar to the amortisation of a premium and a discount. are so close to maturity or the financial asset’s call date that changes in the market rate of interest would not have a significant effect on the financial asset’s fair value; (ii) occur after Bank CIMB Niaga and Subsidiary has collected substantially all of the financial asset’s original principal through scheduled payments or prepayments; or (iii) are attributable to an isolated event that is beyond the entity’s control, is non-recurring and could not have been reasonably anticipated by Bank CIMB Niaga and Subsidiary. Halaman – 5/34– Page 694 Annual Report CIMB NIAGA 2017
  695. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2. 2. KEBIJAKAN AKUNTANSI (lanjutan) g. h. Klasifikasi dan reklasifikasi instrumen keuangan (PSAK 55) (lanjutan) ACCOUNTING POLICIES (continued) g. Classification and reclassification of financial instruments (SFAS 55) (continued) Saling hapus instrumen keuangan Off-setting financial instruments Aset keuangan dan liabilitas keuangan disalinghapuskan dan jumlah netonya dilaporkan pada laporan posisi keuangan konsolidasian ketika terdapat hak yang berkekuatan hukum untuk melakukan saling hapus atas jumlah yang telah diakui tersebut dan adanya niat untuk menyelesaikan secara neto, atau untuk merealisasikan aset dan menyelesaikan liabilitas secara bersamaan. Financial assets and liabilitiesare offset and the net amount reported in the consolidated statements of financial position when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. Hak saling hapus tidak kontinjen atas peristiwa di masa depan dan dapat dipaksakan secara hukum dalam situasi bisnis yang normal dan dalam peristiwa gagal bayar, atau peristiwa kepailitan atau kebangkrutan Bank dan Entitas Anak atau pihak lawan. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankcrupty of the Bank and Subsidiary or the counterparty. Penurunan nilai dari aset keuangan (PSAK 55) h. (A) Aset keuangan yang dicatat berdasarkan biaya perolehan diamortisasi Pada setiap tanggal laporan posisi keuangan, Bank CIMB Niaga dan Entitas Anak mengevaluasi apakah terdapat bukti yang obyektif bahwa aset keuangan atau kelompok aset keuangan mengalami penurunan nilai. Aset keuangan atau kelompok aset keuangan diturunkan nilainya dan kerugian penurunan nilai telah terjadi, jika dan hanya jika, terdapat bukti yang obyektif mengenai penurunan nilai tersebut sebagai akibat dari satu atau lebih peristiwa yang terjadi setelah pengakuan awal aset tersebut (peristiwa yang merugikan), dan peristiwa yang merugikan tersebut berdampak pada estimasi arus kas masa depan atas aset keuangan atau kelompok aset keuangan yang dapat diestimasi secara handal. Impairment of financial assets (SFAS 55) (A) Financial assets carried at amortised cost Bank CIMB Niaga and Subsidiary assesses at each reporting date whether there is objective evidence that a financial asset or group of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a “loss event”) and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated. Halaman – 5/35– Page Annual Report CIMB NIAGA 2017 695
  696. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2. 2. KEBIJAKAN AKUNTANSI (lanjutan) h. Penurunan nilai dari aset keuangan (PSAK 55) (lanjutan) ACCOUNTING POLICIES (continued) h. Impairment (continued) of financial assets (SFAS 55) (A) Aset keuangan yang dicatat berdasarkan biaya perolehan diamortisasi (lanjutan) (A) Financial assets carried at amortised cost (continued) Kriteria yang digunakan oleh Bank CIMB Niaga dan Entitas Anak untuk menentukan bukti objektif dari penurunan nilai diantaranya adalah: The criteria that Bank CIMB Niaga and Subsidiary uses to determine that there is objective evidence of impairment include: a. kesulitan keuangan signifikan yang dialami pihak penerbit atau peminjam; b. pelanggaran kontrak, terjadinya wanprestasi atau tunggakan pembayaran pokok atau bunga; c. data yang dapat diobservasi mengindikasikan adanya penurunan yang dapat diukur atas estimasi arus kas masa datang dari kelompok aset keuangan sejak pengakuan awal aset dimaksud, meskipun penurunannya belum dapat diidentifikasi terhadap aset keuangan secara individual dalam kelompok aset tersebut, termasuk memburuknya status pembayaran pihak peminjam dalam kelompok tersebut; d. hilangnya pasar aktif dari aset keuangan akibat kesulitan keuangan; atau a. significant financial difficulty of the issuer or obligor; b. a breach of contract, default or delinquency in principal or interest payments; e. pihak pemberi pinjaman, dengan alasan ekonomi atau hukum sehubungan dengan kesulitan keuangan yang dialami pihak peminjam, memberikan keringan pada pihak peminjam yang tidak mungkin diberikan jika pihak peminjam tidak mengalami kesulitan. f. terdapat kemungkinan bahwa pihak peminjam akan dinyatakan pailit atau melakukan reorganisasi keuangan lainnya. c. observable data indicating that there is a measurable decrease in the estimated future cash flows from a portfolio of financial assets since the initial recognition of those assets, although the decrease cannot yet be identified with the individual financial assets in the portfolio, including adverse changes in the payment status of borrowers in the portfolio; d. the disappearance of an active market for that financial asset because of financial difficulties; or e. the lenders, for economic or legal reasons relating to the borrower’s financial difficulty, granting to the borrower a concession that the lender would not otherwise consider. f. it becoming probable that the borrower will enter bankruptcy or other financial reorganization. Estimasi periode antara peristiwa kerugian dan identifikasinya ditentukan oleh manajemen untuk setiap portofolio yang diidentifikasi. The estimated period between a loss occurring and its identification is determined by management for each identified portfolio. Pada awalnya Bank CIMB Niaga dan Entitas Anak menentukan apakah terdapat bukti obyektif penurunan nilai seperti tersebut di atas secara individual. Penilaian individu dilakukan atas aset keuangan yang signifikan yang mengalami penurunan nilai. Aset keuangan yang tidak signifikan namun mengalami penurunan nilai dimasukkan dalam kelompok aset keuangan yang memiliki karakteristik risiko yang serupa dan dilakukan penilaian secara kolektif. Initially Bank CIMB Niaga and Subsidiary assesses whether objective evidence of impairment for financial asset as individually exists as described above. Individual assessment is performed on the significant impaired financial asset. The impaired financial assets which are not classified as individually significant are included in group of financial asset with similar credit risk characteristics and then assessed by using collective assessment. Halaman – 5/36– Page 696 Annual Report CIMB NIAGA 2017
  697. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2. 2. KEBIJAKAN AKUNTANSI (lanjutan) h. Penurunan nilai dari aset keuangan (PSAK 55) (lanjutan) ACCOUNTING POLICIES (continued) h. Impairment (continued) of financial assets (SFAS 55) (A) Aset keuangan yang dicatat berdasarkan biaya perolehan diamortisasi (lanjutan) (A) Financial assets carried at amortised cost (continued) Jika Bank CIMB Niaga dan Entitas Anak menentukan tidak terdapat bukti obyektif mengenai penurunan nilai atas aset keuangan yang dinilai secara individual, maka akun atas aset keuangan tersebut akan masuk ke dalam kelompok aset keuangan yang memiliki karakteristik risiko kredit yang serupa dan menilai penurunan nilai kelompok tersebut secara kolektif. Akun yang penurunan nilainya dinilai secara individual, dan untuk itu kerugian penurunan nilai diakui atau tetap diakui, tidak termasuk dalam penilaian penurunan nilai secara kolektif. If Bank CIMB Niaga and Subsidiary assesses that there is no objective evidence of impairment for financial asset as individual, that account of financial asset will be included in a group of financial asset with similar credit risk characteristics and collectively assesses them for impairment. Accounts that are individually assessed for impairment and for which an impairment loss is or continues to be recognised are not included in a collective assessment of impairment. Jumlah kerugian penurunan nilai diukur berdasarkan selisih antara nilai tercatat aset keuangan dengan nilai kini dari estimasi arus kas masa datang yang didiskontokan menggunakan tingkat suku bunga efektif awal dari aset keuangan tersebut. Nilai tercatat aset tersebut dikurangi menggunakan cadangan kerugian penurunan nilai dan jumlah kerugian penurunan nilai diakui sebagai laba/rugi. Jika kredit yang diberikan atau investasi dimiliki hingga jatuh tempo memiliki suku bunga variabel, maka tingkat diskonto yang digunakan untuk mengukur setiap kerugian penurunan nilai adalah suku bunga efektif yang berlaku yang ditetapkan dalam kontrak. The amount of the impairment loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate. The carrying amount of the asset is reduced through the use of an allowance impairment account and the amount of the loss is recognised as profit/loss. If a loan or held-to-maturity investment has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. Perhitungan nilai kini dari estimasi arus kas masa datang atas aset keuangan dengan agunan mencerminkan arus kas yang dapat dihasilkan dari pengambilalihan agunan dikurangi biayabiaya untuk memperoleh dan menjual agunan, terlepas apakah pengambilalihan tersebut berpeluang terjadi atau tidak. The calculation of the present value of the estimated future cash flows of a collateralised financial asset reflects the cash flows that may result from foreclosure less costs for obtaining and selling the collateral, regardless the foreclosure is probable or not. Untuk tujuan evaluasi penurunan nilai secara kolektif, aset keuangan dikelompokkan berdasarkan kesamaan karakteristik risiko kredit seperti mempertimbangkan segmentasi kredit dan status tunggakan. Karakteristik yang dipilih adalah relevan dengan estimasi arus kas masa datang dari kelompok aset tersebut yang mengindikasikan kemampuan debitur atau rekanan untuk membayar seluruh liabilitas yang jatuh tempo sesuai persyaratan kontrak dari aset yang dievaluasi. For the purposes of a collective evaluation of impairment, financial asset are grouped on the basis of similar credit risk characteristics such by considering credit segmentation and past due status. Those characteristics are relevant to the estimation of future cash flows for groups of such assets that indicate the debtor or counterpart ability to pay all amounts due according to the contractual terms of the assets being evaluated. Halaman – 5/37– Page Annual Report CIMB NIAGA 2017 697
  698. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2. 2. KEBIJAKAN AKUNTANSI (lanjutan) h. Penurunan nilai dari aset keuangan (PSAK 55) (lanjutan) ACCOUNTING POLICIES (continued) h. Impairment (continued) of financial assets (SFAS 55) (A) Aset keuangan yang dicatat berdasarkan biaya perolehan diamortisasi (lanjutan) (A) Financial assets carried at amortised cost (continued) Arus kas masa datang dari kelompok aset keuangan yang penurunan nilainya dievaluasi secara kolektif, diestimasi berdasarkan arus kas kontraktual dan kerugian historis yang pernah dialami atas aset-aset yang memiliki karakteristik risiko kredit yang serupa dengan karakteristik risiko kredit kelompok tersebut. Kerugian historis yang pernah dialami kemudian disesuaikan berdasarkan data terkini yang dapat diobservasi untuk mencerminkan kondisi saat ini yang tidak berpengaruh pada periode terjadinya kerugian historis tersebut dan untuk menghilangkan pengaruh kondisi yang ada pada periode historis namun sudah tidak ada lagi saat ini. Future cash flows in a group of financial assets that are collectively evaluated for impairment are estimated on the basis of the contractual cash flows and historical loss experience for assets with credit risk characteristics similar to those in the group. Historical loss experience is adjusted on the basis of current observable data to reflect the effects of current conditions that did not affect the period on which the historical loss experience is based and to remove the effects of conditions in the historical period that do not currently exist. Beban penurunan nilai yang terkait dengan kredit yang diberikan dan efek-efek (di dalam kategori dimiliki hingga jatuh tempo dan kredit yang diberikan dan piutang) diklasifikasikan di dalam beban penurunan nilai. Impairment charges relating to loans and marketable securities (held-to-maturity and loans and receivables categories) are classified in impairment charges. Jika pada periode berikutnya, jumlah kerugian penurunan nilai berkurang dan pengurangan tersebut dapat dikaitkan secara obyektif pada peristiwa yang terjadi setelah penurunan nilai diakui (misalnya perbaikan pada rating kredit debitur), maka kerugian penurunan nilai yang sebelumnya diakui harus dipulihkan, baik secara langsung, atau dengan menyesuaikan pos cadangan. Jumlah pemulihan penurunan nilai diakui sebagai laba/rugi. If in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised (such as an improvement in the debtor’s credit rating), the previously recognised impairment loss is reversed directly, or by adjusting the allowance account. The amount of the impairment reversal is recognised as profit/loss. Ketika kredit yang diberikan tidak tertagih, kredit tersebut dihapus buku dengan menjurnal balik cadangan kerugian penurunan nilai. Kredit yang diberikan tersebut dapat dihapus buku setelah semua prosedur yang diperlukan telah dilakukan dan jumlah kerugian telah ditentukan. When a loan is uncollectible, it is written off against the related allowance for impairment loss. Such loans are written off after all the necessary procedures have been completed and the amount of the loss has been determined. Halaman – 5/38– Page 698 Annual Report CIMB NIAGA 2017
  699. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. KEBIJAKAN AKUNTANSI (lanjutan) h. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2. Penurunan nilai dari aset keuangan (PSAK 55) (lanjutan) ACCOUNTING POLICIES (continued) h. (B) Aset yang tersedia untuk dijual Impairment (continued) of financial assets (SFAS 55) (B) Assets classified as available-for-sale Pada setiap tanggal laporan posisi keuangan konsolidasian, Bank CIMB Niaga mengevaluasi apakah terdapat bukti yang obyektif bahwa aset keuangan atau kelompok aset keuangan mengalami penurunan nilai. Lihat Catatan 2h(A) untuk kriteria bukti obyektif adanya penurunan nilai. Penurunan yang signifikan atau penurunan jangka panjang atas nilai wajar dari investasi dalam instrumen hutang dalam klasifikasi tersedia untuk dijual di bawah biaya perolehannya merupakan bukti obyektif terjadinya penurunan nilai dan menyebabkan pengakuan kerugian penurunan nilai. Ketika terdapat bukti tersebut di atas untuk aset yang tersedia untuk dijual, kerugian kumulatif, yang merupakan selisih antara biaya perolehan dengan nilai wajar kini, dikurangi kerugian penurunan nilai aset keuangan yang sebelumnya telah diakui pada laba/rugi, dikeluarkan dari ekuitas dan diakui sebagai laba/rugi. Bank CIMB Niaga assesses at each date of the consolidated statement of financial position whether there is objective evidence that a financial asset or a group of financial assets is impaired. Refer to Note 2h(A) for the criteria of objective evidence of impairment. In the case of debt instruments classified as available-for-sale, a significant or prolonged decline in the fair value of the security below its cost is objective evidence of impairment resulting in the recognition of an impairment loss. If any such evidence exists for available-for-sale financial assets, the cumulative loss measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in profit/loss is removed from equity and recognised as profit/loss. Jika, pada periode berikutnya, nilai wajar instrumen hutang yang diklasifikasikan dalam kelompok tersedia untuk dijual meningkat dan peningkatan tersebut dapat dihubungkan secara obyektif dengan peristiwa yang terjadi setelah pengakuan kerugian penurunan nilai pada laba/rugi, maka kerugian penurunan nilai tersebut harus dipulihkan melalui laba/rugi. If, in a subsequent period, the fair value of a debt instrument classified as available-for-sale increases and the increase can be objectively related to an event occurring after the impairment loss was recognised in profit/loss, the impairment loss is reversed through the profit/loss. (C) Kontrak jaminan keuangan dan tagihan komitmen lainnya Kontrak jaminan keuangan adalah kontrak yang mengharuskan penerbit untuk melakukan pembayaran yang ditetapkan untuk mengganti uang pemegang kontrak atas kerugian yang terjadi karena debitur tertentu gagal untuk melakukan pembayaran pada saat jatuh tempo, sesuai dengan ketentuan dari instrumen hutang. Jaminan keuangan tersebut diberikan kepada bank-bank, lembaga keuangan dan badan-badan lainnya atas nama debitur untuk menjamin kredit, fasilitas-fasilitas perbankan lainnya, dan penyediaan dana yang belum ditarik. (C) Financial guarantee contracts commitment receivables and other Financial guarantee contracts are contracts that require the issuer to make specified payments to reimburse the holder for a loss incurred because a specified debtor defaulted to make payments when due, in accordance with the terms of a debt instrument. Such financial guarantees are given to banks, financial institutions and other institutions on behalf of customers to secure loans, other banking facilities, and unused provision of funds facilities. Halaman – 5/39– Page Annual Report CIMB NIAGA 2017 699
  700. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. KEBIJAKAN AKUNTANSI (lanjutan) h. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2. Penurunan nilai dari aset keuangan (PSAK 55) (lanjutan) ACCOUNTING POLICIES (continued) h. (C) Kontrak jaminan keuangan dan tagihan komitmen lainnya (lanjutan) i. of financial assets (SFAS 55) (C) Financial guarantee contracts and commitment receivables (continued) Financial guarantees are initially recognised in the financial statements at fair value on the date the guarantee was given. The fair value of a financial guarantee at inception is likely to equal the premium received because all guarantees are agreed on arm’s length terms. Setelah pengakuan awal kontrak, jaminan keuangan dicatat pada nilai yang lebih tinggi antara nilai wajar amortisasi dengan present value atas pembayaran liabilitas yang diharapkan akan terjadi (ketika pembayaran atas jaminan menjadi probable) dan selisihnya dibebankan sebagai biaya operasional lain-lain. Subsequently they are measured at the higher of amortised amount and the present value of any expected payment (when a payment under the guarantee has become probable) and the difference is charged to other operating expense. Cadangan kerugian penurunan nilai atas kontrak jaminan keuangan dan tagihan komitmen lainnya yang memiliki risiko kredit dihitung berdasarkan kerugian historis. Allowances for impairment on financial guarantee contracts and other commitment receivables with credit risk are calculated based on historical experience. (D) Cadangan kerugian penurunan nilai aset keuangan atas kontrak jaminan keuangan yang memiliki risiko kredit dan cadangan kerugian penurunan nilai aset yang diambil alih (D) Allowance for impairment losses on financial guarantee contracts with credit risk and allowance for impairment losses on foreclosed assets Bank CIMB Niaga menentukan cadangan kerugian penurunan nilai aset keuangan atas kontrak jaminan keuangan yang memiliki risiko kredit berdasarkan data kerugian historis. Sedangkan perhitungan cadangan kerugian penurunan nilai aset yang diambil alih dihitung dengan prinsip penurunan nilai sesuai Standar Akuntansi Indonesia yang berlaku. Bank CIMB Niaga determined the allowance for impairment losses on financial guarantee contracts with credit risk is based on historical loss data. Whereas the calculation of allowance for impairment losses of foreclosed assets was calculated using impairment principles according to applicable Indonesia Accounting Standard. Kas (PSAK 55) i. Giro pada bank lain dan Bank Indonesia (PSAK 55) Cash (SFAS 55) Cash includes petty cash, cash, cash in Automatic Teller Machines (ATMs)/Cash Deposit Machine (CDMs), and bank notes. j. Current accounts with other banks and Bank Indonesia (SFAS 55) Giro pada bank lain dan Bank Indonesia (BI) diklasifikasikan sebagai kredit yang diberikan dan piutang. Lihat Catatan 2f untuk kebijakan akuntansi atas kredit yang diberikan dan piutang. Current account with other banks and Bank Indonesia (BI) are classified as loans and receivables. Refer to Note 2f for the accounting policy of loans and receivables. Giro pada bank lain dan Bank Indonesia dinyatakan sebesar saldo giro dikurangi dengan cadangan kerugian penurunan nilai. Current accounts with other banks and Bank Indonesia are stated at the outstanding balance less allowance for impairment losses. Halaman – 5/40– Page 700 other Jaminan keuangan awalnya diakui dalam laporan keuangan konsolidasian sebesar nilai wajar pada tanggal jaminan diberikan. Nilai wajar dari jaminan keuangan pada saat dimulainya transaksi pada umumnya sama dengan provisi yang diterima untuk jaminan diberikan dengan syarat dan kondisi normal. Kas meliputi kas kecil, kas besar, kas di dalam Anjungan Tunai Mandiri (ATM)/Cash Deposit Machine (CDM), dan bank notes. j. Impairment (continued) Annual Report CIMB NIAGA 2017
  701. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. KEBIJAKAN AKUNTANSI (lanjutan) j. k. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2. Giro pada bank lain dan Bank Indonesia (PSAK 55) (lanjutan) ACCOUNTING POLICIES (continued) j. Giro Wajib Minimum Utama adalah simpanan minimum yang wajib dipelihara oleh bank dalam bentuk saldo rekening giro pada BI yang besarnya ditetapkan oleh BI sebesar persentase tertentu dari dana pihak ketiga. Primary Statutory Reserve is minimum deposit that should be maintained by bank in current account with BI in certain percentage of third party fund which is determined by BI. Giro Wajib Minimum Sekunder adalah cadangan minimum yang wajib dipelihara oleh bank dalam bentuk Sertifikat Bank Indonesia (SBI), Surat Utang Negara (SUN) dan/atau Kelebihan Saldo Rekening, yang besarnya ditetapkan BI sebesar persentase tertentu. Secondary Statutory Reserve is minimum reserve that should be maintained by bank in form of Bank Indonesia Certificates (SBI), Government Debenture Debt (SUN) and/or Excess Reserve, in certain percentage determined by BI. Penempatan pada bank lain dan Bank Indonesia (PSAK 55) k. Penempatan pada bank lain dan BI diklasifikasikan sebagai kredit yang diberikan dan piutang. Lihat Catatan 2f untuk kebijakan akuntansi atas kredit yang diberikan dan piutang. l. Current accounts with other banks and Bank Indonesia (SFAS 55) (continued) Efek-efek dan Obligasi Pemerintah (PSAK 55) Placements with other banks and Bank Indonesia (SFAS 55) Placements with other banks and BI are classified as loans and receivables. Refer to Note 2f for the accounting policy of loans and receivables. l. Marketable securities and Government Bonds (SFAS 55) Efek-efek yang dimiliki terdiri dari SBI, obligasi korporasi, wesel jangka menengah, tagihan wesel ekspor, dan efek-efek pasar uang dan pasar modal lainnya. Marketable securities consist of SBI, corporate bonds, medium term notes, export bills receivable, and other money market and capital market securities. Obligasi Pemerintah adalah Obligasi Pemerintah yang dibeli dari pasar. Government Bonds is Government Bonds purchased from market. Efek-efek dan Obligasi Pemerintah diklasifikasikan sebagai aset keuangan yang diukur pada nilai wajar melalui laba/rugi, tersedia untuk dijual, dan dimiliki hingga jatuh tempo. Lihat Catatan 2f untuk kebijakan akuntansi atas aset keuangan dalam kelompok diperdagangkan, tersedia untuk dijual, dan dimiliki hingga jatuh tempo. Marketable securities and Government Bonds are classified as financial assets at fair value through profit/loss, available-for-sale, and held-to-maturity. Refer to Note 2f for the accounting policy of financial assets held-for-trading, available-for-sale, and held-tomaturity. m. Efek-efek yang dibeli dengan janji dijual kembali/efek-efek yang dijual dengan janji dibeli kembali (PSAK 55) m. Securities purchased under resale agreements/securities sold under repurchase agreements (SFAS 55) Efek-efek yang dibeli dengan janji dijual kembali (reverse repo) disajikan sebagai tagihan sebesar harga jual kembali yang disepakati dikurangi dengan selisih antara harga beli dan harga jual kembali yang disepakati (pendapatan bunga yang ditangguhkan) dan cadangan kerugian penurunan nilai. Selisih antara harga beli dan harga jual kembali yang disepakati tersebut diamortisasi dengan menggunakan suku bunga efektif sebagai pendapatan bunga selama jangka waktu sejak efek-efek itu dibeli hingga saat dijual kembali. Securities purchased under resale agreements (reverse repo) are presented as receivables at the agreed resale price net of the difference between the purchase price and agreed resale price (unearned interest income) and allowance for impairment losses. The difference between the purchase price and the agreed resale price are amortised using effective interest rate as interest income over the period, commencing from the acquisition date to the resale date. Halaman – 5/41– Page Annual Report CIMB NIAGA 2017 701
  702. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. KEBIJAKAN AKUNTANSI (lanjutan) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2. ACCOUNTING POLICIES (continued) m. Efek-efek yang dibeli dengan janji dijual kembali/efek-efek yang dijual dengan janji dibeli kembali (PSAK 55) (lanjutan) m. Securities purchased under resale agreements/securities sold under repurchase agreements (SFAS 55) (continued) Efek-efek yang dibeli dengan janji dijual kembali (reverse repo) diklasifikasikan sebagai kredit yang diberikan dan piutang. Lihat Catatan 2f untuk kebijakan akuntansi atas aset keuangan yang diklasifikasikan sebagai kredit yang diberikan dan piutang. Securities purchased under resale agreements (reverse repo) are classified as loans and receivables. Refer to Note 2f for the accounting policy for financial assets that classified as loans and receivables. Efek-efek yang dijual dengan janji untuk dibeli kembali (repo) direklasifikasi sebagai aset yang dijaminkan dalam laporan posisi keuangan konsolidasian dan liabilitas kepada counterparty disajikan sebagai liabilitas dalam laporan posisi keuangan konsolidasian sebesar harga beli kembali yang disepakati dikurangi selisih antara harga jual dan harga beli kembali yang disepakati (beban bunga dibayar dimuka). Selisih antara harga jual dan harga beli kembali yang disepakati tersebut diamortisasi sebagai beban bunga selama jangka waktu sejak efek-efek dijual hingga dibeli kembali. Securities sold under repurchase agreements (repo) are reclassified in the consolidated statement of financial position as pledged assets and the counterparty liability is presented as liabilities in the consolidated statement of financial position at the agreed repurchase price net of the difference between the selling price and the agreed repurchase price (prepaid interest expense). The difference between the selling price and the agreed repurchase price is amortised as interest expense over the period commencing from the selling date to the repurchase date. Efek-efek yang dijual dengan janji untuk dibeli kembali diklasifikasikan sebagai liabilitas keuangan yang diukur dengan biaya perolehan diamortisasi. Lihat Catatan 2f untuk kebijakan akuntansi atas liabilitas keuangan yang diukur dengan biaya perolehan diamortisasi. Securities sold under repurchase agreements are classified as financial liabilities at amortised cost. Refer to Note 2f for the accounting policy for financial liabilities at amortised cost. n. Instrumen keuangan derivatif dan lindung nilai (PSAK 55) n. Derivative financial instruments and hedging (SFAS 55) Akuntansi instrumen keuangan derivatif Accounting for derivative financial instruments Dalam melakukan usaha bisnisnya, Bank CIMB Niaga melakukan transaksi instrumen keuangan derivatif seperti kontrak tunai dan berjangka mata uang asing, foreign currency swaps, kontrak opsi mata uang asing, dan swap tingkat suku bunga. Instrumen keuangan derivatif dinilai dan dibukukan di laporan posisi keuangan konsolidasian pada nilai wajar dengan menggunakan harga pasar. Derivatif dicatat sebagai aset apabila memiliki nilai wajar positif dan sebagai liabilitas apabila memiliki nilai wajar negatif. In the normal course of business, Bank CIMB Niaga enters into transactions involving derivative financial instruments such as foreign currency spot and forward contracts, foreign currency swaps, foreign currency options contracts, and interest rate swaps. Derivative financial instruments are valued and recorded on consolidated statement of financial position at their fair value using market rates. Derivatives are carried as assets when the fair value is positive and as liabilities when the fair value is negative. Keuntungan atau kerugian yang terjadi dari perubahan nilai wajar diakui sebagai laba/rugi. Gains or losses as a result of fair value changes are recognised as current year profit/loss. Halaman – 5/42– Page 702 Annual Report CIMB NIAGA 2017
  703. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. KEBIJAKAN AKUNTANSI (lanjutan) n. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2. Instrumen keuangan derivatif dan lindung nilai (PSAK 55) (lanjutan) ACCOUNTING POLICIES (continued) n. Derivative financial instruments and hedging (SFAS 55) (continued) Akuntansi untuk aktivitas lindung nilai Accounting for hedging activities Instrumen keuangan derivatif pada awalnya diakui di laporan posisi keuangan konsolidasian berdasarkan nilai wajar pada tanggal kontrak derivatif disepakati dan selanjutnya dinilai kembali berdasarkan nilai wajarnya. Metode untuk mengakui keuntungan atau kerugian yang terjadi tergantung pada sifat dari obyek yang dilindungi nilainya. Bank CIMB Niaga mengelompokkan derivatif sebagai (1) instrumen lindung nilai terhadap nilai wajar suatu aset atau liabilitas yang diakui atau terhadap komitmen teguh yang belum diakui (lindung nilai atas nilai wajar), atau (2) instrumen lindung nilai atas arus kas masa depan yang kemungkinan besar terjadi yang dapat diatribusikan dengan aset dan liabilitas yang telah diakui atau sebuah prakiraan transaksi yang kemungkinan besar terjadi (lindung nilai arus kas). Derivative financial instruments are initially recognised in the consolidated statement of financial position at fair value on the date a derivative contract is entered into and subsequently are remeasured at their fair values. The method of recognising the resulting gain or loss is dependent on the nature of the item being hedged. Bank CIMB Niaga designates certain derivatives as either (1) a hedge of the fair value of a recognised asset or liability or of an unrecognised firm commitment (fair value hedge), or (2) a hedge of highly probable future cash flows attributable to a recognised assets or liability or a forecasted transaction (cash flow hedge). Walaupun merupakan sarana lindung nilai ekonomis yang efektif berdasarkan kebijakan manajemen risiko Bank CIMB Niaga, beberapa transaksi derivatif tertentu tidak memenuhi persyaratan sebagai akuntansi lindung nilai berdasarkan ketentuan PSAK 55 (Revisi 2014). Certain derivative transactions, whilst providing effective economic hedges under Bank CIMB Niaga’s risk management policies, do not qualify for hedge accounting under the specific rules in SFAS 55 (Revised 2014). Pada awal terjadinya transaksi, Bank CIMB Niaga mendokumentasikan hubungan antara instrumen lindung nilai dan unsur yang dilindungi nilainya, juga tujuan manajemen risiko dan strategi yang diterapkan dalam melakukan berbagai macam transaksi lindung nilai. Proses dokumentasi ini menghubungkan derivatif yang ditujukan sebagai lindung nilai dengan aset dan liabilitas tertentu atau dengan komitmen atau transaksi tertentu yang diperkirakan. Bank CIMB Niaga juga mendokumentasikan penilaian apakah derivatif yang digunakan memiliki efektivitas yang tinggi dalam menandingi (off-setting) perubahan nilai wajar atau arus kas unsur yang dilindungi nilainya. Penilaian ini dilakukan baik pada saat permulaan lindung nilai maupun pada saat-saat berikutnya secara berkelanjutan. At the inception of transaction, Bank CIMB Niaga documents the relationship between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking various hedge transactions. This process includes linking all derivatives designated as hedges to specific assets and liabilities or specific firm commitments or forecast transactions. Bank CIMB Niaga also documents its assessment, as to whether the derivatives that are used in hedging transactions are highly effective in off-setting changes in fair values or cash flows of hedged items. This assessment is performed at the hedge inception and on an ongoing basis. Nilai wajar berbagai instrumen derivatif yang digunakan untuk tujuan lindung nilai dan mutasi pada cadangan lindung nilai di ekuitas diungkapkan dalam Catatan 11. The fair values of various derivative instruments used for hedging purposes and movements on the hedging reserve in equity are disclosed in Note 11. Halaman – 5/43– Page Annual Report CIMB NIAGA 2017 703
  704. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. KEBIJAKAN AKUNTANSI (lanjutan) n. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2. Instrumen keuangan derivatif dan lindung nilai (PSAK 55) (lanjutan) ACCOUNTING POLICIES (continued) n. Derivative financial instruments and hedging (SFAS 55) (continued) Akuntansi untuk aktivitas lindung nilai (lanjutan) Accounting for hedging activities (continued) (a) Lindung nilai atas nilai wajar (a) Fair value hedge Perubahan dari nilai wajar atas derivatif yang ditujukan dan memenuhi kualifikasi sebagai lindung nilai atas nilai wajar, diakui sebagai laba/rugi, termasuk dengan perubahan nilai wajar dari aset atau liabilitas yang dilindung nilai yang diatribusikan sebagai risiko yang dilindung nilai. Nilai bersih dimasukkan ke dalam bagian tidak efektif dalam keuntungan atau kerugian kontrak derivatif. Changes in the fair value of derivatives that are designated and qualified as fair value hedges are recognised as profit/loss, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. The net result is included as ineffectiveness in the gain or loss on derivative contracts. Ketika instrumen lindung nilai tidak lagi memenuhi kriteria lindung nilai secara akuntansi, perubahan nilai tercatat dari item yang dilindung nilai yang menggunakan metode suku bunga efektif, diamortisasi melalui laba/rugi selama periode hingga jatuh tempo dan dicatat sebagai beban bunga. If the hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged item for which the effective interest method used is amortised to profit/loss over the period to maturity and recorded as interest expense. (b) Lindung nilai atas arus kas (b) Cash flow hedge Bagian yang efektif atas perubahan nilai wajar derivatif yang ditujukan dan memenuhi kualifikasi sebagai lindung nilai arus kas, diakui sebagai cadangan lindung nilai arus kas pada bagian ekuitas. Keuntungan atau kerugian atas bagian yang tidak efektif diakui langsung sebagai laba/rugi. The effective portion of changes in the fair value of derivatives that are designated and qualified as cash flow hedges are recognised as hedging reserve in equity section. The gain or loss relating to the ineffective portion is recognised immediately as profit/loss. Jumlah akumulasi dalam ekuitas dibebankan sebagai pendapatan komprehensif lainnya ketika unsur yang dilindungi nilainya mempengaruhi laba bersih. Accumulated amounts in equity are reclassified as the other comprehensive income in the periods when the hedged item affects net income. Ketika instrumen lindung nilai kadaluwarsa atau dijual atau ketika suatu lindung nilai tidak lagi memenuhi persyaratan sebagai akuntansi lindung nilai, akumulasi keuntungan maupun kerugian yang ada pada ekuitas saat itu dibebankan sebagai laba/rugi. Ketika suatu transaksi lindung nilai diperkirakan tidak lagi mungkin terjadi, akumulasi keuntungan atau kerugian yang ada pada ekuitas saat itu dibebankan sebagai laba/rugi. When a hedging instrument expired or sold, or when a hedge no longer meets the criteria for hedge accounting, any existing cumulative gain or loss which remains in equity at that time is recognised as profit/loss. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately charged as profit/loss. Halaman – 5/44– Page 704 Annual Report CIMB NIAGA 2017
  705. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. KEBIJAKAN AKUNTANSI (lanjutan) o. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2. Kredit yang diberikan (PSAK 55) ACCOUNTING POLICIES (continued) o. Loans (SFAS 55) Kredit yang diberikan adalah penyediaan uang atau tagihan yang dapat disetarakan dengan kas, berdasarkan persetujuan atau kesepakatan pinjammeminjam dengan peminjam, mewajibkan pihak peminjam untuk melunasi hutang berikut bunganya setelah jangka waktu tertentu. Loans represent provision of cash or cash equivalent based on agreements with borrowers, where borrowers required to repay their debts with interest after specified periods. Kredit yang diberikan diklasifikasikan sebagai kredit yang diberikan dan piutang. Lihat Catatan 2f untuk kebijakan akuntansi atas kredit yang diberikan dan piutang. Loans are classified as loans and receivables. Refer to Note 2f for the accounting policy of loans and receivables. Termasuk dalam kredit yang diberikan adalah pembiayaan syariah yang terdiri dari piutang murabahah, piutang qardh, pembiayaan musyarakah, pembiayaan mudharabah, dan ijarah. Murabahah adalah akad jual beli barang dengan harga jual sebesar biaya perolehan ditambah keuntungan (marjin) yang disepakati dan penjual harus mengungkapkan biaya perolehan barang tersebut kepada pembeli. Qardh adalah akad pinjam meminjam dana tanpa imbalan dengan liabilitas pihak peminjam mengembalikan pokok pinjaman secara sekaligus atau cicilan dalam jangka waktu tertentu. Musyarakah adalah akad kerjasama antara dua pihak atau lebih untuk suatu usaha tertentu, dimana masing-masing pihak memberikan kontribusi dana dengan ketentuan bahwa keuntungan dibagi berdasarkan kesepakatan sedangkan kerugian berdasarkan porsi kontribusi dana. Dana tersebut meliputi kas atau aset nonkas yang diperkenankan oleh syariah. Mudharabah adalah akad kerjasama usaha antara Bank CIMB Niaga sebagai pemilik dana (shahibul maal) dan nasabah selaku pengelola dana (mudharib), menjalankan usaha dengan penentuan awal keuntungan atau kerugian (nisbah). Ijarah adalah akad sewa-menyewa antara pemilik (obyek sewa) dan penyewa untuk mendapatkan imbalan atas obyek sewa yang disewakannya. Loans include sharia financing which consist of murabahah receivables, qardh receivables, musyarakah financing, mudharabah financing, and ijarah. Murabahah is an agreement for the sale and purchase of goods with sales price equivalent to cost plus agreed margin, and the seller should inform the purchase cost to buyer. Qardh is a loan/borrowing funds without profit wherein the borrower return the principal of the loan at lump sum or on installment over certain period. Musyarakah is an agreement between investors (musyarakah partners) to have a join-venture in a partnership, at an agreed nisbah sharing portion, while losses will be proportionately distributed based on the capital contribution. These funds including cash or non-cash assets which are allowed by sharia. Mudharabah is an agreement between Bank CIMB Niaga as an owner of funds (shahibul maal) and customer as a fund manager (mudharib) to run a business with pre-defined terms of gain or loss (nisbah). Ijarah is a lease agreement between lessor and lessee to get margin from leased object. Halaman – 5/45– Page Annual Report CIMB NIAGA 2017 705
  706. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. KEBIJAKAN AKUNTANSI (lanjutan) o. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2. Kredit yang diberikan (PSAK 55) (lanjutan) ACCOUNTING POLICIES (continued) o. Loans (SFAS 55) (continued) Pembiayaan syariah disajikan sebesar jumlah pembiayaan dikurangi dengan cadangan kerugian penurunan nilai dengan jumlah minimum berdasarkan PBI No. 7/2/PBI/2005 tanggal 20 Januari 2005 tentang ”Penilaian Kualitas Aktiva Bank Umum” yang diubah dengan peraturan BI No. 8/2/PBI/2006 tanggal 30 Januari 2006 dan peraturan BI No. 9/6/PBI/2007 tanggal 30 Maret 2007 serta peraturan BI No. 11/2/PBI/2009 tanggal 29 Januari 2009 dan terakhir melalui peraturan BI No.14/15/PBI/2012 tanggal 24 Oktober 2012. Berlaku sejak Januari 2015, Otoritas Jasa Keuangan (OJK) menerbitkan peraturan OJK baru No.16/POJK.03/2014 tanggal 18 November 2014 dan Surat Edaran OJK No.8/SEOJK.03/2015 tanggal 10 Maret 2015 tentang Penilaian Kualitas Aset Bank Umum Syariah dan Unit Usaha Syariah. Sharia financing is stated at their outstanding balance less their allowance for impairment losses which have been determined using BI criteria in accordance with BI regulation No. 7/2/PBI/2005 dated 20 January 2005 on “Asset Quality Ratings for Commercial Banks” which was amended by BI regulation No. 8/2/PBI/2006 dated 30 January 2006 and BI regulation No. 9/6/PBI/2007 dated 30 March 2007 and BI regulation No.11/2/PBI/2009 dated 29 January 2009 and latest amended by BI regulation No.14/15/PBI/2012 dated 24 October 2012. Starting January 2015, Financial Services Authority (FSA) issued new regulation No.16/POJK.03/2014 dated 18 November 2014 and FSA Circular Letter No.8/SEOJK.03/2015 dated 10 March 2015 concerning Asset Quality Assessment on Sharia Bank and Sharia Business Unit. Pembiayaan syariah dengan akad Murabahah disajikan sebesar jumlah pembiayaan dikurangi cadangan kerugian penurunan nilai sesuai dengan PSAK 102 (2013) – Akuntansi Murabahah menggantikan PSAK 102 (2007). Sharia Financing with Murabahah agreement is stated at their outstanding balance less allowance for impairment losses as required by SFAS 102 (2013) – Accounting for Murabahah as amendment of SFAS 102 (2007). Restrukturisasi kredit meliputi modifikasi persyaratan kredit, konversi kredit menjadi saham atau instrumen keuangan lainnya dan/atau kombinasi dari keduanya. Loan restructuring may involve a modification of the terms of the loans, conversion of loans into equity or other financial instruments and/or a combination of both. Kredit yang direstrukturisasi disajikan sebesar nilai yang lebih rendah antara nilai tercatat kredit pada tanggal restrukturisasi atau nilai tunai penerimaan kas masa depan setelah restrukturisasi. Kerugian akibat selisih antara nilai tercatat kredit pada tanggal restrukturisasi dengan nilai tunai penerimaan kas masa depan setelah restrukturisasi diakui sebagai laba/rugi. Setelah restrukturisasi, semua penerimaan kas masa depan yang ditetapkan dalam persyaratan baru dicatat sebagai pengembalian pokok kredit yang diberikan dan pendapatan bunga sesuai dengan syarat-syarat restrukturisasi. Restructured loans are stated at the lower of carrying value of the loan at the time of restructuring or net present value of the total future cash receipts after restructuring. Losses arising from any excess of the carrying value of the loan at the time of restructuring over the net present value of the total future cash receipts after restructuring are recognised as profit/loss. Thereafter, all cash receipts under the new terms shall be accounted for as the recovery of principal and interest revenue, in accordance with the restructuring scheme. Halaman – 5/46– Page 706 Annual Report CIMB NIAGA 2017
  707. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. KEBIJAKAN AKUNTANSI (lanjutan) p. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2. Piutang pembiayaan konsumen (PSAK 55) ACCOUNTING POLICIES (continued) p. Consumer financing receivables (SFAS 55) Piutang pembiayaan konsumen Entitas Anak diklasifikasikan sebagai kredit yang diberikan dan piutang. Lihat Catatan 2f untuk kebijakan akuntansi atas kredit yang diberikan dan piutang. The Subsidiary’ consumer financing receivables are classified as loans and receivables. Refer to Note 2f for the accounting policy of loans and receivables. Pada saat pengakuan awal, piutang pembiayaan konsumen diukur pada nilai wajar atau nilai wajar ditambah/dikurangi biaya dan pendapatan transaksi. Pada saat pengakuan awal, nilai wajar pembiayaan konsumen merupakan jumlah piutang dikurangi pendapatan yang ditangguhkan. Consumer financing receivables are initially measured at fair value or fair value plus/minus transaction costs and income. At initial recognition, the fair value of consumer financing receivable represents the receivable deducted by unearned income. Selanjutnya, piutang pembiayaan konsumen diukur dengan biaya perolehan diamortisasi menggunakan metode suku bunga efektif setelah dikurangi dengan pendapatan yang ditangguhkan dan cadangan kerugian penurunan nilai. Subsequently, consumer financing receivables is measured at amortised cost using the effective interest rate method net of unearned income on consumer financing and allowance for impairment losses. Pendapatan pembiayaan konsumen Entitas Anak yang belum diakui merupakan selisih antara jumlah keseluruhan pembayaran angsuran yang akan diterima dari konsumen dan jumlah pokok pembiayaan, yang diakui sebagai penghasilan sepanjang jangka waktu kontrak berdasarkan suatu tarif pengembalian menurut kontrak yang dihitung secara berkala atas nilai investasi bersih terhitung sejak pembiayaan konsumen dilakukan. The Subsidiary’ unearned consumer financing income is the difference between total installments to be received from customers and total financing which is recognised as earned income over the term of the contract based on a contract rate of return on the net investment commencing at the time the consumer financing is executed. Penyelesaian kontrak sebelum masa pembiayaan konsumen berakhir diperlakukan sebagai pembatalan kontrak pembiayaan konsumen dan keuntungan atau kerugian yang timbul diakui sebagai laba/rugi periode berjalan. Early termination is treated as a cancellation of an existing contract and the resulting gain or loss is charged as current period profit/loss. Dalam pembiayaan bersama, Entitas Anak berhak menentukan tingkat bunga yang lebih tinggi kepada konsumen dibandingkan dengan tingkat bunga yang ditetapkan dalam perjanjian pembiayaan bersama dengan penyedia fasilitas pembiayaan bersama. For joint financing agreements, the Subsidiary has the right to set higher interest rate to the consumer than stated in the joint financing agreement with the joint financing provider. Piutang pembiayaan bersama “without recourse” disajikan di laporan posisi keuangan konsolidasian secara bersih. Pendapatan pembiayaan konsumen dan beban bunga yang terkait dengan pembiayaan bersama “without recourse” disajikan secara bersih sebagai laba/rugi. Joint financing receivables without recourse are presented on a net basis in the consolidated statement of financial position. Consumer financing income and interest expenses related to joint financing without recourse are presented on a net basis as profit/loss. Halaman – 5/47– Page Annual Report CIMB NIAGA 2017 707
  708. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2. 2. KEBIJAKAN AKUNTANSI (lanjutan) p. Piutang pembiayaan (lanjutan) konsumen (PSAK 55) ACCOUNTING POLICIES (continued) p. Jaminan kendaraan yang dikuasai kembali oleh Entitas Anak dinyatakan berdasarkan nilai terendah antara nilai tercatat piutang pembiayaan konsumen atau nilai realisasi bersih. Selisih antara nilai tercatat dan nilai realisasi bersih dicatat sebagai cadangan kerugian penurunan nilai dan dibebankan sebagai laba/rugi. Dalam upaya penyelesaian piutang, konsumen memberi kuasa kepada Entitas Anak untuk menjual kendaraan ataupun melakukan tindakan lainnya bila terjadi wanprestasi terhadap perjanjian pembiayaan. Jika harga jual jaminan kendaraan lebih rendah dibandingkan dengan nilai saldo piutang pembiayaan, maka selisih tersebut dibebankan sebagai laba/rugi. Apabila harga jual jaminan kendaraan lebih tinggi dibandingkan dengan nilai saldo piutang pembiayaan, maka selisih tersebut akan dikembalikan kepada konsumen. q. Piutang sewa pembiayaan (PSAK 55) Consumer financing receivables (SFAS 55) (continued) Net realisable value of repossessed vehicle obtained by the subsidiary are stated at the lower of related consumer financing receivables’ carrying value or net realisable value of the repossessed assets. The difference between the carrying value and net realisable value is recorded as allowance for impairment losses and is charged as profit/loss. In case of default, the consumer gives the right to the Subsidiary to sell repossessed assets or take any other actions to settle the outstanding consumer financing receivables. If the sale price of the repossessed vehicles is lower compared to the consumer financing receivable, then the difference is charged as profit/loss. If the sale price of the repossessed vehicles is higher compared to the consumer financing receivable, then the difference will be paid back to the consumers. q. Financing lease receivables (SFAS 55) Piutang sewa pembiayaan Entitas Anak diklasifikasikan sebagai kredit yang diberikan dan piutang. Lihat Catatan 2f untuk kebijakan akuntansi atas kredit yang diberikan dan piutang. The Subsidiary’ financing lease receivables are classified as loans and receivables. Refer to Note 2f for the accounting policy of loans and receivables. Pada saat pengakuan awal, piutang sewa pembiayaan diukur pada nilai wajar atau nilai wajar ditambah/dikurangi biaya dan pendapatan transaksi. Selanjutnya, piutang sewa pembiayaan diukur dengan biaya perolehan diamortisasi menggunakan metode suku bunga efektif. Pendapatan sewa pembiayaan yang belum diakui merupakan selisih antara jumlah keseluruhan pembayaran angsuran yang akan diterima dengan jumlah pokok pembiayaan yang akan diakui sebagai penghasilan sesuai dengan jangka waktu kontrak dengan menggunakan metode tingkat suku bunga efektif. Financing lease receivables are initially measured at fair value or fair value plus/minus transaction costs and transaction income. Subsequently, financing lease receivable is measured at amortised cost using the effective interest rate method. Unearned lease income is the difference between total installments to be received and total financing which is recognised as income over the term of the contract using effective interest rate. Kontrak sewa pembiayaan yang dilakukan Entitas Anak dikategorikan sebagai ‘direct financing lease’ dan pendapatan sewa pembiayaan tersebut dilaporkan menurut metode pembiayaan. Dengan metode ini, kelebihan dari piutang sewa pembiayaan dan nilai sisa yang terjamin atas harga perolehan aset yang bersangkutan dicatat sebagai pendapatan sewa pembiayaan yang ditangguhkan, yang akan diakui sebagai pendapatan sesuai dengan jangka waktu kontrak sewa pembiayaan berdasarkan suatu tarif pengembalian konstan berkala atas nilai investasi bersih terhitung sejak sewa pembiayaan tersebut ditandatangani. The lease contracts entered into by the Subsidiary are classified as direct financing leases and accordingly lease income is reported under the financing method. Under this method, the excess of gross lease receivables plus guaranteed residual value of the assets is recorded as unearned lease income, which is recognised as lease income over the term of the lease contracts at a constant periodic rate of return on the investment commencing in the month of the lease contract is executed. Halaman – 5/48– Page 708 Annual Report CIMB NIAGA 2017
  709. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2. 2. KEBIJAKAN AKUNTANSI (lanjutan) r. s. t. Tagihan dan liabilitas akseptasi (PSAK 55) ACCOUNTING POLICIES (continued) r. Acceptance receivables and payables (SFAS 55) Tagihan akseptasi diklasifikasikan sebagai kredit yang diberikan dan piutang. Lihat Catatan 2f untuk kebijakan akuntansi atas kredit yang diberikan dan piutang. Acceptance receivables are classified as loans and receivables. Refer to Note 2f for the accounting policy of loans and receivables. Liabilitas akseptasi diklasifikasikan sebagai liabilitas keuangan yang diukur dengan biaya perolehan diamortisasi. Lihat Catatan 2f untuk kebijakan akuntansi atas liabilitas keuangan yang diukur dengan biaya perolehan diamortisasi. Acceptance payables are classified as financial liabilities at amortised cost. Refer to Note 2f for the accounting policy for financial liabilities are measured at amortised cost. Penyertaan (PSAK 15) s. Investments (SFAS 15) Penyertaan pada entitas di mana Bank memiliki saham berhak suara kurang dari 20% dicatat dengan metode biaya. Investment in companies in which the Bank has the voting rights less than 20% are accounted for using the cost method. Dengan metode ini, investasi hanya dinyatakan sebesar biaya perolehan, tanpa dipengaruhi oleh bagian Bank atas laba bersih entitas asosiasi dan dividen kas yang diterima. Accordingly, the carrying value of investment is not affected by the Bank's share in the net earnings/(losses) of the associates and cash dividend received. Dividen kas yang diterima atas investasi dalam saham diakui sebagai pendapatan. Cash dividend received from investment in shares is recognized as income. Aset tetap dan penyusutan (PSAK 16) t. Fixed assets and depreciation (SFAS 16) Pada tanggal 1 Januari 2016, Bank CIMB Niaga melakukan perubahan kebijakan akuntansi atas tanah dan bangunan dari model biaya menjadi model revaluasi. On 1 January 2016, Bank CIMB Niaga changed its accounting policies of land and buildings from cost model to revaluation model. Tanah dan bangunan disajikan sebesar nilai wajar, dikurangi akumulasi penyusutan untuk bangunan dan akumulasi rugi penurunan nilai (jika ada). Penilaian terhadap tanah dan bangunan dilakukan oleh penilai independen eksternal. Penilaian atas aset tersebut dilakukan secara berkala (setiap 3 - 5 tahun) untuk memastikan bahwa nilai wajar aset yang direvaluasi tidak berbeda secara material dengan nilai tercatatnya. Akumulasi penyusutan pada tanggal revaluasi dieliminasi terhadap nilai tercatat bruto aset dan nilai netonya disajikan kembali sebesar nilai revaluasian aset tetap. Land and buildings are presented at fair value less accumulated depreciation for buildings and accumulated impairment loss (if any). Valuation of land and buildings are performed by certified external independent valuers. Valuations are performed with sufficient regularity (every 3 - 5 years) to ensure that the fair value of revalued asset does not differ materially from its carrying amount. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset, and the net amount is restated to the revalued amount of the asset. Selisih penilaian kembali aset tetap dikreditkan ke akun “cadangan revaluasi aset tetap” yang disajikan pada bagian ekuitas. Surplus revaluasi aset tetap selanjutnya dialihkan kepada saldo laba saat aset tersebut dihentikan pengakuannya. The difference resulting from the revaluation of such fixed assets is credited to the “reserve on revaluation of fixed asset” account presented in the equity section. The revaluation surplus of fixed assets is transferred directly to retained earnings when the asset is derecognised. Halaman – 5/49– Page Annual Report CIMB NIAGA 2017 709
  710. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2. 2. KEBIJAKAN AKUNTANSI (lanjutan) t. Aset tetap dan penyusutan (PSAK 16) (lanjutan) ACCOUNTING POLICIES (continued) t. Fixed assets (continued) and depreciation (SFAS Aset tetap, selain tanah dan bangunan, diakui sebesar harga perolehan setelah dikurangi akumulasi penyusutan. Fixed assets besides land and buildings are recognised at cost less accumulated depreciation. Harga perolehan mencakup semua pengeluaran yang terkait secara langsung dengan perolehan aset tetap. Historical cost includes expenditure that is directly attributable to the acquisition of fixed assets. Tanah tidak disusutkan. Land is not depreciated. Penyusutan aset tetap selain tanah dihitung dengan menggunakan metode garis lurus untuk mengalokasikan harga perolehan atau nilai setelah penilaian kembali mencapai nilai sisa sepanjang estimasi masa manfaatnya sebagai berikut: Depreciation on fixed assets other than land are calculated on the straight-line method to allocate their cost or revalued amount to their residual values over their estimated useful lives as follows: Bangunan Renovasi bangunan milik sendiri Instalasi (listrik, penyejuk udara, telepon, telex) Perlengkapan dan perabot kantor Kendaraan bermotor Anjungan Tunai Mandiri (ATM) Tahun/Years 20 5 5 5 8 10 Buildings Renovation of owned buildings Installations (electricity, air conditioning, telephone, telex) Office equipment and furniture Motor vehicle Automatic Teller Machines (ATMs) Apabila nilai tercatat aset lebih besar dari nilai yang dapat diperoleh kembali, nilai tercatat aset diturunkan menjadi sebesar nilai yang dapat diperoleh kembali, dengan menggunakan nilai tertinggi antara harga jual neto dan nilai pakai. When the carrying amount of an asset is greater than its estimated recoverable amount, it is written down immediately to its recoverable amount, which is determined as the higher of net selling price or value in use. Apabila aset tetap tidak digunakan lagi atau dijual, maka nilai perolehan dan akumulasi penyusutannya dihapuskan dari laporan keuangan konsolidasian. Keuntungan atau kerugian yang terjadi, diakui sebagai laba/rugi periode terjadinya. When assets are retired or disposed, their costs and the related accumulated depreciation are eliminated from the consolidated financial statements. The resulting gains or losses are recognised as related period’s profit/loss. Biaya pemeliharaan dan perbaikan dicatat sebagai beban pada saat terjadinya. Pengeluaran yang memperpanjang masa manfaat aset dikapitalisasi dan disusutkan. Maintenance and repair cost are charged as an expense when incurred. Expenditure that extends the useful life of assets is capitalised and depreciated. Aset dalam pembangunan merupakan aset yang masih dalam proses pembangunan dan belum siap untuk digunakan, serta dimaksudkan untuk dipergunakan dalam kegiatan usaha. Aset ini dicatat sebesar biaya yang telah dikeluarkan. Construction in progress consist of assets that are still in progress of construction and not yet ready for use and are intended to be used in business activity. This account is recorded based on the amount paid. Halaman – 5/50– Page 710 16) Annual Report CIMB NIAGA 2017
  711. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. KEBIJAKAN AKUNTANSI (lanjutan) u. v. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2. Aset tidak berwujud (PSAK 19) ACCOUNTING POLICIES (continued) u. Intangible Assets (SFAS 19) Aset tidak berwujud diakui jika, dan hanya jika, biaya perolehan aset tersebut dapat diukur secara andal dan kemungkinan besar Bank akan memperoleh manfaat ekonomis masa depan dari aset tersebut. Aset tidak berwujud terdiri dari perangkat lunak yang dibeli Bank. Intangible assets are recognized if, and if only when its cost can be measured reliably and it is probable that expected future benefits that are attributable to it will flow to the Bank. Intangible assets consist of computer software that are purchased by the Bank. Perangkat lunak yang dibeli oleh Bank dicatat sebesar biaya perolehan dikurangi akumulasi amortisasi. Metode amortisasi, estimasi masa manfaat dan nilai residual ditelaah pada setiap akhir tahun pelaporan dan disesuaikan jika dianggap tepat. Masa manfaat perangkat lunak adalah lima hingga lima belas tahun. Metode amortisasi yang digunakan adalah garis lurus. Software purchased by the Bank is recorded at cost less accumulated amortization. Amortization method, estimated useful life and residual value is reviewed at end of reporting period and adjusted if necessary. The useful lives of software is between five to fifteen years. The amortisation method used is straight line method. Tidak terdapat aset tidak berwujud yang tidak dapat diestimasi umur ekonomisnya. There are no intangible assets which its economic life can not be estimated. Aset yang diambil alih v. Foreclosed assets Aset yang diambil alih (AYDA) adalah aset yang diperoleh Bank CIMB Niaga dan Entitas Anak, baik melalui pelelangan maupun diluar pelelangan berdasarkan penyerahan secara sukarela oleh pemilik agunan atau berdasarkan kuasa untuk menjual diluar lelang dari pemilik agunan dalam hal debitur tidak memenuhi kewajibannya kepada Bank CIMB Niaga dan Entitas Anak. AYDA merupakan jaminan kredit yang diberikan yang telah diambil alih sebagai bagian dari penyelesaian kredit yang diberikan. Bank CIMB Niaga dan Entitas Anak memiliki kebijakan untuk selalu berusaha menjual AYDA untuk menyelesaikan sisa kewajiban debitur. Foreclosed assets represent assets acquired by Bank CIMB Niaga and Subsidiary, both from auction and non-auction based on voluntary transfer by the debtors or based on debtors’ approval to sell the collateral where the debtors could not fulfill their obligations to Bank CIMB Niaga and Subsidiary. Foreclosed assets represent loan collateral acquired in settlement of loans. Bank CIMB Niaga and Subsidiary has policy to sell foreclosed assets to settle debtors’ liabilities. AYDA diakui sebesar nilai bersih yang dapat direalisasi (net realisable value), yaitu nilai wajar agunan setelah dikurangi estimasi biaya pelepasan. Kelebihan saldo kredit yang diberikan yang belum dilunasi oleh peminjam di atas nilai dari AYDA, dibebankan terhadap cadangan kerugian penurunan nilai kredit yang diberikan. Foreclosed assets are recognised at their net realisable value. Net realisable value is the fair value of the foreclosed assets less estimated cost of liquidating the foreclosed assets. Any excess of the loan balance over the value of the foreclosed assets, which is not recoverable from the borrower, is charged to the allowance for impairment losses of loans and receivables. Biaya pemeliharaan atas AYDA yang terjadi setelah pengambilalihan atau akuisisi aset dibebankan sebagai laba/rugi pada saat terjadinya. Keuntungan atau kerugian dari penjualan aset yang diambil alih diakui sebagai laba/rugi periode berjalan. Holding costs of foreclosed assets subsequent to the foreclosure or acquisition of the assets are charged as current year profit/loss as incurred. Gains or losses from sale of foreclosed assets are charged as current period profit/loss as incurred. Halaman – 5/51– Page Annual Report CIMB NIAGA 2017 711
  712. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. KEBIJAKAN AKUNTANSI (lanjutan) 2. w. Beban dibayar dimuka dan aset lain-lain (PSAK 55) x. y. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) ACCOUNTING POLICIES (continued) w. Prepaid expenses and other assets (SFAS 55) Beban dibayar dimuka merupakan pembayaran kepada pihak lain yang telah dilakukan namun belum merupakan beban pada saat pembayaran dilakukan. Beban dibayar dimuka akan digunakan untuk aktivitas Bank CIMB Niaga dan Entitas Anak di masa mendatang. Beban dibayar dimuka akan diakui sebagai beban pada saat diamortisasi sesuai dengan masa manfaatnya. Prepaid expenses are payments made to other parties but have not been recognised as expense at the time of payment. Prepaid expenses will be used for Bank CIMB Niaga’s and Subsidiary activities in the future. Prepaid expenses are recognised as expenses during the amortisation in accordance with the expected period of benefit. Termasuk dalam beban dibayar dimuka adalah beban asuransi dan beban sewa ditangguhkan. Beban sewa ditangguhkan merupakan pembayaran dimuka terkait sewa gedung kantor yang diamortisasi selama masa sewa dan dimulai sejak gedung digunakan. Included in prepaid expenses are insurance expense and deferred rental cost. Deferred rental cost is advance payment for rent of office building which will be amortised for rental period when building is in use. Termasuk di dalam aset lain-lain antara lain adalah jaminan keanggotaan dan uang muka jaminan. Included in other assets are amongst others security and membership deposits. Jaminan keanggotaan dan uang muka jaminan dicatat sebesar harga perolehan dan diamortisasi berdasarkan masa berlakunya. Security and membership deposits are recorded based on cost and amortised based on the expected period of benefit. Liabilitas segera (PSAK 55) x. Obligations due immediately (SFAS 55) Liabilitas segera adalah liabilitas Bank kepada pihak lain yang sifatnya wajib segera dibayarkan sesuai perjanjian yang ditetapkan sebelumnya. Obligations due immediately represent Bank liabilities to other parties that immediately paid in accordance with terms of the relevant agreements. Liabilitas segera disajikan sebesar biaya perolehan yang diamortisasi. Lihat Catatan 2f untuk kebijakan akuntansi atas liabilitas keuangan yang diukur dengan biaya perolehan diamortisasi. Obligations due immediately are presented at the amortised cost. Refer to Note 2f for the accounting policy for financial liabilities measured at amortised cost. Simpanan nasabah dan simpanan dari bank lain (PSAK 55) y. Deposits from customers and deposits from other banks (SFAS 55) Simpanan nasabah adalah dana yang dipercayakan oleh masyarakat (selain bank) kepada Bank CIMB Niaga berdasarkan perjanjian penyimpanan dana. Termasuk dalam pos ini adalah giro, tabungan, deposito berjangka, sertifikat deposito dan bentuk lain yang dapat dipersamakan dengan itu. Deposits from customers are the funds placed by customers (excluding banks) with Bank CIMB Niaga based on fund deposit agreements. Included in this account are demand deposits, saving deposits, time deposits, certificates of deposits, and other forms which are similar. Simpanan dari bank lain terdiri dari liabilitas terhadap bank lain, baik di dalam maupun luar negeri, dalam bentuk giro, interbank call money, deposito berjangka, dan sertifikat deposito. Deposits from other banks represent liabilities to domestic and overseas banks, in the form of demand deposits, inter-bank call money, time deposits, and certificates of deposit. Simpanan dari nasabah dan dari bank lain diklasifikasikan sebagai liabilitas keuangan yang diukur dengan biaya perolehan diamortisasi. Lihat Catatan 2f untuk kebijakan akuntansi atas liabilitas keuangan yang diukur dengan biaya perolehan diamortisasi. Deposits from customers and other banks are classified as financial liabilities measured at amortised cost. Refer to Note 2f for the accounting policy for financial liabilities measured at amortised cost. Halaman – 5/52– Page 712 Annual Report CIMB NIAGA 2017
  713. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. KEBIJAKAN AKUNTANSI (lanjutan) z. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2. Efek-efek yang diterbitkan (PSAK 55) ACCOUNTING POLICIES (continued) z. Marketable securities issued (SFAS 55) Efek-efek yang diterbitkan adalah obligasi yang diterbitkan dan diklasifikasikan sebagai liabilitas keuangan yang diukur dengan biaya perolehan diamortisasi (lihat Catatan 2f untuk kebijakan akuntansi atas liabilitas keuangan yang diukur dengan biaya perolehan diamortisasi). Marketable securities issued is the issuance of bond which is classified as financial liabilities measured at amortised cost (refer to Note 2f for the accounting policy for financial liabilities at amortised cost). Biaya transaksi yang timbul sehubungan dengan penerbitan efek-efek dikurangkan dari hasil penerbitan efek-efek bersangkutan. Selisih antara hasil emisi bersih dengan nilai nominal obligasi diakui sebagai diskonto yang diamortisasi selama umur obligasi. Transaction cost in relation with the marketable securities issued is deducted from the related marketable securities issued. Any difference between bond issuance costs and nominal of bond is recognised as discount and will be amortised based on bond’s period. aa. Pinjaman yang diterima dan pinjaman subordinasi (PSAK 55) aa. Borrowings and subordinated loans (SFAS 55) Pinjaman yang diterima termasuk pinjaman yang diterima Entitas Anak dari berbagai bank dan institusi keuangan, termasuk fasilitas joint financing. Fasilitas joint financing with recourse oleh Entitas Anak disajikan secara gross, yaitu sebanyak kredit yang diberikan kepada konsumen dan pinjaman yang diterima dari bank dicatat dalam nilai secara penuh. Borrowings include borrowings received by Subsidiary from various banks and financial institutions, including joint financing facilities. Joint financing facilities with recourse by Subsidiary are presented gross, i.e. loans granted to customers and borrowings received from banks are recorded at their full amount. Pada pengukuran awal pinjaman diterima dan pinjaman subordinasi disajikan sebesar nilai wajar dikurangi dengan biaya transaksi yang dapat diatribusikan langsung dengan perolehan/penerbitan pinjaman dan obligasi subordinasi. Borrowings and subordinated loans are initially presented at fair value less directly attributable transaction costs. Pinjaman yang diterima dan pinjaman subordinasi diklasifikasikan sebagai liabilitas keuangan yang diukur dengan biaya perolehan diamortisasi (lihat Catatan 2f untuk kebijakan akuntansi atas liabilitas keuangan yang diukur dengan biaya perolehan diamortisasi). Borrowings and subordinated loans are classified as financial liabilities measured at amortised cost (refer to Note 2f for the accounting policy for financial liabilities measured at amortised cost). ab. Pendapatan dan beban bunga (PSAK 55) ab. Interest income and expense (SFAS 55) Pendapatan dan beban bunga untuk semua instrumen keuangan dengan interest bearing dicatat dalam pendapatan bunga dan beban bunga menggunakan metode suku bunga efektif. Interest income and expense for all interest bearing financial instruments are recorded within interest income and interest expense using the effective interest rate method. Metode suku bunga efektif adalah metode yang digunakan untuk menghitung biaya perolehan diamortisasi dari aset keuangan atau liabilitas keuangan dan metode untuk mengalokasikan pendapatan bunga atau beban bunga selama periode yang relevan. The effective interest rate method is a method of calculating the amortised cost of a financial asset or a financial liability and method of allocating the interest income or interest expense over the relevant period. Halaman – 5/53– Page Annual Report CIMB NIAGA 2017 713
  714. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2. 2. KEBIJAKAN AKUNTANSI (lanjutan) ab. Pendapatan dan beban bunga (PSAK 55) (lanjutan) ACCOUNTING POLICIES (continued) ab. Interest income and expense (SFAS 55) (continued) Suku bunga efektif adalah suku bunga yang secara tepat mendiskontokan estimasi pembayaran atau penerimaan kas di masa datang selama perkiraan umur dari instrumen keuangan, atau bilamana tepat, digunakan periode yang lebih singkat untuk memperoleh nilai tercatat bersih dari aset keuangan atau liabilitas keuangan. Pada saat menghitung suku bunga efektif, Bank dan Entitas Anak mengestimasi arus kas dengan mempertimbangkan seluruh persyaratan kontraktual dalam instrumen keuangan tersebut seperti pelunasan dipercepat, opsi beli (call option), dan opsi serupa lainnya, namun tidak mempertimbangkan kerugian kredit di masa datang. Perhitungan ini mencakup seluruh komisi, provisi, dan bentuk lain yang dibayarkan atau diterima oleh para pihak dalam kontrak yang merupakan bagian tak terpisahkan dari suku bunga efektif, biaya transaksi, dan seluruh premi atau diskon lainnya. The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument or, when appropriate, a shorter period to the net carrying amount of the financial asset or financial liability. When calculating the effective interest rate, Bank and Subsidiary estimates cash flows considering all contractual terms of the financial instrument for example, prepayment options, call option, and other similar options, but does not consider future credit losses. The calculation includes all fees, commissions, and other fees paid or received between parties to the contract that are an integral part of the effective interest rate, transaction costs, and all other premiums or discounts. Jika aset keuangan atau kelompok aset keuangan serupa telah diturunkan nilainya sebagai akibat kerugian penurunan nilai, maka pendapatan bunga yang diperoleh setelahnya diakui atas bagian aset keuangan yang tidak mengalami penurunan nilai, berdasarkan suku bunga yang digunakan untuk mendiskonto arus kas masa datang dalam menghitung kerugian penurunan nilai. Once a financial asset or a group of similar financial assets has been written impaired down as a result of an impairment loss, interest income is recognised on the unimpaired portion using the rate of interest used to discount the future cash flows for the purpose of measuring the impairment loss. Pendapatan bunga dan beban bunga berdasarkan metode suku bunga efektif. diakui Interest income and expense are recognised using effective interest rate method. Pendapatan bunga atas kredit yang diberikan atau aset produktif lainnya yang diklasifikasikan sebagai bermasalah diakui pada saat pendapatan tersebut diterima. Pada saat aset keuangan diklasifikasikan sebagai bermasalah, bunga yang telah diakui tetapi belum akan dibatalkan pengakuannya. Selanjutnya bunga yang dibatalkan tersebut diakui sebagai tagihan kontinjensi. Interest income on loans or other earning assets that classified as non-performing is recognised at the time the interest is received. When a financial asset is classified as non-performing, any interest income previously recognised but not yet collected is reversed against interest income. The reversed interest income is recognised as a contingent receivable. Pendapatan syariah terdiri dari keuntungan murabahah, pendapatan ijarah muntahiyah bittamlik bagi hasil pembiayaan mudharabah dan musyarakah serta pendapatan qardh. Share income represents profit from murabahah, ijarah muntahiyah bittamlik, mudharabah and musyarakah financing profit sharing income and qardh income. Halaman – 5/54– Page 714 Annual Report CIMB NIAGA 2017
  715. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2. 2. KEBIJAKAN AKUNTANSI (lanjutan) ab. Pendapatan dan beban bunga (PSAK 55) (lanjutan) ACCOUNTING POLICIES (continued) ab. Interest income and expense (SFAS 55) (continued) Keuntungan murabahah dan pendapatan ijarah muntahiyah bittamlik diakui selama periode akad berdasarkan konsep akrual. Pendapatan bagi hasil pembiayaan mudharabah dan musyarakah diakui pada saat diterima atau dalam periode terjadinya hak bagi hasil sesuai porsi bagi hasil (nisbah) yang disepakati. Pendapatan dari qardh diakui pada saat dietrima. Murabahah and ijarah muntahiyah bittamlik income is recognised over the period of the agreement based on accrual basis. Mudharabah and musyarakah income is recognised when cash is received or in a period where the right of revenue sharing is due based on agreed option. Qardh income is recognised upon receipt. Hak pihak ketiga atas bagi hasil milik nasabah didasarkan pada prinsip mudharabah. Pendapatan yang dibagikan adalah pendapatan yang telah diterima. Pembagian laba dilakukan berdasarkan prinsip bagi hasil yaitu dihitung dari pendapatan yang diterima berupa laba bruto (gross profit margin). Third parties share on the return of fund owner’s share is based on the principle of Mudharabah. The profit sharing is determined on a cash basis. Distribution of profit sharing is based on profit sharing principle which calculated from the UUS’s gross profit. ac. Pendapatan provisi dan komisi (PSAK 23) ac. Fees and commissions income (SFAS 23) Provisi dan komisi yang berkaitan langsung dengan kegiatan pemberian kredit diakui sebagai bagian/(pengurang) dari biaya perolehan kredit dan akan diakui sebagai pendapatan bunga dengan cara diamortisasi berdasarkan metode suku bunga efektif. Fees and commissions income directly related to lending activities, are recognised as a part/(deduction) of credit acouisition cost and will be recognised as interest income by amortising the carrying value of loan with effective interest rate method. Pendapatan provisi dan komisi yang tidak berkaitan dengan kegiatan pemberian kredit atas suatu jangka waktu diakui sebagai pendapatan pada saat terjadinya transaksi sebagai pendapatan operasional lainnya. Fees and commissions income which are not related to lending activities on a specific period are recognised as revenues on the transaction date as other operating income. ad. Pendapatan dan beban operasional lainnya (PSAK 23) ad. Other operating income and expenses (SFAS 23) Beban tenaga kerja Personnel expenses Beban tenaga kerja meliputi beban berupa gaji karyawan, bonus, lembur, tunjangan, dan pelatihan. Personnel expenses include expenses related with salaries for employees, bonuses, overtime, allowances, and training. Beban umum dan administrasi General and administrative expenses Beban umum dan administrasi merupakan beban yang timbul sehubungan dengan aktivitas kantor dan operasional Bank CIMB Niaga dan Entitas Anak. General and administrative expenses represent expenses which related to office activities and Bank CIMB Niaga and Subsidiary’ operational activities. Seluruh pendapatan dan beban yang terjadi dibebankan sebagai laba/rugi pada saat terjadinya. All of these income and expenses are recorded as profit/loss when incurred. Halaman – 5/55– Page Annual Report CIMB NIAGA 2017 715
  716. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2. 2. KEBIJAKAN AKUNTANSI (lanjutan) ae. Perpajakan (PSAK 46) ACCOUNTING POLICIES (continued) ae. Taxation (SFAS 46) Beban pajak terdiri dari pajak kini dan pajak tangguhan. Pajak diakui dalam laporan laba rugi konsolidasian, kecuali jika pajak tersebut terkait dengan transaksi atau kejadian yang diakui ke pendapatan komprehensif lain atau langsung diakui ke ekuitas. Dalam hal ini, pajak tersebut masing-masing diakui dalam pendapatan komprehensif lain atau ekuitas. The tax expense comprises current and deferred tax. Tax is recognised in the consolidated statement of income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively. Bank dan Entitas Anak mengevaluasi secara periodik implementasi terhadap peraturan perpajakan yang berlaku terutama yang memerlukan interpretasi lebih lanjut mengenai pelaksanaannya termasuk juga evaluasi terhadap surat ketetapan pajak yang diterima dari kantor pajak. Jika perlu, manajemen menentukan provisi berdasarkan jumlah yang diharapkan akan dibayar kepada otoritas pajak. The Bank periodically evaluates the implementation of prevailing tax regulations especially those that are subject to further interpretation on its implementation, including evaluation on tax assessment letters received from tax authorities. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities. Pajak penghasilan tangguhan disajikan dengan menggunakan metode balance sheet liabilitas. Pajak penghasilan tangguhan timbul akibat perbedaan temporer antara aset dan liabilitas menurut ketentuanketentuan pajak dengan nilai tercatat aset dan liabilitas dalam laporan keuangan konsolidasian. Tarif pajak yang berlaku atau yang secara substansial telah berlaku digunakan dalam menentukan besarnya jumlah pajak penghasilan tangguhan. Deferred income tax is provided, using the balance sheet liability method. Deferred income tax on temporary differences arising between the tax base of assets and liabilities and their carrying amounts in the consolidated financial statements. Currently enacted or substantially enacted tax rates are used in the determination of deferred income tax. Aset pajak tangguhan diakui apabila terdapat kemungkinan besar bahwa jumlah laba fiskal di masa mendatang akan memadai untuk mengkompensasi perbedaan temporer yang menimbulkan aset pajak tangguhan tersebut. Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. Koreksi terhadap liabilitas perpajakan dicatat pada saat diterimanya surat ketetapan, atau apabila dilakukan banding, ketika hasil banding sudah ditetapkan. Corrections to taxation obligations are recorded when an assessment letter is received, or if appealed against, when the results of the appeal have been determined. Taksiran pajak penghasilan Bank dan Entitas Anak dihitung untuk masing-masing perusahaan sebagai badan hukum terpisah. Aset pajak kini (current tax assets) dan liabilitas pajak kini (current tax liabilities) untuk badan hukum yang berbeda tidak disalinghapuskan dalam laporan keuangan konsolidasian. Utang pajak penghasilan badan dan utang pajak lainnya Bank dan Entitas Anak disajikan sebagai “Utang pajak” di laporan posisi keuangan konsolidasian. Aset pajak tangguhan disajikan bersih setelah dikurangi dengan liabilitas pajak tangguhan di laporan posisi keuangan konsolidasian. The estimated corporate income tax of the Bank and Subsidiary is calculated for each company as a separate legal entity. Current tax assets and current tax liabilities for different legal entities can not be setoff in the consolidated financial statements. Corporate tax payables and other tax payables of the Bank and Subsidiary are presented as “Taxes payable” in the consolidated statement of financial position. Deferred tax assets are presented net of deferred tax liabilities in the consolidated statements of financial position. Halaman – 5/56– Page 716 Annual Report CIMB NIAGA 2017
  717. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2. 2. KEBIJAKAN AKUNTANSI (lanjutan) af. Imbalan kerja (PSAK 24) ACCOUNTING POLICIES (continued) af. Employee benefits (SFAS 24) Liabilitas pensiun Pension obligations Bank CIMB Niaga dan Entitas Anak memiliki programprogram pensiun sesuai dengan peraturan dan perundang-undangan yang berhubungan dengan ketenagakerjaan atau kebijakan yang ditetapkan oleh Bank CIMB Niaga dan Entitas Anak. Program-program ini pada umumnya didanai melalui pembayaran kepada pengelola dana pensiun yang besarnya ditentukan dalam perhitungan aktuarial yang dilakukan secara berkala. Bank CIMB Niaga and Subsidiary have pension schemes in accordance with prevailing labor-related laws and regulations of Bank CIMB Niaga and Subsidiary’ policies. The schemes are generally funded through payments to trustee-administered funds as determined by periodic actuarial calculations. Bank CIMB Niaga dan Entitas Anak harus menyediakan program pensiun dengan jumlah minimal tertentu sesuai dengan Undang-Undang (UU) Ketenagakerjaan No. 13/2003. Karena UU Ketenagakerjaan menentukan rumus tertentu untuk menghitung jumlah minimal imbalan pensiun, maka pada dasarnya program pensiun berdasarkan UU Ketenagakerjaan adalah program manfaat pasti. Program pensiun manfaat pasti adalah program pensiun yang menentukan jumlah imbalan pensiun yang akan diberikan, biasanya didasarkan pada satu faktor atau lebih seperti usia, masa kerja atau jumlah kompensasi. Bank CIMB Niaga and Subsidiary are required to provide a minimum amount of pension benefits in accordance with Labor Law No. 13/2003. Since the Labor Law sets the formula for determining the minimum amount of benefits, in substance pension plans under the Labor Law represent defined benefit plans. A defined benefit plan is a pension plan that defines an amount of pension benefit to be provided, usually as a function of one or more factors such as age, years of service or total compensation. Liabilitas program pensiun imbalan pasti yang diakui di laporan posisi keuangan konsolidasian adalah nilai kini liabilitas imbalan pasti pada tanggal laporan posisi keuangan dikurangi nilai wajar aset program, yang disesuaikan dengan keuntungan/kerugian aktuarial. Liabilitas imbalan pasti dihitung setiap tahun oleh aktuaris independen dengan menggunakan metode Projected Unit Credit. Nilai kini liabilitas imbalan pasti ditentukan dengan mendiskontokan estimasi arus kas keluar di masa yang akan datang dengan menggunakan tingkat bunga Obligasi Pemerintah dalam mata uang yang sama dengan mata uang pensiun yang akan dibayarkan dan waktu jatuh tempo yang kurang lebih sama dengan waktu jatuh tempo pensiun yang bersangkutan. The liability recognised in the consolidated statement of financial position in respect of defined benefit pension plans is the present value of the defined benefit obligation at the statement of financial position’s date less the fair value of plan assets, together with adjustments for unrecognised actuarial gains/losses. The defined benefit obligation is calculated annually by independent actuaries using the Projected Unit Credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of Government Bonds that are denominated in the currency in which the pension will be paid, and that have terms to maturity approximating the terms of the related pension liability. Halaman – 5/57– Page Annual Report CIMB NIAGA 2017 717
  718. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2. 2. KEBIJAKAN AKUNTANSI (lanjutan) af. Imbalan kerja (PSAK 24) (lanjutan) ACCOUNTING POLICIES (continued) af. Employee benefits (SFAS 24) (continued) Liabilitas pensiun (lanjutan) Pension obligations (continued) Keuntungan dan kerugian aktuarial yang timbul dari penyesuaian dan perubahan dalam asumsi-asumsi aktuarial langsung diakui seluruhnya melalui pendapatan komprehensif lainnya pada saat terjadinya. Biaya jasa lalu diakui segera dalam laba rugi. Actuarial gain and losses arising from experience adjustments and changes in actuarial assumption charged or credited to equity in other comprehensive income in the period in which they arise. Past-service cost are recognised immediately in profit or loss. Keuntungan dan kerugian dari kurtailmen atau penyelesaian program manfaat pasti diakui di laba rugi ketika kurtailmen atau penyelesaian tersebut terjadi. Gains or losses on the curtailment or settlement of a defined benefit plan are recognised in profit or loss when the curtailment or settlement occurs. Kontribusi pegawai tidak berkaitan dengan jumlah tahun jasa sehingga Bank dan Entitas Anak mengakui kontribusi pegawai sebagai pengurang biaya jasa pada periode berjalan. Employee’s contribution does not relate to years of service and therefore the Bank and Subsidiary recognise the employee’s contribution as deduction to the service cost in the current period. Liabilitas imbalan pasca-kerja lainnya Other post-retirement obligations Bank CIMB Niaga memberikan imbalan kerja lainnya seperti cuti jangka panjang, jubilee awards, uang pisah, uang jasa, dan imbalan lainnya sesuai dengan yang ditentukan dalam Undang-Undang Ketenagakerjaan. Bank CIMB Niaga provides other benefits such as long service leave, jubilee awards, severance pay, service pay, and other benefits which is determined in compliance with the Labor Law. Perkiraan biaya imbalan ini dicadangkan sepanjang masa kerja karyawan. Liabilitas ini dinilai setiap tahun oleh aktuaris independen yang berkompeten. The expected costs of these benefits are accrued over the period of employment. These obligations are determined annually by independent qualified actuaries. Pesangon pemutusan kontrak kerja Termination benefits Pesangon pemutusan kontrak terhutang ketika karyawan diberhentikan sebelum usia pensiun normal. Termination benefits are payable whenever an employee’s employment is terminated before the normal retirement age. Bank CIMB Niaga dan Entitas Anak mengakui pesangon pemutusan kontrak kerja ketika Bank CIMB Niaga dan Entitas Anak menunjukkan komitmennya untuk memutuskan hubungan kerja dengan karyawan berdasarkan suatu rencana formal terperinci yang kecil kemungkinannya untuk dibatalkan. Pesangon yang akan dibayarkan dalam waktu lebih dari 12 (dua belas) bulan setelah tanggal laporan posisi keuangan didiskontokan untuk mencerminkan nilai kini. Bank CIMB Niaga and Subsidiary recognise termination benefits when it is demonstrably committed to terminate the employment of current employees according to a detailed formal plan which has small probability to withdraw. Benefits, due more than 12 (twelve) months after statement of financial position’s date are discounted to present value. Halaman – 5/58– Page 718 Annual Report CIMB NIAGA 2017
  719. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2. 2. KEBIJAKAN AKUNTANSI (lanjutan) af. Imbalan kerja (PSAK 24) (lanjutan) Program saham manajemen kepemilikan saham ACCOUNTING POLICIES (continued) af. Employee benefits (SFAS 24) (continued) dan program Management equity scheme and equity ownership plan Bank CIMB Niaga dan CIMB Group Holdings Berhad memberikan opsi kepada manajemen dan karyawan yang berhak. Bank CIMB Niaga and CIMB Group Holdings Berhad provided options to eligible management and employees. Beban program opsi karyawan berbasis saham dan beban program opsi manajemen diukur pada tanggal pemberian kompensasi (grant date) berdasarkan nilai wajar dari seluruh opsi yang diberikan yang dihitung dengan menggunakan metode black-scholes (lihat Catatan 46 untuk perlakuan akuntansi atas kompensasi berbasis saham ini). Employee stock option program and management option program costs are measured at grant date based on the fair value of the stock options using a black-scholes model (refer to Note 46 for the accounting treatment of these share-based payments). Tantiem Tantiem Bank CIMB Niaga mencatat tantiem dengan menggunakan basis akrual dan membebankannya pada laporan laba rugi dan penghasilan komprehensif lain konsolidasian. Bank CIMB Niaga records tantiem using the accrual basis and charges it to the consolidated statement of income and other comprehensive income. ag. Laba per saham (PSAK 56) ag. Earnings per share (SFAS 56) Laba per saham dasar dihitung dengan membagi laba bersih dengan rata-rata tertimbang jumlah saham biasa yang beredar pada periode yang bersangkutan. Basic earnings per share is computed by dividing net income with the weighted average number of common shares outstanding during the period. Laba per saham dilusian dihitung dengan membagi laba bersih dengan rata-rata tertimbang jumlah saham yang beredar ditambah dengan rata-rata tertimbang jumlah saham yang akan diterbitkan atas konversi efek yang berpotensi saham yang bersifat dilutif. Diluted earnings per share is calculated by dividing net income by the weighted average number of shares outstanding plus the weighted average number of shares outstanding which would be issued on the conversion of the dilutive potential shares. ah. Transaksi dengan pihak berelasi (PSAK 7) ah. Transactions with related parties (SFAS 7) Bank melakukan transaksi dengan pihak berelasi. Sesuai dengan PSAK No. 7 (revisi 2015) tentang “Pengungkapan Pihak-pihak yang Berelasi”, yang dimaksud dengan pihak yang berelasi adalah orang atau entitas yang berelasi dengan entitas pelapor sebagai berikut: The Bank has transactions with related parties. In accordance with SFAS No.7 (revised 2015) regarding “Related Party Disclosure”, the meaning of a related party is a person or entity that is related to a reporting entity as follow: a. a. Orang atau anggota keluarga terdekatnya berelasi dengan entitas pelapor jika orang tersebut: i. ii. iii. memiliki pengendalian atau pengendalian bersama terhadap entitas pelapor; memiliki pengaruh signifikan terhadap entitas pelapor; atau personal manajemen kunci entitas pelapor atau entitas induk pelapor. A person or a close member of that person’s family is related to a reporting entity if that person: i. has control or joint control over the reporting entity; ii. has significant influence over the reporting entity; or iii. is member of the key management personnel of the reporting entity or a parent of the reporting Halaman – 5/59– Page Annual Report CIMB NIAGA 2017 719
  720. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2. 2. KEBIJAKAN AKUNTANSI (lanjutan) ah. Transaksi dengan pihak berelasi (PSAK 7) (lanjutan) b. ACCOUNTING POLICIES (continued) ah. Transactions with related parties (SFAS 7) (continued) Suatu entitas berelasi dengan entitas pelapor jika memenuhi hal-hal sebagai berikut: i. entitas dan entitas pelapor adalah anggota dari kelompok usaha yang sama (artinya entitas induk, entitas anak, dan entitas anak berikutnya terkait dengan entitas lain); ii. suatu entitas adalah entitas asosiasi atau ventura bersama bagi entitas lain (atau entitas asosiasi atau ventura bersama yang merupakan anggota suatu kelompok usaha, di mana entitas lain tersebut adalah anggotanya); iii. kedua entitas tersebut adalah ventura bersama dari pihak ketiga yang sama; iv. suatu entitas adalah ventura bersama dari entitas ketiga dan entitas yang lain adalah entitas asosiasi dari entitas ketiga; v. entitas tersebut adalah suatu program imbalan pasca kerja untuk imbalan kerja dari suatu entitas pelapor atau entitas yang terkait dengan entitas pelapor; vi. entitas yang dikendalikan atau dikendalikan bersama oleh orang yang diidentifikasi dalam butir (a); vii. orang yang diidentifikasi, dalam butir (a) (i) memiliki pengaruh signifikan terhadap entitas atau anggota manajemen kunci entitas (atau entitas induk dari entitas); atau viii. entitas, atau bagian dari grup dimana entitas merupakan anggotanya, menyediakan personal manajemen kunci kepada entitas pelapor atau kepada pemegang saham dari entitas pelaporan. b. iii. both entities are joint ventures of the same third party; iv. one entity is a joint venture of a third entity and the other entity is an associate of the third entity; v. the entity is a post-employment benefit plan for the benefit of employees of either the reporting entity or an entity related to the reporting entity; vi. the entity controlled or jointly controlled by a person identified in (a); vii. a person identified in (a) (i) has significant influence over the entity or is a member of the key management personel of the entity (or of a parent of the entity); or viii. the entity, or any member of a group of which it is a part, provides key management personnel services to the reporting entity or to the parent of the reporting entity. Jenis transaksi dan saldo dengan pihak-pihak berelasi diungkapkan dalam catatan atas laporan keuangan konsolidasian. ai. Saham treasuri An entity is related to a reporting entity if any of the following conditions applies: i. the entity and the reporting entity are member of the same the company (which means that each parent, subsidiary, and fellow subsidiary is related to the others); ii. one entity is an associate or joint venture of the other entity (or an associate or joint venture of member of a company of which the other entity is a member); The nature of transactions and balances of accounts with related parties are disclosed in the notes to the consolidated financial statements. ai. Treasury shares Ketika Bank membeli modal saham ekuitas Bank (saham treasuri), imbalan yang dibayar, termasuk biaya tambahan yang secara langsung dapat diatribusikan (dikurangi pajak penghasilan) dikurangkan dari ekuitas yang diatribusikan kepada pemilik ekuitas Bank sampai saham tersebut dibatalkan atau diterbitkan kembali. When any Bank purchases the Bank’s equity share capital (treasury shares), the consideration paid, including any directly attributable incremental cost (net of income taxes) is deducted from equity attributable to the Bank’s equity holders until the shares are cancelled or reissued. Ketika saham tersebut selanjutnya diterbitkan kembali, imbalan yang diterima, dikurangi biaya tambahan transaksi yang terkait dan dampak pajak penghasilan yang terkait dimasukkan pada ekuitas yang dapat diatribusikan kepada pemilik ekuitas Bank. Where such ordinary shares are subsequently reissued, any consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in equity attributable to the Bank’s equity holders Halaman – 5/60– Page 720 Annual Report CIMB NIAGA 2017
  721. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2. 2. KEBIJAKAN AKUNTANSI (lanjutan) aj. Pelaporan segmen (PSAK 5) 3. ACCOUNTING POLICIES (continued) aj. Segment reporting (SFAS 5) Sebuah segmen operasi adalah suatu komponen dari entitas: a. yang terlibat dalam aktivitas bisnis yang memperoleh pendapatan dan menimbulkan beban (termasuk pendapatan dan beban yang terkait dengan transaksi dengan komponen lain dari entitas yang sama); b. hasil operasinya dikaji ulang secara reguler oleh kepala operasional untuk membuat keputusan tentang sumber daya yang dialokasikan pada segmen tersebut dan menilai kinerjanya; dan c. tersedia informasi keuangan yang dapat dipisahkan. An operating segment is a component of entity which: Bank CIMB Niaga menyajikan segmen operasi berdasarkan informasi yang disiapkan secara internal untuk pengambil keputusan operasional. Berdasarkan PSAK 5 (Revisi 2014), sebuah segmen usaha adalah sekelompok aset dan operasi yang menyediakan barang atau jasa yang memiliki risiko serta tingkat pengembalian yang berbeda dengan segmen usaha lainnya. Bank CIMB Niaga presents operating segments based on the information that internally is provided to the chief operating decision maker. Under SFAS 5 (Revised 2014), a business segment is a group of assets and operations engaged in providing products or services that are subject to risks and returns that are difference from those of other business segments. Sebuah segmen geografis menyediakan jasa di dalam lingkungan ekonomi tertentu yang memiliki risiko serta tingkat pengembalian yang berbeda dengan segmen operasi lainnya yang berada dalam lingkungan ekonomi lain. Bank CIMB Niaga melaporkan segmen sekunder berdasarkan daerah Jakarta, Jawa Barat, Jawa Tengah, Jawa Timur, Indonesia Timur, dan Sumatera. A geographical segment is engaged in providing services within a particular economic environment that are subject to risks and return that are different from those of segments operating in other economic environments. Bank CIMB Niaga reports the secondary segment information based on Jakarta, West Java, Central Java, East Java, East Indonesia, and Sumatera. PENGGUNAAN ESTIMASI DAN AKUNTANSI YANG PENTING a. involves with business activities to generate income and expenses (include income and expenses relating to the transactions with other components with the same entity); b. operations result is observed regularly by chief decision maker to make decisions regarding the allocation of resources and to evaluate the works; and separated financial information is available. c. PERTIMBANGAN 3. USE OF SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS Beberapa estimasi dan asumsi dibuat dalam rangka penyusunan laporan keuangan konsolidasian dimana dibutuhkan pertimbangan manajemen dalam menentukan metodologi yang tepat untuk penilaian aset dan liabilitas. Certain estimates and assumption are made in the presentation of the consolidated financial statements. These often require management judgement in determining the appropriate methodology for valuation of assets and liabilities. Manajemen membuat estimasi dan asumsi yang berimplikasi pada pelaporan nilai aset dan liabilitas atas tahun keuangan satu tahun kedepan. Semua estimasi dan asumsi yang diharuskan oleh PSAK adalah estimasi terbaik yang didasarkan standar yang berlaku. Estimasi dan pertimbangan dievaluasi secara terus menerus dan berdasarkan pengalaman masa lalu dan faktor-faktor lain termasuk harapan atas kejadian yang akan datang. Management makes estimates and assumptions that affect the reported amounts of assets and liabilities within the next financial year. All estimates and assumptions required in conformity with SFAS are best estimates undertaken in accordance with the applicable standard. Estimates and judgements are evaluated on a continuous basis, and are based on past experience and other factors, including expectations with regard to future events. Halaman – 5/61– Page Annual Report CIMB NIAGA 2017 721
  722. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 3. 3. PENGGUNAAN ESTIMASI DAN PERTIMBANGAN AKUNTANSI YANG PENTING (lanjutan) USE OF SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS (continued) Walaupun estimasi dan asumsi ini dibuat berdasarkan pengetahuan terbaik manajemen atas kejadian dan tindakan saat ini, hasil yang timbul mungkin berbeda dengan estimasi dan asumsi semula. Although these estimates and assumption are based on management’s best knowledge of current events and activities, actual result may differ from those estimates and assumption. a. a. Cadangan kerugian penurunan nilai aset keuangan Allowance for impairment losses of financial assets Aset keuangan yang dicatat berdasarkan biaya perolehan diamortisasi dievaluasi penurunan nilainya sesuai dengan Catatan 2h. Financial assets accounted for at amortised cost are evaluated for impairment on a basis described in Note 2h. Kondisi spesifik penurunan nilai counterparty dalam pembentukan cadangan kerugian atas aset keuangan dievaluasi secara individu berdasarkan estimasi terbaik manajemen atas nilai kini arus kas yang diharapkan akan diterima. Dalam mengestimasi arus kas tersebut, manajemen membuat pertimbangan tentang situasi keuangan counterparty dan nilai realisasi bersih dari setiap agunan. Setiap aset yang mengalami penurunan nilai dinilai sesuai dengan manfaat yang ada dan strategi penyelesaian serta estimasi arus kas yang diperkirakan dapat diterima disetujui secara independen oleh Manajemen Risiko. The specific counterparty conditions in determining impairment amount of the financial assets is evaluated individually and is based upon management's best estimate of the present value of the cash flows that are expected to be received. In estimating these cash flows, management makes judgements about the counterparty's financial situation and the net realizable value of any underlying collateral. Each impaired asset is assessed on its merits and the workout strategy and estimated cash flows considered recoverable are independently approved by the Risk Management. Perhitungan cadangan penurunan nilai kolektif meliputi kerugian kredit yang melekat dalam portofolio aset keuangan dengan karakteristik ekonomi yang sama dan aset keuangan yang tidak signifikan secara individual. Dalam menilai kebutuhan untuk cadangan kolektif, manajemen mempertimbangkan faktor-faktor seperti antara lain kualitas kredit, industri, dan jenis produk. Collectively assessed impairment allowances cover credit losses inherent in portfolios of financial assets with similar economic characteristics and financial assets that are individually insignificant. In assessing the need for collective allowances, management considers factors such as credit quality, industry, and type of product amongst others. Guna membuat estimasi cadangan yang diperlukan, asumsi dibuat untuk menentukan kerugian yang melekat dan untuk menentukan parameter input yang diperlukan berdasarkan pengalaman masa lalu dan kondisi ekonomi saat ini. In order to estimate the required allowance, assumptions are made to define the way inherent losses are modelled and to determine the required input parameters, based on historical experience and current economic conditions. Keakuratan penyisihan tergantung pada seberapa baik estimasi arus kas masa depan untuk cadangan counterparty tertentu dan asumsi model dan parameter yang digunakan dalam menentukan cadangan kolektif. The accuracy of the allowances depends on how well these estimate future cash flows for specific counterparty allowances and the model assumptions and parameters used in determining collective allowances. Halaman – 5/62– Page 722 Annual Report CIMB NIAGA 2017
  723. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 3. 3. PENGGUNAAN ESTIMASI DAN PERTIMBANGAN AKUNTANSI YANG PENTING (lanjutan) b. Menentukan nilai wajar instrumen keuangan USE OF SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS (continued) b. Dalam menentukan nilai wajar aset keuangan dan liabilitas yang tidak mempunyai harga pasar, Bank CIMB Niaga menggunakan teknik penilaian seperti yang dijelaskan dalam Catatan 2f untuk instrumen keuangan yang jarang diperdagangkan dan memiliki informasi harga yang terbatas, nilai wajar yang kurang obyektif dan membutuhkan berbagai tingkat penilaian tergantung pada likuiditas, konsentrasi, faktor ketidakpastian pasar, asumsi harga, dan risiko lainnya. c. Imbalan pensiun Determining fair values of financial instruments In determining the fair value for financial assets and financial liabilities for which there is no observable market price, Bank CIMB Niaga uses the valuation techniques as described in Note 2f for financial instruments that are traded infrequently and have a lack of price transparency, less objectivity in fair value and requires varying degrees of judgement depending on liquidity, concentration, uncertainty of market factors, pricing assumptions, and other risks. c. Pension benefits Manfaat pensiun tergantung pada beberapa faktor yang ditentukan dengan dasar aktuarial berdasarkan beberapa asumsi. Asumsi yang digunakan untuk menentukan biaya (penghasilan) pensiun neto mencakup tingkat diskonto. Perubahan asumsi ini akan mempengaruhi jumlah tercatat liabilitas pensiun. The present value of the pension obligations depends on a number of factors that are determined on an actuarial basis using a number of assumptions. The assumptions used in determining the net cost (income) for pensions include the discount rate. Any changes in these assumptions will impact the carrying amount of pension obligations. Asumsi yang digunakan dalam menentukan biaya/ (pendapatan) untuk imbalan kerja karyawan antara lain tingkat diskonto, tingkat kenaikan gaji di masa datang, tingkat pengembalian investasi, tingkat pengunduran diri, tingkat mortalita dan lain-lain. The assumptions used in determining the net cost / (income) for employee’s benefit included the discount rate, salary increment rate, expected return on investmens, resignation rate, mortality rate and others. Bank CIMB Niaga dan Entitas Anak menentukan tingkat diskonto yang sesuai pada akhir periode pelaporan, yakni tingkat suku bunga yang harus digunakan untuk menentukan nilai kini arus kas keluar masa depan estimasian yang diharapkan untuk menyelesaikan liabilitas pensiun. Dalam menentukan tingkat suku bunga yang sesuai, Bank CIMB Niaga mempertimbangkan tingkat suku bunga obligasi pemerintah yang didenominasikan dalam mata uang imbalan akan dibayar dan memiliki jangka waktu yang serupa dengan jangka waktu liabilitas pensiun yang terkait. Bank CIMB Niaga and Subsidiary determines the appropriate discount rate at the end of each reporting period. This is the interest rate that should be used to determine the present value of estimated future cash outflows expected to be required to settle the pension obligations. In determining the appropriate discount rate, Bank CIMB Niaga considers the interest rates of government bonds that are denominated in the currency in which the benefits will be paid and that have terms to maturity approximating the terms of the related pension obligation. Tingkat kenaikan gaji per tahun didasarkan pada informasi historis atas tingkat kenaikan gaji sebelumnya, tingkat inflasi dan masa kerja. Annual salary increment rate is determined based on historical information of previous salary increment rate, inflation rate and length of service. Asumsi tingkat mortalitas telah didasarkan pada tabel mortalita terbaru yang dihitung dengan menggunakan metode aktuaria yang diterima secara umum. Mortality rate assumption is based on the latest mortality table which is calculated using actuarial method that is generally accepted. Tingkat pengembalian investasi didasarkan pada informasi historis dan proyeksi pasar ke depan. Expected rate of return on investment is based on historical information and future market projections. Asumsi tingkat pengunduran diri didasarkan pada informasi historis. Resignation rate assumption is based on historical information. Halaman – 5/63– Page Annual Report CIMB NIAGA 2017 723
  724. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 3. 3. PENGGUNAAN ESTIMASI DAN PERTIMBANGAN AKUNTANSI YANG PENTING (lanjutan) d. Pajak penghasilan 4. d. Income taxes Pertimbangan signifikan diperlukan dalam menentukan provisi perpajakan. Significant judgement is required in determining the provision for taxes. Bank CIMB Niaga dan Entitas Anak menentukan provisi perpajakan berdasarkan estimasi atas kemungkinan adanya tambahan beban pajak. Jika hasil akhir dari hal ini berbeda dengan jumlah yang dicatat semula, maka perbedaan tersebut akan berdampak terhadap laba/rugi. Bank CIMB Niaga and Subsidiary provides for tax provision based on estimates whether the additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the profit/loss. KAS Rupiah Mata uang asing Dolar Amerika Serikat Lain-lain 5. USE OF SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS (continued) 4. CASH 2017 2016 2015 3,434,971 2,798,988 3,651,281 254,398 206,628 283,575 179,167 297,486 291,239 3,895,997 3,261,730 4,240,006 Rupiah Foreign currencies United States Dollar Others Kas dalam mata uang asing lain-lain terutama terdiri dari Dolar Singapura, Dolar Australia, Euro, dan Saudi Riyal. Cash in other foreign currencies are mainly denominated in Singapore Dollar, Australian Dollar, Euro, and Saudi Arabian Riyal. Saldo dalam mata uang Rupiah termasuk uang pada ATM (Anjungan Tunai Mandiri)/CDM (Cash Deposit Machine) berjumlah Rp 562.528 pada tanggal 31 Desember 2017 (2016: Rp 570.526; 2015: Rp 594.734). The Rupiah balance includes cash in ATMs (Automatic Teller Machines)/CDM (Cash Deposit Machine) amounted to Rp 562,528 as at 31 December 2017 (2016: Rp 570,526; 2015: Rp 594,734). GIRO PADA BANK INDONESIA 5. 2017 Rupiah Dolar Amerika Serikat CURRENT ACCOUNTS WITH BANK INDONESIA 2016 2015 8,469,179 3,053,517 10,559,882 2,785,854 11,577,033 3,028,370 11,522,696 13,345,736 14,605,403 Rupiah United States Dollar Pada tanggal 31 Desember 2017, di dalam giro pada Bank Indonesia terdapat giro yang didasarkan pada prinsip perbankan syariah sebesar Rp 898.905 (2016: Rp 734.176; 2015: Rp 363.226). As at 31 December 2017, current accounts with Bank Indonesia include current account based on sharia banking principle amounted to Rp 898,905 (2016: Rp 734,176; 2015: Rp 363,226). Giro Wajib Minimum (GWM) dalam mata uang Rupiah dan Dolar Amerika Serikat pada tanggal 31 Desember 2017, 2016, dan 2015 adalah: As at 31 December 2017, 2016, and 2015 the Statutory Reserves in Rupiah and United States Dollar are: Halaman – 5/64– Page 724 Annual Report CIMB NIAGA 2017
  725. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 5. 5. GIRO PADA BANK INDONESIA (lanjutan) 2017 CURRENT ACCOUNTS WITH BANK INDONESIA (continued) 2016 2015 Rupiah Giro Wajib Minimum Utama Giro Wajib Minimum Sekunder *) Giro Wajib Minimum Loan to Funding Ratio **) Valuta asing Rupiah 6.74% 10.12% 6.76% 12.05% 7.74% 8.94% Primary Statutory Reserve Secondary Statutory Reserve *) 0.00% 8.05% 0.00% 8.33% 0.00% 8.18% Loan to Funding Ratio Statutory Reserve **) Foreign currency *) Tidak termasuk Excess Reserve **) Berlaku sejak 3 Agustus 2015 Excluding Excess Reserve *) Effective since 3 August 2015 **) GWM Primer adalah simpanan minimum yang wajib dipelihara oleh Bank dalam bentuk saldo Rekening Giro pada Bank Indonesia, sedangkan GWM Sekunder adalah cadangan minimum yang wajib dipelihara oleh Bank berupa Sertifikat Bank Indonesia, Sertifikat Deposito Bank Indonesia, Surat Utang Negara (SUN), dan/atau kelebihan saldo Rekening Giro Rupiah Bank dari GWM Primer dan GWM LFR yang dipelihara di Bank Indonesia. Primary Statutory Reserve is a minimum reserve that should be maintained by Bank in the current accounts with Bank Indonesia, while Secondary Statutory Reserve is a minimum reserve that should be maintained by Bank which comprises of Bank Indonesia Certificates, Bank Indonesia Deposit Certificates, Government Debenture Debt (SUN), and/or excess reserve of Bank’s current accounts from the Primary Statutory Reserve and LFR Statutory Reserve that should be maintained in Bank Indonesia. Pada tanggal 31 Desember 2017, GWM Bank CIMB Niaga telah sesuai dengan PBI No.19/6/PBI/2017 tanggal 18 April 2017 tentang perubahan kelima atas PBI No.15/15/PBI/2013 tanggal 24 Desember 2013 dan Peraturan Anggota Dewan Gubernur No.19/4/PADG/2017 tanggal 28 April 2017 tentang Giro Wajib Minimum Bank Umum dalam Rupiah dan Valuta Asing bagi Bank Umum Konvensional yang berlaku efektif 1 Juli 2017, dimana GWM Utama, GWM Sekunder, dan GWM LFR masing-masing sebesar 6,5%, 4%, dan 0% serta valuta asing sebesar 8%. GWM Primer dipenuhi secara harian sebesar 5% dan secara rata-rata untuk masa laporan tertentu 1,5%, sedangkan GWM Sekunder dipenuhi secara harian sebear 4%. As at 31 December 2017, Bank CIMB Niaga’s Minimum Statutory Reserves complies with BI regulation No. 19/6/PBI/2017 dated 18 April 2017 regarding fifth amendment of PBI No.15/15/PBI/2013 dated 24 December 2013 and Governor Members Regulation No.19/4/PADG/2017 dated 28 April 2017 regarding Minimum Statutory Reserves in Rupiah, and foreign currencies for Conventional Commercial Banks which effective since 1 July 2017, with Primary Statutory Reserve, Secondary Statutory Reserves, and Loan to Funding Ratio Statutory Reserves of 6.5%, 4%, and 0%, respectively, and foreign currencies of 8%. Primary Statutory Reserve is fulfilled in daily basis of 5% and in average basis for certain reporting period of 1.5%, while Secondary Statutory Reverse is fulfilled in daily basis of 4%. Pada tanggal 31 Desember 2016, GWM Bank CIMB Niaga telah sesuai dengan PBI No. 18/14/PBI/2016 tentang perubahan keempat atas PBI No.15/15/PBI/2013 tanggal 24 Desember 2013 tentang GWM Bank Umum dalam Rupiah dan Valuta Asing bagi Bank Umum Konvensional yang berlaku efektif 24 Agustus 2016 dimana GWM Utama, GWM Sekunder, dan GWM LFR masing-masing sebesar 6,5%, 4%, dan 0% serta valuta asing sebesar 8%. As at 31 December 2016, Bank CIMB Niaga’s Minimum Statutory Reserves complies with BI regulation No. 18/14/PBI/2016 regarding fourth amendment of PBI No.15/15/PBI/2013 dated 24 December 2013 regarding Minimum Statutory Reserves in Rupiah, and Foreign Currencies for Conventional Commercial Banks which effective since 24 August 2016 with Primary Statutory Reserve, Secondary Statutory Reserves, and Loan to Funding Ratio Statutory Reserves of 6.5%, 4%, and 0%, respectively, and foreign currencies of 8%. Halaman – 5/65– Page Annual Report CIMB NIAGA 2017 725
  726. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 5. 6. GIRO PADA BANK INDONESIA (lanjutan) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 5. CURRENT ACCOUNTS WITH BANK INDONESIA (continued) Pada tanggal 31 Desember 2015, GWM Bank CIMB Niaga telah sesuai dengan PBI No. 17/21/PBI/2015 tanggal 26 November 2015 tentang perubahan kedua atas PBI No.15/15/PBI/2013 tanggal 24 Desember 2013 tentang GWM Bank Umum dalam Rupiah dan Valuta Asing bagi Bank Umum Konvensional yang berlaku efektif 1 Desember 2015 dimana GWM Primer, GWM Sekunder, dan GWM LFR masing-masing sebesar 7,5%, 4%, dan 0% serta valuta asing sebesar 8%. As at 31 December 2015, Bank CIMB Niaga’s Minimum Statutory Reserves complies with BI regulation No. 17/21/PBI/2015 dated 26 November 2015 regarding second amendment of PBI No.15/15/PBI/2013 dated 24 December 2013 regarding Minimum Statutory Reserves in Rupiah and Foreign Currencies for Conventional Commercial Banks which effective since 1 December 2015 with Primary Statutory Reserves, Secondary Statutory Reserves, and LFR Statutory Reserves of 7.5%, 4%, and 0%, respectively, and foreign currencies of 8%. GWM LFR adalah tambahan simpanan minimum yang wajib dipelihara oleh Bank dalam bentuk saldo rekening giro pada Bank Indonesia, jika LFR Bank di bawah minimum LFR target Bank Indonesia (80%) atau jika di atas maksimum LFR target Bank Indonesia (92%) dan Kewajiban Penyediaan Modal Minimum (“KPMM”) Bank lebih kecil dari KPMM Insentif Bank Indonesia sebesar 14%. Giro Wajib Minimum LFR merupakan tambahan GWM yang dihitung berdasarkan selisih antara LFR Bank dengan minimum atau maksimum LFR Target Bank Indonesia. Selisih antara LFR Bank dengan minimum LFR Bank Indonesia dikali 10%, sedangkan selisih antara LFR Bank dengan maksimum LFR Bank Indonesia dikali 20%. The Minimum Statutory Reserve on LFR is the additional reserve that should be maintained by the Bank in the form of current accounts with Bank Indonesia, if the Bank’s LFR is below the minimum of LFR targeted by Bank Indonesia (80%) or if the Bank’s LFR above the maximum of LFR targeted by Bank Indonesia (92%) and the Capital Adequacy Ratio (“CAR”) is below Bank Indonesia requirement of 14%. LFR Reserve is the additional minimum reserve calculated based on difference between Bank’s LFR with the minimum or the maximum Bank Indonesia’s LFR Target. Difference between Bank’s LFR with the minimum Bank Indonesia’s LFR target multiply by 10%, whereas difference between the Bank’s LFR with the maximum Bank Indonesia’s LFR target multiply by 20%. GIRO PADA BANK LAIN a. 6. CURRENT ACCOUNTS WITH OTHER BANKS Berdasarkan mata uang a. 2017 Rupiah Mata uang asing Dolar Amerika Serikat Euro Dolar Singapura Yen Jepang Yuan Cina Dolar Selandia Baru Dolar Hongkong Pound Sterling Inggris Dolar Australia Lain-lain 2016 By currency 2015 344,194 182,995 341,197 1,400,343 897,579 437,605 234,877 63,949 55,072 40,237 35,344 32,939 32,128 3,574,267 291,393 90,820 300,171 140,148 43,264 13,028 30,453 104,530 405,765 21,585 1,624,152 482,461 420,665 325,977 135,314 50,666 12,217 16,138 34,231 502,349 26,812 2,348,027 Termasuk dalam lain-lain adalah mata uang asing dalam Franc Swiss, Ringgit Malaysia, Dolar Kanada, Baht Thailand, dan Saudi Riyal. Rupiah Foreign currencies United States Dollar Euro Singapore Dollar Japanese Yen China Yuan New Zealand Dollar Hongkong Dollar Great Britain Pound Sterling Australian Dollar Others Included in others are foreign currencies denominated in Swiss Franc, Malaysian Ringgit, Canadian Dollar, Thailand Baht, and Saudi Arabian Riyal. Halaman – 5/66– Page 726 Annual Report CIMB NIAGA 2017
  727. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 6. 6. GIRO PADA BANK LAIN (lanjutan) b. CURRENT (continued) Berdasarkan transaksi dengan pihak berelasi dan pihak ketiga b. Pada tanggal 31 Desember 2017, 2016, dan 2015, tidak terdapat giro pada bank lain pada pihak berelasi. c. Berdasarkan kolektibilitas c. 7. Cadangan kerugian penurunan nilai d. a. PADA BANK LAIN DAN BANK e. 7. Rupiah Fasilitas Simpanan Bank Indonesia (FASBI) Bank Indonesia Jumlah Rupiah Mata Uang Asing Deposito Berjangka Bank Indonesia Call Money Dolar Amerika Serikat Citibank, NY Bank of New York, NY Wachovia Bank, NY Indover Bank PT Bank Rakyat Indonesia (Persero) Tbk PT Bank Pan Indonesia Tbk Dolar Singapura PT Bank Negara Indonesia (Persero) Tbk Jumlah Mata Uang Asing Dikurangi: Cadangan kerugian penurunan nilai a. 2016 8,094,946 8,094,946 By transactions with related party and third party By collectibility Allowance for impairment losses Information in respect of maturities is disclosed in Note 56. PLACEMENT WITH OTHER BANKS AND BANK INDONESIA Berdasarkan jenis, mata uang, dan nama bank 2017 BANKS Management believes that there is no impaired current account with other banks therefore no allowance for impairment losses is needed. Informasi mengenai jatuh tempo diungkapkan pada Catatan 56. PENEMPATAN INDONESIA OTHER As at 31 December 2017, 2016, and 2015, all current accounts with other banks were classified as Pass. Manajemen berpendapat bahwa tidak terdapat penurunan nilai atas giro pada bank lain sehingga tidak diperlukan cadangan kerugian penurunan nilai. e. WITH As at 31 December 2017, 2016, and 2015, there were no current accounts with other banks with related party. Pada tanggal 31 Desember 2017, 2016, dan 2015, seluruh giro pada bank lain digolongkan sebagai Lancar. d. ACCOUNTS 991,810 991,810 By type, currency, and bank’s name 2015 332,751 332,751 4,395,870 4,395,870 2,654,082 2,654,082 4,824,750 4,824,750 376,527 303,719 143,137 9,514 138,447 120,148 382,619 9,448 185,331 231,099 39,287 9,667 832,897 650,662 137,850 137,850 741,084 5,228,767 13,323,713 139,679 139,679 3,444,423 4,436,233 5,565,834 5,898,585 (9,514) 13,314,199 (11,928) 4,424,305 (14,917) 5,883,668 Rupiah Bank Indonesia Deposit Facility (FASBI) Bank Indonesia Total Rupiah Foreign Currency Time deposits Bank Indonesia Call Money United States Dollar Citibank, NY Bank of New York, NY Wachovia Bank, NY Indover Bank PT Bank Rakyat Indonesia (Persero) Tbk PT Bank Pan Indonesia Tbk Singapore Dollar PT Bank Negara Indonesia (Persero) Tbk Total Foreign Currency Less: Allowance for impairment losses Halaman – 5/67– Page Annual Report CIMB NIAGA 2017 727
  728. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 7. 7. PENEMPATAN INDONESIA PADA BANK LAIN DAN BANK PLACEMENT WITH OTHER BANKS AND BANK INDONESIA b. Pada tanggal 31 Desember 2017, penempatan yang didasarkan pada prinsip perbankan syariah sebesar Rp 3.495.840 (2016: Rp 991.810; 2015: Rp 332.751). b. As at 31 December 2017, placement on sharia banking principle amounted to Rp 3,495,840 (2016: Rp 991,810; 2015: Rp 332,751). c. Pada tanggal 31 Desember 2017, terdapat penempatan pada bank lain yang mengalami penurunan nilai yaitu penempatan pada Indover Bank sebesar Rp 9.514 (2016: Rp 9.448; 2015: Rp 9.667). c As at 31 December 2017, there was impaired placement with other bank which is placement in Indover Bank amounted to Rp 9,514 (2016: Rp 9,448; 2015: Rp 9,667). d. By collectibility d. Berdasarkan kolektibilitas 2017 Lancar Macet Dikurangi: Cadangan kerugian penurunan nilai e. 2016 2015 13,314,199 9,514 13,323,713 4,426,785 9,448 4,436,233 5,888,918 9,667 5,898,585 (9,514) 13,314,199 (11,928) 4,424,305 (14,917) 5,883,668 Berdasarkan transaksi dengan pihak berelasi dan pihak ketiga e. Pada tanggal 31 Desember 2017, 2016, dan 2015, tidak terdapat penempatan pada pihak berelasi. f. Dikurangi: Cadangan kerugian penurunan nilai g. 2016 2015 3,444,423 991,810 4,436,233 5,898,585 5,898,585 (9,514) 13,314,199 (11,928) 4,424,305 (14,917) 5,883,668 Penempatan pada bank lain yang digunakan sebagai jaminan g. 2016 4.02% 1.14% Less: Allowance for impairment losses Placement with other banks pledged as collateral h. 2017 < 1 month > 1 month - 3 months As at 31 December 2017, 2016, and 2015, there was no placement pledged as collateral. Suku bunga rata-rata per tahun Rupiah Mata uang asing By remaining period to maturity 13,323,713 13,323,713 Pada tanggal 31 Desember 2017, 2016, dan 2015, tidak terdapat penempatan yang dijaminkan. h. By transactions with related party and third party f. 2017 Less: Allowance for impairment losses As at 31 December 2017, 2016, and 2015, there was no placement with related party. Berdasarkan sisa umur jatuh tempo < 1 bulan > 1 bulan - 3 bulan Pass Loss Average annual interest rates 2015 5.10% 0.55% 5.52% 0.16% Rupiah Foreign currency Halaman – 5/68– Page 728 Annual Report CIMB NIAGA 2017
  729. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 7. 7. PENEMPATAN PADA INDONESIA (lanjutan) i. BANK LAIN DAN BANK PLACEMENT WITH OTHER BANKS AND BANK INDONESIA (continued) Cadangan kerugian penurunan nilai i. Perubahan cadangan kerugian penurunan nilai adalah: 2017 Saldo awal (Pemulihan)/pembentukan selama tahun berjalan (lihat Catatan 39) Selisih kurs penjabaran Saldo akhir 8. Movements of allowance for impairment losses are as follows: 2016 2015 11,928 14,917 8,685 (2,553) 139 (2,452) (537) 5,069 1,163 Beginning balance (Reversal)/impairment during the year (refer to Note 39) Exchange rates difference 9,514 11,928 14,917 Ending balance Cadangan kerugian penurunan nilai penempatan pada bank lain dan Bank Indonesia dihitung secara kolektif. Evaluasi penurunan nilai secara kolektif dilakukan berdasarkan arus kas kontraktual dan kerugian historis yang pernah dialami atas penempatan yang dimiliki Bank. The allowance for impairment losses on with other banks and Bank Indonesia is based on collective assessment. The evaluation of impairment is performed historical loss experience for placement Bank had. Manajemen berpendapat bahwa jumlah cadangan kerugian penurunan nilai yang dibentuk telah memadai. Management believes the allowance for impairment losses is adequate. EFEK-EFEK a. Allowance for impairment losses 8. MARKETABLE SECURITIES Berdasarkan tujuan, jenis, dan mata uang a. 2017 placement calculated collective based on which the 2016 By purpose, type, and currency 2015 Dimiliki Hingga Jatuh Tempo Held-to-maturity Rupiah Sertifikat Bank Indonesia Premi yang belum diamortisasi 250,000 5,893 200,000 5,867 500,000 20,037 Rupiah Bank Indonesia Certificates Unamortised premium Nilai bersih 255,893 205,867 520,037 Net Obligasi Premi yang belum diamortisasi Nilai bersih 653,000 2,005 655,005 658,000 2,703 660,703 663,000 3,422 666,422 Bonds Unamortised premium Net T agihan wesel ekspor Wesel jangka menengah 334,381 15,000 16,001 15,000 7,177 15,000 Bill receivables Medium term notes Dolar Amerika Serikat T agihan wesel ekspor 46,290 64,976 49,054 United States Dollar Bill receivables - - 341 Other Foreign Currencies Bill receivables 1,258,031 Total held-to-maturity Mata uang asing lainnya T agihan wesel ekspor Jumlah dimiliki hingga jatuh tempo 1,306,569 962,547 Halaman – 5/69– Page Annual Report CIMB NIAGA 2017 729
  730. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 8. 8. EFEK-EFEK (lanjutan) a. Berdasarkan tujuan, jenis, dan mata uang (lanjutan) 2017 MARKETABLE SECURITIES (continued) a. By purpose, type, and currency (continued) 2016 2015 Tersedia untuk dijual Rupiah Obligasi Keuntungan/(kerugian) yang belum direalisasi atas kenaikan/(penurunan) nilai Premi yang belum diamortisasi Nilai bersih Sertifikat Bank Indonesia Keuntungan/(kerugian) yang belum direalisasi atas kenaikan/(penurunan) nilai Diskonto yang belum diamortisasi Nilai bersih Sertifikat Deposito Bank Indonesia Keuntungan/(kerugian) yang belum direalisasi atas kenaikan/(penurunan) nilai Diskonto yang belum diamortisasi Nilai bersih Dolar Amerika Serikat Obligasi (Kerugian)/keuntungan yang belum direalisasi atas (penurunan)/kenaikan nilai Premi yang belum diamortisasi Nilai bersih Sertifikat Bank Indonesia Kerugian yang belum direalisasi atas penurunan nilai Diskonto yang belum diamortisasi Nilai bersih Jumlah tersedia untuk dijual Available-for-sale 6,462,899 5,462,470 6,321,970 56,782 78,033 6,597,714 (52,794) 12,937 5,422,613 (201,909) 20,358 6,140,419 - 1,400,000 1,050,000 - 574 (34,566) 1,366,008 (1,396) (33,001) 1,015,603 1,000,000 622,000 3,866,319 2,007 (68,410) 3,799,916 (425) (11,687) 987,888 2,992 (4,715) 620,277 203,513 130,550 - (160) 5,581 208,934 1,435 7,417 139,402 - 610,538 - - (357) (1,763) 608,418 - - 11,214,982 7,915,911 7,776,299 Rupiah Bonds Unrealised gains/(losses) on increase/(decrease) in value Unamortised premium Net Bank Indonesia Certificates Unrealised gains/(losses) on increase/(decrease) in value Unamortised discount Net Bank Indonesia Certificates Deposit Unrealised gains/(losses) on increase/(decrease) in value Unamortised discount Net United States Dollar Bonds Unrealised (losses)/gains on (decrease)/increase in value Unamortised premium Net Bank Indonesia Certificates Unrealised losses on decrease in value Unamortised discount Net Total available-for-sale Trading Diperdagangkan Rupiah Obligasi Keuntungan/(kerugian) yang belum direalisasi atas kenaikan/(penurunan) nilai Premi/(diskonto) yang belum diamortisasi Nilai bersih Dolar Amerika Serikat Obligasi Kerugian yang belum direalisasi atas penurunan nilai Premi/(diskonto) yang belum diamortisasi Nilai bersih Jumlah diperdagangkan Jumlah efek-efek Dikurangi: Cadangan kerugian penurunan nilai 935,835 500,618 827,276 2,779 13,969 952,583 (1,682) 1,168 500,104 (2,214) (1,342) 823,720 6,268 1,671 1,392 (27) 235 6,476 (398) 305 1,578 (13) (285) 1,094 Rupiah Bonds Unrealised gains/(losses) on increase/(decrease) in value Unamortised premium/(discount) Net United States Dollar Bonds Unrealised losses on decrease in value Unamortised premium/(discount) Net 959,059 501,682 824,814 Total trading 13,480,610 9,380,140 9,859,144 (38,556) 13,442,054 (35,913) 9,344,227 (37,521) 9,821,623 Total securities Less: Allowance for impairment losses Halaman – 5/70– Page 730 Annual Report CIMB NIAGA 2017
  731. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 8. 8. EFEK-EFEK (lanjutan) b. MARKETABLE SECURITIES (continued) Berdasarkan tujuan, jenis, mata uang dan penerbit 2017 b. 2016 By purpose, type, currency and issuer 2015 Dimiliki Hingga Jatuh Tempo Rupiah Bank Indonesia PT Lautan Luas Tbk PT Bank T abungan Negara (Persero) Tbk PT T elekomunikasi Indonesia (Persero) Tbk PT Indosat T bk PT Bank Rakyat Indonesia (Persero) T bk PT Arpeni Pratama Ocean Line Tbk PT Perusahaan Listrik Negara (Persero) Perusahaan lainnya (Wesel ekspor) Dolar Amerika Serikat Perusahaan lainnya (Wesel ekspor) Mata uang asing lainnya Perusahaan lainnya (Wesel ekspor) Jumlah dimiliki hingga jatuh tempo Held-to-maturity 255,893 216,000 200,000 194,992 25,013 19,000 15,000 334,381 1,260,279 205,867 216,000 200,000 195,663 25,015 19,000 15,000 5,025 16,001 897,571 520,037 216,000 200,000 196,252 25,012 19,000 15,000 10,158 7,177 1,208,636 46,290 46,290 64,976 64,976 49,054 49,054 - - 1,306,569 962,547 Rupiah Bank Indonesia PT Lautan Luas Tbk PT Bank Tabungan Negara (Persero) Tbk PT Telekomunikasi Indonesia (Persero) Tbk PT Indosat Tbk PT Bank Rakyat Indonesia (Persero) Tbk PT Arpeni Pratama Ocean Line Tbk PT Perusahaan Listrik Negara (Persero) Other companies (Bill receivables) United States Dollar Other companies (Bill receivables) 341 Other foreign currencies Other companies (Bill receivables) 1,258,031 Total held-to-maturity Halaman – 5/71– Page Annual Report CIMB NIAGA 2017 731
  732. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 8. 8. EFEK-EFEK (lanjutan) b. Berdasarkan tujuan, jenis, mata uang dan penerbit (lanjutan) 2017 MARKETABLE SECURITIES (continued) b. 2016 By purpose, type, currency and issuer (continued) 2015 Tersedia untuk dijual Rupiah Bank Indonesia PT Indosat Tbk PT Perusahaan Listrik Negara (Persero) PT Adira Dinamika Multi Finance Tbk PT Bank Tabungan Negara (Persero) Tbk PT Bank OCBC NISP Tbk PT Pupuk Indonesia (Persero) PT Federal International Finance PT Indofood Sukses Makmur Tbk PT Astra Sedaya Finance PT Bank Rakyat Indonesia (Persero) Tbk PT Aneka Tambang (Persero) Tbk PT Sarana Multi Infrastruktur (Persero) PT Pegadaian (Persero) PT Jasa Marga (Persero) Tbk Lembaga Pembiayaan Ekspor Indonesia PT Sarana Multigriya Finansial (Persero) PT Kereta Api Indonesia (Persero) PT Telekomunikasi Indonesia (Persero) Tbk PT AKR Corporindo Tbk PT Bank Maybank Indonesia Tbk PT Toyota Astra Financial Services PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk PT Bank UOB Indonesia PT Bank Tabungan Pensiunan Nasional Tbk PT BCA Finance Dolar Amerika Serikat Bank Indonesia PT Pertamina (Persero) PT Perusahaan Listrik Negara (Persero) Majapahit Holding BV PT Perusahaan Gas Negara (Persero) Tbk Jumlah tersedia untuk dijual Available-for-sale 3,799,914 1,341,746 580,182 510,782 420,137 401,279 385,560 367,580 298,897 293,598 284,210 277,224 230,357 221,187 208,184 200,861 146,128 106,314 93,411 79,448 50,621 46,106 38,172 15,732 10,397,630 2,353,896 1,140,052 330,061 156,722 411,746 194,249 282,271 136,312 306,380 160,806 250,248 119,481 161,756 162,909 692,655 23,652 225,329 257,582 135,008 19,205 65,980 115,146 75,063 7,776,509 1,635,880 1,055,756 325,451 393,464 395,533 375,464 311,447 128,937 272,804 157,517 252,460 163,437 254,056 758,836 99,473 221,863 246,752 379,112 47,326 84,153 113,122 103,456 7,776,299 608,418 114,063 94,871 817,352 11,214,982 33,900 43,306 34,644 27,552 139,402 7,915,911 7,776,299 Rupiah Bank Indonesia PT Indosat Tbk PT Perusahaan Listrik Negara (Persero) PT Adira Dinamika Multi Finance Tbk PT Bank Tabungan Negara (Persero) Tbk PT Bank OCBC NISP Tbk PT Pupuk Indonesia (Persero) PT Federal International Finance PT Indofood Sukses Makmur Tbk PT Astra Sedaya Finance PT Bank Rakyat Indonesia (Persero) Tbk PT Aneka Tambang (Persero) Tbk PT Sarana Multi Infrastruktur (Persero) PT Pegadaian (Persero) PT Jasa Marga (Persero) Tbk Lembaga Pembiayaan Ekspor Indonesia PT Sarana Multigriya Finansial (Persero) PT Kereta Api Indonesia (Persero) PT Telekomunikasi Indonesia (Persero) Tbk PT AKR Corporindo Tbk PT Bank Maybank Indonesia Tbk PT Toyota Astra Financial Services PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk PT Bank UOB Indonesia PT Bank Tabungan Pensiunan Nasional Tbk PT BCA Finance United States Dollar Bank Indonesia PT Pertamina (Persero) PT Perusahaan Listrik Negara (Persero) Majapahit Holding BV PT Perusahaan Gas Negara (Persero) Tbk Total available-for-sale Halaman – 5/72– Page 732 Annual Report CIMB NIAGA 2017
  733. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 8. 8. EFEK-EFEK (lanjutan) b. MARKETABLE SECURITIES (continued) Berdasarkan tujuan, jenis, mata uang dan penerbit (lanjutan) 2017 b. 2016 By purpose, type, currency and issuer (continued) 2015 Diperdagangkan Rupiah PT Bank Rakyat Indonesia (Persero) Tbk PT Adira Dinamika Multi Finance Tbk PT Indosat Tbk PT Sarana Multigriya Finansial (Persero) PT Wahana Ottomitra Multiartha Tbk PT Federal International Finance PT Indofood Sukses Makmur Tbk PT Jasa Marga (Persero) Tbk PT Astra Sedaya Finance PT Bank Pembangunan Daerah Maluku dan Maluku Utara PT. Indonesia Infrastructure Finance PT Semen Indonesia (Persero) Tbk Bank BJB PT Mandiri Tunas Finance PT Indomobil Finance Indonesia Lembaga Pembiayaan Ekspor Indonesia PT Perusahaan Listrik Negara (Persero) PT Toyota Astra Financial Services PT Bank UOB Indonesia PT Bank Tabungan Negara (Persero) Tbk PT Hutama Karya (Persero) PT Bank OCBC NISP Tbk PT Bank Mandiri (Persero) Tbk PT Maybank Indonesia Finance PT Bank Maybank Indonesia Tbk PT Pupuk Indonesia (Persero) PT Telekomunikasi Indonesia (Persero) Tbk PT Sarana Multi Infrastruktur (Persero) PT Mandala Multifinance Tbk PT Bank SulutGo PT BCA Finance PT Pelabuhan Indonesia (Persero) PT Tower Bersama Infrastructure Tbk PT Perum Pegadaian (Persero) PT Medco Energi International Tbk PT AKR Corporindo Tbk PT Surya Artha Nusantara Finance PT Bank Tabungan Pensiunan Nasional Tbk PT Express Transindo Utama Tbk Dolar Amerika Serikat PT Perusahaan Listrik Negara (Persero) PT Pertamina (Persero) Jumlah diperdagangkan Dikurangi: Cadangan kerugian penurunan nilai Trading 146,654 99,289 93,118 79,763 70,490 46,951 41,328 40,000 38,617 35,191 27,657 26,267 25,133 21,807 21,405 20,495 16,461 14,273 13,112 12,324 12,080 11,013 10,178 10,140 10,124 5,073 2,162 1,024 401 53 - 24,960 41,159 27,596 51,159 815 60,042 1,099 5,040 65,898 34,552 10,989 682 52,548 22,240 28,141 15,028 200 5,183 19,291 25 12,974 9,903 6,125 2,042 1,661 527 225 96,567 113,179 39,975 49,975 22,082 4,828 34,540 68,391 19,757 33,395 100,062 27,755 20,040 13,831 29,821 76,083 5,968 1,495 16,755 32,662 10,655 15 952,583 500,104 2,951 2,938 823,720 5,384 1,092 6,476 959,059 13,480,610 975 603 1,578 501,682 9,380,140 65 1,029 1,094 824,814 9,859,144 (38,556) 13,442,054 (35,913) 9,344,227 (37,521) 9,821,623 Rupiah PT Bank Rakyat Indonesia (Persero) Tbk PT Adira Dinamika Multi Finance Tbk PT Indosat Tbk PT Sarana Multigriya Finansial (Persero) PT Wahana Ottomitra Multiartha Tbk PT Federal International Finance PT Indofood Sukses Makmur Tbk PT Jasa Marga (Persero) Tbk PT Astra Sedaya Finance PT Bank Pembangunan Daerah Maluku dan Maluku Utara PT. Indonesia Infrastructure Finance PT Semen Indonesia (Persero) Tbk Bank BJB PT Mandiri Tunas Finance PT Indomobil Finance Indonesia Lembaga Pembiayaan Ekspor Indonesia PT Perusahaan Listrik Negara (Persero) PT Toyota Astra Financial Services PT Bank UOB Indonesia PT Bank Tabungan Negara (Persero) Tbk PT Hutama Karya (Persero) PT Bank OCBC NISP Tbk PT Bank Mandiri (Persero) Tbk PT Maybank Indonesia Finance PT Bank Maybank Indonesia Tbk PT Pupuk Indonesia (Persero) PT Telekomunikasi Indonesia (Persero) Tbk PT Sarana Multi Infrastruktur (Persero) PT Mandala Multifinance Tbk PT Bank SulutGo PT BCA Finance PT Pelabuhan Indonesia (Persero) PT Tower Bersama Infrastructure Tbk PT Perum Pegadaian (Persero) PT Medco Energi International Tbk PT AKR Corporindo Tbk PT Surya Artha Nusantara Finance PT Bank Tabungan Pensiunan Nasional Tbk PT Express Transindo Utama Tbk United States Dollar PT Perusahaan Listrik Negara (Persero) PT Pertamina (Persero) Total trading Less: Allowance for impairment losses Halaman – 5/73– Page Annual Report CIMB NIAGA 2017 733
  734. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 8. 8. EFEK-EFEK (lanjutan) c. Berdasarkan sisa umur jatuh tempo MARKETABLE SECURITIES (continued) c. Saldo efek-efek pada tanggal 31 Desember 2017, 2016, dan 2015, berdasarkan sisa umur jatuh tempo adalah: 2017 < 1 bulan > 1 - ≤ 3 bulan > 3 - ≤ 12 bulan > 1 - ≤ 5 tahun > 5 tahun Dikurangi: Cadangan kerugian penurunan nilai By remaining period to maturity As at 31 December 2017, 2016, and 2015, the balance of marketable securities according to remaining periods to maturity are as follows: 2016 2015 227,585 2,545,146 4,605,953 5,689,300 412,626 13,480,610 274,149 906,856 3,128,330 4,047,064 1,023,741 9,380,140 499,222 847,230 2,243,015 5,105,972 1,163,705 9,859,144 (38,556) 13,442,054 (35,913) 9,344,227 (37,521) 9,821,623 < 1 month > 1 - ≤ 3 months > 3 - ≤ 12 months > 1 - ≤ 5 years > 5 years Less: Allowance for impairment losses d. Pada tanggal 31 Desember 2017, efek-efek yang didasarkan pada prinsip perbankan syariah adalah sebesar Rp 280.906 (2016: Rp 230.882; 2015: Rp 545.049). d. As at 31 December 2017, marketable securities on sharia banking principle amounted to Rp 280,906 (2016: Rp 230,882; 2015: Rp 545,049). e. Pada tanggal 31 Desember 2017, terdapat surat berharga yang mengalami penurunan nilai sebesar Rp 15.000 (2016 dan 2015: Rp 15.000). e. As at 31 December 2017, there was impaired marketable security amounted to Rp 15,000 (2016 and 2015: Rp 15,000). f. Berdasarkan kolektibilitas f. By collectibility 2017 Lancar Macet Dikurangi: Cadangan kerugian penurunan nilai g. 2016 2015 13,465,610 15,000 13,480,610 9,365,140 15,000 9,380,140 9,844,144 15,000 9,859,144 (38,556) 13,442,054 (35,913) 9,344,227 (37,521) 9,821,623 Efek-efek yang dijadikan jaminan g. Pada tanggal 31 Desember 2017, 2016, dan 2015, tidak terdapat efek-efek yang dijadikan jaminan untuk pinjaman yang diterima. Pass Loss Less: Allowance for impairment losses Marketable securities pledged as collateral As at 31 December 2017, 2016, and 2015, there were no marketable securities pledged as collateral for a borrowing transaction. Halaman – 5/74– Page 734 Annual Report CIMB NIAGA 2017
  735. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 8. 8. EFEK-EFEK (lanjutan) h. Berdasarkan efek perusahaan lain Bank Indonesia serta 2017 Bank Indonesia Perusahaan lain Dikurangi: Cadangan kerugian penurunan nilai i. h. 2016 2015 2,559,763 6,820,377 9,380,140 2,155,917 7,703,227 9,859,144 (38,556) 13,442,054 (35,913) 9,344,227 (37,521) 9,821,623 Suku bunga rata-rata per tahun i. Rupiah Mata uang asing 2016 7.18% 0.64% j. Perubahan cadangan kerugian penurunan nilai adalah: 2017 k. Bank Indonesia Other companies Less: Allowance for impairment losses Average annual interest rates 2015 8.52% 0.11% Cadangan kerugian penurunan nilai Saldo awal Pembentukan/(pemulihan) selama tahun berjalan (lihat catatan 39) Saldo akhir By Bank Indonesia’s and other companies’ marketable securities 4,664,225 8,816,385 13,480,610 2017 j. MARKETABLE SECURITIES (continued) 8.65% 0.16% Rupiah Foreign currency Allowance for impairment losses Movements in the allowance for impairment losses are as follows: 2016 2015 35,913 37,521 39,037 2,643 38,556 (1,608) 35,913 (1,516) 37,521 Beginning balance Impairment/(reversal) during the year (refer to note 39) Ending balance Pada tanggal 31 Desember 2017, jumlah cadangan kerugian penurunan nilai untuk efek-efek yang dimiliki hingga jatuh tempo dan tersedia untuk dijual masingmasing adalah sebesar Rp 18.276 dan Rp 20.280 (2016: Rp 17.464 dan Rp 18.449; 2015: Rp 17.528 dan Rp 19.993). As at 31 December 2017, the allowance for impairment losses for marketable securities classified as held-to-maturity and available-for-sale amounted to Rp 18,276 and Rp 20,280, respectively (2016: Rp 17,464 and Rp 18,449; 2015: Rp 17,528 and Rp 19,993). Manajemen berpendapat bahwa jumlah cadangan kerugian penurunan nilai di atas telah memadai. Management believes that the allowance for impairment losses above is adequate. Berdasarkan transaksi dengan pihak berelasi dan pihak ketiga k. Pada tanggal 31 Desember 2017, 2016, dan 2015, tidak terdapat efek-efek dari pihak berelasi. By transactions with related party and third party As at 31 December 2017, 2016, and 2015, there were no marketable securities from related party. Halaman – 5/75– Page Annual Report CIMB NIAGA 2017 735
  736. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 8. 8. EFEK-EFEK (lanjutan) l. MARKETABLE SECURITIES (continued) Informasi pokok lainnya sehubungan dengan efekefek l. Informasi peringkat atas efek-efek berdasarkan lembaga pemeringkat – PT Pemeringkat Efek Indonesia (PT Pefindo), PT Fitch Indonesia, dan Standard & Poor’s diungkapkan pada Catatan 53 (vii). 9. OBLIGASI PEMERINTAH a. a. 2016 Based on type 2015 Dimiliki Hingga Jatuh Tempo Premi yang belum diamortisasi Jumlah dimiliki hingga jatuh tempo Held-to-maturity 7,632,808 7,240,909 5,102,364 Nominal value 4,610 26,186 129,504 Unamortised premium 7,637,418 7,267,095 5,231,868 Total held-to-maturity 13,895,853 7,837,432 6,630,605 64,391 (70,456) (595,456) Tersedia untuk dijual Nilai nominal Available-for-sale Keuntungan/(kerugian) yang belum direalisasi atas kenaikan/(penurunan) nilai Premi yang belum diamortisasi Nilai wajar - tersedia untuk dijual Nominal value Unrealised gains/(losses) on increase/(decrease) in value 247,842 188,375 216,170 Unamortised premium 14,208,086 7,955,351 6,251,319 Fair value - available-for-sale Diperdagangkan Nilai nominal Trading 2,884,352 2,960,053 4,653,200 Keuntungan/(kerugian) yang belum direalisasi atas kenaikan/(penurunan) nilai Premi/(diskonto) yang belum diamortisasi Nilai wajar - diperdagangkan Jumlah Obligasi Pemerintah Nominal value Unrealised gains/(losses) on 12,896 (12,713) (18,571) increase/(decrease) in value 228,734 14,346 (67,923) Unamortised premium/(discount) 3,125,982 2,961,686 4,566,706 Fair value - trading 24,971,486 18,184,132 16,049,893 Total Government Bonds Pada tanggal 31 Desember 2017, obligasi pemerintah dalam mata uang asing adalah sebesar Rp 3.074.063 (2016: Rp 2.139.774; 2015: Rp 2.140.687). As at 31 December 2017, total government bonds in foreign currency amounted to Rp 3,074,063 (2016: Rp 2,139,774; 2015: Rp 2,140,687). Halaman – 5/76– Page 736 to GOVERNMENT BONDS Berdasarkan jenis Nilai nominal relating Information on the rating of marketable securities based on rating agencies - PT Pemeringkat Efek Indonesia (PT Pefindo), PT Fitch Indonesia, and Standard & Poor’s are disclosed in Note 53 (vii). 9. 2017 Other significant information marketable securities Annual Report CIMB NIAGA 2017
  737. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 9. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) OBLIGASI PEMERINTAH (lanjutan) a. b. 9. Berdasarkan jenis (lanjutan) GOVERNMENT BONDS (continued) a. Based on type (continued) Pada tanggal 30 September 2016, Obligasi Pemerintah tersedia untuk dijual sebesar Rp 2.305.512 direklasifikasi menjadi dimiliki hingga jatuh tempo dengan akumulasi kerugian yang belum direalisasi atas penurunan nilai yang telah diakui sebelumnya di pendapatan komprehensif lainnya sebesar Rp 99.800 pada saat reklasifikasi di amortisasi hingga jatuh tempo. Pada tanggal 31 Desember 2017, kerugian yang belum direalisasikan yang belum diamortisasi sebesar Rp 83.201 (2016: Rp 95.956) dan amortisasi untuk tahun yang berakhir 31 Desember 2017 sebesar Rp12.755. As at 30 September 2016, total available-for-sale Government Bonds amounted to Rp 2,305,512 reclassified as held-to-maturity with cumulative of unrealised losses in decrease in value which already been recognized in other comprehensive income amounted to Rp 99,800 as of reclassification date was amortised until maturity date. As at 31 December 2017, unamortised unrealised losses in decrease in value amounted to Rp 83,201 (2016: Rp 95,956) and amortization for the year ended 31 December 2017 amounted Rp 12,755. Perbedaan antara biaya perolehan diamortisasi yang baru pada saat reklasifikasi dan jumlah nominal pada saat jatuh tempo sebesar Rp 64.967 diamortisasi hingga jatuh tempo dan diakui seperti premi/diskonto. Pada tanggal 31 Desember 2017, diskonto yang belum diamortisasi sebesar Rp 54.161 (2016: Rp 62.465). Difference between the new amortised cost as at reclassification date and nominal amount as at maturity date amounted to Rp 64,967 is amortised and recognised similar with premium/discount. As at 31 December 2017, unamortised discount amounted to Rp 54,161 (2016: Rp 62,465). Berdasarkan jenis dan jatuh tempo Dimiliki hingga jatuh tempo Tersedia untuk dijual Diperdagangkan Dimiliki hingga jatuh tempo Tersedia untuk dijual Diperdagangkan Dimiliki hingga jatuh tempo Tersedia untuk dijual Diperdagangkan b. Based on type and maturity ≤ 1 bulan/ month Rp 67,935 683,604 - > 1-≤ 3 bulan/ months Rp 584,137 1,241,410 103,782 751,539 1,929,329 ≤ 1 bulan/ month Rp 235,287 2,500 237,787 2017 > 3-≤ 12 bulan/ > 1-≤ 5 tahun/ months years Rp Rp 113,460 3,480,738 3,180,326 8,292,211 416,300 2,151,897 > 5 tahun/ years Rp 3,391,148 810,535 454,003 Jumlah/ Total Rp 7,637,418 14,208,086 3,125,982 13,924,846 4,655,686 24,971,486 > 1-≤ 3 bulan/ months Rp 81,458 646,820 41,107 769,385 2016 > 3-≤ 12 bulan/ > 1-≤ 5 tahun/ months years Rp Rp 75,640 2,302,854 3,242,582 3,157,846 934,044 1,326,230 4,252,266 6,786,930 > 5 tahun/ years Rp 4,571,856 908,103 657,805 6,137,764 Jumlah/ Total Rp 7,267,095 7,955,351 2,961,686 18,184,132 ≤ 1 bulan/ month Rp 41,353 639,028 > 1-≤ 3 bulan/ months Rp 277,382 77,551 2015 > 3-≤ 12 bulan/ > 1-≤ 5 tahun/ months years Rp Rp 202,885 2,152,783 801,692 1,381,943 2,672,956 817,917 > 5 tahun/ years Rp 2,557,465 4,067,684 359,254 Jumlah/ Total Rp 5,231,868 6,251,319 4,566,706 680,381 354,933 6,984,403 16,049,893 3,710,086 3,677,533 4,352,643 Held-to-maturity Available-for-sale Trading Held-to-maturity Available-for-sale Trading Held-to-maturity Available-for-sale Trading Halaman – 5/77– Page Annual Report CIMB NIAGA 2017 737
  738. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 9. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) OBLIGASI PEMERINTAH (lanjutan) c. 9. GOVERNMENT BONDS (continued) Tingkat suku bunga rata-rata c. 2017 Average of interest rate 2016 2015 Suku bunga tetap d. Fixed interest rate Rupiah 6.65% 6.64% 6.70% Rupiah Mata uang asing 4.24% 3.22% 3.87% Foreign currency Obligasi Pemerintah yang dijadikan jaminan d. Government Bonds pledged as collateral Pada tanggal 31 Desember 2017, Obligasi Pemerintah yang dijadikan jaminan untuk efek-efek yang dijual dengan janji dibeli kembali sebesar Rp 7.000.000 (2016: Rp 200.000; 2015: Rp 2.120.000). e. As at 31 December 2017, Government Bonds pledged as collateral for a securities sold under repurchased agreements amounted to Rp 7,000,000 (2016: Rp 200,000; 2015: Rp 2,120,000). Informasi lain e. Other information Selama tahun yang berakhir 31 Desember 2017, Bank CIMB Niaga telah menjual Obligasi Pemerintah dengan jumlah nilai nominal sebesar Rp 97.512.310 dan USD 422,57 juta (2016: Rp 103.119.524 dan USD 355,80 juta; 2015: Rp 66.508.713 dan USD 127,71 juta) dengan keuntungan sebesar Rp 278.624 (2016: Rp 225.302; 2015: Rp 98.895). During the year ended 31 December 2017, Bank CIMB Niaga has sold Government Bonds with total nominal value of Rp 97,512,310 and USD 422.57 million (2016: Rp 103,119,524 and USD 355.80 million; 2015: Rp 66,508,713 and USD 127.71 million) with gains amounted to Rp 278,624 (2016: Rp 225,302; 2015: Rp 98,895). Obligasi Pemerintah pada tanggal 31 Desember 2017 akan jatuh tempo pada beberapa tanggal antara tanggal 5 Januari 2018 sampai dengan tanggal 15 Mei 2048 (2016: 6 Januari 2017 sampai dengan 8 Januari 2047; 2015: 7 Januari 2016 sampai dengan tanggal 8 Januari 2046). These Government Bonds as at 31 December 2017 will mature on various dates between 5 January 2018 up to 15 May 2048 (2016: 6 January 2017 up to 8 January 2047; 2015: 7 January 2016 up to 8 January 2046). Pada tanggal 31 Desember 2017, 2016, dan 2015, seluruh Obligasi Pemerintah digolongkan sebagai Lancar. As at 31 December 2017, 2016, and 2015, all Government Bonds were classified as Pass. 10. EFEK-EFEK YANG DIBELI DENGAN JANJI DIJUAL KEMBALI DAN YANG DIJUAL DENGAN JANJI DIBELI KEMBALI a. 10. SECURITIES PURCHASED UNDER RESALE AGREEMENTS AND SOLD UNDER REPURCHASE AGREEMENTS Efek-efek yang dibeli dengan janji dijual kembali a. Securities purchased under resale agreements Pada tanggal 31 Desember 2017, tidak terdapat saldo efek yang dibeli dengan janji dijual kembali. As at 31 December 2017, there was no security purchased under resale agreements. 2016 Pihak Penjual/ Counterparty PT Bank Mandiri (Persero) Tbk PT Bank Mandiri (Persero) Tbk PT Bank Mandiri (Persero) Tbk PT Bank Mandiri (Persero) Tbk Jumlah/Total Jenis Efek/ Type of Securities FR0056 FR0059 FR0073 FR0061 Nilai Nominal/ Nominal Amount 200,000 200,000 100,000 100,000 600,000 Tingkat Tingkat Suku Bunga/ Kupon/ Interest Rate Coupon Rate 8.38% 7.00% 8.75% 7.00% 6.20% 7.00% 6.35% 6.35% Tanggal Dimulai/ Commencement Date Tanggal Jatuh Tempo/ Maturity Date 8 Desember/December 2016 21 Desember/December 2016 1 Desember/December 2016 1 Desember/December 2016 9 Januari/January 2017 19 Januari/January 2017 12 Januari/January 2017 12 Januari/January 2017 Nilai Tercatat/ Carrying Amount Halaman – 5/78– Page 738 Annual Report CIMB NIAGA 2017 189,865 171,894 94,500 86,697 542,956
  739. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 10. EFEK-EFEK YANG DIBELI DENGAN JANJI DIJUAL KEMBALI DAN YANG DIJUAL DENGAN JANJI DIBELI KEMBALI (lanjutan) a. 10. Efek-efek yang dibeli dengan janji dijual kembali (lanjutan) SECURITIES PURCHASED UNDER RESALE AGREEMENTS AND SOLD UNDER REPURCHASE AGREEMENTS (continued) a. Securities purchased under resale agreements (continued) 2015 Pihak Penjual/ Counterparty PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk Jumlah/Total b. Jenis Efek/ Type of Securities Nilai Nominal/ Nominal Amount FR0053 FR0056 FR0070 100,000 50,000 50,000 200,000 Tingkat Tingkat Suku Bunga/ Kupon/ Interest Rate Coupon Rate 8.35% 8.35% 8.35% 8.25% 8.38% 8.38% Tanggal Dimulai/ Commencement Date Tanggal Jatuh Tempo/ Maturity Date 17 Desember/ December 2015 21 Desember/ December 2015 21 Desember/ December 2015 18 Januari/January 2016 21 Januari/January 2016 21 Januari/January 2016 Nilai Tercatat/ Carrying Amount 87,706 43,333 43,513 174,552 Pada tanggal 31 Desember 2016 dan 2015, seluruh efek yang dibeli dengan janji dijual kembali digolongkan sebagai Lancar. As at 31 December 2016 and 2015, all securities purchased under resale agreements were classified as Pass. Pada tanggal 31 Desember 2016 dan 2015, tidak terdapat saldo efek yang dibeli dengan janji dijual kembali dengan pihak berelasi. As at 31 December 2016 and 2015, there was no balance of security purchased under resale agreement with related party. Efek-efek yang dijual dengan janji dibeli kembali b. Securities sold under repurchase agreements 2017 Pihak Pembeli/ Counterparty Bank Indonesia Bank Indonesia Bank Indonesia Bank Indonesia PT Bank Central Asia Tbk Bank Indonesia PT Bank Mandiri (Persero) T bk Bank Indonesia Bank Indonesia Bank Indonesia PT Bank Rakyat Indonesia (Persero) Tbk PT Bank Central Asia Tbk PT Bank Central Asia Tbk PT Bank Central Asia Tbk PT Bank Maybank Indonesia T bk PT Bank Mandiri (Persero) T bk PT Bank Rakyat Indonesia (Persero) Tbk PT Bank Central Asia Tbk Jumlah/Total Jenis Efek/ Type of Securities PBS013 PBS014 SR007 FR0063 FR0070 SPN175 FR0066 FR0061 FR0031 PBS009 FR0061 FR0034 FR0031 FR0069 FR0061 FR0061 SDBI FR0066 Nilai Nominal/ Nominal Amount 3,200,000 900,000 700,000 600,000 500,000 500,000 500,000 400,000 350,000 350,000 300,000 250,000 250,000 250,000 215,000 200,000 200,000 150,000 9,815,000 Tingkat Tingkat Suku Bunga/ Kupon/ Interest Rate Coupon Rate 6.25% 6.50% 8.25% 5.63% 8.38% 0.00% 5.25% 7.00% 11.00% 7.75% 7.00% 12.80% 11.00% 7.88% 7.00% 7.00% 0.00% 5.25% 5.45% 5.45% 5.45% 5.45% 5.10% 5.45% 5.10% 5.45% 5.45% 5.45% 5.10% 5.30% 5.30% 5.80% 5.10% 5.05% 4.95% 5.80% Tanggal Dimulai/ Commencement Date 21 Desember/ December 21 Desember/ December 21 Desember/ December 21 Desember/ December 12 Desember/ December 21 Desember/ December 13 Desember/ December 21 Desember/ December 21 Desember/ December 21 Desember/ December 12 Desember/ December 19 Desember/ December 19 Desember/ December 20 Desember/ December 13 Desember/ December 08 Desember/ December 06 Desember/ December 20 Desember/ December Tanggal Jatuh Tempo/ Maturity Date 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 05 Januari/January 05 Januari/January 05 Januari/January 05 Januari/January 12 Januari/January 05 Januari/January 15 Januari/January 05 Januari/January 05 Januari/January 05 Januari/January 12 Januari/January 19 Januari/January 19 Januari/January 22 Januari/January 15 Januari/January 08 Januari/January 05 Januari/January 22 Januari/January 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 Nilai Tercatat/ Carrying Amount 3,033,315 855,923 661,780 558,907 496,598 462,369 451,031 397,826 383,835 339,693 280,249 273,089 255,750 232,415 200,758 186,858 172,954 135,353 9,378,703 2016 Pihak Pembeli/ Counterparty PT Bank Mandiri (Persero) Tbk Jumlah/Total Jenis Efek/ Type of Securities FR0059 Nilai Nominal/ Nominal Amount 200,000 200,000 Tingkat Tingkat Suku Bunga/ Kupon/ Interest Rate Coupon Rate 7.00% 7.00% Tanggal Dimulai/ Commencement Date Tanggal Jatuh Tempo/ Maturity Date 19 Desember/ December 2016 19 Januari/January 2017 Nilai Tercatat/ Carrying Amount 169,634 169,634 Halaman – 5/79– Page Annual Report CIMB NIAGA 2017 739
  740. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 10. EFEK-EFEK YANG DIBELI DENGAN JANJI DIJUAL KEMBALI DAN YANG DIJUAL DENGAN JANJI DIBELI KEMBALI (lanjutan) b. 10. SECURITIES PURCHASED UNDER RESALE AGREEMENTS AND SOLD UNDER REPURCHASE AGREEMENTS (continued) Efek-efek yang dijual dengan janji dibeli kembali (lanjutan) b. Securities sold under repurchase agreements (continued) 2015 Jenis Efek/ Type of Securities Pihak Pembeli/ Counterparty Bank Indonesia Bank Indonesia Bank Indonesia Bank Indonesia Bank Indonesia Bank Indonesia Bank Indonesia Jumlah/Total Nilai Nominal/ Nominal Amount FR0061 FR0030 FR0053 FR0031 FR0059 IDSD190216273S IDBI200516273C 500,000 400,000 300,000 200,000 200,000 310,000 210,000 2,120,000 Tingkat Tingkat Suku Bunga/ Kupon/ Interest Rate Coupon Rate 8.50% 8.75% 8.50% 8.75% 8.50% 8.00% 8.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Pada tanggal 31 Desember 2017, 2016, dan 2015, tidak terdapat saldo efek yang dijual dengan janji dibeli kembali dengan pihak berelasi. 11. TAGIHAN DAN LIABILITAS DERIVATIF Tanggal Dimulai/ Commencement Date 30 Desember/ 30 Desember/ 30 Desember/ 30 Desember/ 30 Desember/ 31 Desember/ 31 Desember/ Tanggal Jatuh Tempo/ Maturity Date December December December December December December December 2015 2015 2015 2015 2015 2015 2015 6 Januari/January 6 Januari/January 6 Januari/January 6 Januari/January 6 Januari/January 4 Januari/January 4 Januari/January Nilai Tercatat/ Carrying Amount 2016 2016 2016 2016 2016 2016 2016 433,462 389,289 288,887 209,005 163,660 307,227 204,637 1,996,167 As at 31 December 2017, 2016, and 2015, there was no balance of security sold under repurchase agreement with related party. 11. DERIVATIVE RECEIVABLES AND PAYABLES a. Berdasarkan jenis a. By type 2017 Instrumen Tidak terkait Lindung Nilai Jumlah nosional/ Notional amount Nilai wajar/Fair values Tagihan derivatif/ Liabilitas derivatif/ Derivative receivables Derivative payables Instruments Non-hedging related Kontrak tunai mata uang asing 949,351 210 52 Foreign currency spots Kontrak berjangka mata uang asing 4,460,012 2,064 5,717 Foreign currency forwards Swap mata uang asing 22,802,604 35,856 14,563 Foreign currency swaps Swap tingkat suku bunga 24,595,882 226,493 68,808 Interest rate swaps Kontrak opsi mata uang asing 6,451,940 13,956 19,595 Foreign currency options Kontrak berjangka tingkat suku bunga 7,936,988 1,714 2,088 Interest rate future Instrumen lindung nilai terkait lindung nilai atas nilai wajar Swap tingkat suku bunga Hedging instrument in fair value hedges related 10,000 280,293 Dikurangi: Cadangan kerugian penurunan nilai 280,293 110,823 - Interest rate swaps Less: Allowance for impairment losses 110,823 Halaman – 5/80– Page 740 Annual Report CIMB NIAGA 2017
  741. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 11. TAGIHAN DAN LIABILITAS DERIVATIF (lanjutan) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 11. DERIVATIVE (continued) a. Berdasarkan jenis (lanjutan) RECEIVABLES AND PAYABLES a. By type (continued) 2016 Instrumen Tidak terkait Lindung Nilai Jumlah nosional/ Notional amount Nilai wajar/Fair values Tagihan derivatif/ Liabilitas derivatif/ Derivative receivables Derivative payables Instruments Non-hedging related Kontrak tunai mata uang asing 622,231 170 263 Foreign currency spots Kontrak berjangka mata uang asing 3,090,018 8,658 7,881 Foreign currency forwards Swap mata uang asing 9,936,280 18,264 29,566 Foreign currency swaps 25,718,565 447,569 322,575 Interest rate swaps 66,234 6 674 Foreign currency options 1,958 Interest rate future Swap tingkat suku bunga Kontrak opsi mata uang asing Kontrak berjangka tingkat suku bunga 3,031,313 - Instrumen lindung nilai terkait lindung nilai atas nilai wajar Swap tingkat suku bunga Hedging instrument in fair value hedges related 1,000,000 9,935 484,602 Dikurangi: Cadangan kerugian penurunan nilai - 362,917 - 484,602 Interest rate swaps Less: Allowance for impairment losses 362,917 2015 Instrumen Tidak terkait Lindung Nilai Jumlah nosional/ Notional amount Nilai wajar/Fair values Tagihan derivatif/ Liabilitas derivatif/ Derivative receivables Derivative payables Instruments Non-hedging related Kontrak tunai mata uang asing 686,288 423 246 Foreign currency spots Kontrak berjangka mata uang asing 1,954,472 14,778 2,246 Foreign currency forwards Swap mata uang asing 8,483,370 10,311 27,834 Foreign currency swaps 25,706,952 569,852 854,441 Interest rate swaps 45,733 27 265 Foreign currency options - - Swap tingkat suku bunga Kontrak opsi mata uang asing Kontrak berjangka tingkat suku bunga 2,136,675 Instrumen lindung nilai terkait lindung nilai atas nilai wajar Swap tingkat suku bunga Dikurangi: Cadangan kerugian penurunan nilai Interest rate future Hedging instrument in fair value hedges related 1,000,000 163 595,554 3,672 888,704 595,554 888,704 Interest rate swaps Less: Allowance for impairment losses Halaman – 5/81– Page Annual Report CIMB NIAGA 2017 741
  742. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 11. TAGIHAN DAN LIABILITAS DERIVATIF (lanjutan) 11. DERIVATIVE (continued) b. Berdasarkan kolektibilitas RECEIVABLES AND PAYABLES b. By collectability Pada tanggal 31 Desember 2017, 2016, dan 2015, seluruh tagihan derivatif digolongkan sebagai Lancar. c. Berdasarkan jatuh tempo As at 31 December 2017, 2016, and 2015, all derivative receivables were classified as Pass. c. By maturity date Informasi mengenai jatuh tempo diungkapkan pada Catatan 56. Information in respect to maturities is disclosed in Note 56. d. Lindung nilai wajar dengan kontrak swap tingkat suku bunga (IRS) d. Fair value hedge using interest rate swap (IRS) contracts i) Obligasi subordinasi i) Subordinated bonds 2017, 2016, dan/and 2015 Tanggal/ Date Pihak ketiga/ Third party Tanggal Obligasi Subordinasi/ Subordinated bond date Tujuan/Purpose Suku bunga yang Nosional/ dibayarkan/ Notional Paid interest rate Suku bunga yang diterima/ Received interest rate Jatuh tempo/ Maturity date 3 September/ PT Bank ANZ Lindung nilai atas September Panin Tbk risiko suku bunga pada sebagian 2010 eksposur obligasi subordinasi/To hedge interest rate risk on certain portion of subordinated bonds 10 Juli/ July 2010 500,000 Suku bunga mengambang sebesar suku bunga SBI 3 (tiga) bulan/Floating interest rate of 3 (three) months SBI rate Suku bunga tetap sebesar 8,30% per tahun/Fixed interest rate of 8.30% per annum. 8 Juli/ July 2017 10 Desember/ PT Bank ANZ December Panin Tbk 2010 10 Juli/ July 2010 250,000 Suku bunga mengambang sebesar suku bunga SBI 3 (tiga) bulan/Floating interest rate of 3 (three) months SBI rate Suku bunga tetap sebesar 8,00% per tahun/Fixed interest rate of 8.00% per annum. 8 Juli/ July 2017 Lindung nilai atas risiko suku bunga pada sebagian eksposur obligasi subordinasi/To hedge interest rate risk on certain portion of subordinated bonds Halaman – 5/82– Page 742 Annual Report CIMB NIAGA 2017
  743. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 11. TAGIHAN DAN LIABILITAS DERIVATIF (lanjutan) 11. DERIVATIVE (continued) d. Lindung nilai wajar dengan kontrak swap tingkat suku bunga (IRS) (lanjutan) ii) RECEIVABLES AND PAYABLES d. Fair value hedge using interest rate swap (IRS) contracts (continued) Obligasi yang diterbitkan ii) Bond Issued 2017, 2016, dan/and 2015 Tanggal/ Date 24 Juni/ June 2014 Pihak ketiga/ Third party Tanggal Obligasi Subordinasi/ Subordinated bond date Tujuan/Purpose PT Bank ANZ Lindung nilai atas Panin Tbk risiko suku bunga pada sebagian eksposur Obligasi Berkelanjutan I Tahap I Tahun 2012 seri B/To hedge interest rate risk on certain portion of the Continuous Bonds I Phase I Year 2012 Series B 22 Oktober/ October 2012 Suku bunga Suku bunga yang yang diterima/ dibayarkan/ Nosional/ Received Notional Paid interest rate interest rate 250,000 Suku bunga mengambang sebesar suku bunga JIBOR 3 (tiga) bulan – 0,7/ Floating interest rate of 3 (three) months JIBOR – 0.7 Jatuh tempo/ Maturity date Suku bunga 30 Oktober/ tetap sebesar October 2017 7,75% per tahun/Fixed interest rate of 7.75% per annum. Perubahan nilai wajar dari kontrak IRS sebagai instrumen lindung nilai dan obligasi subordinasi sebagai item yang dilindung nilai akibat dari penerapan lindung nilai dibebankan sebagai laba/rugi. Perubahan nilai wajar instrumen lindung nilai dan item yang dilindung nilai akan saling offset dan selisihnya merupakan bagian yang tidak efektif dan dicatat sebagai keuntungan/kerugian dari perubahan nilai wajar derivatif pada laba/rugi (lihat Catatan 40). The changes in fair values of IRS contracts as the hedging instruments and the subordinated bonds as the hedge items, as a result of hedge accounting implementation, are charged/credited as profit/loss. The changes in fair values of hedge instruments and hedged items are off-set and the amounts representing the ineffective portion are recorded as gains/losses from changes in fair values of derivative as profit/loss (refer to Note 40). Sejak diterapkannya akuntansi lindung nilai wajar tersebut, manajemen telah memiliki dokumentasi mengenai hubungan antara instrumen lindung nilai dan item yang dilindung nilai dan juga tujuan manajemen risikonya serta strategi dalam melakukan berbagai transaksi lindung nilai. Starting from the implementation of fair value hedge accounting, management has been able to document the relationship between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking various hedge transactions. Dokumentasi juga meliputi penilaian efektivitas lindung nilai dari derivatif yang digunakan sebagai instrumen lindung nilai dan item yang dilindung nilai. Penilaian ini dilakukan baik pada permulaan lindung nilai tersebut diterapkan dan pada saatsaat berikutnya secara berkelanjutan. The documentation also consists of hedge effectiveness assessment of derivatives, as the hedge instruments, against the hedged items. The assessment is tested at inception of the hedge and through out the period of the hedge. Liabilitas derivatif pada pihak diungkapkan dalam Catatan 49. Derivative payables transactions with related parties are disclosed in Note 49. berelasi Halaman – 5/83– Page Annual Report CIMB NIAGA 2017 743
  744. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 12. KREDIT YANG DIBERIKAN NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 12. LOANS Kredit yang diberikan kepada pihak berelasi diungkapkan dalam Catatan 49. Informasi mengenai tingkat suku bunga dan jatuh tempo diungkapkan dalam Catatan 54 dan 56. Loans to related parties are disclosed in Note 49. Information in respect of interest rates and maturities are disclosed in Notes 54 and 56. a. Berdasarkan jenis, mata uang, dan kualitas kredit a. By type, currency, and loan quality Kualitas kredit yang diberikan berdasarkan kredit yang mengalami penurunan nilai dan tidak mengalami penurunan nilai serta penilaian secara kolektif dan individual: Pihak Berelasi Rupiah Konsumsi Sub jumlah Pihak Ketiga Rupiah Konsumsi Modal Kerja Investasi Sub jumlah Dolar Amerika Serikat Konsumsi Modal Kerja Investasi Sub jumlah Dolar Singapura Konsumsi Modal Kerja Investasi Sub jumlah Euro Modal Kerja Sub jumlah Dikurangi: Cadangan kerugian penurunan nilai Jumlah Tidak mengalami penurunan nilai dan penilaian secara kolektif/ Unimpaired and collectively assessed 267,700 267,700 Loans quality based on impaired and unimpaired loans, and collectively and individually assessed: 2017 Mengalami penurunan nilai dan penilaian secara kolektif dan individual/ Impaired and collectively and individually assessed - Jumlah/ Total 267,700 267,700 Related parties Rupiah Consumer Sub total 40,559,344 71,102,505 35,364,408 147,026,257 1,053,095 4,373,589 1,979,212 7,405,896 41,612,439 75,476,094 37,343,620 154,432,153 Third parties Rupiah Consumer Working capital Investment Sub total 34,318 21,324,985 3,044,782 24,404,085 1,128,503 849,448 1,977,951 34,318 22,453,488 3,894,230 26,382,036 United States Dollar Consumer Working capital Investment Sub total 252,100 69,531 321,631 - 3 3 252,100 69,531 321,634 Singapore Dollar Consumer Working capital Investment Sub total 2,199 2,199 - 2,199 2,199 Euro Working capital Sub total 3 171,754,172 9,383,850 181,138,022 172,021,872 9,383,850 181,405,722 (2,694,421) (4,290,285) (6,984,706) Less: Allowance for impairment losses 169,327,451 5,093,565 174,421,016 Total Halaman – 5/84– Page 744 Annual Report CIMB NIAGA 2017
  745. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 12. KREDIT YANG DIBERIKAN (lanjutan) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 12. LOANS (continued) a. Berdasarkan jenis, mata uang, dan kualitas kredit (lanjutan) a. By type, currency, and loan quality (continued) Kualitas kredit yang diberikan berdasarkan kredit yang mengalami penurunan nilai dan tidak mengalami penurunan nilai serta penilaian secara kolektif dan individual: (lanjutan) Loans quality based on impaired and unimpaired loans, and collectively and individually assessed: (continued) 2016 Mengalami penurunan nilai Pihak Berelasi Rupiah Konsumsi Sub jumlah Pihak Ketiga Rupiah Konsumsi Modal Kerja Investasi Sub jumlah Dolar Amerika Serikat Konsumsi Modal Kerja Investasi Sub jumlah Dolar Singapura Modal Kerja Investasi Sub jumlah Euro Modal Kerja Sub jumlah Dikurangi: Cadangan kerugian penurunan nilai Jumlah Tidak mengalami dan penilaian penurunan nilai secara kolektif dan penilaian dan individual/ secara kolektif/ Impaired and Unimpaired collectively and and collectively individually Jumlah/ assessed assessed Total 214,746 214,746 - 214,746 214,746 Related parties Rupiah Consumer Sub total 38,628,332 63,882,520 39,616,265 142,127,117 1,005,833 2,561,615 2,605,548 6,172,996 39,634,165 66,444,135 42,221,813 148,300,113 Third parties Rupiah Consumer Working capital Investment Sub total 35,422 16,743,337 4,807,185 21,585,944 1,744,720 1,391,688 3,136,408 35,422 18,488,057 6,198,873 24,722,352 United States Dollar Consumer Working capital Investment Sub total 228,954 113,635 342,589 5,906 5,906 228,954 119,541 348,495 Singapore Dollar Working capital Investment Sub total 1,985 1,985 164,057,635 164,272,381 9,315,310 9,315,310 1,985 1,985 173,372,945 173,587,691 (3,258,536) 161,013,845 (4,405,720) 4,909,590 (7,664,256) 165,923,435 Euro Working capital Sub total Less: Allowance for impairment losses Total Halaman – 5/85– Page Annual Report CIMB NIAGA 2017 745
  746. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 12. KREDIT YANG DIBERIKAN (lanjutan) 12. LOANS (continued) a. Berdasarkan jenis, mata uang, dan kualitas kredit (lanjutan) Kualitas kredit yang diberikan berdasarkan kredit yang mengalami penurunan nilai dan tidak mengalami penurunan nilai serta penilaian secara kolektif dan individual: (lanjutan) Pihak Berelasi Rupiah Konsumsi Sub jumlah Pihak Ketiga Rupiah Konsumsi Modal Kerja Investasi Sub jumlah Dolar Amerika Serikat Konsumsi Modal Kerja Investasi Sub jumlah Dolar Singapura Modal Kerja Investasi Sub jumlah Euro Modal Kerja Sub jumlah Dikurangi: Cadangan kerugian penurunan nilai Jumlah NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) Tidak mengalami penurunan nilai dan penilaian secara kolektif/ Unimpaired and collectively assessed 144,370 144,370 a. By type, currency, and loan quality (continued) Loans quality based on impaired and unimpaired loans, and collectively and individually assessed: (continued) 2015 Mengalami penurunan nilai dan penilaian secara kolektif dan individual/ Impaired and collectively and individually assessed - Jumlah/ Total 144,370 144,370 Related parties Rupiah Consumer Sub total 36,917,010 67,121,246 36,178,486 140,216,742 834,443 2,781,009 1,365,477 4,980,929 37,751,453 69,902,255 37,543,963 145,197,671 Third parties Rupiah Consumer Working capital Investment Sub total 45,474 15,447,874 5,572,598 21,065,946 2,274,323 1,590,892 3,865,215 45,474 17,722,197 7,163,490 24,931,161 United States Dollar Consumer Working capital Investment Sub total 233,836 216,897 450,733 6,935 6,935 233,836 223,832 457,668 Singapore Dollar Working capital Investment Sub total 2,108 2,108 161,735,529 8,853,079 2,108 2,108 170,588,608 161,879,899 8,853,079 170,732,978 (2,543,631) 159,336,268 (4,506,615) 4,346,464 (7,050,246) 163,682,732 Euro Working capital Sub total Less: Allowance for impairment losses Total Halaman – 5/86– Page 746 Annual Report CIMB NIAGA 2017
  747. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 12. KREDIT YANG DIBERIKAN (lanjutan) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 12. LOANS (continued) a. Berdasarkan jenis, mata uang, dan kualitas kredit (lanjutan) a. By type, currency, and loan quality (continued) Kredit yang mengalami penurunan nilai berdasarkan penilaian secara kolektif dan individual pada tanggal 31 Desember 2017, 2016, dan 2015 adalah: Konsumsi Modal Kerja Investasi Dikurangi: Cadangan kerugian penurunan nilai Kolektif/ Collective 973,909 420,727 271,474 1,666,110 Impaired loans based on collective and individual assessment as at 31 December 2017, 2016, and 2015 are as follows: 2017 Individual/ Individual 79,189 5,081,365 2,557,186 7,717,740 Jumlah/ Total 1,053,098 5,502,092 2,828,660 9,383,850 (4,290,285) 5,093,565 Consumer Working capital Investment Less: Allowance for impairment losses 2016 Konsumsi Modal Kerja Investasi Dikurangi: Cadangan kerugian penurunan nilai Konsumsi Modal Kerja Investasi Dikurangi: Cadangan kerugian penurunan nilai Kolektif/ Collective 922,132 560,304 519,854 2,002,290 Individual/ Individual 83,701 3,746,031 3,483,288 7,313,020 Jumlah/ Total 1,005,833 4,306,335 4,003,142 9,315,310 (4,405,720) 4,909,590 Kolektif/ Collective 770,590 473,610 643,464 1,887,664 2015 Individual/ Individual 63,853 4,581,722 2,319,840 6,965,415 Jumlah/ Total 834,443 5,055,332 2,963,304 8,853,079 (4,506,615) 4,346,464 Consumer Working capital Investment Less: Allowance for impairment losses Consumer Working capital Investment Less: Allowance for impairment losses Halaman – 5/87– Page Annual Report CIMB NIAGA 2017 747
  748. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 12. KREDIT YANG DIBERIKAN (lanjutan) 12. LOANS (continued) a. Berdasarkan jenis, mata uang, dan kualitas kredit (lanjutan) Kualitas kredit yang diberikan kolektibilitas sesuai ketentuan OJK/BI: Pihak Berelasi Rupiah Konsumsi Sub jumlah Pihak Ketiga Rupiah Konsumsi Modal Kerja Investasi Sub jumlah Dolar Amerika Serikat Konsumsi Modal Kerja Investasi Sub jumlah Dolar Singapura Konsumsi Modal Kerja Investasi Sub jumlah Euro Modal Kerja Sub jumlah Dikurangi: Cadangan kerugian penurunan nilai Jumlah berdasarkan 267,700 267,700 Loans quality based on collectibility according to FSA/BI regulation: 2017 Dalam Perhatian Khusus/ Special Mention Lancar/ Pass a. By type, currency, and loan quality (continued) Kurang Lancar/ SubStandard - Diragukan/ Doubtful - 37,239,125 70,777,361 34,155,759 142,172,245 3,373,475 1,444,101 1,567,720 6,385,296 267,571 867,797 193,256 1,328,624 34,318 21,388,531 2,860,382 24,283,231 282,520 913,652 1,196,172 27,418 27,418 - - - - - 2,199 2,199 - - - 7,581,468 1,356,042 Jumlah/ Total 267,700 267,700 Related parties Rupiah Consumer Sub Total 478,052 1,905,880 1,351,655 3,735,587 41,612,439 75,476,094 37,343,620 154,432,153 Third parties Rupiah Consumer Working capital Investment Sub Total 782,437 92,778 875,215 34,318 22,453,488 3,894,230 26,382,036 United States Dollar Consumer Working capital Investment Sub Total - 3 252,100 69,531 321,634 Singapore Dollar Consumer Working capital Investment Sub Total - 2,199 2,199 Euro Working capital Sub Total - 254,216 480,955 75,230 810,401 252,100 69,531 321,631 167,047,006 Macet/ Loss 3 3 810,404 4,610,802 181,405,722 (6,984,706) 174,421,016 Less: Allowance for impairment losses Total Halaman – 5/88– Page 748 Annual Report CIMB NIAGA 2017
  749. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 12. KREDIT YANG DIBERIKAN (lanjutan) 12. LOANS (continued) a. Berdasarkan jenis, mata uang, dan kualitas kredit (lanjutan) a. By type, currency, and loan quality (continued) Kualitas kredit yang diberikan berdasarkan kolektibilitas sesuai ketentuan OJK/BI: (lanjutan) Lancar/ Pass Pihak Berelasi Rupiah Konsumsi Sub jumlah Pihak Ketiga Rupiah Konsumsi Modal Kerja Investasi Sub jumlah Dolar Amerika Serikat Konsumsi Modal Kerja Investasi Sub jumlah Dolar Singapura Modal Kerja Investasi Sub jumlah Euro Modal Kerja Sub jumlah Dikurangi: Cadangan kerugian penurunan nilai Jumlah 214,746 214,746 Loans quality based on collectibility according to FSA/BI regulation: (continued) 2016 Dalam Perhatian Khusus/ Special Mention Kurang Lancar/ SubStandard - Diragukan/ Doubtful - - Macet/ Loss Jumlah/ Total - 214,746 214,746 Related parties Rupiah Consumer Sub Total 34,958,276 62,386,820 37,460,917 134,806,013 3,735,785 2,298,642 2,451,818 8,486,245 340,514 356,665 266,105 963,284 233,705 61,431 77,520 372,656 365,885 1,340,577 1,965,453 3,671,915 39,634,165 66,444,135 42,221,813 148,300,113 Third parties Rupiah Consumer Working capital Investment Sub Total 35,422 16,536,241 4,686,093 21,257,756 911,274 779,176 1,690,450 13,954 13,954 38,632 38,632 1,001,910 719,650 1,721,560 35,422 18,488,057 6,198,873 24,722,352 United States Dollar Consumer Working capital Investment Sub Total 228,954 111,694 340,648 1,941 1,941 - - 5,906 5,906 228,954 119,541 348,495 Singapore Dollar Working capital Investment Sub Total 1,985 1,985 156,621,148 10,178,636 977,238 411,288 5,399,381 1,985 1,985 173,587,691 (7,664,256) 165,923,435 Euro Working capital Sub Total Less: Allowance for impairment losses Total Halaman – 5/89– Page Annual Report CIMB NIAGA 2017 749
  750. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 12. KREDIT YANG DIBERIKAN (lanjutan) 12. LOANS (continued) a. Berdasarkan jenis, mata uang, dan kualitas kredit (lanjutan) a. By type, currency, and loan quality (continued) Kualitas kredit yang diberikan berdasarkan kolektibilitas sesuai ketentuan OJK/BI: (lanjutan) Lancar/ Pass Pihak Berelasi Rupiah Konsumsi Sub jumlah Pihak Ketiga Rupiah Konsumsi Modal Kerja Investasi Sub jumlah Dolar Amerika Serikat Konsumsi Modal Kerja Investasi Sub jumlah Dolar Singapura Modal Kerja Investasi Sub jumlah Euro Konsumsi Modal Kerja Sub jumlah Dikurangi: Cadangan kerugian penurunan nilai 144,370 144,370 Dalam Perhatian Khusus/ Special Mention Loans quality based on collectibility according to FSA/BI regulation: (continued) 2015 Kurang Lancar/ SubStandard - Diragukan/ Doubtful - 33,334,902 65,454,600 34,065,707 132,855,209 3,678,211 2,637,233 2,371,947 8,687,391 154,817 176,663 149,086 480,566 43,591 14,269,043 3,148,140 17,460,774 1,883 1,428,729 3,129,914 4,560,526 - 233,836 194,545 428,381 22,352 22,352 - 2,108 2,108 150,890,842 13,270,269 480,566 Jumlah Termasuk dalam kredit yang diberikan dalam Rupiah dan Dolar Amerika Serikat pada tanggal 31 Desember 2017 adalah piutang dan pembiayaan Syariah sebesar Rp 16.694.536 (2016: Rp 10.205.773; 2015: Rp 7.284.415). - Macet/ Loss Jumlah/ Total - 144,370 144,370 Related parties Rupiah Consumer Sub Total 146,092 191,203 241,824 579,119 437,431 1,442,556 715,399 2,595,386 37,751,453 69,902,255 37,543,963 145,197,671 Third parties Rupiah Consumer Working capital Investment Sub Total 193,818 193,818 1,830,607 885,436 2,716,043 45,474 17,722,197 7,163,490 24,931,161 United States Dollar Consumer Working capital Investment Sub Total 6,935 6,935 233,836 223,832 457,668 Singapore Dollar Working capital Investment Sub Total 5,318,364 2,108 2,108 170,732,978 - 772,937 Euro Consumer Working capital Sub Total (7,050,246) Less: Allowance for impairment losses 163,682,732 Total Included in loans denominated in Rupiah and United States Dollar at 31 December 2017 are Sharia receivables and financing amounted to Rp 16,694,536 (2016: Rp 10,205,773; 2015: Rp 7,284,415). Halaman – 5/90– Page 750 Annual Report CIMB NIAGA 2017
  751. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 12. KREDIT YANG DIBERIKAN (lanjutan) 12. LOANS (continued) b. Berdasarkan sektor ekonomi b. By economic sector Kredit yang diberikan berdasarkan sektor ekonomi, serta kredit yang mengalami penurunan nilai dan tidak mengalami penurunan nilai: Rupiah Perindustrian Perdagangan, restoran, hotel, dan administrasi Pertanian Jasa usaha Konstruksi Pengangkutan, pergudangan, dan komunikasi Jasa pelayanan sosial Pertambangan Listrik, gas dan air Perumahan Konsumsi Sub jumlah Mata uang asing Perindustrian Perdagangan, restoran, hotel, dan administrasi Pertanian Jasa usaha Konstruksi Pengangkutan, pergudangan, dan komunikasi Jasa pelayanan sosial Pertambangan Listrik, gas dan air Perumahan Konsumsi Sub jumlah Dikurangi: Cadangan kerugian penurunan nilai Loans based on economic sector, also impaired and unimpaired loans: Tidak mengalami penurunan nilai dan penilaian secara kolektif/ Unimpaired and collectively assessed 2017 Mengalami penurunan nilai dan penilaian secara kolektif dan individual/ Impaired and collectively and individually assessed 28,871,759 480,174 29,351,933 28,492,754 11,004,851 24,182,077 6,595,458 3,578,008 388,517 935,799 134,710 32,070,762 11,393,368 25,117,876 6,730,168 1,668,497 5,778,809 348,959 409,739 24,742,452 15,198,602 147,293,957 667,060 163,294 1,405 3,835 667,266 385,828 7,405,896 2,335,557 5,942,103 350,364 413,574 25,409,718 15,584,430 154,699,853 9,005,509 624,040 9,629,549 6,583,348 4,470,561 1,357,926 207,348 170,520 - 6,753,868 4,470,561 1,357,926 207,348 1,795,729 9,711 646,654 614,099 18,995 18,035 24,727,915 172,021,872 27,418 1,155,973 3 1,977,954 9,383,850 1,823,147 9,711 1,802,627 614,099 18,995 18,038 26,705,869 181,405,722 (2,694,421) (4,290,285) (6,984,706) 169,327,451 5,093,565 174,421,016 Jumlah/ Total Rupiah Manufacturing Trading, restaurants, hotels, and administration Agriculture Business services Construction Transportation, warehousing, and communication Social services Mining Electricity, gas and water Housing Consumer Sub total Foreign currencies Manufacturing Trading, restaurants, hotels, and administration Agriculture Business services Construction Transportation, warehousing, and communication Social services Mining Electricity, gas and water Housing Consumer Sub total Less: Allowance for impairment losses Halaman – 5/91– Page Annual Report CIMB NIAGA 2017 751
  752. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 12. KREDIT YANG DIBERIKAN (lanjutan) 12. LOANS (continued) b. Berdasarkan sektor ekonomi (lanjutan) b. By economic sector (continued) Kredit yang diberikan berdasarkan sektor ekonomi, serta kredit yang mengalami penurunan nilai dan tidak mengalami penurunan nilai: (lanjutan) Rupiah Perindustrian Perdagangan, restoran, hotel, dan administrasi Pertanian Jasa usaha Konstruksi Pengangkutan, pergudangan, dan komunikasi Jasa pelayanan sosial Pertambangan Listrik, gas dan air Perumahan Konsumsi Sub jumlah Mata uang asing Perindustrian Perdagangan, restoran, hotel, dan administrasi Pertanian Jasa usaha Konstruksi Pengangkutan, pergudangan, dan komunikasi Jasa pelayanan sosial Pertambangan Listrik, gas, dan air Konsumsi Sub jumlah Dikurangi: Cadangan kerugian penurunan nilai Loans based on economic sector, also impaired and unimpaired loans: (continued) Tidak mengalami penurunan nilai dan penilaian secara kolektif/ Unimpaired and collectively assessed 2016 Mengalami penurunan nilai dan penilaian secara kolektif dan individual/ Impaired and collectively and individually assessed 27,209,669 819,632 28,029,301 28,770,863 9,267,387 24,128,736 4,499,868 2,110,398 225,104 1,523,984 97,031 30,881,261 9,492,491 25,652,720 4,596,899 2,685,303 7,642,717 272,948 217,411 22,732,323 14,914,638 142,341,863 187,459 160,861 1,546 41,148 616,942 388,891 6,172,996 2,872,762 7,803,578 274,494 258,559 23,349,265 15,303,529 148,514,859 6,950,952 1,757,346 8,708,298 5,472,543 3,819,760 2,574,311 270,625 50,933 18,237 891,261 - 5,523,476 3,837,997 3,465,572 270,625 1,749,168 12,536 846,482 198,719 35,422 21,930,518 164,272,381 81,111 343,426 3,142,314 9,315,310 1,830,279 12,536 1,189,908 198,719 35,422 25,072,832 173,587,691 (3,258,536) 161,013,845 (4,405,720) 4,909,590 (7,664,256) 165,923,435 Jumlah/ Total Rupiah Manufacturing Trading, restaurants, hotels, and administration Agriculture Business services Construction Transportation, warehousing, and communication Social services Mining Electricity, gas and water Housing Consumer Sub total Foreign currencies Manufacturing Trading, restaurants, hotels, and administration Agriculture Business services Construction Transportation, warehousing, and communication Social services Mining Electricity, gas, and water Consumer Sub total Less: Allowance for impairment losses Halaman – 5/92– Page 752 Annual Report CIMB NIAGA 2017
  753. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 12. KREDIT YANG DIBERIKAN (lanjutan) 12. LOANS (continued) b. Berdasarkan sektor ekonomi (lanjutan) b. By economic sector (continued) Kredit yang diberikan berdasarkan sektor ekonomi, serta kredit yang mengalami penurunan nilai dan tidak mengalami penurunan nilai: (lanjutan) Rupiah Perindustrian Perdagangan, restoran, hotel, dan administrasi Pertanian Jasa usaha Konstruksi Pengangkutan, pergudangan, dan komunikasi Jasa pelayanan sosial Pertambangan Listrik, gas dan air Perumahan Konsumsi Sub jumlah Mata uang asing Perindustrian Perdagangan, restoran, hotel, dan administrasi Pertanian Jasa usaha Konstruksi Pengangkutan, pergudangan, dan komunikasi Jasa pelayanan sosial Pertambangan Konsumsi Sub jumlah Dikurangi: Cadangan kerugian penurunan nilai Loans based on economic sector, also impaired and unimpaired loans: (continued) Tidak mengalami penurunan nilai dan penilaian secara kolektif/ Unimpaired and collectively assessed 2015 Mengalami penurunan nilai dan penilaian secara kolektif dan individual/ Impaired and collectively and individually assessed 26,657,760 1,087,499 27,745,259 29,006,481 10,343,388 21,163,289 2,402,274 1,272,170 196,940 306,655 354,414 30,278,651 10,540,328 21,469,944 2,756,688 1,537,515 12,436,491 736,948 213,822 23,024,060 12,839,084 140,361,112 420,624 377,261 67,621 63,301 549,943 284,501 4,980,929 1,958,139 12,813,752 804,569 277,123 23,574,003 13,123,585 145,342,041 5,122,533 1,385,190 6,507,723 4,551,610 5,365,578 4,026,172 162,866 732,072 37,345 1,224,974 - 5,283,682 5,402,923 5,251,146 162,866 669,467 60,990 1,514,097 45,474 21,518,787 161,879,899 28,891 463,678 3,872,150 8,853,079 698,358 60,990 1,977,775 45,474 25,390,937 170,732,978 (2,543,631) (4,506,615) (7,050,246) 159,336,268 4,346,464 163,682,732 Jumlah/ Total Rupiah Manufacturing Trading, restaurants, hotels, and administration Agriculture Business services Construction Transportation, warehousing, and communication Social services Mining Electricity, gas and water Housing Consumer Sub total Foreign currencies Manufacturing Trading, restaurants, hotels, and administration Agriculture Business services Construction Transportation, warehousing, and communication Social services Mining Consumer Sub total Less: Allowance for impairment losses Halaman – 5/93– Page Annual Report CIMB NIAGA 2017 753
  754. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 12. KREDIT YANG DIBERIKAN (lanjutan) 12. LOANS (continued) b. Berdasarkan sektor ekonomi (lanjutan) b. By economic sector (continued) Rasio kredit yang mengalami penurunan nilai bruto dan neto pada tanggal 31 Desember 2017 masingmasing adalah sebesar 5,17% dan 2,81% (2016: 5,37% dan 2,83%; 2015: 5,19% dan 2,55%). Rasio kredit yang mengalami penurunan nilai bruto dihitung dengan membagi jumlah kredit yang diberikan yang mengalami penurunan nilai dengan jumlah kredit yang diberikan. Rasio kredit yang mengalami penurunan nilai neto dihitung dengan mengurangi jumlah kredit yang diberikan yang mengalami penurunan nilai dengan cadangan kerugian penurunan nilai dan dibagi dengan jumlah kredit yang diberikan. Gross and net impaired loan ratios as at 31 December 2017 are 5.17% and 2.81%, respectively (2016: 5.37% and 2.83%; 2015: 5.19% and 2.55%). Gross impaired loan ratio is calculated by dividing total impaired loans with total loans. Net impaired loan ratio is calculated by deducting impaired loans with allowance for impairment losses and divide with total loans. Kualitas kredit yang diberikan berdasarkan sektor ekonomi dan kolektibilitas sesuai ketentuan OJK/BI: Loans quality based on economic sector and collectibility according to FSA/BI regulation: Lancar/ Pass Rupiah Perindustrian Perdagangan, restoran, hotel, dan administrasi Pertanian Jasa usaha Konstruksi Pengangkutan, pergudangan, dan komunikasi Jasa pelayanan sosial Pertambangan Listrik, gas, dan air Perumahan Konsumsi Sub jumlah Mata uang asing Perindustrian Perdagangan, restoran, hotel, dan administrasi Pertanian Jasa usaha Konstruksi Pengangkutan, pergudangan, dan komunikasi Jasa pelayanan sosial Pertambangan Listrik, gas, dan air Perumahan Konsumsi Sub jumlah Dikurangi: Cadangan kerugian penurunan nilai Jumlah 2017 Dalam Perhatian Khusus/ Special Mention Kurang Lancar/ SubStandard Diragukan/ Doubtful Macet/ Loss Jumlah/ Total 28,646,918 256,105 18,359 147,834 282,717 29,351,933 27,906,090 10,890,340 24,064,697 6,514,641 1,182,849 207,091 364,588 49,357 812,995 75,597 72,304 36,950 343,474 1,240 5,472 19,500 1,825,354 219,100 610,815 109,720 32,070,762 11,393,368 25,117,876 6,730,168 1,769,447 5,275,795 348,959 402,225 22,646,617 13,974,216 142,439,945 445,654 498,663 7,514 2,111,675 1,261,800 6,385,296 17,871 26,977 141,382 126,189 1,328,624 1,942 36,722 62,613 191,604 810,401 100,643 103,946 1,405 3,835 447,431 30,621 3,735,587 2,335,557 5,942,103 350,364 413,574 25,409,718 15,584,430 154,699,853 9,005,510 231,555 - - 392,484 9,629,549 6,570,871 4,470,561 1,357,926 27,177 12,477 180,171 - - 170,520 - 6,753,868 4,470,561 1,357,926 207,348 1,791,500 6,567 725,820 614,099 18,995 18,035 24,607,061 167,047,006 4,229 767,740 1,196,172 7,581,468 - 3,144 309,067 875,215 4,610,802 1,823,147 9,711 1,802,627 614,099 18,995 18,038 26,705,869 181,405,722 27,418 27,418 1,356,042 3 3 810,404 (6,984,706) 174,421,016 Rupiah Manufacturing Trading, restaurants, hotels, and administration Agriculture Business services Construction Transportation, warehousing, and communication Social services Mining Electricity, gas, and water Housing Consumer Sub Total Foreign currencies Manufacturing Trading, restaurants, hotels, and administration Agriculture Business services Construction Transportation, warehousing, and communication Social services Mining Electricity, gas, and water Housing Consumer Sub Total Less: Allowance for impairment losses Total Halaman – 5/94– Page 754 Annual Report CIMB NIAGA 2017
  755. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 12. KREDIT YANG DIBERIKAN (lanjutan) 12. LOANS (continued) b. Berdasarkan sektor ekonomi (lanjutan) b. Kualitas kredit yang diberikan berdasarkan sektor ekonomi dan kolektibilitas sesuai ketentuan OJK/BI: (lanjutan) Lancar/ Pass Rupiah Perindustrian Perdagangan, restoran, hotel, dan administrasi Pertanian Jasa usaha Konstruksi Pengangkutan, pergudangan, dan komunikasi Jasa pelayanan sosial Pertambangan Listrik, gas, dan air Perumahan Konsumsi Sub jumlah Mata uang asing Perindustrian Perdagangan, restoran, hotel, dan administrasi Pertanian Jasa usaha Konstruksi Pengangkutan, pergudangan, dan komunikasi Jasa pelayanan sosial Pertambangan Listrik, gas, dan air Konsumsi Sub jumlah Dikurangi: Cadangan kerugian penurunan nilai Jumlah Dalam Perhatian Khusus/ Special Mention 2016 Kurang Lancar/ SubStandard By economic sector (continued) Loans quality based on economic sector and collectibility according to FSA/BI regulation: (continued) Diragukan/ Doubtful Macet/ Loss Jumlah/ Total 26,943,020 384,419 18,540 8,559 674,763 28,029,301 27,296,828 9,014,724 23,843,167 4,446,014 1,503,018 262,369 1,152,724 89,830 358,162 8,120 115,604 5,951 47,145 16,085 13,895 - 1,676,108 191,193 527,330 55,104 30,881,261 9,492,491 25,652,720 4,596,899 2,236,837 6,774,721 272,837 215,704 20,790,104 13,186,803 135,020,759 447,019 873,620 111 37,350 1,981,438 1,754,347 8,486,245 96,314 20,046 34 151,801 188,712 963,284 12,082 41,069 117 87,399 146,305 372,656 80,510 94,122 1,429 5,471 338,523 27,362 3,671,915 2,872,762 7,803,578 274,494 258,559 23,349,265 15,303,529 148,514,859 6,888,140 1,027,235 5,338,693 3,837,997 2,574,311 270,625 1,748,647 9,371 698,464 198,719 35,422 21,600,389 156,621,148 - - 792,923 8,708,298 134,039 24,039 - 13,954 - - 50,744 853,268 - 5,523,476 3,837,997 3,465,572 270,625 54,266 452,812 1,692,391 10,178,636 13,954 977,238 27,366 3,165 1,727,466 5,399,381 1,830,279 12,536 1,189,908 198,719 35,422 25,072,832 173,587,691 38,632 38,632 411,288 (7,664,256) 165,923,435 Rupiah Manufacturing Trading, restaurants, hotels, and administration Agriculture Business services Construction Transportation, warehousing, and communication Social services Mining Electricity, gas, and water Housing Consumer Sub Total Foreign currencies Manufacturing Trading, restaurants, hotels, and administration Agriculture Business services Construction Transportation, warehousing, and communication Social services Mining Electricity, gas, and water Consumer Sub Total Less: Allowance for impairment losses Total Halaman – 5/95– Page Annual Report CIMB NIAGA 2017 755
  756. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 12. KREDIT YANG DIBERIKAN (lanjutan) 12. LOANS (continued) b. Berdasarkan sektor ekonomi (lanjutan) b. Kualitas kredit yang diberikan berdasarkan sektor ekonomi dan kolektibilitas sesuai ketentuan OJK/BI: (lanjutan) Lancar/ Pass Rupiah Perindustrian Perdagangan, restoran, hotel, dan administrasi Pertanian Jasa usaha Konstruksi Pengangkutan, pergudangan, dan komunikasi Jasa pelayanan sosial Pertambangan Listrik, gas, dan air Perumahan Konsumsi Sub jumlah Mata uang asing Perindustrian Perdagangan, restoran, hotel, dan administrasi Pertanian Jasa usaha Konstruksi Pengangkutan, pergudangan, dan komunikasi Jasa pelayanan sosial Pertambangan Konsumsi Sub jumlah Dikurangi: Cadangan kerugian penurunan nilai Jumlah By economic sector (continued) Loans quality based on economic sector and collectibility according to FSA/BI regulation: (continued) 2015 Dalam Perhatian Khusus/ Special Mention Kurang Lancar/ SubStandard Diragukan/ Doubtful Macet/ Loss Jumlah/ Total 26,126,376 1,064,321 83,158 151,414 319,990 27,745,259 28,079,176 10,269,975 20,442,515 2,278,689 1,236,322 74,339 812,699 123,585 75,093 18,288 15,648 233 64,113 50,512 13,182 36,347 823,947 127,214 185,900 317,834 30,278,651 10,540,328 21,469,944 2,756,688 999,851 11,606,618 703,329 212,016 20,583,137 11,697,897 132,999,579 735,117 842,135 70,241 50,420 2,459,128 1,219,084 8,687,391 7,066 116,409 4,989 4,864 81,834 72,984 480,566 1,843 106,117 27 9,471 59,659 86,434 579,119 214,262 142,473 25,983 352 390,245 47,186 2,595,386 1,958,139 12,813,752 804,569 277,123 23,574,003 13,123,585 145,342,041 4,540,923 1,174,258 - 2,070 790,472 6,507,723 4,094,144 5,346,706 2,208,306 111,768 544,522 56,217 1,817,861 51,098 - 150,401 - 494,615 1,224,979 - 5,283,682 5,402,923 5,251,146 162,866 589,511 38,388 917,926 43,591 17,891,263 150,890,842 79,953 857,086 1,883 4,582,878 13,270,269 41,347 193,818 772,937 28,894 22,602 161,416 2,722,978 5,318,364 698,358 60,990 1,977,775 45,474 25,390,937 170,732,978 480,566 (7,050,246) 163,682,732 Rupiah Manufacturing Trading, restaurants, hotels, and administration Agriculture Business services Construction Transportation, warehousing, and communication Social services Mining Electricity, gas, and water Housing Consumer Sub Total Foreign currencies Manufacturing Trading, restaurants, hotels, and administration Agriculture Business services Construction Transportation, warehousing, and communication Social services Mining Consumer Sub Total Less: Allowance for impairment losses Total Halaman – 5/96– Page 756 Annual Report CIMB NIAGA 2017
  757. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 12. KREDIT YANG DIBERIKAN (lanjutan) 12. LOANS (continued) b. Berdasarkan sektor ekonomi (lanjutan) b. Rasio kredit bermasalah (NPL) dihitung sesuai dengan pedoman perhitungan rasio keuangan sebagaimana tercantum dalam Surat Edaran BI No. 3/30/DPNP tanggal 14 Desember 2001 sebagaimana telah diubah dengan Surat Edaran BI No. 7/10/DPNP tanggal 31 Maret 2005 yang kemudian diubah melalui Surat Edaran BI No. 13/30/DPNP tanggal 16 Desember 2011. Pada tanggal 31 Desember 2017, rasio NPL bruto dan neto konsolidasian (termasuk Ijarah) masing-masing adalah sebesar 3,75% dan 2,16% (2016: 3,89% dan 2,16%; 2015: 3,74% dan 1,59%). Rasio NPL bruto dihitung dengan membagi jumlah pinjaman dalam klasifikasi kurang lancar, diragukan, dan macet dengan jumlah pinjaman. Rasio NPL neto dihitung dengan mengurangi jumlah pinjaman dalam klasifikasi kurang lancar, diragukan, dan macet dengan cadangan kerugian penurunan nilai dan dibagi dengan jumlah pinjaman. Rasio NPL disajikan secara konsolidasi termasuk piutang pembiayaan konsumen. c. Non-performing loans (NPL) is determined based on financial ratio calculation guidance as stated in Circular Letter of BI No. 3/30/DPNP dated 14 December 2001 as amended with the Circular Letter of BI No. 7/10/DPNP dated 31 March 2005 then amended by Circular Letter of BI No. 13/30/DPNP dated 16 December 2011. As at 31 December 2017, the percentage on consolidated basis of gross and net NPL (included Ijarah) is 3.75% and 2.16 %, respectively (2016: 3.89% and 2.16%; 2015: 3.74% and 1.59%). Gross NPL ratio is calculated by dividing total loans that classified as substandard, doubtful, and loss with total loans. Net NPL ratio is calculated by deducting total loans that classified as substandard, doubtful, and loss with allowance of impairment loans and divided by total loans. NPL ratio is disclosed as consolidated including the consumer financing receivables. Berdasarkan jangka waktu perjanjian kredit c. 2017 Rupiah < 1 tahun > 1 - < 2 tahun > 2 - < 5 tahun > 5 tahun Dolar Amerika Serikat < 1 tahun > 1 - < 2 tahun > 2 - < 5 tahun > 5 tahun Dolar Singapura < 1 tahun > 1 - < 2 tahun > 2 - < 5 tahun > 5 tahun Euro < 1 tahun > 2 - < 5 tahun Dikurangi: Cadangan kerugian penurunan nilai By economic sector (continued) 2016 By term of credit agreements 2015 25,328,967 34,131,798 34,470,056 26,705,678 30,193,810 72,471,398 154,699,853 12,069,223 30,563,132 71,750,706 148,514,859 12,740,743 31,785,021 66,346,221 145,342,041 6,151,075 4,740,383 6,861,192 8,629,386 26,382,036 9,735,597 1,308,860 3,302,523 10,375,372 24,722,352 9,090,051 953,084 3,616,975 11,271,051 24,931,161 121,624 100,566 31,418 68,026 321,634 116,715 85,693 146,087 348,495 87,840 21,089 122,377 226,362 457,668 2,199 2,199 181,405,722 1,985 1,985 173,587,691 2,108 2,108 170,732,978 (6,984,706) 174,421,016 (7,664,256) 165,923,435 (7,050,246) 163,682,732 Rupiah < 1 year > 1 - < 2 years > 2 - < 5 years > 5 years United States Dollar < 1 year > 1 - < 2 years > 2 - < 5 years > 5 years Singapore Dollar < 1 year > 1 - < 2 years > 2 - < 5 years > 5 years Euro < 1 year > 2 - < 5 years Less: Allowance for impairment losses Halaman – 5/97– Page Annual Report CIMB NIAGA 2017 757
  758. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 12. KREDIT YANG DIBERIKAN (lanjutan) 12. LOANS (continued) d. Berdasarkan jatuh tempo d. By maturity date Informasi mengenai jatuh tempo diungkapkan pada Catatan 56. e. Suku bunga rata-rata per tahun e. 2017 Rupiah Mata uang asing f. Information in respect of maturities is disclosed in Note 56. Average annual interest rates 2016 10.86% 4.43% 2015 11.72% 4.58% Kredit yang direstrukturisasi f. 12.60% 4.64% Rupiah Foreign currencies Restructured loans Pada tanggal 31 Desember 2017, 2016, dan 2015, jumlah kredit yang direstrukturisasi selama tahun berjalan berdasarkan kolektibilitas adalah: As at 31 December 2017, 2016, and 2015, total restructured loans during the year based on the collectibility are as follows: 2017 Lancar/ Pass Modal Kerja Investasi Konsumsi 399,839 243,558 58,548 701,945 Dalam Perhatian Khusus/ Special Mention 226,154 1,014,255 63,132 1,303,541 Kurang Lancar/ SubStandard Diragukan/ Doubtful 120,850 92,980 35,439 249,269 98,766 29,300 6,970 135,036 Macet/ Loss Jumlah/ Total 120,278 143 120,421 965,887 1,380,093 164,232 2,510,212 Dikurangi: Cadangan kerugian penurunan nilai (728,058) Working capital Investment Consumer Less: Allowance for impairment losses 1,782,154 2016 Modal Kerja Investasi Konsumsi Lancar/ Pass Dalam Perhatian Khusus/ Special Mention 2,176,648 3,373,647 1,121,546 6,671,841 477,763 440,469 823,844 1,742,076 Kurang Lancar/ SubStandard Diragukan/ Doubtful 3,867 6,207 201,911 211,985 Dikurangi: Cadangan kerugian penurunan nilai 41,577 5,219 82,423 129,219 Macet/ Loss Jumlah/ Total 39,979 1,074,095 1,754 1,115,828 2,739,834 4,899,637 2,231,478 9,870,949 (1,014,341) Working capital Investment Consumer Less: Allowance for impairment losses 8,856,608 Halaman – 5/98– Page 758 Annual Report CIMB NIAGA 2017
  759. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 12. KREDIT YANG DIBERIKAN (lanjutan) 12. LOANS (continued) f. Kredit yang direstrukturisasi (lanjutan) f. Restructured loans (continued) 2015 Modal Kerja Investasi Konsumsi Lancar/ Pass Dalam Perhatian Khusus/ Special Mention 937,361 524,560 1,053 1,462,974 1,029,227 644,243 39,039 1,712,509 Kurang Lancar/ SubStandard Diragukan/ Doubtful 8,364 3,937 4,509 16,810 406 1,004 4,245 5,655 Macet/ Loss Jumlah/ Total 310,008 7,639 1,499 319,146 2,285,366 1,181,383 50,345 3,517,094 Dikurangi: Cadangan kerugian penurunan nilai (482,208) Working capital Investment Consumer Less: Allowance for impairment losses 3,034,886 g. Kredit yang direstrukturisasi meliputi antara lain penjadwalan ulang pembayaran pokok kredit dan bunga, pembebasan tunggakan bunga dan penambahan fasilitas kredit. Restructured loans include loans principal and interest rescheduling, overdue interest exemption and additional loan facilities. Tidak ada kredit yang direstrukturisasi yang termasuk dalam kredit yang diberikan kepada pihak berelasi. There are no restructured loans to related parties. Kredit sindikasi g. Syndicated loans Kredit sindikasi merupakan kredit yang diberikan kepada debitur berdasarkan perjanjian pembiayaan bersama dengan bank lain. Syndicated loans represent loans provided to the debtor under syndication agreements with other banks. Keikutsertaan Bank CIMB Niaga dalam kredit sindikasi dengan bank lain pada tanggal 31 Desember 2017 adalah sebesar Rp 9.048.309 (2016: Rp 7.189.703; 2015: Rp 5.646.691). Partisipasi Bank CIMB Niaga dalam kredit sindikasi tersebut berkisar antara 1% - 50% pada tanggal 31 Desember 2017 (2016 dan 2015: 1% - 50%). Bank CIMB Niaga juga bertindak selaku pimpinan dan/atau arranger sebesar 95% dari seluruh kredit sindikasi tersebut pada tanggal 31 Desember 2017 (2016: 70%; 2015: 57%). Bank CIMB Niaga’s participation in syndicated loans with other banks as at 31 December 2017 amounted to Rp 9,048,309 (2016: Rp 7,189,703; 2015: Rp 5,646,691). Bank CIMB Niaga’s participation in syndicated loans ranged between 1% - 50% as at 31 December 2017 (2016 and: 1% - 50%). Bank CIMB Niaga also acted as lead manager and/or arranger on 95% of the total syndicated loans at 31 December 2017 (2016: 70%; 2015: 57%). Halaman – 5/99– Page Annual Report CIMB NIAGA 2017 759
  760. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 12. KREDIT YANG DIBERIKAN (lanjutan) 12. LOANS (continued) h. Cadangan kerugian penurunan nilai h. Allowance for impairment losses Mutasi cadangan kerugian penurunan nilai kredit yang diberikan adalah: Saldo awal Pembentukan selama tahun berjalan (lihat Catatan 39) Penerimaan kembali kredit yang diberikan yang telah dihapuskan selama tahun berjalan Penghapusan selama tahun berjalan Lain-lain * Saldo akhir 2017 The movements of allowance for impairment loan losses are as follows: 2016 7,664,256 7,050,246 2015 5,757,285 3,808,382 4,292,491 5,170,279 398,157 (5,640,208) 754,119 6,984,706 172,283 (3,708,825) (141,939) 7,664,256 194,608 (3,450,112) (621,814) 7,050,246 * Termasuk selisih kurs karena penjabaran mata uang asing Beginning balance Impairment during the year (refer to Note 39) Recovery of written-off loans during the year Write-off during the year Others * Ending balance Include effect of foreign currency translation * Pada tanggal 30 September 2015, Bank CIMB Niaga setuju untuk menjual aset NPL sebesar USD 192 juta (Rp 2.813 miliar - nilai penuh) kepada pihak terkait (“Pembeli”). Harga yang disetujui adalah USD 63,7 juta (Rp 933 miliar - nilai penuh) yang didapat berdasarkan penilaian dari penilai eksternal yang diterbitkan pada bulan September 2015. Penjualan ini disahkan dalam Perjanjian Jual-Beli antara Bank CIMB Niaga dan Pembeli dalam Akta No. 33 dan No. 37 tanggal 30 September 2015 oleh Notaris Liestiani Wang, SH, MKn. Pembeli merupakan Special Purpose Vehicle dan oleh karenanya mendapatkan dana dalam transaksi ini dari pemilik akhir Pembeli yaitu CIMB Group Holdings Berhad. Pada tanggal transaksi penjualan, nilai bersih aset NPL ini di laporan posisi keuangan konsolidasian Bank CIMB Niaga adalah sebesar USD 63,7 juta (Rp 933 miliar - nilai penuh ). Pada tanggal 31 Desember 2016 dan 2015, jumlah ini dicatat sebagai aset lain-lain sebesar Rp 858 miliar – nilai penuh dan Rp 878 miliar – nilai penuh (lihat Catatan 22). Manajemen berkeyakinan bahwa piutang sejumlah USD 63,7 juta adalah recoverable dan tidak memerlukan cadangan kerugian penurunan nilai. CIMB Group Holdings Berhad telah menyediakan dana di Bank CIMB Niaga sebesar USD 63,7 juta yang diperuntukan bagi penyelesaian transaksi penjualan. Atas dana ini, CIMB Group Holdings Berhad dan Bank CIMB Niaga juga telah menandatangani perjanjian escrow pada tanggal 23 Maret 2016. Transaksi ini telah diselesaikan pada tanggal 20 September 2017. On 30 September 2015, Bank CIMB Niaga agreed to sell NPL asset amounting to USD 192 million (Rp 2,813 billion - full amount) to related party (the “Buyer”). The agreed price is USD 63.7 million (Rp 933 billlion - full amount) which is based on an external valuation report issued in September 2015. This sale is stipulated in the Sale-Buy Agreement between Bank CIMB Niaga and the Buyer in Notarial Deed No. 33 and No. 37 dated 30 September 2015 by Notary Liestiani Wang, SH, MKn. As the Buyer is intended to be a Special Purpose Vehicle, the Buyer obtains funding for this transaction from the ultimate beneficiary owner, CIMB Group Holdings Berhad. As of the date of the sale, the net book value of the loan in Bank CIMB Niaga's consolidated statements of financial position was USD 63.7 million (Rp 933 billion - full amount). As at 31 December 2016 and 2015, this amount is recorded as other assets of Rp 858 billion – full amount and Rp 878 billion – full amount, respectively (refer to Note 22). Management believes that the receivables amounting to USD 63.7 million is recoverable and does not need allowance for impairment losses. CIMB Group Holdings Berhad have provided funds in Bank CIMB Niaga amounting to USD 63.7 million which is intended to be used for settlement of this transaction. Over these funds, CIMB Group Holding Berhad and Bank CIMB Niaga also signed an escrow agreement on 23 March 2016.This transaction has been settled on 20 September 2017. Halaman – 5/100– Page 760 Annual Report CIMB NIAGA 2017
  761. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 12. KREDIT YANG DIBERIKAN (lanjutan) 12. LOANS (continued) h. Cadangan kerugian penurunan nilai (lanjutan) h. Allowance for impairment losses (continued) Transaksi ini telah diketahui oleh OJK melalui suratnya No.SR-71/PB.33/2015 tanggal 28 September 2015. This transaction has been noted by FSA via its letter No.SR-71/PB.33/2015 dated 28 September 2015. Setelah penjualan, Pembeli akan mengelola aset NPL ini dan melakukan restrukturisasi kredit dengan debitur. Bank CIMB Niaga tidak memiliki keterlibatan lagi dengan kredit ini dan debitur. Pada tanggal 31 Desember 2017, 2016, dan 2015 Bank CIMB Niaga tidak lagi mengakui aset NPL ini dalam laporan posisi keuangan konsolidasian. After the sale, the Buyer would manage the NPL loan and restructure or recover the loan with the borrower. Bank CIMB Niaga has no further involvement with the loan and the debtor. As at 31 December 2017, 2016, and 2015 Bank CIMB Niaga has de-recognised the NPL asset from the consolidated statements of financial position. Mutasi cadangan kerugian penurunan nilai kredit yang diberikan untuk penilaian secara kolektif dan individual adalah: The movements of allowance for impairment loan losses for both collective and individual assessments are as follows: Kolektif/ Collective Saldo awal Pembentukan selama tahun berjalan (lihat Catatan 39) Penerimaan kembali kredit yang diberikan yang telah dihapuskan selama tahun berjalan Penghapusan selama tahun berjalan Lain-lain * Saldo akhir 3,705,420 7,664,256 1,452,601 2,355,781 3,808,382 398,157 (3,308,498) 720,728 3,221,824 (2,331,710) 33,391 3,762,882 398,157 (5,640,208) 754,119 6,984,706 2016 Individual/ Individual 3,824,784 7,050,246 1,937,462 2,355,029 4,292,491 172,283 (1,275,770) (100,601) 3,958,836 (2,433,055) (41,338) 3,705,420 172,283 (3,708,825) (141,939) 7,664,256 2015 Individual/ Individual Beginning balance Impairment during the year (refer to Note 39) Recovery of written-off loans during the year Write-off during the year Others * Ending balance Jumlah/ Total 2,248,442 3,508,843 5,757,285 1,984,659 3,185,620 5,170,279 194,608 (599,624) (602,623) 3,225,462 (2,850,488) (19,191) 3,824,784 194,608 (3,450,112) (621,814) 7,050,246 * Termasuk selisih kurs karena penjabaran mata uang asing Beginning balance Impairment during the year (refer to Note 39) Recovery of written-off loans during the year Write-off during the year Others * Ending balance Jumlah/ Total 3,225,462 Kolektif/ Collective Saldo awal Pembentukan selama tahun berjalan (lihat Catatan 39) Penerimaan kembali kredit yang diberikan yang telah dihapuskan selama tahun berjalan Penghapusan selama tahun berjalan Lain-lain * Saldo akhir Jumlah/ Total 3,958,836 Kolektif/ Collective Saldo awal Pembentukan selama tahun berjalan (lihat Catatan 39) Penerimaan kembali kredit yang diberikan yang telah dihapuskan selama tahun berjalan Penghapusan selama tahun berjalan Lain-lain * Saldo akhir 2017 Individual/ Individual Beginning balance Impairment during the year (refer to Note 39) Recovery of written-off loans during the year Write-off during the year Others * Ending balance Include effect of foreign currency translation * Halaman – 5/101– Page Annual Report CIMB NIAGA 2017 761
  762. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 12. KREDIT YANG DIBERIKAN (lanjutan) 12. LOANS (continued) h. Cadangan kerugian penurunan nilai (lanjutan) h. Allowance for impairment losses (continued) Pada tanggal 31 Desember 2017, penyisihan kerugian minimum yang dihitung berdasarkan ketentuan Bank Indonesia adalah Rp 6.087.250 (2016: Rp 7.036.041; 2015: Rp 7.214.816), sehingga pemenuhan cadangan adalah sebesar 114,74% (2016: 108,93%; 2015: 97,72%). As at 31 December 2017, the minimum allowance for possible losses calculated based on BI regulation is Rp 6,087,250 (2016: Rp 7,036,041; 2015: Rp 7,214,816), and therefore the fulfillment is 114.74% (2016: 108.93%; 2015: 97.72%). Rincian cadangan kerugian penurunan nilai pada tanggal 31 Desember 2017, 2016, dan 2015, berdasarkan jenis adalah: As at 31 December 2017, 2016, and 2015, the allowance for possible losses based on type of loans consist of: 2017 2016 2015 Modal kerja 2,869,018 2,725,499 3,558,749 Working capital Investasi 2,632,759 3,126,852 2,074,646 Investment Konsumsi 1,482,929 1,811,905 1,416,851 Consumer 6,984,706 7,664,256 7,050,246 Manajemen berpendapat bahwa jumlah cadangan kerugian penurunan nilai yang dibentuk cukup untuk menutup kerugian yang timbul akibat tidak tertagihnya kredit yang diberikan. i. Penghapusbukuan kredit macet Management believes that the allowance for impairment losses is adequate to cover losses arising from uncollectible loans. i. Pada tahun yang berakhir 31 Desember 2017, Bank CIMB Niaga melaksanakan penghapusbukuan kredit sebesar Rp 5.640.208 (2016: Rp 3.708.825; 2015: Rp 3.450.112). Adapun kriteria debitur yang dapat dihapusbukukan meliputi: Write-off loans for “Loss” loans category For the year period ended 31 December 2017, Bank CIMB Niaga write-off loans amounted to Rp 5,640,208 (2016: Rp 3,708,825; 2015: Rp 3,450,112). Loans write-off criteria are as follows: a. b. Fasilitas kredit telah mengalami penurunan nilai; Fasilitas kredit telah dibentuk cadangan kerugian penurunan nilai sebesar 100% dari pokok kredit; a. b. c. Telah dilakukan berbagai upaya penagihan dan pemulihan, namun tidak berhasil; Usaha debitur sudah tidak mempunyai prospek atau kinerja debitur buruk atau tidak ada kemampuan membayar; Hapus buku dilakukan terhadap seluruh kewajiban kreditnya, termasuk yang berasal dari fasilitas non-cash loan sehingga penghapusbukuan tidak boleh dilakukan pada sebagian kewajiban kreditnya (partial write-off); dan Diumumkan secara terbuka. c. d. e. f. d. Loan facility is classified as impaired; Loan facility has been provided with 100% allowance for impairment losses from the loan principal; Collection and recovery efforts have been performed, but the results are unsuccessful; The debtor’s business has been slow down and there is no prospect and ability to repay the loan; e. The write-offs are performed for all loan obligations, including non-cash loan facilities, and the loan obligations shall not be written-off partially; and f. Announced publicly. Halaman – 5/102– Page 762 Annual Report CIMB NIAGA 2017
  763. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 12. KREDIT YANG DIBERIKAN (lanjutan) 12. LOANS (continued) j. Kredit Usaha Kecil, Mikro, dan Menengah (UMKM) j. Jumlah UMKM pada tanggal 31 Desember 2017 adalah sebesar Rp 27.976.934 (2016: Rp 21.329.832; 2015: Rp 24.251.742). Rasio kredit UMKM terhadap jumlah kredit yang diberikan konsolidasian pada tanggal 31 Desember 2017 sebesar 15,42% (2016: 12,29%; 2015: 14,20%). Rasio ini telah sesuai dengan PBI No. 14/22/PBI/2012 tanggal 21 Desember 2012 sebagaimana telah diubah dengan PBI No. 17/12/PBI/2015 tanggal 25 Juni 2015 mengenai Pemberian Kredit atau Pembiayaan oleh Bank Umum dan Bantuan Teknis dalam Rangka Pengembangan Usaha Mikro, Kecil, dan Menengah. k. Informasi pokok lainnya sehubungan dengan kredit yang diberikan Micro, Small, and Medium Enterprises (MSME) Loans As at 31 December 2017, the outstanding balance of MSME is Rp 27,976,934 (2016: Rp 21,329,832; 2015: Rp 24,251,742). As at 31 December 2017, ratio of MSME loans to total consolidated loan is 15.42% (2016: 12.29%; 2015: 14.20%). These ratios comply with BI regulation No. 14/22/PBI/2012 dated 21 December 2012 amended with the PBI No. 17/12/PBI/2015 dated 25 June 2015 concerning The Extension of Credit or Financing by Commercial Banks and Technical Assistance in the Development of Micro, Small, and Medium Enterprises Segment. k. Other significant information relating to loans Pada tanggal 20 Januari 2005, BI mengeluarkan peraturan No. 7/3/PBI/2005 tentang ”Batas Maksimum Pemberian Kredit (BMPK) Bank Umum” yang berlaku efektif sejak tanggal 20 Januari 2005. Peraturan tersebut menetapkan batas maksimum penyediaan dana kepada satu peminjam yang bukan merupakan pihak berelasi tidak melebihi 20% dari modal Bank. Peraturan tersebut juga menetapkan batas maksimum penyediaan dana kepada satu kelompok peminjam yang bukan pihak berelasi tidak melebihi 25% dari modal Bank. Peraturan ini telah diubah dengan peraturan BI No. 8/13/PBI/2006 tanggal 5 Oktober 2006 tentang kriteria penyediaan dana kepada pihak berelasi yang dikecualikan dari perhitungan BMPK. Pada tanggal 31 Desember 2017, 2016, dan 2015, tidak terdapat pelampauan dan pelanggaran atas BMPK baik kepada pihak berelasi dan pihak tidak berelasi. On 20 January 2005, BI issued regulation No. 7/3/PBI/2005 relating to the ”Legal Lending Limit (LLL) for Commercial Banks” which was effective starting 20 January 2005. This regulation requires the maximum lending limit to one non-related party debtor which not exceed to 20% of the Bank’s capital. This regulation also requires the maximum lending limit to non-related party group of debtors which not exceed to 25% of Bank’s capital. This regulation has been changed by BI regulation No. 8/13/PBI/2006 dated 5 October 2006 regarding with criteria of lending to related parties which exempted from calculation of the LLL. As at 31 December 2017, 2016, and 2015, there was no breach and violation of the LLL requirements for both related parties and third parties. Kredit yang diberikan dijamin dengan agunan yang diikat dengan hipotik, hak tanggungan atau surat kuasa untuk menjual, deposito berjangka, dan jaminan lainnya. Loans are generally secured by collateral with registered mortgages, powers of attorney to sell, time deposits, and by other guarantees. Kredit yang dijamin dengan jaminan tunai pada tanggal 31 Desember 2017 adalah sebesar Rp 11.744.227 (2016: Rp 7.594.113; 2015: Rp 7.633.504) (lihat Catatan 24, 25, dan 26). Loans secured by cash collateral as at 31 December 2017 amounted to Rp 11,744,227 (2016: Rp 7,594,113; 2015: Rp 7,633,504) (refer to Note 24, 25, and 26). Halaman – 5/103– Page Annual Report CIMB NIAGA 2017 763
  764. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 13. PIUTANG PEMBIAYAAN KONSUMEN 13. CONSUMER FINANCING RECEIVABLES Piutang pembiayaan konsumen Entitas Anak adalah: 2017 Piutang pembiayaan konsumen - bruto Cicilan diterima dimuka Dikurangi: Pendapatan pembiayaan konsumen yang belum diakui Dikurangi: Cadangan kerugian penurunan nilai The Subsidiary’s consumer financing receivables are: 2016 2015 4,549,223 (4,511) 8,417,564 (4,823) 8,609,863 (2,173) Consumer financing receivables - gross Advance installments Less: (834,628) 3,710,084 (1,918,820) 6,493,921 (1,983,839) 6,623,851 Unearned consumer financing income (323,334) 3,386,750 (433,997) 6,059,924 (347,745) 6,276,106 Less: Allowance for impairment losses Pada tanggal 31 Desember 2017, jumlah piutang pembiayaan konsumen yang mengalami penurunan nilai adalah sebesar Rp 50.002 (2016: Rp 106.182; 2015: Rp 67.581). As at 31 December 2017, impaired consumer financing receivables amounted to Rp 50,002 (2016: Rp 106,182; 2015: Rp 67,581). Pada tanggal 31 Desember 2017, jumlah cadangan kerugian penurunan nilai untuk pembiayaan konsumen yang tidak mengalami penurunan nilai (unimpaired) dan yang mengalami penurunan nilai (impaired) adalah masingmasing sebesar Rp 304.134 dan Rp 19.200 (2016: Rp 397.092 dan Rp 36.905; 2015: Rp 321.215 dan Rp 26.530). As at 31 December 2017, total allowances for impairment losses for unimpaired consumer financing receivables and impaired consumer financing receivables are Rp 304,134 and Rp 19,200, respectively (2016: Rp 397,092 and Rp 36,905; 2015: Rp 321,215 and Rp 26,530). Berikut ini cicilan piutang pembiayaan konsumen – bruto berdasarkan tanggal jatuh tempo: Below is the installment of gross consumer financing receivables based on the maturity: 2017 < 1 bulan > 1 - ≤ 3 bulan > 3 - ≤ 12 bulan > 1 - ≤ 5 tahun 2016 63,362 519,556 1,431,141 2,535,164 4,549,223 91,596 760,174 2,148,645 5,417,149 8,417,564 2015 80,541 652,595 1,969,663 5,907,064 8,609,863 < 1 month > 1 - ≤ 3 months > 3 - ≤ 12 months > 1 - ≤ 5 years Less: Allowance for Halaman – 5/104– Page 764 Annual Report CIMB NIAGA 2017
  765. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 13. PIUTANG PEMBIAYAAN KONSUMEN (lanjutan) 13. CONSUMER FINANCING RECEIVABLES (continued) Mutasi cadangan kerugian penurunan nilai piutang atas pembiayaan konsumen adalah: 2017 Saldo awal Pembentukan selama tahun berjalan (lihat Catatan 39) Penghapusan selama tahun berjalan Saldo akhir 2016 The movements of allowance for impairment losses on consumer financing receivables are as follows: 2015 433,997 347,745 351,720 173,523 (284,186) 323,334 273,732 (187,480) 433,997 155,833 (159,808) 347,745 Beginning balance Impairment during the year (refer to Note 39) Write-off during the year Ending balance Manajemen berpendapat bahwa jumlah cadangan kerugian penurunan nilai yang dibentuk telah memadai. Management believes that the allowance for impairment losses is adequate. Tingkat bunga rata-rata per tahun untuk piutang pembiayaan konsumen adalah sebesar 12,81% untuk tahun yang berakhir 31 Desember 2017 (2016: 14,60%; 2015: 14,87%). The average annual interest rate of consumer financing receivables is 12.81% for the year ended 31 December 2017 (2016: 14.60%; 2015: 14.87%). Berikut piutang pembiayaan berdasarkan kolektibilitas: Below are the net consumer financing receivables based on the collectibility: konsumen – bersih 2017 Lancar Dalam Perhatian Khusus Kurang Lancar Diragukan Macet Dikurangi: Cadangan kerugian penurunan nilai Jumlah 2016 2015 2,639,164 1,020,918 18,551 31,444 7 3,710,084 4,848,939 1,538,800 40,047 65,979 156 6,493,921 5,363,085 1,199,229 25,859 33,862 1,816 6,623,851 (323,334) 3,386,750 (433,997) 6,059,924 (347,745) 6,276,106 Piutang pembiayaan konsumen dijamin dengan Bukti Pemilikan Kendaraan Bermotor (BPKB) atau bukti lainnya atas barang jaminan yang dibiayai. Pass Special Mention Sub-Standard Doubtful Loss Less: Allowance for impairment losses Total Consumer financing receivables are secured by Vehicle Ownership Certificates (BPKB) or other documents presenting ownership of financed assets. Halaman – 5/105– Page Annual Report CIMB NIAGA 2017 765
  766. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 14. PIUTANG SEWA PEMBIAYAAN NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 14. FINANCING LEASE RECEIVABLES Piutang sewa pembiayaan Entitas Anak adalah: The Subsidiary’s financing lease receivables are: 2017 Piutang sewa guna usaha - bruto Nilai sisa yang terjamin Pendapatan sewa pembiayaan yang ditangguhkan Simpanan jaminan Dikurangi: Cadangan kerugian penurunan nilai 2016 2015 21,264 66,682 92,073 113,490 209,947 144,698 Finance lease receivables - gross Guaranteed residual values (1,657) (66,682) 19,607 (9,646) (113,490) 82,427 (30,020) (144,698) 179,927 Unearned lease income Security deposit (8,671) 10,936 (30,446) 51,981 (22,244) 157,683 Less: Allowance for impairment losses Pada tanggal 31 Desember 2017, jumlah piutang sewa pembiayaan yang mengalami penurunan nilai adalah sebesar Rp 4.744 (2016: Rp 21.904; 2015: Rp 2.056). As at 31 December 2017, impaired financing lease receivables amounted to Rp 4,744 (2016: Rp 21,904; 2015: Rp 2,056). Cicilan piutang sewa pembiayaan yang akan diterima berdasarkan sisa waktu dari tanggal laporan posisi keuangan konsolidasian sampai dengan tanggal jatuh tempo adalah: The installment of financing lease receivables, based on remaining period from statement of financial position’s consolidated date to maturity date are as follows: 2017 < 1 bulan > 1 - ≤ 3 bulan > 3 - ≤ 12 bulan > 1 - ≤ 5 tahun 2016 2,715 6,791 10,062 1,696 21,264 Dikurangi: Cadangan kerugian 13,980 17,584 36,921 23,588 92,073 Mutasi cadangan kerugian penurunan nilai piutang sewa pembiayaan adalah: 2017 Saldo awal (Pemulihan)/pembentukan selama tahun berjalan (lihat Catatan 39) Penghapusan selama tahun berjalan Saldo akhir 2015 6,941 28,333 73,992 100,681 209,947 < 1 month > 1 - ≤ 3 months > 3 - ≤ 12 months > 1 - ≤ 5 years Less: Allowance for The movements of the allowances for impairment losses of financing lease receivables are as follows: 2016 2015 30,446 22,244 22,318 (19,245) (2,530) 8,671 8,202 30,446 6,435 (6,509) 22,244 Beginning balance (Revesal)/impairment during the year (refer to Note 39) Write-off during the year Ending balance Halaman – 5/106– Page 766 Annual Report CIMB NIAGA 2017
  767. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 14. PIUTANG SEWA PEMBIAYAAN (lanjutan) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 14. FINANCING LEASE RECEIVABLES (continued) Berikut piutang sewa pembiayaan – bersih berdasarkan kolektibilitas: 2017 Lancar Dalam Perhatian Khusus Kurang Lancar Diragukan Macet Dikurangi: Cadangan kerugian penurunan nilai Jumlah Below are the net financing lease receivables based on the collectibility: 2016 6,530 8,333 936 3,808 19,607 32,972 27,551 4,716 2,447 14,741 82,427 90,299 87,572 1,772 37 247 179,927 (8,671) 10,936 (30,446) 51,981 (22,244) 157,683 Manajemen berpendapat bahwa jumlah cadangan kerugian penurunan nilai yang dibentuk telah memadai. 15. TAGIHAN DAN LIABILITAS AKSEPTASI a. Liabilitas akseptasi Rupiah Mata uang asing b. a. 2016 By currencies 2015 1,587,393 2,597,572 4,184,965 1,529,285 2,959,226 4,488,511 1,026,739 3,225,110 4,251,849 4,184,965 4,488,511 4,251,849 1,587,393 2,597,572 4,184,965 1,117,956 2,959,226 4,077,182 964,978 3,225,109 4,190,087 Berdasarkan kolektibilitas b. Pada tanggal 31 Desember 2017, 2016, dan 2015, seluruh tagihan akseptasi digolongkan sebagai Lancar. c. Less: Allowance for impairment losses Total 15. ACCEPTANCE RECEIVABLES AND PAYABLES 2017 Dikurangi: Cadangan kerugian penurunan nilai Pass Special Mention Sub-Standard Doubtful Loss Management believes that the allowance for impairment losses is adequate. Berdasarkan mata uang Tagihan akseptasi Rupiah Mata uang asing 2015 Berdasarkan transaksi dengan pihak berelasi dan pihak ketiga Acceptance receivables Rupiah Foreign currencies Less: Allowance for impairment losses Acceptance payables Rupiah Foreign currencies By collectibility As at 31 December 2017, 2016, and 2015, all acceptance receivables were classified as Pass. c. Pada tanggal 31 Desember 2017, 2016, dan 2015, tidak terdapat tagihan dan liabilitas akseptasi yang berasal dari pihak berelasi. By transactions with related party and third party As at 31 December 2017, 2016, and 2015, there were no acceptance receivables and payables from related party. Halaman – 5/107– Page Annual Report CIMB NIAGA 2017 767
  768. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 15. TAGIHAN DAN LIABILITAS AKSEPTASI (lanjutan) d. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 15. ACCEPTANCE (continued) Berdasarkan jangka waktu perjanjian d. Tagihan dan liabilitas akseptasi berdasarkan jangka waktu perjanjian adalah: 2017 Tagihan akseptasi Rupiah < 1 bulan > 1 - ≤ 3 bulan > 3 - ≤ 6 bulan > 6 bulan Mata uang asing < 1 bulan > 1 - ≤ 3 bulan > 3 - ≤ 6 bulan > 6 bulan Dikurangi: Cadangan kerugian penurunan nilai Mata uang asing < 1 bulan > 1 - ≤ 3 bulan > 3 - ≤ 6 bulan > 6 bulan AND PAYABLES By term of agreements The acceptance receivables and payables classified according to term of agreements are as follows: 2016 2015 5,510 486,128 1,078,868 16,887 1,587,393 672 412,430 1,076,393 39,790 1,529,285 399,019 616,009 11,711 1,026,739 15,601 453,900 1,688,398 439,673 2,597,572 4,184,965 8,494 181,492 2,193,568 575,672 2,959,226 4,488,511 2,577 443,117 2,087,405 692,011 3,225,110 4,251,849 4,184,965 4,488,511 4,251,849 2017 Liabilitas akseptasi Rupiah < 1 bulan > 1 - ≤ 3 bulan > 3 - ≤ 6 bulan > 6 bulan RECEIVABLES 2016 Acceptance receivables Rupiah < 1 month > 1 - ≤ 3 months > 3 - ≤ 6 months > 6 months Foreign currencies < 1 month > 1 - ≤ 3 months > 3 - ≤ 6 months > 6 months Less: Allowance for impairment losses 2015 5,510 486,128 1,078,868 16,887 1,587,393 672 287,043 790,451 39,790 1,117,956 374,014 579,253 11,711 964,978 15,601 453,900 1,688,398 439,673 2,597,572 4,184,965 8,494 181,492 2,193,568 575,672 2,959,226 4,077,182 2,577 443,117 2,087,405 692,010 3,225,109 4,190,087 Acceptance payables Rupiah < 1 month > 1 - ≤ 3 months > 3 - ≤ 6 months > 6 months Foreign currencies < 1 month > 1 - ≤ 3 months > 3 - ≤ 6 months > 6 months Halaman – 5/108– Page 768 Annual Report CIMB NIAGA 2017
  769. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 15. TAGIHAN DAN LIABILITAS AKSEPTASI (lanjutan) e. Berdasarkan jatuh tempo (lanjutan) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 15. ACCEPTANCE (continued) e. Tagihan dan liabilitas akseptasi berdasarkan sisa umur sampai dengan jatuh tempo adalah: 2017 Tagihan akseptasi Rupiah < 1 bulan > 1 - ≤ 3 bulan > 3 - ≤ 6 bulan > 6 - ≤ 12 bulan > 1-5 tahun Mata uang asing < 1 bulan > 1 - ≤ 3 bulan > 3 - ≤ 6 bulan > 6 - ≤ 12 bulan > 1-5 tahun Dikurangi: Cadangan kerugian penurunan nilai Mata uang asing < 1 bulan > 1 - ≤ 3 bulan > 3 - ≤ 6 bulan > 6 - ≤ 12 bulan > 1-5 tahun f. 2016 2015 302,537 684,667 537,184 4,897 1,529,285 138,310 419,077 465,329 1,341 2,682 1,026,739 442,532 1,190,787 869,628 84,474 10,151 2,597,572 4,184,965 490,901 989,787 1,409,175 69,363 2,959,226 4,488,511 641,393 1,002,614 1,532,818 48,285 3,225,110 4,251,849 4,184,965 4,488,511 4,251,849 2016 89,471 410,747 460,737 1,341 2,682 964,978 442,532 1,190,787 869,628 84,474 10,151 2,597,572 4,184,965 490,901 989,787 1,409,175 69,363 2,959,226 4,077,182 641,392 1,002,614 1,532,818 48,285 3,225,109 4,190,087 Manajemen berpendapat bahwa tidak terdapat penurunan nilai atas tagihan akseptasi sehingga tidak diperlukan cadangan kerugian penurunan nilai. Foreign currencies < 1 month > 1 - ≤ 3 months > 3 - ≤ 6 months > 6 - ≤ 12 months > 1-5 years Less: Allowance for impairment losses 2015 159,271 438,265 515,522 4,898 1,117,956 f. Acceptance receivables Rupiah < 1 month > 1 - ≤ 3 months > 3 - ≤ 6 months > 6 - ≤ 12 months > 1-5 years The acceptance receivables and payables classification according to remaining period to maturity are as follows: 508,571 582,720 492,433 3,669 1,587,393 Cadangan kerugian penurunan nilai PAYABLES By maturity date (continued) 508,571 582,720 492,433 3,669 1,587,393 2017 AND The acceptance receivables and payables classification according to remaining period to maturity are as follows: Tagihan dan liabilitas akseptasi berdasarkan sisa umur sampai dengan jatuh tempo adalah: Liabilitas akseptasi Rupiah < 1 bulan > 1 - ≤ 3 bulan > 3 - ≤ 6 bulan > 6 - ≤ 12 bulan > 1-5 tahun RECEIVABLES Acceptance payables Rupiah < 1 month > 1 - ≤ 3 months > 3 - ≤ 6 months > 6 - ≤ 12 months > 1-5 years Foreign currencies < 1 month > 1 - ≤ 3 months > 3 - ≤ 6 months > 6 - ≤ 12 months > 1-5 years Allowance for impairment losses Management believes that there is no impaired acceptance receivables, therefore no allowance for impairment losses is needed. Halaman – 5/109– Page Annual Report CIMB NIAGA 2017 769
  770. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 16. PENYERTAAN 16. INVESTMENTS Metode harga perolehan Dikurangi: Cadangan kerugian penurunan nilai 2017 2016 4,464 (805) 3,659 4,464 2015 13,938 (890) 3,574 (890) 13,048 Penyertaan saham berdasarkan metode harga perolehan adalah: The details of investments in shares based on cost method are as follows: 2017 Metode Harga Perolehan Pihak berelasi PT CIMB Sun Life Pihak Ketiga PT Bank Muamalat Indonesia Tbk PT Sarana Jatim Ventura PT Sarana Yogya Ventura PT Sarana Sumbar Ventura PT Sarana Bali Ventura PT Sarana Sulsel Ventura PT Sarana Sumsel Ventura PT Sarana Jateng Ventura PT Bhakti Sarana Ventura PT Sarana Papua Ventura PT Sarana Lampung Ventura PT Sarana Surakarta Ventura PT Sarana Kalbar Ventura PT Sarana Sulut Ventura PT Sarana Maluku Ventura PT Sarana Jambi Ventura PT Sarana Riau Ventura PT Sarana Aceh Ventura Lainnya (dibawah Rp 100 juta) - nilai penuh Dikurangi: Cadangan kerugian penurunan nilai Jenis Usaha/ Nature of Business Asuransi jiwa/ Life insurance Perbankan/ Banking Modal/ Capital Ventura Modal/ Capital Ventura Modal/ Capital Ventura Modal/ Capital Ventura Modal/ Capital Ventura Modal/ Capital Ventura Modal/ Capital Ventura Modal/ Capital Ventura Modal/ Capital Ventura Modal/ Capital Ventura Modal/ Capital Ventura Modal/ Capital Ventura Modal/ Capital Ventura Modal/ Capital Ventura Modal/ Capital Ventura Modal/ Capital Ventura Modal/ Capital Ventura Lembaga pembiayaan/ Leasing Persentase Kepemilikan/ Percentage of Ownership (%) - 0.13 2016 Nilai Nominal/ Face Value Rp - 1,000 Cost method Less: Allowance for impairment losses Persentase Kepemilikan/ Percentage of Ownership (%) - 0.13 2015 Nilai Nominal/ Face Value Rp Persentase Kepemilikan/ Percentage of Ownership (%) Nilai Nominal/ Face Value Rp - 3.76 9,474 1,000 0.13 1,000 Cost method Related parties PT CIMB Sun Life Third parties PT Bank Muamalat Indonesia Tbk PT Sarana Jatim Ventura 5.81 500 5.81 500 5.81 500 3.95 300 3.95 300 3.95 300 PT Sarana Yogya Ventura PT Sarana Sumbar Ventura 3.51 250 3.51 250 3.51 250 4.68 250 4.68 250 4.68 250 PT Sarana Bali Ventura 5.13 250 5.13 250 5.13 250 PT Sarana Sulsel Ventura 3.58 250 3.58 250 3.58 250 PT Sarana Sumsel Ventura 3.44 250 3.44 250 3.44 250 PT Sarana Jateng Ventura 2.71 225 2.71 225 2.71 225 PT Bhakti Sarana Ventura 5.63 200 5.63 200 5.63 200 PT Sarana Papua Ventura 2.53 150 2.53 150 2.53 150 PT Sarana Lampung Ventura 1.85 150 1.85 150 1.85 150 PT Sarana Surakarta Ventura 2.45 100 2.45 100 2.45 100 PT Sarana Kalbar Ventura 2.85 100 2.85 100 2.85 100 PT Sarana Sulut Ventura 2.73 100 2.73 100 2.73 100 PT Sarana Maluku Ventura 2.24 100 2.24 100 2.24 100 PT Sarana Jambi Ventura 1.36 100 1.36 100 1.36 100 PT Sarana Riau Ventura 1.46 100 1.46 100 1.46 100 PT Sarana Aceh Ventura 0.05 - 1.56 89 4,464 0.05 - 1.56 89 4,464 0.05 - 1.56 89 13,938 (805) 3,659 (890) 3,574 (890) 13,048 Others (under Rp 100 million) - full amount Less: Allowance for impairment losses Halaman – 5/110– Page 770 Annual Report CIMB NIAGA 2017
  771. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 16. 16. INVESTMENTS (continued) PENYERTAAN (lanjutan) Mutasi cadangan kerugian penurunan nilai penyertaan adalah sebagai berikut: 2017 Saldo awal Pemulihan selama tahun berjalan (lihat Catatan 39) Saldo akhir 890 (85) 805 Manajemen berpendapat bahwa jumlah cadangan kerugian penurunan nilai tersebut telah memadai. 17. ASET TETAP Harga perolehan Tanah Bangunan, termasuk renovasi dan instalasi Perlengkapan, mesin dan perabot kantor Kendaraan bermotor Aset dalam pembangunan Akumulasi penyusutan Bangunan, termasuk renovasi dan instalasi Perlengkapan, mesin dan perabot kantor Kendaraan bermotor Nilai buku bersih The movements of allowance for impairment losses on investment are as follows: 2016 890 2015 890 890 Beginning balance Reversal during the year (refer to Note 39) Ending balance 890 Management believes that the above allowance for impairment losses is adequate. 17. FIXED ASSETS 1 Januari/ January Penambahan/ Additions 2017 Pengurangan/ Reklasifikasi/ Disposals Reclassification 31 Desember/ December 2,694,665 2,721 - - 2,697,386 1,934,035 38,044 (5,419) 6,220 1,972,880 2,710,779 26,752 7,366,231 97,350 428 138,543 (74,956) (1,756) (82,131) 27,554 33,774 2,760,727 25,424 7,456,417 137,961 7,504,192 66,690 205,233 (82,131) (33,774) - 170,877 7,627,294 387,040 98,410 (5,418) - 480,032 1,830,899 16,906 2,234,845 5,269,347 253,059 2,640 354,109 (74,506) (1,644) (81,568) - 2,009,452 17,902 2,507,386 5,119,908 Cost Land Buildings, including renovation and installations Office equipment, machine and furniture Motor vehicles Construction in progress Accumulated depreciation Buildings, including renovation and installations Office equipment, machine and furniture Motor vehicles Net book value Halaman – 5/111– Page Annual Report CIMB NIAGA 2017 771
  772. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 17. ASET TETAP (lanjutan) 17. FIXED ASSETS (continued) 2016 Harga perolehan Tanah Bangunan, termasuk renovasi dan instalasi Perlengkapan, mesin dan perabot kantor Kendaraan bermotor Aset dalam pembangunan Akumulasi penyusutan Bangunan, termasuk renovasi dan instalasi Perlengkapan, mesin dan perabot kantor Kendaraan bermotor Nilai buku bersih Harga perolehan Tanah Bangunan, termasuk renovasi dan instalasi Perlengkapan, mesin dan perabot kantor Kendaraan bermotor Aset dalam pembangunan Akumulasi penyusutan Bangunan, termasuk renovasi dan instalasi Perlengkapan, mesin dan perabot kantor Kendaraan bermotor Nilai buku bersih 1 Januari/ January Penambahan/ Additions Pengurangan/ Reklasifikasi/ Disposals Reclassification 31 Desember/ December 462,942 43,031 - - 2,188,692 2,694,665 1,257,183 36,944 (3,635) 1,914 641,629 1,934,035 2,717,205 25,815 4,463,145 202,973 3,320 286,268 (211,249) (2,383) (217,267) 1,850 3,764 2,830,321 2,710,779 26,752 7,366,231 2,030 4,465,175 139,752 426,020 (57) (217,324) (3,764) - 2,830,321 137,961 7,504,192 637,728 96,195 (3,676) - (343,207) 387,040 1,788,427 15,735 2,441,890 2,023,285 251,896 3,380 351,471 (209,424) (2,209) (215,309) - (343,207) 1,830,899 16,906 2,234,845 5,269,347 1 Januari/ January Penambahan/ Additions 2015 Pengurangan/ Reklasifikasi/ Disposals Reclassification 31 Desember/ December 452,654 10,856 (568) - 462,942 978,313 87,978 (6,563) 197,455 1,257,183 2,350,424 29,641 3,811,032 411,156 237 510,227 (45,605) (4,208) (56,944) 1,230 145 198,830 2,717,205 25,815 4,463,145 196,844 4,007,876 4,016 514,243 (56,944) (198,830) - 2,030 4,465,175 601,166 42,728 (6,166) - 637,728 1,594,938 14,202 2,210,306 1,797,570 238,971 4,351 286,050 (45,482) (2,818) (54,466) - 1,788,427 15,735 2,441,890 2,023,285 Rincian keuntungan penjualan aset tetap adalah: Cost Land Buildings, including renovation and installations Office equipment, machine and furniture Motor vehicles Construction in progress Accumulated depreciation Buildings, including renovation and installations Office equipment, machine and furniture Motor vehicles Net book value Cost Land Buildings, including renovation and installations Office equipment, machine and furniture Motor vehicles Construction in progress Accumulated depreciation Buildings, including renovation and installations Office equipment, machine and furniture Motor vehicles Net book value Details of gains from the sale of fixed assets are as follows: 2017 Hasil penjualan aset tetap Nilai buku bersih Keuntungan Selisih Penilaian Kembali Aset Tetap/ Increase arising on revaluation of of fixed assets 2016 1,402 (351) 1,051 3,601 (1,835) 1,766 2015 4,262 (2,195) 2,067 Proceeds from sale of fixed assets Net book value Gain Halaman – 5/112– Page 772 Annual Report CIMB NIAGA 2017
  773. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 17. ASET TETAP (lanjutan) 17. FIXED ASSETS (continued) Pengurangan aset tetap termasuk penghapusbukuan aset tetap berupa mesin kantor, peralatan, dan perabot kantor serta kendaraan bermotor yang tidak ada, rusak dan tidak terpakai dengan nilai buku sebesar Rp 213 untuk tahun yang berakhir 31 Desember 2017 (2016: Rp 180; 2015: Rp 283). The disposals of fixed assets include the write-off, damaged and unused office machines and furnitures, equipments, and motor vehicles with book value of Rp 213 for the year ended 31 December 2017 (2016: Rp 180; 2015: Rp 283). Pada tanggal 31 Desember 2017, Bank CIMB Niaga memiliki 303 (2016: 217; 2015: 210) (tidak diaudit) bidang tanah, dengan sertifikat Hak Guna Bangunan (HGB) yang mempunyai masa manfaat 20 (dua puluh) hingga 40 (empat puluh) tahun. Masa berlaku Hak Guna Bangunan (HGB) berakhir antara tahun 2018 sampai dengan 2045. Manajemen berpendapat tidak terdapat masalah dengan perpanjangan hak atas tanah karena seluruh tanah diperoleh secara sah dan didukung dengan bukti kepemilikan yang memadai. As at 31 December 2017, Bank CIMB Niaga has 303 (2016: 217; 2015: 210) (unaudited) plots of land, respectively, with “Hak Guna Bangunan” (HGB) titles which have an economic useful life of 20 (twenty) to 40 (forty) years. The landrights (HGB) have expiry date ranging from 2018 until 2045. Management believes that there will be no difficulty in obtaining the extension of the landrights as all the land was acquired legally and was supported by sufficient evidence of ownership. Seluruh aset tetap yang ada pada tanggal pelaporan 31 Desember 2017 digunakan untuk menunjang aktivitas operasi Bank CIMB Niaga. Beberapa aset tersebut sudah disusutkan penuh dan masih digunakan dalam operasi Bank CIMB Niaga sebesar Rp 1.471.283 (2016: Rp 1.420.680; 2015: Rp 1.369.750). All of the fixed assets as at the reporting date 31 December 2017 are fully used to support Bank CIMB Niaga’s operation activities. Several assets are fully depreciated and still used by Bank CIMB Niaga in its operation amounting to Rp 1,471,283 (2016: Rp 1,420,680; 2015: Rp 1,369,750). Pada tanggal 31 Desember 2017, aset tetap Bank CIMB Niaga berupa bangunan dan kendaraan bermotor telah diasuransikan kepada PT Lippo General Insurance Tbk dengan nilai pertanggungan sebesar Rp 3.679.986 (2016: Rp 3.547.375; 2015: Rp 2.976.887) dan USD 129 juta (2016: USD 155 juta; 2015: USD 166 juta). Manajemen berpendapat bahwa nilai pertanggungan tersebut cukup untuk menutup kemungkinan kerugian atas aset yang diasuransikan. As at 31 December 2017, fixed assets, including buildings and motor vehicles has been insured by Bank CIMB Niaga to PT Lippo General Insurance Tbk with an insured amount of Rp 3,679,986 (2016: Rp 3,547,375; 2015: Rp 2,976,887) and USD 129 million (2016: USD 155 million; 2015: USD 166 million). Management believes that the insured amount is adequate to cover possible losses of these assets. Sejak tahun 2016, Bank menerapkan model revaluasi untuk tanah dan bangunan sehingga nilai tercatat pada tanggal 31 Desember 2017 dan 2016 mencerminkan nilai wajar. Estimasi nilai wajar aset tetap (tanah dan bangunan berdasarkan nilai jual objek pajak) pada tanggal 31 Desember 2015 adalah Rp 2.768.030 (level 3 – hierarki nilai wajar). Manajemen berpendapat tidak terdapat indikasi penurunan nilai atas aset tetap yang dimiliki Bank CIMB Niaga. Since year 2016, the Bank has applied revaluation model for land and building thus, the carrying value as at 31 December 2017 and 2016 reflects the fair value. The estimated fair value of fixed assets (land and building based on tax object sale value) as at 31 December 2015 was Rp 2,768,030, respectively (level 3 – fair value hierarchy). Management believes that there is no indication of fixed asset impairment in the value of Bank CIMB Niaga’s fixed assets. Aset dalam pembangunan terdiri dari tanah dan bangunan termasuk renovasi dan instalasi. Konstruksi tersebut diperkirakan akan selesai di tahun 2018 dengan persentase penyelesaian hingga saat ini adalah 90% - 95%. Construction in progress comprised of the land and buildings including renovation and installations. Those constructions are estimated to be completed in 2018 with current percentages of completion of 90% - 95%. Tidak terdapat aset tetap yang digunakan Bank CIMB Niaga sebagai jaminan pinjaman. There are no fixed assets pledged by Bank CIMB Niaga for collateral. Halaman – 5/113– Page Annual Report CIMB NIAGA 2017 773
  774. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 17. ASET TETAP (lanjutan) 17. FIXED ASSETS (continued) Revaluasi aset tetap Revaluation fixed assets Pada tanggal 1 Januari 2016, Bank CIMB Niaga melakukan perubahan kebijakan akuntansi atas tanah dan bangunan dari sebelumnya menggunakan model biaya menjadi model revaluasi. Penilaian atas tanah dan bangunan dilakukan oleh penilai independen eksternal KJPP Antonius Setiady & Rekan dalam Laporan Penilaian No. KJPP-ASR-2015-099SUM tertanggal 26 Februari 2016 yang ditandatangani oleh Ir. Antonius Setiady, SCV, MAPPI (Cert), Ijin Penilai Menkeu R.I No. PB-1.08.00008, MAPPI No. 81-S.00002 atas penilaian atas aset yang dilakukan pada tanggal 24 November 2015 sampai dengan 14 Desember 2015. Penilaian dilakukan berdasarkan Standar Penilaian Indonesia, ditentukan berdasarkan transaksi pasar terkini dan dilakukan dengan ketentuan-ketentuan yang lazim. Metode penilaian yang dipakai adalah metode data pasar dan metode biaya. On 1 January 2016, Bank CIMB Niaga changed its accounting policy of land and buildings from cost model to revaluation model. The valuations of land and building are performed by the following external independent valuer, KJPP Antonius Setiady & Rekan in the Valuation Report No. KJPP-ASR-2015-099-SUM dated 26 February 2016 which signed by Ir. Antonius Setiady, SCV, MAPPI (Cert), Ijin Penilai Menkeu R.I No. PB-1.08.00008, MAPPI No. 81-S.00002 of the asset valuation done from 24 November 2015 to 14 December 2015. Valuations are performed based on Indonesian Valuation Standards based on reference to recent market transactions done on arm’s length terms. The valuation method used is market data approach and cost approach. Informasi mengenai penilaian kembali aset tetap pada tanggal 1 Januari 2016 untuk kelompok aset tanah dan bangunan yang dilakukan oleh Bank CIMB Niaga adalah sebagai berikut: Information of the revaluation of land and buildings as at 1 January 2016 performed by Bank CIMB Niaga are as follows: Tanah Bangunan Jumlah Nilai Buku sebelum Revaluasi/ Carrying Amout before Revaluation Nilai Buku setelah Revaluasi/ Carrying Amount after Revaluation 462,942 442,204 905,146 2,585,664 1,397,365 3,983,029 Keuntungan Revaluasi/ Gain on Revaluation 2,122,722 955,161 3,077,883 Nilai buku setelah revaluasi termasuk biaya-biaya pajak terkait penilaian kembali sebesar Rp 95.645. Penilaian kembali yang dilakukan atas tanah dan bangunan menghasilkan jumlah kenaikan nilai tercatat sebesar Rp 3.077.883 yang dicatat sebagai “Pendapatan Komprehensif Lain”. The carrying amount includes tax expenses related to revaluation amounted to Rp 95,645. The revaluation of land and building resulting increase in the carrying amount of land and building amounting to Rp 3,077,883 as “Other Comprehensive Income”. Penilaian kembali tanah dan bangunan untuk tujuan perpajakan dilakukan setelah mendapatkan persetujuan dari Direktorat Jenderal Pajak dengan Surat Keputusan No. KEP-372/WPJ.19/2016 tanggal 30 Maret 2016. Bank melakukan penilaian kembali aset tetap dengan mengacu pada ketentuan Peraturan Menteri Keuangan (PMK) No. 191/PMK.010/2015 tanggal 15 Oktober 2015 sebagaimana telah diubah dengan PMK No. 233/PMK.03/2015 tanggal 21 Desember 2015. Ketentuan penyusutan fiskal aset tetap untuk tujuan pajak setelah penilaian kembali dimulai sejak tanggal 1 Januari 2016. Revaluation of land and bulidings for tax purposes is performed after the approval from Directorate General of Taxes through its letter No. KEP-372/WPJ.19/2016 dated 30 March 2016. Bank performed revaluation of fixed assets in accordance with the Finance Minister Regulation (PMK) No. 191/PMK.010/2015, dated 15 October 2015, as amended by PMK No. 233/PMK.03/2015, dated 21 December 2015. The provision concerning the fiscal depreciation of fixed assets for tax purpose after revaluation is started on 1 January 2016. Halaman – 5/114– Page 774 Land Buildings Total Annual Report CIMB NIAGA 2017
  775. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 17. ASET TETAP (lanjutan) 17. FIXED ASSETS (continued) Revaluasi aset tetap (lanjutan) Revaluation fixed assets (continued) Tabel di bawah ini menganalisis aset tetap yang dicatat pada nilai wajar berdasarkan tingkatan metode penilaian. Perbedaan pada setiap tingkatan metode penilaian dijelaskan sebagai berikut: - Tingkat 1 Harga kuotasian (tidak disesuaikan) dari pasar aktif untuk aset atau liabilitas yang identik. - Tingkat 2 Input selain harga yang dikutip dari pasar yang disertakan pada tingkat 1 yang dapat diobservasi untuk aset dan liabilitas, baik secara langsung (yaitu sebagai suatu harga) atau secara tidak langsung (sebagai turunan dari harga). - Tingkat 3 Input untuk aset atau liabilitas yang tidak didasarkan pada data pasar yang dapat diobservasi (informasi yang tidak dapat diobservasi). The table below is the analysis of fixed assets carried at fair value, by level of valuation method. The different levels of valuation method defines as follows: Pengukuran nilai wajar berulang Tanah Bangunan - - Level 1 Quoted price (unadjusted) in active markets for identical assets or liabilities. Level 2 Input other than quoted prices included within level 1 that are observable for asset and liabilities, either directly (that is, as a price) or indirectly (derived from price). Level 3 Input for asset or liability that are not based on observable market data (unobservable inputs). Pengukuran nilai wajar 31 Desember 2017 dan 2016 menggunakan:/ Fair value measurement at 31 December 2017 and 2016 using: Tingkat 1/ Tingkat 2/ Tingkat 3/ Nilai wajar/ Level 1 Level 2 Level 3 Fair value - 2,585,664 1,397,365 3,983,029 - 2,585,664 1,397,365 3,983,029 Recurring fair value measurement Land Buildings Tidak terdapat perpindahan antar tingkat selama periode berjalan. Penilaian atas nilai wajar aset tetap dilakukan secara berkala (3 - 5 tahun). Manajemen berkeyakinan bahwa tidak ada perbedaan yang signifikan antara nilai wajar pada tanggal 31 Desember 2017 dan 2016. There were no transfers between level during the period. Valuation of fixed assets at fair value are performed regulary (3 - 5 years). Management believes that there is no significant change in fair value between 31 December 2017 and 2016. Nilai wajar tingkat 2 dari tanah dan bangunan dihitung dengan menggunakan pendekatan perbandingan harga pasar dan estimasi biaya reproduksi baru atau biaya pengganti baru. Harga pasar dari tanah dan bangunan yang paling mendekati disesuaikan dengan perbedaan atribut utama seperti ukuran aset, lokasi dan penggunaan aset. Untuk kedua pendekatan di atas, input yang paling signifikan dalam pendekatan penilaian ini adalah asumsi harga per meter. Level 2 fair values of land and buildings are calculated using the comparable market data approach and cost reproduction or cost replacement approach. The approximate market prices of comparable land and buildings are adjusted for differences in key attributes such as property size, location and use of an asset. For the two above approaches, the most significant input into this valuation approach is price per square meter assumptions. Halaman – 5/115– Page Annual Report CIMB NIAGA 2017 775
  776. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 17. ASET TETAP (lanjutan) 17. FIXED ASSETS (continued) Revaluasi aset tetap (lanjutan) Revaluation fixed assets (continued) Jika tanah dan bangunan dicatat sebesar harga perolehan, maka per 31 Desember 2017 dan 2016 dicatat dalam jumlah sebagai berikut: If land and buildings are presented on historical cost basis, as of 31 December 2017 and 2016 the amount would be as follows: 31 Desember/ December 2017 31 Desember/ December 2016 Harga perolehan Cost Tanah 508,694 Bangunan Land 1,331,251 803,729 (823,239) (403,273) Accumulated depreciation 1,016,706 906,429 Net book amount Akumulasi penyusutan Nilai buku 505,973 18. ASET TIDAK BERWUJUD Buildings 18. INTANGIBLE ASSETS 2017 Harga perolehan Aset tidak berwujud Aset dalam penyelesaian Akumulasi amortisasi Aset tidak berwujud Nilai buku bersih 1 Januari/ January Penambahan/ Additions Pengurangan/ Reklasifikasi/ Disposals Reclassification 31 Desember/ December 2,255,276 2,255,276 44,310 44,310 (92) (92) 385 385 2,299,879 2,299,879 30,016 2,285,292 228,829 273,139 (92) (385) - 258,460 2,558,339 802,995 802,995 1,482,297 215,171 215,171 (92) (92) - 1,018,074 1,018,074 1,540,265 Cost Intangible asset Construction in progress Accumulated amortization Intangible asset Net book value 2016 Harga perolehan Aset tidak berwujud Aset dalam penyelesaian Akumulasi amortisasi Aset tidak berwujud Nilai buku bersih 1 Januari/ January Penambahan/ Additions Pengurangan/ Reklasifikasi/ Disposals Reclassification 31 Desember/ December 1,022,399 1,022,399 301,647 301,647 (2,696) (2,696) 933,926 933,926 2,255,276 2,255,276 924,581 1,946,980 39,361 341,008 (2,696) (933,926) - 30,016 2,285,292 608,414 608,414 1,338,566 194,652 194,652 (71) (71) - 802,995 802,995 1,482,297 Cost Intangible asset Construction in progress Accumulated amortization Intangible asset Net book value Halaman – 5/116– Page 776 Annual Report CIMB NIAGA 2017
  777. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 18. ASET TIDAK BERWUJUD (lanjutan) Harga perolehan Aset tidak berwujud Aset dalam penyelesaian Akumulasi penyusutan Aset tidak berwujud Nilai buku bersih 1 Januari/ January NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 18. INTANGIBLE ASSETS (continued) Penambahan/ Additions 2015 Pengurangan/ Reklasifikasi/ Disposals Reclassification 31 Desember/ December 882,089 882,089 139,234 139,234 - 1,076 1,076 1,022,399 1,022,399 273,875 1,155,964 651,782 791,016 - (1,076) - 924,581 1,946,980 468,506 468,506 687,458 139,908 139,908 - - 608,414 608,414 1,338,566 Cost Intangible asset Construction in progress Accumulated depreciation Intangible asset Net book value Pada tanggal 18 Januari 2016, Bank CIMB Niaga telah menyelesaikan proyek pergantian core banking system dan kemudian direklasifikasi ke aset tidak berwujud. As at 18 January 2016, Bank CIMB Niaga has completed core banking system replacement project and then reclassified to intangible assets. Seluruh aset tidak berwujud yang ada pada tanggal pelaporan 31 Desember 2017 digunakan untuk penunjang aktivitas operasi Bank CIMB Niaga. Beberapa aset tersebut sudah diamortisasi penuh dan masih digunakan dalam operasi Bank CIMB Niaga sebesar Rp 497.765 (2016: Rp 397.809; 2015: Rp 298.049). All of the intangible assets as at the reporting date 31 December 2017 are fully used to support Bank CIMB Niaga’s operation activities. Several assets are fully amortized and still used by Bank CIMB Niaga in its operation amounting to Rp 497,765 (2016: Rp 397,809; 2015: Rp 298,049). pada tanggal Aset dalam pembangunan 31 Desember 2017 sebagian besar berkaitan dengan aplikasi-aplikasi core banking system, proyek Basel dan IFRS 9 yang diperkirakan selesai di tahun 2018 dengan persentase penyelesaian hingga saat ini adalah 40%-45%. Construction in progress as at 31 December 2017 mainly comprised of application related to core banking system, Basel and IFRS 9 project which are estimated to be completed in 2018 with current precentages of completion of 40%-45%. 19. ASET YANG DIAMBIL ALIH 19. FORECLOSED ASSETS Agunan yang diambil alih untuk penyelesaian kredit dicatat dalam akun “Aset yang Diambil Alih” (AYDA). Rincian dalam akun ini adalah: 2017 Aset yang diambil alih Dikurangi: Cadangan kerugian penurunan nilai Foreclosed assets in settlement of loans are included under “Foreclosed Assets” account. The details in this account are as follows: 2015 2016 502,420 683,610 934,677 (108,843) 393,577 (198,188) 485,422 (16,223) 918,454 Berdasarkan PBI No. 14/15/PBI/2012 tanggal 24 Oktober 2012 tentang Penilaian Kualitas Aktiva Bank Umum, khususnya AYDA, Bank CIMB Niaga diwajibkan untuk melakukan upaya penyelesaian terhadap AYDA yang dimiliki. Foreclosed assets Less: Allowance for impairment losses Based on BI Regulation No. 14/15/PBI/2012 dated 24 October 2012 regarding with Asset Quality Ratings for Commercial Banks and particularly on the foreclosed assets, Bank CIMB Niaga is required to have an action plan for settlement of its foreclosed assets. Halaman – 5/117– Page Annual Report CIMB NIAGA 2017 777
  778. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 19. ASET YANG DIAMBIL ALIH (lanjutan) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 19. FORECLOSED ASSETS (continued) Mutasi cadangan kerugian penurunan nilai AYDA adalah: 2017 Saldo awal Pembentukan/(pemulihan) selama tahun berjalan (lihat catatan 39) Penghapusan selama tahun berjalan Saldo akhir The changes in allowance for impairment losses of foreclosed assets are as follows: 2016 198,188 16,223 115,546 (204,891) 108,843 400,949 (218,984) 198,188 Manajemen berpendapat bahwa cadangan kerugian penurunan nilai yang telah dibentuk cukup untuk menutup kemungkinan kerugian atas AYDA. 20. PENDAPATAN BUNGA YANG MASIH AKAN DITERIMA 2017 Piutang bunga dari kredit yang diberikan Piutang bunga dari penempatan pada bank lain dan Bank Indonesia, efek-efek, Obligasi Pemerintah dan efek-efek yang dibeli dengan janji dijual kembali Lainnya 2015 16,480 (257) - 16,223 Beginning balance Impairment/(reversal) during the year (refer to note 39) Write-off during the year Ending balance Management believes that the above allowance for impairment losses is adequate to cover possible losses on foreclosed assets. 20. ACCRUED INTEREST INCOME 2016 2015 857,147 940,476 1,074,713 331,463 3,025 1,191,635 344,376 36,080 1,320,932 285,764 23,413 1,383,890 Interest receivable from loans Interest receivable from placements with other banks and Bank Indonesia, marketable securities, Government Bonds and securities purchased under resale agreements Others Lainnya termasuk pendapatan sewa yang akan diterima terkait syariah. Others included the sharia rent income to be received. Piutang bunga dari kredit yang diberikan yang merupakan kolektibilitas Lancar pada tanggal 31 Desember 2017 adalah Rp 203.180 (2016: Rp 221.175; 2015: Rp 656.198) dan kolektibilitas Dalam Perhatian Khusus pada tanggal 31 Desember 2017 adalah Rp 653.967 (2016: Rp 719.301; 2015: Rp 421.193). Seluruh piutang bunga dari penempatan pada bank lain dan Bank Indonesia, efek-efek, Obligasi Pemerintah, dan efek-efek yang dibeli dengan janji dijual kembali merupakan kolektibilitas Lancar. Interest receivables from loans which are classified as Pass at 31 December 2017 are Rp 203,180 (2016: Rp 221,175; 2015: Rp 656,198) and as Special Mention at 31 December 2017 are Rp 653,967 (2016: Rp 719,301; 2015: Rp 421,193). All interest receivables from placements with other banks and Bank Indonesia, marketable securities, Government Bonds, and securities purchased under resale agreements are classified as Pass. Halaman – 5/118– Page 778 Annual Report CIMB NIAGA 2017
  779. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 21. BEBAN DIBAYAR DI MUKA 21. PREPAID EXPENSES 2017 Sewa Hadiah untuk nasabah Beban ditangguhkan terkait pinjaman karyawan Gedung, pemeliharaan dan renovasi Promosi produk dan komunikasi Pemeliharaan terkait hardware dan software Program Kepemilikan Saham (EOP) Premi asuransi Persediaan dan inventaris Pembukaan cabang Perjalanan dinas Kegiatan perusahaan Lainnya 2016 628,740 308,690 612,334 325,191 524,213 313,484 175,071 49,854 46,190 184,675 63,394 38,128 156,510 113,429 23,597 26,644 20,145 16,623 8,425 2,569 1,124 1,085 40,381 22,773 14,558 19,797 8,382 2,569 1,040 650 30,779 6,601 8,833 16,150 16,209 3,224 1,081 4,099 135,378 1,325,541 1,324,270 1,322,808 Pada tanggal 31 Desember 2017, beban dibayar di muka sehubungan dengan sewa gedung kantor kepada pihak berelasi adalah sebesar Rp 131.069 (2016: Rp 137.310; 2015: Rp 143.552) (lihat Catatan 49). 22. ASET LAIN-LAIN Dikurangi: Cadangan kerugian penurunan nilai atas tagihan terkait transaksi derivatif gagal bayar Cadangan kerugian penurunan nilai atas aset lainnya Rental Gifts for customers Deferred expense relating to employee loans Building, maintenance and renovation Promotion product and communication Maintenance of hardware and software Equity Ownership Plan (EOP) Insurance premium Inventory and office equipment Opening branches Office travelling Office activity Others As at 31 December 2017, prepaid expenses in relation to rental of office building to related parties amounted to Rp 131,069 (2016: Rp 137,310; 2015: Rp 143,552) (refer to Note 49). 22. OTHER ASSETS 2017 Tagihan terkait dengan transaksi ATM dan kartu kredit Tagihan terkait dengan transaksi derivatif gagal bayar Tagihan terkait dengan komisi asuransi Setoran jaminan Properti terbengkalai Tagihan terkait penjualan kredit yang diberikan (lihat Catatan 12h dan 49) Lainnya 2015 2016 2015 864,087 523,806 309,039 429,499 429,499 429,499 359,997 51,778 8,164 306,309 52,547 8,164 66,550 8,443 459,883 2,173,408 858,198 274,307 2,452,830 878,105 826,834 2,518,470 (429,499) (429,499) (429,499) (9,771) (439,270) 1,734,138 (9,562) (439,061) 2,013,769 (10,002) (439,501) 2,078,969 Receivables relating to ATM and credit card transactions Receivables relating to defaulted derivative transactions Receivables relating to insurance commission Security deposits Abandoned properties Receivable relating to sale of loans (refer to Note 12h and 49) Others Less: Allowance for impairment losses on receivables related to defaulted derivatives transactions Allowance for impairment losses on other assets Halaman – 5/119– Page Annual Report CIMB NIAGA 2017 779
  780. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 22. ASET LAIN-LAIN (lanjutan) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 22. OTHER ASSETS (continued) Tagihan terkait penjualan kredit yang diberikan merupakan nilai penjualan atas kredit yang diberikan dengan pihak berelasi (lihat Catatan 12h dan 49). Receivables related to sale of loans is the selling price of loans with related party (refer to Note 12h and 49). Atas tagihan terkait dengan transaksi derivatif gagal bayar, Bank CIMB Niaga telah membentuk penyisihan penuh untuk menutup kerugian yang mungkin timbul akibat tidak tertagihnya tagihan tersebut. For receivables related to defaulted derivative transactions, Bank CIMB Niaga has provided full allowance to cover the possible losses which may arise from failure to collect the receivables. Properti terbengkalai merupakan aset tetap yang dimiliki Bank CIMB Niaga tetapi tidak digunakan untuk kegiatan usaha perbankan yang lazim sesuai dengan PBI No. 14/15/PBI/2012 tanggal 24 Oktober 2012 dan Surat Edaran No. 7/3/DPNP tanggal 31 Januari 2005 dan perubahannya Surat Edaran No. 15/28/DPNP tanggal 31 Juli 2013 perihal Penilaian Kualitas Aset Bank Umum. The abandoned properties are fixed assets held by Bank CIMB Niaga but not used for its customary banking business based on PBI No. 14/15/PBI/2012 dated 24 October 2012 and Circular Letter No. 7/3/DPNP dated 31 January 2005 and its changes Circular Letter No. 15/28/DPNP dated 31 July 2013 concerning on Evaluation of Asset Quality in Commercial Bank. Properti terbengkalai pada tanggal 31 Desember 2017 terdiri atas tanah dan bangunan dengan nilai tercatat (setelah dikurangi cadangan kerugian penurunan nilai) masing-masing adalah Rp 5.415 dan Rp 2.749 (2016: Rp 5.415 dan Rp 2.749; 2015:Rp 5.622 dan Rp 2.821). The abandoned properties as at 31 December 2017 consist of land and buildings with carrying value (less allowance for impairment losses) amounted to Rp 5,415 and Rp 2,749, respectively (2016: Rp 5,415 and Rp 2,749; 2015: Rp 5,622 and Rp 2,821). Termasuk di dalam lainnya adalah piutang terkait pembiayaan konsumen. Others include receivable related to consumer financing. Manajemen berpendapat bahwa cadangan kerugian penurunan nilai yang dibentuk atas aset lain-lain telah memadai. Management believes that the above allowance for impairment losses on other assets is adequate. 23. LIABILITAS SEGERA 23. 2017 Titipan transfer Titipan Visa card Titipan merchant Titipan umum Titipan Master card Titipan kredit Titipan personalia Lainnya OBLIGATIONS DUE IMMEDIATELY 2016 675,802 236,117 219,823 143,467 61,446 10,038 4,079 595,394 1,946,166 955,823 195,942 132,770 53,685 59,692 9,679 10,823 536,390 1,954,804 2015 287,760 153,542 80,115 56,928 23,782 2,044 2,937 179,024 786,132 Transfer liabilities Visa card liabilities Merchant liabilities General liabilities Master card liabilities Credit related liabilities Personnel related liabilities Others Halaman – 5/120– Page 780 Annual Report CIMB NIAGA 2017
  781. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 24. SIMPANAN DARI NASABAH – GIRO NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 24. Berdasarkan mata uang, pihak berelasi, dan pihak ketiga 2017 Pihak berelasi Rupiah Dolar Amerika Serikat Mata uang asing lainnya Pihak ketiga Rupiah Dolar Amerika Serikat Mata uang asing lainnya DEPOSITS FROM CUSTOMERS - DEMAND DEPOSITS By currency, related parties, and third parties 2016 2015 22,506 4,772 27,278 45,120 3,741 48,861 66,528 419,196 85 485,809 35,797,326 12,940,370 516,049 49,253,745 49,281,023 31,740,170 12,256,421 552,528 44,549,119 44,597,980 25,697,153 13,547,606 713,035 39,957,794 40,443,603 Related parties Rupiah United States Dollar Other foreign currencies Third parties Rupiah United States Dollar Other foreign currencies Pada tanggal 31 Desember 2017, giro yang didasarkan pada prinsip perbankan syariah adalah Rp 1.838.764 (2016: Rp 1.413.259; 2015: Rp 781.331). As at 31 December 2017, current account based on sharia banking principles amounted to Rp 1,838,764 (2016: Rp 1,413,259; 2015: Rp 781,331). Giro dari pihak berelasi diungkapkan dalam Catatan 49. Informasi mengenai tingkat suku bunga dan jatuh tempo diungkapkan pada Catatan 54 dan 56. Demand deposits from related parties are disclosed in Note 49. Information in respect of interest rates and maturities are disclosed in Notes 54 and 56. Pada tanggal 31 Desember 2017, giro sebesar Rp 1.013 yang dijadikan jaminan kredit yang diberikan Bank. (2016: Rp 11.370; 2015: Rp 66) (lihat Catatan 12k). As at 31 December 2017, demand deposits amounted to Rp 1,013 was pledged as collateral for the loans granted by the Bank (2016: Rp 11,370; 2015: Rp 66) (refer to Note 12k). Terkait dengan ketentuan nilai penjaminan simpanan dari nasabah – giro, lihat Catatan 25. Related to the amount of deposit guaranteed regulation of deposit from customer – demand deposits, refer to Note 25. 25. SIMPANAN DARI NASABAH – TABUNGAN 25. DEPOSITS FROM CUSTOMERS - SAVING DEPOSITS Berdasarkan mata uang, pihak berelasi, dan pihak ketiga 2017 Pihak berelasi Rupiah Dolar Amerika Serikat Mata uang asing lainnya Pihak ketiga Rupiah Dolar Amerika Serikat Mata uang asing lainnya By currency, related parties, and third parties 2016 2015 44,979 11,560 6,598 63,137 49,019 11,657 5,594 66,270 50,471 4,921 3,731 59,123 43,550,861 5,419,658 1,180,616 50,151,135 50,214,272 40,017,071 5,662,660 1,464,623 47,144,354 47,210,624 36,160,537 5,841,617 1,061,836 43,063,990 43,123,113 Related parties Rupiah United States Dollar Other foreign currencies Third parties Rupiah United States Dollar Other foreign currencies Halaman – 5/121– Page Annual Report CIMB NIAGA 2017 781
  782. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 25. SIMPANAN DARI NASABAH – TABUNGAN (lanjutan) 25. DEPOSITS FROM CUSTOMERS - SAVING DEPOSITS (continued) Berdasarkan mata uang, pihak berelasi, dan pihak ketiga (lanjutan) By currency, related parties, and third parties (continued) Tabungan dari pihak berelasi diungkapkan dalam Catatan 49. Informasi mengenai tingkat suku bunga dan jatuh tempo diungkapkan pada Catatan 54 dan 56. Saving deposits from related parties is disclosed in Note 49. Information in respect of interest rates and maturities are disclosed in Notes 54 and 56. Berdasarkan Undang-Undang No. 24 tentang Lembaga Penjaminan Simpanan (LPS) tanggal 22 September 2004, efektif sejak tanggal 22 September 2005, sebagaimana diubah dengan Undang-Undang No. 7 Tahun 2009 tanggal 13 Januari 2009 tentang Penetapan Peraturan Pemerintah Pengganti Undang-Undang No. 3 Tahun 2008, LPS dibentuk untuk menjamin liabilitas tertentu bank-bank umum berdasarkan program penjaminan yang berlaku, yang besaran nilai jaminannya dapat berubah jika memenuhi kriteria tertentu yang berlaku. Based on Law No. 24 concerning the Indonesia Deposit Insurance Agency (LPS) dated 22 September 2004, effective on 22 September 2005, which was amended by Law No. 7 Year 2009 dated 13 January 2009 regarding with the Determination of Government Regulation as Substitution of Law No. 3 Year 2008, LPS was formed to guarantee certain liabilities of commercial banks under the applicable guarantee program, which the amount of guarantee can be adjusted if meet certain criteria. Berdasarkan Peraturan Pemerintah Republik Indonesia No. 66/2008 tanggal 13 Oktober 2008 mengenai besarnya nilai simpanan yang dijamin LPS, pada tanggal 31 Desember 2015, jumlah simpanan yang dijamin LPS adalah simpanan sampai dengan Rp 2.000 untuk per nasabah per bank. Pada tanggal 6 Oktober 2015, berdasarkan Surat Edaran LPS No. 19 Tahun 2015, simpanan nasabah dijamin hanya jika suku bunganya sama dengan atau dibawah 7,50% untuk simpanan dalam Rupiah dan 1,25% untuk simpanan dalam mata uang asing. Based on Indonesia Republic’s Government Regulation No. 66/2008 dated 13 October 2008 regarding with the amount of deposit guaranteed by LPS,as at 31 December 2015, the amount of deposits covered by LPS is customer deposits up to Rp 2,000 per depositor per bank. As at 6 October 2015, based on LPS’s Circular Letter No. 19 Year 2015, deposit from customers are covered only if the rate of interest is equal to or below 7.50% for deposits denominated in Rupiah and 1.25% for deposits denominated in foreign currency. Pada tanggal 13 September 2016 terdapat pembaharuan Surat Edaran LPS No. 17 tahun 2016 terkait dengan penyesuaian suku bunga yaitu 6,25% untuk simpanan dalam Rupiah dan 0,75% untuk simpanan dalam mata uang asing untuk periode 15 September 2016 sampai 15 Januari 2017. As at 13 September 2016 there is revision of LPS’s Circular Letter No. 17 year 2016 related with adjustment of interest rate which is 6.25% for deposits denominated in Rupiah and 0.75% for deposits denominated in foreign currency for period 15 September 2016 to 15 January 2017. Pada tanggal 14 September 2017 terdapat pembaharuan berdasarkan surat edaran LPS No.18 tahun 2017 terkait dengan penyesuaian suku bunga yaitu 6,00% untuk simpanan dalam Rupiah dan 0,75% untuk simpanan dalam mata uang asing untuk periode 15 September 2017 sampai 15 Januari 2018. As at 14 September 2017 there is revision by LPS’s Circular Letter No. 18 year 2017 related with adjustment of interest rate which is 6.00% for deposits denominated in Rupiah and 0.75% for deposits denominated in foreign currency for period of 15 September 2017 to 15 January 2018. Pada tanggal 27 Desember 2017 terdapat pembaharuan terakhir berdasarkan surat edaran LPS No.23 tahun 2017 terkait dengan penyesuaian suku bunga yaitu 5,75% untuk simpanan dalam Rupiah dan 0,75% untuk simpanan dalam mata uang asing untuk periode 3 November 2017 sampai sampai 15 Januari 2018. As at 27 December 2017 there is latest revision by LPS’s Circular Letter No. 23 year 2017 related with adjustment of interest rate which is 5.75% for deposits denominated in Rupiah and 0.75% for deposits denominated in foreign currency for period of 3 November 2017 to 15 January 2018. Halaman – 5/122– Page 782 Annual Report CIMB NIAGA 2017
  783. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 25. SIMPANAN DARI NASABAH – TABUNGAN (lanjutan) 25. DEPOSITS FROM CUSTOMERS - SAVING DEPOSITS (continued) Berdasarkan mata uang, pihak berelasi, dan pihak ketiga (lanjutan) By currency, related parties, and third parties (continued) Pada tanggal 31 Desember 2017, tabungan didasarkan pada prinsip perbankan syariah adalah Rp 4.757.350 (2016: Rp 3.831.820; 2015: Rp 2.857.597). As at 31 December 2017, saving deposits based on sharia banking principles amounted to Rp 4,757,350 (2016: Rp 3,831,820; 2015: Rp 2,857,597). Pada tanggal 31 Desember 2017, tabungan sebesar Rp 133.241 dijadikan jaminan atas kredit yang diberikan Bank (2016: Rp 113.691; 2015: Rp 99.315) (lihat Catatan 12k). As at 31 December 2017, saving deposits amounted to Rp 133,241 was pledged as collateral for the loans granted by the Bank (2016: Rp 113,691; 2015: Rp 99,315) (refer to Note 12k). 26. SIMPANAN DARI NASABAH - DEPOSITO BERJANGKA a. Berdasarkan mata uang, pihak berelasi, dan pihak ketiga 2017 Pihak berelasi Rupiah Dolar Amerika Serikat Mata uang asing lainnya Pihak ketiga Rupiah Dolar Amerika Serikat Mata uang asing lainnya b. a. By currency, related parties, and third parties 2016 78,997 6,176 3,595 88,768 138,173 16,354 605 155,132 70,150,122 19,211,817 386,531 89,748,470 89,821,901 74,840,267 13,628,504 204,991 88,673,762 88,762,530 83,930,269 10,734,807 146,153 94,811,229 94,966,361 Related parties Rupiah United States Dollar Other foreign currencies Third parties Rupiah United States Dollar Other foreign currencies b. By period of contract 2017 11,625,210 40,077,030 13,428,593 9,342,971 15,348,097 89,821,901 2016 2015 10,170,442 38,984,117 15,849,548 8,167,158 15,591,265 88,762,530 Berdasarkan jatuh tempo 28,253,790 28,771,941 17,326,407 6,950,082 13,664,141 94,966,361 < 1 month > 1 - < 3 months > 3 - < 6 months > 6 - < 12 months > 12 months c. By maturity 2017 < 1 bulan > 1 - < 3 bulan > 3 - < 12 bulan > 1 - < 5 tahun > 5 tahun 2015 65,987 7,444 73,431 Berdasarkan jangka waktu kontrak < 1 bulan > 1 - < 3 bulan > 3 - < 6 bulan > 6 - < 12 bulan > 12 bulan c. 26. DEPOSITS FROM CUSTOMERS - TIME DEPOSITS 52,443,564 17,775,900 11,916,367 7,480,346 205,724 89,821,901 2016 48,501,382 22,132,115 10,330,568 7,778,634 19,831 88,762,530 2015 55,826,396 22,795,965 10,106,086 6,118,175 119,739 94,966,361 < 1 month > 1 - < 3 months > 3 - < 12 months > 1 - < 5 years > 5 years Halaman – 5/123– Page Annual Report CIMB NIAGA 2017 783
  784. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 26. SIMPANAN DARI NASABAH - DEPOSITO BERJANGKA (lanjutan) 26. DEPOSITS FROM CUSTOMERS - TIME DEPOSITS (continued) c. 27. Berdasarkan jatuh tempo (lanjutan) c. By maturity (continued) Pada tanggal 31 Desember 2017, deposito berjangka berdasarkan prinsip perbankan syariah adalah Rp 13.311.844 (2016: Rp 5.383.697; 2015: Rp 3.945.690). As at 31 December 2017, time deposits based on sharia banking principles amounted to Rp 13,311,844 (2016: Rp 5,383,697; 2015: Rp 3,945,690). Deposito berjangka dari pihak berelasi diungkapkan dalam Catatan 49. Informasi mengenai tingkat suku bunga dan jatuh tempo diungkapkan pada Catatan 54 dan 56. Time deposits from related parties are disclosed in Note 49. Information in respect to interest rates and maturities are disclosed in Notes 54 and 56. Pada tanggal 31 Desember 2017, deposito berjangka sebesar Rp 11.609.973 dijadikan jaminan kredit yang diberikan Bank CIMB Niaga (2016: Rp 7.469.052; 2015: Rp 7.534.123) (lihat Catatan 12k). As at 31 December 2017, time deposits amounting to Rp 11,609,973 was pledged as collateral for the loans granted by Bank CIMB Niaga (2016: Rp 7,469,052; 2015: Rp 7,534,123) (refer to Note 12k). Terkait dengan ketentuan nilai penjaminan simpanan dari nasabah – deposito berjangka, lihat Catatan 25. Related to the amount of deposit guaranteed regulation of deposit from customer – time deposits, refer to Note 25. SIMPANAN DARI BANK LAIN – GIRO DAN TABUNGAN 27. DEPOSITS FROM OTHER BANKS – DEMAND AND SAVING DEPOSITS Berdasarkan jenis dan mata uang By type and currency 2017 Giro Rupiah Dolar Amerika Serikat Mata uang asing lainnya Jumlah Giro Tabungan Rupiah 2016 2015 1,057,870 314,382 595,906 1,968,158 1,470,826 340,140 36,992 1,847,958 969,554 1,293,273 15,679 2,278,506 19,493 1,987,651 15,516 1,863,474 22,254 2,300,760 Demand deposits Rupiah United States Dollar Other foreign currencies Total demand deposits Saving deposits Rupiah Pada tanggal 31 Desember 2017, giro dari pihak berelasi adalah Rp 202.028 (2016: Rp 199.236; 2015: Rp 43.510) (lihat Catatan 49). As at 31 December 2017, demand deposits from related parties amounted to Rp 202,028 (2016: Rp 199,236; 2015: Rp 43,510) (refer to Note 49). Informasi mengenai tingkat suku bunga dan jatuh tempo diungkapkan pada Catatan 54 dan 56. Information in respect to interest rates and maturities are disclosed in Notes 54 and 56. Pada tanggal 31 Desember 2017, 2016, dan 2015, tidak terdapat simpanan dari bank lain – giro dan tabungan yang dijadikan jaminan atas kredit yang diberikan Bank. As at 31 December 2017, 2016, and 2015, there were no deposits from other banks – demand and saving deposits pledged as collateral for the loans granted by the Bank. Halaman – 5/124– Page 784 Annual Report CIMB NIAGA 2017
  785. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 28. SIMPANAN DARI BANK LAIN – INTER-BANK CALL MONEY DAN DEPOSITO BERJANGKAICALL MONEY a. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 28. DEPOSITS FROM OTHER BANKS – INTER-BANK CALL MONEY AND TIME DEPOSITS ER-BANK CALL MONEY Berdasarkan mata uang a. 2017 2016 By currency 2015 Inter-bank Call Money Rupiah Deposito Berjangka Rupiah Dolar Amerika Serikat b. Inter-bank Call Money 3,605,000 1,395,000 2,302,000 3,605,000 1,395,000 2,302,000 1,291,608 76 1,291,684 1,298,924 75 1,298,999 1,051,573 77 1,051,650 4,896,684 2,693,999 3,353,650 Berdasarkan jangka waktu kontrak b. 2017 < 1 bulan > 1 - < 3 bulan > 3 - < 6 bulan > 6 - < 12 bulan > 12 bulan 2,960,677 1,050,980 11,885 217,015 656,127 4,896,684 2016 1,325,668 120,429 2,730 1,101,723 143,449 2,693,999 Rupiah Time Deposits Rupiah United States Dollar By contract period 2015 2,292,837 64,398 16,887 757,012 222,516 3,353,650 < 1 month > 1 - < 3 months > 3 - < 6 months > 6 - < 12 months > 12 months Pada tanggal 31 Desember 2017, 2016, dan 2015, tidak terdapat saldo inter-bank call money dan deposito berjangka dari pihak berelasi. As at 31 December 2017, 2016, and 2015, there were no inter-bank call money and time deposits from related party. Informasi mengenai tingkat suku bunga dan jatuh tempo diungkapkan pada Catatan 54 dan 56 Information in respect to interest rates and maturities are disclosed in Notes 54 and 56 Pada tanggal 31 Desember 2017, 2016, dan 2015, tidak terdapat simpanan dari bank lain – inter-bank call money dan deposito berjangka yang dijadikan jaminan atas kredit yang diberikan. As at 31 December 2017, 2016, and 2015, there were no deposits from other banks – inter-bank call money and time deposits pledged as loans collateral. Halaman – 5/125– Page Annual Report CIMB NIAGA 2017 785
  786. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 29. EFEK-EFEK YANG DITERBITKAN 29. MARKETABLE SECURITIES ISSUED 2017 Obligasi I Bank CIMB Niaga T ahun 2011 dengan T ingkat Suku Bunga T etap (lihat Catatan 1c) Seri B Obligasi Berkelanjutan I Bank CIMB Niaga T ahap I T ahun 2012 dengan T ingkat Suku Bunga T etap (lihat Catatan 1c) Seri B Obligasi Berkelanjutan I Bank CIMB Niaga T ahap II T ahun 2013 dengan T ingkat Suku Bunga T etap (lihat Catatan 1c) Seri B Seri C Obligasi Berkelanjutan II Bank CIMB Niaga T ahap I T ahun 2016 dengan T ingkat Suku Bunga T etap (lihat Catatan 1c) Seri A Seri B Seri C Obligasi Berkelanjutan II Bank CIMB Niaga T ahap II T ahun 2017 dengan T ingkat Suku Bunga T etap (lihat Catatan 1c) Seri A Seri B Seri C Obligasi Berkelanjutan II Bank CIMB Niaga T ahap III T ahun 2017 dengan T ingkat Suku Bunga T etap (lihat Catatan 1c) Seri A Seri B Seri C Surat Hutang Jangka Menengah I CIMB Niaga Auto Finance T ahun 2013 dengan T ingkat Suku Bunga T etap (lihat Catatan 1c) Surat Hutang Jangka Menengah II CIMB Niaga Auto Finance T ahun 2013 dengan T ingkat Suku Bunga T etap (lihat Catatan 1c) 2016 - - 850,000 850,000 386,000 182,000 568,000 2015 - 1,400,000 1,400,000 850,000 850,000 432,000 386,000 182,000 1,000,000 802,000 376,000 822,000 2,000,000 - 500,000 657,000 843,000 2,000,000 - - - - - 1,320,000 1,320,000 1,400,000 1,400,000 315,000 850,000 1,165,000 - - - Bank CIMB Niaga Bonds I Year 2011 with Fixed Interest Rate (see Note 1c) Series B The Continuous Bonds I of Bank CIMB Niaga Phase I Year 2012 with Fixed Interest Rate (see Note 1c) Series B The Continuous Bonds I of Bank CIMB Niaga Phase II Year 2013 with Fixed Interest Rate (see Note 1c) Series B Series C The Continuous Bonds II of Bank CIMB Niaga Phase II Year 2016 with Fixed Interest Rate (see Note 1c) Series A Series B Series C The Continuous Bonds II of Bank CIMB Niaga Phase I Year 2017 with Fixed Interest Rate (see Note 1c) Series A Series B Series C The Continuous Bonds II of Bank CIMB Niaga Phase III Year 2017 with Fixed Interest Rate (see Note 1c) Series A Series B Series C 200,000 Medium Term Notes I CIMB Niaga Auto Finance Year 2013 with Fixed Interest Rate (see Note 1c) 400,000 Medium Term Notes II CIMB Niaga Auto Finance Year 2013 with Fixed Interest Rate (see Note 1c) Jumlah Dikurangi : Biaya emisi obligasi yang belum diamortisasi 5,418,000 3,250,000 4,485,000 (14,387) (12,296) (8,079) Total Less: Unamortised bond issuance costs Jumlah - bersih 5,403,613 3,237,704 4,476,921 Total - net Informasi mengenai tingkat suku bunga dan jatuh tempo diungkapkan pada Catatan 54 dan 56. Information in respect to interest rate and maturity is disclosed in Notes 54 and 56. Halaman – 5/126– Page 786 Annual Report CIMB NIAGA 2017
  787. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 29. EFEK-EFEK YANG DITERBITKAN (lanjutan) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 29. MARKETABLE SECURITIES ISSUED (continued) Transaksi lindung nilai Hedge transactions Pada tanggal 20 Juni 2014, Bank CIMB Niaga melakukan lindung nilai atas nilai wajar pada sebagian Obligasi Berkelanjutan I Tahun 2012 Seri B sebesar Rp 1.400.000 dengan kontrak swap tingkat suku bunga, dengan nilai nosional sebesar Rp 250.000 (lihat Catatan 11). On 20 June 2014, Bank CIMB Niaga performed fair value hedged of a proportion of Continuous Bonds I Phase I Year 2012 Series B of Rp 1,400,000 using interest rate swap contracts with notional amount of Rp 250,000 (refer to Note 11). Pada tanggal 31 Desember 2017, 2016, dan 2015, Bank CIMB Niaga telah melakukan evaluasi terhadap lindung nilai tersebut dengan menggunakan metode regresi dan hasilnya efektif. As at 31 December 2017, 2016, and 2015, Bank CIMB Niaga has performed the hedging evaluation of bond fair value by using regression method and the result is effective. Hasil net dari keuntungan instrumen lindung nilai dan keuntungan/(kerugian) hedge item yang dilindungi nilainya disajikan pada tabel berikut ini: The net effect of the gain from the hedging instrument and gain/(losses) from the hedged item are summarised below: 2017 Keuntungan instrumen lindung nilai Kerugian hedged item yang berhubungan dengan risiko yang dilindung nilai Keuntungan bersih dari transaksi lindung nilai 2016 26 5,815 2,172 Gains on hedging instrument - (4,868) 947 (1,077) 1,095 Losses on hedged item attributable to hedged risk Net gains from hedging transaction 26 30. PINJAMAN YANG DITERIMA 30. BORROWINGS 2017 Rupiah Kredit Penerusan Bank lain Dolar Amerika Serikat Bank lain 2015 2016 2015 1 2,551,853 2,551,854 1 4,421,183 4,421,184 27 4,112,931 4,112,958 3,257,869 3,257,869 5,809,723 1,014,889 1,014,889 5,436,073 2,571,672 2,571,672 6,684,630 Rupiah Two step loans Other banks United States Dollar Other Banks Informasi mengenai tingkat suku bunga dan saat jatuh tempo diungkapkan pada Catatan 54 dan 56. Information in respect to interest rates and maturities is disclosed in Notes 54 and 56. Kredit penerusan Two-step loans Kredit penerusan terdiri dari fasilitas kredit dalam mata uang Rupiah dan mata uang asing yang diperoleh dari beberapa lembaga pembiayaan internasional melalui pemerintah Indonesia yang ditujukan untuk membiayai proyek-proyek tertentu di Indonesia. Two-step loans consist of credit facilities in foreign currencies obtained from several funding institutions through the Indonesian which are designated to finance specific Indonesia. Kredit penerusan ini jatuh tempo pada akhir tahun 2017 dan dilunasi pada Januari 2018. Tingkat suku bunga per tahun untuk kredit penerusan dalam mata uang Rupiah adalah 7,54% pada tanggal 31 Desember 2017 (2016: 7,54%; 2015: 7,54%). Two-step loans be matured at the end of 2017 and settled in January 2018. The annual interest rate for two-step loans in Rupiah is 7.54% as at 31 December 2017 (2016: 7.54%; 2015: 7.54%). Rupiah and international government projects in Halaman – 5/127– Page Annual Report CIMB NIAGA 2017 787
  788. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 30. PINJAMAN YANG DITERIMA (lanjutan) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 30. BORROWINGS (continued) Bank lain Other Banks 2017 Rupiah - Pihak ketiga PT Bank Pan Indonesia Tbk PT BPD Aceh Syariah PT Bank Permata Tbk PT Bank Central Asia T bk PT Bank Mandiri (Persero) T bk PT BPD Jatim Syariah PT Bank Jabar Banten Syariah PT Bank OCBC NISP Tbk PT Bank BCA Syariah PT Bank Danamon Indonesia Tbk PT Bank Muamalat Indonesia Tbk Lembaga Pembiayaan Ekspor Indonesia PT Bank Negara Indonesia (Persero) Tbk PT Bank Rakyat Indonesia T bk PT Bank DKI PT Bank Sinarmas Syariah PT Bank Permata Syariah PT Bank Maybank Syariah Indonesia PT Bank BNI Syariah PT Bank DKI Syariah PT Bank Victoria International Tbk PT Bank QNB Kesawan Tbk PT Bank Nationalnobu T bk Dolar Amerika Serikat Pihak berelasi CIMB Bank Berhad Pihak ketiga Wachovia Bank Bank of New York, NY Citibank New York Standard Chartered Bank International Finance Corporation Shizuoka Bank Ltd Lain-lain 2016 528,118 500,000 460,000 281,386 275,718 200,000 125,000 103,517 43,461 34,653 2,551,853 1,393,564 400,000 59,446 600,161 1,133,078 50,000 100,000 219,812 36,891 183,338 81,886 63,722 57,496 41,789 4,421,183 2015 1,366,528 69,285 277,083 942,331 528,556 10,115 137,778 274,832 97,222 122,784 107,473 47,415 35,000 23,726 20,000 16,750 14,275 12,500 6,778 2,500 4,112,931 542,947 542,947 898,156 898,156 1,286,600 1,286,600 1,188,356 574,485 477,219 474,862 2,714,922 3,257,869 5,809,722 116,733 116,733 1,014,889 5,436,072 839,296 192,990 252,786 1,285,072 2,571,672 6,684,603 Rupiah - Third parties PT Bank Pan Indonesia Tbk PT BPD Aceh Syariah PT Bank Permata Tbk PT Bank Central Asia Tbk PT Bank Mandiri (Persero) Tbk PT BPD Jatim Syariah PT Bank Jabar Banten Syariah PT Bank OCBC NISP Tbk PT Bank BCA Syariah PT Bank Danamon Indonesia Tbk PT Bank Muamalat Indonesia Tbk Lembaga Pembiayaan Ekspor Indonesia PT Bank Negara Indonesia (Persero) Tbk PT Bank Rakyat Indonesia Tbk PT Bank DKI PT Bank Sinarmas Syariah PT Bank Permata Syariah PT Bank Maybank Syariah Indonesia PT Bank BNI Syariah PT Bank DKI Syariah PT Bank Victoria International Tbk PT Bank QNB Kesawan Tbk PT Bank Nationalnobu Tbk United States Dollar Related parties CIMB Bank Berhad Third parties Wachovia Bank Bank of New York, NY Citibank New York Standard Chartered Bank International Finance Corporation Shizuoka Bank Ltd Others Halaman – 5/128– Page 788 Annual Report CIMB NIAGA 2017
  789. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 30. PINJAMAN YANG DITERIMA (lanjutan) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 30. BORROWINGS (continued) Bank lain (lanjutan) Other banks (continued) Mata uang Rupiah – Pihak ketiga Rupiah currency – Third parties Pinjaman lainnya sebagian besar merupakan pinjaman yang diterima Entitas Anak dalam menjalankan bisnisnya. Pinjaman tersebut akan jatuh tempo pada berbagai tahun antara 2018 - 2020. Tingkat suku bunga per tahun untuk fasilitas tersebut untuk tahun yang berakhir 31 Desember 2017 berkisar antara 7,15% - 11,00% (2016: 8,75% - 13,00%; 2015: 9,00% - 13,50%). Other borrowings mostly represent borrowings received by Subsidiary to finance their business. The borrowing will be mature in the years between 2018 - 2020. The annual interest rates for the year ended 31 December 2017 ranged between 7.15% - 11.00% 2016: 8.75% - 13.00%; 2015: 9.00% - 13.50%). Seluruh pinjaman di atas digunakan untuk pembiayaan kendaraan roda dua dan roda empat, baik dalam kondisi baru atau bekas dan pembiayaan sewa guna usaha. All the borrowings above are used for finance of two wheelers and four wheelers, either new or used and for finance lease business. Selama tahun 2017, Bank CIMB Niaga telah melakukan pembayaran kepada PT Bank Pan Indonesia Tbk dengan nominal sebesar Rp 868.056 (2016: Rp 1.013.750; 2015: Rp 858.333). During the year 2017, Bank CIMB Niaga has paid to PT Bank Pan Indonesia Tbk amounting to Rp 868,056 (2016: Rp 1,013,750; 2015: Rp 858,333). Mata uang asing – Pihak berelasi Foreign currency – Related parties CIMB Bank Berhad Pinjaman yang diterima Bank CIMB Niaga dari CIMB Bank Berhad mempunyai plafon sebesar USD 200 juta. Pada tanggal 31 Desember 2017, saldo pinjaman adalah USD 40 juta (2016: USD 67 juta; 2015: USD 93 juta). Pinjaman ini akan jatuh tempo pada tanggal 29 Maret 2018. Tingkat suku bunga per tahun untuk tahun yang berakhir 31 Desember 2017 adalah 2,25% (2016: 1,99%; 2015: 1,29%). CIMB Bank Berhad Borrowing obtained by Bank CIMB Niaga from CIMB Bank Berhad has plafond of USD 200 million. As at 31 December 2017, the borrowing balance amounted to USD 40 million (2016: USD 67 million; 2015: USD 93 million). This borrowing will be matured on 29 March 2018. The annual interest rate for the year ended 31 December 2017 was 2.25% (2016: 1.99%; 2015: 1.29%). Pinjaman ini adalah untuk diberikan kepada nasabah yang membutuhkan pembiayaan proyek. Pinjaman ini mensyaratkan Bank CIMB Niaga untuk tidak menjual aset yang bernilai material. Bank CIMB Niaga telah memenuhi pembatasan-pembatasan yang diwajibkan dalam perjanjian pinjaman yang diterima. The borrowings are to be provided to borrowers who need project financing. The borrowing requires Bank CIMB Niaga not to sell or dispose the asset which material. Bank CIMB Niaga has fulfilled the debt covenants requirement outlined in borrowing agreements. Selama tahun 2017, Bank CIMB Niaga telah melakukan pembayaran kepada CIMB Bank Berhad dengan nominal sebesar Rp 355.209 (2016: Rp 388.444; 2015: Rp 199.600). During the year 2017, Bank CIMB Niaga has paid to CIMB Bank Berhad amounting to Rp 355,209 (2016: Rp 388,444; 2015: Rp 199,600) Mata uang asing – Pihak ketiga Foreign currency – Third parties International Finance Coorporation Pinjaman yang diterima Bank CIMB Niaga dari International Finance Corporation (IFC) merupakan pinjaman jangka panjang dengan plafon sebesar USD 61 juta. Pinjaman ini diterima pada tanggal 20 November 2012 dan telah dilakukan pelunasan dipercepat pada tanggal 31 Maret 2016. International Finance Coorporation Borrowing obtained by Bank CIMB Niaga from International Finance Corporation (IFC) is a long term borrowing with plafond of USD 61 million. The borrowing was drawdown on 20 November 2012 and fully repaid on 31 March 2016. Halaman – 5/129– Page Annual Report CIMB NIAGA 2017 789
  790. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 30. PINJAMAN YANG DITERIMA (lanjutan) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 30. BORROWINGS (continued) Bank lain (lanjutan) Other banks (continued) Mata uang asing – Pihak ketiga (lanjutan) Foreign currency – Third parties (continued) International Finance Coorporation (lanjutan) Pinjaman ini bertujuan untuk kegiatan pembiayaan perumahan. Pinjaman ini mensyaratkan Bank CIMB Niaga untuk tidak melakukan penggabungan, reorganisasi, dan konsolidasi yang diekspektasi memiliki dampak negatif yang material serta untuk tidak menjual, transfer, menyewakan, atau membuang aset yang substansial. Bank CIMB Niaga telah memenuhi pembatasan-pembatasan yang diwajibkan dalam perjanjian pinjaman yang diterima. International Finance Coorporation (continued) The purpose of the loan is for mortgage financing.The borrowing requires Bank CIMB Niaga not to perform any merger, reorganisation, and consolidation which could reasonably be expected to have a material adverse effect or not to sell, transfer, lease, or dispose substansial asset. Bank CIMB Niaga has fulfilled the debt covenants requirement outlined in borrowing agreements. Selama tahun 2016, Bank CIMB Niaga telah melakukan pembayaran kepada International Finance Corporation dengan nominal sebesar Rp 839.296 (2015: Rp 89.579). During the year 2016, Bank CIMB Niaga has paid to International Finance Corporation amounting to Rp 839,296 (2015: Rp 89,579). Shizuoka Bank Ltd Pinjaman yang diterima Bank CIMB Niaga dari Bank Shizuoka sebesar USD 14 juta, diterima pada 21 Februari 2014 dan telah jatuh tempo pada tanggal 22 Februari 2016. Tingkat suku bunga pada tahun 2016 adalah 1,13% (31 Desember 2015: 1,13%). Shizuoka Bank Ltd Borrowing obtained by Bank CIMB Niaga from Shizuoka Bank amounted to USD 14 million, was received on 21 February 2014 and has matured on 22 February 2016. The interest rate in 2016 was 1.13% (31 December 2015: 1.13%). Pinjaman ini bertujuan untuk keperluan modal kerja umum Bank CIMB Niaga. Pada kontrak perjanjian pinjaman, tidak dituliskan adanya pembatasan-pembatasan antara Bank CIMB Niaga dan Shizuoka Bank. The purpose of the borrowing is for Bank CIMB Niaga general working capital. In the loan agreement, there is no written covenant between Bank CIMB Niaga and Shizuoka Bank. Selama tahun 2016, Bank CIMB Niaga telah melakukan pembayaran kepada Shizouka Bank Ltd dengan nominal sebesar Rp 192.990. During the year 2016, Bank CIMB Niaga has paid to Shizouka Bank Ltd amounting to Rp 192,990. Lain-lain Termasuk di dalam lain-lain adalah pinjaman yang diterima dari Bank of New York, NY; Citibank, NY; Wachovia Bank; dan Standard Chartered Bank. Others Others include short term borrowings from Bank of New York, NY; Citibank, NY; Wachovia Bank; and Standard Chartered Bank. Halaman – 5/130– Page 790 Annual Report CIMB NIAGA 2017
  791. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 31. PAJAK PENGHASILAN 31. INCOME TAX a. Uang muka pajak Bank CIMB Niaga Pajak penghasilan badan 2007 - 2013 2014 2015 Pajak penghasilan Pasal 4(2), 21, 23, dan 26 2007 - 2015 Pajak Pertambahan Nilai, dan 2007 - 2015 Lain-lain Entitas Anak a. 2017 2016 2015 548,653 119,747 197,899 466,200 119,747 210,671 122,840 82,661 210,671 220,202 107,268 25,784 475,147 1,519 1,563,167 455,200 2,909 1,361,995 445,203 101,878 989,037 251,047 277,932 189,521 1,814,214 1,639,927 1,178,558 Pada tanggal 31 Desember 2015, termasuk di dalam lain-lain adalah pajak dibayar dimuka sejumlah Rp 95.645 terkait dengan rencana Bank untuk melakukan revaluasi aset tetap. Bank telah mendapat persetujuan Direktur Jenderal Pajak (DJP) untuk revaluasi aset tetap pada tanggal 30 Maret 2016. b. Entitas Anak c. b. 2017 2016 2015 100,681 - 73,865 82,098 14,142 385,571 59,931 445,502 93,210 88,241 8,443 290,575 33,322 323,897 84,240 57,119 5,837 147,196 5,459 152,655 b. Income tax expense Rekonsiliasi antara laba sebelum pajak seperti yang disajikan sebagai laba/rugi dengan beban pajak penghasilan kini adalah: Pajak tangguhan Subsidiary Taxes payable 60,089 155,377 Beban pajak penghasilan Bank CIMB Niaga Pajak kini Bank CIMB Niaga Corporate income tax 2007 - 2013 2014 2015 Income taxes Article 4(2), 21, 23, and 26 2007 - 2015 Value Added Tax, and 2007 - 2015 Others On 31 December 2015, included in others is prepaid tax amounting to Rp 95,645 related with the Bank's plan to revalue the fixed assets. The Bank has received approval from Directorate General of Tax (DGT) to revalue its fixed assets on 30 March 2016. Utang pajak Bank CIMB Niaga Pajak penghasilan badan Pasal 25 Pasal 29 Pajak penghasilan Pasal 4 (2) Pasal 21, 23, dan 26 Pajak Pertambahan Nilai Prepaid taxes Bank CIMB Niaga Corporate income tax Article 25 Article 29 Income taxes Article 4 (2) Article 21, 23, and 26 Value Added Tax Subsidiary The reconciliation between income before tax, as shown in profit/loss, with current year income tax expense are as follows: 2017 2016 (998,776) (647,569) 2015 (169,050) Bank CIMB Niaga Current tax Deferred tax (118,422) (55,887) (3,420) (1,117,198) (703,456) (172,470) Pajak kini (62,542) (36,179) 5,701 Current tax Pajak tangguhan 2,458 (60,084) (29,356) (65,535) 24,650 30,351 Deferred tax (1,061,318) (683,748) (163,349) Entitas Anak Konsolidasian Pajak kini Pajak tangguhan Subsidiary (115,964) (85,243) 21,230 (1,177,282) (768,991) (142,119) Consolidated Current tax Deferred tax Halaman – 5/131– Page Annual Report CIMB NIAGA 2017 791
  792. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 31. PAJAK PENGHASILAN (lanjutan) 31. INCOME TAX (continued) c. Beban pajak penghasilan (lanjutan) Laba konsolidasian sebelum pajak Laba sebelum pajakEntitas Anak Laba sebelum pajakBank CIMB Niaga Perbedaan temporer Perbedaan antara komersial dan fiskal pada: Beban penyusutan aset tetap Kerugian/ (keuntungan) yang belum direalisasi atas perubahan nilai wajar efek untuk tujuan diperdagangkan Beban cadangan kerugian penurunan nilai Cadangan tunjangan bonus, THR, dan tantiem Lain-lain Perbedaan tetap Perbedaan antara komersial dan fiskal pada: Beban lain yang tidak dapat diperhitungkan untuk tujuan perpajakan (Keuntungan)/kerugian penjualan aset tetap Lain-lain Penghasilan kena pajak Beban pajak penghasilan (kini) Dikurangi: Pajak dibayar dimuka Utang pajak/ (uang muka) penghasilan badan (pasal 29) (lihat Catatan 31a dan 31b) c. Income tax expense (continued) 2017 2016 4,155,020 2,850,708 570,004 (149,856) (108,036) (66,630) Consolidated income before tax Income before taxSubsidiary 4,005,164 2,742,672 503,374 Income before taxBank CIMB Niaga (111,897) Temporary differences Differences between commercial and fiscal amounts on: Fixed asset depreciation Unrealised losses/ (gains) from changes in fair value of trading securities (237,124) 2015 (436,105) 25,028 7,615 (21,765) 109,010 800,067 9,839 48,182 (98,784) (153,688) (186,893) (408,230) (223,546) (2,189) 112,329 (13,683) Allowance for impairment losses Accrued bonus, vacation pay, and tantiem Others Permanent differences Differences between commercial and fiscal amounts on: Other non deductible expense (Gains)/losses on sale of fixed assets Others 143,506 (608) 730 143,628 74,732 585 (4,168) 71,149 199,048 302 (12,841) 186,509 3,995,104 2,590,275 676,200 Taxable income 998,776 647,569 169,050 (843,399) (546,888) (379,721) Income tax expense (current) Less: Prepaid tax (210,671) Payable of/ (prepaid) corporate income tax (article 29) (refer to Note 31a and 31b) 155,377 100,681 Penghasilan kena pajak hasil rekonsiliasi merupakan dasar dalam pengisian Surat Pemberitahuan Tahunan (SPT) PPh Badan Perseroan. Taxable income results reconciliation are the basis in filing the Company’s annual Tax Return (SPT) of Corporate Income Tax. Dalam laporan keuangan konsolidasian ini, jumlah penghasilan kena pajak pada tanggal 31 Desember 2017 didasarkan atas perhitungan sementara, karena Bank belum menyampaikan Surat Pemberitahuan Tahunan pajak penghasilan badan. In these consolidated financial statements, the amount of taxable income is based on preliminary calculations, as the Bank has not yet submitted its corporate income tax returns. Perhitungan perpajakan untuk tahun yang berakhir pada tanggal 31 Desember 2016, dan 2015 sesuai dengan SPT Bank CIMB Niaga. The calculation of income tax for the year ended 31 December 2016, and 2015 conforms with Bank CIMB Niaga’s annual tax return. Halaman – 5/132– Page 792 Annual Report CIMB NIAGA 2017
  793. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 31. PAJAK PENGHASILAN (lanjutan) 31. INCOME TAX (continued) c. Beban pajak penghasilan (lanjutan) c. Income tax expense (continued) 2017 2015 Laba konsolidasian sebelum pajak 4,155,020 2,850,708 570,004 Consolidated income before tax Beban pajak penghasilan sesuai tarif pajak 1,038,755 712,677 142,501 Income tax expense at effective tax rates Pengaruh pajak atas perbedaan tetap: Beban lain yang tidak dapat diperhitungkan untuk tujuan perpajakan Perbedaan tarif pajak atas laba penjualan aset tetap Lain-lain Tax effect of permanent differences: Jumlah beban pajak d. 2016 35,877 18,683 49,762 (152) 102,802 138,527 146 37,485 56,314 76 (50,220) (382) 1,177,282 768,991 142,119 Aset pajak tangguhan – bersih d. Other non deductible expense Differences on tax rate from gain on sale of fixed assets Others Total tax expense Deferred tax asset – net 2017 1 Januari/ January Aset/(liabilitas) pajak tangguhan: Beban penyusutan aset tetap Kerugian/(keuntungan) yang belum direalisasi atas perubahan nilai wajar efek-efek dan obligasi pemerintah - bersih Beban cadangan kerugian penurunan nilai Cadangan tunjangan bonus, THR, tantiem, dan kerugian aktuarial atas program imbalan pasti Lain-lain Jumlah aset pajak tangguhan - bersih Dikreditkan/ (dibebankan) ke laba/rugi/ Credit/(charged) to profit/loss Dibebankan ke pendapatan komprehensif lainnya/ Charged to other comprehensive income 31 Desember/ Desember (198,667) (59,281) - (257,948) 52,535 6,257 (64,271) 290,324 (52,747) - 237,577 189,027 (36,720) 296,499 12,046 (22,239) (115,964) 61,425 160 (2,686) 262,498 (58,799) 177,849 (5,479) Deferred tax assets/(liabilities): Fixed assets depreciation Unrealised losses/(gains) from changes in fair value of marketable securities and government bonds - net Impairment of losses Accrued bonus, vacation pay, tantiem, and actuarial loss on post employment benefits obligation Others Total deferred tax asset - net Halaman – 5/133– Page Annual Report CIMB NIAGA 2017 793
  794. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 31. PAJAK PENGHASILAN (lanjutan) 31. INCOME TAX (continued) d. Aset pajak tangguhan – bersih (lanjutan) 1 Januari/ January Aset/(liabilitas) pajak tangguhan: Beban penyusutan aset tetap Kerugian/(keuntungan) yang belum direalisasi atas perubahan nilai wajar efek-efek dan obligasi pemerintah - bersih Beban cadangan kerugian penurunan nilai Cadangan tunjangan bonus, THR, tantiem, dan kerugian aktuarial atas program imbalan pasti Lain-lain Jumlah aset pajak tangguhan - bersih e. Dikreditkan/ (dibebankan) ke laba/rugi/ Credit/(charged) to profit/loss (89,641) (109,026) 195,169 1,903 90,308 200,016 214,092 94,650 504,578 (46,723) (131,413) (85,243) 1 Januari/ January Aset/(liabilitas) pajak tangguhan: Beban penyusutan aset tetap Kerugian/(keuntungan) yang belum direalisasi atas perubahan nilai wajar efek-efek dan obligasi pemerintah - bersih Beban cadangan kerugian penurunan nilai Cadangan tunjangan bonus, THR, tantiem, dan kerugian aktuarial atas program imbalan pasti Lain-lain Jumlah aset pajak tangguhan - bersih d. Dikreditkan/ (dibebankan) ke laba/rugi/ Credit/(charged) to profit/loss Deferred tax asset – net (continued) 2016 (Dibebankan)/dikreditkan ke pendapatan komprehensif lainnya/ (Charged)/credit to other comprehensive income 31 Desember/ December - (198,667) (144,537) 52,535 - 290,324 21,658 43 (122,836) 189,027 (36,720) 296,499 2015 Dikreditkan/(dibebankan) ke pendapatan komprehensif lainnya/ Credit/(charged) to other comprehensive income 31 Desember/ December (61,667) (27,974) - (89,641) 135,176 (5,441) 65,434 195,169 87,848 2,460 - 90,308 214,675 32,615 408,647 (547) 52,732 21,230 (36) 9,303 74,701 214,092 94,650 504,578 Administrasi Deferred tax assets/(liabilities): Fixed assets depreciation Unrealised losses/(gains) from changes in fair value of marketable securities and government bonds - net Impairment of losses Accrued bonus, vacation pay, tantiem, and actuarial loss on post employment benefits obligation Others Total deferred tax asset - net Deferred tax assets/(liabilities): Fixed assets depreciation Unrealised losses/(gains) from changes in fair value of marketable securities and government bonds - net Impairment of losses Accrued bonus, vacation pay, tantiem, and actuarial loss on post employment benefits obligation Others Total deferred tax asset - net e. Administration Berdasarkan Undang-Undang Perpajakan yang berlaku di Indonesia, Perusahaan menghitung, menetapkan, dan membayar sendiri besarnya jumlah pajak yang terhutang. Direktur Jenderal Pajak (DJP) dapat menetapkan atau mengubah liabilitas pajak dalam batas waktu 5 (lima) tahun sejak saat terhutangnya pajak. Under the Taxation Laws of Indonesia, the Company calculates, determines, submits tax returns on the basis of self assessment. The Director General of Tax (DGT) may assess or amend taxes within 5 (five) years since the tax becomes due. Halaman – 5/134– Page 794 Annual Report CIMB NIAGA 2017
  795. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 31. PAJAK PENGHASILAN (lanjutan) 31. INCOME TAX (continued) f. Surat ketetapan pajak f. Tax assessment letters Tahun fiskal 2008 eks PT Bank Lippo Tbk Fiscal year 2008 ex PT Bank Lippo Tbk Pada tanggal 17 September 2010, sebagai kelanjutan dari audit pajak yang dilakukan oleh kantor pajak atas tahun fiskal 2008 terkait dengan eks PT Bank Lippo Tbk, Bank CIMB Niaga menerima Surat Ketetapan Pajak untuk tahun pajak 2008 yang menyatakan kurang bayar atas pajak penghasilan badan pasal 29, pajak penghasilan pasal 23, 4(2), 26, dan 21, dan pajak pertambahan nilai dengan jumlah Rp 537.348 (termasuk denda dan sanksi administrasi). Setelah melakukan evaluasi atas surat ketetapan pajak tersebut dan walaupun Bank CIMB Niaga tidak setuju terhadap sebagian temuan tersebut, Bank CIMB Niaga telah membayar seluruh pajak kurang bayar tersebut pada tanggal 14 Oktober 2010. Pada tanggal 10 Desember 2010, Bank CIMB Niaga telah mengajukan keberatan kepada kantor pajak dan atas keberatan tersebut dilakukan banding pada Pengadilan Pajak. Pajak kurang bayar sebesar Rp 537.348 tersebut dicatat sebesar Rp 479.411 pada akun uang muka pajak dan sebesar Rp 57.937 pada akun beban bukan operasional tahun 2010. On 17 September 2010, as a result of tax audit conducted by the tax authority in respect of fiscal year 2008 related with ex PT Bank Lippo Tbk, Bank CIMB Niaga has received the tax assessment letter for the fiscal year 2008 which stated that there was an underpayment of corporate income tax article 29, income tax articles 23, 4(2), 26, and 21, and value added tax with total amounting to Rp 537,348 (include penalty and administrative charges). After evaluating the tax assessment letter, and even though Bank CIMB Niaga did not agree to some tax findings, Bank CIMB Niaga has already paid to the tax office full underpayment amount on 14 October 2010. On 10 December 2010, Bank CIMB Niaga has submitted the tax objection letter to the tax office and subsequently the objection has been submitted to Tax Court. The above underpayment of tax amounted to Rp 537,348 has been recorded as prepaid taxes and non-operating expenses amounted to Rp 479,411 and Rp 57,937, respectively in 2010. Berikut ini ringkasan sengketa dan banding yang diajukan: Below is the summary of the dispute and appeal: Proses sengketa dan banding/ The process of the dispute and appeal Tahun fiskal/ Fiscal year Jenis pajak/ Tax type 2008 eks PT Bank Lippo Tbk/ 2008 ex PT Bank Lippo Tbk Pajak penghasilan pasal 26/ Income tax article 26 Jumlah/ Amount 2,600 Pajak pertambahan nilai (PPN)/ Value added tax (VAT) 10,830 Pajak penghasilan pasal 23 dan 26/ Income tax articles 23 and 26 52,034 Pajak penghasilan badan pasal 29, pajak penghasilan pasal 4(2) dan 21/ Corporate income tax article 29, income tax articles 4(2) and 21 34,949 Pajak pertambahan nilai (PPN)/ Value added tax (VAT) 378,998 479,411 Status Dimenangkan oleh Bank di Pengadilan Pajak dan pengembalian sebesar Rp 2.600 telah diterima. Direktorat Jenderal Pajak (DJP) telah mengajukan Memo Peninjauan Kembali (PK) ke tingkat Mahkamah Agung pada tanggal 5 Juni 2013/ Was won by the Bank at Tax Court and the refund amounting to Rp 2,600 has been received. Director General of Taxation (DGT) has submitted Memo of Reconsideration Review to Supreme Court on 5 June 2013 Dimenangkan oleh Bank di Pengadilan Pajak dan pengembalian sebesar Rp 9.652 telah diterima. Direktorat Jenderal Pajak (DJP) telah mengajukan Memo Peninjauan Kembali (PK) ke tingkat Mahkamah Agung pada tanggal 23 Mei 2014/ Was won by the Bank at Tax Court and the refund amounting to Rp 9,652 has been received. Director General of Taxation (DGT) has submitted Memo of Reconsideration Review to Supreme Court on 23 May 2014. Dimenangkan oleh Bank di Mahkamah Agung dan pengembalian sebesar Rp 53,018 telah diterima/ Was won by the Bank at Supreme Court and the refund amounting to Rp 53,018 has been received Dimenangkan oleh Bank di Pengadilan Pajak dan pengembalian sebesar Rp 35,140 telah diterima. Direktorat Jenderal Pajak (DJP) telah mengajukan Memo Peninjauan Kembali (PK) ke tingkat Mahkamah Agung pada tanggal 25 Februari 2015/ Was won by the Bank at Tax Court and the refund amounting to Rp 35,140 has been received. Director General of Taxation (DGT) has submitted Memo of Reconsideration Review to Supreme Court on 25 February 2015 Kalah di Pengadilan Pajak dan Bank telah mengajukan Memo Peninjauan Kembali (PK) ke tingkat Mahkamah Agung pada tanggal 22 Mei 2014/ Lost in Tax Court and the Bank has submitted Memo of Reconsideration Review to Supreme Court on 22 May 2014 Masih tercatat sebagai pajak dibayar dimuka/ Still recorded as prepaid taxes - - - - 378,998 378,998 Halaman – 5/135– Page Annual Report CIMB NIAGA 2017 795
  796. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 31. PAJAK PENGHASILAN (lanjutan) 31. INCOME TAX (continued) f. Surat ketetapan pajak (lanjutan) f. Tax assessment letters (continued) Tahun fiskal 2008 eks PT Bank Niaga Tbk Fiscal year 2008 ex PT Bank Niaga Tbk Pada tanggal 2 Desember 2011, sebagai kelanjutan dari audit pajak yang dilakukan oleh kantor pajak atas tahun fiskal 2008 terkait dengan eks PT Bank Niaga Tbk, Bank CIMB Niaga menerima Surat Ketetapan Pajak yang menyatakan kurang bayar atas Pajak Penghasilan Badan Pasal 29, Pajak Penghasilan Pasal 23, 4(2), 26, dan 21, dan Pajak Pertambahan Nilai dengan jumlah Rp 341.212 (termasuk denda dan sanksi administrasi). Setelah melakukan evaluasi atas surat ketetapan pajak tersebut dan walaupun Bank CIMB Niaga tidak setuju terhadap sebagian temuan tersebut, Bank CIMB Niaga telah membayar seluruh kurang bayar pajak tersebut pada tanggal 30 Desember 2011. Kurang bayar pajak sebesar Rp 341.212 tersebut dicatat masing-masing sebesar Rp 303.867 pada akun uang muka pajak, Rp 31.402 pada akun beban bukan operasional, dan Rp 5.943 pada akun beban pajak penghasilan tahun 2011. On 2 December 2011, as a result of tax audit conducted by the tax authority in respect of fiscal year 2008 related with ex PT Bank Niaga Tbk, Bank CIMB Niaga has received the tax assessment letter which stated that there was an underpayment of corporate income tax article 29, income tax articles 23, 4(2), 26, and 21, and value added tax with total amounting to Rp 341,212 (include penalty and administrative charges). After evaluating the tax assessment letter, and even though Bank CIMB Niaga did not agree to some tax findings, Bank CIMB Niaga has already paid to the tax office full underpayment amount on 30 December 2011. The underpayment of tax amounted to Rp 341,212 has been recorded as prepaid taxes, non-operating expenses, and income tax expense in 2011 amounted to Rp 303,867, Rp 31,402, and Rp 5,943, respectively. Berikut ini proses sengketa dan banding yang diajukan: Below is the summary of the dispute and appeal: Proses sengketa dan banding/ The process of the dispute and appeal Tahun fiskal/ Fiscal year Jenis pajak/ Tax type Jumlah/ Amount 2008 eks PT Bank Niaga Tbk/ 2008 ex PT Bank Niaga Tbk Pajak penghasilan pasal 23, 4(2), dan 21/ Income tax articles 23, 4(2), and 21 13,185 Pajak penghasilan badan pasal 29/ Corporate income tax article 29 237,147 Diajukan banding sebesar Rp 204.761 sedangkan sisanya tidak diajukan banding sebesar Rp 32.386 telah dicatat sebagai beban pajak penghasilan dan beban bukan operasional tahun 2013 masing-masing sebesar Rp 21.883 dan Rp 10.503. Menang di Pengadilan Pajak dan pengembalian sebesar Rp 204.761 telah diterima oleh Bank pada tahun 2015. Direktorat Jenderal Pajak (DJP) telah mengajukan Memo Peninjauan Kembali (PK) ke tingkat Mahkamah Agung pada tanggal 25 Februari 2015/ Had been appealed amounting to Rp 204,761 while the remaining amount of Rp 32,386 have been recorded as income tax expense and non-operational exepense in 2013 amounting to Rp 21,883 and Rp 10,503, respectively. Won at Tax Court and the refund amounting to Rp 204,761 has been received by Bank in 2015. Director General of Taxation (DGT) has submitted Memo of Reconsideration Review to Supreme Court on 25 February 2015. Pajak penghasilan pasal 26/ Income tax article 26 29,470 Pajak pertambahan nilai (PPN)/ Value added tax (VAT) 24,065 Kalah di Pengadilan Pajak dan Bank telah mengajukan Memo Peninjauan Kembali (PK) ke tingkat Mahkamah Agung pada tanggal 25 Februari 2015. Sampai dengan tanggal laporan ini pengembalian dari Direktorat Jenderal Pajak masih belum diterima./ Lost at Tax Court and the Bank has submitted Memo of Reconsideration Review to Supreme Court on 25 February 2015. Until the date of this report the refund has not been received. Dimenangkan oleh Bank di Pengadilan Pajak dan dan pengembalian sebesar Rp 5.416 telah diterima. Nilai yang tidak diajukan banding sebesar Rp 17.917 telah dicatat sebagai beban non-operasional pada tahun 2015. Direktorat Jenderal Pajak (DJP) telah mengajukan Memo Peninjauan Kembali (PK) ke tingkat Mahkamah Agung pada tanggal 25 Februari 2015. Sisa pengembalian yang belum diterima ini masih tercatat sebagai pajak dibayar dimuka pada tanggal 31 December 2016. Sampai dengan tanggal laporan ini pengembalian dari Direktorat Jenderal Pajak masih belum diterima/ Was won by the Bank at Tax Court and the refund amounting to Rp 5,416 has been received, while the remaining amount of Rp 17,917 has been recorded as non-operational expense in 2015. Director General of Taxation (DGT) has submitted Memo of Reconsideration Review to Supreme Court on 25 February 2015. The remaining unreceived refund is still recorded as prepaid taxes as at 31 December 2016. Until the date of this report the refund has not been received. 303,867 Status Tidak diajukan banding dan telah dicatat pada akun beban bukan operasional tahun 2013/ Were not appealed and have been recorded as non-operational expense in 2013. Masih tercatat sebagai pajak dibayar dimuka/ Still recorded as prepaid taxes - Halaman – 5/136– Page 796 Annual Report CIMB NIAGA 2017 - 29,470 812 30,282
  797. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 31. PAJAK PENGHASILAN (lanjutan) 31. INCOME TAX (continued) f. Surat ketetapan pajak (lanjutan) f. Tax assessment letters (continued) Tahun fiskal 2007 eks PT Bank Lippo Tbk Fiscal year 2007 ex PT Bank Lippo Tbk Pada tanggal 27 Desember 2013, sebagai kelanjutan dari audit pajak yang dilakukan oleh kantor pajak atas tahun fiskal 2007 terkait dengan eks PT Bank Lippo Tbk, Bank CIMB Niaga menerima Surat Ketetapan Pajak yang menyatakan kurang bayar atas Pajak Penghasilan Badan Pasal 29, Pajak Penghasilan Pasal 23, 26, 4(2), 21, dan Pajak Pertambahan Nilai dengan jumlah Rp 179.947 (termasuk denda dan sanksi administrasi). Pada tanggal 24 Januari 2014 Bank CIMB Niaga melakukan pembayaran SKPKB sebesar Rp 179.947 dan dicatat sebagai biaya Pajak perseroan sebesar Rp 141, biaya koreksi dan denda Pajak sebesar Rp 68, sedangkan sebesar Rp 179.738 dicatat sebagai Biaya Dibayar Dimuka Pajak Perseroan atas hasil pemeriksaan Pajak yang tidak disetujui oleh Bank CIMB Niaga. Bank mengajukan banding ke Pengadilan Pajak. On 27 December 2013, as a result of tax audit conducted by the tax authority in respect of fiscal year 2007 related with ex PT Bank Lippo Tbk, Bank CIMB Niaga has received the tax assessment letter which stated that there was an underpayment of corporate income tax article 29, income tax articles 23, 26, 4(2), 21, and value added tax with total amount of Rp 179,947 (including penalty and administrative charges). Bank CIMB Niaga has paid the underpayment amounting to Rp 179,947 on 24 January 2014 and recorded Rp 141 as income tax expense, Rp 68 as tax penalty, and prepaid taxes amounting to Rp 179,738 on which the tax finding result is not agreed by Bank CIMB Niaga. The Bank has appealed To.Tax.Court. Pada tanggal 31 Januari 2017, Pengadilan Pajak telah memutuskan sengketa Pajak Penghasilan Pasal 21 yang dimenangkan seluruhnya oleh Bank CIMB Niaga, yaitu sebesar Rp 7.067. Pada tanggal 28 September 2017, Pengadilan Pajak telah memutuskan sengketa Pajak Penghasilan Pasal 23 yang dimenangkan oleh Bank CIMB Niaga yaitu sebesar Rp. 11.491 dan Pajak Penghasilan Pasal 4(2) yang dimenangkan sebagian oleh Bank CIMB Niaga yaitu sebesar Rp 6.312. Atas jumlah pajak yang dimenangkan tersebut, sampai dengan tanggal laporan ini pengembalian dari Direktorat Jenderal Pajak masih belum diterima. On 31 January 2017, Tax Court has decided the dispute of income tax article 21 was entirely won by the Bank amounting Rp 7,067. On 28 September 2017, Tax Court has decided the dispute of income tax article 23 was entirely won by the Bank amounting Rp 11,491 and the dispute of income tax article 4(2) was partially won by the Bank amounting Rp 6,312. Until the date of this report the refund has not been received. Tahun fiskal 2011 Fiscal year 2011 Pada tanggal 30 November 2015, sebagai kelanjutan dari audit pajak yang dilakukan oleh kantor pajak atas tahun fiskal 2011 terkait dengan PT Bank CIMB Niaga Tbk, Bank menerima Surat Ketetapan Pajak yang menyatakan kurang bayar atas Pajak Penghasilan Badan Pasal 29, Pajak Penghasilan Pasal 23, 4(2), 21 dan 26, dan Pajak Pertambahan Nilai dengan jumlah Rp 444.109 (termasuk denda dan sanksi administrasi). Setelah melakukan evaluasi atas surat ketetapan pajak tersebut dan walaupun Bank CIMB Niaga tidak setuju terhadap sebagian temuan tersebut, Bank CIMB Niaga telah membayar seluruh kurang bayar pajak tersebut pada tanggal 29 Desember 2015 atas Pajak Penghasilan Badan Pasal 29 dan Pajak Pertambahan Nilai masing-masing sebesar Rp 165 dan Rp 6.874, pada tanggal 30 Desember 2015 atas Surat Tagihan Pajak terhadap Pajak Pertambahan Nilai sebesar Rp 2.229 dan pada tanggal 26 Februari 2016 terhadap sisa kekurangan kurang bayar yang harus dibayarkan sebesar Rp 434.805. On 30 November 2015, as a result of tax audit conducted by the tax authority in respect of fiscal year 2011 related with PT Bank CIMB Niaga Tbk, Bank has received the tax assessment letter which stated that there was an underpayment of corporate income tax article 29, income tax articles 23, 4(2), 21 and 26, and value added tax with total amounting to Rp 444,109 (include penalty and administrative charges). After evaluating the tax assessment letter, and even though Bank CIMB Niaga did not agree to some tax findings, Bank CIMB Niaga has already paid to the tax office full underpayment amount on 29 December 2015 of corporate income tax article 29 and value added tax amounted to Rp 165 and Rp 6,874, respectively, on 30 December 2015 of Tax Billing of value added tax amounted to Rp 2,229 and on 26 February 2016 for the remaining underpayment amounted to Rp 434,805. Halaman – 5/137– Page Annual Report CIMB NIAGA 2017 797
  798. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 31. PAJAK PENGHASILAN (lanjutan) 31. INCOME TAX (continued) f. Surat ketetapan pajak (lanjutan) f. Tax assessment letters (continued) Tahun fiskal 2011 (lanjutan) Fiscal year 2011 (continued) Kurang bayar pajak sebesar Rp 444.109 tersebut dicatat masing-masing sebesar Rp 437.070 pada akun uang muka pajak dan Rp 7.039 pada akun beban bukan operasional tahun 2015. Bank telah mengajukan keberatan ke Direktorat Jenderal Pajak (DJP) pada tanggal 29 Februari 2016. The underpayment of tax amounted to Rp 444,109 has been recorded as prepaid taxes and non-operating expenses amounting to Rp 437,070 and Rp 7,039, respectively in 2015. The Bank has submitted the appeal to Director General of Taxation (DGT) on 29 February 2016. Pada tanggal 7 Desember 2016, DJP telah mengeluarkan Keputusan Keberatan atas PPh pasal 26 dimana DJP menolak seluruhnya atas keberatan yang diajukan oleh Bank, dan Bank telah mengajukan banding atas hasil keputusan keberatan PPh pasal 26 tersebut kepada Pengadilan Pajak pada tanggal 3 Maret 2017. On 7 December 2016, decision letter from DGT has been received and rejected all the objection of income tax article 26 by the Bank and on 3 March 2017 Bank had been appealed to the Tax Court for all rejected of tax article 26. Pada tanggal 23 Januari 2017, DJP mengeluarkan keputusan keberatan atas PPh pasal 4(2) yang menerima sebagian keberatan yang diajukan oleh Bank yaitu sebesar Rp 32.369. Pada tanggal 20 Februari 2017, DJP telah mengeluarkan Keputusan Keberatan atas PPh Badan pasal 29, PPh pasal 21 dan PPN, dimana atas PPh Badan pasal 29 DJP menerima sebagian keberatan yang diajukan oleh Bank yaitu sebesar Rp 74.975, sedangkan atas PPh pasal 21 dan PPN DJP menolak seluruh keberatan yang diajukan oleh Bank. Bank telah menerima pengembalian dana atas keputusan tersebut. On 23 January 2017, DGT has granted part the objection of the income tax article 4(2) amounting to Rp 32,369. On 20 February 2017, decision letters from DGT has been received for the Corporate Income Tax article 29, income tax article 21 and Value Added Tax, whereas for the Corporate Income Tax article 29 DGT has granted part of the objection amounting to Rp 74,975, whilst the objection of income tax article 21 and value added tax have been rejected all by DGT. The Bank has received the refund from the grants. Pada tanggal 18 Mei 2017, Bank CIMB Niaga telah mengajukan banding kepada Pengadilan Pajak atas keputusan keberatan PPN dan PPh Badan Pasal 29. On 18 May 2017, CIMB Niaga has been appealed to the Tax Court for all rejected objection of Value Added Tax and income tax article 29. Sampai dengan tanggal laporan ini, sidang banding masih berlangsung dan belum ada Putusan dari Pengadilan Pajak. Until the date of this report, the tax appeal hearing is still ongoing and there is no decision yet. Tahun fiskal 2013 Fiscal year 2013 Pada tanggal 28 Juli 2017, Direktorat Jenderal Pajak (DJP) telah mengeluarkan Surat Pemberitahuan Pemeriksaan Lapangan dengan Nomor: Pemb00145/WPJ.19/KP.0105/RIK.SIS/2017, dengan tujuan pemeriksaan untuk menguji kepatuhan pemenuhan kewajiban perpajakan. Pemeriksaan dilakukan terhadap semua jenis Pajak Penghasilan dan Pajak Pertambahan Nilai (PPN). On 28 July 2017, Director General of Taxation (DGT) has issued notification of Tax Field Examination No. Pemb-00145/WPJ.19/KP.0105/RIK.SIS/2017, with the main purpose of this examination is to comply with the tax regulations. The examinations apply to all types of income taxes and value added tax (VAT). Halaman – 5/138– Page 798 Annual Report CIMB NIAGA 2017
  799. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 31. PAJAK PENGHASILAN (lanjutan) 31. INCOME TAX (continued) f. Surat ketetapan pajak (lanjutan) f. Tax assessment letters (continued) Tahun fiskal 2013 (lanjutan) Fiscal year 2013 (continued) Pada tanggal 18 Desember 2017, Direktorat Jenderal Pajak telah mengeluarkan Surat Ketetapan Pajak Kurang Bayar atas Pajak Penghasilan Badan, PPh pasal 21, PPh pasal 23, PPh pasal 4(2) dan PPN tahun 2013 dengan total jumlah kurang bayar sebesar Rp 311.396, dan Surat Ketetapan Pajak Lebih Bayar atas PPh pasal 26 sebesar Rp 34.526. Pada tanggal 27 Desember 2017, Bank CIMB Niaga telah melakukan pembayaran kurang bayar pajak bersih sebesar Rp 276.870 yang dicatat pada akun uang muka pajak. Bank CIMB Niaga telah mengajukan keberatan atas Surat Ketetapan Pajak tersebut sebelum tanggal jatuh tempo yaitu tanggal 17 Maret 2018. On 18 December 2017, Director General of Taxation has issued tax assessment letters on Corporate Income Tax, income tax article 21, 23, 4(2), and Value Added Tax for the year 2013 with total underpayment tax amounting to Rp 311,396, and has issued tax assessment letters on income tax article 26 with total overpayment tax amounting to Rp 34,526. On 27 December 2017, CIMB Niaga has paid the remaining underpayment amounted Rp 276,870 which has been recorded as prepaid taxes. Bank CIMB Niaga had submit the objection letters for all tax assessments before the due date on 17 March 2018. Tahun fiskal 2014 Fiscal year 2014 Pada tanggal 28 April 2016, Direktorat Jenderal Pajak (DJP) telah menerbitkan Surat Ketetapan Pajak berdasarkan pemeriksaan atas lebih bayar Pajak Penghasilan Badan Pasal 29 untuk tahun fiskal 2014. Surat Ketetapan Pajak tersebut menyatakan kurang bayar atas Pajak Penghasilan Badan Pasal 29 PT Bank CIMB Niaga Tbk untuk tahun fiskal 2014 sebesar Rp 209.732, dimana jumlah tersebut telah dikurangi dengan kelebihan pembayaran Pajak Penghasilan Badan Pasal 29 untuk tahun fiskal 2014 sebesar Rp 82.661. Bank CIMB Niaga telah melakukan evaluasi atas surat ketetapan pajak tersebut dan berpendapat bahwa Bank CIMB Niaga tidak setuju atas seluruh temuan tersebut. Atas dasar ini juga, Bank memutuskan untuk hanya membayar sebagian kurang bayar pajak tersebut sebesar Rp 37.086 pada tanggal 21 Juli 2016. Bank telah mengajukan keberatan ke Direktorat Jendral Pajak (DJP) pada tanggal 21 Juli 2016. On 28 April 2016, Director General of Taxation (DGT) has issued tax assessment letter based on assessment of tax overpayment corporate income tax article 29 for fiscal year 2014. The tax assessment letter stated that there was an underpayment of corporate income tax article 29 of PT Bank CIMB Niaga Tbk for fiscal year 2014 amounted to Rp 209,732, which the amount has been netted off with the tax overpayment corporate income tax article 29 for fiscal year 2014 amounted to Rp 82,661. Bank CIMB Niaga has evaluated the tax assessment letter and Bank CIMB Niaga does not agree on all the findings. Subsequently on 21 July 2016, the Bank decided only to pay to the tax office some of the underpayment amounted to Rp 37,086. The Bank has submitted the appeal to Director General of Taxation (DGT) on 21 July 2016. Pada tanggal 17 Juli 2017, Direktorat Jenderal Pajak (DJP) telah mengeluarkan keputusan yang menolak seluruh keberatan yang diajukan oleh Bank CIMB Niaga. On 17 July 2017, Directorate General Taxation (DJP) has rejected all the objection. Pada tanggal 12 Oktober 2017 Bank telah mengajukan Banding atas keputusan keberatan tersebut kepada Pengadilan Pajak. On 12 October 2017 Bank CIMB Niaga has submitted the appeal to the Tax Court. Halaman – 5/139– Page Annual Report CIMB NIAGA 2017 799
  800. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 31. PAJAK PENGHASILAN (lanjutan) 31. INCOME TAX (continued) f. Surat ketetapan pajak (lanjutan) f. Tax assessment letters (continued) Tahun fiskal 2015 Fiscal year 2015 Pada tanggal 12 Agustus 2016, Direktorat Jenderal Pajak (DJP) telah mengeluarkan Surat Pemberitahuan Pemeriksaan Lapangan dengan Nomor: Pemb00313/WPJ.19/KP.0105/RIK.SIS/2016, dengan tujuan pemeriksaan untuk menguji kepatuhan pemenuhan kewajiban perpajakan. Pemeriksaan dilakukan terhadap semua jenis Pajak Penghasilan dan Pajak Pertambahan Nilai (PPN). On 12 August 2016, Director General of Taxation (DGT) has issued notification of Tax Field Examination No. Pemb-00313/WPJ.19/KP.0105/RIK.SIS/2016, with the main purpose of this examination is to comply with the tax regulations. The examinations apply to all types of income taxes and value added tax (VAT). Pada tanggal 18 April 2017, Direktorat Jenderal Pajak telah mengeluarkan Surat Ketetapan Pajak atas Pajak Penghasilan Badan tahun 2015 dengan hasil lebih bayar sebesar Rp 12.772, yang sebelumnya Bank telah melaporkan lebih bayar sebesar Rp 210.671 untuk pajak penghasilan tahun 2015. Pada tanggal 28 April 2017 telah dikeluarkan Surat Ketetapan Pajak atas PPh pasal 21, PPh pasal 23, PPh pasal 4(2), PPh pasal 26 dan PPN, dengan total jumlah kurang bayar pajak sebesar Rp 47.879. Pada tanggal 23 Mei 2017, Bank CIMB Niaga telah melakukan pembayaran kurang bayar pajak bersih sebesar Rp 35.107 yang dicatat pada akun uang muka pajak. On 18 April 2017, Director General of Taxation has issued tax assessment letters on Corporate Income Tax 2015 with total overpayment tax amounting Rp 12,772, which previously Bank has reported over payment amounted to Rp 210,671 for corporate income tax 2015. On 28 April 2017, DGT has issued tax assessment letters on income tax article 21, 23, 4(2), 26 and Value Added Tax, with total underpayment tax amounting Rp 47,879. On 23 May 2017, Bank CIMB Niaga has paid the remaining underpayment amounted Rp 35,107 which has been recorded as prepaid taxes. Pada tanggal 11 Juli 2017, Bank CIMB Niaga mengajukan keberatan atas hasil pemeriksaan Pajak Penghasilan Badan kepada Direktur Jenderal Pajak dan pada tanggal 25 Juli 2017 Bank CIMB Niaga mengajukan keberatan kepada Direktur Jenderal Pajak atas Pajak Penghasilan Pasal 4(2) masa Desember 2015 dan Pajak Pertambahan Nilai masa Maret, September, November, dan Desember 2015 dan hingga tanggal laporan ini belum diketahui hasilnya. On 11 July 2017, Bank CIMB Niaga has appealed objection of Corporate Income Tax result to Director General of Taxation and on 25 July 2017 Bank CIMB Niaga has appealed objection to Director General of Taxation on income tax article 4(2) period March, September, November, and December 2015 and until the date of this report there is no decision yet. Halaman – 5/140– Page 800 Annual Report CIMB NIAGA 2017
  801. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 31. PAJAK PENGHASILAN (lanjutan) 31. INCOME TAX (continued) f. Surat ketetapan pajak (lanjutan) f. Tax assessment letters (continued) Entitas Anak – CNAF Subsidiary - CNAF Tahun fiskal 2011 dan 2012 Fiscal Year 2011 and 2012 Pada tanggal 19 Desember 2014, telah dikeluarkan Surat Ketetapan Pajak Kurang Bayar (SKPKB) atas hasil pemeriksaan pajak tahun pajak 2011 dan 2012 PT CIMB Niaga Auto Finance (CNAF) dengan total pajak yang masih harus dibayar sebesar Rp 174.017, dan pada tanggal 16 Januari 2015, CNAF telah melakukan seluruh pembayaran. Atas SKPKB tersebut, pada tanggal 18 Maret 2015, CNAF telah mengajukan keberatan ke DJP sebesar Rp 170.994 atas sebagian surat ketetapan pajak atas SKPKB PPh Badan dan PPN. Kurang bayar pajak sebesar Rp 174.017 tersebut dicatat masing-masing sebesar Rp 170.994 pada akun uang muka pajak dan Rp 2.000 pada akun beban pajak penghasilan serta Rp 1.022 pada akun beban lain-lain di tahun 2014. On 19 December 2014, tax assessment letters (SKPKB) for fiscal years 2011 and 2012 on PT CIMB Niaga Auto Finance (CNAF) have been issued with total taxes amounting Rp 174,017, and on 16 January 2015, CNAF paid all of this amounts. On these tax assessments, on 18 March 2015, CNAF has appealed to the DGT amounting to Rp 170,994 related to with some of the tax assessment letter for SKPKB on Corporate Income Tax and VAT. The underpayment of tax amounted to Rp 174,017 has been recorded as prepaid taxes, income tax expense and other expenses in 2014 amounted to Rp 170,994, Rp 2,000 and Rp 1,022, respectively. Pada tanggal 28 Desember 2015, 1 Februari 2016 dan 14 Maret 2016, CNAF telah menerima surat keputusan atas keberatan pajak 2011 dan 2012 yang menyatakan bahwa keberatan pajak tidak dikabulkan. Atas keputusan ini, CNAF telah mengajukan banding pajak ke Pengadilan Pajak pada tanggal 24 Maret 2016, 29 April 2016 dan 9 Juni 2016. On 28 December 2015, 1 February 2016 and 14 March 2016, CNAF has received the decision letter on the tax objection for fiscal year 2011 and 2012, that stated the tax objection was rejected. Regarding this decision, CNAF has submitted the tax appeal to Tax Court on 24 March 2016, 29 April 2016 and 9 June 2016. Pada tanggal 7 November 2017 Pengadilan Pajak telah mengeluarkan keputusan sengketa PPN tahun 2011-2012 dimana Pengadilan Pajak menolak seluruhnya atas permohonan banding yang diajukan oleh CNAF. CNAF telah mengajukan Memo Peninjauan Kembali (PK) ke tingkat Mahkamah Agung pada tanggal 7 Februari 2018. Untuk sengketa PPh Badan, sampai dengan tanggal laporan keuangan konsolidasian ini, hasil banding pajak tersebut belum diketahui. On 7 November 2017 decision letter from Tax Court regarding dispute of Value Added Tax year 2011-2012 has been received and Tax Court rejected all the objection. CNAF has submitted Memo of Reconsideration Review to Supreme Court on 7 February 2018. For dispute of Corporate Income Tax until the date of this report, the examination is still ongoing and there is no decision yet. Halaman – 5/141– Page Annual Report CIMB NIAGA 2017 801
  802. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 32. BEBAN YANG MASIH LIABILITAS LAIN-LAIN 32. ACCRUALS AND OTHER LIABILITIES a. HARUS DIBAYAR DAN Beban yang masih harus dibayar a. 2017 Beban yang masih harus dibayar Bunga yang masih harus dibayar b. Accruals 2016 1,661,188 566,957 2,228,145 2015 1,244,722 636,740 1,881,462 1,086,639 726,015 1,812,654 Accrued expenses Accrued interest Beban yang masih harus dibayar terutama terdiri dari beban pihak ketiga, komisi diterima dimuka, dan bunga deposito yang akan dibayar. Accrued expenses mainly consist of expenses from third party, unearned commission, and deposit accrued interest. Termasuk ke dalam bunga yang masih harus dibayar pada tanggal 31 Desember 2017 adalah hutang bunga pinjaman subordinasi sebesar Rp 3.858 (2016 dan 2015: Rp 39.811) dan hutang bunga pinjaman efek-efek yang diterbitkan sebesar Rp 56.308 (2016: Rp 39.517; 2015: Rp 32.929). Informasi mengenai pinjaman subordinasi dan efekefek yang diterbitkan diungkapkan pada Catatan 33 dan 29. As at 31 December 2017, accrued interest also consist of accrued interest for subordinated loans amounting to Rp 3,858 (2016 and 2015: Rp 39,811) and accrued interest for marketable securities issued amounting to Rp 56,308 (2016: Rp 39,517; 2015: Rp 32,929). Information in respect to subordinated loans and marketable securities issued are disclosed in Note 33 and 29. Liabilitas lain-lain b. 2017 Komisi diterima dimuka Setoran jaminan Lain-lain 2016 398,384 172,033 188,104 758,521 2015 419,709 167,460 205,109 792,278 Di dalam lain-lain terdapat tagihan atas pembelian obligasi pemerintah pada tanggal 31 Desember 2017 sebesar Rp 27 (2016: Rp 7.946; 2015: nihil). 33. PINJAMAN SUBORDINASI 343,787 178,073 376,288 898,148 Unearned commission Security deposits Others In others there is payable on purchase of government bonds as at 31 December 2017 amounting to Rp 27 (2016: Rp 7,946; 2015; nil). 33. SUBORDINATED LOANS 2017 Obligasi subordinasi Rupiah Nilai nominal Dikurangi: Biaya emisi yang belum diamortisasi Penyesuaian nilai wajar Nilai tercatat Other liabilities 2016 2015 1,600,000 2,980,000 2,980,000 (3,228) 1,596,772 (4,955) 4,521 2,979,566 (7,248) (2,978) 2,969,774 Informasi mengenai tingkat suku bunga dan jatuh tempo diungkapkan pada Catatan 54 dan 56. Subordinated bonds Rupiah Par value Less: Unamortised issuance cost Fair value changes Carrying value Information in respect to interest rates and maturities is disclosed in Notes 54 and 56. Halaman – 5/142– Page 802 Annual Report CIMB NIAGA 2017
  803. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 33. PINJAMAN SUBORDINASI (lanjutan) 33. SUBORDINATED LOANS (continued) Berikut adalah rincian obligasi subordinasi pada tanggal 31 Desember 2017, 2016, dan 2015. 2017 Obligasi Subordinasi I Tahun 2010/ Subordinated Bonds I Year 2010 Obligasi Subordinasi II T ahun 2010/ Subordinated Bonds II Year 2010 2015 Tercatat/ Listed Tanggal jatuh Opsi tempo/ Pelunasan/ Due date Call option Tingkat bunga/ Interest rate 1,380,000 Bursa Efek Indonesia/ Indonesia Stock 1,380,000 Exchange 8 Juli/July 2017 N/A 11.30% per tahun/per annum 1,600,000 1,600,000 Bursa Efek Indonesia/ Indonesia Stock 1,600,000 Exchange 23 Desember/ December 2020 N/A 10.85% per tahun/per annum 1,600,000 2,980,000 2,980,000 - 4,521 (2,978) (3,228) (4,955) (7,248) 1,596,772 2,979,566 2,969,774 - Penyesuaian nilai wajar/Fair value changes Biaya emisi yang belum diamortisasi/ Unamortised issuance cost Nilai tercatat/ Carrying value 2016 Below is the detail of subordinated bonds as at 31 December 2017, 2016, and 2015. Pada tanggal 8 Juli 2010, Bank CIMB Niaga menerbitkan Obligasi Subordinasi I Tahun 2010 dengan Tingkat Suku Bunga Tetap sebesar Rp 1.380.000. Pada tanggal 9 Juli 2010, obligasi tersebut telah dicatat pada Bursa Efek Indonesia. Penerbitan Obligasi Subordinasi ini telah disetujui oleh BI melalui Surat No. 12/121/DPB3/TPB33/Rahasia pada tanggal 8 Juli 2010 dan mendapatkan pernyataan efektif dari Bapepam-LK melalui Surat No. S-5902/BL/2010 tanggal 29 Juni 2010. Obligasi ini telah jatuh tempo dan telah dilunasi pada tanggal 8 Juli 2017. On 8 July 2010, Bank CIMB Niaga issued Subordinated Bonds I Year 2010 with Fixed Interest Rate amounted to Rp 1,380,000. On 9 July 2010, these bonds were listed in Indonesia Stock Exchange. This issuance has been approved by BI through its Letter No. 12/121/DPB3/TPB33/Rahasia dated 8 July 2010 and has obtained notice of effectivity from Bapepam-LK through its Letter No. S-5902/BL/2010 dated 29 June 2010. These bonds have been mature and paid off on 8 July 2017. Pada tanggal 23 Desember 2010, Bank CIMB Niaga menerbitkan Obligasi Subordinasi II Tahun 2010 sebesar Rp 1.600.000. Penerbitan obligasi ini telah disetujui oleh BI melalui Surat No. 12/196/DPB3/TPB-3/Rahasia tanggal 29 Desember 2010 dan mendapatkan pernyataan efektif dari Ketua Bapepam-LK melalui Surat No. S-11156/BL/2010 tanggal 15 Desember 2010. On 23 December 2010, Bank CIMB Niaga issued Subordinated Bonds II Year 2010 amounted to Rp 1,600,000. This issuance has been approved by BI through its Letter No. 12/196/DPB3/TPB-3/Rahasia dated 29 December 2010 and has obtained notice of effectivity from Chairman of Bapepam-LK through its Letter No. S-11156/BL/2010 dated 15 December 2010. Bank CIMB Niaga telah melakukan pembayaran bunga secara tepat waktu dan sesuai dengan jumlah yang diperjanjikan. Bank CIMB Niaga has paid interest on schedule and in accordance with the amount agreed. Halaman – 5/143– Page Annual Report CIMB NIAGA 2017 803
  804. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 33. PINJAMAN SUBORDINASI (lanjutan) 33. SUBORDINATED LOANS (continued) Sehubungan dengan penerbitan obligasi tersebut, Bank CIMB Niaga memperoleh peringkat “AA (idn)” dari PT Fitch Indonesia. In connection with the bond issuance, Bank CIMB Niaga obtained a rating of “AA (idn)” from PT Fitch Indonesia. Transaksi lindung nilai Hedge transactions Pada tanggal 3 September 2010, Bank CIMB Niaga melakukan lindung nilai atas nilai wajar pada sebagian Obligasi Subordinasi I Tahun 2010 sebesar Rp 500.000 dengan kontrak swap suku bunga, dengan nilai nosional sebesar Rp 500.000. Transaksi ini telah diselesaikan pada tanggal 8 Juli 2017 (lihat Catatan 11). On 3 September 2010, Bank CIMB Niaga fair value hedged a proportion of Subordinated Bonds I Year 2010 of Rp 500,000 using interest rate swap contracts with notional amount of Rp 500,000. This transaction has been settled on 8 July 2017 (refer to Note 11). Pada tanggal 10 Desember 2010, Bank CIMB Niaga melakukan lindung nilai atas nilai wajar sebagian Obligasi Subordinasi I Tahun 2010 sebesar Rp 250.000 dengan kontrak swap suku bunga, dengan nilai nosional sebesar Rp 250.000. Transaksi ini telah diselesaikan pada tanggal 8 Juli 2017 (lihat Catatan 11). On 10 December 2010, Bank CIMB Niaga fair value hedge a proportion of Subordinated Bonds I Year 2010 of Rp 250,000 using interest rate swap contracts with notional amount of Rp 250,000. This transaction has been settled on 8 July 2017 (refer to Note 11). Pada tanggal 31 Desember 2017, 2016, dan 2015, Bank CIMB Niaga telah melakukan evaluasi terhadap lindung nilai tersebut dengan menggunakan metode regresi dan hasilnya efektif. As at 31 December 2017, 2016, and 2015 Bank CIMB Niaga has performed the hedging evaluation of bond fair value by using regression method and the result is effective. Hasil net dari keuntungan instrumen lindung nilai dan kerugian hedge item yang dilindungi nilainya (pinjaman subordinasi) disajikan pada tabel berikut ini: The net effect of the gain from the hedging instrument and the loss from the hedged item (subordinated loans) are summarised below: 2017 Keuntungan instrumen lindung nilai (Kerugian)/keuntungan hedged item yang berhubungan dengan risiko yang dilindung nilai Keuntungan bersih dari transaksi lindung nilai 2016 2015 247 12,684 4,683 - (7,499) 2,632 5,185 7,315 247 Gains on hedging instrument (Losses)/gains on hedged item attributable to hedged risk Net gains from hedging transaction Perhitungan Kewajiban Penyediaan Modal Minimum Capital Adequacy Ratio calculation Pada bulan Juli 2010, melalui Surat BI No. 12/121/DPB3/TPB3-3/ Rahasia, Bank CIMB Niaga telah memperoleh persetujuan dari BI untuk memperhitungkan Obligasi Subordinasi sebesar Rp 1.380.000 sebagai komponen pelengkap dalam perhitungan rasio KPMM. In July 2010, based on Letter from BI No. 12/121/DPB3/TPB3-3/Rahasia, BI had given an approval to Bank CIMB Niaga to include the Subordinated Bonds of Rp 1,380,000 as a component of tier 2 capital in CAR calculation. Pada tanggal 29 Desember 2010, melalui Surat BI No. 12/196/DPB3/TPB3-3/Rahasia, Bank CIMB Niaga telah memperoleh persetujuan dari BI untuk memperhitungkan Obligasi Subordinasi sebesar Rp 1.600.000 sebagai komponen pelengkap dalam perhitungan rasio KPMM. On 29 December 2010, based on Letter from BI No. 12/196/DPB3/TPB3-3/Rahasia, BI had given an approval to Bank CIMB Niaga to include the Subordinated Bonds of Rp 1,600,000 as a component of tier 2 capital in CAR calculation. Halaman – 5/144– Page 804 Annual Report CIMB NIAGA 2017
  805. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 33. PINJAMAN SUBORDINASI (lanjutan) 33. SUBORDINATED LOANS (continued) Peringkat obligasi subordinasi Subordinated bonds ratings Peringkat obligasi subordinasi ini berdasarkan credit rating PT Fitch Indonesia pada tanggal 31 Desember 2017 adalah AA(idn) (2016 dan 2015: AA(idn)). The ratings for the subordinated bonds, based on credit rating PT Fitch Indonesia at 31 December 2017 is AA(idn) (2016 and 2015: AA(idn)). Tidak terdapat pembatasan-pembatasan yang diwajibkan dalam perjanjian pinjaman subordinasi. There were no negative covenants in the subordinated loans agreements. 34. MODAL SAHAM , TAMBAHAN MODAL DISETOR, DAN SAHAM TREASURI 34. SHARE CAPITAL, ADDITIONAL PAID IN CAPITAL, TREASURY SHARES Susunan pemegang saham pada 31 Desember 2017, 2016, dan 2015 adalah: tanggal Modal Saham The shareholders’ composition as at 31 December 2017, 2016, and 2015 were as follows: Share Capital 2017 Pemegang saham Saham biasa kelas A Pemegang saham lainnya (kepemilikan di bawah 5%) Saham biasa kelas B CIMB Group Sdn Bhd, Malaysia Pemegang saham lainnya (kepemilikan di bawah 5%) Jumlah Saham Beredar Saham treasuri Jumlah lembar saham ditempatkan dan disetor penuh/ Number of shares issued and fully paid Persentase kepemilikan/ Percentage of ownership Jumlah dalam Rupiah/ Amount in Rupiah 71,853,936 0.29% 359,270 22,991,336,581 91.48% 1,149,567 1,874,008,834 24,937,199,351 194,407,492 25,131,606,843 7.46% 99.23% 0.77% 100% 93,700 1,602,537 9,720 1,612,257 Shareholders Class A ordinary share Other shareholders (ownership interest below 5%) Class B ordinary share CIMB Group Sdn Bhd, Malaysia Other shareholders (ownership interest below 5%) Total Shares Outstanding Treasury shares Halaman – 5/145– Page Annual Report CIMB NIAGA 2017 805
  806. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 34. MODAL SAHAM , TAMBAHAN MODAL DISETOR, DAN SAHAM TREASURI (lanjutan) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 34. SHARE CAPITAL, ADDITIONAL PAID IN CAPITAL, TREASURY SHARES (continued) Modal Saham (lanjutan) Share Capital (continued) 2016 Pemegang saham Saham biasa kelas A Pemegang saham lainnya (kepemilikan di bawah 5%) Saham biasa kelas B CIMB Group Sdn Bhd, Malaysia Pemegang saham lainnya (kepemilikan di bawah 5%) Pemegang saham Saham biasa kelas A Pemegang saham lainnya (kepemilikan di bawah 5%) Saham biasa kelas B CIMB Group Sdn Bhd, Malaysia Pemegang saham lainnya (kepemilikan di bawah 5%) Jumlah lembar saham ditempatkan dan disetor penuh/ Number of shares issued and fully paid Persentase kepemilikan/ Percentage of ownership Jumlah dalam Rupiah/ Amount in Rupiah 71,853,936 0.29% 359,270 22,991,336,581 91.48% 1,217,916 2,068,416,326 25,131,606,843 8.23% 100.00% 35,071 1,612,257 Jumlah lembar saham ditempatkan dan disetor penuh/ Number of shares issued and fully paid Shareholders Class A ordinary share Other shareholders (ownership interest below 5%) Class B ordinary share CIMB Group Sdn Bhd, Malaysia Other shareholders (ownership interest below 5%) 2015 Persentase kepemilikan/ Percentage of ownership Jumlah dalam Rupiah/ Amount in Rupiah Shareholders Class A ordinary share Other shareholders (ownership interest below 5%) 71,853,936 0.29% 359,270 24,358,324,638 96.92% 1,217,916 701,428,269 25,131,606,843 2.79% 100.00% 35,071 1,612,257 Class B ordinary share CIMB Group Sdn Bhd, Malaysia Other shareholders (ownership interest below 5%) Halaman – 5/146– Page 806 Annual Report CIMB NIAGA 2017
  807. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 34. MODAL SAHAM , TAMBAHAN MODAL DISETOR, DAN SAHAM TREASURI (lanjutan) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 34. SHARE CAPITAL, ADDITIONAL PAID IN CAPITAL, TREASURY SHARES (continued) Modal Saham (lanjutan) Share Capital (continued) Saham biasa kelas A dan saham biasa kelas B adalah saham biasa yang memiliki hak yang sama. Class A and class B ordinary shares are ordinary shares that have the same rights. Jumlah saham yang beredar dan disetor penuh yang dimiliki oleh direksi adalah: Of the total issued and fully paid capital, number of shares owned by director was as follows: 2017 Bpk. T igor M Siahaan Bpk. Pandji P Djajanegara 2016 6,181,256 325 2015 1,397,356 325 - Mr. Tigor M Siahaan Mr. Pandji P Djajanegara Efektif sejak tanggal 24 Agustus 2007, CIMB Group Holdings Berhad sebagai pemegang saham mayoritas sekaligus pengendali Bank CIMB Niaga telah mengalihkan seluruh kepemilikan sahamnya pada Bank CIMB Niaga sejumlah 7.779.138.350 saham kepada CIMB Group Sdn Bhd sehingga Bank CIMB Niaga telah menjadi bagian dari CIMB Group. Pengalihan saham tersebut telah mendapat persetujuan BI melalui Surat No. 9/67/GBI/DPIP/Rahasia tanggal 29 Juni 2007. CIMB Group Sdn Bhd dimiliki seluruhnya oleh CIMB Group Holdings Berhad. On 24 August 2007, CIMB Group Holdings Berhad as Bank CIMB Niaga’s majority and controlling shareholder has transferred the ownership in Bank CIMB Niaga of 7,779,138,350 shares to CIMB Group Sdn Bhd. As a result, Bank CIMB Niaga is part of CIMB Group. This ownership transfer has been approved by BI through Letter No. 9/67/GBI/DPIP/Rahasia dated 29 June 2007. CIMB Group Sdn Bhd is fully owned by CIMB Group Holdings Berhad. Pada tanggal 16 Agustus 2010, CIMB Group Sdn Bhd membeli saham Bank CIMB Niaga dari Santubong Ventures Sdn Bhd, Greatville Pte.Ltd, dan PT Pantai Damai masing-masing sebanyak 3.982.024.793 saham atau 16,64%, 615.993.242 saham atau 2,57%, dan 110.511.515 saham atau 0,46%. Dengan transaksi tersebut, maka kepemilikan CIMB Group Sdn Bhd di Bank CIMB Niaga mengalami peningkatan dari 77,24% menjadi 96,92%. On 16 August 2010, CIMB Group Sdn Bhd purchased Bank CIMB Niaga’s shares from Santubong Ventures Sdn Bhd, Greatville Pte.Ltd, and PT Pantai Damai of 3,982,024,793 shares or 16.64%, 615,993,242 shares or 2.57%, and 110,511,515 shares or 0.46%, respectively. After this transaction CIMB Group Sdn Bhd ownership in Bank CIMB Niaga increased from 77.24% to 96.92%. Dalam rangka pemenuhan Peraturan Bursa Efek Indonesia No. I-A tentang Pencatatan Saham dan Efek Bersifat Ekuitas Selain Saham yang Diterbitkan oleh Perusahaan Tercatat, khususnya terkait jumlah saham yang dimiliki oleh Pemegang Saham bukan Pengendali dan bukan Pemegang Saham Utama paling kurang sebesar 7,5% dari jumlah saham dalam modal disetor, pada tanggal 29 Agustus 2016 dan 30 Agustus 2016 CIMB Group Sdn. Bhd., selaku pemegang 96,92% saham Bank CIMB Niaga, mengalihkan sebesar 5,44% kepemilikan sahamnya melalui mekanisme Dividend in Specie (DIS) sehingga komposisi kepemilikannya menjadi sebesar 91,48%. Dan efektif ditanggal 7 Juli 2017 seluruh 5,44% saham tersebut sudah dialihkan ke publik. In compliance of the Indonesia Stock Exchange regulation No.I-A concerning Stock Listing and Equity Securities besides Shared Issued by Listed Company, in particular for number of shares owned by non-controlling shareholders and non-ultimate shareholders at least 7.5% of total paid-in capital, on 29 August 2016 and 30 August 2016, CIMB Group Sdn. Bhd., as a holder of 96.92% shares of Bank CIMB Niaga, has transferred 5.44% of its ownership through Dividend in Specie (DIS) mechanism, therefore its ownership becomes 91.48%. And effective dated 7 July 2017 all 5.44% of the shares have been transferred to the public. Halaman – 5/147– Page Annual Report CIMB NIAGA 2017 807
  808. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 34. MODAL SAHAM , TAMBAHAN MODAL DISETOR, DAN SAHAM TREASURI (lanjutan) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 34. SHARE CAPITAL, ADDITIONAL PAID IN CAPITAL, TREASURY SHARES (continued) Modal Saham (lanjutan) Share Capital (continued) Pemegang saham akhir CIMB Group Holdings Berhad pada tanggal 31 Desember 2017, 2016, dan 2015 adalah: The ultimate shareholders of CIMB Group Holdings Berhad as at 31 December 2017, 2016, and 2015 were as follows: Persentase kepemilikan/ Percentage of ownership Pemegang saham 2017 Khazanah Nasional Berhad Employee Provident Fund Lain-lain dan Masyarakat 2016 27.27% 14.40% 58.33% 100.00% Shareholders 2015 29.34% 16.12% 54.54% 100.00% 29.68% 17.43% 52.89% 100.00% Khazanah Nasional Berhad Employee Provident Fund Others and Public Khazanah Nasional Berhad adalah entitas yang dimiliki oleh Pemerintah Malaysia. Khazanah Nasional Berhad is an entity owned by the Government of Malaysia. Tambahan modal disetor pada tanggal 31 Desember 2017, 2016, dan 2015 termasuk selisih nilai transaksi restrukturisasi entitas sepengendali masing-masing sebesar Rp 1.115.123 (lihat Catatan 1b). Included in additional paid in capital as at 31 December 2017, 2016, and 2015 is the previous difference in restructuring value of transaction of entities under common control amounting to Rp 1,115,123 (refer to Note 1b). Saham treasuri Treasury shares Pada tanggal 25 Juli 2017, Bank telah mendapatkan persetujuan OJK melalui surat No.S-63/PB.33/2017, untuk membeli sahamnya kembali sejumlah maksimal 2% dari jumlah saham yang telah dikeluarkan dan disetor penuh yang selanjutnya akan digunakan sebagai Management Employee Stock Option Program (MESOP) yang akan efektif di tahun 2018. As at 25 July 2017, the Bank had received approval from FSA through letter No.S-63/PB.33/2017 to buy back the shares at maximum 2% from total shares issued and fully paid which will be used as Management Employee Stock Option Program (MESOP) which will be effective in 2018. Selama bulan Desember 2017, Bank telah melakukan pembelian saham sebanyak 194.407.492 lembar saham dengan rata-rata per saham sebesar Rp 1.249,45 (nilai penuh) dan total nilai perolehan sebesar Rp 242.902 (termasuk biaya komisi dan pajak). During December 2017, the Bank has performed buy back of 194,407,492 shares with average price share at Rp 1,249.45 (full amount) and the total acquisition cost of the buy back is amounting to Rp 242,902 (include commission and tax). Penggunaan laba bersih tahun 2016 Appropriation of 2016 net income Berdasarkan Rapat Umum Pemegang Saham Tahunan (“RUPST”) pada tanggal 25 April 2017, disetujui seluruh laba bersih untuk tahun buku 2016 sebesar Rp 2.081.687 dicatat sebagai laba ditahan. Based on Annual Shareholders General Meeting dated 25 April 2017, the shareholders agreed to record all net income for the year of 2016 amounted to Rp 2,081,687 as retained earnings. Penggunaan laba bersih tahun 2015 Appropriation of 2015 net income Berdasarkan Rapat Umum Pemegang Saham Tahunan (“RUPST”) pada tanggal 15 April 2016, disetujui seluruh laba bersih untuk tahun buku 2015 sebesar Rp 427.831 dicatat sebagai laba ditahan. Based on Annual Shareholders General Meeting dated 15 April 2016, the shareholders agreed to record all net income for the year of 2015 amounted to Rp 427,831 as retained earnings. Halaman – 5/148– Page 808 Annual Report CIMB NIAGA 2017
  809. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 35. PENGGUNAAN LABA BERSIH 35. APPROPRIATION OF NET INCOME Cadangan umum dan wajib General and statutory reserve Pada tanggal 31 Desember 2017, 2016, dan 2015, cadangan umum dan wajib adalah Rp 351.538. Cadangan umum dan wajib ini dibentuk sehubungan dengan UndangUndang Republik Indonesia No. 1/1995 yang telah digantikan dengan Undang-Undang No. 40/2007 efektif tanggal 16 Agustus 2007 mengenai Perseroan Terbatas, yang mengharuskan perusahaan-perusahaan untuk membuat penyisihan cadangan umum sebesar sekurangkurangnya 20% dari jumlah modal yang ditempatkan dan disetor penuh. Undang-Undang tersebut tidak mengatur jangka waktu untuk penyisihan tersebut. As at 31 December 2017, 2016, and 2015, the general and statutory reserve amounted to Rp 351,538. This general and statutory reserve was provided in relation with the Law of Republic Indonesia No.1/1995 which has been replaced with Law No. 40/2007 effective on 16 August 2007 regarding with the limited company, which requires companies to set up a general reserve at least 20% of the issued and paid up share capital. There is no timeline over which this amount should be provided. 36. PENDAPATAN BUNGA DAN SYARIAH Kredit yang diberikan Efek-efek, Obligasi Pemerintah, dan efek-efek yang dibeli dengan janji dijual kembali Pembiayaan konsumen dan sewa guna usaha Penempatan pada bank lain dan Bank Indonesia Giro pada bank lain dan Bank Indonesia Lain-lain 36. INTEREST AND SHARIA INCOME 2017 2016 2015 17,186,113 17,784,264 18,959,082 2,026,811 2,008,811 2,037,092 956,776 1,306,840 1,057,274 156,548 174,830 190,294 42,070 35,066 20,403,384 47,218 2,685 21,324,648 74,293 724 22,318,759 Loans Marketable securities, Government Bonds, and securities purchased under resale agreement Consumer financing and financing lease Placements with other banks and Bank Indonesia Current account with other banks and Bank Indonesia Others Termasuk dalam pendapatan bunga konsolidasian adalah pendapatan berdasarkan prinsip syariah untuk tahun yang berakhir 31 Desember 2017 adalah Rp 1.298.348 (2016: Rp 880.705; 2015: Rp 827.714). Included in consolidated interest income is income based on sharia principles for the year ended 31 December 2017 amounted to Rp 1,298,348 (2016: Rp 880,705; 2015: Rp 827,714). Pendapatan bunga berdasarkan klasifikasi aset keuangan adalah: Interest income based on the classification of financial assets are as follows: Diukur pada nilai wajar melalui laporan laba rugi Lainnya 2017 2016 283,529 20,119,855 20,403,384 2015 310,120 21,014,528 21,324,648 301,203 22,017,556 22,318,759 Fair value through profit and loss Others Termasuk dalam pendapatan bunga dari kredit yang diberikan adalah pendapatan bunga atas bagian yang tidak mengalami penurunan nilai terhadap kredit yang diberikan yang mengalami penurunan nilai (time value unwinding) untuk tahun yang berakhir 31 Desember 2017 adalah Rp 259.360 (2016: Rp 197.740; 2015: Rp 117.603). Included in interest income from loans is interest income recognised on the unimpaired portion of the impaired loans (time value unwinding) for the year ended 31 December 2017 amounted to Rp 259,360 (2016: Rp 197,740; 2015: Rp 117,603). Lihat Catatan 49 untuk transaksi dengan pihak-pihak berelasi. Refer to Note 49 for transactions with related parties. Halaman – 5/149– Page Annual Report CIMB NIAGA 2017 809
  810. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 37. BEBAN BUNGA DAN SYARIAH 37. INTEREST AND SHARIA EXPENSE Simpanan nasabah: Deposito berjangka dan Sertifikat Deposito Tabungan Giro Pinjaman yang diterima dan obligasi subordinasi Efek-efek yang diterbitkan Simpanan dari bank lain Efek-efek yang dijual dengan janji dibeli kembali Lain-lain 2017 2016 4,491,162 1,253,817 1,074,176 5,634,031 1,271,761 969,697 7,245,355 1,261,974 959,808 636,200 332,870 130,963 890,001 353,235 97,551 929,041 477,598 45,844 43,686 37,131 8,000,005 9,404 4,938 9,230,618 11,726 1,053 10,932,399 Termasuk dalam beban bunga adalah beban bunga berdasarkan prinsip syariah untuk tahun yang berakhir 31 Desember 2017 adalah Rp 609.365 (2016: Rp 359.154; 2015: Rp 373.780). Lihat Catatan 49 untuk transaksi dengan pihak-pihak berelasi. 38. PROVISI DAN KOMISI LAINNYA Pendapatan bancassurance Jasa administrasi nasabah Pendapatan interchange fee kartu kredit Jasa dokumen ekspor-impor Jasa agensi Jasa kliring dan transfer Jasa servis kustodian Pendapatan annual fee Komisi merchant Lain-lain 2015 Deposits from customers: Time deposits and certificates of deposits Saving deposits Demand deposits Borrowings and subordinated bonds Marketable securities issued Deposits from other banks Securities sold under repurchase agreement Others Included in interest expense is interest expense based on sharia principle for the year ended 31 December 2017 amounted to Rp 609,365 (2016: Rp 359,154; 2015: Rp 373,780). Refer to Note 49 for transactions with related parties. 38. OTHER FEES AND COMMISSIONS 2017 2016 2015 835,016 419,731 303,604 146,243 135,173 105,508 61,013 55,918 30,999 41,612 2,134,817 770,490 524,079 290,807 148,372 138,435 105,638 40,443 58,307 7,026 29,763 2,113,360 486,429 451,679 242,973 168,771 113,106 130,135 37,188 36,804 13,488 37,523 1,718,096 Bancassurance income Customer administration fees Credit card interchange fee income Export-import document fees Agency fee Clearing and transfer fees Custodial services fees Annual fee income Merchant commission Others Halaman – 5/150– Page 810 Annual Report CIMB NIAGA 2017
  811. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 39. KERUGIAN PENURUNAN NILAI ATAS KEUANGAN DAN NON KEUANGAN - BERSIH 39. IMPAIRMENT LOSSES ON FINANCIAL AND NONFINANCIAL ASSETS - NET ASET 2017 Pembentukan/(pemulihan) kerugian penurunan nilai atas: Aset keuangan Kredit yang diberikan Piutang pembiayaan konsumen Penempatan pada bank lain dan Bank Indonesia Suspense account dan piutang lainnya Piutang sewa pembiayaan Efek-efek Penyertaan Aset nonkeuangan Aset yang diambil alih 2016 3,808,382 173,523 4,292,491 273,732 5,170,279 155,833 (2,553) (2,452) 5,069 1,594 (19,245) 2,643 (85) 1,637 8,202 (1,608) - 7,614 6,435 (1,516) - 115,546 4,079,805 400,949 4,972,951 (257) 5,343,457 40. KEUNTUNGAN/(KERUGIAN) DARI INSTRUMEN KEUANGAN YANG DIPERDAGANGKAN 2016 324,559 1,994 3,907 330,460 41. KEUNTUNGAN DARI PENJUALAN EFEK-EFEK 2016 278,624 164,937 443,561 522,571 (18,658) (3,506) 500,407 Derivatives Government Bonds Marketable securities 2017 2015 225,302 58,763 284,065 Keuntungan dari penjualan efek-efek dan obligasi pemerintah berdasarkan klasifikasinya adalah: Diperdagangkan Tersedia untuk dijual 2015 391,946 4,300 642 396,888 41. GAINS FROM SALE OF MARKETABLE SECURITIES 2017 Obligasi Pemerintah Efek-efek Impairment/(reversal) of losses on: Financial assets Loans Consumer financing receivable Placements with other banks and Bank Indonesia Suspense account and other receivables Financing lease receivables Marketable securities Investments Non-financial assets Foreclosed assets 40. GAINS/(LOSSES) FROM TRADING FINANCIAL INSTRUMENTS 2017 Derivatif Obligasi Pemerintah Efek-efek 2015 Government Bonds Marketable securities Gains from sale of marketable securities and government bonds based on its classifications: 2016 259,324 184,237 443,561 98,895 46,267 145,162 196,848 87,217 284,065 2015 77,214 67,948 145,162 Trading Available-for-sale Halaman – 5/151– Page Annual Report CIMB NIAGA 2017 811
  812. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 42. BEBAN TENAGA KERJA 42. PERSONNEL EXPENSES 2017 Gaji dan upah Tunjangan karyawan Pelatihan dan pendidikan PPKS (lihat Catatan 45) Lain-lain 2016 2,129,760 1,455,625 192,640 170,187 3,948,212 2015 2,037,836 1,360,290 175,285 73,508 3,646,919 2,021,365 1,307,374 167,007 571,000 89,350 4,156,096 Salaries and wages Allowances for employees Trainings and educations MSS (refer to Note 45) Others Termasuk di dalam beban tenaga kerja adalah tunjangan bonus dan Tunjangan Hari Raya (THR), pensiun, dan liabilitas imbalan pasca kerja lainnya, dan tantiem untuk tahun yang berakhir 31 Desember 2017 sebesar Rp 1.010.054 (2016: Rp 1.071.811; 2015: Rp 1.201.771). Included in personnel expenses are bonus and vacation pay (THR), pension, and other post retirement obligations, and tantiem for the year ended 31 December 2017 amounted to Rp 1,010,054 (2016: Rp 1,071,811; 2015: Rp 1,201,771). Termasuk ke dalam beban tenaga kerja adalah gaji dan kompensasi lainnya yang dibayarkan kepada Komisaris, Direksi, dan Pejabat Eksekutif Bank CIMB Niaga adalah: Included in personnel expenses are also salaries and other allowances for Commissioners, Directors, and Executive Bank Officers of Bank CIMB Niaga as follows: 2017 Komisaris Gaji dan tunjangan Bonus dan THR Direksi Gaji dan tunjangan Bonus dan THR Kompensasi berbasis saham Pejabat Eksekutif Bank Gaji dan tunjangan Bonus dan THR Kompensasi berbasis saham Pensiun 2016 2015 14,685 1,100 15,785 14,908 1,161 16,069 13,916 889 14,805 60,239 54,266 5,944 120,449 56,004 48,940 18,806 123,750 59,689 25,931 36,286 121,906 142,498 72,417 5,100 8,774 228,789 128,173 72,145 4,273 8,010 212,601 136,380 65,248 4,558 8,050 214,236 365,023 352,420 350,947 Commissioners Salaries and allowances Bonus and Vacation Pay Directors Salaries and allowances Bonus and Vacation Pay Share-based payments Executive Bank Officers Salaries and allowances Bonus and Vacation Pay Share-based payments Pension Halaman – 5/152– Page 812 Annual Report CIMB NIAGA 2017
  813. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 43. BEBAN UMUM DAN ADMINISTRASI 43. GENERAL AND ADMINISTRATIVE EXPENSES 2017 Telepon, telex, dan komputer Sewa, penyusutan, dan pemeliharaan gedung Biaya pihak ketiga Asuransi penjaminan simpanan Iklan dan promosi Perlengkapan kantor Jasa profesional Biaya tahunan Otoritas Jasa Keuangan (OJK) Transportasi Penyusutan dan pemeliharaan perabot kantor Premi asuransi Lain-lain 2016 2015 846,521 888,645 825,500 766,383 415,030 370,297 253,799 120,496 104,025 823,544 533,755 366,460 272,661 112,522 67,749 752,698 482,916 369,326 315,082 107,571 90,031 108,301 81,959 107,793 102,360 106,225 128,544 69,122 7,298 300,037 3,443,268 75,580 7,336 401,130 3,759,535 76,091 5,544 261,078 3,520,606 Beban umum dan administrasi lain-lain antara lain terdiri dari utilitas, biaya pengumpulan kredit bermasalah, dan biaya aktivitas kantor lainnya. 44. PENDAPATAN/(BEBAN) BUKAN OPERASIONAL – BERSIH 2017 Pendapatan sewa Keuntungan atas penjualan aset tetap Dividen Denda Keuntungan atas penjualan perusahaan Asosiasi Lain-lain - bersih Telephone, telex, and computer Rental, depreciation, and maintenance of building Outsourced service expenses Deposit insurance guarantee Advertising and promotion Office supplies Professional fees Financial Services Authority (FSA) annual fee Transportation Depreciation and maintenance of office furniture Insurance premium Others Other general and administrative expenses consist of utilities, collection expense of bad debt and other office activity expenses. 44. NON-OPERATING INCOME/(EXPENSES) – NET 2016 2015 10,005 1,051 415 (3,885) 10,735 1,766 955 (3,193) 11,903 3,922 722 (15,587) 40,863 48,449 31,026 55,825 97,114 (122,619) (121,659) Rental income Gains on sale of fixed assets Dividend Fines Gains on sale of Associate company Others - net Termasuk dalam keuntungan atas penjualan aset tetap untuk tahun yang berakhir 31 Desember 2015 adalah penjualan properti terbengkalai sebesar Rp 2.590 dimana keuntungan setelah pajak atas penjualan ini adalah sebesar Rp 1.855. Included in gain on sale of fixed assets for the year ended 31 December 2015 is the sale of abandoned property amounting to Rp 2,590 with gain on sale (net of tax) of Rp 1,855. Tidak terdapat penjualan properti terbengkalai untuk tahun yang berakhir 31 Desember 2017 dan 2016. There is no sale of abandoned properties for the years ended 31 Desember 2017 and 2016. Halaman – 5/153– Page Annual Report CIMB NIAGA 2017 813
  814. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 45. LIABILITAS IMBALAN KERJA 45. EMPLOYEE BENEFIT OBLIGATIONS Liabilitas imbalan kerja terdiri dari : Employee benefit obligations consist as follows: 2017 Beban bonus yang masih harus dibayar Pensiun dan liabilitas imbalan pasca kerja lainnya PPKS 2016 2015 425,465 330,000 359,469 864,520 1,289,985 644,059 45,923 1,019,982 526,865 240,172 1,126,506 Accrued bonus Pension and other post retirement obligations MSS Pada tanggal 15 Mei 2015, Bank menawarkan Program Purna Karya Sukarela (PPKS). PPKS merupakan program yang ditujukan bagi seluruh karyawan Bank untuk memilih purna karya sebelum mencapai usia pensiun. Program ini bersifat sukarela dan dapat diikuti oleh seluruh karyawan Bank sesuai dengan syarat dan ketentuan yang berlaku dan harus disetujui oleh Bank. Sejumlah 1.706 karyawan telah mengambil program ini. Porsi yang belum dibayarkan pada tanggal 31 Desember 2017, 2016 dan 2015 adalah masing-masing sebesar nihil, Rp 45.923 dan Rp 240,172. On 15 May 2015, Bank CIMB Niaga launched Mutual Separation Scheme (MSS) program. MSS is a program that is offered to all employees of the Bank to elect for early retirement. The program is voluntary and is open for all employees in accordance with the terms and conditions and must be approved by the Bank. A total of 1,706 employees have taken the early retirement. As of 31 December 2017, 2016 and 2015, total severance accruals are nil, Rp 45,923 and Rp. 240,172 respectively. Pada tanggal 31 Desember 2017, karyawan Bank CIMB Niaga yang memperoleh imbalan pensiun dan imbalan kerja lainnya berjumlah 11.475 (2016: 11.862; 2015: 12.472). As at 31 December 2017, the total Bank CIMB Niaga employees who are eligible for retirement and other employee benefits were 11,475 (2016: 11,862; 2015: 12,472). Sesuai dengan kebijakan Bank CIMB Niaga, pegawai mendapat fasilitas imbalan pensiun dan imbalan kerja lainnya, sebagai berikut: In accordance with Bank CIMB Niaga’s policy, employees are entitled to the pension employee benefit and other employee benefits, as follows: Imbalan Pensiun Pension benefits Pada tanggal 31 Desember 2017 penilaian liabilitas pensiun dilakukan oleh Bank CIMB Niaga menggunakan asumsi-asumsi penilaian aktuaria yang dihitung oleh PT Dayamandiri Dharmakonsolindo pada tanggal 17 Januari 2018 menggunakan metode “Projected Unit Credit”. As at 31 December 2017 Bank CIMB Niaga’s calculation of pension obligation using actuarial assumptions, which were prepared by an independent PT Dayamandiri Dharmakonsolindo as at 17 January 2018 using the “Projected Unit Credit’ method. Bank CIMB Niaga menyelenggarakan 2 (dua) program pensiun terdiri dari program pensiun manfaat pasti dan program iuran pasti sebagai berikut: Bank CIMB Niaga sponsors 2 (two) pension employee program plans consisting of a defined benefit plan and defined contribution plan, as follows: Halaman – 5/154– Page 814 Annual Report CIMB NIAGA 2017
  815. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 45. LIABILITAS IMBALAN KERJA (lanjutan) 45. EMPLOYEE BENEFIT OBLIGATIONS (continued) Imbalan Pensiun (lanjutan) Pension benefits (continued) a. a. Manfaat pasti Defined benefit plan Manfaat pasti diselenggarakan untuk sebagian karyawan tetap Bank CIMB Niaga yang dikelola dan diadministrasikan oleh “Dana Pensiun PT Bank CIMB Niaga Tbk”. Bank CIMB Niaga sponsors a defined benefit pension retirement program covering a certain number of its permanent employees which is managed and administered by “Dana Pensiun PT Bank CIMB Niaga Tbk”. Program tersebut memberikan manfaat pensiun yang akan dibayarkan kepada karyawan yang berhak pada saat karyawan pensiun atau pada saat karyawan tersebut berhenti sesuai dengan peraturan dana pensiun yang bersangkutan yang dibuat sesuai dengan UU Dana Pensiun. Manfaat pensiun dihitung berdasarkan formula manfaat pensiun sebagaimana tertuang dalam Peraturan Dana Pensiun. The plan calls for benefits to be paid to eligible employees at retirement or when the employees resign according to the pension fund regulation which is designed to comply with Pension Fund Legislation. The benefits paid at retirement are calculated based on the pension benefit formula as set forth in the Regulation of Pension Funds. Pendanaan program pensiun ini dilakukan oleh Bank CIMB Niaga dengan membayar iuran tahunan yang setidaknya memenuhi jumlah minimum seperti yang diharuskan oleh peraturan perundang-undangan dana pensiun yang berlaku. Bank CIMB Niaga has funded the plan through annual contributions which are sufficient to meet the minimum requirements set forth in applicable pension fund laws. Jumlah iuran ini umumnya meliputi imbalan pensiun untuk jasa karyawan masa kini, amortisasi biaya masa lalu, dan koreksi aktuarial. This contribution usually reflects benefits attributed to employees’ current service costs, as well as amortisation of past service cost, and actuary adjustments. Berikut ini adalah hal-hal yang diungkapkan dalam laporan aktuaria tanggal, 17 Januari 2018, 13 Januari 2017 dan 29 Januari 2016 masing-masing dalam menghitung liabilitas pensiun pada tanggal 31 Desember 2017, 2016, dan 2015. The following are disclosed in the actuarial report dated 17 January 2018, 13 January 2017 and 29 January 2016 to calculate the retirement benefits liability as at 31 December 2017, 2016, and 2015. Asumsi-asumsi utama yang digunakan oleh aktuaria independen dalam perhitungan di atas adalah: The key assumptions used by the independent actuary in the above calculation are as follows: Halaman – 5/155– Page Annual Report CIMB NIAGA 2017 815
  816. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 45. LIABILITAS IMBALAN KERJA (lanjutan) 45. EMPLOYEE BENEFIT OBLIGATIONS (continued) Imbalan Pensiun (lanjutan) Pension benefits (continued) a. a. Manfaat pasti (lanjutan) Asumsi ekonomi: Tingkat diskonto Tingkat proyeksi / kenaikan gaji Asumsi lainnya: Proyeksi kenaikan pensiun di masa datang Usia pensiun normal Defined benefit plan (continued) 2017 2016 2015 7,25% per tahun/ 7.25% per annum 8,5% per tahun/ 8.5% per annum 9,25% per tahun/ 9.25% per annum 6% per tahun/ 6% per annum 6% per tahun/ 6% per annum 8% per tahun/ 8% per annum 5% per tahun/ 5% per annum 5% per tahun/ 5% per annum 5% per tahun/ 5% per annum 55 tahun/ 55 years 55 tahun/ 55 years 55 tahun/ 55 years Economic assumptions: Discount rate Salary increase rate Other assumptions: Expected future pension increases Normal retirement age Tingkat kematian T abel Mortalitas T abel Mortalitas Tabel Mortalitas Indonesia 2011 Indonesia 2011 Indonesia 2011 (T MI 2011)/ (T MI 2011)/ (T MI 2011)/ Indonesian Mortality Indonesian Mortality Indonesian Mortality Table 2011 Table 2011 Table 2011 (TMI 2011) (TMI 2011) (TMI 2011) Mortality rate Tingkat cacat 10% dari TMI 2011/ 10% dari T MI 2011/ 10% dari T MI 2011/ 10% of TMI 2011 10% of TMI 2011 10% of TMI 2011 Disability rate Imbal hasil atas aset program Tingkat pengunduran diri Proporsi pensiun normal 7,25% per tahun/ 7.25% per annum 8,50% per tahun/ 8.50% per annum 9,25% per tahun/ 9.25% per annum 10% untuk usia 10% untuk usia 10% untuk usia sampai dengan 25 sampai dengan 25 sampai dengan 25 tahun, dan menurun tahun, dan menurun tahun, dan menurun dengan garis lurus dengan garis lurus dengan garis lurus 0% pada usia 44 0% pada usia 44 0% pada usia 44 tahun dan 1% tahun dan 1% tahun dan 1% setelahnya/ setelahnya/ setelahnya/ 10% up to age 25, 10% up to age 25, 10% up to age 25, then decreasing then decreasing then decreasing linearly to 0% at linearly to 0% at linearly to 0% at age 44 and 1% age 44 and 1% age 44 and 1% thereafter thereafter thereafter 100% 100% 100% Implied rate of return on plan assets Resignation rate Proportion of retirement Halaman – 5/156– Page 816 Annual Report CIMB NIAGA 2017
  817. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 45. LIABILITAS IMBALAN KERJA (lanjutan) 45. EMPLOYEE BENEFIT OBLIGATIONS (continued) Imbalan Pensiun (lanjutan) Pension benefits (continued) a. a. Manfaat pasti (lanjutan) Jumlah yang diakui di laporan posisi keuangan konsolidasian ditentukan sebagai berikut: 2017 Bank CIMB Niaga Nilai wajar aset program Nilai kini liabilitas manfaat pasti yang didanai Efek penerapan asset ceiling pada akhir tahun Entitas Anak Liabilitas di laporan posisi keuangan konsolidasian Defined benefit plan (continued) The amounts recognised in the consolidated statements of financial position are determined as follows: 2016 2015 742,820 727,191 751,193 (895,476) (152,656) (765,597) (38,406) (722,784) 28,409 (152,656) (4,273) (38,406) (33,989) (28,409) (31,216) (156,929) (72,395) (31,216) Mutasi nilai kini liabilitas manfaat pasti yang didanai selama tahun berjalan adalah sebagai berikut: 2017 Bank CIMB Niaga Fair value of plan assets Present value of funded defined benefit obligation Effect of application of asset ceiling at end of year Subsidiary Liability recognised in consolidated statements of financial position The movement in the present value of funded defined benefit obligations of the year are as follows: 2016 2015 Nilai kini liabilitas pada awal tahun Biaya bunga Biaya jasa kini - bruto Pembayaran imbalan pada tahun berjalan Pengukuran kembali: Kerugian/(keuntungan) aktuarial yang timbul dari perubahan asumsi keuangan Kerugian/(keuntungan) aktuarial yang timbul dari perubahan asumsi masa kerja 765,597 119,708 20,834 (92,631) 722,784 79,909 22,617 (176,242) 832,371 69,172 25,133 (151,015) 59,359 67,466 (23,989) 22,609 49,063 (28,888) Nilai kini liabilitas pada akhir tahun 895,476 765,597 722,784 Actual present value of obligation at beginning of the year Interest cost Gross current service cost Benefit payments in year Remeasurements: Actuarial losses/(gains) from changes in financial assumption Actuarial losses/(gains) from changes in experience adjustments Actual present value of obligation at end of the year Halaman – 5/157– Page Annual Report CIMB NIAGA 2017 817
  818. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 45. LIABILITAS IMBALAN KERJA (lanjutan) 45. EMPLOYEE BENEFIT OBLIGATIONS (continued) Imbalan Pensiun (lanjutan) Pension benefits (continued) a. a. Manfaat pasti (lanjutan) Rekonsiliasi nilai wajar aset program adalah: Defined benefit plan (continued) The reconciliation of fair value of plan assets is as follows: 2017 2016 2015 Saldo awal Bunga Kontribusi Perusahaan Kontribusi karyawan Keuntungan/(kerugian) aktuaria Pembayaran selama tahun berjalan 727,191 60,956 24,940 6,258 16,106 (92,631) 751,193 65,842 38,159 7,428 40,811 (176,242) 882,692 74,715 19,929 9,867 (84,995) (151,015) Beginning balance Interest Company's contributions Employees' contributions Actuarial gain/(loss) Benefits payments during the year Saldo akhir 742,820 727,191 751,193 Ending balance Aset program terdiri dari: Instrumen Ekuitas Saham Reksadana Penempatan Langsung Instrumen Utang Obligasi Surat Berharga Pemerintah 2017 Tidak dikutip/ Unquoted Dikutip/ Quoted 172,135 132,043 - 210,565 66,381 Kas dan Setara Kas Deposito on call Deposito Tabungan Lain-lain Jumlah Plan assets comprise the following: 581,124 115,917 Jumlah/ Total 2016 Tidak dikutip/ Unquoted Dikutip/ Quoted 172,135 132,043 115,917 166,416 115,020 - - 210,565 66,381 179,844 110,537 14,500 10,300 2,058 14,500 10,300 2,058 18,921 161,696 18,921 742,820 571,817 115,917 - Jumlah/ Total 182,566 147,748 - 83,935 182,566 147,748 83,935 Equity Instrument Stocks Mutual Fund Direct Placement 179,844 110,537 124,185 139,948 - 124,185 139,948 Debt Instrument Bonds Government Bonds 22,429 13,893 969 22,429 13,893 969 Cash and Cash Equivalent Deposit on call Deposit Saving Account 35,520 156,746 35,520 751,193 Others Total 3,000 5,500 7,920 23,037 155,374 23,037 727,191 594,447 The amounts recognised in profit/loss are as follows: 2017 Entitas Anak Jumlah, disajikan sebagai bagian dari beban tenaga kerja 2015 Tidak dikutip/ Unquoted Dikutip/ Quoted 166,416 115,020 115,917 3,000 5,500 7,920 Jumlah yang diakui di laba/rugi adalah: Bank CIMB Niaga Biaya jasa kini setelah dikurangi kontribusi karyawan Bunga bersih, termasuk dampak penyesuaian prospektif (lihat Catatan 2b) Jumlah/ Total 2016 2015 (14,576) (15,188) (15,265) (58,753) (73,329) (48,343) (16,696) (31,884) (13,455) 10,127 (5,138) (19,908) (121,672) (45,339) (25,046) Mutasi saldo liabilitas yang diakui di dalam laporan posisi keuangan konsolidasian adalah: Bank CIMB Niaga Current service cost net of employees' contributions Net Interest, including the effect of prospective adjustment (refer to Note 2b) Subsidiary Total, included in personnel expenses The liability movement recognised in the consolidated statements of financial position: Halaman – 5/158– Page 818 Annual Report CIMB NIAGA 2017
  819. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 45. LIABILITAS IMBALAN KERJA (lanjutan) 45. EMPLOYEE BENEFIT OBLIGATIONS (continued) Imbalan Pensiun (lanjutan) a. Pension benefits (continued) Manfaat pasti (lanjutan) 2017 Saldo awal Beban tahun berjalan Jumlah yang diakui pada pendapatan komprehensif lain Kontribusi pemberi kerja terhadap dana pensiun Entitas Anak Saldo akhir 2016 a. Defined benefit plan (continued) 2015 (38,406) (73,329) (31,884) (1,345) (5,138) (65,861) (44,682) (13,446) 24,940 (152,656) (4,273) (156,929) 38,160 (38,406) (33,989) (72,395) 19,929 (31,216) (31,216) Sensitivitas dari kewajiban manfaat pasti terhadap perubahan asumsi aktuaria adalah sebagai berikut: Beginning balance Current year expense Total amount recognized in other comprehensive income Employer contribution to the pension fund Subsidiary Ending balance The sensitivity of defined benefit obligation to changes in the weighted assumptions is as follow : Dampak terhadap kewajiban manfaat pasti/ Impact on defined benefit obligation Tingkat diskonto Perubahan Asumsi/ Change in Assumption Kenaikan/increase 1% Penurunan/decrease 1% Tingkat kenaikan gaji Kenaikan/increase 1% Penurunan/decrease 1% 2017 Nilai kini kewajiban manfaat pasti/ Present value of defined benefit obligation 797,532 851,949 851,799 797,205 Biaya jasa kini/ Current service cost 97,945 43,529 43,678 98,272 2016 Nilai kini kewajiban manfaat pasti/ Present value of defined benefit obligation 728,055 777,423 777,658 727,442 Biaya jasa kini/ Current service cost 37,542 (11,826) (12,061) 38,155 2015 Nilai kini kewajiban manfaat pasti/ Present value of defined benefit obligation 688,253 737,352 737,790 687,464 Biaya jasa kini/ Current service cost 34,531 (14,568) Discount rate (15,006) 35,320 Salary increase rate Analisis sensitivitas didasarkan pada perubahan atas satu asumsi aktuarial dimana asumsi lainnya dianggap konstan. Dalam perhitungan sensitivitas kewajiban imbalan pasti atas asumsi aktuarial utama, metode yang sama (perhitungan nilai kini kewajiban imbalan pasti dengan menggunakan metode projected unit credit di akhir periode) telah diterapkan seperti dalam penghitungan kewajiban pensiun yang diakui dalam laporan posisi keuangan. The sensitivity analysis is based on a change in one assumption while holding all other assumptions constant. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the pension liability recognised within the statement of financial position. Investasi telah terdiversifikasi dengan baik, sehingga kinerja buruk satu investasi tidak akan memberikan dampak material bagi seluruh kelompok aset. Proporsi terbesar aset investasi ditempatkan pada instrumen ekuitas dan utang. Diyakini bahwa instrumen ekuitas dan utang memberikan imbal hasil yang paling baik dalam jangka panjang pada tingkatan risiko yang dapat diterima. Untuk program manfaat pasti sebagian instrumen ekuitas merupakan saham dan penempatan langsung. Investments are well-diversified, such that the failure of any single investment would not have a material impact to the overall group of assets. The largest proportion of assets are invested in equity and debt instruments. Equity and debt instruments are expected to contribute best yields in long term at the acceptable risk level. For defined benefit program most of equity instruments are stocks and direct placement. Halaman – 5/159– Page Annual Report CIMB NIAGA 2017 819
  820. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 45. LIABILITAS IMBALAN KERJA (lanjutan) 45. EMPLOYEE BENEFIT OBLIGATIONS (continued) Imbalan Pensiun (lanjutan) Pension benefits (continued) a. a. b. Manfaat pasti (lanjutan) Defined benefit plan (continued) Hasil yang diharapkan dari aset program ditentukan dengan mempertimbangkan imbal hasil yang diharapkan atas aset yang mengacu pada kebijakan investasi. Hasil investasi bunga tetap didasarkan pada hasil pengembalian bruto pada tanggal pelaporan. Hasil yang diharapkan dari investasi ekuitas dan properti mencerminkan tingkat imbal hasil jangka panjang aktual yang terjadi untuk tiap-tiap pasar. The expected return on plan assets is determined by considering the expected returns available on the assets in accordance to the current investment policy. Expected yields on fixed interest investments are based on gross redemption yields as of the reporting date. Expected returns on equity and property investments reflect long-term real rates of return experienced in the respective markets. Kontribusi untuk program imbalan pasca kerja untuk tahun 2017 adalah Rp 24.940 (2016: Rp 38.159; 2015: Rp 34.773). Contributions to post-employment benefit plans for the year 2017 is Rp 24,940 (2016: Rp 38,159; 2015: Rp 34,773). Risiko yang terekspos pada program manfaat pasti adalah adanya tingkat hasil investasi dibawah asumsi tingkat diskonto dan kenaikan gaji aktual yang lebih besar dari asumsi. Hal tersebut menimbulkan peningkatan iuran yang dibayarkan kepada Dana Pensiun. The exposed risks in defined benefit pension plan is the lower return on investment compared to assumption on discount rate and the in the actual salary is higher than its assumption. These will cause an increase in benefit paid to Pension Fund. Analisis jatuh tempo yang diharapkan dari manfaat pensiun adalah sebagai berikut: Expected maturity analysis of undiscounted pension benefit is as follows: Manfaat pasti Dalam 1 tahun/ Within 1 year 58,116 2 sampai 5 tahun/ Between 2 to 5 years 129,147 Manfaat pasti Dalam 1 tahun/ Within 1 year 51,328 2 sampai 5 tahun/ Between 2 to 5 years 151,606 Manfaat pasti Dalam 1 tahun/ Within 1 year 39,876 2 sampai 5 tahun/ Between 2 to 5 years 123,164 Program iuran pasti 2017 2016 2015 Lebih dari 5 tahun/ Over 5 years 705,148 Jumlah/ Total 892,411 Defined benefit Lebih dari 5 tahun/ Over 5 years 618,342 Jumlah/ Total 821,276 Defined benefit Lebih dari 5 tahun/ Over 5 years 642,230 Jumlah/ Total 805,270 Defined benefit b. Defined contribution plan Program pensiun untuk seluruh karyawan eks Bank Lippo adalah Program Iuran Pasti yang dikelola oleh PT AIA Financial. Sedangkan untuk sebagian karyawan eks Bank Niaga dikelola oleh PT Asuransi Manulife. The defined contribution retirement plan for all ex Bank Lippo permanent employees is administered by PT AIA Financial. Meanwhile the defined contribution retirement plan for ex Bank Niaga employees is administered by PT Asuransi Manulife. Berikut ini adalah hal-hal yang diungkapkan dalam laporan aktuaria tanggal 17 Januari 2018, 13 Januari 2017 dan 29 Januari 2016 masing-masing dalam menghitung liabilitas pensiun pada tanggal 31 Desember 2017, 2016, dan 2015. The following are disclosed in the actuarial report dated 17 January 2018, 13 January 2017 and 29 January 2016 to calculate the retirement benefits liability as at 31 December 2017, 2016, and 2015. Halaman – 5/160– Page 820 Annual Report CIMB NIAGA 2017
  821. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 45. LIABILITAS IMBALAN KERJA (lanjutan) 45. EMPLOYEE BENEFIT OBLIGATIONS (continued) Imbalan Pensiun (lanjutan) Pension benefits (continued) b. b. Defined contribution plan (continued) Program iuran pasti (lanjutan) Asumsi-asumsi utama yang digunakan dalam menentukan biaya imbalan pensiun oleh aktuaria independen adalah: Asumsi ekonomi: Tingkat diskonto Tingkat proyeksi / kenaikan gaji Asumsi lainnya: Usia pensiun normal The key assumptions used by the independent actuary for the calculation of pension benefit expenses, are as follows: 2017 2016 2015 7,00% per tahun/ 7.00% per annum 8,25% per tahun/ 8.25% per annum 9% per tahun/ 9% per annum 8% per tahun/ 8% per annum 8% per tahun/ 8% per annum 8% per tahun/ 8% per annum 55 tahun/ 55 years 55 tahun/ 55 years 55 tahun/ 55 years Economic assumptions: Discount rate Salary increase rate Other assumptions: Normal retirement age Tingkat kematian Tabel Mortalitas T abel Mortalitas Tabel Mortalitas Indonesia 2011 Indonesia 2011 Indonesia 2011 (TMI 2011)/ (T MI 2011)/ (TMI 2011)/ Indonesian Mortality Indonesian Mortality Indonesian Mortality Table 2011 Table 2011 Table 2011 (TMI 2011) (TMI 2011) (TMI 2011) Mortality rate Tingkat cacat 10% dari TMI 2011/ 10% dari T MI 2011/ 10% dari TMI 2011/ 10% of TMI 2011 10% of TMI 2011 10% of TMI 2011 Disability rate Imbal hasil atas aset program Tingkat pengunduran diri Proporsi pensiun normal 7,00% per tahun/ 7.00% per annum 8,25% per tahun/ 8.25% per annum 9% per tahun/ 9% per annum 10% untuk usia 10% untuk usia 10% untuk usia sampai dengan 25 sampai dengan 25 sampai dengan 25 tahun, dan menurun tahun, dan menurun tahun, dan menurun dengan garis lurus dengan garis lurus dengan garis lurus 0% pada usia 44 0% pada usia 44 0% pada usia 44 tahun dan 1% tahun dan 1% tahun dan 1% setelahnya/ setelahnya/ setelahnya/ 10% up to age 25, 10% up to age 25, 10% up to age 25, then decreasing then decreasing then decreasing linearly to 0% at linearly to 0% at linearly to 0% at age 44 and 1% age 44 and 1% age 44 and 1% thereafter thereafter thereafter 100% 100% 100% Implied rate of return on plan assets Resignation rate Proportion of retirement Halaman – 5/161– Page Annual Report CIMB NIAGA 2017 821
  822. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 45. LIABILITAS IMBALAN KERJA (lanjutan) 45. EMPLOYEE BENEFIT OBLIGATIONS (continued) Imbalan Pensiun (lanjutan) Pension benefits (continued) b. b. Defined contribution plan (continued) Program iuran pasti (lanjutan) Asumsi tingkat pengembalian investasi dihitung berdasarkan proyeksi jangka panjang dengan mengacu pada tingkat pengembalian aktual historis. The rate of return on investment is calculated based on long term outlook and take into account actual historical rate of return. Jumlah liabilitas yang diakui di dalam laporan posisi keuangan konsolidasian adalah: The liability recognised in the consolidated statements of financial position: 2017 Bank CIMB Niaga Nilai wajar aset program Nilai kini liabilitas manfaat pasti yang didanai Liabilitas yang diakui di laporan posisi keuangan konsolidasian 2016 136,633 132,372 127,789 (769,306) (637,149) (599,254) (632,673) (504,777) (471,465) Mutasi nilai kini liabilitas iuran pasti yang didanai selama tahun berjalan adalah sebagai berikut: 2017 Nilai kini liabilitas pada awal tahun Biaya jasa tahun lalu - non vested Biaya bunga Biaya jasa kini - bruto Pembayaran Imbalan pada periode berjalan Keuntungan kurtailmen Efek perubahan asumsi aktuarial Pengukuran kembali: Kerugian/(keuntungan) aktuarial yang timbul dari perubahan asumsi keuangan Kerugian/(keuntungan) aktuarial yang timbul dari perubahan asumsi masa kerja Nilai kini liabilitas pada akhir tahun 2015 Bank CIMB Niaga Fair value of plan assets Present value of funded defined benefit obligation Liability recognised in consolidated statements of financial position The movement in the present value of funded defined contribution of the year are as follows: 2016 2015 637,149 (1,678) 50,140 66,547 (64,662) (91,872) 599,254 (1,413) 52,734 61,829 (65,970) (44,807) 665,970 (1,285) 51,706 62,258 (70,684) (66,953) 121,764 51,407 (65,210) 51,918 (15,885) 23,452 769,306 637,149 599,254 Actual present value of obligation at beginning of the year Past service cost - non vested Interest cost Gross current service cost Benefit payments in period Curtailment gain Effect of changes in actuarial assumptions Remeasurements: Actuarial losses/(gains) from changes in financial assumption Actuarial losses/(gains) from changes in experience assumption Actual present value of obligation at ending of the year Halaman – 5/162– Page 822 Annual Report CIMB NIAGA 2017
  823. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 45. LIABILITAS IMBALAN KERJA (lanjutan) 45. EMPLOYEE BENEFIT OBLIGATIONS (continued) Imbalan Pensiun (lanjutan) Pension benefits (continued) b. b. Defined contribution plan (continued) Program iuran pasti (lanjutan) Rekonsiliasi nilai wajar aset program adalah: The reconciliation of fair value of plan assets is as follows: 2017 2016 2015 Saldo awal Bunga Kerugian aktuaria Pembayaran selama tahun berjalan 132,372 8,495 (4,234) - 127,789 9,740 (5,157) - 143,404 2,379 (17,994) Beginning balance Interest Actuarial loss Benefit payments during the year Saldo akhir 136,633 132,372 127,789 Ending balance Aset program pada tanggal 31 Desember 2017, 2016, dan 2015 adalah dalam bentuk giro dan deposito berjangka. Plan assets as at 31 December 2017, 2016, and 2015 were in form of current accounts and time deposits. Jumlah yang diakui di laba/rugi adalah: The amounts recognised in profit/loss are as follows: 2017 Bank CIMB Niaga Biaya jasa kini setelah dikurangi kontribusi karyawan Bunga bersih, termasuk dampak penyesuaian prospektif (lihat Catatan 2b) Biaya jasa tahun lalu Keuntungan kurtailmen Pembayaran manfaat Jumlah, disajikan sebagai bagian dari beban tenaga kerja 2016 2015 (66,547) (61,829) (62,258) (41,644) 1,678 91,872 (68,794) (42,994) 1,413 44,808 (160,009) (41,805) 5,674 66,953 (280,977) (83,435) (218,611) (312,413) Jumlah yang diakui di laporan posisi keuangan konsolidasian adalah: Saldo awal Beban imbalan kerja yang diakui tahun berjalan Jumlah yang diakui pada pendapatan komprehensif lain Pembayaran imbalan Saldo akhir The amounts recognised in the consolidated statements of financial position are as follows: 2017 (504,777) 2016 (471,465) 2015 (506,311) (83,435) (218,611) (312,413) (177,917) 133,456 (632,673) (40,680) 225,979 (504,777) 13,590 333,669 (471,465) Sensitivitas dari kewajiban iuran pasti terhadap perubahan asumsi aktuaria adalah sebagai berikut: 2017 Tingkat diskonto Perubahan Asumsi/ Change in Assumption Kenaikan/increase 1% Penurunan/decrease 1% Nilai kini kewajiban iuran pasti/ Present value of contribution obligation 674,007 879,616 Tingkat kenaikan gaji Kenaikan/increase 1% Penurunan/decrease 1% 875,205 676,024 Beginning balance Employee benefit expense recognised in the current year Total amount recognized in other comprehensive income Actual benefit payments Ending balance The sensitivity of defined contribution obligation to changes in the weighted assumptions is as follow: Dampak terhadap kewajiban iuran pasti/ Impact on defined contribution obligation 2016 Nilai kini kewajiban iuran pasti/ Biaya jasa kini/ Present value of Biaya jasa kini/ Current service cost contribution obligation Current service cost 95,299 564,098 73,051 (110,310) 724,670 (87,521) (105,899) 93,282 Bank CIMB Niaga Current service cost net of employees' contributions Net Interest, including the effect of prospective adjustment (refer to Note 2b) Past service cost Curtailment gain Benefit paid Total, included in personnel expenses 722,206 564,795 (85,057) 72,354 2015 Nilai kini kewajiban iuran pasti/ Present value of contribution obligation 536,827 674,884 Biaya jasa kini/ Current service cost 62,427 (75,630) Discount rate 673,294 536,974 (74,040) 62,280 Salary increase rate Halaman – 5/163– Page Annual Report CIMB NIAGA 2017 823
  824. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 45. LIABILITAS IMBALAN KERJA (lanjutan) 45. EMPLOYEE BENEFIT OBLIGATIONS (continued) Imbalan Pensiun (lanjutan) Pension benefits (continued) b. b. Defined contribution plan (continued) c. Program iuran pasti (lanjutan) Analisis sensitivitas didasarkan pada perubahan atas satu asumsi aktuarial dimana asumsi lainnya dianggap konstan. Dalam perhitungan sensitivitas kewajiban iuran pasti atas asumsi aktuarial utama, metode yang sama (perhitungan nilai kini kewajiban iuran pasti dengan menggunakan metode projected unit credit di akhir periode) telah diterapkan seperti dalam penghitungan kewajiban pensiun yang diakui dalam laporan posisi keuangan. The sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. When calculating the sensitivity of the defined contribution obligation to significant actuarial assumptions the same method (present value of the defined contribution obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the pension liability recognised within the statement of financial position. Sedangkan risiko yang terekspos pada program iuran pasti adalah hasil investasi dibawah tingkat diskonto. Hal ini akan mengakibatkan akumulasi iuran aktual lebih kecil dari nilai yang diasumsikan sehingga mengakibatkan selisih pembayaran terhadap UndangUndang Ketenagakerjaan akan meningkat dan berdampak pada beban dan liabilitas yang akan meningkat pula. The exposed risks in defined contribution plan is the lower return on investment compared to assumption on discount rate and therefore, will cause accumulated actual contribution is lower than its assumption, increase the difference in the amount of contribution based on Employment Act, and will also increase the amount of the related expenses and liabilities. Analisis jatuh tempo yang diharapkan dari manfaat pensiun adalah sebagai berikut: Expected maturity analysis of undiscounted pension benefit is as follows: Iuran pasti Dalam 1 tahun/ Within 1 year 51,232 2 sampai 5 tahun/ Between 2 to 5 years 236,808 Iuran pasti Dalam 1 tahun/ Within 1 year 58,806 2 sampai 5 tahun/ Between 2 to 5 years 208,462 Iuran pasti Dalam 1 tahun/ Within 1 year 49,770 2 sampai 5 tahun/ Between 2 to 5 years 211,278 Liabilitas imbalan pasca-kerja lainnya 2017 2016 2015 Lebih dari 5 tahun/ Over 5 years 1,276,734 Jumlah/ Total 1,564,774 Defined contribution Lebih dari 5 tahun/ Over 5 years 909,747 Jumlah/ Total 1,177,015 Defined contribution Lebih dari 5 tahun/ Over 5 years 772,957 Jumlah/ Total 1,034,005 Defined contribution c. Other post-retirement obligations Liabilitas imbalan pasca-kerja lainnya meliputi uang jasa, uang pisah, pesangon, imbalan kerja jangka panjang, dan kompensasi lainnya, dikompensasikan dengan imbalan pensiun. Other post-retirement obligations consist of service payments, severance payments, termination benefits, long term service awards, and other compensation, compensated with retirement benefits. Halaman – 5/164– Page 824 Annual Report CIMB NIAGA 2017
  825. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 45. LIABILITAS IMBALAN KERJA (lanjutan) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 45. Imbalan pensiun (lanjutan) EMPLOYEE BENEFIT OBLIGATIONS (continued) Pension benefits (continued) c. Liabilitas imbalan pasca-kerja lainnya (lanjutan) c. Asumsi-asumsi utama yang digunakan dalam menentukan biaya imbalan pensiun oleh aktuaria independen adalah: Asumsi ekonomi: Tingkat diskonto Tingkat proyeksi / kenaikan gaji Asumsi lainnya: Usia pensiun normal Other post-retirement obligations (continued) The key assumptions used by the independent actuary for the calculation of pension benefit expenses, are as follows: 2017 2016 2015 7,00% per tahun/ 7.00% per annum 8,25% per tahun/ 8.25% per annum 9% per tahun/ 9% per annum 8% per tahun/ 8% per annum 8% per tahun/ 8% per annum 8% per tahun/ 8% per annum 55 tahun/ 55 years 55 tahun/ 55 years 55 tahun/ 55 years Economic assumptions: Discount rate Salary increase rate Other assumptions: Normal retirement age Tingkat kematian T abel Mortalitas T abel Mortalitas Tabel Mortalitas Indonesia 2011 Indonesia 2011 Indonesia 2011 (T MI 2011)/ (T MI 2011)/ (T MI 2011)/ Indonesian Mortality Indonesian Mortality Indonesian Mortality Table 2011 Table 2011 Table 2011 (TMI 2011) (TMI 2011) (TMI 2011) Mortality rate Tingkat cacat 10% dari TMI 2011/ 10% dari T MI 2011/ 10% dari T MI 2011/ 10% of TMI 2011 10% of TMI 2011 10% of TMI 2011 Disability rate Tingkat pengunduran diri 10% untuk usia 10% untuk usia 10% untuk usia sampai dengan 25 sampai dengan 25 sampai dengan 25 tahun, dan menurun tahun, dan menurun tahun, dan menurun dengan garis lurus dengan garis lurus dengan garis lurus 0% pada usia 44 0% pada usia 44 0% pada usia 44 tahun dan 1% tahun dan 1% tahun dan 1% setelahnya/ setelahnya/ setelahnya/ 10% up to age 25, 10% up to age 25, 10% up to age 25, then decreasing then decreasing then decreasing linearly to 0% at linearly to 0% at linearly to 0% at age 44 and 1% age 44 and 1% age 44 and 1% thereafter thereafter thereafter Resignation rate Proporsi pensiun normal 100% 100% 100% Proportion of retirement Halaman – 5/165– Page Annual Report CIMB NIAGA 2017 825
  826. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 45. LIABILITAS IMBALAN KERJA (lanjutan) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 45. EMPLOYEE BENEFIT OBLIGATIONS (continued) Imbalan pensiun (lanjutan) Pension benefits (continued) c. Liabilitas imbalan pasca-kerja lainnya (lanjutan) c. Jumlah yang diakui di laporan posisi keuangan konsolidasian adalah: 2017 Nilai kini liabilitas Liabilitas yang diakui di laporan posisi keuangan konsolidasian The amounts recognised in the consolidated statements of financial position are as follows: 2016 2015 (74,918) (66,887) (24,184) (74,918) (66,887) (24,184) Jumlah yang diakui sebagai laba/rugi adalah: 2016 2015 7,058 5,291 603 2,281 1,974 44,317 2,399 2,150 (4,427) 12,952 48,572 122 Mutasi saldo liabilitas yang diakui di dalam laporan posisi keuangan konsolidasian adalah: 2017 (66,887) (12,952) 4,921 (74,918) Saldo awal Beban tahun berjalan Pembayaran imbalan Saldo akhir Tingkat diskonto Perubahan Asumsi/ Change in Assumption Kenaikan/increase 1% Penurunan/decrease 1% Nilai kini imbalan kerja lainnya/ Present value of other employee benefit obligation 69,215 81,398 Tingkat kenaikan gaji Kenaikan/increase 1% Penurunan/decrease 1% 81,270 69,220 2016 (24,184) (48,572) 5,869 (66,887) 2015 (30,203) (122) 6,141 (24,184) Beginning balance Current year expense Actual benefit payments Ending balance The sensitivity of other post-retirement obligations to changes in the weighted assumptions is as follow: Dampak terhadap liabilitas imbalan pasca-kerja lainnya/ Impact on Other post-retirement obligations 2016 Nilai kini imbalan kerja lainnya/ Biaya jasa kini/ Present value of other Biaya jasa kini/ Current service cost employee benefit obligation Current service cost 5,703 61,958 4,929 (6,480) 72,468 (5,581) (6,352) 5,698 Current service cost Interest cost Prior service cost - vested Total, included in personnel expense The liability movement recognised in the consolidated statements of financial position: Sensitivitas dari liabilitas imbalan pasca-kerja lainnya terhadap perubahan asumsi aktuaria adalah sebagai berikut: 2017 Present value of obligation Liability recognised in consolidated statements of financial position The amounts recognised as profit/loss are as follows: 2017 Biaya jasa kini Beban bunga Biaya jasa tahun lalu - vested Jumlah, disajikan sebagai bagian dari beban tenaga kerja Other post-retirement obligations (continued) 72,432 61,903 (5,545) 4,984 2015 Nilai kini imbalan kerja lainnya/ Present value of other employee benefit obligation 22,899 25,599 24,184 24,184 Biaya jasa kini/ Current service cost 1,285 (1,415) - Discount rate Salary increase rate Halaman – 5/166– Page 826 Annual Report CIMB NIAGA 2017
  827. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 45. LIABILITAS IMBALAN KERJA (lanjutan) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 45. EMPLOYEE BENEFIT OBLIGATIONS (continued) Imbalan pensiun (lanjutan) Pension benefits (continued) c. c. Liabilitas imbalan pasca-kerja lainnya (lanjutan) Other post-retirement obligations (continued) Analisis sensitivitas didasarkan pada perubahan atas satu asumsi aktuarial dimana asumsi lainnya dianggap konstan. Dalam perhitungan sensitivitas liabilitas imbalan pasca-kerja lainnya atas asumsi aktuarial utama, metode yang sama (perhitungan nilai kini liabilitas imbalan pasca-kerja lainnya dengan menggunakan metode projected unit credit di akhir periode) telah diterapkan seperti dalam penghitungan kewajiban pensiun yang diakui dalam laporan posisi keuangan. The sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. When calculating the sensitivity of the other post-retirement obligations to significant actuarial assumptions the same method (present value of the other post-retirement obligations calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the pension liability recognised within the statement of financial position. Analisis jatuh tempo yang diharapkan dari manfaat pensiun adalah sebagai berikut: Expected maturity analysis of undiscounted pension benefit is as follows: 2017 Dalam 1 tahun/ Within 1 year Imbalan pasca-kerja lainnya 2 sampai 5 tahun/ Between 2 to 5 years 3,375 Lebih dari 5 tahun/ Over 5 years 29,822 Jumlah/ Total 94,643 127,840 Other postretirement obligation 2016 Dalam 1 tahun/ Within 1 year 2 sampai 5 tahun/ Between 2 to 5 years Imbalan pasca-kerja lainnya 5,506 25,066 Imbalan pasca-kerja lainnya Dalam 1 tahun/ Within 1 year 4,257 2 sampai 5 tahun/ Between 2 to 5 years 11,508 Lebih dari 5 tahun/ Over 5 years Jumlah/ Total 82,478 113,050 Other postretirement obligation Lebih dari 5 tahun/ Over 5 years 21,317 Jumlah/ Total 37,082 Defined contribution 2015 46. PROGRAM KEPEMILIKAN SAHAM 46. EQUITY OWNERSHIP PLAN Program Kepemilikan Saham (EOP) Equity Ownership Plan (EOP) EOP diberikan pada bulan Maret 2011 oleh Grup CIMB dimana Grup CIMB dalam hal ini memberikan saham biasa atas Grup CIMB untuk karyawan-karyawan tertentu (Senior Vice President (SVP) dan Executive Vice President (EVP) dan Direksi) yang akan dibebankan langsung kepada Bank CIMB Niaga. Berdasarkan EOP tersebut, bagian dari remunerasi karyawan-karyawan tertentu tersebut akan digunakan untuk membeli saham biasa Grup CIMB dari pasar. Saham yang dibeli akan diberikan secara progresif kepada karyawan yang berhak berdasarkan tanggaltanggal tertentu setelah tanggal pembelian, tergantung pada hubungan kerja antara karyawan tersebut dan Bank CIMB Niaga. The EOP was introduced in March 2011 by CIMB Group where CIMB Group will grant ordinary shares of CIMB Group to selected employees of Bank CIMB Niaga (Senior Vice President (SVP) and Executive Vice President (EVP) and Board of Directors) with a re-charge to Bank CIMB Niaga. Under the EOP, earmarked portions of variable remuneration of selected employees of Bank CIMB Niaga will be utilised to purchase ordinary shares of CIMB Group from the market. The purchased shares will be released progressively to the eligible employees at various dates after the purchase date, subject to continued employment. Halaman – 5/167– Page Annual Report CIMB NIAGA 2017 827
  828. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 46. PROGRAM KEPEMILIKAN SAHAM (lanjutan) 46. EQUITY OWNERSHIP PLAN (continued) Program Kepemilikan Saham (EOP) (lanjutan) Equity Ownership Plan (EOP) (continued) Perusahaan terkait akan bertindak mewakili Grup CIMB untuk melakukan administrasi atas EOP dan menyimpan saham tersebut selama periode sebelum tanggal penyerahan. Kelayakan akan keikutsertaan pada EOP ditentukan oleh kebijakan dari Group Compensation Review Committee CIMB Group. A related company will act on behalf of CIMB Group to administer the EOP and to hold the shares in trust up to the pre-determined transfer date. The eligibility of participation in the EOP shall be at the discretion of the Group Compensation Review Committee of CIMB Group. Apabila terjadi pemutusan hubungan kerja selain pensiun, cacat atau kematian, karyawan tidak akan mendapatkan saham-saham yang belum diberikan. In the case of termination of employment other than retirement, disability or death, employee will not receive any unreleased shares. Berikut ini adalah rincian EOP yang diberikan oleh Grup CIMB: Below is the detail of EOP granted by CIMB Group: Tanggal pemberian EOP/ EOP granted date 25 Maret/March 2013 Jumlah yang dibayar Bank kepada perusahaan yang dibentuk Grup CIMB/ Amount paid by Bank to the entity established by CIMB Group 43,374 Jumlah lembar saham/ Total shares 1,220,675 Harga rata-rata per lembar saham/ Average price per share (nilai penuh/ full amount ) RM 7.74 Tanggal efektif/ Effective date 1 April/ April 2013 25 Maret/March 2014 32,084 1,250,297 7.15 31 Maret/March 2014 25 Maret/March 2015 13,997 651,688 5.97 1 April/ April 2015 4 Maret/March 2015 4,043 216,400 5.28 1 Juni/June 2015 900 62,900 4.33 1 Januari/January 2016 22,575 1,587,881 4.17 1 April/ April 2016 1,000 70,300 4.26 1 July/ July 2016 29,813 1,824,198 5.28 1 April/ April 2017 1 Januari/January 2016 25 Maret/March 2016 1 July/July 2016 25 Maret/March 2017 Persentase/ Percentage 33.33% 33.33% 33.33% 25.09% 24.97% 18.85% 24.97% 6.12% 84.87% 7.56% 7.57% 40.00% 30.00% 30.00% 40.00% 30.00% 30.00% 33.33% 33.33% 33.33% 40.00% 30.00% 30.00% 33.33% 33.33% 33.33% Tranche/ Tranche Periode vesting/ Vesting period 1 April/April 2014 1 April/April 2015 1 Januari/January 2016 31 Desember/December 2014 31 Maret/March 2015 31 Desember/December 2015 31 Maret/March 2016 31 Desember/December 2016 31 Maret/March 2016 31 Maret/March 2017 31 Desember/December 2017 1 Juni/June 2016 1 Juni/June 2017 1 Juni/June 2018 6 Januari/January 2017 6 Januari/ January 2018 6 Januari/January 2019 31 Maret/March 2017 31 Maret/March 2018 31 Desember/December 2018 1 Juni/June 2017 1 Juni/June 2018 1 Juni/June 2019 31 Maret/March 2018 31 Maret/March 2019 31 Desember/December 2019 Halaman – 5/168– Page 828 Annual Report CIMB NIAGA 2017
  829. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 46. PROGRAM KEPEMILIKAN SAHAM (lanjutan) 46. EQUITY OWNERSHIP PLAN (continued) Program Kepemilikan Saham (EOP) (lanjutan) Equity Ownership Plan (EOP) (continued) Berikut ini adalah mutasi jumlah hak atas lembar saham yang telah diberikan: Below is the movement of entitlements shares granted: 2017 2016 2015 Saldo awal 1,940,076 1,260,156 1,405,020 Beginning balance Diberikan 1,824,198 1,721,081 868,088 Granted (1,041,161) (1,012,952) Exercised 1,940,076 1,260,156 Ending balance Eksekusi (*) Saldo akhir (*) (791,039) 2,973,235 (*) Vested/ Pengunduran diri 47. LABA PER SAHAM DASAR DAN DILUSIAN (*) Vested/resignation 47. BASIC AND DILUTIVE EARNINGS PER SHARE Laba per saham dasar Basic earnings per share Laba per saham dasar dihitung dengan membagi laba bersih yang tersedia bagi pemegang saham dengan ratarata tertimbang saham biasa yang beredar pada tahun yang bersangkutan. Basic earnings per share is calculated by dividing the net profit attributable to shareholders by the weighted average number of ordinary shares on issue during the year. 2017 Laba bersih yang tersedia bagi pemegang saham Penyesuaian atas kerugian terhadap uang yang dikeluarkan untuk pembelian saham treasuri setelah pajak Laba bersih yang digunakan dalam perhitungan laba per saham Rata-rata tertimbang saham biasa yang beredar (dalam ribuan) (termasuk dana setoran modal) Laba per saham dasar (nilai penuh) 2,977,675 (1,476) 2,976,199 2016 2015 2,081,687 - 427,831 - 2,081,687 Net profit attributable to shareholders Loss on interest on cash paid out for the purchase of treasury shares net of tax 427,831 Net profit used in calculating earnings per share 25,115,406 25,131,607 25,131,607 Weighted average number of ordinary share on issue (in thousands) (including capital paid in advance) 118.50 82.83 17.02 Basic earnings per share (full amount) Rata-rata tertimbang saham biasa yang beredar dihitung berdasarkan jumlah saham biasa yang beredar pada posisi tiap akhir bulan sesuai dengan data dari Biro Administrasi Efek. The weighted average number of ordinary shares on issue is calculated based on the number of ordinary shares on issue at the end of month based on the data from Securities Administration Bureau. Untuk tahun 2017, perhitungan rata-rata tertimbang saham biasa yang beredar telah mempertimbangkan jumlah saham treasuri. For the year 2017, the calculation of the weighted average number of ordinary shares on issue has considered the number of treasury shares. Halaman – 5/169– Page Annual Report CIMB NIAGA 2017 829
  830. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 47. LABA PER SAHAM DASAR DAN DILUSIAN (lanjutan) 47. BASIC AND DILUTIVE EARNINGS PER SHARE (continued) Laba per saham dilusian Diluted earnings per share Dalam perhitungan laba bersih per saham dilusian jumlah rata-rata tertimbang jumlah yang beredar disesuaikan dengan asumsi bahwa semua efek berpotensi saham biasa yang sifatnya dilutif dikonversi. Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. Pada tanggal 31 Desember 2017, 2016, dan 2015, Bank CIMB Niaga tidak memiliki potensi saham yang bersifat dilutive. As at 31 December 2017, 2016, and 2015, Bank CIMB Niaga has no dilutive potential shares. 48. KOMITMEN DAN KONTINJENSI - BERSIH 48. COMMITMENTS AND CONTINGENCIES - NET Dalam bisnis normal perbankan, Bank CIMB Niaga mempunyai komitmen dan kontinjensi yang tidak disajikan dalam laporan posisi keuangan konsolidasian. As part of normal banking business, Bank CIMB Niaga has commitments and contingencies that are not presented in the consolidated statement of financial position. Ikhtisar komitmen dan kontinjensi Bank CIMB Niaga yang dinyatakan dalam nilai kontrak setara dengan mata uang Rupiah adalah: The following is a summary of Bank CIMB Niaga commitments and contingencies at the equivalent Rupiah contractual amounts: KOMITMEN Liabilitas komitmen Fasilitas penyediaan dana yang belum digunakan Irrevocable letters of credit yang masih berjalan Lain-lain Jumlah liabilitas komitmen Komitmen - bersih 2017 2016 2015 (58,955,494) (64,427,320) (58,374,051) (2,713,810) (416,431) (62,085,735) (62,085,735) (2,072,238) (69,516) (66,569,074) (66,569,074) (1,444,412) (64,786) (59,883,249) (59,883,249) COMMITMENTS Commitments payable Unutilised portion of fund facilities Outstanding irrecovable letters of credit Others Total commitments payable Commitments - net KONTINJENSI Tagihan kontinjensi Garansi yang diterima Penghasilan bunga dalam penyelesaian Jumlah tagihan kontinjensi 18,321 1,178,145 1,182,988 1,013,119 1,031,440 1,325,174 2,503,319 1,078,371 2,261,359 CONTINGENCIES Contingent receivables Guarantees received Interest receivable on non-performing assets Total contingent receivables Liabilitas kontinjensi Garansi yang diterbitkan Lain-lain Jumlah liabilitas kontinjensi Kontinjensi - bersih (4,892,293) (4) (4,892,297) (3,860,857) (4,029,469) (4,029,469) (1,526,150) (4,007,392) (4,007,392) (1,746,033) Contingent payables Guarantees issued Others Total contingent payables Contingencies - net (65,946,592) (68,095,224) (61,629,282) COMMITMENTS AND CONTINGENCIES - NET KOMITMEN DAN KONTINJENSI - BERSIH Halaman – 5/170– Page 830 Annual Report CIMB NIAGA 2017
  831. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 48. KOMITMEN DAN KONTINJENSI – BERSIH (lanjutan) 48. COMMITMENTS (continued) AND CONTINGENCIES – NET Komitmen dan kontinjensi yang berhubungan dengan derivatif disajikan di Catatan 11. The commitments and contingencies relating to derivative transaction is disclosed in Note 11. Rincian liabilitas komitmen dan kontinjensi untuk fasilitas penyediaan dana yang belum digunakan, irrevocable letters of credit yang masih berjalan, dan garansi yang diterbitkan berdasarkan kolektibilitas dan mata uang adalah: The details of commitments and contingencies payables for unutilised portion of fund facilities, outstanding irrevocable letters of credit, and guarantees issued based on collectibility and currency are as follows: Rupiah Fasilitas penyediaan dana yang belum digunakan Irrevocable letters of credit yang masih berjalan Garansi yang diterbitkan Sub jumlah Mata Uang Asing Fasilitas penyediaan dana yang belum digunakan Irrevocable letters of credit yang masih berjalan Garansi yang diterbitkan Sub jumlah Lancar/ Pass Dalam Perhatian Khusus/ Special Mention 2017 Kurang Lancar/ Substandard Diragukan/ Doubtful Macet/ Loss Jumlah/ Total 47,997,797 91,692 - - - 48,089,489 686,827 3,966,550 52,651,174 91,692 - - - 686,827 3,966,550 52,742,866 10,861,915 4,090 - - - 10,866,005 2,026,983 925,743 13,814,641 66,465,815 4,090 95,782 - - - 2,026,983 925,743 13,818,731 66,561,597 Dikurangi: Estimasi kerugian atas komitmen dan kontinjensi 66,561,597 Rupiah Unutilised portion of fund facilities Outstanding irrevocable letters of credit Guarantees issued Sub total Foreign currencies Unutilised portion of fund facilities Outstanding irrevocable letters of credit Guarantees issued Sub total Less: Estimated losses on commitments and contingencies Halaman – 5/171– Page Annual Report CIMB NIAGA 2017 831
  832. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 48. KOMITMEN DAN KONTINJENSI – BERSIH (lanjutan) 48. COMMITMENTS (continued) Rupiah Fasilitas penyediaan dana yang belum digunakan Irrevocable letters of credit yang masih berjalan Garansi yang diterbitkan Sub jumlah Mata Uang Asing Fasilitas penyediaan dana yang belum digunakan Irrevocable letters of credit yang masih berjalan Garansi yang diterbitkan Sub jumlah Lancar/ Pass Dalam Perhatian Khusus/ Special Mention Kurang Lancar/ Substandard Diragukan/ Doubtful Macet/ Loss Mata Uang Asing Fasilitas penyediaan dana yang belum digunakan Irrevocable letters of credit yang masih berjalan Garansi yang diterbitkan Sub jumlah Jumlah/ Total 52,692,575 687,923 - - - 53,380,498 815,836 3,253,234 56,761,645 687,923 - - - 815,836 3,253,234 57,449,568 11,046,641 181 - - - 11,046,822 1,256,402 776,235 13,079,278 69,840,923 181 688,104 - - - 1,256,402 776,235 13,079,459 70,529,027 70,529,027 Lancar/ Pass Dalam Perhatian Khusus/ Special Mention Kurang Lancar/ Substandard Diragukan/ Doubtful Macet/ Loss Jumlah/ Total 1,103,077 1,879 - 13,005 40,747,859 443,329 3,058,625 43,131,852 1,103,077 1,879 - 13,005 443,329 3,058,625 44,249,813 537,146 1,001,083 948,767 19,038,896 62,170,748 537,146 1,640,223 – - - - 17,626,192 1,879 - 13,005 1,001,083 948,767 19,576,042 63,825,855 Dikurangi: Estimasi kerugian atas komitmen dan kontinjensi Rupiah Unutilised portion of fund facilities Outstanding irrevocable letters of credit Guarantees issued Sub total Foreign currencies Unutilised portion of fund facilities Outstanding irrevocable letters of credit Guarantees issued Sub total Less: Estimated losses on commitments and contingencies 63,825,855 Rupiah Unutilised portion of fund facilities Outstanding irrevocable letters of credit Guarantees issued Sub total Foreign currencies Unutilised portion of fund facilities Outstanding irrevocable letters of credit Guarantees issued Sub total Less: Estimated losses on commitments and contingencies Halaman – 5/172– Page 832 NET 2015 39,629,898 17,089,046 CONTINGENCIES 2016 Dikurangi: Estimasi kerugian atas komitmen dan kontinjensi Rupiah Fasilitas penyediaan dana yang belum digunakan Irrevocable letters of credit yang masih berjalan Garansi yang diterbitkan Sub jumlah AND Annual Report CIMB NIAGA 2017
  833. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 49. TRANSAKSI DENGAN PIHAK-PIHAK BERELASI 49. RELATED PARTIES TRANSACTIONS Bank CIMB Niaga dikendalikan oleh CIMB Group Sdn Bhd, Malaysia. Kepemilikan minoritas dipegang dan dimiliki oleh banyak pihak. Lihat Catatan 34 untuk informasi mengenai pemegang saham utama dari CIMB Group Sdn Bhd. Bank CIMB Niaga is controlled by CIMB Group Sdn Bhd, Malaysia. The remaining minority shares are widely held. For information on the ultimate parent company of CIMB Group Sdn Bhd, refer to Note 34. Sifat Hubungan Berelasi Nature of Relationship Pihak-pihak berelasi adalah perusahaan dan perorangan yang mempunyai keterkaitan kepemilikan atau kepengurusan secara langsung maupun tidak langsung dengan Bank CIMB Niaga. Informasi Entitas Anak diungkapkan pada Catatan 1d. Pemegang saham pengendali dan mayoritas, induk dari pemegang saham mayoritas, dan pemegang saham akhir diungkapkan pada Catatan 34. Related parties are companies and individuals who directly or indirectly have relationships with Bank CIMB Niaga through ownership or management. Information of Subsidiary are disclosed in Note 1d.The controlling and majority shareholder, parent of majority shareholder, and the ultimate shareholders are disclosed in Note 34. Pihak berelasi/ Related parties Sifat dari hubungan/ Nature of relationship Sifat dari transaksi/ Nature of transactions CIMB Group Holdings Berhad Pemegang saham mayoritas/ Parent of majority shareholder Simpanan dari nasabah/Deposits from customers CIMB Islamic Bank Berhad Dikendalikan oleh pemegang saham akhir yang sama/Controlled by same ultimate shareholder Simpanan dari bank lain/Deposits from other banks CIMB Bank Berhad Dikendalikan oleh pemegang saham akhir yang sama/Controlled by same ultimate shareholder Simpanan dari bank lain; Liabilitas derivatif; Pinjaman yang diterima/ Deposits from other banks; Derivative payable; Borrowings PT XL Axiata Tbk Dikendalikan oleh pemegang saham akhir yang sama/Controlled by same ultimate shareholder Simpanan dari nasabah/Deposits from customers CIMB Bank (L) Limited Dikendalikan oleh pemegang saham akhir yang sama/Controlled by same ultimate shareholder Simpanan dari bank lain/Deposits from other banks PT CIMB Securities Indonesia Dikendalikan oleh pemegang saham akhir yang sama/Controlled by same ultimate shareholder Kredit yang diberikan; Simpanan dari nasabah/Loans; Deposits from customers PT CIMB Principal Asset Management Dikendalikan oleh pemegang saham akhir yang sama/Controlled by same ultimate shareholder Simpanan dari nasabah/Deposits from customers PT Niaga Manajemen Citra Dikelola oleh pejabat eksekutif Bank CIMB Niaga/Controlled by Bank CIMB Niaga’s executive officers Beban dibayar di muka; Simpanan dari nasabah/Prepaid expenses; Deposits from customers PT Commerce Kapital Dikendalikan oleh pemegang saham akhir yang sama/Controlled by same ultimate shareholder Simpanan dari nasabah/Deposits from customers Dana Pensiun PT Bank CIMB Niaga Tbk Dikelola oleh pejabat eksekutif Bank CIMB Niaga/Controlled by Bank CIMB Niaga’s executive officers Simpanan dari nasabah/Deposits from customers PT Kayo Inti Gemilang Dikendalikan oleh pemegang saham akhir yang sama/Controlled by same ultimate shareholder Aset lain-lain/Other assets Dewan Komisaris, Direksi, dan Pejabat Eksekutif Bank/Board of Commissioners, Directors, and Executive Bank Officers Manajemen Bank CIMB Niaga/Bank CIMB Niaga’s Management Kredit yang diberikan; Simpanan dari nasabah/Loans; Deposits from customers Halaman – 5/173– Page Annual Report CIMB NIAGA 2017 833
  834. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 49. TRANSAKSI (lanjutan) 49. RELATED PARTIES TRANSACTIONS (continued) DENGAN PIHAK-PIHAK BERELASI Sifat Hubungan Berelasi (lanjutan) Nature of Relationship (continued) Transaksi dengan pihak-pihak berelasi terutama berhubungan dengan pinjam-meminjam dana dalam kegiatan normal usaha. The related party transactions primarily related to lending and borrowing of funds in the normal course of their business. Transaksi dan Saldo dengan Pihak Berelasi Transactions and Balances with Related Parties Rincian saldo dengan pihak-pihak yang berelasi yang merupakan perusahaan asosiasi dengan Bank CIMB Niaga adalah: The details of balances with related parties of associated parties with Bank CIMB Niaga are as follows: 2017 2016 2015 Aset Kredit yang diberikan - Dewan Komisaris, Direksi, dan Pejabat Eksekutif Bank - Pihak yang dimiliki oleh pemegang saham akhir yang sama Assets 147,700 159,746 24,370 120,000 267,700 55,000 214,746 120,000 144,370 Tagihan derivatif - Pihak yang dimiliki oleh pemegang saham akhir yang sama Penyertaan - Pihak yang dimiliki oleh pemegang saham akhir yang sama - - - - 296 296 9,474 9,474 Beban dibayar di muka - Pihak yang dikelola oleh pejabat eksekutif Bank CIMB Niaga 131,069 131,069 137,310 137,310 143,552 143,552 Aset lain-lain Jumlah aset yang terkait dengan pihak-pihak berelasi Sebagai persentase terhadap jumlah aset Derivative receivable Parties under same ultimate shareholders Investments Parties under same ultimate shareholder Prepaid expense Parties controlled by Bank CIMB Niaga's executive officers Other Assets - Pihak yang dimiliki oleh pemegang saham akhir yang sama Loans Board of Commissioners, Directors, and Executive Bank Officers Parties under same ultimate shareholder Parties under - 858,198 878,105 398,769 1,210,254 1,175,797 Total asset associated with related parties 0.15% 0.50% 0.49% As a percentage to total assets same ultimate shareholder Halaman – 5/174– Page 834 Annual Report CIMB NIAGA 2017
  835. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 49. TRANSAKSI (lanjutan) 49. RELATED PARTIES TRANSACTIONS (continued) DENGAN PIHAK-PIHAK BERELASI Transaksi dan Saldo dengan Pihak Berelasi (lanjutan) 2017 Transactions and Balances with Related Parties (continued) 2016 2015 Liabilitas Simpanan dari nasabah - Giro - Dewan Komisaris, Direksi, dan Pejabat Eksekutif Bank - Pihak yang dimiliki oleh pemegang saham akhir yang sama - Pihak yang dikelola oleh pejabat eksekutif Bank CIMB Niaga - Pemegang saham mayoritas - Tabungan - Dewan Komisaris, Direksi, dan Pejabat Eksekutif Bank - Pihak yang dikelola oleh pejabat eksekutif Bank CIMB Niaga - Deposito berjangka - Dewan Komisaris, Direksi, dan Pejabat Eksekutif Bank - Pihak yang dimiliki oleh pemegang saham akhir yang sama - Pihak yang dikelola oleh pejabat eksekutif Bank CIMB Niaga Simpanan dari bank lain - Giro - Pihak yang dimiliki oleh pemegang saham akhir yang sama Liabilitas derivatif - Pihak yang dimiliki oleh pemegang saham akhir yang sama Pinjaman yang diterima - Pihak yang dimiliki oleh pemegang saham akhir yang sama Jumlah liabilitas yang terkait dengan pihak-pihak berelasi Sebagai persentase terhadap jumlah liabilitas Liabilities 9 26 1,700 23,381 42,384 473,966 388 3,500 27,278 2,990 3,461 48,861 10,134 9 485,809 62,827 63,034 48,816 310 63,137 3,236 66,270 10,307 59,123 68,592 81,624 82,562 4,839 7,144 62,570 73,431 88,768 10,000 155,132 202,028 202,028 9,655 9,655 199,236 199,236 16,009 16,009 43,510 43,510 28,733 28,733 Deposits from customers Demand deposits Board of Commissioners, Directors, and Executive Bank Officers Parties under same ultimate shareholders Parties controlled by Bank CIMB Niaga's executive officers Parent of majority shareholders Saving deposits Board of Commissioners, Directors, and Executive Bank Officers Parties controlled by Bank CIMB Niaga's executive officers Time deposits Board of Commissioners, Directors, and Executive Bank Officers Parties under same ultimate shareholders Parties controlled by Bank CIMB Niaga's executive officers Deposits from other banks Demand Deposit Parties under same ultimate shareholders Derivative payables Parties under same ultimate shareholders Borrowing Parties under same ultimate shareholders 542,947 542,947 898,156 898,156 1,286,600 1,286,600 918,476 1,317,300 2,058,907 Total liabilities associated with related parties 0.40% 0.64% 0.98% As a percentage to total liabilities Halaman – 5/175– Page Annual Report CIMB NIAGA 2017 835
  836. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 49. TRANSAKSI (lanjutan) 49. RELATED PARTIES TRANSACTIONS (continued) DENGAN PIHAK-PIHAK BERELASI Transaksi dan Saldo dengan Pihak Berelasi (lanjutan) Transactions and Balances with Related Parties (continued) Rincian transaksi pihak-pihak berelasi dengan Bank CIMB Niaga adalah: The details of related parties transactions with Bank CIMB Niaga are as follows: 2017 Pendapatan bunga - Dewan Komisaris, Direksi, dan Pejabat Eksekutif Bank - Pihak yang dimiliki oleh pemegang saham akhir yang sama Jumlah pendapatan bunga yang terkait dengan pihak-pihak berelasi Sebagai persentase terhadap jumlah pendapatan bunga Beban bunga - Dewan Komisaris, Direksi, dan Pejabat Eksekutif Bank - Pihak yang dimiliki oleh pemegang saham akhir yang sama - Pihak yang dikelola oleh pejabat eksekutif Bank CIMB Niaga - Pemegang saham mayoritas Jumlah beban bunga yang terkait dengan pihak-pihak berelasi Sebagai persentase terhadap jumlah beban bunga 2016 18,253 3,072 13,033 6,447 15,125 29,074 24,700 18,197 Parties under same ultimate shareholders Total interest income associated with related parties 0.14% 0.12% 0.08% As a percentage to total interest income 5,217 6,818 8,914 Board of Commissioners, Directors, and Executive Bank Officers 18,815 25,458 37,758 20 99 191 102 1,534 - 24,151 32,569 48,206 Parties under same ultimate shareholders Parties controlled by Bank CIMB Niaga's executive officers Parent of majority shareholders Total interest expense associated with related parties 0.30% 0.35% 0.44% As a percentage to total interest expense 50. NON-CONTROLLING INTEREST Kepentingan nonpengendali atas kekayaan bersih Entitas Anak adalah: 2017 Saldo awal Bagian keuntungan bersih - tahun berjalan Saldo akhir kepentingan nonpengendali b. a. 2016 The non-controlling interest in the net assets of Subsidiary are as follows: 2015 818 788 734 Beginning balance 63 30 54 881 818 788 Net income - current year Ending balance of non-controlling interest Kepentingan nonpengendali atas laba bersih Entitas Anak adalah: 2017 PT CIMB Niaga Auto Finance PT Kencana Internusa Artha Finance Interest Income Board of Commissioners, Directors, and Executive Bank Officers 16,041 50. KEPENTINGAN NONPENGENDALI a. 2015 b. 2016 63 63 The non-controlling interest in the net income of Subsidiary are as follows: 2015 30 30 70 (16) 54 PT CIMB Niaga Auto Finance PT Kencana Internusa Artha Finance Halaman – 5/176– Page 836 Annual Report CIMB NIAGA 2017
  837. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 51. INFORMASI SEGMEN USAHA 51. OPERATING SEGMENTS INFORMATION Bank CIMB Niaga telah menyajikan segmen operasi berdasarkan informasi yang disiapkan secara internal untuk pengambil keputusan operasional. Kebijakan akuntansi ini merupakan penerapan PSAK 5 (Revisi 2014), “Segmen Operasi”. Bank CIMB Niaga presents operating segments based on the information that is internally provided to the chief operating decision maker. This accounting policy is due to the adoption of SFAS 5 (Revised 2014), “Operating Segments”. Segmen operasi dilaporkan sesuai dengan laporan internal yang disiapkan untuk pengambil keputusan operasional yang bertanggung jawab untuk mengalokasikan sumber daya ke segmen tertentu dan melakukan penilaian atas performanya. Seluruh segmen operasi yang digunakan oleh Bank CIMB Niaga telah memenuhi kriteria pelaporan berdasarkan PSAK 5 (Revisi 2014). Operating segments are reported in accordance with the internal reporting provided to the chief operating decision maker, which is responsible for allocating resources to the reportable segments and assesses its performance. All operating segments used by Bank CIMB Niaga meet the definition of a reportable segment under SFAS 5 (Revised 2014). Bank CIMB Niaga memiliki 7 (tujuh) pelaporan segmen. Di bawah ini merupakan penjelasan mengenai operasi dari masing-masing pelaporan segmen yang dimiliki oleh Bank CIMB Niaga: Bank CIMB Niaga has 7 (seven) reportable segments. The following describes the operations in each of Bank CIMB Niaga’s reportable segments:        Korporasi - termasuk kredit yang diberikan, simpanan dan transaksi-transaksi lain, serta saldo atas nasabah korporasi; Bisnis - merupakan produk dan jasa untuk nasabah yang berskala kecil hingga sedang;  Corporate - includes loans, deposits and other transactions, and balances with corporate customers;  Ritel - fokus kepada produk dan jasa kepada nasabah individual. Segmen ini termasuk fasilitas kredit yang diberikan, simpanan dan transaksi-transaksi lain, serta saldo atas nasabah ritel; Tresuri - segmen ini terkait dengan kegiatan tresuri Bank CIMB Niaga termasuk transaksi valuta asing, money market, derivatif, serta investasi dalam bentuk penempatan dan efek-efek; Syariah - seluruh transaksi yang dilakukan oleh Unit Usaha Syariah; Lain-lain - termasuk aktivitas back office dan divisi yang tidak menghasilkan laba di Bank CIMB Niaga. Lain-lain termasuk jasa korporasi, penjualan dan distribusi, serta lain-lain; dan Entitas Anak - termasuk seluruh transaksi yang timbul dan dilakukan berdasarkan bisnis Entitas Anak.  Business - includes products and services for customer segments comprising small to medium scale enterprises; Retail - focuses on products and services for individual customers. It includes products such as loans, deposits and others transactions, and balances with retail customers; Treasury - undertake Bank CIMB Niaga’s treasury activities which include foreign exchange, money market, derivatives, and investing in placements and securities; Sharia - includes all transactions relating to Sharia Business Unit; Others - includes all back office activities and nonprofit center divisions in Bank CIMB Niaga. Thus, it includes corporate service, sales and distribution, and others; and Subsidiary - includes all transactions relating to Subsidiary’ businesses.     Halaman – 5/177– Page Annual Report CIMB NIAGA 2017 837
  838. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 51. INFORMASI SEGMEN USAHA (lanjutan) 51. OPERATING SEGMENTS INFORMATION (continued) 2017 Penghasilan/(beban) bunga bersih -Pendapatan dari pihak eksternal -Pendapatan antar segmen Kerugian penurunan nilai atas aset keuangan dan nonkeuangan - bersih Provisi dan komisi lainnya Pendapatan operasional lainnya Beban tenaga kerja Umum dan administrasi Beban operasional lainnya Laba/(rugi) operasional bersih (Beban)/pendapatan bukan operasional - bersih Laba/(rugi) sebelum pajak penghasilan Beban pajak penghasilan Laba/(rugi) bersih Kepentingan nonpengendali Korporasi/ Corporate 1,871,735 4,162,369 (2,290,634) Bisnis/ Business 2,323,471 4,457,751 (2,134,280) Ritel/ Retail 4,523,276 1,942,822 2,580,454 Tresuri/ Treasury 2,370,900 736,484 1,634,416 Syariah/ Sharia 672,145 637,053 35,092 Lain-lain/ Others 75,897 (99,055) 174,952 Anak Perusahaan/ Subsidiaries 565,955 565,955 - Jumlah/ Total 12,403,379 12,403,379 - (760,997) 162,281 119,231 (109,267) (61,485) 1,221,498 (1,520,430) 330,244 203,427 (391,788) (218,290) (2,276) 724,358 (1,486,468) 1,399,974 242,295 (1,360,004) (2,047,643) (48,771) 1,222,659 (90) (38,441) 445,167 (70,143) (30,718) 2,676,675 (108,921) 62,750 29,875 (99,033) (73,892) (38) 482,886 10,486 189,523 12,872 (1,696,676) (877,862) (65,598) (2,351,358) (213,385) 28,486 164,764 (221,301) (133,378) (61,288) 129,853 (4,079,805) 2,134,817 1,217,631 (3,948,212) (3,443,268) (177,971) 4,106,571 Net interest income/(expense) Income from external parties Inter-segmen income Impairment losses on financial and non-financial assets - net Other fees and commissions Other operating income Personnel expenses General and administrative Other operating expenses Net operating income/(loss) 1,802 1,223,300 6,324 730,682 7,879 1,230,538 43 2,676,718 (1,175) 481,711 13,574 (2,337,784) 20,002 149,855 48,449 4,155,020 Non-operating (expenses)/ income - net Income/(loss) before income tax - (1,117,198) (60,084) (1,177,282) Income tax expense (3,454,982) 89,771 2,977,738 Net income/(loss) (63) Non-controlling interest 1,223,300 - 730,682 - - - 1,230,538 2,676,718 - 481,711 - - (63) - Jumlah aset 64,405,485 63,032,603 39,126,739 63,379,006 18,931,885 13,468,036 3,961,691 266,305,445 Total assets Jumlah liabilitas 21,630,797 54,806,366 87,391,323 32,419,204 20,879,773 9,499,333 2,727,653 229,354,449 Total liabilities Korporasi/ Corporate 1,729,209 3,986,702 (2,257,493) Bisnis/ Business 3,288,703 4,683,874 (1,395,171) Ritel/ Retail 3,455,199 1,687,962 1,767,237 Tresuri/ Treasury 2,430,205 691,692 1,738,513 Syariah/ Sharia 498,626 474,259 24,367 Lain-lain/ Others 30,720 (91,827) 122,547 Anak Perusahaan/ Subsidiaries 661,368 661,368 - Jumlah/ Total 12,094,030 12,094,030 - (1,548,034) 173,773 9,850 (110,090) (67,007) (1) 187,700 (1,848,128) 165,639 33,222 (359,497) (277,494) (816) 1,001,629 (1,000,011) 1,443,181 115,220 (1,247,993) (2,011,659) (14,878) 739,059 3,997 (27,061) 669,487 (65,070) (71,150) 2,940,408 (134,474) 40,420 17,944 (95,795) (66,571) (86) 260,064 (41,498) 182,783 13 (1,510,788) (1,089,740) (7,878) (2,436,388) (404,803) 134,625 106,318 (257,686) (175,914) (2,786) 61,122 (4,972,951) 2,113,360 952,054 (3,646,919) (3,759,535) (26,445) 2,753,594 Net interest income/(expense) Income from external parties Inter-segmen income Impairment losses on financial and non-financial assets - net Other fees and commissions Other operating income Personnel expenses General and administrative Other operating expenses Net operating income/(loss) 1,312 189,012 589 1,002,218 2,444 741,503 31,026 2,971,434 184 260,248 14,656 (2,421,732) 46,903 108,025 97,114 2,850,708 Non-operating (expenses)/ income - net Income/(loss) before income tax (703,456) (65,535) (768,991) Income tax expense (3,125,188) 42,490 2,081,717 Net income/(loss) (30) Non-controlling interest 2016 Penghasilan/(beban) bunga bersih -Pendapatan dari pihak eksternal -Pendapatan antar segmen Kerugian penurunan nilai atas aset keuangan dan nonkeuangan - bersih Provisi dan komisi lainnya Pendapatan operasional lainnya Beban tenaga kerja Umum dan administrasi Beban operasional lainnya Laba/(rugi) operasional bersih (Beban)/pendapatan bukan operasional - bersih Laba/(rugi) sebelum pajak penghasilan Beban pajak penghasilan Laba/(rugi) bersih Kepentingan nonpengendali 189,012 - 1,002,218 741,503 - - - 2,971,434 - 260,248 - - (30) - Jumlah aset 59,711,883 65,480,945 40,484,512 47,331,554 10,750,064 11,095,855 6,716,915 241,571,728 Total assets Jumlah liabilitas 18,881,976 52,872,449 88,388,324 22,340,500 11,319,038 7,991,092 5,570,727 207,364,106 Total liabilities 2015 Penghasilan/(beban) bunga bersih -Pendapatan dari pihak eksternal -Pendapatan antar segmen Kerugian penurunan nilai atas aset keuangan dan nonkeuangan - bersih Provisi dan komisi lainnya Pendapatan operasional lainnya Beban tenaga kerja Umum dan administrasi (Beban)/pendapatan operasional lainnya Laba/(rugi) operasional bersih (Beban)/pendapatan bukan operasional - bersih Laba/(rugi) sebelum pajak penghasilan Beban pajak penghasilan Laba/(rugi) bersih Kepentingan nonpengendali Korporasi/ Corporate 1,997,299 4,022,841 (2,025,542) Bisnis/ Business 3,375,778 5,124,520 (1,748,742) Ritel/ Retail 3,070,603 1,136,929 1,933,674 Tresuri/ Treasury 2,342,636 216,419 2,126,217 Syariah/ Sharia 411,349 400,769 10,580 Lain-lain/ Others (240,216) 55,971 (296,187) Anak Perusahaan/ Subsidiaries 428,911 428,911 - Jumlah/ Total 11,386,360 11,386,360 - (2,402,501) 376,374 17 (158,567) (105,439) (32) (292,849) (1,816,158) 195,506 44,124 (419,362) (328,589) (1,944) 1,049,355 (733,890) 945,714 135,233 (1,185,544) (1,893,692) (17,916) 320,508 (3,553) (25,936) 246,317 (636,991) (93,243) 1,829,230 (175,149) 30,355 18,741 (86,989) (65,936) (162) 132,209 (50,195) 465 464 (1,383,486) (814,200) 13,798 (2,473,370) (162,011) 195,618 168,726 (285,157) (219,507) 126,580 (5,343,457) 1,718,096 613,622 (4,156,096) (3,520,606) (6,256) 691,663 Net interest income/(expense) Income from external parties Inter-segmen income Impairment losses on financial and non-financial assets - net Other fees and commissions Other operating income Personnel expenses General and administrative Other operating (expenses)/income Net operating income/(loss) 1,008 (291,841) (865) 1,048,490 (38,720) 281,788 96,827 1,926,057 (35,738) 96,471 (89,273) (2,562,643) (54,898) 71,682 (121,659) 570,004 Non-operating (expenses)/ income - net Income/(loss) before income tax (172,470) 30,351 (142,119) Income tax expense (2,735,113) 102,033 427,885 Net income/(loss) (54) Non-controlling interest (291,841) - 1,048,490 - - - 281,788 - 1,926,057 - 96,471 - (54) - Jumlah aset 57,049,530 66,309,255 42,852,971 49,244,245 7,853,156 7,812,105 7,727,990 238,849,252 Total assets Jumlah liabilitas 22,613,736 57,787,146 86,661,011 27,939,770 7,713,936 831,245 6,623,021 210,169,865 Total liabilities Halaman – 5/178– Page 838 Annual Report CIMB NIAGA 2017
  839. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 51. INFORMASI SEGMEN USAHA (lanjutan) 51. OPERATING SEGMENTS INFORMATION (continued) Informasi yang berkaitan dengan segmen usaha utama dari Bank CIMB Niaga dan Entitas Anak disajikan dalam tabel di atas ini. Information concerning the main business segments of Bank CIMB Niaga and Subsidiary is presented in the table above. Segmen geografis Geographical segment Operasional utama dari Bank CIMB Niaga dan Entitas Anak dikelola di wilayah Indonesia. Segmen bisnis Bank CIMB Niaga terbagi atas 6 (enam) area geografis utama, diluar Entitas Anak, yaitu Jakarta, Jawa Barat, Jawa Tengah, Jawa Timur, Indonesia Timur, dan Sumatera. The principal operations of Bank CIMB Niaga and its Subsidiary are managed in Indonesia. Bank CIMB Niaga's business segments are mainly separated in 6 (six) main geographical areas, except for Subsidiary, which are Jakarta, West Java, Central Java, East Java, East Indonesia, and Sumatera. Segmen geografis Geographical segment Informasi yang berkaitan dengan segmen berdasarkan geografis dari Bank CIMB Niaga dan Entitas Anak disajikan dalam tabel di bawah ini: Information concerning the geographical segments of Bank CIMB Niaga and Subsidiary is presented in the table below: Jawa Penghasilan bunga bersih Kerugian penurunan nilai atas aset keuangan dan nonkeuangan - bersih Provisi dan komisi lainnya Pendapatan operasional lainnya Beban tenaga kerja Umum dan administrasi Beban operasional lainnya Laba operasional bersih (Beban)/pendapatan bukan operasional - bersih Laba sebelum pajak penghasilan Beban pajak penghasilan Laba bersih Jawa 2017 Indonesia Jawa Jakarta/ Jakarta 8,614,214 Barat/ West Java 644,167 Tengah/ Central Java 618,677 Timur/ East Java 815,364 (2,813,333) 1,822,884 968,659 (2,900,494) (2,709,441) (72,553) 2,909,936 (167,605) 73,982 20,755 (169,325) (131,871) (279) 269,824 (188,170) 50,039 14,195 (172,693) (107,608) (172) 214,268 20,960 2,930,896 24 269,848 335 214,603 (1,117,198) 1,813,698 Kepentingan nonpengendali (63) 269,848 - Timur/ East Indonesia 361,587 Sumatera/ Sumatera 783,415 Anak Perusahaan/ Subsidiaries 565,955 Jumlah/ Total 12,403,379 (273,803) 64,634 16,357 (190,996) (141,997) (5,499) 284,060 (220,245) 29,334 13,258 (106,373) (77,283) (47) 231 (203,264) 65,458 19,643 (187,030) (141,690) (38,133) 298,399 (213,385) 28,486 164,764 (221,301) (133,378) (61,288) 129,853 (4,079,805) 2,134,817 1,217,631 (3,948,212) (3,443,268) (177,971) 4,106,571 Net interest income Impairment losses on financial and non-financial assets - net Other fees and commissions Other operating income Personnel expenses General and administrative Other operating expenses Net operating income 6,549 290,609 (159) 72 738 299,137 20,002 149,855 48,449 4,155,020 Non-operating (expense)/income - net Income/(loss) before income tax Income tax expense - - 214,603 290,609 - - - 72 - (60,084) (1,177,282) 299,137 89,771 2,977,738 Net income - - (63) Non-controlling interest - Jumlah aset 187,333,422 16,786,110 13,473,190 21,191,211 7,138,907 16,420,914 3,961,691 266,305,445 Total asset Jumlah liabilitas 151,599,937 16,892,788 12,948,364 21,606,279 7,533,524 16,045,904 2,727,653 229,354,449 Total liabilities Jakarta/ Jakarta 8,149,420 Jawa Barat/ West Java 665,846 Jawa Tengah/ Central Java 648,166 Jawa Timur/ East Java 853,974 2016 Indonesia Timur/ East Indonesia 348,640 Sumatera/ Sumatera 766,616 Anak Perusahaan/ Subsidiaries 661,368 (3,066,111) 1,673,007 789,115 (2,564,851) (2,910,986) (12,902) 2,056,692 (136,195) 84,486 18,479 (172,667) (151,556) (9,037) 299,356 (423,654) 53,393 16,808 (164,989) (117,041) (427) 12,256 (402,962) 71,345 3,803 (194,521) (156,916) (309) 174,414 (216,301) 31,590 8,429 (110,665) (89,380) (639) (28,326) (322,925) 64,914 9,102 (181,540) (157,742) (345) 178,080 (404,803) 134,625 106,318 (257,686) (175,914) (2,786) 61,122 (4,972,951) 2,113,360 952,054 (3,646,919) (3,759,535) (26,445) 2,753,594 Net interest income Impairment losses on financial and non-financial assets - net Other fees and commissions Other operating income Personnel expenses General and administrative Other operating expenses Net operating income/(loss) 47,008 2,103,700 748 300,104 1,074 13,330 226 174,640 369 (27,957) 786 178,866 46,903 108,025 97,114 2,850,708 Non-operating income - net Income/(loss) before income tax Penghasilan bunga bersih Kerugian penurunan nilai atas aset keuangan dan nonkeuangan - bersih Provisi dan komisi lainnya Pendapatan operasional lainnya Beban tenaga kerja Umum dan administrasi Beban operasional lainnya Laba/(rugi) operasional bersih Pendapatan bukan operasional - bersih Laba/(rugi) sebelum pajak penghasilan Beban pajak penghasilan Laba/(rugi) bersih (703,456) 1,400,244 Kepentingan nonpengendali (30) 300,104 - Jumlah/ Total 12,094,030 - - - - (65,535) (768,991) Income tax expense 13,330 174,640 (27,957) 178,866 42,490 2,081,717 Net income/(loss) (30) Non-controlling interest Jumlah aset 163,690,670 16,733,490 11,910,598 - 19,505,068 - 6,932,249 - 16,082,738 - 6,716,915 - 241,571,728 Total asset Jumlah liabilitas 132,549,885 16,745,891 11,392,604 18,839,291 6,947,097 15,318,611 5,570,727 207,364,106 Total liabilities Halaman – 5/179– Page Annual Report CIMB NIAGA 2017 839
  840. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 51. INFORMASI SEGMEN USAHA (lanjutan) 51. OPERATING SEGMENTS INFORMATION (continued) Segmen geografis (lanjutan) Geographical segment (continued) Informasi yang berkaitan dengan segmen berdasarkan geografis dari Bank CIMB Niaga dan Entitas Anak disajikan dalam tabel di bawah ini (lanjutan): Information concerning the geographical segments of Bank CIMB Niaga and Subsidiary is presented in the table below (continued): Jakarta/ Jakarta 7,627,870 (4,052,683) (306,262) (260,095) (174,481) 1,197,047 371,187 (3,044,995) (2,608,259) (1,957) (511,790) 80,580 21,398 (179,145) (154,721) (692) 115,581 64,121 22,502 (168,611) (120,831) (176) 174,982 (Beban)/pendapatan bukan operasional - bersih Laba/(rugi) sebelum pajak penghasilan (69,010) (580,800) (222) 115,359 1,733 176,715 Beban pajak penghasilan (172,470) - Laba/(rugi) bersih (753,270) Penghasilan bunga bersih Kerugian penurunan nilai atas aset keuangan dan nonkeuangan - bersih Provisi dan komisi lainnya Pendapatan operasional lainnya Beban tenaga kerja Umum dan administrasi Beban operasional lainnya Laba/(rugi) operasional bersih Kepentingan nonpengendali (54) 115,359 - Jawa Tengah/ Central Java 638,072 Jawa Timur/ East Java 873,095 2015 Indonesia Timur/ East Indonesia 367,751 Jawa Barat/ West Java 654,423 Sumatera/ Sumatera 796,238 Anak Perusahaan/ Subsidiaries 428,911 Jumlah/ Total 11,386,360 (101,267) (286,658) (162,011) (5,343,457) Net interest income Impairment losses on financial and non-financial assets - net 79,324 9,208 (195,488) (156,182) (2,853) 432,623 34,301 6,564 (100,825) (94,197) (141) 112,186 67,105 14,037 (181,875) (166,909) (437) 241,501 195,618 168,726 (285,157) (219,507) 126,580 1,718,096 613,622 (4,156,096) (3,520,606) (6,256) 691,663 Other fees and commissions Other operating income Personnel expenses General and administrative Other operating expenses Net operating income/(loss) 357 432,980 206 112,392 175 241,676 (54,898) 71,682 (121,659) 570,004 Non-operating (expenses)/income - net Income/(loss) before income tax - - - - 30,351 (142,119) Income tax expense 176,715 432,980 112,392 241,676 102,033 427,885 Net income/(loss) (54) Non-controlling interest Jumlah aset 160,336,525 16,209,177 12,005,726 - 19,849,852 - 7,339,280 15,380,702 7,727,990 238,849,252 Total asset Jumlah liabilitas 133,739,942 16,404,241 11,711,427 19,456,601 7,271,574 14,963,059 6,623,021 210,169,865 Total liabilities 52. MANAJEMEN RISIKO - - - 52. RISK MANAGEMENT Bank CIMB Niaga telah mengimplementasikan prosedur Manajemen Risiko sesuai dengan POJK No.18/POJK.03/2016 tentang Penerapan Manajemen Risiko bagi Bank Umum dan Surat Edaran OJK No.34/SEOJK.03/2016 tentang Penerapan Manajemen Risiko bagi Bank Umum tanggal 1 September 2016, serta POJK No.38/POJK.03/2017 tanggal 12 Juli 2017 tentang Penerapan Manajemen Risiko Secara Konsolidasi Bagi Bank yang Melakukan Pengendalian Terhadap Perusahaan Anak. Bank CIMB Niaga has implemented Risk Management procedure in accordance with FSA regulation No.18/POJK.03/2016 concerning Application of Risk Management for Commercial Banks, and FSA Circular Letter No.34/SEOJK.03/2016 concerning Application of Risk Management for Commercial Banks dated 1 September 2016, also FSA regulation No.38/POJK.03/2017 dated 12 July 2017 regarding Consolidated Risk Management Implementation for Bank with Controlled Subsidiaries. Menurut surat edaran tersebut, penerapan manajemen risiko harus dilakukan tidak hanya pada risiko kredit, risiko pasar maupun risiko operasional, namun juga untuk risiko likuiditas, risiko hukum, risiko reputasi, risiko strategis, dan risiko kepatuhan. As stipulated in the decrees, processes for application of risk management shall be implemented not only for credit risk, market risk and operational risk, but also for liquidity risk, legal risk, reputation risk, strategic risk, and compliance risk. Pengungkapan mengenai risiko kredit, risiko tingkat suku bunga, risiko mata uang, risiko likuiditas, dan risiko operasional telah diungkapkan dalam catatan tersendiri (lihat Catatan 53, 54, 55, 56, dan 57). Disclosure of credit risk, interest rate risk, currency risk, liquidity risk, and operational risk has been disclosed in separate notes (refer to Notes 53, 54, 55, 56, and 57). Halaman – 5/180– Page 840 Annual Report CIMB NIAGA 2017
  841. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 52. MANAJEMEN RISIKO (lanjutan) a. b. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 52. RISK MANAGEMENT (continued) Risiko Hukum a. Legal Risk Risiko hukum adalah risiko yang disebabkan oleh adanya kelemahan aspek yuridis, antara lain yang disebabkan adanya tuntutan hukum, ketiadaan peraturan perundang-undangan yang mendukung aktivitas atau produk Bank CIMB Niaga, atau kelemahan perikatan seperti tidak dipenuhinya syarat sahnya kontrak dan pengikatan agunan yang tidak sempurna. Legal risk is the risk arising from weaknesses in judicial aspect, amongst others are caused by legal claims, unavailability of law and regulations which supports Bank CIMB Niaga’s products and activities, or weaknesses in legal documentation such as unavailability of binding contract and complete collateral agreements. Berikut adalah faktor-faktor yang mempengaruhi risiko hukum: karakter nasabah yang negatif, kurangnya pemahaman atas produk yang dijual kepada nasabah, dokumen legal yang lemah, konflik dengan nasabah atau pihak lain yang tidak diselesaikan dengan baik, dan keluhan nasabah yang tidak diselesaikan dengan memuaskan. The following are factors which affect the legal risk: customers’ negative character, lack of understanding of product sold to customers, weak legal documentation, unresolved conflict with customers or other parties, and unresolved customer complaints. Guna menghindari kemungkinan litigasi atau gugatan hukum, unit legal dan unit bisnis terkait bertugas untuk menyelesaikan masalah-masalah hukum yang terjadi dengan mengelola setiap events yang terkait dengan hukum secara tepat, termasuk potensi kerugiannya. To prevent any possibility of litigation and legal cases, the legal group and business group are responsible to ensure all the legal cases are settled well through managing the legal events properly including provision on any potential loss that is incurred. Bank CIMB Niaga melakukan manajemen risiko hukum dengan melakukan penanganan proses hukum secara profesional dan jika diperlukan membuat pencadangan potensi biaya kerugian. Bank CIMB Niaga manages the legal risk through professional legal case handling and if needed prepares provision for legal case expenses. Risiko Strategis b. Strategic Risk Risiko strategis adalah risiko yang antara lain disebabkan adanya penetapan dan pelaksanaan strategi Bank CIMB Niaga dan pengambilan keputusan bisnis yang tidak tepat atau kurang responsifnya Bank CIMB Niaga terhadap perubahan eksternal. Berikut adalah faktor-faktor yang mempengaruhi risiko strategis: visi dan misi Bank CIMB Niaga, rencana strategis, perubahan kepemilikan, dan peluncuran produk baru. Strategic risk is the risk which is caused by the determination and implementation of Bank CIMB Niaga’s strategy and inaccurate decision making or Bank CIMB Niaga’s unawareness to the external factor changes. Factors which affect the strategic risk are: Bank CIMB Niaga’s vision and mission, strategic plan, change of ownership, and launch of new products. Pelaksanaan strategi, visi, dan misi Bank CIMB Niaga yang tidak tepat serta pengambilan keputusan bisnis yang tidak sejalan dengan perubahan eksternal dapat mempengaruhi kelangsungan bisnis Bank CIMB Niaga. Improper strategy, vision, and mission implementation of Bank CIMB Niaga as well as business decisions that are not inline with external changes has an impact on Bank CIMB Niaga’s business going concern. Dalam kaitannya dengan hal tersebut di atas, Bank CIMB Niaga telah membentuk, merumuskan, menyusun, dan memantau pelaksanaan strategi termasuk corporate plan dan business plan. In relation with the risk as stated above, Bank CIMB Niaga has established, formulated, developed, and monitored this strategy implementation including corporate plan and business plan. Halaman – 5/181– Page Annual Report CIMB NIAGA 2017 841
  842. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 52. MANAJEMEN RISIKO (lanjutan) b. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 52. RISK MANAGEMENT (continued) Risiko Strategis (lanjutan) b. Strategic Risk (continued) Selain itu Bank CIMB Niaga menetapkan sejumlah indikator penting yang disesuaikan dengan kecukupan aset, permodalan, dan kondisi perubahan pasar agar bisnis Bank CIMB Niaga tetap tumbuh dan terus meningkatkan kepercayaan bagi para stakeholder dan shareholder. c. d. Risiko Reputasi In addition, Bank CIMB Niaga has decided several major indicators that are adjusted with the adequacy of assets, capital, and market sensitivity conditions in order to maintain Bank CIMB Niaga’s growth and continuously develop trust of stakeholders and shareholders. c. Reputation Risk Risiko reputasi adalah risiko yang antara lain disebabkan oleh adanya publikasi negatif yang terkait dengan kegiatan usaha Bank CIMB Niaga atau persepsi negatif terhadap Bank CIMB Niaga. Faktorfaktor yang mempengaruhi risiko reputasi antara lain: citra (image), harga saham, dan konflik internal. Reputation risk is the risk which is caused by negative publicity related with Bank CIMB Niaga’s activities or negative perception on Bank CIMB Niaga. Factors which influence reputation risk are image, share price, and internal conflict. Bank CIMB Niaga melakukan manajemen risiko reputasi dengan melakukan aktivitas public relation, CSR (Corporate Social Responsibility), respon yang cepat terhadap keluhan nasabah, dan penerapan Good Corporate Governance yang konsisten. Bank CIMB Niaga manages reputation risk by performing public relation activities, CSR (Corporate Social Responsibility), quick response to customers’ complaints, and consistent implementation of Good Corporate Governance. Bank CIMB Niaga juga telah membentuk Marketing and Communication Committee, sebuah Komite Eksekutif, yang antara lain bertanggung jawab atas pemberian arahan yang jelas dalam pengelolaan merek Bank CIMB Niaga termasuk strategi, value proposition, dan positioning. Bank CIMB Niaga has also set up Marketing and Communication Committee, an Executive Committee, which is responsible for providing strategic direction and guidance on Bank CIMB Niaga brand, including strategy, value proposition, and positioning. Pengelolaan risiko reputasi dilakukan dengan memantau publikasi negatif dari media cetak baik surat pembaca maupun artikel termasuk di dalamnya keluhan nasabah. Hal yang sama dilakukan untuk keluhan nasabah yang melalui call center. Reputation risk management is performed through monitoring negative reports from reader’s letters and articles in media that includes customer’s complaints. The same thing is also applied for customer complaints via call center. Risiko Kepatuhan d. Compliance Risk Risiko kepatuhan adalah risiko yang terjadi karena Bank CIMB Niaga tidak mematuhi atau tidak melaksanakan ketentuan internal dan peraturan perundang-undangan. Pada prakteknya, risiko kepatuhan melekat pada risiko Bank CIMB Niaga yang terkait pada peraturan perundang-undangan, ketentuan kehati-hatian, dan ketentuan lain yang berlaku, seperti: Compliance risk is the risk that Bank CIMB Niaga does not comply or implement internal policies and laws and regulations. In practice, compliance risk is embeded in with Bank CIMB Niaga’s risks relating to laws and regulations, prudential requirements, and other regulations such as: Halaman – 5/182– Page 842 Annual Report CIMB NIAGA 2017
  843. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 52. MANAJEMEN RISIKO (lanjutan) d. 52. RISK MANAGEMENT (continued) Risiko Kepatuhan (lanjutan)     NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) d. Compliance Risk (continued) Risiko kredit terkait dengan ketentuan Kewajiban Pemenuhan Modal Minimum (KPMM), Kualitas Aset Produktif, Pembentukan Penyisihan Aset Produktif (PPAP), dan Batas Maksimum Pemberian Kredit (BMPK); Risiko pasar terkait dengan ketentuan Posisi Devisa Neto (PDN); Risiko strategis terkait dengan ketentuan Rencana Kerja Anggaran Tahunan (RKAT) Bank CIMB Niaga; dan Risiko lain yang terkait dengan ketentuan eksternal dan internal.  Credit risk related with Capital Adequacy Ratio (CAR), Quality of Earning Assets, Allowance for Possible Losses, and Legal Lending Limit (LLL);  Market risk related with Net Open Position (NOP) regulation; Strategic risk related with Bank CIMB Niaga’s Annual Business Plan; and   Other risks related with external and internal regulations. Faktor-faktor yang mempengaruhi risiko kepatuhan adalah: perubahan peraturan eksternal, komunikasi internal, budaya disiplin karyawan, dan infrastruktur. Factors which affect compliance risk are: external regulation changes, internal communication, employees discipline culture, and infrastructure. Dalam mengelola manajemen risiko kepatuhan, Bank CIMB Niaga melakukan peningkatan budaya kepatuhan yang terus menerus dilakukan melalui program kepatuhan yaitu: In managing compliance risk, Bank CIMB Niaga makes continuous improvement for compliance culture through the compliance program:       Pembaharuan dan dokumentasi database kepatuhan; Sosialisasi/pelatihan kepatuhan melalui regulation update, compliance news, e-learning, dan onclass training; Uji kepatuhan terhadap produk baru, kebijakan baru, dan aktivitas bank; Monitor pelaksanaan kepatuhan melalui compliance matrix dan pembentukan Designated Compliance Officer (DCO); Penerapan anti pencucian uang dan pencegahan pendanaan teroris; dan Pelaporan kepatuhan. Rasio-rasio utama yang dipersyaratkan oleh Peraturan Bank Indonesia yaitu GWM, LFR, BMPK, NPL, PDN dan KPMM telah dipenuhi oleh Bank CIMB Niaga (Lihat Catatan 5, 12, 55, dan 59).  Updating and documenting compliance database;  Compliance socialisation/training through regulation update, compliance news, e-learning, and on-class training; Test of compliance on new products, new policies, and bank activities; Monitoring the compliance realisation through compliance matrix and establishing Designated Compliance Officer (DCO); Implementation of anti money laundering and preventive terrorism funding; and Compliance reporting.     The main ratios required by Bank Indonesia regulation which are the Minimum Statutory Reserves, LFR, LLL, NPL, NOP and CAR have been fulfilled by Bank CIMB Niaga (refer to Notes 5, 12, 55, and 59). Halaman – 5/183– Page Annual Report CIMB NIAGA 2017 843
  844. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 52. MANAJEMEN RISIKO (lanjutan) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 52. RISK MANAGEMENT (continued) e. Nilai wajar aset dan liabilitas keuangan e. Fair value of financial assets and liabilities Pada tanggal 31 Desember 2017, 2016, dan 2015, nilai wajar dari aset dan liabilitas keuangan Bank CIMB Niaga dan Entitas Anak adalah: Nilai tercatat/ Carrying value As at 31 December 2017, 2016, and 2015, the fair value of the Bank CIMB Niaga and Subsidiary’s financial assets and liabilities are as follows: 2017 Nilai wajar/ Fair value *) Aset Giro pada Bank Indonesia Giro pada bank lain Penempatan pada bank lain dan Bank Indonesia Efek-efek Obligasi Pemerintah Tagihan derivatif Kredit yang diberikan, piutang pembiayaan konsumen, dan piutang sewa pembiayaan Modal Kerja Investasi Konsumsi Tagihan akseptasi Penyertaan Pendapatan yang masih harus diterima Aset lain-lain Liabilitas Liabilitas segera Simpanan dari nasabah Simpanan dari bank lain Efek-efek yang dijual dengan janji dibeli kembali Liabilitas derivatif Liabilitas akseptasi Efek-efek yang diterbitkan Pinjaman yang diterima Beban yang masih harus dibayar dan liabilitas lain-lain Pinjaman subordinasi *) 11,522,696 3,574,267 11,522,696 3,574,267 13,314,199 13,442,054 24,971,486 280,293 13,314,199 13,251,117 25,239,698 280,293 95,314,863 38,674,622 43,829,217 177,818,702 92,153,306 37,603,255 43,882,348 173,638,909 4,184,965 3,659 1,191,635 1,286,743 251,590,699 4,184,965 3,659 1,191,635 1,286,743 247,488,181 1,946,166 189,317,196 6,884,335 1,946,166 189,317,196 6,884,335 9,378,703 110,823 4,184,965 5,403,613 5,809,723 9,378,703 110,823 4,184,965 5,473,878 5,809,723 738,990 1,596,772 225,371,286 738,990 1,709,984 225,554,763 Setelah dikurangkan Cadangan kerugian penurunan nilai Assets Current accounts with Bank Indonesia Current accounts with other banks Placements with other banks and Bank Indonesia Marketable securities Government Bonds Derivative receivables Loans, consumer financing receivables, and financing lease receivables Working capital Investment Consumer Acceptance receivables Investments Accrued income Other assets Liabilities Obligation due immediately Deposits from customers Deposits from other banks Securities sold under repurchase agreement Derivative payables Acceptance payables Marketable securities issued Borrowings Accruals and other liabilities Subordinated loans Net of Allowances for impairment losses Halaman – 5/184– Page 844 *) Annual Report CIMB NIAGA 2017 *)
  845. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 52. MANAJEMEN RISIKO (lanjutan) e. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 52. RISK MANAGEMENT (continued) Nilai wajar aset dan liabilitas keuangan (lanjutan) e. Fair value of financial assets and liabilities (continued) Pada tanggal 31 Desember 2017, 2016, dan 2015, nilai wajar dari aset dan liabilitas keuangan Bank CIMB Niaga dan Entitas Anak adalah (lanjutan): As at 31 December 2017, 2016, and 2015, the fair value of the Bank CIMB Niaga and Subsidiary’s financial assets and liabilities are as follows (continued): 2016 Nilai tercatat/ Carrying value Aset *) Giro pada Bank Indonesia Giro pada bank lain Penempatan pada bank lain dan Bank Indonesia Efek-efek Obligasi Pemerintah Efek-efek yang dibeli dengan janji dijual kembali Tagihan derivatif Kredit yang diberikan, piutang pembiayaan konsumen, dan piutang sewa pembiayaan Modal Kerja Investasi Konsumsi Tagihan akseptasi Penyertaan Pendapatan yang masih harus diterima Aset lain-lain Liabilitas Liabilitas segera Simpanan dari nasabah Simpanan dari bank lain Efek-efek yang dijual dengan janji dibeli kembali Liabilitas derivatif Liabilitas akseptasi Efek-efek yang diterbitkan Pinjaman yang diterima Beban yang masih harus dibayar dan liabilitas lain-lain Pinjaman subordinasi *) Nilai wajar/ Fair value 13,345,736 1,624,152 13,345,736 1,624,152 4,424,305 9,344,227 18,184,132 4,424,305 9,378,618 18,050,128 542,956 484,602 542,956 484,602 82,437,632 45,413,375 44,184,333 172,035,340 81,826,768 45,174,917 45,177,422 172,179,107 4,488,511 3,574 1,320,932 1,907,626 227,706,093 4,488,511 3,574 1,320,932 1,907,626 227,750,247 1,954,804 180,571,134 4,557,473 1,954,804 180,571,134 4,557,473 169,634 362,917 4,077,182 3,237,704 5,436,073 169,634 362,917 4,077,182 3,225,928 5,436,073 804,200 2,979,566 204,150,687 804,200 3,097,563 204,256,908 Setelah dikurangkan Cadangan kerugian penurunan nilai Assets Current accounts with Bank Indonesia Current accounts with other banks Placements with other banks and Bank Indonesia Marketable securities Government Bonds Securities purchased under resale agreements Derivative receivables Loans, consumer financing receivables, and financing lease receivables Working capital Investment Consumer *) Acceptance receivables Investments Accrued income Other assets Liabilities Obligation due immediately Deposits from customers Deposits from other banks Securities sold under repurchase agreement Derivative payables Acceptance payables Marketable securities issued Borrowings Accruals and other liabilities Subordinated loans Net of Allowances for impairment losses *) Halaman – 5/185– Page Annual Report CIMB NIAGA 2017 845
  846. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 52. MANAJEMEN RISIKO (lanjutan) e. 52. RISK MANAGEMENT (continued) Nilai wajar aset dan liabilitas keuangan (lanjutan) e. Fair value of financial assets and liabilities (continued) Pada tanggal 31 Desember 2017, 2016, dan 2015, nilai wajar dari aset dan liabilitas keuangan Bank CIMB Niaga dan Entitas Anak adalah (lanjutan): Nilai tercatat/ Carrying value Aset *) Giro pada Bank Indonesia Giro pada bank lain Penempatan pada bank lain dan Bank Indonesia Efek-efek Obligasi Pemerintah Efek-efek yang dibeli dengan janji dijual kembali Tagihan derivatif Kredit yang diberikan, piutang pembiayaan konsumen, dan piutang sewa pembiayaan tagihan anjak piutang Modal Kerja Investasi Konsumsi Tagihan akseptasi Penyertaan Pendapatan bunga yang masih akan diterima Aset lain-lain Liabilitas Liabilitas segera Simpanan dari nasabah Simpanan dari bank lain Efek-efek yang dijual dengan janji dibeli kembali Liabilitas derivatif Liabilitas akseptasi Efek-efek yang diterbitkan Pinjaman yang diterima Beban yang masih harus dibayar dan liabilitas lain-lain Pinjaman subordinasi *) 846 Setelah dikurangkan Cadangan kerugian penurunan nilai As at 31 December 2017, 2016, and 2015, the fair value of the Bank CIMB Niaga and Subsidiary’s financial assets and liabilities are as follows (continued): 2015 Nilai wajar/ Fair value 14,605,403 2,348,027 14,605,403 2,348,027 5,883,668 9,821,623 16,049,893 5,883,668 9,816,919 15,862,298 174,552 595,554 174,552 595,554 83,733,239 42,856,639 43,526,643 170,116,521 83,636,638 42,761,566 44,726,265 171,124,469 4,251,849 13,048 1,383,890 1,253,694 226,497,722 4,251,849 13,048 1,383,890 1,253,694 227,313,371 786,132 178,533,077 5,654,410 786,132 178,533,077 5,654,410 1,996,167 888,704 4,190,087 4,476,921 6,684,630 1,996,167 888,704 4,190,087 4,420,952 6,684,630 904,088 2,969,774 207,083,990 904,088 2,952,926 207,011,173 Halaman – 5/186– Page Assets Current accounts with Bank Indonesia Current accounts with other banks Placements with other banks and Bank Indonesia Marketable securities Government Bonds Securities purchased under resale agreements Derivative receivables Loans, consumer financing receivables, and financing lease receivables receivables Working capital Investment Consumer *) Acceptance receivables Investments Accrued interest income Other assets Liabilities Obligation due immediately Deposits from customers Deposits from other banks Securities sold under repurchase agreement Derivative payables Acceptance payables Marketable securities issued Borrowings Accruals and other liabilities Subordinated loans Net of Allowances for impairment losses Annual Report CIMB NIAGA 2017 *)
  847. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 52. MANAJEMEN RISIKO (lanjutan) e. 52. RISK MANAGEMENT (continued) Nilai wajar aset dan liabilitas keuangan (lanjutan) (i) (ii) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) e. Fair value of financial assets and liabilities (continued) Giro pada Bank Indonesia, giro pada bank lain, tagihan akseptasi, penyertaan, pendapatan yang masih harus diterima, dan aset lain-lain (i) Current accounts with Bank Indonesia, current accounts with other banks, acceptance receivables, investments, accrued income, and other assets Nilai tercatat dari giro pada Bank Indonesia dan bank lain dengan suku bunga mengambang adalah perkiraan yang layak atas nilai wajar. The carrying amount of floating rate current accounts with Bank Indonesia and other banks is a reasonable approximation of fair value. Estimasi nilai wajar terhadap tagihan akseptasi, penyertaan, pendapatan yang masih harus diterima, dan aset lain-lain ditetapkan berdasarkan diskonto arus kas dengan menggunakan suku bunga pasar uang yang berlaku untuk hutang dengan risiko kredit dan sisa jatuh tempo yang serupa. Karena sisa jatuh tempo di bawah 1 (satu) tahun sehingga nilai tercatat dari tagihan akseptasi, pendapatan yang masih harus diterima, dan aset lain-lain adalah perkiraan yang layak atas nilai wajar. The estimated fair value of acceptance receivables, investments, accrued income, and other assets is based on discounted cash flows using prevailing money market interest rates for debts with similar credit risk and remaining maturity. Since the maturity is below 1 (one) year, the carrying amount of acceptance receivables, accrued income, and other assets is a reasonable approximation of fair value. Penempatan pada bank lain dan Bank Indonesia (ii) Placements with other banks and Bank Indonesia Penempatan pada bank lain dan Bank Indonesia merupakan penanaman dana dalam bentuk Fasilitas Simpanan Bank Indonesia (FASBI), FASBI Syariah, call money, penempatan “fixed-term”, deposito berjangka, dan lain-lain. Placements with other banks and Bank Indonesia represent placements in the form of Bank Indonesia Deposit Facility (FASBI), Sharia Bank Indonesia Deposit Facility (FASBI), call money, “fixed-term” placements, time deposits, and others. Nilai tercatat dari penempatan dan simpanan overnight dengan suku bunga mengambang adalah perkiraan yang layak atas nilai wajar. The carrying amount of floating rate placements and overnight deposits is a reasonable approximation of fair value. Estimasi nilai wajar terhadap penempatan dengan suku bunga tetap ditetapkan berdasarkan diskonto arus kas dengan menggunakan suku bunga pasar uang yang berlaku untuk hutang dengan risiko kredit dan sisa jatuh tempo yang serupa (level 2 - hirarki nilai wajar). The estimated fair value of fixed interest bearing deposits is based on discounted cash flows using prevailing money market interest rates for debts with similar credit risk and remaining maturity (level 2 - fair value hierarchy). Halaman – 5/187– Page Annual Report CIMB NIAGA 2017 847
  848. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 52. MANAJEMEN RISIKO (lanjutan) 52. RISK MANAGEMENT (continued) e. Nilai wajar aset dan liabilitas keuangan (lanjutan) e. Fair value of financial assets and liabilities (continued) (iii) Tagihan dan liabilitas derivatif, Efek-efek, dan Obligasi (iii) Nilai wajar untuk tagihan dan liabilitas derivatif mencerminkan diskonto dari estimasi kini dari arus kas masa depan yang diharapkan akan diterima atau dibayarkan hingga jatuh tempo. Arus kas yang diharapkan didiskontokan pada tingkat suku bunga pasar terkini untuk menentukan nilai wajar (tingkat 2 – hirarki nilai wajar). Nilai wajar untuk efek-efek ditetapkan berdasarkan data dari IBPA (Indonesia Bond Pricing Agency) dimana dihitung dengan model diskonto arus kas dengan kurva yield (diambil dari data pasar) terkini yang sesuai dengan sisa periode jatuh temponya (tingkat 2 – hirarki nilai wajar). Nilai wajar untuk obligasi pemerintah ditetapkan berdasarkan harga pasar kuotasi dari Bloomberg (tingkat 1 –hirarki nilai wajar). (iv) Efek-efek yang dibeli dengan janji dijual kembali The fair value for derivative receivables and payables represents discounted amount of estimated future cash flows expected to be received or to be paid until maturity. Expected cash flows are discounted at current market rates to determine fair value (level 2 - fair value hierarchy). The fair value for marketable securities are based on data from IBPA (Indonesia Bond Pricing Agency) which is calculated using discounted cash flow model based on current yield curve (derived from market data) appropriated with remaining term of maturity (level 2 – fair value hierarchy). The fair value for government bonds are based on quoted market prices from Bloomberg (level 1 – fair value hierarchy). (iv) Securities purchased under resale agreements Estimasi nilai wajar terhadap efek-efek yang dibeli dengan janji dijual kembali ditetapkan berdasarkan diskonto arus kas dengan menggunakan suku bunga pasar uang yang berlaku untuk hutang dengan risiko kredit dan sisa jatuh tempo yang serupa. Karena sisa jatuh tempo di bawah 1 (satu) tahun sehingga nilai tercatat dari efek-efek yang dibeli dengan janji dijual kembali adalah perkiraan yang layak atas nilai wajar (level 2 - hirarki nilai wajar). (v) Kredit yang diberikan, piutang pembiayaan konsumen, dan piutang sewa pembiayaan Kredit yang diberikan, piutang pembiayaan konsumen, dan piutang sewa pembiayaan dinyatakan berdasarkan jumlah nilai tercatat setelah dikurangi oleh beban penurunan nilai. Estimasi nilai wajar mencerminkan jumlah diskonto dari estimasi kini dari arus kas masa depan yang diharapkan akan diterima. Arus kas yang diharapkan didiskontokan pada tingkat suku bunga pasar terkini untuk menentukan nilai wajar (level 3 - hirarki nilai wajar). Derivative receivables and payables, Marketable securities, and Bonds The estimated fair value of securities purchased under resale agreements is based on discounted cash flows using prevailing money market interest rates for debts with similar credit risk and remaining maturity. Since the maturity is below 1 (one) year, the carrying amount of securities purchased under resale agreements is a reasonable approximation of fair value (level 2 - fair value hierarchy). (v) Loans, consumer financing receivables, and financing lease receivables Loans, consumer financing receivables, and financing lease receivables are recorded at carrying amount net of charges for impairment. The estimated fair value represents the discounted amount of estimated future cash flows expected to be received. Expected cash flows are discounted at current market rates to determine fair value (level 3 - fair value hierarchy). Halaman – 5/188– Page 848 Annual Report CIMB NIAGA 2017
  849. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 52. MANAJEMEN RISIKO (lanjutan) 52. RISK MANAGEMENT (continued) e. Nilai wajar aset dan liabilitas keuangan (lanjutan) e. Fair value of financial assets and liabilities (continued) (vi) Estimasi nilai wajar simpanan tanpa jatuh tempo, termasuk simpanan tanpa bunga, adalah sebesar jumlah terhutang ketika hutang tersebut dibayarkan. (vi) The estimated fair value of deposits with no stated maturity, which includes non-interest bearing deposits, is the amount repayable on demand. Liabilitas segera, simpanan dari nasabah, simpanan dari bank lain, liabilitas akseptasi, pinjaman diterima, serta beban yang masih harus dibayar dan liabilitas lain-lain Obligation due immediately, deposits from customers, deposits from other banks, acceptance liabilities, borrowings, and accrual and other liabilities Estimasi nilai wajar terhadap liabilitas segera, simpanan dengan tingkat suku bunga tetap, liabilitas akseptasi, pinjaman yang diterima, beban yang masih harus dibayar, dan liabilitas lain-lain yang tidak memiliki kuotasi di pasar aktif ditetapkan berdasarkan diskonto arus kas dengan menggunakan suku bunga hutang baru dengan sisa jatuh tempo yang serupa (level 2 hirarki nilai wajar). The estimated fair value of obligation due immediately, fixed interest-bearing deposits, acceptance liabilities, borrowings, accrual, and other liabilities not quoted in an active market is based on discounted cash flows using interest rates for new debts with similar remaining maturity (level 2 - fair value hierarchy). (vii) Pinjaman subordinasi (vii) Subordinated loans Nilai wajar obligasi diestimasi menggunakan data dari IBPA (Indonesia Bond Pricing Agency) dimana dihitung dengan model diskonto arus kas dengan kurva yield (diambil dari data pasar) terkini yang sesuai dengan sisa periode jatuh temponya (tingkat 2 – hirarki nilai wajar). (viii) Efek-efek yang diterbitkan The fair value of bonds are estimated by using data from IBPA (Indonesia Bond Pricing Agency) which is calculated using a discounted cash flow model based on current yield curve (derived from market data) appropriated with remaining term of maturity (level 2 – fair value hierarchy). (viii) Marketable securities issued Nilai wajar agregat dihitung berdasarkan harga pasar kuotasi. Jika informasi ini tidak tersedia, model diskonto arus kas digunakan berdasarkan kurva yield terkini (didapat dari lembaga penilai obligasi) yang sesuai dengan sisa periode jatuh temponya (level 2 – hirarki nilai wajar) The aggregate fair values are calculated based on quoted market prices. For those notes where quoted market prices are not available, a discounted cash flow model is used based on a current yield curve (obtained from bonds valuation agency) appropriate with the remaining team of maturity (level 2 – fair value hierarchy) Aset dan liabilitas keuangan yang diukur pada nilai wajar menggunakan hirarki nilai wajar sebagai berikut: Financial assets and liabilities measured at fair value use the following fair value hierarchy of: Halaman – 5/189– Page Annual Report CIMB NIAGA 2017 849
  850. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 52. MANAJEMEN RISIKO (lanjutan) 52. RISK MANAGEMENT (continued) e. Nilai wajar aset dan liabilitas keuangan (lanjutan) e. Fair value of financial assets and liabilities (continued) (viii) Efek-efek yang diterbitkan (lanjutan) (viii) Marketable securities issued (continued) a. Tingkat 1 Harga kuotasian (tidak disesuaikan) dalam pasar aktif untuk aset atau liabilitas yang identik; a. Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities; b. Tingkat 2 Input selain harga kuotasian yang termasuk dalam Tingkat 1 yang dapat diobservasi untuk aset atau liabilitas, baik secara langsung (misalnya harga) maupun tidak langsung (misalnya derivasi harga); dan b. Level 2 Inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either directly (such as prices) or indirectly (such as derived from prices); and c. Tingkat 3 Input untuk aset atau liabilitas yang bukan berdasarkan data pasar yang dapat diobservasi (input yang tidak dapat diobservasi). c. Level 3 Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs). Pada tanggal 31 Desember 2017, 2016, dan 2015, aset dan liabilitas keuangan yang diukur pada nilai wajar menggunakan hirarki nilai wajar adalah: Aset Efek-efek Obligasi Pemerintah Tagihan derivatif Liabilitas Liabilitas derivatif As at 31 December 2017, 2016, and 2015, financial assets and liabilities measured at fair value based on following fair value hierarchy: 2017 Nilai tercatat/ Carrying value Tingkat 1/ Level 1 Tingkat 2/ Level 2 12,174,041 17,334,068 280,293 29,788,402 17,334,068 17,334,068 12,174,041 280,293 12,454,334 - 12,174,041 17,334,068 280,293 29,788,402 110,823 110,823 - 110,823 110,823 110,823 110,823 - Tingkat 3/ Level 3 Nilai wajar/ Fair value Assets Marketable securities Government Bonds Derivative receivables Liabilities Derivative payables Halaman – 5/190– Page 850 Annual Report CIMB NIAGA 2017
  851. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 52. MANAJEMEN RISIKO (lanjutan) 52. RISK MANAGEMENT (continued) e. Nilai wajar aset dan liabilitas keuangan (lanjutan) e. Fair value of financial assets and liabilities (continued) 2016 Aset Efek-efek Obligasi Pemerintah Tagihan derivatif Liabilitas Liabilitas derivatif Aset Efek-efek Obligasi Pemerintah Tagihan derivatif Liabilitas Liabilitas derivatif f. Nilai tercatat/ Carrying value Tingkat 1/ Level 1 Tingkat 2/ Level 2 8,417,593 10,917,037 484,602 19,819,232 10,917,037 10,917,037 8,417,593 484,602 8,902,195 - 8,417,593 10,917,037 484,602 19,819,232 362,917 362,917 - 362,917 362,917 362,917 362,917 - Tingkat 3/ Level 3 Nilai wajar/ Fair value Liabilities Derivative payables 2015 Nilai tercatat/ Carrying value Tingkat 1/ Level 1 Tingkat 2/ Level 2 8,601,113 10,818,025 595,554 20,014,692 10,818,025 10,818,025 8,601,113 595,554 9,196,667 - 8,601,113 10,818,025 595,554 20,014,692 888,704 888,704 - 888,704 888,704 888,704 888,704 Assets Marketable securities Government Bonds Derivative receivables - Manajemen risiko permodalan Tingkat 3/ Level 3 Nilai wajar/ Fair value Assets Marketable securities Government Bonds Derivative receivables Liabilities Derivative payables f. Capital risk management Kebijakan manajemen modal Bank CIMB Niaga adalah untuk mempertahankan posisi modal yang kuat untuk mendukung pertumbuhan bisnis dan mempertahankan investor, deposan, pelanggan, dan kepercayaan pasar. Dalam pengelolaan permodalan, Bank CIMB Niaga mempertimbangkan faktor-faktor seperti: pengembalian modal yang optimal kepada pemegang saham, menjaga keseimbangan antara keuntungan yang lebih tinggi dengan gearing ratio dan keuntungan, serta keamanan yang diberikan oleh posisi modal yang sehat. Bank CIMB Niaga’s capital management objective is to maintain a strong capital position to support business growth and to sustain investors, depositor, customer, and market confidence. In managing its capital, Bank CIMB Niaga considers factors such as: providing optimal capital rate of return to shareholders, maintaining a balance between high return with gearing ratio and the advantages, and safety provided by a sound capital position. Halaman – 5/191– Page Annual Report CIMB NIAGA 2017 851
  852. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 52. MANAJEMEN RISIKO (lanjutan) 52. RISK MANAGEMENT (continued) f. Manajemen risiko permodalan (lanjutan) f. Capital risk management (continued) Bank CIMB Niaga telah memenuhi semua persyaratan modal yang diwajibkan sepanjang tahun. Bank CIMB Niaga has complied with all externally imposed capital requirements throughout the year. Posisi permodalan Bank CIMB Niaga berdasarkan peraturan Bank Indonesia yang berlaku pada tanggal 31 Desember 2017, 2016, dan 2015, diungkapkan pada Catatan 59. Bank CIMB Niaga’s regulatory capital position under the prevailing Bank Indonesia regulation as at 31 December 2017, 2016, and 2015, were disclosed in Note 59. Manajemen menggunakan peraturan rasio permodalan untuk memantau kecukupan modal, sesuai dengan standar industri. Pendekatan Bank Indonesia untuk pengukuran modal tersebut terutama didasarkan pada pemantauan kebutuhan modal yang diwajibkan (diukur sebagai 8% dari aset tertimbang menurut risiko) terhadap modal yang tersedia. Management uses regulatory capital ratios in order to monitor its capital base, in accordance with the industry standards for measuring capital adequacy. Bank Indonesia’s approach in measuring the capital ratio is primarily based on capital regulatory (measured as 8% of risk-weighted assets) towards available capital resources. Profil Risiko Risk Profile Penilaian risiko ditekankan kepada jenis-jenis risiko sebagaimana yang ditetapkan oleh OJK, yaitu Risiko Kredit, Risiko Likuiditas, Risiko Pasar, Risiko Operasional, Risiko Hukum, Risiko Kepatuhan, Risiko Reputasi, dan Risiko Strategis. Untuk mendapatkan profil risiko secara keseluruhan dari semua jenis risiko, Bank CIMB Niaga memberikan bobot risiko untuk setiap jenis risiko sesuai dengan risk appetite yang telah direncanakan/ditetapkan sebelumnya. Berdasarkan laporan yang diserahkan ke OJK, profil risiko Bank CIMB Niaga secara keseluruhan pada tanggal 31 Desember 2017 dapat dikategorikan Moderat Rendah dengan kecenderungan Stabil. Risk assessment is emphasised on types of risks as determined by FSA such as Credit Risk, Liquidity Risk, Market Risk, Operational Risk, Legal Risk, Compliance Risk, Reputation Risk, and Strategic Risk. To obtain the overall risk profiles from all types of risks, Bank CIMB Niaga assigns risk weight for each type of risk in accordance with pre-determined risk appetite. Based on Bank CIMB Niaga’s report to FSA, Bank CIMB Niaga’s overall risk profile as at 31 December 2017 is Low Moderate with Stable trends. 53. RISIKO KREDIT 53. CREDIT RISK Risiko kredit adalah risiko kerugian keuangan yang timbul jika nasabah, klien atau rekanan Bank CIMB Niaga gagal memenuhi liabilitas kontraktualnya kepada Bank CIMB Niaga. Risiko kredit terutama berasal dari kredit yang diberikan kepada sektor konsumen dan komersial, kartu kredit, dan risiko kredit dari credit enhancement, seperti kredit derivatif (credit default swaps), garansi, letters of credit, endorsements, dan akseptasi. Credit risk is the risk of financial loss, if any of Bank CIMB Niaga’s customers, clients or market counterparties fail to fulfill their contractual obligations to Bank CIMB Niaga. Credit risk arises mainly from consumer and commercial loans, credit cards, and also arises from credit enhancement provided, such as credit derivatives (credit default swaps), guarantees, letters of credit, endorsements, and acceptances. Bank CIMB Niaga juga dipengaruhi oleh risiko kredit lainnya yang berasal dari investasi pada efek hutang (Obligasi Pemerintah dan efek-efek) dan eksposur lain yang timbul dari aktivitas perdagangan (eksposur perdagangan). Bank CIMB Niaga is also exposed to other credit risks arising from investments in debt securities (Government Bonds and marketable securities) and other exposures arising from its trading activities (trading exposures). Manajemen melakukan pengelolaan eksposur risiko kredit dengan hati-hati. Manajemen dan pengendalian atas risiko kredit dipusatkan dalam tim manajemen risiko kredit, yang bertanggung jawab kepada Direksi dan pemimpin tiap unit bisnis secara rutin. Management is prudent in managing its exposure to credit risk. The credit risk management and control are centralised in a credit risk management team, which reports to the Board of Directors and head of each business unit regularly. Halaman – 5/192– Page 852 Annual Report CIMB NIAGA 2017
  853. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 53. RISIKO KREDIT (lanjutan) 53. CREDIT RISK (continued) Faktor utama yang berperan dalam pengendalian dan mengurangi risiko kredit adalah kemampuan dan kematangan satuan kerja perkreditan dalam membuat analisa kredit, sehingga pada akhirnya tercapai suatu keseimbangan antara pengelolaan risiko dengan pengembangan bisnis. Bersamaan dengan itu, pengelolaan portofolio dan risiko kredit merupakan tanggung jawab dari Komite Manajemen Risiko. (i) Pengukuran risiko kredit The main factor that controls and reduces credit risk is the ability and maturity of the credit units to analyze the credit, which results in a balance between credit risk and business development consideration. At the same time, portfolio management and credit risk is the responsibility of the Risk Management Committee. (i) Credit risk measurement Estimasi terhadap eksposur kredit adalah proses yang kompleks dan memerlukan penggunaan model, dimana nilai dari suatu produk bervariasi tergantung dengan perubahan pada variabel-variabel pasar, arus kas masa depan, dan rentang waktu. Penilaian risiko kredit atas suatu portofolio aset memerlukan estimasi-estimasi, seperti kemungkinan terjadinya wanprestasi, rasio kerugian, dan korelasi wanprestasi antar rekanan. The estimation of credit exposure is complex and requires the use of models, as the value of a product varies depend on changes in market variables, expected future cash flows, and the passage of time. The credit assessment of asset portfolio entails further estimations such as the likelihood of defaults occurring of the associated loss ratios and of default correlations between counterparties. Bank CIMB Niaga memiliki model untuk mendukung kuantifikasi dari risiko kredit. Model peringkat dan skor ini akan digunakan untuk keseluruhan portofolio kredit utama dan membentuk basis untuk mengukur risiko wanprestasi. Dalam mengukur risiko kredit untuk kredit yang diberikan, Bank CIMB Niaga mempertimbangkan tiga komponen: (i) estimasi kerugian saat debitur atau rekanan tidak dapat memenuhi liabilitasnya; (ii) estimasi tingkat eksposur saat debitur atau rekanan tidak dapat memenuhi liabilitasnya baik pada on-balance sheet maupun off-balance sheet; dan (iii) estimasi kerugian yang harus ditanggung oleh Bank CIMB Niaga atas liabilitas yang telah wanprestasi. Bank CIMB Niaga has the models to support the quantification of credit risk. These rating and scoring models will be used for all key credit portfolios and form the basis for measuring default risks. In measuring credit risk of loans, Bank CIMB Niaga considers three components: (i) loss estimation when debtor or counterparts cannot fulfilled their contractual obligations; (ii) estimation of the exposure when a debtors or counterparts cannot fulfilled their obligations, both at on-balance sheet and off-balance sheet; and (iii) loss estimation on the defaulted obligations which Bank CIMB Niaga should bear. Untuk memantau risiko atas penyaluran kredit, secara rutin Bank CIMB Niaga melakukan analisa terhadap portofolio kredit melalui pendekatan secara statistik berdasarkan segmentasi bisnis dan kualitas kredit dari debitur atau rekanan. Indikator "Peringatan Dini" ditentukan melalui proyeksi dan pemantauan limit. Metode yang digunakan dalam memantau portofolio secara reguler adalah matriks transisi dan Gross Roll Rate Model. To manage and monitor credit risk, Bank CIMB Niaga performs portfolio analysis regularly through statistical method based on portfolio segmentation and credit quality from debtors or counterparts. “Early Warning” indicators are established through forecasting and limit monitoring. Several methods used in regular portfolio monitoring are transition matrix and Gross Roll Rate Model. Penetapan Kebijakan Limit dan pemantauan juga dilakukan secara rutin, antara lain: Batas Maksimum Pemberian Kredit, segmentasi bisnis (kategori debitur), jenis mata uang, dan sektor ekonomi. Bank CIMB Niaga telah menetapkan limit-limit untuk memantau kualitas portofolio kredit ritel, termasuk didalamnya kredit ritel yang diberikan kepada individu, dalam jangka waktu tertentu/cicilan atau berulang dan kredit yang diberikan secara langsung atau tidak langsung kepada debitur. Policy and Limits monitoring is conducted on regular basis including: Legal Lending Limit, business segmentation (category of debtor), type of currency, and economic sectors. Bank CIMB Niaga has set the limits to monitor the quality of retail credit portfolio, covering the types of loans which granted to individuals, within a specific period/installment or revolving and direct or indirect lending to the debtor. Halaman – 5/193– Page Annual Report CIMB NIAGA 2017 853
  854. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 53. RISIKO KREDIT (lanjutan) 53. CREDIT RISK (continued) (ii) Pengendalian batas risiko dan kebijakan mitigasi (ii) Risk limit control and mitigation policies Bank CIMB Niaga mengelola, membatasi, dan mengendalikan konsentrasi risiko kredit dimanapun risiko tersebut teridentifikasi secara khusus, terhadap debitur individu dan kelompok, dan industri serta geografis. Bank CIMB Niaga manages, limits, and controls concentrations of credit risk wherever they are identified in particular, to individual counterparties and groups, and to industries and geographical. Bank CIMB Niaga menentukan tingkat risiko kredit yang dimiliki dengan menetapkan batas jumlah risiko yang bisa diterima yang terkait dengan satu debitur, atau kelompok debitur, dan berdasarkan segmen geografis dan industri. Risiko ini dimonitor dengan basis revolving dan akan ditelaah secara tahunan atau dengan frekuensi yang lebih sering jika diperlukan. Bank CIMB Niaga structures the levels of credit risk and undertakes by placing limits on the amount of risk accepted in relation to one borrower, or groups of borrowers, and to geographical and industry segments. Such risks are monitored on a revolving basis and subject to an annual or more frequent review, when considered necessary. Eksposur pada satu debitur termasuk bank dan perantara (broker) juga dibatasi oleh sublimit yang mencakup eksposur laporan posisi keuangan dan rekening administratif, dan batas risiko pengiriman harian sehubungan dengan unsur yang diperdagangkan seperti kontrak forward untuk nilai tukar mata uang asing. Eksposur aktual terhadap batas yang telah ditetapkan dimonitor secara harian. The exposure to any one borrower including banks and brokers is further restricted by sublimits covering on statement of financial position and administrative accounts, and daily delivery risk limits in relation to trading items such as forward foreign exchange contracts. Actual exposures against limits are monitored daily. Batas pemberian kredit ditelaah mengikuti perubahan pada kondisi pasar dan ekonomi, telaahan kredit secara periodik, dan penilaian atas kemungkinan wanprestasi. Lending limits are reviewed following market changing and economic conditions, periodic credit reviews, and assessments of probability of default. Beberapa pengendalian spesifik lainnya dan pengukuran mitigasi dijelaskan di bawah ini: Some other specific control and mitigation measures are outlined belows: Agunan Collateral Bank CIMB Niaga menerapkan kebijakan untuk memitigasi risiko kredit, antara lain dengan meminta agunan sebagai jaminan pelunasan kredit jika jaminan berupa sumber pembayaran utama debitur berdasarkan arus kas tidak terpenuhi. Jenis agunan yang dapat diterima untuk kredit modal kerja dan investasi dalam rangka memitigasi risiko kredit antara lain adalah: Bank CIMB Niaga employs policies to mitigate credit risk, by asking collateral to secure the repayment of loans if the main source of debtor’s payment is based on its cash flow were not fulfilled. Collateral types that can be used for working capital and investment loans to mitigate the risk are such as: • • • • • • • • • • • Kas (termasuk simpanan dari nasabah); Tanah dan/atau bangunan; Standby LC/Bank Garansi yang diterima Bank CIMB Niaga; Mesin; Kendaraan bermotor; Piutang dagang; Bahan baku / barang dagangan (persediaan); dan Saham atau surat berharga lainnya. • • • • • Cash (including deposits from customers); Land and/or building; Standby LC/Bank Guarantee received by Bank CIMB Niaga; Machinery; Vehicle; Trade receivables; Inventory; and Stock or other marketable securities. Halaman – 5/194– Page 854 Annual Report CIMB NIAGA 2017
  855. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 53. RISIKO KREDIT (lanjutan) 53. CREDIT RISK (continued) (ii) Pengendalian batas risiko dan kebijakan mitigasi (lanjutan) (ii) Risk limit control and mitigation policies (continued) Agunan (lanjutan) Collateral (continued) Pemberian pembiayaan dan kredit jangka panjang kepada entitas korporasi (modal kerja dan investasi) pada umumnya disertai agunan. Untuk meminimalisasi kerugian kredit, Bank CIMB Niaga akan meminta tambahan agunan dari debitur ketika terdapat indikasi penurunan nilai atas kredit yang diberikan. Longer term financing and lending to corporate entities (working capital and investment) are generally secured. In addition, in order to minimise the credit loss, Bank CIMB Niaga will ask additional collateral from the counterparty as soon as impairment indicators are identified for the relevant individual loans. Agunan yang dimiliki sebagai jaminan atas aset keuangan selain untuk kredit yang diberikan ditentukan berdasarkan sifat dari instrumennya. Efek hutang, tresuri, dan tagihan kepada nasabah bank yang memenuhi syarat lainnya pada umumnya tanpa agunan, kecuali untuk asset-backed securities dan instrumen sejenis, yang dijaminkan dengan portofolio instrumen keuangan. Khususnya untuk nasabah korporasi, jaminan yang disyaratkan antara lain dapat berupa margin collateral. Collateral held as security for financial assets other than loans depend on the nature of the instrument. Debt securities, treasury, and other customer’s eligible bills are generally unsecured, except for asset-backed securities and similar instruments, which are secured by portfolios of financial instruments. Particularly for corporate customers, the required collateral can be in form of margin collateral. Jaminan untuk kredit konsumsi adalah aset yang dibiayai yaitu tanah dan/atau bangunan atau kendaraan bermotor. Secara umum, Bank CIMB Niaga mengharuskan rasio agunan terhadap kredit yang diberikan sebesar 125% pada awal kredit. Collateral for consumer loan is financed assets consisted of land and/or building or vehicle. Generally, Bank CIMB Niaga is requiring 125% of collateral ratio to total loans at inceptions. Batas pemberian (untuk derivatif) Lending limits (for derivative) Bank CIMB Niaga menetapkan batas pengendalian yang ketat atas posisi derivatif bersih (yang merupakan selisih antara kontrak pembelian dan penjualan) baik dalam hal jumlah maupun jangka waktu. Jumlah risiko kredit terbatas pada arus kas masuk bersih masa depan atas instrumen, dimana untuk derivatif hanyalah fraksi dari kontrak, atau nilai nosional yang menyatakan volume instrumen tersebut. Eksposur risiko kredit dan potensi eksposur dari pergerakan pasar dikelola sebagai bagian dari keseluruhan batas pemberian kredit kepada nasabah. Agunan dan jaminan lainnya tidak harus selalu didapatkan untuk eksposur instrumen risiko kredit, kecuali jika Bank CIMB Niaga mensyaratkan marjin deposito dari pihak rekanan. Bank CIMB Niaga maintains strict control limits on net open derivative positions (that is, the difference between purchase and sale contracts) in term of amount and term. The amount of credit risk is limited to expected future net cash inflows of instruments, which in relation to derivatives are only a fraction of the contract, or notional values used to express the volume of instruments outstanding. This credit risk exposure is managed as part of the overall lending limits with customers, together with potential exposures from market movements. Collateral or other security is not always obtained for credit risk exposures on these instruments, except where Bank CIMB Niaga requires margin deposits from counterparties. Risiko settlement timbul jika pembayaran dalam bentuk uang tunai, efek atau saham dilakukan dengan harapan akan dapat menerima hak yang setara dengan kas atau efek. Batas penyelesaian harian ditetapkan untuk setiap debitur untuk menutupi jumlah agregat penyelesaian risiko yang berasal dari transaksi pasar harian Bank CIMB Niaga. Settlement risk arises in any situation where a payment in cash, securities or equities is made with an expectation of receiving an equivalent cash or securities. Daily settlement limits are established for each counterparty to cover the aggregate of all settlement risk arising from Bank CIMB Niaga’s market transactions on any single day. Halaman – 5/195– Page Annual Report CIMB NIAGA 2017 855
  856. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 53. RISIKO KREDIT (lanjutan) 53. CREDIT RISK (continued) (ii) Pengendalian batas risiko dan kebijakan mitigasi (lanjutan) (ii) Risk limit control and mitigation policies (continued) Kesepakatan induk untuk menyelesaikan secara neto Master netting arrangements Salah satu cara Bank CIMB Niaga membatasi eksposur kerugian kredit adalah dengan melakukan kesepakatan induk untuk menyelesaikan secara neto (master netting arrangements) dengan pihak counterparty yang memiliki volume transaksi yang signifikan. Secara umum, kesepakatan induk untuk menyelesaikan secara neto tidak selalu mengarah pada saling hapus aset dan liabilitas dalam laporan posisi keuangan konsolidasian, karena transaksi-transaksi tersebut biasanya diselesaikan secara bruto atau pada sebagian besar kesepakatan induk untuk menyelesaikan secara neto saling hapus hanya terjadi dalam hal wanprestasi. Namun risiko kredit atas suatu kontrak akan terminimalisasi dengan kesepakatan induk untuk menyelesaikan secara neto apabila terjadi wanprestasi, dimana seluruh saldo dengan pihak counterparty akan dihapus dan diselesaikan secara neto. Eksposur risiko kredit Bank CIMB Niaga secara keseluruhan atas instrumen derivatif yang terkait dengan kesepakatan induk untuk menyelesaikan secara neto dapat berubah secara substansial dalam periode yang singkat sesuai dengan transaksi yang mempengaruhi kesepakatan tersebut. One of Bank CIMB Niaga’s approach to restrict its exposure to credit losses is by entering into master netting arrangements with counterparties with which it undertakes a significant volume of transactions. Master netting arrangements do not generally result in an off-set of assets and liabilities of the consolidated statements of financial position, as the transactions are either usually settled on a gross basis or under mostly netting agreements, the right of set off is triggered only on default. However the credit risk associated with favourable contracts is reduced by a master netting arrangement to the extent that if a default occurs, all amounts with the counterparty are terminated and settled on a net basis. Bank CIMB Niaga’s overall exposure to credit risk on derivative instruments subject to master netting arrangements can change substantially within a short period, as it is affected by each transaction subject to the arrangement. Batasan-batasan keuangan (komitmen yang terkait dengan kredit dan loan book) Financial terms (for commitments related credit and loan book) Tujuan utama instrumen ini adalah untuk memastikan adanya ketersediaan dana untuk nasabah ketika dibutuhkan. Bank garansi dan standby letter of credit memiliki risiko kredit yang hampir sama dengan kredit yang diberikan. Dokumentasi dan commercial letters of credit yang dibuat oleh Bank CIMB Niaga atas nama nasabah memberikan otorisasi kepada pihak ketiga untuk mencairkan drafts tersebut sampai jumlah yang telah ditetapkan dengan syarat dan ketentuan tertentu dijaminkan pada pengiriman barang terkait sehingga instrumen ini memiliki risiko yang lebih rendah dibandingkan dengan kredit yang diberikan secara langsung. The primary purpose of these instruments is to ensure that funds are available to a customer as needed. Bank guarantees and standby letters of credit almost carry the same credit risk as loans. Documentary and commercial letters of credit which are written by Bank CIMB Niaga on behalf of a customer, authorizing a third party to draw drafts up to a stipulated amount under specific terms and conditions are collateralised by the underlying shipments of goods to which they relate and therefore carrying less risk than a direct loan. Bank CIMB Niaga memonitor jangka waktu jatuh tempo komitmen kredit oleh karena komitmen dengan jangka waktu yang lebih lama pada umumnya memiliki risiko kredit yang lebih besar dibandingkan dengan komitmen yang memiliki jangka waktu yang lebih pendek. Bank CIMB Niaga monitors the term to maturity of credit commitments because longer term commitments generally have a greater degree of credit risk than shorter term commitments. Halaman – 5/196– Page 856 Annual Report CIMB NIAGA 2017
  857. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 53. RISIKO KREDIT (lanjutan) 53. CREDIT RISK (continued) (iii) Penurunan nilai dan kebijakan pencadangan (iii) Impairment and provisioning policies Cadangan kerugian penurunan nilai yang diakui pada pelaporan keuangan hanyalah kerugian yang telah terjadi pada tanggal laporan keuangan konsolidasian atas posisi keuangan (berdasarkan bukti obyektif atas penurunan nilai). Impairment allowances are recognised for financial reporting purposes only for losses that have been incurred at the date of the consolidated statements of financial position (based on objective evidence of impairment). (iv) Eksposur maksimum risiko kredit tanpa memperhitungkan agunan dan pendukung kredit lainnya (iv) Maximum exposure to credit risk without taking into account of any collateral held or other credit enhancements Eksposur risiko kredit terhadap aset pada laporan posisi keuangan konsolidasian – neto sesudah cadangan kerugian penurunan nilai pada tanggal 31 Desember 2017, 2016, dan 2015 adalah: Credit risk exposures relating to consolidated statements of financial position’s assets – net of allowance of possible losses as at 31 December 2017, 2016, and 2015 are as follows: 2017 Giro pada Bank Indonesia Giro pada bank lain Penempatan pada bank lain dan Bank Indonesia Efek-efek Diperdagangkan T ersedia untuk dijual Dimiliki hingga jatuh tempo Obligasi Pemerintah Diperdagangkan T ersedia untuk dijual Dimiliki hingga jatuh tempo Efek yang dibeli dengan janji dijual kembali T agihan derivatif Kredit yang diberikan, piutang pembiayaan konsumen dan piutang sewa pembiayaan Modal kerja Investasi Konsumsi T agihan akseptasi Penyertaan Pendapatan yang masih harus diterima Aset lain-lain 2016 2015 11,522,696 3,574,267 13,345,736 1,624,152 14,605,403 2,348,027 13,314,199 4,424,305 5,883,668 959,059 11,194,702 1,288,293 501,682 7,897,462 945,083 824,814 7,756,306 1,240,503 3,125,982 14,208,086 7,637,418 2,961,686 7,955,351 7,267,095 4,566,706 6,251,319 5,231,868 280,293 542,956 484,602 174,552 595,554 95,314,863 82,437,632 83,733,239 38,674,622 43,829,217 45,413,375 44,184,333 42,856,639 43,526,643 177,818,702 172,035,340 170,116,521 4,184,965 3,659 1,191,635 4,488,511 3,574 1,320,932 4,251,849 13,048 1,383,890 Acceptance receivables Investments Accrued income Other assets 1,286,743 1,907,625 1,253,694 251,590,699 227,706,092 226,497,722 Current accounts with Bank Indonesia Current accounts with other banks Placement with other banks and Bank Indonesia Marketable securities Trading Available-for-sale Held-to-maturity Government Bonds Trading Available-for-sale Held-to-maturity Securities purchased under resale agreement Derivative receivables Loans, consumer financing receivables and financing lease receivables Working capital Investment Consumer Halaman – 5/197– Page Annual Report CIMB NIAGA 2017 857
  858. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 53. RISIKO KREDIT (lanjutan) 53. CREDIT RISK (continued) (iv) Eksposur maksimum risiko kredit tanpa memperhitungkan agunan dan pendukung kredit lainnya (lanjutan) (iv) Maximum exposure to credit risk without taking into account of any collateral held or other credit enhancements (continued) Eksposur risiko kredit terhadap rekening administratif pada tanggal 31 Desember 2017, 2016, and 2015 adalah: Credit risk exposures relating to off-balance sheet items as at 31 December 2017, 2016, and 2015 are as follows: 2017 2016 2015 Fasilitas kredit kepada nasabah yang belum ditarik - committed Modal kerja Investasi Konsumsi Irrevocable letters of credit yang masih berjalan Garansi yang diterbitkan Unused loan facilities granted 11,195,060 1,218,324 95,305 13,502,063 709,389 187,134 9,466,942 338,830 243,110 2,713,810 4,892,293 2,072,238 4,029,469 1,444,412 4,007,392 20,114,792 20,500,293 15,500,686 - committed Working capital Investment Consumer Outstanding irrevocable letters of credit Guarantees issued Tabel di atas menggambarkan eksposur maksimum atas risiko kredit bagi Bank CIMB Niaga dan Entitas Anak pada tanggal 31 Desember 2017, 2016, dan 2015 tanpa memperhitungkan agunan atau pendukung kredit lainnya. Untuk aset neraca, eksposur di atas ditentukan berdasarkan nilai tercatat bersih seperti yang diungkapkan pada laporan posisi keuangan konsolidasian. The table above represents maximum of credit risk exposure to Bank CIMB Niaga and Subsidiary as at 31 December 2017, 2016, and 2015 without taking into account of any collateral held or other credit enhancements attached. For on-balance sheet assets, the exposures set out above are based on net carrying amounts as reported in the consolidated statements of financial position. Seperti yang telah dijelaskan di atas, pada tanggal 31 Desember 2017, 69,33% (2016: 73,02%; 2015: 72,27%) dari jumlah eksposur maksimum berasal dari kredit yang diberikan. As shown above, as at 31 December 2017, 69.33% (2016: 73.02%; 2015: 72.27%) of the total maximum exposure is derived from loans. Manajemen yakin akan kemampuan Bank CIMB Niaga untuk mengendalikan dan memelihara eksposur risiko kredit yang berasal dari kredit yang diberikan berdasarkan hal-hal sebagai berikut: Management is confident in its ability to continue to control and sustain minimal exposure of credit risk to Bank CIMB Niaga resulting from its loan based on the following: • • • • Bank CIMB Niaga telah memiliki pedoman tertulis mengenai kebijakan dan proses kredit yang mencakup seluruh aspek pemberian kredit yang dilakukan. Setiap pemberian kredit harus senantiasa mengacu pada kebijakan tersebut; Bank CIMB Niaga telah memiliki sistem deteksi dini permasalahan melalui ”early warning system” dan pemantauan yang disiplin; Seluruh kredit diberikan dengan agunan kecuali untuk jenis kredit tertentu seperti kartu kredit, personal loan, dan fasilitas antar bank; dan • • Bank CIMB Niaga has a documented credit policy and procedures that covers all aspects of Bank CIMB Niaga’s lending activities. Loan transactions must adhere to the requirements of Bank CIMB Niaga’s policy; Bank CIMB Niaga has early problem detection system through “early warning system” and diciplined monitoring; All loans are secured by collateral, except for certain loans such as credit card, personal loan, and interbank loans; and Halaman – 5/198– Page 858 Annual Report CIMB NIAGA 2017
  859. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 53. RISIKO KREDIT (lanjutan) 53. CREDIT RISK (continued) (iv) Eksposur maksimum risiko kredit tanpa memperhitungkan agunan dan pendukung kredit lainnya (lanjutan) • (iv) Maximum exposure to credit risk without taking into account of any collateral held or other credit enhancements (continued) Pada tanggal 31 Desember 2017, 94,83% (2016: 94,63%; 2015: 94,81%;) dari portfolio kredit yang diberikan dikategorikan sebagai tidak mengalami penurunan nilai. • As at 31 December 2017, 94.83% (2016: 94.63%; 2015: 94.81%;) of the loans is classified as unimpaired. Konsentrasi risiko aset keuangan dengan eksposur risiko kredit Concentration of risks of financial assets with credit risk exposure a) Sektor geografis a) Geographical sectors Tabel berikut menggambarkan rincian eksposur kredit Bank CIMB Niaga dan Entitas Anak pada nilai tercatat (tanpa memperhitungan agunan atau pendukung kredit lainnya), yang dikategorikan berdasarkan area geografis pada tanggal 31 Desember 2017, 2016, dan 2015. Untuk tabel ini, Bank CIMB Niaga dan Entitas Anak telah mengalokasikan eksposur area berdasarkan wilayah geografis tempat mereka beroperasi. The following tables describe Bank CIMB Niaga and Subsidiary’s credit exposure at their carrying amounts (without taking into account of any collateral held or other credit enhancements), as 31 December 2017, 2016, and 2015. For these tables, Bank CIMB Niaga and Subsidiary has allocated exposures to regions based on the geographical area which activities are undertaken. 2017 Jakarta/ Jakarta Giro pada Bank Indonesia Giro pada bank lain Penempatan pada bank lain dan Bank Indonesia Efek-efek Diperdagangkan T ersedia untuk dijual Dimiliki hingga jatuh tempo Obligasi Pemerintah Diperdagangkan T ersedia untuk dijual Dimiliki hingga jatuh tempo T agihan derivatif Kredit yang diberikan, Piutang pembiayaan konsumen, dan Piutang sewa pembiayaan Modal kerja Investasi Konsumsi T agihan akseptasi Penyertaan Pendapatan yang masih harus diterima Aset lain-lain Jawa Barat/ West Java Jawa Tengah/ Central Java Jawa Timur/ East Java Indonesia Timur/ East Indonesia Entitas Sumatera/ Sumatera Anak/ Subsidiary Jumlah/ Total 11,522,696 3,574,267 - - - - - - 11,522,696 3,574,267 13,323,713 - - - - - - 13,323,713 959,059 11,214,982 1,273,774 18,500 5,573 6,881 - 1,841 - 959,059 11,214,982 1,306,569 3,125,982 14,208,086 7,637,418 280,293 - - - - - - 3,125,982 14,208,086 7,637,418 280,293 - 98,183,881 63,234,255 4,070,463 9,108,040 11,612,520 2,767,940 7,390,663 27,959,011 29,942,879 1,656,637 3,196,034 2,442,057 1,252,815 2,820,973 2,599,941 1,654,656 1,553,361 4,774,047 3,369,430 3,259,994 4,464 137,543 - 312,461 - 382,155 - 10,532 - 82,280 - 895,416 1,716,242 194,132,531 49,104 9,128,281 59,021 13,179,967 86,256 17,508,726 21,413 6,007,902 80,425 15,698,686 3,729,691 3,729,691 41,307,381 45,644,151 Current accounts with Bank Indonesia Current accounts with other banks Placements with other banks and Bank Indonesia Marketable securities Trading Available-for-sale Held-to-maturity Government bonds Trading Available-for-sale Held-to-maturity Derivative receivables Loans, consumer financing receivables, and financing lease receivables Working capital Investment Consumer 4,184,965 4,464 Acceptance receivables Investments 1,191,635 1,716,242 259,385,784 Accrued income Other assets Dikurangi: Cadangan kerugian Less: Allowance for (7,795,085) penurunan nilai impairment losses 251,590,699 Halaman – 5/199– Page Annual Report CIMB NIAGA 2017 859
  860. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 53. RISIKO KREDIT (lanjutan) 53. CREDIT RISK (continued) (iv) Eksposur maksimum risiko kredit tanpa memperhitungkan agunan dan pendukung kredit lainnya (lanjutan) (iv) Maximum exposure to credit risk without taking into account of any collateral held or other credit enhancements (continued) Konsentrasi risiko aset keuangan dengan eksposur risiko kredit (lanjutan) Concentration of risks of financial assets with credit risk exposure (continued) a) Sektor geografis (lanjutan) a) Geographical sectors (continued) Tabel berikut menggambarkan rincian eksposur kredit Bank CIMB Niaga dan Entitas Anak pada nilai tercatat (tanpa memperhitungan agunan atau pendukung kredit lainnya), yang dikategorikan berdasarkan area geografis pada tanggal 31 Desember 2017, 2016, dan 2015. Untuk tabel ini, Bank CIMB Niaga dan Entitas Anak telah mengalokasikan eksposur area berdasarkan wilayah geografis tempat mereka beroperasi (lanjutan). The following tables describe Bank CIMB Niaga and Subsidiary’s credit exposure at their carrying amounts (without taking into account of any collateral held or other credit enhancements), as 31 December 2017, 2016, and 2015. For these tables, Bank CIMB Niaga and Subsidiary has allocated exposures to regions based on the geographical area which activities are undertaken (continued). 2016 Jakarta/ Jakarta Giro pada Bank Indonesia Giro pada bank lain Penempatan pada bank lain dan Bank Indonesia Efek-efek Diperdagangkan T ersedia untuk dijual Dimiliki hingga jatuh tempo Obligasi Pemerintah Diperdagangkan T ersedia untuk dijual Dimiliki hingga jatuh tempo Efek yang dibeli dengan janji dijual kembali T agihan derivatif Kredit yang diberikan, Modal kerja Investasi Konsumsi T agihan akseptasi Penyertaan Pendapatan yang masih harus diterima Aset lain-lain Jawa Barat/ West Java Jawa Tengah/ Central Java Jawa Timur/ East Java Indonesia Timur/ East Indonesia Entitas Sumatera/ Sumatera Anak/ Subsidiary Jumlah/ Total 13,345,736 1,624,152 - - - - - - 13,345,736 1,624,152 4,436,233 - - - - - - 4,436,233 501,682 7,915,911 941,687 - 14,111 400 - 6,349 - 501,682 7,915,911 962,547 2,961,686 7,955,351 7,267,095 - - - - - - 2,961,686 7,955,351 7,267,095 542,956 484,602 - - - - - - 542,956 484,602 53,044,662 3,437,763 6,998,968 12,628,570 2,517,902 6,535,266 34,509,492 28,683,680 1,844,676 2,902,321 2,243,281 1,237,582 3,148,727 2,457,065 1,797,502 1,599,763 4,996,549 3,003,922 3,925,745 4,464 106,504 - 144,942 - 263,853 - 989,994 2,337,125 171,472,253 56,037 8,347,301 66,216 10,705,100 89,272 18,587,887 25,113 5,940,280 47,467 94,300 14,683,853 6,576,348 6,576,348 85,163,131 Current accounts with Bank Indonesia Current accounts with other banks Placements with other banks and Bank Indonesia Marketable securities Trading Available-for-sale Held-to-maturity Government bonds Trading Available-for-sale Held-to-maturity Securities purchased under resale agreements Derivative receivables Loans, consumer financing Working capital 48,540,227 46,460,681 Investment Consumer 4,488,511 4,464 Acceptance receivables Investments 1,320,932 2,337,125 236,313,022 Accrued income Other assets Dikurangi: Cadangan kerugian Less: Allowance for (8,606,929) penurunan nilai impairment losses 227,706,093 Halaman – 5/200– Page 860 Annual Report CIMB NIAGA 2017
  861. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 53. RISIKO KREDIT (lanjutan) 53. CREDIT RISK (continued) (iv) Eksposur maksimum risiko kredit tanpa memperhitungkan agunan dan pendukung kredit lainnya (lanjutan) (iv) Maximum exposure to credit risk without taking into account of any collateral held or other credit enhancements (continued) Konsentrasi risiko aset keuangan dengan eksposur risiko kredit (lanjutan) Concentration of risks of financial assets with credit risk exposure (continued) a) Sektor geografis (lanjutan) a) Geographical sectors (continued) Tabel berikut menggambarkan rincian eksposur kredit Bank CIMB Niaga dan Entitas Anak pada nilai tercatat (tanpa memperhitungan agunan atau pendukung kredit lainnya), yang dikategorikan berdasarkan area geografis pada tanggal 31 Desember 2017, 2016, dan 2015. Untuk tabel ini, Bank CIMB Niaga dan Entitas Anak telah mengalokasikan eksposur area berdasarkan wilayah geografis tempat mereka beroperasi (lanjutan). The following tables describe Bank CIMB Niaga and Subsidiary’s credit exposure at their carrying amounts (without taking into account of any collateral held or other credit enhancements), as 31 December 2017, 2016, and 2015. For these tables, Bank CIMB Niaga and Subsidiary has allocated exposures to regions based on the geographical area which activities are undertaken (continued). 2015 Jakarta/ Jakarta Giro pada Bank Indonesia Giro pada bank lain Penempatan pada bank lain dan Bank Indonesia Efek-efek Diperdagangkan T ersedia untuk dijual Dimiliki hingga jatuh tempo Obligasi Pemerintah Diperdagangkan T ersedia untuk dijual Dimiliki hingga jatuh tempo Efek yang dibeli dengan janji dijual kembali T agihan derivatif Kredit yang diberikan, Piutang pembiayaan konsumen, dan Piutang sewa pembiayaan Modal kerja Investasi Konsumsi T agihan akseptasi Penyertaan Pendapatan yang masih harus diterima Aset lain-lain Jawa Barat/ West Java Jawa Tengah/ Central Java 14,605,403 2,347,403 - - 5,898,585 - 824,814 7,776,299 1,237,739 Jawa Timur/ East Java Indonesia Timur/ East Indonesia Entitas Sumatera/ Sumatera - 621 - - - - - 17,121 3,171 4,566,706 6,251,319 5,231,868 - - 174,552 595,554 - - 1 Anak/ Subsidiary Jumlah/ Total - 14,605,403 2,348,027 - - 5,898,585 - - - 824,814 7,776,299 1,258,031 - - - - 4,566,706 6,251,319 5,231,868 - - - - 174,552 595,554 - 87,860,396 2 54,593,492 3,761,541 8,207,175 12,829,850 2,051,310 6,417,028 29,788,299 24,059,598 2,608,296 3,122,003 2,613,228 1,594,010 3,066,087 2,938,487 1,747,685 3,111,787 5,107,690 3,115,412 3,646,944 13,938 75,375 - 159,784 - 283,854 - 2,963 - 82,929 - 987,935 1,683,193 164,283,641 64,340 9,631,555 82,078 12,673,397 109,293 19,230,742 30,373 6,944,739 109,871 14,832,932 6,803,778 6,803,778 44,931,285 44,745,075 Current accounts with Bank Indonesia Current accounts with other banks Placements with other banks and Bank Indonesia Marketable securities Trading Available-for-sale Held-to-maturity Government bonds Trading Available-for-sale Held-to-maturity Securities purchased under resale agreements Derivative receivables Loans, consumer financing receivables, and financing lease receivables Working capital Investment Consumer 4,251,849 13,938 Acceptance receivables Investments 1,383,890 1,683,193 234,400,784 Accrued income Other assets Dikurangi: Cadangan kerugian Less: Allowance for (7,903,062) penurunan nilai impairment losses 226,497,722 Halaman – 5/201– Page Annual Report CIMB NIAGA 2017 861
  862. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 53. RISIKO KREDIT (lanjutan) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 53. CREDIT RISK (continued) (iv) Eksposur maksimum risiko kredit tanpa memperhitungkan agunan dan pendukung kredit lainnya (lanjutan) (iv) Maximum exposure to credit risk without taking into account of any collateral held or other credit enhancements (continued) Konsentrasi risiko aset keuangan dengan eksposur risiko kredit (lanjutan) Concentration of risks of financial assets with credit risk exposure (continued) a) Sektor geografis (lanjutan) a) Geographical sectors (continued) Eksposur risiko kredit atas rekening administratif adalah: Credit risk exposure relating to off-balance sheet items are as follows: 2017 Fasilitas kredit kepada nasabah yang belum ditarik - committed Modal kerja Investasi Konsumsi Irrevocable letters of credit yang masih berjalan Garansi yang diterbitkan Jakarta/ Jawa Barat/ Jawa Tengah/ Jawa Timur/ Indonesia Timur/ East Jakarta West Java Central Java East Java Indonesia Entitas Sumatera/ Sumatera Anak/ Jumlah/ Subsidiary Total 6,629,611 1,102,673 63,285 582,895 13,337 21,133 1,083,611 50,604 1,423 1,587,021 15,252 6,326 243,459 28,785 286 1,068,463 7,673 2,852 - 11,195,060 1,218,324 95,305 2,058,773 3,125,604 51,062 503,802 261,947 108,315 270,710 290,421 1,999 91,940 69,319 772,211 - 2,713,810 4,892,293 12,979,946 1,172,229 1,505,900 2,169,730 366,469 1,920,518 - 20,114,792 Indonesia Timur/ East Indonesia Sumatera/ Sumatera Unused loan facilities granted - committed Working capital Investment Consumer Outstanding irrevocable letters of credit Guarantees issued 2016 Jakarta/ Jakarta Fasilitas kredit kepada nasabah yang belum ditarik - committed Modal kerja Investasi Konsumsi Irrevocable letters of credit yang masih berjalan Garansi yang diterbitkan Jawa Barat/ West Java Jawa Tengah/ Central Java Jawa Timur/ East Java Entitas Anak/ Subsidiary Jumlah/ Total 7,213,526 607,819 105,346 921,847 52 31,179 1,341,325 3,018 1,939,779 42,971 32,682 468,453 28,785 10,316 1,617,133 29,762 4,593 - 13,502,063 709,389 187,134 1,504,822 2,503,059 11,934,572 47,974 411,943 1,412,995 276,513 101,877 1,722,733 234,175 276,458 2,526,065 80,858 588,412 8,754 655,274 2,315,516 - 2,072,238 4,029,469 20,500,293 Indonesia Timur/ East Indonesia Sumatera/ Sumatera Unused loan facilities granted - committed Working capital Investment Consumer Outstanding irrevocable letters of credit Guarantees issued 2015 Jakarta/ Jakarta Fasilitas kredit kepada nasabah yang belum ditarik - committed Modal kerja Investasi Konsumsi Irrevocable letters of credit yang masih berjalan Garansi yang diterbitkan Jawa Barat/ West Java Jawa Tengah/ Central Java Jawa Timur/ East Java Entitas Anak/ Subsidiary Jumlah/ Total 4,274,157 197,632 179,188 627,942 7,639 24,850 1,038,439 1,500 3,767 1,751,713 14,188 30,505 307,335 60,385 831 1,467,356 57,486 3,969 - 9,466,942 338,830 243,110 1,185,581 2,548,328 8,384,886 34,823 477,462 1,172,716 153,289 158,589 1,355,584 52,887 170,932 2,020,225 1,273 80,380 450,204 16,559 571,701 2,117,071 - 1,444,412 4,007,392 15,500,686 Unused loan facilities granted - committed Working capital Investment Consumer Outstanding irrevocable letters of credit Guarantees issued Halaman – 5/202– Page 862 Annual Report CIMB NIAGA 2017
  863. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 53. RISIKO KREDIT (lanjutan) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 53. CREDIT RISK (continued) (iv) Eksposur maksimum risiko kredit tanpa memperhitungkan agunan dan pendukung kredit lainnya (lanjutan) (iv) Maximum exposure to credit risk without taking into account of any collateral held or other credit enhancements (continued) Konsentrasi risiko aset keuangan dengan eksposur risiko kredit (lanjutan) Concentration of risks of financial assets with credit risk exposure (continued) b) Sektor industri b) Industry sectors Tabel berikut ini menggambarkan rincian eksposur kredit Bank CIMB Niaga dan Entitas Anak pada nilai tercatat (tanpa memperhitungkan agunan atau pendukung kredit lainnya) yang dikategorikan berdasarkan sektor industri pada tanggal 31 Desember 2017, 2016, dan 2015. Pemerintah/ Government Giro pada Bank Indonesia Giro pada bank lain Penempatan pada bank lain dan Bank Indonesia Efek-efek Diperdagangkan Tersedia untuk dijual Dimiliki hingga jatuh tempo Obligasi Pemerintah Diperdagangkan Tersedia untuk dijual Dimiliki hingga jatuh tempo Efek yang dibeli dengan janji dijual kembali Tagihan derivatif Kredit yang diberikan, Piutang pembiayaan konsumen, dan Piutang sewa pembiayaan Modal kerja Investasi Konsumsi Tagihan akseptasi Penyertaan Pendapatan yang masih harus diterima Aset lain-lain The following tables describes Bank CIMB Niaga and Subsidiary’s credit exposure at carrying amounts (without taking into account of any collateral held or other credit enhancements) as categorised by the industry sectors as at 31 December 2017, 2016, and 2015. Lembaga keuangan bukan Bank/ Financial institution non Bank Bank/ Bank 2017 Perusahaan lainnya/ Other companies Perseorangan/ Individual Jumlah/ Total 11,522,696 - 3,574,267 - - - 11,522,696 3,574,267 12,490,816 832,897 - - - 13,323,713 4,408,334 255,893 212,466 872,949 219,000 - 959,059 11,214,982 1,306,569 - 3,125,982 14,208,086 7,637,418 3,125,982 14,208,086 7,637,418 - 89,633 259,508 53,998,366 590,900 3,726,364 136,992 155,693 2,207,335 694,684 - - - 71,240 13,300 73,305 122,448 280,293 2,425,110 510,092 1,000 80,353 8,799,374 3,581,816 3,293,109 3,464 23,016 11,368,961 82,403,315 31,422,633 2,136 4,184,965 653,994 1,716,242 123,514,302 9,684,007 6,081,547 45,642,015 174,764 61,704,781 98,183,881 41,307,381 45,644,151 4,184,965 4,464 1,191,635 1,716,242 259,385,784 Dikurangi: Cadangan kerugian penurunan nilai (7,795,085) 251,590,699 Current account with Bank Indonesia Current accounts with other banks Placement with other banks and Bank Indonesia Marketable securities Trading Available-for-sale Held-to-maturity Government bonds Trading Available-for-sale Held-to-maturity Securities purchased under resale agreement Derivative receivables Loans, consumer financing receivables, and financing lease receivables Working capital Investment Consumer Acceptance receivables Investments Accrued income Other assets Less: Allowance for impairment losses Halaman – 5/203– Page Annual Report CIMB NIAGA 2017 863
  864. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 53. RISIKO KREDIT (lanjutan) 53. CREDIT RISK (continued) (iv) Eksposur maksimum risiko kredit tanpa memperhitungkan agunan dan pendukung kredit lainnya (lanjutan) (iv) Maximum exposure to credit risk without taking into account of any collateral held or other credit enhancements (continued) Konsentrasi risiko aset keuangan dengan eksposur risiko kredit (lanjutan) Concentration of risks of financial assets with credit risk exposure (continued) b) Sektor industri (lanjutan) b) Industry sectors (continued) Tabel berikut ini menggambarkan rincian eksposur kredit Bank CIMB Niaga dan Entitas Anak pada nilai tercatat (tanpa memperhitungkan agunan atau pendukung kredit lainnya) yang dikategorikan berdasarkan sektor industri pada tanggal 31 Desember 2017, 2016, dan 2015 (lanjutan). Pemerintah/ Government Giro pada Bank Indonesia Giro pada bank lain Penempatan pada bank lain dan Bank Indonesia Efek-efek Diperdagangkan Tersedia untuk dijual Dimiliki hingga jatuh tempo Obligasi Pemerintah Diperdagangkan Tersedia untuk dijual Dimiliki hingga jatuh tempo Efek yang dibeli dengan janji dijual kembali Tagihan derivatif Kredit yang diberikan, Piutang pembiayaan konsumen, dan Piutang sewa pembiayaan Modal kerja Investasi Konsumsi Tagihan akseptasi Penyertaan Pendapatan yang masih harus diterima Aset lain-lain The following tables describes Bank CIMB Niaga and Subsidiary’s credit exposure at carrying amounts (without taking into account of any collateral held or other credit enhancements) as categorised by the industry sectors as at 31 December 2017, 2016, and 2015 (continued). Lembaga keuangan bukan Bank/ Financial institution non Bank Bank/ Bank 2016 Perusahaan lainnya/ Other companies Perseorangan/ Individual Jumlah/ Total 13,345,736 - 1,624,152 - - - 13,345,736 1,624,152 3,645,892 790,341 - - - 4,436,233 2,353,896 205,867 64,662 1,082,936 219,000 - 501,682 7,915,911 962,547 - 2,961,686 7,955,351 7,267,095 2,961,686 7,955,351 7,267,095 361,025 1,717,704 - 75,995 2,761,375 537,680 - - 542,956 2,076 85,454 5,945 245,532 145,595 542,956 484,602 71,505 38,352,060 2,219,818 294,604 1,000 738,756 7,120,723 4,033,941 4,485,349 3,464 54,060 10,661,488 70,192,040 33,815,206 8,981 4,431,795 278,272 2,337,125 114,684,001 8,717,332 9,945,068 46,451,700 56,716 178,339 65,494,750 85,163,131 48,540,227 46,460,681 4,488,511 4,464 1,320,932 2,337,125 236,313,022 Dikurangi: Cadangan kerugian penurunan nilai - (8,606,929) 227,706,093 Current account with Bank Indonesia Current accounts with other banks Placement with other banks and Bank Indonesia Marketable securities Trading Available-for-sale Held-to-maturity Government bonds Trading Available-for-sale Held-to-maturity Securities purchased under resale agreement Derivative receivables Loans, consumer financing receivables, and financing lease receivables Working capital Investment Consumer Acceptance receivables Investments Accrued income Other assets Less: Allowance for impairment losses Halaman – 5/204– Page 864 Annual Report CIMB NIAGA 2017
  865. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 53. RISIKO KREDIT (lanjutan) 53. CREDIT RISK (continued) (iv) Eksposur maksimum risiko kredit tanpa memperhitungkan agunan dan pendukung kredit lainnya (lanjutan) (iv) Maximum exposure to credit risk without taking into account of any collateral held or other credit enhancements (continued) Konsentrasi risiko aset keuangan dengan eksposur risiko kredit (lanjutan) Concentration of risks of financial assets with credit risk exposure (continued) b) Sektor industri (lanjutan) b) Industry sectors (continued) Tabel berikut ini menggambarkan rincian eksposur kredit Bank CIMB Niaga dan Entitas Anak pada nilai tercatat (tanpa memperhitungkan agunan atau pendukung kredit lainnya) yang dikategorikan berdasarkan sektor industri pada tanggal 31 Desember 2017, 2016, dan 2015 (lanjutan). Pemerintah/ Government Giro pada Bank Indonesia Giro pada bank lain Penempatan pada bank lain dan Bank Indonesia Efek-efek Diperdagangkan Tersedia untuk dijual Dimiliki hingga jatuh tempo Obligasi Pemerintah Diperdagangkan Tersedia untuk dijual Dimiliki hingga jatuh tempo Efek yang dibeli dengan janji dijual kembali Tagihan derivatif Kredit yang diberikan, Piutang pembiayaan konsumen, dan Piutang sewa pembiayaan Modal kerja Investasi Konsumsi Tagihan akseptasi Penyertaan Pendapatan yang masih harus diterima Aset lain-lain The following tables describes Bank CIMB Niaga and Subsidiary’s credit exposure at carrying amounts (without taking into account of any collateral held or other credit enhancements) as categorised by the industry sectors as at 31 December 2017, 2016, and 2015 (continued). Lembaga keuangan bukan Bank/ Financial institution non Bank Bank/ Bank 2015 Perusahaan lainnya/ Other companies Perseorangan/ Individual Jumlah/ Total 14,605,403 - 2,348,027 - - - 14,605,403 2,348,027 5,157,501 741,084 - - - 5,898,585 1,635,880 520,037 120,733 1,502,033 219,000 - 824,814 7,776,299 1,258,031 - 4,566,706 6,251,319 5,231,868 4,566,706 6,251,319 5,231,868 507,581 2,167,766 - - - 174,552 1,262 89,696 - 265 221,426 38,366,219 2,299,603 137,660 1,000 71,902 7,530,738 4,459,091 5,194,710 304 2,253 12,938 25,798 12,370,441 Dikurangi: Cadangan kerugian penurunan nilai 196,500 2,470,620 518,994 398,910 105,686 174,552 595,554 72,915,531 27,050,857 65,529 4,236,351 891,653 1,683,193 110,428,138 8,186,171 12,548,058 44,678,977 13,245 173,111 65,705,248 87,860,396 44,931,285 44,745,075 4,251,849 13,938 1,383,890 1,683,193 234,400,784 (7,903,062) 226,497,722 Current account with Bank Indonesia Current accounts with other banks Placement with other banks and Bank Indonesia Marketable securities Trading Available-for-sale Held-to-maturity Government bonds Trading Available-for-sale Held-to-maturity Securities purchased under resale agreement Derivative receivables Loans, consumer financing receivables, and financing lease receivables Working capital Investment Consumer Acceptance receivables Investments Accrued income Other assets Less: Allowance for impairment losses Halaman – 5/205– Page Annual Report CIMB NIAGA 2017 865
  866. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 53. RISIKO KREDIT (lanjutan) 53. CREDIT RISK (continued) (iv) Eksposur maksimum risiko kredit tanpa memperhitungkan agunan dan pendukung kredit lainnya (lanjutan) (iv) Maximum exposure to credit risk without taking into account of any collateral held or other credit enhancements (continued) Konsentrasi risiko aset keuangan dengan eksposur risiko kredit (lanjutan) Concentration of risks of financial assets with credit risk exposure (continued) b) Sektor industri (lanjutan) b) Industry sectors (continued) Eksposur resiko kredit yang terkait dengan unsur rekening administratif adalah: Pemerintah/ Government Fasilitas kredit kepada nasabah yang belum ditarik - committed Modal kerja Investasi Konsumsi Irrevocable letters of credit yang masih berjalan Garansi yang diterbitkan 2017 Perusahaan lainnya/ Other companies Perseorangan/ Individual Jumlah/ Total 18,954 2,500 - 534,618 86,413 - 8,575,711 741,267 - 2,065,777 388,144 95,305 11,195,060 1,218,324 95,305 - 21,454 621,031 2,713,810 4,892,293 16,923,081 2,549,226 2,713,810 4,892,293 20,114,792 Bank/ Bank Lembaga keuangan bukan Bank/ Financial institution non Bank Perusahaan lainnya/ Other companies Perseorangan/ Individual Jumlah/ Total 16,183 44,500 - 200,828 87,315 - 10,073,996 573,993 - 3,211,056 3,581 187,134 13,502,063 709,389 187,134 - 60,683 288,143 2,072,238 4,029,469 16,749,696 3,401,771 2,072,238 4,029,469 20,500,293 Bank/ Bank Lembaga keuangan bukan Bank/ Financial institution non Bank Unused loan facilities granted - committed Working capital Investment Consumer Outstanding irrecovable letters of credit Guarantees issued 2016 - Pemerintah/ Government Fasilitas kredit kepada nasabah yang belum ditarik - committed Modal kerja Investasi Konsumsi Irrevocable letters of credit yang masih berjalan Garansi yang diterbitkan Lembaga keuangan bukan Bank/ Financial institution non Bank - Pemerintah/ Government Fasilitas kredit kepada nasabah yang belum ditarik - committed Modal kerja Investasi Konsumsi Irrevocable letters of credit yang masih berjalan Garansi yang diterbitkan Bank/ Bank Credit risk exposure relating to the administrative accounts items are as follows: Unused loan facilities granted - committed Working capital Investment Consumer Outstanding irrecovable letters of credit Guarantees issued 2015 Perusahaan lainnya/ Other companies Perseorangan/ Individual Jumlah/ Total - 7,302 - 146,665 166,029 - 6,762,420 155,708 5,476 2,550,555 17,093 237,634 9,466,942 338,830 243,110 - 7,302 312,694 1,444,412 4,007,392 12,375,408 2,805,282 1,444,412 4,007,392 15,500,686 Unused loan facilities granted - committed Working capital Investment Consumer Outstanding irrecovable letters of credit Guarantees issued Halaman – 5/206– Page 866 Annual Report CIMB NIAGA 2017
  867. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 53. RISIKO KREDIT (lanjutan) 53. CREDIT RISK (continued) (iv) Eksposur maksimum risiko kredit tanpa memperhitungkan agunan dan pendukung kredit lainnya (lanjutan) (iv) Maximum exposure to credit risk without taking into account of any collateral held or other credit enhancements (continued) Konsentrasi risiko aset keuangan dengan eksposur risiko kredit (lanjutan) Concentration of risks of financial assets with credit risk exposure (continued) c) Kualitas kredit dari aset keuangan c) Credit quality of financial assets Pada tanggal 31 Desember 2017, 2016, dan 2015 eksposur risiko kredit atas aset keuangan terbagi atas: Belum jatuh tempo atau tidak mengalami penurunan nilai/ Neither past due nor impaired Giro pada Bank Indonesia Giro pada bank lain Penempatan pada bank lain dan Bank Indonesia Efek-efek Diperdagangkan Tersedia untuk dijual Dimiliki hingga jatuh tempo Obligasi Pemerintah Diperdagangkan Tersedia untuk dijual Dimiliki hingga jatuh tempo Tagihan derivatif Kredit yang diberikan Modal kerja Investasi Konsumsi Piutang pembiayaan konsumen dan piutang sewa Pembiayaan Tagihan akseptasi Penyertaan Pendapatan yang masih harus diterima Aset lain-lain As at 31 December 2017, 2016, and 2015, credit risk exposure relating to financial assets are divided as follows: 2017 Telah jatuh tempo tetapi tidak mengalami penurunan nilai/ Past due but not impaired Mengalami penurunan nilai/ Impaired Jumlah/ Total 11,522,696 3,574,267 - - 11,522,696 3,574,267 13,314,199 - 9,514 13,323,713 959,059 11,214,982 1,291,569 - 15,000 959,059 11,214,982 1,306,569 3,125,982 14,208,086 7,637,418 280,293 - - 3,125,982 14,208,086 7,637,418 280,293 92,209,329 37,630,372 39,627,987 472,460 848,349 1,233,375 5,502,092 2,828,660 1,053,098 98,183,881 41,307,381 41,914,460 2,645,694 4,184,965 3,659 1,029,251 - 54,746 805 3,729,691 4,184,965 4,464 1,191,635 1,286,743 245,908,935 3,583,435 429,499 9,893,414 1,191,635 1,716,242 259,385,784 Dikurangi: Cadangan kerugian penurunan nilai (7,795,085) 251,590,699 Current accounts with Bank Indonesia Current accounts with other banks Placement with other banks and Bank Indonesia Marketable securities Trading Available-for-sale Held-to-maturity Government Bonds Trading Available-for-sale Held-to-maturity Derivative receivables Loans Working capital Investment Consumer Consumer financing receivables and financing lease receivables Acceptance receivables Investments Accrued income Other assets Less: Allowance for impairment losses Halaman – 5/207– Page Annual Report CIMB NIAGA 2017 867
  868. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 53. RISIKO KREDIT (lanjutan) 53. CREDIT RISK (continued) (iv) Eksposur maksimum risiko kredit tanpa memperhitungkan agunan dan pendukung kredit lainnya (lanjutan) (iv) Maximum exposure to credit risk without taking into account of any collateral held or other credit enhancements (continued) Konsentrasi risiko aset keuangan dengan eksposur risiko kredit (lanjutan) Concentration of risks of financial assets with credit risk exposure (continued) c) Kualitas kredit dari aset keuangan (lanjutan) c) Credit quality of financial assets (continued) Pada tanggal 31 Desember 2017, 2016, dan 2015 eksposur risiko kredit atas aset keuangan terbagi atas (lanjutan): Belum jatuh tempo atau tidak mengalami penurunan nilai/ Neither past due nor impaired Giro pada Bank Indonesia Giro pada bank lain Penempatan pada bank lain dan Bank Indonesia Efek-efek Diperdagangkan Tersedia untuk dijual Dimiliki hingga jatuh tempo Obligasi Pemerintah Diperdagangkan Tersedia untuk dijual Dimiliki hingga jatuh tempo Efek yang dibeli dengan janji dijual kembali Tagihan derivatif Kredit yang diberikan Modal kerja Investasi Konsumsi Piutang pembiayaan konsumen dan piutang sewa Pembiayaan Tagihan akseptasi Penyertaan Pendapatan yang masih harus diterima Aset lain-lain As at 31 December 2017, 2016, and 2015 credit risk exposure relating to financial assets are divided as follows (continued): 2016 Telah jatuh tempo tetapi tidak mengalami penurunan nilai/ Past due but not impaired Mengalami penurunan nilai/ Impaired Jumlah/ Total 79,745,449 43,278,392 37,682,154 1,111,347 1,258,693 1,196,346 4,306,335 4,003,142 1,005,833 85,163,131 48,540,227 39,884,333 4,881,911 4,488,511 3,574 1,566,351 - 128,086 890 6,576,348 4,488,511 4,464 Current accounts with Bank Indonesia Current accounts with other banks Placement with other banks and Bank Indonesia Marketable securities Trading Available-for-sale Held-to-maturity Government Bonds Trading Available-for-sale Held-to-maturity Securities purchased under resale agreements Derivative receivables Loans Working capital Investment Consumer Consumer financing receivables and financing lease receivables Acceptance receivables Investments 429,499 1,320,932 2,337,125 Accrued income Other assets 9,898,233 236,313,022 13,345,736 1,624,152 - - 13,345,736 1,624,152 4,426,785 - 9,448 4,436,233 501,682 7,915,911 947,547 - 15,000 501,682 7,915,911 962,547 2,961,686 7,955,351 7,267,095 - - 2,961,686 7,955,351 7,267,095 542,956 484,602 - - 542,956 484,602 1,320,932 1,907,626 221,282,052 5,132,737 Dikurangi: Cadangan kerugian penurunan nilai (8,606,929) 227,706,093 Less: Allowance for impairment losses Halaman – 5/208– Page 868 Annual Report CIMB NIAGA 2017
  869. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 53. RISIKO KREDIT (lanjutan) 53. CREDIT RISK (continued) (iv) Eksposur maksimum risiko kredit tanpa memperhitungkan agunan dan pendukung kredit lainnya (lanjutan) (iv) Maximum exposure to credit risk without taking into account of any collateral held or other credit enhancements (continued) Konsentrasi risiko aset keuangan dengan eksposur risiko kredit (lanjutan) Concentration of risks of financial assets with credit risk exposure (continued) c) Kualitas kredit dari aset keuangan (lanjutan) c) Credit quality of financial assets (continued) Pada tanggal 31 Desember 2017, 2016, dan 2015 eksposur risiko kredit atas aset keuangan terbagi atas (lanjutan): Belum jatuh tempo atau tidak mengalami penurunan nilai/ Neither past due nor impaired Giro pada Bank Indonesia Giro pada bank lain Penempatan pada bank lain dan Bank Indonesia Efek-efek Diperdagangkan Tersedia untuk dijual Dimiliki hingga jatuh tempo Obligasi Pemerintah Diperdagangkan Tersedia untuk dijual Dimiliki hingga jatuh tempo Efek yang dibeli dengan janji dijual kembali Tagihan derivatif Kredit yang diberikan Modal kerja Investasi Konsumsi Piutang pembiayaan konsumen dan piutang sewa Pembiayaan Tagihan akseptasi Penyertaan Pendapatan yang masih harus diterima Aset lain-lain As at 31 December 2017, 2016, and 2015 credit risk exposure relating to financial assets are divided as follows (continued): 2015 Telah jatuh tempo tetapi tidak mengalami penurunan nilai/ Past due but not impaired Mengalami penurunan nilai/ Impaired Jumlah/ Total 81,427,306 39,360,277 35,587,967 1,377,758 2,607,704 1,518,887 5,055,332 2,963,304 834,443 87,860,396 44,931,285 37,941,297 5,453,384 4,251,849 13,048 1,286,801 - 63,593 890 6,803,778 4,251,849 13,938 Current accounts with Bank Indonesia Current accounts with other banks Placement with other banks and Bank Indonesia Marketable securities Trading Available-for-sale Held-to-maturity Government Bonds Trading Available-for-sale Held-to-maturity Securities purchased under resale agreements Derivative receivables Loans Working capital Investment Consumer Consumer financing receivables and financing lease receivables Acceptance receivables Investments 429,499 1,383,890 1,683,193 Accrued income Other assets 9,371,728 234,400,784 14,605,403 2,348,027 - - 14,605,403 2,348,027 5,888,918 - 9,667 5,898,585 824,814 7,776,299 1,243,031 - 15,000 824,814 7,776,299 1,258,031 4,566,706 6,251,319 5,231,868 - - 4,566,706 6,251,319 5,231,868 174,552 595,554 - - 174,552 595,554 1,383,890 1,253,694 218,237,906 6,791,150 Dikurangi: Cadangan kerugian penurunan nilai (7,903,062) 226,497,722 Less: Allowance for impairment losses Halaman – 5/209– Page Annual Report CIMB NIAGA 2017 869
  870. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 53. RISIKO KREDIT (lanjutan) 53. CREDIT RISK (continued) (iv) Eksposur maksimum risiko kredit tanpa memperhitungkan agunan dan pendukung kredit lainnya (lanjutan) (iv) Maximum exposure to credit risk without taking into account of any collateral held or other credit enhancements (continued) Konsentrasi risiko aset keuangan dengan eksposur risiko kredit (lanjutan) Concentration of risks of financial assets with credit risk exposure (continued) c) Kualitas kredit dari aset keuangan (lanjutan) c) Credit quality of financial assets (continued) Analisa umur kredit yang diberikan yang telah jatuh tempo tetapi tidak mengalami penurunan nilai pada tanggal 31 Desember 2017, 2016, dan 2015 adalah: Modal kerja/ Working capital 1 - 30 hari 31 - 60 hari 61 - 90 hari 136,272 238,436 97,752 472,460 Aging analysis of loans that are “past due but not impaired” as at 31 December 2017, 2016, and 2015 are set out belows: 2017 Investasi/ Investment Konsumsi/ Consumer 331,579 202,597 314,173 848,349 660,797 325,982 246,596 1,233,375 Jumlah/ Total 1,128,648 767,015 658,521 2,554,184 1 - 30 days 31 - 60 days 61 - 90 days 2016 Modal kerja/ Working capital 1 - 30 hari 31 - 60 hari 61 - 90 hari 586,318 299,475 225,554 1,111,347 Investasi/ Investment Konsumsi/ Consumer 526,020 364,551 368,122 1,258,693 576,308 334,262 285,776 1,196,346 Jumlah/ Total 1,688,646 998,288 879,452 3,566,386 1 - 30 days 31 - 60 days 61 - 90 days 2015 Modal kerja/ Working capital 1 - 30 hari 31 - 60 hari 61 - 90 hari 349,574 575,777 452,407 1,377,758 Investasi/ Investment 565,371 1,695,542 346,791 2,607,704 Konsumsi/ Consumer 751,451 440,353 327,083 1,518,887 Jumlah/ Total 1,666,396 2,711,672 1,126,281 5,504,349 1 - 30 days 31 - 60 days 61 - 90 days Halaman – 5/210– Page 870 Annual Report CIMB NIAGA 2017
  871. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 53. RISIKO KREDIT (lanjutan) 53. CREDIT RISK (continued) (iv) Eksposur maksimum risiko kredit tanpa memperhitungkan agunan dan pendukung kredit lainnya (lanjutan) (iv) Maximum exposure to credit risk without taking into account of any collateral held or other credit enhancements (continued) Konsentrasi risiko aset keuangan dengan eksposur risiko kredit (lanjutan) Concentration of risks of financial assets with credit risk exposure (continued) c) Kualitas kredit dari aset keuangan (lanjutan) c) Credit quality of financial assets (continued) Pada tanggal 31 Desember 2017, 2016, dan 2015, rincian kualitas kredit yang diberikan yang belum jatuh tempo atau tidak mengalami penurunan nilai berdasarkan rating internal sebagai berikut: Credit quality of loans that are “neither past due nor impaired” as at 31 December 2017, 2016, and 2017, can be assessed by reference to the internal rating system is as follows: 2017 Lancar/ Pass Modal kerja Investasi Konsumsi 91,548,546 36,972,652 37,494,689 166,015,887 Dalam perhatian khusus/ Special mention 660,783 657,720 2,133,298 3,451,801 Jumlah/ Total 92,209,329 37,630,372 39,627,987 169,467,688 Working capital Investment Consumer 2016 Lancar/ Pass Modal kerja Investasi Konsumsi 78,763,982 42,052,168 35,148,497 155,964,647 Dalam perhatian khusus/ Special mention 981,467 1,226,224 2,533,657 4,741,348 Jumlah/ Total 79,745,449 43,278,392 37,682,154 160,705,995 Working capital Investment Consumer 2015 Lancar/ Pass Modal kerja Investasi Konsumsi 79,493,738 37,128,541 33,379,978 150,002,257 Dalam perhatian khusus/ Special mention 1,933,568 2,231,736 2,207,989 6,373,293 Jumlah/ Total 81,427,306 39,360,277 35,587,967 156,375,550 Working capital Investment Consumer Halaman – 5/211– Page Annual Report CIMB NIAGA 2017 871
  872. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 53. RISIKO KREDIT (lanjutan) 53. CREDIT RISK (continued) (iv) Eksposur maksimum risiko kredit tanpa memperhitungkan agunan dan pendukung kredit lainnya (lanjutan) (iv) Maximum exposure to credit risk without taking into account of any collateral held or other credit enhancements (continued) Konsentrasi risiko aset keuangan dengan eksposur risiko kredit (lanjutan) Concentration of risks of financial assets with credit risk exposure (continued) c) Kualitas kredit dari aset keuangan (lanjutan) c) Credit quality of financial assets (continued) Penjelasan pembagian kualitas kredit yang diberikan yang belum jatuh tempo atau tidak mengalami penurunan nilai adalah: Details for credit quality of loans that are “neither past due nor impaired” are as follows: - Lancar Aset seluruhnya hampir dapat dipastikan akan diterima kembali sehingga tidak terdapat pertimbangan yang menjadi perhatian Bank CIMB Niaga; dan - Pass There is a high likelihood of the assets being recovered in full and therefore no cause for concern to Bank CIMB Niaga; and - Dalam Perhatian Khusus Ada pertimbangan terkait dengan kemampuan nasabah dalam melakukan pembayaran pada saat jatuh tempo. Namun, dalam hal ini belum terdapat keterlambatan secara aktual dimana pembayaran masih dilakukan pada saat jatuh tempo dan diharapkan dapat menyelesaikan seluruh pokok dan bunga. - Special Mention There is concern over the counterparty’s ability to make payments when due. However, these have not yet converted to actual delinquency and the counterparty is continuing to make payments when due and is expected to settle all outstanding amount of principals and interests. (v) Kredit yang diberikan (v) Loans Ikhtisar kredit yang diberikan adalah: Loans are summarised as follows: 2017 Rupiah Mata uang asing Jumlah Dikurangi: Cadangan kerugian penurunan nilai Tidak mengalami penurunan nilai/ Mengalami penurunan nilai/ Unimpaired Impaired 147,293,957 24,727,915 172,021,872 7,405,896 1,977,954 9,383,850 Jumlah/ Total 154,699,853 26,705,869 181,405,722 (6,984,706) 174,421,016 Rupiah Foreign currencies Total Less: Allowance for impairment losses Halaman – 5/212– Page 872 Annual Report CIMB NIAGA 2017
  873. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 53. RISIKO KREDIT (lanjutan) 53. CREDIT RISK (continued) (v) Kredit yang diberikan (lanjutan) (v) Loans (continued) Ikhtisar kredit yang diberikan adalah (lanjutan): Loans are summarised as follows (continued): 2016 Tidak mengalami penurunan nilai/ Unimpaired Rupiah Mata uang asing Jumlah Dikurangi: Cadangan kerugian penurunan nilai 142,341,863 21,930,518 164,272,381 Mengalami penurunan nilai/ Impaired 6,172,996 3,142,314 9,315,310 Jumlah/ Total 148,514,859 25,072,832 173,587,691 (7,664,256) 165,923,435 Rupiah Foreign currencies Total Less: Allowance for impairment losses 2015 Rupiah Mata uang asing Jumlah Dikurangi: Cadangan kerugian penurunan nilai Tidak mengalami penurunan nilai/ Mengalami penurunan nilai/ Unimpaired Impaired 140,361,112 21,518,787 161,879,899 Jumlah/ Total 4,980,929 3,872,150 8,853,079 145,342,041 25,390,937 170,732,978 (7,050,246) 163,682,732 (vi) Penempatan pada bank lain dan Bank Indonesia Rupiah Foreign currencies Total Less: Allowance for impairment losses (vi) Placement with other banks and Bank Indonesia 2017 Tidak mengalami penurunan nilai/ Unimpaired Rupiah: Fasilitas Simpanan Bank Indonesia (FASBI) Jumlah Rupiah Mata uang asing: Deposito berjangka Call money Jumlah mata uang asing Jumlah Dikurangi: Cadangan kerugian penurunan nilai Mengalami penurunan nilai/ Impaired Jumlah/ Total 8,094,946 8,094,946 - 8,094,946 8,094,946 4,395,870 823,383 5,219,253 13,314,199 9,514 9,514 9,514 4,395,870 832,897 5,228,767 13,323,713 13,314,199 (9,514) - (9,514) 13,314,199 Rupiah: Fasilitas Simpanan Bank Indonesia (FASBI) Total Rupiah Foreign currencies: Time deposits Call money Total foreign currencies Total Less: Allowance for impairment losses Halaman – 5/213– Page Annual Report CIMB NIAGA 2017 873
  874. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 53. RISIKO KREDIT (lanjutan) 53. CREDIT RISK (continued) (vi) Penempatan pada bank lain dan Bank Indonesia (lanjutan) (vi) Placement with other banks and Bank Indonesia (continued) 2016 Tidak mengalami penurunan nilai/ Unimpaired Rupiah: Fasilitas Simpanan Bank Indonesia (FASBI) Jumlah Rupiah Mata uang asing: Deposito berjangka Call money Jumlah mata uang asing Jumlah Dikurangi: Cadangan kerugian penurunan nilai Mengalami penurunan nilai/ Impaired Jumlah/ Total 991,810 991,810 - 991,810 991,810 2,654,082 780,893 3,434,975 4,426,785 9,448 9,448 9,448 2,654,082 790,341 3,444,423 4,436,233 (2,480) 4,424,305 (9,448) - (11,928) 4,424,305 Tidak mengalami penurunan nilai/ Unimpaired Mengalami penurunan nilai/ Impaired Rupiah: Fasilitas Simpanan Bank Indonesia (FASBI) Total Rupiah Foreign currencies: Time deposits Call money Total foreign currencies Total Less: Allowance for impairment losses 2015 Rupiah: Fasilitas Simpanan Bank Indonesia (FASBI) Jumlah Rupiah Mata uang asing: Deposito berjangka Call money Jumlah mata uang asing Jumlah Dikurangi: Cadangan kerugian penurunan nilai 332,751 332,751 - Jumlah/ Total 332,751 332,751 4,824,750 731,417 5,556,167 5,888,918 9,667 9,667 9,667 4,824,750 741,084 5,565,834 5,898,585 (5,250) 5,883,668 (9,667) - (14,917) 5,883,668 Rupiah: Fasilitas Simpanan Bank Indonesia (FASBI) Total Rupiah Foreign currencies: Time deposits Call money Total foreign currencies Total Less: Allowance for impairment losses Halaman – 5/214– Page 874 Annual Report CIMB NIAGA 2017
  875. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 53. RISIKO KREDIT (lanjutan) 53. CREDIT RISK (continued) (vii) Efek-efek (vii) Marketable securities 2017 Tidak mengalami penurunan nilai/ Unimpaired Mengalami penurunan nilai/ Impaired 255,893 3,799,916 8,205,302 334,381 12,595,492 15,000 15,000 255,893 3,799,916 8,205,302 15,000 334,381 12,610,492 608,418 215,410 46,290 870,118 13,465,610 15,000 608,418 215,410 46,290 870,118 13,480,610 (23,556) 13,442,054 (15,000) - (38,556) 13,442,054 Tidak mengalami penurunan nilai/ Unimpaired Mengalami penurunan nilai/ Impaired 1,571,875 987,888 6,583,420 16,001 9,159,184 15,000 15,000 1,571,875 987,888 6,583,420 15,000 16,001 9,174,184 140,980 64,976 205,956 9,365,140 15,000 140,980 64,976 205,956 9,380,140 (20,913) 9,344,227 (15,000) - (35,913) 9,344,227 Jumlah/ Total Rupiah: Sertifikat Bank Indonesia Sertifikat Deposito Bank Indonesia Obligasi Wesel jangka menengah T agihan wesel ekspor Jumlah Rupiah Mata uang asing: Sertifikat Bank Indonesia Obligasi T agihan wesel ekspor Jumlah mata uang asing Jumlah Dikurangi: Cadangan kerugian penurunan nilai Rupiah: Bank Indonesia Certificates Bank Indonesia Certificates Deposit Bonds Medium term notes Bill receivables Total Rupiah Foreign currencies: Bank Indonesia Certificates Bonds Bill receivables Total foreign currencies Total Less: Allowance for impairment losses 2016 Rupiah: Sertifikat Bank Indonesia Sertifikat Deposito Bank Indonesia Obligasi Wesel jangka menengah T agihan wesel ekspor Jumlah Rupiah Mata uang asing: Obligasi T agihan wesel ekspor Jumlah mata uang asing Jumlah Dikurangi: Cadangan kerugian penurunan nilai Jumlah/ Total Rupiah: Bank Indonesia Certificates Bank Indonesia Certificates Deposit Bonds Medium term notes Bill receivables Total Rupiah Foreign currencies: Bonds Bill receivables Total foreign currencies Total Less: Allowance for impairment losses Halaman – 5/215– Page Annual Report CIMB NIAGA 2017 875
  876. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 53. RISIKO KREDIT (lanjutan) 53. CREDIT RISK (continued) (vii) Efek-efek (lanjutan) (vii) Marketable securities (continued) 2015 Tidak mengalami penurunan nilai/ Unimpaired Mengalami penurunan nilai/ Impaired Jumlah/ Total Rupiah: Sertifikat Bank Indonesia Sertifikat Deposito Bank Indonesia Obligasi Wesel jangka menengah Tagihan wesel ekspor Jumlah Rupiah Mata uang asing: Obligasi Tagihan wesel ekspor Jumlah mata uang asing Jumlah Dikurangi: Cadangan kerugian penurunan nilai Rupiah: 1,535,640 620,277 7,630,561 7,177 9,793,655 15,000 15,000 1,535,640 620,277 7,630,561 15,000 7,177 9,808,655 1,094 49,395 50,489 9,844,144 15,000 1,094 49,395 50,489 9,859,144 (22,521) 9,821,623 (15,000) - (37,521) 9,821,623 Tabel berikut menyajikan analisa atas obligasi pada efek-efek berdasarkan lembaga pemeringkat pada tanggal 31 Desember 2017, 2016, dan 2015: Bank Indonesia Certificates Bank Indonesia Certificates Deposit Bonds Medium term notes Bill receivables Total Rupiah Foreign currencies: Bonds Bill receivables Total foreign currencies Total Less: Allowance for impairment losses The table below presents an analysis of bonds in marketable securities by various rating agencies designation at 31 December 2017, 2016, and 2015: 2017 Rupiah Dimiliki hingga jatuh tempo PT Lautan Luas Tbk PT Telekomunikasi Indonesia (Persero) Tbk PT Bank Tabungan Negara (Persero) Tbk PT Indosat Tbk PT Bank Rakyat Indonesia (Persero) Tbk Lembaga Pemeringkat/ Rating Agencies Peringkat/ Rating Pefindo Pefindo Fitch National Pefindo Pefindo idAidAAA AA(idn) idAAA(sy) idAAA Tersedia untuk dijual PT Indosat Tbk PT Perusahaan Listrik Negara (Persero) PT Adira Dinamika Multi Finance Tbk PT Bank Tabungan Negara (Persero) Tbk PT Bank OCBC NISP Tbk PT Pupuk Indonesia (Persero) PT Federal International Finance PT Indofood Sukses Makmur Tbk PT Astra Sedaya Finance PT Bank Rakyat Indonesia (Persero) Tbk PT Aneka Tambang (Persero) Tbk PT Sarana Multi Infrastruktur (Persero) PT Pegadaian (Persero) PT Jasa Marga (Persero) Tbk Lembaga Pembiayaan Ekspor Indonesia PT Sarana Multigriya Finansial (Persero) PT Kereta Api Indonesia (Persero) PT Telekomunikasi Indonesia (Persero) Tbk PT AKR Corporindo Tbk PT Bank Maybank Indonesia Tbk PT Toyota Astra Financial Services PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk PT Bank UOB Indonesia Pefindo Pefindo Pefindo Fitch National Fitch National Fitch National Pefindo Pefindo Fitch National Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Fitch National Pefindo Fitch National idAAA idAAA idAAA AA(idn) AAA(idn) AAA(idn) idAAA idAA+ AAA(idn) idAAA idBBB+ idAAA idAAA idAA idAAA idAAA idAAA idAAA idAAidAAA AAA(idn) idAAAAA(idn) Nilai wajar/ Fair value 218,082 211,100 206,834 25,597 19,792 681,405 1,341,746 580,182 510,782 420,137 401,279 385,560 367,580 298,897 293,598 284,210 277,224 230,357 221,187 208,184 200,861 146,128 106,314 93,411 79,448 50,621 46,106 38,172 15,732 6,597,716 Rupiah Held-to-maturity PT Lautan Luas Tbk PT Telekomunikasi Indonesia (Persero) Tbk PT Bank Tabungan Negara (Persero) Tbk PT Indosat Tbk PT Bank Rakyat Indonesia (Persero) Tbk Available-for-sale PT Indosat Tbk PT Perusahaan Listrik Negara (Persero) PT Adira Dinamika Multi Finance Tbk PT Bank Tabungan Negara (Persero) Tbk PT Bank OCBC NISP Tbk PT Pupuk Indonesia (Persero) PT Federal International Finance PT Indofood Sukses Makmur Tbk PT Astra Sedaya Finance PT Bank Rakyat Indonesia (Persero) Tbk PT Aneka Tambang (Persero) Tbk PT Sarana Multi Infrastruktur (Persero) PT Pegadaian (Persero) PT Jasa Marga (Persero) Tbk Lembaga Pembiayaan Ekspor Indonesia PT Sarana Multigriya Finansial (Persero) PT Kereta Api Indonesia (Persero) PT Telekomunikasi Indonesia (Persero) Tbk PT AKR Corporindo Tbk PT Bank Maybank Indonesia Tbk PT Toyota Astra Financial Services PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk PT Bank UOB Indonesia Halaman – 5/216– Page 876 Annual Report CIMB NIAGA 2017
  877. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 53. RISIKO KREDIT (lanjutan) 53. CREDIT RISK (continued) (vii) Efek-efek (lanjutan) (vii) Marketable securities (continued) Tabel berikut menyajikan analisa atas obligasi pada efek-efek berdasarkan lembaga pemeringkat pada tanggal 31 Desember 2017, 2016, dan 2015 (lanjutan): Rupiah (lanjutan) Diperdagangkan PT Bank Rakyat Indonesia (Persero) Tbk PT Adira Dinamika Multi Finance Tbk PT Indosat Tbk PT Sarana Multigriya Finansial (Persero) PT Wahana Ottomitra Multiartha Tbk PT Federal International Finance PT Indofood Sukses Makmur Tbk PT Jasa Marga (Persero) Tbk PT Astra Sedaya Finance PT Bank Pembangunan Daerah Maluku dan Maluku Utara PT. Indonesia Infrastructure Finance PT Semen Indonesia (Persero) Tbk Bank BJB PT Mandiri Tunas Finance PT Indomobil Finance Indonesia Lembaga Pembiayaan Ekspor Indonesia PT Perusahaan Listrik Negara (Persero) PT Toyota Astra Financial Services PT Bank UOB Indonesia PT Bank Tabungan Negara (Persero) Tbk PT Hutama Karya (Persero) PT Bank OCBC NISP Tbk PT Bank Mandiri (Persero) Tbk PT Maybank Indonesia Finance PT Bank Maybank Indonesia Tbk PT Pupuk Indonesia (Persero) PT Telekomunikasi Indonesia (Persero) Tbk PT Sarana Multi Infrastruktur (Persero) PT Mandala Multifinance Tbk PT Bank Sulutgo The table below presents an analysis of bonds in marketable securities by various rating agencies designation at 31 December 2017, 2016, and 2015 (continued): 2017 Lembaga Pemeringkat/ Rating Agencies Peringkat/ Rating Pefindo Pefindo Pefindo Pefindo Fitch National Pefindo Pefindo Pefindo Fitch National Fitch National Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Fitch National Fitch National Fitch National Pefindo Fitch National Pefindo Fitch National Pefindo Fitch National Pefindo Pefindo Pefindo Fitch National idAAA idAAA idAAA idAAA AA-(idn) idAAA idAA+ idAA AAA(idn) A(idn) idAAA idAA+ idAAidAA+ idA idAAA idAAA AAA(idn) AAA(idn) AA(idn) idAAA AAA(idn) idAAA AA+(idn) idAAA AAA(idn) idAAA idAAA idA A(idn) Nilai wajar/ Fair value 146,654 99,289 93,118 79,763 70,490 46,951 41,328 40,000 38,617 35,191 27,657 26,267 25,133 21,807 21,405 20,495 16,461 14,273 13,112 12,324 12,080 11,013 10,178 10,140 10,124 5,073 2,162 1,024 401 53 952,583 8,231,704 Jumlah Rupiah Dollar Amerika Serikat Tersedia untuk dijual PT Pertamina (Persero) PT Perusahaan Listrik Negara (Persero) Standard & Poor's Standard & Poor's BBBBBB- Diperdagangkan PT Pertamina (Persero) PT Perusahaan Listrik Negara (Persero) 114,063 94,871 208,934 Standard & Poor's Standard & Poor's BBBBBB- 1,092 5,384 6,476 215,410 Jumlah Dollar Amerika Serikat Rupiah (continued) Trading PT Bank Rakyat Indonesia (Persero) Tbk PT Adira Dinamika Multi Finance Tbk PT Indosat Tbk PT Sarana Multigriya Finansial (Persero) PT Wahana Ottomitra Multiartha Tbk PT Federal International Finance PT Indofood Sukses Makmur Tbk PT Jasa Marga (Persero) Tbk PT Astra Sedaya Finance PT Bank Pembangunan Daerah Maluku dan Maluku Utara PT. Indonesia Infrastructure Finance PT Semen Indonesia (Persero) Tbk Bank BJB PT Mandiri Tunas Finance PT Indomobil Finance Indonesia Lembaga Pembiayaan Ekspor Indonesia PT Perusahaan Listrik Negara (Persero) PT Toyota Astra Financial Services PT Bank UOB Indonesia PT Bank Tabungan Negara (Persero) Tbk PT Hutama Karya (Persero) PT Bank OCBC NISP Tbk PT Bank Mandiri (Persero) Tbk PT Maybank Indonesia Finance PT Bank Maybank Indonesia Tbk PT Pupuk Indonesia (Persero) PT Telekomunikasi Indonesia (Persero) Tbk PT Sarana Multi Infrastruktur (Persero) PT Mandala Multifinance Tbk PT Bank Sulutgo Total Rupiah United States Dollar Available-for-sale PT Pertamina (Persero) PT Perusahaan Listrik Negara (Persero) Trading PT Pertamina (Persero) PT Perusahaan Listrik Negara (Persero) Total United States Dollar Halaman – 5/217– Page Annual Report CIMB NIAGA 2017 877
  878. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 53. RISIKO KREDIT (lanjutan) 53. CREDIT RISK (continued) (vii) Efek-efek (lanjutan) (vii) Marketable securities (continued) Tabel berikut menyajikan analisa atas obligasi pada efek-efek berdasarkan lembaga pemeringkat pada tanggal 31 Desember 2017, 2016, dan 2015 (lanjutan): Rupiah Dimiliki hingga jatuh tempo PT Lautan Luas Tbk PT Bank Tabungan Negara (Persero) Tbk PT Telekomunikasi Indonesia (Persero) Tbk PT Indosat Tbk PT Bank Rakyat Indonesia (Persero) Tbk PT Perusahaan Listrik Negara (Persero) The table below presents an analysis of bonds in marketable securities by various rating agencies designation at 31 December 2017, 2016, and 2015 (continued): 2016 Lembaga Pemeringkat/ Rating Agencies Peringkat/ Rating Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo idAidAA+ idAAA idAAA idAAA idAAA 214,242 198,040 198,019 24,717 19,105 5,059 659,182 Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo idAAA idAAA idAA+ idAAA idAAA idAAA idAAidBBB+ idAAA idAAA idAA idAA+ idAAA idAAA idAA+ idAAA idAAA idAAA idAAA idAAA idAA+ idAA+ 1,140,052 692,655 411,746 330,061 306,380 282,271 257,582 250,248 225,329 194,249 162,909 161,756 160,806 156,722 136,312 135,008 119,481 115,146 75,063 65,980 23,652 19,205 5,422,613 Nilai wajar/ Fair value Tersedia untuk dijual PT Indosat Tbk Lembaga Pembiayaan Ekspor Indonesia PT Bank Tabungan Negara (Persero) Tbk PT Perusahaan Listrik Negara (Persero) PT Astra Sedaya Finance PT Federal International Finance PT AKR Corporindo Tbk PT Aneka Tambang (Persero) Tbk PT Telekomunikasi Indonesia (Persero) Tbk PT Bank OCBC NISP Tbk PT Jasa Marga (Persero) Tbk PT Pegadaian (Persero) PT Bank Rakyat Indonesia (Persero) Tbk PT Adira Dinamika Multi Finance Tbk PT Indofood Sukses Makmur Tbk PT Bank Maybank Indonesia Tbk PT Sarana Multi Infrastruktur (Persero) PT Bank Tabungan Pensiunan Nasional Tbk PT BCA Finance PT Bank UOB Indonesia PT Sarana Multigriya Finansial (Persero) PT Toyota Astra Financial Services Rupiah Held-to-maturity PT Lautan Luas Tbk PT Bank Tabungan Negara (Persero) Tbk PT Telekomunikasi Indonesia (Persero) Tbk PT Indosat Tbk PT Bank Rakyat Indonesia (Persero) Tbk PT Perusahaan Listrik Negara (Persero) Available-for-sale PT Indosat Tbk Lembaga Pembiayaan Ekspor Indonesia PT Bank Tabungan Negara (Persero) Tbk PT Perusahaan Listrik Negara (Persero) PT Astra Sedaya Finance PT Federal International Finance PT AKR Corporindo Tbk PT Aneka Tambang (Persero) Tbk PT Telekomunikasi Indonesia (Persero) Tbk PT Bank OCBC NISP Tbk PT Jasa Marga (Persero) Tbk PT Pegadaian (Persero) PT Bank Rakyat Indonesia (Persero) Tbk PT Adira Dinamika Multi Finance Tbk PT Indofood Sukses Makmur Tbk PT Bank Maybank Indonesia Tbk PT Sarana Multi Infrastruktur (Persero) PT Bank Tabungan Pensiunan Nasional Tbk PT BCA Finance PT Bank UOB Indonesia PT Sarana Multigriya Finansial (Persero) PT Toyota Astra Financial Services Halaman – 5/218– Page 878 Annual Report CIMB NIAGA 2017
  879. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 53. RISIKO KREDIT (lanjutan) 53. CREDIT RISK (continued) (vii) Efek-efek (lanjutan) (vii) Marketable securities (continued) Tabel berikut menyajikan analisa atas obligasi pada efek-efek berdasarkan lembaga pemeringkat pada tanggal 31 Desember 2017, 2016, dan 2015 (lanjutan): Rupiah (lanjutan) Diperdagangkan PT Astra Sedaya Finance PT Federal International Finance Lembaga Pembiayaan Ekspor Indonesia PT Sarana Multigriya Finansial (Persero) PT Adira Dinamika Multi Finance Tbk PT Indonesia Infrastructure Finance PT Toyota Astra Financial Services PT Indosat Tbk PT Bank Rakyat Indonesia (Persero) Tbk PT Perusahaan Listrik Negara (Persero) PT Bank Mandiri (Persero) Tbk PT Bank UOB Indonesia PT BCA Finance PT Mandiri Tunas Finance PT Pelabuhan Indonesia (Persero) PT Tower Bersama Infrastructure Tbk PT Bank OCBC NISP Tbk PT Jasa Marga (Persero) Tbk PT Pegadaian (Persero) PT Medco Energi Interrnational Tbk PT Indofood Sukses Makmur Tbk PT Wahana Ottomitra Multiartha Tbk PT Indomobil Finance Indonesia PT AKR Corporindo Tbk PT Surya Artha Nusantara Finance PT Bank Tabungan Pensiunan Nasional Tbk PT Mandala Multifinance Tbk The table below presents an analysis of bonds in marketable securities by various rating agencies designation at 31 December 2017, 2016, and 2015 (continued): 2016 Lembaga Pemeringkat/ Rating Agencies Peringkat/ Rating Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo idAAA idAAA idAAA idAA+ idAAA idAAA idAA+ idAAA idAAA idAAA idAAA idAAA idAAA idAA+ idAA idAAidAAA idAA idAA+ idA+ idAA+ idAA idA idAAidAAidAAA idA Jumlah Rupiah Nilai wajar/ Fair value 65,898 60,042 52,548 51,159 41,159 34,552 28,141 27,596 24,960 22,240 19,291 15,028 12,974 10,989 9,903 6,125 5,183 5,040 2,042 1,661 1,099 815 682 527 225 200 25 500,104 6,581,899 Dollar Amerika Serikat Tersedia untuk dijual PT Perusahaan Listrik Negara (Persero) Majapahit Holding BV PT Pertamina (Persero) PT Perusahaan Gas Negara (Persero) Tbk Fitch International Fitch International Fitch International Fitch International BBBBBBBBBBBB- Diperdagangkan PT Perusahaan Listrik Negara (Persero) PT Pertamina (Persero) 43,306 34,644 33,900 27,552 139,402 Fitch International Fitch International BBBBBB- 975 603 1,578 140,980 Jumlah Dollar Amerika Serikat Rupiah (continued) Trading PT Astra Sedaya Finance PT Federal International Finance Lembaga Pembiayaan Ekspor Indonesia PT Sarana Multigriya Finansial (Persero) PT Adira Dinamika Multi Finance Tbk PT Indonesia Infrastructure Finance PT Toyota Astra Financial Services PT Indosat Tbk PT Bank Rakyat Indonesia (Persero) Tbk PT Perusahaan Listrik Negara (Persero) PT Bank Mandiri (Persero) Tbk PT Bank UOB Indonesia PT BCA Finance PT Mandiri Tunas Finance PT Pelabuhan Indonesia (Persero) PT Tower Bersama Infrastructure Tbk PT Bank OCBC NISP Tbk PT Jasa Marga (Persero) Tbk PT Pegadaian (Persero) PT Medco Energi Interrnational Tbk PT Indofood Sukses Makmur Tbk PT Wahana Ottomitra Multiartha Tbk PT Indomobil Finance Indonesia PT AKR Corporindo Tbk PT Surya Artha Nusantara Finance PT Bank Tabungan Pensiunan Nasional Tbk PT Mandala Multifinance Tbk Total Rupiah United States Dollar Available-for-sale PT Perusahaan Listrik Negara (Persero) Majapahit Holding BV PT Pertamina (Persero) PT Perusahaan Gas Negara (Persero) Tbk Trading PT Perusahaan Listrik Negara (Persero) PT Pertamina (Persero) Total United States Dollar Halaman – 5/219– Page Annual Report CIMB NIAGA 2017 879
  880. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 53. RISIKO KREDIT (lanjutan) 53. CREDIT RISK (continued) (vii) Efek-efek (lanjutan) (vii) Marketable securities (continued) Tabel berikut menyajikan analisa atas obligasi pada efek-efek berdasarkan lembaga pemeringkat pada tanggal 31 Desember 2017, 2016, dan 2015 (lanjutan): Lembaga Rupiah Dimiliki hingga jatuh tempo PT Lautan Luas Tbk PT Telekomunikasi Indonesia (Persero) Tbk PT Bank Tabungan Negara (Persero) Tbk PT Indosat Tbk PT Bank Rakyat Indonesia (Persero) Tbk PT Perusahaan Listrik Negara (Persero) The table below presents an analysis of bonds in marketable securities by various rating agencies designation at 31 December 2017, 2016, and 2015 (continued): 2015 Pemeringkat/ Rating Agencies Peringkat/ Rating Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo idAidAAA idAA idAAA(sy) idAAA idAAA Nilai wajar/ Fair value 207,235 192,063 187,162 23,732 18,870 10,136 639,198 Tersedia untuk dijual PT Indosat Tbk Lembaga Pembiayaan Ekspor Indonesia PT Bank Tabungan Negara (Persero) Tbk PT Adira Dinamika Multi Finance Tbk PT Bank Maybank Indonesia Tbk PT Bank OCBC NISP Tbk PT Perusahaan Listrik Negara (Persero) PT Federal International Finance PT Astra Sedaya Finance PT Jasa Marga (Persero) Tbk PT Aneka Tambang (Persero) Tbk PT AKR Corporindo Tbk PT Telekomunikasi Indonesia (Persero) Tbk PT Pegadaian (Persero) PT Bank Rakyat Indonesia (Persero) Tbk PT Indofood Sukses Makmur Tbk PT Bank Tabungan Pensiunan Nasional Tbk PT BCA Finance PT Sarana Multigriya Finansial (Persero) PT Bank UOB Indonesia PT Toyota Astra Financial Services Rupiah Held-to-maturity PT Lautan Luas Tbk PT Telekomunikasi Indonesia (Persero) Tbk PT Bank Tabungan Negara (Persero) Tbk PT Indosat Tbk PT Bank Rakyat Indonesia (Persero) Tbk PT Perusahaan Listrik Negara (Persero) Available-for-sale Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo idAAA idAAA idAA idAAA idAAA idAAA idAAA idAAA idAAA idAA idA idAAidAAA idAA+ idAAA idAA+ idAA+ idAAA idAA+ idAAA idAA+ 1,055,756 758,836 395,533 393,464 379,112 375,464 325,451 311,447 272,804 254,056 252,460 246,752 221,863 163,437 157,517 128,937 113,122 103,456 99,473 84,153 47,326 6,140,419 PT Indosat Tbk Lembaga Pembiayaan Ekspor Indonesia PT Bank Tabungan Negara (Persero) Tbk PT Adira Dinamika Multi Finance Tbk PT Bank Maybank Indonesia Tbk PT Bank OCBC NISP Tbk PT Perusahaan Listrik Negara (Persero) PT Federal International Finance PT Astra Sedaya Finance PT Jasa Marga (Persero) Tbk PT Aneka Tambang (Persero) Tbk PT AKR Corporindo Tbk PT Telekomunikasi Indonesia (Persero) Tbk PT Pegadaian (Persero) PT Bank Rakyat Indonesia (Persero) Tbk PT Indofood Sukses Makmur Tbk PT Bank Tabungan Pensiunan Nasional Tbk PT BCA Finance PT Sarana Multigriya Finansial (Persero) PT Bank UOB Buana Tbk PT Toyota Astra Financial Services Halaman – 5/220– Page 880 Annual Report CIMB NIAGA 2017
  881. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 53. RISIKO KREDIT (lanjutan) 53. CREDIT RISK (continued) (vii) Efek-efek (lanjutan) (vii) Marketable securities (continued) Tabel berikut menyajikan analisa atas obligasi pada efek-efek berdasarkan lembaga pemeringkat pada tanggal 31 Desember 2017, 2016, dan 2015 (lanjutan): Rupiah (lanjutan) Diperdagangkan PT Indosat Tbk Lembaga Pembiayaan Ekspor Indonesia PT Adira Dinamika Multi Finance Tbk PT Bank OCBC NISP Tbk PT Astra Sedaya Finance PT Wahana Ottomitra Multiartha Tbk PT Sarana Multigriya Finansial (Persero) PT Jasa Marga (Persero) Tbk PT Indomobil Finance Indonesia PT Pegadaian (Persero) PT Bank Tabungan Negara (Persero) Tbk PT Perusahaan Listrik Negara (Persero) PT Federal International Finance PT Toyota Astra Financial Services PT Mandiri Tunas finance Tbk PT BCA Finance PT Bank UOB Indonesia PT Medco Energi International Tbk PT Bank Maybank Indonesia Tbk PT Indofood Sukses Makmur Tbk PT Bank Tabungan Pensiunan Nasional Tbk PT Express Transindo Utama Tbk PT Pupuk Indonesia (Persero) PT Surya Artha Nusantara Finance The table below presents an analysis of bonds in marketable securities by various rating agencies designation at 31 December 2017, 2016, and 2015 (continued): 2015 Lembaga Pemeringkat/ Rating Agencies Peringkat/ Rating Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo idAAA idAAA idAAA idAAA idAAA idAA idAA+ idAA idA idAA+ idAA idAAA idAAA idAA+ idAA idAAA idAAA idA+ idAAA idAA+ idAA+ idA idAAA idAA- Jumlah Rupiah Nilai wajar/ Fair value 113,179 100,062 96,567 76,083 68,391 49,975 39,975 34,540 33,395 32,662 29,821 27,755 22,082 20,040 19,757 16,755 13,831 10,655 5,968 4,828 2,951 2,938 1,495 15 823,720 7,603,337 Dollar Amerika Serikat Diperdagangkan PT Pertamina (Persero) PT Perusahaan Listrik Negara (Persero) Rupiah (continued) Trading PT Indosat Tbk Lembaga Pembiayaan Ekspor Indonesia PT Adira Dinamika Multi Finance Tbk PT Bank OCBC NISP Tbk PT Astra Sedaya Finance PT Wahana Ottomitra Multiartha Tbk PT Sarana Multigriya Finansial (Persero) PT Jasa Marga (Persero) Tbk PT Indomobil Finance Indonesia PT Pegadaian (Persero) PT Bank Tabungan Negara (Persero) Tbk PT Perusahaan Listrik Negara (Persero) PT Federal International Finance PT Toyota Astra Financial Services PT Mandiri Tunas finance Tbk PT BCA Finance PT Bank UOB Indonesia PT Medco Energi International Tbk PT Bank Maybank Indonesia Tbk PT Indofood Sukses Makmur Tbk PT Bank Tabungan Pensiunan Nasional Tbk PT Express Transindo Utama Tbk PT Pupuk Indonesia (Persero) PT Surya Artha Nusantara Finance Total Rupiah United States Dollar Trading Fitch International Pefindo BBBidAAA Jumlah Dollar Amerika Serikat 1,029 65 1,094 1,094 PT Pertamina (Persero) PT Perusahaan Listrik Negara (Persero) Total United States Dollar Halaman – 5/221– Page Annual Report CIMB NIAGA 2017 881
  882. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 54. RISIKO TINGKAT SUKU BUNGA 54. INTEREST RATE RISK Risiko tingkat suku bunga terjadi dari bermacam-macam layanan perbankan kepada nasabah meliputi penghimpunan dana (antara lain giro, tabungan, dan deposito), penempatan dana (antara lain kredit yang diberikan), komitmen dan kontinjensi, serta instrumen lain yang mengandung suku bunga. Interest rate risk arises from various banking products provided to customers including deposit taking (demand deposits, saving deposits, and time deposits), lending (loans), commitments and contingencies, and other earning instruments. Asset Liability Committee (ALCO) Bank CIMB Niaga yang beranggotakan Direksi dan beberapa anggota manajemen senior, bertanggung jawab dalam menetapkan kebijakan dan strategi pengelolaan risiko tingkat suku bunga di banking book serta mengawasi penerapan dan pelaksanaannya. Tujuan utama ALCO adalah mengoptimalkan hasil usaha Bank CIMB Niaga dengan tetap memperhatikan batasan-batasan risiko yang ditetapkan. Bank CIMB Niaga’s Asset Liability Committee (ALCO), which consists of the Directors and selected members of senior management, is responsible for determining interest rate risk management policies and strategies in banking book and monitoring its implementation and execution. The main objective of ALCO is to optimise Bank CIMB Niaga’s return within predetermined risk limits. Selain itu, risiko tingkat bunga dapat pula terjadi dari produk-produk tresuri seperti surat berharga dan transaksitransaksi derivatif yang terdapat pada portofolio trading book. Selain menggunakan pendekatan faktor sensitivitas (DV01), pengukuran risiko tingkat suku bunga pada trading book juga telah dilakukan dengan menggunakan metode pengukuran risiko pasar yang lebih risk sensitive yaitu VaR (Value at Risk). In addition, interest rate risk could also arise from treasury products like marketable securities and derivative transactions included in trading book portfolio. Besides using sensitivity factor approach (DV01), the measurement of interest rate risk in trading book, has also using more sensitive measurement method on market risk, that is VaR (Value at Risk). Market Risk Committee (MRC) secara berkala mengkaji ulang tingkat risiko pada portofolio tresuri dan menetapkan kebijakan, batasan-batasan perdagangan yang dapat diterima serta strategi manajemen risiko tingkat bunga pada trading book berdasarkan prinsip kehati-hatian. The Market Risk Committee (MRC) continuously do test for risk in treasury portfolio and determined the policy, trading limits that can be accepted and interest rate risk management strategy on trading book based on prudentiality principle. 2017 Rupiah (%) ASET Penempatan pada bank lain dan Bank Indonesia Efek-efek Obligasi Pemerintah tingkat bunga tetap Kredit yang diberikan LIABILITAS Simpanan nasabah Giro T abungan Deposito Simpanan dari bank lain Efek-efek yang diterbitkan Pinjaman yang diterima Pinjaman subordinasi 2016 Mata uang asing/ Foreign currencies (%) Rupiah (%) 2015 Mata uang asing/ Foreign currencies (%) Rupiah (%) Mata uang asing/ Foreign currencies (%) 4.02 7.18 1.14 0.64 5.10 8.52 0.55 0.11 5.48 8.65 0.16 0.16 6.65 10.86 4.24 4.43 6.64 11.72 3.22 4.58 6.70 12.60 3.87 4.64 ASSETS Placements with other banks and Bank Indonesia Marketable securities Government bonds Fixed interest rate Loans 0.87 0.46 1.59 1.04 2.17 - LIABILITIES Deposits from customers Demand deposits Saving deposits Time deposits Deposits from other banks Marketable securities issued Borrowings Subordinated loans 2.84 2.91 6.19 3.23 8.56 0.28 10.96 0.54 0.23 1.20 0.39 2.56 - 2.95 3.18 7.27 3.26 8.74 10.97 0.47 0.25 0.98 0.51 2.22 - 3.05 3.46 8.69 2.54 8.71 8.67 10.88 Halaman – 5/222– Page 882 Annual Report CIMB NIAGA 2017
  883. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 54. RISIKO TINGKAT SUKU BUNGA (lanjutan) 54. INTEREST RATE RISK (continued) a. Eksposur Bank CIMB Niaga dan Entitas Anak terhadap risiko tingkat suku bunga a. Bank CIMB Niaga and Subsidiary’s exposure to interest rate risk Tabel di bawah ini mengikhtisarkan aset dan liabilitas keuangan berbunga Bank dan Entitas Anak pada nilai tercatat, yang dikategorikan menurut mana yang terlebih dahulu antara tanggal repricing secara kontraktual (contractual repricing) atau tanggal jatuh tempo: The following table summarises the Bank and Subsidiary’s interest earning financial assets and interest bearing financial liabilities at carrying amounts which are categorised by the earlier of contractual repricing date or maturity dates: ASET Giro pada Bank Indonesia Giro pada bank lain Penempatan pada bank lain dan Bank Indonesia Efek-efek Obligasi Pemerintah Efek-efek yang dibeli dengan janji dijual kembali Kredit yang diberikan Jumlah aset keuangan LIABILITAS Simpanan nasabah Giro Tabungan Deposito Simpanan dari bank lain Giro dan tabungan Interbank call money and deposito berjangka Efek-efek yang dijual dengan janji dibeli kembali Efek-efek yang diterbitkan Pinjaman yang diterima Pinjaman subordinasi Jumlah liabilitas keuangan Sub Jumlah 1 bulan atau kurang/ 1 month or Less Sub Jumlah Lebih dari 1 tahun tapi tidak lebih dari 2 tahun/ Over 1 year to 2 years Lebih dari 2 tahun/ Over 2 years Jumlah/ Total - - - - - - 11,522,696 3,574,267 - - - - - - - - 3,574,267 - - - 13,323,713 227,584 751,539 2,545,146 1,929,329 4,605,953 3,710,086 1,226,005 7,000,732 4,875,922 11,579,800 13,323,713 13,480,610 24,971,486 15,096,963 116,266,028 116,266,028 - - 1,767,743 16,070,579 311,126 4,785,601 10,454,803 18,770,842 10,364,942 18,591,679 42,241,080 58,696,802 181,405,722 248,278,494 50,214,272 - 49,281,023 - - - 52,443,564 17,775,900 11,630,111 7,969,538 2,788 49,281,023 50,214,272 89,821,901 - 1,987,651 - - - 1,987,651 - - - - - - 3,630,324 380,980 228,900 564,266 92,214 4,896,684 9,378,703 5,403,613 5,809,723 1,596,772 218,390,342 9,378,703 680,055 60,273,030 542,689 51,811,363 460,000 460,000 153,861 153,861 2,043,443 58,117,331 829,158 18,986,038 2,148,373 103,517 14,110,901 383,567 974,931 9,892,302 2,871,673 22,069 1,596,772 4,585,516 (45,176,067) 64,454,665 (460,000) (153,861) (42,046,752) (14,200,437) 4,659,941 8,699,377 54,111,286 (38,803,128) Pinjaman yang diterima Pinjaman subordinasi Jumlah liabilitas keuangan 1 bulan atau kurang/ 1 month or Less Lebih dari 1 tahun/ Over 1 year Bunga tetap/Fixed rate Lebih dari 3 bulan tapi tidak lebih dari 1 tahun/ Over 3 months to 1 year - Jumlah gap repricing suku bunga LIABILITAS Simpanan nasabah Giro Tabungan Deposito Simpanan dari bank lain Giro dan tabungan Interbank call money and deposito berjangka Efek-efek yang dijual dengan janji dibeli kembali Efek-efek yang diterbitkan Lebih dari 1 bulan tapi tidak lebih dari 3 bulan/ Over 1 month to 3 months - 36,789,859 30,416,920 Giro pada bank lain Penempatan pada bank lain dan Bank Indonesia Efek-efek Obligasi Pemerintah Efek-efek yang dibeli dengan janji dijual kembali Kredit yang diberikan Jumlah aset keuangan 2017 11,522,696 Tagihan derivatif Liabilitas derivatif ASET Giro pada Bank Indonesia Bunga mengambang/Floating rate Lebih dari Lebih dari 1 bulan 3 bulan tapi tidak tapi tidak lebih dari lebih dari 3 bulan/ 1 tahun/ Over 1 month Over 3 months to 3 months to 1 year 1 bulan atau kurang/ 1 month or Less 13,345,736 1,624,152 - 64,454,665 (460,000) Bunga mengambang/Floating rate Lebih dari Lebih dari 1 bulan 3 bulan tapi tidak tapi tidak lebih dari lebih dari 3 bulan/ 1 tahun/ Over 1 month Over 3 months to 3 months to 1 year - - (153,861) (42,046,752) (14,200,437) 2016 Lebih dari 1 tahun/ Over 1 year - 4,659,941 Bunga tetap/Fixed rate Lebih dari 3 bulan tapi tidak lebih dari 1 tahun/ Over 3 months to 1 year 8,699,377 - - - 13,345,736 - - - - 1,624,152 - - - - 3,444,423 274,149 237,787 991,810 906,856 769,385 3,128,330 4,252,265 2,021,992 2,418,010 3,048,813 10,506,685 4,436,233 9,380,140 18,184,132 33,551,397 47,106,895 542,956 173,587,691 221,101,040 2,030,785 4,698,836 4,925,987 12,306,582 2,539,295 6,979,297 47,210,624 - 44,597,980 - - - 48,501,382 22,132,115 10,330,568 7,798,423 - - - - - - 1,863,474 116,733 47,496,991 898,156 47,359,610 (32,527,103) 70,411,502 Jumlah gap repricing suku bunga (17,709,814) Jumlah/ Total - 542,956 12,769,115 17,268,430 28,467,340 13,650,051 Lebih dari 2 tahun/ Over 2 years - - Tagihan derivatif Liabilitas derivatif 36,261,091 - - 169,634 - Sub Total Derivative receivables Derivative payables - 117,771,112 117,771,112 - 29,888,152 1 bulan atau kurang/ 1 month or Less 14,969,888 - 54,111,286 - 70,411,502 - 1,104,453 32,957 110,493 2,693,999 - 1,827,162 847,824 562,718 169,634 3,237,704 5,436,073 2,979,566 196,951,584 Borrowings Subordinated loans Total financial liabilities - - - 42 - 253,501 253,501 550,809 50,477,858 13,775 22,166,319 525,054 1,383,664 15,170,901 961,465 9,640,669 2,116,580 1,595,902 4,385,735 - (253,501) (33,209,428) (17,467,483) (2,864,319) (2,661,372) 42,721,160 - - (253,501) - (33,209,428) ASSETS Current accounts with Bank Indonesia Current accounts with other banks Placement with other banks and Bank Indonesia Marketable securities Government Bonds Securities purchased under resale agreements Loans Total financial assets 20,429 - - - - Total interest repricing gap LIABILITIES Deposits from customers Demand deposits Saving deposits Time deposits Deposits from other banks Demand and saving deposits Inter-bank call money and time deposits Securities sold under repurchase agreement Marketable securities issued 1,425,667 LIABILITIES Deposits from customers Demand deposits Saving deposits Time deposits Deposits from other banks Demand and saving deposits Inter-bank call money and time deposits Securities sold under repurchase agreement Marketable securities issued Borrowings Subordinated loans Total financial liabilities 36,789,859 30,416,920 Lebih dari 1 bulan tapi tidak lebih dari 3 bulan/ Over 1 month to 3 months - Lebih dari 1 tahun tapi tidak lebih dari 2 tahun/ Over 1 year to 2 years - ASSETS Current accounts with Bank Indonesia Current accounts with other banks Placement with other banks and Bank Indonesia Marketable securities Government Bonds Securities purchased under resale agreements Loans Total financial assets - (17,467,483) - (2,864,319) - (2,661,372) - 42,721,160 44,597,980 47,210,624 88,762,530 1,863,474 24,149,456 Sub Total 28,467,340 13,650,051 Derivative receivables Derivative payables 38,966,745 Total interest repricing gap Halaman – 5/223– Page Annual Report CIMB NIAGA 2017 883
  884. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 54. RISIKO TINGKAT SUKU BUNGA (lanjutan) 54. INTEREST RATE RISK (continued) a. Eksposur Bank CIMB Niaga dan Entitas Anak terhadap risiko tingkat suku bunga b. Tabel di bawah ini mengikhtisarkan aset dan liabilitas keuangan berbunga Bank dan Entitas Anak pada nilai tercatat, yang dikategorikan menurut mana yang terlebih dahulu antara tanggal repricing secara kontraktual (contractual repricing) atau tanggal jatuh tempo: ASET Giro pada Bank Indonesia Giro pada bank lain Penempatan pada bank lain dan Bank Indonesia Efek-efek Obligasi Pemerintah Efek-efek yang dibeli dengan janji dijual kembali Kredit yang diberikan Jumlah aset keuangan LIABILITAS Simpanan nasabah Giro Tabungan Deposito Simpanan dari bank lain Giro dan tabungan Interbank call money and deposito berjangka Efek-efek yang dijual dengan janji dibeli kembali Efek-efek yang diterbitkan Pinjaman yang diterima Pinjaman subordinasi Jumlah liabilitas keuangan Sub Jumlah Tagihan derivatif Liabilitas derivatif Jumlah gap repricing suku bunga 1 bulan atau kurang/ 1 month or Less Bunga mengambang/Floating rate Lebih dari Lebih dari 1 bulan 3 bulan tapi tidak tapi tidak lebih dari lebih dari 3 bulan/ 1 tahun/ Over 1 month Over 3 months to 3 months to 1 year Lebih dari 1 tahun/ Over 1 year Bank CIMB Niaga and Subsidiary’s exposure to interest rate risk The following table summarises the Bank and Subsidiary interest earning financial assets and interest bearing financial liabilities at carrying amounts which are categorised by the earlier of contractual repricing date or maturity dates: 2015 1 bulan atau kurang/ 1 month or Less Lebih dari 1 bulan tapi tidak lebih dari 3 bulan/ Over 1 month to 3 months Bunga tetap/Fixed rate Lebih dari 3 bulan tapi tidak lebih dari 1 tahun/ Over 3 months to 1 year Lebih dari 1 tahun tapi tidak lebih dari 2 tahun/ Over 1 year to 2 years Lebih dari 2 tahun/ Over 2 years Jumlah/ Total 14,605,403 - - - - - - - - 14,605,403 2,348,027 - - - - - - - - 2,348,027 - - - 5,898,585 499,222 680,381 847,230 354,933 2,243,015 3,677,533 1,465,134 504,178 4,804,543 10,832,868 5,898,585 9,859,144 16,049,893 16,953,430 149,832,067 149,832,067 - - 174,552 4,321,247 11,573,987 258,091 1,460,254 462,508 6,383,056 1,223,297 3,192,609 14,635,768 30,273,179 174,552 170,732,978 219,668,582 43,123,113 - 40,443,603 - - - 55,826,398 22,795,965 10,106,086 808,301 5,429,611 40,443,603 43,123,113 94,966,361 - - - 2,300,760 - - - - - - - - 64,398 773,899 221,127 1,389 3,353,650 1,996,167 4,476,921 6,684,630 2,969,774 200,314,979 1,996,167 352,786 45,472,066 1,509,590 44,253,953 25,000 25,000 839,296 839,296 258,690 58,377,925 199,975 116,464 23,176,802 2,032,821 637,545 13,550,351 1,397,298 1,391,944 1,374,652 5,193,322 846,827 1,553,315 1,595,122 9,426,264 (28,518,636) 105,578,114 (25,000) (839,296) (46,803,938) (21,716,548) (7,167,295) (2,000,713) 20,846,915 19,054,091 8,789,536 (18,254,081) - 105,578,114 - (25,000) - - (839,296) (46,803,938) b. Sensitivitas terhadap laba bersih - (7,167,295) 1,000,000 - (1,000,713) - 20,846,915 LIABILITIES Deposits from customers Demand deposits Saving deposits Time deposits Deposits from other banks Demand and saving deposits Inter-bank call money and time deposits Securities sold under repurchase agreement Marketable securities issued Borrowings Subordinated loans Total financial liabilities 19,353,603 Sub Total 20,054,091 8,789,536 Derivative receivables Derivative payables 30,618,158 Total interest repricing gap b. Sensitivity to net income The table below shows the sensitivity of Bank CIMB Niaga and Subsidiary’s consolidated net income to movement of interest rates as at 31 December 2017, 2016, and 2015 : 2017 Peningkatan/ Increased by 100bps Penurunan/ Decreased by 100bps 271,414 Peningkatan/ Increased by 100bps Pengaruh terhadap laba bersih - (21,716,548) Tabel di bawah ini mengikhtisarkan sensitivitas laba bersih konsolidasian Bank CIMB Niaga dan Entitas Anak pada tanggal 31 Desember 2017, 2016, dan 2015 atas perubahan tingkat suku bunga yaitu: Pengaruh terhadap laba bersih 2,300,760 2,292,837 ASSETS Current accounts with Bank Indonesia Current accounts with other banks Placement with other banks and Bank Indonesia Marketable securities Government Bonds Securities purchased under resale agreements Loans Total financial assets 2016 (271,414) Impact to net income Penurunan/ Decreased by 100bps 436,379 (436,379) Impact to net income Halaman – 5/224– Page 884 Annual Report CIMB NIAGA 2017
  885. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 54. RISIKO TINGKAT SUKU BUNGA (lanjutan) 54. INTEREST RATE RISK (continued) b. Sensitivitas terhadap laba bersih (lanjutan) b. Sensitivity to net income (continued) Tabel di bawah ini mengikhtisarkan sensitivitas laba bersih Bank CIMB Niaga dan Entitas Anak pada tanggal 31 Desember 2017, 2016, dan 2015 atas perubahan tingkat suku bunga yaitu: The table below shows the sensitivity of Bank CIMB Niaga and Subsidiary’s net income to movement of interest rates as at 31 December 2017, 2016, and 2015: 2015 Peningkatan/ Increased by 100bps Pengaruh terhadap laba bersih 781,991 c. Sensitivitas keuntungan/(kerugian) yang belum direalisasi atas efek-efek dalam kelompok tersedia untuk dijual. Tabel di bawah ini mengikhtisarkan sensitivitas keuntungan/(kerugian) yang belum direalisasi atas efekefek dalam kelompok tersedia untuk dijual Bank CIMB Niaga dan Entitas Anak pada tanggal 31 Desember 2017, 2016, dan 2015 atas perubahan tingkat suku bunga yaitu: Peningkatan/ Increased by 100bps Pengaruh terhadap keuntungan/(kerugian) yang belum direalisasi atas efek-efek dalam kelompok tersedia untuk dijual c. Impact to net income Sensitivity to unrealised gains/(losses) on available-forsale marketable securities. The table below shows the sensitivity of Bank CIMB Niaga and Subsidiary’s unrealised gains/(losses) on available-for-sale marketable securities to movement of interest rates as at 31 December 2017, 2016, and 2015: 2017 Penurunan/ Decreased by 100bps 2016 343,123 2015 Impact to unrealised gains/(losses) on available-for-sale marketable securities Penurunan/ Decreased by 100bps (271,352) Peningkatan/ Increased by 100bps Pengaruh terhadap keuntungan/(kerugian) yang belum direalisasi atas efek-efek dalam kelompok tersedia untuk dijual (781,991) (343,123) Peningkatan/ Increased by 100bps Pengaruh terhadap keuntungan/(kerugian) yang belum direalisasi atas efek-efek dalam kelompok tersedia untuk dijual Penurunan/ Decreased by 100bps 271,352 Impact to unrealised gains/(losses) on available-for-sale marketable securities Penurunan/ Decreased by 100bps (456,690) 456,690 Impact to unrealised gains/(losses) on available-for-sale marketable securities Halaman – 5/225– Page Annual Report CIMB NIAGA 2017 885
  886. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 54. RISIKO TINGKAT SUKU BUNGA (lanjutan) 54. INTEREST RATE RISK (continued) c. Sensitivitas keuntungan/(kerugian) yang belum direalisasi atas efek-efek dalam kelompok tersedia untuk dijual (lanjutan) c. Sensitivity to unrealised gains/(losses) on available-forsale marketable securities (continued) Proyeksi di atas mengasumsikan bahwa seluruh variabel lainnya adalah konstan dan berdasarkan tanggal pelaporan yang konstan, serta seluruh posisi hingga jatuh tempo. The projection assumes that all other variables are held constant and based on constant reporting date position, and that all positions until maturity. Sensitivitas atas laba bersih dan keuntungan/(kerugian) yang belum direalisasi atas efek-efek dalam kelompok tersedia untuk dijual, tidak memperhitungkan efek dari lindung nilai dan tindakan-tindakan Bank CIMB Niaga untuk mengurangi risiko atas tingkat suku bunga. Dalam kenyataannya, Bank CIMB Niaga secara proaktif melakukan mitigasi atas efek prospektif pergerakan tingkat suku bunga. The sensitivities of net income and unrealised gains/(losses) on available-for-sale marketable securities do not take into account the effects of hedging and Bank CIMB Niaga’s actions to reduce interest rate risks. In practice, Bank CIMB Niaga proactively seeks to mitigate the effect of prospective interest movements. 55. RISIKO MATA UANG 55. CURRENCY RISK Risiko mata uang asing timbul dari adanya posisi laporan keuangan dan komitmen dan kontinjensi (off-balance sheet) baik di sisi aset maupun liabilitas. Posisi mata uang asing Bank CIMB Niaga dapat dikelompokkan dalam dua aktivitas yaitu: trading book, yang dilakukan dalam rangka perolehan keuntungan transaksi mata uang asing, dan banking book, yang dilakukan dalam rangka mengendalikan Posisi Devisa Neto Bank CIMB Niaga secara keseluruhan. Foreign currency risks arise from statement of financial position and commitments and contingencies (off-balance sheet) both on the assets and liabilities. Bank CIMB Niaga’s foreign currency position is divided into two activities: the trading book, which is managed to generate foreign exchange gains, and the banking book, which is managed to control Bank CIMB Niaga’s overall Net Open Position. Maksimum Posisi Devisa Neto yang harus dijaga oleh bank-bank di Indonesia adalah 20% dari modal. Sehubungan dengan hal ini, Bank CIMB Niaga memiliki kebijakan internal untuk mengelola Posisi Devisa Neto-nya. Selain menggunakan pendekatan nominal (Posisi Devisa Neto), pengukuran terhadap eksposur risiko mata uang dilakukan juga dengan menggunakan metode pengukuran risiko pasar yang lebih risk sensitive, yaitu menggunakan “Value at Risk” (VaR). Sebagai bagian dari Market Risk Management Process, secara harian limit risiko pasar pada trading book dipantau dan dilaporkan kepada manajemen. The maximum Net Open Position to be maintained by Indonesian banks is 20% of capital. In relation to this, Bank CIMB Niaga has internal policies to manage its Net Open Position. In addition to nominal approach (Net Open Position), the market risk measurement on currency risk exposure also use more sensitive measurement method, that is “Value at Risk” (VaR). As part of Market Risk Management Process, market risk limits on trading book are monitored and reported to management on daily basis. Halaman – 5/226– Page 886 Annual Report CIMB NIAGA 2017
  887. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 55. RISIKO MATA UANG (lanjutan) 55. CURRENCY RISK (continued) a. Posisi Devisa Neto a. Net Open Position Berikut adalah Posisi Devisa Neto Bank CIMB Niaga dan Entitas Anak, dalam nilai absolut pada tanggal 31 Desember 2017, 2016, dan 2015 dalam mata uang (ekuivalen Rupiah). Nilai ini adalah yang dilaporkan kepada Bank Indonesia pada tanggal laporan posisi keuangan sebagai bagian dari laporan harian. Below is the Net Open Position of Bank CIMB Niaga and Subsidiary, in absolute amounts, as at 31 December 2017, 2016, and 2015 in currency (Rupiah equivalent). These amounts are reported to Bank Indonesia on the statement of financial position’s date as part of daily reporting. 2017 Dolar Amerika Serikat Aset dan (Komitmen) dan Jumlah (liabilitas)/ kontinjensi/ absolut/ Assets and (Commitments) and Absolute (liabilities) contingents amount (1,217,922) 1,313,518 95,596 Euro 21,573 7,617 29,190 Euro Dolar Hong Kong 17,581 - 17,581 Hong Kong Dollar Yen Jepang 8,848 11,603 20,451 Japanese Yen Dolar Selandia Baru 6,202 (1,007) 5,195 New Zealand Dollar United States Dollar Ringgit Malaysia (3,562) - 3,562 Malaysian Ringgit Dolar Singapura 34,749 (48,418) 13,669 Singapore Dollar Dolar Australia (455,240) 432,268 22,972 Australian Dollar Dolar Kanada 3,117 - 3,117 Canadian Dollar Pound Sterling (30,848) 6,414 24,434 Pound Sterling Lainnya 42,289 16,715 59,004 Others 294,772 2016 Aset dan (Komitmen) dan Jumlah (liabilitas)/ kontinjensi/ absolut/ Assets and (Commitments) and Absolute (liabilities) contingents amount Dolar Amerika Serikat (254,276) (155,363) 409,639 United States Dollar Euro (329,421) 351,194 21,773 Euro Dolar Hong Kong Yen Jepang Dolar Selandia Baru 21,829 - 21,829 Hong Kong Dollar 1,340 3,452 4,792 Japanese Yen 8,966 936 9,902 New Zealand Dollar Ringgit Malaysia (11,079) - 11,079 Malaysian Ringgit Dolar Singapura 43,784 (48,174) 4,390 Singapore Dollar 250,089 Dolar Australia (255,807) Dolar Kanada 1,938 Pound Sterling (22,619) 51,263 Lainnya 5,718 Australian Dollar 1,938 Canadian Dollar 4,477 18,142 Pound Sterling 1,398 52,661 Others - 561,863 Halaman – 5/227– Page Annual Report CIMB NIAGA 2017 887
  888. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 55. RISIKO MATA UANG (lanjutan) 55. CURRENCY RISK (continued) a. Posisi Devisa Neto (lanjutan) a. Berikut adalah Posisi Devisa Neto Bank CIMB Niaga dam Entitas Anak, dalam nilai absolut pada tanggal 31 Desember 2017, 2016, dan 2015 dalam mata uang (ekuivalen Rupiah). Nilai ini adalah yang dilaporkan kepada Bank Indonesia pada tanggal laporan posisi keuangan sebagai bagian dari laporan harian. (lanjutan) Net Open Position (continued) Below is the Net Open Position of Bank CIMB Niaga and Subsidiary, in absolute amounts, as at 31 December 2017, 2016, and 2015 in currency (Rupiah equivalent). These amounts are reported to Bank Indonesia on the statement of financial position’s date as part of daily reporting. (continued) 2015 Aset dan Dolar Amerika Serikat (Komitmen) dan Jumlah (liabilitas)/ kontinjensi/ absolut/ Assets and (Commitments) and Absolute (liabilities) contingents amount 1,397,104 (1,498,156) 101,052 Euro 92,434 (26,998) 65,436 Euro Dolar Hong Kong 18,351 - 18,351 Hong Kong Dollar Yen Jepang (8,747) 6,444 2,303 Japanese Yen 9,162 - 9,162 New Zealand Dollar 11,017 - 11,017 Malaysian Ringgit Dolar Selandia Baru Ringgit Malaysia Dolar Singapura United States Dollar 666 (63,251) 62,585 Singapore Dollar Dolar Australia 160,872 (172,751) 11,879 Australian Dollar Dolar Kanada (682) 682 Canadian Dollar Pound Sterling (18,478) 18,667 Pound Sterling Lainnya 60,034 60,034 Others (189) - 361,168 Sesuai dengan PBI No. 5/13/PBI/2003 tanggal 17 Juli 2003 sebagaimana telah diubah terakhir dengan PBI No. 17/5/PBI/2015 tanggal 29 Mei 2015, keseluruhan Posisi Devisa Neto Bank CIMB Niaga dan Posisi Devisa Neto on balance sheet terhadap modal di akhir hari kerja pada tanggal 31 Desember 2017 masing-masing adalah 0,80% dan 5,10% (2016: 1,66% dan 2,19%; 2015: 1,19% dan 5,69%). In accordance with PBI No. 5/13/PBI/2003 dated 17 July 2003 and the latest amendment with No. 17/5/PBI/2015 dated 29 May 2015, the overall Net Open Position of Bank CIMB Niaga and on balance sheet Net Open Position as at the closing of business day against capital as at 31 December 2017 were 0.80% and 5.10%, respectively (2016: 1.66% and 2.19%; 2015: 1.19% and 5.69%). Halaman – 5/228– Page 888 Annual Report CIMB NIAGA 2017
  889. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 55. RISIKO MATA UANG (lanjutan) 55. CURRENCY RISK (continued) b. Eksposur Bank CIMB Niaga dan Entitas Anak atas risiko nilai tukar mata uang asing b. Bank CIMB Niaga’s and subsidiary exposure to foreign currency exchange risk Tabel dibawah ini mengikhtisarkan eksposur Bank CIMB Niaga dan Entitas Anak atas risiko nilai tukar mata uang asing pada tanggal 31 Desember 2017, 2016, dan 2015. Termasuk di dalamnya adalah instrumen keuangan Bank CIMB Niaga pada nilai tercatat, dikategorikan berdasarkan jenis mata uang. The table below summarises Bank CIMB Niaga and Subsidiary’s exposure to foreign currency exchange rate risk at 31 December 2017, 2016, and 2015. Included in the table are Bank CIMB Niaga’s financial instruments at carrying amounts, categorised by currency. 2017 Dolar Pound Amerika Sterling Serikat/ Dolar Yen Dolar Dolar Inggris/ United Singapura/ Jepang/ Australia/ Hong Kong/ Great Britain States Euro/ Singapore Japanese Australian Hong Kong Pound Dollar Euro Dollar Yen Dollar Dollar Sterling Lain-lain/ Jumlah/ Others Total Aset Kas Assets 254,398 34,636 67,855 14,658 39,191 4,820 13,860 31,608 461,026 Cash Current accounts with Giro pada Bank Indonesia Giro pada bank lain 3,053,517 1,400,343 - - 897,579 437,605 234,877 - - - 32,939 40,237 35,344 151,149 3,053,517 3,230,073 Penempatan pada bank lain dan Bank Indonesia Efek-efek Bank Indonesia Current accounts with other banks Placements with other banks and Bank 5,228,767 - - - - - - - 5,228,767 870,118 - - - - - - - 870,118 - - - - - 3,074,063 Government Bonds 272 55,748 - - - 2,608 72,941 124,783 26,705,869 2,597,572 Derivative receivables Loans Acceptance receivables - Indonesia Marketable securities Obligasi Pemerintah 3,074,045 18 Tagihan derivatif Kredit yang diberikan Tagihan akseptasi 121,902 26,382,036 2,432,638 2,199 36,245 1 321,634 - 2 1,247 - - - - - 131,716 Accrued income - - - - - - 11,960 Other assets Pendapatan yang masih harus diterima 130,467 Aset lain-lain 11,960 - Jumlah aset 42,960,191 970,679 828,342 305,555 72,130 45,057 49,204 258,306 45,489,464 Total assets 100,192 2,387 1,314 300 347 6 374 3,621 108,541 Obligations due immediately 12,945,142 148,452 227,419 104,395 8,656 9,821 4,540 12,766 13,461,191 Demand deposits 5,431,218 193,417 423,365 92,632 345,685 17,649 69,232 45,234 6,618,432 Saving deposits 19,219,261 12,565 136,746 289 172,071 - 5,068 59,792 19,605,792 Liabilitas Liabilitas segera Liabilities Simpanan dari nasabah Giro Tabungan Deposito Deposits from customers Simpanan dari bank lain Time deposits Deposits from other Banks Demand and saving Giro dan tabungan Inter-bank call money dan 314,382 553,263 245 40,564 - - 1,834 - 910,288 Deposito berjangka 76 Liabilitas akseptasi Liabilitas derivatif Pinjaman yang diterima Liabilitas lain-lain Jumlah liabilitas 2,432,638 20,455 3,257,611 201,273 43,922,248 36,245 2,789 949,118 1,198 8,405 798,692 55,748 9 2,769 296,706 - - - (962,057) 21,561 29,650 8,849 3,656,475 149,347 42,649 9,267 - - - - 76 376 527,135 27,476 349 81,397 72,941 323 258 16,481 211,416 2,597,572 21,985 3,257,869 232,442 46,814,188 (455,005) 17,581 (32,193) 46,890 (1,324,724) - - 11,608 3,869,346 Posisi keuangan neraca - bersih Rekening administratif - bersih deposits Inter-bank call money and Time deposits Acceptance payables Derivative payables Borrowings Other liabilities Total liabilities On balance sheet - financial position - net Administrative accounts - net Halaman – 5/229– Page Annual Report CIMB NIAGA 2017 889
  890. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 55. RISIKO MATA UANG (lanjutan) 55. CURRENCY RISK (continued) b. Eksposur Bank CIMB Niaga dan Entitas Anak atas risiko nilai tukar mata uang asing (lanjutan) b. Bank CIMB Niaga and Subsidiary’s exposure to foreign currency exchange risk (continued) Tabel dibawah ini mengikhtisarkan eksposur Bank CIMB Niaga dan Entitas Anak atas risiko nilai tukar mata uang asing pada tanggal 31 Desember 2017, 2016, dan 2015. Termasuk di dalamnya adalah instrumen keuangan Bank CIMB Niaga pada nilai tercatat, dikategorikan berdasarkan jenis mata uang (lanjutan) The table below summarises Bank CIMB Niaga and Subsidiary’s exposure to foreign currency exchange rate risk at 31 December 2017, 2017, and 2015. Included in the table are Bank CIMB Niaga’s financial instruments at carrying amounts, categorised by currency (continued) Aset Kas Giro pada Bank Indonesia Giro pada bank lain Penempatan pada bank lain dan Bank Indonesia Efek-efek Obligasi Pemerintah Tagihan derivatif Kredit yang diberikan Tagihan akseptasi Pendapatan yang masih harus diterima Aset lain-lain Jumlah aset Liabilitas Liabilitas segera Simpanan dari nasabah Giro Tabungan Deposito Simpanan dari bank lain Giro dan tabungan Inter-bank call money dan Deposito berjangka Liabilitas akseptasi Liabilitas derivatif Pinjaman yang diterima Liabilitas lain-lain Jumlah liabilitas Posisi keuangan neraca - bersih Rekening administratif - bersih Dolar Amerika Serikat/ United States Dollar 283,575 2,785,854 291,393 Dolar Singapura/ Singapore Dollar Euro/ Euro 19,950 - 92,819 - Yen Jepang/ Japanese Yen 6,148 - 90,820 300,171 140,148 - 7 7,948 Dolar Australia/ Australian Dollar Dolar Hong Kong/ Hong Kong Dollar Pound Sterling Inggris/ Great Britain Pound Sterling 1,779 6,804 20,145 - - 405,765 - - 2,785,854 77,877 1,441,157 260 72,395 3,444,423 205,956 2,139,774 312,635 25,072,832 2,959,226 Assets Cash Current accounts with Bank Indonesia Current accounts with other banks Placements with other banks and Bank Indonesia Marketable securities Government Bonds Derivative receivables Loans Acceptance receivables Accrued income Other assets Total assets 31,522 462,742 1,985 20,880 122,431 858,198 37,882,270 1 133,651 1,309 884,836 154,251 425,910 32,232 111,334 182,054 123,741 858,198 39,806,538 72,452 400 925 203 10,347 7 220 2,085 86,639 12,260,163 5,674,317 13,634,680 203,763 223,369 8,113 248,721 523,748 56,193 65,792 44,312 276 18,097 514,193 137,445 1,425 8,970 - 8,258 119,697 5,780 6,471 35,928 779 12,812,690 7,144,534 13,843,266 340,140 3,339 225 33,428 - 75 2,858,003 28,772 1,014,889 184,986 36,068,477 20,880 3,213 463,077 - 7,661 837,481 7,948 9 900 152,868 1,813,793 (329,426) 47,355 1,383 2,533,367 135,569 36,886 2,884 8 - 104,530 Jumlah/ Total 139,679 2,363 348,495 - - - - 30,453 Lain-lain/ Others 3,304,744 205,956 2,139,759 310,005 24,722,352 2,858,003 15 - 2016 - - 1,576 681,669 10,402 - 7 133,962 (255,759) 21,830 - 11 - - 377,132 72,395 121 13,174 130,953 75 2,959,226 28,921 1,014,889 211,517 38,478,889 (22,628) 51,101 1,327,649 - 7,784 2,716,490 Liabilities Obligations due immediately Deposits from customers Demand deposits Saving deposits Time deposits Deposits from other Banks Demand and saving deposits Inter-bank call money and Time deposits Acceptance payables Derivative payables Borrowings Other liabilities Total liabilities On balance sheet financial position - net Administrative accounts - net Halaman – 5/230– Page 890 Annual Report CIMB NIAGA 2017
  891. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 55. RISIKO MATA UANG (lanjutan) 55. CURRENCY RISK (continued) b. Eksposur Bank CIMB Niaga dan Entitas Anak atas risiko nilai tukar mata uang asing (lanjutan) b. Tabel dibawah ini mengikhtisarkan eksposur Bank CIMB Niaga dan Entitas Anak atas risiko nilai tukar mata uang asing pada tanggal 31 Desember 2017, 2016, dan 2015. Termasuk di dalamnya adalah instrumen keuangan Bank CIMB Niaga pada nilai tercatat, dikategorikan berdasarkan jenis mata uang (lanjutan) Bank CIMB Niaga’s and subsidiary exposure to foreign currency exchange risk (continued) The table below summarises Bank CIMB Niaga and Subsidiary’s exposure to foreign currency exchange rate risk at 31 December 2017, 2016, and 2015. Included in the table are Bank CIMB Niaga’s financial instruments at carrying amounts, categorised by currency (continued) 2015 Dolar Pound Amerika Sterling Serikat/ Dolar Yen Dolar Dolar Inggris/ United Singapura/ Jepang/ Australia/ Hong Kong/ Great Britain States Euro/ Singapore Japanese Australian Hong Kong Pound Lain-lain/ Jumlah/ Dollar Euro Dollar Yen Dollar Dollar Sterling Others Total Aset Kas Assets 297,486 20,210 176,144 9,188 43,118 3,719 6,288 32,572 588,725 Cash Current accounts with Giro pada Bank Indonesia 3,028,370 - - - - - - - 3,028,370 Bank Indonesia Current accounts with Giro pada bank lain 482,461 420,665 325,977 135,314 502,349 16,138 34,231 89,695 2,006,830 other banks Placements with other Penempatan pada bank lain dan Bank Indonesia Efek-efek Obligasi Pemerintah Tagihan derivatif Kredit yang diberikan Tagihan akseptasi banks and Bank 5,565,834 50,148 - - - - - - - 5,565,834 341 - - - - - - 50,489 - 2,140,687 - - 76,720 - 845 24,931,161 2,108 3,161,086 14,285 457,668 - 5 74 Indonesia Marketable securities - - - 2,140,687 Government Bonds - - - 77,644 Derivative receivables - - - - - 25,390,937 Loans 25,244 - - - 24,495 3,225,110 Acceptance receivables Pendapatan yang masih 152,803 56 1,904 Aset lain-lain harus diterima 899,380 1 - 2 19 - 1 - - Jumlah aset 40,786,136 457,666 962,538 169,753 87,898 1,026 888 13,966,802 194,689 Tabungan 5,846,538 Deposito 10,751,161 154,870 Accrued income 899,382 545,561 19,857 40,555 Other assets 146,812 43,128,878 Total assets 269 256 14 154 698 91,203 Obligations due immediately 392,969 101,893 6,456 124 10,566 6,423 14,679,922 141,396 515,633 34,830 Demand deposits 295,850 1,368 43,859 32,631 6,912,105 13,990 42,829 704 Saving deposits 81,972 - 4,592 2,671 10,897,919 - 36 50 - Liabilitas Liabilitas segera Liabilities Simpanan dari nasabah Giro Deposits from customers Simpanan dari bank lain Time deposits Deposits from other Banks Demand and saving Giro dan tabungan 1,293,273 354 229 15,096 - - - - 1,308,952 Inter-bank call money dan Deposito berjangka Liabilitas akseptasi Liabilitas derivatif Pinjaman yang diterima Liabilitas lain-lain Jumlah liabilitas 77 3,161,086 - - - - - - - 14,285 - 25,244 - - - 24,494 22,050 - 2,571,672 - - 47 192,630 1,059 37,893,187 366,799 55 77 Acceptance payables Derivative payables - - - - 22,152 - - - - - 2,571,672 Borrowings 4,626 410 201 - Other liabilities 957,221 178,501 384,735 1,506 11 14,006 212,943 59,182 80,923 39,922,054 Total liabilities On balance sheet 2,892,949 90,867 5,317 (8,748) 1,924,115 63,786 39,785 26,391 160,826 18,351 (18,627) 65,889 3,206,824 financial position - net - - 21,833 2,075,910 accounts - net Rekening administratif - bersih Time deposits 3,225,109 Posisi keuangan neraca - bersih deposits Inter-bank call money and Administrative - Halaman – 5/231– Page Annual Report CIMB NIAGA 2017 891
  892. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 55. RISIKO MATA UANG (lanjutan) 55. CURRENCY RISK (continued) c. Sensitivitas terhadap laba bersih atas perubahan nilai tukar mata uang asing c. Tabel di bawah ini mengikhtisarkan sensitivitas laba bersih konsolidasian Bank CIMB Niaga dan Entitas Anak pada tanggal 31 Desember 2017, 2016, dan 2015 atas perubahan nilai tukar mata uang asing yaitu: The table below shows the sensitivity of Bank CIMB Niaga and Subsidiary’s consolidated net income to movement of foreign exchange rates as at 31 December 2017, 2016, and 2015: Peningkatan/ Increased by 5% Pengaruh terhadap laba bersih 2017 Penurunan/ Decreased by 5% (78,661) Peningkatan/ Increased by 5% Pengaruh terhadap laba bersih 2016 78,661 Peningkatan/ Increased by 5% 2015 Impact to net income Penurunan/ Decreased by 5% (37,204) Pengaruh terhadap laba bersih Sensitivity to net income to movement of foreign exchange rates 37,204 Impact to net income Penurunan/ Decreased by 5% 86,087 Proyeksi di atas mengasumsikan bahwa perubahan nilai tukar mata uang asing bergerak pada jumlah yang sama sehingga tidak mencerminkan perubahan potensial kepada laba atas perubahan beberapa nilai tukar mata uang asing sementara lainnya tidak berubah. Proyeksi juga mengasumsikan bahwa seluruh variabel lainnya adalah konstan dan berdasarkan tanggal pelaporan yang konstan serta seluruh posisi hingga jatuh tempo. (86,087) Impact to net income The projection assumes that foreign exchange rates move by the same amount and, therefore, do not reflect the potential impact on profit of some rates changing while others remain unchanged. The projections also assume that all other variables are held constant and are based on a constant reporting date position and that all positions run to maturity. Halaman – 5/232– Page 892 Annual Report CIMB NIAGA 2017
  893. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 56. RISIKO LIKUIDITAS 56. LIQUIDITY RISK Kebijakan likuiditas Bank CIMB Niaga didasarkan untuk memastikan bahwa setiap kebutuhan dana di saat ini, maupun di masa datang baik untuk kondisi normal maupun kondisi stres dapat dipenuhi. Dalam melaksanakan pengendalian risiko likuiditas, dilakukan dengan beberapa pendekatan, yaitu: liquidity gap analysis, liquidity stress test analysis, dan liquidity ratio analysis. Dimana untuk mengendalikan risiko likuiditas tersebut ditetapkan beberapa limit dan parameter. Disamping itu dalam mengendalikan risiko likuiditas juga dilakukan pemantauan atas indikator-indikator internal dan eksternal. Untuk menghadapi kondisi stres juga ditetapkan contingency funding plan untuk penanganan kondisi tersebut. Jumlah aset lancar yang memadai dipertahankan untuk menjamin kebutuhan likuiditas yang terkendali setiap waktu. Hal ini semua sejalan dengan Surat Edaran Bank Indonesia No. 11/16/DPNP/2009 tentang manajemen risiko likuiditas. Bank CIMB Niaga’s liquidity policy is based on ensuring that current and future funding requirements can be met both in normal or stress condition. In implementation of liquidity risk management, there are some variety of methods, such as: liquidity gap analysis, liquidity stress test analysis, and liquidity ratio analysis. Whereas in managing liquidity risk, Bank CIMB Niaga sets some limits and parameters. Bank CIMB Niaga is also monitoring the internal and external indicators in managing liquidity risk. Bank CIMB Niaga also sets contingency funding plan that would be used to handle or solve the crisis condition. Appropriate level of liquid assets is held to ensure that a prudent level of liquidity is maintained at all times. This is in line with Bank Indonesia’s Circular Letter No.11/16/DPNP/2009 regarding liquidity risk management. Pengelolaan likuiditas dan aset-liabilitas dilakukan dibawah koordinasi Asset Liability Committee (ALCO) yang setiap bulannya melakukan rapat dengan melibatkan unit bisnis, tresuri, kredit, dan unit-unit lain yang relevan, untuk memastikan tercapainya posisi likuiditas pada tingkat yang diharapkan. Liquidity and asset-liability management is under the coordination of the Asset Liability Committee (ALCO) who holds monthly meetings involving business units, treasury, credit, and other relevant units to ensure the achievement of the expected liquidity position. Pengelolaan likuiditas Bank CIMB Niaga ditekankan pada penyesuaian arus dana masuk dan keluar. Kesenjangan arus dana diantisipasi dengan memelihara aset likuid tingkat pertama yang berupa pemeliharaan cadangan wajib serta efek-efek jangka pendek yang sangat likuid. Aset likuid tingkat dua dipelihara melalui penempatan dana jangka pendek di bank lain, efek-efek, dan obligasi pemerintah dalam kelompok tersedia untuk dijual. Pengelolaan likuiditas juga dilakukan melalui pengelolaan struktur sumber dana dengan memperhatikan limit konsentrasi deposan. Selain itu, Bank CIMB Niaga senantiasa memelihara kemampuannya untuk melakukan akses ke pasar uang dengan memelihara hubungan dengan bank-bank koresponden. Bank CIMB Niaga’s liquidity management focuses on cash inflow and outflow. The gap in cash flow is anticipated through managing the first tier liquid assets such as maintenance of reserve requirements and highly liquid short term marketable securities. Second tier liquid assets are managed through short term placements with other banks, available-for-sale marketable securities, and government bonds. Liquidity management is also performed through managing the structure of funding by implementing proper threshold on the concentrations of depositors. In addition, Bank CIMB Niaga maintains its ability to access the financial market by maintaining its relationship with correspondence banks. Halaman – 5/233– Page Annual Report CIMB NIAGA 2017 893
  894. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 56. RISIKO LIKUIDITAS (lanjutan) 56. LIQUIDITY RISK (continued) Tabel jatuh tempo berikut ini menyajikan informasi mengenai perkiraan jatuh tempo dari aset dan liabilitas discounted sesuai kontrak menjadi arus kas masuk atau keluar pada 31 Desember 2017, 2016, dan 2015: The maturity tables below provide information about maturities of discounted assets and liabilities on contractual basis which are converted into cash flow in or out as at 31 December 2017, 2016, and 2015: 2017 Keterangan ASET Kas Giro pada Bank Indonesia Giro pada bank lain - bruto Penempatan pada bank lain dan Bank Indonesia - bruto Efek-efek - bruto Obligasi Pemerintah Tagihan derivatif - bruto Kredit yang diberikan - bruto Piutang pembiayaan konsumen - bruto Piutang sewa pembiayaan - bruto Tagihan akseptasi - bruto Penyertaan - bruto Aset tetap - setelah dikurangi akumulasi penyusutan Aset tidak berwujud setelah dikurangi akumulasi penyusutan Aset yang diambil alih - bruto Uang muka pajak Aset pajak tangguhan - bersih Pendapatan yang masih harus diterima Beban dibayar dimuka Aset lain-lain - bruto Cadangan kerugian penurunan nilai Jumlah LIABILITAS Liabilitas segera Simpanan dari nasabah Simpanan dari bank lain Efek-efek yang dijual dengan janji dibeli kembali Liabilitas derivatif Liabilitas akseptasi Efek-efek yang diterbitkan Pinjaman yang diterima Hutang pajak Beban yang masih harus dibayar dan liabilitas lain-lain Liabilitas imbalan kerja Pinjaman subordinasi Perbedaan jatuh tempo Posisi neto setelah cadangan kerugian penurunan nilai Jumlah/ Total Tidak mempunyai kontrak jatuh tempo/ Dibayarkan sesuai permintaan/ No contractual maturity/ Repayable on demand Kurang dari atau sama dengan 1 bulan/ Less than or equal 1 month >1-≤3 bulan/ months > 3 - ≤ 12 bulan/ months >1- ≤5 tahun/ years Lebih dari 5 tahun/ More than 5 years 3,895,997 - 3,895,997 - - - - 11,522,696 - 11,522,696 - - - - 3,574,267 - 3,574,267 - - - - 13,323,713 13,480,610 24,971,486 280,293 181,405,722 - 13,323,713 227,585 751,539 45,507 34,401,409 2,545,146 1,929,329 12,049 19,974,943 4,605,953 3,710,086 48,778 29,406,916 5,689,300 13,924,846 173,959 48,420,573 51,599 2,502 951,103 - 423,098 6,262 1,773,507 - 1,166,699 9,278 1,450,204 - 2,068,688 1,565 10,151 - 412,626 4,655,686 49,201,881 3,710,084 19,607 4,184,965 4,464 4,464 5,119,908 5,119,908 - - - - - 1,540,265 502,420 1,814,214 177,849 1,540,265 502,420 1,814,214 177,849 - - - - - 1,191,635 1,325,541 2,173,408 274,219,144 1,325,541 2,173,408 12,658,069 859,120 69,607,037 6,234 26,670,568 31,136 40,429,050 198,913 70,487,995 - 96,232 54,366,425 Description ASSETS Cash Current accounts with Bank Indonesia Current accounts with other banks - gross Placements with other banks and Bank Indonesia - gross Marketable securities - gross Government Bonds Derivative receivables - gross Loans - gross Consumer financing receivables - gross Financing lease receivables - gross Acceptance receivables - gross Investments - gross Fixed assets - net of accumulated depreciation Intangible assets - net of accumulated depreciation Foreclosed assets - gross Prepaid tax Deferred tax assets - net Accrued income Prepaid expenses Other assets - gross (7,913,699) Allowance for impairment losses 266,305,445 Total 1,946,166 189,317,196 6,884,335 9,378,703 110,823 4,184,965 5,403,613 5,809,723 445,502 2,986,666 1,289,985 1,596,772 229,354,449 44,864,695 99,495,295 1,987,651 398,384 101,881,330 (89,223,262) 1,946,166 52,443,564 4,062,969 17,775,900 246,906 11,916,367 583,988 7,480,346 2,821 9,378,703 14,507 951,103 2,723,498 445,502 24,474 1,773,507 1,371,847 - 37,903 1,450,204 2,148,373 563,517 - 33,939 10,151 3,255,240 1,150,861 - 755,061 72,721,073 (3,114,036) 425,465 21,618,099 5,052,469 1,833,221 18,533,573 21,895,477 1,596,772 13,530,130 56,957,865 205,724 864,520 1,070,244 53,296,181 LIABILITIES Obligations due immediately Deposits from customers Deposits from other bank Securities sold under repurchase agreement Derivative payables Acceptance payables Marketable securities isssued Borrowings Taxes payable Accruals and other liabilities Employee benefits obligations Subordinated loans Maturity gap Net position, net of allowance for impairment losses 36,950,996 Halaman – 5/234– Page 894 Annual Report CIMB NIAGA 2017
  895. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 56. RISIKO LIKUIDITAS (lanjutan) 56. LIQUIDITY RISK (continued) Tabel jatuh tempo berikut ini menyajikan informasi mengenai perkiraan jatuh tempo dari aset dan liabilitas discounted sesuai kontrak menjadi arus kas masuk atau keluar pada tanggal 31 Desember 2017, 2016, dan 2015 (lanjutan): Keterangan ASET Kas Giro pada Bank Indonesia Giro pada bank lain - bruto Penempatan pada bank lain dan Bank Indonesia - bruto Efek-efek - bruto Obligasi Pemerintah Efek-efek yang dibeli dengan janji dijual kembali Tagihan derivatif - bruto Kredit yang diberikan - bruto Piutang pembiayaan konsumen - bruto Piutang sewa pembiayaan - bruto Tagihan akseptasi - bruto Penyertaan - bruto Aset tetap - setelah dikurangi akumulasi penyusutan Aset tidak berwujud setelah dikurangi akumulasi penyusutan Aset yang diambil alih - bruto Uang muka pajak Aset pajak tangguhan - bersih Pendapatan yang masih harus diterima Beban dibayar dimuka Aset lain-lain - bruto Jumlah/ Total 3,261,730 LIABILITAS Liabilitas segera Simpanan dari nasabah Simpanan dari bank lain Efek-efek yang dijual dengan janji dibeli kembali Liabilitas derivatif Liabilitas akseptasi Efek-efek yang diterbitkan Pinjaman yang diterima Hutang pajak Beban yang masih harus dibayar dan liabilitas lain-lain Liabilitas imbalan kerja Pinjaman subordinasi 2016 Kurang dari atau sama dengan 1 bulan/ Less than or equal 1 month >1-≤3 bulan/ months > 3 - ≤ 12 bulan/ months >1-≤5 tahun/ years - - - Lebih dari 5 tahun/ More than 5 years - 3,261,730 13,345,736 - 13,345,736 - - - - 1,624,152 - 1,624,152 - - - - 4,436,233 9,380,140 18,184,132 - 3,444,423 274,149 237,787 991,810 906,856 769,385 3,128,330 4,252,266 4,047,064 6,786,930 1,023,741 6,137,764 542,956 484,602 173,587,691 - 542,956 10,743 27,493,079 11,535 17,907,407 163,607 30,124,261 298,717 50,040,889 48,022,055 70,892 12,515 793,438 - 585,938 15,742 1,674,454 - 1,655,592 33,053 2,020,619 - 4,181,499 21,117 - Cadangan kerugian penurunan nilai Jumlah Tidak mempunyai kontrak jatuh tempo/ Dibayarkan sesuai permintaan/ No contractual maturity/ Repayable on demand The maturity tables below provide information about maturities of discounted assets and liabilities on contractual basis which are converted into cash flow in or out as at 31 December 2017, 2016, and 2015 (continued): - 6,493,921 82,427 4,488,511 4,464 4,464 5,269,347 5,269,347 - - - - - 1,482,297 683,610 1,639,927 296,499 1,482,297 683,610 1,639,927 296,499 - - - - - 1,320,932 1,324,270 2,452,830 250,386,407 1,324,270 2,452,830 13,153,244 951,076 52,062,676 5,053 22,868,180 77,927 41,455,655 146,540 65,522,756 - 140,336 55,323,896 Description ASSETS Cash Current accounts with Bank Indonesia Current accounts with other banks - gross Placements with other banks and Bank Indonesia - gross Marketable securities - gross Government Bonds Securities purchased under resale agreements Derivative receivables - gross Loans - gross Consumer financing receivables - gross Financing lease receivables - gross Acceptance receivables - gross Investments - gross Fixed assets - net of accumulated depreciation Intangible assets - net of accumulated depreciation Foreclosed assets - gross Prepaid tax Deferred tax assets - net Accrued income Prepaid expenses Other assets - gross (8,814,679) Allowance for impairment losses 241,571,728 Total 1,954,804 180,571,134 4,557,473 Perbedaan jatuh tempo Posisi neto setelah cadangan kerugian penurunan nilai 169,634 362,917 4,077,182 3,237,704 5,436,073 323,897 2,673,740 1,019,982 2,979,566 207,364,106 43,022,301 91,808,604 1,863,474 522,670 94,194,748 (81,041,504) 1,954,804 48,501,382 1,804,239 22,132,115 811,917 10,330,568 72,210 7,778,634 5,633 19,831 - 169,634 62,351 650,172 667,541 323,897 20,643 1,428,052 911,931 - 199,830 1,998,958 1,827,162 525,054 - 78,202 1,410,542 3,331,547 - 1,891 - 330,000 25,634,658 (2,766,478) 1,412,182 45,923 1,383,664 17,795,551 23,660,104 1,595,902 14,200,460 51,322,296 644,059 665,781 54,658,115 738,888 54,872,908 (2,810,232) LIABILITIES Obligations due immediately Deposits from customers Deposits from other bank Securities sold under repurchase agreement Derivative payables Acceptance payables Marketable securities isssued Borrowings Taxes payable Accruals and other liabilities Employee benefits obligations Subordinated loans Maturity gap Net position, net of allowance for impairment losses 34,207,622 Halaman – 5/235– Page Annual Report CIMB NIAGA 2017 895
  896. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 56. RISIKO LIKUIDITAS (lanjutan) 56. LIQUIDITY RISK (continued) Tabel jatuh tempo berikut ini menyajikan informasi mengenai perkiraan jatuh tempo dari aset dan liabilitas discounted sesuai kontrak menjadi arus kas masuk atau keluar pada tanggal 31 Desember 2017, 2016, dan 2015 (lanjutan): Keterangan ASET Kas Giro pada Bank Indonesia Giro pada bank lain - bruto Penempatan pada bank lain dan Bank Indonesia - bruto Efek-efek - bruto Obligasi Pemerintah Efek-efek yang dibeli dengan janji dijual kembali Tagihan derivatif - bruto Kredit yang diberikan - bruto Piutang pembiayaan konsumen - bruto Piutang sewa guna usaha Piutang sewa pembiayaan - bruto Tagihan akseptasi - bruto Penyertaan - bruto Aset tetap - setelah dikurangi akumulasi penyusutan Aset yang diambil alih - bruto Uang muka pajak Aset pajak tangguhan - bersih Pendapatan yang masih harus diterima Beban dibayar dimuka Aset lain-lain - bruto Cadangan kerugian penurunan nilai Jumlah LIABILITAS Liabilitas segera Simpanan dari nasabah Simpanan dari bank lain Efek-efek yang dijual dengan janji dibeli kembali Liabilitas derivatif Liabilitas akseptasi Efek-efek yang diterbitkan Pinjaman yang diterima Hutang pajak Beban yang masih harus dibayar dan liabilitas lain-lain Liabilitas imbalan kerja Pinjaman subordinasi Perbedaan jatuh tempo Posisi neto setelah cadangan kerugian penurunan nilai Jumlah/ Total Tidak mempunyai kontrak jatuh tempo/ Dibayarkan sesuai permintaan/ No contractual maturity/ Repayable on demand The maturity tables below provide information about maturities of discounted assets and liabilities on contractual basis which are converted into cash flow in or out as at 31 December 2017, 2016, and 2015 (continued): 2015 Kurang dari atau sama dengan 1 bulan/ Less than or equal 1 month >1-≤3 bulan/ months > 3 - ≤ 12 bulan/ months >1- ≤5 tahun/ years Lebih dari 5 tahun/ More than 5 years 4,240,006 - 4,240,006 - - - - 14,605,403 - 14,605,403 - - - - 2,348,027 - 2,348,027 - - - - 5,898,585 9,859,144 16,049,893 - 5,898,585 499,222 680,381 847,230 354,933 2,243,015 3,677,533 5,105,972 4,352,643 1,163,705 6,984,403 174,552 595,554 170,732,978 - 174,552 21,126 29,467,627 4,677 16,429,840 24,191 27,347,943 457,469 57,273,863 88,091 40,213,705 6,623,851 - 62,233 501,109 1,513,122 4,547,346 179,927 4,251,849 13,938 13,938 5,950 779,703 - 24,282 1,421,691 - 63,412 2,047,773 - 86,283 2,682 - - 3,361,851 934,677 1,178,558 504,578 3,361,851 934,677 1,178,558 504,578 - - 1,383,890 1,973,360 2,518,470 1,973,360 2,518,470 247,429,091 10,485,432 - 41 - - 1,077,197 - 2,400 - 27,539 - 112,605 - 164,149 - 59,860,012 19,586,162 36,944,528 71,938,863 48,614,094 Description ASSETS Cash Current accounts with Bank Indonesia Current accounts with other banks - gross Placements with other banks and Bank Indonesia - gross Marketable securities - gross Government Bonds Securities purchased under resale agreements Derivative receivables - gross Loans - gross Consumer financing receivables - gross Financing lease Financing lease receivables - gross Acceptance receivables - gross Investments - gross Fixed assets - net of accumulated depreciation Foreclosed assets - gross Prepaid tax Deferred tax assets - net Accrued income Prepaid expenses Other assets - gross Allowance for impairment losses (7,929,287) 239,499,804 786,132 178,533,077 5,654,410 1,996,167 888,704 4,190,087 4,476,921 6,684,630 152,655 2,710,802 1,126,506 2,969,774 210,169,865 37,259,226 Total 83,566,716 2,300,760 538,657 86,406,133 (75,920,701) 786,132 55,826,396 2,361,326 22,795,965 30,905 10,106,086 960,375 6,118,175 1,044 1,996,167 23,840 730,863 611,476 152,655 125,828 1,413,361 199,975 1,626,054 359,469 26,551,557 (6,965,395) 232,120 2,043,181 2,032,821 662,545 - 506,916 2,682 2,244,125 3,784,555 - 1,264,712 240,172 17,542,012 19,402,516 1,374,652 14,032,149 57,906,714 907,433 63,396,288 (3,536,276) 119,739 526,865 1,595,122 2,241,726 46,372,368 LIABILITIES Obligations due immediately Deposits from customers Deposits from other bank Securities sold under repurchase agreement Derivative payables Acceptance payables Marketable securities isssued Borrowings Taxes payable Accruals and other liabilities Employee benefits obligations Subordinated loans Maturity gap Net position, net of allowance for impairment losses 29,329,939 Halaman – 5/236– Page 896 Annual Report CIMB NIAGA 2017
  897. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 56. RISIKO LIKUIDITAS (lanjutan) 56. LIQUIDITY RISK (continued) Tabel jatuh tempo berikut ini menyajikan informasi mengenai perkiraan jatuh tempo dari liabilitas sesuai kontrak menjadi arus kas yang undiscounted pada tanggal 31 Desember 2017, 2016, dan 2015: Keterangan Liabilitas segera Simpanan dari nasabah Giro Tabungan Deposito Simpanan dari bank lain Efek-efek yang dijual dengan janji dibeli kembali Liabilitas derivatif Liabilitas akseptasi Efek-efek yang diterbitkan Pinjaman yang diterima Beban yang masih harus dibayar, liabilitas lain-lain Liabilitas imbalan kerja Pinjaman subordinasi Keterangan Liabilitas segera Simpanan dari nasabah Giro Tabungan Deposito Simpanan dari bank lain Efek-efek yang dijual dengan janji dibeli kembali Liabilitas derivatif Liabilitas akseptasi Efek-efek yang diterbitkan Pinjaman yang diterima Beban yang masih harus dibayar, liabilitas lain-lain Liabilitas imbalan kerja Pinjaman subordinasi Keterangan Liabilitas segera Simpanan dari nasabah Giro Tabungan Deposito Simpanan dari bank lain Efek-efek yang dijual dengan janji dibeli kembali Liabilitas derivatif Liabilitas akseptasi Efek-efek yang diterbitkan Pinjaman yang diterima Beban yang masih harus dibayar, liabilitas lain-lain, Liabilitas imbalan kerja Pinjaman subordinasi Jumlah/ Total 1,946,166 49,364,774 50,735,521 92,639,079 6,512,327 49,364,774 40,319,679 1,590,711 9,378,703 24,715,075 4,184,965 5,816,734 5,382,364 2,986,666 1,289,985 2,116,942 257,069,301 Jumlah/ Total 1,954,804 44,682,090 49,289,608 90,818,512 4,152,874 169,634 6,876,219 4,077,182 3,624,136 6,275,351 2,673,740 1,019,982 3,751,544 219,365,676 Jumlah/ Total 786,132 40,509,062 43,678,188 96,329,159 5,705,332 1,996,167 7,300,642 4,190,087 5,065,834 7,598,585 2,710,802 1,126,506 4,081,084 221,077,580 Kurang dari atau sama dengan 1 bulan/ Less than or equal 1 month Dibayarkan sesuai permintaan/ Repayable on demand 398,384 91,673,548 - 2017 >1-≤3 bulan/ months 1,946,166 - 522,670 87,920,244 Dibayarkan sesuai permintaan/ Repayable on demand 40,509,062 37,464,870 2,300,766 538,657 80,813,355 >1-≤5 tahun/ years - Lebih dari 5 tahun/ More than 5 years - - 3,014,083 18,334,413 249,214 4,391,742 12,513,188 601,140 2,248,931 8,709,151 3,365 389,170 274,522 - 9,378,703 11,977,588 951,103 2,112,132 4,945,400 1,773,507 68,995 1,378,705 4,684,805 1,450,204 2,209,232 1,891,527 3,105,871 10,151 3,538,507 - 1,411 - 755,061 84,368,371 425,465 43,400 30,233,182 1,833,221 126,342 29,701,401 1,947,200 19,563,176 864,520 1,529,623 >1-≤3 bulan/ months > 3 - ≤ 12 bulan/ months - >1- ≤5 tahun/ years - - 206,409 48,698,136 1,805,955 2,594,352 22,582,486 828,046 2,444,394 10,817,163 74,835 2,356,600 8,698,686 5,985 169,634 4,402,890 650,172 667,733 1,854,008 1,428,052 39,134 916,562 616,969 1,998,958 522,842 565,922 2,352 3,062,160 4,125,134 738,888 3,032 59,297,653 330,000 78,487 30,651,127 1,412,182 45,923 1,549,225 20,048,413 2,120,800 20,371,717 Kurang dari atau sama dengan 1 bulan/ Less than or equal 1 month 786,132 Description Obligations due immediately Deposits from customers Demand deposits Saving deposits Time deposits Deposits from other bank Securities sold under repurchase agreement Derivative payables Acceptance payables Marketable securities isssued Borrowings Accruals and other liabilities Employee benefits obligations Subordinated loans 2016 1,954,804 44,682,090 41,277,431 1,438,053 > 3 - ≤ 12 bulan/ months 371,916 52,807,805 4,067,897 Kurang dari atau sama dengan 1 bulan/ Less than or equal 1 month Dibayarkan sesuai permintaan/ Repayable on demand The maturity tables below provide information about maturities on contractual undiscounted cash flows of liabilities as at 31 December 2017, 2016, and 2015: Lebih dari 5 tahun/ More than 5 years 410,422 22,041 644,059 1,076,522 Description Obligations due immediately Deposits from customers Demand deposits Saving deposits Time deposits Deposits from other bank Securities sold under repurchase agreement Derivative payables Acceptance payables Marketable securities isssued Borrowings Accruals and other liabilities Employee benefits obligations Subordinated loans 2015 >1-≤3 bulan/ months - > 3 - ≤ 12 bulan/ months >1-≤5 tahun/ years - - Lebih dari 5 tahun/ More than 5 years - 321,810 56,077,580 2,363,836 1,095,430 23,193,419 31,297 1,895,768 10,696,811 1,008,347 2,265,081 6,241,612 1,086 635,229 119,737 - 1,996,167 3,169,759 730,863 13,192 614,193 2,140,331 1,413,361 257,817 1,632,444 1,109,793 2,043,181 2,281,919 712,765 880,040 2,682 2,512,906 4,639,183 719 - 907,433 3,032 66,983,997 359,469 61,634 30,185,202 1,264,712 240,172 248,021 21,501,489 2,157,306 18,699,896 526,865 1,611,091 2,893,641 Description Obligations due immediately Deposits from customers Demand deposits Saving deposits Time deposits Deposits from other bank Securities sold under repurchase agreement Derivative payables Acceptance payables Marketable securities isssued Borrowings Accruals and other liabilities Employee benefits obligations Subordinated loans Halaman – 5/237– Page Annual Report CIMB NIAGA 2017 897
  898. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 56. RISIKO LIKUIDITAS (lanjutan) 56. LIQUIDITY RISK (continued) Tabel jatuh tempo berikut ini menyajikan informasi mengenai perkiraan jatuh tempo dari rekening administratif sesuai kontrak menjadi arus kas yang undiscounted pada tanggal 31 Desember 2017, 2016, dan 2015 : Keterangan Fasilitas kredit kepada nasabah yang belum ditarik - committed Irrevocable letters of credit yang masih berjalan Garansi yang diterbitkan Keterangan Fasilitas kredit kepada nasabah yang belum ditarik - committed Irrevocable letters of credit yang masih berjalan Garansi yang diterbitkan Keterangan Fasilitas kredit kepada nasabah yang belum ditarik - committed Irrevocable letters of credit yang masih berjalan Garansi yang diterbitkan Jumlah/ Total Dibayarkan sesuai permintaan/ Repayable on demand Kurang dari atau sama dengan 1 bulan/ Less than or equal 1 month The maturity tables below provide information about maturities on contractuall undiscounted cash flows of offbalance sheet items as at 31 December 2017, 2016, and 2015 : 2017 >1- ≤3 bulan/ months > 3 - ≤ 12 bulan/ months >1-≤5 tahun/ years Lebih dari 5 tahun/ More than 5 years 12,508,689 12,508,689 - - - - - 2,713,810 4,892,293 20,114,792 2,713,810 4,892,293 20,114,792 - - - - - Jumlah/ Total Dibayarkan sesuai permintaan/ Repayable on demand Kurang dari atau sama dengan 1 bulan/ Less than or equal 1 month >1-≤3 bulan/ months > 3 - ≤ 12 bulan/ months >1- ≤5 tahun/ years Lebih dari 5 tahun/ More than 5 years 14,398,586 - - - - - 2,072,238 4,029,469 20,500,293 2,072,238 4,029,469 20,500,293 - - - - - Jumlah/ Total Kurang dari atau sama dengan 1 bulan/ Less than or equal 1 month Description Unused loan facilities granted committed Outstanding irrevocable letters of credit Guarantees issued 2015 >1-≤3 bulan/ months > 3 - ≤ 12 bulan/ months >1- ≤5 tahun/ years Lebih dari 5 tahun/ More than 5 years 10,048,882 10,048,882 - - - - - 1,444,412 4,007,392 15,500,686 1,444,412 4,007,392 15,500,686 - - - - - 57. RISIKO OPERASIONAL Outstanding irrevocable letters of credit Guarantees issued 2016 14,398,586 Dibayarkan sesuai permintaan/ Repayable on demand Description Unused loan facilities granted committed - Description Unused loan facilities granted committed Outstanding irrevocable letters of credit Guarantees issued 57. OPERATIONAL RISK Risiko operasional adalah risiko kerugian langsung ataupun tidak langsung yang terjadi karena tidak memadainya atau karena adanya kegagalan proses internal, kesalahan manusia, kegagalan sistem atau adanya masalah eksternal yang dapat mempengaruhi operasional Bank CIMB Niaga. Operational risk is the risk of direct or indirect loss resulting from inadequate or failure in internal process, people, and systems or from external problems that affect Bank CIMB Niaga’s operation. Proses pengkajian risiko dilakukan untuk menilai kecukupan pengendalian internal serta proses identifikasi dan pengukuran risiko untuk setiap proses dan produk di masing-masing unit kerja untuk memastikan kepatuhan terhadap kebijakan, peraturan, dan batasan-batasan yang dibuat oleh manajemen Bank CIMB Niaga. A risk assessment process is carried out to evaluate the adequacy of internal control and risk identification and risk measurement in every process and product in each working unit to ensure compliance with the policies, rules, and limits set down by Bank CIMB Niaga’s management. Unit pengawasan intern melakukan pemantauan yang cermat atas proses di setiap tingkatan atau unit, yang berlangsung sebelum dan sesudah dilakukannya transaksi. Internal control units closely review and monitor the process at its respective level or unit, prior and subsequent to each transaction being carried out. Halaman – 5/238– Page 898 Annual Report CIMB NIAGA 2017
  899. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 57. RISIKO OPERASIONAL (lanjutan) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 57. OPERATIONAL RISK (continued) Pengelolaan risiko operasional juga dilakukan dengan memperkuat aspek keamanan dan kehandalan operasi teknologi informasi sehingga kesalahan manusia, fraud, kesalahan proses, dan potensi kegagalan sistem yang menyebabkan terganggunya kelangsungan bisnis dapat ditekan dan diantisipasi lebih dini. Operational risk management is also performed by strengthening the security and operational aspects of information technology to reduce and prevent human error, fraud, processing errors, and system failure that affect business continuity. Bank CIMB Niaga mengembangkan dan menerapkan beberapa sistem dan perangkat Operational Risk Management (ORM). Pengembangan yang dilakukan mulai dari yang bersifat pencegahan, kecukupan terhadap kontrol sesuai dengan kondisi yang dihadapi, hingga yang sifatnya forward looking dalam melihat kemungkinan kejadian di masa depan. Dengan adanya pendekatan ini diharapkan Bank CIMB Niaga lebih komprehensif dalam mengelola risiko di bidang operasional. Salah satu sistem tersebut adalah melalui proses pelaporan bulanan, dimana berbagai unit kerja dan kantor cabang wajib melaporkan kerugian yang timbul akibat risiko operasional. Informasi ini dikonsolidasikan ke dalam satu Loss Event Database, kemudian dianalisa untuk mendapatkan suatu indikasi atau gambaran yang dipakai untuk mengantisipasi pengulangan terjadinya kerugian yang sama pada masa datang. Bank CIMB Niaga saat ini melakukan peningkatan terhadap perangkat yang digunakan untuk mengukur dan mengelola risiko operasional melalui Key Risk Indicator (KRI) dan Risk and Control Self Assessment (RCSA) serta Business Continuity Management (BCM) yang menyeluruh. Bank CIMB Niaga has developed and implemented several systems and tools for Operational Risk Management (ORM). The developments are starting from preventive, adequacy of control toward current condition, until forward looking in forecasting for the future probability. Through these approaches, Bank CIMB Niaga expected to manage the operational risk comprehensively. One of these processes is through monthly reporting which both working units and branches are required to report their losses related to operational risk. The information is consolidated into a Loss Event Database, which is analysed to obtain indicators to anticipate repeated trends. Currently, Bank CIMB Niaga is improving the tools which used to measure and manage operational risk by Key Risk Indicator (KRI) and Risk and Control Self Assessment (RCSA) and also Business Continuity Management (BCM) comprehensively. Bank CIMB Niaga mengerahkan upaya terbaik untuk mengelola risiko operasional dengan memastikan akan pentingnya pengelolaan risiko ini ditanamkan pada seluruh jajaran organisasi Bank CIMB Niaga. Bank CIMB Niaga berkomitmen penuh untuk meningkatkan kemampuan pengelolaan risiko operasional melalui penggunaan berbagai proses pengendalian, dan perangkat, serta analisa risiko yang mutakhir. Bank CIMB Niaga performs best effort to manage operational risk by ensuring the importance of managing the risk embedded at all levels of Bank CIMB Niaga’s organisation. Bank CIMB Niaga has fully committed to increase its capability in managing operational risk using several control processes, tools, and sophisticated analysis techniques. 58. AKTIVITAS FIDUSIA 58. FIDUCIARY ACTIVITIES Bank CIMB Niaga memberikan jasa kustodian dan memperoleh izin jasa kustodian berdasarkan Surat Keputusan Bapepam-LK No. Kep.71/PM/1991 tanggal 20 Agustus 1991. Bank CIMB Niaga provides a full range of custodian services and obtained a license from the Bapepam-LK under its Decision Letter No. Kep.71/PM/1991 dated 20 August 1991. Halaman – 5/239– Page Annual Report CIMB NIAGA 2017 899
  900. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 58. AKTIVITAS FIDUSIA (lanjutan) 58. FIDUCIARY ACTIVITIES (continued) Bank CIMB Niaga menyediakan jasa-jasa kustodian sebagai berikut: Bank CIMB Niaga provides a full range of custodian services, such as: a. Penyelesaian dan pengelolaan jasa transaksi efek yang berbentuk tanpa warkat; Penyimpanan efek-efek dan aset berharga lainnya; Jasa kepada perusahaan yang berkaitan dengan hakhak yang melekat pada efek-efek (corporate action); Jasa perwakilan pada rapat umum pemegang saham dan rapat umum pemegang obligasi; Jasa sub-registry untuk penyimpanan dan penyelesaian transaksi Obligasi Pemerintah dan Sertifikat Bank Indonesia; Fund accounting; dan Jasa unit registry untuk pengadministrasian produk reksadana dan unit link. a. Settlement and transaction handling services of scriptless securities; b. Safekeeping of securities and other valuable assets; c. Corporate action services related to the rights on the securities; d. Proxy services for its customer’s shareholders meetings and bondholder’s meetings; e. Sub-registry services for safekeeping and settlement transactions of Government Bonds and Certificate of Bank Indonesia; f. Fund Accounting; and g. Unit registry service to manage mutual funds and unit link. Aset yang terdapat dalam aktivitas fiduciary tidak termasuk dalam laporan keuangan konsolidasian ini. Jumlah komisi yang diterima dari pemberian jasa ini selama tahun yang berakhir 31 Desember 2017 adalah Rp 89.075 (2016: Rp 52.721; 2015: Rp 66.600 ). Assets that are held in a fiduciary activity are not included in these consolidated financial statements. Total fees received from these services for the year ended 31 December 2017 amounted to Rp 89,075 (2016: Rp 52,721; 2015: Rp 66,600). b. c. d. e. f. g. 59. RASIO KEWAJIBAN PENYEDIAAN MODAL MINIMUM (KPMM) Rasio Kewajiban Penyediaan Modal Minimum (KPMM) adalah rasio modal Bank CIMB Niaga terhadap Aset Tertimbang Menurut Risiko (Risk Weighted Assets/ RWA). Berdasarkan peraturan Bank Indonesia jumlah modal untuk risiko kredit terdiri dari modal inti (Tier I) dan modal pelengkap (Tier II) dikurangi penyertaan pada Entitas Anak. Rasio KPMM (perusahaan induk) pada tanggal 31 Desember 2017, 2016, dan 2015 adalah: 59. CAPITAL ADEQUACY RATIO (CAR) The Capital Adequacy Ratio (CAR) is the ratio of Bank CIMB Niaga’s capital over its Risk Weighted Assets (RWA). Based on Bank Indonesia regulations, the total capital for credit risk consists of core capital (Tier I) and supplementary capital (Tier II) less investments in Subsidiary. The CAR (parent company) as at 31 December 2017, 2016, and 2015 were as follows: Halaman – 5/240– Page 900 Annual Report CIMB NIAGA 2017
  901. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 59. RASIO KEWAJIBAN PENYEDIAAN MODAL MINIMUM (KPMM) (lanjutan) 59. CAPITAL ADEQUACY RATIO (CAR ) (continued) Modal: Modal inti (tier 1) Modal pelengkap (tier 2) Dikurangi: Penyertaan pada Enitas Anak Jumlah modal Aset Tertimbang Menurut Risiko Dengan mempertimbangkan risiko kredit dan operasional Dengan mempertimbangkan risiko kredit, operasional, dan pasar Rasio Kewajiban Penyediaan Modal Minimum: Dengan mempertimbangkan risiko kredit dan operasional Dengan mempertimbangkan risiko kredit, operasional, dan pasar Rasio Kewajiban Penyediaan Modal Minimum Rasio CET 1 Rasio Tier 1 Rasio Tier 2 Capital Conservation Buffer Countercyclical Buffer Capital Surcharge untuk D-SIB Rasio Kewajiban Penyediaan Modal Minimum Rasio CET 1 minimum yang diwajibkan Rasio Tier 1 minimum yang diwajibkan 2017 2016 2015 35,064,737 2,448,733 37,513,470 32,046,376 2,669,326 34,715,702 27,319,830 3,771,687 31,091,517 (778,821) (778,821) (788,295) Less: Investments in Subsidiary 36,734,649 33,936,881 30,303,222 Total capital Risk Weighted Assets With credit and operational risk charge With credit, operational, and market risk charge 198,864,610 189,970,470 185,740,375 201,564,877 191,582,646 187,565,919 Capital: Core capital (tier 1) Supplementary capital (tier 2) Capital Adequacy Ratio: 18.47% 17.86% 16.31% 18.22% 17.71% 16.16% Including credit and operational risk Including credit, operational, and market risk 17.01% 17.01% 1.21% 16.32% 16.32% 1.39% 14.15% 14.15% 2.01% Required Capital Adequacy Ratio CET 1 Ratio Tier 1 Ratio Tier 2 Ratio 1.25% 0.00% 0.50% 0.63% 0.00% 0.25% - Capital Conservation Buffer Countercyclical Buffer D-SIB Capital Surcharge 9% - <10% 4.50% 6.00% 9% - <10% 4.50% 6.00% 9% - <10% 4.50% 6.00% Required Capital Adequacy Ratio Required minimum CET 1 Ratio Required minimum Tier 1 Ratio Perhitungan Rasio Kewajiban Penyediaan Modal Minimum telah sesuai dengan Peraturan Otoritas Jasa Keuangan (OJK) Nomor 11/POJK.03/2016 tentang "Kewajiban Penyediaan Modal Minimum Bank Umum" yang berlaku sejak 2 Februari 2016 dan sebagaimana telah diubah dengan POJK Nomor 34/POJK.03/2016. Calculation of Capital Adequacy Ratio in compliance with Financial Service Authority (FSA) Regulation No.11/POJK.03/2016 concerning "Minimum Capital Adequacy of Commercial Banks" which effective since 2 February 2016 as amended by POJK No.34/POJK.03/2016. Rasio kewajiban penyediaan modal minimum Bank CIMB Niaga secara konsolidasian pada tanggal 31 Desember 2017 dengan memperhitungkan risiko kredit dan operasional adalah 18,85% (2016: 18,11%; 2015: 16,44%;) dan dengan memperhitungkan risiko kredit, operasional, dan pasar adalah 18,60% (2016: 17,96%; 2015: 16,28%). Bank CIMB Niaga’s minimum capital adequacy ratio on a consolidated basis as at 31 Desember 2017 after considering credit and operational risk is 18.85% (2016: 18.11%; 2015: 16.44%) and after considering credit, operational, and market risk is 18.60% (2016: 17.96%; 2015: 16.28%). Halaman – 5/241– Page Annual Report CIMB NIAGA 2017 901
  902. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 59. RASIO KEWAJIBAN PENYEDIAAN MODAL MINIMUM (KPMM) (lanjutan) 59. CAPITAL ADEQUACY RATIO (CAR ) (continued) Unit Usaha Syariah Sharia Business Unit Pada tanggal 2 Februari 2006, BI mengeluarkan peraturan No. 8/7/PBI/2006 tentang “Perubahan atas PBI No. 7/13/PBI/2005 tentang Kewajiban Penyediaan Modal Minimum Bank Umum berdasarkan Prinsip Syariah” yang selanjutnya diperbaharui dengan Peraturan OJK (POJK) No.21/POJK.03/2014 tanggal 18 November 2014 tentang Kewajiban Penyediaan Modal Minimum Bank Umum Syariah yang berlaku sejak 1 Januari 2015 untuk Bank Umum Syariah. Berdasarkan PBI tersebut, Unit Usaha Syariah wajib menyediakan modal minimum sebesar 8% dari Aset Tertimbang Menurut Risiko dari kegiatan usaha berdasarkan prinsip Syariah. PBI ini berlaku sejak pelaporan bulan Desember 2005. On 2 February 2006, BI issued a regulation No. 8/7/PBI/2006 concerning “Amendment of PBI No. 7/13/PBI/2005 concerning The Minimum Capital Adequacy Requirement for Commercial Banks based on Sharia Principles” which followed by FSA regulation No.21/POJK.03/2014 dated 18 November 2014 regarding Minimum Capital Requirement for Sharia Bank which effective since 1 January 2015 for Sharia Bank. Based on the regulation, Sharia Unit is required to set aside the minimum capital of 8% in respect of the Risk Weighted Assets of business based on Sharia principles. This BI regulation came into force since reporting period of December 2005. Dalam hal modal minimum Unit Usaha Syariah kurang dari 8% dari Aset Tertimbang Menurut Risiko, maka kantor pusat bank umum konvensional dari Unit Usaha Syariah wajib menambah kekurangan modal minimum sehingga mencapai 8% dari Aset Tertimbang Menurut Risiko. Risiko yang dimaksud adalah Risiko Kredit dan Risiko Pasar. Untuk memenuhi ketentuan peraturan BI ini, pada tanggal 29 Desember 2005, Unit Usaha Syariah Bank CIMB Niaga telah menambah penyertaan modalnya secara bertahap yaitu: If the minimum capital of a Sharia Unit is less than 8% of the Risk Weighted Assets, the head office of the conventional commercial bank hosting the Sharia Unit shall top up the shortfall in minimum capital to reach 8% of the Risk Weighted Assets. Risks as referred to in the regulation are Credit Risk and Market Risk. To comply with the aforementioned BI regulation, on 29 December 2005, Bank CIMB Niaga’s sharia unit has increased its capital contribution with details as follows: Tanggal Jumlah/Amount 12,500 1,000 25,000 10,000 51,500 15,000 135,000 100,000 100,000 150,000 150,000 100,000 50,000 400,000 200,000 150,000 100,000 600,000 2,350,000 30 September 2004 11 November 2005 29 Desember 2005 20 September 2006 27 Desember 2007 17 Mei 2009 22 Maret 2010 30 Juni 2011 9 Desember 2011 31 Agustus 2012 27 September 2012 17 Desember 2012 4 Juli 2013 20 April 2017 20 Juni 2017 15 September 2017 12 Desember 2017 31 Desember 2017 Jumlah Pada tanggal 31 Desember 2017, rasio KPMM Unit Usaha Syariah Bank CIMB Niaga tanpa dan dengan memperhitungkan risiko pasar masing-masing adalah 18,32% dan 18,32% (2016: 12,09% dan 12,09%; 2015: 15,31% dan 15,31%). Date 30 September 2004 11 November 2005 29 December 2005 20 September 2006 27 December 2007 17 May 2009 22 March 2010 30 June 2011 09 December 2011 31 August 2012 27 September 2012 17 December 2012 04 July 2013 20 April 2017 20 June 2017 15 September 2017 12 December 2017 31 December 2017 Total As at 31 December 2017, Bank CIMB Niaga Sharia Unit’s CAR without and with market risk charge were 18.32% and 18.32%, respectively (2016: 12.09% and 12.09%; 2015: 15.31% and 15.31%;). Halaman – 5/242– Page 902 Annual Report CIMB NIAGA 2017
  903. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 59. RASIO KEWAJIBAN PENYEDIAAN MODAL MINIMUM (KPMM) (lanjutan) 59. CAPITAL ADEQUACY RATIO (CAR) (continued) Unit Usaha Syariah (lanjutan) Sharia Business Unit (continued) Sesuai dengan PBI No.8/7/PBI/2006 tentang Kewajiban Penyediaan Modal Minimum Bank Umum berdasarkan Prinsip Syariah dinyatakan hanya berlaku sampai dengan 31 Desember 2014 maka sejak tanggal 1 Januari 2015, Unit Usaha Syariah tidak lagi memiliki kewajiban untuk menyediakan modal minimum sesuai ketentuan ini. Perhitungan Kewajiban Penyediaan Modal Minimum Bank Umum berdasarkan Prinsip Syariah ini dilakukan hanya untuk kepentingan internal. In accordance with PBI 8/7/PBI/2006, CAR based on Sharia Principles only valid until 31 December 2014 and starting 1 January 2015, the Bank no longer has an obligation to provide CAR pursuant to this. The calculation of CAR Based on Sharia Principles is done only for internal purposes. 60. STANDAR AKUNTANSI BARU 60. NEW PROSPECTIVE ACCOUNTING STANDARDS Berikut ini adalah beberapa pengesahan amandemen, penyesuaian atas ISAK dan PSAK yang telah diterbitkan oleh Dewan Standar Akuntansi Keuangan Ikatan Akuntan Indonesia (DSAK-IAI) di tahun 2016 dan 2017, namun belum berlaku efektif untuk tahun buku yang dimulai pada atau setelah tanggal 31 Desember 2017, adalah sebagai berikut: - PSAK 16: Aset Tetap. Agrikultur: Tanaman Produktif; PSAK 69: Agrikultur Amandemen PSAK 2: Laporan Arus Kas tentang Prakarsa Pengungkapan; Amandemen PSAK 46: Pajak Penghasilan tentang pengakuan Aset Paja Tangguhan untuk Rugi yang belum direalisasi; Amendemen PSAK 15: Investasi pada Entitas Asosiasi dan Ventura Bersama; Amandemen PSAK 67: Pengungkapan Kepentingan dalam Entitas lain; Amandement PSAK 13: Properti Investasi; Amandemen PSAK 53: Pembayaran Berbasis Saham ISAK 33: Transaksi Valuta Asing dan Imbalan di Muka; PSAK 71: Instrumen Keuangan; PSAK 72: Pendapatan dari Kontrak dengan Pelanggan; Amandemen PSAK 62: Kontrak Asuransi – Menerapkan PSAK 71: Instrumen Keuangan; PSAK 73: Sewa The following are amendments, improvements and interpretations of IFAS and SFAS issued by the Financial Accounting Standard Board (DSAK-IAI) in 2016 and 2017, but not yet effective for the year started on or after 31 December 2017 are as follows: - SFAS 16: Fixed Assets: Agriculture: Bearer Plants; SFAS 36: Agriculture Amendment of SFAS 2: Statements of Cash Flows – Initiative Disclosure; Amendment of SFAS 46: Income Taxes – Recognition of Deffered Tax Assets for Unrealised Losses; Amendment SFAS 15: Investment in Associates and Joint Ventures; Amendment SFAS 67: Disclosure of Interests in Other Entities; Amendment of SFAS 13: Investment Property; Amendment of SFAS 53: Share-Based Payment; ISFAS 33: Foreign Currency Transactions and Advance Considerations; SFAS 71: Financial Instruments; SFAS 72: Revenue from Contracts with Customers; Amendment of SFAS 62: Insurance Contract – Implementation of SFAS 71: Financial Instruments; SFAS 73: Leases Halaman – 5/243– Page Annual Report CIMB NIAGA 2017 903
  904. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 60. STANDAR AKUNTANSI BARU (lanjutan) 60. NEW PROSPECTIVE (continued) ACCOUNTING STANDARDS PSAK 16, PSAK 69, Amandemen PSAK 2, Amandemen PSAK 46, Amandemen PSAK 15, Amandemen PSAK 67, Amandemen PSAK 13, dan Amandemen PSAK 53 berlaku untuk tahun buku yang dimulai sejak 1 Januari 2018 dan penerapan dini diperkenankan. SFAS 16, SFAS 69, Amendment of SFAS 2, Amendment of SFAS 46, Amendment of SFAS 15, Amendment of SFAS 67, Amendment of SFAS 13, and Amendment of SFAS 53 will become effective for annual period beginning 1 January 2018 and early implementation is permitted. ISAK 33 berlaku untuk tahun buku yang dimulai sejak 1 Januari 2019 dan penerapan dini diperkenankan. ISFAS 33 will become effective for annual period beginning 1 January 2019 and early implementation is permitted. PSAK 71, PSAK 72, PSAK 15, PSAK 67, dan Amandemen PSAK 62 berlaku untuk tahun buku yang dimulai sejak 1 Januari 2020 dan penerapan dini diperkenankan. SFAS 71, SFAS 72, SFAS 15, SFAS 67, and Amendment of SFAS 62 will become effective for annual periode beginning 1 January 2020 and early implementation is permitted. Pada saat penerbitan laporan keuangan konsolidasian, Bank dan Entitas Anak masih mempelajari dampak yang mungkin timbul dari penerapan standar baru dan revisi tersebut serta pengaruhnya pada laporan keuangan konsolidasian Bank. As at the authorisation date of this consolidated financial statements, the Bank and Subsidiary is still evaluating the potential impact of these new and revised standards to the Bank’s consolidated financial statements. 61. PERJANJIAN-PERJANJIAN SIGNIFIKAN 61. SIGNIFICANT AGREEMENTS Bank CIMB Niaga melakukan kerjasama dengan pihak lain dalam menjalankan aktivitas usahanya. Berikut perjanjian/ perikatan penting dengan pihak ketiga: Bank CIMB Niaga enters into agreement with other parties in conducting their business activities. The followings are the significant agreements with third parties: 1. Perjanjian Pengalihan atas Perjanjian Berlangganan Jasa Jaringan ATM Bersama tanggal 7 Januari 2002 dengan PT Artajasa Pembayaran Elektronis (Artajasa); 1. Agreement for Transferring of Subscription of ATM Bersama Network dated 7 January 2002 with PT Artajasa Pembayaran Elektronis (Artajasa); 2. Perjanjian dengan PT Bursa Berjangka Jakarta (BBJ) tanggal 14 Desember 2000. Perjanjian dilakukan dalam rangka penempatan dana kompensasi yang dihimpun dari pialang berjangka anggota BBJ maupun sumber sah lainnya yang disetujui Badan Pengawas Perdagangan Berjangka Komoditi (Bappebti); 2. Agreement with PT Bursa Berjangka Jakarta (BBJ) dated 14 December 2000. This agreement is for the pooling of funds from brokers and members of BBJ or other valid funds as approved by Commodity Futures Trading Regulatory Authority (Badan Pengawas Perdagangan Berjangka Komoditi or Bappebti); 3. Perjanjian Kerjasama Pengembangan dan Penyelenggaraan Jasa Internet Banking tanggal 1 November 2006 dengan PT Pacific Communications Network (Pacomnet) dengan tujuan penyediaan aplikasi untuk transaksi perbankan internet. Dengan pihak yang sama (Pacomnet) pada 2 Juli 2002 terdapat perjanjian penyelenggaraan SMS Mobile Banking dengan pengembangan jasa perbankan melalui mobile GSM; 3. Agreement for Developing and Implementing Internet Banking Service dated 1 November 2006 with PT Pacific Communications Network (Pacomnet) with the purpose of providing application for internet banking services. With the same party (Pacomnet), on 2 July 2002, there was an agreement to provide SMS Mobile Banking with developing banking services through mobile GSM; Halaman – 5/244– Page 904 Annual Report CIMB NIAGA 2017
  905. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 61. PERJANJIAN-PERJANJIAN SIGNIFIKAN (lanjutan) 61. SIGNIFICANT AGREEMENTS (continued) 4. Perjanjian berkaitan dengan kartu kredit dan ATM yaitu VISA International Service Association Program Security Agreement Letter of Credit tanggal 9 Oktober 2001 dengan pihak Visa International Service Association (VISA); 4. Agreement related with credit cards and ATM named VISA International Service Association Program Security Agreement of Letter of Credit dated 9 October 2001 with Visa International Service Association (VISA); 5. Perjanjian Lisensi Keanggotaan Kartu Master dengan Mastercard International Incorporated tanggal 9 Juli 1996; 5. License Agreement Master Card Membership with Mastercard International Incorporated dated 9 July 1996; 6. Perjanjian Induk dengan PT Silverlake Informatikatama tanggal 15 November 1996 dengan amandemen terakhir tanggal 18 November 2009 dalam rangka lisensi perangkat lunak untuk berbagai aplikasi; 6. Master Service Agreement with PT Silverlake Informatikatama dated 15 November 1996 with the latest amendment dated 18 November 2009 for the purpose of software licensing on various applications; 7. Perjanjian dengan Silverlake Axis MSC Sdn Bhd dalam rangka transisi Core Banking System (1P) tanggal 19 September 2014; 7. Agreement with Silverlake Axis MSC Sdn Bhd for transition of Core Banking System (1P) dated 19 September 2014; 8. Pada tanggal 7 April 2008, Bank CIMB Niaga menandatangani perjanjian sewa dengan PT Niaga Manajemen Citra untuk bangunan yang berlokasi di Gedung Griya Niaga 2, Jl. Wahid Hasyim Blok B.4 No.3, Bintaro Jaya Sektor VII Tangerang selama 29 (dua puluh sembilan) tahun. Total uang sewa selama jangka waktu sewa adalah Rp 181.000 yang akan dibayarkan dalam 11 (sebelas) tahap pembayaran. Pembayaran tahap pertama sebesar Rp 5.650 dibayarkan pada 27 Maret 2007 dan pembayaran tahap terakhir dibayar pada Januari 2009. Pada tanggal 30 Oktober 1997, Bank CIMB Niaga menandatangani perjanjian sewa dengan PT Niaga Manajemen Citra untuk bangunan yang berlokasi di Gedung Griya Niaga 1, Jl. Wahid Hasyim Blok B.4 No. 3, Bintaro Jaya Sektor VII Tangerang selama 15 (lima belas) tahun sampai dengan 29 Oktober 2012 dan telah diperpanjang sampai dengan 31 Desember 2017. Pembayaran sewa pada masa yang akan datang sesuai dengan perjanjian sewa di atas adalah sebesar Rp 478 per bulan. Pada tanggal 15 Januari 2018, Bank CIMB Niaga telah menandatangani perpanjangan perjanjian sewa dengan PT Niaga Manajemen Citra dengan jangka waktu sewa hingga 31 Desember 2022. Pembayaran sewa pada tahun 2018 adalah Rp 115.411 (dalam rupiah penuh) per m2 per bulan dan pada tahun 2019 hingga 2022 sebesar Rp 121.300 (dalam rupiah penuh) per m2 per bulan; 8. On 7 April 2008, Bank CIMB Niaga entered into an office space lease agreement with PT Niaga Manajemen Citra for building which located at Griya Niaga 2 Building, Jl. Wahid Hasyim Blok B.4 No.3, Bintaro Jaya Sector VII Tangerang for 29 (twenty nine) years. Rental fees for this rent amounted to Rp 181,000 which paid in 11 (eleven) payment term. The first term amounted to Rp 5,650 already paid on 27 March 2007 and the latest payment paid in January 2009. On 30 October 1997, Bank CIMB Niaga entered into an office space lease agreement with PT Niaga Manajemen Citra for building which located at Griya Niaga 1 Building, Jl. Wahid Hasyim Blok B.4 No. 3, Bintaro Jaya Sector VII Tangerang for 15 (fifteen) years up to 29 October 2012 and has been extended again until 31 December 2017. Future rental commitments under the above lease agreement amounted to Rp 478 per month. On 15 January 2018, Bank CIMB Niaga has signed the extension of lease agreement with PT Niaga Manajemen Citra with lease term until 31 December 2022. Lease fees for 2018 is amounted to Rp 115,541 (in full amount) per m2 per month and for 2019 until 2022 is amounted to Rp 121,300 (in full amount) per m2 per month; Halaman – 5/245– Page Annual Report CIMB NIAGA 2017 905
  906. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 61. PERJANJIAN-PERJANJIAN SIGNIFIKAN (lanjutan) 61. SIGNIFICANT AGREEMENTS (continued) 9. Bank CIMB Niaga menandatangani perjanjian kerjasama dengan PT Infomedia Nusantara untuk penyelenggaraan jasa call center atau pusat layanan informasi bagi nasabah Bank CIMB Niaga mengenai informasi layanan Bank CIMB Niaga. Perjanjian kerjasama ini berlaku sampai dengan tanggal 30 Juni 2013 dan telah diperpanjang kembali sampai tanggal 30 November 2016. Pada tanggal 28 November 2017, Bank CIMB Niaga menandatangani perjanjian kerjasama dengan PT Infomedia Nusantara untuk penyelenggaraan jasa contact center bagi nasabah mengenai transaksi perbankan dan produk dari Bank CIMB Niaga. Perjanjian kerjasama ini berlaku sampai dengan tanggal 30 November 2017 untuk lokasi Gajah Mada dan tanggal 30 Juli 2017 untuk lokasi Kedoya (meskipun perjanjian ini ditandatangani sebelum maupun sesudah tanggal penandatanganan perjanjian). Hingga saat ini perjanjian kerjasama tersebut masih dalam proses perpanjangan kembali; 9. Bank CIMB Niaga entered into an agreement with PT Infomedia Nusantara whereby PT Infomedia Nusantara agreed to conduct call center service or information service center for the customers of Bank CIMB Niaga with regards to Bank CIMB Niaga’s information service. The agreement valid up to 30 June 2013 and had been extended until 30 November 2016. On 28 November 2017, Bank CIMB Niaga entered into an agreement with PT Infomedia Nusantara whereby PT Infomedia Nusantara agreed to conduct contact center for customers with regards to Bank CIMB Niaga's banking transaction and products. The agreement is valid up to 30 November 2017 for Gajah Mada branch and 30 July 2017 for Kedoya branch (eventhough this agreeemnt is signed before or after the signed date). This agreement currently is still in process of extending the agreement; 10. Pada tanggal 30 Desember 2014, Bank CIMB Niaga menandatangani perjanjian pengikatan sewamenyewa dengan PT Star Pacific Tbk untuk bangunan yang berlokasi di Menara CIMB Niaga, Jl. Boulevard Diponegoro No. 101, Kelurahan Kelapa Dua, Kecamatan Curug, Tangerang dengan masa sewa sampai dengan 28 Februari 2020. Total uang sewa yang dibayarkan bervariasi dari Rp 80.000/m2 sampai dengan Rp 220.000/m2 (nilai penuh) yang dibayarkan setiap 3 (tiga) bulan dan dibayar dimuka. Bank CIMB Niaga dan PT Star Pacific juga sepakat bahwa uang sewa tidak akan mengalami perubahan selama masa sewa; 10. On 30 December 2014, Bank CIMB Niaga entered into lease agreement with PT Star Pacific Tbk for building which located at CIMB Niaga Tower, Jl. Boulevard Diponegoro No. 101, Kelapa Dua Sub District, Curug District, Tangerang up to 28 February 2020. Rental fees paid for this rent is ranging between Rp 80,000/m2 up to Rp 220,000/m2 (full amount) which is to be paid for every 3 (three) months and paid upfront. Bank CIMB Niaga and PT Star Pacific also agreed that the rental fees will not change during rental period; 11. Pada bulan Maret 2016, Bank CIMB Niaga menandatangani perjanjian bancassurance dengan PT Sunlife Financial Indonesia untuk menjual produk asuransi Sun Life melalui jaringan distribusi Bank. Perjanjian kerjasama ini berlaku sampai dengan tanggal 12 April 2033; 11. In March 2016, Bank CIMB Niaga entered into bancassurance agreement with PT Sunlife Financial Indonesia to sell Sun Life’s insurance products through the Bank distribution channel. The agreement valid up to 12 April 2033; 12. Pada bulan Desember 2016, Bank CIMB Niaga menandatangani perjanjian bancassurance dengan PT CIMB Niaga Auto Finance, PT Sompo Insurance Indonesia dan Sompo Japan Nipponkoa Insurance Inc. untuk menjual produk asuransi Sompo melalui jaringan distribusi Bank. Perjanjian kerjasama ini berlaku sampai dengan tanggal 31 Desember 2035. 12. In December 2016, Bank CIMB Niaga entered into bancassurance agreement with PT CIMB Niaga Auto Finance, PT Sompo Insurance Indonesia and Sompo Japan Nipponkoa Insurance Inc. to sell Sompo’s insurance products through the Bank distribution channel. The agreement valid up to 31 December 2035. Halaman – 5/246– Page 906 Annual Report CIMB NIAGA 2017
  907. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 62. INFORMASI TAMBAHAN 62. ADDITIONAL INFORMATION Sesuai dengan Surat dari BI No. 10/57/DpG/DPbS tanggal 27 Mei 2008 perihal “Penyeragaman Nama Produk dan Jasa Perbankan Syariah”, mulai bulan September 2008, semua produk/jasa perbankan Syariah diseragamkan menjadi Islamic Banking (iB). In accordance with Letter from BI No. 10/57/DpG/DPbS dated 27 May 2008 regarding “Harmonisation of Sharia Banking Products and Services”, starting September 2008, all Sharia banking products/services are harmonised as Islamic Banking (iB). Informasi keuangan unit usaha Syariah pada tanggal 31 Desember 2017, 2016, dan 2015 serta untuk tahun yang berakhir 31 Desember 2017, 2016, dan 2015 adalah: Financial information of Sharia business unit as at 31 December 2017, 2016, and 2015 and for the years ended 31 December 2017, 2016, and 2015 are as follows: 2017 2016 2015 LAPORAN POSISI KEUANGAN STATEMENTS OF FINANCIAL POSITION ASET Kas Penempatan pada Bank Indonesia Surat berharga yang dimiliki Pembiayaan berbasis piutang Pembiayaan bagi hasil Pembiayaan sewa Cadangan kerugian penurunan nilai aset produktif -/a. Individual b. Kolektif Aset tetap dan inventaris Aset nonproduktif Aset lain-lain JUMLAH ASET 24,810 4,653,980 1,753,148 5,006,894 11,183,901 503,741 35,227 1,931,853 707,633 6,170,641 3,989,758 45,374 39,214 1,216,013 667,198 6,750,159 475,893 58,363 (37,375) (224,061) 8,835 52,919 715,833 23,642,625 (353) (229,473) 9,868 27,668 91,582 12,779,778 (18,713) (221,827) 8,361 8,909 122,774 9,106,344 ASSETS Cash Placements with Bank Indonesia Sharia marketable securities Receivables based financing Profit sharing financing Lease receivable Allowance for impairment losses on earning assets -/a. Individual b. Collective Fixed assets and properties Non-earning assets Other assets TOTAL ASSETS LIABILITAS DAN EKUITAS Dana simpanan wadiah Dana investasi non profit sharing Liabilitas kepada bank lain Surat berharga yang diterbitkan Liabilitas lainnya Dana usaha Saldo laba 3,761,148 16,146,810 56,903 825,000 147,758 2,215,331 489,675 3,107,951 7,520,825 85,973 550,000 66,520 1,143,082 305,427 2,381,118 5,203,500 39,289 55,000 55,355 609,983 762,099 LIABILITIES AND EQUITY Wadiah deposits Non-profit sharing investment funds Obligations to other banks Marketable securities issued Other obligations Operating funds Retained earnings JUMLAH LIABILITAS DAN EKUITAS 23,642,625 12,779,778 9,106,344 TOTAL LIABILITIES AND EQUITY Halaman – 5/247– Page Annual Report CIMB NIAGA 2017 907
  908. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 62. INFORMASI TAMBAHAN (lanjutan) 62. ADDITIONAL INFORMATION (continued) Informasi keuangan unit usaha Syariah pada tanggal 31 Desember 2017, 2016, dan 2015 serta untuk tahun yang berakhir 31 Desember 2017, 2016, dan 2015 adalah (lanjutan): Financial information of Sharia business unit as at 31 December 2017, 2016, and 2015 and for the years ended 31 December 2017, 2016, and 2015 are as follows (continued): 2016 2017 2015 LAPORAN LABA RUGI Pendapatan operasional Pendapatan yang dibagihasilkan STATEMENTS OF INCOME 1,298,348 (609,365) 880,705 (359,154) 827,714 (373,780) Operating income Revenue sharing distribution Pendapatan setelah distribusi bagi hasil Jumlah beban operasional lainnya 688,983 (212,592) 521,551 (229,770) 453,934 (306,619) Income after revenue sharing distribution Total other operating expenses Laba operasional - bersih Pendapatan non-operasional - bersih 476,391 291,781 147,315 13,284 13,646 (32,281) Operating income - net Non-operating income - net Laba bersih 489,675 305,427 115,034 Net income Termasuk dalam pembiayaan berbasis piutang, pembiayaan bagi hasil dan pembiayaan sewa pada tanggal 31 Desember 2017 adalah penempatan pada bank lain sebesar Rp 139.953 (2016: Rp 45.311; 2015: Rp 33.878). Included in receivables based financing, profit sharing financing and lease receivables at 31 December 2017 is placement with other banks amounted to Rp 139,953 (2016: Rp 45,311; 2015: Rp 33,878). Halaman – 5/248– Page 908 Annual Report CIMB NIAGA 2017
  909. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 63. NILAI TERCATAT INSTRUMEN KEUANGAN 63. THE CARRYING INSTRUMENTS Berikut ini adalah nilai tercatat instrumen keuangan Bank CIMB Niaga pada tanggal 31 Desember 2017, 2016, dan 2015: 2017 OF FINANCIAL The carrying amount of Bank CIMB Niaga’s financial instruments as at 31 December 2017, 2016, and 2015 are as follows: 2016 2015 ASET KEUANGAN Kas AMOUNT FINANCIAL ASSETS 3,895,997 3,261,730 4,240,006 Cash Giro pada Bank Indonesia 11,522,696 13,345,736 14,605,403 Current accounts with Bank Indonesia Giro pada bank lain - bersih 3,574,267 1,624,152 2,348,027 Current accounts with other banks - net Penempatan pada bank lain dan Bank Indonesia Nominal - bersih Pendapatan yang masih harus diterima Jumlah tercatat 13,314,199 502 13,314,701 4,424,305 112 4,424,417 5,883,668 422 5,884,090 Placements with other banks and Bank Indonesia Nominal - net Accrued income Carrying amount Efek-efek Nominal - bersih Pendapatan bunga yang masih akan diterima Jumlah tercatat 13,442,054 71,955 13,514,009 9,344,227 61,184 9,405,411 9,821,623 64,333 9,885,956 Marketable securities Nominal - net Accrued interest income Carrying amount Obligasi pemerintah Nominal - bersih Pendapatan bunga yang masih akan diterima Jumlah tercatat 24,971,486 259,006 25,230,492 18,184,132 280,969 18,465,101 16,049,893 220,482 16,270,375 Government Bonds Nominal - net Accrued income Carrying amount 542,956 2,111 545,067 174,552 527 175,079 Securities purchased under resale agreements Nominal - net Accrued interest income Carrying amount 280,293 484,602 595,554 Derivative receivables - net 174,421,016 857,147 175,278,163 165,923,435 940,476 166,863,911 163,682,732 1,074,713 164,757,445 Loans Nominal - net Accrued interest income Carrying amount 3,386,750 6,059,924 6,276,106 Consumer financing receivables - net 10,936 51,981 157,683 Financing lease receivables - net 4,184,965 4,488,511 4,251,849 Acceptance receivables - net Efek-efek yang dibeli dengan janji dijual kembali Nominal - bersih Pendapatan bunga yang masih akan diterima Jumlah tercatat Tagihan derivatif - bersih Kredit yang diberikan Nominal - bersih Pendapatan bunga yang masih akan diterima Jumlah tercatat Piutang pembiayaan konsumen bersih Piutang sewa pembiayaan - bersih Tagihan akseptasi - bersih - Penyertaan - bersih 3,659 3,574 13,048 Investments - net Pendapatan bunga yang masih akan diterima 3,025 36,080 23,413 Accrued interest income Aset lain-lain - bersih Jumlah Aset Keuangan 1,611,640 1,907,626 1,253,694 Other assets - net 255,811,593 230,967,823 230,737,728 Total Financial Assets Halaman – 5/249– Page Annual Report CIMB NIAGA 2017 909
  910. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 63. NILAI TERCATAT INSTRUMEN KEUANGAN (lanjutan) 63. THE CARRYING AMOUNT INSTRUMENTS (continued) Berikut ini adalah nilai tercatat instrumen keuangan Bank CIMB Niaga pada tanggal 31 Desember 2017, 2016, dan 2015: (lanjutan) 2017 FINANCIAL The carrying amount of Bank CIMB Niaga’s financial instruments as at 31 December 2017, 2016, and 2015 are as follows: (continued) 2016 2015 LIABILITAS KEUANGAN Liabilitas segera OF FINANCIAL LIABILITIES 1,946,166 1,954,804 786,132 Obligations due immediately Simpanan dari nasabah Nominal Bunga yang masih harus dibayar Jumlah tercatat 189,317,196 477,672 189,794,868 180,571,134 528,520 181,099,654 178,533,077 612,008 179,145,085 Deposits from customers Nominal Accrued interest Carrying amount Simpanan dari bank lain Nominal Bunga yang masih harus dibayar Jumlah tercatat 6,884,335 3,249 6,887,584 4,557,473 1,165 4,558,638 5,654,410 334 5,654,744 Deposits from other banks Nominal Accrued interest Carrying amount Efek-efek yang dijual dengan janji dibeli kembali Nominal Bunga yang masih harus dibayar Jumlah tercatat 9,378,703 9,378,703 169,634 169,634 1,996,167 1,996,167 Securities sold under repurchase agreement Nominal Accrued interest Carrying amount 110,823 362,917 888,704 Derivative payables 4,184,965 4,077,182 4,190,087 Acceptance payables Liabilitas derivatif Liabilitas akseptasi Efek-efek yang diterbitkan Nominal Bunga yang masih harus dibayar Jumlah tercatat 5,403,613 56,308 5,459,921 3,237,704 39,517 3,277,221 4,476,921 32,929 4,509,850 Marketable securities issued Nominal Accrued interest Carrying amount Pinjaman yang diterima Nominal Bunga yang masih harus dibayar Jumlah tercatat 5,809,723 25,783 5,835,506 5,436,073 27,603 5,463,676 6,684,630 35,301 6,719,931 Borrowings Nominal Accrued interest Carrying amount Pinjaman subordinasi Nominal Bunga yang masih harus dibayar Jumlah tercatat 1,596,772 3,858 1,600,630 2,979,566 39,811 3,019,377 2,969,774 39,811 3,009,585 Subordinated loans Nominal Accrued interest Carrying amount 570,505 587,293 527,493 Accruals and other liabilities 225,769,671 204,570,396 207,427,778 Total Financial Liabilities Beban yang masih harus dibayar dan liabilitas lain-lain Jumlah Liabilitas Keuangan Halaman – 5/250– Page 910 Annual Report CIMB NIAGA 2017
  911. PT BANK CIMB NIAGA Tbk DAN ENTITAS ANAK /AND SUBSIDIARY CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2017, 2016, DAN 2015 SERTA TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 64. SALING HAPUS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2017, 2016, AND 2015 AND FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 64. OFFSETTING Pada tanggal 31 Desember 2017, 2016, dan 2015 tidak terdapat aset dan liabilitas keuangan yang saling hapus pada laporan posisi keuangan konsolidasian. As at 31 December 2017, 2016, and 2015 there is no financial assets and liabilities that are subject to offsetting in the consolidated statement of financial position. Bank memiliki kredit yang diberikan yang dijamin dengan jaminan tunai (Catatan 12k), yang menjadi subyek untuk memenuhi netting arrangements dan perjanjian serupa, yang tidak saling hapus pada laporan posisi keuangan. The bank has loans collateralised by cash collateral (Note 12k), which are subject to enforceable netting arrangements and similar agreements that are not set off in the statements of financial position. 65. INFORMASI KEUANGAN TAMBAHAN 65. SUPPLEMENTARY FINANCIAL INFORMATION Bank menerbitkan laporan keuangan konsolidasian yang merupakan laporan keuangan utama. Informasi keuangan tambahan PT Bank CIMB Niaga Tbk (Entitas Induk) ini, dimana investasi pada Entitas Anak dicatat dengan metode harga perolehan, disajikan untuk dapat menganalisis hasil usaha entitas induk saja. Informasi keuangan tambahan PT Bank CIMB Niaga Tbk (Entitas Induk) (halaman 5/252 – 5/262) berikut ini harus dibaca bersamaan dengan laporan keuangan konsolidasian PT Bank CIMB Niaga Tbk dan Entitas Anak. The Bank published the consolidated financial statements as its primary financial statements. The supplementary financial information of PT Bank CIMB NiagaTbk (Parent Entity) which account for investments in Subsidiary using the cost method, have been prepared in order that the parent entity’s results of operations can be analysed. The following supplementary financial information of PT Bank CIMB Niaga Tbk (Parent Entity) (pages 5/252 – 5/262) should be read in conjunction with the consolidated financial statements of PT Bank CIMB Niaga Tbk and Subsidiary. Halaman – 5/251– Page Annual Report CIMB NIAGA 2017 911
  912. INFORMASI KEUANGAN TAMBAHAN /SUPPLEMENTARY FINANCIAL INFORMATION PT BANK CIMB NIAGA Tbk ENTITAS INDUK/PARENT COMPANY LAPORAN POSISI KEUANGAN 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) ASET Kas 2017 STATEMENTS OF FINANCIAL POSITION 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2016 2015 3,889,241 3,261,444 4,230,258 ASSETS Cash 11,522,696 13,345,736 14,605,403 Current accounts with Bank Indonesia 3,529,272 1,536,869 2,277,504 3,529,272 1,536,869 2,277,504 Current accounts with other banks Less: Allowance for impairment losses 13,323,713 4,436,233 5,898,585 (9,514) 13,314,199 (11,928) 4,424,305 (14,917) 5,883,668 Efek-efek Dikurangi: Cadangan kerugian penurunan nilai 13,480,610 9,380,140 9,859,144 (38,556) 13,442,054 (35,913) 9,344,227 (37,521) 9,821,623 Obligasi Pemerintah 24,971,486 18,184,132 16,049,893 Government Bonds 542,956 174,552 Securities purchased under resale agreements 280,293 484,602 595,554 Derivative receivables 1,156,098 181,138,023 182,294,121 1,433,534 173,372,946 174,806,480 1,341,780 170,588,608 171,930,388 (6,984,706) 175,309,415 (7,664,256) 167,142,224 (7,050,246) 164,880,142 4,184,965 4,488,511 4,251,849 4,184,965 4,488,511 4,251,849 Giro pada Bank Indonesia Giro pada bank lain Dikurangi: Cadangan kerugian penurunan nilai Penempatan pada bank lain dan Bank Indonesia Dikurangi: Cadangan kerugian penurunan nilai Efek-efek yang dibeli dengan janji dijual kembali Tagihan derivatif Kredit yang diberikan Pihak berelasi Pihak ketiga Dikurangi: Cadangan kerugian penurunan nilai Jumlah kredit yang diberikan Tagihan akseptasi Dikurangi: Cadangan kerugian penurunan nilai - Placement with other banks and Bank Indonesia Less: Allowance for impairment losses Marketable securities Less: Allowance for impairment losses Loans Related parties Third parties Less: Allowance for impairment losses Total loans Acceptance receivables Less: Allowance for impairment losses Halaman – 5/252– Page 912 Annual Report CIMB NIAGA 2017
  913. INFORMASI KEUANGAN TAMBAHAN /SUPPLEMENTARY FINANCIAL INFORMATION PT BANK CIMB NIAGA Tbk ENTITAS INDUK/PARENT COMPANY LAPORAN POSISI KEUANGAN 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) ASET (lanjutan) Penyertaan Dikurangi: Cadangan kerugian penurunan nilai 2017 STATEMENTS OF FINANCIAL POSITION 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2016 2015 ASSETS (continued) 783,285 783,285 792,759 (805) 782,480 (890) 782,395 (890) 791,869 Aset Tetap Dikurangi: Akumulasi penyusutan 7,534,135 (2,422,566) 5,111,569 7,400,594 (2,144,903) 5,255,691 4,362,647 (2,354,907) 2,007,740 Fixed Assets Less: Accumulated depreciation Aset tidak berwujud Dikurangi: Akumulasi penyusutan 2,533,378 (997,191) 1,536,187 2,260,824 (783,872) 1,476,952 1,924,778 (591,051) 1,333,727 Intangible assets Less: Accumulated depreciation 468,945 638,208 894,659 (85,365) 383,580 (174,801) 463,407 894,659 Foreclosed assets Less: Allowance for impairment losses 1,563,167 1,361,995 989,037 Prepaid taxes 151,220 272,968 452,051 Deferred tax assets - net Pendapatan bunga yang masih akan diterima 1,195,420 1,325,842 1,386,752 Accrued interest income Beban dibayar dimuka 1,316,205 1,297,119 1,249,465 Prepaid expenses Aset Lain-lain Dikurangi: Cadangan kerugian penurunan nilai 2,116,602 2,400,176 1,799,702 (439,270) 1,677,332 264,160,781 (439,061) 1,961,115 236,952,490 (439,501) 1,360,201 233,235,947 Other Assets Less: Allowance for impairment losses Aset yang diambil alih Dikurangi: Cadangan kerugian penurunan nilai Uang muka pajak Aset pajak tangguhan - bersih JUMLAH ASET Investments Less: Allowance for impairment losses TOTAL ASSETS Halaman – 5/253– Page Annual Report CIMB NIAGA 2017 913
  914. INFORMASI KEUANGAN TAMBAHAN /SUPPLEMENTARY FINANCIAL INFORMATION PT BANK CIMB NIAGA Tbk ENTITAS INDUK/PARENT COMPANY LAPORAN POSISI KEUANGAN 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) LIABILITAS DAN EKUITAS LIABILITAS Liabilitas segera Simpanan dari nasabah Giro Pihak berelasi Pihak ketiga Tabungan Pihak berelasi Pihak ketiga Deposito Pihak berelasi Pihak ketiga Jumlah simpanan nasabah Simpanan dari bank lain Giro dan tabungan Inter-bank call money dan Deposito berjangka Efek-efek yang dijual dengan janji dibeli kembali Liabilitas derivatif Liabilitas akseptasi Efek-efek yang diterbitkan Pinjaman yang diterima Utang pajak - Pajak penghasilan badan - Pajak lain-lain Beban yang masih harus dibayar dan liabilitas lain-lain - Beban yang masih harus dibayar - Liabilitas lain-lain Liabilitas imbalan kerja Pinjaman subordinasi JUMLAH LIABILITAS 2017 STATEMENTS OF FINANCIAL POSITION 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2016 2015 1,946,166 1,954,804 786,132 165,310 49,253,746 49,419,056 138,358 44,549,118 44,687,476 629,132 39,939,285 40,568,417 63,137 50,151,135 50,214,272 66,270 47,144,354 47,210,624 59,123 43,063,990 43,123,113 73,431 89,748,470 89,821,901 88,768 88,673,762 88,762,530 155,132 94,811,229 94,966,361 189,455,229 180,660,630 178,657,891 1,987,651 1,863,474 2,300,760 4,896,684 6,884,335 2,693,999 4,557,473 3,353,650 5,654,410 9,378,703 110,823 4,184,965 5,403,613 4,542,870 169,634 362,917 4,077,182 3,237,704 1,564,890 1,996,167 888,704 4,190,087 3,877,067 2,626,699 215,466 170,105 385,571 100,681 189,894 290,575 147,196 147,196 1,828,979 657,060 2,486,039 1,613,094 653,091 2,266,185 1,351,890 608,084 1,959,974 1,285,714 1,596,772 227,660,800 985,993 2,979,566 203,107,553 1,123,595 2,969,774 204,877,696 LIABILITIES AND EQUITY LIABILITIES Obligations due immediately Deposits from customers Demand deposits Related parties Third parties Saving deposits Related parties Third parties Time deposits Related parties Third parties Total deposits from customers Deposits from other banks Demand and saving deposits Inter-bank call money and Time deposits Securities sold under repurchase agreement Derivative payables Acceptance payables Marketable securities isssued Borrowings Tax payables Corporate income tax Other taxes Accruals and other liabilities Accruals Other liabilities - Employee benefit obligations Subordinated loans TOTAL LIABILITIES Halaman – 5/254– Page 914 Annual Report CIMB NIAGA 2017
  915. INFORMASI KEUANGAN TAMBAHAN /SUPPLEMENTARY FINANCIAL INFORMATION PT BANK CIMB NIAGA Tbk ENTITAS INDUK/PARENT COMPANY LAPORAN POSISI KEUANGAN 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) EKUITAS Modal saham biasa Modal dasar 71.853.936 saham biasa kelas A, dengan nilai nominal Rp 5.000 (nilai penuh) per saham dan 50.814.606.400 saham biasa kelas B, dengan nilai nominal Rp 50 (nilai penuh) per saham. Modal ditempatkan dan disetor penuh 71.853.936 saham biasa kelas A dan 25.059.752.907 saham biasa kelas B pada tanggal 31 Desember 2017, 2016, dan 2015 Tambahan modal disetor Saham Treasuri Cadangan kompensasi berbasis saham Selisih penilaian kembali aset tetap Keuntungan/(kerugian) yang belum direalisasi atas dan obligasi pemerintah dalam kelompok tersedia untuk dijual Cadangan umum dan wajib Saldo laba Jumlah ekuitas JUMLAH LIABILITAS DAN EKUITAS 2017 STATEMENTS OF FINANCIAL POSITION 31 DESEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2016 2015 EQUITY 1,612,257 7,033,450 (242,902) 57,011 3,077,883 1,612,257 7,033,450 57,011 3,077,883 1,612,257 7,033,450 57,011 - Share capital Authorized capital 71,853,936 class A ordinary shares with par value of Rp 5,000 (full amount) per share, and 50,814,606,400 class B ordinary shares with par value of Rp 50 (full amount) per share. Issued and fully paid 71,853,936 class A ordinary shares and 25,059,752,907 class B ordinary shares as at 31 December 2017, 2016, and 2015 Additional paid in capital Treasury Shares Share-based compensation reserve Reserve on revaluation of fixed assets 25,822 351,538 24,584,922 36,499,981 (166,991) 351,538 21,879,789 33,844,937 (600,600) 351,538 19,904,595 28,358,251 Unrealised gains/(losses) on available-for-sale marketable securities and government bonds General and statutory reserve Retained earnings Total equity 264,160,781 236,952,490 233,235,947 TOTAL LIABILITIES AND EQUITY Halaman – 5/255– Page Annual Report CIMB NIAGA 2017 915
  916. INFORMASI KEUANGAN TAMBAHAN /SUPPLEMENTARY FINANCIAL INFORMATION PT BANK CIMB NIAGA Tbk ENTITAS INDUK/PARENT COMPANY LAPORAN LABA RUGI DAN PENGHASILAN KOMPREHENSIF LAIN KONSOLIDASIAN UNTUK TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 2017 CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2016 2015 PENDAPATAN DAN BEBAN OPERASIONAL Pendapatan bunga dan syariah Beban bunga dan syariah Pendapatan bunga dan syariah bersih Pendapatan operasional lainnya Provisi dan komisi lainnya Kerugian transaksi mata uang asing Lain-lain Jumlah pendapatan operasional lainnya Kerugian penurunan nilai atas aset keuangan dan nonkeuangan - bersih Keuntungan dari instrumen keuangan yang diperdagangkan - bersih Keuntungan dari penjualan efek-efek Beban operasional lainnya Beban tenaga kerja Umum dan administrasi Lain-lain Jumlah beban operasional lainnya LABA OPERASIONAL BERSIH PENDAPATAN BUKAN OPERASIONAL Pendapatan/(beban) bukan operasional - bersih LABA SEBELUM PAJAK PENGHASILAN BEBAN PAJAK PENGHASILAN LABA BERSIH INCOME AND EXPENSES FROM OPERATIONS 19,535,509 (7,698,085) 11,837,424 20,146,116 (8,713,454) 11,432,662 21,338,999 (10,355,610) 10,983,389 2,106,331 (51,022) 329,868 1,978,735 (7,499) 172,283 1,522,479 (395,280) 194,608 2,385,177 2,143,519 1,321,807 (3,866,420) (4,568,148) (5,181,446) 330,460 443,561 396,888 284,065 500,407 145,162 Interest and sharia income Interest and sharia expense Net interest and sharia income (3,726,911) (3,310,087) (116,683) (7,153,681) (3,389,233) (3,588,326) (23,660) (7,001,219) (3,870,939) (3,327,188) (6,256) (7,204,383) Other operating income Other fees and commissions Foreign exchange losses Others Total other operating income Impairment losses on financial and non-financial assets - net Gains from trading financial instruments - net Gains from sale of marketable securities Other operating expenses Personnel expenses General and administrative Others Total other operating expenses 3,976,521 2,687,767 564,936 NET OPERATING INCOME 28,643 54,905 (61,562) INCOME FROM NON OPERATIONS Non operating income /(expenses) - net 4,005,164 2,742,672 503,374 INCOME BEFORE INCOME TAX (1,117,198) (703,456) (172,470) INCOME TAX EXPENSE 2,887,966 2,039,216 330,904 NET INCOME Halaman – 5/256– Page 916 Annual Report CIMB NIAGA 2017
  917. INFORMASI KEUANGAN TAMBAHAN /SUPPLEMENTARY FINANCIAL INFORMATION PT BANK CIMB NIAGA Tbk ENTITAS INDUK/PARENT COMPANY LAPORAN LABA RUGI DAN PENGHASILAN KOMPREHENSIF LAIN KONSOLIDASIAN UNTUK TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) Laba bersih CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2017 2016 2,887,966 2,039,216 2015 330,904 Penghasilan komprehensif lain: Pos-pos yang tidak akan direklasifikasi ke laba rugi Pengukuran kembali atas program imbalan pasti (Kerugian)/keuntungan aktuarial Selisih penilaian kembali aset tetap Pajak penghasilan terkait pos-pos yang tidak akan direklasifikasi ke laba rugi Pos-pos yang akan direklasifikasi ke laba rugi Keuntungan/(kerugian) yang belum direalisasi atas perubahan nilai wajar dari efek-efek dan obligasi pemerintah dalam kelompok tersedia untuk dijual Dikurangi : Penyesuaian reklasifikasi atas keuntungan/(kerugian) yang termasuk dalam laba rugi Pajak penghasilan terkait dengan penghasilan komprehensif lain PENGHASILAN KOMPREHENSIF LAIN SETELAH PAJAK JUMLAH PENGHASILAN KOMPREHENSIF LABA PER SAHAM (dalam nilai penuh Rupiah per saham) Dasar (243,777) (243,777) (85,362) 3,173,528 3,088,166 144 144 60,944 (182,833) (74,305) 3,013,861 (36) 108 Net income Other comprehensive income: Items that will not be reclassified to profit or loss Remeasurement of post employment benefits obligation Actuarial (loss)/gains Reserve on revaluation of fixed assets Income tax relating to item that will not be reclassified to profit or loss Item that will be reclassified subsequently to profit or loss Unrealised gains/(losses) from changes in fair value of available-for-sale marketable securities and government bonds Less : Reclassification adjustment on gains/(losses) which already included in profit or loss 275,461 173,378 (225,386) (18,377) 257,084 404,768 578,146 (36,348) (261,734) (64,271) 192,813 (144,537) 433,609 65,434 (196,300) 9,980 2,897,946 3,447,470 5,486,686 (196,192) 134,712 OTHER COMPREHENSIVE INCOME NET OF TAX TOTAL COMPREHENSIVE INCOME 13.17 EARNINGS PER SHARE (expressed in Rupiah full amount per share) Basic 114.93 81.14 Income tax relating to items of other comprehensive income Halaman – 5/257– Page Annual Report CIMB NIAGA 2017 917
  918. 918 Annual Report CIMB NIAGA 2017 ) 1,612,257 - 1,612,257 7,033,450 - 7,033,450 Tambahan modal disetor/ Additional paid in capital 57,011 - 57,011 Cadangan kompensasi berbasis saham/ Share based compensation reserve *) Jumlah yang termasuk di dalam saldo laba untuk tahun yang berakhir 31 Desember 2017, 2016, dan 2015 merupakan pengukuran kembali atas program imbalan pasti setelah pajak Saldo 31 Desember 2015 - Penghasilan komprehensif lain * Saldo 1 Januari 2015 Jumlah laba komprehensif tahun berjalan: - Laba bersih Modal saham/ Share capital LAPORAN PERUBAHAN EKUITAS UNTUK TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) Halaman – 5/258– Page (196,300) (196,300) (600,600) - (404,300) Kerugian yang belum direalisasi atas efek-efek dan obligasi pemerintah dalam kelompok tersedia untuk dijual setelah pajak/ Unrealised losses on available-forsale marketable securities and government bonds net of tax 108 331,012 19,904,595 330,904 19,573,583 Saldo laba/ Retained earnings Balance as at 1 January 2015 Total comprehensive income for the current year: Net income (196,192) Other comprehensive income *) 134,712 28,358,251 Balance as at 31 December 2015 330,904 28,223,539 Jumlah/ Total STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) Amounts included in retained earnings for the year ended 31 December 2017, 2016, and 2015 are the *) remeasurement of post employment benefits obligation net of tax 351,538 - 351,538 Cadangan umum dan wajib/ General and statutory reserve PT BANK CIMB NIAGA Tbk ENTITAS PERUSAHAAN/PARENT COMPANY INFORMASI KEUANGAN TAMBAHAN/SUPPLEMENTARY FINANCIAL INFORMATION
  919. Annual Report CIMB NIAGA 2017 919 1 ,612,257 - 1,612,257 7,033,450 - 7,033,450 57,011 - 57,011 Cadangan kompensasi berbasis saham/ Share based compensation reserve 433,609 433,609 (166,991) - (600,600) Kerugian yang belum direalisasi atas efekefek dan obligasi pemerintah dalam kelompok tersedia untuk dijual setelah pajak/ Unrealised losses on available-for-sale marketable securities and government bonds net of tax Halaman – 5/259– Page 3,077,883 3,077,883 3,077,883 - - Selisih penilaian kembali aset tetap/ Reserve on revaluation of fixed assets *) Jumlah yang termasuk di dalam saldo laba untuk tahun yang berakhir 31 Desember 2017, 2016, dan 2015 merupakan pengukuran kembali atas program imbalan pasti setelah pajak Saldo 31 Desember 2016 - Penghasilan komprehensif lain * ) Saldo 1 Januari 2016 Jumlah laba komprehensif periode tahun berjalan: - Laba bersih Modal saham/ Share capital Tambahan modal disetor/ Additional paid in capital LAPORAN PERUBAHAN EKUITAS UNTUK TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) (64,022) 1,975,194 21,879,789 2,039,216 19,904,595 Saldo laba/ Retained earnings 3,447,470 5,486,686 33,844,937 2,039,216 28,358,251 Jumlah/ Total *) Balance as at 31 December 2016 Other comprehensive income Balance as at 1 January 2016 Total comprehensive income for for the current year: Net income - STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) Amounts included in retained earnings for the year ended 31 December 2017, 2016, and 2015 are the *) remeasurement of post employment benefits obligation net of tax 351,538 - 351,538 Cadangan umum dan wajib/ General and statutory reserve PT BANK CIMB NIAGA Tbk ENTITAS PERUSAHAAN/PARENT COMPANY INFORMASI KEUANGAN TAMBAHAN/SUPPLEMENTARY FINANCIAL INFORMATION
  920. 920 Annual Report CIMB NIAGA 2017 1 ,612,257 - 1,612,257 7,033,450 - 7,033,450 57,011 - 57,011 3,077,883 - 3,077,883 Selisih penilaian kembali aset tetap/ Reserve on revaluation of fixed assets *) Jumlah yang termasuk di dalam saldo laba untuk tahun yang berakhir 31 Desember 2017, 2016, dan 2015 merupakan pengukuran kembali atas program imbalan pasti setelah pajak - Saham treasuri Saldo 31 Desember 2017 - Penghasilan komprehensif lain * ) Saldo 1 Januari 2017 Jumlah laba komprehensif periode berjalan: - Laba bersih Modal saham/ Share capital Tambahan modal disetor/ Additional paid in capital Cadangan kompensasi berbasis saham/ Share based compensation reserve LAPORAN PERUBAHAN EKUITAS UNTUK TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 351,538 - 351,538 Cadangan umum dan wajib/ General and statutory reserve (182,833) 2,705,133 24,584,922 2,887,966 21,879,789 Saldo laba/ Retained earnings 9,980 2,897,946 (242,902) 36,499,981 2,887,966 33,844,937 Jumlah/ Total *) Treasury shares Balance as at 31 December 2017 Other comprehensive income Balance as at 1 January 2017 Total comprehensive income for for the current period: Net income - STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) Amounts included in retained earnings for the year ended 31 December 2017, 2016, and 2015 are the *) remeasurement of post employment benefits obligation net of tax (242,902) (242,902) - - Saham Treasuri/ Treasury Shares Halaman – 5/260– Page 192,813 192,813 25,822 - (166,991) Kerugian yang belum direalisasi atas efekefek dan obligasi pemerintah dalam kelompok tersedia untuk dijual setelah pajak/ Unrealised losses on available-for-sale marketable securities and government bonds net of tax PT BANK CIMB NIAGA Tbk ENTITAS PERUSAHAAN/PARENT COMPANY INFORMASI KEUANGAN TAMBAHAN/SUPPLEMENTARY FINANCIAL INFORMATION
  921. INFORMASI KEUANGAN TAMBAHAN /SUPPLEMENTARY FINANCIAL INFORMATION PT BANK CIMB NIAGA Tbk ENTITAS PERUSAHAAN/PARENT COMPANY LAPORAN ARUS KAS UNTUK TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) 2017 STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED 31 DECEMBER 2017, 2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2016 2015 Arus kas dari aktivitas operasi Pendapatan bunga, provisi, dan komisi yang diterima Bunga, provisi, dan komisi yang dibayar Penghasilan operasional lainnya Keuntungan/(kerugian) transaksi mata uang asing dan derivatif - bersih Beban operasional lainnya Pendapatan/(beban) bukan operasional - bersih Arus kas sebelum perubahan dalam aset dan liabilitas operasi Perubahan dalam aset dan liabilitas : Penurunan/(kenaikan) aset: Efek-efek dan Obligasi Pemerintah untuk tujuan diperdagangkan Efek-efek yang dibeli dengan janji dijual kembali Kredit yang diberikan Tagihan akseptasi Kenaikan/(penurunan) liabilitas : Simpanan nasabah Simpanan dari bank lain Efek-efek yang dijual dengan janji dibeli kembali Liabilitas akseptasi Hutang pajak Pajak penghasilan yang dibayar selama tahun berjalan Kas bersih yang diperoleh dari aktivitas operasi Cash flow from operating activities 21,579,342 (7,055,135) 329,868 21,982,669 (8,072,445) 172,283 22,878,051 (9,410,667) 194,608 66,269 (5,973,861) 29,017 178,063 (5,872,060) (38,296) (299,640) (7,349,998) (68,427) 8,975,500 8,350,214 5,943,927 Receipts of interest, fees, and commissions income Payments of interest, fees, and commissions Other operating income Foreign exchange and derivatives gains/(losses) - net Other operating expenses Non operating income/(expense) - net Cash flow before changes in operating assets and liabilities Changes in assets and liabilities : Decrease/(increase) in assets : Trading marketable securities and Government Bonds (172,211) 2,217,159 (3,564,608) 542,956 (11,929,774) 303,546 (368,404) (6,457,374) (236,662) (174,552) (5,874,163) 867,757 8,794,599 2,326,862 9,209,069 107,783 (19,789) 2,002,739 (1,096,937) (1,826,533) (112,905) 42,698 3,623,194 3,587,854 1,996,167 (923,140) (172,491) (883,991) (546,887) (297,060) 17,254,550 1,967,108 5,012,885 Securities purchased under resale agreements Loans Acceptance receivables Increase/(decrease) in liabilities : Deposits from customers Deposits from other banks Securities sold under repurchase agreement Acceptance payables Taxes payable Income tax paid during the year Net cash provided by operating activities Halaman – 5/261– Page Annual Report CIMB NIAGA 2017 921
  922. INFORMASI KEUANGAN TAMBAHAN /SUPPLEMENTARY FINANCIAL INFORMATION PT BANK CIMB NIAGA Tbk ENTITAS PERUSAHAAN/PARENT COMPANY LAPORAN ARUS KAS UNTUK TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017, 2016, DAN 2015 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain) Arus kas dari aktivitas investasi Hasil penjualan aset tetap Pelepasan atas penyertaan jangka panjang Kenaikan efek-efek dan obligasi pemerintah - tersedia untuk dijual dan yang dimiliki hingga jatuh tempo Pembelian aset tetap Pembelian aset tidak berwujud Kas bersih yang digunakan untuk aktivitas investasi 2017 STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED 31 DECEMBER 2017,2016, AND 2015 (Expressed in millions of Rupiah, unless otherwise stated) 2016 2015 631 2,434 3,501 - 9,474 - Cash flow from investing activities Proceeds from sale of fixed assets Disposal in long term investments Increase in available-for-sale and held-to-maturity marketable securities and government bonds Acquisition of fixed assets Acquisition of intangible assets Net cash used in investing activities (8,469,152) (204,214) (272,646) (3,317,473) (419,532) (338,741) (970,099) (1,296,016) - (8,945,381) (4,063,838) (2,262,614) (242,902) 4,000,000 1,000,000 (2,421,563) (2,305,616) (1,595,357) 3,385,601 (519,128) (1,380,000) 413,946 (1,532,647) - 65,524 (1,629,803) - 2,822,008 (2,424,317) (3,159,636) Addition of borrowings Payment of interest and borrowings Payment of subordinated loans Net cash provided by/(used in) financing activities 154,962 (200,952) 1,001,560 Effects on exchange rate differences in cash and cash equivalent Kenaikan/(penurunan) bersih kas dan setara kas 11,286,139 (4,721,999) 592,195 Kas dan setara kas pada awal tahun 23,328,546 28,050,545 27,458,350 Net increase/(decrease) in cash and cash equivalent Cash and cash equivalent at beginning of the year Kas dan setara kas pada akhir tahun 34,614,685 23,328,546 28,050,545 Cash and cash equivalent at end of the year 3,889,241 11,522,696 3,529,272 3,261,444 13,345,736 1,536,869 4,230,258 14,605,403 2,277,504 13,323,713 4,436,233 5,898,585 2,349,763 34,614,685 748,264 23,328,546 1,038,795 28,050,545 Arus kas dari aktivitas pendanaan Saham treasuri Efek-efek yang diterbitkan Pembayaran pokok dan bunga dari obligasi dan efek-efek yang diterbitkan Penambahan atas pinjaman yang diterima Pembayaran atas bunga dan pinjaman yang diterima Pembayaran atas pinjaman subordinasi Kas bersih yang diperoleh dari/(digunakan untuk) aktivitas pendanaan Pengaruh perubahan kurs mata uang pada kas dan setara kas Kas dan setara kas terdiri dari: Kas Giro pada Bank Indonesia Giro pada bank lain Penempatan pada bank lain - jangka waktu jatuh tempo tiga bulan atau kurang sejak tanggal perolehan Sertifikat Bank Indonesia dan Sertifikat Bank Dalam Negeri - jangka waktu jatuh tempo tiga bulan atau kurang sejak tanggal perolehan Jumlah kas dan setara kas Informasi tambahan arus kas: Aktivitas yang tidak mempengaruhi arus kas - - - - Cash flow from financing activities Treasury shares Marketable securities issued Payment of principal and interest from bonds and marketable securities issued Cash and cash equivalent consist of: Cash Current accounts with Bank Indonesia Current accounts with other banks Placements with other banks - mature within three months or less since acquisition date Bank Indonesia certificates and Local Bank Certificates - mature within three months or less since acquisition date Total cash and cash equivalents Supplemental cash flows information: Activities not affecting cash flows Halaman – 5/262– Page 922 Annual Report CIMB NIAGA 2017
  923. Reference SEOJK No . 30-SEOJK.04-2016: Annual Report of Public Company Description I. Page General Provision 1. Annual Report of a listed company is one of the most important sources as the base for investors or shareholders in making investment decision, and is a means of monitoring issuers or public company. 2. Along with the development of Capital Market and the growing needs of investors or shareholders regarding information disclosure, the Board of Directors and the Board of Commissioners are required to improve the quality of information disclosure through annual report. 3. Annual Report should be prepared in an orderly manner and should be informative to provide conveniences for the investors or shareholders in getting the information they need. 4. This Circular Letter of the Financial Service Agency serves a guidelines for Issuers or Public Companies that should be applied in preparing their Annual Report. II. Format Of Annual Report √ 1. Annual Report should be presented in the printed format and in electronic document copy. √ 2. The printed version of the Annual Report should be printed on light-colored paper of fine quality, in A4 size, bound and can be reproduced in good quality. √ 3. The Annual Report presented in electronic document format is the Annual Report converted into pdf format. III. Content Of Annual Report 1. General Provision a. Annual Report should contain at least the following information: 1) summary of key financial information; 18-21 2) stock information (if any); 22-24 3) the Board of Directors report; 56-65 4) the Board of Commissioners report; 48-53 5) profile of Issuer or Public Company; 74-121; 612-645 6) management discussion and analysis; 124-337 7) corporate governance applied by the Issuer or Public Company; 372-573 8) corporate social and environmental responsibility of the Issuer or Public Company; 576-609 9) audited annual report; and 647-911 10) statement that the Board of Directors and the Board of Commissioners are fully responsible for the Annual Report; b. Annual Report may present the information in form of images, charts, tables, and diagrams are presented by mentioning the title and/or clear description, that is easy to read and be understood; 70-71 √ 2. Description of Content of Annual Report a. Summary of Key Financial Information Summary of Key Financial Information contains financial information presented in comparison with previous 3 (three) fiscal years or since commencement of business if the Issuers or the Public Company commencing the business less than 3 (three) years, at least contain: 18-21 1)income/sales; 20 2) gross profit; 20 3) profit (loss); 20 4) total profit (loss) attributable to equity holders of the parent entity and non-controlling interest; 20 5) total comprehensive profit (loss); 20 6) total comprehensive profit (loss) attributable to equity holders of the parent entity and non controlling interest; 20 7) earning (loss) per share; 20 8) total assets; 20 9) total liabilities; 20 10) total equities; 20 11) profit (loss) to total assets ratio; 21 12) profit (loss) to equities ratio; 21 13) profit (loss) to income ratio; 21 14) current ratio; 21 15) liabilities to equities ratio; 21 Annual Report CIMB NIAGA 2017 923
  924. REFERENCE SEOJK No . 30-SEOJK.04-2016: Annual Report of Public Company Description Page 16) liabilities to total assets ratio; and 21 17) other information and financial ratios relevant to the Issuer or Public Company and type of industry; b. Stock Information Stock Information (if any) at least contains: 1) shares issued for each three-month period in the last 2 (two) fiscal years (if any), at least covering: √ b) market capitalization based on the price at the Stock Exchange where the shares listed on; √ c) highest share price, lowest share price, closing share price at the Stock Exchange where the shares listed on; and √ d) share volume at the Stock Exchange where the shares listed on; √ Information in point a) should be disclosed by the Issuer, the public company whose shares is listed or not listed in the Stock Exchange; √ Information in point b), point c), and point d) only be disclosed if the Issuer is a public company whose shares is listed in the Stock Exchange; √ 2) in the event of corporate actions, including stock split, reverse stock, dividend, bonus share, and change in par value of shares, then the share price referred to in point 1), should be added with explanation on: 25 a) date of corporate action; 25 b) stock split ratio, reverse stock, dividend, bonus shares, and change in par value of shares; 25 c) number of outstanding shares prior to and after corporate action; and 25 d) share price prior to and after corporate action; 25 3) in the event that the company’s shares were suspended and/or delisted from trading during the year under review, then the Issuers or Public Company should provide explanation on the reason for the suspension and/or delisting; and - 4) in the event that the suspension and/or delisting as referred to in point 3) was still in effect until the date of the Annual Report, then the Issuer or the Public Company should also explain the corporate actions taken by the company in resolving the suspension and/or delisting; - 56-65 The Board of Directors Report should at least contain the following items: 1) the performance of the Issuer or Public Company, at least covering: 58-82 a) strategy and strategic policies of the Issuer or Public Company; 58-61 b) comparison between achievement of results and targets; and 61 c) challenges faced by the Issuer or Public Company; 61-62 2) description on business prospects; 62-63 3) implementation of good corporate governance by Issuer or Public Company; and 63-64 4) changes in the composition of the Board of Directors and the reason behind (if any); 65 d. The Board of Commissioners Report 48-53 The Board of Commissioners Report should at least contain the following items: 1) assessment on the performance of the Board of Directors in managing the Issuer or the Public Company; 50 2) supervision on the implementation of the strategy of the Issuer or Public Company; 51 3) view on the business prospects of the Issuer or Public Company as established by the Board of Directors; 51 4) view on the implementation of the corporate governance by the Issuer or Public Company; 52 5) changes in the composition of the Board of Commissioners and the reason behind (if any); and 53 6) the frequency and procedure of providing advice to members of the Board of Directors; 52-53 e. Profile of the Issuer or Public Company 74-121; 612-645 Profile of the Issuer or Public Company should cover at least: 1) name of Issuer or Public Company, including change of name, reason of change, and the effective date of the change of name during the year under review; 924 23-24 a) number of outstanding shares; c. The Board of Directors Report 21 22-24 76-79 Annual Report CIMB NIAGA 2017
  925. Description 2 ) access to Issuer or Public Company, including branch office or representative office, where public can have access of information of the Issuer or Public Company, which include: Page 76-77 a)address; √ b) telephone number; √ c) facsimile number; √ d) e-mail address; and √ e) website address; √ 3) brief history of the Issuer or Public Company; 78-83 4) vision and mission of the Issuer or Public Company; 87-89 5) line of business according to the latest Articles of Association, and types of products and/or services produced; 91-93 6) structure of organization of the Issuer or Public Company in chart form, at least 1 (one) level below the Board of Directors, with the names and titles; 84-86 7) the Board of Directors profiles include: 105-110 a) name and short description of duties and functions; √ b) latest photograph; √ c)age; √ d)citizenship; √ e)education; √ f) history position, covering information on: √ (1) legal basis for appointment as member of the Board of Directors to the said Issuer or Public Company; √ (2) dual position, as member of the Board of Directors, member of the Board of Commissioners, and/or member of committee, and other position (if any); and √ (3) working experience and period in and outside the Issuer or Public Company; √ g) competency enhancement education and/or training program for member of the Board of Directors during the year under review (if any); and √ h) disclosure of affiliation with other members of the Board of Directors, members of the Board of Commissioners, and major shareholders (if any) including name of the affiliated party; √ 8) the Board of Commissioners profiles, at least include: 100-104 a)name; √ b) latest photograph; √ c)age; √ d)citizenship; √ e)education; √ f) history position, covering information on: √ (1) legal basis for the appointment as member of the Board of Commissioners who is not Independent Commissioner at the said Issuer or Public Company; √ (2) legal bases for the first appointment as member of the Board of Commissioners who also Independent Commissioner at the said Issuer or Public Company; √ (3) dual position; as member of the Board of Commissioners, member of the Board of Directors, and/or member of committee and other position (if any); and √ (4) working experience and period in and outside the Issuer or Public Company; √ g) competency enhancement education and/or training program for member of the Board of Commissioner during the year under review (if any); √ h) affiliation with other members of the Board of Commissioners, and major shareholders (if any) including name of the affiliated party; and √ i) statement of independence of Independent Commissioner in the event that the Independent Commissioner has been appointed more than 2 (two) periods (if any); √ Annual Report CIMB NIAGA 2017 925
  926. REFERENCE SEOJK No . 30-SEOJK.04-2016: Annual Report of Public Company Description Page 9) in the event that there were changes in the composition of the Board of Commissioners and/or the Board of Directors occurring between the period after year-end until the date the Annual Report submitted, then the last and the previous composition of the Board of Commissioners and/or the Board of Directors shall be stated in the Annual Report; √ 10) number of employees and description of distribution of education level and age of the employee in the year under review; 113-114 11) names of shareholders and ownership percentage at the end of the fiscal year, including: 115-117 a) shareholders having 5% (five percent) or more shares of Issuer or Public Company; 115 b) Commissioners and Directors who own shares of the Issuers or Public Company; and 116 c) groups of public shareholders, or groups of shareholders, each with less than 5% (five percent) ownership shares of the Issuers or Public Company; 12) number of shareholders and ownership percentage at the end of the fiscal year, based on: 117 a) ownership of local institutions; √ b) ownership of foreign institutions; √ c) ownership of local individual; and √ d) ownership of foreign individual; √ 13) information on major shareholders and controlling shareholders the Issuers of Public Company, directly or indirectly, and also individual shareholder, presented in the form of scheme or diagram; 94; 115 14) name of subsidiaries, associated companies, joint venture controlled by Issuers or Public Company, with entity, percentage of stock ownership, line of business, total assets and operating status of the Issuers of Public Company (if any); 94-97 95-97 For subsidiaries, include the addresses of the said subsidiaries; 15) chronology of share listing, number of shares, par value, and bid price from the beginning of listing up to the end of the financial year, and name of Stock Exchange where the Issuers of Public Company shares are listed; 118- 16) chronology of securities listing in addition to the said security in point 15), which at least should contain the name of the Securities, year of issuance, date of maturity, bid price, and rating of the securities (if any); 119 17) name and address of capital market supporting institutions and/or professionals; 120 18) in the event that the capital market supporting professionals provide services on a regular basis to the Issuer or the Public Company, then information on the services provided, fee and period of assignment should be disclosed; and 121 19) awards and/or certification of national and international scales bestowed on the Issuer or Public Company during the last fiscal year (if any), covering: 40-45 a) name of award and/or certification; √ b) organization/institution that gives the awards; and √ c) award/certificate validity period (if any); √ f. Management Discussion and Analysis Management Analysis and Discussion Annual should contain discussion and analysis on financial statements and other material information emphasizing material changes that occurred during the year under review, at least including: 124-337 1) operational review per business segment, according to the type of industry of the Issuer or Public Company including: 130-200 a) production, including process, capacity, and growth; 130-173 b) income/sales; and 189-196 c)profitability; 195-196 2) comprehensive financial performance analysis which includes a comparison between the financial performance of the last 2 (two) fiscal years, and explanation on the causes and effects of such changes, among others concerning: 177-198 a. current assets, non-current assets, and total assets; 177-184 b) short term liabilities, long term liabilities, total liabilities; 184-188 c)equities; 926 116-117 188 d) sales/operating revenues, expenses and profit (loss), other comprehensive revenues, and total comprehensive profit (loss); and 189-196 e) cash flows; 197-198 Annual Report CIMB NIAGA 2017
  927. Description 3 ) the capacity to pay debts by including the computation of relevant ratios; Page 206-200 4) accounts receivable collectability of the Issuer or Public Company, including the computation of the relevant ratios; 208 5) capital structure and management policies concerning capital structure, including the basis for determining the said policy; 209-210 6) discussion on material ties for the investment of capital goods, including the explanation on at least: 210 a) the purpose of such ties; 210 b) source of funds expected to fulfill the said ties; 210 c) currency of denomination; and 210 d) steps taken by the Issuer of Public Company to protect the position of a related foreign currency against risks; 210 7) discussion on investment of capital goods which was realized in the last fiscal year, at least include: 210 a) type of investment of capital goods; 210 b) objective of the investment of capital goods; and 210 c) value of the investment of capital goods; 210 8) material Information and facts that occurring after the date of the accountant’s report (if any); 211-212 9) information on the prospects of the Issuer or the Company in connection with industry,economy in general, accompanied with supporting quantitative data if there is a reliable data source; 226-229 10) comparison between target/projection at beginning of year and result (realization), concerning: 211 a)income/sales; 211 b) profit (loss); 211 c) capital structure; or 211 d) others that deemed necessary for the Issuer or Public Company; 211 11) target/projection at most for the next one year of the Issuer or Public Company, concerning: 211 a)income/sales; 211 b) profit (loss); 211 c) capital structure; or 211 d) dividend policy; 211 e) or others that deemed necessary for the Issuer or Public Company; 12) marketing aspects of the company’s products and/or services the Issuer or Public Company, among others marketing strategy and market share; 13) description regarding the dividend policy during the last 2 (two) fiscal years, at least: 211 230-233 212 a) dividend policy; 212 b) the date of the payment of cash dividend and/or date of distribution of non-cash dividend; 212 c) amount of cash per share (cash and/or non cash); and 212 d) amount of dividend per year paid; 212 14) use of proceeds from Public Offerings, under the condition of: 213-214 a) during the year under review, on which the Issuer has the obligation to report the realization of the use of proceeds, then the realization of the cumulative use of proceeds until the year end should be disclosed; and 213-214 b) in the event that there were changes in the use of proceeds as stipulated in the Regulation of the Financial Services Authority on the Report of the Utilization of Proceeds from Public Offering, then Issuer should explain the said changes; 213-214 15) material information (if any), among others concerning investment, expansion, divestment, acquisition, debt/capital restructuring, transactions with related parties and transactions with conflict of interest that occurred during the year under review, among others include: 214 a) transaction date, value, and object; 214 b) name of transacting parties; 214 c) nature of related parties (if any); 214 d) description of the fairness of the transaction; and 214 e) compliance with related rules and regulations; 214 Annual Report CIMB NIAGA 2017 927
  928. REFERENCE SEOJK No . 30-SEOJK.04-2016: Annual Report of Public Company Description Page 16) changes in regulation which have a significant effect on the Issuer or Public Company and impacts on the company (if any); and 17) changes in the accounting policy, rationale and impact on the financial statement (if any); 221-223 g. Corporate Governance of the Issuer or Public Company 372-573 Corporate Governance of the Issuer or Public Company contains at least: 1) the Board of Directors, covering: 416-426 a) the tasks and responsibilities of each member of the Board of Directors; 417-419 b) statement that the Board of Directors has already have board manual or charter; 417 c) procedure, legal basis, structure, and amount of remuneration of each member of the Board of Directors, relation between remuneration and performance of the Issuer or Public Company; 436-443 d) the policies and the frequency of the meeting of the Board of Directors, including the joint meeting with Board of Commissioners, and attendance of member of the Board of Directors in the said meeting; 444-459 e) information on the resolution from the AGM of the previous 1 (one) year, covering: 392-395 f) (1) AGM resolutions that were realized during the fiscal year; and 392-395 (2) explanation for the unrealized resolution; 392-395 information regarding the AGM resolution in the year under review, including: 383-391 (1) AGM resolutions that were realized during the fiscal year; and 383-391 (2) explanation for the unrealized resolution; 383-391 g) assessment on the performance of the committee under the Board of Directors; 426 2) the Board of Commissioners, among others include: 396-415 a) duties and responsibilities of the Board of Commissioners; 397-399 b) statement that the Board of Commissioner has already have the board manual or charter; 401 c) procedure, legal basis, structure, and amount of remuneration for each member of Board of Commissioners; 436-443 d) policies and frequency of meeting of the Board of Commissioners, including meeting with the Board of Directors, and attendance of each member of the Board of Commissioners in the said meetings; 444-459 e) policies of the Issuer or Public Company regarding the assessment on the performance of the Board of Directors and Board of Commissioners and the implementation, at least covering: 434-435 f) (1) procedure for the implementation of performance assessment; 434-435 (2) criteria for assessment; and 434-435 (3)assessor; 434-435 assessment on the performance of the committees under the Board of Commissioners; and g) in the event that the Board of Commissioners does not establish the Nomination and Remuneration Committee, than should contain at least: 413 n.a (1) reason not to establish the committee; and n.a (2) procedure of nomination and remuneration performed in the year under review; n.a 3) Sharia Supervisory Board, for Issuer or Public Company that conduct business based on sharia law, as stipulated in the articles of association, at least containing: 68; 111-112; 565-572 a)name; 111-112 b) duty and responsibility of Sharia Supervisory Board; and 566-567 c) frequency and procedure in providing advice and suggestion, as well as the compliance of Sharia Principles by the Issuer or Public Company in the Capital Market; 567-568 4) Audit Committee, among others covering: 462-467 a) name and position in the committee; 462-463 b)age; 462-463 c)citizenship; 462-463 d) education background; 462-463 e) history of position; including: 928 218-221 462-463 (1) legal basis for the appointment as member of the committee; 462-463 (2) dual position, as member of Board of Commissioners, member of Board of Directors, and/or member of committee, and other position (if any); and 462-463 (3) working experience and period in and outside the Issuer or Public Company; 462-463 Annual Report CIMB NIAGA 2017
  929. Description f ) period and terms of office of the member of Audit Committee; g) statement of independence of the Audit Committee; h) policies and implementation of the frequency of meeting of the Audit Committee and attendance of member of Audit Committee; i) education and/or training during the year under review (if any); and j) the activities of the Audit Committee in the year under review, in accordance with the Audit Committee Charter; 5) other committee of the Issuer or the Public Company formed to support the function and duty of the Board of Directors and/or the Board of Commissioners, such as Nomination and Remuneration Committee, containing: Page 464 464 465-466 464 465-466 468-473; 474-478; 479-483 a) name and position in the Committee; 468-469; 474-475; 479-482 b)age; 468-469; 474-475; 479-482 c)citizenship; 468-469; 474-475; 479-482 d) education background; 468-469; 474-475; 479-482 e) history of position, including: 468-469; 474-475; 479-482 f) (1) legal basis for the appointment as member of the committee; 468-469; 474-475; 479-482 (2) dual position, as member of Board of Commissioners, member of Board of Directors, and/or member of committee, and other position (if any); and 468-469; 474-475; 479-482 (3) working experience and period in and outside the Issuer or Public Company; 468-469; 474-475; 479-482 period and terms of office of the member of Audit Committee; 470; 476; 482 g) description of duty and responsibility; 470; 476; 483 h) statement that the Committee has already have the Charter; 468; 474; 479 i) statement of independence of the Committee; 470; 476; 482 j) policies and frequency of meeting of the committee, and attendance of each member of the committee in the said meetings; 472; 478; 483 k) education and/or training during the year under review (if any); and 469; 476; 482 l) 470-471; 477; 483 brief description on the activities of the committee; 6) Corporate Secretary, including: 496-500 a)name; 107-496 b)domicile; 107-496 c) history of position, including: 107-496 (1) legal basis for the appointment as Corporate Secretary; and 107-496 (2) working experience and period in and outside the Issuer or Public Company; 107-496 d) education background; e) education and/or training during the year under review; and f) brief description on the implementation of duties of the Corporate Secretary in the year under review; 107-496 497 497-498 7) Internal Audit Unit, among others including: 505-509 a) name of Head of Internal Audit Unit; 506 b) history of position, including: 506 (1) legal basis for the appointment as Head of Internal Audit Unit; and 506 (2) working experience and period in and outside the Issuer or Public Company; 506 c) qualification or certification as internal auditor (if any); 506 d) education and/or training during the year under review; 506 e) structure and position of Internal Audit Unit; 507 description of duties and responsibilities; 507-508 f) Annual Report CIMB NIAGA 2017 929
  930. REFERENCE SEOJK No . 30-SEOJK.04-2016: Annual Report of Public Company Description Page g) statement that the Internal Audit Unit has already have Internal Audit Unit charter; and 505 h) brief description on the implementation of duty of Internal Audit Unit during the year under review; 8) description on internal control system adopted by the Issuer or Public Company, at least covering: a) financial and operational control, and compliance to the other prevailing rules; and 508-509 521-522 521-522 b) review on the effectiveness of internal control systems; 522 9) risk management system implemented by the company, at least includes: 234-337; 519-520 a) general description about the company’s risk management system the Issuer or Public Company; b) types of risk and the management; and 234-250; 519 519-520; 264-337 c) review the effectiveness of the risk management system applied by the Issuer or Public Company; 520 10) important cases faced by the Issuer or Public Company, subsidiaries, current members of the Board of Commissioners and the Board of Directors, among others include: 523-526 a) substance of the case/claim; √ b) status of settlement of case/claim; and √ c) potential impacts on the condition of the Issuer or Public Company; √ 11) information about administrative sanctions imposed to Issuer or Public Company, members of the Board of Commissioners and the Board of Directors, by the Capital Market Authority and other authorities during the last fiscal year (if any); 12) information about codes of conduct of the Issuer or Public Company, includes: 526 531-532 a) key points of the code of conduct; 531 b) socialization of the code of conduct and enforcement; and 531-532 c) statement that the code of conduct is applicable for the Board of Commissioners, the Board of Directors, and employees of the Issuer of Public Company; 13) information about corporate culture (if any) of the Issuer or Public Company; 531 533 14) description of employee or management stock ownership program of the Issuer or Public Company, among others contains: 212-213 a) number of share and/or option; √ b)period; √ c) requirement for eligible employee and/or management; and √ d) exercised price; √ 15) description of whistleblowing system at the Issuer or Public Company (if any), among others include: a) mechanism for violation reporting; 536-537 536 b) protection for the whistleblower; 536 c) handling of violation reports; 536-539 d) unit responsible for handling of violation report; and 537 e) results from violation report handling, at least includes: 537 (1) number of complaints received and processed during the fiscal year; and √ (2) follow up of complaints; √ 16) implementation of the Guidelines of Corporate Governance for Public Companies for Issuer issuing Equitybased Securities or Public Company, including: 538-542 a) statement regarding recommendation that have been implemented; and/or 538-542 b) description of recommendation that have not been implemented, along with the reason and alternatives of implementation (if any); 538-542 h. Social and Environmental Responsibility of the Issuer or Public Company 576-609 1) Information on social and environmental responsibility of the Issuer or Public Company that covers policies, types of programs, and cost, among others related to: a) environment, among others: (1) the use of environmentally friendly and recyclable materials and energy; 930 583-587 583-586 Annual Report CIMB NIAGA 2017
  931. Description Page (2) the waste treatment systems of the Issuer or Public Company; 583-586 (3) mechanism for filling complaint on environmental issues; and 586 (4) environmental certifications; b) employment practices, occupational health and safety, among others: (1) gender equality and equal work opportunity; (2) work and safety facilities; 587 588-591 588 590-591 (3) employee turnover; 591 (4) work incident rate; 591 (5) education and/or training; 589 (6) remuneration; and 590 (7) mechanism for filling complaint on employment issues; c) social and community development, among others: (1) the use of local work force; (2) empowerment of local communities among others through the use of raw material produced by the community or by providing education; (3) improvement of public social facilities and infrastructure; (4) other form of donation; and (5) dissemination of the policies and procedures of anti-corruption at the Issuers or Public Company, and training on anti-corruption (if any); d) products and/or services responsibilities, among others: (1) consumers’ health and safety; 590 592-605 592 592-600 603 601-604 589 606-608 607 (2) products and/or services information; and 607 (3) facilities, number, and resolution of consumer complaint. 607 2) In the event that the Issuer or the Public Company imparts information on social and environmental responsibility as referred to in point 1) in separate report such corporate social and environmental responsibility report, or sustainability report, then the Issuers or the Public Company is excluded from disclosing information on social and environmental responsibility in Annual Report; and 518 3) The said report in point 2) should be submitted to the Financial Service Authority along with the Annual Report; √ i. Audited Annual Financial Statement Financial Statements included in Annual Report should be prepared in accordance with the Financial Accounting Standards in Indonesia and audited by an Accountant. The said financial statement should be included with statement of responsibility for financial report as stipulated in the legislations in the Capital Markets sector governing the responsibility of the Board of Directors on the financial report or the legislations in the Capital Markets sector governing the periodic reports of securities company in the event the Issuer is a Securities Company; and j. Letter of Statement of the Board of Directors and the Board of Commissioners regarding the Responsibility for Annual Reporting Letter of statement of the Board of Directors and the Board of Commissioners regarding the responsibility for Annual Reporting should be prepared according to the format of letter of statement of member of Board of Directors and the Board of Commissioners regarding the responsibility for Annual Reporting as attached in the Attachment, which is an integral part of this Circulation Letter of the Financial Services Authority. Annual Report CIMB NIAGA 2017 647-911 70-71 931
  932. Reference SEOJK No . 43-SEOJK.03-2016: Annual Report of Conventional Commercial Bank Description Page IV. Annual Report Publication 1. General Provision a. Financial statements in the Annual Report should be presented both individually and consolidated with Subsidiaries for 1 (one) Fiscal Year. √ b. In the event the bank has no Subsidiary the consolidation column can be dispensed. √ c. Financial statements in the Annual Report is presented in the form of comparison, in accordance with financial accounting standards. √ d. If there is a new accounting standard in reporting position, the comparison position refer to financial accounting standard about accounting policy, accounting estimation changes, and errors. √ e. The Bank’s Annual Report should be prepared in Bahasa Indonesia. In the event that the Annual Report is also made in a language other than in Bahasa Indonesia, either on the same or a separate document, then the Annual Report referred to should contain the same information. In cases where there is any different interpretation due to the transfer of language, the financial statement in the Indonesian language shall become the reference. √ f. √ Financial statements in annual report must be audited by Public Accountant. The financial statements must state the Public Accountant office name, auditor’s name (partner in charge), and auditor’s opinion. g. Annual Report should be presented in the Bank’s website and reported to Financial Services Authorities. √ 2. Scope of Annual Report Annual Publication Report include: a. General Information General Information in Annual Report should at least include: 1) composition of the Board of Directors, the Board of Commissioners, and executive officers including their positions and CV; 2) composition of Shareholders, including the names and the number of shares; 100-110; 614-626 115-117 3) Bank business development and Bank business group including Sharia Business Unit (if any) among other: a) summary on important financial data should at least include net interest income, operating income, profit before tax, net profit, earnings per share, earning assets, third party funds, fund borrowings, total cost of funds, capital, number of shares of issued and fully paid up capital; and b) performance and financial ratios, the coverage of which mentioned in point III.2.b. 18-21; 177-198 18-21 177-198 4) strategy and management policy used by the Bank’s management, include Sharia Business Unit (if any); 130-173 5) management report providing information regarding Bank management include Sharia Business Unit (if any), at least include: a) organization structure; 84-86 b) main activities; 91-92 c) information technology; 360-369 d) type of product and services offered including micro, small and medium enterprise lending (UMKM); 92-93 e) interest rates of funds and provision of funds; 201-202 economic development and market target; 126-129 f) g) local and foreign network and business partners; 120 h) number, type, and locations of offices; 98-99; 627-645 i) ownership of the Board of Directors, Commissioners and shareholders in the bank business group; j) important changes occurring in the bank and bank business group during the year under review; k) forecasted important; and l) 116 8; 130-196 224-229 human resources, including the number, educational structure, training and development. 113-114; 342-359 b. Annual Financial Statements 647-911 1) Financial Report, at least consists of: a) Statement of Financial Position (Balance Sheet); 651-654 b) Statement of Income and Other Comprehensive Income; 655-656 c) Statement of Changes in Equity; 657-658 d) Statement of Cash Flows; and 659-660 e) Notes to the Financial Statements, including information on commitments and contingencies. 661-911 2) Additional Disclosure for Bank that is a Part of a Business Group a) Bank should add information in Annual Publication Report regarding: (1) Consolidated financial statements of the Parent Entity which include the financial statements of all entities of the business group in financial sector; or 932 912-922 Annual Report CIMB NIAGA 2017
  933. Description Page (2) Consolidated financial statements of the Parent Entity which include the financial statements of all entities of the business group in financial and non financial sector, in the event that there is no consolidated financial statements mentioned in point (1). b) Consolidated financial statements of the Parent Entity as mentioned in point a) should at least contain: (1) Statement of Financial Position (Balance Sheet); 912-915 (2) Statement of Income and Other Comprehensive Income; 916-917 (3) Statement of Changes in Equity; and 918-920 (4) Commitment and Contingency Report. 3) Public Accountant’s opinion which contains opinion of financial statements. 649-650 c. Financial performance, consisting of: 1) calculation of Capital Adequacy Ratio (CAR); 209; 804 2) quantity and quality of Earning Assets and Allowance for Impairment Losses (CKPN), which at least information grouping: 193; 704 a) financial instruments; b) provision of funds to Related Parties; c) loans to Micro, Small and Medium Enterprises (SMEs) debtors; 723; 811; 909-910 517148-153 d) loans classified as special mention (including restructured loans and property loans); and 182-183 e) Allowance for Losses on Assets (PPA) that should be maintained based on financial instruments. 193; 723 3) bank financial ratio, at least include: a) Capital Adequacy Ratio (CAR); 209; 804 b) Return on Asset (ROA); 21; 199 c) Return on Equity (ROE); 21 d) Operating Expenses to Operating Income ratio; e) Percentage of violation and lending in Excess of Legal Lending Limit; f) Net Open Position ratio (NOP); and g) Liquidity Coverage Ratio (LCR) individual and consolidated. 4) spot and derivative transactions. 21 21; 199 21 314-315 214-215 d. Capital disclosure and risk management implementation 1) Capital disclosure and risk management implementation by the bank at least include information about risk profile and possible loss faced by the Bank, and risk management as stated in the regulation on capital and risk management. 234-337 2) Capital disclosure and risk exposure disclosure and risk management implementation aims to enhance transparency to the public by determining minimum requirements of disclosure, so that the public can assess the risk profile and capital adequacy of the Bank. 234-337 3) The Bank should have written policy approved by the Board of Directors regarding the disclosures to be reported and internal controls in the disclosure process. 234-337 4) Disclosure of capital and risk management implementation, among others: a) Capital disclosure, at least cover: (1) Qualitative disclosures, among others information about: (a) capital structure, covering explanation on the equity instruments issued by the bank including: characteristics, duration of instrument, callable feature, features step-up, yield rate, and rating (if available); and 250-251 (b) capital adequacy, covering explanations on the approach used by the Bank in assessing capital adequacy to support current and future activities. 251-254 (2) Quantitative disclosures covering capital structure of the Bank. 254-260 b) Risk exposure and risk management disclosure, at least include: (1) Disclosure on the Bank’s Risk Management in general, including: (a) active supervision of the Board of Commissioners and the Board of Directors; 239-240 (b) adequacy of risk management policies and procedures, and determination of risk management limits; 240-243 (c) adequacy of risk identification, measurement, monitoring and mitigation processes as well as risk management information system; and 243-247 (d) comprehensive internal control system. 247-250 (2) Disclosure on risk exposure and implementation of Bank risk management in particular, covering: 261-263 (a) Credit Risk; 264-304 (b) Market Risk; 304-309 (c) Liquidity Risk; 309-325 Annual Report CIMB NIAGA 2017 933
  934. Reference SEOJK No . 43-SEOJK.03-2016: Annual Report of Conventional Commercial Bank Description Page (d) Operational Risk; 326-331 (e) Legal Risk; 332 (f) Reputation Risk; 335-337 (g) Strategic Risk; and 332-334 (h) Compliance Risk. 334-335 (3) Disclosure of Credit Risk as referred to in point IV.2.d.4).b).(2).(a) above, which includes: 264-304 (a) general disclosure, consist of: i. 264-282 qualitative disclosure: i) information regarding the application of Credit Risk management including Credit Risk management organization, Credit Risk management strategies for activities that have a significant credit risk exposure, credit concentration risk management policies and Mechanism for Credit Risk measurement and control; 264-268 ii) definition of overdue receivables and impaired receivables, and 269 iii) Description on the approach used for the Allowance for Loan Impairment Losses (CKPN), individually and collectively, as well as the statistical methods used in the calculation of CKPN. 269 ii. quantitative disclosure: i) disclosure on Net Receivables by Region; 270-271 ii) disclosure on Net Receivables by Contractual Maturity; 272-273 iii) disclosure on Net Receivables by Economic Sector; 274-277 iv) disclosure on Receivables and Provisioning by Region; 278-279 v) disclosure on Receivables and Provisioning by Economic Sectors; and 280-281 vi) details on Movements of Allowances for Impairment Losses. 282 (b) disclosure of Credit Risk using the standardized approach, which consists of: 282-290 i. qualitative disclosure: i) information regarding the use rating in the calculation of Risk Weighted Assets (RWA) for credit risk; 282-283 ii) category of portfolios that use the rating; 283 iii) rating agency; and 283 iv) disclosure of counterparty Credit Risk, including: 283 – types of mitigation instruments commonly accepted/delivered by the Bank; √ – methodology of calculating internal capital adequacy related to counterparty credit risk in the internal of the Bank; and √ – methodology of determining credit limits related to counterparty credit risk as stipulated in the application of risk management for commercial Banks. √ ii. quantitative disclosure: i) disclosure of net receivables by Portfolio and Rating Category; and 284-287 ii) disclosure on counterparty Credit Risk, among others consist of net receivables arising from the exposure of: – over the counter derivative transactions; – repo transactions; and 288-289 288 – reverse repo transactions, 290 as stipulated in the guidelines for the calculation of Risk Weighted Assets (RWA) for Credit Risk using the standardized approach (c) disclosure on Credit Risk mitigation using the standardized approach, comprising: i. qualitative disclosure: i) information regarding the bank’s policy for the main types of collateral accepted; 291 ii) policies, procedures, and processes to assess and manage collateral; 291 iii) main warrantors/guarantors and their credit worthiness; and 291 iv) information on concentration level arising from the use of Credit Risk mitigation techniques. 291 ii. quantitative disclosure: i) disclosure of Net Receivables based on Risk Weighting after Credit Risk Mitigation; and ii) disclosure of Net Receivables and Credit Risk Mitigation Techniques. (d) disclosure of asset securitization, which consists of: 934 292-295 296-299 300 Annual Report CIMB NIAGA 2017
  935. Description i . Page qualitative disclosure: i) general disclosure of risk management, which includes objective of asset securitization, the effectivity of securitization activities in transferring the Bank’s credit risk to other party’s over any transaction that underlay the asset securitization activities, the Bank’s functions in asset securitization activity, and an explanation of the Bank’s involvement in those functions; 300 ii) summary of accounting policies for asset securitization activities, which include, transactions treated as sales or funding, recognition of gains from securitization activities, and assumptions used to assess the presence or absence of on going involvement in the securitization activity, including changes from the previous period and the impact of those changes; and 300 iii) names of the rating used in asset securitization activities and asset securitization exposures rated by the said agency. 300 ii. quantitative disclosure: i) securitization transaction disclosure; and ii) securitization Transaction Activity Summary in which the Bank Acts as the Originator. (e) quantitative disclosure of Credit Risk RWA calculation using standardized approach. 300 300 301-304 (4) Disclosure of Market Risk as referred to in point IV.2.d.4).b).(2).(b), above using standardized, comprised of: (a) Qualitative disclosure: i. information regarding the application of risk management, including: i) 304-305 Market risk management organization; ii) trading book and banking book portfolio management, as well as the valuation methodology used; and 304-305 iii) market risk measurement mechanism for monitoring and periodic risk and for capital adequacy calculations, both on banking book and on trading book. 304-305 ii. trading book and banking book portfolio which were taken into account in the Capital Adequacy Ratio (CAR); 306-307 iii. disclosure of information on Interest Rate Risk in Banking Book (IRRBB) including the assumptions used in the monitoring of IRRBB, such as non-maturity deposits and the prepayment information, as well as the frequency of measurement of IRRBB, as stipulated in the provisions regarding the application of risk management for Commercial Banks; and 307 iv. measures and plans to anticipate Market Risk on foreign currency transactions, because of changes in exchange rates and of fluctuations of interest rates, including descriptions of all fundings and contracts without protection or hedging, and debts with floating rate or not determined in advance. 308-309 (b) Quantitative disclosure: i. Market Risk Disclosures using Standardized Measurement Methods The disclosure referred to as stipulated in the guidelines for the use of a standard method in the calculation of CAR for Commercial Bank, taking into account the Market Risk. ii. Disclosure of Interest Rate Risk in the Banking Book (IRRBB) Exposure 309 309 The disclosure of IRRBB exposure, namely the increase or decrease in economic value and earnings against the movements in interest rates based on the gap report format prepared by the Bank to meet the provisions concerning the assessment on the soundness of commercial banks and the application of risk management for Commercial Banks. (5) Disclosure of Liquidity Risk as referred to in point IV.2.d.4).b).(2).(c) above include: 309, 325 (a) Qualitative disclosures: i. information on the implementation of risk management for liquidity risk, including: 310-314 i) 310-314 liquidity risk management organization; ii) funding strategy; 310-314 iii) Liquidity Risk mitigation techniques including early warning indicators of liquidity problems, and emergency funding plan; and 310-314 iv) the mechanisms of measurement and stress testing and control liquidity risk; 310-314 ii. general overview of the Bank’s liquidity conditions, based on the calculation of the LCR during the year under review, for banks that are required to prepare and publish LCR report, as stipulated in the Financial Services Authority Regulation on liquidity coverage ratio for Commercial Bank. 314-317 (b) Quantitative disclosure: i. Disclosure of Rupiah and Forex Maturity Profile; and Annual Report CIMB NIAGA 2017 318-325 935
  936. Reference SEOJK No . 43-SEOJK.03-2016: Annual Report of Conventional Commercial Bank Description Page ii. Disclosure of LCR; 324 324 The said disclosure is applied only for Banks that are required to prepare and publish LCR report, as stipulated in the Financial Services Authority Regulation on liquidity coverage ratio for Commercial Bank. (6) Disclosure of Operational Risk as mentioned in point IV.2.d.4).b).(2).(d) above, include: 326-331 (a) Qualitative disclosure, which include information regarding the application of risk management for Operational Risk, including: i. Operational Risk management organization; 326-331 326-331 ii. mechanism used by the Bank for identifying and measuring operational risk; and 326-331 iii. mechanism for operational risk mitigation. 326-331 (b) Quantitative disclosure with coverage refer to provisions on the calculation of ATMR for Operational Risk using Basic Indicator Approach (BIA) 331 (7) Disclosure of Legal Risk as referred to in point IV.2.d.4).b).(2).(e) above includes qualitative disclosure on risk management for Legal Risks which include: 332 (a) Legal Risk management organization; and 332 (b) Legal Risk control mechanism. 332 (8) Disclosure of Reputation Risk as referred to in point IV.2.d.4).b).(2).(f) above includes qualitative disclosure on risk management for Reputation Risks which include: 335-337 (a) Reputation Risk management organization, including the implementation of risk management for Reputation Risk by related units (Corporate Secretary, Public Relation, and related Business units); 335-336 (b) policies and mechanisms to improve the quality of services to customers and other stakeholders to control Reputation Risk; and 336 (c) Risk Reputation management under critical situation. 336-337 (9) Disclosure of Strategic Risk as referred to in point IV.2.d.4).b).(2).(g) above includes qualitative disclosure on risk management for Strategic Risks which include: 332-334 (a) Strategic Risk management organization; 332-333 (b) policies that allow the Bank to identify and respond the changes in external and internal business environment; and 333-334 (c) mechanist to measure the progress of the business plan. 334 (10) Disclosure of Compliance Risk as referred to in point IV.2.d.4).b).(2).(h) above includes qualitative disclosure on risk management for compliance risks which include: (a) Compliance Risk management organization; 334-335 334-335 (b) risk management strategies and effectiveness of risk management implementation for Compliance Risk, particularly in order to ensure the policies and procedures are in compliance with the applicable standards in general, applicable rules and/or legislation; and 335 (c) mechanism for monitoring and controlling Compliance Risk. 335 5) In the event of change in information that is prone to rapid change, among others, related to changes in economic conditions, technology, regulations, and internal policies of the Bank/business group, then the Bank should disclose the risk exposure and other related matters that are applied by the Bank as referred to in point IV. 2.d.4).b) in the Bank’s website on a quarterly basis. √ e. Specific Disclosure of Bank which become the part of Business Group and/or its Subsidiaries, at least consisting of: 1) structure of the Bank business group, consisting of: a) business group structure, among other include the bank, subsidiaries, affiliates, financial holding company, and/or parent company to the ultimate shareholder; 115; 460 b) structure of the management relationship in the Bank’s business; and 668-675 c) Shareholders acting on behalf of other shareholders (shareholders acting in concert). The definition of a shareholder acting on behalf of other shareholders is individual shareholders or companies/legal entities who have the common goal of controlling the Bank, based or not based on agreement. 2) Transactions between the bank and related parties in the Bank’s business group, taking into account the following matters: 833-836 a) information of transactions with Related Parties conducted by the Bank or any company or legal entity in the Bank business group working in the field of finance; 834-836 b) Related Party is party as stipulated in the applicable statement of Financial accountancy standard; 936 115 833 Annual Report CIMB NIAGA 2017
  937. Description Page c ) types of transactions with Related Party are, among others: f. (1) cross shareholding; 833 (2) transactions from one business group acting for the interest of other business groups; 833 (3) management of short term liquidity in business group; 833 (4) provision of funds distributed or received by another company in one business group; 833 (5) exposure to majority shareholder in the form of loans, commitments and contingency; and 833 (6) buying or selling of assets with another company in a business group, including repurchase agreements (repo). 833 3) Transactions with Related Parties which conduct by every entities in the Bank’s business group working in the field of finance; 833-836 4) Funds provision, commitment or other equal facilities of each company or legal entity belonging to one business group with the Bank on a debtor already obtaining fund provisions from the bank; 830-832 5) Consolidated capital disclosure, risk management applied by the Bank, at least include description on type of risk, potential loss and risk mitigation, as referred in point IV.2.d.; and 234-337 6) Prohibition, restriction and/or other significant barriers to transfer funds or in order to meet the required capital by the Authority (regulatory capital) between the Bank and other entities in the group. 214; 517; 564 Other disclosures in accordance with other Financial Accounting Standards which has not been included in point a through e. n.a 3. The Bank, in preparing its Annual Publication Report should refer to Annual Report Guidelines for Conventional Commercial Bank – Annual Publication Report (Annual Report) which is the attachment and integral part of this Financial Services Authorities Circular Letter. √ 4. Specific Report which is Submitted to Financial Services Authority on an Annual Basis for Banks that are a Part of a Business Group and/or that Own Subsidiaries regarding: a. Annual report of Parent Entity that covers: 1) annual report of all entities in business groups engaging in financial business; or 2) annual report of all entities in business groups engaging in financial and non-financial business, in the event that there is no annual report referred to in point 1). In the event that the Parent Entity does not prepare the said annual report, Bank should submits annual consolidated financial statements of the Parent Entity covering all entities in the group engaging in financial business or annual consolidated financial statements of the Parent Entity covering all entities in the group engaging in financial and non-financial business, which have been audited by a Public Accountant. b. Annual report of Controlling Shareholders with majority share ownership pr annual report of entities which directly controls the Bank In the event that the Controlling Shareholders or entity does not prepare the said annual report, the Bank is required to submit certain report in the form of annual financial statement of controlling shareholders or entity which have been audited by a public accountant. c. Annual report of Subsidiaries In the event that the Subsidiary does not prepare the said annual report, the Bank is required to submit certain report in the form of annual financial statement of Subsidiary which have been audited by a Public Accountant. d. Annual report of head office for branch offices located overseas. Annual Report CIMB NIAGA 2017 937
  938. Annual Report Award Criteria 2017 Criteria and Explanations Page I . General 1. The Annual Report shall be written in good and correct Indonesian, and is recommended to be presented in English √ 2. The Annual Report shall be printed with good quality using readable type and size of fonts √ 3. The Annual Report shall present clear identity of the company Company name and the annual report financial year shall be presented on: 1. Front Cover; 2. Side Cover; 3. Back Cover; and 4. Every page √ 4. The Annual Report shall be posted in the company’s website √ Including the latest annual report as well as those for the last four years, at least. 18-21 II. Key Financial Highlights 1. Income statement in comparison for 3 (three) financial years or since the commencement of business if the company has been running its business activities for less than 3 (three) years Information contains the following: 1. Income; 2. Profit (loss): a. Attributable to equity holders of the parent entity; and b. Attributable to non controlling interest; 3. Total comprehensive profit (loss): a. Attributable to equity holders of the parent entity; and b. Attributable to non controlling interest; 4. Earning (loss) per share. 20 20 20 20 20 Note: If the company does not have subsidiaries, the profit (loss) and other comprehensive income is presented in total. 2. Financial position in comparison for 3 (three) financial years or since the commencement of business if the company has been running its business activities for less than 3 (three) years Information contains the following: 1. Total investment on associates; 2. Total assets 3. Total liabilities; and 4. Total equity. 3. 20 20 20 20 20 Financial ratio in comparison for 3 (three) financial years or since the commencement of business if the company has been running its business activities for less than 3 (three) years 21 Information covers 5 (five) financial ratios, which are generally applied and relevant to the company’s industry. 4 Share price information in tables and charts 1. Number of shares outstanding; 2. The table forms contain the following information: a. Market capitalization based on share price on the Stock Exchange where the shares are listed; b. Highest, lowest and closing share price based on share price on the Stock Exchange where the shares are listed; and c. Trading volume of shares on the Stock Exchange where the shares are listed. 3. The graph forms contain at least the following information: a. The closing price of shares based on share price on the Stock Exchange where the shares are listed; and b. Trading volume of shares on the Stock Exchange where the shares are listed 22-24 23 23 √ √ √ 24 √ √ For each quarter in the latest 2 (two) financial years. Note: Should be disclosed if the company does not have market capitalization, share price, and share trading volume. 5. Information regarding outstanding bonds, sukuk or convertible bonds, in 2 (two) latest financial years 26-29 Information contains: 1. Number of outstanding bonds, sukuk or convertible bonds; 2. Interest rate/yield; 3. Maturity date; and 4. Rating of bonds/sukuk in 2015 and 2016. 26-29 26-29 26-29 26-29 Note: Should be disclosed if the company does not have outstanding bonds, sukuk or convertible bonds. 938 Annual Report CIMB NIAGA 2017
  939. Criteria and Explanations Page III . Board of Commissioners and Board of Directors’ Report 48-65 1. Board of Commissioners’ Report 56-65 Contain the following: 1. Assessment on the performance of the Board of Directors in managing the company and the basis for such evaluation; 2. Views on the business prospects of the company as prepared by the Board of Directors and the basis for such consideration; 3. Views on the implementation/management of the company's whistleblowing system (WBS), and the role of the Board of Commissioners in the WBS; and 4. Changes in the composition of the Board of Commissioners (if any) and the reason for such changes. 2. 3 50 51 52 53 Board of Directors' report 56-65 Contain the following: 1. Analysis of the company's performance, covering among others: a. strategic policies; b. comparison between targets and achievements; and c. challenges faced by the company and initiatives to deal with those challenges; 2. Analysis on business prospects; 3. Developments in the implementation of GCG during the fiscal year; and 4. Changes in the composition of the Board of Directors (if any) and the reason for such changes. 58-62 58-61 61 61-62 62-63 63-64 65 Signatures of members of the Board of Commissioners and Board of Directors 70-71 Contain the following: 1. Signatures on a separate page; 2. Statement of responsibility of the Board of Commissioners and Board of Directors for the accuracy of the contents of the Annual Report; 3. Signed by all members of the Board of Commissioners and Board of Directors by stating their names and position; and 4. Written explanation in separate letter from the person(s) concerned in the event that member(s) of Board of Commissioners or Board of Directors fail to sign the annual report; or: written explanation in separate letter from other member(s) in the event that there is no written explanation from the person(s) concerned. 70-71 70-71 70-71 70-71 74-121; 612-645 IV. Company Profile 1. Name and complete address of the company Information contains, among others, name and address, post code, telephone number, fax, email and website. 76-77 2. Brief history of the company Contain among others: date/year of establishment, name of the company, change of name (if any), and effective date of the change of name. 78-83 Note: to be disclosed if the company never had a change of name 3. Line of business 91-93 Description of, among others: 1. The line of business as stated in the latest Articles of Association; 2. Business activities; and 3. Product and/or services offered. 91 92 92-93 4 Organization structure Diagram of organization structure, containing name and position of personnel up to one level below Director, at least 84-86 5. Vision, Mission and Corporate Culture Covers: 1. Vision; 2. Mission; 3. Statement that the vision and mission have been reviewed and approved by the Board of Commissioners/Directors in the fiscal year; and 4. Statement on the corporate culture. 87-89 6. 87 87 87 88-89 Profiles of members of the Board of Commissioners 100-104 Contain information on: 1. Name; 2. Position and period in position (including position(s) held at other company/institution); 3. Age; 4. Domicile; 5. Education (study field and education institution); 6. Work experience (position, company, and period in position); and 7. History of assignments (period and position) as member of the Board of Commissioners at the company since the first appointment. 100-104 100-104 100-104 100-104 100-104 100-104 100-104 Annual Report CIMB NIAGA 2017 939
  940. ANNUAL REPORT AWARD CRITERIA 2017 Criteria and Explanations 7 . 8. 9. Page Profiles of members of the Board of Directors Contain information on: 1. Name; 2. Position and period in position (including position(s) held at other company/institution); 3. Age; 4. Domicile; 5. Education (study field and education institution); 6. Work experience (position, company, and period in position); and 7. History of assignments (period and position) as member of the Board of Directors at the company since the first appointment. 105-110 Total number of employees (comparative for 2 years) and data on employee competence development programs reflecting equal opportunities for each level of the organization 113-114; 342-359 Information contains, among others: 1. Number of employees at each level of the organization; 2. Number of employees by education; 3. Number of employees by employment status; 4. Data on employee competence development programs during the fiscal year, concerning position of participants, type of training, and purpose of training; and 5. The costs of employee competence development programs in the fiscal year. 113; 353 113; 353 113; 353 113-114; 347-350 113; 350 Shareholders composition 115-117 Covering among others: 1. Names of the 20 largest shareholders and their shareholding percentage; 2. Details of shareholders and shareholding percentage: a. Names of shareholders with 5% or more shareholding; and b. Group of public shareholders with individual shareholding of less than 5% each. 3. Names of Director and Commissioner with direct or indirect share-ownership and the percentage of such shareholding. 115 115-116 √ √ 116 105-110 105-110 105-110 105-110 105-110 105-110 105-110 Note: should be disclosed if the Director and Commissioner does not own shares, directly or indirectly. 10. 11. 12. List of subsidiaries and/or associated entities 95-97 In table form, containing: 1. Name of subsidiary and/or associated entity; 2. Share-ownership percentage; 3. Line of business of subsidiary and/or associated entity; and 4. Operational status of subsidiary and/or associated entity (in commercial operation/not yet in commercial operation). 95-97 95-97 95-97 95-97 Corporate group structure Diagram of corporate group structure involving relationship of the parent company, subsidiary, associated entity, joint venture, and special purpose vehicle (SPV). 94 Chronology of share listing (including private placement) and/or share listing from the share issuance up to the end of the fiscal year 118 Covers, among others: 1. Year of share issuance, number of shares issued, par value, and share offer price, for each separate corporate action; 2. Total number of shares outstanding following the corporate action; and 3. The stock exchange where the shares are listed. 118 118 118 Note: should be disclosed if the company does not have a chronology of share listing. 13. Chronology of other securities issuance and/or listing from the time of issuance up until the end of the fiscal year Covers, among others: 1. Name of security instrument, year of issuance, interest rate/yield of securities, and maturity date; 2. Offering price of other securities; 3. The stock exchange where the securities are listed; and 4. Rating of securities. Note: should be disclosed if the company does not have chronology of other securities issuance/listing 14. 940 119 119 119 119 119 Name and address of supporting institutions and/or professionals 120 Covers, among others: 1. Name and address of the company's Share Registrar; 2. Name and address of Public Accountant Firm; and 3. Name and address of rating agencies. 120 120 120 Annual Report CIMB NIAGA 2017
  941. Criteria and Explanations 15 . Awards received during the fiscal year, or valid certification in the fiscal year, at both national and international levels Covers, among others: 1. Name of award and/or certification; 2. Year received/issued; 3. Name of institution that issued the award/certification; and 4. Validity period (certification). 16. Page 40-45 40-45 40-45 40-45 40-45 Name and address of subsidiaries and/or branch offices or representative offices (if any) 98-99; 627-645 Covers information on: 1. Name and address of subsidiaries; and 2. Name and address of branch/representative office. 98-99; 627-645 98-99; 627-645 Note: should be disclosed if the company does not have a subsidiary, branch office or representative office. 17. Information in the corporate website Covers at the very least: 1. Information of shareholders up to the individual ultimate shareholder; 2. Contents of the Code of Conduct; 3. Information on the General Meeting of Shareholders (GMS), covering at least agenda of the GMS, summary of GMS resolutions, and information of pertinent dates, namely the dates of GMS announcement, GMS invitation, GMS event, and announcement of summary GMS resolutions; 4. Annual financial statements (last 5 years); 5. Profiles of the Board of Commissioners and Directors; and 6. Board manual/Charter of the BoC. BoD, Committees and Internal Audit Unit. 18. Training and education for Board of Commissioners, Board of Directors, Committees, Corporate Secretary, and Internal Audit Unit Cover at least information of type of training and participant of: 1. Training and/or education for Board of Commissioners; 2. Training and/or education for Board of Directors; 3. Training and/or education for Audit Committee; 4. Training and/or education for Nomination and Remuneration Committee; 5. Training and/or education for other Committee(s); 6. Training and/or education for Corporate Secretary; and 7. Training and/or education for Internal Audit Unit. 121 121 121 121 121 121 121 121 (403-407; 421-423; 464; 469; 476; 482; 497; 506 403-407 421-423 464 469 476; 482 497 506 During the fiscal year. Note: should be disclosed if there are no training and/or education during the fiscal year V. Management Discussion and Analysis on the Company Performance 1. Operation review per business segment Includes analysis on: 1. Elaboration on each business segment. 2. Performance of each business segment, among others: a. Production; b. Increase/Decrease of production capacity; c. Sales/income; and d. Profitability. 2. Description on the Company’s financial performance An analysis comparing the performance of the current year and that of the previous year (in the form of narration and tables) and the reasons for the increase/decrease of the accounts, including in: 1. Current assets, non-current assets, and total assets; 2. Short-term liabilities, long-term liabilities, and total liabilities; 3. Equity; 4. Sales/operating revenues, expenses, Profit (Loss), other comprehensive income, comprehensive income for the current year; and 5. Cash flows. 124-337 130-173 130-173 130-173 189-196 195-196 177-198 177-184 184-188 188 189-196 197-198 3. Discussion and analysis on solvability and level of the company receivables collectibility, by presenting relevant ratio calculation in line with the company’s type of industry Explanation on: 1. Solvability, both short term and long term; and 2. Level of receivables collectibility. Annual Report CIMB NIAGA 2017 206-208 206-208 208 941
  942. ANNUAL REPORT AWARD CRITERIA 2017 Criteria and Explanations 4 . Page Discussion on capital structure, and management policy on capital structure 209-210 Explanation of: 1. Details of capital structure comprising of interest-bearing debts/sukuk and equity; 2. Capital structure policies; and 3. Basis for the determination of capital structure policies. 5. 209 209-210 210 Discussion on material commitments of capital investments (instead of funding commitments) in the last fiscal year Explanation on: 1. Parties in the commitments; 2. Objectives of the commitments; 3. Sources of funds to meet the commitments; 4. Denomination currency of commitments; and 5. Initiatives taken to mitigate exchange rate risk. Note: should be disclosed if the company does not have any material commitment for capital investments in the fiscal year. 6. 210 210 210 210 210 210 Discussion on capital investment realized at the latest financial year 210 Explanation on: 1. Type of capital investment; 2. Objectives of capital investment; and 3. Nominal value of capital investment realized in the last fiscal year. 210 210 210 Note: should be disclosed if there are no capital investment. 7. Information on the comparison between initial target at the beginning of financial year and the realization and target or projection for the next year concerning income, profit, capital structure, and others considered significant target for the company. Contain information on: 1. Comparison of targets at the beginning of fiscal year and achievements; and 2. Targets or projections set for the next 1 (one) year. 8. 211 211 211 Information and material facts following the date of accounting report (Subsequent events) Description of significant events following the date of accounting report including its impact on business risk and performance in the future. 211-212 Note: should be disclosed if there are no subsequent events. 9. Business prospects Description on business prospects related to the general industry and economy including quantitative supporting data from reliable resources 10. Marketing aspects Description on marketing aspects of the company’s products and/or services, among others marketing strategy and market shares 11. 226-229 Description on dividend policy and total cash dividend per share and total dividend per year that are published or disbursed during last 2 (two) financial years Contain information on: 1. Dividend payout policy; 2. Total dividend disbursement; 3. Total cash dividend per share; 4. Payout ratio; and 5. Announcement date and cash dividend payout for each year. 230-233 212 212 212 212 212 212 Note: To disclose if there are no dividend disbursement and its reasons. 942 Annual Report CIMB NIAGA 2017
  943. Criteria and Explanations 12 . Employee/Management Share Ownership Program (ESOP/MSOP) still ongoing in the fiscal year Contain information on: 1. Number of ESOP/MSOP shares and its execution; 2. Period; 3. Eligible employee/management; and 4. Exercise price. Note: should be disclosed if there are no such programs 13. Realization of initial public offering proceeds (in the event of the company is obligated to submit the report) Covers the following: 1. Total proceeds; 2. Proceeds utilization plan; 3. Proceeds utilization details; 4. Proceeds balance; and 5. The date of GMS/GMB resolution on the change of proceeds utilization (if any). Note: should be disclosed if there are no such information of realization of proceeds of public offering. 14. Material transaction information with conflict of interest and/or transaction with related parties Covers the following: 1. Name of transacting parties and the nature of related parties; 2. Description of the transaction fairness; 3. Transaction background; 4. Transaction realization at the last financial year; 5. Company policy related with transaction review mechanism; and 6. Compliance to relevant regulations and provisions. Note: To disclose if there are no transactions. 15. Page 212-213 212-213 212-213 212-213 212-213 213-214 213-214 213-214 213-214 213-214 213-214 214 214 214 214 214 214 214 Description on changes in laws and regulations during the fiscal year that impacted on the company 218-221 Covers information on: 1. Name of regulations; and 2. The impact (quantitative and/or qualitative) on the company, or statement of the insignificant impact 218-221 218-221 Note: To disclose if there are no changes in the laws and regulations that have significant impacts 16. Description on the changes in accounting policy implemented by the company at the last financial year 221-223 Descriptions include among others: 1. Changes in accounting policy; 2. Reasons for the change; and 3. Quantitative impact on the financial statements 221-223 221-223 221-223 Note: To disclose if there are no changes in accounting policies during the fiscal year 17. Information on business continuity Disclosures on: 1. Significant issues on the company business continuity at the last financial year; 2. Management assessment on point 1; and 3. Assumption implemented by the management in conducting the assessment. Note: if there are no issues that potentially have significant influences to the company’s business continuity at the last financial year, to disclose the basis of management assumption in ensuring that there are no issues that potentially have significant influences to the company’s business continuity at the last financial year. 224-225 224 224-225 225 VI. Good Corporate Governance 1. Description on the Board of Commissioners 396-415 Covers the following: 1. Board of Commissioners responsibilities; 2. Assessment of performance of committees under the Board and the basis for such assessment; and 3. Board Charter disclosures (Board of Commissioners work guidelines and procedures) 397-399 413 401 Annual Report CIMB NIAGA 2017 943
  944. ANNUAL REPORT AWARD CRITERIA 2017 Criteria and Explanations 2 . Page Independent Commissioners (at least 30% of the total personnel of the Board of Commissioners) 414-415 Covers the following: 1. Assignment criteria of Independent Commissioners; and 2. Independency statement of each Independent Commissioner. 3. 4. 414 415 Description on the Board of Directors 416-426 Covers information on, among others: 1. Duties and responsibilities of each member of the Board of Directors; 2. Assessment of performance of committees under the Board (if any); and 3. Board Charter disclosures (Board of Directors work guidelines and procedures) 417-419 426 417 GCG implementation assessment for 2015, at least for aspects of the Board of Commissioners and/or Board of Directors Covers the following: 1. Assessment criteria; 2. Assessor; 3. Assessment score on each criteria; 4. Recommendations on results of assessment; and 5. Reasons for the delay or non implementation of such recommendations. 430-435 430; 434 430; 434 430; 434 430-433; 434 430-433; 434 Note: should be disclosed if there are no GCG assessment for fiscal 2015. 5. Description of the remuneration policy for the Board of Commissioners and Board of Directors 436 Covers the following: 1. Disclosure of procedure for the proposal and determination of remuneration for the Board of Commissioners; 2. Disclosure of procedure for the proposal and determination of remuneration for the Board of Directors; 3. Remuneration structure showing the remuneration components and amounts per component for each member of the Board of Commissioners; 4. Remuneration structure showing the remuneration components and amounts per component for each member of the Board of Directors; 5. Disclosure of indicators for the remuneration of the Board of Directors; and 6. Disclosure of performance bonus, non-performance bonus, and/or share option received by each members of the Board of Commissioners and Directors (if any). 436-437 436-437 438-439 440-441 440 438; 440 Note: should be disclosed if there are no performance bonus, non-performance bonus, and/or share option received by each members of the Board of Commissioners and Directors. 6. Meeting frequency and attendance of Board of Commissioners (at least once in 2 months), Board of Directors (at least once in a month), and joint meetings of BoC and BoD (at least once in 4 months) Covers among others: 1. Date; 2. Attendance; and 3. Agenda. Of each of the meetings of BoC, BoD and Joint Meetings of BoC and BoD. 7. 444-459 444-459 444-459 444-459 Information on majority and controlling shareholders, direct or indirect, up to the ultimate individual shareholder Diagram with separate illustration for majority shareholders and controlling shareholders Note: majority shareholders are parties that own, directly or indirectly, at least 20% of the voting rights of the total share with voting rights issued by the company, but is not the controlling shareholder 8. 115; 460 Disclosure of affiliation between members of the Board of Directors, Board of Commissioners and Majority/ Controlling Shareholders Covers, among others: 1. Affiliation between a member of the Board of Directors with fellow members of the Board of Directors; 2. Affiliation between a member of the Board of Directors with members of the Board of Commissioners; 3. Affiliation between a member of the Board of Directors with Majority and/or Controlling Shareholder; 4. Affiliation between a member of the Board of Commissioners with fellow members of the Board of Commissioners; and 5. Affiliation between a member of the Board of Commissioners with Majority and/or Controlling Shareholder. 461 461 461 461 461 Note: should be disclosed if there are no affiliation relationship 944 Annual Report CIMB NIAGA 2017
  945. Criteria and Explanations 9 Audit Committee Includes the following : 1. Name, position and tenure of audit committee members; 2. Education qualifications (study field and institution) and work experience (position, company and tenure) of audit committee members; 3. Independency of audit committee members; 4. Duties and responsibilities; 5. Brief report of audit committee activity; and 6. Meeting frequency and attendance of audit committee. 10. 11. 12. 13 14. Page 462-467 462-463 462-463 464 464-465 465 465-466 Nomination and/or Remuneration Committee 468-473 Includes the following: 1. Name, position and brief profiles of members of the Nomination and/or Remuneration Committee; 2. Independency of Nomination and/or Remuneration Committee; 3. Duties and responsibilities ; 4. Brief report of committee activity in the fiscal year; 5. Meeting frequency and attendance; 6. Statement of committee charter; and 7. Policies on Director succession. 468-469 470 470-471 470-471 472 468 473 Other committees under the Board of Commissioners 474-478; 479-483 Includes the following: 1. Name, position and brief profile of members of committee; 2. Independency of committee; 3. Duties and responsibilities ; 4. Committee activity in the fiscal year; and 5. Committee meeting frequency and attendance. 474-475; 479-482 476; 482 476; 483 477; 483 478; 483 Description of duties and functions of Corporate Secretary 496-509 Information on, among others: 1. Name and brief work experience of Corporate Secretary; 2. Domicile; 3. Duties and responsibilities; and 4. Report of activities of Corporate Secretary in the fiscal year. 107; 496 107; 496 496-497 497-498 Description on Internal Audit Unit 505-509 Includes the following: 1. Name of internal audit unit head; 2. Total employees (internal auditors) in internal audit unit; 3. Certification on internal audit profession; 4. Internal audit unit composition in the company’s structure; 5. Brief report on internal audit unit activity implementation; and 6. The parties responsible to appoint/terminate the internal audit unit head. 506 506 507 507 508-509 505 Public Accountant Includes the following: 1. Name and year of public accountant that audits the annual financial statements in the last 5 years; 2. Name and year of Public Accountant Firm that audits the annual financial statements in the last 5 years; 3. The amount of fee for each service provided by public accountant at the last financial year; and 4. Other services provided by the accountant apart from the audit service of annual financial statements at the last financial year. 514 514 514 514 514 Note: to disclose if there are no other services rendered 15. Description on risk management of the company 234-337; 519-520 Includes the following: 1. Explanation on risk management system implemented by the company; 2. Explanation on risk management system effectiveness evaluation; 3. Explanation on risks faced by the company; and 4. Risk mitigation. 234-250; 519 520-521 519-520; 264-337 520; 264-337 Annual Report CIMB NIAGA 2017 945
  946. ANNUAL REPORT AWARD CRITERIA 2017 Criteria and Explanations 16 . Page Description of internal control system 521-522 Includes the following: 1. Brief explanation on internal control system, among others on financial and operational control; 2. Explanation on internal control system alignment with international standard framework (COSO – internal control framework); and 3. Explanation on internal control system effectiveness evaluation. 521 521-522 522 17. Description on corporate social responsibility related to environmental 583-587 Covers information on, among others: 1. Activity target/plans by the Management for 2016; 2. Activities conducted and the quantitative impact of such activities; including environmental programs related to the company's operational activities such as utilization of environment-friendly materials and energy or recycled materials, waste management system, complaint handling of environmental issues, green lending, and others 3. Environmental certifications. 583 583-586 587 18. Description on corporate social responsibility related to occupational, health and safety 588-591 Covers information on, among others: 1. Activity target/plans by the Management for 2016; and 2. Activities conducted and quantitative impact of such activities related to occupational, heath and safety aspects, such as gender equality and equal work opportunity, work health and safety equipment, employee turnover rate, accident rate, remuneration, complaint handling of work-related issues, and others. 19. 592-605 Description on corporate social responsibility related to social and community development Covers information on, among others: 1. Activity target/plans by the Management for 2016; 2. Activities conducted and impact of such activities; and 3. Cost expended related to social and community development activities such as recruitment of local manpower, community development, donation in improvement to public facilities and infrastructure, other social donations, communications on anti-corruption policies and procedures, training on anti-corruption, and others. 20. 21. 588 588-591 592 592-603 604-605 Description on corporate social responsibility related to responsibility to consumers 606-608 Covers information on, among others: 1. Activity target/plans by the Management for 2016; and 2. Activities conducted and impact of such activities related to product responsibility, such as consumers health and safety, product information, facility, total and handling of consumers claims, and so forth. 606 606-608 Significant litigation currently faced by the company, subsidiaries, and members of the Board of Commissioners and Board of Directors that served the position at the annual report period Includes the following: 1. The principal litigation/claims; 2. Settlement status of litigation/claims; 3. Impact to the company’s condition; and 4. Administration sanctions charged to the company, members of the Board of Commissioners and Board of Directors, by relevant authorities (capital market, banking and others) at the last fiscal year (or a statement of no administration sanction being charged) 523-526 523-526 523-526 523-526 526 Note: To disclose in the event of no litigation 22. 23. Access to company information and data Description on the availability of company information and data for public access, including dissemination through company website (in Bahasa and English), mass media, mailing list, bulletin, analyst gatherings, and others. 527-530 Discussion on code of conduct 531-532 Includes the following: 1. Contents of Code of Conduct; 2. Disclosure of code of conduct application in all level of organization; 3. Code of conduct dissemination; 4. Sanctions on code of conduct violations; and 5. Number of violation and sanction in the last fiscal year. 531 531 531-532 532 532 Note: should be disclosed if there are no violations of code of conduct in the last fiscal year. 946 Annual Report CIMB NIAGA 2017
  947. Criteria and Explanations 24 . Page Disclosure on whistleblowing system 536-537 Includes the following mechanism of whistleblowing system: 1. Violations report submission; 2. Whistleblowers protection; 3. Claims handling; 4. Claims managers; and 5. Total claims registered; and 6. Sanctions/report processed at the last fiscal year including its follow up measures. 536 536 536-537 537 537 537 Note: should be disclosed if there is no report and follow up action in the last fiscal year. 25. Diversity of the Board of Commissioners and Board of Directors Composition 427-429 Description of written policy regarding diversity of the Board of Commissioners and Board of Directors composition regarding education, work experience, age, and gender Note: to disclose the reasons and considerations, if there is no policy applied VII. Financial Information 647-911 1. Board of Directors and/or Board of Commissioners’ Statements regarding the Responsibility for the Financial Statements Conformity with related regulations regarding the Financial Statements Responsibility 2. Independent auditor opinion on financial statements 3. Independent Auditor Description in the Opinion 650 Description contains the following: 1. Name & signatures; 2. Audit Report date; and 3. License of Public Accountant Firm and license of Public Accountant 650 650 650 4. 649-650 Comprehensive financial statements Comprehensively covers the financial statements elements: 1. Statements of financial position; 2. Statements of comprehensive income and other comprehensive income; 3. Statements of changes in equity; 4. Statements of cash flows; 5. Notes to financial statements; 6. Comparative information on previous periods; and 7. Statements of financial position at the beginning of previous periods upon the application of retrospective accounting policy by the entity or representation of financial statements postings, or reclassifications of postings in the financial statements (if relevant). 5. 648 651-654 655-656 657-658 659-660 661-911 √ √ Profitability level comparison Comparison of current profit (loss) with the previous year 655-656 6. Statements of Cash Flows Conformity to the following provisions: 1. Grouping into three category of activities of operations, investment, and financing; 2. Direct method application in the statements of cash flows from operations activity; 3. Separation of presentation between cash in and or cash out during current year in the operation, investment and financing activities; 4. Disclosure of non cash transaction shall be stated in the notes to financial statements. 7. 8. 659-660 659-660 659-660 659-660 Summary of accounting policies 675-721 Including at least: 1. Compliance statement to SAK; 2. Basis of measurement and formulation of financial statements; 3. Recognition of income and expense; 4. Employee benefits; and 5. Financial instrument. 675-721 675-721 675-721 675-721 675-721 Disclosure of related parties transactions 833-836 The disclosures includes: 1. Name of related parties, and the nature and relationship with related parties; 2. Transaction values and its percentage to total income and expense; and 3. Total balance and its percentage to total assets or liabilities. 833-836 833-836 833-836 Annual Report CIMB NIAGA 2017 947
  948. ANNUAL REPORT AWARD CRITERIA 2017 Criteria and Explanations 9 . Page Disclosure related to taxes 791-801 The disclosures shall includes: 1. Fiscal reconciliation and current tax expense calculation; 2. Explanation of relationship between tax expenses (income) and accounting profit; 3. Statement that Taxable Income as a result of reconciliation is use as the basis in completing the 2016 Annual corporate income tax return; 4. The details of deferred tax assets and liabilities recognized in the financial position statements for every presentation period, and total deferred tax expenses (income) recognized in the income statements if the total are not visible from the total deferred tax assets or liabilities recognized in the financial position statements; and 5. Disclosure of availability or un-availability of tax disputes. 791-801 791-801 791-801 791-801 791-801 10. Disclosure related to fixed assets 771-776 The disclosures shall includes: 1. Used depreciation method; 2. Description on accounting policies selected between revaluation model and cost model; 3. Significant methods and assumptions used in estimation of fixed assets fair value (for revaluation model) or disclosure of fixed assets fair value (for cost model); and 4. Reconciliation of gross total recorded and accumulation of fixed assets depreciation at the beginning and end of period by presenting: addition, deduction and reclassification. 11 13. 948 771-776 837-840 Disclosure related to operations segments The disclosures shall includes: 1. General information covering factors used to identify reported segments; 2. Information on segment’s reported profit loss, assets, and liabilities; 3. Reconciliation of segment’s total revenues, segment’s reported profit loss, segment’s assets, segment’s liabilities, and segment’s other material elements to related total in entity; and 4. Disclosure of entity level, which covers information on products and/or services, geographic areas and main customers. 12. 771-776 771-776 771-776 837-840 837-840 837-840 837-840 Disclosure related to Financial Instruments 840-852 The disclosures shall includes: 1. Accounting requirements, conditions and policies for every financial instruments group; 2. Financial instrument classification; 3. Fair value of every financial instrument group; 4. Risk management objectives and policies; 5. Explanation on risks related to financial instrument: market risk, credit risk and liquidity risk; and 6. Risk analysis related to financial instrument in quantitative way. 840-852 840-852 840-852 840-852 840-852 Financial statements publication 675 The disclosures includes: 1. Date of financial statements authorized for publication; and 2. Parties responsible to authorize the financial statements. 675 675 Annual Report CIMB NIAGA 2017
  950. Annual Report 2017 Step Forward , Dream Bigger Step Forward, Dream Bigger PT Bank CIMB Niaga Tbk Annual Report www.cimbniaga.com 2017 Corporate Secretary Graha CIMB Niaga Jl. Jend. Sudirman Kav. 58 Jakarta 12190, Indonesia Tel. : (62-21) 250 5252, 250 5353 Fax. : (62-21) 250 5205 Email :corporate.secretary@cimbniaga.co.id Facebook: CIMB Indonesia Twitter :@CIMBNiaga